October 9, 2006
By David Pressly
NAHB President and
Jerry Howard
NAHB Executive VP and CEO
 
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NAHB scored some major victories at the recent code hearings
that will help keep housing as safe and affordable as possible, and come as welcome news to many of our builder members.

By the time that the first round of public hearings to revise the 2006 editions of the I-Codes concluded in Orlando on Oct. 1, members and staff from NAHB and its HBA affiliates had withstood 11 grueling days of 12-14 hour hearings and provided comments and debate on over 2,200 proposed amendments. They emerged with several crucial wins whose impacts will be felt throughout the building industry for years to come.

By far the most significant win we scored came after two full hours of debate, when all proposals seeking to mandate fire sprinkler systems in the International Residential Code (IRC) for one- and two-family dwellings and townhouses were disapproved by the IRC Committee. NAHB and its builder members, along with several code officials, testified in opposition to mandated fire sprinklers, citing their high cost along with the design, maintenance and legal concerns identified within the policy resolution that was approved at our recent Fall Board meeting.  Arguments in support of the mandates were emotional in nature and lacking in technical justification, as no study has ever demonstrated that fire sprinklers are substantially more effective at saving lives than smoke alarms. Of course, we still have to defend this big win at the final ICC hearings in May of 2007, where it is very likely to be challenged by the opposition. Read more about our efforts on fire sprinklers in NBN Online.

Just a few of the other items on our long list of achievements stemming from the code hearings include NAHB's defeat of a proposal to require installation of permanently mounted escape ladders; defeat of a proposal to incorporate requirements into the IRC for fire department access roads and fire protection water supply; defeat of a proposal to increase by one foot the height to which homes in floodplains must be elevated; approval of a number of proposals to reorganize, simplify and provide greater flexibility in the IRC provisions for the design and construction of wood-framed wall bracing; defeat of proposals that would increase the need for hurricane clips on roofs; defeat of proposals to require hail impact-resistant shingles and other roof coverings in many areas of the central and southern U.S.; defeat of proposals that would have limited the use of vinyl siding, gypsum sheathing and foam plastic sheathing; and defeat of proposals to increase the amount of wall insulation required by the IECC and IRC. Get more details in the upcoming (Oct. 10) edition of NBN Online, or contact Ed Sutton, x8564. 

NAHB Member Benefit: Your membership in NAHB helps ensure against unwarranted and costly changes to the residential codes that you build by every day. Collectively speaking, NAHB's representation of our builder members at the code development hearings will translate to major savings for you and your customers, while adhering to our No. 1 priority to keep homes and the families who live in them safe.

The House passed NAHB-championed property rights legislation
in a 231-to-181 vote just as this report was going to press last week. As we told you then, the bipartisan measure would ensure that all property owners can have their day in federal court when their Fifth Amendment rights are violated. House Majority Leader John Boehner (R-OH) gets special kudos for reviving the bill after it suffered a setback on Sept. 26 when it was considered under the House suspension calendar and fell just short of the two-thirds majority support needed for passage at that time. NAHB worked diligently to secure approval of this legislation (H.R. 4777), sending a letter to every House member and designating the bill as a key vote for its significance to the housing industry. Also, NAHB Executive Vice President & CEO Jerry Howard conducted numerous interviews with influential media prior to the vote, including The Washington Post, Congressional Quarterly and National Journal's Congress Daily.

House passage of the bill represents the latest milestone in an effort spearheaded by NAHB's Legal Action Network, which has been working for years to impress upon members of Congress the importance of enacting judicial reform legislation that allows takings claims to be heard in a timely manner in federal court. It was due largely to these efforts that Reps. Steve Chabot (R-OH) and Bart Gordon (D-TN) introduced H.R. 4777 earlier this year. Read more in NBN Online, or contact J.P. Delmore, x8412.

