| April 7, 2008 |
By Sandy Dunn
NAHB President and
Jerry Howard
NAHB Executive VP and CEO |
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Capitol Hill has been a busy place this past week
as Congress, the Administration and Fed focused on ways to resolve ongoing problems in the housing market and broader economy.
 Senate's "housing rescue" bill
A stalemate was broken in the Senate on April 1 when Democrats and Repubicans agreed to work together on stalled legislation aimed at reducing the rate of mortgage foreclosures and helping those hurt in the housing downturn. While the bill is still a work in progress, important measures are said to include key NAHB priorities for which we have lobbied extensively in recent weeks. Among the items reportedly now in the mix as the legislation is being crafted are: FHA modernization including higher FHA loan limits; $10 billion in tax-free municipal bonds to be used in subsidizing mortgage refinancings for troubled borrowers; a tax credit for home buyers who purchase foreclosed homes or homes where the current owner is in default; an expansion of the net operating loss carryback provision for businesses from two years to four; $4 billion in grants to state and local governments to purchase and rehabilitate foreclosed homes; and an additional $100 million for consumer counseling. Of course, nothing is set in stone at this point – various amendments will be debated in the Senate, and the House will soon start negotiations on its own housing legislation that could have additional beneficial measures. Going forward, NAHB will continue to work in a bipartisan manner with leaders in both chambers of Congress to craft the best possible bill for housing and the economy – including a more robust home buyer tax credit with broader application. Read more in the April 7 NBN Online, and stay tuned to this report for more news as this story develops.
Treasury's blueprint for financial market reform
On March 31, Treasury Secretary Henry Paulson announced a Bush Administration proposal that was billed as the most far-ranging overhaul of the financial regulatory system since the Great Depression. While the timing and viability of the overhaul is far from certain as Congress would need to approve its biggest elements, this would change the way that the government regulates banks, investment houses, insurers and mortgage brokers. Under the 218-page plan, the Federal Reserve would take on substantially more responsibility for regulating the stability of the entire financial system. The plan also seeks to establish a federal Mortgage Origination Commission to set recommended minimum licensing standards for mortgage brokers and an Office of Insurance Oversight to regulate the insurance industry from within the Treasury Department. Read more here.
Bernanke testimony
Federal Reserve Board Chairman Ben Bernanke testified before the Joint Economic Committee of the U.S. Congress on April 2 regarding the condition of today's economy and recent central bank moves to shore up the financial sector. Read his full remarks here.
NAHB ads targeting Congress
NAHB this week ran full-page ads in National Journal, a respected political publication that is widely read on the Hill, encouraging Congress to support our legislative priorities going forward. A collection of ads we've recently run is available for your viewing here.
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Two favorable court decisions in wetlands cases,
announced last week, may have a significant impact on builders and developers who are contemplating projects in areas near streams, lakes and wetlands that are subject to federal jurisdiction under the Clean Water Act. In the first case, NAHB v. U.S. Army Corps of Engineers, the U.S. District Court for the District of Columbia denied the Corps' motion to dismiss NAHB's complaint, holding on March 26 that our association does indeed have standing to pursue its challenge against the Corps' Nationwide Permit 46 that seeks to regulate non-tidal, upland drainage ditches.
Five days later, in the case of American Petroleum Institute v. Johnson, the same court declared EPA regulations defining the term "navigable waters" to be "arbitrary and capricious" under the federal Administrative Procedure Act. While this case specifically concerned regulations regarding the petroleum industry, it's important to note that the very same language defining navigable waters appears in separate regulations that have been adopted by the EPA and Corps of Engineers for application to the development industry. In fact, proposals in Congress that seek to expand the scope of federal permitting authority could be curtailed by this decision because bill language currently under consideration closely tracks with the regulatory language that this court has now declared illegal.
NAHB Legal Affairs Committee volunteers and staff continue to study the court's decisions. For more information, contact Duane Desiderio, x8146.
