Earlier today, about 200 union members from the Sheet Metal Workers International Association and International Union of Painters and Allied Trades broke into a conference held by the Mortgage Bankers' Association to ask what was done with a little known taxpayer financed giveaway that homebuilders like PulteGroup, for example, used to spend $900 million to acquire land rather than create jobs. As you can see from the video below, the mortgage brokers and executives seemed to be SHOCKED that a group of people would even dare break into their conference.
View video of protest here (via CNBC)
What brought 200 protestors to Washington, DC to disrupt a conference at the Mortgage Bankers' Association?
In 2009, PulteGroup and other homebuilders lobbied for new legislation that would allow an extension of the net operating loss (NOL) carry back. In November 2009, their lobbying efforts paid off.
Tucked within the Worker, Homeownership and Business Assistance Act of 2009 (WHBA) was a tax carry-back provision. It allows homebuilders to count the losses of 2008 and 2009 against taxes paid up to 5 years ago—during their peak profit years. In short, the act allowed for a big tax refund pay-off for big builders, particularly the biggest of them all, PulteGroup.
During PulteGroup’s fourth quarter 2009 earnings call, the company announced that it expected a tax refund of approximately $955 million, $917 million of which would come from the tax loss carry back . Several months later, PulteGroup received $880 million in tax refunds for 2009 thanks to the net operating loss (NOL) tax carry back provision of the Act.
The WHBA Act was intended by Congress and President Obama as a job creation measure. The fact sheet on the legislation stated, "Today President Obama signed legislation to help create jobs by providing tax cuts for homebuyers and businesses, while providing much-needed support for workers who are still struggling to find jobs."
Later in 2009, an investment analyst from Barclays Capital asked Pulte's CEO what the company's priorities were for allocating their cash, which after the tax refund would be close to $3 billion in cash. In his response, CFO Roger Cregg mentioned land, land acquisition, and debt restructuring - but not job creation.
On November 3, 2010, Putle's CEO announced "approximately $7 million for employee severance and related cost, associated with organizational changes and operations realignment implemented during the quarter." Just recently, Pulte laid off another 350 workers at a plant in Phoenix, AZ.
Pulte Homes has not only been laying off workers but also abusing them in a way that would make Bull Connor proud.
Workers demanding justice from Pulte, Del Webb, and Divosta construction subcontractors were shocked when the well-know homebuilder began directing its water truck drivers to repeatedly douse workers with high-pressure water. Workers, with dripping clothes and soggy shoes, maintained their calm and continued their peaceful demonstration even as they counted up to 16 separate water assaults in one day. Israel Hernandez, a painter who worked on hundreds of Pulte and Del Webb homes in the Phoenix area, paused while wiping water from the video camera lens, remarking, "This wasn't what we meant when we ask for drinking water on the job site."
Video of Workers Getting Doused by Water Trucks
Besides its history of trying to re-enact the wrong side of the civil rights struggle, Pulte has also gained a reputation for ripping off homeowners. A recent survey of Pulte's customers found that 63 percent report having defects with their homes. In fact, if you own a Pulte Home or are looking to purchase one, you may want to visit PoorlyBuiltByPulte.net to see what other homeowners are aying about their experience.
You can take part in fighting back against companies like Pulte and the Mortgage Bankers' Associatin which has ripped off millions of American homeowners. Sign onto the SMWIA's act.ly petition with your Twitter account asking Pulte what it did with its $900 million bailout.