NAFCD Joins 'Fix Housing First' Advocacy Group

Chicago, IL, Dec. 31, 2008--The North American Association of Floor Covering Distributors (NAFCD) has joined Fix Housing First Coalition, an advocacy group pushing for Congressional aid to the housing market.

"The US housing market is the backbone of the American economy and a primary source of stability in our economy. Fix Housing First is a step in the right direction for stabilizing our economy," says NAFCD Executive Vice President Maurice (Moe) Desmarais.

The Fix Housing First coalition includes more than 600 organizations, including home building companies, manufacturers, and trade associations.

The effort, which continues to add new members on a daily basis, is pressing for a major stimulus package to stem the decline in home values, stabilize financial markets, and reignite consumer demand.

The coalition is urging Congress to support enhancements to the home buyer tax credit and provide below-market, 30- year fixed-rate mortgages for home purchases.

Supporters of Fix Housing First point to the success of a similar plan launched in 1975, when the nation was also in the midst of a recession. At that time, Congress passed a short-term $2,000 tax credit for all new homes ($12,000 adjusted for today's median home prices) along with subsidized mortgage rates.

The stimulus jump-started the depressed economy and the effects continued long after the measure expired.

 The coalition is also  calling for significant enhancements to the current $7,500 tax credit for first-time home buyers. Among the improvements is that all primary home purchases between April 9, 2008 and Dec. 31, 2009 would be eligible. The credit amount would increase to 10 percent of the home price, and be capped at 3.5 percent of FHA loan limits, bringing the credit to a range of roughly $10,000 to $22,000.

The current recapture provision would be eliminated. Repayment would only be required if the home were sold within three years. Credit would be available at the time of closing, making it easier to be used as a down payment.

The second component of the stimulus plan would provide qualified home buyers with 30-year fixed-rate mortgages at 2.99 percent sales until June 30, 2009 and 3.99 percent on closings between June 30 and Dec. 31, 2009.

The coalition has also announced its support for continuing foreclosure prevention measures to keep people in their homes.