Builders Testify Before Congress on GSE Reform
The Senate Banking Committee held three hearings last week on regulatory reform of the housing government-sponsored enterprises (GSEs) Fannie Mae, Freddie Mac and the Federal Home Loan Banks. The first hearing focused on input from industry organizations, including NAHB, the National Association of Realtors, the Mortgage Bankers Association, the Independent Community Bankers Association and others. Testifying on behalf of NAHB, President Dave Wilson urged lawmakers to stick to several core principles: One, balance housing with safety and soundness concerns; two, maintain a smooth and steady flow of mortgage products to the market; three, focus and enhance GSE benefits to expand affordable housing opportunities; four, employ capital as a precise instrument of risk management; and five, preserve GSE portfolios as tools for expanding investment in housing.

The second hearing focused on the GSEs themselves. The Senate panel heard testimony from Freddie Mac CEO Dick Syron, Fannie Mae Interim CEO Dan Mudd and Federal Home Loan Bank of Atlanta President Ray Christman, who spoke on behalf of the Council of Federal Home Loan Banks. The final hearing focused on the GSE regulators themselves - the Federal Housing Finance Board and the Office of Federal Housing Enterprise Oversight - as well as the General Accounting Office and Office of Management and Budget.

Senate Banking Committee Chairman Richard Shelby (R-AL) is expected to introduce his own GSE bill in the near future. Meanwhile, the House Financial Services Committee has not scheduled any additional legislative hearings on GSE regulatory reform and is expected to markup legislation prior to the Memorial Day holiday. NAHB staff continues to focus lobbying and grassroots efforts on key players in both the House and Senate. To view NAHB’s press release, click here. For more information, contact Greg Brown at 800-368-5242, x8470.

Legislative Conference Draws More than 860 Builders to Capitol Hill
As part of NAHB’s annual Legislative Conference, more than 860 members converged on Capitol Hill earlier this month to hold over 300 meetings with members of Congress. The day-long event, which took place on April 13 just prior to NAHB's Board of Directors meeting, primarily focused on four key legislative issues: government-sponsored enterprise (GSE) reform, Endangered Species Act (ESA) reform, the federal storm water permit program and homeownership tax credit legislation. During the morning briefing session, House Resources Committee Chairman Richard Pombo (R-CA) pledged to fight for meaningful ESA reform and said that the builders’ presence on Capitol Hill was important to move this issue forward along with other matters of concern to the housing industry. The 2005 Legislative Conference shattered previous attendance records, and the builders’ lobbying efforts helped to secure 73 House cosponsors for homeownership tax credit legislation H.R. 1549. Photos are now available for viewing at  www.nahb.org/legcon. To see the story in NBN Online, click here. For more information, Legislative and Political Relations at x8470. [return to top]

Homeownership Tax Credit Off to a Quick Start
Last week, Reps. Tom Reynolds (R-NY) and Ben Cardin (D-MD) introduced the NAHB-sponsored homeownership tax credit legislation H.R. 1549, the “Renewing the Dream Tax Credit Act.” The introduction coincided with NAHB's Legislative Conference and allowed participants to lobby for cosponsors during Capitol Hill visits on April 13. Additionally, Reps. Reynolds and Cardin held a press conference on the same day to promote the introduction of the tax credit. John Hofelich, 2005 New York State Builders Association President, and Bruce Boncke, NAHB Area 2 National Vice President, represented NAHB at the press conference. The bill was introduced with 37 cosponsors, including a majority of House Ways and Means Committee members. NAHB’s efforts during the Legislative Conference helped to garner an additional 36 cosponsors in support of the bill. In addition, Senators Rick Santorum (R-PA), John Kerry (D-MA), Gordon Smith (R-OR), Debbie Stabenow (D-MI), Wayne Allard (R-CO) and Paul Sarbanes (D-MD) last week introduced companion Senate bill S. 859, the “Community Development Homeownership Tax Credit Act.” NAHB will begin soliciting cosponsorship immediately. To view the story in NBN Online, click here. To read the tax credit bills, click here and type H.R. 1549 or S. 859 in the box in the upper left hand corner. For more information, contact Jim Tobin at x8470. [return to top]

