June 15, 2007

 
Subscribe to NAHB e-Newsletters
E-mail Our Editor
NAHB Home Page
. Browse other NAHB e-Newsletters
. Manage Your Subscription
. Browse NAHB Books and Periodicals
. Search Back Issues
. Plain Text Version
Printer Friendly
Senate to Jump Start Stalled Immigration Bill
On June 7, just 24 hours after more than 1,250 home builders marched on Capitol Hill to discuss legislative priorities for the housing industry and call on their senators to fix a seriously flawed immigration bill, the Senate voted to derail the controversial measure, leaving its ultimate fate unresolved. Builders attending the annual NAHB Legislative Conference in Washington on June 6 were able to meet with their individual senators and weigh in on the issue at the same time that debate on Senate immigration bill S. 1348 was reaching its climax. A motion to shut off debate on the bill failed when it received only 45 out of the 60 votes needed. After it was pulled from the Senate floor, Senate Majority Leader Harry Reid (D-Nev.) insisted the bill was not dead, and late last night Reid and Minority Leader Mitch McConnell (R-Ky.) announced a deal to bring the bill back for consideration as early as the end of next week. However, the situation still remains fluid and it is uncertain whether the bill will be approved by the Senate or become law.

President Bush visited Capitol Hill earlier this week in attempt to revive the bill and endorsed a plan by Sens. Jon Kyl (R-Ariz.) and Lindsey Graham (R-S.C.) that would provide an additional $4.4 billion for border security and work site enforcement. Under the agreement reached yesterday, the Senate will consider about 20 amendments, with half coming from Democrats and half from Republicans. With the Senate agreeing to resurrect the legislation, NAHB has launched a major grassroots letter-writing campaign calling on its members to urge their senators to continue making every effort to pass meaningful comprehensive immigration reform. (On the link above, NAHB members can click the "Take Action" button under "Hot Topic" and after filling out a short registration form will be directed to the letter.) The legislation should provide increased border security, a new employer verification system, a program to address legal immigration into the U.S. in the future and a plan to deal with the 11 to 12 million illegal immigrants who are already here, the letter says.

In the days leading up to the June 7 Senate vote, NAHB lobbyists worked tirelessly to urge senators to adopt amendments to improve the bill. NAHB sent a letter to the Senate leadership designating as a “key vote” an amendment proposed by Sens. Jeff Bingaman (D-N.M.) and Barack  Obama (D-Ill.) that would have allowed workers to stay in the U.S. for up to six straight years instead of having to return to their home country for a full year every two years.

As the chamber debated the amendment on the Senate floor, Bingaman was shown live on C-SPAN holding up NAHB’s letter and reading the following passage: “This system essentially makes the entire program in Title IV unworkable for the construction industry. In the residential construction industry, employers spend much time and resources training employees. To arbitrarily lose valued employees at the end of two years, as they are forced to return home for a full year, creates unnecessary amounts of instability in our workplaces, and wastes scarce employer resources.” The amendment was ultimately defeated by a 57-41 vote.

With immigration reform still unresolved, NAHB launched BuilderLink, its updated national grassroots mobilization program for key federal housing issues in Congress, during the Legislative Conference. NAHB members interested in finding out more information about BuilderLink, or who want to write their lawmakers in support of comprehensive immigration reform that takes into account the concerns of the housing and business community, should e-mail Molly Murray at NAHB or call her at 800-368-5242 x8282. For further information on where the immigration debate stands in Congress, contact Jenna Hamilton, x8470.

Builders Trek to Capitol Hill to Fight for Housing Priorities
The immigration debate took center stage as more than 1,250 builders from across the country arrived in the nation’s capital on June 6 to take part in the annual NAHB Legislative Conference and seek support from members of Congress to promote policies that will keep housing a national priority and expand rental housing and homeownership opportunities nationwide. The builders’ “March on Capitol Hill” attracted the attention of major media outlets, with Forbes running a story entitled “Builders Hit the Hill,” and CNBC, Bloomberg TV and Marketplace Radio reporting on the day’s activities.

