Monday Morning Briefing Letter - 01/28/2008 (Plain Text Version)

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

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Housing incentives must be in an economic stimulus package

for such an endeavor to be successful, NAHB told Congress in no uncertain terms this week.

Making sure our message was heard loud and clear, NAHB ran a full-page ad in USA Today on Jan. 24 urging swift congressional action on three key steps aimed at getting housing and the economy back on track, and sent personal letters to members of the House and Senate leadership. Step 1: Make housing incentives a key part of any economic stimulus package. Step 2: Adopt broad GSE reform legislation to allow Fannie Mae and Freddie Mac to buy larger mortgages in high-priced markets. Step 3: Enact legislation to modernize the Federal Housing Administration. Another ad will run in USA Today on Jan. 29, and will also be seen in the Jan. 26 edition of National Journal magazine as well as in the Capitol Hill publication Roll Call.

"Any stimulus plan needs to address the housing downturn in order to stabilize financial markets and get the economy moving forward," noted NAHB President Brian Catalde in an official statement released Jan. 24 and in letters going to the Hill. Read more in the next NBN Online. 

Please direct any questions on the ads that are running in USA Today to Jay Shackford, x8406.

Applauding the Fed's aggressive move

to cut interest rates by 75 basis points as a means of helping jump-start the economy, NAHB called on Congress to quickly follow up with some decisive action of its own on Jan. 22. "This action sends a strong signal to the world financial markets that the Fed is prepared to inject liquidity into the credit markets and do its part to help the U.S. economy avoid a recession," said NAHB President Brian Catalde in an official NAHB statement. "Further rate cuts may still be needed, and we urge Fed policymakers to monitor the situation closely with this possibility in mind when they meet at the end of the month."

In a speech to the U.S. Chamber of Commerce on the same day, Treasury Secretary Henry Paulson agreed with NAHB when he called on Congress to move swiftly to address the current housing situation by enacting an economic stimulus package and passing the following legislation that reflects NAHB priorities: FHA modernization to increase the availability of affordable FHA mortgages; comprehensive oversight reform for Fannie Mae and Freddie Mac that allows them to temporarily buy larger home loans in high-cost markets; and allowing cities and states to issue tax-exempt mortgage bonds to refinance existing loans to help troubled borrowers. Read more in NBN Online, or contact Paul Lopez (x8409) for help with related media inquiries.

Home builders have an exceptional sales opportunity following the Jan. 22 three-quarters of a percentage point interest rate cut by the Federal Reserve. Mortgage rates are already near historic lows, and the largest rate cut since October 1984 makes buying a new home a not-to-be-missed decision for consumers right now. Read more here. [return to top]

NAHB's President-Elect was honored on Capitol Hill this week

with some fine words of praise entered into the congressional record by Rep. Shelley Moore Capito (R-WV). Telling the U.S. House of Representatives that Sandy Dunn will become the first West Virginian to serve as president of the nation's home builders, Capito said, "It is an honor to represent such an accomplished leader who serves the needs of the home building industry on the national front, while always maintaining her dedication to her community of Mason County. I am proud to call Sandy Dunn a friend and fellow West Virginian." The congresswoman also said that Sandy "owes her success to open communication and listening to the concerns of the industry within her state and across the nation," and cited Sandy's numerous honors, including the 1997 Henry E. King Award, the highest accolade in her state. Read more in the next NBN Online. [return to top]

Updated "myth buster" resources

are now available for free downloading by NAHB members and HBAs who are looking for help in preparing for media interviews and communicating with consumers and others about what's happening in today's most challenging housing markets. Recently added or updated resources include (note - you must be logged on to the www.nahb.org Web site to view these members-only materials):

For more information on the Myth Buster resources, e-mail NAHB Public Affairs or call 800-368-5242, x8254.   [return to top]

Green mandates within a HOPE VI reauthorization bill

have spurred NAHB opposition to the measure in spite of our association's well-established record of supporting the unique housing program. Indeed, HOPE VI has contributed to the revitalization of some of the most difficult public housing neighborhoods in the nation. As NAHB said in a letter to the House leadership and rank-and-file members prior to the bill's Jan. 17 approval by that chamber, while the nation's home builders have long been a strong advocate of HOPE VI, we oppose the use of exclusionary green rating tools as mandatory provisions in the bill. "As leaders in green building, NAHB believes this mandate is an obstacle to affordability; particularly for a program bound by strict statutory cost constraints," our letter said. "The explicit reference to specific rating tools in this legislation is overly restrictive, costly and could limit the number of projects that can be undertaken within the HOPE VI program. Most importantly, the Green Communities and LEED rating tools are not accredited construction standards."  Read more in NBN Online.

With the bill's approval in the House, the debate now turns to the Senate, whose own HOPE VI bill does not contain any green building mandates. NAHB will continue to fight against such mandates going forward. For more information, contact Elizabeth Odina, x8570. [return to top]

Results of NAHB's most recent Critical Issues Survey

reveal that, while mortgage finance issues are the fastest growing concern for Executive Officers at state and local HBAs across the country, an old standby still clings to the top of the list: the development approval and permitting process. Meanwhile, development costs moved up to second on the list of top critical issues for the housing industry in the past year, followed by availability of affordable housing, impact fees/development exactions and public attitudes toward growth in the top five. Ahead of mortgage finance and rounding out the top 10, the rankings found sprinkler mandates to be the sixth biggest concern for the industry, followed by codes regulation, builder-employer health care costs, and zoning issues. For more information on the Critical Issues Survey, or to receive the full survey results, contact Alex Strong at x8279. [return to top]

For more information or to contact us directly, please visit www.NAHB.org | ©2008, National Association of Home Builders