The National Association of Realtors (NAR) has called on members of the House of Representatives to cosponsor and support Rep. Sean Maloney’s (D-N.Y.) First Time Homebuyer Pandemic Savings Act.
The legislation would allow first-time buyers to withdraw funds from their retirement accounts under the umbrella of coronavirus-related distributions to use toward the purchase of a home.
“While various barriers have stood in the way of homeownership for younger generations, COVID-19 has pushed the American dream further out of reach for countless families and individuals by no fault of their own,” NAR President Vince Malta said in a news release. “This legislation would make a tremendous difference to those struggling to save for the down payment on their all-important first home.”
Maloney’s bill specifically allows for up to $25,000 of coronavirus-related retirement distributions to be tax-exempt and penalty-free if put toward the downpayment of a first home.
It also extends the coronavirus-related distribution sunset clause to Dec. 31, 2021.
Home prices in most U.S. markets have climbed as the inventory of available homes has tightened. With price constraints compounding with other factors, saving for a downpayment has become exceedingly difficult for many younger Americans and has caused the nation’s homeownership rate to fall well below the historical average.
“Making sure the next generation of homeowners has the resources they need to buy their first home is going to play a big role in our economic recovery,” Maloney said in the release. “This bill is a smart, innovative way to bring new opportunity to new homebuyers and help young families get one step closer to realizing the American dream.”
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