In the ongoing debate over local impact fees I thought I would share one of my daily information deliveries on what is going on at the Federal level to jump start the housing market.  The link on the story is below for you to read in it's entirety, I'm just going to cover the highlights.

I'm sure many of you have heard or read about the "Foreclosure Prevention Act" that is making its way through the Goverment in Washington.  What many are not hearing about is all the little things that are getting attached to it.  The National Association of Home Builders (NAHB) has been pushing since November for a tax credit for homebuyers in order to get the housing market back on track.

Both the House and Senate have their own versions they're supporting. The House Bill offers buyers who have not owned a home in at least three years up to $7,500 in refundable credits if they buy a home in the next year.  The Senate Bill gives buyers up to 7K if they purchase a foreclosed home.  The Senate is also providing relief for builders allowing them to charge current losses against the large gains they posted during the boom.

Robert Toll of Toll Brothers is campaigning for a 15K tax credit with of course no strings attached.

There are of course many elements that contributed to the current Housing Market, but one of the contributors were speculators, investors.  Nothing wrong with that at all they are a important part of the big picture except that many speculators and investors took advantage of loan programs that were intended for homeowners and not investors.  They represented they would be living in the home when they had no intention to do so.  What the NAHB is proposing would allow those speculators and investors to get back in the game and do the same thing all over again.  No one is giving statistics on foreclosed investor properties, with good reason, it would really tee people off.

On the local level we need to pay attention to see what, if any of these Bills pass.  If potential buyers are given tax credits to purchase a home then we don't need to be giving benefits at both ends by doing away with impact fees.  We need to keep in mind just how many people CANNOT AFFORD a home at the prices the bubble inflated them to, and we don't need to "reinflate the bubble"

Tax Credits for homebuying is not a new idea, it was done in the mid 70's and was a 2k tax credit. I realize impact fees are for new construction, I am merely pointing out that with the Lobbyists for the building industry in Washington doing what they can for their own welfare we don't know what we will end up with on a national level.

With inventories so high the market cannot truly bottom out, and until it does there can be no climb up.  Sometimes money just can't fix things, and this is one of them. 

 FAR - News & Events - Builders: Give home buyers a tax credit [1]