On May 26, 2010, Representative Brad Miller (D-NC) introduced H.R. 5409, the Residential Construction Lending Act, with Representatives Joe Baca (D-CA) and Carolyn Maloney (D-NY). H.R. 5409 will specifically address the AD&C credit crisis that has plagued builders across the country. The bill will establish a loan guarantee program for lenders who provide construction loans to builders with viable projects and a track record of success.
Housing was the first sector hit by the current economic crisis and since then lenders have been tightening their belts. Lenders have been calling AD&C loans that many builders with great track records are unable repay. Because of this shift in lending policy, many builders are forced to give up on viable projects and lay off their workforce. H.R. 5409 gives lenders a reason to not call loans in good standing. The bill will also expand the flow of credit for the home building industry and the millions of people it employs each year.
CALL TO ACTION:
Over the next week your Representative will be home for the Memorial Day district work period. We encourage you to set up a meeting with them and explain how important H.R. 5409 is to your business.
Call your Representative and tell them to co-sponsor H.R. 5409, the Residential Construction Lending Act because it gives builders a chance to build and keep their workforce employed. Use the toll-free NAHB Legislative Hotline to be connected to your Representative. Call 1-866-924-6242 (NAHB).
