Washington Update - 02/22/2006 (Plain Text Version)

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Builders Urge Congress to Rescind Lumber Tariffs

Stating that unwarranted lumber tariffs needlessly harm housing affordability and impose a hidden tax on American home buyers, Florida home builder and NAHB board member Barry Rutenberg on Feb. 14 called on the Administration and Congress to adopt and follow free trade policies and to fully consider the impact of lumber trade constraints on American consumers. Testifying on behalf of NAHB, Rutenberg told the Senate Trade, Tourism and Economic Development Subcommittee that trade restraints impose an unreasonable burden on U.S. home buyers and on the industries that depend on adequate, affordable supplies of lumber to provide the housing, home improvements and other vital goods and services the nation needs.

Duties on Canadian softwood lumber imported into the U.S. are currently being collected at a rate of approximately 10%, down from a recent high of 27%. However, unanimous verdicts by several North American Free Trade Agreement (NAFTA) panels have found no threat of injury from Canadian imports, which is the legal justification required for the duties to be imposed. Rutenberg called on the Administration to adhere to its legal obligations and follow decisions that have invalidated the lumber duties and stipulated that the U.S. Customs Service must refund the billions of dollars collected from Canada. For more information, contact Jason Lynn at 800-368-5242, x8307.

Bill Would Give Property Owners Their Day in Court

Answering an ongoing concern of the nation’s home builders, bipartisan legislation introduced on Feb. 16 by Reps. Steve Chabot (R-OH) and Bart Gordon (D-TN) would restore the protections offered under the Fifth Amendment to property owners. H.R. 4772, the “Private Property Rights Implementation Act of 2006,” is designed to ensure that property owners get their day in federal court to defend their Fifth Amendment rights under the U.S. Constitution, which provides that no person shall “be deprived of life, liberty or property without due process of law; nor shall private property be taken for public use without just compensation.”

Property owners with a takings claim now face a Catch 22. Under the current legal system, before a federal court will rule on a Fifth Amendment takings claim, property owners must first litigate their case in state court. However, bringing the case to state court and having a takings claim heard (even under state law) often precludes the property owner from review by the federal courts. A property owner is, in effect, blocked from using the federal courts to enforce the Fifth Amendment’s just compensation guarantee. As a result, property owners throw up their hands and give up without ever getting a fair hearing in federal court. By contrast, all other civil rights cases can be brought directly to federal court.

The bill closely mirrors NAHB-supported legislation that passed the House in the 105th and 106th Congress. To view the bill, click here and type H.R. 4722 in the box in the center page. For more information, contact J.P. Delmore at x8412.
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Senate Panel Holds Hearing on Katrina Rebuilding Efforts

The Senate Banking Committee held a hearing last week on rebuilding needs in areas impacted by Hurricane Katrina. Among those testifying at the hearing were Senators Mary Landrieu (D-LA) and David Vitter (R-LA), Rep. Richard Baker (R-LA), and Secretary of Housing and Urban Development Alphonse Jackson. The main focus of the discussion was a bill introduced by Rep. Baker – H.R. 4100, the "Louisiana Recovery Corporation Act," which would create a government agency to purchase properties in New Orleans, repackage them in large lots and resell them to the private market to encourage redevelopment in the city.

The White House has come out in opposition to the proposal, concerned that it would create more government bureaucracy and a centralized planning approach to rebuilding in New Orleans. The White House and Senate Banking Committee Chairman Richard Shelby (R-AL) would prefer that state and local governments carry out any redevelopment planning on their own, with some financial support from the federal government. The Louisiana congressional delegation support H.R. 4100, maintaining that a federal framework is necessary to coordinate rebuilding and redevelopment efforts on such a large scale. With the White House and Sen. Shelby opposing H.R. 4100, the fate of the bill remains in doubt. NAHB has not taken a position on the measure, but continues to provide input to Rep. Baker's staff and the relevant housing committee staff on strategies for rebuilding in the Gulf Coast. To view the legislation, click here and type H.R. 4100 in the box in the center. For more information, contact Greg Brown at x8421.
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House Boosts Borrowing Authority for Flood Insurance Program

To cover the claims associated with the devastating 2004/2005 hurricane season, the House last week approved an increase in the National Flood Insurance Program’s borrowing authority, bringing the total to $20.7 billion. The Senate is expected to act shortly to ensure that claims will continue to be paid in a timely fashion. The additional borrowing authority is only expected to last through the end of March, so Congress will have to provide additional authority this year to cover the NFIP's fiscal 2006 claims. Given the current federal deficit, many lawmakers have been reluctant to boost the borrowing authority without enacting new reforms to the overall program to generate additional premiums. For more information, contact Scott Meyer at x8144. [return to top]