Washington Update - 12/14/2006 (Plain Text Version)

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Senate Bill Strikes a Balance on Storm Water Rules

Introduction of NAHB-supported storm water legislation in the Senate on Dec. 8 marked a very important victory in the battle over burdensome and costly regulations that needlessly drive up the cost of housing. NAHB commended Senators James Inhofe (R-OK) and Thomas Carper (D-DE) for introducing a bipartisan bill (S. 4101) that takes into account the differences between residential construction activity and that of other industries.

The bill would update and improve the EPA's storm water permit and enforcement policies that currently add anywhere from $1,400 to $4,500 to the cost of every lot while doing little to improve water quality. Its more balanced and reasonable approach would simplify compliance and offer a more consistent and sensible regulatory stance that provides better protection for America's rivers and streams. This measure, along with House companion bill H.R. 5558, will serve as an excellent starting point for the 110th Congress to address this important issue when it convenes next month. To view the legislation, click here and type S. 4101 or H.R. 5558 in the box in the center screen. For more information, e-mail Jim Tobin or call him at 800-368-5242, x8258.

Real Estate Provisions in Last-Minute Tax Bill

In one of the last acts of the 109th Congress, lawmakers in the wee hours of Dec. 9 passed a major tax and trade bill that includes several real-estate related provisions. The major tax portion of the bill includes extensions of the research and development tax credit through 2007, and a two-year renewal of the deduction for state and local taxes and higher education tuition expenses. Items of importance to home builders include:

Extension of the placed-in-service date requirement for the GO Zone bonus depreciation on nonresidential real and residential rental property.
Extension of the New Markets Tax Credit program and expansion to better serve the needs of rural communities.
One-year extensions of the credit for new energy-efficient homes, the credit for residential energy-efficient property and the deduction for energy-efficient commercial buildings.
Extension of expensing of brownfield remediation costs and expansion of the definition of a brownfield to include sites contaminated by petroleum products.
Permanence for a change to the veterans' mortgage revenue bond program that eliminates the sunset of the program in selected states.
Waiver of the first-time-home buyer requirement for veterans in the mortgage revenue bond program.
Establishment of a one-year deduction for private mortgage insurance.

Also of note, the legislation includes a measure sponsored by Senators Harry Reid (D-NV) and John Ensign (R-NV) that would promote land conservation in White Pine County, Nev. As originally written, the legislation called for mandatory federal inclusionary zoning policies to address unique local development issues. NAHB lobbied against this provision, noting that inclusionary zoning policies are not an effective way to address a community’s housing affordability problem and that any solution to address this issue must come locally, not from a federal mandate. In a significant victory for NAHB, the mandatory exclusionary zoning requirements were stripped from the final bill.

For more information on the tax provisions, e-mail Greg Brown or call him at 1-800-368-5242 x8421. For further information regarding the land conservation measure, e-mail J.P. Delmore or call him at x8412. [return to top]

Lawmakers Punt on Spending Bills

The 109th Congress officially adjourned without completing its work on nine of 11 fiscal 2007 spending bills to fund the federal government. Instead, the Republican-controlled Congress approved a continuing resolution (CR) to fund the outstanding spending bills at fiscal 2006 levels. The CR runs through Feb. 15, 2007. The responsibility of crafting the remaining spending bills will fall on the new Democratic-led 110th Congress, which will convene in the first week of January. In a departure from previous years, lawmakers will then move immediately into legislative activity, forgoing their traditional January recess for a full month of organizing and oversight hearings.

Thus far, Democrats have not discussed any strategy for handling the remaining spending bills, and it remains possible that they will simply pass a CR to take the funding all the way through to the end of the fiscal year on Sept. 30, 2007, rather than trying to pass the fiscal 2007 bills. This would allow Democrats to focus instead on the fiscal 2008 budget and appropriations cycle, which will kick off on Feb. 5, 2007. For more information, e-mail Jenna Hamilton or call her at 1-800-368-5242, x8407. [return to top]

GSE Reform Stalls in 109th Congress

Despite Department of Treasury efforts to negotiate a deal on government-sponsored enterprise reform legislation for Fannie Mae, Freddie Mac and the Federal Home Loan Banks, eleventh hour discussions failed to secure a deal on the final sticking points. While Treasury officials were successful in negotiating several key aspects of the bill with the incoming chairman of the House Financial Services Committee, Rep. Barney Frank (D-MA), the Senate was not actively engaged in the compromise efforts as time ran out on the 109th Congress.

In other financial services news last week, Rep. Spencer Bachus (R-AL) was named Ranking Member of the House Financial Services Committee over the more senior committee member, Richard Baker (R-LA). NAHB has an excellent relationship with Rep. Bachus and expects to work closely with him and incoming Chairman Frank on all our financial services priorities in the 110th Congress. For more information, e-mail Scott Meyer or call him at 1-800-368-5242, x8144. [return to top]