Opposition Against Tax Overhaul Mounting on Capitol Hill
As the Administration weighs a proposal by its advisory tax reform panel to abolish mortgage interest and state and local tax deductions and replace them with a much more limited 15% housing credit, members of Congress from both sides of the political aisle are starting to voice strong opposition to the plan, and concerned citizens are being encouraged to follow suit.

“While many investment opportunities exist today,” the correspondence states, “perhaps none provides more in return for individuals, families and communities than homeownership. That is why we urge you to preserve the deductions for mortgage and home equity interest, and state and local taxes, which underpin homeownership and the social and economic benefits it generates.”

Ways and Means Committee members who signed the letter opposing removal of the housing tax incentives were: Reps. Jerry Weller (R-Ill.), Kevin Brady (R-Texas), Eric Cantor (R-Va.), Mark Foley (R-Fla.), Wally Herger (R-Calif.), Nancy Johnson (R-Conn.), Ron Lewis (R-Ky.) and Clay Shaw (R-Fla.).

In October, Rep. Charles Rangel (D-N.Y.), the ranking member of the Ways and Means Committee, wrote the President  warning that buyers may decide to defer home purchases if they believe that the “benefit of the deduction may be dramatically reduced by being converted to a 15% tax credit.”

In addition, Reps. Katherine Harris (R-Fla.) and Robert Wexler (D-Fla.) sent a joint letter to the Administration opposing the proposal to restrict tax deductions for mortgage interest, and 25 members of the New York State congressional delegation, in a written communique to Treasury Secretary John Snow, voiced their opposition to the elimination of the deduction for state and local taxes and the elimination of the mortgage interest deduction.

The White House and Treasury Department have yet to comment on the proposal. While President Bush is under no obligation to follow the recommendations of his tax panel, which is also calling for doing away with deductions for home equity loans and second homes, he is widely expected to embrace the concept of tax reform during his State of the Union address in January.

When the panel’s proposal was unveiled on Nov. 1, NAHB Executive Vice President and CEO Jerry Howard voiced strong opposition, warning that it amounted to the “biggest tax hike for home owners ever considered.”

“Equally disturbing,” he said, the plan “would reduce home values, eliminate one of the few tools (the Low Income Housing Tax Credit) available to construct or renovate affordable rental housing and send a chill through the housing market, which has been leading the economic expansion for the past three years.”

As previously reported, NAHB has conducted detailed scenarios analyzing how typical home-owning families in Chicago; San Jose, Calif; and Binghamton, N.Y. would face tax hikes under the proposal.

In addition, results from a national survey commissioned by NAHB and conducted earlier this month by Public Opinion Strategies found overwhelming voter disapproval of replacing tax incentives that promote homeownership with incentives to invest in the stock market. (Click here for survey results and examples showing how home owners would fare under the tax plan.)

Contact Your Members of Congress

Voters troubled over how these recommendations would affect their bottom line and home values are encouraged to contact their members of Congress and the Administration before policy makers begin to craft their own legislative proposals.

It is particularly important to urge members of the House Ways and Means Committee and Senate Finance Committee to oppose the advisory group’s tax plan.

To voice your opinion to Capitol Hill lawmakers, call the U.S. Capitol Switchboard at 202-224-3121 and then ask for your member of Congress.

Or send a letter to President Bush and your federal lawmakers asking them to reject the panel’s recommendations by logging on to www.capitolconnect.com/nahb.

For more information, go to www.nahb.org/taxreform; or e-mail NAHB tax counsel Jim Tobin, or call him at 800-368-5242 x8258.

NAHB Files Amicus Brief To Clarify 'Navigable Waters'
Citing the need to halt excessive regulation and keep housing more affordable, the National Association of Home Builders (NAHB) has filed a brief of amicus curiae on behalf of the petitioners in two wetlands cases before the U.S. Supreme Court: John A. Rapanos, et al. v. the United States and June Carabell, et al. v. the United States Army Corps of Engineers.

The issue in both cases concerns whether and when a non-navigable and even man-made feature, such as a ditch or storm sewer system, can be considered a “navigable water” under the Clean Water Act and thus be subject to federal permitting requirements.

“Complying with those requirements can add thousands of dollars to the cost of a new home without offering the environmental benefits the Act was designed to promote,” said NAHB President Dave Wilson, a custom home builder from Ketchum, Idaho. “It’s a waste of taxpayer resources to treat a ditch for rainwater with the same scrutiny as we would the Snake River.”

