| January 11, 2010 |
By Joe Robson
NAHB Chairman and
Jerry Howard
NAHB Chief Executive Officer |
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The IBS Partnership Pavilion is receiving an enthusiastic response
from both financing providers and NAHB members who are signing up to participate in this innovative forum aimed at connecting builders and developers with new financing sources. Participants will also be invited to attend a helpful new session at IBS, details of which have recently become available.
 The session, “Obtaining Financing in Today’s Real Estate Marketplace: What Builders and Developers Need to Know and Do,” will feature three funding experts:
- John Bonner, President, First Continental Investment Co.
- Peter Hazeloop, Managing Dir., Michael P. Kahn & Assoc.
- Rand Roan, Principal, Apogee Partners
NAHB member Steve Lawson will moderate the session, which will be conducted as a workshop with extensive time devoted to answering questions from builders and developers in the audience. The session is scheduled for Thursday, Jan. 21, at 9:00 AM in room North 246 of the Las Vegas Convention Center.
It's not too late – Sign up now to participate in the Partnership Pavilion!
The Partnership Pavilion has attracted applications from members with a wide range of projects – from multifamily and student housing, to single-family and infill, to large master-planned communities. Financing requests so far have ranged from about $1 million to $24 million.
Here’s how the program works:
- Participation is free, easy and open exclusively to NAHB members attending IBS.
- Applicants simply submit basic information online about their company and the project(s) for which they need funding.
- Participating financial firms will review builders’ information and, where appropriate, schedule one-on-one meetings during IBS in the pavilion’s private meeting spaces.
- In addition, financial advisors will be on-site to help builders explore funding options.
Members who are interested in participating in the pavilion should qualify prior to the show by providing specific information on their proposed projects. For further information on this process, go to www.nahb.org/partnership.
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NAHB has claimed a legal victory
 with the U.S. District Court in Washington, D.C.'s decision to keep an important Clean Water Act lawsuit in its current venue. In the case at hand, NAHB is challenging the government’s determination that the Santa Cruz River is a traditional navigable water. EPA had sought to move the case to Arizona, where the Santa Cruz is located, but the judges’ Dec. 30 ruling underscores the fact that designating Arizona’s Santa Cruz River as a traditional navigable water, subject to federal jurisdiction under the Clean Water Act, has ramifications beyond the river itself and would potentially affect similar water bodies around the country. In keeping the case right where it is in the nation's capital, the court agreed with NAHB, saying “the questions of federal law and alleged procedural violations at issue in this case have broad implications for the application of the [Clean Water Act] nationwide . . . . The validity of the determination carries significance beyond Arizona.” Read more in the next Nation's Building News Online, or contact MondayMorningQuestions@nahb.org.
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New NAHB research on transit-oriented development
 indicates that, absent a major shift in public attitudes toward using public transportation and driving less, there are limits to how far these kinds of projects can go in reducing traffic flow on local streets and highways. The study found that relatively few home buyers and renters choose a neighborhood because of its proximity to public transportation. Based on data from the Department of Housing and Urban Development and the U.S. Census Bureau, the study, "Household Type, Housing Choice and Commuting Behavior," discovered that married couples with children infrequently consider public transportation when selecting a new neighborhood, and that they are more likely to own more cars and travel more miles to work than other households. Moreover, married couples are more likely to settle in a particular community because they like its appearance or because they have found the home they are looking for in that neighborhood. Meanwhile, one-person households are much more likely to care about finding a location near where they work than anything else. The study also investigated the relationship between commuting patterns and the size of city blocks. Read more in the latest edition of Nation's Building News Online. Send questions to MondayMorningQuestions@nahb.com.
WHAT THIS MEANS TO YOU: Results of NAHB's latest study have significant implications for land use planning. For example, they suggest that different types of housing are needed to serve different types of households, and that the appropriate mix of housing in a transit-oriented development may differ from the mix needed to serve the local labor market as a whole.
