Builders Call on Congress to Update and Improve ESA
Congress should expand landowner incentives for species protection and otherwise modernize the Endangered Species Act (ESA) in the months ahead. That's what Paul Campos, general counsel and vice president of government affairs for the HBA of North Carolina, said to the Senate Subcommittee on Fisheries, Wildlife and Water on July 13. Testifying on behalf of NAHB, he called on the Senate panel to provide new incentives, as well as absolute certainty for landowners that Habitat Conservation Plans (HCPs) and other voluntary species management programs will be excluded from critical habitat designations. "Any incentive to enter into an HCP is lost if the area at issue is also subject to regulation under critical habitat" rules, he explained.

Campos said Congress needs to codify the "no surprises" rule in order to give private property owners, state and local governments and community organizations the necessary certainty to continue and even expand their species conservation efforts. Such regulatory certainty "would help property owners, builders and developers to undertake long-range planning and development operations, confident that the time, money and effort devoted to creating HCPs will not be lost because a federal agency changes its mind about what a species may need for recovery," he said. Read our press release or contact Jason Lynn, 800-368-5242, x8470.

NAHB Discusses ESA Enhancements with Interior Secretary Norton
NAHB Executive Vice President and CEO Jerry Howard’s meeting with Interior Secretary Gale Norton and Craig Manson, Assistant Secretary for Fish & Wildlife and Parks, provided an excellent opportunity last week to discuss NAHB's top priorities for Endangered Species Act enhancements in the context of both legislative and regulatory solutions. Howard told the Secretary about NAHB's active support for Rep. Dennis Cardoza's (D-CA) recent bill (H.R. 1299) on critical habitat protections, and our efforts to work with House Resources Committee Chairman Richard Pombo (R-CA) to get elements of the Cardoza bill included in the Chairman's proposal. Howard also thanked Secretary Norton and Assistant Secretary Manson for recent administrative modifications to critical habitat rules. On her part, the Secretary confirmed the need for NAHB and other groups to garner more support in Congress for further administrative reforms. To view the Cardoza bill, click here and type H.R. 1299 in the box in the upper left. For more information, contact Jason Lynn at x8470. [return to top]

Builders Support House-Passed OSHA Reform Package
The House on July 12 passed a package of four Occupational and Safety Health Administration (OSHA) bills sponsored by Rep. Charlie Norwood (R-GA) that would make regulatory compliance more cost-effective for small businesses, advance housing affordability and continue to keep home builders safe on the jobsite. While NAHB supports all four bills, in a letter to all House members prior to consideration of the OSHA reform package, the association identified H.R. 739 and H.R. 742 as “key votes” because of their impact to the housing industry. H.R. 739 would allow OSHA to give businesses more than 15 days to respond to a citation and H.R. 742 would make it easier for companies to recover attorneys' fees when they successfully defend themselves against a citation. Senators Johnny Isakson (R-GA) and Mike Enzi (R-WY) have committed to introducing companion reform measures in the Senate later this year. Details are available in our press release, or contact Jenna Morgan Hamilton at x8470. [return to top]

Senate Panel Boosts Funding for Job Corps
The Senate Appropriations Committee last week approved its fiscal 2006 Labor-Health and Human Services-Education Appropriations bill. Of particular interest to NAHB, appropriators voted to fund Job Corps at $1.552 billion in fiscal 2006, an increase of $30.1 million over the previous fiscal year. The Administration had pushed for a $30 million reduction in Jobs Corps funding. NAHB strongly opposed any funding cuts, citing the importance of the program to the workforce training programs offered by the Home Builders Institute (HBI). Additionally, the Responsible Reintegration of Youth Offenders program was allocated $50 million in fiscal 2006, the same amount it received the prior year. The Administration and the House have sought for several years to eliminate the program; however, NAHB has consistently lobbied Senate appropriators to maintain the program because it provides a source of funding for HBI's Project CRAFT program.
Senate appropriators also recognized HBI and the Project CRAFT program in their official committee report, stating:

"The Committee recognizes Project CRAFT, a program of the Home Builders Institute, the workforce development arm of the National Association of Home Builders, as a modern intervention technique in the rehabilitation and reduced recidivism of adjudicated youth. The Committee also acknowledges the importance of housing to our Nation's economy and the role Project CRAFT plays in preparing young people to join the residential construction industry's workforce. The Committee therefore encourages the Department to replicate Project CRAFT to bring its outcomes-oriented approach to adjudicated juveniles throughout the country in order to help them become members of this industry's workforce and spur the Nation's economy."

