|State Property Tax Relief
Program Now Available
HOPE Initiative Offers Up To $1,750 For Qualified Home Buyers
JANUARY 14, 2010 -- A proposal that Governor Jay Nixon and State Treasurer Clint Zweifel introduced calling for the State to pay the first-year property taxes for income eligible Missourian who buy a home took affect New Year's Day. The Home Ownership Pruchase Enhancement (HOPE) program is expected to provide property tax relief for between 9,000 and 11,000 Missouri families.
By a 7-1 vote, the Missouri Housing Development Commission (MHDC) approved the plan during its December 18 meeting. Under the program, eligible Missourians who enter a contract to purchase a new or existing Missouri home after January 1, 2010, will have their first-year property tax paid -- up to $1,250. Furthermore, to support creation of "green jobs" in the state, Missouri families will be eligible for an additional $500 in tax relief if they purchase an energy-efficient home or items, such as Energy Star appliances, to make their new home more energy-efficient.
With the "energy" tax break, the total relief for any one family will be capped at $1,750.
"When Missourians become homeowners, they achieve a piece of the American dream, while also boosting our state's economy," Governor 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."
The energy-efficiency initiative was part of a larger $35 million package that MDHC approved. The overall package also includes funding for down-payment and closing-cost assistance for first-time homebuyers and for the construction of rental housing.
Zweifel, chairman of the MHDC, made the motion for the package at the commission's December 18 meeting.
"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 the MHDC approved were the following key items:
Funds for the tax-relief and energy-efficiency initiatives are now available, 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.
CLICK HERE for more information, including frequently asked questions about HOPE and application documents.
Federal Act Provides $8,000
Tax Credit For First-Time
Homeowners & Up To
$6,500 For Repeat Buyers
The Worker, Homeownership and Business Assistance Act of 2009 offers first-time home buyers, purchasing a principal residence, an $8,000 tax credit. The act also includes a tax credit of up to $6,500 for qualified repeat home buyers. CLICK HERE for more details about the Home Buyer Tax Credits, including frequently asked questions and special guidelines for members of the military.