Aid for Builders
With the lack of credit availability crippling new home production and preventing small home builders from meeting emerging housing demand in scores of markets across the nation, Sen. Robert Menendez (D-N.J.) should be commended for introducing legislation that will expand the flow of housing credit.
This will allow the industry to rebound, spur job growth and keep the economy moving forward. S. 2078, the Home Building Lending Improvement Act of 2012, will help to stabilize the housing market by instituting regulatory guidelines to allow the banking industry to restore lending for viable home building projects and to discourage lenders from calling in outstanding loans in good standing.
Restoring the flow of credit to home builders will not only help put America back to work, it will provide badly needed tax revenues that are essential for local governments to recover and thrive.
The National Association of Home Builders estimates that the construction of 100 new homes creates more than 300 full-time jobs and generates $8.9 million in local, state and federal tax revenues, which contribute to the local tax base that supports schools, police, firefighters and road construction in communities across the land.
Clearly, there can be no full-fledged housing and economic recovery until we resolve this ongoing credit crunch.
Congress needs to act quickly on the Menendez bill and similar bipartisan legislation pending in the House (H.R. 1755) to restore small business lending and create jobs by providing financing for the construction of new homes in markets that need and want them.
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