Builders discussed a wide range of legislative issues with an impact on housing costs and the financial health of the industry and their businesses, including environmental regulations, tax policy, housing finance and soaring health care costs. In more than 300 individual meetings with their representatives and senators, builders called for action on the following NAHB legislative priorities:

  • Housing’s Impact on the Economy. Noting that housing accounts for more than 16 percent of gross domestic product, lawmakers were urged to support efforts to keep housing on track as the nation’s most important economic engine and wealth builder. Members of Congress were also asked to support legislation that removes regulatory barriers that make home building more difficult and tend to curtail housing production, such as wetlands permitting, climate change legislation and federal storm water permitting program reform.
  • Immigration reform. With the immigration debate reaching its crescendo during the week of June 4, builders told their senators that the housing community could not support Senate bill S. 1348 unless major revisions were made to the legislation. The Senate failed to adequately address NAHB concerns dealing with employment verification provisions, whether contractors will be responsible for the legal status of their subcontractors’ employees and inadequate safe harbor protections, The bill was apparently shelved for the foreseeable future when lawmakers could not garner enough votes to cut off debate and bring the bill to a vote. However, late last night a deal was brokered to revive the measure (See story above for more details).
  • FHA Modernization. Seeking viable alternatives to the volatile subprime market, builders called on Congress to reform the Federal Housing Administration's single-family mortgage insurance programs. FHA could potentially assist tens of thousands more borrowers who need an exit strategy from their subprime mortgage by insuring fixed-rate, adjustable-rate and hybrid adjustable-rate mortgage loans to borrowers with limited cash reserves and/or slightly tarnished credit. Builders called on their representatives to support H.R. 1852 when it goes to the House floor and urged their senators to support FHA revitalization legislation that addresses NAHB policy issues.
  • Government Sponsored Enterprises (GSE) Reform. Legislation reforming the regulatory oversight of the government sponsored enterprises (GSEs) — Fannie Mae, Freddie Mac and the Federal Home Loan Banks — was approved by the House on May 22. H.R. 1427, the Federal Housing Finance Reform Act of 2007, would establish a strong, regulatory framework for the GSEs and safeguard and strengthen their financial health while also supporting their ability to fulfill their housing-related activities. In the Senate, Banking Committee Chairman Christopher Dodd (D-Conn.) has yet to introduce a companion bill. Builders urged their senators to ensure that NAHB policy concerns are addressed prior to passage of any GSE reform bill in the Senate, and called on their House members to ensure that any final compromise with the Senate does not weaken House-passed bill H.R. 1427.
[return to top]
GOP Presidential Contenders Address NAHB Leadership
Highlighting the political clout of builders in the political process, two Republican presidential contenders addressed the NAHB leadership during this month's spring board meeting — former Massachusetts Governor Mitt Romney and Tommy Thompson, a former Department of Health and Human Services Cabinet secretary and Wisconsin governor.

In a June 7 address to the NAHB leadership, Romney stressed his support for the mortgage interest deduction and called for the permanent elimination of the estate tax, tort reform and abolishing unnecessary regulations that hamper the ability of the economy to thrive and grow.
“You create jobs, you create income. You are helping to build a better America and a freer and safer world,” Romney said.

Speaking before the NAHB Board of Directors on June 9, Thompson said that one of his goals if he is elected President is to reform the tax code. “The mortgage interest deduction will never change in a Thompson administration. I know how important it is to your industry and how important your industry is for our country,” he said. On another issue of importance to the housing community, Thompson said that any immigration bill approved by Congress should ensure that contractors are not responsible for the legal status of their subcontractors’ employees.