When it created the Clean Water Act in 1987, Congress defined ditches as point sources, that is, channelized features which transport water and sediment from, for example, a subdivision and into a storm drain.  Under the Act, a permit is required to control sediments and other pollutants that leave a ditch and flow into navigable water. Requiring a permit before the water and sediment even get into a ditch, which the builder himself dug to construct a housing project, is much more onerous than the intent of the original legislation and doesn’t offer a corresponding benefit to improve water quality.

Filed on Dec. 2, NAHB’s brief focuses on three main arguments:

• The drainage ditches at the Rapanos and Carabell sites are not “navigable waters,” but are “point sources.”  Furthermore, the ditches at issue in Carabell drain into a municipal storm sewer system already permitted under the Clean Water Act to control pollutant discharges.
  
  
• The U.S. Supreme Court already has held that wetlands next to open water are subject to the Clean Water Act.  The Court of Appeals has now stretched the Clean Water Act’s jurisdiction to reach wetlands immediately adjacent to point sources and thus overreaches the intent of Congress.
  
  
• In prior cases, the U.S. Supreme Court also has established that the Clean Water Act covers non-navigable features with a “significant nexus” to navigable water. Whether the nexus between a non-navigable feature and truly navigable water is “significant” will vary from case to case.  However, to meet its burden of proving a significant nexus in court, the federal government must, at a minimum, show that upstream activities will have a negative impact in downstream navigable waters. In Rapanos and Carabell, the federal government made no such showing of negative effect. Indeed, there is no indication in either of these cases that common dirt — the pollutant at issue — even left the construction sites.

“NAHB has developed comprehensive familiarity with the [Clean Water Act] permitting requirements, provides compliance advice to its members, and, unfortunately, has witnessed numerous situations where federal regulators have exercised their authority beyond the Act’s limits,” the brief said.

“There are an estimated 3.9 million miles of roads in the Nation, and regulations require that federally funded primary roads must be ‘designed … and maintained to have adequate drainage, cross drains, and ditch relief drains’,” the brief argued. Requiring permits assuming that all these ditches are navigable and subject to regulation and permitting makes no sense and would be prohibitively expensive to administer, NAHB said. “Congress could not have intended such an absurd result.” [return to top]

National Green Building Conference Set for March
A thousand builders, remodelers, developers, architects, engineers and other building professionals will travel to Albuquerque, N.M., for the National Green Building Conference, March 12-14.

Sponsored by NAHB, the conference offers a look at new products and educational opportunities for  NAHB members working on "Greening the American Dream" by building homes with a focus on preserving the environment.

“This is a great opportunity for all attendees,” said NAHB Green Building Subcommittee chair Ray Tonjes, a custom home builder in Austin , Texas . “We will offer exhibitors, presenters and sponsors an outstanding opportunity to improve their knowledge, increase their contacts and network.”

A brand new educational seminar from the NAHB University of Housing makes its debut at this year’s conference. The green building module for the Certified Graduate Builder designation will include two days of in-depth discussions of strategies for incorporating green-building principles into homes without driving up the cost of construction and to provide buyers with lower energy and maintenance costs, , excellent indoor air quality and long term value.

Other seminars include a detailed look at NAHB’s Model Green Home Building Guidelines, “Green by Design,” led by green building pioneer and architect Peter Pfeiffer, FAIA; a detailed look at green residential remodeling, and “Taking Building Science from the Conference to the Construction Site,” ensuring that attendees will be able to easily turn their learning into action for their businesses.

Attendees can also board the bus to tour an off-the-grid green straw bale and adobe home from designer and builder Ted Owens, co-founder of Syncronos Design Inc., a 17-year-old company focusing on energy-and-resource-efficient building design that emphasizes superb aesthetics as a major green-building element.

NAHB has also partnered with Green Builder to present Vision House 06, a green building demonstration house that shows how sustainability can work with beautiful design and stay within budgetary constraints. The home is being built by Norm Schreifels of Sun Mountain Construction.

Another highlight: Attendees will honor the winners of the 2005 Green Building Awards to individuals, organizations and companies that have made significant contributions to the principles of residential green building.

Hotel rooms are available at the Hyatt Regency Albuquerque at a special conference rate. Conference registration information ($425 for NAHB members, $525 for non-members) is available by contacting registrar@nahb.org.

Sponsorship opportunities are available by e-mailing Julie L. Mines at NAHB; exhibitors can find out about remaining booth space by e-mailing Christopher Hood at NAHB. [return to top]

IBS 2006…Spotlight on NAHB National Commercial Builders Council Education and Events
The 2006 International Builder’s Show (IBS) has much to offer attendees, and as a member or prospective member of the National Commercial Builders Council, you’ve got access to that much more. Educational opportunities are plentiful, so be sure to attend as many of the following NCBC-sponsored programs as you can.

