State to offer new home-buying incentive

Plan to reimburse property tax OK’d.

The Missouri Housing Development Commission today approved a plan in which Missouri families making less than $98,000 a year who buy a home in 2010 would receive a reimbursement to cover $1,250 of their property tax bill.

Another $500 would be available if the new homeowner invests in energy-saving home improvements or appliances.

The commission voted 7-1 to approve the plan, with Lt. Gov. Peter Kinder voting “no” and describing it as a welfare program for those who had a higher income than he received as the state’s lieutenant governor.

Kinder, a Republican, called the program a “half-baked proposal” and questioned whether it was in the mandate of the state housing agency.

“As the lowest paid of the six constitutional statewide officials, that’s more than I make,” Kinder said.

“Since when are we as the commission and the state getting into the welfare business for people who make less than $100,000 a year?”

Gov. Jay Nixon and state Treasurer and MHDC Chairman Clint Zweifel, both Democrats, had proposed the program in the latest of a series of government subsidies that encourage people to buy a new or existing home.

Zweifel called the proposal a comprehensive plan to provide tax relief.

“I don’t think providing property tax relief during these tough economic times is welfare,” Zweifel said. “We don’t have a lot of time. This way is simple and quick. The key goal is to put these resources to work. It’s a common sense proposal.”

The program is called HOPE — home ownership purchase enhancement. Funds would come from $15 million in reserves held by the MHDC from balances achieved from the management of mortgage loans. The funds would cover the property taxes for between 9,000 and 11,000 families on a first-come, first-served basis.

Eligibility for the program is based on income guidelines connected to the geographic region where the home sale takes place. The income range for individuals or families who could qualify is between $58,300 and $98,560.

Greg Spurgeon, MHDC single-family housing administrator, said a household in Boone County with an annual income of $88,200 or less would qualify for the program, no matter how many people live in the household.

The home-buying incentive comes on top of existing federal incentives that provide a tax credit for first-time home buyers as well as another credit for buyers who have owned their current homes for five years. Those credits are scheduled to expire in April.

The housing commission is a quasi-government agency that finances the creation of home loan funds through the sale of low-interest bonds. The program approved today does not require approval by the legislature.

The commission today also approved providing $5 million for its program that provides cash assistance for loans for first-time homebuyers to cover down payments and closing costs.