NFIP/Tax Credit Update

Contrary to many reports, the United States Senate has not passed the NFIP extension or an extension of the Homebuyer Tax Credit…yet.

I am assured by our colleagues in Washington that progress is being made.  Late yesterday, the US Senate passed an amendment that attaches an extension of the homebuyer tax credit to HR 4213.  The flood insurance (NFIP) extension is included in HR 4213, the “jobs and tax extenders” bill, as well.  To be clear, the tax credit extension is still only for those who were qualified and under contract on April 30.  As you know, under current law the buyers are required to close by June 30.  This extension would change the June 30 deadline to September 30 – a huge help for those who have been involved in a short sale or unable to close because of the lapse in flood insurance coverage.

HR 4213 is subject to a procedure that will require 60 votes in order to pass the full US Senate.  That vote could occur later this evening or sometime tomorrow; however, it is currently not certain if there are 60 votes of support in the US Senate for this bill.  If it does pass, the bill will have to go back to the House and there is no guarantee that the House will adopt the Senate amendments either.

The inclusion of the tax credit extension makes the current NAR Call for Action on Flood Insurance even more important.  Our response rate to this Call for Action has been hovering at around 5%.  That means the Florida Congressional delegation has only heard from 5% of Florida Realtors – I know this issue is much more important than those numbers reflect.  Please forward this link to those in your office who may not have responded yet: http://takeaction.realtoractioncenter.com/campaign/nhip_rhs_two

The extenders bill, at least until this point, is obviously not moving as fast as any of us would like. Continued pressure through the call for action should help in moving that along.