Telling Congress that tariffs on Canadian softwood must end,
NAHB representative and Florida home builder Barry Rutenberg testified before the Senate Trade, Tourism and Economic Development Subcommittee on an issue that was recently rated the third most critical concern for NAHB members.

Duties on Canadian softwood lumber imported into the United States are currently being collected at a rate of approximately 10%, down from a recent high of 27%. This may be an improvement, but it's not good enough, given the fact that NAFTA panels have ruled that the taxes should be entirely eliminated and that billions of dollars in fees collected so far should be returned. Moreover, at a time when pricing and supply of lumber has been rated among the top three most challenging issues for builders according to NAHB's annual Critical Issues survey (see last week's story), restrictions on Canadian imports just aren't logical. As Barry told Congress on Feb. 14, they do little or nothing to increase the use of U.S.-produced lumber in home construction because the vast majority of domestic timber supply is unsuitable for framing walls in homes. Canada's spruce and white pine is a different species that is far better suited for wall framing because it is less likely to bend, crack or warp. Bottom line: Current lumber duties, and any potential negotiated settlement that would result in quotas, tariffs or an export tax, would only penalize American home buyers and consumers. Contacts: Michael Carliner (x8376),  Jason Lynn (x8307).

NAHB will keep up the pressure on the U.S. Commerce Department to eliminate unfair duties on Canadian softwood imports and help alleviate the cost and availability concerns regarding this essential building material that are among the most challenging business issues for NAHB members nationwide.

Removal of the Bald Eagle from the Endangered Species list,
a move proposed by the U.S. Fish and Wildlife Service (FWS) on Feb. 13, makes the bird one of the few clear success stories from the Endangered Species Act and is a testament to home builders' efforts throughout the years to preserve eagle habitats when designing communities. For some time now, our members have worked hand-in-hand with wildlife officials to protect this magnificent bird, our national symbol and also NAHB's symbol for 60 years. NAHB now looks forward to continuing to work with the FWS as that agency seeks comments on the proposed delisting and voluntary management guidelines. Such guidelines will need to help landowners and others understand how to protect the species while continuing to keep housing affordable. Keep in mind that, despite its pending removal from the Endangered Species list, the eagle will remain protected by both the Migratory Bird Treaty Act and the Bald and Golden Eagle Protection Act. For details, see NAHB's press release, or contact Christopher Galik, x8663.

With voluntary guidelines, home builders and landowners should be able to continue their vital conservation efforts without the expensive and often protracted ESA permitting process that often adds months and thousands of dollars to the cost of housing. This is an important development for NAHB members, who designated the "Developmental Approval/ Permitting Process" as their No. 1 issue in our latest Critical Issues Survey. (Last week's Monday Morning Briefing reported on this newly completed survey.) [return to top]

Single-family builders perceive stabilizing conditions
and remain reasonably confident in their marketplace, according to the latest NAHB/Wells Fargo Housing Market Index (HMI), released Feb. 15. The index, which gauges builder sentiment regarding current and expected new-home sales, fell significantly during the second half of 2005 as eroding affordability conditions affected home sales and, by connection, builder confidence. Yet February marked the third consecutive month in which the HMI has held at 57, and the second consecutive month in which there has been no change posted in the index component that gauges current home sales. "This is definitely a good sign that the housing market is stabilizing," noted NAHB Chief Economist David Seiders. He added, however, that there are still significant regional variations in builder perceptions of their individual markets. See the HMI press release and tables online, or contact Gopal Ahluwalia (x8480) or Ashok Chaluvadi (x8482). [return to top]

A 14.5% surge in January housing starts,
reported by the U.S. Commerce Department on Feb. 16, was partly due to a temporary sag in interest rates and the fact that last month was the warmest January on record nationwide. Housing starts hit a seasonally adjusted annual rate of 2.276 million units — their fastest pace since 1973 and 4% higher than a year ago. Apparently many builders took advantage of the good weather to pick up the pace of production following a fairly wet and cold December. Single-family starts were up 12.8% to a new record pace of 1.82 million units, while multifamily starts surged nearly 22% to 457,000. According to NAHB Chief Economist David Seiders, who conducted a teleconference for the press the day that the figures were released, "Market fundamentals suggest that this pace of activity will be hard to sustain, and NAHB's survey of single-family builders points toward some cooling down in coming months." See our press release, or contact Elliott Finkelstein (x8055) to sign up for Dave Seiders' biweekly Eye on the Economy report for more detailed NAHB analysis.  [return to top]

Introduction of important property rights legislation
was hailed by home builders on Feb. 16. The "Private Property Rights Implementation Act of 2006" is designed to ensure that property owners get their day in federal court to defend their Fifth Amendment rights. Currently, owners whose private property is "taken" for public use without just compensation face an untenable paradox. They are first required to litigate in state court, but once they do this, they are often precluded from having their case reviewed by a federal court.  In effect, the property owner is blocked from using the federal courts to enforce the Fifth Amendment's just compensation guarantee — whereas, other civil rights cases can be brought directly to federal court. The newly introduced bill represents bipartisan legislation brought forth by Reps. Steve Chabot (R-OH) and Bart Gordon (D-TN). Original cosponsors for the legislation include Rep. Elton Gallegly (R-CA), Rep. Jeff Flake (R-AZ), House Judiciary Chairman Jim Sensenbrenner (R-WI), Rep. Allen Boyd (D-FL), Rep. Tom Feeney (R-FL) and Rep. Richard Pombo (R-CA). See our press release or contact J.P. Delmore, x8412. [return to top]

NAHB professional designations can help you soar
as they did the following four individuals who were recently honored by the University of Housing for helping expand awareness and support for our designations programs. Read about these winners and the designations they hold in our press release or at the link provided below:

2005 CAPS of the Year Award Winner - Annie Morgan, Senior Services, Inc.

2005 CGA of the Year Award Winner - Dianne Beaton, Secondwind Water Systems, Inc.

2005 CGR of the Year Award Winner - Dan Bawden, Legal Eagle Contractors Co.

2005 GMB of the Year Award Winner - Scott McCollum, McCollum Associates, Inc.

In a competitive marketplace, differentiation is key to success. NAHB's professional designation programs, offered through the University of Housing, allow building professionals to stand out from the crowd while improving their skills and demonstrating their committment to their industry. Find out more about NAHB's 13 designations in areas as diverse as remodeling and sales to property management and affordable housing. Visit www.nahb.org/designations or contact Brenda Sanders, x8178.
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NAHB offices will be closed on Monday, Feb. 20
for the President's Day federal holiday. We'll be back in business on Tuesday, Feb. 21, and Nation's Building News Online will publish that evening. We hope you have a wonderful long weekend! [return to top]