As housing prices continue to rise, Representative Jimmy Gomez (D-Calif) has introduced a new bill designed to help incentivize the construction of starter homes and offer opportunities for first-time homebuyers to enter the real estate market. Known as the “My American Homeownership Opportunity Act,” the bill provides builders of starter homes a 15% tax credit on construction costs, which increases to 30% if a first-time home buyer purchases the home.
To be eligible for this act, homes must be no larger than 1200 square feet, and the sale price cannot exceed 80% of the median price of homes in the area. These stipulations are designed to encourage home builders to construct smaller, less expensive homes and allow new homebuyers an opportunity to enter the housing market.
Gomez states, “My American Homeownership Opportunity Act will give Americans the opportunity to enter a housing market that’s more fair and affordable, giving them the chance to thrive and get closer to the American dream as generations before them have. Through tens of thousands in down-payment assistance for new home buyers and incentives for builders to create more starter homes, this legislation tackles the housing crisis head-on.”
In addition to incentivizing homebuilders to create more starter homes, the “My American Homeownership Opportunity Act” also provides first-time home buyers up to $50,000 in down payment assistance to help them transition from renting to home ownership.
Gomez hopes the new bill will ease the US housing crisis and increase the number of affordable homes.
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