| November 6, 2006 |
By David Pressly
NAHB President and
Jerry Howard
NAHB Executive VP and CEO |
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Tell consumers why "It's a Great Time to Buy a Home"
by tapping into a major campaign that was just launched by NAHB to shed light on the many positives of today's buyer's market.
 Our "time to buy" campaign includes a free package of ready-to-use resources for NAHB members and HBAs. These resources provide a solid starting point for public relations efforts that can bring some valuable perspective to those potential buyers who may previously have been discouraged by negative media reports on the slowing market. In truth, top housing economists are predicting that the current adjustment period in housing activity will be relatively short-lived, with conditions for sellers improving by mid-next year. In the meantime, very favorable mortgage rates, excellent buyer incentives, a great selection of product to choose from, and a more relaxed atmosphere for home buying as compared to this time last year all combine to make today's market a very attractive place for consumers. Resources in our "It's a Great Time to Buy a Home" campaign are located at www.nahb.org/buynowcampaign and include:
*Talking points, Q&As and a sample press release
*Sample op-eds, a letter to the editor and newspaper columns
*An economic backgrounder
*Print and radio ads
*Public relations advice on how to get your messages out via media
events and Web content
*An HBA guide on how to make the most of the resources included
*Sample member communications, including a newsletter article
and tips for engaging members in the campaign.
NAHB Member Benefit: NAHB's new campaign is meant to serve as a guide for our members and HBAs who are navigating changing market conditions. Coupled with our recently developed "Toolkit for a Changing Environment," which provides tips on sound business practices for home builders, this is part of an overall effort to get our members the resources they need to position themselves for success. Keep in mind that NAHB's Public Affairs staff is on hand to help craft custom PR and media strategies for individual markets, and is soliciting comments and suggestions from members on ways to add to the effectiveness of our collective resources. Contact: Niki Clark, x8061.
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Muddying the waters of wetlands jurisdiction even further,
 the case of a Massachusetts farmer who filled 50 acres of wetlands to build a cranberry bog has been sent back to a U.S. trial court in that state with instructions to re-examine the question of federal jurisdiction in light of the U.S. Supreme Court's June decision in the infamous Rapanos and Carabell cases. In United States v. Johnson, the federal government had claimed jurisdiction based on the fact that the farmer's land is next to a stream that eventually leads to navigable waters of the United States – and the First Circuit Court of Appeals previously upheld that assertion. However, on Oct. 31, that same court vacated its prior decision and ruled that more facts were needed to determine whether federal jurisdiction applies, with respect to the decision handed down in Rapanos. This is precisely what NAHB had argued in its friend-of-the-court brief. The court also agreed with NAHB's assertion that, just because two bodies of water are somehow connected, this does not automatically mean there is a "significant nexus."
So far, the case continues to leave questions swirling regarding what necessitates federal jurisdiction under the Clean Water Act. And as the EPA and the Army Corps of Engineers continue to drag their feet on guidance for this thorny issue, many builders and developers remain in limbo as local regulators await word from the feds. What is clear is that there is now an obvious split among the Circuit Courts on this matter. The good news: this clashing of court opinions serves to move regulators away from the old "hydrological connection test" which had been widely accepted before Rapanos and Carabell as a basis for asserting jurisdiction over a piece of land. Contact: Duane Desiderio, x8146.
NAHB Member Benefit: While jurisidictional issues continue to be weighed as part of a painfully slow process in the courts, NAHB members can take comfort in knowing that this series of cases in which your national association is participating should eventually lead to a clearer test for determining what makes a piece of land jurisdictional (and therefore needing a permit) under the Clean Water Act. Builders need to know what the rules are and to see those rules consistently applied, and this latest case helps move the ball that much further forward. NAHB will not rest until our final objective has been achieved and our members have the certainty they require to do their jobs.
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Millions of home owners will face estate tax ramifications in 2011,
 according to a new NAHB study released Oct. 31. Clearly a big issue for family-owned businesses, the estate tax (a.k.a. "death tax") is something that NAHB has long urged Congress to permanently repeal. But business owners aren't the only ones who stand to lose out. Five years from now, millions of home owners could also feel the pinch, in a big way. That's when the Economic Growth and Tax Relief Reconciliation Act, signed into law by President Bush to gradually phase out the tax over a 10-year period, reaches the end of the road. Absent a permanent repeal or some other reform by 2011, the tax will come roaring back to its pre-2001 level – a 55% tax rate on amounts exceeding a $1 million exemption. (Currently the tax rate is 46% on the amount that exceeds a $2 million exemption.)
Employing a conservative forecast of housing prices, NAHB's report, "The Estate Tax and Housing," shows that nearly 3.5 million homes will exceed $1 million in market value as of 2011, thereby guaranteeing that the children who inherit those homes will be liable for estate taxes. In fact, 46% of those who would be paying the estate tax in 2011 would be doing so solely because the net worth of their house exceeds a million dollars. This includes many families whose homes are today valued between $450,000 and $550,000.
NAHB Member Benefit: NAHB's latest study helps us make the argument that the estate tax is essentially a ticking time bomb, and that Congress must act swiftly to defuse it. It therefore is our latest weapon in the battle we are waging over estate taxes on behalf of our 235,000 members and home buyers everywhere. Moreover, NAHB's HousingEconomics.com has even more in-depth analysis, plus key data and housing forecasts that are available on a subscription basis. Annual subscription prices for NAHB members start at $195. Contact Karel Leon (x8476) for more info.