NAHB Member Benefit: NAHB's ongoing efforts to achieve full Congressional passage of property rights legislation are aimed at helping our builder and developer members get fair treatment under the law when government actions reduce or negate the value of their property.  NAHB is your voice in Congress on this and other issues that directly affect your business's bottom line. [return to top]

Now is a good time to buy a home,
according to nationally syndicated real estate columnist Ken Harney, who recently wrote about the advantages for consumers in today's softer housing market. Harney's article is prominently featured in our new consumer-targetted e-newsletter, NAHB HouseKeys, as well as in the latest NBN Online, and is available for HBAs and home builders to reprint or link to from their own Web sites to help emphasize the favorable aspects of today's housing market to the public. Advantages that Harney mentions include expanded builder concessions, discounted financing packages, expanded inventories of homes to choose from, and the ability of buyers to negotiate for better terms. Meanwhile, Harney notes, job growth across most of the country is solid and mortgage rates remain near record lows. Read his full column here, or contact Niki Clark (x8061) for more information.

NAHB Member Benefit: NAHB is developing a package of materials to help HBAs stress the advantages of buying in today's housing market through various communications channels. You'll hear more about this in coming days, or contact Jay Shackford (x8406) for more information.   [return to top]
Expanding the flow of U.S. lumber imports
from overseas was the object of two days of talks that NAHB held with Swedish trade and industry officials last week. NAHB Executive VP & CEO Jerry Howard described the negotiations as "extremely productive," noting that all parties to whom he spoke expressed strong interest in the U.S. market. Several major Swedish lumber-producing companies, trade organizations and government officials took part in the talks. A main objective was to establish contacts among Swedish producers and American buyers, and identify any policy barriers to increasing the volume of imports from their current level. Also, the Swedish Investment Agency expressed an interest in exporting American building systems and log home technology to Sweden.  As a result of the talks, Sweden now intends to send a delegation to the 2007 International Builders' Show in Orlando, FL this February. Our efforts continue this week as Jerry and NAHB Immediate Past President David Wilson meet with Russian government and industry officials in Moscow and St. Petersburg to provide an overview of the U.S. housing industry and discuss opportunities to increase lumber exports from that country to ours.

NAHB Member Benefit: NAHB's efforts to step-up foreign supplies of softwood lumber and other wood products are directly tied to the new trade pact between the U.S. and Canada that is set to take effect on Nov. 1. This trade pact will institute a complicated system of border taxes and quotas, creating serious uncertainties for U.S. builders regarding the availability and price of lumber from Canada, which has traditionally supplied the bulk of U.S. imports. Expanded supply channels from other countries would help ensure a steady and affordable supply of this essential building material for the construction of new homes in this country. [return to top]
NAHB's long-term housing forecast is now available
online, including our best projections for immigration, underlying demographics and housing demand from here to the year 2015. Offered as a member benefit to help you position your business for the future, a preview of this helpful resource comes to you from NAHB's top economists. Also don't forget about NAHB's Fall Construction Forecast Conference on Oct. 25, which will again be offered as a live Webcast for those not able to travel to Washington, DC.  Contact: Paul Lopez (x8409) for help dealing with media inquiries regarding the latest housing figures and forecasts.

NAHB Member Benefit: The long-term housing forecast and other housing forecasts are available for purchase at HousingEconomics.com. You must be logged in to www.nahb.org as a member of NAHB subscribe this this publication at the member price. Contact Karel Leon (x8476) for helping signing up for HousingEconomics.com. [return to top]
Tune in for a live Webcast about the future of residential construction
with Centex Corp. Chairman Timothy Eller along with former NAHB President Mark Tipton in the first installment of a new series entitled "The Building Communities Webcast Seminar Series on Residential Construction Management." Sponsored by the National Housing Endowment in partnership with East Carolina University, this series targets future leaders of the home building industry and is open to students and professors in construction management, science and technology programs as well as NAHB Student Chapter members and all NAHB members. The first Webcast takes place Thursday, Oct. 19, starting at 11:00 a.m. ET and lasting 50 minutes. All viewers are required to register for the Webcast ahead of time at www.rcmseries.ecu.edu.

NAHB Member Benefit: Engaging university students and professors in a discussion about the future of home building is a good way to spark greater interest and understanding about careers in our industry and thereby help expand the pool of skilled professionals that will eventually be available for hire in a relatively tight labor market. [return to top]
Notice: NAHB offices will be closed on Monday, Oct. 9,
in observance of the Columbus Day federal holiday. We will be back in business on Tuesday, Oct. 10, which is the day on which the next Nation's Building News Online will publish. Hope you enjoy the long weekend! [return to top]

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