|Posted:||December 3, 2018 08:46 AM|
|From:||Senator Bob Mensch and Sen. Wayne D. Fontana|
|To:||All Senate members|
|Subject:||First-time Homebuyers Savings Accounts|
|In the near future, I plan to reintroduce Senate Bill 1066 of last session. This legislation would create 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.
Home ownership strengthens communities and provides stability for families. A first-time homebuyers saving account will be an important tool in helping people overcome the financial obstacles to home ownership.
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.
I ask that you please join me in encouraging homeownership for Pennsylvania’s residents and providing a fiscally responsible manner to help consumers purchase their first home.
Please contact Mark Fetzko of my office if you have any questions or concerns related to this information.