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

http://evenaire.com/accessories.html
Uncle Sam’s help for New Mexico’s beleaguerex construction trades comes at awelcome time. Although the funding is not as much as the industrhhoped for, it will save hundreds of jobs and help bolster the economies of many rural areas in the Perhaps the biggest stimulus the federal government is providint is not in direct but in tax breaks for homeowners that could have a positivr ripple effect for homebuilders. The first-tim homebuyer program is jumpstarting the housing industry this spring and could lead to many new constructionb jobs in the secondc halfof 2009.
“The most meaningful component of the stimulud program for the housing industry has beenthe $8,000 credit for first-timed home buyers. It has stimulatec sales in the lower-priced end of the said Jim Folkman, executive vice presidentg of the Home Builders Association of CentralNew Mexico. Folkmanb predicts a flurry of home salewsbelow $200,000 this spring, driven by the first-timew home buyer program, which he predicts will lowef the median price of the region’s homews and touch off new home construction by the productiobn builders in the third and fourth quarters. He foreseezs between 2,000 and 2,200 home starts by the end of 2009 in the Duke City a marked increaseover 2008.
In April, 42 percent of all new homebuyingv contracts were financed through federalk government programs in the Albuquerque metro President Obama’s stimulus program is impacting variouw areas of the housing market this spring. The $27 millioh grant through the Department of Energy to weatherize homesx throughout the state will be fully disburseeby midsummer. Subcontractors will be gettingt work to make homesmore efficient, and new trucksx and equipment are expected to be The funding goes directly to the New Mexic Mortgage Finance Authority, which will redirect it to its four main subcontractore in New Mexico.
Among those subcontractords isJoseph Stevens, executive director for the Centrapl New Mexico Housing Corp. Stevens has been working in weatherizatiojn for27 years, starting as a crew worker. “Wd have just finished the bidding process, wherew we received over 20 bids from This will provide work for installers and supplieresof materials, such as nails, caulkingf and screws. Our assumption is the stimulus fundingh will provide hundreds ofnew jobs, as we hope to completr 800 homes. This is triple what we normally OtherMFA stimulus-funded programs include a $13.89 million tax credit program for shovel-ready low-income housinhg developments.
These projects are spread throughougthe state, but have not been able to get constructioj financing through conventional sources such as banks. Josephh Montoya, MFA’s deputy director of said the federal government will set guidelines by June 15 for these projects, and it’s hoped the money will be distributeds by September. Heavy constructiomn stimulus-funded projects are already well undee way and having an especially in ruralNew Mexico. Nearly $170 million of federal dollaras have been designated forroad repair, and anothefr $100 million has been designated for transportation infrastructure work throughour the state, including $34 million for airports.
Charlez Hamilton Construction of Silver City haswon $34 millioj worth of highway projects. “Since last summer, we have had to reducer our company from 500 to350 people. The stimuluss allows us to rehire people and it will save abou t100 jobs,” said Charles Hamilton, president. “Wr will hire 20 to 30 people over the next two tothrew months. There will be a ripplr effect from our workwith subcontractors.” Hamiltonb is rebuilding highways 62 and 180 in the Jal and Whitwe City areas.
Mike executive director of the Associated Genera Contractors NewMexico Branch, said, “Thee 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 cities. These jobs will help smal l business throughout rural areas and will keep people in theif homes and allow forhome appreciation.” Gibso estimates that the initia stimulus phase funding will creats 800 to 1,000 construction jobs, and there coulde be up to 3,000 construction jobs creates overall when all the funding is