Baker Introduces Wetlands Reform Bill
Rep. Richard Baker (R-LA) on May 26 introduced H.R. 2658, the “Federal Wetlands Jurisdiction Act of 2005.” The measure would amend the Federal Water Pollution Control Act to clarify federal jurisdiction over "waters of the United States." Though this legislation is a positive step for wetlands reform, there are two areas of concern to NAHB: 1. While the bill seeks to limit Section 404 jurisdiction over wetlands, federal officials would retain unlimited control over areas subject to Section 402 permitting requirements. 2. The bill's Section 404 provisions leave too much room for interpretation by the Army Corps of Engineers to assert unduly expansive federal jurisdiction over wetlands.

Rep. Baker’s staff, along with officials who work on the Water Resources and Environment Subcommittee of the House Transportation and Infrastructure Committee, have indicated to NAHB that there will be opportunities to resolve our concerns once the bill starts to move through the legislative process.  NAHB staff will continue to work with congressional stakeholders, as well as other organizations, to ensure that any wetlands legislation accomplishes the goal of true wetlands reform without adding undue burdens to home builders. To view the legislation, click here and type H.R. 2658 in the box in the upper left hand corner. For more information, contact Kevin Schwalb at 800-368-5242, x8470.

Timetable Uncertain for Consideration of GSE Bill
The House Financial Services Committee late last month approved H.R. 1461, the “Federal Housing Finance Reform Act of 2005,” and NAHB is now focused on floor strategy. With White House pressure building, it will be critical to maintain the committee bill as reported.  NAHB anticipates the administration will seek to offer amendments that would limit the portfolios of government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac and establish a "bright line" for their programs and activities.  Both of these issues are of great concern, as they would severely hamper the ability of the GSEs to meet their housing mission. 

Additionally, there is a movement among conservative House Republicans to strip the Affordable Housing Fund (Fund) from the legislation.  NAHB is reaching out to the full House membership to preserve the Fund and stave off potential amendments on limiting GSE portfolios or establishing a bright line boundary between the primary and secondary markets.  It is possible that a floor vote on H.R. 1461 could happen prior to the August recess, which is scheduled to begin on August 1. In the Senate, there is still no clear timeline for consideration of a companion GSE bill in the Banking Committee. NAHB continues to meet with members of the committee to press our concerns. To view the House bill, click here and type H.R. 1461 in the box in the upper left hand corner. For further information, contact Greg Brown at x8470.  [return to top]

House Panel Holds Hearing on Tax Reform
The House Ways and Means Committee last week held its first hearing on tax reform.  The session was held in advance of the report that will be released in late July by the President's Advisory Panel on Tax Reform (the Panel).  The hearing featured tax reform academics who have previously testified before the President's Panel.  Although there was little discussion of specific reform options, several committee members began to stake out their personal positions on elements of the current tax code.  Specifically, Rep. Nancy Johnson (R-CT) defended the Low Income Housing Tax Credit and the important work the program does to build affordable housing across the country.  Other members mentioned the need to address the Alternative Minimum Tax.

In addition, NAHB last week submitted a written statement to the Panel on specific tax reform proposals.  In its third request for comments, the Panel is seeking public input on the variety of specific reform proposals that have been presented to date.  NAHB rejected proposals that would replace the current tax code with an alternative such as a National Retail Sales Tax or Flat Tax or supplement the current income tax system with an additional tax (i.e. Value Added Tax).  NAHB's comments support the simplification of the existing income tax, while preserving and enhancing the current housing tax preferences. For more information, contact Jim Tobin at x8470. [return to top]

House Approves Agriculture Appropriations
By a vote of 408-18, the House on June 8 overwhelmingly approved the fiscal 2006 Agriculture Appropriations bill (H.R. 2744). Of interest to NAHB members are the fiscal 2006 House funding levels for major programs under the Rural Housing Service (RHS).  The Section 502 loan program received $1.14 billion for direct loans, and $3.68 billion for guaranteed loans.  Funding for the Section 515 Rental Housing program was set at $100 million, identical to fiscal 2005.  The White House had sought to drastically cut funding for this program to $27 million in fiscal 2006, a move that NAHB strongly opposed. 

Section 538 guaranteed multifamily housing loans also received $100 million, the same as the previous fiscal year, and $650 million was appropriated for the Section 521 rental assistance program.  Funding levels for the Section 502 guaranteed loan program and the Section 521 rental housing assistance program posted modest gains from the previous fiscal year. The Senate is expected to mark up its version of the fiscal 2006 Agriculture Appropriations bill on June 23.

The House Labor Appropriations Subcommittee approved its version of the fiscal 2006 Labor/Health and Human Services/Education Appropriations bill on June 9.  The total discretionary funding in the bill is $164 million less than last year, which led the subcommittee to cut programs across the board to stay within its allotted limit.  This represents an overall 0.1% funding decrease from fiscal 2005, but is still $924 million more than the administration's budget request for fiscal 2006.  Of interest to NAHB members are House funding levels for the following programs:

• Job Corps.: $1.54 billion for fiscal 2006, a $9 million decrease from fiscal 2005.
• Prisoner Reentry Program: $19.8 million for fiscal 2006; identical to last year.
• Community College Initiative: $125 million for fiscal 2006 vs. $124 million in fiscal 2005.
• Responsible Reintegration of Youth Offenders: Zero for fiscal 2006. (The Senate usually funds this program in its own bill and the program received $49.6 million in fiscal 2005.)
• Carl D. Perkins program: $1.99 billion in fiscal 2006, a $19 million decline from fiscal 2005.
• OSHA enforcement: $174 million in fiscal 2006 vs. $169.6 million last year.
• OSHA Harwood training grants: $10.2 million in fiscal 2006, identical to last year.

The Senate is in the process of drafting its version of the fiscal 2006 Labor/HHS/Education appropriations legislation, and is expected to mark up its bill in July. For more information, contact Jenna Morgan Hamilton at x8470. [return to top]