| September 21, 2009 |
By Joe Robson
NAHB Chairman and
Jerry Howard
NAHB President and CEO |
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Bringing builder messages to the nation's top news outlets,
NAHB President and CEO Jerry Howard embarked on a whirlwind media tour in New York this week.
 Over three fast-paced days, Jerry met with reporters from some of the most visible and prestigious news organizations in the country to explain and promote NAHB's top advocacy goals within our ongoing Revive Housing, Restore America campaign. In particular, he explained that the upcoming expiration of the first-time home buyer tax credit at the end of November, coupled with severe headwinds in the home building industry in the form of low appraisals and a continuing credit crunch for housing production loans, threaten to stall the the beginnings of a housing recovery that is necessary to sustained economic growth. Among those interviewing Jerry were reporters from The Wall Street Journal, Forbes magazine, Bloomberg Television, Fox News, The New York Times, CNN/Money, and U.S. News & World Report. Our confident spokesman did a great job of representing NAHB member views and concerns at this critical time for our industry. The success of this exhaustive media blitz was proven by an impressive amount of media coverage this week that included several direct quotes from Jerry and our most recent press releases.
Ads target Capitol Hill
 Meanwhile, this week NAHB along with the National Association of Realtors and the Mortgage Bankers Association ran a joint ad on the need to extend the home buyer tax credit that was aimed directly at Congress. The ad (at right) appeared in Capitol Hill publications that are widely read by members of Congress, including Roll Call, Politico and The Hill. More ads are planned for next week in CQ Weekly and National Journal.
Questions on this item may be directed to MondayMorningQuestions@nahb.com.
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Builder confidence edged up a bit more in September
 even as concerns remained about what the near future may hold, according to the NAHB/Wells Fargo Housing Market Index (HMI), released Sept. 16. The index rose a single point to 19 this month, which is its highest level since May of 2008. Two out of three of the HMI's component indexes gained some ground, but a one-point decline in the component gauging sales expectations in the next six months is indicative of builders' awareness that we are currently in a very fragile recovery period in which several challenges still threaten to derail the progress that has been made. For one thing, noted NAHB Chairman Joe Robson in our HMI press release, "The window is now basically closed for being able to start a new home that can be completed in time for purchasers to take advantage of the $8,000 first-time buyer tax credit before it expires at the end of November." The concern now is what will keep the market moving if Congress fails to extend that deadline, and NAHB took advantage of media coverage of the HMI to again press our case for congressional action to bolster housing. On a good note, September's HMI registered gains in all four regions of the country. The largest of those was a three-point gain in the Midwest, which brought that region's HMI score (though still quite low at 19) to its highest level since July of 2007. Read more in our press release or see the HMI tables online at: www.nahb.org/hmi. Send questions to: MondayMorningQuestions@nahb.com.
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August housing starts rose, but not on the single-family side,
 a fact that is likely tied to the impending expiration of the first-time buyer tax credit at the end of November. The U.S. Commerce Department reported on Sept. 17 that August housing starts rose 1.5% to a seasonally adjusted annual rate of 598,000 units, but this gain was mostly due to some see-sawing in the often-volatile multifamily sector that had fallen to near-record-low production in the previous month. Meanwhile, single-family starts declined 3% to a seasonally adjusted annual rate of 479,000 units, ending what had been a five-month run of improvements. As NAHB Chairman Joe Robson explained in our press release, time has run out on the credit as far as new home building is concerned, because most projects that are contracted now will not be completed in time to take advantage of the tax credit before Nov. 30. "Clearly Congress must act now to extend the tax credit if we are to keep the market moving toward a recovery," Joe said. In addition, further government action is needed to address the severe credit crunch for housing production loans, resolve problems with the appriasal process and expand Net Operating Loss tax provisions for businesses. Read more in our press release, or see the government's report online. Send questions to: MondayMorningQuestions@nahb.com.
