Rep. Gary Miller (R-CA), Rep. Brad Miller (D-NC) and 29 other original co-sponsors have introduced bi-partisan legislation—HR 1755, the Home Construction Lending Regulatory Improvement Act of 2011—aimed at restoring the flow of acquisition, development and construction (AD&C) credit to the housing sector to help spur job growth, support a recovery in the housing market and keep the economy moving forward.
"We commend Reps. Gary Miller and Brad Miller for championing a legislative solution aimed at ending the freeze in housing production credit that has forced countless home building firms across the nation to shutter their doors, resulting in grave repercussions for job growth and the overall economy," said National Association of Home Builders (NAHB) Chairman Bob Nielsen, a home builder from Reno, Nev.
The credit crunch has taken an enormous toll on the nation's economy, with job losses felt most acutely in the housing sector, where more than 1.4 million construction workers have been idled since 2006. Factoring in the effect of the housing plunge on industries that provide materials and services to home builders, the total impact of the housing slump has been the loss of more than three million jobs and $145 billion in wages in all housing-related industries.
HR 1755 would address specific regulatory obstacles to the credit needs of the nation's homebuilders. In a letter to fellow lawmakers seeking support for their bill, Reps. Gary Miller and Brad Miller said that "one of the major reasons for this lack of credit is the overly restrictive actions by banking regulators which have hindered federal and state chartered banks and thrifts' ability to make and maintain loans to qualified small home builders that have viable projects."
To rectify this situation, the legislation would grant authority and guidance to federal and state banking regulators to ensure that financial institutions that provide financing to America's homebuilders are permitted to make loans, restore liquidity and provide stable financing to the residential housing sector.