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Grassroots Push On as Senate Panel Advances Housing Bill
As housing legislation continues to move through Congress, NAHB has renewed its push to get lawmakers to swiftly pass a final bill that can be sent to the President’s desk and signed into law. On May 20, the Senate Banking Committee approved the Federal Housing Finance Regulatory Act of 2008. The bipartisan committee vote of 19 to 2 adds further momentum to NAHB’s advocacy efforts in support of a comprehensive housing stimulus package.
The legislation would reform the regulatory structure of government sponsored enterprises (GSEs) Fannie Mae, Freddie Mac and the Federal Home Loan Banks and expand the Federal Housing Administration (FHA) to help finance at-risk borrowers into viable mortgages and prevent further foreclosures.
A breakthrough was achieved after Senate Banking Committee Chairman Chris Dodd (D-Conn.) reached an agreement with Ranking Member Richard Shelby (R-Ala.) that taxpayers would not be liable if new loans insured by the FHA to help struggling home owners went into default. Under a compromise plan negotiated by the two senators, funds from a new GSE affordable housing fund created by the legislation would be temporarily diverted to compensate the FHA for costs of the new foreclosure prevention program.
Of note, Sen. Shelby indicated that throughout the negotiations on this compromise he has been in frequent contact with the White House and he expressed confidence that the President will not veto the agreement.
The Senate panel’s bill is one part of the overall housing package in play and is limited to FHA rescue and GSE reform provisions. The full Senate last month passed a housing stimulus tax package and FHA modernization. All of these elements are included in legislation approved by the House on May 8. At this point, it remains uncertain whether House and Senate negotiators will ultimately consider one giant housing package or choose to move forward with smaller bills.
NAHB ran ads in Roll Call and Politico on May 21 that called on lawmakers to “step up to the plate” and complete action on housing stimulus legislation. With lawmakers ready to leave Washington for the Memorial Day recess, the ads say: “Listen to your constituents when you get home: America is hurting. Families are worried about keeping their homes and jobs. Getting housing and the economy moving again should be the highest priority for Congress when it returns from recess in June.”
With lawmakers returning to their home districts from May 23 through June 2, NAHB launched a major grassroots push that coincides with the ad message above. The association’s members are being urged to contact their federal lawmakers in their local district offices and set up an appointment to discuss the pending housing legislation.
With the House and Senate still faced with the task of reconciling their bills and sending a final package to the President’s desk, builders should urge their members of Congress to act swiftly and include the following provisions in any final housing stimulus bill:
- A temporary home buyer tax credit. This will stimulate home buying and reduce excess inventories. The tax credit is the best way to stabilize the housing market.
- FHA modernization. A revitalized FHA will get mortgage money flowing again.
- Net Operating Loss Carryback. Allowing companies to carry back net operating losses over four years will help businesses weather the economic downturn and make their payrolls.
- Mortgage revenue bond program. Expanding this program will help strapped borrowers seeking to refinance their home loans.
- GSE reform. This will increase the flow of capital in housing markets and free up more funds for home purchases or to refinance troubled loans.
Meanwhile, NAHB continues to meet with the tax staffs from the House Ways and Means Committee and Senate Finance Committee to push for the best overall package of proposals, particularly as they relate to the home buyer tax credit. Tax staff members from the respective chambers are anticipated to begin negotiations following the Memorial Day recess.
NAHB supports all of the housing and tax elements within the various House and Senate housing stimulus-related bills. In the coming weeks, NAHB advocacy staff members will continue to use all the tools necessary to urge Congress to deliver a bill to the President’s desk by July 4. Last week’s bipartisan action on behalf of the Senate Banking Committee should help pave the way to that goal.
For information on scheduling a local appointment with your member of Congress during the congressional recess, e-mail Molly Murray or call her at 800-368-5242 x8282.
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