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OSHA will step up job site safety inspections
in the wake of a recent positive report from the Bureau of Labor Statistics. While the report showed that fatal occupational injuries decreased substantially last year, U.S. Labor Secretary Hilda Solis indicated that the progress made so far "prompts us to step up our vigilance, particularly as the economy gains momentum." According to NAHB's latest research, the average fatality rate in the residential construction industry is 8.35 deaths per 100,000 full-time employees. This compares to the rate for all construction, which is 11.59 deaths per 100,000. Builders can mitigate the risk of employee injuries by recognizing and addressing potential jobsite hazards, being knowledgeable about applicable requirements and regulations, and implementing a comprehensive safety and health plan. NAHB's publication and companion CD "Home Builders' Safety Program" provides a helpful overview of job-site safety and a model safety program that builders can use to develop their own plan. Also, to help our members understand the OSHA inspection process and provide tips on how to respond during an inspection, NAHB has developed a resource document titled "The OSHA Inspection Process." Our members should also know that NAHB provides onsite training as well as various videos and publications to help both employers and employees educate themselves about proper safety precautions while participating in potentially dangerous activities both on and off the job. View more extensive coverage of this story in NBN Online; to see all of NAHB's safety resources available through BuilderBooks, visit: www.builderbooks.com/safety. For more information on NAHB safety training programs, contact MondayMorningQuestions@nahb.com.
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An eighth NAHB teleconference this week
 continued to generate media attention for our advocacy goals within the Revive Housing, Restore America campaign. This time around, it was Ohio builders who were in the spotlight, including Greg Romes in Avon, Fred Tobin in North Canton and Tony Crasi in Cuyahoga Falls. Joined by NAHB Chief Economist David Crowe, each of the builders provided their perspectives on local housing markets and the dire need for congressional action to: (1) extend and enhance the home buyer tax credit program; (2) correct the faulty appraisal process; (3) improve housing credit conditions and (4) approve Net Operating Loss relief legislation in the House and Senate. NAHB continues to bring builders' concerns about the need to bolster housing to the media's and public's attention with the use of these teleconferences, which have featured builders from around the country providing their individual perspectives and market views over the past two weeks. Read more about these teleconferences in NBN Online, or send your questions to: MondayMorningQuestions@nahb.com.
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EPA will reconsider its decision to set standards for ozone,
 according to papers filed with the U.S. District Court of Appeals in Washington, D.C. last week. In May 2008, NAHB joined 15 states, industry groups and environmental advocates in a lawsuit consolidated as Mississippi vs. EPA to challenge the federal agency on the new standards, referred to as National Ambient Air Quality Standards (NAAQS). In March of this year, EPA requested that this litigation be postponed to allow the Obama administration to review the NAAQS and determine how it would proceed. Agreeing to that delay, the Circuit Court gave EPA until Sept. 16 to decide if it will reconsider its NAAQS rulemaking. And sure enough, that is what EPA has done. This is good news, because as NAHB and other industry groups and states had asserted, the ozone NAAQS that EPA wanted to impose were impermissibly stringent and unfounded by sound science. However, EPA has already said that it will write a new rule for notice and comment by Dec. 21, with plans for that final action to be signed and implemented by Aug. 31, 2010. Therefore, NAHB concerns about this issue continue. "If the NAAQS is set at a level that is so low that even natural occurrences of ground-level ozone can't meet the standard, no amount of regulation imposed on any industry will be able to satisfy the NAAQS, and industry will be unfairly burdened with the cost of trying to comply with a standard that cannot be achieved," noted NAHB Staff Counsel Amy Chai. "NAHB is concerned that lowering the ozone NAAQS below 0.08, much less to the 0.075 level in the current NAAQS, will do just that." Read more in the next Nation's Building News Online, or send questions to: MondayMorningQuestions@nahb.com.
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Buyers want the benefits of more energy-efficient homes, but...
 they aren't necessarily willing to pay much extra for those features, according to results from a recently conducted NAHB member survey. Findings indicate that, of those buyers who are willing to pay more for green features, 57% are likely to pay a 2% premium at most. This provides further evidence that cost effectiveness is a key factor in deciding to go green. The survey also showed that preferences for specific green building techniques are decidedly regional, with builders in the West reporting much more interest in features that improve water efficiency. Meanwhile, interest in homes built with recycled materials is particularly high in the Northeast, and rather low in the South. And while only 11% of builders nationwide said their customers ask about environmentally friendly features at this time, energy efficiency continues to be the main driver in the green building movement. "More and more, our members are able to convince their clients of the benefits of a home built with efficiency and sustainability in mind," said NAHB Chairman Joe Robson in NAHB's press release announcing the survey's results. In all, survey findings indicate that, as Congress continues to debate how to encourage more energy-efficient construction via new legislation, it must keep affordabilty in mind and look for ways to incentivize changes, not only to newly built homes but to the overall housing stock. Read our press release here or send your questions to: MondayMorningQuestions@nahb.com.
