Housing

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Major Issues

Housing

Recent Housing News:

Statement On Final Passage Of The Housing And Economic Recovery Act, Senate Floor
July 26, 2008

Views Of Leahy And Sanders
On State’s Plan For Leahy-Sanders Funding To Meet The Needs Of Vermonters And Communities Stricken By The Foreclosure Crisis
November 17, 2008

How The American Housing Rescue And Foreclosure
Prevention Act Of 2008 Might Help Vermonters

The American Housing Rescue and Foreclosure Prevention Act is the most significant piece of housing legislation to come out of Congress in almost two decades. It offers immediate help to homeowners at risk of losing their homes to foreclosure, it offers qualifying first-time home buyers a $7500 tax credit and creates new federal programs to create desperately needed affordable housing. Below, please find a few of the key provisions of the legislation. You can also read a PDF of the summary of the bill that the Senate Banking Committee released.

First-time Home Buyer Tax Credit:

Vermonters buying their first home between April 9, 2008, and July 1, 2009, may be eligible for a $7500 tax credit on their 2008 taxes. That means if you bought your first home this year and normally pay $7500 in federal income taxes, this year you’d owe nothing. To be eligible you will need to meet certain income eligibility requirements (the credit will begin to phase out if you are single and make more than $75,000 a year or are married filing jointly and make more than $150,000 a year). In addition, if you take this credit, you will need to repay the credit with zero interest during the next 15 years. More information will be available shortly about this tax credit.

Increases The Standard Deduction For Home Owners

If you are a Vermonter who usually claims the standard deduction on your income taxes (meaning you don’t itemize), on your 2008 federal return you may be able to take an additional $500 property tax deduction (or $1,000 on a joint return). More information will be available shortly about this tax credit.

For Those At Risk Of Foreclosure:

The new law will help Vermonters facing foreclosure by allowing you to renegotiate out of your adjustable-rate, unaffordable mortgage into a fixed-rate mortgage guaranteed by the federal government. Only homeowners facing the threat of foreclosure and whose total housing payment constitutes more than 31 percent of your total income can qualify. Your bank must approve the renegotiation. More information will be available shortly.

To help families avoid foreclosure, the law provides $180 million in additional funding for housing counseling and legal services for distressed borrowers. These funds will be distributed by the Neighborhood Reinvestment Corporation by the end of 2008 to ensure families can quickly get the help they need. Such counseling services are offered in Vermont by the Central Vermont Community Land Trust, Inc. in Barre, the Champlain Housing Trust in Burlington, the Gilman Housing Trust, Inc. in Newport, NeighborWorks of Western Vermont in West Rutland, and the Rockingham Area Community Land Trust, Inc. in Springfield.

Resources For Community Housing Developers

Mortgage Assistance

Are you struggling to keep up with your mortgage payments as a result of an adjustable rate mortgage? The State of Vermont has established a mortgage assistance program to help Vermonters facing foreclosure. Click below for more information:

The new law includes the creation of the first major affordable housing creation program in almost two decades – the Affordable Housing Trust Fund. Starting in 2010 this fund will bring Vermont at least $3 million annually to help build affordable housing. It is funded through contributions from the nation’s largest mortgage guarantee companies – Fannie Mae and Freddie Mac.

In addition, Vermont will receive a one time payment of up to $20 million in HUD Community Development Block Grant funding to help non-profit organizations and communities throughout the State of Vermont invest in abandoned and foreclosed upon properties and turn them into affordable housing opportunities.

Protects Financial Stability Of Fannie Mae And Freddie Mac

As the increasing pressures of today’s mortgage market and financial markets threaten Fannie Mae and Freddie Mac, the government sponsored entities (GSEs) that own more than 40 percent of the mortgages in the United States, the new law ensures that they have access to additional funds through the federal government. The law also requires that GSE’s be held accountable by new federal regulators.

Need Help?
If you, or someone you know, would like more information on housing programs or have questions regarding your rights as a tenant, one of Sen. Leahy's caseworkers may be able to help. His office can provide assistance to Vermonters who have questions about a variety of issues and can help resolve problems with federal agencies. Contact the Burlington office at (802) 863-2525 or toll-free at (800) 642-3193.