Missouri housing agency to help first-time home buyers

Missourians who buy a house next year could get their property taxes paid under a $35 million housing plan approved Friday.

The Missouri Housing Development Commission approved using $15 million from the federal stimulus package and $20 million from a reserve fund to pay for programs that help first-time home buyers pay for their down payment and closing costs, assist anyone who buys a house in 2010 with their property taxes and encourage the construction of rental properties.

Much of the discussion focused on the property tax element. That $15 million program covers up to $1,250 in property taxes per household. It is expected to affect more than 9,000 households.

Gov. Jay Nixon and State Treasurer Clint Zweifel proposed the program. Zweifel is chairman of the housing agency’s board of directors, and Nixon is a board member along with several elected officials and six people appointed by the governor.

Besides receiving up to $1,250, homeowners can get an additional $500 in property taxes covered if they take steps to make their properties more energy-efficient within 60 days of the closing. The work can include installing high-performance windows and programmable thermostats, or more efficient water heaters, toilets and lights. Sealing heating and air conditioning ducts and insulating water heater pipes also is covered.

Under the property tax plan, the income eligibility levels would vary depending on where the house is located, ranging from a maximum household earning of $58,300 to $98,560.

Nixon, a Democrat, praised the agency for approving the idea. Zweifel, also a Democrat, said that helping home buyers with their taxes would help spur economic development.

It is a "simple way to provide a clean, clear tax cut for Missourians," Zweifel said.

Republican Lt. Gov. Peter Kinder was the lone dissenting vote Friday. He questioned whether establishing property tax cuts fit within the housing agency’s purpose and called it a "half-baked proposal."

"Since when are we getting the state and this commission into the welfare business for people who make just a fraction under a $100,000 a year?" Kinder said. "Are you really serious in advancing this proposal?"