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NAR: Housing Incentives Critical to Economy
Having a sound and well-functioning real estate sector is critical to our country’s economic growth and development, as well as the growth and sustainability of many small businesses, according to NATIONAL ASSOCIATION OF REALTORS® testimony on Capitol Hill before the House Committee on Small Business.

“By enacting provisions that stabilize America’s real estate markets, you are helping small businesses and America’s communities thrive and prosper,” testified NAR President Charles McMillan.

The 2009 stimulus legislation has proven helpful to small business owners—which includes many REALTORS®—most notably by beginning to stabilize the housing market and stimulate the economy, according to NAR. “Along with other tax bills passed in 2007 and 2008, the 2009 stimulus legislation included a number of provisions that are helping the nation recover,” McMillan said.

What's Working

The focus of NAR’s testimony was on three provisions that are having a positive impact on the real estate industry:

1. The first-time homebuyer tax credit
2. The elimination of the mortgage cancellation tax
3. The SBA loan programs

The 2009 stimulus increased the amount of the homebuyer tax credit to $8,000 and eliminated the repayment feature of the credit. It also extended the program up to December 1, 2009.

“It appears the tax credit is now being embraced based on the number of inquiries we and our members are receiving and the increased activity in the first-time homebuyer market,” said McMillan.

Extending the Tax Credit

NAR has asked Congress to take steps to ensure the tax credit continues to stimulate the housing market and help families achieve the dream of homeownership.

“We hope Congress will extend the tax credit through next year and make the credit available to all purchasers of primary residents,” McMillan said. “Additionally, to be fair, we’d like the repayment requirement from the 2008 stimulus bill to be eliminated so families are not penalized for buying their home just a few months before the new legislation went into effect.”

Making the Mortgage Relief Act Permanent

The second provision is the Mortgage Cancellation Relief Act passed by Congress in 2007. The tax relief has been extended through 2012, but NAR would like to see this become permanent.

“It just doesn’t seem right to further penalize a family that has acted responsibly and has lost their home or been forced into a short sale because of market conditions," McMillan said. "Eliminating the tax on the excused debt will help many families begin to recover more quickly and maybe will allow them to once again own a home."

Granting Loans for REALTORS®

Lastly, NAR addressed the Small Business Administration loan program that provides fee waivers for some of its SBA programs and new loan programs and raised guarantees.

“We applaud these efforts,” McMillan said. “However, the SBA often deems independent contractors, which most REALTORS® are, ineligible for its programs and its standards are not always evenly applied across regions.”

REALTORS® and other independent contractors are often denied access to SBA programs. NAR asked Congress for assistance in making these loans available to more small business helping them to grow and prosper.

Source: NAR

James (Jim) Pewitt
Affiliate Broker
Exit Realty King&Associates
5024 Spedale Ct
Spring Hill, TN 37174
(615) 278-9403

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