The crucial significance of housing-related tax preferences
is detailed in a new NAHB study that provides powerful evidence to support the case for safeguarding this cornerstone of U.S. housing policy.

Using the most recent IRS data available (from 2003), the report analyzes local usage of the mortgage interest and real estate deductions in each of the 435 congressional districts across America. In so doing, it shows how millions of working families nationwide use and depend upon housing tax incentives to help them maintain their current standard of living. Here are some highlights:

• The average congressional district contains roughly 80,000 taxpayers who use the mortgage interest deduction, and 88,000 families who deduct real estate taxes.
  
  
• On a nationwide basis, 35 million taxpayers used the mortgage interest provision in 2003, deducting a total of $338 billion – an average of $9,650 per household.
  
  
• 39 million taxpayers in 2003 deducted an aggregate of $119 billion in real estate taxes, for an average deduction of $3,000 per filer.
  
  
• California posted the highest average mortgage interest deduction, at approximately $14,000 per taxpayer. California's 14th district, including parts of the pricey San Mateo, Santa Clara and Santa Cruz counties, ranked first out of all other districts, with an average of roughly $35,000 deducted per household.
  
  
• States with the greatest amount of mortgage interest deducted in 2003 include California ($64.9 billion), New York ($19.7 billion), Florida ($17.6 billion), Texas ($16 billion), Illinois ($15.9 billion), New Jersey ($12.9 billion), Michigan ($11.5 billion), Virginia ($11.3 billion), Ohio ($10.9 billion), Pennsylvania ($10.8 billion) and Georgia ($10.6 billion).
  
  
• States with the highest average household real estate tax deduction included New Jersey ($6,000), New York ($5,181), Connecticut ($4,769), Illinois ($4,129) and Vermont ($3,845).

Findings of the study are provided in greater detail in our press release, and you can read more about it in the July 5 edition of NBN Online. The report itself can be obtained at HousingEconomics.com. Contact: Rob Dietz (x8285).

An EPA proposal to increase regulation of construction-site dust
in urban areas is meeting with strong objections from NAHB. The agency wants to establish a 24-hour "coarse particulate standard" that, if approved, would add even more complicated and contradictory mandates for builders' jobsites that are located in areas with 100,000 or more people. The EPA contends that the kind of sand and dust that is kicked up at construction sites is inherently more dangerous than dust from other sources such as farming or even windstorms. NAHB disagrees with this theory, and has already sent in our comments opposing the EPA proposal. This is definitely an issue to watch for, as tougher dust control measures are certain to affect the affordability of new homes. In metropolitan Phoenix, for example, home builders already spend between $2,500 and $5,000 per unit on dust control measures, depending on mitigation efforts and the cost of water. The proposed rule could be expected to add to this burden considerably. Read more about it in the next NBN Online, which will be published on Wednesday, July 5. Contact: Mike Mittelholzer, x8660 or Calli Schmidt, x8132. [return to top]

A recent visit with the new OSHA Administrator
helped further cement NAHB's ongoing partnership efforts with this important agency as we collectively work to increase worker safety and health on the nation's residential construction sites. Edwin G. Foulke, Jr. (pictured at right) was sworn in on April 3 to his post as the head of OSHA. NAHB representatives, led by Vern Pottenger, chairman of the NAHB Construction Safety & Health Committee, had the opportunity to "meet and greet" the Administrator and talk about our efforts to help educate OSHA inspectors about the differences between residential and commercial construction. Foulke expressed significant interest in, and his personal support for, the special on-site training sessions that NAHB has been conducting for OSHA inspectors and administrators. He has also accepted an invitation to bring an OSHA team to our next International Builders' Show in February, where the plan is for them to host a booth at which builders can discuss safety and training issues with the experts. By the time the IBS rolls around, we will have completed the second installment of our jointly produced safety DVD and handbook, as well as a new home builders' safety program manual that will outline steps for developing and launching a safety management program. For more information, contact Rob Matuga, x8507. [return to top]

The import of recent court cases on wetlands permitting
was the subject of a panel discussion convened for staff of the Senate Environment and Public Works Committee this past week. Panelists included NAHB Assistant Staff VP for Litigation Tom Ward, who was part of the team of staff, volunteers and consultants who developed a friend-of-the-court brief for inclusion in the Rapanos and Carabell cases that were recently before the Supreme Court. While legal experts continue to debate the full meaning of the court's decision to remand those cases back to a lower court, panelists agreed that the outcome highlights the confusion regarding the definition of "navigable waters" for purposes of determining federal jurisdiction. While the majority of Justices want to rein in the Army Corps of Engineers' interpretations, it's certain that the final decision will encompass more than just navigable lakes and the bays, rivers and wetlands next to them. Going forward, NAHB staff and volunteers have resolved to continue working with Congress and federal regulators and policymakers toward an official rulemaking and more definitive guidance for builders. See the next NBN Online for more, or contact Tom Ward (x8230). [return to top]

An Energy Star ® designation for the National Housing Center
is the latest recognition that NAHB's recently renovated headquarters building in Washington, DC is a worthy flagship of America's home builders that represents our increasing emphasis on green building techniques and practices. EPA's 2006 Energy Star® designation ranks our building among the top 25% of commercial buildings in terms of energy performance, and is a fitting outcome of the efforts NAHB has made in our building renovation process to provide a comfortable and healthy environment for employees and visitors alike. Some of the many environmentally friendly design elements incorporated in the National Housing Center include timing devices on lighting, cooling and heating systems; sensor lights in the underground parking garage; a new system that regulates the building's fan coil unit; and monitoring adjustments to the constant volume air system that have helped even out office temperatures. Contact: Calli Schmidt, x8132. [return to top]

An unexpected gain in new-home sales this May
doesn't mean that the cooling process for housing is over just yet, but may reflect the extra efforts builders are going to to get potential buyers off the fence. Those efforts include increased incentives such as free upgrades, as well as some strategic price trimming. Sales rose 4.6% in the month to a seasonally adjusted annual rate of 1.23 million units, with three out of four regions posting gains in the latest Census report. NAHB's Chief Economist, David Seiders, thought the sales numbers looked a little too good to be true, and cautioned builders and the public against viewing them as the onset of a significant rebound. "In fact, we wouldn't be surprised to see a downward revision to May's numbers as well as some decline in coming months," he said. See our press release for more, or contact Paul Lopez (x8409) for help dealing with media inquiries regarding the latest data. [return to top]

NAHB offices will be closed on July 3 and 4
in recognition of the Independence Day federal holiday. The next issue of Nation's Building News Online will appear on Wednesday, July 5, when NAHB is back in business. We hope you have a pleasant and safe holiday weekend! [return to top]