Tax Credit Deadline
As a builder who wishes to continue to serve first-time home buyers I am apprehensive, to say the least, to watch time tick away for one of the very few stimulus programs aimed at housing recovery. As an executive member of the Northern Virginia Building Industry Association (NVBIA) I have long been an advocate of affordable housing in Fauquier and surrounding counties - regardless of the economic times.
Home builders are collectively voicing their concerns that the tentative signs of a housing recovery they have only started to see in recent months may disappear with the expiration of the $8,000 housing tax credit for first-time buyers on Dec. 1.
With the tax-credit deadline for home closings only a few months away, builders say that they don't expect to receive much additional mileage from the current housing stimulus measure, adding that progress in turning around home sales could come to a halt unless the credit is extended for one more year and expanded to cover all eligible buyers of a principal residence.
Builders had a chance to voice their opinions in an Aug. 13 media teleconference held by the National Association of Home Builders (NAHB) as part of the ongoing "Revive Housing, Restore America" campaign, which is aimed at getting Congress to focus on housing as a means of creating jobs and pulling the nation's economy out of a devastating recession.
In a major grassroots effort, builders across the country - joined by their business associates, customers and members of the public - are carrying their message to members of Congress, who are home for their August recess until they return to Washington on Sept. 8.
Home builders are encouraging their communities to support the "Revive Housing, Restore America" campaign by directing individuals to NAHB's new consumer Web site. Located at www.ReviveHousingNow.com, this page educates consumers why stimulating housing by urging Congress to extend and enhance the first-time home buyer tax credit will help restore the economy, and includes information on how to contact their federal lawmakers and what to say when they do.
"It is absolutely critical that every NAHB member lend his or her voice as a constituent in this effort, by personally communicating with their elected officials while they are home this month," said NAHB Chairman Joe Robson.
Last week, with the campaign barely a week old, NAHB generated more than 1,300 letters to Capitol Hill and was receiving encouraging reports of upcoming meetings with builders and U.S. representatives.
In addition to the extension of the tax credit, builders are focusing attention on the urgent need for correcting a faulty appraisal process - using foreclosed and distressed properties as comps, ending the credit crunch for acquisition, development and construction (AD&C) loans and expanding Net Operating Loss (NOL) carryback provisions for businesses.
Each of these actions would generate significant job growth. Extension and enhancement of the tax credit would spur 383,000 additional homes sales, including 80,000 housing starts in the near term, and create nearly 350,000 jobs over the coming year.
Through keeping homes affordable and by sharing the dream of ownership with more first-time home buyers we may have found the upside in a down market.
A home cannot be valued in monetary terms alone because it is so much more than just an investment. Not only can homeownership be a steppingstone to greater financial security, it provides a permanent place to call home and great personal satisfaction.
Homeownership strengthens both the nation's people and its communities. It is truly a cornerstone of the American way of life.
If time is running out on your dream of owning a home, there may still be hope; "Just Ask a Builder."
For more information about owning your first home e-mail joel@goldenrulebuilders.com or write to "Ask a Builder" at P.O. box 294, Catlett, VA 20119
Barkman is president of the Fauquier Chapter of The Northern Virginia Building Industry Association.
Read Joel's column weekly in the
3409 Catlett Road, Catlett, Virginia 20119