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Bill Addresses HUD Rule on Clearing Program Participants
 The House last week approved H.R. 1675, the Preservation Approval Process Improvement Act of 2007. The legislation is designed to make it easier to invest in affordable housing by easing overly burdensome filing requirements to participate in U.S. Department of Housing and Urban Development programs.
To ensure that they are reputable and will honor their legal, financial and contractual obligations, participants in HUD programs, including FHA mortgage insurance, are required to submit information on their previous business with the department through an electronic reporting system.
Introduced by Rep. Melissa Bean (D-Ill.), H.R. 1675 would suspend this mandatory process until HUD makes changes to draft regulations it has proposed for the 2530 Previous Participation filing requirements.
HUD’s proposal contains onerous filing requirements for passive investor participants and establishes additional conditions under which participants can be prevented from taking part in its programs.
NAHB, along with a large coalition of housing industry groups, opposes many of the provisions in the proposed regulations. HUD has been asked to revise its proposed rules, but it has not done so.
Members of Congress have asked HUD not to publish the proposed regulations, and they have not been published. However, having no assurances that the regulations will not be put into effect eventually, the housing groups have sought legislation to stop them from being published.
On the same day that H.R. 1675 was passed in committee, HUD published new guidance revising filing requirements for passive investors. However, it is uncertain whether the new guidance will be left in place, and there remains confusion as to how it would actually be applied if legislation is signed into law.
H.R. 1675 now heads to the Senate, where Senate Banking, Housing and Urban Affairs Committee Chairman Christopher Dodd (D-Conn.) is expected to consider it in committee in the near future.
NAHB advocacy staff members will continue to support the legislation and work with HUD to improve the proposed participation clearance process.
To read the legislation, click here and enter H.R. 1675 in the box at the center of the page.
For more information, e-mail Claudia Kedda or Scott Meyer at NAHB, or call them at 800-368-5242 x8352 and x8144.
Mark Your Calendar for the 2007 NAHB Legislative Conference
The 2007 NAHB Legislative Conference provides a unique opportunity for builders to speak directly with their members of Congress and to take a stand on the issues that affect their businesses and bottom line.
The day-long conference is on Wednesday, June 6 and coincides with the NAHB spring board meeting in Washington, D.C.
Attending the 2007 Legislative Conference offers NAHB members an unparalleled opportunity to:
- Lobby members of Congress to protect your business
- Establish lasting relationships with your elected federal officials
- Share builder concerns in a national forum in Washington, D.C.
- Learn the latest policy developments on the key issues affecting your business
- Demonstrate your industry’s commitment to responsible policies, pragmatic reforms, effective programs and providing the resources necessary to meet our nation’s ongoing housing needs
- Network and share business strategies with your peers
- Learn how to be an effective advocate for your business and your industry
- Make your views known on Capitol Hill
- Do your part to ensure that NAHB’s issues are heard by Washington policymakers
- Galvanize a united front on Capitol Hill
For more information or to register, click here.
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