Wednesday, Jan. 11

• Light Commercial — Ideas from the Experts
  8:30-10:00 a.m.  

Light commercial construction is not all that different from residential. Beginning with an overview of light commercial, attendees will learn how they can break into this growing segment of the building industry.

MODERATOR: Robert Ross, Robert W. Ross Construction, Kalispell , Mont.

SPEAKERS:Fred Dallenbach, Dallenbach Builders, Inc., Louisville, Ky.; Ed Feiler, Metro Developers, Inc., Savannah, Ga.; and Elton Parsons, Elton Parsons Enterprises, Andover, Kan.

Thursday, Jan. 12

• Trends in Mini Storage
  4:00-5:00 p.m.  

This course offers builders tips for building a profitable diversification business that can provide a continuous income stream. Attendees will learn what to look for in a location, current building trends, and the amenities and services that attract and retain customers.

MODERATOR: Carl Harris, The Carl Harris Co., Inc., Wichita , Kan.

SPEAKERS: Carl Harris, The Carl Harris Co., Inc., Wichita, Kan.; Buck Burdett, B.W. Burdett Builder, Marble Falls, Texas; and Robert Ross, Robert W. Ross Construction, Kalispell, Mont.

Friday, Jan.13

• Office Buildings — the New Condos
  4:00-5:00 p.m.  

A new condominium trend has arrived — the office condo. Building to this market requires location and marketing savvy, but the payoff is great. Attendees will learn how to get in on the ground floor in the latest building and investment trends.

MODERATOR: Fred Dallenbach, Dallenbach Builders, Louisville , Ky.

SPEAKERS: David Bossart, Bossart Builders, Flanders , N.J. ; Dean Morehouse, MTM Builder/Developer, Inc., Upper Marlboro, Md.

Saturday, Jan. 14

• Mixed Use—the Commercial Side
  11:00 a.m.-12:00 p.m.  

Mixed use developments include both light commercial and residential components. Light commercial projects might include retail space, theaters, athletic facilities and restaurants. Attendees will learn the new trends, the division of roles and how residential builders can take advantage of both sides of this growing trend.

MODERATOR: Neal Payton, Torti Gallas and Partners, Silver Spring , Md.

SPEAKER: Michael Mota, Portland Cement Association, Skokie , Ill. ; Joe Weis, Weis Builders, Minneapolis

Special Events

Wednesday, Jan. 11

• NCBC Reception (Convention Center, West 207C, Level II)*
  5:30-6:30 p.m.  

Enjoy happy hour at the National Commercial Builders Council Reception. This networking event will recognize current members and give perspective members an inside look at the council. Leave your business card and be entered to win a door prize.

* Room assignments are subject to change. Please consult the IBS Program Guide onsite for final room assignments.

• NAHB National Commercial Builders Council 2006 Program

The schedule that follows itemizes NCBC meetings and events. Unless otherwise indicated, all meetings, beginning on Tuesday, are open to all members and prospective members. Be sure to attend NCBC’s educational sessions throughout the week, its subcommittee meetings on Tuesday, and the Trustees Planning Meeting and NCBC Reception on Wednesday. The Trustees Meeting is open to all members and prospective members of NCBC. Listen to NAHB experts as they focus on your commercial issues.

• National Commercial Builders Council Headquarters

Tuesday-Friday
7:00 a.m.-5:00 p.m.

Saturday
7:00 a.m.-12:00 p.m.

Sunday, Jan. 8

• Joint Council Chairs
  10:00 a.m.-12:00 p.m.

Tuesday, Jan. 10

• NCBC Issues Subcommittee
  11:30 a.m.-12:30 p.m.
  
  
• NCBC Membership Subcommittee
  11:30 a.m.-12:30 p.m.
  
  
• NCBC Communications Subcommittee
  12:30-1:30 p.m.
  
  
• NAHB President’s Gala (invitation only)
  6:00-11:00 p.m.  

Wednesday, Jan. 11

• NCBC Trustees Planning Meeting
  8:00-11:00 a.m.
  
  
• Light Commercial: Ideas from the Experts
  8:30-10:00 a.m.
   
• NAHB Opening Ceremonies
  10:30 a.m.-12:00 p.m.
  
  
• Area Caucuses
  1:00-5:30 p.m.
  
  
• NCBC Reception
  5:30-6:30 p.m.
  
  
• Gold Key
  7:00-9:00 p.m.

