FEDERAL REAL ESTATE NEWS

Federal News

President Obama signs Economic Stimulus Act into law
On Tuesday, February 17, President Barack Obama signed the American Recovery
and Reinvestment Act of 2009 into law. The $789 billion measure devotes roughly
35 percent to tax cuts to occur in 2009 and 2010. The final bill includes
several components of the NAR housing agenda including:

Homebuyer Tax Credit: Eliminating the repayment provision of the first-time
homebuyer tax credit going forward, increasing the limit from $7,500 to $8,000
and extending the timeline of the credit to first-time home purchases between
January 1, 2009 and December 1, 2009. The credit will be claimed on a tax
return to reduce the purchaser's income tax liability. If any credit amount
remains unused, then the unused amount will be refunded as a check to the
purchaser.

• FHA, Fannie and Freddie Loan Limits: The bill reinstates last year's 2008 loan
limits for FHA, Freddie Mac, and Fannie Mae loans. These limits were equal
to the greater of 125 percent of the 2008 local area median home price or
$271,050
for FHA and $417,000 for Fannie and Freddie with an overall maximum cap of
$729,750 for high cost areas.
•
Foreclosure Mitigation and Neighborhood Stabilization: Funding for states and
local communities to be used for neighborhood stabilization activities for
the redevelopment of abandoned and foreclosed homes.