Latest News from State Capitol and 55th District - By Rep. Jill Cooper (R-Westmoreland)

October 3, 2024

Savings Account Program to Help First-Time Homebuyers Will Boost Economy

I remember when my husband, Leighton, and I purchased our first home. It was a boost to our confidence and pride that we had reached strong enough financial stability in our lives that we could call ourselves homeowners.

For some Pennsylvania residents, renting a home or apartment makes sense, maybe because of their profession or family dynamic.

But for others, homeownership is a sought-after goal that, unfortunately, seems unachievable. This is why the House Bill 126 was passed in the House earlier this year and is making its way through the Senate. 

Some believe that a government answer to encourage homeownership is to offer government money to stimulate the interest of potential first-time homeowners. Respectfully, I don’t agree with such a proposal. Such programs are expensive and, therefore, the burden of such a program is incurred by all taxpayers. 

The details in House Bill 126 are very different because it would provide a pathway for first-time homeownership using their own earned money.

The proposal would create the First-Time Homebuyer Savings Account Program within the Pennsylvania Treasury. Those interested would be able to open a savings account, which could be used as a deduction on the account holder’s Personal Income Tax. Account holders could deposit interest, earnings and other additions, including money made available from any public or private sources. Also, contributions could be deducted from their state income tax.

Money deposited into these accounts could be used to pay the down payment and closing costs for the purchase of a single-family home in Pennsylvania.

Account holders would be allowed to contribute a total of $50,000 over a 10-year time period. There would be an annual contribution cap of $5,000 for those who file as a single taxpayer, and $10,000 for those who file a joint tax return. The maximum amount of all contributions to the account would be $150,000.

How the program works is very similar to the popular PA 529 program that offers savings accounts to save for higher education tuition, as well as expenses for people with disabilities. Similar to the PA 529 programs, contributions could be made by others, such as a parent or grandparent.

The positive economic impacts are considerable.

Statistics from the National Association of Realtors show the number of first-time homebuyers has decreased significantly since 2009 due to the skyrocketing housing market. It’s estimated this program could result in an annual increase of 4,000 home purchases in Pennsylvania.

The result would be an overall positive impact on Pennsylvania’s economy, spurring additional economic activity, job creation and earnings for households. It’s estimated the economic impact could be as high as $68.8 million.

For me, I look back to the feeling of independence I felt when owning a home. I believe the plan in this proposal is a low-risk way of helping Pennsylvania families achieve their financial goals.

When House Bill 126 was considered by the House, it passed 192-10. It recently passed 9-1 in the Senate’s Urban Affairs and Housing Committee and may soon be considered by the full Senate.

Here are some additional news topics and reminders I would like to share.

PennDOT Announces ‘Innovations Challenge’ - Pennsylvania High school students are invited to participate in the eighth annual PennDOT Innovations Challenge, which encourages students in grades 9-12 to present their solutions to real-world transportation challenges in a statewide competition. 

According to PennDOT, Pennsylvania averages more than 350 unrestrained fatalities on its roadways each year. For this year’s challenge, students will be asked to develop a cost-effective, innovative solution that can help PennDOT more effectively increase awareness of seat belt safety and change behavior to improve roadway safety. 

Regional Innovations Challenge winners will be selected and invited to present their solutions to the PennDOT secretary and a panel of judges, who will determine the statewide winner. For this year’s challenge, four different organizations are providing a combined award of $6,000 to the statewide winning team. For complete details, visit here. The submission deadline is Jan. 31.

REMINDER Slickville Town Hall Will Focus on Power Surges – On Thursday, Oct. 10, at 6 p.m. at the Slickville Volunteer Fire Department, located at 128 Main St. in Slickville, I am hosting a town hall event to update area residents on the power surges that have been problematic for area residents. Additional discussion of current events and issues in Harrisburg and here at home will also occur.

Smoke Alarms Focus of Fire Prevention Week - National Fire Prevention Week kicks off Sunday, Oct. 6, with the theme, “Smoke Alarms: Make them Work for You.” 

The National Fire Protection Association offers these tips to ensure your smoke alarms will protect you and your loved ones in case of fire: 

• Install smoke alarms in every bedroom, outside each separate sleeping area (like a hallway), and on each level of the home, including the basement.
• Test smoke alarms at least once a month by pushing the test button.
• Replace all smoke alarms when they are 10 years old or stop responding when tested. 



Representative Jill Cooper
55th Legislative District
Pennsylvania House of Representatives
Media Contact: Jordan Frei
724.875.8450
jfrei@pahousegop.com
RepJillCooper.com / Facebook.com/RepJillCooper