BIA-Hawaii Board Member, Anthony Borge, elected to Small Business Regulatory Review Board

DBEDT Press Release

HONOLULU—The Small Business Regulatory Review Board (SBRRB) has announced it officers for 2013-2014:

• Chu Lan Shubert-Kwock, Chair (Oahu)
• Anthony Borge, Vice Chair (Oahu)
• Leslie Mullens, Second Vice Chair (Maui)

Additional members are Barbara Bennett (Kauai), Kyoko Kimura (Maui), Howard Lum (Oahu), and Craig Takamine (Hawaii).

About the Small Business Regulatory Review Board:

The SBRRB was established on July 1, 1998 with the passage of the Small Business Regulatory Flexibility Act. The responsibilities of the SBRRB include:

1. Commentary on small business impact statements to the rule-drafting departments,
2. Identification and commentary on business impact of existing administrative rules,
3. Recommendations to the Governor’s Office, Departments or the Legislature regarding the need for an administrative rule or legislative change,
4. Recommendations to the Mayors or County Councils regarding County rules, and
5. Review of small business petitions and complaints on business impact.

Statement from NAHB on Clean Water Act Guidance Withdrawal

NAHB Press Release

WASHINGTON, Sept. 18-The National Association of Home Builders (NAHB) Chairman Rick Judson issued the following statement today on the decision to withdraw the proposed Clean Water Act guidance in favor of a proposed rulemaking.

"The National Association of Home Builders applauds the U.S. Army Corps of Engineers' and Environmental Protection Agency's joint decision to withdraw their proposed Clean Water Act guidance and instead propose a rulemaking. We have tried for years to convince the agencies to bring clarity and consistency to questions of Clean Water Act jurisdiction and these efforts have finally borne fruit. We look forward to studying the proposed rule on its release and hope that the promised clarity will not come in the form of a "one size fits all" approach that assumes that a roadside ditch and riparian wetland have the same importance or nexus to navigable waters."

Senators Cite Importance of Maintaining Federal Backstop in Housing Finance Overhaul

NAHB Press Release

WASHINGTON, Sept. 17 -- Sens. Jon Tester (D-Mont.), Bob Corker (R-Tenn.) and Johnny Isakson (R-Ga.) today stressed that ongoing efforts to reform the U.S. tax code and overhaul the housing finance system should take into account the important role that housing plays in the economy.

The senators joined housing industry experts at a forum that examined the future of U.S. housing, "Building a Better Future: America's Housing at a Crossroads," at the Newseum in Washington. The symposium was produced by CQ Roll Call and sponsored by the National Association of Home Builders (NAHB).

Sens. Tester and Corker are among 10 bipartisan cosponsors of the Housing Finance Reform and Taxpayer Protection Act (S. 1217), legislation to reform the nation's housing finance system that includes a federal backstop while limiting taxpayer exposure.

"We worked hard to make sure the 30-year, fixed-rate mortgage remains a viable option," said Tester. "This is something consumers want and expect. I don't think we could have a viable 30-year note in a purely private market."

"We had 10 senators that weighed in and made a difference," said Corker. "I think we have struck a very good balance. The 10 percent capital piece is a very, very important element. Another component that was very important was having a federal backstop."

As the legislative process moves forward, Corker added that he expects to see improvements to S. 1217 and that a housing finance proposal pending in the House will also undergo changes.

"My guess is by the time something passes out of the House it might be a little bit different from where it is and move a little more toward where the Senate bill is," said Corker. "My guess is the House and Senate can pass bills with different characteristics and we can move to conference to get something done for the country."

In terms of tax reform, Sen. Isakson, who is a member of the Senate Finance Committee, said his panel is prepared to move forward if it gets "the opportunity."

Isakson said that every provision in the tax code, including the mortgage interest deduction and Low Income Housing Tax Credit, must be justified in terms of "what they produce for the country. If you can't make a case for your tax provision, it should not be in there."

"I can make a great case for the preservation of the mortgage interest deduction and I can make a phenomenal case for low and moderate income housing tax credits in terms of the payback to the country, but those arguments have to be won and lost when you are truly doing a major reform," said Isakson.

Along with the Senate keynote speakers, housing analysts engaged in a series of in-depth discussions on key issues, with a special emphasis on the outlook for housing demand and production, ongoing efforts toward reform of the housing finance system and the potential impacts of tax reform on homeownership and the economy.

