As the stimulus package continues to advance through Congress, the International Sleep Products Association (ISPA) announced that it has urged Senators to consider and adopt amendments that would address the root causes of our economic troubles: housing, home values and jobs.
Over the past few days, several Senators across party lines have expressed their intent to offer amendments that would, to various degrees, offer an expanded tax credit to home buyers and lower mortgage interest rates. ISPA encourages all Senators to take steps to address the housing crisis. As part of that effort it is critical that the home furnishings tax credit is included in the stimulus package in order to allow Americans to increase their home values and protect jobs in the home furnishing industry.
“The way to immediately stimulate our economy is by addressing housing and the housing related industries,” said Chris Hudgins of the International Sleep Products Association. “A combination of tax credits coupled with low mortgage interest rates will spur consumer demand for housing and home furnishings and lift the broader economy in timely and targeted way.”
ISPA is a member of the Fix Housing First Coalition, comprised of over 2,000 stakeholders (including homeowner and community groups, home builders and manufacturers) advocating for a short-term incentive for qualified home buyers that would stop the fall in home values, restore consumer confidence, create jobs, and lift our entire economy. The specific proposal calls for:
1. A 10 percent tax credit for all qualified home buyers capped at 3.5 percent of FHA, Freddie Mac or Fannie Mae loan limits (equaling $10,000 to $22,000 depending on geographic market). All primary home purchases through December 31, 2009, would be eligible. Repayment would be required only if the home was sold within three years. And the credit would be available at closing, making it easier for buyers to use it as a down payment;
2. A below-market 30-year fixed-rate mortgage for home purchases. The second component of the stimulus plan would provide qualified home buyers with 30-year fixed-rate mortgages at 2.99 percent interest on contracts closed until June 30, 2009 and 3.99 percent interest on closings between June 30 and December 31, 2009; and
3. Continued measures to reduce foreclosures and keep people in their homes.
ISPA is also leading a coalition of home furnishing trade associations that is promoting tax credits for consumers who purchase home furnishings to improve their homes. All major home furnishings industries are represented, with the goal of getting money into homeowners’ hands to significantly increase sales of home furnishings such as mattresses, and lead to the creation of manufacturing jobs.
“As the Senate considers a bi-partisan approach to address our economic troubles, we hope members from both sides of the aisle will recognize the importance of these measures which are temporary, timely and targeted directly to consumers,” added Hudgins.
Established in 1915, the International Sleep Products Association, is dedicated to protecting and enhancing the growth, profitability and stature of the mattress manufacturing industry. ISPA represents over 700 mattress manufacturers and their suppliers throughout the world.