Washington Update - 06/21/2006 (Plain Text Version)

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Pressure Grows to Rein In Fannie Mae, Freddie Mac

Through two Cabinet-level announcements and a Senate Banking Committee hearing on the accounting deficiencies at Fannie Mae, the Bush Administration and Congress last week put pressure on Fannie Mae and Freddie Mac to limit their business. On June 13, the Treasury Department and Department of Housing and Urban Development announced they would each undertake studies on the feasibility of acting administratively to rein in the debt issuance and holdings of the two housing government-sponsored enterprises through existing laws and regulatory enforcement procedures.

Senate Banking Committee Chairman Richard Shelby (R-Ala.) held a panel hearing on June 15 that included testimony from Fannie Mae Chairman Stephen Ashley and President and CEO Daniel Mudd. Shelby used the hearing to generate momentum for Senate bill S. 190, which narrowly passed his committee last summer along partisan lines. The measure would severely curtail the investment portfolios of Fannie and Freddie and is opposed by NAHB because it could disrupt the mortgage markets and harm the housing finance system. The legislation has the strong backing of the Administration.

Because Senate Democrats and Republicans remain deadlocked on the portfolio issue, it is uncertain whether the legislation will ultimately go to the Senate floor. As the GSE debate unfolds, NAHB will continue to monitor the situation closely. View the story in NBN Online or read the legislation by clicking here and entering the bill number in the box at the center of the page. For more information, e-mail Scott Meyer , or call him at 800-368-5242 x8144.

House Approves HUD Funding Bill

By a vote of 406-22, the House last week passed H.R. 5576, its version of the Transportation, Treasury and Housing and Urban Development (T-THUD) Appropriations bill. Lawmakers made only a few alterations to the committee-passed HUD portion of the legislation during the three days of full House floor debate. Among those changes were three amendments which NAHB supported:

An amendment by Reps. Artur Davis (D-AL) and Katherine Harris (R-FL) that added $30 million back into the bill for HOPE VI. The Appropriations Committee had originally voted not to fund the program.
An amendment by Rep. Jerry Nadler (D-NY) that added an additional $100 million into the tenant-based Section 8 voucher program.
An amendment by Rep. Gary Miller (R-CA) that added $15 million into the bill for the Brownfields Redevelopment program. The Appropriations Committee had eliminated funding for the program.

The Senate Appropriations Committee is expected to release a draft of its version of the fiscal 2007 legislation sometime in late June or early July. View the story in NBN Online or read the legislation by clicking here. For more information, e-mail Jenna Morgan Hamilton or call her at ext. 8407. [return to top]

Support Grows for Storm Water Legislation

Following the introduction earlier this month of H.R. 5558, the “Stormwater Enforcement and Permitting Act,” NAHB staff has been conducting a number of meetings with members of Congress on the committee of jurisdiction to add cosponsors to the legislation. Our efforts have paid off with a number of new Republican and Democratic lawmakers adding their names in support of the bill, which was introduced by Rep. John Duncan (R-TN). To date, the measure now has 26 cosponsors. On the grassroots side, NAHB staff has asked the Executive Officers and HBA members in the Congressional Contact program to join this effort by contacting their member of Congress and urging them to cosponsor the legislation. NAHB will continue to lobby to increase support for the bill in hopes that it will be considered by the House Transportation Committee later this summer. To view the legislation, click here and enter the number in the box in the center page. For more information, e-mail Jason Lynn or call him at x8307. [return to top]

NAHB Works to Include Key Language in Rural Housing Bill

On June 14, the House Financial Services Committee marked up and passed legislation, H.R. 5039, to implement a revitalization program for the Section 515 multifamily rental portfolio. The legislation includes a number of changes advocated by NAHB. Working with members and staff from both sides of the aisle, NAHB was successful in incorporating language in the committee-passed bill clarifying a key aspect relating to the maximum household contribution to rent. Without this clarification language, NAHB members could have found it impossible to underwrite the financing of a Section 515 property. NAHB staff will continue to work with members of Congress to move the bill forward and seek additional beneficial changes to the legislation. To view the bill, click here and enter the number in the box in the center screen. For more information, e-mail Scott Meyer or call him at x8144. [return to top]

Section 8 Voucher Reform Bill Advances in House

In a key legislative victory for NAHB, the House Financial Services Committee on June 14 passed H.R. 5443, the “Section 8 Voucher Reform Act of 2006.” The bill was recently introduced by Rep. Bob Ney (R-OH) as an alternative to the Administration's proposed H.R. 1999, the “State and Local Government Housing Flexibility Act.” NAHB strongly opposes the Administration’s plan because it takes a flexible block grant approach to Section 8 reform, which has been the basis of our opposition for the past several years. NAHB staff will continue to work with members of Congress to move the Ney bill forward in the coming weeks. To view the legislation, click here and type each bill number in the box in the center page. For more information, e-mail Scott Meyer or call him at x8144. [return to top]

Military Housing Amendment Approved by House Panel

NAHB last week worked with lawmakers to take a significant step forward in expanding affordable housing opportunities for enlisted military personnel. During consideration of Section 8 reform legislation H.R. 5443, Reps. Al Green (R-TX) and Jim Ryun (R-KS) offered an amendment that would allow more military families to qualify for Low Income Housing Tax Credit (LIHTC) properties. The two lawmakers earlier this year introduced stand-alone legislation on this issue, H.R. 3186, the “Build HOMES Act.” NAHB testified in favor of the legislation during a hearing earlier this year. It is unclear at this point when the full House of Representatives will take up H.R. 5443. Companion legislation has not yet been introduced in the Senate for this bill or the Build HOMES Act. NAHB continues to work with key Senators on both of those efforts. To view the legislation, click here and type each bill numbers in the center screen box. For more information, e-mail Scott Meyer or call him at x8144. [return to top]

Bush Approves $19.8 Billion for Hurricane Recovery

President Bush signed into law last week a $94.5 billion fiscal year 2006 supplemental appropriations bill to fund Hurricane Katrina relief and recovery efforts, military operations in Iraq and pandemic flu preparations. The $19.8 billion portion of the measure dealing with Katrina includes:

$5.2 billion for the Community Development Block Grant (CDBG) program (Louisiana is eligible to receive up to $4.2 billion of this amount)
$285 million for Education Assistance
$6 billion to replenish the Federal Emergency Management Agency (FEMA) Disaster Relief Fund (including $400 million for a Katrina Cottages pilot program)
$542 million for Small Business Assistance
$4 billion for levee repairs and flood control.

In a related development, the House Financial Services Committee last week approved H.R. 5393, the “Natural Disaster Housing Reform Act of 2006.” Introduced by Rep. Richard Baker (R-LA), the measure would give the Department of Housing and Urban Development (HUD) responsibility for housing anyone displaced by a natural disaster for more than 30 days. In addition to stripping the Federal Emergency Management Agency (FEMA) of housing oversight, the legislation sets standards for the federal government's housing response in future disasters. For example, it would rule out the creation of large trailer parks by prohibiting more than three trailers from being placed on any one site. To view the legislation, click here and type the bill number in the box in the center screen. For more information, e-mail Greg Brown or call him at x8421. [return to top]