Lawmakers Send Bush a Message on Canadian Lumber
Over 45 members of Congress sent a letter to President Bush last week urging the Administration to implement North American Free Trade Agreement and World Trade Organization decisions that have invalidated the 22 percent duties on imported Canadian lumber. House Republican Whip Roy Blunt (R-MO), Minority Whip Steny Hoyer (D-MD), Appropriations Subcommittee Chairman Jim Kolbe (R-AZ) and Ways and Means Committee member Richard Neal (D-MA) asked their colleagues to join them in sending a message to the White House that unwarranted lumber tariffs are harming housing affordability.

"Imposing duties on Canadian lumber is a tax on American home buyers," the letter stated. "Current duties can add as much as $1,000 to the price of a new home. While many may see this as a small percentage of the overall home buying cost, it eliminates hundreds of thousands of families from mortgage eligibility at current lumber prices."

Lawmakers urged the President to direct the Commerce Department and the Office of the United States Trade Representative to "comply with the international agreements the U.S. has signed," adding that the "current duties, which have been found illegal under both the WTO and NAFTA, deprive Americans of affordable housing, the first step in the American dream. The border taxes should be stopped at once, and past payments given back." For more information, contact Jason Lynn at x8470. [return to top]

OSHA Reform Bills Advance in House
On April 13, the House Education and Workforce Committee approved the four OSHA reform bills introduced by Rep. Charlie Norwood (R-GA) in early February. The bills were all passed out of committee on a party line vote. H.R. 739, the "Occupational Safety and Health Small Business Day in Court Act", would allow OSHA to give businesses more than 15 days to respond to a citation; H.R. 740, the "Occupational Safety and Health Review Commission Efficiency Act," would add two more administrative law judges to the three-member Occupational Safety and Health Review Commission (OSHRC), which hears appeals of violations; H.R. 741 the "Occupational Safety and Health Independent Review of OSHA Citations Act," would require judges to defer to the OSHRC when OSHA cases are appealed to the courts; and H.R. 742, the "Occupational Safety and Health Small Employer Access to Justice Act," would make it easier for companies to recover attorneys' fees when they successfully defend themselves against a citation. NAHB key voted the first and fourth bills during the 108th Congress. The four bills are expected to go to the House floor before the Memorial Day recess. Senator Johnny Isakson (R-GA) has indicated that he will consider introducing companion Senate legislation in the near future. To view the legislation, click here and type the bill number in the upper left hand corner. For more information, contact Jenna Morgan Hamilton at x8470 [return to top]

Senate Panels Hold Hearings on Association Health Plans
To help move association health plan legislation S. 406 forward, two Senate panels -- the Small Business Committee and the Health, Education, Labor and Pensions Committees --
held hearings last week on the topic. Lawmakers heard testimony on how the measure would enable small businesses to offer better and more affordable coverage for their employees. Prior to last week, the only Senate hearing ever held on association health plans occurred in early 2002. Speaking in support of this initiative, NAHB President David Wilson said: “We appreciate the strong leadership that committee chairs Olympia Snowe (R-Maine) and Michael Enzi (R-Wyo.) have shown on this issue, and believe these hearings will highlight the need to enact legislation to provide small businesses with greater options to secure stable and affordable health coverage for their employees.” To view the legislation, click here and type the bill number in the box in the upper left hand corner. For more information, contact Jenna Morgan Hamilton at x8470.
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Bankruptcy Measure Signed Into Law
The U.S. House of Representatives on April 14 passed bankruptcy legislation that strikes a fair balance between the rights of tenants and property owners, and also provides sufficient safeguards for home owners to protect their property in the event of a bankruptcy filing. The Senate passed the same measure last month — S. 256, the “Bankruptcy Abuse Prevention and Consumer Protection Act of 2005” — and President Bush signed the measure into law last week. The new law contains two beneficial provisions for apartment owners and home owners. 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. And second, it recognizes that states should have the ability to set homestead exemptions at levels they deem appropriate.” Most provisions of the new law will take effect in six months. To view the bill, click here and type the bill number in the box in the upper left hand corner. For more information, contact J.P. Delmore at x8470. [return to top]