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Legislative update: healthcare, carried interest, energy efficiency
 Senate Healthcare Reform Bill – After weeks of debating health care reform on the Senate floor and months of piecing legislation together, the Senate has passed H.R. 3590, the Patient Protection and Affordable Care Act. The bill passed on party lines by a vote of 60-39 early on the morning of Christmas Eve. While this vote signifies initial completion in the Senate, health care reform still must clear several more hurdles before reaching President Obama’s desk. Democratic Leadership in both bodies of Congress are now "conferencing" together to resolve vast differences in their respective bills. It is their hope that final legislation will be passed by Congress and sent to President Obama in time for the State of the Union Address, rumored to be the first week of February. NAHB offered its strong opposition to the final Senate legislation, primarily due to a last minute provision included in the "manager's amendment" that excludes the construction industry from a small business exemption that relieves small employers from the burdens associated with healthcare reform. The association will remain heavily engaged in the coming weeks to ensure that this specific provision is stripped from the final legislation. Read more here.
LIHTC / Carried Interest Proposal – The House recently passed H.R. 4213, legislation that contains an extension of the LIHTC "exchange" program. However, the House bill would also allow the 45L new energy efficient homes tax credit to expire and would increase the tax on income generated by a so-called carried interest in a partnership from the current capital gains rate of 15% to ordinary income rates as high as 35%. The Senate has rejected the carried interest proposal in the past, and the chamber has proposed using a different revenue offset to pay for its tax extenders legislation, putting it at odds with the House on how to proceed. Read more here.
Bipartisan Home Energy-Efficiency Bill – With the strong backing of NAHB, Reps. Dave Reichert (R-Wash.), Ron Kind (D-Wash.), Earl Blumenauer (D-Ore.), Geoff Davis (R-Ky.), Tom Perriello (D-Va.) and Chris Lee (R-N.Y.) have introduced H.R. 4226, the Expanding Building Efficiency Incentives Act of 2009. NAHB worked closely with the lawmakers as they crafted the comprehensive package of energy efficiency tax incentives designed to reduce energy costs for families and businesses, promote innovation and conservation and create future energy jobs. The bill contains five key tax incentives for energy-efficient building. Read more here.
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NAHB has responded to an unwelcome EPA proposal
 to send builders and developers a 61-page survey seeking extensive technical information on stormwater management, by submitting 40 pages of our own detailed comments. The agency's Information Collection Request, developed in anticipation of a proposed federal post-construction storm water management rulemaking, is "premature, lacks justification, is extremely burdensome and will not result in useful data," NAHB said. Along with several other concerns that we have is the fact that the survey in question, as currently written, does not meet procedural or data quality standards and will be overly burdensome for respondents who would be compelled to complete and return the questionnaire. In its current form, this survey is expected to take more than 40 hours to complete, according to EPA's own estimates. Read more about our response to the EPA and get a schedule of planned "listening sessions" that the agency plans to hold, in which NAHB members can participate, in the next edition of Nation's Building News Online, or contact MondayMorningQuestions@nahb.org.
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New regulations covering emissions of carbon dioxide
 and other greenhouse gases must not hinder home builders' ability to provide affordable, energy-efficient housing due to the indirect costs of complying with these rules, NAHB warned the EPA in official comments recently submitted to the agency. In our Dec. 28 response to the Prevention of Significant Deterioration and Title V Greenhouse Gas Tailoring Rule, NAHB acknowledged that EPA's proposed rulemaking does not directly affect home builders and developers because industry emissions are significantly smaller than those from large commercial enterprises, utilities and other businesses that will have to comply with these new Clean Air Act regulations. However, "Because those industries directly regulated under the [Clean Air Act] will pass along compliance costs, any additional regulations will hinder the ability of our members to provide affordable and energy efficient housing," said NAHB. We also pointed to other initiatives that can have a more significant impact on reducing carbon emissions from residential and commercial buildings, including energy retrofits and incentives and rebates for more resource-efficient construction techniques and products. And, we reiterated NAHB's desire to work with the EPA as it develops its action plan to boost energy savings and create green jobs. For more information, contact MondayMorningQuestions@nahb.org.
