KLOBUCHAR RELEASES PLAN TO HELP FIRST TIME HOME BUYERS GET AHEAD

08/24/2006

U.S. Senate Candidate Called for Tax Credits for First Time Home Buyers from State Fair “Home” Front Porch

St. Paul, MN

Standing on the front porch of a new home constructed by volunteers for the Minnesota State Fair, U.S Senate candidate Amy Klobuchar released her plan to help young families purchase their first home.

“We need to make sure that aspiring homeowners are not priced-out of today’s outrageous housing markets,” said Klobuchar.  “I am proposing a tax credit for first time homeowners to make sure that people are not shut-out from the possibility of buying a home.  The unique part of this proposal is that people can use the credit right at their closing to pay for the closing costs.”

Klobuchar’s first time home ownership tax credit is designed to allow more Minnesotans to become home owners despite rising housing costs.  The plan allows buyers to either sign over credit to a lender at the closing or reduce the total amount of taxes they pay to the federal government by $3,000 for individuals or $6,000 for married couples.  Closing costs are often one of the largest barriers for first time home buyers.  In 2006, the average closing cost in Minnesota is $2,919.

“I am proposing tax breaks for first time homeowners to make sure that people are not shut-out from the possibility of buying their own homes,” said Klobuchar.  Between 1998 and 2005, Minnesota housing sales prices rose 85 percent.

Between 1998 and 2005, Minnesota housing sales prices rose 85 percent and many Minnesota families are feeling the squeeze.

“We’re a young professional couple that’s trying to find a nice modest home in a safe, family centered neighborhood and it’s going to be a bit of a challenge with current home prices, health care costs and gas prices,” said Carey Matthews, a young woman who would benefit from the tax credit.

“Americans don’t want more tax breaks and tax shelters for wealthy corporations and billionaires,” said Klobuchar.  “When I get to Washington, I will stand up for middle class families who are saddled by debt and skyrocketing mortgage rates.”

Klobuchar’s state fair booth, fashioned like a Minnesota house, stands 12 feet by 10 feet and is constructed entirely of pine.  The house was built with the design ideas and labor of campaign volunteers who want to send a Senator to Washington who will fight for Minnesotans facing skyrocketing health care costs, high gas prices and rising home ownership fees.  Over the course of five days, a crew of staff and volunteers worked around the clock and raised the pitched roof to its 12 foot peak and then put finishing touches on a white porch railing and the screened-in Dutch front door.  The Klobuchar campaign house is located at 2006 Judson Avenue (at the corner of Judson Ave. and Underwood St.) at the Minnesota State fair.  For home blueprints and info about how Amy Klobuchar will work to help first time home buyers check out: http://www.amyklobuchar.com