Washington Update - 06/21/2005 (Plain Text Version)

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NAHB Scores Early Win on Home Energy Efficiency Tax Credits

The Senate Finance Committee last Thursday approved home energy efficient tax provisions that will be rolled into a larger energy bill (H.R. 6) to be considered by the full Senate. NAHB was successful in ensuring the inclusion of energy efficiency tax credits for new homes, existing homes and commercial properties (which are also available to multifamily structures) in the energy tax incentives approved by the Senate panel. The House-passed version only includes tax credits for existing homes.

Specifically, the Senate legislation would provide:

• A $1,000 tax credit to builders for the construction of a new home that is at least 30% more energy-efficient than a home built under the standards of the 2003 International Energy Conservation Code. The tax credit jumps to $2,000 for homes that are at least 50% above the code.
• A tax credit up to $2,000 on projects that reduce energy consumption in existing homes by at least 50% in “comparison to the original condition of the building.” The credit would go to the home owner.
• A $2.25 per square foot commercial property deduction for rental housing that is at least 50% more efficient than buildings constructed to the American Society of Heating, Refrigerating and Air-Conditioning Engineers and the Illuminating Engineering Society of North America 90.1-2001 standard.

This week, the full Senate will consider the overall energy package, including the home energy efficiency tax provisions. To view the bill, click here and type H.R. 6 in the box in the upper left hand corner. For more information, contact Allen Segal at 800-368-5242, x8470.

House Panel Approves HUD Funding

The House Transportation, Treasury, Housing and Urban Development, Judiciary and District of Columbia Appropriations Subcommittee on June 15 approved the fiscal 2006 appropriations bill. Under the legislation, the Department of Housing and Urban Development (HUD) was allotted $37.5 billion, $1.5 billion above last year's funding level and $4.3 billion more than the administration had requested. Of particular importance to NAHB were several programs:

Community Development Block Grants (CDBG): The subcommittee soundly rejected a White House proposal to move the CDBG program to the Department of Commerce. NAHB had strongly opposed the proposal, and had asked appropriators to reject the idea. Appropriators funded CDBG at $4.2 billion, with $3.86 billion going to formula grants. This represents an approximate 4.2% cut versus last year's funding levels.

Section 8: Section 8 was split into two distinct categories, with Tenant-Based Vouchers funded at $15.53 billion, and Project-Based vouchers at $5.10 billion. The total Section 8 funding is a small increase over fiscal 2005 levels.

HOME program: The HOME program received $1.9 billion in overall funding, the same as last year’s level.

PATH program: The Partnership for Advancing Technology in Housing (PATH) program received $5 million in funding, a decrease from its $7 million fiscal 2005 level. The administration had proposed eliminating the program altogether. House appropriators did include language requested by NAHB to allow cooperative agreements to continue under the program. The PATH program is used to fund several projects conducted by the NAHB Research Center.

YouthBuild program: YouthBuild is a small program within HUD that encourages young people to pursue careers in home building. The subcommittee failed to approve any funding for the program in fiscal 2006. The administration had proposed that the program be moved to the Department of Labor (DOL), a move which NAHB supports. However, lacking authorizing legislation to complete the move, appropriators instead zeroed out funding for this year. NAHB has urged the DOL to promptly send authorizing legislation to Congress and the agency is currently crafting such legislation.

HOPE VI//Brownfields Redevelopment: At the request of the administration, both of these programs were zeroed out by appropriators. The programs were cited by appropriators as having fulfilled their original mission, and funding that had historically been allotted to them was moved to cover additional Section 8 expenses.

The Senate is expected to markup its version of the HUD appropriations bill next month.

Additionally, the full House last week approved the fiscal 2006 Science, State, Justice and Commerce (SSJC) Appropriations bill. This legislation funds two programs of particular interest to NAHB. The Edward Byrne discretionary grant program under the Department of Justice, which has previously helped to fund HBI Project CRAFT programs, received $348 million, down from $634 million in fiscal 2005. The administration had attempted to eliminate this program altogether, a move that NAHB opposed.

Funding for the fiscal 2006 American Communities Survey (ACS), which studies community development and demographics as part of the U.S. Census Bureau, received an appropriation of $160 million from the House. This is $10 million less than the allocation it received in fiscal 2005. NAHB had supported level funding for the ACS in fiscal 2006. The Senate is expected to consider its version of the SSJC bill on June 23. For more information, contact Jenna Morgan Hamilton at x8470.
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Bush Extends Deadline for Tax Reform

The White House last week released a new Executive Order that extends the deadline for the President's Advisory Panel on Federal Tax Reform (the Panel) from July 31 to September 30. NAHB continues to monitor the progress of the Panel and educate Capital Hill lawmakers on the association's preferences for tax reform. For more information, contact Jim Tobin at x8470. [return to top]

NAHB Shifts GSE Strategy to House Floor

NAHB continued last week to focus on House floor strategy for H.R. 1461, the housing-related government sponsored enterprise (GSE) regulatory reform bill that passed out of the House Financial Services Committee in May. Our key goal is to protect the committee bill as reported, especially as pressure mounts from the administration and conservative Republican sectors of the House (the Republican Study Committee). The RSC stepped up its efforts last week to strip the Affordable Housing Fund (Fund) from H.R. 1461 and is circulating a letter asking the leadership to not allow the Fund in any bill that goes to the floor for consideration.

In addition, we anticipate administration amendments to limit the portfolios of the GSEs and establish a "bright line" for their programs and activities. Both of these are of great concern to NAHB as they will hamper the ability of the GSEs to meet their housing mission. NAHB is meeting with House leaders and other key members to push for preserving the Fund and to stave off potential amendments on limiting GSE portfolios or establishing a "bright line" boundary between primary and secondary markets. There is no clear consensus as to when H.R. 1461 will be taken up by the House.

On the Senate side, there is still no clear timeline for consideration of a GSE bill in the Banking Committee. Pressure is also building on Committee Chairman Richard Shelby (R-AL) to pass an aggressive bill without an Affordable Housing Fund and containing strong portfolio limit and "bright line" language. Further, Shelby stated his opposition to the affordable housing fund in a press article last week. This is somewhat unexpected as he allowed an affordable housing piece in his bill last year and voted for the committee bill that contained this proposal. NAHB continues to meet with members of the committee and other key Senators to press our priorities in these areas. For more information, contact Greg Brown or Scott Meyer at x8470. [return to top]

Builders Support NEPA Task Force

A House task force to study the effectiveness of the National Environmental Policy Act convened in Arizona on June 18. NAHB President Dave Wilson and Arizona HBAs submitted op-eds to Arizona papers in support of the task force. Wilson’s opinion piece noted that review of NEPA is long overdue, and that “many special interest groups have exploited this outdated law to prevent home building, roads and other job-creating projects from moving forward.” Chaired by Rep. Cathy McMorris (R-WA), the task force is holding a series of field hearings around the country to gather information from the regulated community and others about their experience with NEPA. For more information, contact Jason Lynn at x8470. [return to top]