Demographics

The housing downturn led to a "remarkable slowdown in household growth," said Eric Belsky, managing director, Joint Center for Housing Studies at Harvard University. "There is not a strong recovery in household formations, but we are seeing signs of that happening. People don't want to live with their parents into their 30s; they are doing it out of economic necessity."

As the economy continues to mend, pent-up demand for housing should also increase, according to NAHB Chief Economist David Crowe.

"I would say in general the housing market is only half-way back," he said. "Multifamily production is back to 300,000 units per year, which is nearly back to normal."

While the single-family side continues to gradually bounce back, Crowe said that several challenges remain.

"Credit for buyers and builders remains difficult, and there is a lack of buildable lots," he said.

Looking ahead, the outlook looks bright for homeownership.

"Nineteen out of 20 people say they plan on buying a home somewhere in the future if they are under the age of 45," said Belsky. "You can lock in housing payments with a fixed rate mortgage today or look at higher rents in the future. A lot of people will look at that calculation and say 'I think it is time to buy a home.'"

Columbia Business School Professor Christopher Mayer also noted that homeownership is not just an American dream but a global dream.

"When you look at developing countries, people try to buy a home," said Mayer. "It is economic security."

Housing Finance

Panelists addressing the issue of housing finance were in general agreement that the private sector needs to play a greater role in mortgage financing but that maintaining some level of federal support is essential to ensure stability and liquidity in the mortgage markets.

A dissenting view on this latter point came from Peter Wallison of the American Enterprise Institute, who said that lowering the conforming loan limits of government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac over time will allow the private sector to come in and pick up that business.

"If you simply made those changes and authorized the withdrawal of the GSEs, you would find we would gradually move to a completely private system, which is where I think we should be going," said Wallison.

This response drew a sharp rebuttal from other panelists.

"Private capital by itself will not secure a safe market and most importantly, private capital during a down market is least likely to be there," said Michael Calhoun, president of the Center for Responsible Lending.

"Mike is making a real important point that credit will dry up in the housing finance market when times get tough," added Georgetown University Law Professor Adam Levitan.

"There is a government, taxpayer supported entity that stands up," said Michael Stegman, counselor to the Secretary of the Treasury for Housing Finance Policy. "We know how much more serious the [housing and economic] crisis would have been without the FHA stepping up."

Tax Reform

On the topic of tax reform, a third panel of housing experts were in general agreement that the mortgage interest deduction plays a key role in shaping housing demand, while differing in their evaluation of current policy.

"The nonpartisan Tax Foundation found that if we repealed the mortgage interest deduction and lowered marginal tax rates then GDP would decline by $100 billion annually," said NAHB economist Robert Dietz.

Dietz also said that repealing the deduction would case home values to fall. "Considering it only takes a 6 percent drop in home values to wipe out $1 trillion in household wealth, the economic consequences could be significant."

Noting the importance of the mortgage interest deduction to younger households, who are paying greater amounts of interest in the early years of a mortgage, Dietz warned that repeal of the deduction would lead the homeownership rate to fall and the average age of a first-time home buyer to rise. This delay could in turn affect family formation, wealth accumulation and other economic and demographic outcomes.

Anthony Randazzo, director of economic research at the Reason Foundation, said he opposes the mortgage interest deduction and believes that tax policy should not be set to achieve social purposes.

"Do we want to support middle class or low-income home owners? Then let's just provide an explicit subsidy to people we want to, and then find a middle ground," he said.

Dr. John Weicher, a director of the Hudson Institute's Center for Housing and Financial Markets, rejected the idea that the mortgage interest deduction is a tax distortion.

"Keep in mind if you are a home owner you have an asset and consumption," he said. "You are a landlord renting to yourself. It is silly to think of this as simply a consumption when it is the biggest investment that nearly anyone is going to make."

Gladys Marrone, BIA Goverment Relations Director appointed to C&C of Honolulu's Transportation Commission

On Wednesday, September 11, 2013, BIA-Hawaii's Government Relations Director, Gladys Marrone, was sworn in to the City & County of Honolulu's Transportation Commission. As one of Mayor Caldwell's appointees, she will serve for a term ending June 30, 2015.

The Transportation Commission is a seven-member commission which evaluates, reviews, and makes recommendations on matters pertaining to the Department of Transportation Services.

NAHB Forum Brings Together Lawmakers and Industry Experts on Top Housing Issues

NAHB Press Release

Participants are Invited to Join in Person or via Live Webcast

WHAT: On Sept. 17, 2013, the National Association of Home Builders (NAHB) is sponsoring Building a Better Future: America's Housing at a Crossroads, a series of in-depth discussions at the Newseum in Washington, D.C.

