COBRA, Unemployment, and First Time Home Buyers Benefits Extended

COBRA and Other Benefits Extended

12/28/2009

As part of the Defense Appropriations bill signed into law on December 19, Recovery Act funds will continue to subsidize 65 percent of COBRA health insurance premiums for certain unemployed individuals. The subsidy program, which originally covered the period between February 17 and November 30, 2009, now runs through February 2010 for people who lost their jobs through no fault of their own between September 1, 2008, and February 28, 2010. 
The Department of Labor website has more details.
Also, with enactment  on November 6 of the Worker, Homeownership and Business Assistance Act of 2009, three other key provisions of the Recovery Act were either extended or expanded.
Emergency Unemployment Compensation
This legislation added another 14 weeks of unemployment benefits. In states exceeding an 8.5 percent unemployment rate (currently 26 states), an additional six weeks of benefits are available, for a total of 20 weeks. In all cases, the $25 in Recovery funds added to each regular benefit payment also continues.

Contact your state unemployment office for details.

First Time Homebuyer Credit
The original provision – a tax deduction of up to $8,000 – applied only to people buying their first homes between April 8, 2008, and December 1, 2009. The cut-off date has now been extended to April 30, 2010. Also, a similar credit – up to $6,500 – is now available to current homeowners who buy new principal residences in the same time frame. However, those homeowners must have lived in their previous homes for a five-year consecutive period in the previous eight years before the date they buy the new home.

For either credit:
• New home can cost no more than $800,000
• Individual buyers must have income of $125,000 or less
• Joint tax-filers must have combined income of $225,000 or less
The IRS has more information here

Downpayment and closing costs assistance for housing in Middlesex Cty, NJ

The Middlesex County Department of Housing and Community Development will award downpayment
and closing cost assistance funds to income eligible first time homebuyers under the US Department
of Housing and Urban Development (HUD) American Dream Downpayment Initiative (ADDI) program.

Basic Program Requirements
1. Applicant must be a first time homebuyer who has completed a one day homebuyer training course
within the past year offered by one of the following:
• Puerto Rican Action Board - Housing Coalition Unit - Phone (732) 249-9700
• Faith Fellowship Community Development Corp. - Phone (732) 727-9500
• Any other HUD certified housing counseling agency
2. Applicants do not apply until they are under contract for a single family property. Eligible properties are
detached homes, townhouses, ·condominiums.,. an.c.:l.gp-ops. The purchase price of the property cannot
exc"€ed four times the certified income level of the household, with an overall maximum of $362;790.
3. Applicants must have a mortgage pre-appmval.
4. Applicant must purchase housing in the following Middlesex County municipalities:
_ Carteret ;.•,' Highland Park'~"=:: North Brunswick South Brunswick
Cranbury Jamesburg Old Bridge South Plainfield
Dunellen Metuchen Piscataway South River
East Brunswick Middlesex Plainsboro Spotswood
Edison Milltown Sayreville Woodbridge
Helmetta Monroe.. _. South Amboy
(Please note that New Brunswick and Perth Amboy are not eligible municipalities)
5. Household income does not exceed the following limits:
One-person - $54,200 /Five-person $83,500
Two-person - $61,900 / Six-person - $89,700
Three-person - $69,600 /Seven-person - $95,900
Four-person - $77,400 / Eight-person - $102,100
6. The property being purchased must pass County's Housing Quality Standards inspection and be certified free of lead based paint hazards.
7. Assistance will be in the form of a deferred repayment mortgage, which doesn't require payment of
principal or interest by the homebuyers provided they own and live in the property for six years.
Homebuyers who sell the property before this time will be required to pay back the full amount of the
ADDI assistance, plus 4% simple interest. Assistance will range from $8,500 - $13,500.
For additional information on the program, please contact Melissa Bellamy
Middlesex County Department of Housing and Community Development
(732) 745-2922 or melissa.bellamy@co.middlesex.nj.us.

1ir EOUAL HOUSING
OPPORTUNITY
Middlesex County Board of Chosen Freeholders
David B.. Crabiel, Freeholder Director
Stephen J. Dalina, Deputy Director
Camille Fernicola
H. James Polos
Christopher D. Rafano
Ronald G. Rios
Blanquita B. Valenti