Dreier Co-Authors Responsible Homeowners Act

Press Release

Dreier Co-Authors Responsible Homeowners Act

Congressman David Dreier (R-San Dimas), Rules Committee Ranking Republican, helped unveil today a bill that will restore our housing market, promote responsible homeownership and help get our economy growing again. Dreier is an original co-sponsor of the Responsible Homeowners Act, the House Republican bill aimed a fostering a housing recovery. His proposal to offer a tax credit to responsible home-buyers who make a substantial down payment on their purchase is the centerpiece of the legislation.

"The housing market has been at the center of our economic downturn from the beginning, and irresponsible behavior set the stage for the housing crisis in the first place," Dreier said. "That's why we have made a down payment tax credit a central component to our plan to get the housing market back on its feet. This proposal will jumpstart the industry and begin to clear away the excess supply that's dragging down prices and contributing to the vicious cycle of stagnant sales, falling home values, and foreclosures. It is designed to assist only those buyers who are able to responsibly purchase a home with a down payment. This will guard against the irresponsible behavior that has been at the root of our crisis and ensure that homeowners have equity, and a real stake, in their homes."

The Responsible Homeowners Act provides a $15,000 tax credit for all primary residence purchases with a five percent down payment or more. Unlike the $8,000 tax credit that was implemented in the stimulus bill earlier this year, the credit in the Responsible Homeowners Act is not limited to first-time buyers. This will help not only new homeowners, but all working families including those who may be forced to move because of a job loss, growing families looking for something bigger, or the empty nester looking to downsize. The credit would apply to purchases made before July 1, 2010, helping to stimulate an immediate surge in home sales. The bill also bars those who contributed to the housing crisis through fraud and other abuses from receiving benefits or assistance - a provision that was absent from the enacted stimulus bill. This bill specifically directs the FBI, Department of Justice, FHA, and other government housing agencies to step up investigations of mortgage fraud and abuse and authorize necessary funds to prosecute such crimes. For more information on the Responsible Homeowners Act, please click here.

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