Washington Hotline - August 7, 2008
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2009 Pillars of the Industry Conference and Awards Gala
Save the Date! The 2009 Multifamily Pillars of the Industry Conference and Awards Gala will be held March 17-18, 2009, at the Hotel del Coronado in San Diego, Calif. The Awards Gala will be held on March 18. Registration information and conference details will be provided in the upcoming issues of Hotline.
Economy: The Fed Holds Steady and Worries Less About Inflation
In the most recent issue of Eye on the Economy, NAHB's chief economist, David Seiders commented on the Fed's position on inflation.
The Fed held short-term interest rates steady at the Aug. 5 meeting of the Federal Open Market Committee (FOMC), maintaining a 2% federal funds rate target and a 2.25% discount rate.
This decision came on the heels of a July 30 announcement that extended the terms and conditions for the special liquidity facilities that the Fed had introduced earlier in response to severe inter-bank and investment bank funding pressures.
The Fed has also made the discount window available to Fannie Mae and Freddie Mac, as part of a Fed-Treasury effort to restore market confidence in these government sponsored enterprises.
The Aug. 5 FOMC statement noted that tight credit conditions, ongoing housing contraction and elevated energy prices “are likely to weigh on economic growth over the next few quarters.” The statement also noted that “inflation has been high…and some indicators of inflation expectations have been elevated.”
But unlike the rather hawkish June 25 FOMC statement, the Aug. 5 statement suggested that the Fed views downside risks to growth and upside risks to inflation to be about in balance. This judgment was shared by 10 voting members of the FOMC, with only one member dissenting and voting in favor of a rate increase.
The Fed expects a near-term slowdown in real economic growth and a slowdown in inflation at the same time (similar to NAHB’s forecast). In that environment, the Fed presumably will maintain a stimulative monetary policy stance that keeps the “real” federal funds rate in the negative zone for some time.
NAHB’s forecast assumes the Fed will keep the nominal funds rate at 2% until the second quarter of 2009, followed by a series of increases that will move monetary policy back toward a neutral position.
Legislative: House Reauthorizes Basic Pilot (E-Verify) Program
The House on July 31 voted to reauthorize the Department of Homeland Security’s Basic Pilot program, also known as “E-Verify.” The voluntary online program provides employers who join with an ability to verify the work authorization of their new employees through a government database of eligible workers. Under the language contained in the bill—H.R. 6633, the Employee Verification Amendment Act —the Social Security Administration will be reimbursed for the work it does to maintain and update the databases that are used in this program.
Given the number of states that have mandated that employers use Basic Pilot/E-Verify, several lawmakers expressed concern that the Social Security Administration and its field offices could become inundated with workers trying to fix problems that might lead to the government denying them employment eligibility in the U.S. The funding provision is aimed at ensuring that SSA does not face a sudden backlog of cases that could lead to legal U.S. workers being denied employment. The bill also requires the Government Accountability Office to conduct studies on the error rates in the government databases, and the direct and indirect costs to small businesses who attempt to use the program.
At this time, it is unclear how or when the Senate will take up this legislation, although several key senators have indicated an interest in moving quickly to reauthorize the program. To view the legislation, click here and enter the bill number in the box in the upper center screen.
For more information, e-mail Jenna Hamilton or call her at 800-368-5242, x8407.
Regulatory: Government Housing Mandates Pass; New Utility Allowance Regulations for LIHTC
- House Panel Passes Efficiency Mandates for Government Housing Programs
The House Financial Services Committee has completed marking up H.R. 6078, the Green Resources for Energy Efficient Neighborhoods Act (or GREEN Act). The legislation sets new requirements for building codes and standards for all HUD housing, and strongly encourages the government sponsored enterprises to substantially promote energy-efficient mortgages and location-efficient mortgages through the government’s housing finance structure. The bill also includes language from the HOPE VI reauthorization legislation (H.R. 3524) mandating compliance with Green Communities Criteria Checklist for all residential HOPE VI construction, a measure which NAHB opposed earlier this year. Finally, the bill also calls for mandatory energy ratings for all FHA-insured mortgages, for both new and existing homes, as well as proof of a 20% reduction in energy usage for existing structures undergoing any rehabilitation or renovation.
