A “no” vote on homeownership incentives
This article was originally on a blog post platform and may be missing photos, graphics or links. See About archive blog posts.
In the bad idea category, file the ‘proposals for a new $22,000 home buyer tax credit, legislation overturning the ban on seller-financed down payment programs and calls for a federally financed interest rate buy-down on mortgages,’ say the National Multi Housing Council (NMHC) and National Apartment Assn.
In a statement released today on behalf of the trade and lobbying groups’ Joint Legislative Program, NMHC President Doug Bibby said:
‘We understand the desire of lawmakers to bolster the economy and stem the tide of foreclosures, but new home buyer tax credits, seller-financed down payments and interest rate buy-downs will not stimulate the economy or stop house prices from falling further. They are simply bailouts for the for-sale housing market, the very sector of our economy that helped trigger the global economic crisis. ‘The only issue a home buyer tax credit addresses is the oversupply of single-family houses, which is something best left to the marketplace -- not taxpayers -- to correct. Oversupply situations happen in every industry, and the housing industry will recover with or without Congressional action, just as it has in past oversupply situations. Moreover, why should taxpayers help out an industry that recognized a downturn was coming and still kept overproducing?’
Details and frequently asked questions about the proposed incentives are at NMHC’s website. More battle lines being drawn.
--Lauren Beale
Thoughts? Comments?
