HBAA Legislative Alert
HOME OWNERSHIP INITIATIVE INTRODUCED
The Alabama Home Ownership Initiative was introduced on Thursday followed by a press conference by its sponsor, Senator Lowell Barron (D-Fyffe).  Joined by Senator Jabo Waggoner (R- Birmingham), Senator Barron unveiled to the press an ambitious plan to breathe life back into the housing market by reducing the inventory of existing homes by some 7,000 units.  Developed through a partnership between the HBAA and the Alabama Housing Finance Authority, this plan would seek to leverage $1 billion in mortgages by utilizing a one time $6 million appropriation from the Capital Improvement Trust Fund.  Additionally, a one percent fee will be added to the transaction for those homes sold under this program.  The $12 million from the Capital Investment Trust Fund and the one percent fee will provide a guaranty against potential losses due to foreclosures on these loans.

What makes this program attractive to the consumer?  Consumers will benefit from a quarter percent less than market rate and 100 percent financing on 30 year fixed rate mortgages.  Home buyers will also benefit by not paying private mortgage insurance (PMI) on these loans.  The guaranty eliminates the need for PMI which can run as much as $130/month on a $150,000 mortgage.  

Senator Barron has requested that SB 367 be placed on the Finance and Taxation General Fund committee agenda next Wednesday.  Below is a list of the members of that committee.  Contact these members and let them know how important this bi-partisan legislation is to you and this industry and to the economic recovery of the state.


Finance and Taxation General Fund

        NAME                                        SENATE OFFICE #
        Senator Roger Bedford             (334) 242-7862        
        Senator Tom Butler                   (334) 242-7854
        Senator Bobby Singleton          (334) 242-7935
        Senator Kim Benefield              (334) 242-7874
        Senator Steve French               (334) 242-7851
        Senator Rusty Glover                (334) 242-7886
        Senator Hinton Mitchem           (334) 242-7876
        Senator Arthur Orr                    (334) 242-7891
        Senator Myron Penn                 (334) 242-7868
        Senator Trip Pittman                 (334) 242-7897
        Senator Jim Preuitt                   (334) 242-7898
        Senator Hank Sanders             (334) 242-7860
        Senator Scott Beason              (334) 242-7794


Enclosed is the press release that was issued yesterday concerning the Alabama Home Buyers Initiative.  The HBAA encourages all members to contact their Senator, even if they are not on the committee listed above, and ask that they support this important legislation. 

Alabama Senate
Adjourned: 2/12/09
Convene: 2/17/09

AL House of Representatives
Adjourned: 2/12/09
Convene: 2/17/09
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