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Builders March on Capitol Hill With Housing Priorities
The immigration debate took center stage as more than 1,250 builders from across the country arrived in the nation’s capital on June 6 to take part in the annual NAHB Legislative Conference and seek support from members of Congress to promote policies that will keep housing a national priority and expand rental housing and homeownership opportunities nationwide.
The builders’ “March on Capitol Hill” attracted the attention of major media outlets, with Forbes running a story entitled “Builders Hit the Hill,” and CNBC, Bloomberg TV and Marketplace Radio reporting on the day’s activities.
In an interview with CNBC, home builder Chuck Ellison, president of Miller and Smith at Woodcrest LLC based in McLean, Va., stressed the importance of immigrant workers to the home building industry.
“About 20% of our workforce today is immigrants,” he said. “There simply is not enough native labor for us to build the homes we need and we need to build a tremendous number of homes in the next 10 years. We’re just not going to be able to do it without immigrant labor.”
Also appearing in the CNBC news segment, Robert Camp, president of Camp Corporation located in Tacoma, Wash., added: “We know that housing has always been a driver of the economy and will continue to be and so they (Congress) certainly are sensitive to our issues and we are being well received.”
 And in a further demonstration of the political clout of builders in the political process, two Republican presidential contenders addressed the NAHB leadership during the spring board meeting — former Massachusetts Governor Mitt Romney and Tommy Thompson, a former Department of Health and Human Services Cabinet secretary and Wisconsin governor.
“Builders who participated in the Legislative Conference were afforded a unique opportunity to speak directly with their members of Congress and to take a stand on the issues that affect their businesses and bottom line,” said NAHB President Brian Catalde.
Builders discussed a wide range of legislative issues with an impact on housing costs and the financial health of the industry and their businesses, including environmental regulations, tax policy, housing finance and soaring health care costs.
In more than 300 individual meetings with their representatives and senators, builders called for action on the following NAHB legislative priorities:
- Housing’s Impact on the Economy. Noting that housing accounts for more than 16% of gross domestic product, lawmakers were urged to support efforts to keep housing on track as the nation’s most important economic engine and wealth builder. Members of Congress were also asked to support legislation that removes regulatory barriers that make home building more difficult and tend to curtail housing production, such as wetlands permitting, climate change legislation and federal storm water permitting program reform.
- Immigration Reform. With the immigration debate reaching its crescendo during the week of June 4, builders told their senators that the housing community could not support Senate bill S. 1348 unless major revisions were made to the legislation. Specifically, builders called on lawmakers to fix the new visa program to allow a future flow of immigrant workers for the construction industry that is workable; ensure that contractors are not held responsible for the legal status of employees hired by subcontractors; and prevent opportunities for frivolous lawsuits against employees. Although the Senate failed to adequately address these concerns, the bill was shelved when lawmakers could not garner enough votes to cut off debate and bring the bill to a vote. However, late last week a deal was brokered to revive the measure. (Click here for a related story in this issue of NBN).
- FHA Modernization. Seeking viable alternatives to the volatile subprime market, builders called on Congress to reform the Federal Housing Administration's single-family mortgage insurance programs. FHA could potentially assist tens of thousands more borrowers who need an exit strategy from their subprime mortgage by insuring fixed-rate, adjustable-rate and hybrid adjustable-rate mortgage loans to borrowers with limited cash reserves and/or slightly tarnished credit.
NAHB championed several recommendations in H.R. 1852, which is expected to go to the House floor in coming weeks. The bill would grant FHA greater flexibility in setting downpayment requirements for its single-family programs and establish a risk-based mortgage insurance premium pricing structure that rewards higher-risk borrowers who establish a track record of timely payments. It would also revise FHA requirements for condominium loans, permit FHA to extend the maximum loan maturity to 40 years to enable borrowers to reduce their monthly mortgage payments and increase the current limit for FHA-insured mortgages to enable deserving potential home buyers to buy homes in high-cost areas. Builders called on their representatives to support H.R. 1852 when it goes to the House floor and urged their senators to support FHA revitalization legislation that addresses NAHB policy issues.
- Government Sponsored Enterprises (GSE) Reform. Legislation reforming the regulatory oversight of the government sponsored enterprises (GSEs) — Fannie Mae, Freddie Mac and the Federal Home Loan Banks — was approved by the House on May 22. H.R. 1427, the Federal Housing Finance Reform Act of 2007, would establish a strong, regulatory framework for the GSEs and safeguard and strengthen their financial health while also supporting their ability to fulfill their housing-related activities. In the Senate, Banking Committee Chairman Christopher Dodd (D-Conn.) has yet to introduce a companion bill. Builders urged their senators to ensure that NAHB policy concerns are addressed prior to passage of any GSE reform bill in the Senate, and called on their House members to ensure that any final compromise with the Senate does not weaken House-passed bill H.R. 1427.
 In a June 7 address to the NAHB leadership, former Governor Mitt Romney stressed his support for the mortgage interest deduction and called for the permanent elimination of the estate tax, tort reform and abolishing unnecessary regulations that hamper the ability of the economy to thrive and grow.
“You create jobs, you create income. You are helping to build a better America and a freer and safer world,” Romney said.
Speaking before the NAHB Board of Directors on June 9, former Governor Tommy Thompson said that one of his goals if he is elected President is to reform the tax code.
“The mortgage interest deduction will never change in a Thompson administration. I know how important it is to your industry and how important your industry is for our country,” said Thompson.
On another issue of importance to the housing community, Thompson said that any immigration bill approved by Congress should ensure that contractors are not responsible for the legal status of their subcontractors’ employees.
To read legislation, click here and enter the bill number in the box at the upper left.
For more information, e-mail Michael Strauss, or call him at 800-368-5242 x8252.
Photos by Herman Farrer
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