NAHB, Treasury, HUD Extol Economic Benefits of New Housing - 6/21/2004 - Mortgage Loan Refinance Debt Equity

NAHB, Treasury, HUD Extol Local, National Economic Benefits of New Housing

Treasury Secretary John Snow and HUD Secretary Alphonso Jackson joined NAHB President Bobby Rayburn at a Las Vegas housing site on June 18 to extol the benefits of housing to the local and national economy.

Appearing at The Verandas at the Peaks, a new single-family housing community under development by Astoria Homes, Rayburn said, “One might wonder what would compel two powerful cabinet members to travel more than 2,000 miles from Washington to stand with us here in the desert heat. I believe I have the answer.

“Secretaries Snow and Jackson understand that housing is a major and thriving component of the national economy, accounting for about 14% of the Gross Domestic Product. They know that housing has played an even more essential role in the economic recovery over the last two years — creating new jobs and serving as an engine of economic growth.”

Surveying the bustling new home development, Rayburn observed that similar new neighborhoods under construction across the country are generating substantial economic benefits for local communities in terms of local jobs, wages and tax revenues.

“Consider this,” he said. “In a typical community, building 100 single-family homes generates about $41 million in local income and $6.6 million in local tax revenues over 10 years.”

While housing has led the economic recovery in recent years, Secretary Snow said that other sectors of the economy — including manufacturing, retail and telecom — are also reporting positive prospects for sustained growth and job creation.

Snow credited the economic resurgence to the Administration’s tax policy reforms, which he said will result in lower income tax bills this year for 845,000 Nevada taxpayers.

“As a home builder, I can tell you that solid economic and job growth are important for housing,” said Rayburn. “It will ensure that we will continue to have strong demand for new housing into the future.”

Rayburn also commended Secretaries Snow and Jackson for working with the nation’s home builders to urge the Congress to pass homeownership tax credit legislation and a Federal Housing Administration zero downpayment mortgage insurance program.

These two important housing initiatives would help ensure that low- and moderate-income households get a chance to achieve the American dream of homeownership.

The homeownership tax credit, which has strong bipartisan support and is currently pending in both chambers of Congress, would help working Americans currently priced out of the market to buy their first home. The credit would stimulate construction of 50,000 new or rehabilitated homes each year and create 120,000 new jobs annually.

The FHA zero downpayment program directly addresses what is widely viewed as the greatest obstacle faced by potential first-time home buyers — the ability to assemble enough funds for a downpayment.

Legislation (H.R. 3755) to implement this program was introduced in the House earlier this year by Reps. Patrick Tiberi (R-OH) and David Scott (D-GA). Companion legislation has yet to be introduced in the Senate.

HUD estimates that 140,000 families would be able to become home owners if this proposal is enacted into law.