|Posted:||January 13, 2021 12:43 PM|
|From:||Representative Rosemary M. Brown and Rep. Ryan A. Bizzarro|
|To:||All House members|
|Subject:||First-time Homebuyers Savings Accounts|
|In the near future, we plan to introduce legislation creating First-time Homebuyers Savings Accounts in Pennsylvania.
Since the 2009 financial crisis, the number of first-time homebuyers has decreased significantly. According to the National Association of Realtors®, the share of first-time homebuyers in the national home sale market has fallen from 45 percent to just 32 percent.
In response, several states have passed legislation to allow first-time homebuyers to deposit money into a savings account, where it goes for the exclusive purpose of purchasing a first home, and the money can be deducted from their state income tax.
It is estimated that this type of savings account program in Pennsylvania could result in an annual increase of up to 4,000 home purchases within the state. The result would be an overall positive impact on Pennsylvania’s economy, spurring additional economic activity, job creation and earnings for households. It’s estimated that the economic impact could range between $7.8 million to $68.8 million.
Home ownership strengthens communities and provides stability for families. A first-time homebuyers saving account can be a tool in helping people overcome financial obstacles to home ownership.
We ask that you please join us in encouraging homeownership for Pennsylvania’s residents and providing a fiscally responsible manner to help consumers purchase their first home.
This legislation passed the House 188-1 on 2/21/19.
Introduced as HB730