DE SB 343

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Description

This Act creates a first-time home buyers' savings plan, called the Homeownership Using Savings and Earnings Plan (the HOUSE Plan), to ignite future homeownership in Delaware by helping residents save for their first home. The HOUSE Plan offers a practical solution that encourages financial responsibility and long-term planning by allowing individuals to save and use funds for eligible costs associated with purchasing a home, such as down payments and closing costs, and costs associated with acquiring a rental lease for a primary residence, such as security deposits and payment of the first month of rent. Earnings on amounts held in in a HOUSE Plan account accrue free from Delaware income taxation. This Act sets how much account holders may contribute, both annually and over the lifetime of an account, and specifies annual income caps for eligibility to open an account. Funds must be used within 20 years after the account is opened. This Act also establishes the HOUSE Plan Board to oversee the design, implementation, and preliminary administration of the Plan. This Act makes homeownership more attainable, builds generational wealth, and strengthens communities, without direct state spending.