Monday Morning Briefing Letter - 06/18/2007 (Plain Text Version)

By Brian Catalde, NAHB President and
Jerry Howard, NAHB Executive VP and CEO

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Just in time to help defeat a bad immigration bill,

NAHB's Spring Legislative Conference drew 1,257 of our members to Capitol Hill on June 6, exactly one day before this controversial legislation was to be voted upon by members of Congress.

Talk about perfect timing! Our lobbying efforts certainly helped ensure that the wrong kind of immigration reform was stopped in its tracks last week. In all, our members conducted approximately 300 meetings with their representatives in Congress on June 6, with a primary topic of conversation being the need for comprehensive and fair immigration reform and why the bill then before Congress just didn't measure up. When it came right down to it, a total of 50 Senators supported NAHB in voting against "cloture," which would have cut off debate and prevented necessary amendments to the legislation from being offered. As a result, the bill's progress was stopped cold – at least for the time being. Special thanks goes to all of the Legislative Conference attendees who helped us achieve this very necessary win — in fact, this was the second-highest attendance on record for our most important grassroots lobbying event of the year.

Breaking News: At press time, we learned that the Senate is poised to reconsider immigration legislation this week. More details in the next Monday Morning report …

The Legislative Conference also provided a perfect launching date for BuilderLink, which is NAHB's updated national grassroots program. BuilderLink replaces our previous Congressional Contacts grassroots mobilization program for key federal housing issues in Congress. The change follows a comprehensive assessment of the Congressional Contacts program, which identified needed improvements to its overall structure and functionality. BuilderLink will reach beyond the relatively small pool of NAHB members who enrolled in the previous program and will consistently engage key NAHB leadership, members and staff in grassroots activities.

NAHB Member Benefit: More than just a new name and a fresh look, BuilderLink will do more to educate NAHB members about the issues that matter most to the housing industry (for example, immigration reform), connect participants to their members of Congress who oversee these issues, and provide them with the materials and resources necessary to convey the right message to Congress at the right time. Efforts are also underway to integrate the new program into state and local builders associations, in part through pilot grassroots activities in several key areas of the country. For more information on the immigration reform bill, please contact Jenna Hamilton at x8407. For more on BuilderLink, contact Jessi Boyce at x8334.

Two GOP presidential candidates spoke to the NAHB Board

last week, bringing to three the total number of contenders in the 2008 race who have embraced the opportunity to address home builders. A special session of the Board of Directors was called on Thursday, June 7, to welcome former Massachusettes Gov. Mitt Romney, and on June 9, former Wisconsin Gov. Tommy Thompson also addressed the board. Readers of this report may recall that Democratic presidential candidate Sen. Chris Dodd (D-CT) spoke to our Board during the IBS in Orlando this February. In fact, NAHB, which is officially a nonpartisan association, has formally invited all of those running for president in the next election to speak to our membership during meetings of the Board of Directors. The fact that Romney, Thompson and Dodd have all taken us up on the offer is a good indication of the stature that NAHB wields in Washington, and the respect that savvy politicians have demonstrated for our powerful membership. Also during Spring Board week, NAHB's leadership met with Federal Reserve Chairman Ben Bernanke, in part to communicate our concerns about the current state of the housing market. For his part, Bernanke has publicly noted on several occasions his estimation that the subprime mortgage market will have only a limited effect on home sales and production going forward and that the overall economy is not in danger of severe repercussions from the subprime mess. See the next NBN Online for more information on our guest speakers during the Fall Board meeting. [return to top]

