Bill Would Create 15 Day Window on Purchase of Government, GSE Owned Properties

Washington, DC – Today, Congressman Joe Baca (D-Rialto) introduced legislation to give certain preferences to individuals and families committed to rebuilding communities when purchasing government owned residential property.  The First Look at Primary Residence Act requires the federal government, and Fannie Mae and Freddie Mac, to consider purchase offers from only those who plan to use the property as their primary residence for the first 15 days that the properties are listed.  After that time period, the seller is allowed to consider any offer. 

“The flood of under-capitalized investors looking to make a quick profit was a major factor contributing to the decline of housing markets across the nation,” said Rep. Baca.  “Now, as many of these markets begin to show signs of recovery, it is critical we give a helping hand to those individuals and families who are committed to rebuilding our communities.  This legislation gives these responsible buyers a small window of time to have first preference on properties, before investors and speculators can swoop in and outbid them.”

The First Look at Primary Residence Act will help to level the playing field for middle class home buyers, looking to take advantage of the high volume of government owned or GSE owned properties on the market.  While real estate investment has a valid place in the market, excessive speculation of the housing market creates false confidence, helping to destabilize neighborhoods, and allowing many properties to be sold to owners who willingly leave the property vacant for many months at a time.   

“The federal government has taken important steps to ensure that businesses and investors have access to necessary capital,” commented Rep. Baca.  “It is long past time we work to stabilize our neighborhoods, and give a well-deserved advantage to those who purchase property as a place to live over those who simply plan to use the property to make a buck.  I am proud to introduce this responsible bill, to help home buyers and provide greater stability to our recovering housing markets.”  

Rep. Baca serves as a Member of the exclusive House Financial Services Committee, which has jurisdiction over housing and finance related matters.