Wednesday, July 1, 2009

New Housing Stimulus for Utah? There Might Be a New Home Run Grant

    • Lt. Gov. Gary Herbert said Tuesday he is considering a second round of state stimulus to the housing market, similar to the $6,000 Home Run Grant incentive to homebuyers that helped generate $376.7 million in home sales in the past three months
    • The specifics of the new stimulus program are still being worked out
    • one possibility the group is considering would be a smaller grant that could be given to more people and could potentially include the purchase of existing homes.
    • Another option would use state funds to provide an advance on the $8,000 federal tax credit to first-time homebuyers, who would then have to repay the state when the federal money arrived.
    • The Home Run Grant Program, proposed by Huntsman and approved by the Legislature earlier this year, used $10 million in federal stimulus money to entice prospective homebuyers into purchasing a never-lived-in home.
    • An economic analysis of the program projected that it would create more than 7,200 jobs, generate nearly $240 million in wages and $20 million in property taxes.

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