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Builders Awaiting Legislative Draft of Senate Immigration Bill
Led by Senators Ted Kennedy (D-Mass.), Jon Kyl (R-Ariz.), and Arlen Specter (R-Pa.), a group of Senate lawmakers on May 17 finally reached a behind-the-scenes deal on a comprehensive immigration reform bill. That legislation—the drafting of which has not yet been completed—is expected to include provisions addressing border security, interior enforcement, employer verification and enforcement, future flow immigrant programs and a work authorization program for the 11-12 million illegal immigrants currently in the United States. The bill has not been vetted by any Senate committee, and has instead been placed immediately on the calendar for full Senate consideration beginning early next week.
Of particular concern to NAHB members in the backroom Senate negotiations is language that would require general contractors to be held liable for the legal status of all of their subcontractors’ employees. NAHB has vigorously opposed efforts to include this language—spearheaded by the Department of Homeland Security and present in several of the drafts of the legislative language NAHB had been able to secure—and is working with every available Senate office and federal department to highlight our concerns with this provision and underscore that NAHB members cannot support legislation that would include this stipulation. Key Congressional Contacts in Arizona have been contacting Senator Kyl, who is leading the charge to craft the employer-related title of the bill, to urge him to push back on DHS’s demands for direct links between contractors and subcontractors.
The subcontractor and intent/liability issues are just two of many potentially troubling provisions in the massive comprehensive immigration reform bill, which runs several hundred pages long. NAHB also remains concerned about the potential to expand the scope of Davis-Bacon regulations to all U.S. jobsites that use an immigrant worker, and whether excessive labor provisions have been added to the bill that would place U.S. workers at a competitive disadvantage to immigrant visa holders. Additionally, NAHB will be examining the bill to see if it would increase opportunities for frivolous lawsuits against employers, and we will be paying particular attention to the employer requirements in the new, mandated, employer verification system to ensure that the system is workable, efficient and fair. Other interested stakeholders including the unions and immigrant rights groups continue to highlight many areas of key concerns that will keep them from supporting a final bill. The AFL-CIO has already indicated that it will oppose the entire bill.
Reaching a final compromise on immigration reform in the Senate may be difficult, as Democrats and Republicans and the various business, union and immigrant rights constituencies chime in on the effort. Senate Majority Leader Harry Reid (D-Nev.) has indicated that the scheduled time prior to Memorial Day will be the only period this year that the Senate will consider immigration reform legislation. Should the Senate be successful, the House will move to take up the issue sometime in July. For more information, contact Jenna Hamilton at 800-368-5242, x8407.
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Key Pro-Housing Amendment Passes As House Begins GSE Debate
The U.S. House of Representatives yesterday began debate on H.R. 1427, the Federal Housing Finance Reform Act. The bill would strengthen and safeguard the financial health of the housing government-sponsored enterprises (GSEs) -- Fannie Mae, Freddie Mac and the Federal Home Loan Banks -- while also preserving their vital housing mission. In a key vote for NAHB, lawmakers approved a pro-housing amendment offered by Reps. Melissa Bean (D-Ill.), Randy Neugebauer (R-Texas), Dennis Moore (D-Kan.) and Gary Miller (R-Calif.) that would clarify that a new regulator must base its evaluation on the risk of Fannie Mae’s and Freddie Mac’s portfolio holdings solely on mission and safety and soundness considerations, and not on broader concerns, such as systemic risk. This amendment ensures that a regulator could not use an overly broad interpretation of risk to unnecessarily constrain portfolio activities of Fannie Mae and Freddie Mac, which could disrupt the mortgage markets and impede the enterprises’ pursuit of their housing mission.
In addition, NAHB key-voted three other anti-housing amendments that were defeated handily or withdrawn. These amendments would have restricted GSE portfolios, eliminated the affordable housing fund and prevented conforming loan limits from being raised in high-cost areas. The chamber adjourned late Thursday evening after more than five hours of debate on numerous amendments and is expected to finish work on the bill and cast a final vote on Tuesday. For more information, contact Scott Meyer at 800-368-5242, x8144.
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Builders Educate Lawmakers on Green Building
Testifying on May 15 before the Senate Environment and Public Works Committee, NAHB Green Building Subcommittee Chair Ray Tonjes told Congress how NAHB members are bringing green building to the mainstream by developing affordable, energy-efficient and environmentally friendly construction techniques. Tonjes, a custom builder from Austin, Texas, noted that the recent strength and growth of green building is due in large part to is voluntary nature, which provides builders and developers the flexibility that is essential for incorporating the principles of sustainable design. "Voluntary, market-driven green building standards are preferable to mandates, which can reduce the incentive and the market pressure to adapt and to change," he said. Tonjes called on Congress to keep the market free of mandates, to strive towards the greatest energy- and resource-efficient buildings available and to extend and expand the federal tax credits passed as part of the Energy Policy Act of 2005. For more information, see NAHB's press release or contact Elizabeth Odina at 800-368-5242, x8570.
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Lawmakers Adopt $2.9 Trillion Budget Plan
House and Senate lawmakers on May 17 adopted a $2.9 trillion budget plan for fiscal 2008, setting the stage for appropriators to kick off markups and floor consideration of the fiscal 2008 appropriations bills. The final budget emphasizes balancing the budget in five years without big spending cuts. It assumes higher revenue gains by allowing the President's 2001 tax cuts to expire. Under the plan, the tax cuts could potentially be extended if future offsets are found to ‘pay for’ them under the pay-as-you-go (PAYGO) rules that would require new mandatory spending or tax cuts to be offset. The budget resolution officially creates a PAYGO rule in the Senate. The House adopted a PAYGO rule earlier this year, though both chambers can waive the rule under certain circumstances.
