President Obama is expected shortly to sign H.R. 1, the “American Recovery and Reinvestment Act of 2009” which passed the both houses of the US Congress late last night. Housing related components of the bill include:

  • An $8000 tax credit for first-time home buyers, which does not have to be repaid
  • Reinstates 2008 loan limits for FHA, Freddie Mac, and Fannie Mae (equal to the greater of 125% of the 2008 local area median home price or $271,050 for FHA and $417,000 for Fannie and Freddie, with an overall maximum cap of $729,750)
  • $2 billion in Neighborhood Stabilization funding to help states and localities to purchase, manage, repair and resell foreclosed and abandoned properties
  • Funding for energy programs, which could be used to support property owners’ investment in energy efficiency upgrades

As part of the plan, Virginia stands to receive:

  • $695 million for roads and bridges
  • $116 million for rail projects
  • $2 billion for school construction