Senate-Passed Bill Stops Tenant, Home Owner Bankruptcy Abuse
The Senate last week approved S. 256, the “Bankruptcy Abuse Prevention Act of 2005.” NAHB supported passage of the bill, which contains two beneficial provisions for home builders. First, it would stop an abusive practice under current law in which delinquent tenants facing eviction can file for bankruptcy, triggering an automatic stay that requires the property owner to stop all eviction proceedings — even if the tenant is damaging property or involved in illegal activity. This allows a tenant to remain in a rental property for months without paying rent until a bankruptcy judge lifts the stay. The bill would establish a clear procedure for the speedy resolution in federal bankruptcy court of cases in which a tenant has defaulted on the lease agreement for failure to pay and then files for bankruptcy, while providing debtors with due process protection against unfair evictions.

The measure also stipulates that home owners who filed for bankruptcy within 40 months of buying a home would be able to protect no more than $125,000 of home equity from creditors, and after 40 months existing state homestead limits would apply. This provision prevents a debtor from shielding assets by purchasing a home in a state with an unlimited homestead exemption, while also recognizing that states should have the ability to set homestead exemptions at levels they deem appropriate.

House leaders have indicated that they plan to approve the bill as early as next month, and President Bush is expected to sign the bankruptcy measure into law shortly thereafter. To read the legislation, click here and enter S. 256 in the box at the upper left. For further information, contact J.P. Delmore at 800-368-5242 x8470.

NAHB President Wilson Pushes Housing Agenda on Capitol Hill
NAHB President Dave Wilson continued his outreach to Capitol Hill last week, meeting with several key congressional leaders on a wide range of legislative and regulatory issues with serious repercussions for the nation's supply of affordable housing. Wilson held talks with Senate Minority Leader Harry Reid (D-NV), Sens. Lincoln Chafee (R-RI) and Jack Reed (D-RI), House Majority Leader Tom DeLay (R-TX), House Financial Services Committee Ranking Member Barney Frank (D-MA) and Rep. Paul Kanjorski (D-PA), who also serves on the House Panel. In addition, he also met with Housing and Urban Development Secretary Alphonso Jackson and Democratic National Committee Chairman Howard Dean. Click here for more information on the Hill visits. [return to top]

Perkins Reauthorization Approved in Senate, Moves Forward in House
On a vote of 99 to 0, the Senate last week unanimously approved S. 250, the “Carl D. Perkins Reauthorization Act.” Meanwhile, the House counterpart to the job training bill, H.R. 366, also sailed through the House Education and the Workforce Committee. The full House is expected to vote on the measure next month. NAHB worked with lawmakers to ensure that the program continues to support training programs in “high demand” and “traditional” industries, such as residential construction. The House and Senate legislation would reauthorize the program through FY 2011. To view the bills, click here and type S. 250 or H.R. 366 in the upper left hand corner. For more information, contact Jenna Morgan Hamilton at x8470. [return to top]

House Overwhelmingly Approves Highway Bill
The House last week passed the surface transportation reauthorization bill, H.R. 3, by a vote of 417-9. The measure, known as the “Transportation Equity Act: A Legacy for Users” (TEA-LU), would authorize $284 billion for highway construction, public transportation and road safety programs through FY 2009. The Senate version of TEA-LU is scheduled to be unveiled next week. The White House has signaled its approval of the House bill but indicated that it would veto any legislation that would increase funding for the six-year highway package. To view the bill, click here and type H.R. 3 in the box in the upper left hand corner. For more information, contact Kevin Schwalb at x8470. [return to top]

Hill Holds Two Hearings on Housing GSEs
The House Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises (GSEs), chaired by Rep. Richard Baker (R-LA), held a hearing last week that focused on the role of the federal home loan banks in the housing finance system and what, if any, reforms could be implemented to improve them. Baker said that he was not opposed to giving securitization powers to the federal home loan banks – an idea that is strongly supported by NAHB -- as long as the banks were not allowed to buy back their own securities.

