[Congressional Record Volume 154, Number 74 (Tuesday, May 6, 2008)]
[Extensions of Remarks]
[Page E830]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         INTRODUCTION OF HOME OWNERSHIP TAX CREDIT LEGISLATION

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                             HON. LEE TERRY

                              of nebraska

                    in the house of representatives

                          Tuesday, May 6, 2008

  Mr. TERRY. Madam Speaker, today I, along with several of my 
colleagues, am introducing legislation to provide homebuyers with 
incentives to purchase as a way of eliminating the excess inventory of 
homes, relieving some of the pressure on falling housing prices, and 
increasing housing demand at a time when mortgage lenders are 
tightening up their loan requirements.
  According to the Nebraska Business Forecast Council, December 2007, 
inventories of completed and unsold housing units in Nebraska remain 
high. Although housing construction in Nebraska did not experience the 
surge seen on the east and west coasts, it could take the balance of 
2008 before new house inventories in Nebraska are drawn down. Reducing 
these housing stocks in Nebraska is critical to the continued growth of 
Nebraska home builders and the many other sectors of the economy 
dependent on the housing construction industry.
  According to the National Association of Realtors, total housing 
inventory rose 5.5 percent at the end of this January to 4.19 million 
existing homes available for sale, which represents a 10.3-month supply 
at the current sales pace, up from a 9.7-month supply in December. 
Former Federal Reserve Chairman Alan Greenspan noted in November 2007 
that reducing home inventories is critical for the health of the 
economy.
  Madam Speaker, under the legislation I am introducing today, home 
buyers who purchase a qualified principal residence within a year of 
the Act's enactment will be eligible for a one-time tax credit of 10 
percent of the home's purchase price, up to $10,000. Mortgages which 
exceed the maximum original principal obligation of a mortgage the 
Federal Home Loan Mortgage Corporation will purchase, will not qualify.
  American taxpayers should not bear the burden of bailing out scam 
artists and speculators. This bill provides a market incentive which 
works to actively reduce local inventory of homes, stimulate the 
economy and empower homebuyers. I encourage my colleagues in the House 
to examine this bill and join me in helping provide Americans with a 
viable pathway to home ownership.

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