Housing Giants - January 15, 2009 - (Page 9) FEATURE predatory lending and supported tax credits for homeowners; after he went to Washington as a U.S. Senator, he voted to increase mortgage limits for high-cost cities. His Presidential campaign platform advocated a mortgage tax credit for 10 million homeowners who don’t itemize deductions and a plan to let judges reduce the principal owed on loans in bankruptcy proceedings. But during the transition, the President-elect has played his cards close to his chest, neither endorsing nor opposing proposals by current government officials to lower interest rates and modify loans for financially troubled homeowners. Nevertheless, given the extent of the economic crisis, and housing’s central role in it, it’s likely that fresh initiatives will be announced soon after Obama takes the oath of office. Here’s how builders hope some of these issues will play out on some critical issues, and how housing experts are responding to these proposals. Policy Wish list NAHB CEO Jerry Howard details the policy the Fix Housing First coalition wants the new administration to implement. JOBS: Without a sense of job security, few people are willing to buy a new home. And daily headlines of new layoffs in a broad swath of industries only compound the fear. Last year, some 2.4 million jobs were lost, according to the U.S. Department of Commerce. More than 10.3 million people were unemployed in November, the highest number in a quarter of a century, and experts predict more losses in the months ahead. The construction industry has been particularly hard-hit, having lost more than 780,000 jobs since peaking in September 2006. Fortunately, on this issue, Obama has already announced a new stimulus package that will include the largest public-works building program since the Eisenhower administration. His goal, he says, is to give a “jolt” to the economy and create or protect 3 million jobs. TAXES: A coalition of dozens of builders, suppliers and others involved in the industry have issued a manifesto called Fix Housing First that calls for temporary universal home buyer tax credits of up to $22,000. Some builders would like an even bigger credit. David Fry, interim president and chief executive officer of WCI Communities, a Bonita Springs, Fla., builder that’s reorganizing after filing for Chapter 11 bankruptcy in August, champions a credit of up to $30,000, based on a home’s purchase price. “Buyers are on the sidelines, either lacking confidence or unable to sell their existing home,” he says. “We need a temporary stimulus that will give buyers a reason to get off the fence and make the home buying decision.” But Leesburg, Va.-based housing economist Thomas Lawler isn’t a fan of tax credits for buyers, calling them too costly and maintaining that they wouldn’t address the needs of the truly needy nor solve the current problems with mortgages and foreclosures. Implementing them would be “bad policy,” he says. Meanwhile, Jerry Howard, president and CEO of the National Association of Home Builders, 09 1.15.09 HOUSING GIANTS www.HousingGiants.com http://www.wcicommunities.com http://www.wcicommunities.com http://www.fixhousingfirst.com http://www.fixhousingfirst.com http://www.HousingGiants.com
Table of Contents Feed for the Digital Edition of Housing Giants - January 15, 2009 Housing Giants - January 15, 2009 Contents Viewpoint News & Moves M&A The New Administration Housing Giants - January 15, 2009 Housing Giants - January 15, 2009 - Housing Giants - January 15, 2009 (Page Cover1) Housing Giants - January 15, 2009 - Contents (Page 2) Housing Giants - January 15, 2009 - Viewpoint (Page 3) Housing Giants - January 15, 2009 - News & Moves (Page 4) Housing Giants - January 15, 2009 - News & Moves (Page 5) Housing Giants - January 15, 2009 - M&A (Page 6) Housing Giants - January 15, 2009 - M&A (Page 7) Housing Giants - January 15, 2009 - The New Administration (Page 8) Housing Giants - January 15, 2009 - The New Administration (Page 9) Housing Giants - January 15, 2009 - The New Administration (Page 10) Housing Giants - January 15, 2009 - The New Administration (Page 11) Housing Giants - January 15, 2009 - The New Administration (Page 12) Housing Giants - January 15, 2009 - The New Administration (Page 13) Housing Giants - January 15, 2009 - The New Administration (Page 14)
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