Industry Gets Behind Recovery Plan

LBM dealers and associations are supporting "Fix Housing First," a $250 billion stimulus package sponsored by the National Association of Home Builders.

"If we are going to successfullY oull our nation out of recession, we must address housing first," said Jerry Howard, NAHB's president and c.e.o. "Restoring demand for housing is the fastest and most effective waY of reviving the economy."

According to NAHB, three million home building-related jobs have been lost as a result of the construction slowdown, which represents $145 billion in lost wages and $4.9 billion in lost purchases. Deterioration in these jobs has now spilled over into virtually all sectors of the U.S. job market.

Industry backers of the coalition include dealers such as 84 Lumber, BMC West, Builders FirstSource, ProBuild, and Stock Building Supply; manufacturers such as Andersen, CertainTeed, Dow, L-P, Owens Corning, Simpson Strong-Tie, and Temple-Inland, and associations such as American Forest & Paper Association, Illinois Lumber & Materials

Dealers Association, National Association of Home Builders, National Lumber & Building Material Dealers Association, and North American Wholesale Lumber Association.

"Over the past two years, the new home construction market has experienced an unprecedented decline. This has led to major layoffs, lost business, and production cutbacks by thousands of building product manufacturers and suppliers nationwide," said Frank Cicero, executive v.p. of store operations for 84 Lumber. "Clearly, innovative and decisive government action is urgently needed to stem the decline and create positive traction in the housing market."

To restart the economY, the coalition is urging Congress to support enhancements to the homebuYer tax credit and provide below-market 30year fixed-rate mortgages, from 2'99Vo to 3.99Vo.

. All primary home purchases between April 9,2008, and Dec.31, 2009. would be eligible.

. The credit amount would be increased to l}Vo of the price of the home and capped aI 3.57o of FHA loan limits, bringing the credit to a figure between $10,000 and $22,000.

The current recapture provision would be eliminated. RePaYment would only be required if the home were sold within three years.

. The credit would be available at the time of closing, making it easier to be used as a down payment.

The coalition also supports continuing foreclosure prevention measures and permanently keePing the FHA/ Fannie Mae and Freddie Mac conforming loan limits at $729 ,7 50, to help homebuyers in high-cost markets'

"If Congress enacts a meaningful tax credit, coupled with an aggressive interest rate buy-down Program, we are confident that these measures will help to stabilize home prices, prevent future foreclosures, restore consumer confidence, and start creating jobs," said Howard.

Economist Edward Glaeser argues that setting a floor for home Prices will keep supply and demand out of sync and prolong the pain. Others say that artificially high home prices will prevent more people from buYing.

Other critics maintain that while a large tax credit could motivate unsure buyers, it would do nothing for homeowners unable to refinance mortgages they can't afford-which is arguably a bigger problem.

When you delrver sheathrng and lrral boards ii th na dnd pattern merks printed by Matthews' ink-jet systems, the retlrns y e d no'e than value-added solutions for your customer. These innovat ve systen,s l.troduce rew and c eaner w.lys to marK build fg pfoduct5, ncrea5e pfod!rt 0n effic enc es ;nrJ Cecrease the overail cost of inks an6 supplies. Avoid the mess of aton, lef sprayers ;nd pa nt systems that are prone to cloggrnq, consumab e,,^,raste, .r1ir overspfay. With our Drop'on Demand ink let, you' expef enre a f;ex b e systenr:hat has the abr ;ty to integfnte directly into your PLC or other board-dr ven product on letup Fof pr nting with conf dence whiie providinq env ronmental y flenrltiei so utrons, turn to Matthews Marking products for your most cha lenglx_q appl cations

Logo & Unit Association & Grading . End Striping

Nail & Pattern o VoC-Free lnks