*** TAX Credit AB 183 violates first-come, first-served basis***
The AB 183 was passed by the legislature on March 22 and gives the Franchise Tax Board authority to extend a total of $200 million in tax credits to California homebuyers;
The credit will be extended from May 1, 2010 to December 31, 2010.
The AB 183 statement: "The tax credit will be available to buyers on a first-come, first-served basis and is applied in equal amounts over a period of three taxable years."
At that time most people believed that it would be the same as IRS Credit for first time home owner.
I bought my first home and closed escrow account on 05/19/2010. My realtor as well as the escrow employees did not know about the 14 days limit to submit the application. No body told me about that until I visited FTB website on 06/07/2010. Even though, it was 5 days late, I faxed my application on that day. And my application was denied.
I believe it is unfair practice. It is unfair because it is not a first-come, first-served basis as the law said. I submitted application and bought a house first, but my application was denied because 14 day limit. Whereas, other homeowners bought a house after me and submitted application after me, but their application were approved.
FTB should announce clearly and widely on radio, TV, not only on its website and should allow the time enough for the information reach the recipients.
FTB should do more and clear because normal people may assume it is the same as IRS. Moreover, two-week limitation is too short .
What do you think if the Right to speech have a limit "you cannot critize the government?" like Chinese communist?
If you visit this web site on 03/26/2010 you can see no info about 14 days limit law of FTB.
http://california.realestaterama.com/2010/03/26/governor-schwarzenegger-signs-10000-homebuyer-tax-credit-legislation-ID0583.html
FTB 14 days annoucement
http://www.ftb.ca.gov/individuals/new_home_credit.shtml?WT.mc_id=HP_Feature_HomeCredit_Hed
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I submitted my first time home credit and it sat at the office of FTB for over 6 months. Why the rush to get the application in if its just going to sit?
The fact that the seven day deadline was increased to 14 days shows there was a deliberate attempt to mislead the consumer. Seven day was too obvious so it was increased to 14 days. When most people close escrow they began moving in their new home, and once settled their new home (which is about 2 weeks) they have missed the deadline to turn in their application.
I would love to see the stats that project how many consumers would miss the deadline.
When I did my investigation to see if I qualified for the program there was nothing stating that you needed to get your application in before a deadline. Instead the 14 day deadline is buried in hundreds of escrow papers. Why wasn't the deadline on the actual application? This was done to mislead consumers!
If the program is done on a first come first serve bases there would be no deadline!
The application for the home credit was so easy to fill out and there was plenty of room to place the 14 day deadline on the application. Why wasn’t the deadline placed on the application? All it had to say is ” your application must be received 14 days after you close escrow”. This process was very misleading! Even on the instructions it says two weeks, not 14 days. I know 2 weeks is 14 days, but that could mean week days as well. Very Very misleading. This was clearly done to get consumers to buy homes and deny their Home buyer’s credit. An investigation must be done!
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