On February 17, President Obama signed into law the American Recovery and Reinvestment Act (ARRA). A number of provisions in ARRA support various housing programs and are intended in part to create jobs in the design and construction industries. Many of these provisions were part of the overall advocacy efforts of the AIA and will be especially important for architects and designers.

The AIA Housing & Custom Residential Knowledge Community is committed to increasing the AIA’s emphasis on federal advocacy related to all housing sectors. During AIA Grassroots 2009, your KC Advisory Group helped create specific housing talking points for AIA members to take to their representatives on Capitol Hill. Additionally, individual members of the Advisory Group met with their state representatives to press the importance of housing to the economy recovery.

For general information about the AIA’s federal, state and local advocacy efforts, please visit the AIA Advocacy Center. To contribute directly to these advocacy efforts, visit the ArchiPAC web site.

Graphic Depiction of the Stimulus

Architects know the value of communicating complex information visually. The Washington Post compiled an informative graphic to explain the entire stimulus bill. This graphic is based on the original House version of the bill, but is still useful to see the scope and timing of a stimulus that is unprecedented in both.

Data on Architects in Residential Work

The stimulus package signed into law this week includes extensive support for single-family as well as multi-family construction and rehabilitation work. Additionally, a number of provisions fund green building improvements to existing buildings. According to the 2006 AIA Firm Survey numbers below, increased demand for these projects should have a significant impact on architecture firms:

• Almost two-thirds of firms reported at least some residential work, and close to 30% of all firms reported that more than half their billings came from the residential sector.
• Residential projects accounted for 18% of total billings in architecture firms nationwide (7% for single-family homes and 11% for multifamily).
• Of firms with residential sector billings, 80% are involved in designing new homes, and 67% are involved with renovations or alterations of existing homes.

In addition to the numbers above from the AIA covering architecture firms, the National Association of Home Builders (NAHB) estimates that 25% of major homebuilders have at least one architect or designer on staff.

Key Housing Provisions in the American Recovery and Reinvestment Act

First Time Homebuyer Tax Credit

• An $8,000 refundable tax credit for first time homebuyers with incomes below $95,000 (single) or $170,000 (couple). The total cost of this provision is estimated between $2 and $3 billion.

Affordable Housing Support

• $2 billion in gap financing for projects receiving Low Income Housing Tax Credits (LIHTCs)
• $2.25 billion in HOME funds for projects awarded LIHTCs in the past three years
• $4 billion in public housing capital funds, including energy efficiency upgrades
• $2 billion for the Neighborhood Stabilization Program (NSP) to help communities purchase and rehabilitate foreclosed, vacant properties
• $1 billion for the Community Development Block Grant (CDBG) program to support community and economic development projects, including affordable housing

Energy Efficiency Incentives

• $2 billion for energy efficiency upgrades in properties assisted by HUD through Section 8, Section 202, or Section 811 project-based subsidies
• $5 billion for the Weatherization Assistance Program to improve the energy efficiency of more than 1 million modest-income homes
• Extended and expanded tax credits for individual homeowners making energy-efficient investments such as new furnaces, windows/doors, and insulation
• $6.3 billion for the Energy Efficiency and Conservation Block Grant (EECBG) program, which can support a range of activities including residential building energy audits and energy efficiency retrofits.

Additional ARRA Resources

Recovery.gov
Searchable database of how and where tax dollars are spent as a result of the American Recovery and Reinvestment Act.

The AIA Angle Blog
Provides regular updates regarding AIA lobbying activities, including a number of recent posts about the stimulus bill

NAHB Fix Housing First website
National Association of Home Builders (NAHB) advocacy website supporting the inclusion of housing provisions in the stimulus bill

APA Policy Guide on Housing
American Planning Association (APA) guide discussing specific policies and actions which will help address housing needs in the U.S.

Stimulus Bill Compromise, Sector by Sector
A breakdown of construction-related spending in economic stimulus bill, by Engineering News Record (ENR). ENR estimates the bill includes a total of $131 billion in construction-related spending.