You owe it to your business to be in Hollywood, Fla., next month with the best-of-the-best of the industry. Visit http://www.pillarsconference.com/ for scheduling information and to register online.

• NAHB Testifies on Bill to Regulate Freddie, Fannie and the Federal Home Loan Banks

In his testimony before the House Financial Services Committee on Wednesday, NAHB CEO and Executive Vice President Jerry Howard offered several solutions to enhance H.R. 1427, which is legislation designed to strengthen the regulation of Fannie Mae, Freddie Mac and the Federal Home Loan Banks.

Howard outlined NAHB’s position on six key elements of GSE reform:

• Capital Requirements – NAHB recommends giving the GSE regulator authority to establish and adjust risk-based capital standards only in response to issues affecting safety and soundness.
• Portfolio limits – NAHB is pleased that H.R. 1427 contains no specific limits or criteria mandating huge reductions in the GSEs’ portfolios, but would prefer language that would prohibit such mandates.
• Affordable housing requirements – NAHB recommends the establishment of an Affordable Housing Fund.
• Program approval – NAHB is concerned that program approval provisions could result in unnecessary interference with development of new programs.
• Conforming loan limits – NAHB Supports the bill’s provisions that would allow the conforming loan limit in high-cost areas to equal the median home price up to 150% of the national loan limit.
• Regulatory structure – NAHB supports a provision in the bill that would establish a structure that would be outside of any Cabinet or government unit, but would like to see the advisory board include members with more housing expertise and understanding of the housing mission of the GSEs.

For the full story, see NAHB’s press release.

• Bills to Open LIHTC Units to Enlisted Military Hit the Hill

This week saw new legislation introduced in both the House and Senate to provide greater access to affordable housing for enlisted military personnel. Senate bill S. 839, the Military Access to Housing Act of 2007, amends the Internal Revenue Code of 1986 to exclude amounts received as a military basic housing allowance (BAH) from consideration as income for purposes of the Low Income Housing Tax Credit (LIHTC) and qualified residential rental projects. Companion legislation—H.R. 1481— was introduced in the House this week as well. These bills respond to an increased demand for affordable rental housing for enlisted military personnel around the country. Currently, enlisted military personnel (typically in the E-2 to E-5 range) are disqualified from LIHTC housing because the BAH is considered income, unlike Section 8 housing subsidies distributed by the Department of Housing and Urban Development. This problem is compounded by the Base Realignment and Closure (BRAC) process, which is shifting thousands of personnel to communities that lack the inventory of affordable housing units to respond to the influx.  NAHB is now focused on building co-sponsorship for both bills.

• Affordable Housing Exit Tax Bill Introduced

Legislators in the House of Representatives will have another chance to consider exit taxes on affordable housing with the introduction of H.R. 1491, the Affordable Housing Preservation Tax Relief Act of 2007. This proposed legislation provides relief from recapture or “exit” taxes at the time of sale of an affordable housing property in exchange for the property remaining affordable for 30 years. The bill is identical to last session’s H.R. 3715.

NAHB has been working with a large coalition of housing organizations for several years on this exit tax legislation, which is critical to the long-term preservation of affordable housing.  Our focus now turns to introduction of legislation in the Senate, as well as securing a budget estimate from the Joint Committee on Taxation on the overall proposal. This estimate will be critical to the viability of the legislation, especially under new Congressional “pay-go” rules that require offsets for any proposal that is a cost to the Federal Treasury.

• Bill Would Streamline Section 8 Housing Inspection Procedures

The House Financial Services Committee Subcommittee on Housing and Community Opportunity received written testimony from NAHB this week that lent the association’s support to the passage of the Section 8 Housing Voucher Reform Act, includes provisions intended to streamline the current housing inspection process.

However, some provisions that had been included in similar legislation introduced—but not passed— in the 109th Congress have not been included in the draft of the new bill. For example, NAHB supports a provision that would significantly streamline the process for inspecting units for compliance with Housing Quality Standards. Units being vacated by a voucher family would not have to be re-inspected before the next eligible family could move in if the unit had been found to meet these standards during an inspection within the previous 12 months. The same would apply for previous inspections within 12 months under another federal, state or local housing assistance program. NAHB’s testimony urged Congress to put these provisions into the current draft. View the full story in Nation’s Building News at this link.

• Appeals Court Upholds Delisting of Pygmy Owl

The U.S. District Court of Arizona on March 9 upheld the U.S. Fish and Wildlife Service’s decision to remove the pygmy owl from the list of endangered species, agreeing that the owls living there are not a separate species and rejecting a petition from the Defenders of Wildlife. With that ruling, the Court agreed with NAHB that building new homes will not hurt the population of the owl, which thrives over the border in Mexico.

