NLBMDA responds to housing bill
The National Lumber and Building Material Dealers Association (NLBMDA) has responded to the new housing bill introduced by Sen. Elizabeth Warren (D-Mass).
The American Housing and Economic Mobility Act is designed to provide $470 billion for affordable housing, including creating housing for low-income and middle-class Americas.
In the current housing climate, many potential buyers remain on the sidelines due to affordability issues. At the same time, a lack of housing has continued to push prices up in 2018 and placed homes further out of reach for many.
The NLBMDA has issued the following statement regarding the bill:
Senator Elizabeth Warren (D-MA) has introduced a sweeping new proposal to address housing affordability. The American Housing and Economic Mobility Act (S. 3503) provides $470 billion for affordable housing trust funds and expands the types of financial institutions subject to Community Reinvestment Act (CRA) requirements. The legislation would be paid for by greatly reducing estate tax exemption levels and placing an additional surtax on estates exceeding $1 billion.
Federal bank regulators are already trying to reform CRA, which applies to banks insured by the Federal Department Insurance Corporation (FDIC), and encourages them to meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods, consistent with safe and sound operations. Under Sen. Warren’s proposal, credit unions and other nonbank mortgage lenders would also have to comply with CRA requirements.
In August, the Office of the Comptroller of the Currency (OCC) issued a proposal seeking input on reforms to the CRA. OCC is considering changes to its community lending ratings system to make it more accurate and transparent.
The legislation seeks to address challenges with affordable housing by making the following investments:
Introduction of the legislation comes as pending home sales have decreased on an annual basis for eight straight months. Numerous housing experts have pointed out that a lack of inventory continues to provide a headwind for the housing market.
“NLBMDA appreciates the effort by Sen. Warren to highlight the issue of housing affordability,” said NLBMDA President & CEO Jonathan Paine. “However, NLBMDA disagrees with Sen. Warren financing her proposal by reducing the estate tax exemption.”
NLBMDA supports affordable housing programs that make the dream of home ownership available to more Americans, but opposes changes to estate tax laws that make it harder for family owned businesses to transition to the next generation.
The American Housing and Economic Mobility Act is designed to provide $470 billion for affordable housing, including creating housing for low-income and middle-class Americas.
In the current housing climate, many potential buyers remain on the sidelines due to affordability issues. At the same time, a lack of housing has continued to push prices up in 2018 and placed homes further out of reach for many.
The NLBMDA has issued the following statement regarding the bill:
Senator Elizabeth Warren (D-MA) has introduced a sweeping new proposal to address housing affordability. The American Housing and Economic Mobility Act (S. 3503) provides $470 billion for affordable housing trust funds and expands the types of financial institutions subject to Community Reinvestment Act (CRA) requirements. The legislation would be paid for by greatly reducing estate tax exemption levels and placing an additional surtax on estates exceeding $1 billion.
Federal bank regulators are already trying to reform CRA, which applies to banks insured by the Federal Department Insurance Corporation (FDIC), and encourages them to meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods, consistent with safe and sound operations. Under Sen. Warren’s proposal, credit unions and other nonbank mortgage lenders would also have to comply with CRA requirements.
In August, the Office of the Comptroller of the Currency (OCC) issued a proposal seeking input on reforms to the CRA. OCC is considering changes to its community lending ratings system to make it more accurate and transparent.
The legislation seeks to address challenges with affordable housing by making the following investments:
- $445 billion in the Housing Trust Fund to build, rehabilitate, and operate up to 2.1 million homes for low-income families;
- $25 billion in the Capital Magnet Fund that would be leveraged 10:1 with private capital, to build more than 835,000 new homes;
- $4 billion for a new Middle-Class Housing Emergency Fund to support construction of homes for middle-class buyers and renters;
- $523 million in rural housing programs to create 380,000 rentals and help 17,000 families buy homes; and,
- $2 billion for the Indian Housing Block Grant to build or rehabilitate 200,000 homes on tribal land.
Introduction of the legislation comes as pending home sales have decreased on an annual basis for eight straight months. Numerous housing experts have pointed out that a lack of inventory continues to provide a headwind for the housing market.
“NLBMDA appreciates the effort by Sen. Warren to highlight the issue of housing affordability,” said NLBMDA President & CEO Jonathan Paine. “However, NLBMDA disagrees with Sen. Warren financing her proposal by reducing the estate tax exemption.”
NLBMDA supports affordable housing programs that make the dream of home ownership available to more Americans, but opposes changes to estate tax laws that make it harder for family owned businesses to transition to the next generation.