SB 1310 Summary

• Establishes the Individual Housing Accounts Savings Program administered by an 8-member board within the Department of Budget and Finance, with members including state directors and governor-appointed representatives from employers, investments, and employee associations.

• Requires employers to offer employees the opportunity to contribute to housing savings accounts through payroll deduction with automatic enrollment and opt-out provisions, featuring default contribution rates and escalation options.

• Expands authorized uses of individual housing accounts beyond first-time home purchases to include rental assistance, downpayment/closing cost assistance, economic hardship relief, capital improvements, cemetery and mortuary services, and senior housing.

• Imposes a 10 percent penalty on distributions made within 365 days of contribution and allows taxpayers to establish accounts for dependent children; increases annual deduction limit to $5,000 ($10,000 for joint filers) with a $25,000 lifetime cap.

• Creates the Individual Housing Accounts Savings Program Administrative Fund and appropriates funds for fiscal years 2019-2020 and 2020-2021 (amounts not specified), with the Act taking effect January 1, 2050.