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New-home sales dropped in November
 according to the latest figures released by the U.S. Commerce Department just before Christmas. An 11.3% decline brought the seasonally adjusted annual rate for sales of newly built, single-family homes to just 355,000 units, which was somewhat weaker than expected. "Today's numbers are an indication of the continued fragility of the new-homes market amidst ongoing economic weakness," said NAHB Chairman Joe Robson in NAHB's press release. "They also show how important it was that Congress moved when it did to help spur housing demand by extending and expanding the home buyer tax credit. We hope to start seeing the intended effects of that move on buyer demand in early 2010 as families determine their purchasing plans following the holidays." Sales fell in three out of four regions in November, with only the Midwest reporting a gain, of 21.4%. Declines of 3.3%, 21.1%, and 9.2% were recorded in the Northeast, South and West, respectively. Meanwhile, the number of newly built homes on the market continued to decline in November, falling 2.1% to 235,000 units. This marked a 7.9-month supply at the current sale pace. Read NAHB's press release or the government's report online.
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Tune-in to a Webcast on green building litigation this Tuesday,
 and find out about the latest challenges, solutions and green building construction litigation developments and how to steer clear of a claim against your company. Expert panelists, including NAHB Director of Legal Research David Crump, will discuss effective drafting, handling of product liability claims, marketing issues, insurance coverage concerns, available insurance products, the NAHB National Green Building Program and relevant developments in federal, state and local governments. The Webcast is being conducted by DRI, the Chicago-based national organization of defense trial lawyers and corporate counsel. For more information and to register, go to www.dri.org/open/Webcasts.aspx, or call 312-795-1101. To read the seminar brochure online, click here (in PDF format). Note, DRI does charge a fee for this Webcast, which is $150 for members of that organization, $180 for non-members.
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Nearly 7 million visits to NAHB's consumer Web site
 on the home buyer tax credit were logged in 2009, a sure sign that our efforts to get the word out about this newly expanded buyer incentive are gaining traction. The FederalHousingTaxCredit.com site was created some time ago to provide timely information on the original first-time home buyer tax credit to consumers. We updated the site to reflect the extended and expanded tax credit on the very same day that President Obama signed legislation into law to make those changes a reality. Since then, our site has become known as the most comprehensive and user-friendly resource for consumers who want to know if they qualify for the credit, how to access funds from the credit upfront to use at the closing table, and more. It's a great location to send your potential clients who may be asking you for clarification on the credit's parameters, too. Send questions to: MondayMorningQuestions@nahb.org.
WHAT THIS MEANS TO YOU: NAHB has developed an essential resource for helping consumers understand the home buyer tax credit and their eligibility to claim it. In doing so, we have also created a one-stop shop for answers to your clients' questions and concerns. Moreover, because our site is recognized as a leading source of information on the tax credit, many media outlets are citing it in their own reports, which should further help to drive home sales in local markets.
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Congratulations to winners of the 2009 SAFE Awards,
 who will be appropriately honored at a Jan. 20 ceremony during the International Builders' Show in Las Vegas. NAHB's Safety Award for Excellence (SAFE) is designed to recognize the achievements of builders and trade contractors who have developed and implemented high-quality construction safety programs, as well as government officials who have made successful efforts to advance safety in the home building industry. 2009 SAFE Award winners and finalists have just been announced. Special recognition goes to NAHB Safety Professional of the Year Tim McDougal of Richmond American Homes in Denver, Federal State Plan OSHA Official of the Year John Able in Wethersfield, Conn., and Leadership in Construction Safety Winner Connie Wilhelm of the HBA of Central Arizona. For a complete list of winners in all of the other SAFE award categories, click here. For more information, contact MondayMorningQuestions@nahb.org.
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Look for the next Monday Morning Briefing on February 1...
 We hope all of our readers are planning to attend the upcoming International Builders' Show in Las Vegas just one week from now. As preparations for this monumental event get underway, The Monday Morning Briefing will not appear for the next two weeks. But stay tuned for all the highlights of the IBS and news from the Board of Directors meeting when this report returns on February 1. Thanks to everyone for your readership and comments this past year!
Please also note that NAHB offices will be closed for the Martin Luther King Day federal holiday on Monday, Jan. 18.
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