History was made today when President Barack Obama signed into law the 2009 American Recovery and Reinvestment Act which was passed by Congress on February 13th.
This comprehensive bill aims to stimulate America’s economy for the future. The $780 billion bill is made up of tax cuts, mostly for 2009 and spending programs in 2009 and 2010. Tax cuts make up approximately 35% of the bill.
Naturally there are some provisions for housing programs which we will detail here! After all, we are focused on what effects this will have on the Real Estate market both nationally and locally here in Malibu.
There is the very much welcomes modification of the Homebuyer Tax Credit which is for a home purchased between January 1st 2009 and December 31st 2009 worth $8000 to the purchaser. The requirement to repay has been eliminated and if any portion of the credit is unused when claimed on the personal tax return of the purchaser, then the purchaser will receive the difference by way of a check! This is great news!
Also, FHA, Fannie and Freddie loan limts will remain the same as 2008 limits – this was agreed with the provision for the HUD Secretary to make small emergency provisions on small local areas if needed.
Additionally $2 billion has been made available for Neighborhood Stabilization programs where communities decimated by foreclosures can purchase those homes and then make them livable and use them to assist individuals looking for a home in that area who earn below 120% of the areas income level.
In a housing related theme the bill also made provisions for investment in transport and infrastructure for communities to ensure America remains the front runner in having a mobile, educated and technology based population.
Here in Malibu, like most communities it will take some time for the Bill’s effects to come into play. Its passage into law will be watched with interest by all.
If you are interested in purchasing a property or selling a property in Malibu, Pacific Palisades or the surrounding Beverly Hills/southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 or via her online contact form on her website.
4 Trackbacks
[...] have been some efforts from the federal government to help people get loans. This year, the Federal Housing Authority raised the maximum loan limit for Los Angeles County from $271,050 to $729,750 for a single-family residence, according to its Web [...]
[...] “home sales will be 10 to 20 percent higher the second half of this year than last year and we will come out of this recession in 2010.” [...]
[...] spike in sales is still slower than it could be as people are waiting for the full effects of the Obama Administration’s Stimulus plans to come into [...]
[...] Current market conditions are always changing and in this case, changing for the good! [...]