House Panel to Unveil GSE Reform Bill
With the House Financial Services Committee scheduled to consider legislation to reform the government sponsored enterprises (GSEs) Fannie Mae, Freddie Mac and the Federal Home Loan Banks on May 25, NAHB is continuing its advocacy efforts with targeted one-on-one meetings with committee members and key staff. Talks are centering on the following areas: minimum capital requirements, the structure of the regulator, “bright line” program approval language regarding the primary and secondary markets, limits on GSE portfolios and strengthened affordable housing requirements.

NAHB also continues to lobby key Republicans on the panel to support proposed minimum capital “snap back” language and to urge Financial Services Committee Chairman Michael Oxley (R-OH) to include this provision in his manager’s amendment scheduled to be marked up on May 25. This legislative language would require a new regulator to return the minimum capital levels to the statutory amount once the problem that triggered the increase has been addressed.

The Senate Banking Committee is expected to unveil a companion GSE reform bill next month. NAHB continues to enlist key Congressional Contacts to travel to Washington and meet with members of the Senate panel to discuss the association’s GSE reform priorities. For more information, contact Greg Brown or Scott Meyer at 800-368-5242, x8470.

Builders Victorious on Tongass Amendment
The House last week approved two appropriations bills – the Homeland and Interior measures. Of note to NAHB, an amendment to the Interior bill (H.R. 2361) offered by Rep. Steve Chabot (R-OH) would have prohibited the use of federal funds to construct private logging roads in the Tongass National Forest in Alaska. NAHB sent a letter to every House member urging them to oppose this provision. In addition, NAHB worked with key members of the House Resources Committee to defeat the amendment. After it was offered, Resources Committee Chairman Richard Pombo (R-CA) lodged a Point of Order against the proposal, arguing that legislative language should not be included in a spending bill because it is a violation of House rules. Chairman Pombo’s Point of Order was sustained, and the Chabot Tongass amendment was ruled out of order.

The House Interior Appropriations bill provides $1.4 billion for the National Forest System, $2.7 billion for wildland firefighting and the National Fire Plan, $43 million for federal land acquisition and $2.4 billion for the Environmental Protection Agency’s environmental programs. Overall, EPA was funded at $7.7 billion, $318 million below its fiscal 2005 level. The Senate has not yet completed its version of the fiscal 2006 Interior Appropriations bill. 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. [return to top]

Senate Panel Approves Workforce Investment Act
The Senate Health, Education, Labor and Pensions (HELP) Committee on May 18 marked up its version of the Workforce Investment Act (WIA) Reauthorization bill, S. 1021. There are several differences between S. 1021 and House companion bill H.R. 27. The Senate measure omits language that would combine funding for adults, dislocated workers and employment services into a single block grant to states, and it does not allow faith-based groups who receive funding from WIA programs to continue to use religious preferences for hiring. Both the House and Senate bills contain language that streamlines performance indicator measures used by Job Corps partners such as the Home Builders Institute (HBI), the workforce development arm of NAHB. HBI supports the streamlining of the performance indicators. The House passed its version of WIA reauthorization on March 2 by a vote of 224-200. The Senate is expected to consider its bill before the end of June. It is anticipated that the conflicts over block grant funding and faith-based groups could make a conference committee highly contentious, although it is expected that the conference committee will be able to complete the legislation this summer. 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. [return to top]

Onerous Provision Omitted from Energy Bill
The Senate Energy and Natural Resources Committee approved its version of the energy bill last week. NAHB was successful in getting the committee to omit an amendment that would have established increased energy efficiency standards for Federal Housing Administration (FHA) and rural housing. If enacted as drafted, it had the potential to price those who rely on FHA and rural housing programs out of the housing market altogether. Ultimately, the committee agreed to only raise efficiency standards for public housing, the same language that was included in the House bill. The Senate Finance Committee will meet some time next month to consider the tax package to be incorporated in the energy bill. NAHB is urging the Senate panel to ensure that home energy efficiency tax credits are included in the package. For more information, contact Allen Segal at x8470. [return to top]

House Panel Holds Hearing on Section 8 Program
The House Financial Services Subcommittee on Housing and Community Opportunity held a hearing last week on H.R. 1999, the "State and Local Housing Flexibility Act of 2005." Introduced by Rep. Gary Miller (R-CA), the bill essentially represents the administration's proposal to reform the Section 8 Housing Choice Voucher program. A cross-section of witnesses representing Section 8 tenants, public housing authorities, housing policy researchers, low-income housing advocates and private sector owners all expressed significant concerns with the intent and impact of H.R. 1999. Specific objections centered on proposals that would block-grant program dollars, limit voucher portability and destabilize the overall funding for the program. While NAHB opposes the administration's plan, it does agree with the approach taken in H.R. 1999 to streamline the unit inspections process for Section 8 tenants. NAHB submitted a statement for the record on H.R. 1999 and continues to work with the committee staff on ways to improve the program. To view the legislation, click here and type the bill number in the box in the upper left hand corner. For more information, contact Greg Brown at x8470. [return to top]

Senate Passes Highway Bill
The Senate on May 17 passed a surface transportation reauthorization bill (S. 626) by a vote of 89-11 that would provide $295 billion through fiscal 2009 for surface transportation spending. The administration has threatened a veto because the Senate bill authorizes $11 billion more than the White House has requested. While the House-passed bill stays within the White House funding level of $284 billion, the administration has threatened to veto this measure as well because of a provision that would hold fiscal 2006 highway funds hostage for 10 months unless Congress appropriated enough money to give states at least 95 cents in aid for every dollar they pay into the Highway Trust Fund. The highway measure will now go to a House-Senate conference, where conferees will iron out differences between the two bills. NAHB staff will continue to work with the appropriate parties to ensure that the onerous land use provision in the House bill stays out of the final product. For more information, contact Kevin Schwalb at x8470. [return to top]