| June 29, 2009 |
By Joe Robson
NAHB Chairman and
Jerry Howard
NAHB President and CEO |
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Calling for new guidelines to address the issue of low-ball appraisals,
NAHB issued a public statement this week explaining why the use of foreclosed and distressed sales as comparables is problematic and needlessly drives down home values.
 Appraisers are often only required to conduct exterior inspections of properties that are being used as comparables because they are normally unable to enter these homes and examine their interiors, said NAHB Chairman Joe Robson. But too often, properties that have been subject to foreclosure or distressed sales have issues related to deferred maintenance or internal damage that an external inspection simply cannot reveal. Proper regulatory guidelines could address this concern, Joe explained. Specifically, in neighborhoods where comps include a large number of short sales or foreclosures, appraisers should have the option of expanding the geographic area or extending the time frame for eligible sales to get a more representative basket of area home values.
Currently, improper or insufficient adjustments to the comparable values of foreclosed and/or distressed homes often result in the undervaluation of new sales transactions. "This practice must be corrected because it contributes to the continuing downward spiral in home prices, forestalling the economic recovery," Joe noted. NAHB also made a point of mentioning appraisal problems as one of the central issues that have held back new-home sales in our latest press release. For more info, contact Bill Renner at x8597.
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A fire sprinkler bill signed by the Texas governor
 this week will prohibit any jurisdiction, city or municipality in the state from requiring home owners to install fire sprinklers in one- or two-family dwellings built after Dec. 31, 2008. In addition to not forcing Texas home owners to spend thousands of dollars towards a system that may never operate over their home's lifetime, the bill also rescinds any local jurisdiction's ordinance mandating fire sprinklers that was approved on or after Jan. 1, 2009. (Those ordinances on a jurisdiction's books prior to that date are allowed to remain in effect.) Jurisdictions wishing to provide an incentive to the home buyer to have a fire sprinkler system installed must pass a city ordinance that can only require builders to offer an option to buyers to install the sprinklers for a fee. The bill also allows home owners who voluntarily elect to install a multi-purpose piping fire sprinkler system in their home the ability to have the plumbing contractor perform the installation. Texas joins North Dakota, Montana and Idaho as the fourth state to pass legislation that prohibits mandating fire sprinklers in one- and two-family dwellings. Contact: Steve Orlowski, x8303.
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The pace of new-home sales was virtually unchanged in May
 from the previous month, according to figures released by the U.S. Commerce Department on June 24. The report noted a seasonally adjusted annual pace of 342,000 sales in the month, which was down 0.6% from April. The good news was that inventories of unsold units continued to shrink for a 25th consecutive month in May, declining 2.3% to 292,000 units. This is a 10.2-month supply at the current sales pace. Regionally, only the South posted lower numbers for May, with an 8.5% decline as the West posted a 1.3% gain, the Northeast, a 28.6% gain and the Midwest, an 18.6% gain. According to NAHB Chief Economist David Crowe, the latest report "provides further evidence that the recovery is going to be a slow one as the housing market continues to bump along, trying to find a bottom." Read our press release or see the government's report online. Contact Paul Lopez (x8409) for help with media inquiries.
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A favorable Supreme Court decision
was handed down on June 22 in an important environmental case for which NAHB supplied an amicus brief. In Coeur Alaska v. Southeast Alaska Conservation Council, the Court ruled by a 6-3 majority that a single discharge of pollutants did not require two permits under the Clean Water Act. Environmental groups had sought a ruling that would have required a land owner to obtain permits from both EPA (or a state delegated with permitting authority) and the Army Corps of Engineers for a single addition of fill material.
The Court also made clear that effluent limitation guidelines (ELGs) – technologies to control pollutant discharges which are conditions in EPA/state Section 402 permits – have no application to a section 404 permit issued by the Corps for the discharge of fill material. This is a critically important point, because EPA is currently in the process of developing an ELG for construction that will be issued by the end of this year. In short, any construction ELG from EPA will NOT also apply to a Corps Section 404 permit. Writing the majority opinion, Justice Kennedy said that "a two-permit regime would cause confusion, delay, expense and uncertainty in the permitting process." Going forward, while it remains time-consuming and expensive to obtain Clean Water Act permits, a contrary decision from the Court would have made it far more difficult to navigate the already costly and burdensome Corps and EPA bureaucracies.
The Coeur Alaska case concludes a highly successful Supreme Court term for NAHB. In the four environmental cases that the high court reviewed on the merits, NAHB's amicus briefs tracked the high court's majority opinions in each matter. Contact: Duane Desiderio, x8146.
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Find out what you need to know about lead paint
 and how to stay in compliance with the EPA's new rule governing this substance with comprehensive resources that are available free of charge to NAHB members at www.nahb.org/leadpaint. The EPA's rule, which applies to the work of professional remodelers in pre-1978 homes where there is lead-based paint, goes into effect on April 23, 2010. Our dedicated Web page will tell you how to become a certified firm or certified renovator, how to become a trainer or training provider and what EPA lead paint training courses are available, as just a few examples. In addition, the site provides you with sample contract language that you can use to minimize liability on jobs you may be working on prior to the rule's effective date. The information at www.nahb.org/leadpaint will be regularly updated as new data becomes available, so check back often. Read more about NAHB's lead paint resources in NBN Online, or contact Kelly Mack, x8451.
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FREE upcoming webinars on storm water and home technology
 are scheduled for the month of July, and NAHB members will find it well worth their time to participate in these events. You may want to put them on your calendar right now:
July 22, from 2:00-3:00 p.m. – NAHB Webinar on Home Technology
Sponsored by NAHB in conjunction with the Consumer Electronics Association (CEA) and the Custom Electronics Design & Installation Association (CEDIA), this free event will focus on the findings of the CEA's "7th Annual State of the Builder Technology Market Study" and what they mean for builders, remodelers and their home technology partners and contractors. A panel of experts representing different segments of the industry and home technology will offer their views on emerging trends. Register online here, or contact Agustin Cruz, x8472.
July 29, beginning at 1:00 p.m. – NAHB Webinar on Storm Water Compliance
Presented by NAHB's Land Development Committee with support from the Environmental Issues Committee, this event will give participants an overview of the regulatory framework surrounding storm water permitting and provide practical tips on how to submit storm water permit applications, develop storm water pollution prevention plans and survive inspections. Register online here, or contact Jennifer Jones, x8469.
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Have you checked out NAHB's channel on YouTube?
 That's right, NAHB now has its own page on the popular video sharing Web site known as YouTube. It's one more way to make sure our messages are getting out to young and first-time home buyers as well as techno-savvy home builders. By visiting www.YouTube.com/NAHBTV, you can access videos featuring:
-HUD Secretary Donovan's recent address to NAHB's Board of Directors, when he announced his agency's new guidelines on monetizing the first-time home buyer tax credit.
-Instructions on how to get started with NAHB's Green Building Program.
-Answers to frequently asked questions about the first-time buyer tax credit.
-Information on building modular and concrete homes from NAHB's Building Systems Councils.
That's only a snapshot of the many resources available to you through this exciting new channel. For more information on our YouTube offerings, or about how to post NAHB's videos on your Web site, contact Brooke Fishel, x8061.
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The Monday Morning Briefing will not publish on July 6,
 immediately following the July 4 holiday weekend. Please also note that NAHB offices will be closed for the federal holiday on Friday, July 3. Look for the next edition of this report in your e-mail on Monday, July 13, when NAHB will be gearing up for the Summer Executive Board Meeting here in Washington. Till then, here's wishing you a safe and pleasant Fourth of July weekend!
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