NAHB will create a national green building program

that will provide a cost-effective alternative for state legislatures and home builders nationwide who are looking to avoid expensive and unnecessary LEED-H green building fees and mandates in their jurisdictions. At its spring meeting, the NAHB Board of Directors unanimously approved an emergency budget request for a little over $2 million that will help create a sophisticated, nationally branded program that positions NAHB and its members as the foremost advocates for green building. Making the case for this budget request, NAHB Vice President/Secretary Bob Jones - who is the Senior Officer with oversight for green building - explained that the U.S. Green Building Council has already successfully lobbied for green mandates in retail and office buildings and government facilities nationwide, generating profitable certification fees along the way. Now, the USGBC has set its sights on residential construction as a new revenue source. The problem, said Bob, is that complying with LEED-H certification can add more than $13,000 to the cost of building a typical home, while certification fees alone cost at least $2,000 and perhaps $3,500 per house while adding nothing to that home's energy- and resource-efficiency. To date, however, green building legislation has been introduced in 33 counties and states, with 20 of these bills referring specifically to LEED. With state legislators asking us for an alternative to these costly mandates, NAHB has stepped up the development of a new ANSI standard for green building and will now set about establishing a branded national program that will be administered by the NAHB Research Center and overseen by NAHB. For a copy of Bob's presentation at the Board meeting, contact Calli Schmidt (x8132); for more information please contact John Ritterpusch (x8325) or read the next edition of NBN Online.

NAHB Member Benefit: With a national program, home buyers can be assured that their home is truly green, whether they live in Seattle or Savannah, in a condo or a ranch house, and whether they're renovating or buying new. Like the Model Green Home Building Guidelines and National Green Building Standard on which it will be based, this program will take into account a home's lot development, use of resources, energy and water efficiency, indoor environmental quality, durability and ease of maintenance, as well as the builder's efforts to educate home owners. [return to top]

Builders support the VA's Specially Adapted Housing program,

NAHB President Brian Catalde told members of Congress on June 7. In testimony before the Subcommittee on Economic Opportunity of the House Committee on Veterans' Affairs, Brian provided several suggestions for how to expand or improve this Department of Veterans Affairs program in order to better serve the thousands of severely injured veterans whose homes must be modified in ways that will allow them to live independently. While the Veterans Housing Opportunity and Benefits Act of 2006, signed into law last year, did much to improve the Specially Adapted Housing program, Brian advocated additional changes such as streamlining VA paperwork requirements, increasing the grant limits, and authorizing the full use of grants for veterans who live with their relatives. Brian also mentioned that some members of the NAHB Remodelers, a council representing more than 14,000 members, have already applied their skills to put SAH grants to good use, and he encouraged each of the VA's Specially Adapted Housing counselors to take NAHB's Certified Aging in Place Specialist (CAPS) certification training to gain a greater understanding of the remodeling skills necessary to fully utilize those grants. Read NAHB's press release for more, or contact Scott Meyer (x8144) or Bill Renner (x8597). [return to top]

HUD guidance on accessibility requirements

for multifamily developments is welcome news for NAHB members. HUD announced on June 8 that multifamily builders can rest assured they are complying with all applicable accessibility requirements when following the 2006 edition of the International Building Code (IBC) and the 2003 edition of the International Code Council (ICC) A 117.1 Accessible and Usable Buildings and Facilities. This "safe harbor" endorsement was made public by HUD's Assistant Secretary for Fair Housing and Equal Opportunity, Kim Kendrick, during NAHB's Spring Board meeting last week. Read NAHB's press release for more, or contact Ann Marie Moriarty at x8350.

NAHB Member Benefit: NAHB has long advocated for Fair Housing accessibilty requirements for apartments and condos to be included in the building code because HUD's guidelines were unclear and unenforceable by state and local jurisdictions. In March, NAHB met with Kendrick at HUD to express concern that the 2006 IBC was being adopted by state and local jurisdictions without the safe harbor endorsement, and urged the agency to expedite this process. We have now confirmed that, by building to these codes, multifamily builders are assured they are providing accessible housing while complying with HUD's Fair Housing Accessibility Guidelines. [return to top]

New guidance from EPA and the U.S. Army Corps of Engineers

gives builders a little more clarity when it comes to areas that these agencies may regulate under the Clean Water Act. The guidance, which stems from the U.S. Supreme Court's decision in the Rapanos and Carabell Clean Water Act cases, became effective immediately when it was released on June 5. However, the EPA and Corps will accept public comments until December, and NAHB's Environmental Issues Committee members and regulatory staff are currently studying it. The year-long wait since Supreme Court justices asked the agencies to issue this document has translated to further delays for builders awaiting permits – even though the agencies themselves told district Corps offices to continue business as usual in the meantime. In a nutshell, the guidance says that :

1) Areas that will ALWAYS be subject to jurisdiction include traditional navigable waters, wetlands adjacent to traditional navigable waters, and non-navigable tributaries that feed into navigable waters and have at least seasonal (three months') flow.

