March 23, 2007

 
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House Bill Kicks Off Immigration Debate
Reps. Luis V. Gutierrez (D-Ill.) and Jeff Flake (R-Ariz.) yesterday moved the immigration debate forward by introducing the first major bill in the current Congress aimed at reforming and updating the nation’s immigration and border security laws. H.R. 1645, The Security Through Regularized Immigration and a Vibrant Economy (STRIVE) Act of 2007, would enhance the nation's border safety, create a new employee verification system and establish a new visa program to manage the future flow of immigrants into the U.S.

NAHB is reviewing the legislative language in the STRIVE Act and looks forward to working with Reps. Gutierrez and Flake and other lawmakers in the House and Senate to advance legislation that overhauls our nation's immigration laws. The reform package should strengthen our economy, protect our borders, provide for an effective program targeted toward the future flow of immigrants into the U.S., create a fair and efficient employee verification system and establish a common-sense path for foreign workers to earn the right to apply for permanent legal status.

The Gutierrez-Flake plan contains language promoted by NAHB that stipulates that all employers are legally responsible and liable only for their direct employees and not their subcontractors. It would also require the Department of Homeland Security and Social Security Administration to develop a new system for employers to verify the legal status of new workers through use of a computer or telephone network. Under the bill, employers who hire new workers from the “future flow” of immigrants into the U.S. must be able to show that they are paying these workers a wage that is either the actual wage paid to a similarly situated worker, or the prevailing wage for that occupation. This represents a major victory for NAHB, which strongly urged lawmakers not to tie wages to Davis-Bacon  requirements.

The STRIVE Act would create a guest worker program that would allow illegal immigrants who arrived in the U.S. before June 1, 2006, to stay in the country for up to six years, providing that they meet several requirements, including paying fines and back taxes, passing background and security checks and learning English. The legislation includes a “touch-back provision” that would require illegal immigrants to leave and re-enter the U.S. legally before becoming eligible for permanent legal status. The guest worker and legalization programs would not go into effect into the Department of Homeland Security certifies that progress has been made in securing the border.

To read the legislation, click here and type the bill number in the box in the center screen. For more information, see the March 26 issue of Nation's Building News or contact Jenna Hamilton at 800-368-5242, x8407.

Anti-Growth a Stumbling Block for Latino Home Buyers

 

 

Ray Fernandez

 

 

In a March 21 address before the National Hispanic Leadership Summit in Washington, D.C., California builder Ray Fernandez outlined several steps that NAHB is taking to advance homeownership opportunities for the nation’s growing Latino community. The forum was sponsored by Sen. Kay Bailey Hutchison (R-Texas), who participated in the event along with Sen. John Cornyn (R-Texas). Fernandez noted that only 27 percent of his fellow Latinos can afford to purchase a house in his home county in San Bernardino County, Calif., and cited statistics from the Tomás Rivera Policy Institute reporting that a $5,000 increase in the price of a home prevents 44,000 Hispanic families in the Golden State from qualifying for a mortgage.

“As we talk about how to make housing affordable, the key subjects are overly burdensome restrictions on land and anti-growth activism that prevent the building of affordable housing,” said Fernandez. “Yet there is hope. NAHB fights every day for the cause of housing affordability by knocking down the barriers to housing and advocating for programs that make housing available and affordable.” He noted that NAHB is working with members of Congress to revitalize and reform the Federal Housing Administration to ensure that home buyers have access to safe, affordable mortgage financing. To help the home building industry’s 2.5 million Hispanic workers learn to speak English and establish successful careers in the construction industry, NAHB, along with its workforce development arm, the Home Builders Institute, has developed an innovative learning program called “Sed de Saber-Construction Edition.”  For more information, see the March 26 issue of Nation's Building News or contact Jim Tobin at 800-368-5242, x8258. [return to top]

House Approves Gulf Coast Housing Bill
By a vote of 302 to 125, the House on March 21 passed H.R. 1227, the Gulf Coast Hurricane Housing Recovery Act, legislation that would help provide affordable housing for low-income residents displaced by the Gulf Coast hurricanes that occurred in 2005. Prior to consideration of the bill, NAHB sent a letter to the full committee highlighting the association’s support for language extending the Disaster Voucher Program until Jan. 1, 2008. Due to the magnitude of the destruction caused by the hurricanes, which decimated entire communities, many families have not yet found permanent housing or jobs and continue to need this vital assistance.

