December 18, 2009
Gov. Nixon, Treasurer Zweifel applaud passage of property tax relief for homebuyers by Housing Development Commission
JEFFERSON CITY, Mo. - An initiative proposed by Gov. Jay Nixon and State Treasurer Clint Zweifel to provide property tax relief to Missouri homebuyers was approved today by a 7-to-1 vote of the Missouri Housing Development Commission. This initiative is expected to provide property tax relief for 9,000 to 11,000 Missouri families.
Under the new program, eligible Missouri families who enter into a contract to purchase a new or existing Missouri home after Jan. 1, 2010, would have their property tax for the year paid, up to $1,250. In addition, to support the creation of "green jobs" in Missouri, families would be eligible for an additional $500 in tax relief if they purchase an energy-efficient home, or items to make the home more energy-efficient, such as Energy Star appliances. The total tax relief for any one family would be capped at $1,750.
"When Missourians become homeowners, they achieve a piece of the American dream, while also boosting our state's economy," Gov. Nixon said. "This program will help thousands of Missouri families realize the dream of homeownership by relieving their property tax burden for one year and encourage fiscally sound, resource-saving practices. By offering this tax relief, working Missourians will be able to pump more money into our economy, and I applaud the MHDC for taking this important step today."
The energy-efficiency initiative was part of a larger, $35 million package approved today by the MHDC. The overall package also includes funds to provide down-payment and closing-cost assistance for first-time homebuyers and for the construction of rental housing.
Treasurer Zweifel, who is the chairman of the MHDC and made the motion for the package, joined with Gov. Nixon in praising the commission's vote.
"Passing this $35 million package ensures construction continues on homes and is a commitment to job-creation in Missouri," Treasurer Zweifel said. "Housing is an important component of getting our economy moving again, and we need to do everything we can to put people to work in good-paying jobs. Through innovative use of Recovery Act funds and MHDC reserves, we were able to craft a $35 million package to invest in communities, put people back to work and help responsible homeowners and renters find a high-quality place to call home."
Included in the overall package approved today were the following key items:
- $5 million to fund down-payment and closing-cost assistance for the First-Time Homebuyer Program;
- $15 million in Recovery Act funds to provide GAP financing for construction of rental properties in 2010;
- $15 million in unencumbered MDHC reserve funds for the tax-relief and energy-efficiency initiatives; and
- Specific requirements for anti-fraud and accountability protections for these funds.
Funds for the tax-relief and energy-efficiency initiatives will be available after Jan. 1, 2010, on a first-come, first-served basis. Forms and affidavits will be part of the documents executed by the purchaser at the closing of the sale to prevent fraudulent use of funds. Additional receipts and documentation will be required for proof of energy-efficiency upgrades.
Additional information about this homebuyer incentive will be posted to the state’s Web site, www.mo.gov, as it becomes available.