New Jersey REALTORS® and Builders Host Seminar on Housing and Economic Recovery Act of 2008
Edison, NJ – October 1, 2008 – (RealEstateRama) — The New Jersey Association of REALTORS® (NJAR®) and the New Jersey Builders Association (NJBA), today, hosted a seminar to discuss aspects and benefits of the recently enacted Housing and Economic Recovery Act of 2008. Viewed as “milestone legislation,” the Federal Housing Act provides a much-needed boost to the housing industry by creating more homeownership opportunities.
“We are hopeful that this measure will have a lasting, positive impact on the Garden State’s housing industry,” said Tim Touhey, Executive Vice President of NJBA. “We are pleased to bring building and real estate professionals together to collaborate and discuss how the various components of the legislation, including the temporary tax credit for home buyers, will benefit New Jersey’s residents and its economy.”
During the seminar, panelists from the National Association of Home Builders (NAHB) and the National Association of REALTORS® (NAR) elaborated on certain components of legislation, including the first-time home buyer tax credit and permanent increases to the conforming loan limits for the Federal Housing Administration (FHA) and Government Sponsored Enterprises (GSE). They talked about how the law improves mortgage liquidity, fosters refinancing of troubled loans, expands the supply of affordable rental housing, and provides property tax deductions to individuals or couples who do not itemize their taxes.
“This landmark legislation provides a multitude of tools to help strengthen New Jersey’s housing market,” said NJAR® Executive Vice President Jarrod Grasso, RCE. “For New Jersey, where home prices are higher than other areas of the nation, the increased FHA loans limits is an especially important component. Without a doubt, it gives buyers more financing options. Additionally, the legislation provides temporary property tax relief for homeowners who do not itemize their deductions. As property taxes continue to spiral out of control in the state, this provision is particularly valuable to New Jersey homeowners seeking relief.”
Senior Policy Representative Megan Booth from the National Association of REALTORS® gave an overview of the measure and how it affects FHA and GSEs. NAHB Director of Tax Issues Robert Dietz focused on how the legislation aims to bring first-time buyers back to the housing market through the temporary tax credit. Director of Public Relations Gwyn Donohue from the National Association of Home Builders spoke on how to promote the tax credit in local communities. NAR Tax Counsel Linda Goold addressed the measure’s tax implications.
Goold also spoke about Monday’s Congressional vote regarding the proposed bailout package and what provisions they believe are likely to survive in whatever legislation comes next. She provided an overview of the original bill’s components and discussed what is at stake if Congress fails to act.
“The discussion on the proposed bailout package was insightful,” added Grasso. “It certainly brought to light the need for lawmakers to move swiftly to restore liquidity to the mortgage market, which would stabilize the housing market and protect homeowners. After all, New Jersey’s overall economic stability is directly correlated with the health of the real estate and housing industries.”
New Jersey Department of Community Affairs Commissioner Joseph Doria also attended the seminar to discuss the state’s many housing programs, including available resources and current initiatives. In his remarks, Commissioner Doria highlighted New Jersey’s efforts to increase homeownership through the New Jersey Housing and Mortgage Finance Agency (HMFA). HMFA provides a variety of programs and services that can be used by prospective home buyers and current homeowners.
Some of the programs available through HMFA include:
Live Where You Work (LWYW)- The LWYW program is a home mortgage incentive program that provides low-interest mortgage loans to home buyers purchasing homes in towns where they are employed. The goal of LWYW is to build stronger communities by promoting homeownership and encouraging people to live closer to their jobs. Municipalities currently participating in LWYW include Elizabeth, Jersey City, Morristown, Neptune Township, Rahway, Trenton and Woodbridge.
HOPE– HOPE is an employer guaranteed loan program that offers no downpayment, below-market, fixed rate mortgages to eligible employees without private mortgage insurance. Employers must be approved by HMFA. The program adheres to the same mortgage program requirements as the HMFA Home Buyer Program. Any size company can participate and offer this program to their employees.
Smart Start– The Smart Start Program is available to participants in the Agency’s first mortgage home buyer’s program who are purchasing homes in Smart Growth areas. The program helps these families by offering a second mortgage for downpayment and/or closing costs up to 4 percent of the first mortgage.
“With all of the focus on the federal initiatives, people often overlook the abundance of programs offered by the state. These are valuable programs that will open the door to homeownership for many New Jersey residents. I encourage all prospective buyers and current homeowners to take advantage of the resources provided by HMFA,” concluded Grasso.
The New Jersey Association of REALTORS®, with approximately 53,000 REALTOR® and REALTOR-ASSOCIATE® members, is one of the largest trade organizations in the state. NJAR®‘s membership is comprised of real estate professionals who subscribe to a strict Code of Ethics and are members of the national and local REALTOR® organizations. As the leading advocate for the real estate industry and private property rights in New Jersey, NJAR® is committed to protecting the dream of homeownership. For more information, please visit www.njar.com.
About the New Jersey Builders Association (NJBA) The New Jersey Builders Association is a housing industry trade association of 2,000 member firms including builders, developers, remodelers, subcontractors, suppliers, engineers, architects, consultants and other professionals dedicated to meeting the housing needs of all New Jersey residents and facilitating their realization of the American Dream. NJBA serves as a resource for its members through continuing education and advocacy. The NJBA and its members strive for a better, greener, more affordable New Jersey. Additional information is available at www.njba.org.
For all media inquiries contact:
Danielle Alpert
Media & Public Affairs Coordinator
Phone: (732) 494-4730
Fax: (732) 494-4723
E-mail: dalpert (at) njar (dot) com
