| November 5, 2007 |
By Brian Catalde
NAHB President and
Jerry Howard
NAHB Executive VP and CEO |
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Another wise move by the Federal Reserve
to cut short-term interest rates was applauded by NAHB on Oct. 31.
The quarter percentage-point reduction will help housing and the economy by stabilizing financial markets and increasing liquidity in credit markets. In an official NAHB statement released on the day of the Fed's announcement, NAHB President Brian Catalde noted that "By moving for the second time in as many months to ease its monetary policy, the Fed is taking prudent action to help American consumers and businesses." At a time when the housing and financial sectors are under duress, the Fed made the right decision to lower borrowing costs, he added. "This will bolster consumer confidence, keep the economy on a positive track and help the housing market begin to recover next year."
NAHB Member Benefit: NAHB regularly provides updates on housing market conditions to the Fed Chairman in advance of meetings of the Federal Open Market Committee where monetary policymaking decisions are made. Such efforts ensure that the Fed can make the best-informed decision possible when considering a possible rate cut.
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NAHB will co-host an historic Symposium on Housing Affordability
 with the National Association for the Advancement of Colored People (NAACP) and National Education Association (NEA) at the George Washington University in Washington, DC on Nov. 5-6. Participants will include housing organizations, civil rights groups, labor organizations, business groups, nonprofits and representatives of local, state and federal government. The goal of this symposium is to develop a broad national coalition that understands and voices support for housing issues at the local level, and to compile a toolbox of techniques and programs to help a local coalition improve housing affordability. Topics to be addressed include housing finance; government resources and requirements; zoning and infrastructure; and people and markets. Featured speakers are to include Randall Kroszner, member of the Federal Reserve Board of Governors; Sheila Bair, Chairman of the FDIC; Federal Housing Commissioner Brian Montgomery; and HUD's Assistant Secretary for Public Housing, Orlando Cabrera. Tune in to next week's NBN Online for complete coverage of this important event, or contact Blake Smith (x8583) for more info.
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The Tax Reduction and Reform Act of 2007,
introduced last week by House Ways and Means Committee Chairman Charles Rangel (D-NY) as "the mother of all tax bills," contains several proposals that would affect NAHB members. This wide-ranging bill includes changes to both the individual and corporate tax systems, with its primary focus on permanent repeal of the Alternative Minimum Tax. NAHB staff is analyzing the proposal in detail to determine how it would impact housing and the home building industry. While there is little expectation that the legislation will move this year, it serves as a good indication of how Chairman Rangel intends to proceed with tax reform.
Moreover, an important portion of the bill is likely to be spun off and itself moved quickly through the committee and full House. That portion of the legislation would extend short-term AMT relief for another year, preventing an additional 20 million individuals from being captured under the tax. Other parts of the spin-off would extend a number of expiring tax provisions. Of great concern to NAHB is that the cost of this smaller bill would be offset through a change in the taxation of carried interest. Essentially the provision mirrors previously introduced legislation that would tax a carried interest at ordinary income tax rates (as high as 35%) instead of the current 15% capital gains rate. This proposal has been promoted as a method for ensuring highly paid hedge fund and private equity fund managers pay their appropriate level of tax – but it would also disproportionately affect real estate, especially small developers. NAHB is weighing in on these concerns with the appropriate members of Congress and monitoring activities around both tax bills very closely. For more information, see NBN Online or contact Greg Brown (x8421).
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The 2008 IBS is shaping up great,
 with pre-registration up 15% from this time last year and nearly one million square feet of exhibit space expected to be occupied by over 1,800 companies. NAHB has committed 50% more marketing and programming resources to make the 2008 International Builders' Show® the best event it can be, and so far it seems to be working.
And here's a scoop. At the start of the 2008 election year, who better to share the keynote speaker duties at Grand Opening Ceremonies than renowned husband and wife political analysts James Carville and Mary Matalin? Don't miss this great opportunity to hear their candid assessments of the political field first-hand — it's bound to be both educational and entertaining.
If you haven't yet registered to attend the 2008 IBS, consider doing so right now so you don't miss out on all the great resources that can help you navigate your business through these challenging times. And remember, if this is the first time you are registering for the IBS as an NAHB member, you are eligible to attend the exhibits and the education sessions for the steeply discounted rate of just $100!
NAHB Member Benefit: The builders' show is one of NAHB's biggest member benefits. It gives you access to the best networking forum, the most cutting-edge products, and incredible education seminars aimed at building your business — all at a discounted rate for NAHB members. Many members regard the IBS as hands-down the most important event to attend each year. [
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Buyers of green-built homes are primarily seeking energy efficiency
 according to a new survey conducted for NAHB as the association gears up to launch its new National Green Building Program at the 2008 IBS. The survey of 800 registered voters asked consumers to rate the importance of certain goals to their decision to either purchase a new green home or remodel their current one to be more green. Results couldn't have been clearer – fully two-thirds of consumers said that "reduced energy costs" are the single most important consideration. Of second-highest importance, at 55%, was making their home "healthier," while 49% said that having a green home is simply "the right thing to do for the environment." Such results bode well for public acceptance of NAHB's new National Green Building Program. As NAHB President Brian Catalde noted in a statement explaining the survey results, "Green building is the home buyer's best defense against soaring energy costs. But it's up to the nation's home builders to make sure the cure is not more expensive than the problem itself. Our program paves the way for authentic yet cost-effective green building." Read more in our press release.
In further green building news, pilot testing of the program's certification protocols has begun at a variety of HBAs and builders, many of which were identified in the last Nation's Building News. Meanwhile, members of the consensus committee that is developing our new Green Home Building Standard met again in Washington this past week to evaluate the hundreds of recommendations we've received during the initial comment period. And on a related topic, NAHB recently announced that entries are now being accepted for the 2008 NAHB National Green Building Awards, which will be presented during the NAHB National Green Building Conference on May 11-13 in New Orleans. For more information, contact Calli Schmidt at x8132.
NAHB Member Benefit: NAHB is committed to helping our members take advantage of arising opportunities in green building while avoiding inflexible, unworkable and costly mandates.
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The Home Building Industry Disaster Relief Fund stands ready
 to help residents of Southern California who've been affected by the wildfires that have swept through their neighborhoods in recent weeks. As of Oct. 26, the fires had reportedly displaced hundreds of thousands of residents, caused $1 billion in property damage and destroyed an estimated 1,635 homes. NAHB's fund was created following Hurricane Katrina to provide a pipeline for relief funds from the building industry that would be used to help rebuild communities struck by disaster. Readers can contribute to this fund online. Meanwhile, NAHB is also working with the BIA of Southern California to produce public service announcements advising consumers about hiring contractors to repair their homes and property.
NAHB Member Benefit: Realizing that unscrupulous contractors often try to take advantage of residents who've been victimized by natural disasters, NAHB is dedicated to helping our members and associations warn their communities about this danger and how to avoid it. Get more information on these efforts from Jessica Lynch (x8401).
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Monday Morning Briefing will not publish next week
due to ongoing preparations for NAHB's upcoming Winter Executive Board Meeting in Boca Raton, FL. Stay tuned for our next edition dated Nov. 19.
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