Polis, Coffman Introduce Bipartisan Housing Bill to Create Jobs, Strengthen Neighborhoods
Apr 13, 2011 -
To create jobs by encouraging private, rather than public, investment in the troubled housing market, Congressman Jared Polis (D-CO) and Congressman Mike Coffman (R-CO) today introduced the Investment Property Opportunity Act of 2011 (H.R. 1481). The bipartisan legislation would waive capital gains taxes on private investments made in residential real estate in high foreclosure areas.
“Jump starting the housing market is essential for economic recovery and job creation in Colorado and across America,” said Polis. “Too many neighborhoods have become blighted and local economies have been hard hit by high foreclosure rates. By encouraging responsible private investment in these areas, rather than relying on a taxpayer bailout, we can reenergize our economy, create good American jobs, and stabilize local tax bases and troubled neighborhoods.”
“A healthy housing market is key to our economic recovery. This legislation will spur economic growth by removing an unnecessary tax burden on private investment in communities where high home foreclosure rates have taken a huge toll on the local economy,” Coffman said.
To incentivize investment in heavily foreclosed areas, the Investment Property Opportunity Act of 2011 would waive capital gains taxes on private investments in “distressed housing areas” made within 18 months of enactment and held for 3 years. The investments must be made in “distressed housing areas” or residential properties located in counties where in the period of 1 year prior to enactment: the foreclosure rate was 10 percent above the national average, or the housing market experienced a housing value decline greater than 15 percent, or the community has more than 50 percent of homeowners with greater than 80 percent loan to value ratios.
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