| February 4, 2008 |
By Brian Catalde
NAHB President and
Jerry Howard
NAHB Executive VP and CEO |
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The Fed took another step in the right direction
at the end of January when it cut short-term interest rates by another half of a percentage point to help shore up the weakening economy.
 One day after the House of Representatives passed its version of an economic stimulus package, the Federal Reserve made its second significant cut to the federal funds rate in a week, reducing it to 3%. This is down from 5.25% just four months ago. In an official NAHB statement released on Jan. 30 praising the Fed's latest move, NAHB President Brian Catalde noted that "We urge Fed policymakers to monitor events closely and be prepared to enact further rate cuts in the future." In addition, Brian called on Congress to do its part on the fiscal front by moving quickly to pass an economic stimulus package. As the Senate worked on its own version of stimulus legislation, he urged lawmakers to craft a final plan that will raise Fannie Mae and Freddie Mac conforming loan limits for two years instead of one and link this change to reform of the housing GSEs. This plan should also extend the carryback of net operating losses for five years to enable struggling businesses to avoid lay-offs and maintain their viability by providing a much-needed infusion of capital to prevent liquidation of assets, he said. In addition, the final stimulus package should allow cities and states to issue tax-exempt mortgage bonds to refinance existing loans to help troubled borrowers. "These provisions are vital to help the housing sector rebound and provide a shot in the arm to the sluggish economy," Brian said. Read NAHB's statement here, or see the next NBN Online for details.
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 pumped up support for an economic stimulus bill
 that was passed by the Senate Finance Committee on Jan. 30. The bill, on which the full Senate was expected to vote as this report was being drafted, included several components that are favorable for housing. For example:
- An expansion of the Mortgage Revenue Bond program with a special
$10 billion allocation of bonds.
- A one-year extension of the new home energy efficiency tax credit.
- An expansion of the net operating loss tax deduction to five years
for business losses incurred in 2006, 2007 and 2008.
Through grassroots channels, NAHB key contacts were urged to take a moment to call their U.S. Senators and urge them to support the Senate Finance Committee's economic stimulus package. For more information on NAHB's lobbying efforts regarding the stimulus package, contact Greg Brown, x8421.
NAHB Member Benefit: A complete update on recent developments regarding an economic stimulus package and efforts to include various housing-related components will be provided at the upcoming NAHB Board of Directors meeting during the International Builders' Show in Orlando. Also stay tuned to this report and NBN Online for further details.
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Targeting Congress with more hard-hitting ads
aimed at promoting key housing provisions for inclusion in an economic stimulus package, NAHB has updated our previous ads that ran in USA Today and several inside-the-beltway publications at the end of January. During the crucial week of Feb. 4, our new full-page ad will run in the Washington Post, Roll Call, Washington Times, Politico and The Hill publications. The new copy urges Congress to raise the Fannie Mae/Freddie Mac conforming loan limit for two years instead of one to increase the availability of mortgage money in high-cost markets, and urges Congress to modernize the FHA to assist first-time and moderate-income home buyers. It also says the Senate must adopt its Finance Committee's stimulus bill, including key measures to allow businesses to carry back net operating losses for five years and to expand the mortgage revenue bond program to help strapped borrowers refinance existing mortgages.
For more information on our new ad run, contact Jay Shackford at x8406. For more information on NAHB's lobbying efforts on the stimulus package, contact Greg Brown at x8421, or tune in for a complete update on NAHB's actions at the upcoming Board of Directors Meeting in Orlando.
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Resolutions in the pipeline
for consideration at the upcoming Board of Directors meeting in Orlando are summarized in a memo from Resolutions Committee Chairman Bob Nielsen that is currently available for members to view online. To date, six resolutions have been submitted for the Board's consideration to become official NAHB policy. These include the following:
1. NAHB's Position on Proposed Economic Stimulus Legislation*
2. New Home Buyer Tax Credit
3. Preserving Property Tax Exemptions for Affordable Housing
4. Increase the Carry-Back Period for the Net Operating Loss Deduction
5. Cost-Effective and Affordable Energy Codes and Standards
6. Telecommunications Access, Marketing and Billing
* Full-text not yet available for this resolution. See the Resolutions Committee Chairman's memo for a brief summary of this item.
NAHB Member Benefit: Through the NAHB Resolutions process, any member or HBA may submit new policy proposals for the Board's consideration. This process ensures that NAHB's goals, strategies and official policies are the direct product of its members' concerns and views and allows individual NAHB members to have their voices heard on the national stage. Please direct any questions regarding the Resolutions process to Jay Shackford at x8406.
