PA Bill Aiming To Ease Homebuying Process Passes Senate

HARRISBURG — A bill that would allow individuals to open up a homebuyers savings account for the dedicated purpose of purchasing their first house has passed one chamber of the General Assembly.

State Sen. Bob Mensch, R-24, announced Tuesday that his measure, Senate Bill 157, passed the Pennsylvania Senate following debate on Monday.

The proposal is designed to allow future homebuyers the chance to open up an account of up to $150,000 for the sole purpose of buying a first home with a financial institution of his or her choice.

Those who open up such accounts would be able to deduct up to $5,000 on their individual taxes, or up to $10,000 for a joint account, according to information about the bill provided by the senator's office.

The tax deduction could be for no longer than 10 years, and it cannot exceed $50,000 within a 10-year period, according to the proposed legislation.

"Since the 2009 financial crisis, the number of first-time homebuyers has significantly decreased," Mensch said in a statement.

Mensch said that according to the National Association of Realtors, the share of first-time homebuyers in the national real estate market has dropped from 45 percent to just over 32 percent.

Mensch said his legislation would help to try and increase those numbers, and allow individuals to own their own home, which the senator calls "part of the American Dream."

"Creating this program like so many other states in the country allows Pennsylvanians to make a conscious effort to save money to achieve that dream, and further allows that dream to continue in the beautiful Keystone State," Mensch stated.

The bill will now make its way over to the state House of Representatives, which will be considering the measure for the second straight legislative session.