Earlier this year, the House passed pay-as-you-go, or “pay-go” rules that require offsets for all tax cuts to make them revenue neutral. One of the primary revenue offsets for the one-year AMT patch approved by the House last month is changing the taxation of carried interest from the current 15% capital gains rate to ordinary income tax rates that can run as high as 35%. NAHB opposed the House AMT bill because the move to tax "carried interest" to pay for the measure would impose a multi-billion dollar tax increase on real estate at a time when the industry is already experiencing a downswing.

Making the issue more complicated, there are two schools of thought in Congress. On the one hand, many lawmakers in the Senate strongly believe that a “clean” AMT bill should be approved without any revenue offsets because AMT revenue was never intended to be collected at all. This philosophy is at odds with that of House Democratic leaders, who insist that pay-as-you-go budget rules are essential to enforce fiscal discipline and not add further to the national debt. The Senate bill now goes to the House, and the Ways and Means Committee. That committee's Chairman, Charlie Rangel (D-N.Y.), who has insisted that Congress must pass AMT relief without adding to the national debt, has now indicated a willingness to compromise.

NAHB continues to urge Congress to move quickly to pass a fix to the AMT and to drop a provision that raise taxes on the carried interest of private equity managers, venture capitalists and real estate investors. For more information, e-mail Greg Brown or call him at 800-368-5242 x8421.

• NAHB Supports Administration Plan to Aid Homeowners with SubPrime Loans

The Bush administration’s plan to freeze interest rates for five years for certain subprime mortgages for owner-occupied units will help stabilize the housing market, says NAHB president Brian Catalde, a builder from El Segundo, Calif. Such a plan will help keep the inventory of empty residences from growing by keeping people in their homes. It will also keep many owner-occupied condos from foreclosure , which will help the rental market by keeping those units from becoming part of the “shadow” rental market where they would compete with more traditional rentals.

Catalde also urged additional Federal action, including:  Changing FHA regulations to allow the agency to insure more home loans and help subprime borrowers; strengthening oversight of Fannie Mae and Freddie Mac, and allowing them to purchase larger mortgages in high-cost markets; and enacting legislation to eliminate income taxes on mortgage debt that has been forgiven.

For more information, read NAHB’s press release.

•  FHA Multifamily Mortgage Insurance Premiums – Rising, or Not?

Last October, HUD announced a proposed increase in the mortgage insurance premiums (MIP) for several key FHA multifamily mortgage insurance programs from 45 basis points to 61 basis points. Tax credit projects were exempt from the increase. The proposed increases were to go into effect on December 1, 2007. However, NAHB learned last week that an e-mail was sent from HUD headquarters to all field offices instructing them not to implement the increased premiums for the Section 221(d)(4); 207/223(f); and 223(a)(7) programs at this time. HUD has not yet published a notice rescinding the proposed increase.

NAHB, along with many other industry stakeholders and members of Congress, strongly opposed an MIP increase, and submitted comment letters to HUD detailing why an increase was unjustified. NAHB discussed the issue with HUD and the Office of Management and Budget (OMB) and lobbied members of Congress to oppose the proposed increase.

NAHB is trying to determine HUD’s intentions and will let members know as soon as we hear something definite. For further information, please e-mail questions to Claudia Kedda.

• REAC Scores Now Available on HUD’s Web Site

On November 29th, HUD posted the most recent Real Estate Assessment Center (REAC) physical inspection scores for privately owned Section 8 project-based properties on its web site.  The postings will be updated on a regular basis.  The information can be accessed by viewing this page.

• Final Rule on Mark-to-Market Rule Changes Published

Late last month, HUD issued a final regulation implementing changes to the Mark-to-Market program. That final rule implements changes initially proposed on March 14, 2006. Several items that were adopted in the final rule had NAHB support:

• Exempting transfer fees where the transfer of physical assets or substitution of mortgagors occurs contemporaneously with the restructuring of a mortgage pursuant to a restructuring plan, and eliminating an application or commitment fee in connection with the insurance of a mortgage used to facilitate the restructuring plan.
• Permitting the addition of “significant features” such as air conditioning, elevators or community spaces that are not required for rehab, but bring the property to standards prevalent in the market. There is also a cap on the owner’s contribution towards these costs.
• For owners using Low-Income Housing Tax Credits in restructuring, the rule eliminates reference to simple interest. This allows HUD to use administrative discretion in requiring simple or compound interest, so waivers to use compound interest will no longer be required.

