Last night the Senate voted 98-0 to pass the legislation. Next the bill will head to President Obama to be signed into law on Friday.

While the bill extends the $8,000 tax credit for first time home buyers, it also makes available a tax credit to homeowners who have lived in their current residence for at least five years.  The credit for these buyers will be capped at $6,500.

Income levels will be extended from the current limits of $75,000 for a single purchaser and $150,000 for couples to $125,000 and $225,000 respectively.  Above those limits there are diminishing credits available.

Housing interests, especially the National Association of Home Builders and the National Association of Realtors, has pushed strongly for the extension and the Obama administration has also lobbied heavily for its passage. However, not everyone was in favor of it.

Some critics have charged that the tax credit has merely moved sales that would have occurred sooner or later to an earlier date and that, when the credit finally does go away, the market will experience another severe downturn. A diametrically opposed opinion would have it that, while 1.4 million claims have been made, few sales were actually inspired by the credit.  Others have argued that the current interest rates and low housing prices are enough of an incentive without spending tax money. The extension is expected to cost an estimated $11 billion on top of the $10 billion that has been spent to date.

There have also been charges of fraud in the operation of the program.  To combat this the new law has some expanded safeguards including a minimum age of 18 for obtaining the credit, a requirement that a settlement statement accompany the tax return claiming the credit and a prohibition on non-arms length transactions.

Another criticism of the extension has been that it ends just as the “spring market” is getting underway.  Diane Olick writing for CNBC’s RealtyCheck said it “is sort of like offering cheap snow boots in July.”

Robert E. Story, Jr., CMB, Chairman of the Mortgage Bankers Association (MBA), today issued the following statement in response to the passage in the U.S. Congress of legislation to extend and expand the homebuyer tax credit.

“At a time when we are finally starting to see some signs of life in the housing and mortgage markets, extending and expanding the homebuyer tax credit is a critical step to keeping the momentum.  This has been one of MBA’s top single family legislative priorities, and we are very glad to see that policymakers on both sides of the aisle see the importance of this measure.

“The existing credit for first-time homebuyers has helped move a segment of potential homebuyers off the sidelines and into their first homes.  By expanding it to qualified existing homeowners, we can help stimulate even more home purchases for qualified buyers.  I also want to applaud measures in the bill that will help eliminate fraudulent use of the tax credit.”

On Friday, September 11th, 2009, an American flag should be displayed
Outside every home, apartment, office, and store in the United States .
Every individual should make it their duty to display an American flag
On this eighth anniversary of one of our country’s worst tragedies. We
Do this to honor those who lost their lives on 9/11, their families,
Friends and loved ones who continue to endure the pain, and those who
Today are fighting at home and abroad to preserve our cherished
Freedoms.

Thank you

Please note there is no weekend watering and please choose the 2 days per week you want to water Mon/Thur  or Tue/Fri.

If voluntary restrictions are not effective, mandatory restrictions will be imposed.

If you have any questions please give us a call.

On behalf of First Colony MUD 9

Thank you for your cooperation,

Joe Taylor
Superintendent
Quail Valley Utility District
3134 Cartwright Road
Missouri City, Texas 77459
Phone:  281-499-5539
Cell:      281-657-5351
FAX:     281-261-4507
EMAIL: jtaylor@quailvalleyud.org