For Immediate Release: March 25, 2009
Contact: Michael O’Brien, (202) 367-1280
[Washington, DC] – The National Lumber and Building Material Dealers Association (NLBMDA) commended the members of the House Republican Economic Working Group for their proposed “Responsible Homeowners Act,” which was unveiled today at a press conference by Reps. Eric Cantor (R-VA) and Mike Pence (R-IN). Specifically, the legislation would:
- Provide a $15,000 homebuyer tax credit for all purchases of primary residences provided that the buyer has a five percent downpayment (covers purchases made before July 1, 2010);
- Equalize the treatment of a home purchased as a primary residence with a home purchased for rental purposes (defined as being rented to the same tenant for at least 181 days out of the year) by providing the same exclusion from taxes for any future appreciation in the home value (covers purchases made before July 1, 2010);
- Provide a $5,000 refinancing tax credit to help families cover the costs of a mortgage refinancing, buy down points, or reduce their principal balance (covers refinancings through July 1, 2010).
“NLBMDA commends the House Republican Economic Working Group for their leadership in providing a substantive proposal to revive the housing market by addressing the key issues of the housing recession,” said NLBMDA President and CEO Michael O’Brien. “As we have said on several occasions, in order for the housing market to fully recover, we must spur housing demand while effectively dealing with the foreclosure crisis. This legislation addresses both those key points.”
The legislation includes important provisions to encourage lenders to work with homeowners in danger of foreclosure. If a lender invests in keeping a homeowner in their home by refinancing their mortgage and lowering the owner’s monthly payments and if the homeowner agrees to share a portion of future home appreciation with the lender, then the lender will not be taxed on that future profit and the borrower will not incur any tax liability as a result of the refinancing (covers refinancings through July 1, 2010).
“If adopted, this legislation could go a long way toward reviving the housing economy by encouraging more home purchases, creating new jobs and restoring consumer confidence in the housing market,” said O’Brien.
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The National Lumber and Building Material Dealers Association (NLBMDA) represents its members in the national public policy arena, with emphasis on efforts to 1) promote the industry and educate legislators and public policy personnel; and 2) assist legislative, regulatory, standard-setting and other government or private bodies in the development of laws, regulations and policies affecting lumber and building material dealers, its customers and suppliers. Founded in 1917, the association has over 6,000 members operating single or multiple lumber yards and component plants serving homebuilders, subcontractors, general contractors, and consumers in the new construction, repair and remodeling of residential and light commercial structures.
