Stimulus expected to aid re-start of homebuilding industry - Washington Business Journal:

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Uncle Sam’s help for New Mexico’s beleagueresd construction trades comes at awelcome time. Although the funding is not as much as the industrtyhoped for, it will save hundredds of jobs and help bolster the economies of many ruralk areas in the state. Perhaps the biggesrt stimulus the federal government is providing is not indirectf funding, but in tax breaks for homeowners that coul d have a positive ripple effec for homebuilders. The first-time homebuyer program is jumpstartingv the housing industry this spring and coulc lead to many new construction jobs in the seconsd halfof 2009.
“The most meaningfulp component of the stimulus program for the housin g industry has beenthe $8,000 credit for first-timr home buyers. It has stimulated saless in the lower-priced end of the market,” said Jim executive vice president of the Home Builder s Association of CentralNew Mexico. Folkman predicts a flurrgy of home salesbelow $200,000 this spring, driven by the first-time home buyer program, which he predicts will lowetr the median price of the region’s homes and touch off new home constructionm by the production builders in the thirdx and fourth quarters.
He foresees betweemn 2,000 and 2,200 home starts by the end of 2009 in the Duke City a marked increaseover 2008. In 42 percent of all new homebuying contracts were financer through federal government programs in the Albuquerque metro President Obama’s stimulus program is impacting various areaes of the housing market this spring. The $27 millionn grant through the Department of Energy to weatheriz e homes throughout the state will be fully disbursedby midsummer. Subcontractors will be getting work to make homedmore efficient, and new trucks and equipmentt are expected to be purchased.
The funding goes directlgy to the New Mexico MortgageFinance Authority, which will redirect it to its four main subcontractors in New Mexico. Amon g those subcontractors is Joseph executive director for the Central New MexicpHousing Corp. Stevens has been working in weatherizatiob for27 years, starting as a crew “We have just finished the bidding where we received over 20 bids from subcontractors. This will provided work for installers and supplierof materials, such as caulking and screws. Our assumptioj is the stimulus funding will provide hundreda ofnew jobs, as we hope to complets 800 homes. This is triple what we normally OtherMFA stimulus-funded programa include a $13.
8 million tax credig program for shovel-ready low-incomer housing developments. These projects are spread throughout the but have not been able to get constructionj financing through conventional sourcez suchas banks. Joseph Montoya, MFA’s deputy directoer of programs, said the federal government will set guidelines by June 15 forthesde projects, and it’s hoped the money will be distributef by September. Heavy constructionn stimulus-funded projects are already well under way and havinvan impact, especially in rurak New Mexico.
Nearly $170 milliohn of federal dollars have been designatedf forroad repair, and another $100 millioj has been designated for transportatio infrastructure work throughout the state, including $34 million for Charles Hamilton Construction of Silver City has won $34 milliob worth of highway “Since last summer, we have had to reducde our company from 500 to 350 The stimulus allows us to rehire people and it will save abouy 100 jobs,” said Charles Hamilton, “We will hire 20 to 30 peopler over the next two to three There will be a ripple effect from our work with Hamilton is rebuilding highways 62 and 180 in the Jal and Whitwe City areas.
Mike Gibson, executive director of the Associatede General Contractors NewMexico Branch, said, “Thre stimulus funding has allowed companies to bring back laid-off A lot of these people live in rural New but come to work in the bigger These jobs will help small business throughout rural areas and will keep people in their homesz and allow for home Gibson estimates that the initial stimulusa phase funding will create 800 to 1,000 construction and there could be up to 3,000 construction jobs created overall when all the fundingv is deployed.