Thursday, Jan. 12

• NAHB Board of Directors Meeting
  1:00-5:00 p.m.
  
  
• Mini Storage
  4:00-5:00 p.m.
  
  
• NAHB Spike Party & Directors Reception
  7:00-9:00 p.m.
  
  
• Capitol Club
  7:00-11:00 p.m. 

Friday, Jan. 13

• NAHB Board of Directors Meeting
  8:00 a.m.-12:00 p.m.
  
  
• NAHB Installation Reception
  12:00-2:00 p.m.
   
• Office Buildings
  4:00-5:00 p.m.

Saturday, Jan. 14, 2006

• Mixed Use
  11:00 a.m.-12:00 p.m.

Italics — NAHB meetings
Bold — Education Programs [return to top]

Portland Cement Files Comments on Competition in Wholesale and Retail Electricity Markets
The Portland Cement Association has filed comments with the Electric Energy Market Competition Task Force, an interagency task force was created by the Energy Policy Act of 2005 to study and submit a report to Congress by August 2006 on the status of competition in wholesale and retail electricity markets.

Many industrial energy consumers, including PCA members, were supporters of restructuring electricity markets, which were supposed to bring more efficient, lower cost power to electricity consumers. The experience of many industrial energy consumers, however, indicate that electricity prices in areas of the country that have been restructured are higher than in areas that have not been restructured.

The following organizations joined PCA in filing comments to the Task Force: American Forest and Paper Association, American Iron and Steel Institute, California Large Energy Consumers Association, Coalition of Midwest Transmission Customers, National Lime Association, and the PJM Industrial Customer Coalition (representing industrial energy consumers in the Mid-Atlantic region).

Student Design Competition Encourages Concrete Thinking
Registration is now open for “Concrete Thinking for a Sustainable World,” a student design competition sponsored by The Portland Cement Association. The contest challenges students to investigate innovative applications of cement-based materials to achieve sustainable design objectives. Designs should illustrate enhanced building performance from the use of cement-based materials and can be an element of the structure or an entire building of modest size. The contest is administered by the Association of Collegiate Schools of Architecture (ACSA) and is open to all ASCA member schools, domestic and international.

The top three designs will share $10,000 in awards and receive a complete package of pcaStructurePoint software. The registration deadline is Feb. 8, with submissions due May 3. The results will be announced in May.

Click here to download application information and visit the ACSA Web site for an online submission form.

New 2005 AISC Seismic Provisions Now Available for Free Download
The new American Institute of Steel Construction, Inc. (AISC) seismic standard, Seismic Provisions for Structural Steel Buildings (ANSI/AISC 341-05) including Supplement No. 1 (ANSI/AISC 341s1-05), is now available for as a free download on the AISC Web site.

This specification includes updated seismic design provisions and two new systems, buckling-restrained braced frames and special plate shear walls. It also incorporates both the allowable stress design (ASD) and load and resistance factor design (LRFD) methods. For a more complete description of the new provisions, see the Preface to the Provisions. This new specification supersedes the 2002 Seismic Provisions for Structural Steel Buildings and all previous versions of this specification. The new specification has been approved by the AISC Committee on Specifications and is ANSI-accredited.

Please visit www.aisc.org/2005seismic to download the new Specifation and Commentary. [return to top]

New GM Program for 2006
With DOUBLE the revenue for participating HBAs!

GM continues to show their commitment to NAHB and our state and local associations by doubling the royalty for participating HBAs.

Beginning in January, all members and Executive Officers (effective Nov. 1, 2005) will receive a direct mail piece from GM.  Please remember to tell your members not to discard this mailing — it will contain the $500 GM Discount Card. 

Members who misplace or don’t receive a card may go to www.nahb.org/MA where a link will be available for them to download their own cards.  The NAHB Membership list is refreshed with GM every 30 days.

Also for new members in 2006, you’ll be able to go to the “Resources and Services” section of the EOC Web page or the Member Advantage Toolkit and find an official authorization letter provided by GM.  Print it out on your letterhead for your new members to use to receive the discount when they take it to an authorized GM dealer.

Regardless of any promotional offer or purchase incentives, members can make their very best deal and then use the GM $500 Discount Card for NAHB members.

If your HBA is already signed up for the NAHB Revenue Sharing Program, you don’t need to sign up again.  Your HBA will be included in the double royalty payment program.

Complete details for the 2006 GM program will be posted on www.nahb.org/MA as soon as they are finalized. The program will be effective Jan. 4.  And remember, your local and state builder association staff also qualifies.  [return to top]