Washington Update - 11/22/2005 (Plain Text Version)View Graphical Version | Subscribe
to NAHB Publications | Email our
Editor... Lawmakers Urge Bush to Preserve Housing Tax IncentivesWith the support of NAHB, Rep. Jerry Weller (R-IL) and seven other members of the tax-writing House Ways and Means Committee on Nov. 17 sent a letter to President Bush urging the White House to preserve the deductions for mortgage interest, state and local taxes and home equity loans as the Administration considers tax reform. In addition to Weller, other Ways and Means panelists who signed on to the correspondence to the President were: Reps. Mark Foley (R-FL), Nancy Johnson (R-CT), Eric Cantor (R-PA), Wally Herger (R-CA), Clay Shaw (R-FL), Kevin Brady (R-TX) and Ron Lewis (R-KY). The letter sends a strong message to the Administration that it does not have the support to move these types of tax reform recommendations through the House Ways and Means Committee. NAHB will have another chance to air the association’s views on tax reform when staff meet with Treasury Department officials on Nov. 29 to discuss the topic. At the meeting, NAHB will raise its opposition to the changes to the housing tax incentives recommended by the President’s Advisory Panel on Federal Tax Reform and insist that any tax reform proposal developed by the Treasury and the White House preserve all current housing incentives. Furthermore, NAHB and a coalition of affordable housing organizations will participate in another meeting with Treasury Department officials to focus specifically on preserving the Low Income Housing Tax Credit and mortgage revenue bond programs as part of any effort to reform the federal tax code. For more information, contact Jim Tobin at 800-368-5242, x8470. Congress Clears Additional Flood Insurance FundsAs the Congress last week voted to replenish depleted federal coffers to pay flood insurance victims, NAHB scored a key victory by working to kill proposals that would have greatly expanded the scope of the National Flood Insurance Program (NFIP). Lawmakers on Nov. 18 approved H.R. 4133, legislation that would allow the NFIP to borrow up to $18.5 billion a year from the Treasury. President Bush is expected to sign the measure into law shortly. The increased borrowing authority was urgently needed, as the record number of flood insurance claims from Hurricane Katrina and other recent natural disasters is estimated to exceed $23 billion, according to the Federal Emergency Management Agency (FEMA). While debating measures in the House last week to raise the borrowing authority and institute other changes to shore up the program, legislative language was inserted to change the current 100-year flood plain standard to a 500-year flood plain standard. This would have greatly expanded the program’s reach by requiring millions of additional property owners to purchase flood insurance. NAHB successfully lobbied in support of an amendment offered by Rep. Gary Miller (R-CA.), adopted on a 34-31 vote, that substituted this statutory language with a proposal that calls on the Government Accountability Office to study whether flood insurance coverage should be mandatory for home and business owners situated in areas considered at moderate risk for flooding. NAHB also fought off similar efforts in the Senate to secure a 500-year flood plain standard. Senator Elizabeth Dole (R-N.C.), supported by NAHB and the Home Builders Association of North Carolina, instituted a parliamentary maneuver to stop movement on the bill and secure a compromise supported by NAHB that would allow an additional $18.5 billion in borrowing authority absent the negative 500-year flood plain reforms. Under current law, only homes in certain high-risk areas must purchase flood insurance. Both the House and Senate are expected to hold hearings and mark up flood insurance legislation early next year. Many believe in the aftermath of Katrina that the program is broken and in need of reform. To read this legislation, click here and enter the bill number in the box at the center. For more information, contact Greg Brown at x 8421.
Lawmakers Approve VA/HUD Appropriations BillCongress last week approved the fiscal 2006 Treasury Transportation Housing and Urban Development Appropriations bill. Funding for programs breaks down as follows:
In addition, Congress passed a continuing resolution (CR) that will keep the government funded through Dec. 17. The CR applies to federal departments and agencies whose fiscal 2006 appropriations bills remain outstanding. Funding for these agencies will remain at fiscal 2005 levels. For more information, contact Tammy Eddy at x8470. [return to top] Senate Rejects Plan to Revoke Fannie, Freddie Tax BreakDuring last week’s Senate floor consideration of the Tax Relief Budget Reconciliation package, Sen. John Sununu (R-NH) offered an amendment to eliminate the state and local tax exemption for Fannie Mae and Freddie Mac. NAHB strongly opposes this proposal because it would undermine congressional intent by eroding the “government sponsored” status of the two housing finance entities and thus hamper their ability to provide support for the U.S. housing market. NAHB sent a blast fax to all members of the Senate urging them to oppose the amendment. Sen. Charles Schumer (D-NY) rose to oppose the amendment, warning that if it passed, it would “hurt the housing markets.” Ultimately, the amendment was defeated on procedural grounds and never put to a vote. For more information, contact Greg Brown or Scott Meyer at x8470. [return to top] Congress Works to Extend Federal Terrorism InsuranceThe Senate approved legislation last week that would provide a two-year extension on federal terrorism insurance that is due to expire at the end of this year. A similar measure was approved by the House Financial Services Committee and the full chamber is expected to take up the bill next month. Enacted in 2002 in the wake of the Sept. 11 terrorist attacks, the Terrorism Risk Insurance Act (TRIA) is intended to provide a backstop for insurance companies in the event of another attack on American soil. Senate bill S. 467 and its House counterpart, H.R. 4314, would both raise the amount of damage sustained in an attack needed to trigger federal aid from the current $5 million to $50 million in 2006 and $100 million in 2007. The Senate bill would eliminate some lines of insurance covered under the current program, including commercial auto, professional liability, surety, burglary and theft and farm owners multi-peril. The House version would retain these lines and also make group life insurance eligible for the program. The House bill would cover acts of domestic terrorism while the Senate bill does not. Once the full House approves H.R. 4314, differences between that bill and its Senate counterpart will be reconciled in conference. To read the legislation, click here and enter the bill number in the box at the center page. For more information, contact Greg Brown at x8421. [return to top] Housing Bill Approved to Aid Disabled VeteransThe House last week approved H.R. 3665, the “Veterans Housing Improvement Act of 2005. The legislation would allow disabled veterans to receive Specially Adapted Housing (SAH) grants to pay for modifications to a temporary residence that is owned by a family member. Currently, SAH grants can only be used to pay for improvements to a home owned by a veteran. In addition, the legislation would extend from one to three the number of SAH loans a veteran can receive, thus giving greater flexibility to address individual long-term housing needs. Finally, the bill would make permanent the current VA direct loan pilot program for Native Americans and broaden the program’s eligibility criteria. NAHB sent a letter of support to the full Veterans’ Affairs Committee prior to the panel’s consideration last month. To view the bill, click here and type the bill number in the box in the center screen. For more information, contact Greg Brown at x8470. [return to top] For more information or to contact us directly, please visit www.NAHB.org | ©2005, National Association of Home Builders |