Bipartisan Package Will Create Opportunity for Homeownership for All
LANSING, Mich.—Today, the Michigan House of Representatives voted overwhelmingly to pass HB 4290 and SB 145 – a bicameral, bipartisan package of bills that would create Michigan’s First-Time Homebuyer’s Savings Account (FHSA) program.
Together, the package of bills – sponsored by state Rep. Mari Manoogian (D-Birmingham) and state Sen. Ken Horn (R-Frankenmuth), respectively – 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 taxes while allowing the interest on the designated accounts to grow tax-free. These new accounts would have a contribution cap of $50,000.
“Homeownership has been the sign of having ‘made it’ in America my entire lifetime, and yet too many young folks are unable to save up enough to afford their first homes here in our state,” said Rep. Manoogian. “This new program will help set young people and new families up for success, helping our state to retain its best talent and allowing people to stay here in our communities to raise the next generation of Michiganders.”
“This new law sets up the state’s first dedicated savings vehicle for a new home purchase. These accounts will help people and families achieve the dream of homeownership, retain our talented college graduates, and promote financial literacy and smart savings,” said James Iodice, Michigan Realtors® 2022 President. “We are thankful to Representative Manoogian and Senator Horn for their leadership on this issue.”
The bills now go on to Governor Gretchen Whitmer to be signed into law.