A second GSE-related hearing conducted by Rep. Sue Kelly (R-NY), chairwoman of the House Subcommittee on Oversight and Investigations, centered on an instance of mortgage fraud involving Fannie Mae that cost the federal government $35 million. Reps. Kelly, Baker and other lawmakers felt that the incident could have been prevented if Fannie Mae had been subject to the Bank Secrecy Act, which requires federally insured depository institutions to tell bank regulators when they suspect criminal activity. In later discussions with NAHB staff, Rep. Baker said that he intends to add such a requirement to the GSE regulatory reform legislation he is currently drafting -- a bill he said he would like to introduce before Congress adjourns for its spring recess on March 18. NAHB is working closely with key members and staff in the House and Senate to craft legislation that creates a world-class regulator, protects their housing mission and ensures they operate in a safe and sound manner. For more information, contact Greg Brown at x8470. [return to top]

Terrorism Insurance Extension Introduced in House
Legislation introduced last week by Reps. Michael Capuano (D-MA), Barney Frank (D-MA), Steve Israel (D-NY), Paul Kanjorski (D-PA), and Joe Crowley (D-NY) would extend the “Terrorism Risk Insurance Act” (TRIA) by two years. TRIA is currently set to expire on Dec. 31, 2005. The bill, H.R. 1153, would also provide mandatory availability for terrorism coverage for policies written in the final two years of the program, make terrorism reinsurance coverage available to group life insurance policies and require the Treasury Department to develop recommendations on long-term solutions to the terrorism reinsurance problem. Similar legislation (S. 467) was introduced in the Senate last week. The bill was introduced to help stimulate House debate on the issues. NAHB strongly supports an extension of TRIA and is working with a coalition of industry groups to secure passage of the legislation. To view the legislation, click here and type H.R. 1153 or S. 467 in the box in the upper left hand corner. For more information, contact Greg Brown at x8470. [return to top]

Energy Efficiency Bill Receives Warm Reception
Legislation introduced last week by Rep. Jerry Weller (R-IL), H.R. 1212, the “Save America’s Valuable Energy Resources Act of 2005,” received a thumbs-up from home builders. The measure would provide home energy efficiency tax credits for builders, consumers and owners of rental properties. Meanwhile, the House next month is expected to consider a comprehensive energy package that includes the same home energy efficient credit language that was included in last year’s Energy Bill Conference Report. The Senate is also in the process of drafting an energy bill. NAHB will work to ensure that any energy tax package includes the home energy efficiency tax credits. To view the bill, click here and type H.R. 1212 in the box in the upper left hand corner. For more information, contact Allen Segal at x8470. [return to top]

Tax Panel Focuses on Problems with Current Code
The President's Advisory Panel on Federal Tax Reform convened for the third time last week. The meeting was held in Tampa, FL and focused on the burdens and problems the current tax code places on the business community. Panelists reviewed the complexity of the current business tax structure, debated the merits of a Value Added Tax, and mulled the repeal of the corporate Alternative Minimum Tax. NAHB staff were at the Tampa briefing and will also attend this week’s hearing in Chicago.

NAHB CEO Jerry Howard is scheduled to meet with Jeff Kupfer, executive director of the commission, on March 18 to discuss the panel's progress to date and to explore areas where NAHB can become involved in the decision-making process. In addition, NAHB is drafting comments to the commission that outline the complexity, burdens and unfairness that the current tax code places on individuals and businesses. NAHB will continue to advocate for the protection of all housing incentives contained in the current tax code and look for ways to preserve these measures if the commission moves toward an alternative tax system. For more information, contact Jim Tobin at x8470. [return to top]

Homeownership Tax Credit Bill Expected Shortly
Rep. Rob Portman (R-OH) is expected to reintroduce his homeownership tax credit legislation this week. The bill attracted more than 300 cosponsors in the 108th Congress. Additionally, Sens. Rick Santorum (R-PA), Gordon Smith (R-OH) and John Kerry (D-MA) plan to unveil a Senate version of the homeownership tax credit proposal in the near future. In the previous Congress, the senators introduced competing versions of the measure that collectively garnered the support of more than half the Senate members. The legislation to be introduced shortly is a compromise measure that will allow the Senate to unite behind one bill. Gaining cosponsors for both bills will be an agenda item for NAHB's Legislative Conference next month. [return to top]

Legislative Conference to Focus on Storm Water, ESA and GSEs
Currently, there are more than 500 registered participants for NAHB's 2005 Legislative Conference, which will be held in Washington, D.C. on April 13. Last week, the Federal Government Affairs Committee, along with NAHB President David Wilson, identified three priority issues for the one-day grassroots lobbying event – storm water permitting compliance, Endangered Species Act reform, and regulatory reform of the government-sponsored enterprises (GSEs) Fannie Mae, Freddie Mac and the Federal Home Loan Banks. In addition, participants will also be asked to garner cosponsorship of legislation creating a homeownership tax credit. Talking points and further details on this year's legislative priorities are available to NAHB members at www.nahb.org/legcon. For more information or to register for the NAHB Legislative Conference, call 800-368-5242 x8470; or e-mail Jessica Boyce. [return to top]