Builders halt campaign gifts over housing response
WASHINGTON (Reuters) - A home builders' group on Tuesday halted donations to federal congressional campaigns over concern that Congress and the Bush administration have not done enough about the housing slump and the economy.
In an unusual move for a Washington lobbying group, the National Association of Home Builders' political action committee said in a statement it has ceased contributions to candidates until further notice.
"This extraordinary action was taken because ... over the past six months Congress and the administration have not adequately addressed the underlying economic issues that would help to stabilize the housing sector and keep the economy moving forward," said NAHB President Brian Catalde.
With fallout from a crisis in the subprime mortgage market spreading, the U.S. median home price fell last year for the first time since the Great Depression of the 1930s, while home sales volumes have plunged, hitting builders hard.
Almost $1.4 million had been donated to candidates as of Friday by the home builders in the 2008 election cycle, said the group's spokeswoman Donna Reichle.
"More needs to be done to jump-start housing and ensure the economy does not fall into a recession. This action will remain in effect until further notice," Catalde said in a statement.
In a $152 billion, economic stimulus package approved last week by Congress, measures aimed at propping up the troubled housing market and preventing foreclosures were central.
But to win more Republican support for the package in the closely divided Senate, Democrats had to drop a tax break that would have helped home builders.
President Bush is expected to the measure on Wednesday.
Reichle declined to comment on any possible connection between the stimulus package and the halting of donations.
The Washington, D.C.-based organization represents more than 235,000 members in home building and remodeling, property management, design, finance, manufacturing and related segments of the residential and light commercial construction business.
(Reporting by Kevin Drawbaugh, editing by Leslie Gevirtz)
