Under current law, carried interest is subject to a tax rate of 15% because it is classified as a capital gain. If the proposed law were to be enacted, carried interest will be classified as ordinary income that is taxed at 35%.

NAHB is working closely with both the House Ways & Means Committee and the Senate Finance Committee — as well as other real estate organizations — to express they industry’s opposition to this proposed legislation.

As members of the NCBC, you are encouraged to get directly engaged in this issue by letting your member of Congress — especially those who serve on the House Ways & Means Committee — know about our opposition. 

Under present law, capital gain income generated by carried interest in a partnership is subject to a tax rate of 15%. If the proposed law were to be enacted, such carried interests would be characterized as ordinary income subject to tax rates up to 35%.

Light commercial builders are being urged to contact their legislators and the members of the House Ways and Means Committee, which is considering this bill. The best ways to educate legislators on this issue, in order of effectiveness, are:

• Take advantage of NAHB’s national grassroots action program, BuilderLink. A copy of the enclosed sample letter has already been posted at http://www.capitolconnect.com/builderlink/ so you can easily e-mail copies to your Congressional representatives.
   
• Personalize the letter by inserting a short description of your business, particularly the volume of commercial property you develop, the areas in which you develop and how such legislation would impact you.
   
• Print the letter on your business stationery and mail immediately to your own representative and to any member of the House Ways & Means Committee who represents an area where your firm is currently doing business.
   
• If you have a personal relationship with any Committee members, please call them to express your strong opposition to this legislation.
  
  
• Please ask all your local officers, directors and key associates to send letters as well.
  
  
• Keep NAHB informed of the contacts you make either by e-mailing a copy of the letters to commercialbuilders@nahb.com or by sending a list of the Members whom you have contacted by phone. (Please note that if you use the Capitol Connect Web site to e-mail your representatives, NAHB will automatically be notified.)

This issue will be covered in more depth in the fall issue of Commercial Builder. In the meantime, if you have any questions or would like more details on this urgent issue, e-mail NAHB’s Greg Brown, or call him at 800-368-5242 x8421.

Friday, September 7
7:30 a.m. to 8:30 a.m. – Communications Committee – Sheraton, Fremont Room
8:30 a.m. to 9:30 a.m. – Issues Committee – Sheraton, Fremont Room
9:30 a.m. to 10:30 a.m. – Membership Committee – Sheraton, Fremont Room
11:30 a.m. to 2:30 a.m. – NCBC Board of Trustees – Sheraton, Juniper Room

Saturday, September 8
8:00 a.m. to 10:00 a.m. – NAHB Area Caucuses
2:00 p.m. to 5:00 p.m. – NAHB Board of Directors [return to top]

The decision casts doubt on the legality of similar laws passed by some 100 municipalities attempting to restrict illegal immigration in response to failed federal reform efforts. U.S. Senators voted 46 to 53 against a procedural motion on June 28 to move toward a final vote on the immigration bill (S.1639).

U.S. District Judge James Munley ruled that Hazleton's "Illegal Immigration Relief Act" was unlawful because it tried to regulate the country's immigration policy and violated procedural due process protections under the U.S. Constitution.

“This ruling shows the need for federal lawmakers to work towards a comprehensive solution to address immigration concerns with one federal law, instead of hundreds of different state and local requirements that will create a tangle of regulatory confusion for employers,” said Jerry Howard, executive vice president and CEO of NAHB.

The Hazleton ordinance, the first passed in the country, thrust the mayor and his town onto the national stage. Mayor Louis Barletta began searching for ways to reign in illegal immigration last year after two illegal immigrants were charged in a fatal shooting.  Barletta said a petition on the Internet drafted by an anti-illegal immigration activist in San Bernardino, Calif., provided a template for his ordinance.

Barletta said that he will appeal. Several legal observers predicted that the issue would be decided by the U.S. Supreme Court.

Since last year, politicians from Massachusetts to California have been drawing up laws and ordinances to limit illegal immigrants' access to jobs, housing and government services.
Arizona's Democratic Gov. Janet Napolitano signed a law early this month requiring all employers to ensure that job candidates are legal residents. The Board of Supervisors in Prince William County (Northern Virginia) voted unanimously to permit its police force to ask residents their status as immigrants. If they are found to be in the country illegally, then county police can promptly arrest them and send them on to the local Immigration and Customs Enforcement (ICE) unit to initiate deportation proceedings.

The challenge to Hazleton's ordinance was led by the American Civil Liberties Union and other civil-rights and Latino advocacy groups.

For more information, e-mail Carlos Gutierrez at NAHB, or call him at 800-368-5242 x8242. [return to top]

The idea is a decrease in dues for the "employee" membership category in exchange for an increase in official member participation — a structural shift that could yield big benefits for would-be members who currently participate in local-level events without being counted in industry totals.

This means if your employer is a Builder or Associate member, and your local HBA recognizes the Affiliate category, you are now eligible for full membership via the Affiliate category for a significantly reduced fee (the national portion of the dues investment is only $5). Why bother? Because it’s the full memberships that count when it comes to taking care of our industry.

By reducing the already low Affiliate member dues structure from $25 to $5 at the national level and breaking down the financial barrier to membership, the NAHB Membership Committee is raising priorities in other areas:

1. The dues decrease is designed to increase official participation and therefore our ability to protect and serve the industry.
   
   
2. The dues decrease will amplify valuable member involvement at all levels of the federation.

"Numbers are just as important in managing the business of our association as they are in the business of building homes,” said 2006 NAHB Membership Committee Chair Larry Stege, who led the 2006 Committee in an exploration of possibilities regarding this membership category last year culminating in the change.

“The only difference is that our bottom line is measured by the vitality brought to the scene by our members and by the strength we have in our legislature’s office…in order to lead this industry into the future, we have to be able to officially count and welcome in the thousands of Affiliate members who are involved in our Councils,” Stege added.  

As an Affiliate member, individuals may serve on NAHB committees, task forces, working groups and more, and are included in the official membership number of the federation. Council members who are eligible (employed by a Builder or Associate member) are encouraged to participate by seeking Affiliate membership. If your local HBA does not offer the category, contact your Executive Officer to request availability. 

More details are available online or by contacting Emily Fitzsimmons at NAHB. [return to top]

The easy-to-understand and use resource:

• Provides an overview of jobsite safety and why a safety program is critical to a company’s overall success.
  
  
• Shows builders how to be in compliance with the Occupational Safety & Health Act, as well as how to respond to an OSHA inspection.
  
  
• Explains the components of a safety program, including a total-loss program.
  
  
• Provides comprehensive safe work practices and OSHA requirements for residential contractors.
  
  
• Discusses the need for ongoing safety training and provides an outline for new-hire orientation.

The companion CD presents a model safety program listing safe work practices for the most common residential construction operations. It features sample forms and checklists that can be easily customized to meet builders’ specific needs.

From fall protection to fire prevention, the “Home Builders’ Safety Program” provides builders with the knowledge to create a safety program that saves lives, enhances the company’s reputation and protects the bottom line.

To purchase the “Home Builders’ Safety Program” online, click here, or call 800-223-2665. [return to top]