2) Areas that are likely NOT subject to jurisdiction include swales and waterbodies that exist solely because of erosion (gullies and small washes), ditches without a permanent flow of water and that drain into uplands, and any waterbody or wetland that has already been determined non-jurisdictional in previous court cases.

3) Areas MAY be subject to jurisdiction if they have a "significant nexus to a traditionally navigable water," such as water features that don't fit one of the other jurisdictional categories, and have a "demonstrated and documented" relationship and significantly affect the chemical, physical or biological integrity of the traditional navigable water downstream. When that happens, the agencies can claim jurisdiction over all "similarly situated" land in that area.

For more information, please see the next NBN Online or contact Susan Asmus at x8538 or Tom Ward at x8230. [return to top]

A new lawsuit on Nationwide Permits

has been filed by NAHB to challenge the U.S. Army Corps of Engineers' latest iteration of this program. NAHB contends that the new rules overstep the agency's authority to regulate development under the Clean Water Act (CWA). Specifically, the Corps has exteneded its reach into upland ditches. NAHB v. U.S. Army Corps of Engineers, filed May 24 in the U.S. District Court for the District of Columbia, seeks to pull back the reins on the agency. The case is somewhat ironic, because NAHB has long supported the concept of Nationwide Permits (NWPs), which were intended to streamline the approval process and provide relief from bureaucratic paperwork. Instead, the Corps has made each new version of this program more restrictive, and eroded the benefits that Congress initially envisioned. Now the Corps wants to regulate everything, including ordinary ditches dug on dry land.

NAHB Member Benefit: NAHB is trying to restore common sense to the Clean Water Act's tremendous breadth and scope. Upland drainage ditches, after all, are not wetlands, and they aren't ponds. They are common drainage ditches that are not navigable water. The costs of such overzealous regulations to builders in terms of time and money also translate to significantly higher home prices that unfairly impact new home buyers. In the end, we hope to restore the integrity of the NWP program by obtaining a court ruling that says the Corps has gone too far. [return to top]

NAHB is suing a Central California air pollution control district

in court to challenge the legality of its so-called Indirect Source Rule (ISR), which could easily add thousands of dollars to the cost of new homes in that state. In NAHB v. San Joaquin Valley Unified Air Pollution Control District, we are arguing that the ISR is pre-empted by the federal Clean Air Act, and that the district ignored the necessary procedures before adopting it. Under the Clean Air Act, only states – not local air districts – are given the authority to regulate indirect sources, which in this case are emissions from the tailpipes of construction equipment and motor vehicles related to home construction. ISR requirements are triggered for any new development of more than 50 homes, forcing builders to pay consultants thousands of dollars to calculate possible emissions of particulate matter and nitrogen oxide, mitigate them, and then pay a $1,772 fee per home to address emissions that can't be mitigated. As NAHB President and California home builder Brian Catalde noted, "If the expense resulted in cleaner air, it might be worth it. But unlike some areas, the San Joaquin Valley has already met its maximum emission targets for particles. And it will certainly be ironic when home buyers are forced to purchase less expensive new homes outside the air district and commute back to the area, bringing even more tailpipe emissions with them." Read more in our press release, or contact Duane Desiderio at x8146. [return to top]

Reaffirming an alliance between NAHB and OSHA

for another two years, NAHB First Vice President Sandy Dunn attended an important signing ceremony at the Occupational Safety and Health Administration during NAHB's Spring Board week. Along with Assistant Secretary of Labor for OSHA Ed Foulke, she made it official – NAHB will continue to work with OSHA over the next two years to develop a comprehensive training program that will address the most common safety hazards found during home construction and identify ways to minimize or eliminate those hazards. Sandy also presented the Assistant Secretary with a specially made glass brick signifying NAHB and OSHA's joint commitment to building relationships that will ensure worker safety both now and in the future. Contact Rob Matuga (x8507) for more info.

