HOMES Act of 2024 Home Ownership, Mortgage, and Equity Savings Act of 2024
The bill impacts existing laws governing retirement accounts and their permissible investments. It introduces a significant change that could promote homeownership and strengthen familial ties by making it easier for families to support one another financially in acquiring residential properties. This could lead to increased homeownership rates among families utilizing these accounts, thereby creating a ripple effect in the housing market and potentially influencing home values and economic conditions related to real estate.
House Bill 9958, also known as the HOMES Act of 2024, aims to amend the Internal Revenue Code of 1986 by permitting certain transactions involving individually directed accounts relating to residential property owned by family members. This bill allows account holders to invest their retirement plan assets in real estate that serves as a primary residence for themselves or their family members, thus facilitating access to homeownership for more families. By easing restrictions on these familial transactions, the bill seeks to encourage the use of retirement savings for housing-related purposes.
Notable points of contention surrounding HB9958 may arise from concerns about the financial risks associated with allowing retirement funds to be used for real estate purchases. Critics could argue that this may jeopardize the financial security of individuals' retirement savings. Additionally, there may be discussions about the implications of such provisions on the broader real estate market and the potential for speculative investments, which could lead to volatility in housing prices.