Bipartisan Package Will Help Young People and New Families Buy First Homes to Stay in Local Michigan Communities
LANSING, Mich. —Today, State Reps. Mari Manoogian (D-Birmingham) and John Damoose (R-Harbor Springs) introduced HBs 4289 and 4290 a bipartisan package of bills to create a Michigan first-time homebuyer’s savings account (FHSA) program.
Together, the two bills 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 almost a century, homeownership was the real sign of having ‘made it’ in America. With so many young folks unable to save up enough to afford their first homes, our suburban communities – like those in my district – are seeing a flight of talented youth to large cities around the country,” said Rep. Manoogian. “By putting money into FHSAs, parents and grandparents could start setting their kids up for homeownership early in life, while those young folks who haven’t lived in Michigan for years could return to our state to raise the next generation of Michiganders.”
“Saving money for a down-payment is one of the biggest hurdles to homeownership,” said Rep. Damoose. “This program will encourage more young people to begin saving at an earlier age – helping them invest in a better, brighter future.”