First-Time Homebuyer Savings Act passes House Committee, floor vote looms
BREAKING NEWS: UPDATE 3:00 p.m. 12/9/21...Ohio House unanimously approves the First Time Home Buyer bill on bipartisan vote, now onto Senate
By Beth Wanless, Ohio REALTORS Director of Government Affairs
One of the top legislative priorities of Ohio REALTORS, passage of the House Bill 186 -- the First-Time Homebuyer Savings Act -- was unanimously approved by the Ohio House Ways and Means Committee late yesterday afternoon. The Association is pushing for a full floor vote during session on Dec. 9.
The measure has garnered strong bipartisan support in the Ohio House thanks in large measure to the strong effort by HB 186 Sponsors Rep. D.J. Swearingen (R-District 89) and Rep. Shane Wilken (R-District 91), as well as Ways and Means Committee Chair Rep. Derek Merrin (R-District 47) for helping move this consumer-friendly legislation forward.
Ohio REALTORS played a key role in introducing First-Time Homebuyer Savings Act legislation in the Ohio General Assembly in spring 2019. While the legislation has had a number of successful committee hearings in both the Senate and House over the past three years and has helped attract broad support from a coalition of real estate related trade groups -- including the Ohio Bankers League, Ohio Chamber of Commerce, Ohio Land Title Association, Ohio Manufactured Homes Association, Ohio Mortgage Bankers Association, Ohio REALTORS, Ohio Realtist Association, and the Ohio Credit Union League -- yesterday's Committee vote marks an important first-step toward passage.
“Ohio REALTORS strongly supports the First-Time Homebuyer Saving Act as we believe this savings program will help Ohioans who are interested in owning a home someday realize the American Dream,” said Ohio REALTORS Chief Executive Officer Scott Williams. “Although this savings program will not reduce all barriers to homeownership, it is certainly a tool that will help hard-working Ohioans move closer to their goal in a financially responsible way.”
Ohio would join states like Alabama, Mississippi, Colorado, Oklahoma, Virginia, Oregon, Iowa, New York, Minnesota, and others to offer the First-Time Homebuyer Savings Accounts.
Although an individual could put as much money as they like into the savings account, the interest earned and capital would be tax deductible with annual limits of $3,000 for single filers and $6,000 for joint filers. There would be a lifetime deductible cap of $15,000 for single filers and $30,000 for joint filers.
The funds would need to be used toward the purchase of a home including closing costs and bank fees within 15 years or a penalty may apply. Anyone could open an account, and an account holder could hold an account in their name or in that of another person, such as a child, or grandchild. It also includes an exemption that would mean active-duty military personnel would not be penalized if they were called to duty outside of Ohio, and therefore needed to either move or be out of the state for extended timeline.
