Bill Removing Barriers to Construction Lending Introduced to Congress

April 12, 2013

home buying legislationIn many housing markets across the nation, demand is increasing and supply of new homes remains near record lows, yet many builders cannot obtain construction loans because credit remains very tight after the housing downturn. This hurts job creation, local economy activity and property tax revenues (necessary to funding schools, police and fire departments), so last month Reps. Gary Miller (R-Calif.) and Carolyn McCarthy (D-N.Y.) introduced bipartisan legislation to help provide home builders access to credit for  home building projects.

H.R. 1255, the Home Construction Lending Regulatory Improvement Act of 2013, is a major step forward to spur job and economic growth and keep the housing recovery on track, according to a statement released by the National Association of Home Builders (NAHB).

“We commend Reps. Miller and McCarthy for acting to remove a major impediment to the housing recovery by promoting legislation that will enable home builders to obtain construction loans in order to put construction crews back to work and to meet rising demand across much of the nation for new homes,” said Rick Judson, chairman of the NAHB and a home builder from Charlotte, N.C.

This legislation would be a first step to restore the flow of credit to the housing industry and addresses specific regulatory obstacles to the credit needs of the nation’s home builders.

According to the statement, constructing 100 new homes creates more than 300 full-time jobs and $8.9 million in federal, state and local tax revenue.

Categories: Economy, Economy AOI

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