Good afternoon —
If you're of a certain age you learned how laws are passed through the melodies of School House Rock. We've been covering Biden's proposed $15,000 first-time homebuyer tax credit since he included it in his platform as a candidate and I feel like it's had its own long, long journey to the capital city.
In the fall, most people felt like it was an interesting idea to generate buzz for the campaign, but gave it a zero chance of becoming reality. Biden would have to get elected, pick up some seats in the Senate, and find time to make it a priority while battling the coronavirus.
Even after Biden won the election and picked up some Senate seats, few thought there was an appetite for taking it on. Yes, we had similar measures under both Bush and Obama, but for a lower amount and those were true tax credits — not cash in hand at the closing table.
But Biden very quickly made housing a priority in his administration, and the talk went from pie in the sky to what form a tax credit might take. You had various people and groups applauding the idea as a boon to underserved groups who have a hard time coming up with a down payment without generational wealth, but others who decried it as a bad idea when housing demand was already so hot.
Several weeks ago, we began to hear that a bill was in the works and yesterday, Mortgage Editor Georgia Kromrei got a copy of draft legislation sponsored by Maxine Waters for a down payment assistance program. It's not a tax credit, it's a grant. And only first-time homebuyers who are also first-generation homebuyers would qualify. But still.
Those conditions cut out a lot of people, but the bill would directly help those who haven't benefited from generational wealth without creating even more demand in a white-hot market. Does it have a chance of passing? There are surely some who hope and pray that it will, but today it is still just a bill. (You're welcome.)
Read our exclusive coverage here.
Until Monday —
Sarah Wheeler
HousingWire Editor in Chief
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