WASHINGTON,
DC - Treasury Secretary Tim Geithner and HUD Secretary Shaun Donovan
called on Congress to approve three important measures to improve
housing and the housing market for Americans: extension of the First
Time Homebuyers Tax Credit for a limited period, extension of higher
loan limits for home mortgages, and secure funding for the Housing
Trust Fund.
"We welcome
efforts taken by Congress to extend the First Time Homebuyers Tax
Credit for a limited period. This credit has brought new families into
the housing market and contributed to three consecutive months of
rising home prices nationwide," said Secretaries Geithner and Donovan.
"In extending the credit, we urge Congress to include strict measures
to combat tax fraud and protect responsible homeowners. We also urge
Congress to act swiftly to extend the loan limits that currently apply
to most mortgages, helping make rates more affordable for middle-class
families. Finally, we will work with Congress to identify a financing
source for the Housing Trust Fund, which will help provide decent
housing for families hardest hit by the current economic downturn."
"These three
measures will help support our efforts to stabilize the housing market
by providing support for the recovery in housing prices, keeping
mortgage rates low, and helping people who can afford their homes to
avoid foreclosure," said Secretary Geithner.
HUD
Secretary Shaun Donovan said, "These three measures provide
comprehensive support to our recovering housing market and continued
access to affordable housing. While extending the tax credit and higher
loan limits will help promote homeownership, funding the Housing Trust
Fund will provide assistance to renter households impacted by the
economic crisis."
Fact Sheet
Secretary Geithner and Secretary Donovan today announced their support for three key housing measures:
- Extend the First Time Homebuyer Credit, with strong anti-fraud measures.
The Administration supports a limited extension of the First Time
Homebuyers Tax Credit, which is currently set to expire on December 1.
This credit has made the difference in bringing new families into the
housing market. Those buyers, in turn, have reduced the inventory of
unsold homes and contributed to three months in a row of increases in
home prices nationwide. A stronger housing market benefits homeowners
and strengthens the financial system. In order to reinforce the
progress already made this year, the Administration urges Congress to
extend the Credit for a limited period. In doing so, we urge the
Congress to include effective measures to combat tax fraud, including
setting a minimum age for home purchase and requiring documentary proof
of the purchase in order to receive the credit.
- Extend Loan Limits for Mortgage Loans. The
Administration supports a one-year extension of the current loan limits
for the Federal Housing Administration, Fannie Mae, and Freddie Mac.
This extension is vital in helping support the continued availability
of affordable mortgages for many working families and aiding the
recovery in the housing markets. Under present law, the current loan
limits will expire on December 31. Families are already applying for
mortgages that are being turned down or priced higher due to this
impending deadline. The extension of the loan limits is being
considered in the upcoming Continuing Resolution, and we urge Congress
to enact the extensions immediately in order to assure the smooth
supply of capital to the housing market.
- Secure Financing for the Housing Trust Fund.
The Administration is committed to working with the Congress to fund
the Housing Trust Fund. This Fund is an important source of support for
extremely low income families who otherwise cannot afford decent
housing. The Fund was created in the 2008 HERA legislation, but has not
had an effective funding source and so has not been able to fulfill its
important mission. While the President's Budget proposed to fund the
Housing Trust Fund for $1 billion, and fully offset it within the
Budget, today the Administration is announcing that it will actively
work with Congress to identify a specific offset to assure that level
of financing for the Fund.
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