Coffman Co-sponsors Legislation to Help First-Time Homebuyers
Colorado’s 6th District is in a “Renters’ Crisis” – half of all renters spend at least 30% of their income on rent
Washington, DC – November 24, 2015 – (RealEstateRama) — U.S. Representative Mike Coffman (CO-06) announced his Co-Sponsorship of H.R. 4114, legislation to assist first-time homebuyers. “Homeownership is a crucial component of the American Dream and that is why I’m committed to passing this legislation.”
A bi-partisan coalition led by Representatives Sean Maloney (D-NY), Jim Renacci (R-OH), Eric Swalwell (D-CA), and Coffman is pushing for the bill’s passage. If enacted, the legislation will allow first-time homebuyers to use more of their tax-free IRA savings for a down payment on a new home.
Current law allows first-time homebuyers to withdraw up to $10,000 from their IRA for a down payment on a home, and this amount has not been updated since 1997. This bill updates the withdrawal limit to $25,000 for the purpose of purchasing a first home. The bill also pegs the amount that may be withdrawn to inflation.
“While I’m pleased with the growth the Denver metro-area has experienced in the past few years, I am concerned with the sky-rocketing rents people have to pay and how hard it is to save for retirement and for a down payment on a house at the same time. I think this is why in the first quarter of 2015 the homeownership rate hit its lowest level since 1989, an alarming trend without an end in sight,” continued Coffman.
Colorado’s 6th district is a ‘renters’ crisis,’ meaning that half of all renters spend at least 30% of their income on rent. To make matters worse, 25.9% of renters in the district spend half of their income on housing.
“Allowing first-time homebuyers to use a portion of their tax advantaged retirement savings for a down payment on a house is a simple, common-sense step toward achieving the American Dream,” continued Coffman.
“With communities throughout the United States in ‘renters’ crises,’ I am pleased to join Rep. Maloney on this bi-partisan bill that makes first-time home buying achievable,” said Coffman. “I look forward to working with my colleagues on both sides of the aisle to push this bill through the House.”
Coffman is a Marine Corps combat veteran and a former small business owner. He serves on the Armed Services Committee and he is a subcommittee chairman on the Veterans Affairs Committee.