The deal, which was crafted by House Budget Committee Chairman John M. Spratt Jr, (D-SC), and Senate Budget Committee Chairman Kent Conrad (D-N.D.), would allow $954.1 billion in fiscal 2008 discretionary spending. That total, which does not include war spending, is $21 billion above the White House’s fiscal 2008 budget request. Democratic leadership is eager to boost domestic spending on education, veterans’ program and other programs they maintain were neglected during the past number of years. Yet, spending levels remain a concern. On May 11, the White House indicated that it would recommend a presidential veto for any spending bills that exceed the President’s original request.
Although the annual budget resolution is non-binding and does not become law, it sets out the spending limits for each of the appropriations subcommittees. Now that the cap is in place, appropriators began considering their fiscal 2008 bills on May 18, with a markup in the House on the Homeland Security Appropriations bill. The Homeland Security bill is anticipated to be the first spending bill considered by the House this year, and the chamber is expected to complete all of its appropriations bills in June, with the possible exception of the Defense Appropriations bill, which may be held until later in the cycle as debate continues on the Iraq war. The Senate will begin marking up its fiscal 2008 bills in July, and appropriators still believe that they will be able to complete work on all the spending bills before the fiscal year-end deadline on September 30. For more information, contact Jenna Hamilton at 800-368-5242, x8407.
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Bill Addresses HUD Role on Clearing Program Participants
The Senate Banking Committee this week approved H.R. 1675, the Preservation Approval Process Improvement Act of 2007. The measure, which passed the House last month, is designed to make it easier to invest in affordable housing by easing overly burdensome filing requirements to participate in U.S. Department of Housing and Urban Development programs. To ensure that they are reputable and will honor their legal, financial and contractual obligations, participants in HUD programs, including FHA mortgage insurance, are required to submit information on their previous business with the department through an electronic reporting system.
H.R. 1675 would suspend this mandatory process until HUD makes changes to draft regulations it has proposed for the filing requirements. HUD’s proposal contains onerous filing requirements for passive investor participants and establishes additional conditions under which participants can be prevented from taking part in its programs.
NAHB advocacy staff members will continue to support full Senate passage of the legislation and work with HUD to improve the proposed participation clearance process. To read the bill, click here and enter H.R. 1675 in the box at the center of the page. For more information, e-mail Claudia Kedda or Scott Meyer at NAHB, or call them at 800-368-5242 x8352 and x8144.
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House Panel Approves Eminent Domain Bill
The House Agriculture Committee on May 17 passed by voice vote H.R. 926, the Strengthening the Ownership of Private Property Act of 2007. Introduced by Rep. Stephanie Herseth (D-S.D.), the measure would prohibit state and local governments from using federal funds to condemn property for the purpose of economic development. This bill is in response to the 2005 U.S. Supreme Court’s Kelo decision, which affirmed that taking property solely for economic development is a valid public use.
Although H.R. 926 does spell out a series of exempt activities, such as condemning land for a public utility or a road, NAHB has concerns that this language is too narrow. NAHB will work with the bill’s sponsors to clarify the legislative language to ensure that it is consistent with NAHB policy. The bill must still be considered by the House Transportation and Infrastructure Committee, the House Financial Services Committee, the House Natural Resources Committee and the House Education and Labor Committee. For more information, contact J.P. Delmore at 800-368-5242, x8412.
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Builders Warily Eye Anti-Arbitration Measure
By a vote of 11 to 2, the Senate Judiciary Committee yesterday passed S. 221, legislation introduced by Sens. Charles Grassley (R-Iowa) and Russ Feingold (D-Wisc.) that would prohibit the use of pre-dispute binding arbitration clauses in livestock or poultry growers contracts. Although the legislation would not impact the use of arbitration in settling residential construction disputes, it does provide a window of opportunity for amendments to expand the bill’s scope. NAHB is taking this threat to arbitration very seriously and will be watching closely as the bill moves forward in the Senate. For more information, contact J.P. Delmore at 800-368-5242, x8412.
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BUILD-PAC Update: Lack of Focus on Congressional Races
With Election Day still 18 months off, the race for the White House has taken center stage early in the campaign season. Already, there has been one Democratic presidential debate and two on the Republican side. House and Senate campaigns are working hard to raise money, but there are too many undetermined variables to make any early predictions. The situation in Iraq, which remains fluid and could change drastically between now and November 2008, will play a significant role in influencing voters when they go to the polls next year. Whether the economy will continue to slow down or take an upward turn is another factor that will impact the decision of the electorate. Retirements in both the House and Senate are yet to be determined but could also play an important role in which party wins control of Congress in 2008. The party that is currently in power usually has fewer retirements at the end of a congressional session, and this could prove advantageous to Democrats. At this point in time, it is still too early to determine what will drive the 2008 congressional elections. Stay tuned! For more information about BUILD-PAC, contact Meghan Everngam at 800-368-5242, x8259.
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NAHB Grassroots Program to Launch at Spring Board
Be on the lookout for BuilderLink, an updated national grassroots program that will provide opportunities for NAHB members to connect more frequently with their members of Congress. The program is set to debut on Wednesday, June 6 at the 2007 Legislative Conference in Washington, D.C. By developing local grassroots activities that bring NAHB members and their members of Congress together throughout the year, BuilderLink will build on the momentum generated by the annual NAHB conference, which is expected to draw more than 1,000 builders to Capitol Hill to share their concerns on housing-related issues with their representatives and senators. For more information on BuilderLink, contact Molly Murray at 800-368-5242, x8282. To learn more about the Spring Legislative Conference and to register online, click here or contact Jessica Boyce at 800-368-5242, x8334.
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