| August 10, 2009 |
By Joe Robson
NAHB Chairman and
Jerry Howard
NAHB President and CEO |
|
|
A major campaign to focus congressional attention on housing
is just getting underway at NAHB, and all of our members are strongly urged to actively participate.
 August is an opportune time for NAHB's 200,000 members to reach out to their congressional representatives as lawmakers return to their home districts for the summer recess. Recognizing the critical need to take advantage of this opportunity in order to ensure that the first flickerings of recovery in the housing market and economy aren't extinguished, NAHB's Executive Board unanimously agreed this week to launch an aggressive grassroots effort called Revive Housing - Restore America. It is critical that every NAHB member lend his or her voice as a constituent in this effort, by personally communicating with your elected officials while they are home this month. Our message will focus on four aspects of the housing crisis. Specifically, we will be calling on Congress to:
1) Extend the home buyer tax credit for another year and make it available
to all eligible buyers (not just first-timers);
2) Urge housing regulators to bring common sense to the appraisal process;
3) Compel regulators to make it easier to access acquisition, development
and construction financing; and
4) Support pending legislation to expand Net Operating Loss (NOL) carryback
provisions for businesses.
Each of these actions would spur significant job growth, which will be a central message of our campaign. For example, if Congress acts to extend the tax credit program, it would spur 383,000 additional home sales, including 80,000 housing starts down the road. This stimulus alone would create nearly 350,000 jobs over the coming year – which is exactly what the economy needs right now. Readers of this report will receive more details on the campaign, which we hope will be a massive grassroots effort, over the coming weeks. Your participation is absolutely necessary for our success, so please respond accordingly to ongoing communications from NAHB and your state/local HBA, which will be coordinating group visits to area congressional offices. Contact: Molly Murray, x8282.
|
 |
Urging bank regulators to take prompt action on faulty appraisals,
 NAHB has coordinated a joint letter co-signed by the American Bankers Association, Independent Community Bankers of America and the Mortgage Bankers Association that should now be on the desks of the Comptroller of the Currency, FDIC Chairman, Fed Chairman, Acting Director of the Office of Thrift Supervision and leaders of the Senate Banking and House Financial Services Committees. The July 27 correspondence asks banking agencies for guidance to instruct appraisers on the proper procedures for using distressed or foreclosed properties as comparables in new single-family home appraisals.
"We have noticed that some appraisers are frequently using distressed and foreclosed property sales as comparables in conjunction with appraisals on single-family home sales without properly adjusting the comparable property values to reflect the relative conditions of the properties," the letter says. This practice often results in undervaluing new properties for sale and "contributes to the continuing downward spiral in home prices, forestalling the economic recovery." NAHB and the other organizations signing the letter asked for prompt action from the agencies responsible for bank regulation to correct the problem, including 1) guidance that encourages appraisers to expand the area and/or time frame in which comparable properties are selected; and 2) guidance that emphasizes that an appraiser should further investigate and consider the overall condition of a property and the specific factors related to a foreclosure or distressed property sale in determining value when a foreclosed property is used as a comparable. Read our letter here. For more, contact Bill Renner, x8597.
[return to top]
|
|
More multifamily developers should be able to refinance
 their properties, thanks to a July 29 decision from HUD. Responding to concerns voiced by NAHB, the department said it will extend for another six months a waiver enabling multifamily developers to use the FHA's Section 223(f) program to finance properties that have been operating for less than three years. (Typically, this program is only available to properties that have been operating for at least three years.) HUD's Mortgagee letter 2009-22 said that the waiver was being extended for the purpose of "providing liquidity to recently constructed or substantially rehabilitated, self-sustaining properties that are unable to secure permanent long-term financing due to the freeze in the capital markets."
Recognizing the need to provide liquidity to the multifamily marketplace, HUD initiated the waiver of the Section 223(f) three-year rule in February. Without HUD’s latest action to extend that waiver, it would have expired this month. In addition, HUD responded to NAHB's concern that some of the requirements and restrictions contained in the February waiver notice that are not normally required of Section 223(f) loans posed unnecessary obstacles to participation in the program. Specifically, in its extension of the waiver, HUD eliminated a prohibition against the participation of projects that had previously applied for mortgage insurance under other HUD programs and then had withdrawn their application. At this time, properties with a certificate of occupancy less than three years prior to the date of application for a firm commitment are eligible for the waiver. For more information, please contact Claudia Kedda, x8352.
[return to top]
|
|
NAHB continues seeking cosponsors for NOL bills
that would expand the Net Operating Loss carryback provision passed earlier this year as part of the American Recovery and Reinvestment Act (ARRA). The ARRA provision provides for a five-year carryback of 2008 NOLs for businesses with average gross receipts of no more than $15 million in 2006, 2007 and 2008. NAHB supports House bill H.R. 2452, called the Net Operating Loss Carryback Act, which would eliminate the $15 million cap and allow 2009 losses to also be eligible for the expanded carryback. And in the Senate, we support companion bill S. 823. Both bills would prohibit any entity that accepted funds from the Troubled Asset Relief Program (TARP) from utilizing the provision. NAHB has been working through a coalition of industry groups to build strong co-sponsorship for both of these bills so there is solid evidence of bipartisan support when an opportunity for moving them forward arises. NAHB members, you can help. Confirm that your member of Congress is a cosponsor of these bills by visiting www.loc.gov/thomas and entering the bill number in the search field. If your lawmaker is NOT a sponsor, please contact them immediately and urge that they join the co-sponsorship list. Contact: Greg Brown, x8421.
