Washington Update - 03/08/2005 (Plain Text Version)

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NAHB Discusses GSE Concept Papers with Hill Aides

NAHB last week completed a series of concept papers on the government-sponsored enterprises -- Fannie Mae, Freddie Mac and the Federal Home Loan Banks -- that focus on the key areas of the regulatory reform debate: minimum capital, program approval, structure and affordable housing. NAHB staff has been meeting with key congressional aides to seek support on these issues. Additional meetings will take place this week, including appointments between NAHB President David Wilson and key members of the House Financial Services and Senate Banking Committees. These are the lead panels on GSE reform. In addition, the House Financial Services Committee will hold a hearing this week on the role of the Federal Home Loan Banks in the housing finance system.

In a related development, NAHB and the National Association of Realtors last week issued a joint statement of principles in support of stronger regulation that will boost confidence in the nation’s housing finance system. The two groups sounded their opposition to “efforts to privatize, withdraw federal support, reduce the capacity or in any other way diminish the ability of the GSEs to provide low-cost housing finance.” NAHB and NAR issued a joint press release announcing the statement. For more information, contact Greg Brown at x8470.

Congress Wary of White House Block Grant Plan

Housing and Urban Development Secretary Alphonso Jackson testified last week before the House Financial Services Committee on the Administration’s proposed HUD budget for FY 2006. Much of the discussion centered on the White House plan to consolidate 18 federal grant programs – including Community Development Block Grants (CDBGs) – into the “Strengthening America’s Communities” (SAC) initiative, which would be administered by the Commerce Department. Appropriations for those programs would dwindle from about $5.3 billion in FY 2005 to only $3.7 billion under the consolidated plan.

Several lawmakers voiced skepticism about the new grant program, and the hearing clearly indicated that the President’s CDBG proposal faces an uphill battle in Congress. Furthermore, bipartisan letters from the Senate and House that outline these concerns will be sent to the White House shortly. Sens. Norm Coleman (R-MN) and Pat Leahy (D-VT) are leading the Senate campaign and Reps. Barney Frank (D-MA) and Chris Shays (R-CT) are spearheading the effort in the House. NAHB is helping to obtain congressional signatures for these letters. For more information, contact Jenna Morgan Hamilton at x8740. [return to top]

House Approves Job-Training Legislation

The House last week passed H.R. 27, the “Job Training Improvement Act,” by a vote of 224-200. The legislation would reauthorize the Workforce Investment Act (WIA), and builds upon reforms made in the WIA that were implemented in 1998. Sponsored by Rep. Howard “Buck” McKeon (R-CA), the measure would consolidate scores of programs into a single $3 billion block grant that would reduce unnecessary rules and regulations, increase flexibility and reduce administrative costs, fund partnerships between community colleges and employers in high-demand industries like residential construction and provide states and localities greater discretion over how to disburse the funds. WIA provides opportunities for private sector interests like the Home Builders Institute, NAHB’s workforce development arm, to partner through such programs as Jobs Corps. The Senate is expected to move similar reauthorization legislation this spring. To view the bill, click here and type H.R. 27 in the upper left hand corner. For more information, contact Jenna Morgan Hamilton at 800-368-5242, x8470. [return to top]

Canadian Trade Minister Meets with NAHB on Softwood Lumber

Canadian Trade Minister Jim Peterson was in Washington last week meeting with various members of the Administration, the Senate and the House on a host of trade issues, including softwood lumber. During his stay in Washington, Peterson requested an impromptu meeting with NAHB and other lumber consumers to discuss our activities on softwood lumber trade. NAHB told Peterson that it is vital for the Canadian government to hold firm in its appeals of the tariffs, and added that the political support for free trade in softwood lumber has been growing. Our arguments were bolstered by the many meetings Peterson had with our allies on Capitol Hill.

NAHB also shared with the Trade Minister and his staff a copy of the “Dear Colleague” and corresponding letter to the President that NAHB has been seeking signatures on. Reps. Jim Kolbe (R-AZ), Roy Blunt (R-MO), Steny Hoyer (D-MD) and Richard Neal (D-MA) recently sent a “Dear Colleague” letter to the full House asking for signatures on a letter to President Bush in support of affordable housing and in opposition to the continuing duties on imported Canadian softwood lumber. When more House members sign on to the letter, it will be sent to the President later this month or in early April. For more information, contact Jason Lynn at x8470. [return to top]

Bush Tax Commission Holds Second Hearing

President Bush’s commission on tax simplification convened for the second time last week in Washington. The meeting focused on the burdens and complexity of the current tax system and the problems associated with the Alternative Minimum Tax. Additional field hearings will be held later this month in Tampa, FL and Chicago. NAHB will be attending these field hearings. Furthermore, NAHB CEO Jerry Howard is scheduled to meet this week with Jeff Kupfer, executive director of the commission, to discuss how NAHB can participate in the process and have its concerns heard. NAHB will continue to advocate for the protection of all housing incentives contained in the current tax code and look for ways to preserve these measures if the commission moves toward an alternative tax system. For more information, contact Jim Tobin at x8470. [return to top]