Senate appropriators also provided $1.3 billion in funding for grants under the Carl D. Perkins Vocational Education grant program. Perkins funds are used by many community colleges in cooperation with state and local HBAs to conduct training programs that bring young people into the industry. The panel also provided $10.5 million in funding for the Susan G. Harwood Training Grants under OSHA. The NAHB Research Center and NAHB have been past recipients of the grants, which are used to help create and offer safety training programs for NAHB members. The full Senate is expected to consider the fiscal 2006 Labor appropriations bill in September. The House approved its version on June 24. For more information, contact Jenna Morgan Hamilton at x8470. [return to top]

NAHB Seeks Support for GSE Regulatory Reform Bill
NAHB sent a letter last week to the full House of Representatives in support of H.R. 1461, the “Federal Housing Finance Reform Act of 2005.” The bill, which would revamp the regulatory structure of the government-sponsored enterprises (GSEs) Fannie Mae, Freddie Mac and the Federal Home Loan Banks, was approved by the House Financial Services Committee this spring. NAHB’s letter says that even though the legislation is not perfect, it is a meaningful, bipartisan compromise that Congress should act on. NAHB also sent a letter to the membership of the Republican Study Committee (RSC) in support of the Affordable Housing Fund (AHF) contained within H.R. 1461. This letter was copied to the House Republican leadership. The RSC had expressed significant concerns with the AHF and publicly opposed the bill being taken up on the floor if their concerns were not addressed. Financial Services Committee Chairman Mike Oxley (R-OH) proposed compromise language supported by NAHB that strengthens the bill to address the RSC's issues.

NAHB also continued to meet last week with key House members who can help us protect H.R. 1461 and defeat any hostile amendments. NAHB held a luncheon briefing on GSE reform for the housing/banking staffers of the Blue Dog Democrats on July 15 in an effort to educate their caucus on NAHB's GSE concerns and positions before the bill comes to the House floor for consideration.  It is still possible that the full House could take up the bill before the end of July, but no vote has been scheduled.

On the Senate side, Banking Committee Chairman Richard Shelby (R-AL) has stated that he wants to mark up GSE legislation during the last week of July, just prior to the August congressional recess. It remains to be seen whether he will meet that goal. NAHB continues to meet with members of the Banking Committee as well as other key Senators to press our priorities on GSE reform legislation. For more information, contact Greg Brown or Scott Meyer at x8470. [return to top]

Hearings Held on Terrorism Insurance Risk Act (TRIA)
Congressional activity on extending the federal backstop for terrorism insurance resumed last week when both the House Financial Services and Senate Banking Committees held hearings on the issue. Specifically, the hearings dealt with the U.S. Department of Treasury's recently released analysis of the Terrorism Insurance Risk Act (TRIA). Treasury Secretary John Snow testified before both committees and said that the Administration opposes a straight extension of TRIA and would rather see a continuation that recognizes the temporary nature of the program, the rapid expansion of private market development and the need to reduce taxpayer exposure.

Senate Banking Committee Chairman Richard Shelby (R-AL) has long opposed a taxpayer-supported terrorism insurance program but does support some limited extension of TRIA that transitions the private market back into the primary position of terrorism insurance coverage. House Financial Services Committee Chairman Mike Oxley (R-OH) has made similar remarks about extending a revised and revamped TRIA and both chairmen seem intent on acting before the expiration of the current program at the end of this year. NAHB continues to work closely with our coalition partners to ensure that TRIA is extended in the most effective form for protecting the real estate and development industries. For more information, contact Greg Brown at x8470. [return to top]

