LINCOLN — Citing soaring housing costs, Nebraska’s new treasurer is pushing a proposal designed to help first-time home buyers achieve homeownership.

Legislative Bill 938, the First-Time Homeowner Savings Account Act, was introduced Friday by State Sen. Bob Hallstrom of Syracuse on behalf of State Treasurer Joey Spellerberg. Spellerberg took the reins of treasury in November after Tom Briese resigned.

Similar first-time home buyer legislation was introduced last session by State Sen. John Cavanaugh of Omaha. Spellerberg’s staff said it was not aware of the Cavanaugh bill when the treasurer was examining models tried in other states. Staff said LB 938 was not meant to be competing legislation, but a vehicle to address one of the largest challenges facing Nebraskans. 

While similar to Cavanaugh’s LB 151, the new proposal allows for higher savings amounts. Under LB 938, eligible individuals could contribute up to $5,000 a year and couples up to $10,000. Contributions would be deductible from adjusted gross income in Nebraska, and earnings from the savings account would be exempt from state income tax when used for homebuying expenses.

Total contributions would be capped at $50,000 for married couples and $25,000 for individuals. Impacts on the state budget would start in 2027, when the bill would go into effect.

Cavanaugh said he was “thrilled” to know others agree with the merits of the homeowner savings account and hopes it’s a sign the idea will advance this session.

Spellerberg, the 35-year-old former mayor of Fremont, said inflation and higher interest rates have made the dream of homeownership “harder than it should be, especially for young families and young professionals.”

Housing is consistently discussed as a top concern and impediment to growth, he said.

 “As the state’s chief financial officer, I believe LB 938 will help more Nebraskans own a home and do it in a financially responsible way.”

This story was published by Nebraska Examiner, an editorially independent newsroom providing a hard-hitting, daily flow of news. Read the original article: https://nebraskaexaminer.com/briefs/nebraska-treasurer-pushes-bill-designed-to-help-first-time-home-buyers/