U.S. Rep. Tracey Mann (R-KS) was among a bipartisan group of lawmakers that introduced legislation to help first-time home buyers.
The First-Time Homebuyer Empowerment Act would allow the use of leftover 529 plan funds tax-free to buy or build a first home. This legislation seeks to remove barriers that first-time home buyers face in putting up a down payment.
“Homeownership is the heart of the American Dream,” Mann said. “The ability to provide a safe, stable place to raise a family is so important for the future of our country. Today, too many young Americans feel that owning a home continues to become more and more out of reach. Our legislation gives people more flexibility on how to use their savings, opening up pathways for more Americans to own equity in their homes.”
Along with Mann, the bill was introduced by Reps. Mark Alford (R-MO), Lou Correa (D-CA), and Tom Barrett (R-MI).
“This bill would give hard-working American taxpayers on Main Street greater flexibility to put the money they’ve earnestly saved toward one of the largest investments they can make—buying a home,” Correa said. “In Orange County and across our state, housing has only become more unaffordable. This would mark an important step toward giving aspiring home-owners across the country the tools they need to build and sustain financial stability—for themselves and their children.”
The bill is supported by the National Association of Realtors, National Association of Homebuilders, Mortgage Bankers Association, Institute of Real Estate Management, Kansas Association of Realtors, Missouri Realtors, Iowa Association of Realtors, Michigan Association of Realtors, and California Association of Realtors.
“NAHB commends Reps. Mann, Alford and Correa for introducing the First Time Home Buyer Enhancement Act, legislation that would allow first-time home buyers to use funds from their 529 savings accounts to buy their first home,” Buddy Hughes, chairman of National Association of Home Builders, said. “Saving for a downpayment is a major barrier for first-time home buyers and this bill would help hard-working families to get a toe hold on the homeownership ladder.”