This free event, hosted by CQ Roll Call, will gather members of Congress, their staff, industry and association leaders and other key stakeholders together to examine the future of the housing market.

Topics that will be covered include:

• Demographics: The Outlook for Housing Demand and Production
• Financing Housing: GSE Reform and Sensible Mortgage Lending
• Tax Reform: Potential Effects on Homeownership and the Economy

Breakfast and lunch will be served to all attendees.

WHO: Keynote speakers include U.S. Senators Jon Tester (D-Mont.), Bob Corker (R-Tenn.) and Johnny Isakson (R-Ga.). Panel sessions feature industry experts from NAHB, Harvard University, the Center for Responsible Lending, the U.S. Department of the Treasury and more.

WHEN: Tuesday, Sept. 17 from 8:00 a.m. to 2:00 p.m.

WHERE: The Newseum- 555 Pennsylvania Ave NW, Washington, D.C., 20001

REGISTER: To see the full agenda and to register to attend the event in person, go to https://cqrcbuildingfuture.eventbrite.com

To register for the live webcast, go to: http://nsp.performedia.com/cqrollcall/nahb13/welcome

For press registration, please contact Liz Thompson at ethompson@nahb.org.

Help Ensure Better Building Codes

Beginning in September, NAHB will send a series of emails to all Builder members that detail some important proposed changes in the next current cycle of building codes as International Code Council (ICC) officials prepare for the Final Action Hearings in Atlantic City, N.J. Oct. 2-10. These hearings will determine the final outcome of all 2,065 proposed code changes to the International Residential Code, International Energy Conservation Code, International Fire Code and others.

NAHB has already developed the 2015 ICC Code Development Action Kit – available to logged-in members and HBA staff.

Why the push? Many of the code change proposals, if approved, will drive the cost of building even higher with minimal corresponding benefit. Paybacks for some of the proposed “improvements” may never be reached during the average home owner’s occupancy – and others are just a way to codify the purchase of a particular product or brand. On the other hand, there are also proposals, such as those submitted by NAHB, which do need approval to lower upfront construction costs while still maintaining occupant safety and welfare.

NAHB is calling on all builders to reach out to their local code officials attending the hearings so they vote and testify in support of NAHB’s positions on the most critical code change proposals. NAHB is calling on EOs, as well, to reinforce this message to their members, and will provide templates to make the job easier.

Watch your email after the Labor Day holiday – and help NAHB help our members promote sensible building codes. For additional information, contact Neil Burning at 800-368-5242 x8564.

Setting the Record Straight on the Mortgage Interest Deduction

NAHB Press Release

WASHINGTON, July 25--As the Senate examines existing tax policies as part of its "blank slate" approach to tax reform, and as the House Ways and Means Committee continues its review of the tax code, it is appropriate to keep in mind the importance of the mortgage interest deduction (MID) as a middle-class tax provision that makes it possible for many families to achieve homeownership. It is also useful to review some of the claims against the MID to determine if those claims are valid. Economists at the National Association of Home Builders (NAHB) have analyzed data from the IRS and the Census Bureau, as well as estimates from other sources, to assess the validity of these claims.

Claim #1: The wealthy get most of the benefit from the mortgage interest deduction.

Fact: The majority of the tax benefits from the MID go to middle-class households. Data from the Congressional Joint Committee on Taxation shows that 86 percent of households who benefit from the mortgage interest deduction have incomes of less than $200,000. It is also useful to keep in mind that the majority of home owning households are married couples, so the household income measure will often include two incomes.

Claim #2: Repealing the mortgage interest deduction would not damage the economy or individual households.

Fact: Almost all studies examining the elimination of the mortgage interest deduction find that it would reduce demand for housing by raising taxes on prospective home buyers. This reduction in housing demand would also lower home values for existing home owners who would experience a significant loss in wealth.

A 1 percent decline in home prices would result in a loss of $185 billion to American households. Just a 6 percent decline would eliminate $1 trillion in household net worth. If repealing the deduction lowered prices by 10 percent or more, Americans would lose trillions of dollars in household net worth. If home values fall, then more families will find themselves under water, in default and in foreclosure. Eliminating the mortgage interest deduction would reduce the financial resources families can draw on for education, entrepreneurship and retirement. And if home values fall, then state and local tax revenues fall, making it harder to fund schools, infrastructure, public safety and other important government functions. Repealing the MID would have serious economic consequences.