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The EPA's new Lead Renovation Repair and Painting Rule
 was signed by agency administrator Steve Johnson on March 31 and will become effective in April of 2010. This rule contains some sensible revisions from the originally proposed rule. For example, it provides the flexibility for a remodeler to determine the size of the work area, thus markedly reducing the containment area for a particular job. With few exceptions, the new regulations will affect all remodeling in pre-1978 structures where pregnant women and children under 6 reside or spend considerable time. Currently, the NAHB Remodelers are studying the new rule, which has yet to be published in the Federal Register. See the April 7 edition of NBN Online for more information, or contact Matt Watkins, x8327.
NAHB Member Benefit: NAHB Remodelers and Advocacy staff and members have been heavily involved in comments and negotiations regarding the development of the new lead paint removal rule and are continuing their efforts to ease compliance concerns for professional remodelers.
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Vital stats on 360 individual housing markets
including home prices, building permits, population growth and employment figures going back to 1993 are now available as part of NAHB's Myth Buster resources at www.nahb.org/mythbuster. Using this information, you can compare the performance of your local market with others across your state and across the nation. You can also put this information to work for you to combat unfair media headlines about the condition of your marketplace and provide accurate information and historic context to your customers. While you're at it, check out the many frequently updated resources under our Myth Buster section, including ready-made TV and print ads, consumer hand-outs explaining why now is a good time to buy, housing forecasts, and more!
NAHB Member Benefit: For help putting NAHB's Myth Buster resources to work for you, contact Gwyn Donohue, x8447.
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FEMA must engage in ESA consultations
regarding its administration of the National Flood Insurance Program, according to an unfortunate decision handed down by the 11th Circuit Court of Appeals on April 1. NAHB filed an amicus brief in this long-running case, Florida Key Deer v. Paulison, arguing that FEMA has no discretion in issuing flood insurance, and therefore, ESA section 7 requirements do not apply. But the court, whose jurisdiction covers Georgia, Florida and Alabama, disagreed with what we said in our amicus brief and what FEMA had argued on appeal, which was that the government agency is required to issue flood insurance in areas that meet certain eligibility requirements regardless of any endangered species consultations. Instead, the court ruled that FEMA can (and must in the 11th Circuit states) require communities that need flood insurance to take actions that benefit endangered species. If this decision stands, it could have a major impact in areas that possess endangered species and require flood insurance – potentially allowing the FWS to insert itself into the local permitting process. Read more in the next NBN Online, or contact Tom Ward, x8230.
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A finalized wetlands mitigation rule
is set to be published by the EPA in early April, and agency officials provided details of what we can expect to see at that time during a telephone press conference last week. According to officials, this rule fulfills the intent of Congress, which directed EPA to create a program that would result in no net loss of wetlands and ensures an efficient and transparent mitigation program that encourages the use of a watershed approach. It emphasizes a hierarchy of mitigation efforts: First developers must work to avoid any impact to wetlands. If that is not possible, developers must then work to minimize any effects. Finally, the developer must mitigate any impacts by providing for mitigation banking. This mitigation must be "in kind" whenever feasible, meaning, for example, that recreating the same kind of wetland that was impacted is encouraged. For more information, contact Glynn Rountree, x8662.
NAHB Member Benefit: NAHB submitted comments on the proposed rule and is now studying the result. Throughout this effort, NAHB has emphasized the need to provide all kinds of mitigation options and better incorporate science in the decision-making process. The new mitigation rule appears to satisfy these objectives, however additional analysis is forthcoming and NAHB will soon provide related guidance to our members.
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Two candidates for NAHB 2009 Vice President & Secretary
 have been certified by the NAHB Nominations Committee. They are Marsha Elliott of Oak Brook, Ill. and Barry Rutenberg of Gainesville, Fla. For your information, profiles of each candidate ran in last week's NBN Online. Both of these well-qualified individuals will address NAHB members at our Spring Board of Directors meeting in Washington, D.C. Read about each candidate here.
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