I could be wrong, but I think they want jobs. (Lydia DePillis)

Via Kathryn Baer, on Friday the White House posted fact sheets on what the American Jobs Act would mean for every state. The District's goodies include:

• $387 million in funding for highways and transit systems
• $20 million for renovating vacant and foreclosed homes
• Payroll tax cuts for 20,000 businesses
• $45 million to support 500 teachers and first responders
• A tax cut of $1,640 for the average household
• Extended unemployment insurance for 5,500 people

That is, if it passes, of course.

Hours before a handful of protesters picketed outside Ward 4 Walmart developer Dick Knapp's house, the supercompany received a stamp of approval from the highest hand in the land: Michelle Obama, in her new role as the nation's healthy food guru. She appeared at THEARC in Congress Heights yesterday for the launch of Walmart's nationwide initiative to reduce sugar and sodium in their house brand foods, as well as eliminate the cost premium for healthier options, like whole grains.

The announcement is the result of a year of discussions with the White House, and administration officials stood solidly behind it.

“We’re not just aligning ourselves with one company; we’re aligning ourselves with people who are stepping up as leaders to take this country to a healthier place,” White House chef Sam Kass told the New York Times.

Of course, there seemed to be not a whiff of recognition of how conflicted D.C. residents have been over the impending presence of Walmart in their own city. Despite the undoubtedly welcome addition of affordable, healthy food, the influence of a Walmart on the local business community is more ambiguous, the labor track record more spotty. In this regard, Walmart is like China: In front of cameras, you have to be polite and celebrate successes, while pressuring them behind closed doors on thornier issues (though in this regard, Barack beat out Michelle this week, with a public rap on China's human rights record). Notably, however, the White House isn't going big with the publicity on this one–no photos from the event have shown up on Whitehouse.gov, and there's no mention of the Walmart partnership on Michelle's Let's Move initiative website.

Still, at least one District foodie was sorely disillousioned by Michelle's decision. "Wal-Mart using #ShockDoctrine to enter DC market," tweeted Busboys and Poets owner Andy Shallal, who leads Think Local First D.C. "Their PR machine is amazing – Michelle Obama!? What next Jesus!?"

Photo from Walmart's Facebook page.

Savior of the D.C. commercial office market.

It should come as a surprise to no one that the federal government is a huge force in the D.C. real estate landscape, but the second quarter really brought it home: Fully half of all leases in the District went to the U.S. of A. during that period, says Jones Lang LaSalle's Scott Homa. Even that federal slim-down order from the Obama administration–which aims to save $8 billion in the next couple of years by using space more efficiently–isn't expected to hit the D.C. market very hard at all.

The feds should still pay their sewer fees though.

In D.C., roughly one out of every 445 people filed for the credit. In the entire state of Maryland, 23,679 have filed for the credit, roughly one out of every 237 residents.  In Virginia, 40,527 have filed for the credit, roughly one out of every 191 locals. (I calculated these numbers comparing the original figures with population estimates from the Census Bureau's 2008 survey.)

The tax credit information comes from Jim Dupree, a spokesperson with the Internal Revenue Service. (I've blogged about the homebuyer credit frequently in the last few weeks as the newest version of the popular credit was making its way through Congress.)

So 1,329—not terribly impressive?

I wouldn't say that.

First, there are a few points of explanation and caveats to note:

These figures include people that applied for 2008's first-time homebuyer tax credit for up to $ 7,500, in addition to the people filing for the  $8,000 credit, which arrived later on.

The numbers also only take into account people that filed for their credit on or before August 22 of this year.  And there are, presumably, plenty of people who bought houses in anticipation of filing for the credit with their 2009 tax documents, due next April. You can apply for a reimbursement immediately—but you don't need to.

So these numbers are, well, only indicative of the scale of the credit's impact in each area's market.

Also, naturally, Maryland and Virginia are going to see more first-time homebuyers combing through their foreclosure-ravaged communities. Home values in D.C. have barely dropped in comparison to those in Prince William County and Prince George's County.

