CBIA Thanks Governor for Quickly Signing Another Crucial Industry Recovery Bill
SACRAMENTO – August 7, 2008 – (RealEstateRama) — California homebuilders today thanked Gov. Arnold Schwarzenegger and the Legislature for enacting the last piece of CBIA’s three-part homebuilding stimulus package launched in January to help provide some relief to the battered homebuilding industry.
The Governor signed AB 2604 by Assembly Member Alberto Torrico, D-Newark, which encourages local jurisdictions to defer the collection of impact fees – which can average as much as $50,000-$100,000 per home – until as late as close of escrow, allowing builders to get projects off the ground that would otherwise be financially unfeasible.
Robert Rivinius, CBIA’s President and CEO, said the bill package is important to the building industry and to the state’s economy.
“These bills taken together are a significant step forward for the homebuilding industry, which is now in its worst downturn since World War II,” Rivinius said. “The bills will help companies weather this storm and allow them to quickly respond to market conditions when buyers return to the market. We appreciate the fact that our elected representatives realize how important these bills are to our industry, and also to the entire economy.”
AB 2604 was just one part of a three-pronged approach by CBIA to sponsor legislation designed to help initiate an industry recovery.
In mid-July, the Governor signed into law the CBIA-sponsored measure SB 1185 by Sen. Alan Lowenthal, D-Long Beach, extending the life of hundreds of expiring subdivision maps in California for one year, giving the industry more time to begin construction on nearly 250,000 homes and apartments, and authorizing local governments to extend the maps by an additional year.
CBIA also worked tirelessly to encourage Congress to permanently raise conforming loan limits, and those insured by FHA, to reflect the high cost of housing in California and to that end sponsored AJR 45 by Assembly Member Joe Coto, D-San Jose, which strongly encouraged Congress and the President to take action. Although the final bill passed by Congress and signed by President Bush isn’t everything the industry had asked for, it does permanently increase the conforming loan limits from $417,000 to $625,000 and includes other provisions expected to help stimulate the housing market.
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The California Building Industry Association is a statewide trade association representing thousands of homebuilders, remodelers, subcontractors, architects, engineers, designers, and other industry professionals. More information is available on the Association’s Web site, www.cbia.org.
Contact:
John Frith
Vice President/Public Affairs
(916) 443-7933 ext. 332
(916) 803-3005 (cell)
jfrith (at) cbia (dot) org
