This just goes to show how lobbyists are dead serious when it comes to their cause. A total of $600,000 was spent by the National Association of Home Builders on lobbying for housing, taxes, and construction lending. And this was just in the second quarter of the year.
The amount that was spent is actually 23% less than what the home-building industry’s main trade association spent in the same quarter of 2009. The first quarter saw an expenditure of $410,000 for lobbying the Congress, the White House, and other government agencies. Other issues that NAHB lobbied on were legislation involving the environment, consumer rights, immigration, labor, banking, transportation, energy, air and water quality – all of which have, in some way, a connection with housing.
In the last quarter, the group’s main focus was on bills that aim to boost residential construction loans and that are directed at residential flood insurance reform. Also in their agenda last month was proposing changes in tax code, such as extending tax credits for contractors aiming to build energy-efficient homes and creating tax on carried interest that runs at the rate of ordinary tax rates.
Because of home buyer tax credits and low mortgage interest rates, spring saw a bump in new home orders and sales. Ever since the expiry of the tax credit last April 30, though, sales have weakened.
The month of May has actually seen the lowest sales level on record, plummeting to 33% from the previous months. And though the numbers picked up slightly in June, the number was still recorded as the second weakest month on record.
The economy may be strengthening but the high unemployment rate and slow job growth plus lighter credit still prevent people from purchasing new homes. Analysts are uncertain as to whether the sales numbers are going to pick up soon, especially since the buyers’ incentives from the government are now gone.
Lobbyists for NAHB include Michael Linskey and Alex Strong. They also focused their lobbying on departments such as Labor, Energy, and Treasury. Occupational Safety & Health Administration and the Environmental Protection Agency were also those lobbied by NAHB.
The disclosure report, which contains the NAHB’s lobbying expenses, was filed on the 20th of July.