[return to top]
|
|
More onerous regulations for new development won't help
 clean up the Chesapeake Bay, NAHB member Marty Mitchell told an influential Senate subcommittee this week. Speaking on behalf of his family's home building company, Mitchell & Best, Marty told the Senate Environment and Public Works Committee's Water and Wildlife Subcommittee that it is the emphasis on new development that has led to the failure of the cleanup effort known as the Chesapeake Bay Program. That program's leaders already acknowledge that they will miss the 2010 deadline for significantly reducing pollution in the Bay. "If progress is to be made, all pollutant sources must play a role in making reductions," Marty said, adding that innovative new practices and storm water management regulations under the federal Clean Water Act mean that construction practices today play a negligible role in introducing pollution into the estuary. For more on Marty's testimony, check out the next edition of NBN Online, or contact Calli Schmidt, x8132.
[return to top]
|
|
Residential remodeling activity improved in the 2nd quarter
 across all categories of NAHB's latest Remodeling Market Index (RMI), released on Aug. 6. The RMI posted gains in both the component measuring current market conditions and the component gauging future expectations. In addition, indicators for current market conditions improved across all regions. A significant portion of the market improvement was derived from the measure for major additions and alterations (jobs worth $25,000 or more), with smaller growth observed in the indicators for minor additions and alterations and for maintenance and repair work. Regarding future expectations, remodelers reported growth in calls for bids, the backlog of remodeling jobs on their rolls, and the number of appointments for proposals in the second quarter compared to the first quarter of this year. Commenting on the RMI results, NAHB Chief Economist David Crowe noted that "Conditions for this quarter have returned to nearly the levels of the same time last year. The uptick in the expectations component suggests this trend will continue as the entire housing market begins its recovery." See the RMI tables online or read NAHB's press release for more. Contact: Gopal Ahluwalia, x8480.
[return to top]
|
|
Thousands of housing professionals signed up for IBS last week,
 the first week in which online registration and housing were in operation for the largest trade show of the year. This favorable response may just be due to the great deals that are being offered for attendees this time around. With the 2010 International Builders' Show set to take place in Las Vegas from January 19-22, this will be the first time ever that NAHB members can register for a complimentary 4-day exhibit pass (note, you must register by Dec. 11, 2009 to take advantage of this offer). Another very tempting reason to register early for the IBS is the fantastic hotel rates that are now being offered within the NAHB hotel block – as in, rooms for $32-$199 per night! These extremely discounted rates are available online, but are only guaranteed for the month of August, and availability is limited. In other words, you must book early to secure the best rates. But keep in mind that your room deposit will not be charged until December, so you have until then to cancel your room at no charge. There's also the first-time NAHB member attendee rate of just $100, which is a full registration that gets you into all the exhibits AND all the great educational sessions for the entire run of the show. And finally, for the first time, IBS will also offer one- and two-day education passes. These passes permit you to walk the exhibit floor all four days and give you unlimited access to one day or two days of education seminars. Even better, spouses can tag along for free! Want more information? Ready to sign up? Please visit www.BuildersShow.com for everything you could possibly need to know.
[return to top]
|
|
Webinars on green appraisals, land development & 50+ housing
 are being offered over the next couple of weeks, so take a look and register soon!
Aug. 12 - Appraisal Institute webinar on green homes (2 p.m. EDT)
NAHB Green Building Subcommittee member Dave Porter
will be one of the presenters. Get more info
and register here.
(Note: $30 fee for Institute members, $75 for others)
Aug. 17 - Land Development Committee FREE webinar (2:00 p.m. EDT)
Examining emerging opportunities in today's market.
Contact: Jennifer Jones, x8469
Aug. 18 - Selling to 50+ Buyers in a Down Economy webinar (2:00 p.m., EDT)
Sponsors: NAHB 50+ Housing Council and National Sales & Marketing Council
Contact: Jeff Jenkins, x8292
(Note: this event is free to 50+ Council members, NSMC members and
affiliated local councils; there is a $69 fee for other NAHB members
and a $100 fee for non-members.)
[return to top]
|
|
Resolutions for consideration at the Fall Board meeting
 should be submitted to NAHB on or before Sept. 3, 2009, in accordance with the NAHB bylaws. The intent of this requirement is to provide local HBAs and association leaders with drafts of proposed resolutions/ recommendations prior to the meeting to assure the fullest possible discussion of policy proposals at the grassroots level and among directors as part of the policy review process. A memo explaining the deadline and process for submitting resolutions was sent by Resolutions Committee Chairman Tom Woods to NAHB Directors, Executive Board members and state and local HBA Executive Offficers on June 18. As outlined in that memo, resolutions/recommendations submitted after the deadline will still be considered at the upcoming Board meeting, but will require a two-thirds vote (rather than a simple majority) for passage by the Board of Directors. A summary of resolutions that have been submitted by the Sept. 3 deadline will be posted on NAHB.org; stay tuned to this report for a link to that summary as soon as it becomes available. Please direct any questions about the resolutions-review process to Jay Shackford at x8406.
[return to top]
|
|
|
