Endangered Species Act Overhaul Advances in House
The House Resources Committee on Sept. 22 passed H.R. 3824, the Threatened and Endangered Species Recovery Act, by a bipartisan vote of 26-12. While the bill incorporates many important reforms supported by the association, there are also some areas of concern. NAHB sent a letter of qualified support to members of the committee and activated grassroots in the committee members’ districts.

Positive aspects of the bill include provisions that: eliminate critical habitat from the statute, strengthen the ESA's "sound science" requirements, protect private property rights, codify the "No Surprises" policy to give private property owners the necessary certainty to continue and even expand their species conservation efforts, and compensate private landowners for takings under the Endangered Species Act (ESA). Provisions of concern include the elevation of recovery plans under the ESA, and a new statutory definition of recovery. Both of these issues could increase regulation under the act.

Some of NAHB’s concerns with the bill were addressed during the Resources Committee markup. Opposed by NAHB, an amendment to strike language to ensure that recovery plans remain guidance documents was defeated. An NAHB-supported amendment to ensure that local and regional land use agencies are consulted when the federal government develops recovery plans was overwhelmingly approved. As the legislation advances, NAHB looks forward to working with its sponsors to make further improvements. To view NAHB’s press release, click here. For more information, contact Jason Lynn at 800-368-5242, x8470.

Katrina Recovery Bill Provides $6.1 Billion in Tax Relief
Congress approved a $6.1 billion tax package last week to help individuals and businesses devastated by Hurricane Katrina, and President Bush was expected to sign the measure in short order. Of interest to members of NAHB, the Katrina Emergency Tax Relief Act (H.R. 3768) allows individuals in disaster zones to use mortgage revenue bonds, which are typically issued by state and local governments, to finance low-interest rate mortgages or loans for repairing damaged homes.

As outlined by the House Ways and Means Committee, key provisions of the relief measure include:
    • Tax relief for housing assistance to dislocated persons 
    • The availability of below-market mortgages in the disaster areas 
    • Extension of the Work Opportunity Tax Credit 
    • An employee retention tax credit 
    • Full deductibility of personal casualty losses 
    • A longer period of time to replace damaged property without incurring tax 
    • Extended deadlines for paying excise and employment taxes 
    • Modification of tax treatment when using a personal vehicle for charitable work 
    • Encouragement of cash donations by individuals and corporations 
    • A waiver of the 10% tax on early distributions from IRAs and pensions for individuals affected  by the hurricane 
    • Assurance that families are not taxed on forgiven debt

Lawmakers are working on another package of hurricane-related tax breaks that will encourage businesses to rebuild in New Orleans and other storm-ravaged areas in Louisiana, Mississippi and Alabama. NAHB is working with the House Ways and Means Committee and the Senate Finance Committee to include housing tax provisions in the next round of tax legislation. To view H.R. 3768, click here and type the bill number in the box in the upper left hand corner. For more information, contact Jim Tobin at x8470.
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Katrina Spawns Flurry of Legislative Proposals
There was a flurry of congressional activity last week in response to the short- and long-term housing impacts from Hurricane Katrina. In addition to a tax relief package passed by both the Senate and the House (see story above), numerous other bills were introduced. Proposals ranged from providing income tax breaks for those who shelter someone displaced by the hurricane to granting the HUD Secretary total waiver authority for programs under his jurisdiction. In the Senate, an amendment to the fiscal year 2006 Commerce-Justice-Science Appropriations bill passed unanimously that created a $3.5 billion emergency housing voucher program that would provide temporary rental assistance to more than 350,000 families displaced by the hurricane. The House has yet to take up a specific housing relief proposal; however, there are ongoing negotiations to craft a package to respond to the evacuees' immediate housing needs. There are indications that a separate proposal dealing with long-term housing issues is also being developed, and will be taken up sometime in October. NAHB continues to work with congressional staff in both chambers to craft an effective package that responds to the crisis. For more information, contact Greg Brown at x8470. [return to top]

Congress Debates Kelo Ruling on Property Rights
The Senate Judiciary Committee and the House Judiciary Constitution Subcommittee last week held separate oversight hearings on the U.S. Supreme Court's Kelo decision, which affirmed that taking property for economic development is a valid public use. The hearings clearly indicated that lawmakers are intent on passing legislation to prevent government from using the economic development justification to take a property. Local politicians testifying against potential congressional action were bluntly told that Congress must respond to this decision and will do so. It is likely that legislation will be considered this year in both the House and Senate, and NAHB also expects that amendments to block the Kelo decision will be offered to one or more Senate appropriations bills. For more information, contact J.P. Delmore at x8470. [return to top]

Lawmakers Agree in Principle to Extend Budget Deadline
Republican leaders in both the House and Senate tentatively agreed to a seven-week continuing resolution (CR) late on Sept. 22 that would keep the government running through Nov. 18, 2005. With the 2005 fiscal year set to expire at midnight on Sept. 30, the measure is needed to keep the government operating after that date. This would give Congress additional time to pass all of its fiscal 2006 appropriations bills in the interim.

The House approved all 11 of its fiscal 2006 appropriations bills prior to the July 4 recess, and the Senate has now passed eight of its 12 bills. However, only two of the fiscal 2006 bills have cleared their conference committees and been signed into law by the President -- the fiscal 2006 Interior-Environment (PL 109-54) and Legislative Branch (PL 109-55) spending bills.

Several appropriators have expressed concern about bringing forward a multi-week CR, worried that it will encourage lawmakers to continue dragging their feet on completing work on the remainder of the fiscal 2006 spending measures. Those concerns mean that it is possible, though unlikely, that lawmakers will negotiate for a shorter time period for the CR. With ongoing hurricane disaster relief action on both floors, and the Senate's ongoing work on Supreme Court nominees, the Nov. 18 CR deadline will likely stand. For more information, contact Jenna Morgan Hamilton at x8470. [return to top]