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Govt Unclear On Housing Credit Revival

Posted on: August 31, 2010
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The government has yet to decide whether to bring back a popular tax program that helped spur home sales in recent months, the country’s top housing official said.

Housing and Urban Development Secretary Shaun Donovan said it is “too early” to say if the Obama administration is considering reviving the first-time home buyers’ tax credit program, which expired last April 30. The secretary’s statement came amid reports that Washington is planning to bring back the initiative to revive the sluggish housing market after an unexpectedly huge decline in home sales last month.

Although the government is still undecided on the issue, Donovan said the Obama administration is doing the best it can to help revitalize the housing market, which is a key factor in the recovery of the national economy. Recently, federal officials have announced a refinancing program for certain borrowers and an emergency loan program for unemployed homeowners.

Meanwhile, a number of politicians expressed opposition to plans to restore the tax credit program. They argued that the move will further boost federal deficit. Supporters of the initiative, like Florida’s Governor Charlie Crist and Representative Kendrick Meek, on the other hand, said bringing back the tax incentives will stabilize the housing market.

“I think it would help enormously. I would absolutely encourage the president to support that,” said Crist, who is gunning for a seat in the U.S. Senate in the November elections.

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