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Facing a continued wobbly housing market, local developers and real estate professionals are lobbying Congress to help prop up sales by extending and expanding a homebuyers’ tax credit.

Under the existing timeline, an $8,000 tax credit for first-time buyers expires at the end of November. The U.S. Senate passed a plan that would extend the program to include owners that had lived in their current home for five consecutive years out of the last eight and were interested in buying a new house. Those homebuyers would be offered a $6,500 tax credit.

Any legislation passed by the Senate, though, would have to be reconciled with whatever package the U.S. House approved.

Jason Klindt, a spokesman for Congressman Sam Graves, who represents Northwest Missouri, including Clay and Platte counties, said by e-mail: “Sam is talking with realtors, builders and home buyers to determine if the current tax credit is working and to determine whether to extend or expand it.”

Craig Porter, a real estate developer from Kansas City North, said he is among those who had spoken to Graves about the matter. Porter said any hopes for an economic recovery were tied to success of the housing industry.

“There’s never been an economic recovery that didn’t coincide with a robust housing market,” Porter said. “The tax credit needs to be extended and expanded to include not only the first-time home buyers.”

Porter said builders in Lake Meadows, a subdivision he is developing in Smithville, had witnessed the success of the $8,000 tax credit for first-time buyers.

“We’ve sold five out of eight houses we started,” Porter said. “We’re going to start four more and I think we have buyers for two of them.”

Porter said the houses ranged in price from approximately $140,000 to $180,000, lower than they might be in a better market.

“This is a great time to buy,” Porter said. “Interest rates are low and the cost of building has gone down. People are getting good deals.”

Lucy Terry, who represents Liberty Landing, a manufactured home community in south Liberty, said many people do not realize that mobile homes are also eligible for the tax credit.

Terry said the Missouri Manufactured Housing Association was lobbying Congress to extend the tax credit.

“The manufactured home niche is small, but it addresses the need of people who want to own an affordable home and invest in the community,” she said.

Terry said a buyer could move into a new three-bedroom, two-bath manufactured house for $65,000. Used mobile homes are as low as $8,000, she said.

The Kansas City Home Builders Association is also pushing Congress to extend the tax credit.

“The first-time homebuyer tax credit has been key to stabilizing home values for all homeowners while sustaining the construction job market,” said local homebuilder and HBA president Brad True in a press release. “We need to keep that momentum going and open up home-buying opportunities for more consumers.”

The National Association of Home Builders estimates that extending and enhancing the tax credit would generate 383,000 home purchases nationwide and create 350,000 jobs in the coming year.

“Extending and enhancing the homebuyer tax credit is vital to opening up homebuyer opportunities for consumers while boosting the overall economy,” True said. The tax credit has proven it can stabilize home values and put people back to work building new homes.”

Liberty Editor Angie Anaya Borgedalen can be reached at 781-4941 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

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