Last week, HB 248, the First-Time and Second-Chance Homebuyer Savings Account Bill, sponsored by Representative Kyle South (R-Fayette), received final passage from the legislature.  Senator Greg Reed (R-Jasper) presented the bill on the Senate floor last Wednesday.

Senator Arthur Orr (R-Decatur) offered two friendly amendments.  The first amendment increased the time a second-chance homeowner has not owned or purchased a single-family residence from five to 10 years and decreased the total tax-free principle and earnings from $30,000 to $25,000 for individual accounts and from $60,000 to $50,000 for those filing jointly.  The second amendment provides for a sunset clause that will terminate the program after five years if not renewed by the Sunset Committee of the Alabama Legislature. Both amendments were accepted.

The Senate passed the bill 22-2 last Wednesday afternoon, and the House concurred with the amendments with a vote of 97-0 on Thursday morning. 

The bill has been delivered to the Governor’s office to request her signature.

A special thank you to bill sponsor Representative Kyle South (R-Fayette), Senator Greg Reed (R-Jasper), the 75 House co-sponsors, and all members of the Alabama Legislature!

Background:

REALTORS® advanced this program to help promote homeownership with potential first-time homebuyers in Alabama. The FHSA bill provides for a savings account for persons who have never owned a home or those that are re-entering the housing market, if they have not owned a home within 10 years.  The savings from the account can be used to pay for a down payment and/or closing costs for a single-family dwelling. The bill states that deposits and earnings cannot exceed $50,000, and qualified expenditures must be made in five years from opening the account. These savings accounts will allow more Alabamians to experience the American dream of homeownership.

To learn more about the First-Time and Second-Chance Savings Account, click here.

Top photo is courtesy of Rep. Kyle South.