June 22, 2007

 
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Amendment Puts Immigration Bill Back on Right Track
A bipartisan amendment put forth this week by Sens. Charles Grassley (R-Iowa), Max Baucus (D-Mont.) and Barack Obama (D-Ill.) is critical to putting immigration reform back on the right track. It would improve the bill's employer provisions to enable small business owners to play a constructive role in the enforcement of the new laws. With the Senate expected to take a final vote next week on S. 1639, the Secure Borders, Economic Opportunity and Immigration Reform Act of 2007, NAHB sent a letter to all 100 senators calling on them to support the amendment and designated its passage as a “key vote” because of its importance to the housing industry.

“The success or failure of the new immigration laws will depend greatly on how effectively small business owners will be able to follow and enforce the new rules,” the letter stated. “While NAHB is committed to enacting reforms that will give the federal government the necessary tools to prosecute employers who knowingly violate the law, it is imperative that the enforcement system created is fair, efficient and workable for all U.S. employers. Should this amendment fail, NAHB will key vote in opposition to final passage of S. 1639.”

To further underscore the significance of this issue to the housing and small business community, home builders from across the country last week visited dozens of Senate offices urging their senators to vote for the Grassley-Baucus-Obama amendment. “Our message to lawmakers was simple and direct,” said NAHB CEO Jerry Howard. “NAHB wants to work with Congress to craft immigration policy that protects our borders without placing an unfair burden on small business owners.”

As the immigration bill now stands, it would punish small business owners by holding them accountable for the hiring decisions made by their subcontractors. In effect, America’s home builders — along with other U.S. employers who rely on subcontractors — would be required to join a national posse charged with verifying the legal status of millions of workers they never hired in the first place and may have never met. By placing the responsibility of confirming the immigration status of workers with the employers who hire and pay them, the Grassley/Baucus/Obama amendment offers a sensible solution to the enforcement issue. It also makes it possible for employers to act in good faith and to follow the new rules for determining whether a person is in the country legally.

Builders are encouraged to call their U.S. Senators at 1-866-924-NAHB (6242) and urge them to support the Grassley-Baucus-Obama amendment. After dialing the number you will be asked to enter your zip code and then be connected to your first U.S. Senate office. When the first call is complete, stay on the line and you will be connected to your second U.S. Senate office.  Please note:  If you get transferred to the voice mailbox for your first Senator, then the system cannot transfer you to your second Senator. For more information on contacting your Senators, e-mail Molly Murray at NAHB or call her at 1-800-368-5242, x8282.

To learn more about the status of Senate bill S. 1639, contact Jenna Hamilton at x8470. And finally,  please take a moment to view the NAHB immigration ads that ran on June 21 in both USA Today and Roll Call, as well as the Grassley-Baucus-Obama press release issued by NAHB.

Builders Make Headway on Energy Bill
After two weeks of contentious debate, the Senate yesterday evening passed comprehensive energy legislation, H.R. 6, the CLEAN Energy Act of 2007. As the bill was being crafted, NAHB urged senators to address several builder concerns that would require: mandatory energy code requirements for the Federal Housing Administration (FHA), the Rural Housing Service (RHS), and Veterans Administration (VA) housing; regional appliance standards for space heating and air conditioning equipment; states to adopt the 2006 IECC or ASHRAE 90.1-2004 for single and multifamily construction within the next three years; and the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) rating system to be used for new federal construction.  NAHB also worked proactively to extend the current energy efficiency tax credit. 

First, NAHB was successful in mitigating the requirement for all housing that will be guaranteed or insured by FHA, RHS and VA to use the 2006 International Energy Conservation Code (IECC) or the ASHRAE 90.1-2004 standard (for multifamily).  In short, the bill would establish separate compliance criteria for FHA, RHS and VA financing versus traditional financing methods now in use in more than 40 states.  NAHB worked with Senate Banking Committee Chairman Chris Dodd (D-Conn.) to insert language in the bill that allows the secretaries of HUD and Agriculture to waive the energy code mandate if it impacts housing affordability or accessibility.

 Second, NAHB was successful in preventing an amendment offered by Senator Charles Schumer (D-N.Y.) from being voted on.  The Schumer amendment would have required states within the next three years to adopt the 2006 IECC or ASHRAE 90.1-2004 for single and multifamily construction, new construction and “major renovations.”  Further, it would have required states to achieve 30 percent increases above these codes by 2015, with a 50 percent increase by 2022.  If states failed to adopt these measures, the Department of Energy would have become the oversight authority and been able to offer a national model energy code that it would manage.  From NAHB’s perspective, the amendment fundamentally altered the established, consensus-based building code process in the U.S., and gave that authority to the DOE.  NAHB urged opposition to the Schumer amendment and vowed to oppose the final bill if the amendment was adopted. 

Third, NAHB was successful in preventing an amendment by Senator Ben Cardin (D-Md.) from being voted on. The Cardin amendment would require all new federal construction to use the LEED rating system.  NAHB opposed this amendment because the federal government’s endorsement of the LEED rating product sets a dangerous precedent for state and local adoptions. Further, the government’s endorsement of the LEED product is an acceptance of a green building program that is proprietary; that is not an actual construction standard (accredited by the American National Standards Institute), and to which there are clearly-identified alternatives that are not similarly acknowledged by name in the legislation. NAHB was also able to strip out pro-LEED language and amendments at the committee level, as well.    

Finally, H.R. 6 includes NAHB-opposed language that allows DOE to establish regional appliance standards for space heating and air conditioning equipment.  NAHB opposed this provision because regional standards create complex compliance frameworks that are difficult to enforce, potentially leaving builders and contractors liable for enforcement actions.  Also, due to unrelated issues, the tax portion of the bill, which included the NAHB-supported extension of the energy efficiency tax credits, failed to win enough votes to be attached to the final legislation.  We remain confident that any final bill that makes it to the President’s desk will include energy efficiency incentives.  For more information, contact Elizabeth Odina at 800-368-5242, x8570. [return to top]

Bush Signs Law that Suspends HUD Investor Approval Process
On June 15, President Bush signed into law H.R. 1675, the Preservation Approval Process Improvement Act of 2007. The measure 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 suspends 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. 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. [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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