Employer-Assisted Housing Bill Unveiled in Congress
Senator Hillary Clinton (D-NY) and Rep. Nydia Velazquez (D-NY) have introduced the “Housing America's Workforce Act of 2005,” S. 1330 and H.R. 3194, respectively. The legislation would expand housing opportunities by encouraging businesses to offer housing assistance to their employees. The bills provide an employer tax credit for companies that establish an employee housing assistance program. Further, the legislation provides tax relief to employees by allowing them to exclude the benefits of an employer-assisted housing program from their taxable income. Finally, the bills establish a competitive grant program for nonprofit housing organizations or local governments that provide assistance for the operation and administration of an employer-assisted housing program. NAHB was instrumental in helping to gain support for the bills prior to introduction and NAHB sent letters of support to both Senator Clinton and Rep. Velazquez. NAHB is also helping to coordinate possible media events between the New York State Home Builders Association and the Clinton and Velazquez offices. To view the legislation, click here and type the bill numbers in the box in the upper left hand corner. For further information, contact Greg Brown at x8470. [return to top]

Senators Seek Compromise on Estate Tax Repeal
Senators Jon Kyl (R-AZ) and Max Baucus (D-MT) are working to craft a bipartisan compromise that would allow estate tax relief to move forward in Congress. The House has already voted to permanently repeal the federal estate tax when it completely phases out in 2010. However, the Senate has failed to follow the House lead because of the high cost of repeal (estimated at $299 billion) and the perception that this action would only benefit wealthy Americans. The Kyl-Baucus plan tentatively calls for a permanent $8 million exemption from the estate tax ($4 million for single filers), indexed to inflation. Any estate value above the $8 million exemption would be taxed at the long term capital gains rate, which is currently 15% (though the capital gains rate is scheduled to go back up to 20% in 2009). NAHB will continue to work with a coalition of business groups to target Senators who may be in favor of a compromise. For more information, contact Jim Tobin at x8470. [return to top]

Property Rights Bill Targets Eminent Domain
In the aftermath of the Supreme Court Kelo decision that allows local jurisdictions to exercise their right under eminent domain to take private property in the name of economic development, House Judiciary Chairman Jim Sensenbrenner (R-WI) and Ranking Member John Conyers (D-MI) introduced H.R. 3135, legislation that would prevent the use of federal funds for construction projects that use “economic development” as the reason for taking private property. The bill has more than 100 bipartisan cosponsors. In addition, legislation has been introduced in more than 20 states to block the use of eminent domain for “economic development.”

NAHB convened a conference call with the Senior Officers to discuss the situation and the Senior Officers unanimously directed NAHB staff to draft a resolution on eminent domain to establish policy for the association. Legislative and Political Relations is working in tandem with the Legal Department to prepare a resolution for consideration at the Summer Executive Committee meeting and the September Fall Board of Directors meeting in Reno, NV. To view the House 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]

Conferees Named for Energy Bill
The House and Senate have named conferees for the energy bill (H.R. 6). NAHB has sent a letter to all conferees advocating the inclusion of energy efficiency tax credits for new homes, existing homes and multifamily property. For more information, contact Allen Segal at x8470. [return to top]

Housing Bill Unveiled to Help Military Personnel
Rep. Jim Ryun (R-KS) has introduced H.R. 3186, the “Build Homes Act,” legislation that would help enlisted military personnel to qualify for Low Income Housing Tax Credit housing. The bipartisan measure has the support of NAHB. To view the bill, click here. For more information, contact Greg Brown at x8470. [return to top]

Softwood Lumber Talks Resume
NAHB on July 15 met with the lead negotiator for the United States Trade Representative (USTR) on the Canadian softwood lumber issue in advance of negotiations between the two countries scheduled for this week in Washington. NAHB reiterated the association's support for free trade and opposition to trade restraints as part of any negotiated framework. NAHB also urged USTR to fully consider lumber consumer interests in negotiations, and to consult with us during next week's talks. The talks are not expected to be very productive as Canada and the U.S. are still waiting for an important NAFTA decision later this summer or fall. Nonetheless, NAHB will be closely monitoring the discussions and working with our allies on the Hill to influence the outcome in our favor. For more information, contact Jason Lynn at x8470. [return to top]