Two members of Florida’s House delegation want to allow more Americans to direct their college funds toward home ownership.
U.S. Reps. Gus Bilirakis and Jimmy Patronis just introduced the Save for Success Act (HR 7393), which would allow distributions from 529 plans dedicated for tuition to also be used for qualified housing expenses for first-time homebuyers.
“For too many young families, saving for a first home feels further out of reach every year,” said Patronis, a Panhandle Republican.
“The Save for Success Act makes it more affordable for first-time homebuyers to purchase their first home by giving them greater flexibility to use the savings they have already set aside. Homeownership does not just benefit families, it strengthens our communities because when people have a stake in their neighborhood, they care more about schools, public safety and local infrastructure. It is time to give our younger generations the opportunity to live the American Dream and build stronger, more vibrant communities.”
The IRS since 1996 has allowed the creation of plans operated by the state or by education institutions, typically shielding the funds from taxation, and for the money to be withdrawable to pay for college tuition and other related costs like books and, at eligible education institutions, room and board. As of 2018, the funds could be used for elementary or secondary schools.
The legislation would amend the section of tax code governing the college funds and add qualified housing expenses to the uses, only for first-time homeowners to pay for a principal residence. The money could go toward closing costs and mortgage payments.
Bilirakis, a Palm Harbor Republican, said this could make the prospect of buying a home at a young age possible again. And it will do it using a fund already employed by families to give their children a brighter future.
“Families are budgeting carefully, saving responsibly, and planning for their future, yet rising costs continue to put homeownership beyond their grasp,” he said.
“The Save for Success Act provides a practical solution by giving first-time buyers greater access to the savings they have already earned and set aside. Owning a home offers more than shelter-it provides stability, pride, and a lasting connection to a community. This legislation is about expanding opportunity, strengthening communities, and ensuring the American Dream remains attainable for the next generation.”
