Washington Update - 06/30/2005 (Plain Text Version)

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In Victory for Housing Industry, Congress Approves Junk Fax Bill

In a victory for NAHB, the House on June 28 approved Senate-passed legislation S. 714, the “Junk Fax Prevention Act of 2005.” The bipartisan measure strikes a common sense balance between the need for trade associations and businesses to communicate with members and established business partners while protecting consumers from unwanted facsimile transmissions. President Bush is expected to sign the bill into law before July 1, which would preempt a Federal Communications Commission (FCC) regulation set to go into effect then.

The FCC had adopted new regulations that would have required home builders and other organizations and associations to obtain signed, written consent forms from each of their fax recipient customers prior to sending a fax transmission. These onerous compliance measures would have created a huge burden to NAHB and its members, forcing the home building industry to collect and maintain millions of consent forms.

The legislation approved by Congress is the culmination of NAHB’s tireless efforts that consisted of lobbying members of the House and Senate, engaging in grassroots letter writing campaigns and working with coalition partners. The new law will allow firms that have an “established business relationship” to transmit unsolicited commercial faxes to their customers and give recipients the ability to opt-out of future unsolicited faxes. To view the legislation, click here and type S. 714 in the box in the upper left hand corner. For more information, contact Allen Segal at 800-368-5242, x8470.

NAHB President Testifies on Behalf of Zero Downpayment Proposal

NAHB President David Wilson told Congress on June 30 that a bipartisan legislative proposal establishing a pilot program for Federal Housing Administration (FHA) insurance of zero downpayment mortgages would mean that “50,000 families would be able to achieve homeownership who would otherwise be denied the opportunity.” Appearing before the House Subcommittee on Housing and Community Opportunity, Wilson testified in support of H.R. 3043, the “Zero Downpayment Pilot Program Act of 2005,” introduced by Reps. Patrick Tiberi (R-OH) and David Scott (D-GA). The pilot program is designed to be financially self-supporting while building a record of homeownership success. To reach as many households as possible, NAHB fought successfully to ensure that H.R. 3043 would also apply to condominiums and cooperatives. To view NAHB’s press release, click here. For more information, contact Scott Meyer at x8470. [return to top]

HUD Secretary, Lawmakers Commend Housing Efforts in Congress

As the keynote speaker at a June 29 breakfast on Capitol Hill in commemoration of National Homeownership Month, Department of Housing and Urban Development Secretary Alphonso Jackson commended lawmakers for their bipartisan cooperation in promoting a national priority for housing and cited the significant economic and social contributions of home builders around the country. Jackson was joined at the NAHB-sponsored event by Reps. Bob Ney (R-OH) and Gary Miller (R-CA), the chair and vice chair, respectively, of the House Housing and Community Opportunity Subcommittee. In addition, Miller also chairs the Building a Better America Caucus, which consists of bipartisan House members who work on issues facing the construction industry.

In observance of National Homeownership Month, the House approved House Resolution 312, which recognizes the importance of homeownership in America. Reps. Ney and Miller posted comments in support of the resolution in the Congressional Record, along with Rep. Barney Frank (D-MA), who said that the “National Association of Home Builders has been a very constructive participant in our efforts to promote homeownership.” To read the congressional resolution, click here and enter H.Res.312 in the box at the upper left. See the July 5 edition of Nation’s Building News Online to view the story on the Hill event. [return to top]

Builders Talk Lumber with Canadian Ambassador

NAHB CEO and Executive Vice President Jerry Howard met with Canadian Ambassador Frank McKenna last week to update the Ambassador on NAHB's activities on the Canadian softwood lumber issue and to urge the Canadian government to pursue its legal cases against the softwood lumber duties to their conclusion. Ambassador McKenna communicated his appreciation for NAHB's work on this issue and encouraged our continued involvement on the Hill and with the Administration.

Howard stressed to the Ambassador that NAHB has worked to change the political climate regarding lumber. He noted that NAHB has made great progress in neutralizing the influence of the domestic lumber industry and convincing key members of Congress that the issue is not U.S. vs. Canada, but a relatively-small special interest group vs. U.S. consumers and home builders. It was also communicated that NAHB believes that past negotiated settlements have not led to long-term durable solutions to this dispute, and that NAHB remains opposed to a settlement with trade distortions, especially one involving quotas. For more information, contact Jason Lynn at x8470. [return to top]

House and Senate Could Consider GSE Legislation in July

The full House of Representatives may consider H.R. 1461, the government-sponsored enterprises (GSE) regulatory reform bill passed by the Financial Services Committee last month, at some point following the July 4 congressional recess. NAHB is continuing its advocacy efforts to protect the bill as reported out of committee. In particular, we are working to stave off amendments that would limit the GSE portfolios or establish a "bright line" boundary for their programs and activities. The Republican Study Committee (RSC), a coalition of conservative Republicans, opposes the Affordable Housing Fund (AHF) established in H.R. 1461 that would require Fannie Mae and Freddie Mac to set aside a percentage of their profits for affordable housing. A group of RSC members sent a letter outlining their concerns to House Majority Leader Tom Delay (R-TX) last week and asked him not to bring H.R. 1461 to the floor unless they are addressed. Financial Services Committee Chairman Mike Oxley (R-OH) distributed compromise language last week in an effort to allay RSC concerns and clear a path for floor consideration of the bill.

On the Senate side, the Banking Committee is tentatively scheduled to take up GSE reform legislation during the third week of July. Committee Chairman Richard Shelby (R-AL) held a meeting of his Republican committee members last week to outline what will be included in his bill. Shelby will not include an affordable housing set-aside for Fannie Mae and Freddie Mac like that contained in the House bill. He has reportedly characterized such a provision as creating a "moral hazard" by giving the GSEs an incentive to be more risky and aggressive with their portfolio investments in order to both meet the set-aside and continue to be profitable. It also appears that Shelby does not want specific "bright line" language in the bill, believing that keeping the GSEs within their charters could be accomplished through the program approval process. NAHB continues to meet with all members of the Banking Committee as well as other key Senators to press our priorities in GSE reform legislation. For more information, contact Greg Brown or Scott Meyer at x8470. [return to top]

Senate Approves Home Energy Efficiency Tax Credits

By an overwhelming 85-12 margin, the Senate on June 28 voted to pass a comprehensive energy package (S. 10) that now must be reconciled with a vastly different House bill (H.R. 6). 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 $14 billion worth of energy tax incentives approved by the Senate. The House-passed version includes just $7 billion in tax incentives and only incorporates 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.

With the legislation now going to a House-Senate conference to iron out differences, NAHB will work to ensure that all the home energy tax provisions in the Senate bill are included in the final conference report. To view the legislation, click here and type H.R. 6 or S. 10 in the box in the upper left hand corner. For more information, contact Allen Segal at x8470. [return to top]

Builders Seek to Enhance VA Hybrid ARM Program

The Senate Veterans' Affairs Committee held a hearing last week on S. 1235, the "Veterans' Benefits Improvement Act of 2005," which included a provision dealing with the hybrid adjustable rate mortgage (ARM) product of the Veterans Home Loan Guaranty program. NAHB, along with the National Association of Realtors and Mortgage Bankers of America, sent a letter to Chairman Larry Craig (R-ID) in support of a provision in S. 1235 that would address an issue that has been limiting the usefulness of the VA's hybrid ARM product. Allowing the Secretary of the VA to determine the annual rate adjustment for VA Hybrid ARM products would help veterans to receive more affordable financing. To view the bill, click here and type S. 1235 in the box in the upper left hand corner. For more information, contact Greg Brown at x8470. [return to top]