|Posted:||December 3, 2020 01:07 PM|
|From:||Senator Bob Mensch|
|To:||All Senate members|
|Subject:||First-time Homebuyers Savings Accounts|
|In the near future, I plan to reintroduce Senate Bill 309 of last session which 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% to just 32%.
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.
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.
Last session, Senate Bill 309 passed the full Senate and the House Urban Affairs Committee unanimously, but just fell short of the ultimate goal. It was cosponsored by Senators FONTANA, SCARNATI, GORDNER, BROWNE, KILLION, ARGALL, K. WARD, BARTOLOTTA, STEFANO, J. WARD, PHILLIPS-HILL, COSTA, HUGHES, BLAKE, FARNESE, SABATINA, SCHWANK, BREWSTER, BOSCOLA, YUDICHAK and HAYWOOD.
Please contact David Kozak in my office at 717-787-3110 if you have any questions about this proposal.
Introduced as SB157