AD&C Lending Takes Center Stage at Legislative Conference
Alleviating the acquisition, development and construction (AD&C) lending crisis that has been choking off credit for builders with devastating results took center stage on March 24 as more than 450 builders from across the country converged on Capitol Hill for the annual NAHB Legislative Conference.
 Builders visiting with their lawmakers urged their members of Congress to sign onto a bipartisan draft letter sponsored by Reps. Brad Miller (D-N.C.) and Gary Miller (R-Calif.) to Treasury Secretary Timothy Geithner and other regulators calling attention to the drastic impact that the ongoing financial crisis is having on the nation’s home builders.
The congressional letter notes that lenders are now making demands on existing AD&C loans that appear to exceed sensible regulatory requirements.
“These demands are increasingly impairing previously performing loans and, in some cases, forcing builders with viable projects into insolvency, and frustrating the purpose of the Troubled Asset Recovery Program (TARP), which was to allow lenders to extend credit to deserving borrowers and stabilize the economy,” the letter says.
“Financial institutions should not be compelled to turn performing loans into ‘troubled’ assets,” the letter continues. “In many cases, rather than shutting off credit, lenders would be far better served by working with borrowers to extend performing loans. Again, it is not in anyone’s interest — not lenders, not builders, not the economy as a whole — to force sound and viable borrowers into insolvency.”
View the full article with pictures from the conference in this week's NBN.
Below are a few of the great resources created to help NAHB members lobby our key issues on Capitol Hill: (note: you need to be logged into NAHB's Web site with your username and password to view these members-only resources):
2009 Legislative Conference Booklet and General Talking Points
Card Check background and recommendations
Addressing the AD&C Crisis background and recommendations
AD&C Lending Crisis Video Briefing
Housing Finance System Reform background and recommendations
For more information, e-mail Molly Murray at NAHB, or call her at 800-368-5242 x8282.
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