House Approves HUD Spending Bill
By an overwhelming 405-to-18 margin, the House on June 30 approved a $139 billion fiscal 2006 spending bill that will fund the Transportation, Treasury and Housing and Urban Development departments, the judiciary and the District of Columbia government. Nearly 70 amendments were filed to the bill (H.R. 3058), which funds most major housing programs, and most of these resulted in increased funding for various programs.

The HOPE VI program was among those housing programs that received higher allocations through this process. An amendment submitted by Rep. Artur Davis (D-AL) and approved by the House designated $60 million for HOPE VI in fiscal 2006. The Administration and the House Appropriations Committee had attempted to abolish the program. Additionally, the Brownfields Redevelopment program was also saved from elimination by an amendment offered by Rep. Gary Miller (R-CA) that will fund the program at $24 million in fiscal 2006. NAHB sent letters to the full House in support of these amendments. Reps. Jerry Nadler (D-NY) and Nydia Velazquez (D-NY) were also successful in adding $100 million to the tenant voucher program of Section 8.

The Senate is expected to markup its version of the Transportation, Treasury, Housing and Urban Development appropriations bill in subcommittee on July 12, with full committee consideration on July 14. NAHB is continuing to meet with Senate appropriations staff to underscore our concerns and priorities for housing programs in fiscal 2006. To view the HUD spending bill, click here and type H.R. 3058 in the box in the upper left hand corner. For more information, contact Jenna Morgan Hamilton at 800-368-5242, x8470.

Builders Successful in Defeating Tongass Amendment
The Senate last week approved the Interior and Environment Appropriations fiscal 2006 spending bill. Of note to builders was an amendment offered by Senators John Sununu (R-NH), John McCain (R-AZ), Russell Feingold (D-WI) and Richard Durbin (D-IL) that sought to prohibit the use of funds to plan, design, study or construct roads in the Tongass National Forest. In a letter sent to the entire chamber prior to the Senate vote, NAHB opposed the amendment, noting that restrictions imposed by this provision would “ignore local and regional expertise in land management and hurt local economies.” The Tongass amendment failed by a vote of 59-39. The Interior appropriations bill ultimately passed the Senate by a unanimous tally of 94-0, and will now be reconciled with its House counterpart. For more information, contact Jenna Morgan Hamilton at x8470. [return to top]

House Moves to Mitigate High Court Ruling on Property Rights
In a blow to the rights of private property owners, the U.S. Supreme Court on June 23 ruled 5-4 in Kelo v. City of New London that a Connecticut town could exercise its right under eminent domain to force several home owners to abandon their properties to make way for planned commercial development. In effect, the ruling allows government entities to take, for nearly any reason, private property subject to just compensation. NAHB has long stood on the side of property rights and has grave concerns with this ruling. The Kelo decision touched a nerve in Congress as well, and resulted in a flurry of legislative activity. During consideration of the Transportation-Treasury-Housing spending bill (H.R. 3058), the House adopted an amendment offered by Rep. Scot Garrett (R-NJ) that would prohibit the use of funds under the bill to enforce the Supreme Court decision. The amendment was adopted by a vote of 231-189 and H.R. 3058 later passed the House.

In addition, Senator John Cornyn (R-TX) introduced free-standing legislation in the Senate that would also deny state and local governments federal funding if they take property based on the Kelo decision (S. 1313). House Judiciary Chairman James Sensenbrenner (R-WI) and Ranking Member John Conyers (D-MI) unveiled a similar bill (H.R. 3135) in the House. Furthermore, the full House approved Resolution 340, which disagrees with the majority opinion in the Kelo case and resolves that state and local governments should only “execute the power of eminent domain for those purposes that serve the public good in accordance with the Fifth Amendment” and that they must “always justly compensate those individuals whose property is assumed through eminent domain in accordance with the Fifth Amendment.”

NAHB is exploring opportunities for comprehensive property rights legislation in Congress to restore protections offered under the Fifth Amendment. To view the bills or House resolution, click here and type H.Res.340,  H.R. 3135 or S. 1313 in the box in the upper left hand corner. For more information, contact J.P. Delmore at x8470.
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Treasury Report Urges Changes to Terrorism Insurance
The U.S. Treasury Department last week released its long-awaited assessment of the Terrorism Risk Insurance Act of 2002 (TRIA) and the state of the terrorism insurance marketplace. TRIA requires the government to administer a temporary program providing a federal terrorism backstop for specified losses that are covered by insurers in the event of an act of terrorism. TRIA expires at the end of 2005 and NAHB has been working as part of the Coalition to Insure Against Terrorism (CIAT) -- a group of policy holders from the real estate, transportation, tourism and trade and other industries -- to ensure that the program is extended.

In its assessment, the Treasury report concluded that while TRIA was effective in stabilizing insurance markets, it may actually be inhibiting the development of a private market capacity to provide long-term terrorism insurance. While NAHB and our coalition partners continue to review the report, CIAT has several concerns with Treasury's assessment of TRIA. Legislation to extend TRIA was introduced in both the House and Senate this past spring. Early comments from House Financial Services Committee Chairman Mike Oxley (R-OH) on the Treasury Department assessment indicate that he prefers a modified version of TRIA with more private sector involvement as opposed to a straight extension of the program. Senate Banking Committee Chairman Richard Shelby (R-AL) has yet to comment on the report, although in the past he has expressed a similar view. For more information, contact Greg Brown at x8470. [return to top]