Compromise Clears Way for Consideration of GSE Bill
The House Republican leadership has apparently reached a compromise with conservative members of the House Republican Study Committee that will allow government-sponsored enterprise (GSE) legislation, H.R. 1461, to move to the House floor for a vote. The RSC is opposed to the affordable housing fund provision in the bill, contending that the fund could be used by liberal advocacy groups to promote their agenda under the guise of affordable housing charities. The deal between the bill’s sponsors and RSC members would include further restrictions prohibiting groups from using grants for lobbying or advocacy, and paves the way for the full House to consider the measure as soon as the week of Oct. 17.

Earlier last month, House Financial Services Committee Chairman Michael Oxley (R-OH) and Subcommittee Chairman Richard Baker (R-LA) proposed an amendment to tie the affordable housing fund to Hurricane Katrina relief efforts by giving priority status to devastated areas during the fund’s first two years. Aimed at ensuring that the GSEs fulfill their mission of providing support for affordable housing, the fund would be phased in at 3.5% of their after-tax profits for the first two years and 5% of their profits in the following years, with a sunset after five years. NAHB is closely monitoring the movement of the bill and analyzing the new compromise language. NAHB will be working with appropriate Hill staff to target support from key members of Congress before the legislation comes to a vote.

In the Senate, the status of GSE reform legislation has remained unchanged since S. 190 passed the Senate Banking Committee on a party-line vote in late July. NAHB has opposed the Senate committee’s bill for its over-reaching and potentially devastating effects on the nation’s mortgage markets. No efforts have been made to negotiate a consensus bill since S. 190 emerged from the committee, and with a wide gulf separating its supporters and opponents, its future remains unclear. Committee Chairman Richard Shelby (R-AL) continues to oppose the creation of an affordable housing fund, whether or not it is tied to Katrina recovery efforts. To view the GSE legislation, click here and type S. 190 or H.R. 1461 in the box in the upper left hand corner. For more information, contact Greg Brown or Scott Meyer at 800-368-5242, x8470.

Senate Reauthorizes Violence Against Women Act
The Senate last week approved S. 1197, legislation to reauthorize the Violence Against Women Act (VAWA) of 1994. The bill would add a new section to the law that would address the housing needs of victims of domestic violence. NAHB expressed concerns to lawmakers that some of the housing provisions in S. 1197 could inadvertently create potentially dangerous situations for all residents in Section 8 rental properties. When the bill was considered by the Senate Judiciary Committee, the panel adopted a number of NAHB-supported changes and amendments.

The House earlier this month approved the Department of Justice Reauthorization Act (H.R. 3402), which contains a four-year extension of VAWA. The House-passed bill does not include the new housing section. The House is facing political pressure to pass S. 1197 because the 1994 act expired on Sept. 30 and the Senate is not expected to consider H.R. 3402 in the near future. NAHB will continue to pursue additional improvements as VAWA reauthorization is considered in the House and later in conference. For more information, contact J.P. Delmore at x8470. [return to top]

Homeownership Tax Credit Proposed for Katrina Relief
Senator Rick Santorum (R-PA) proposed a targeted homeownership tax credit (HOTC) for the Gulf Coast during a Senate Finance Committee hearing last week on how tax policy can help businesses and communities rebuild in the Hurricane Katrina-ravaged areas. Treasury Secretary John Snow, the featured witness at the hearing, acknowledged that the HOTC was also an Administration initiative and that he was "willing to work" with Senator Santorum on possibly crafting a HOTC for the Gulf region. NAHB staff is following up with Finance Committee and Treasury staff on the targeted HOTC proposal. For more information, contact Jim Tobin at x8470. [return to top]

NAFTA Verdict Finds No Basis for Lumber Duties
In another victory for NAHB in its ongoing fight to end punitive tariffs on Canadian softwood lumber, a unanimous decision last week by a North American Free Trade Agreement (NAFTA) found that Canadian lumber exports into the U.S. are not subsidized. U.S. law allows countervailing duties to be imposed only upon two conditions: that a foreign supplier is benefiting from subsidies, and U.S. producers are being injured, or threatened with injury, as a result. An earlier unanimous NAFTA ruling found that there was no injury or threat of injury. The latest decision found that there was no subsidy.

For the fifth time, the NAFTA panel found that the calculations used by the U.S. Commerce Department to determine if Canadian lumber is subsidized are flawed. The NAFTA panel had previously called on the Commerce Department to reduce its countervailing duty. On July 13, the department responded with a finding that Canadian lumber received a 1.21% subsidy, down significantly from the 17.2% rate it had previously calculated. Nevertheless, it has continued to collect countervailing duties of 17.2%, and anti-dumping duties averaging 4% on Canadian lumber.

Last week’s NAFTA ruling determined that the subsidy is below 1%, which under U.S. law is de minimus and not subject to duties. The NAFTA panel gave the U.S. until Oct. 28 to comply. For more information, contact Jason Lynn at x8470.
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Builders Urge Commerce to Rescind Duties on Mexican Cement
NAHB met with Department of Commerce officials last week to discuss the ongoing dispute over anti-dumping duties on Mexican cement, and continuing shortages of cement reported in many regions of the country. NAHB once again communicated the industry's concerns that these duties are restraining the supply of cement from Mexico and should be removed. NAHB also briefed officials on the latest information regarding the availability of key building materials throughout the country and in the hurricane ravaged Southeast.

Commerce staff indicated that Mexican officials would be in Washington this week to discuss a possible negotiated settlement to the dispute over cement, and wanted the building industry's views on what the settlement should include. NAHB indicated that Commerce must place pressure on  U.S. cement industry officials to encourage them to discuss a settlement, and that any negotiated agreement must increase Mexican shipments to Florida and other states reliant  on imports of cement. For more information, contact Jason Lynn at x8470. [return to top]