I'm writing about the first-time homebuyer credit in my column this week. I talked to one Capitol Hill agent that worked with 11 first-time homebuyers in the last few months; eight have been in D.C.    Of his clientele, most are "nonprofit folks, government employees," looking for houses priced at $250,000 and below.

Think about which neighborhoods in D.C. will meet his clients' criteria. Not many.

The National Association of Realtors has posted a Q&A about the credit, which is altered significantly in this bill, on its website. Their responses should answer all the basic questions:

Who Qualifies for the Extended Credit?

• First-time home buyers who purchase homes between November 6, 2009 and April 30, 2010.
• Current home owners purchasing a home between November 6, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase. If you or your client purchased a home between January 1, 2009 and the date the bill is signed by President Obama, please see: 2009 First-Time Home Buyer Tax Credit.

Which Properties Are Eligible?

The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Is Available?

The maximum allowable credit for first-time home buyers is $8,000. The maximum allowable credit for current homeowners is $6,500.

How is a Buyer's Credit Amount Determined?

Each home buyer’s tax credit is determined by tow additional factors:The price of the home and the buyer's income. Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less. Under the Extended Home Buyer Tax Credit, which is effective on November 6, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit. These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you or your client purchased a home between January 1, 2009 and November 5, 2009, please see 2009 First-Time Home Buyer Tax Credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit. The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?

Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

The Associated Press is reporting that Amtrak carried roughly 27 million people in the last 12 months— down about a million from the same time period the previous year, but still up more than five percent from two years ago.

President Barack Obama—who has proposed installing high speed rail in numerous lengthy corridors around the country—may be thrilled to hear one bright spot from the latest numbers: travel jumped "on the railroad's 15 long-distance trains."

Image by THE Holy Hand Grenade!, Flickr Creative Commons

Extending the tax credit for homebuyers is “under consideration,” [Speaker Nancy Pelosi], a California Democrat, told reporters today in Washington. “The question is, would that be just first-time homeowners or would you open it up to other purchasers of homes?”

“There’s no question that I think it should be extended; for how long, we should discuss,” said House Ways and Means Committee Chairman Charles Rangel, a New York Democrat. He said the tax credit shouldn’t be made permanent.

Georgia Senator Johnny Isakson introduced a bill last June expanding the tax credit to $15,000, and making it available to all homebuyers. As it stand,  "the homebuyer credit would cost the government about $1 billion for each month it is extended," according to Bloomberg.

Since March, nearly 400,000 people have participated in President Barack Obama's Making Home Affordable program, which pays lenders to lower borrowers' monthly payments, according to the story.

Unfortunately, mounting unemployment, and adjustable rate mortgages–with still rising payments–remain pernicious forces in the  housing market.

But, wait! There's a completely different, more generous bill already out there, according to the Post story:

Sen. Johnny Isakson (R-Ga), a veteran of the real estate business, has offered a bill that would expand the tax credit to $15,000 and make any buyer of any home eligible.

That would cost a projected $38.5 billion if the program is in effect for a full year, he said. But it would also help stimulate home buying at all price levels and bolster related consumer spending on furniture and landscaping, for instance, he said. But critics say it's time for the government to step aside, especially now that the housing market is showing signs of improvement.

According to Isakson's own website, "the legislation also would eliminate the income caps of $75,000 for an individual and $150,000 for a couple under the current tax credit so that there is no income limit for eligibility. Finally, the legislation would extend the tax credit for one year from date of enactment and would still allow homebuyers to claim the credit on their 2009 tax return for purchases made in 2010."

The legislation was introduced in June.

This past weekend, the Washington Post did an excellent job envisioning a nightmare scenario: Searching, finding, going under contract and closing on a house by November 30.

Why the rush? The $8,000 first-time homebuyer tax credit is scheduled to expire by then.

But with people scrambling, White House spokesperson Robert Gibbs said today that the president's  economic team is evaluating the credit's impact, and will soon advise him about whether to propose an extension.

Image from Wikimedia Commons by Pete Souza