NAHB also indicated support for provisions in the bill that would prevent the expiration or termination of housing assistance payment contracts for multifamily housing properties assisted under Sections 8, 202, 811 and 236 that were damaged or destroyed by Hurricanes Katrina and Rita. At this time, Senate action on a companion bill is uncertain. After passage of the bill, Senate Banking Committee Chairman Christopher Dodd (D-Conn.) indicated that he is currently assessing the best way to address the issue. NAHB will continue to closely follow legislative movements in the Senate. To read the legislation, click here and enter H.R. 1227 in the box at the center of the page. For more information, see the March 26 issue of Nation’s Building News or contact Scott Meyer at 800-368-5242 x8144. [return to top]

Katrina Tax Bill Clears House Panel
This week the House Ways and Means Committee passed by voice vote legislation that would help spur the redevelopment of affordable rental housing in the Gulf Coast.  H.R. 1562, the Katrina Housing Tax Relief Act of 2007, would extend the placed-in-service deadlines for properties financed with Low Income Housing Tax Credits (Housing Credits) allocated as part of the Gulf Opportunity Zone Act of 2005, which would give needed time for projects in Gulf Coast states to be completed once the Housing Credits have been allocated by the states and local housing credit agencies.

The legislation also clarifies that Housing Credit properties that are partially financed through emergency Community Development Block Grant (CDBG) dollars allocated to the Gulf Coast as part of the hurricane recovery effort will not have to reduce their Housing Credit basis.  Finally, on the single-family side, H.R. 1562 allows proceeds from Mortgage Revenue Bonds to be used to repair homes that sustained more than 25 percent damage in the storms.  NAHB has been weighing-in on these issues for several months and submitted testimony last week in support of extending the placed-in-service deadlines. The Katrina Housing Tax Relief Act of 2007 could see floor action next week. To view the bill, click here and enter H.R. 1562 in the box in the center screen. For more information, e-mail Greg Brown or call him at 800-368-5242, x8421. [return to top]

Gore Takes Center Stage on Climate Change
The issue of climate change took center stage on the Hill this week as former Vice President Al Gore testified in two separate hearings in both the House and the Senate.  On Wednesday, Gore testified  at a joint hearing of the House Energy and Commerce and House Science and Technology Committees.  Later in the day, he testified before the Senate Environment and Public Works Committee.  At both hearings, Gore presented recommendations for how Congress should address global climate change that included everything from carbon taxes to cap-and-trade-programs, and beyond.  Regarding housing, he recommended Congress establish a carbon-neutral mortgage association, to operate like a government-sponsored enterprise, that he dubbed “Connie Mae.”   Gore noted that home builders generally have no incentive to go the extra mile in putting extra efficiency measures into homes because it drives up the price of the home. Gore believes “Connie Mae” would help amortize initial costs of added efficiency over time and allow home owners to realize the cost savings from energy efficiency up front.  The “Connie Mae” recommendation was well-received by Sen. Hillary Clinton (D-N.Y.), who thought it was “a terrific idea.” 

Prior to Gore’s appearance on the Hill, the House Energy and Air Quality Subcommittee, chaired by Rep. Rick Boucher (D-Va.), convened a hearing featuring testimony from some of the major coal-burning utilities about how they would address carbon emissions.  Nearly all of the panelists acknowledged a desire for a cap-and-trade program of some sort, but they varied on whom they thought should receive credits.  Most of the utility representatives also acknowledged a sharp increase in consumer energy costs would result from any cap-and-trade programs. NAHB continues to monitor this issue closely as the committees of jurisdiction prepare to draft their first round of comprehensive legislation.  House Speaker Nancy Pelosi (D-Calif.) has indicated she would like to move some form of climate change legislation by the July 4th congressional recess. For more information, e-mail Elizabeth Odina or call her at 800-368-5242, x8570. [return to top]

BUILD-PAC Spotlight: Rep. Artur Davis
Representative Artur Davis (D-Ala.) is serving his third term in Congress and sits on two very influential committees, the House Ways and Means Committee and the Judiciary Committee. With the help of our Alabama BUILD-PAC trustee, Kenneth Chandler, BUILD-PAC supported Rep. Davis in the last three election cycles. Davis is actively working on pro-housing legislation in the 110th Congress. Last week, Davis and Rep. Jim Ramstad (R-Minn.) introduced H.R. 1491, the Affordable Housing Preservation Tax Relief Act of 2007. The legislation would provide relief from recapture or "exit" taxes at the time of sale of an affordable housing property in exchange for the property remaining affordable for 30 years. Davis has been recognized by the Washington Post, the National Journal and CNN as one of the future leaders to watch in Washington. Keep an eye out for him in the coming months. [return to top]
For more information or to contact us directly, please visit www.NAHB.org l ©2007, National Association of Home Builders

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