BERKLEY WAYS AND MEANS COMMITTEE SET TO VOTE ON MORE HOUSING HELP FOR FAMILIES

(Washington D.C. - April 8, 2008)  Congresswoman Shelley Berkley is cosponsoring new legislation that will provide tax credits to first-time homebuyers, increase access to low-income housing and give families a new option to help them save on property taxes.  As a member of the powerful House Committee on Ways and Means, Berkley is working to prevent more foreclosures and increase access to affordable housing opportunities, while also focusing on ways to assist families in the purchase of their first home.    

"Families in the Las Vegas Valley have been hard hit by the on-going housing crisis and this package will help by making it easier to deduct property taxes, by increasing access to low-income housing help and by offering up to $7,500 in tax credits to first time homebuyers.  As a member of the powerful House Ways and Means Committee, I am working to pass this vital package which will aid families in the Las Vegas Valley struggling with high mortgage rates, high rent, high down payment costs or the loss of a home to foreclosure," said Berkley.  "We plan to vote on this package in the coming days with the hope that we can speed along this help for families in Nevada and nationwide."        

The Housing Assistance Tax Act of 2008 provides tax credits to first-time homebuyers, improves access to low-income housing and allows families to deduct property taxes, as well as other provisions.  The legislation, introduced by House Committee on Ways and Means Chairman Charles B. Rangel (D-NY), will be considered by the Ways and Means Committee tomorrow and by the full House of Representatives in the coming weeks.  The Housing Assistance Tax Act of 2008 is designed to complement efforts in the House Committee on Financial Services to address the growing rate of foreclosures nationwide.

Highlights of the Housing Assistance Tax Act of 2008

• First-time homebuyer tax credit to assist in making a down payment on a home.  This would provide individuals and families with a refundable credit (equivalent to an interest-free loan) of ten percent of the purchase price of their home (up to $7,500).  Taxpayers would be required to repay any amount received under this provision over 15 years in equal installments.  The credit will be phased out for taxpayers with adjusted gross income in excess of $70,000 ($110,000 in the case of a joint return).

• Additional standard deduction for real property taxes to help homeowners who claim the standard deduction by allowing them to claim an additional standard deduction of up to $350 ($700 for joint filers) for State and local real property taxes.  This provision applies for 2008.

• Temporary increase in low-income housing tax credit and simplification of the credit.  This will help put builders to work to create new options for families seeking affordable housing alternatives. The credit will also be simplified to improve its effectiveness.

• Temporary increase in state issued mortgage revenue bonds to allow for the issuance of an additional $10 billion of tax-exempt bonds to refinance subprime loans, provide loans to first-time homebuyers and to finance the construction of low-income rental housing.

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