NAHB CEO Jerry Howard testified on the legislation in June, and some improvements were made to the bill during mark-up based on recommendations by NAHB. However, NAHB still is very concerned about some of the mandatory provisions and will to continue to work towards additional changes prior to any House floor action in the fall.
To view the legislation, click here and type the bill number in the box in the upper center screen.
For more information, e-mail Elizabeth Odina, or call her at 800-368-5242, x8570.
The National Association of Home Builders (NAHB) applauded new regulations issued by the Internal Revenue Service (IRS) that give Low Income Housing Tax Credit (LIHTC) property owners more flexibility in the way they calculate utility allowances for their low-income residents.
“Considering the exponential increases in energy costs, the new utility allowance regulation will allow builders to more accurately calculate the energy usage for their buildings, therefore reducing long-term operating costs,” said Justin MacDonald, a LIHTC developer in Kerrville, Texas, and chairman of NAHB’s Housing Credit Group, which had been leading the charge for the new regulations for the past several years.
NAHB led a coalition effort to modify the IRS regulations to allow owners to use alternative methods to compute the utility allowances for their properties so that they more closely reflected actual expenses.
Read the full press release.
Environment: Wetlands Guidance from Army Corps Broadens Permitting Guidelines
The U.S Army Corps of Engineers and the EPA joined forces to revise the procedure for wetlands permit issuance action that will expedite the slow-paced process.
Replacing the requirement to obtain approved jurisdictional determinations (JDs) with the option of obtaining a general permit based on a preliminary JD avoids major delays in permit decisions. However, the full advantage of the new guidance is yet to be determined.
NAHB staff members are presently analyzing the usefulness of the new guidance and gathering input from other stakeholder organizations. The document can be found on the Corps Web page for Regulatory Guidance Letters.
View NAHB's Environmental Issues Committee Newsletter for the full article.
Industry News: Become an FHL Bank Director — Application Deadline Next Week
FHL Bank Director Applications Due August 15!
The next round of Public Interest Director appointments to Boards of the 12 Federal Home Loan Banks will soon be under way. Under current regulations, each of the FHL Banks is required to forward their recommendations to their regulator, the Federal Housing Finance Board, by Oct. 1. NAHB has established a process for assisting members who are interested in serving on FHLBank boards.
NAHB members who are interested in applying for a public interest directorship and wish to be considered for an NAHB recommendation should contact John Dimitri, 800-368-5242 x8529, no later than Aug. 15, 2008.
NCHI Product: Danze, Inc. Low-Flow Showerheads
The Environmental Protection Agency (EPA) estimates the average American uses 100 gallons of water each day at home. Danze, Inc., recently introduced five low-flow showerheads based on its stylish designs to help homeowners reduce their water consumption without a noticeable difference to their shower experience. The new low flow showerheads use only 1.5 gallons per minute (gpm) regardless of low or high water pressure.
Danze, Inc. is a leading manufacturer and marketer of fine furnishings for the kitchen and bath. For more information on Danze, Inc. vist www.danze.com.
For more information on NCHI products, e-mail David Cooper, or contact him at 800-368-5242 x8247.
Calendar: Conferences and Events
- Get Hesitant Boomers to Buy Now! Audio Seminar
Tune into the Get Hesitant Boomers to Buy Now! audio seminar coming up Tuesday, Aug. 12, from 2:00 p.m.-3:00 p.m. EDT. Presented by the National Association of Home Builders and the NAHB 50+ Housing Council, this interactive program will show you ways to overcome objections and motivate your 50+ buyer-prospects to move forward despite today's market conditions. View the audio conference flyer.