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NAHB suggestions on storm water management regulation
 and "smart growth" principles have been submitted to the Environmental Protection Agency (EPA) as that agency begins to implement an executive order aimed at restoring the Chesapeake Bay. Our suggestions are part of a continuing NAHB effort to ease what are seen as inevitable restrictions on home building and development as a result of the federal government's new initiatives to protect the vast watershed of the Chesapeake Bay that extends across seven states and the District of Columbia. NAHB specifically noted in its communications that regulators should not unfairly target home builders, focusing instead on "all sources of pollution contributing to the bay's deterioration." The greatest emphasis, we noted, should be placed on the largest sources of pollution, including agriculture and runoff from urban areas – and sure enough, EPA is putting new a focus on agricultural operations, with additional funding from USDA.
NAHB pointed out to EPA that "In many cases it is more beneficial to the environment to retrofit an existing structure to better prevent runoff into the bay rather than hold new construction projects to higher standards which may be technically excessive and even impossible to meet in urban environments." Among other comments, NAHB asked the EPA to take a more evenhanded approach to the rulemaking process that would allow not only environmental groups but also the regulated community to provide opinions before new rules and regulations are proposed. Low-impact development techniques in particular, we noted, do not work in every application and should not be mandated. Read more about NAHB's efforts and suggestions regarding the Chesapeake Bay cleanup in this NBN Online story. You can direct any questions on this item to MondayMorningQuestions@nahb.com.
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A heads-up on E-Verify requirements for federal contractors
 was included in the latest edition of Nation's Building News Online, and we want to make sure that everyone who needs to know this information receives it. The bottom line is that employers awarded federal contracts after Sept. 8, 2009 that are subject to Federal Acquisition Regulation are now required to enroll in the Internet-based E-Verify program and electronically check the identity and work authorization of all new hires as well as existing employees who will work on the contract. (Please note – this does not include Section 8 Housing Agreements or federally insured loan agreements). The final rule requires federal contractors to enroll in the E-Verify program within 30 days from the date of the federal contract, and to complete verification within 90 days of enrollment. This rule is intended to deter the employment of unauthorized aliens on federal contracts. In all, about 169,000 employers and 3.8 million employees will now be subject to the E-Verify participation requirement. View the NBN Online article for specific conditions of the new rule, or you can e-mail your questions to: MondayMorningQuestions@nahb.com.
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A free NAHB Webinar on infrastructure financing alternatives
 will be hosted by the Land Development Committee at 2:00 p.m. (EDT) on Sept. 24. This offering is the third in a series of NAHB Webinars on critical land development issues, and is titled: "Understanding Infrastructure Finance Tools That Are Successful Alternatives to Impact Fees." It will feature national experts discussing special district financing tools and explaining how they can be applied for various local projects. Beyond the upcoming Webinar, NAHB has a multitude of additional resources on this issue. Take a look at www.nahb.org/infrastructurefinance. To register for the Sept. 24 event, click here.
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Thank you, NAHB Associate Members!
 September is Associate Member Appreciation Month at NAHB, a time for us to recognize the tremendous contributions that our associates make to our local, state and national advocacy efforts, as well as to the overall power and influence of our association. Truth be told, the participation of our associate members is so important to NAHB that Associate Member Appreciation Month should really be celebrated all year round! The NAHB Senior Officers want to personally thank our associate members who are readers of this report for being actively engaged participants in our organization, and for all the assistance they provide on a daily basis to our builder members. The fact of the matter is, we couldn’t do what we do without you. We also strongly encourage all of our local and state members out there to express your appreciation to an associate member today. Information on the NAHB Associate Members Committee is available on NAHB.org.
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Check out what's new on NAHB.org this week:
55+ Housing: Builders, Buyers and Beyond report
Joint research from NAHB and the MetLife Mature Market Institute.
Big Spaces, Luxury on Back Burner of Multifamily Design
Coverage of a recent NAHB Multifamily Web seminar exploring
how changes in the business climate have affected what's
being built.
Letter to Bernanke: Losing Hope in the Banking System
Letter by NAHB Member Ray Fernandez on the need for
immediate action to reverse the housing credit crisis and
appraisal problems.
Newly Updated NAHB Events Calendar
Newly Updated Education Calendar
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