House, Senate Ready Homeownership Tax Credit Bills

Rep. Rob Portman (R-OH) is set to reintroduce his homeownership tax credit legislation in the next two weeks. The legislation attracted over 300 cosponsors in the 108th Congress. Additionally, Sens. Rick Santorum (R-PA), Gordon Smith (R-OH) and John Kerry (D-MA) plan to unveil a Senate version of the homeownership tax credit on March 16. In the previous Congress, the senators introduced competing measures (S. 198 and S. 875) that collectively garnered more than 50 Senate cosponsors. The bill to be introduced later this month is a compromise measure that will allow the Senate to rally around one piece of legislation. For more information, contact Jim Tobin at x8470. [return to top]

Dodd Bill Would Extend Terrorism Insurance

Senator Christopher Dodd (D-CT) has introduced legislation to extend the Terrorism Risk Insurance Act (TRIA) for an additional two years through the end of 2007. Without an extension, the insurance provisions will expire at the end of this year. The bill, S. 467, would also establish a commission to investigate long-term solutions to the issue of terrorism insurance coverage. A hearing on TRIA was scheduled to take place in the Senate Banking Committee last week, but has been rescheduled for a later date. NAHB continues to monitor the progress of this legislation and is actively engaged with a coalition of organizations pressing for extension of TRIA. To view the bill, click here and type S. 467 in the upper left hand corner. For more information, contact Greg Brown at x8470. [return to top]

Senate Draws Closer to Bankruptcy Vote

The Senate continues debate this week on S. 256, the “Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.” Sponsored by Senator Chuck Grassley (R-IA), the measure contains two provisions important to NAHB members - one dealing with the homestead exemption and one regarding the automatic stay that provides for an expedited process by which a landlord can move to evict a tenant who has declared bankruptcy. NAHB supports the current version of the bill.

Passage of the bill appears to hinge on the fate of an amendment sponsored by Sen. Charles Schumer (D-NY) to prevent violent protesters – including anti-abortion activists -- from escaping court-ordered judgments and fines by filing for bankruptcy. The Schumer amendment will be one of the last considered and its passage would bring down the bill – as it has in the past. House Majority Leader Tom Delay (R-TX) has stated that if the Senate approves S. 256 without Schumer’s amendment or any other “poison pill” provisions, the House would immediately take up and pass the Senate bill. At this point, it is unclear whether Schumer’s amendment will pass or fail. Thus far, supporters in the Senate have defeated all amendments. To view the bill, click here and type S. 256 in the upper left hand corner. For more information, contact J.P. Delmore at x8470. [return to top]

House to Consider Highway Bill

The House Transportation and Infrastructure Committee last week approved the surface transportation reauthorization bill, H.R. 3, which is essentially the same legislation the House passed overwhelmingly last year. Entitled the “Transportation Equity Act: A Legacy for Users” (TEA-LU), the measure would provide $284 billion in guaranteed funding for the six-year authorization bill. The legislation, which is funded at the level agreed upon with the White House, is scheduled to go to the House floor this week. The Senate version of TEA-LU is also set to be introduced this week. In the interim, NAHB continues to work to ensure that the association’s Clean Air Act revisions are included in the final product, and that onerous land use provisions are excluded. To view the bill, click here and type H.R. 3 in the upper left hand corner. For more information, contact Kevin Schwalb at x8470. [return to top]

Stephen Johnson Nominated as New EPA Administrator

President Bush last week nominated Stephen Johnson, the acting head of the Environmental Protection Agency, to serve as the EPA Administrator. NAHB will work with Senate allies to determine Johnson’s positions and priorities during his confirmation hearings. After Johnson is officially confirmed by the Senate as the new EPA Administrator, NAHB will seek to arrange a meeting to discuss areas of common interest. For more information, contact Kevin Schwalb at x8470. [return to top]

Senate Proposes to Reorganize Appropriations Subcommittees

Senate Appropriations Committee Chairman Thad Cochran (R-MS) last week announced plans to reorganize the Senate Appropriations Subcommittees. The Senate reorganization follows on the heels of the House Appropriations Subcommittee reorganization, which took place in early February. Under the Senate plan, the VA/HUD Appropriations Subcommittee would be disbanded. All housing related programs would be transferred to a newly re-formulated “Subcommittee on Transportation, Treasury, Judiciary and HUD.” The subcommittee would be chaired by Sen. Christopher “Kit” Bond (R-MO), who currently chairs the VA/HUD Subcommittee. All Environment Protection Agency (EPA) programs would be transferred to the Interior Subcommittee, which would be chaired by Sen. Conrad Burns (R-MT). These structural changes are identical to those made in the House reorganization. For more information, contact Jenna Morgan Hamilton at x8470. [return to top]