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Merrill Lynch's flawed report on home prices
released this week was another panic analysis based on faulty assumptions and certainly not a true assessment for the majority of markets across the nation. The report basically predicted a free-fall in home prices for another two years, and unfortunately made for more than a few unpleasant headlines. While working to disprove such unbalanced reports at the national level, NAHB reached out to its local HBAs with special resources designed to help them get accurate information to consumers in their communities. Members of NAHB's PRx service (an email network created to keep HBAs' PR professionals in the loop) were alerted about the report and strongly encouraged to mount an NAHB-assisted response if their local paper happened to cover it. NAHB provided a model letter to the editor that could be signed by individual association presidents and submitted to the appropriate local media outlet, and offered media outreach assistance through the NAHB Public Affairs office. In addition, HBAs were reminded about an array of online educational and promotional resources that NAHB has created to help our members navigate the housing downturn. These resources are available for free downloading by members and HBAs under our Myth Buster section on NAHB's Web site. For more information or to obtain a copy of NAHB's sample letter to the editor, please contact Gwyn Donohue, x8447.
NAHB Member Benefit: NAHB conducts extensive media outreach when such erroneous reports are released to educate reporters, discourage sensationalized accounts and ensure that home builders' views are represented. NAHB also assists our members in dealing with media inquiries regarding the latest housing data.
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Weak new-home sales numbers for the end of 2007
provided additional evidence of the need for an economic stimulus package that includes specific elements related to housing. The U.S. Commerce Department reported on Jan. 28 that sales of newly built single-family homes fell 4.7% in December, seasonally adjusted, while the inventory of new homes for sale continued a gradual decline with a 2.3% reduction to 495,000 units that month. In a statement reacting to the latest figures, NAHB EVP and CEO Jerry Howard said that "While the Administration and Congress are off to a good start in crafting an economic stimulus package to boost the ailing economy, the continuing deterioration in the housing market, as reflected in today's numbers, underscores the need to do more to stabilize housing and the economy." Read NAHB's statement here, or contact Paul Lopez (x8409) for help dealing with related media inquiries.
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Calling on Congress to enact association health plan legislation,
 NAHB urged lawmakers last week to put small businesses on an equal footing with large employers and unions in their ability to negotiate for lower insurance costs on behalf of their members. Scott Eckstein, a self-employed custom home builder and remodeler and the newly elected president of the HBA of Illinois, testified before the House Small Business Committee on Jan. 23. "Access to quality, affordable health care is an important issue to home builders and America's small businesses," Scott told Congress. Expressing his frustration over the current system, he cited arbitrary premium increases, unreliable coverage and his carrier's inability to process referrals when needed. Scott explained that currently he is paying two insurers more than $22,000 annually to cover his family's health needs and that he's seen a spike in his premiums as high as 32% in just one calendar year. "If new home prices rose at this rate, could you imagine the cost to shelter our nation?" he asked. Read more about the hearing in NBN Online, or contact Erin Tario (x8413) for more information.
NAHB Member Benefit: NAHB has lobbied extensively for AHP legislation that would allow small businesses to band together across state lines to negotiate favorable prices and obtain affordable health coverage for their employees at a time when health care premiums are soaring out of control. NAHB's efforts are aimed at ensuring more choices, better access and greater stability in health insurance plans on behalf of our many small-business members.
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Put the 2008 NAHB Legislative Conference on your calendar
 so you don't miss the most important grassroots lobbying event of the year for home builders and their affiliates. The conference takes place on Wednesday, April 30 and is a day-long event that coincides with the NAHB Spring Board of Directors Meeting in Washington, DC. This is an unparalleled opportunity for NAHB members to personally lobby your members of Congress on issues of primary importance to your business and your industry while establishing strong working relationships with your elected federal officials. Do your part to ensure that NAHB's issues are heard by Washington policymakers by contributing to a strong builder turnout on April 30. You'll be sending a powerful message to members of Congress that housing needs to be a top national priority. For more info, visit www.nahb.org/legcon, or contact Molly Murray at x8282.
NAHB Member Benefit: The annual NAHB Legislative Conference provides an ideal opportunity for association members to share their concerns on housing-related issues with lawmakers on Capitol Hill.
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Looking for updates on new-home technology?
A newly created, free e-newsletter from the Home Technology Alliance (HTA) should be just the ticket to keep you in sync with current trends in both the home building and technology industries. A partnership between NAHB and the Custom Electronic Design Installation Association (CEDIA), the HTA recently launched its HTA Update publication with a target audience of builders, remodelers and other residential building industry professionals. To start receiving the HTA Update in your e-mail, request your free subscription at HTA@nahb.com or visit www.nahb.org/HTA. Read more about the report's origins and contents in NBN Online, or contact Joshua Nester, x8461.
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The Monday Morning Briefing returns after IBS,
with our next edition scheduled for Monday, Feb. 25. We'll be back with all the news on events and resources from the International Builders' Show, so don't forget to check your e-mail. See you in Orlando!
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