The decision follows a landmark ruling from the 9th Circuit U.S. Court of Appeals, the most environmentally conscious court in the nation, which determined in 2006 that the initial decision to list pygmy owls was “arbitrary and capricious.”

In Arizona, the Fish and Wildlife Service proposed that 1.2 million acres be set aside as so-called critical habitat for the owl, disallowing almost all development. Four years ago, NAHB economists estimated that this unnecessary critical habitat designation would have cut residential construction in the Tucson area by 262 homes annually, reduced local economic activity by $545 million over a 10-year period and deprived local governments of $68.3 million in tax and permit revenue. For more information, view NAHB’s press release at this link.

• Court Says the Clean Water Act Should Not Regulate a Holding Pond

The construction community got a little closer to clarity on what the Clean Water Act does and does not cover when the Ninth Circuit Court of Appeals reversed a lower court ruling, and declared that a holding pond is not covered by the law. NAHB filed a friend-of-the-court brief in this case supporting the appeal of the previous decision.

The circuit court said that the lower court had erred when it found that “'the same characteristics that justify protection of adjacent wetlands …apply to adjacent ponds.' This analysis was improper.” View the full story in Nation’s Building News at this link.

The turmoil in the financial markets may actually push interest rates down, with Seiders looking for a quarter-point cut at mid-year. For the rest of the story, view the current issue of Eye on the Economy. [return to top]

• Numbers Matter: Affiliate Member Category Opens Doors

Attention Multifamily members: NAHB’s Membership Committee has opened official federation membership to Council members employed by a Builder or Associate member for a significantly reduced dues investment. The Committee expects that a decrease in dues for the “employee” membership category will result in an increase in official member participation—a structural shift that could yield big benefits for would-be members who currently participate only in local-level events and are not counted in industry totals.

So, if a local HBA has an Affiliate membership category and employers are Builder or Associate members, their employees are now eligible for full membership via the Affiliate category for a significantly reduced fee (the national portion of the dues investment is only $5). Why bother? Because it’s the full memberships that count when it comes to taking care of our industry. The dues decrease is designed to increase official participation, and therefore our ability to protect and serve the industry. This change means that new Affiliate membesr may serve on NAHB committees, task forces, working groups and more, and are included in the official membership number of the federation.

Multifamily Council members who are eligible (employed by a Builder or Associate member) are encouraged to participate by seeking Affiliate membership. If your local HBA does not offer the category, contact your Executive Officer to request availability. More details are available online at www.nahb.org/AffiliateInfo or e-mail Emily Fitzsimmons.

• $1,000 Award to Go to Top HBA Program Benefiting People with Disabilities

The National Association of Home Builders, in partnership with the National Organization on Disability (N.O.D) and the National Housing Endowment, is seeking outstanding examples of programs, projects, and activities conducted by its member home builder associations (HBAs) that further the goal of full participation of people with disabilities in community life for its annual NAHB/NOD Awards program.

The HBA that has sponsored the winning initiative will receive a $1,000 cash award made possible through the generous sponsorship of the National Housing Endowment.

The award will be presented at NAHB’s Spring Board of Directors Meeting in Washington, D.C. next June. State and local HBAs are invited to submit entries for the NAHB/N.O.D disability award. The deadline for entries is May 7. The application form is available on the NAHB Web site at this link. For more information, view NAHB’s press release, or contact Laura Zaner.

• Remodelors Council Changes Name to “NAHB Remodelers”

The NAHB Remodelors™ Council has changed its name to the NAHB Remodelers in order to broaden industry and consumer recognition of the services its membership provides. The name change took effect at the 2007 NAHB Winter Board of Directors Meeting in Orlando, Fla.
“NAHB is already the leading trade association for remodeling firms whether it’s membership, services or awareness, but we found that many inside and out of the industry were still confused as to what exactly is a council,” said Mike Nagel, CGR, CAPS, a remodeler from Chicago and the chairman of the 2007 NAHB Remodelers. “The change to NAHB Remodelers ensures that consumers and the broader industry associates NAHB with remodeling as well as new construction.”

• 2007 Pillars of the Industry Conference and Gala — April 11-14

The upcoming Pillars of the Industry Conference and Awards Gala will be held at the Westin Diplomat Resort and Spa, in Hollywood, Fla., April 11-13. The venue has a lovely beachfront location, featuring a variety of water sports and sport fishing opportunities, as well as a full spa facility for off-hours relaxation. Of course, as always, the educational programs will feature a top-flight roster of speakers drawn from upper-tier industry leaders. For more information or to register online, view this page.

• Spring Board of Directors Meeting — June 5-10

It’s not too soon to pencil in the Spring Board meeting on your calendar. We’re planning multifamily events already.

To obtain the self-study materials or to register for the exam, e-mail RAM staff or call the Professional Designation Helpline at 800-368-5242 x8154. [return to top]