GOP plan helps families neighborhoods stabilize home prices & protect property values
WASHINGTON DC While Congress struggles to address housing problems across America lawmakers from the House Republican Economic Working Group including Texas Congressman Kevin Brady - today proposed an alternative to government handouts to irresponsible borrowers and lenders expensive bailouts which have raised the ire of American taxpayers.
The Responsible Homeowners Act seeks to reward responsible behavior by offering incentives to help people afford to stay in their homes buy a new one or invest in a neighborhood property that preserves local property values.
The best way to stabilize home prices and protect neighborhood property values is to encourage local solutions rather than wait for Washington to eventually get around to doing something which will most likely be wrong" said Brady. These are new ideas that reward responsible behavior and attract new private investment to solve our housing problems."
The Responsible Homeowners Act lowers mortgage costs for responsible homeowners who are at risk through no fault their own like a job loss. It provides a $5000 refinancing tax credit to help all families cover mortgage refinancing costs buy down points or reduce their principal balance. It also offers a $15000 home purchase credit if a buyer puts at least 5 down and protects companies from lawsuits if they act responsibly to modify a mortgage for someone in need.
In the bill Brady creates a new incentive for neighbors to step in to buy abandoned foreclosed or distressed homes in their neighborhood and community protecting them from capital gains taxes just as if it was their primary residence.
If someone buys another home in their neighborhood or community and maintains it or rents it out until property values rebound why shouldnt they keep the gains? Its good for the neighborhood and will bring home prices back sooner" said Brady.
My belief is that If you invest in your neighborhood well invest in you. Given a choice between the government buying homes in your neighborhood or a neighbor which would you choose?
Right now owners of their primary home can exclude up to $250000 in capital gains from their taxes when the house is sold twice that amount for married couples. Brady would treat investment in another property in the community or neighborhood the same way.
