Washington Update - 10/03/2008 (Plain Text Version)

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Home Builders Strongly Back Economic Rescue Plan

The House on Oct. 3 approved the Emergency Economic Stabilization Act of 2008 by a vote of 263 to 171. The House action comes two days after the Senate approved the measure by a 74-25 margin. The legislation, which will help to stabilize and restore confidence in worldwide financial and credit markets, was signed into law by President Bush before he left Washington for the weekend.

In a press release to the media following House passage of the bill, NAHB Chairman Sandy Dunn said: “This legislation was absolutely essential to prevent a collapse in our financial system that would have inflicted devastating damage to our nation’s economy. Hopefully, this will set the stage for rebuilding confidence, restoring the availability of credit for businesses and consumers, and reversing the downward spiral in home prices and rising foreclosures that are root causes of today’s financial turmoil. We will continue to work with lawmakers on both sides of the aisle to take whatever other steps are necessary to put housing and the economy back on track.”

The bill also contains other NAHB priorities, including a one-year “patch” of the Alternative Minimum Tax and extension of several business tax breaks, including the 45L credit for new, energy-efficient homes that is due to expire at year-end. The measure also contains a provision to temporarily increase federal deposit insurance on bank and credit union accounts from the current $100,000 to $250,000. During the past two weeks, NAHB took the following steps to make this legislation a reality:

o On Sept. 24, NAHB called on Congress to pass the Treasury rescue plan. At its board of directors meeting in San Diego, the leadership of NAHB called on Congress to act now before conditions deteriorate to a point that could trigger a global financial meltdown. “The financial markets are in turmoil and the flow of credit has been severely curtailed for housing and other sectors of the economy,” said NAHB Chairman Sandy Dunn. “There’s no time to waste. Congress must pass legislation as soon as possible.”

o In conjunction with the congressional call to action, NAHB urged its 235,000 members to immediately contact their lawmakers and urge them to adopt the plan now. At the NAHB board meeting in San Diego, phone banks were set up so that board members could call their congressional delegations and deliver this vital message.

o To get our message out the media, on Sept. 24 NAHB CEO Jerry Howard conducted interviews with Reuters, Bloomberg, the Wall Street Journal and USA Today on the need for Congress to take quick action to pass the Treasury plan to stabilize financial markets.

o NAHB sent a letter to the congressional leadership urging Congress to pass the Treasury financial rescue proposal. “NAHB strongly believes that this proposal is the best remedy for the extreme turmoil and uncertainty currently facing the nation’s financial markets,” the letter said.

o On Sept. 25, NAHB called for immediate action on the financial rescue package after the Commerce Department reported that new-home sales fell to their lowest levels since 1991. With the Commerce Department reporting that new-home sales in August were down 11.5 percent to a seasonally adjusted annual rate of 460,000 units, NAHB noted in a press release that this drop occurred “well before the most recent round of financial market turmoil, accentuating the urgent need for immediate action on the Administration's financial rescue plan."

o The same day, NAHB CEO Jerry Howard appeared on Bloomberg TV to discuss the Bush Administration’s rescue plan and new home sales. Howard also conducted interviews on the financial bailout with CNN Money and Finance & Commerce Magazine. NAHB Chief Economist Dave Seiders discussed the need for immediate congressional action on the rescue package in an interview with CNN Radio.

o In addition, NAHB arranged for ABC Nightly News to interview a builder member in Kansas City to discuss their local housing market as well as the urgent need for Congress to enact the emergency financial rescue plan.

o At its meeting in San Diego, the NAHB Board of Directors on Sept. 26 formally approved policy calling on Congress to promptly enact the financial rescue plan designed to stabilize financial markets and restore consumer and investor confidence in the U.S. economy.

o On Sept. 29, NAHB sent letters to House and Senate Democratic and Republican leaders urging support for the Emergency Economic Stabilization Act of 2008. “NAHB strongly believes this bipartisan proposal will help remedy the extreme turmoil and uncertainty currently facing the nation’s financial markets,” the letter says.

o In a move that shocked many Capitol Hill observers, the House on Sept. 29 derailed the bill on a 228-205 vote. Approximately one-third of Democrats and two-thirds of Republicans voted against the bill.

o In a renewed push to get the financial rescue legislation back on track, NAHB crafted a letter to the editor that was distributed through its PRx to Executive Officers around the country. The letter, which can be sent under the byline of an HBA President or Executive Officer, urges members of Congress to support the rescue legislation when it comes up for a vote again later this week. The letter was submitted by the Brown County HBA and was published on Oct. 1 in the Green Bay Press Gazette.

o Utilizing BuilderLink, its national grassroots program, NAHB also called on its members to e-mail their congressional delegations at www.capitolconnect.com/builderlink or phone their offices using the NAHB toll-free legislative hotline at 1-866-924-6242 and call on them to pass a financial rescue plan now. The NAHB link also allows NAHB members to send a letter to their lawmakers citing the need for the rescue plan and urging them to “act this week to bring stability to the financial markets.”

o NAHB, along with the U.S. Chamber of Commerce, the National Association of Realtors, the National Federation of Independent Business and other business groups ran a full-page ad in the Oct. 1 issue of the Washington Post calling on Congress to pass a recovery plan now. The ad, which encourages concerned citizens to call their lawmakers at (202) 224-3121, also ran in the Oct. 2 editions of USA Today, Wall Street Journal, New York Times, Los Angeles Times, Chicago Tribune, Orlando Sentinel, Roll Call, Politico and The Hill.

o In a letter dated Oct. 1 and sent to all members of the Senate, NAHB said that home builders stand united in support of the financial rescue package and are designating a vote in support of the bill (H.R. 1424) as a “key vote” because of the importance of this issue to the health of the American economy and housing sector. Hours later, the Senate voted to approve the legislation by a strong bipartisan margin of 74 to 25.

o Several hours prior to the Senate vote, NAHB voiced the same message in a news release sent to the media. In addition, NAHB Executive VP Bill Killmer and Chief Lobbyist Joe Stanton expressed the urgent need to pass the financial rescue package in an interview with the Associated Press. On a related front, NAHB CEO Jerry Howard discussed the association’s perspective on seller paid downpayment assistance with National Public Radio.

o With House passage uncertain, NAHB on Oct. 2 sent a letter to every House member calling on lawmakers to pass the financial rescue package approved by the Senate. Once again, NAHB designated a yes vote as a “key vote” because this issue is so vital to shoring up the U.S. financial system.

o On Oct. 3, minutes after the House passed the financial rescue package, Jerry Howard did an extensive interview with the Associated Press on how the legislation helps housing and what still needs to be done. Joe Stanton delivered the same message in an interview with the Housing Market Report.

For more information on the legislation, contact Greg Brown at 800-368-5242, x8421.