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 WASHINGTON, Aug. 10 /PRNewswire/ -- President Clinton's $496 billion deficit reduction package, which cleared the Senate last Friday and was signed into law today, was applauded by the National Association of Home Builders (NAHB) as a "significant first step" in containing the nation's runaway federal deficit.
 NAHB, whose 165,000 member firms are involved in all phases of residential and light commercial construction and employ about 6.5 million Americans, was one of the first business trade associations to throw its support behind the president's plan. The 2,000-member NAHB Board of Directors endorsed the plan in a resolution approved on Feb. 20, four days after President Clinton unveiled his plan. The 1.26 million housing starts and more than $100 billion in remodeling activity projected for 1993 will account for about 5 percent of the nation's total domestic economy.
 Following is a complete text of the statement issued today by J. Roger Glunt, president of NAHB and a home builder from Pittsburgh:
 Enactment of the President's $496 billion deficit reduction plan was a significant first step in containing the nation's soaring federal deficit -- a move that we believe was absolutely essential to promote long-term economic growth in this country.
 The legislation will be viewed favorably by worldwide financial markets. It will help keep the lid on interest rates and keep the economic recovery on track. The alternatives -- do nothing, continue the gridlock or start the entire process all over again -- were totally unacceptable and could have derailed the nation's tentative economic recovery.
 The legislation also contains several important housing provisions.
 It permanently reauthorizes the low-income housing tax credit, which will stimulate the construction of affordable rental apartments.
 It permanently reauthorizes the tax exempt mortgage revenue bond program, which provides below-market rate mortgages for young families buying their first homes.
 Those two programs -- the low-income housing tax credit and mortgage revenue bond programs, both of which expired a year ago -- will stimulate construction of about 100,000 affordable housing units each year. That, in turn, will create 175,000 jobs in the construction and construction-related sectors of the economy.
 In addition, the legislation includes two provisions that will help ease the credit crunch, which has been a major problem for builders and other small businessmen. It will change the tax laws governing pension funds to allow for greater pension fund investment in real estate. It also contains tax code changes that will permit builders and other small businessmen to defer income in debt restructuring situations.
 Finally, the legislation corrects a few of the inequities created by the Tax Reform Act of 1986. Specifically, it partially restores the passive loss rules for professionals in the real estate business. This provision will permit builders to do what people in all other businesses are currently allowed to do -- to subtract the losses from one segment of their business from the income generated by another segment of their business. This move will, over time, help bolster values of income- producing property and restore a sense of parity to the tax system.
 As a whole, this is a fair bill. It will cut the deficit, keep interest rates low and promote affordable housing. The deficit reduction package, in our view, is good for housing consumers, good for the economy and good for America.
 -0- 8/10/93
 /CONTACT: Jay Shackford of the National Association of Home Builders, 202-822-0406/

CO: National Association of Home Builders ST: District of Columbia IN: CST SU: EXE ECO LEG

IH-KD -- DC017 -- 1206 08/10/93 12:49 EDT
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Publication:PR Newswire
Date:Aug 10, 1993

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