Rep. Delnicki, Ranking Member of the Legislature’s Banking Committee Praises the Passage HB 5027 and SB 891

Legislation establishing a first-time homebuyer savings account passed the House of Representatives on Wednesday, June 2, 2021. State Representative Tom Delnicki, the chief cosponsor of House Bill 5027, said it will help those who want to call Connecticut home with their first home purchase.

House Bill 5027, would require the Banking Commissioner to establish a first-time homebuyer savings account program and a tax deduction for contributions to first-time homebuyer savings accounts.

The legislation passed unanimously in the House and now awaits action in the state Senate. The bill would assist in encouraging both contributions and savings for a first-time home purchase. It would also allow individuals to make tax deductible contributions to an account to be used by a designated person for expenses related to the purchase of a home. Each account holder may contribute an unlimited amount of money into their account. However, qualifying taxpayers may deduct from their state tax liability contributions of up to $2,500 for those filing single or head-of-household and up to $5,000 for taxpayers filing joint returns with a spouse. The tax credit would be equal to the amount deposited.

Rep. Delnicki, Ranking Member of the Banking Committee, indicated that the proposal establishes a mechanism to help individuals save money to purchase their first home. He stated: “The American dream is home ownership. I am confident that this program will both help people buy their first home and create generational wealth that can be passed on from generation to generation.”

Senate Bill 891, also passed out of the House with 117 voting in favor and 28 voting in opposition of the legislation, which now heads to the governor’s desk. The bill extends the Ezequiel Santiago Foreclosure Mediation Program for six years and requires that certain alternatives to foreclosure be made available to certain mortgagors. It also expands the Emergency Mortgage Assistance program.

“The pandemic has taken a financial toll on our friends and neighbors. This emergency loan program is a lifeline for homeowners behind in their mortgage, with town tax or water and sewer tax liens, and consequently face foreclosure. This legislation is going to help people keep their homes that they’ve worked so hard for in their life,” added State Representative Tom Delnicki.