Homebuilders Seek $150 Billion Stimulus Package

Washington, DC, Jan. 8, 2009--Homebuilders are asking for up to $150 billion in the economic stimulus package being drafted by President-elect Obama’s administration and congressional Democrats.

The National Association of Homebuilders is working with 80 of its members to lobby lawmakers on their plan, which includes a mortgage foreclosure reduction effort, a homebuyer tax credit and a temporary program to reduce interest rates.

“This ain’t the time to be subtle. There is not a congressman or senator on the Hill who is looking forward to talking to you," NAHB Chief Executive Officer Jerry Howard told homebuilders at a meeting Wednesday morning.

Democrats have been pushing the Bush administration to use money from the $700 billion financial rescue package to help reduce the number of foreclosures, but the White House has yet to act.

NAHB, which had been pushing for help since the fall, has turned its attention to getting between $130 billion and $150 billion in the stimulus package. The total package is expected to be in the range of $775 billion.

“We believe this is a first salvo in a very short-term war possibly over before Inauguration day, possibly after,” Howard said.

“What the past efforts with TARP have shown and loans to the auto manufacturers is that the Band-Aid approach isn't working. The real damage is in doing one not big enough.”

The housing bubble that burst is at the center of the recession, and the mortgage market continues to show significant signs of stress.

The association is supportive of efforts by House Financial Services Committee Chairman Barney Frank (D-Mass.) and FDIC chairwoman Sheila Bair to craft plans to reduce foreclosures, but NAHB wants lawmakers to move on a housing effort in the economic stimulus package — congressional Democrats' top priority.