Home Builders Applaud Menendez Bill to Restore the Flow of Credit for Home BuildingFebruary 9th, 2012 by DWM Magazine
The National Association of Home Builders (NAHB) commended Sen. Robert Menendez (D-N.J.) for introducing the Home Building Lending Improvement Act of 2012, legislation to help restore the flow of credit for new housing production in order to create jobs, meet rising housing demand and bolster the economic expansion.
“We applaud Rep. Menendez for sponsoring this bill and leading the effort in the Senate to end the severe credit crunch for home building that is needlessly idling residential construction workers and hampering the housing and economic recovery,” says NAHB chairman Bob Nielsen, a home builder from Reno, Nev.
The announcement notes that with new housing inventories at or near record lows in many parts of the country, builders should be gearing up to produce homes to meet sizable demand from pent-up household formations and the growing list of metro areas on the NAHB/First American Improving Markets Index whose economies are recovering. However, the release adds, banks have largely cut off home builders from the credit they need to finance new projects or complete those still underway.
Resolving this situation will enable home builders to start rebuilding the economy, reports the NAHB. Constructing 100 average single-family homes creates more than 300 jobs, $23.1 million in wages and business income and $8.9 million in taxes and revenue for local, state and federal government. And there is a considerable economic ripple effect from there. New home building contributes to the local tax base, which supports schools, police, firefighters and road construction in municipalities across the land, and most of the products used in home construction are manufactured here in the United States.
Similar legislation to resolve the ongoing credit problems for home builders was introduced in the House last year by Reps. Gary Miller (R-Calif.) and Brad Miller (D-N.C.). H.R. 1755, the Home Construction Lending Regulatory Improvement Act, currently has 87 House cosponsors.