NAHB Member Benefit: This partnership, which has already yielded many benefits for NAHB members – including the development of our new NAHB Fall Protection Handbook and Video – will ensure the most effective use of our association's resources to address the educational needs of the residential construction workforce, particularly our Spanish speaking workers. [return to top]

Resolutions approved by the NAHB Board of Directors

to become official NAHB policy as of the Spring Board meeting are now available for your viewing online. A total of seven resolutions were approved, including those dealing with the following subjects:

1. Sustaining Long-Term Feasibility of Affordable Housing Projects
2. Performance-Based Standards for Plumbing Products
3. Addressing Mortgage Market and Mortgage Lending Problems
4. Wetlands Resolution
5. Brownfields Redevelopment
6. Extension of Program Authority in Presidentially-Declared Disaster Areas
7. Asbestos

Please contact Jay Shackford (x8406) for more information on the resolutions process.

NAHB Member Benefit: Through the NAHB Resolutions process, any member or HBA may submit new policy proposals for the Board's consideration. This process ensures that NAHB's goals, strategies and official policies are the direct product of its members' concerns and views, and allows individual NAHB members to have their voices heard on the national stage. [return to top]

NAHB's Quick Issues Index

documenting the latest advances on our top Advocacy issues was updated in preparation for the spring meetings of the NAHB Executive Board and Board of Directors. It's now available to all logged-in NAHB members on our Web site. Readers of this report will recall that this particular resource was first developed last year as an efficient means of updating our leadership and providing contact information and Web addresses telling you where to go for more data on a given subject. The Quick Issues Index can be found at www.nahb.org/issuesindex. Contact: Samantha Ehrhart (x8450) for more info.

NAHB Member Benefit: The Quick Issues Index is a handy member benefit that's aimed at updating you quickly and efficiently about the latest developments on housing-related issues and NAHB actions. It is also meant to facilitate communication of NAHB's actions and accomplishments at the HBA level and across our membership. Most importantly, this document, which is updated prior to every meeting of the NAHB Executive Board, provides you essential links and contacts for more information on any given topic, thereby helping connect our members to NAHB's substantial expert resources. [return to top]

A $1 million donation to the National Housing Endowment

was announced with much fanfare by NAHB Past President and Endowment Chairman Gary Garczynski at the Spring Board of Directors meeting. This generous gift comes from Lewis Ranieri, a member of our National Housing Hall of Fame and father of the securitized mortgage market who has contributed his time and expertise as Chairman of NAHB's Mortgage Roundtable for many years. Needless to say, Mr. Ranieri has more than established himself as a great friend to our association and industry over time, but his latest contribution is truly an outstanding gift that brings NAHB's philanthropic arm within $5 million of its utlimate goal to reach $25 million over the next several years. On behalf of the National Housing Endowment and NAHB, Gary presented Ranieri with two tokens of appreciation on the board floor – a Bacaret Crystal Eagle representing his commitment to helping people achieve the American Dream and a specially inscribed key to the National Housing Center indicating his permanent stature as one of our own. The Board of Directors, NAHB's entire membership, and all of those who will benefit from the philanthropic endeavors of the National Housing Endowment heartily thank Lewis Ranieri for his generous spirit! [return to top]

The 2007 inductees of the National Housing Hall of Fame

were honored during NAHB's Spring Board Meeting in Washington this month. This year, the National Housing Center Board of Governors elected three new members to the fold. A fourth honoree was also posthumously inducted after having been elected to the National Housing Hall of Fame in the 1980s.

