Ensure Availability of Acquisition, Development and Construction Credit

Housing Finance

Resolved that the National Association of Home Builders (NAHB) urge Congress and federal banking regulators to provide support for acquisition, development and construction (AD&C) lending at financial institutions by:

  • Emphasizing to banking field examiners that the commercial real estate (CRE) lending thresholds are not to be enforced as definitive lending limits to prevent banks from making loans to home builders;
  • Prohibiting banking field examiners from compelling lenders to call or curtail residential AD&C loans in good standing;
  • Allowing regulatory flexibility to permit appropriate forbearance and workouts on troubled AD&C loans;
  • Ensuring that regulatory capital requirements do not adversely impact AD&C lending by financial institutions, particularly by small community banks; and
  • Providing incentives for residential AD&C financing in housing lending investment requirements for financial institutions by allowing credit under the Community Reinvestment Act regulations for AD&C lending.

Further resolved that NAHB urge Congress, regulatory agencies and participants in the housing finance system to facilitate development of nontraditional AD&C capital sources, including a secondary market for housing production loans and potential securitization opportunities.

Resolution originally adopted: 2013.6, Resolution No. 8

Committee with primary jurisdiction:

  • Housing Finance Committee
Full Resolution The full text of this resolution is available for download