Washington Update - 03/12/2010 (Plain Text Version)

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NAHB Targets Wavering House Dems on Health Care

With lawmakers plotting a strategy to move a final health care overhaul bill across the goal line, NAHB is aggressively targeting key House Democrats to urge them to oppose Senate bill H.R. 3590, which contains a provision by Sen. Jeff Merkley (D-Ore.) that targets small businesses in the construction industry.

The Merkley language requires construction firms to provide health coverage if they employ more than five workers. Small businesses in every other industry would be exempt from providing mandatory health insurance if they employ 50 workers or less. NAHB lobbyists are contacting and meeting with wavering House Democrats to urge them to vote against H.R. 3590 when it comes to the House floor for a stand-alone vote. The lobbyists are also delivering tailored letters to these lawmakers that clearly outline our opposition to the Merkley provision, which is “an unprecedented, direct assault on the construction industry.” For more information, contact Carlos Gutierrez at 1-800-368-5242, ext. 8242.

Lead Paint Rule Could Harm Retrofit Program, NAHB Tells Congress

Incentives to retrofit homes and buildings for energy-efficiency are a great idea that NAHB strongly supports, but the Home Star program that would accomplish this could be derailed because too few renovators will have their lead-safety certification in time for the government's April deadline, NAHB member Bob Hanbury told Congress this week.

Testifying before the Senate Energy and Natural Resources Committee, the Connecticut remodeler explained that rules effective April 22 governing work in homes where lead paint may be present may prevent meaningful retrofits from taking place because there won't be enough certified renovation contractors trained in the EPA's new Lead Safe Work Practices by that time.

The Senate is currently considering legislation that includes the Home Star program, which would provide home owner incentives for insulation and other weatherization projects. NAHB economists estimate that every $1 billion in remodeling and home improvement activity generates 11,000 jobs, $527 million in wages and salaries, and $300 million in business income — making these incentives a boost for the economy as well as energy efficiency.

Unfortunately, EPA has not approved enough instructors for required training programs, nor certified enough firms to do the renovation work, which includes energy-efficiency upgrades in older homes that are subject to the Lead Renovation, Repair and Repainting Rule. In all, EPA estimates that more than 236,000 remodelers, window installers, painters, heating and air conditioning specialists and other trade contractors must be trained to ensure compliance with the rule. These contractors must complete eight hours of training, pay a certification fee, and employ lead-safe work practices in homes built before 1978 where children or pregnant women are present. But so far, only about 14,000 people have been trained and EPA has only approved 135 firms to offer the training courses across the country (some states do not yet have any approved trainers).

Hanbury told committee members that NAHB looks forward to working with them to create a successful retrofit program that provides equal access for all qualified and properly-trained contractors and a true incentive to renovate the oldest, least-efficient housing stock. Read our press release for more details, or contact Elizabeth Odina at ext. 8570. [return to top]

Senate Passes Key Housing Tax Extenders

The Senate on Wednesday approved a $100 billion jobs measure that includes one-year extensions of unemployment insurance and COBRA health benefits, as well as renewal for 2010 of a broad range of tax credits that are due to expire, including two high-priority items for NAHB members -- the New Energy Efficient Homes Credit (45L credit) and the Tax Credit Exchange Program for Low-Income Housing Tax Credit (LIHTC) development.

Section 45L of the tax code allows a $2,000 tax credit for the construction and sale or lease of a home that achieves a 50% reduction in energy use relative to a home constructed according to the 2004 IECC energy code. This incentive locks in energy cost savings for the lifetime of a home, which averages more than 60 years. The usage of this credit has increased nearly three-fold from 2006 levels, demonstrating that it is performing as Congress intended and gaining acceptance in the marketplace.

Also included in the bill was an extension of the Tax Credit Exchange Program (TCEP) for 2010, allowing state housing finance agencies to exchange LIHTC credit allocations for grant funds to finance the construction of affordable housing. Senator Evan Bayh (D-Ind.) successfully offered an amendment expanding the TCEP/refundable tax credit program to include GO Zone credits and Midwestern disaster credits. The bill also contains Senator Mary Landrieu’s (D-La.) extension of the placed-in-service date for LIHTCs issued as part of the GO Zone.

The legislation also includes a provision from Sens. Jay Rockefeller (D-W.Va.) and Charles Grassley (R-Iowa) that would make exterior windows, doors and skylights eligible for the section 25C $1,500 existing home energy efficiency tax credit. Further, the bill contains one-year extensions of the New Markets Tax Credit allocation authority and section 198 brownfield expensing provision, and provides a tax credit exchange program for energy efficient appliance manufacturers.

The Senate legislation must now be reconciled with a House bill passed earlier. For more information, contact Greg Brown at ext. 8421. [return to top]

AD&C Case Study Solicitation Moves Into High Gear

NAHB’s campaign to solicit case studies from builders whose business has suffered as a result of the acquisition, development and construction (AD&C) credit crisis is in full swing. NAHB Chairman Bob Jones sent out an e-mail to all builder members earlier this week urging them to participate in this campaign, and EOs, Local and State Presidents, State Reps and National Area Chairmen are also taking part in this initiative to convince regulators that immediate action is necessary to resolve this situation. Specifically, we need strong examples of instances where home builders and developers have been unable to obtain AD&C financing for viable projects or have experienced adverse treatment regarding an outstanding AD&C loan. This initiative will run through the end of the month and the goal is to get at least two case studies per state.

Such case studies are essential to support NAHB's efforts to adopt an aggressive strategy to ease the credit crunch that is choking off new home building activity. Rest assured, however — NAHB will obtain explicit permission from every builder prior to sharing any case study information they may provide. NAHB has developed an online template to enable builders to readily report their financing experiences. To access, you must first log on at www.nahb.org and then click on the AD&C Financing Box. The Web page can also be accessed directly at www.nahb.org/adccasestudy. NAHB is also encouraging non- members to share their stories and is readying a special e-mail link for them to join in the effort. Please visit www.nahb.org/adccasestudy prior to March 31, and thank you ahead of time for your help in resolving this critical issue! For more information, contact Chellie Hamecs at ext. 8425. [return to top]