House Bill Addresses Lending for Construction Industry | Central ...

A new bill introduced to the U.S. House of Representatives includes legislation to address the lack of financing in the acquisition, development and construction (ADC) industry.?

Reps. Gary Miller (R-Calif.), Brad Miller (D-N.C.) and 29 other original cosponsors introduced the legislation on May 5, which has the full support of the National Association of Home Builders (NAHB).

The ultimate goal of H.R. 1755, the Home Construction Lending Regulatory Improvement Act of 2011, is to open the lines of credit and stimulate the building economy. The bill addresses specific regulatory obstacles to home builders obtaining credit. It would require bank regulators to follow their own guidelines and issue regulations to stop limiting banks from arbitrarily lending more than 100 percent of total capital on ADC loans. The bill would also ban the use of foreclosure and other distressed sales as comparables in setting collateral values in determining loan amounts for new projects.

NAHB reports more than 1.4 million construction workers have been idled since 2006 in the housing industry alone. Factoring in industries that provide materials and services to home builders, the housing slump has been responsible for a total loss of more than 3 million jobs and $145 billion in wages in all housing-related industries, according to NAHB.

NAHB members worked closely with lawmakers to create the bill, which they believes will spur job growth and support a recovery of the housing market. Approximately 500 NAHB members helped obtain support for the legislation during the association?s annual Legislative Conference in mid-March. Many NAHB members also visited their representatives? home district offices to urge support for the legislation during the recent congressional recess.?

View the bill by clicking here.

Article source: http://www.professionaldoordealer.com/news/2011/05/house-bill-addresses-lending-for-construction-industry.aspx

This entry was posted in Home Builder News. Bookmark the permalink.

Source: http://centralohionewbuilds.com/house-bill-addresses-lending-for-construction-industry/

desert lord of the rings fruit sbc aol