“By freeing up existing resources, I’m proud this bipartisan bill gives first-time homebuyers another tool to use in pursuing their version of the American Dream.”
WASHINGTON – Sens. Jon Husted (R-Ohio) and Michael Bennet (D-Colo.) today introduced the First-Time Homebuyer Empowerment Act. This bill would help first-time homebuyers by allowing them to put unused college savings toward a down payment.
The First-Time Homebuyer Empowerment Act would allow people to transfer up to $35,000 in leftover college savings from their 529 plans tax free for the purchase of a first home. Funds in 529 plans traditionally may only be used for education-related expenses or transferred to a retirement account. By freeing up existing resources for first-time homebuyers, the bill would remove barriers to making a down payment and help more families afford a home.
“I’m focused on helping working families get ahead and making life more affordable. Making homeownership more attainable is a critical part of that effort. Too many Ohioans have worked hard, saved responsibly and still struggle to afford a down payment. By freeing up existing resources, I’m proud this bipartisan bill gives first-time homebuyers another tool to use in pursuing their version of the American Dream,” said Husted.
“Across Colorado, too many young people and working families struggle to afford their first home. This bill would allow first-time homebuyers to use the savings they already have to cover a down payment and help put homeownership within reach,” said Bennet.
“Downpayment hurdles continue to block many families from owning a home. The First-Time Home Buyer Empowerment Act provides a common-sense solution that empowers first-time buyers to use their own savings—at no cost to taxpayers. MBA looks forward to supporting this and other efforts in Congress to expand sustainable homeownership,” said Bill Killmer, Senior Vice President of Legislative & Political Affairs at Mortgage Bankers Association.
“NAHB commends Sen. Husted for introducing legislation to help more buyers gain a foothold on the homeownership ladder. The First Time Home Buyer Enhancement Act would allow first-time buyers to use their 529 savings accounts toward the purchase of a first home, helping young adults build on their education, establish roots and create long-term prosperity,” said Bill Owens, chairman of the National Association of Home Builders and a home builder and remodeler from Worthington, Ohio.
Reps. Tom Barrett (R-Mich.), Tracey Mann (R-Kan.), Mark Alford (R-Mo.) and Lou Correa (D-Calif.) introduced the companion bill to the First-Time Homebuyer Empowerment Act in the U.S. House of Representatives.
“Homeownership is the heart of the American Dream. The ability to provide a safe, stable place to raise a family is so important for the future of our country. Today, too many young Americans feel that owning a home is becoming more and more out of reach. I appreciate Senator Husted and Senator Bennet introducing companion legislation to our House bill. By working together in bipartisan and bicameral fashion, we can give people more flexibility on how to use their savings, opening up pathways for more Americans to own equity in their homes,” said Mann.
“Every American deserves a fair shot at owning a home. Too many first-time buyers are working hard and saving yet still can’t reach the down payment. This commonsense bill gives families more flexibility to use their existing savings in tax advantaged accounts, opening the door to the American Dream,” said Alford.
“This bill would give hard-working American taxpayers on Main Street greater flexibility to put the money they’ve earnestly saved toward one of the largest investments they can make—buying a home. In Orange County and across our state, housing has only become more unaffordable. This would mark an important step toward giving aspiring home-owners across the country the tools they need to build and sustain financial stability—for themselves and their children,” said Correa.
“Too many families can’t afford homes that work for them, plain and simple. An easy first step towards changing that reality is to let homebuyers tap into unused college savings in their 529 accounts and put them towards purchasing their first home. I’m proud to join my colleagues on this legislation to incentivize saving for the future and help the next generation achieve homeownership,” said Barrett.
This bill builds on Husted’s work to help more Americans buy a home by reducing the cost of housing. Husted supported the 21stCentury ROAD to Housing Act which focuses on the root cause of rising housing costs by cutting red tape, unlocking housing supply, lowering costs for families, protecting taxpayers and preserving local control.
The full bill is available here.