The new bill passed by Senate earlier in the year allows states to trade in a portion of their 2009 low-income housing tax credits for Treasury Grants. These grants would be used to finance the construction, or purchase and rehab of low-income housing, including those with or without tax credit allocations.
The low housing grants will include funding for the following causes:
- Pontiac Housing Capital Fund for rehabilitating and retrofitting public housing units, making critical safety repairs and increasing their energy efficiency
- Community Development Block Grant Program for funding the Neighborhood Stabilization Program
- Home Investment Partnerships Programs to provide funds to state housing credit agencies for capital investments in low-income housing tax credit projects
- Assisted Housing Stability and Energy and Green Retrofit investments to provide funds to property owners for rental assistance and grants or loans for energy and green retrofit investments
- Funds to local governments and non-profit organizations for removal of lead-based paint hazards in low-income housing.
Real estate professionals should be familiar with the many grants and programs that are in effect to help first-time home buyers. Real estate agents and developers can benefit from many of these programs as well by helping their clients utilize these funds.
Other provisions of the Stimulus Plan include:
First Time Homebuyer Tax Credit
FHA, Fannie Mae and Freddie Mac Loan Limits
Commercial Real Estate
Rural Housing Services
Tax Exempt Housing Bonds
Energy Efficient Housing Tax Credits and Grants
Mark Goedert of Goedert Real Estate has been an active professional in the real estate industry for over 50 years, serving realtors and home buyers in South East Michigan and the Down River area. Mark encourages you to check out his website at https://www.under100000realestate.com/ for local neighborhood and school details, mortgage information, interactive maps, investment property listings, home listings and many more resources.