Fla. property interests want tax credit downpayment
NEW YORK, April 1 (Reuters) - Florida real estate interests are pushing the state to follow Missouri's lead by enabling first-time homebuyers to tap a federal government tax credit for their down payment.
"The tax credit is very nice, but you have to make it work so that people can bring it to the table," said Douglas Buck, director of governmental affairs for the Florida Home Builders Association.
The association is part of a coalition, headed by the Consumer Federation of the Southeast, that includes banker and Realtor associations.
The coalition met on Wednesday with the governor's office to explore the mechanism by which Florida could advance the tax credit, said Walter Dartland, director of the Consumer Federation of the Southeast.
The Missouri program allows homebuyers to receive most of the federal government's $8,000 tax credit for first-time homebuyers when they close on their home by lending them up to 6 percent of the home purchase price or a maximum of $6,750.
The homebuyer then files for the credit and uses the refund to reimburse the state.
The program faces several challenges to implementation in Florida, where the legislature is dealing with a budget crisis, said Buck. The legislature's session is due to end on May 1.
"The budget has blocked out the sun on a lot of things," he said.
Homebuilders have been grappling with a steep decline in the U.S. housing market and tight credit.
Florida, California, Arizona and Nevada have been hardest hit by the bust in the housing market.
Florida is a major market for several large homebuilders. Standard Pacific Corp (SPF.N) has almost 23 percent of its projects there; Lennar Corp (LEN.N) has 19 percent and KB Home (KBH.N) has 15 percent, according to data from analyst Carl Reichardt of Wachovia Capital Markets LLC.
Colorado, Ohio, Pennsylvania and Tennessee are among the states that have been working with the National Council of State Housing Agencies to replicate Missouri's program, according to Garth Rieman, director of housing advocacy and strategic initiatives for the council. (Reporting by Helen Chernikoff; Editing by Toni Reinhold)