Builders Cite Regulatory Issues Facing Small Businesses
NAHB First Vice President David Pressly testified last week before the House Small Business Committee's Subcommittee on Workforce, Empowerment, and Government Programs about regulatory issues facing small businesses. Much of the testimony was centered on the burdens of complying with state and federal storm water regulations. Pressly also urged lawmakers to address the following areas that have had a negative impact on the housing market: FHA insurance for small multifamily projects; Section 8 applicability to assisted living facilities; deterioration of the Rural Housing Service Section 515 multifamily rental housing program; wetlands permitting under Section 404 of the Clean Water Act; and critical habitat designations under the Endangered Species Act. Click here for more information, or contact Allen Segal at x8470. [return to top]

Builders to Provide Input on Federal Tax Reform
NAHB is currently drafting comments for the President's Advisory Panel on Federal Tax Reform on ways to improve the housing preferences in the current tax code. The statement will demonstrate the importance of maintaining the current housing tax incentives, while offering suggestions for strengthening the existing measures. Last week, the panel conducted the final meeting of its fact-finding phase on the campus of the University of Maryland. The open forum, which was attended by NAHB staff, focused on how federal tax reform could affect the ability of state and local governments to collect taxes. For more information, contact Jim Tobin at x8470. [return to top]

House Votes to Repeal Estate Tax
On April 14, the House passed H.R. 8, the “Death Tax Repeal Permanency Act of 2005,” by a vote of 272-162. H.R. 8 would permanently repeal the estate tax. Senate companion bill S. 420, also titled the “Death Tax Repeal Permanency Act of 2005,” has not been scheduled for a vote at this time. The cost for full repeal, as contained in S. 420 and H.R. 8, is $290 billion over 10 years. NAHB strongly supports the full and permanent repeal of the estate tax. NAHB identified H.R. 8 as a "key vote" for BUILD-PAC purposes and continues to work with a large coalition to pass S. 420 in the Senate. Under current law that was enacted in 2001, the estate tax is slowly being reduced and will be eliminated entirely in 2010. However, the following year it is resurrected at rates as high as 55 percent. To view the legislation, click here and type the respective bill numbers in the box in the upper left hand corner. For more information, contact Jim Tobin at x8470. [return to top]

House Approves Energy Package
The House completed consideration of the energy bill (H.R. 6) last week, passing the legislation by a vote of 249 to 183. NAHB was successful in altering a provision to establish energy efficiency standards for public housing so that it would not apply to FHA and rural housing. If enacted as drafted, the measure had the potential to price those who rely on those programs out of the housing market altogether. The only home energy efficiency tax credits included in the House-passed bill were for existing homes. NAHB has already approached Senate staff about including broader home energy efficiency tax credits in the Senate version of the bill. To view the legislation, click here and type H.R. 6 in the box in the upper left hand corner. For more information, contact Allen Segal at x8470. [return to top]

Senate Panel Passes Junk Fax Bill
The Senate Commerce, Science and Transportation Committee last week approved by a voice vote S. 714, the "Junk Fax Prevention Act of 2005." The bill would create limited exceptions to new rules aimed at preventing unsolicited faxes that are scheduled to go into effect on July 1, 2005. The legislation would establish an "existing business relationship" exception to the general rule against unsolicited faxes. This provision is vitally important to builders who wish to communicate with existing and potential customers. Without this legislation, Federal Communications Commission regulations would require NAHB and all state and local associations to obtain express written consent with member before faxing materials to them. NAHB is urging the full Senate to act on this legislation. Once this occurs, the House plans to introduce an identical bill, thus avoiding the need for a conference committee. The bill would then be sent directly to the President. To view the measure, click here and type the bill number in the box in the upper left hand corner.For more information, contact Allen Segal at x8470. [return to top]