While housing has led the economic recovery in recent years, Secretary Snow said that other sectors of the economy — including manufacturing, retail and telecom — are also reporting positive prospects for sustained growth and job creation.
Snow credited the economic resurgence to the Administration’s tax policy reforms, which he said will result in lower income tax bills this year for 845,000 Nevada taxpayers.
“As a home builder, I can tell you that solid economic and job growth are important for housing,” said Rayburn. “It will ensure that we will continue to have strong demand for new housing into the future.”
Rayburn also commended Secretaries Snow and Jackson for working with the nation’s home builders to urge the Congress to pass homeownership tax credit legislation and a Federal Housing Administration zero downpayment mortgage insurance program.
These two important housing initiatives would help ensure that low- and moderate-income households get a chance to achieve the American dream of homeownership.
The homeownership tax credit, which has strong bipartisan support and is currently pending in both chambers of Congress, would help working Americans currently priced out of the market to buy their first home. The credit would stimulate construction of 50,000 new or rehabilitated homes each year and create 120,000 new jobs annually.
The FHA zero downpayment program directly addresses what is widely viewed as the greatest obstacle faced by potential first-time home buyers — the ability to assemble enough funds for a downpayment.
Legislation (H.R. 3755) to implement this program was introduced in the House earlier this year by Reps. Patrick Tiberi (R-OH) and David Scott (D-GA). Companion legislation has yet to be introduced in the Senate.
HUD estimates that 140,000 families would be able to become home owners if this proposal is enacted into law.
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