To further stimulate private investment in the LIHTC program and spur increased construction of housing targeted to low- and moderate-income families, Lawson urged Congress to adopt legislation that would:

• Index LIHTC rents to a reasonable inflation factor, such as the Consumer Price Index, in order to create more consistency for owners and tenants.
• Allow State Housing Finance Agencies to convert utility allowances into a percentage of maximum gross rent at the time of underwriting. "This would allow an owner to better gauge their cash flow over the life of their project, which would improve their ability to cover unanticipated spikes in operating costs and attract private equity into the project," he said. 
• Repeal the Internal Revenue Code Section 42(d) 10-year rule requirement on existing properties, which inhibits investments in these properties. 
• Establish a level-playing field for allocations of LIHTC to tax-exempt and taxpaying sponsors.
•  Exempt low-income housing tax credits from the Alternative Minimum Tax and study the impact of eliminating the individual AMT on the LIHTC. 
• Allow separate ownership of housing credit units and market-rate units in mixed-income properties.

In related developments, NAHB was joined by 13 industry organizations in sending a letter to the House Ways and Means Committee and the Financial Services Committee highlighting the need for lawmakers to implement an appropriate legislative solution to the LIHTC rents issue. Also, NAHB on May 23 issued a press release announcing a new study detailing how rising operating costs are putting in financial jeopardy hundreds of affordable apartment communities across the country that were built using LIHTCs. For more information on the NAHB testimony, see NAHB's press release or contact Greg Brown at 800-368-5242, x8421.

• NAHB Focuses on Worker Amendments to Immigration Bill

The Senate last week debated a flurry of amendments to an immigration bill that NAHB believes is deeply flawed and in need of major changes. Of note to residential builders were two amendments dealing with the number of eligible workers that would be allowed in the country under the future legal immigration program proposed by the bill, and the length of time they would be allowed to remain in the country. NAHB opposed an amendment offered by Sen. Jeff Bingaman (D-N.M.) that would slash the number of workers eligible to participate in the program from 400,000 to 200,000 annually. The proposal passed by a vote of 74-24.

Because of its importance to the housing community, NAHB designated a second amendment by Sen. Byron Dorgan (D-N.D.) as a “key vote.” The Dorgan amendment would eliminate the future flow program for guest workers in its entirety at the end of five years, leaving no legal program in place for needed workers to enter the United States. In response, NAHB said that “a workable future flow immigrant program is essential to comprehensive immigration reform because without it, it is likely to lead to a situation that will encourage more illegal immigration in the future.” The Dorgan amendment was narrowly defeated by a 48 to 49 vote.

While NAHB supports legislation that would achieve comprehensive immigration reform, the association remains opposed to the Senate bill in its current form because it would hurt America’s small businesses. The Senate  is scheduled to continue debate on the legislation during the week of June 4, when lawmakers are expected to focus on areas of key concern to NAHB, including issues dealing with employment verification provisions, whether contractors will be responsible for the legal status of their subcontractors’ employees and inadequate safe harbor protections. To read the legislation, click here and enter S. 1348 in the box at the center of the page. For more information, e-mail Jenna Hamilton or call her at 800-368-5242 x8470.

• Fannie Mae/Freddie Mac Reform Bill Passes in the House

The U.S. House of Representatives on May 22 passed NAHB-supported legislation that would establish a strong regulatory framework for the housing government-sponsored enterprises (GSEs) — Fannie Mae, Freddie Mac and the Federal Home Loan Banks. Because of the importance of this issue to the housing community, NAHB designated passage of H.R. 1427, the Federal Housing Finance Reform Act, as a “key vote” and sent a letter to every representative urging them to support the bill. The measure was approved by a solid bipartisan margin of 313 to 104.

In another key vote for NAHB, lawmakers by a margin of 383 to 36 overwhelmingly approved a pro-housing amendment clarifying that the new regulatory entity created by the legislation must base its evaluation of the risk of Fannie Mae’s and Freddie Mac’s portfolio holdings solely on the mission of those institutions and safety and soundness considerations, and not on broader concerns, such as systemic risk. This amendment would prevent the new regulator from making an overly broad interpretation of risk that might unnecessarily constrain portfolio activities of Fannie Mae and Freddie Mac, disrupting the mortgage markets and impeding the enterprises in their pursuit of their housing mission.

