NBN Online for the week of February 23, 2009

Obama Foreclosure Plan to Help Resolve Housing Crisis

President Obama last week unveiled details of a $75 billion foreclosure prevention plan designed to help seven to nine million “responsible” home owners remain in their homes with affordable mortgage payments. The official rollout date for the program is March 4.

“We applaud the Obama Administration for unveiling its plan to stem the rising tide of foreclosures that is flooding the market with excess inventory and undermining overall home values,” said NAHB Chairman Joe Robson. “This is an important first step to address the acute supply problems confronting the housing market.”

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California Tax Credit Expected to Spur New Home Construction

In a move that will provide families in California with a significant incentive to return to the housing market, the state assembly last week passed SB 15XX by Sen. Roy Ashburn (R-Bakersfield), which established a tax credit of the lessor  of $10,000 or 5% of the purchase price of a newly built single-family (attached or detached) home sold on or after March 1 of this year and before March 1, 2010, up to $100 million in total state income tax credits.

In addition, first-time home buyers in California will be able to take advantage of both the $10,000 credit and the $8,000 tax credit provided in the federal stimulus package enacted earlier this month, for a combined $18,000 in reduced federal and state income tax.

Tax Credit Web Site Looks at Opportunity of a Lifetime

Builders and other industry professionals can help spur home sales by referring prospective first-time home buyers to www.federalhousingtaxcredit.com. The NAHB Web site provides detailed information on the $8,000 federal tax credit for first-time home buyers included in the economic stimulus legislation signed into law by President Obama.

Consumers can use the Web site to find information on the tax credit — including a detailed question and answer section. It also includes information about other housing-related and small business measures in the legislation and a number of home-buying resources for consumers.

“The new tax credit provides a great opportunity for first-time home buyers,” said NAHB Chairman Joe Robson. “Combined with today’s near record low interest rates, the large selection of homes on the market and very competitive pricing, the tax credit should provide the extra incentive needed to get prospective buyers who have been sitting on the fence into the market.”

Industry professionals are encouraged to highlight the tax credit Web site when marketing to their potential first-time home buyer market.