Harvey Realty, Inc.

PRESIDENT SIGNS STIMULUS BILL

President Obama on Tuesday signed the American Recovery and Reinvestment Act of 2009 into law. Among its many provisions, the bill resets the conforming loan limit cap at $729,750, up from $625,500. Numerous counties in California experienced a marked decrease in their conforming loan and FHA limits on Jan. 1 and the stimulus bill reinstates 2008 loan limits through Dec. 31, 2009. C.A.R. and NAR have long advocated for higher conforming loan limits.

The bill also increases the first-time home buyer credit from $7,500 to $8,000, and removes the requirement that the credit be paid back if the buyer stays in the home for at least three years. It also extends the expiration date for the credit from July 1 to Dec. 1, 2009. Home buyers must have purchased a home after Jan. 1, 2009, and before Dec. 1, 2009, to be eligible for the $8,000 credit.

The stimulus package signed by President Obama also contains $308.3 billion in appropriations spending, including $120 billion on infrastructure and science and more than $30 billion on energy-related infrastructure projects. It also allocated an additional $267 billion for direct spending, including increased unemployment benefits and food stamps; and provides $212 billion in tax breaks for individuals and businesses.