Claim #3: Only a small percentage of home owners claim the mortgage interest deduction.

Fact: The mortgage interest deduction is broadly claimed. Seventy percent of home owners with a mortgage claim the MID in a given year, and almost all home owners benefit from the deduction at some point during their homeownership lifecycle.

The argument that only an estimated "quarter of taxpayers" claim the deduction is misleading because it ignores the lifecycle element of homeownership. Of the two-thirds of households who are home owners, one-third own free-and-clear with no mortgage. And of those with a mortgage who claim the standard deduction in lieu of the MID, many are in the final years of a mortgage and are paying small amounts of interest and greater amounts of principal. In the early years of their mortgage when much greater amounts went to interest, those home owners very likely claimed the mortgage interest deduction.

Claim #4: Repealing the mortgage interest deduction would make the tax code more progressive.

Fact: A progressive tax system is one in which taxpayers with lower incomes pay a smaller share of their earnings in taxes than higher income households. Repealing the mortgage interest deduction would result in larger tax hikes - as a share of household income - for the middle class. For example, for households with less than $200,000 in adjusted gross income (AGI), the typical mortgage interest deduction is worth 1.76 percent of that family's AGI. For taxpayers reporting more than $200,000 in income, the benefit falls to 1.5 percent of AGI. Thus, in the event of repeal, middle-class home owners face a larger tax hike as a share of their income, making the tax system less progressive.

Claim #5: The mortgage interest deduction incentivizes buyers to purchase a larger home.

Fact: While the mortgage interest deduction is sometimes connected with larger homes, evidence shows that it is more often the case that the tax benefit reflects family size and underlying housing demand. Larger families require a larger home, which in turn means a greater amount of mortgage interest paid and a larger tax benefit. And NAHB analysis of IRS data confirms this. Taxpayers with two personal exemptions (a measure of family size) who claimed the MID had an average tax benefit of $1,500. Taxpayers with four personal exemptions had an average benefit of approximately $1,950. In fact, the benefit increased correspondingly from one dependent to five-plus personal exemptions, which is consistent with the notion that larger families require larger homes.


Claim #6: Renters do not support the mortgage interest deduction.

Fact: Public opinion polling has generally found the MID to be popular with renters, most of whom hope to become home owners. Given that recent home buyers receive the greatest tax benefits from the deduction, such renters would have much to lose in case of repeal. A 2012 poll found that a majority of renters were opposed to eliminating the mortgage interest deduction.

Claim #7: Because mortgages on second homes also qualify for the mortgage interest deduction, taxpayers are subsidizing vacation homes for the wealthy.

Fact: The rules relating to second homes are complicated, and often apply to situations that do not involve a vacation home. The rule allows owners who sell their home and buy another - those who own more than one primary residence in a tax year - to claim the MID for both homes on their annual tax return. The rules also allow home owners who are building a new home to claim construction loan interest as a deduction.

And the rules support investment in seasonal residences that provide an economic foundation for many parts of the country. In fact, 49 states in the U.S. have at least one county where more than 10 percent of the housing stock fits the tax definition of a second home. But we are not talking about million-dollar homes on the beach, which are usually paid for in cash or claimed as rental property. According to an analysis of the Consumer Expenditure Survey, the average income of a household with a mortgage on a second home is $71,344.

Claim #8: While the mortgage interest deduction supports homeownership, federal policy neglects renters.

Fact: Housing policy support, in dollar terms, is roughly proportional to the total population living in renter- and owner-occupied homes. For example, the report of the Housing Commission of the Bipartisan Policy Center, which looked at all of the tax and spending programs for rentership and homeownership, found that about one-third of housing policy spending is attributable to rental housing, which is equal to the share of the population living in that form of housing. Such analysis is important because it shines a spotlight on important housing programs for affordable rental housing, including the Low-Income Housing Tax Credit (LIHTC).

Claim #9: Since not all home owners itemize, a credit would be better for the market.

Fact: Identifying winners and losers from moving from an itemized deduction to a credit depends on a number of factors, most importantly the tax credit rate. For example, the Simpson-Bowles report recommended a 12 percent tax credit, meaning a tax benefit of 12 cents for every dollar of qualified mortgage interest paid. A revenue-neutral tax credit would be approximately 20 percent. Thus, such a low rate as 12 percent would represent a significant tax hike for home owners. Moreover, it is important to remember that under most MID tax credit proposals, the property tax deduction (worth on average about one-third of the value of the MID) would cease to exist, further increasing the tax burden on home owners.

