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HBA backs stimulus plan

By John Rebchook, Rocky Mountain News (Contact)

Published November 14, 2008 at 9:10 a.m.

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The Home Builders Association of Metro Denver has recently endorsed an initiative that urges Congress to act on a stimulus package that would provide home buyers with a "true" tax credit and below-market mortgage rates.

Matt Osborn, 2008 HBA president, applauded the action to support this effort. “Denver’s prolonged housing slump can be stabilized and recovery can begin if Congress provides the relief suggested in this proposed initiative,” Osborn said in a statement released today. Osborn is a top official at Village Homes, which last week filed for reorganization under Chapter 11 bankruptcy.

The Fix Housing First stimulus plan advocates a $10,000 to $22,000 true tax credit for all home buyers (dependent on geographic FHA loan limits). This is not a $7,500 loan for all existing and new homes.

The Fix Housing First plan also includes a provision that the tax credit would be incrementally repaid to the government should the home buyer sell within three years.

Additionally, the plan seeks below-market mortgage rates of 2.99% fixed rate for 30 years, for all existing and new homes. The rate would be available for contracts signed between now and June 30. For contracts signed between June 30, 2009 and Dec. 31, 2009, the rate will be raised to 3.99%.

“Together, these measures will stop the fall in home values, encourage people to buy now, create job opportunities in numerous sectors and energize the broader economy,” Osborn said.

For more information: fixhousingfirst.com.

Comments

  • November 14, 2008

    9:52 a.m.

    Suggest removal

    WarrenJimmyBuffett writes:

    What a folly. Only market forces can fix the housing market. Mass oversupply needs to be absorbed and prices need to fall to affordable levels (monthly rent x 240 months = affordable sale prices) before the housing market can rebound. This package is a joke. It is proposed by homebuilders who were instrumental in creating the problem by massively overbuilding. Now they want the gov't to give them free money, so they can stay in business. An audacious request, indeed.