Business | Economy
Homebuilders push housing aid plan
With lawmakers angling to pass an economic recovery package by the middle of next month, desperate homebuilders from around the country flew to Washington to spend Wednesday pushing a $150 billion plan to revive the housing market.
- AP
- Published: 23:38 January 8, 2009
Washington: With lawmakers angling to pass an economic recovery package by the middle of next month, desperate homebuilders from around the country flew to Washington to spend Wednesday pushing a $150 billion (Dh550.97 billion) plan to revive the housing market.
The National Association of Home Builders brought around 80 builders - mainly from smaller, privately owned companies - for meetings with lawmakers from their districts, particularly those on committees that will handle President-elect Barack Obama's economic rescue package.
"Don't take their usual squishy answers," exhorted Jerry Howard, chief executive of the home builders' trade group in a feisty Wednesday morning pep talk. "We need to know today: Are you with us or not?"
The home building industry has been devastated by the housing market bust. The builders argue that plunging home prices and sales are causing widespread suffering for businesses ranging from interior decorators to sellers of faucets, lumber and blinds.
Massive government intervention is needed, they say, to boost home sales and prevent foreclosures from further flooding the market.
Builders want a package of subsidies that would bring mortgage rates to just under three per cent for the first half of this year. They also favour a tax credit of up to $22,000 for home purchases.
Still, broad housing aid is not expected to be part of Obama's economic stimulus plan. Housing relief seems more likely to be part of a separate bill outlining new rules for the remaining $350 billion in financial industry bailout money.
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