By Sabrina Eaton
cleveland.com
(TNS)
WASHINGTON – U.S. Sen. Jon Husted of Ohio has introduced legislation that would let first-time homebuyers use unused college savings toward a down payment, as he heads into a Senate campaign in which affordability has become a central issue.
The Columbus-area Republican faces a tight re-election contest against former Democratic U.S. Sen. Sherrod Brown. Each blames the other’s policies for higher costs hitting Ohioans.
Husted introduced the First-Time Homebuyer Empowerment Act this month with U.S. Sen. Michael Bennet, a Colorado Democrat. It would let people transfer up to $35,000 in leftover college savings from their 529 plans tax-free to buy a first home. Funds in 529 plans traditionally may only be used for education-related expenses or transferred to a retirement account.
”Too many Ohioans have worked hard, saved responsibly and still struggle to afford a down payment,“ said a statement from Husted, who said the bipartisan bill would give ”first-time homebuyers another tool to use in pursuing their version of the American Dream.”
The bill has backing from the Mortgage Bankers Association. Its senior vice president of legislative and political affairs, Bill Killmer, said down payment hurdles block many families from home ownership.
“The First-Time Home Buyer Empowerment Act provides a common-sense solution that empowers first-time buyers to use their own savings—at no cost to taxpayers,” said a statement from Killmer.
Husted’s bill is the Senate counterpart to bipartisan U.S. House of Representatives legislation introduced in February by Kansas Republican Tracey Mann.
The House legislation is pending before its Ways and Means Committee. Husted’s bill has been referred to the Senate Finance Committee.
“Today, too many young Americans feel that owning a home is becoming more and more out of reach,” said a statement from Mann. “By working together in bipartisan and bicameral fashion, we can give people more flexibility on how to use their savings, opening up pathways for more Americans to own equity in their homes.”
Photo credit: Jon Husted for Senate/Facebook
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