Reps. Gary Miller, R-Calif., and Carolyn McCarthy, D-N.Y., introduced bipartisan legislation intended to provide homebuilders access to credit for viable home building projects.
The Home Construction Lending Regulatory Improvement Act of 2013, also known as H.R. 1255, would mark a substantial step forward in efforts to rebuild the flow of credit to the housing industry. It mirrors legislation championed by Miller in the last Congress.
"We commend Reps. Miller and McCarthy for acting to remove a major impediment to the housing recovery by promoting legislation that will enable homebuilders 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 National Association of Home Builders.
The measure would address specific regulatory obstacles to the credit needs of homebuilders nationwide.
For many markets, demand is continuing to increase, while the supply of new homes is at a record-low. Because of this, builders still cannot receive construction loans due to tight credit regulations following the housing downturn.
"As a result, jobs are being lost and home builders are unable to meet the needs of home buyers in scores of local markets whose economies are on the mend," said Judson.
By constructing 100 new homes, more than 300 full-time jobs would be created along with $8.9 million in federal, state and local tax revenue.
The bill would take down barriers to lending while preserving the ability of regulators to assure the safety and soundness of the financial institutions they oversee.