Rep. Haley Stevens Introduces the “Homeownership Savings Act” to Reduce Costs for First-Time Homebuyers
WASHINGTON, D.C. – Today, Michigan Congresswoman Haley Stevens introduced the Homeownership Savings Act to break down financial barriers that have kept a generation locked out of homeownership.
With home prices up 60% nationwide between 2019 and 2025, it is increasingly difficult for young families to achieve the dream of homeownership. Stevens’ legislation creates Homeownership Savings Accounts (HOSAs), a new class of tax-advantaged accounts that allow first-time buyers to contribute up to $40,000 for down payments and closing costs. Contributions are tax-deductible up to annual limits, and earnings grow tax-free inside the account, giving young families a critical edge as the average age of a first-time buyer hits a record 40.
“For too many Michiganders, the American Dream of owning a home is slipping away,” said Rep. Stevens. “Families are working hard just to keep up with everyday costs while homeownership moves further out of reach. This bill is about making sure the next generation of Michiganders can afford to live in the communities they call home.”
The Homeownership Savings Act Would:
- Create Homeownership Savings Accounts (HOSAs) for first-time homebuyers to save for down payments and closing costs tax-free;
- Allow eligible buyers to contribute up to $40,000 over the lifetime of the account, with annual tax-deductible contributions of up to $3,000 for married couples filing jointly, $2,500 for heads of household, and $2,000 for single filers;
- Limit eligibility to first-time homebuyers;
- Allow employers to voluntarily contribute their own funds to an employee's HOSA;
- Ensure funds can only be used for qualified homebuying expenses, including down payments and closing costs;
- Target tax benefits toward working- and middle-class Americans through income phase-outs for higher earners;
- Allow account holders to invest their savings in stocks, bonds, and other assets, with all earnings growing tax-free inside the account.
This legislation has been endorsed by the Michigan Bankers Association, the Community Economic Development Association of Michigan, and the Mortgage Bankers Association.
Bill text can be found here
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