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Campaigning for affordable housing with the NAACP,
NAHB President-Elect Brian Catalde and representatives of the Building Industry Association of Greater Los Angeles/Ventura (BIAGLAV) were on hand for a town hall meeting in Los Angeles last week. Together, the organizations endorsed "Prop H," which is an important bond initiative that would provide $1billion for affordable housing in that city over 10 years. Featured speakers at the event included Brian as well as Matt Breiner of the BIAGLAV, LA City Council members Bernard Parks and Jan Perry, Dr. Geraldine Washington of the LA Chapter of the NAACP, HUD Regional Director of Fair Housing and Equal Opportunity Chuck Hauptman, NAACP Regional Director Jamal Watkins and noted USC economist Raphael Bostic, who presented his analysis of Los Angeles housing issues. This was the latest demonstration of NAHB's landmark partnership with the NAACP, which was first cemented with the release of our joint report on minority housing issues, called Building On a Dream. Contact Blake Smith for more information at x8583.
NAHB Member Benefit: NAHB's partnership with the powerfully influential NAACP is aimed at advancing the shared goals of both our organizations, particularly with regard to expanding the supply of workforce housing and improving housing affordability. Together, we can fight in the political, regulatory and litigation arenas for greater fairness in the way that land use is governed by state and local authorities for purposes of expanding housing opportunities.
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The latest homeownership and residential vacancy figures
 from the U.S. Census Bureau, released Oct. 27, provide an interesting snapshot of the nation's housing market and an indication that overall homeownership in the United States is holding fairly steady. According to the government's report, 68.9% of this country's households owned their own homes as of the third quarter of 2006 – indicating a statistically insignificant increase from the 68.8% homeownership rate reported for both the previous and year-ago quarters. Regionally, the Midwest had the greatest percentage of home owners, at 72.8%, followed by the South at 70.6%, the Northeast at 65.5% and the West at 65.3%. The West was the only region to show a significant change in its homeownership rate from a year earlier, with a 1.1% gain. Those aged 65 and up had the highest rate of homeownership, at 81.5%, followed by those in the 55-64 age range, at 80.7%, those aged 35-44, at 68.8%, and those aged under 35 years, at 43%. Only the 65-and-up age group posted a statistically significant difference in homeownership between the third quarters of 2005 and 2006, registering a nominal gain.
National vacancy rates in the third quarter were 9.9% for rental housing and 2.5% for home owner housing. The vacancy rate for home owners was significantly higher than the 1.9% rate that occured during the third quarter of 2005, while the vacancy rate for rentals showed no significant difference. Rental vacancies were highest in the Midwest (12.6%), followed by the South (11.9%), the Northeast (7.7%) and the West (6.5%). More details are available in last week's NBN Online, or in the Census Bureau's own press release.
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If you're planning to attend the 2006 Winter Executive Board Meeting
and related events this Nov. 16-19 in San Antonio, TX, a tentative schedule of events and several other resources are available online to help you plan your trip. See the 2006 Winter Executive Board Meeting Information page on our Web site, and check it again before you leave for additional materials and last-minute updates that will be added as necessary. Among other updates, attendees can plan on hearing a complete analysis of election-day results as they pertain to the housing industry and where we stand on key issues in Congress and in the states. Contact Cyndi McKinley Brown, x8346, for meeting-related information.
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We're extending the deadline to apply for community service awards
 in order to give everyone a little more time to complete their applications. You now have until Friday, Dec. 1, to enter the competition to receive either a National Housing Endowment Home Builders Care Project of the Year Award or a National Housing Endowment Builder Achievement Award for Outstanding Community Service. Project of the Year accolades can go to NAHB-affiliated HBAs or Councils who have participated in an outstanding community service project that epitomizes home builders' commitment to making a difference in their local communities. Winners will receive a $5,000 donation directed to the charity of their choice, and their accomplishments will be recognized at the 2007 International Builders' Show this coming February. Meanwhile, the Builder Achievement award recognizes NAHB builder, developer and remodeler members for exceptional community service and charitable work that reflects an unwavering commitment to their communities. Eight winners will receive awards including Gold, Silver, Bronze and Honorable Mention honors. Donations ranging from $1,000 all the way up to $10,000 will be made in their name to a charity of their choice, as well. See our Call for Entries for both the project of the year and builder achievement awards, or contact Niki Clark, x8061.
NAHB Member Benefit: Recognizing the exceptional philanthropic endeavors, community service and charitable projects performed by home builders every year in the communities they help create is one way to build public awareness and political good will that can benefit the housing industry in ways large and small. NAHB and the National Housing Endowment are shining a spotlight on the good deeds of our industry and encouraging future such endeavors through this effort. Both awards offer spectacular ways for NAHB members to improve their standing in the public and business community.
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The Monday Morning Briefing will skip a week
due to ongoing preparations for the Winter Executive Board Meeting and development of post-election materials. There will be no edition on Monday, Nov. 13, but we'll return on Monday, Nov. 20 with news from the big meeting as well as a summary of how housing-friendly candidates did this coming election day. Till then, be sure to vote on Nov. 7, and thanks for your continued readership and comments!
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