Builder Group Resumes Campaign Contributions
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Tuesday, May 6, 2008; Page D03
The National Association of Home Builders, one of the biggest corporate donors to politicians, has resumed contributing to congressional candidates, declaring that Congress has finally begun to pay attention to the weak housing market.
On Feb. 12, the powerful lobby took the unprecedented step of halting its campaign-giving as a protest against Washington's failure to address what it called "the underlying economic issues that would help to stabilize the housing sector and keep the economy moving forward." The group did not mention any specific initiatives.
At the time, the association's top priority was passage of a provision to reduce the tax liability of home builders and other businesses by allowing them to offset their past profits with future losses. That plan has fallen flat in Congress.
But last week, the association declared that it had a new priority -- a $7,000 tax credit for first-time home-buyers -- which was approved by a House committee and is expected to pass in the full House as early as this week. Signs are also strong for the plan in the Senate.
The association's political action committee, BUILD-PAC, voted unanimously to start giving out money again late last week. A top BUILD-PAC official, Ed Brady, said, "Our message has been heard."
So far this election cycle, BUILD-PAC has raised more $3 million, distributed more than $1.4 million and has about $2 million available to dispense.
Many K Street lobbyists, however, were not pleased that the association had stopped giving out money. The decision showed how closely interest groups tie their donations to the actions they hope lawmakers will take on their behalf -- a connection lobbyists do not want to flaunt for fear of legal and political repercussions.
"This highly visible carrot-and-stick approach to the use of PAC contributions displays a disquieting nexus between lobbying and political contributions," said Kenneth A. Gross, a campaign finance expert at Skadden, Arps, Slate, Meagher & Flom.
