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Builders Call On Washington

Hundreds of leaders of the home building industry from across the country met recently in Washington, D.C., to urge Congress and the Carter Administration to take immediate action to prevent the bottom from falling out of the housing market.

The Emergency Action Day in Washington (March 25-26) was two days of intensive lobbying on Capitol Hill and at the White House.

"We are entering what could be the deepest housing depression in modern times." Merrill Butler, National Association of Home Builders' president. said. "With ntortgage rates soaring to l6()l' levels and the prime rate approaching 20(ll, following the latest credit tightening moves, builders can't build and our customer's can't buy. There is literally no bottom to this housing cycle as long as interest rates remain this high."

Housing starts are expected to fall below l.l nrillion units in 1980. according to the latest NAHB forecast. The loss of 900.000 units (the difference between the 1980 NAHB forecast and the 2 million units built annually during 1977 and 1978) will result in the loss of 1.4 million jobs, almost $25 billion in wages. and more than $6.7 billion in government tax revenues.

Butler said the most inmediate problem confronting the industry is enabling home buyers to qualify for mortgages: fewer than 5(1, of U.S. households can qualify for today's median priced home o[ about $64.000.

During the two-day lobbying effort, Butler said, NAHB sought the immediate release of low interest rate mortgage money under the socalled Brooke-Cranston program as well as positive action by Congress that would allow states and local communitites to sell tax exempt revenue bonds to finance singlefamily homes.

"Brooke-Cranston and taxexempt revenue bonds are low cost and noninflationary government assistance programs," Butler said. "The jobs, income and tax revenue generated by the sale and construction of new homes under these programs nrore than offset the initial government outlays."

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