During the two-day markup, scores of amendments were offered to address lawmakers' concerns over specific provisions in the bill and to improve the overall legislation. The House panel approved several amendments that NAHB believes will enhance the bill: These include:

• Portfolio limits. An amendment offered by Chairman Frank and Rep. Gary Miller (R-Calif.) more precisely defines the types of risks that the regulator should consider in overseeing the enterprises' portfolios. Specifically, it says that standards must be based solely on mission and safety and soundness considerations, and not on any broader concerns such as systemic risk. This is intended to preclude any broad regulatory interpretation of the portfolio criteria as requiring massive portfolio cuts that could severely disrupt the mortgage markets and impede the enterprises' pursuit of their housing mission.
• Capital requirements. An amendment by Chairman Frank and Rep. Miller directs the regulator to review any increases in minimum capital requirements and to rescind these increases once the issues that led to them have been successfully resolved or no longer exist.
• Affordable Housing Fund. In its first year, the fund will disburse grants for the construction of affordable housing in areas affected by Hurricane Katrina. In its second through fifth and final year, the fund will be used for affordable housing projects nationwide. NAHB believes that the allocation mechanism for the new fund should be based on how well a project meets a community's housing needs rather than on the tax status of the sponsor. An amendment offered by Rep. Randy Neugebauer (R-Texas) would achieve this by ensuring a level playing field for both for-profit and non-profit groups competing for the funds.
• Regulatory Structure. An amendment offered by Housing Subcommittee Chairwoman Maxine Waters (D-Calif.) adds two independent members to the regulator's advisory board to include a greater emphasis on housing mission. They would be required to have experience in the fields of financial services, housing finance, affordable housing or mortgage lending.
• Housing Goals. Rep. Stephen Lynch (D-Mass.) won approval of an amendment to add single-family rental housing to the housing goals for Fannie Mae and Freddie Mac.

In the Senate, legislative action on GSE regulatory reform remains quiet. Senate Banking Committee Chairman Chris Dodd (D-Conn.) continues to maintain that this issue is a priority for his committee and that he would like to move legislation by the August recess. However, Dodd has yet to hold hearings on the topic or release draft legislation on GSE reform.

To view the House bill, click here and type H.R. 1427 in the box at the center screen. For more information, e-mail Scott Meyer or contact him at 800-368-5242, x8144.

• Raise the 1994 coverage limits for residential flood insurance policies from $250,000 for structures and $100,000 for contents to $335,000 and $135,000, respectively. Non-residential properties would see an increase from $500,000 to $670,000.
• Direct the Federal Emergency Management Agency  (FEMA) to conduct a comprehensive review of the nation’s flood maps to ensure that they reflect accurate risks to home owners.
• Require FEMA to submit annual financial reports on the NFIP to Congress.
• Phase-out subsidies for vacation homes, second homes and non-residential properties.
• Require property owners to be notified of the availability of flood insurance and escrow for flood insurance.
• Provide additional living expense coverage for temporary housing immediately after a flood.

NAHB will closely monitor the legislation as it moves through the legislative process and work with lawmakers to ensure that federally-backed flood insurance remains available and affordable and that the program is financially stable.  To read the House legislation, click here and enter H.R. 1682 in the box at the center of the page. For more information, e-mail Scott Meyer at NAHB, or call him at 800-368-5242, x8144. [return to top]

The House resolution includes a $1.1 trillion cap on all discretionary spending for fiscal 2008—nearly $25 billion more than the White House budget blueprint and also well above the $950 billion in the Senate budget measure. The House plan also projects an overall budget surplus by fiscal 2012 based on enforcement of the pay-as-you-go (“Paygo”) rules, which require any new mandatory spending or tax cuts to be immediately offset by reductions in other parts of the spending bills. The Senate panel also follows the Paygo rules. The annual budget resolution does not have the force of law, and serves simply as a guidance document that expresses the interests of the House and Senate on the spending caps that will be used for each of the appropriations subcommittees as they set out to write the next fiscal year’s appropriations bills. For more information, e-mail Jenna Hamilton or call her at 800-368-5242, x8407. [return to top]

In a related development, Rep. Ed Markey (D-Mass.) this week convened the inaugural hearing of the new House Select Committee on Energy Independence and Global Warming.  Chairman Markey held a hearing with the 15-member panel to discuss and approve rules and has indicated he will hold hearings on climate change both in Washington and abroad, including Greenland. Finally, the House Energy and Commerce Committee Subcommittee on Energy and Air Quality held a hearing on global climate change this week to discuss existing carbon dioxide cap-and-trade programs.  Key concerns included how to determine caps, what industries or sectors is the cap placed on, and how to keep the system simple in order for it to run profitably, effectively and efficiently.  The Bush Administration is actively opposed to cap-and-trade programs. For more information, e-mail Elizabeth Odina or contact her at 800-368-5242, x8570. [return to top]

H.R. 1675, introduced by Rep. Melissa Bean (D-Ill.), directs HUD to suspend mandatory processing of Previous Participation 2530 Certificates electronically until such time as HUD revises its draft proposed regulations that would make changes to the 2530 filing requirements.  The draft proposed regulations contain onerous filing requirements for passive investor participants and establish additional conditions under which participants can be “marked” for purposes of preventing participation in HUD programs.

NAHB, along with a large coalition of housing industry groups, opposes many of the provisions in the draft proposed regulations.  HUD was asked to revise the draft proposed rule, but it has not done so.  Members of Congress asked HUD not to publish the proposed regulation.  Although HUD has not published the proposed regulation, housing industry groups have no assurances that it will withhold the regulation indefinitely.  Housing industry groups asked members of Congress to introduce H.R. 1675 to ensure that HUD will not proceed to publish an onerous proposed regulation.  The same day as H.R. 1675 was passed, HUD published new guidance revising filing requirements for passive investors.  However, it is uncertain whether HUD will leave this new guidance in place, and there remains confusion as to how it will actually be applied. 

For more information, e-mail Claudia Kedda or contact her at 800-368-5242,  x8352. [return to top]

This year, drive volunteers will be taking part in the National Membership Day webcast on Tuesday, May 22, from 2 p.m. to 5 p.m. EST.  During the program, the volunteers will be making solicitation phone calls to make sure that Associates are aware of the drive and the importance of supporting NAHB’s legislative efforts. Associate members are a powerful and growing force within NAHB.  Making our voices heard within the association and on Capitol Hill ensures that the housing industry stays vibrant.  Many thanks for your support!  For more information about  BUILD-PAC, or the 2007 Associates BUILD-PAC Drive, e-mail Agustín Cruz, or contact him at 800-368-5242, x8431. [return to top]

Members of the building industry who are concerned about the legislative process and its impact on the health of their business and the nation's housing sector will want to mark their calendar for Wednesday, June 6. This date marks the association's most important grassroots event of the year -the NAHB Legislative Conference, which kicks off NAHB's spring board meeting in Washington, D.C. This annual event provides an ideal opportunity for association members to share their concerns on housing-related issues with lawmakers on Capitol Hill and to urge their representatives and senators to support policies that will keep the economy moving forward and get the housing industry back on track. In these challenging times – when other interest groups are clamoring to push their agenda in Washington – a strong builder turnout will send a powerful message to members of Congress: Housing must remain a national priority! Read more about it and register to participate here, or contact Jessica Boyce at 800-368-5242, x8334.