A Plan to Get Things Moving!

It is with great joy that we inform you that last night, the Senate Ways and Means Committee unanimously adopted our amendment to the state budget authorizing the State Treasurer to invest $25 million in a short-term loan program in order to provide an advance payment of the federal first-time home buyers' tax credit, allowing potential home buyers to utilize the tax credit as down payment when closing the sale of their first home.

The 2009 Economic Recovery and Revitalization Act included a "refundable" tax credit worth up to 10% of the home purchase price with a maximum of $8,000 for taxpayers who purchase a home between January 1 and November 30, 2009. There is a demand from first-time home buyers - responsible people with jobs, good credit, and the ability to make the monthly mortgage payment. However, many of these potential home buyers still need down payment assistance and they can't get the $8,000 until after the sale is closed. Lack of down payment is the only barrier to home ownership for up to 50 percent of qualified first time home buyers. The Washington State Treasurer's Office, Housing Finance Commission and Washington REALTORS® are proposing a Tax Credit Advance Loan program that would advance the $8,000 tax credit at closing of a home sale and be repaid when the credit is received by the IRS. Now more than ever, housing choices are critical not only to our families and children but also to reviving the economy. Washington's economic health depends on a healthy, vibrant housing market, which accounts for 24% of the state's employment and a significant portion of state tax revenues in sales, property, business and occupation and real estate excise taxes. This effort to amend the state budget to include the budget proviso was made possible through no small amount of effort with plenty of credit to go around. Certainly, the leadership of State Treasurer Jim McIntire and Sen. Steve Hobbs played a key role as champions in the Senate to adopt the amendment. And the solid efforts of our coalition partners, expert lobbying team and key individuals made the difference. To be clear, while this is a critical victory, it is only one important step in the process of adopting the state budget. The budget, with this proviso authorizing the advance loan program, must be adopted by the full Senate and House, and signed by the Governor before it becomes effective. We will keep you posted as further activity on the budget occurs. Following, please find a link to a editorial from the Everett Herald urging the Legislature to adopt this common-sense approach to reviving the housing market. A plan to get things moving: WEDNESDAY, APRIL 15, 2009

9:06 pm http://www.heraldnet.com/article/20090415/OPINION01/704159932#