Last Wednesday, HB 248, the First-Time Homebuyer and Second-Chance Savings Account REALTOR® bill, sponsored by Rep. Kyle South (R-Fayette), received a favorable report from the Senate Finance & Taxation Education Committee. Senator Greg Reed (R-Jasper) presented HB 248 to the committee. 

HB 248 provides for a savings account for persons who have never owned a home or those that are re-entering the housing market, if they have not owned a home within five years.  The savings from the account can be used to pay for a down payment and/or closing costs for the single-family dwelling.  The bill states that deposits and earnings cannot exceed $60,000, and qualified expenditures must be made in 5 years from opening the account.

Committee Chairman Senator Arthur Orr (R-Decatur) asked questions about the bill that were quickly answered by Senator Reed and the AAR Public Policy team. 

During the meeting, committee member Senator Tom Whatley (R-Auburn) stated, “This bill will help those families struggling to find the resources for a down payment for a home – these people want to be homeowners and this bill will allow them to do it!” Whatley continued saying, “Home sales are a great barometer for economic growth, and I want to thank the REALTORS® for bringing this bill forward."

Senator Jim McClendon (R-Springville) made a motion for a favorable report, which was seconded by Senator Gerald Dial (R-Lineville).  HB 248 passed the committee unanimously 11-0. The Senators present were:

HB 248 now goes to the Senate floor for final passage.

Background: Alabama First-Time Home Buyers Savings Accounts (FHSA)

REALTORS® are advancing a program to help promote homeownership with potential first-time homebuyers in Alabama. The legislation would establish First-Time Home Buyers Savings Accounts to help first-time homebuyers save money toward the purchase of their first home. The FHSA Bill creates tax-free savings accounts that a first-time buyer can use on the down payment and closing costs of a residence. These savings accounts will allow more people to experience the American dream of homeownership. To learn more about the First-Time Homebuyer Savings Account, click here.