For further information, please e-mail questions to Claudia Kedda.

In response to the announcement, NAHB’s CEO, Jerry Howard, sail, "NAHB has long opposed government efforts to impose user fees on the GSEs, and this, despite the fact that it is called a necessary result of a down market, is essentially a user fee that is being imposed by Fannie Mae.  We oppose it and urge Fannie to reconsider.”  For more of Mr. Howard’s comments, view NAHB’s press release. [return to top]

Five types of document that previously were allowed as acceptable proof of identity will no longer be accepted.  For that list, and a list of approved documents, read the full story in Nation’s Building News.

For more information on immigration, view this section of the NAHB Web site. E-mail questions to David Crump, or call him at 800-368-5242 x8491. [return to top]

There are exceptions, including some protective footwear, such as steel-toe boots; some prescription safety eyewear; ordinary work clothing; weather-related gear, and items meant to identify workers as employees of the company. The rule clarifies that items lost or intentionally damaged by the employee should be replaced by the employee, and that the employer can take “reasonable steps” to retrieve any PPE in the possession of a terminated employee.

For the full notice, view this page. For questions, e-mail Rob Matuga, or call him at 800-368-5242 x8507. [return to top]

• Pillars of the Industry Competition Entry Deadline Extended – now Dec. 14

Make sure your company’s stellar multifamily project or media campaign meets the entry deadline. If it doesn’t make it to the judges’ table, it can’t win!

• Green Building Awards Deadline – Jan. 31

If your company is building green, enter your work in NAHB's Green Building Awards competition. For more information, view this page.

• International Builders’ Show – Feb.13-16, 2008

It’s not too early to register for the International Builders’ Show, in its final year in Orlando. See the exhibits you didn’t get to last year, as well as the many first-time exhibitors. For more information, and to register, view this page.

• 2008 Best of 50+ Housing Awards – February 29

Enter your firm’s best active adult housing community in the 50+ Housing Councils awards program. Winners will be announced in May at the Building for Boomers and Beyond conference in New Orleans. For more information, view this page.

• Pillars of the Industry Conference and Gala – April 1-3, 2008

Join top-tier industry leaders at The Broadmoor resort in Colorado Springs, Colo., for an information-packed seminar program and a revamped menu of networking opportunities. It’s NAHB Multifamily’s signature annual event, and one that the industry’s most influential leaders attend. For more information, view this page.

• Spokesperson Training at IBS

Knowing how to control media interviews and make impressive presentations are critical skills, especially as media coverage of the housing industry these days is often negative. How can you make sure your message gets across to your target audiences?

NAHB's Spokesperson Training Program can help. At IBS in Orlando, NAHB will offer two Interview Skills seminars (Monday & Tuesday February 11 & 12) and two Presentation Skills seminars (Wednesday & Thursday February 13 & 14).  

More than 15,000 NAHB leaders have taken one or both of these seminars since the program began in 1979. They are led by professional communication consultants, each with more than 30 years of experience training NAHB members on the issues that home builders, HBA staff and affiliate members face every day. Each seminar lasts 7 ½ hours, and is limited to 12 participants. The seminars include instruction, skill-building exercises and on-camera practice interviews.

The fee is $495.00 per person for each one-day seminar. Registrations are accepted on a first-come, first-served basis. To see a complete description of each seminar, as well as registration information, view this page. 

• New Inclusionary Zoning Information Available

Helping members mired in inclusionary zoning battles is the objective of a new policy manual for NAHB members. The "National Survey of Statutory and Case Law Authority for Inclusionary Zoning - Policy, Practical and Legal Challenges to Inclusionary Zoning" is a resource manual geared to home builders, developers, local HBAs and communities grappling with the issue of housing affordability. The guide includes a comprehensive list of critical policies that association members can adopt and questions they can ask in response to any proposed inclusionary zoning ordinance. Also included in the manual is a limited case law summary as well as a helpful review of statutory authority for inclusionary zoning, identifying how various states enable this approach to be used. The new manual is available free to NAHB members online by viewing this page.

Meanwhile, NAHB has retained nationally known consultants to do further research on this topic, with the findings expected to be available by the end of this year. Additional resources are available to association members in NAHB's Housing Affordability Toolkit, which has been recently updated. For more information, e-mail Debbie Bassert  or Ed Tombari.