Message from NAR President about Stimulus Plan

Dear Fellow REALTOR®,

For nearly four months, NAR has been working to deliver to you and to our nation a comprehensive plan to stabilize the housing market.

This week, we saw countless hours of hard work pay off – in a MAJOR way – when the federal government implemented NAR's recommendations to stimulate housing with the signing of the American Recovery and Reinvestment Act of 2009.

This bold and unprecedented move to help housing did not happen by chance. Just a few months ago, the auto industry had Congress' ear. Yet, thanks to countless meetings, letters, phone calls, and public pressure that we – the REALTORS® of America – placed on lawmakers in Washington, D.C., housing emerged as the top priority in the new Administration and in Congress. While some of the items in the Act are controversial and are currently being debated, most of our top priorities were addressed.

Thanks to all of our hard work, America's homebuyers and homeowners will soon have:



1. Lower interest rates for home mortgages;

2. A greater ability to get financing through FHA, Fannie Mae and Freddie Mac in high-cost areas;

3. A true tax credit incentive to buy a home NOW; and

4. Foreclosure mitigation and short-sale standards.


As a direct result of NAR's advocacy, we hope REALTORS® will see an increase in home sales this year. NAR also continues to make significant progress on our efforts to unclog the pipeline for foreclosures and to address administrative problems with short sales.

Such significant movement on these critical issues is rare. I personally thank and congratulate each and every member of the National Association of REALTORS® for helping to make NAR's Housing Stimulus Plan a reality. For more information and details on these new laws and programs, visit the Unlock America's Economy Page on Realtor.org:

http://www.realtor.org/government_affairs/gapublic/gses_conservatorship?LID=RONav0023

Make no mistake -- we're just getting started. NAR will continue to push for other important laws and policies that can help you in your business. From keeping banks out of real estate to providing you with affordable health coverage, you can count on the "Voice for Real Estate" to help you gain an advantage in every kind of market.

That's the power of NAR, and it's why I am proud to be a member and to serve as your 2009 President.

Once again, thank you all, and keep up the great work!

Sincerely,
Charles McMillan, CIPS, GRI
2009 NAR President

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