2005 HOTC News Archive

WASHINGTON, D.C. – April 13, 2005 –

A homeownership tax credit (HOTC) bill was introduced yesterday in the House by Reps. Tom Reynolds, R-N.Y., and Ben Cardin, D-Md. to spur the production of affordable housing. H.R. 1549, the Renewing the Dream Tax Credit Act, again proposes a credit modeled after the low-income housing tax credit (LIHTC); developers and investors could receive a tax credit of up to 50 percent of the cost of constructing a new home or rehabilitating an existing property. For the fifth consecutive year, the homeownership tax credit was also funded in the Bush Administration's proposed annual budget. Similar legislation received strong bipartisan support in both the House and the Senate, garnering more than 300 House cosponsors during the 108th Congress.


WASHINGTON, D.C. – February 7, 2005 –

In his 2006 federal budget request released today, President George W. Bush again proposes creating a Single Family Homeownership Tax Credit to increase the supply of single-family affordable homes by up to an additional 50,000 homes annually. Under the plan, builders of affordable homes for middle-income purchasers will receive a tax credit awarded by state housing finance agencies. To be eligible for the credit, single–family developments must be located in a census tract with median income equal to 80 percent or less of area median income, with occupancy limited to homebuyers in the same income range. In total, the proposed tax credit would provide $2.5 billion over five years. State housing finance agencies would be given credit authority equal to the amount provided for low-income housing tax credits (LIHTCs), which in 2004 was the greater of $2.075 million or $1.80 per capita.


WASHINGTON, D.C. - January 27, 2005 -

The Census Bureau released data today showing that a new national homeownership record was set in 2004. The new annual rate of 69.0 percent surpasses the previous record of 68.3 set in 2003. The new quarterly rate of 69.2 percent ties the all-time record set in the second quarter of 2004 and means there are now 74,414,000 American families who own their own homes. In a statement responding to the news, the U.S. Department of Housing and Urban Development says the Administration will propose legislation in 2005 to create a Zero Downpayment Mortgage option in FHA. HUD also says it will also ask Congress to enact a Homeownership Tax Credit that will encourage the production of homes for moderate-income families.