Bipartisan Bills Will Help Young People and New Families Buy First Homes to Stay in Local Michigan Communities
LANSING, Mich. —Bills sponsored by Reps. Mari Manoogian (D-Birmingham) and John Damoose (R-Harbor Springs) creating a Michigan first-time homebuyers savings account (FHSA) program have passed the Michigan House of Representatives 89 to 15 and 86 to 18, respectively.
Together, HB 4289 and 4290 would allow first-time homebuyers to open joint or individual savings accounts which would provide up to 20 years of investment deductibility off an account holder’s state income tax while allowing the interest on the designated accounts to grow tax-free. The proposed accounts would have a contribution cap of $50,000.
“For most of the last century, homeownership has been the sign of having ‘made it’ in America. Here in Michigan, we know the struggles that young folks and new families have in saving up for that first home, and I’m proud to have worked in a bipartisan manner to create one new solution to that,” said Rep. Manoogian. “It is my hope that through savings in FHSAs, we can encourage our brightest young talent to stay here in Michigan, and continue to help us rebuild our state from the economic damage of this pandemic.”
“We’re hoping that through FHSAs, we can change the culture around saving for a home into one of long-term planning, promote homeownership in Michigan, build up intergenerational wealth within traditionally low-income communities, and create a future where our young families can really see raising the next generation of Michiganders right here in our communities.”
Having passed through the House, the bills will now move to the Michigan Senate.
Rep. Mari Manoogian represents the communities of Birmingham, Bloomfield Hills, Bloomfield Township, and the eastern portion of West Bloomfield Township. In addition to serving as Deputy Whip for the Michigan House Democratic Caucus, she is also the Minority Vice Chair of the House Committee on Energy and is a member of the House Committee on Commerce and Tourism.