Supporting the RV, Manufactured Housing, and Marine Industries

I have the privilege of representing a large part of the recreational vehicle (RV), manufactured housing and marine industries.  These industries are crucial to northern Indiana’s economy.  RV manufacturing has long been a major economic driver in places like Elkhart by directly employing thousands in RV plants and thousands more in suppliers’ factories, not to mention contributing to the local municipal tax base. 

In 2007, Indiana had approximately 228,000 residents employed in the RV industry who manufacture, sell and service America’s family camping vehicles.  Statewide, the marine manufacturing industry employs nearly 5,700 Hoosiers and direct sales on boating products total more than $524 million a year.  Over the past few years, these industries have been hit hard by high fuel prices and the recent credit crunch, forcing painful layoffs.  I am working tirelessly with area business leaders to get these industries back on track.  Read more about my work with the RV industry in an interview with RV Business Magazine. 

 Visiting with RV manufacturers in May 2007
 

RV TAX DEDUCTION
A strong recreational vehicle industry is crucial to north central Indiana, and especially Elkhart County. I fought to include a tax deduction for new RVs in The American Recovery and Reinvestment Act [Public Law 111-5], which was signed into law by President Obama on February 17, 2009.  The provision saved families up to $1,100 on a new RV.  Despite tumultuous times for RV makers, sales have begun to rebound and local companies are starting to hire again.  I think the deduction has played a role in the comeback of the industry. Read more about this tax deduction in the local news.
 
On December 16, 2009, I introduced H.R. 4366, which would renew the tax deduction for state and local sales or excise taxes on the purchase of new RVs.   This legislation would help continue the trend in rising RV purchases and new production. 

NEW RESEARCH FOR NEXT GENERATION RVs
We’ve seen what spikes in fuel prices can do to RV sales and the direct impact on jobs.  On September 16, 2009, I introduced an amendment that would make RVs eligible for a new Department of Energy (DOE) research and development initiative created by H.R. 3246, The Advanced Vehicle Technology Act of 2009.  The House adopted my amendment by a vote of 369 to 62 and subsequently passed the bill. 

By explicitly including RVs in the new DOE research and development program, federal researchers would be put to work devising new technologies to help make RVs more fuel-efficient.  Doing so would reduce our dependence on foreign oil and help protect RV owners and makers from the impact of rising energy prices.  With both government experts and RV makers working to usher in a new generation of fuel-efficient vehicles, we can help to ensure the industry’s continued competitiveness and success.

Touring Dynamic Metals in 2009, which supplies many industries including the recreational vehicle industry

SMALL BUSINESS LENDING
An issue that continues to plague small businesses is the lack of available credit.  RV, manufactured housing and marine manufacturers have suffered from the lack of credit to purchase floor plan inventory.  I am working to improve the credit situation for small businesses through the expansion of Small Business Administration (SBA) loan programs.  On April 24, 2009, I sent a letter to SBA Administrator Karen Mills urging for the inclusion of floor plan loans in the SBA’s section 7(a) loan guaranty program, in an effort to help automobile, RV, boat and manufactured housing dealers.  On July 1, 2009, at a press conference in Kokomo, the SBA announced the availability of federally-backed floor plan loans to help key Hoosier industries struggling with layoffs and revenue losses as the result of the nationwide credit crunch. 

When dealers of cars, RVs, boats and manufactured housing are able to get loans to purchase inventory, they generate economic activity that benefits themselves as well as manufacturers, suppliers, consumers and workers.  By filling a gap in the credit markets, this SBA program allows dealers and manufacturers to plan over a longer term and, in doing so, sell more, make more and create more jobs.  I will continue to support reforms that will increase lending to small businesses because there is still too little credit available and too many business owners unable to secure loans. 

TERM ASSET-BACKED LENDING
One of the ways that I have tried to alleviate some of the pain in these industries is by ensuring that RV, manufactured housing and marine loans are eligible for purchase by Term Asset-Backed Lending Facility (TALF) funds.  This program is designed to revitalize secondary markets and intended to jumpstart primary lending markets.  Originally, this program only included student, credit card, small business and auto loans as eligible forms of collateral.  I sent letters to the Federal Reserve and Department of Treasury asking that they include RVs, marine products and manufactured housing as eligible asset classes in the TALF program.  On February 6, 2009, the Federal Reserve announced that eligible asset-backed securities could be backed by RV, marine product and manufactured housing loans. 

ENSURING FAIR REGULATION OF MANUFACTURED HOUSING
In response to the near-meltdown of our financial system in late 2008, Congress has begun to update and strengthen the rules and regulations that govern Wall Street’s behavior.  A new consumer-focused entity–the Consumer Financial Protection Agency–has been proposed as part of this regulatory overhaul.  As a member of the House Financial Services Committee, I had the opportunity to offer an amendment to clarify that manufactured housing retailers are not subject to the Consumer Financial Protection Agency’s authority.  Manufactured housing sellers did not participate in the kind of predatory lending that other mortgage originators did.  The amendment will ensure that manufactured housing retailers who act in their traditional capacity of selling homes will not face an undue burden.  My amendment passed the House by voice vote. 

Announcing The FHA Manufactured Housing Loan Modernization Act of 2007 in Elkhart, Indiana

RAISING FHA-INSURED TITLE I LOAN LIMITS FOR MANUFACTURED HOUSING
The manufactured housing industry plays a critical role in helping Americans achieve the dream of homeownership by providing them with affordable housing options.  With so many Hoosiers’ jobs related to manufactured housing, I have worked to ensure that the federal government fosters a business climate that will allow our local companies to remain competitive and hopefully even grow.  In June 2007, I introduced H.R. 2139, The FHA Manufactured Housing Loan Modernization Act, which included provisions to raise the FHA-insured Title I loan limits for manufactured homes that are placed on leased land.  My bill passed the House by voice vote. 

My bill was subsequently included in H.R. 3221, The American Housing Rescue and Foreclosure Prevention Act of 2008, which was signed into law on July 30, 2008.  The manufactured housing provision raised home-only loan limits from $48,600 to $69,678, a dollar amount more likely to cover the cost of a double-family home.  H.R. 3221 is beneficial to Americans seeking the economic advantages homeownership provides and also to the manufactured housing industry by increasing the demand for affordable, quality manufactured homes.