This February, Senator Chris Dodd (D-Conn.), a Democratic candidate for the 2008 presidential election, spoke to our board during the International Builders' Show in Orlando.  NAHB, which is officially a nonpartisan organization, has formally invited all of those running for President in the next election to speak to our membership during meetings of the Board of Directors. The fact that Dodd, Romney and Thompson have all taken us up on the offer is a good indication of the stature that NAHB wields in Washington, and the respect that savvy politicians have demonstrated for our powerful membership. [return to top]

Changes Sought for Disabled Veterans Housing Program
Testifying on June 7 before the Subcommittee on Economic Opportunity of the House Committee on Veterans' Affairs, NAHB President Brian Catalde voiced support for the Specially Adapted Housing program and offered several suggestions to expand or improve it to better serve the thousands of severely injured veterans whose homes must be modified to allow them to live independently. Specifically, Catalde called on Congress to simplify paperwork requirements, increase grant limits and authorize the full use of grants for veterans who live with their relatives. These improvements, Catalde said, would help builders and remodelers better accommodate the housing needs and improve the lives of the nation's disabled veterans.

In addition, Catalde noted that some members of the NAHB Remodelers, a council within NAHB representing more than 14,000 members, have already applied their skills to put Specially Adapted Housing grants to good use. "One of NAHB Remodelers' designation programs, the Certified Aging in Place Specialist (CAPS), was created to equip remodelers with specialized skills to meet the requirements of aging home owners and those with accessibility needs," he said. "We encourage each of the VA's Specially Adapted Housing counselors to take the CAPS certification training to gain a greater understanding of the remodeling skills necessary to fully utilize these grants."  For more information, contact Scott Meyer call him at 800-368-5242 x8144. [return to top]

Senate Debates Massive Energy Bill
The Senate is currently debating a sprawling energy bill, H.R. 6, the Clean Energy Act, that includes several provisions aimed at moving the nation towards energy efficiency, conservation,and to begin addressing the challenges of climate change.  This legislation includes a number of controversial provisions that have raised the ire of environmentalists, automakers, appliance manufacturers and the Bush Administration, among others.  Some “blockbuster” amendments are expected that would add mandates for the controversial coal-to-liquids technology for producing additional alternative fuels, requiring utilities to use a certain percentage of their energy from renewable sources,and raising corporate average fuel economy (CAFÉ) standards for automobiles. 

The bill seeks to require a number of efficiency measures that cover lighting, green building, home appliance standards, and significant energy code increases.  NAHB is monitoring a number of provisions and potential amendments that would directly impact home building, including regional appliance standards, FHA/Energy Code increases, requirements for states to increase building codes to 2006 International Energy Conservation Code or ASHRAE 90.1-2004, and an amendment to restore Leadership in Energy Environmental Design (LEED) mandates for new federal construction.

 On June 12, the House Oversight and Government Reform Committee, chaired by Rep. Henry Waxman (D-Calif.), approved H.R. 2635, the Carbon-Neutral Government Act. The bill mandates LEED Silver for new federal construction.  NAHB continues to lobby against explicit mandates for the LEED rating system in federal legislation because of the precedent-setting nature of such acknowledgement for a propriety green building product that does not currently meet accreditation criteria to be an official ANSI-approved construction standard.  H.R. 2635 must be reviewed by five additional committees prior to floor consideration. For more information, contact Elizabeth Odina at 800-368-5242, x8570.
[return to top]

House Hearing Focuses on Binding Arbitration Agreements
The House Judiciary Subcommittee on Commercial and Administrative Law on June 12 held an oversight hearing entitled “Mandatory Binding Arbitration Agreements: Are they fair for consumers?”  The hearing focused on the use of mandatory arbitration agreements in the banking, credit card and residential construction industries.  One witness testified about her negative experience with arbitration after she purchased a home with construction defects.  Most of the hearing, however, focused on other industries.  NAHB wrote to the members of the committee prior to the hearing to express our opposition to any attempt to restrict the use of arbitration in consumer contracts.  NAHB strongly supports the use of alternative dispute resolution (ADR), including binding arbitration, in consumer contracts.  NAHB has found that ADR is often the most rapid, fair and cost effective means to resolving disputes—for both the builder and the buyer—arising out of the construction and/or sale of the home.  For more information, contact J.P. Delmore at 800-368-5242, x8412. [return to top]
For more information or to contact us directly, please visit www.NAHB.org l ©2007, National Association of Home Builders

To unsubscribe, change your e-mail address, or manage your subscription, CLICK HERE