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While members of Congress are home for a two-week congressional spring recess, NAHB’s more than 160,000 members are being urged to contact their representatives to help drum up support for soon-to-be introduced legislation designed to open up the lines of credit for new housing production.
Association members should ask their representatives to become original cosponsors of NAHB-supported legislation that is expected to be introduced in the House of Representatives in the near future by Reps. Gary Miller (R-Calif.) and Brad Miller (D-N.C) to address an acute shortage of acquisition, development and construction (AD&C) credit.
A special BuilderLink email alert with information about the pending legislation was sent to all NAHB members.
“As we move into the spring home buying season, builders and developers across the country continue to suffer from a severe lack of credit for viable home building projects, which has major implications for the economy as a whole,” said NAHB Chairman Bob Nielsen.
“With scores of housing markets nationwide starting to show signs of improvement, this legislation recognizes that there is an urgent need to expand the flow of credit to builders in these communities to meet demand and keep the expansion moving ahead.”
During the past three months, NAHB has been working tirelessly with concerned lawmakers to address the AD&C lending crisis.
In the current economic climate, lenders have basically stopped making AD&C loans and many are calling existing loans, even when the borrower’s payments are current. Financial institutions are also requiring additional equity for existing loans, and are refusing to modify loans to give borrowers an opportunity to regroup.
Overly conservative appraisals are presenting further challenges by limiting home sales and refinancing opportunities and exacerbating pressure on outstanding mortgage and housing production loans. Lenders are often citing regulatory requirements or pressure from bank examiners to reduce AD&C loan exposure as the rationale for their actions.
As part of the two-week effort to rally support for the House AD&C bill, local home builders associations and NAHB leaders from the ranks of the national area chairmen, state representatives, executive officers and HBA presidents are being encouraged to set up meetings with their members and representatives.
Information on NAHB’s In-District Work Week Program is available at www.nahb.org/indistrict.
This page provides information on issues of the day (including AD&C), best practices, ideas for themed events or meetings, and the dates when members of Congress will be working in their home districts.
Participants are asked to complete NAHB’s online Report Back Form after each meeting or event with their member of Congress to ensure that the association can follow up on the issues that have been discussed.
For more information and help in setting up a meeting with a congressional representative, email Nick Gentile at NAHB, or call him at 800-368-5242 x8542.