[July 24, 2008]

Bill's provisions would benefit homeowners in the Midlands

(Omaha World-Herald (NE) (KRT) Via Acquire Media NewsEdge) Jul. 24--WASHINGTON -- Nebraska and western Iowa aren't facing the same level of problems with home foreclosures as homeowners in south Florida, Arizona and some other locations are.

But the housing bill that was passed Wednesday by the House is aimed at stabilizing the overall housing industry and shoring up the economy in ways that would benefit Midlanders.

It also includes some specific provisions that could help out the region:

--A $7,500 tax credit for new homebuyers that recipients are required to repay over 15 years.

The Metro Omaha Builders Association had pushed for a tax credit that did not have to be repaid, but the group still was pleased that any credit was included in the bill, said the association's executive vice president, Barbara Byrd.

Byrd said the Omaha metropolitan area now has a historically large inventory of more than 8,000 new and existing residential units. That's because the local housing market has stalled, with banks adopting tighter lending practices and people holding negative perceptions about their ability to afford a house, she said. The tax credit will help jump-start the market, Byrd said.

--Billions of dollars in neighborhood block grant money that could be used to fix up and resell houses. It also could be used to help people stave off foreclosures.

James Thele, an assistant planning director for the City of Omaha, said it's not yet clear how much of the grant money could flow to Omaha or how it would have to be used. However, the city might be able to use the money to get foreclosed properties back on the market or to help people facing foreclosure to stay in their homes.

--A standard property tax deduction for homeowners who don't itemize their deductions when filing their federal income tax returns in 2009.

Nearly 250,000 Nebraska homeowners would stand to benefit from the deduction, according to Sen. Ben Nelson, D-Neb., who pushed for the provision. Taxpayers would be allowed a deduction of up to $500 for a single filer or $1,000 for joint filers.

Median property taxes are higher in Nebraska than in most other states, according to the Congressional Research Service.

--Contact the writer: 202-662-7270, joe.morton@owh.com

To see more of the Omaha World-Herald, or to subscribe to the newspaper, go to http://www.omaha.com.

Copyright (c) 2008, Omaha World-Herald, Neb.
Distributed by McClatchy-Tribune Information Services.
For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

[ Back To TMCnet.com's Homepage ]