| September 8, 2008 |
By Sandy Dunn
NAHB President and
Jerry Howard
NAHB Executive VP and CEO |
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Ensuring support for Fannie Mae and Freddie Mac
as a source of mortgage capital for the nation's home buyers is a top NAHB priority as the housing GSEs confront difficult times.
 With investor confidence in Fannie and Freddie continuing to erode in recent weeks and rising fears about the solvency of the housing government sponsored entprises (GSEs), NAHB President Sandy Dunn and First Vice President Joe Robson sent an Aug. 25 message to our Board of Directors. That memo apprised Directors that a special member Task Force has been appointed to study the ramifications of the interim and longer-term challenges facing the GSEs at this time. "We want to assure the Board that NAHB is staying on top of this very fluid situation," said the Senior Officers. The association has remained in daily communications with the GSEs and has requested meetings with their leadership. Meanwhile, NAHB is also continuing to meet with key congressional staff and Administration officials on this issue, including the new regulator for the GSEs, Federal Housing Finance Agency Director Jim Lockhart. "While at this time, NAHB has a limited ability to influence events as they are unfolding, we continue to monitor the markets for any aberrations in pricing of their debt, and media for any additional information that would put us in the best position to help our industry and you, our members," said Sandy and Joe. The Task Force's findings will be presented to the NAHB Executive Board and the full NAHB Board of Directors this winter. Read more in NBN Online, or contact: Rob Pflieger, x8403.
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Making our presence known at the national conventions,
 NAHB's Senior Officers were out in force at both the Democratic and Republican events in Denver and St. Paul over the past two weeks. Our message to leaders of both political parties has been that a healthy housing market must be a top national priority. At the same time, NAHB has been closely monitoring the situation on the Gulf Coast in the aftermath of Hurricane Gustav, and on the Atlantic seaboard with Hurricane Hanna's approach there. In a statement issued by NAHB President Sandy Dunn from the site of the Republican Convention on Sept. 2, NAHB applauded convention organizers for redirecting their efforts to help those who have suffered a loss of property or livelihood as a result of Hurricane Gustav. Sandy noted that, "While we are here at the convention, we will focus our efforts on fundraising to help families and communities affected by the massive storm and those who face the potential of further property losses from Hurricane Hanna. In addition, NAHB, its state and local associations and its members will work with local officials to assist in rebuilding efforts in areas that have been hit hard by the storms." See Sandy's official statement here. Also, link to NAHB's resources for helping victims of natural disasters here.
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New-home sales rose 2.4% in July
 to a seasonally adjusted annual rate of 515,000 units, while inventories of new units declined for a 15th consecutive month, according to the U.S. Commerce Department's report on Aug. 26. While the gain in sales was definitely a positive development, it came on the heels of two straight months of major downward revisions to sales numbers for May and June, so it's important to keep the overall number in perspective. Even so, said NAHB Chief Economist David Seiders, "We are cautiously optimistic that home sales are approaching a bottom, and that the newly enacted first-time home buyer tax credit will help stimulate sales and provide crucial support for a market turnaround." Commerce's report indicated that the inventory of new homes for sale fell to 416,000 units in July, which is the lowest number reported since April of 2007. This reflects a 10.1-month supply at the current sales pace, down from a 10.7-month supply in June. See our press release for additional info, or view the government's report online. Contact Paul Lopez (x8409) for help with media inquiries.
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NAHB has developed two new resources to help HBAs
 inform and educate their members about the $7,500 first-time home buyer tax credit so that home builders and their affiliates can in turn promote this great incentive to consumers:
1. Tax Credit Print Ad for Members
HBAs can place this in member magazines, newsletters or on members-only sections of their Web sites to spread the word about the credit, the consumer Web site at www.federalhousingtaxcredit.com, and the other resources available from NAHB to help promote the credit to consumers.
2. PowerPoint Presentation on the Housing Act and Tax Credit
EOs around the country are being asked to explain the housing act and tax credit to their members, so NAHB created a PowerPoint to help you.
For more information, or help with accessing these materials, contact Gwyn Donohue, x8447, or Brooke Fishel, x8061.
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NAHB's latest Multifamily Rental Market Index,
 which gauges builder confidence in the rental apartment market, dipped in the second quarter of 2008. On the supply side, builders reported fewer multifamily starts than during last year's second quarter. The component of the MRMI tracking market-rate rental apartment starts was down from 52.9 in last year's second quarter to 38.1 in this year's second quaarter. According to NAHB Chief Economist David Seiders, "An oversupply of housing inventory in general, combined with systematic job losses, is starting to take a toll on the rental housing market." He noted that even in markets where demand for rental units is relatively strong, problems in the financial markets are making it difficult for multifamily developers to get the capital they need for new apartment construction. Asked to define their expectations for conditions in the next six months, multifamily developers were more optimistic regarding market-rate rentals than for affordable apartment rentals, but still considerably less optimistic for both categories in comparison to confidence levels from a year ago. See our press release and the MRMI tables for more information, or contact Ann Marie Moriarty, x8350.
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Resolutions in the pipeline for the Fall Board Meeting
will soon be available for your viewing online, along with Resolution Committee Chairman Jim Sattler's official memo that summarizes each proposal for the NAHB Board of Directors. To date, just one resolution and two recommendations have been submitted for consideration at our meeting in San Diego this month. These include:
1. Fair Labor Standards Act and Overtime Pay: This resolution, proposed by the High Production Home Builders Council, calls on the Department of Labor to issue a formal opinion that would exempt individuals employed to supervise and coordinate construction activities on site (often referred to as "construction superintendents") from overtime rules under the Fair Labor Standards Act. Staff contact: David Jaffe (x8317).
2. Amending Qualifications for NAHB Directors: This recommendation, proposed by the HBA of Richmond, calls on NAHB to amend its bylaws to allow one additional employee of a member company who is not the primary member to be eligible for election and service as an NAHB Director or Alternate Director when the primary member is also serving as an NAHB Life Director or NAHB Senior Life Director. Staff contact: Melissa Leighton (x8251).
3. Schedule for NAHB Board Meetings: This recommendation, also proposed by the HBA of Richmond, calls on NAHB's leadership and Board of Directors to schedule future NAHB Board meetings on weekends rather than on weekdays. Staff contacts: Melissa Leighton (x8251) and Mark Pursell (x8477).
The full-text of each of these proposals will be available online this week; contact Jay Shackford (x8406) for more information.
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An NAHB survey on multifamily green building practices
 reveals that the vast majority of builders and developers (89% of respondents) are installing energy-efficient appliances and lighting in their multifamily communities at this time. While 79% are using windows with Low-E glass, 64% are using recycled and recyclable products, and 50% are using significantly more insulation than required by the building code (70% on the West Coast). The majority of survey respondents (74%) also indicated that buyers and renters are willing to pay more for green amenities – although the median additional amount they're willing to pay is only about 2%. For information on NAHB's ongoing green building efforts, including the development of a new National Green Building Standard, please contact Calli Schmidt (x8132). For more information on the multifamily survey, contact Ann Marie Moriarty, x8350.
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Reminder: Register now for the 2009 IBS!
 Registration for the 2009 International Builders’ Show (IBS) in Las Vegas on Jan. 20-23 — the single most important industry event of the year — is now open. The 2009 IBS will feature more than 1,700 exhibitors showcasing their latest products and services. It will also feature more than 250 education sessions and programs designed to help members stay current on industry trends and issues. Be sure to visit the www.BuildersShow.com Web site for all the exciting details and for information on different registration options.
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