The week of April 21st, I took my youngest son, Conor age 11, with me to the annual NAHB Legislative Day in Washington DC.  Besides touring the Federal City and taking in the sights, our delegation got to meet with our elected representatives; Senators Richard Burr and Kay Hagan as well as Congressman Heath Shuler.  The purpose of these annual trips is to inform our representatives of the condition of the local and state building industry.  We offer solutions to the current challenges that face our economy.  Some listen, others don’t.

The building industry makes up about 16% of the National and State GDP.  With unemployment in NC at 11%, there is no doubt a direct correlation between the effects that the Great Recession has had on our industry.  It was troubling to hear from Sen. Burr that not only was the current Congress and Administration not doing anything to help the housing market, the Financial Reform bill that they were trying to pass actually had some items in it that would damage the industry more.  According to Burr “I am 100% committed to updating our financial regulatory system, but unfortunately the bill currently being debated could lead to more taxpayer-funded bailouts.   I am also concerned that it does nothing to address the risk posed by the mortgage giants Fannie Mae and Freddie Mac, two major contributors to the financial meltdown.  In fact, according to this report from the Associated Press, Freddie Mac asked for another $10.6 billion in assistance from the taxpayers this week.”

Sen. Burr (who is a great advocate for the industry) expressed disappointment, since we were there the year before saying the same things, because nothing had really been done other than extending the Homebuyer tax credit (sponsored by the NAHB).

On the local level, regulations have also grown out of control.  Most recently, the steep slope ordinance will ensure that construction slows to a halt.  If in fact this ordinance was done for the sake of the public safety, then why does it only pertain to new developments and not ALL (individual) lots that have yet to be built on?  This ordinance is simply a direct assault on development.  As the industry slowly recovers, all of the new regulations that are now being enforced will have a devastating effect on our economy.  The truth is that the problems in energy consumption, water runoff, indoor air quality and structural design don’t really pertain to the new homes that are being built.  These new homes are actually the solution as they are well designed, clean and energy efficient, especially the professionally designed homes in new developments.  Yet these are the homes that are being targeted for regulation.  If you want to address the problems that exist, you should offer incentives to owners of older homes who need updating, not penalize the ones who are already doing it right!

The solution is simple: recognize and reward what is being done to build more efficiently, environmentally sound, and feeds the tax base.  This is a big election year and change is bound to come brought by those who understand what is happening around them.  Educate yourself on the issues and get out and vote this election cycle.  Remember – less regulation is all the stimulus we need.