American Recovery and Reinvestment Act Summary

The American Recovery and Reinvestment Act of 2009, H.R. 1, has passed the
House and Senate and awaiting the President’s signature. The details of the
legislation are still being finalized. A number of provisions that are important to
Realtors® are expected to be included in the legislation:
Homebuyer Tax Credit – An $8,000 tax credit that will be available for qualified
purchase of a principal residence by a first time homebuyer between January 1,
2009 and September 1, 2009. The credit does not require repayment.
Individuals who purchase in 2009 using financing assistance from state and local
mortgage bonds will be permitted to use the credit, as well.
Federal Housing Agency (FHA), Fannie Mae and Freddie Mac Revised Loan
Limits – Specifics have not been released but reports indicate that the 2008
limits have been reinstated for 2009 except in those communities where the 2009
limits are higher. Additional increases in individual communities may also be
available at the discretion of the Housing and Urban Development (HUD)
Secretary.
Foreclosure Mitigation & Neighborhood Stabilization – Funding for states
and local communities to be used for neighborhood stabilization activities for the
redevelopment of abandoned and foreclosed homes are authorized.
These elements of the American Recovery and Reinvestment Act of 2009 are the
pillars of the National Association of Realtors® (NAR) Housing Stimulus Plan
presented to the 111th Congress. NAR will continue to work closely with the
Department of Treasury and Secretary Timothy Geithner to implement a
mortgage buy-down program. NAR also recommended that the Treasury
Department expand the Term Asset-Backed Loan Facility (TALF) to include
commercial mortgage-backed securities as eligible collateral. The Treasury has
approved this recommendation and this will encourage investment in the
commercial real estate market.
Additional housing and other provisions of interest to Realtors®:
Rural Housing Service - Increased funding for the Rural Housing Service direct
and guaranteed loan programs.
Low Income Housing Grants - Allow states to trade in a portion of their 2009
low-income housing tax credits for Treasury grants to finance the construction or
acquisition and rehabilitation of low-income housing, including those with or
without tax credit allocations.
Tax Exempt Housing Bonds - Tax-exempt interest earned on specified state
and local bonds issued during 2009 and 2010 will not be subject to the
Alternative Minimum Tax (AMT). In addition, financial institutions will have
greater capacity to purchase tax-exempt state and local bonds.
Energy Efficient Housing - Grants for energy retrofits for federally assisted
housing (section 8), funding for Energy Efficiency & Conservation Block Grants to
states, and increases in the residential tax credit through 2010 for certain energy
efficient upgrades.
Transportation - Spending for upgrades and repairs of road, bridges and transit
facilities.
Broadband Deployment – Grants to make broadband available in un-served
communities
NAR’s work with Congress and the Treasury Department is not yet completed.
As the leading advocate for homeowners and the real estate industry, NAR will
continue to address the issues facing Americans who are trying to purchase a
new home, protect their current home or preserve investment opportunities in
residential and commercial properties. NAR recognizes that without a housing
recovery, an overall economic recovery is impossible.
Source: NAR