Legislation recently introduced by Sen. Bob Mensch (R-24) that would help first-time homebuyers advanced out of the Pennsylvania Senate’s Urban Affairs and Housing Committee Wednesday.
SB 157 would let eligible residents open special savings accounts and get tax deductions to save expenses like down payments or closing costs.
“Homeownership can help to strengthen communities and provide stability for growing families,” said Mensch. “A first-time homebuyers saving account will be an important tool in helping people overcome the financial obstacles to homeownership.”
First-time homebuyers and those who have not owned or purchased a home in the three years before purchasing a home would be eligible for the program. Account holders would be allowed to save up to $50,000 over a 10-year period. Annual contributions would be capped at $5,000 for single taxpayers and $10,000 for those filing jointly.
“It is estimated that this type of savings account program in Pennsylvania could result in an annual increase of up to 4,000 home purchases within the state,” Mensch said. “The result would be an overall positive impact on Pennsylvania’s economy, spurring additional economic activity, job creation, and earnings for households. It’s estimated that the economic impact could range between $7.8 million to $68.8 million.”
Mensch represents residents of parts of Pottstown, Upper and West Pottsgrove, and much of the Perkiomen and Upper Perkiomen valleys. The legislation would serve as an important tool in helping people overcome the financial obstacles to homeownership.