Date: January 29, 2009

Last night the United States House of Representatives passed, on a largely party line vote of 244-188 (Ginny Brown-Waite R-FL 5th did not vote), HR 1, the American Recovery and Reinvestment Act of 2009.  The economic stimulus bill, as the legislation is more commonly known, contains a number of key provisions for REALTORS.

• Restoration of the 2008 Loan Limits for FHA, Fannie Mae and Freddie Mac to 125% of median home price up to a limit of $729,750
• Elimination of the repayment provision of the $7,500 first time home buyer tax credit
• Expansion of tax-exempt housing bonds
• Increased funding for the Rural Housing Service program
• Additional funding for neighborhood stabilization activities under the Community Development Block Grant program
• Incentives to promote weatherization and energy efficiency
• Retrofitting federally assisted housing for energy efficiency
• An expansion of the Hope VI low-income housing construction and rehabilitation program

The House has also addressed a number of housing issues in legislation revamping the Trouble Asset Relief Program.  Among the housing provision off interest in the TARP Reform and Accountability Act of 2009, HR 384 are:

• A mortgage buy-down program to reduce rates below current prevailing market rates
• Increased foreclosure prevention and mitigation efforts
• Ensuring liquidity in the residential and commercial mortgage markets
• Streamlining efforts to "unclog" the credit markets and increase the availability of credit to worthy customer 

These actions represent the first phase of enacting the Housing Stimulus Plan approved by NAR members at the annual meeting in Orlando.  While we have succeeded in passing the first test, we have an uphill climb to enact these provisions in the legislation that will be considered in the United States Senate.  Once the Senate passes a measure the differences with the House version will be worked out in a conference committee.  We will keep you informed as things progress.

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