American Recovery and Reinvestment Act becomes law, contains important real estate provisions

The American Recovery and Reinvestment Act contains important housing provisions, which were lobbied for by the leadership of the Texas Association of REALTORS® during a recent visit to Washington, D.C. Some of these provisions include:

• Homebuyer tax credit: The bill provides for an $8,000 tax credit for first-time homebuyers who purchase a principal residence between Jan. 1, 2009, and Dec. 1, 2009. The credit does not require repayment.
• FHA, Fannie Mae, and Freddie Mac loan limits: The bill reinstates last year's 2008 loan limits for FHA, Freddie Mac, and Fannie Mae loans.
• Neighborhood stabilization: The bill provides $2 billion in additional funding for the Neighborhood Stabilization Program, which provides grants to states and localities to address problems that can be created when whole neighborhoods are decimated by foreclosures.
• Commercial real estate: Commercial real estate is affected primarily through provisions of the bill focused on green building and energy efficiency as well as business tax incentives. HR 1 provides significant funds for state energy programs, which could be used to support commercial property owners' investment in energy-efficiency upgrades.

Visit Realtor.org for more details about what this act means to real estate