House Bill Wants Feds to Guarantee ADC Loans For Builders

As builders struggle to get financing for land development and construction, a North Carolina congressman has called on the federal government to step in and guarantee loans for viable building projects, particularly in markets where lending has dried up the most. “We’ve gone from indiscriminate lending to indiscriminate refusal to lend, and it’s killing jobs,” says Brad Miller (D-N.C), who with two other Democrats—Joe Baca of California and Steny Hoyer of Maryland—introduced HR 5409, known as the Residential Construction Loan Guarantee Program. “We can’t tell 16% of the [Gross Domestic Product] to just hang around and wait for a while,” says Miller, referring to the housing industry and its economic output. This bill calls for $15 billion to be appropriated to the Treasury Department over three years to guarantee loans for land and building. HR 5409 is an amendment to another bill moving through Congress that, if passed, would extend $30 billion to small banks for small business loans.

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