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Get Hesitant Boomers To Buy Now!
Tuesday, Aug. 12, 2008
2:00 p.m. - 3:00 p.m. EDT
Fee: $79 per phone site
Register Now! |
Participate and hear about:
- Ways to educate buyers about their financial portfolio and why they might not have to wait
- The psychology of today’s consumers and how to conquer their fears about buying in the current market.
- Building value and offering incentives that won’t break the bank.
Panel:
Moderator – Rich Carlson, CAASH, MIRM, CMP, Carlson Communications, Northborough, Mass.
Speaker – Deborah Blake, Pulte Homes/Del Webb, Scottsdale, Ariz.
Speaker – Chuck Covell, Covell Communities, Gaithersburg, Md.
For more information on the audio seminar or to submit a question to be asked during the audio conference, e-mail Jeff Jenkins, or call him at 800-368-5242 x8292.
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Submit your multifamily entry into NAHB's Building Systems Councils Excellence in Marketing and Design Awards by September 17.
The BSC is accepting entries for its 2009 BSC Excellence in Marketing and Home Design Awards Program, held at SHOWCASE, the Building Systems Councils' annual networking event. New categories this year include multifamily awards for modular, panel, log and concrete.
The Excellence in Marketing & Home Design Awards Program is now online. Read background information, review guidelines, and print application materials from this page.
NAHB’s Building Systems Councils' SHOWCASE '08 is a one-of-a-kind event for the building systems industry. No other conference focuses on ways to advance and promote building systems — especially in today’s housing market. You’ll network with leaders from all facets of the industry, connect with modular, panel, and concrete suppliers, and learn how to tap into the newest systems-built trends.
For more information, e-mail Tony Gacek or contact him at 800-368-5242 x8357.
- Fall Board 2008
The 2008 Fall Board of Directors Meeting will be held at the San Diego Marriot Hotel and Marina, 333 West Harbor Drive, San Diego, Calif., September 23-26. Online registration for the Fall Board of Directors Meeting is now open.
Committee meetings will begin on Wednesday, September 24 and the Board of Directors Meeting will take place on Friday, September 26. No Meetings are presently scheduled for September 27 or 28.
View the Fall Board Leadership Schedule .
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Fall 2008 Construction Forecast Conference
National Housing Center, Washington, D.C.; local locations via Webcast.
Attend the Fall 2008 Construction Forecast Conference, featuring multifamily Industry Analyst, Ron Witten, on October 22, 2008. In a volatile economy, good information is the most important currency. You can hear the country’s most respected economists give up-to-the-minute forecasts on the national economy, regional economies, the mortgage market, construction finance, and the multifamily market. Many local Builders’ Associations are hosting webcast viewings. Register and view more conference information on this page.
The Sunbelt Builders Show has become the Southwest region's largest building industry trade show. Nearly 20% of all Americans who moved in the last few years relocated to Texas – most of them to the Dallas/Fort Worth area. Produced by the Texas Association of Builders (TAB) and the National Association of Home Builders (NAHB), Sunbelt offers you a positive business climate in which to learn, network and have fun at the show named one of the 2006 "Fastest 50" by Trade Show Week Magazine. Whether you’re marketing products or building and remodeling, this is your opportunity to meet and network with the nations top housing professionals.
For more information, e-mail Lawrence McFadden or contact him at 800-368-5242 x8550.
Resources: Housing Tax Credit Resources
Check Out the Resources Available to Help You Promote the Tax Credit!
The new tax credit will help provide an enormous boost to the housing industry, so it is critical to get the word out to consumers right away.You have two great resources available to get you started:
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The new consumer-focused Web site, www.federalhousingtaxcredit.com. Share this link with potential buyers to provide a helpful guide on the most frequently asked questions.
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For more information about this item, please e-mail Brooke Fishel or call her at 800-368-5242 x8061.
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