Washington Update - 12/20/2005 (Plain Text Version)

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House Bill Takes Hard Line on Immigrant Workers

The House on Dec. 16 passed a strict immigration bill that focuses on border security and punitive enforcement penalties for employers and fails to include a guest worker program that would help meet the workforce needs of employers nationwide. H.R. 4437, the “Border Protection, Antiterrorism and Illegal Immigration Control Act,” would authorize the construction of a fence along a nearly 700 mile stretch of the U.S.-Mexican border and impose fines of as much as $25,000 per worker for anyone who hires an undocumented worker. The bill awaits an uncertain fate in the Senate, which is deeply divided on the issue. The Senate is expected to take up the debate in February — at which time the temporary guest worker provision, which the Bush Administration supports, may yet be added.

In opposing the House bill, NAHB made its concerns clear to members of Congress through direct contacts and two legislative alerts to the association’s grassroots Congressional Contacts. The heavy lobbying by NAHB and its partners in the Essential Worker Immigration Coalition failed to get key amendments added that would have softened the bill before it reached the House floor. NAHB will continue to work with members in the Senate to urge them to oppose mandatory employer verification requirements and to support creating a legal guest worker program. To read the legislation, click here and enter H.R. 4437 in the box at the center screen. For more information, contact Tammy Eddy at 800-368-5242 x8470.

Lawmakers Extend Federal Terrorism Insurance

Congress last week approved S. 467, legislation that would provide a two-year extension of federal terrorism insurance due to expire at the end of this year. 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. The measure, which is expected to be signed into law shortly by President Bush, will raise the amount of damage sustained in an attack needed to trigger federal aid from $5 million currently to $50 million in 2006 and $100 million in 2007. To read the legislation, click here and enter the bill number in the box at the center screen. For more information, contact Greg Brown at x8470. [return to top]

Congress Passes Katrina Tax Relief Bill

Congress last week passed a $7.8 billion tax package to aid the recovery and rebuilding efforts in Gulf Coast areas affected by Hurricane Katrina. H.R. 4440, the "Gulf Opportunity Zone Act," designates areas impacted by the hurricane as "Gulf Opportunity Zones” that would be eligible for numerous tax benefits and incentives, including:

Additional tax-exempt bond authority for the affected states — $7.9 billion for Louisiana, $4.8 billion for Mississippi and $2.1 billion for Alabama.
Additional low-income housing tax credits in years 2006 to 2008 of $18 per person in the zone as measured by 2004 population data. This will provide approximately $70 million for Louisiana, $37 million for Mississippi and $17 million for Alabama.
Permitting businesses to claim an additional first-year depreciation deduction equal to 50% of the cost of new property investments made in the zone. All depreciation deductions (including bonus depreciation) would be exempt from the alternative minimum tax.
Doubling the tax-deductible cost of property used in a business from $100,000 to $200,000 for qualifying expenditures made in the disaster area through 2007. This provision would also increase the level of investment at which benefits phase out from $400,000 to $1 million of qualifying purchases, thus allowing more businesses to use this tax benefit in rebuilding.
Permitting expensing of 50% of the costs (that would otherwise be capitalized) related to site cleanup and demolition.

To view the legislation, click here and the enter the bill number in the box in the center screen. For additional information, contact Jim Tobin at x8470.
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House Panel Approves Katrina Aid

The House Financial Services Committee on Thursday passed H.R. 4100, the “Louisiana Recovery Corporation Act.” The legislation would establish the Louisiana Recovery Corporation (LRC), which would work with willing property owners to purchase residential and commercial property, relieving hurricane victims of their mortgage obligations up to $500,000 and transferring title to the LRC. The acquisitions would be funded by bonds issued by the Treasury Department. The LRC would then make necessary infrastructure repairs before selling the property to private developers through a competitive bidding process. The legislation must still pass several legislative and political hurdles before it becomes law. To read the bill, click here and enter the legislation number in the box at the center screen. For more information, contact Jim Tobin at x8470. [return to top]

House-Passed Bill Would Assist Brownfields Redevelopment

On Dec. 13, the House passed H.R. 280, the “Brownfields Redevelopment Enhancement Act.” Introduced by Rep. Gary Miller (R-CA), the bill would increase access to HUD's Brownfields Economic Development Initiative (BEDI) grant program, which helps communities convert contaminated property into useful land. Under current law, communities who receive a BEDI grant must use some of their Community Development Block Grant money as collateral, which discourages them from applying for BEDI grants. H.R. 280 removes the collateral requirement, making the BEDI program more accessible to many localities, especially small communities. NAHB supported this legislation and worked with Rep. Miller and the House leadership to bring this bill to the floor. To view the legislation, click here and type the bill number in the box at the center screen. For more information, contact J.P. Delmore at x8470. [return to top]

Endangered Species Act Bill Introduced in Senate

Senators Mike Crapo (R-ID) and Blanche Lincoln (D-AR) last week introduced the “Collaboration of the Recovery of Endangered Species Act" (CRESA). The bipartisan bill includes language that would: expand cooperative agreements with states; change the deadline for critical habitat designations; make a series of changes to recovery plans and the recovery planning process; codify the "No Surprises" policy for Habitat Conservation Plans; and provide tax incentives and credits for conservation banking and adoption of recovery planning measures. NAHB is reviewing the text of the bill, and is encouraged that a bipartisan ESA bill has been introduced in the Senate. For more information, contact Jason Lynn at x8470. [return to top]

Congress Set to Approve Violence Against Women Act

The House and Senate have reached an agreement that will lead to passage of legislation to reauthorize the Violence Against Women Act before Congress adjourns for the year. The agreement would add a new section to the act to address the housing needs of victims of domestic violence. The compromise continues to allow evictions for lease violations as long as the victim of domestic violence is not held to a higher standard than another tenant; offers limited liability protections; limits who may certify that a tenant is a victim of domestic violence and requires that the certification be done under penalty of perjury; and clearly limits the protections of this bill to those qualified for the Section 8 voucher program. NAHB has lobbied strongly for these common-sense changes for the past several months and is pleased that the House and Senate agreed to this compromise language. For more information, contact J.P. Delmore at x8470. [return to top]