Washington Update - 05/03/2005 (Plain Text Version)

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NAHB Meets with Key Lawmakers on GSE Reform

NAHB and the National Association of Realtors held several joint meetings last week with members and staff of the Senate Banking Committee, the panel with primary jurisdiction on reforming the government sponsored enterprises (GSEs) Fannie Mae, Freddie Mac and the Federal Home Loan Banks. With Senate Banking Committee Chairman Richard Shelby (R-AL) readying new GSE legislation, NAHB is working with lawmakers on several key areas. These include minimum capital requirements, the structure of a new GSE regulator, “bright line” program approval language that would allow the GSEs to continue engaging in primary and secondary market activities, affordable housing requirements and portfolio limits. NAHB opposes specific limits on GSE portfolio holdings.

NAHB supports legislative language that would give a new regulator the latitude to adjust minimum capital requirements in response to real changes in risk. However, NAHB believes that the minimum capital level should be returned to the statutory amount once the problem has been resolved. NAHB has drafted a “snap back” provision that would achieve this aim, and is currently seeking support from key Republican lawmakers. In addition, staff is seeking out key Congressional Contacts who are willing to travel to Washington and discuss the association’s GSE priorities with their members of Congress. For more information, contact Greg Brown or Scott Meyer at 800-368-5242, x8470.

Johnson Confirmed as New EPA Administrator

The U.S. Senate has confirmed Stephen Johnson to head the federal government's environmental protection efforts, making him the 11th U.S. Environmental Protection Agency (EPA) administrator and the first career staff member to lead the agency. He was approved by voice vote on April 29 shortly before the Senate adjourned for the start of its week-long recess. NAHB staff has had a positive working relationship with Johnson and will continue to work with the new EPA administrator and his staff on key environmental issues, such as wetlands and the federal storm water permit program. For more information, contact Kevin Schwalb at x8470. [return to top]

Builders Oppose Overly Restrictive Wetlands Bill

Rep. James Oberstar (D-MN) has introduced the "Clean Water Authority Restoration Act of 2005," H.R. 1356. This bill would expand the jurisdiction of the Clean Water Act from "navigable waters" to "waters of the United States." Under this measure, federal permits and other federal restrictions could be imposed whenever a "water of the United States" is at issue. The bill also defines "waters of the United States" to include intrastate ponds, mudflats and wetlands -- in all instances. Common curbs and gutters, drainage ditches, and even meadows and backyard puddles, would all be subject to federal Clean Water Act requirements under H.R. 1356. Senator Russ Feingold (D-WI) has drafted companion legislation that is identical to Oberstar’s bill, and plans to introduce his measure shortly after the Senate returns from its current week-long recess.

NAHB opposes this legislation and will work with appropriate lawmakers and staff to ensure this measure does not move through Congress. Further, NAHB staff is working with Rep. Richard Baker (R-LA) on legislation that would counter H.R. 1356 by narrowly defining what constitutes a wetland. Baker hopes to introduce his bill by the end of May. To view the Oberstar bill, click here and type H.R. 1356 in the box in the upper left hand corner. For more information, contact Kevin Schwalb at x8470. [return to top]

Congress Adopts Budget Resolution

The House and Senate last week adopted a fiscal 2006 budget resolution that calls on lawmakers to reduce the cost of mandatory programs by $34.7 billion and provides for $106 billion in tax cuts from fiscal 2006 through 2010. The resolution provides for $2.6 trillion in fiscal 2006 and sets a discretionary spending cap of $843 billion. This action paves the way for the appropriations committees to move ahead with their fiscal 2006 spending bills. House appropriations subcommittees are expected to begin moving their bills in mid-May, with Defense, Military Construction and Homeland Security expected to be the first appropriations bills brought to the House floor. The Senate will await House action before moving its appropriations legislation. For more information, contact Jenna Morgan Hamilton at x8470. [return to top]