First, the governor says such a program should be limited to low-income home buyers. As written, H.B. 111 places no cap on the price of homes. But people buying estates don't need tax waivers as a purchase incentive. There's also a provision that defines a first-time buyer as anyone who hasn't owned a home in the previous 10 years, in or out of Delaware. The logic here escapes us.
People sell their homes and rent for various reasons.
Divorce and children moving out come to mind. They shouldn't be rewarded if they decide later to buy another residence. Change H.B. 111 to include only first-time buyers who've lived in Delaware for at least a year. The administration's argument that the State Housing Authority first-time buyers' program already allows purchasers to borrow the transfer tax for settlement sends the wrong message. Young home buyers should be encouraged to incur less, not more, debt.