Bruce C. Smith - As 2001 NAHB President, Bruce led our association into the 21st century. In the aftermath of September 11, he tirelessly traveled the country in a successful effort to encourage the housing community to provide generous assistance for those directly affected by the tragedy. A second-generation custom home builder and land developer, he is president of Smith Quality Homes – a family-owned company with more than a 70-year history in Walnut Creek, CA.

R. James "Jim" Nicholson - A Life Director of NAHB and a graduate of the U.S. Military Academy at West Point, Jim served as president of the HBA of Metropolitan Denver in 1982 and was named its Builder of the Year in 1988. Chosen by President George W. Bush to serve as Secretary of Veterans Affairs, he was unanimously confirmed by the Senate and sworn into office in February of 2005. Through this office he has provided strong leadership for the VA Home Loan Program, a benefit that has been credited by many historians for its substantial impact on homeownership in this country.

Henry G. Cisneros - After serving as this country's first Hispanic-American to head a major city government (San Antonio), Henry became Secretary of the Department of Housing and Urban Development in 1993. As a member of President Clinton's cabinet, he is credited with initiating the revitalization of many of the nation's public housing developments and with formulating policies that have contributed to today's record homeownership levels. He is currently executive chairman of the CityView companies, a national housing investor that provides financing for America's urban home builders.

William J. Levitt - A housing trendsetter, William Levitt revolutionized the home building process and is widely credited as the father of modern American suburbia. His company, Levitt and Sons, Inc., created the world-famous Levittown, Long Island, as well as Levittown, Pa., which was the first entirely pre-planned city in this country since the nation's capital was envisioned by Pierre L'Enfant. Elected to the National Housing Hall of Fame two decades ago, he was unable to accept the award at that time. his grandson, David Levitt, was present to accept this honor on his behalf during NAHB's 2007 Spring Board of Directors Meeting.

For more information on the National Housing Hall of Fame, please contact Connie Douglas (x8408). [return to top]

The NAHB Research Center's new lab and market research facility

officially opened during Spring Board week when members of the NAHB Executive Board attended Grand Opening Ceremonies and had the opportunity to walk through the building and learn about the new capabilities it adds to what is already one of the world's leading housing research institutions. The state-of-the-art product testing laboratory and market research facility is part of a major expansion effort to advance housing technology research and improve the quality and durability of homes. It's designed to provide home builders and building product manufacturers the industry's broadest array of third-party product testing, quality assurance and market research services under a single roof. Keynoting the dedication festivities on June 4, NAHB President Brian Catalde joined with other members of the NAHB leadership and NAHB Research Center staff to celebrate the completion of the 42,000 square-foot lab. Its new capabilities include large-scale thermal testing, acoustic performance testing, and two-story shear wall testing, among many others. Read the NAHB Research Center's press release for more, or contact Kimberly Warren at 800-638-8556.

NAHB Member Benefit: Created over 40 years ago as a subsidiary of NAHB, the NAHB Research Center is an established source for reliable, objective information and research on housing construction and development issues. Through the institution's various testing and certification services, the Research Center seal is an internationally recognized mark of product quality and an assurance of product performance for home builders and their customers. [return to top]

An important new feature on NAHB's Web site

was rolled out during the week of Spring Board, and readers of this report may be particularly interested to know about it. You can now access our interactive 2008 Committee and Council Appointment Form, which is personalized according to each member's NAHB profile. It offers signup options for various committees and councils based on eligibility requirements such as past years of service, current participation, membership status, board status and other qualifications. It's very important that you are logged in to NAHB.org with your OWN username and password when accessing this feature, since the form automatically determines your eligibility for a certain appointment based on your member profile (for example, some appointments are not available to non-builder members). Contact Cyndi McKinley (x8346) for questions about the committee signup process, or for help with the online form, contact our Webmaster, Sheryl Nathan, at x8137. [return to top]

Awards news:

Housing Groups Honor Texas Developer Granger MacDonald
for Achievement in Affordable Housing

Maryland Home Builders Recognized for Leadership
in Promoting Accessible Housing for the Disabled

50+ Housing Council Recognizes 2007 Best of 50+ Housing
Award Winners [return to top]