In other votes designated by NAHB as “key,” three anti-housing amendments that would have restricted GSE portfolios, eliminated the affordable housing fund and prevented conforming loan limits from being raised in high-cost areas were defeated handily or withdrawn. Attention now turns to the Senate, where Senate Banking Committee Chairman Chris Dodd (D-Conn.) has said that he would like to "address this important issue in a bipartisan, timely and thoughtful way." For more information, contact Scott Meyer at 800-368-5242, x8144.

• Fire resistance ratings: A proposal was struck down that would have doubled the minimum fire resistance ratings of corridors in multifamily buildings without any substantiation that the current requirements are inadequate or pose a safety threat to occupants.
• Prohibitive multifamily renovation requirements: Two proposals were rejected that would have required all existing multifamily dwelling units built before 1991 to be made compliant with the same Fair Housing accessibility requirements that multifamily units built after 1991 must currently comply with under federal law. The new requirements would have been triggered by renovations, restorations, alterations and other actions. NAHB argued that such onerous requirements would be impractical in many cases, and discourage — or even prohibit — the updating of many buildings, including those that would make improvements to occupant safety.

The most controversial item on the agenda, however, was the proposal that residential fire sprinklers be made a mandatory part of the residential building code. In about half the states, such systems are already mandatory for multifamily residential construction. NAHB’s members and staff explained the association’s concerns about such mandates to building code officials so that they could understand the many questions and potential problems surrounding such issues. For more information on Codes issues, e-mail Jeff Inks. [return to top]

• Spring Committee Meetings – June 5-9

Join your colleagues in Washington, D.C. when members gather to discuss current issues and set policy positions for the association. All committee meetings are open to all members. View the complete multifamily schedule here.

• $1.2 Million Still Available for P.R. Grants in Slow For-Sale Markets

With $1.2 million remaining, NAHB is encouraging local Home Builders Associations (HBAs) that have not yet applied for its “Buy Now” Advertising Assistance Program to take advantage of this opportunity. The NAHB “Buy Now” Advertising Assistance Program provides grants to qualifying HBAs in three categories:

• HBAs conducting ad campaigns in the top 10 media markets.
• HBAs with more than 250 members operating in areas outside of the top 10 major media markets.
•  HBAs with 250 or fewer members.

To qualify for grants, the ads must deliver a “buy now” message, be placed in 2007 and conducted in markets that have experienced a major decline in home sales and housing production. To learn more about the program, eligibility considerations and requirements, click here, or call Niki Clark at 800-368-5242 x8061.

• HUD’s policy on setting income limits for low-income housing residents is endangering the financial viability of affordable tax-credit housing communities.
• NAHB Multifamily Housing Credit Group chair testifies before Congressional subcommittee on the need for reforms to the Low-Income Housing Tax Credit program.
• Developer confidence in the rental market is buoyed by strong demand – information from the Multifamily Rental Market Index.
• Developer confidence in the condo market slips again – information from the Multifamily Condo Market Index.

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“Clearing the Hurdles to Affordable Housing” is the theme for this year’s Issues Forum, to be held in Seattle in conjunction with NAHB’s Fall Board of Directors meeting. Expert speakers will address NIMBY attitudes and other concerns that can be a barrier to affordable housing. Learn strategies for clearing these hurdles and moving your projects forward.
 
Members of NAHB's Housing Credit Group receive discounted registration to this event. For more information about HCG membership, please visit http://www.nahb.org/hcg and join today! To register online for the Issues Forum, visit this page.

Sunbelt Builder’s Show, Featuring Multifamily Speakers — Sept. 27-29

The 2007 Sunbelt Builders Show™ will be held September 27–29 at the Gaylord Texan Resort & Convention Center in Grapevine, Texas/DFW. This year’s Show features two events designed specifically for the multifamily development community.  Start with an entertaining and valuable session on winning designs by Pillars Award-winners Stephanie Moore of Moore Design Group and Ron Harwick of James, Harwick + Partners Inc. These Dallas-based leaders in the multifamily industry will be sharing their wealth of design knowledge and experience. Don’t miss it on Thursday, September 27.

Then join colleagues for Sunbelt’s “Higher Densities, Higher Profits” Luncheon. Learn about innovative development solutions and marketing techniques from an expert, Spencer Stuart Jr. of Pillars Award-winning Legacy Partners Residential Development Inc. And don’t forget to visit NAHB’s Multifamily Council booth on the trade show floor!  To register for the Show and for more information, please go to www.SunbeltBuilders.Show.com.
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