Claim #10: There is too much policy support for housing.

Fact: At the federal level, much of the focus on housing tax policy is centered on important and long-standing policies like the MID and the LIHTC, but this focus ignores the fact that home owners pay property taxes that are not collected on other forms of investment. For example, owners of owner-occupied and rental housing pay approximately $300 billion a year in property taxes to local and state governments. Such tax burdens should not be ignored in federal tax debates when considering the overall effective tax rate on housing.

NAHB Seeks Changes to the PATH Act to Ensure a Healthy Housing Finance System

NAHB Press Release

WASHINGTON, July 18 - The National Association of Home Builders (NAHB) told Congress today that it will work with lawmakers to make changes to the Protecting American Taxpayers and Homeowners (PATH) Act legislative proposal to ensure that it provides the federal support necessary to maintain a strong and liquid housing finance system.

Testifying before the House Financial Services Committee, NAHB CEO Jerry Howard urged the committee to modify the PATH Act to make sure that the federal government continues to provide a backstop for a reliable and adequate flow of affordable housing credit in all economic and financial conditions.

"NAHB believes federal support is particularly important to ensure that 30-year, fixed-rate mortgages, the bedrock of the nation's housing finance system since the 1930s, remain available at reasonable interest rates and terms," said Howard. "As currently drafted, the PATH Act does not provide the federal support necessary to ensure a strong and liquid housing finance system, and we urge the committee to make the necessary changes."

There are some positive elements in the PATH Act, and NAHB agrees that private capital must be the dominant source of mortgage credit, Howard said. However, ensuring the safety and stability of the housing finance system cannot be left entirely to the private sector.

"The historical record clearly shows that the private sector is not capable of providing a consistent and adequate supply of housing credit without a federal backstop," he said.

NAHB has recommended to the committee that Fannie Mae and Freddie Mac be gradually phased into a private sector oriented system, where the federal government's role is explicit but its exposure is limited. Federal support would be limited to catastrophic situations where carefully calibrated levels of private capital and insurance reserves would be depleted before any public funds were employed to shore up the mortgage market.

NAHB also urged House lawmakers to modify the sections of the bill outlining changes to the Federal Housing Administration (FHA).

"The PATH Act would drastically diminish FHA's vital liquidity mission," said Howard. "By simultaneously leaving all federal support for housing to FHA, and then by greatly reducing the overall scope and reach of FHA's programs, the
PATH Act would greatly limit homeownership and rental housing opportunities for many financially responsible and qualified Americans."

Because there is currently a great deal of uncertainty among consumers and home builders due to the unresolved debate on reforming the housing finance system and the government sponsored enterprises, Howard urged the committee to move forward in a careful, prudent manner to provide needed assurance for the industry and consumers.

"At a time when housing is just starting to get back on its feet and provide job and economic growth, we don't want to do anything that would reverse this positive momentum," he said. "It's definitely important that Congress be mindful of housing's important role in the economy going forward."

"NAHB looks forward to working with lawmakers to create a sustainable housing finance system that will ensure stability and liquidity in the financial system that supports homeownership and rental housing," Howard added.

Bill Would Ease Regulatory Burdens on Small Businesses, Builders Tell Congress

NAHB Press Release

WASHINGTON, June 28 - The National Association of Home Builders (NAHB) today urged Congress to support bipartisan legislation introduced by Reps. Spencer Bachus (R-Ala.), John Barrow (D-Ga.), Tom Graves (R-Ga.), and Jim Matheson (D-Utah) that would ease regulatory burdens on small businesses.

Testifying on behalf of NAHB before the House Judiciary Subcommittee on Regulatory Reform, Commercial and Antitrust Law, Kansas builder Carl Harris said that the Regulatory Flexibility Improvements Act of 2013 (H.R. 2542) is critical to provide regulatory relief to small businesses burdened my onerous and excessive regulations.

"As a small businessman operating in a highly regulated industry, I know how difficult and costly it can be to comply with scores of government regulations that apply to my day-to-day work," said Harris. "In fact, in my industry, the sum total of regulations imposed by government at all levels account for 25 percent of the final price of a new single-family home. This is particularly important in an industry where margins are so thin and consumer sensitivity to price fluctuations is so acute."

H.R. 2542 requires federal agencies to identify and reduce the costs of regulations on small businesses when determining the economic benefits of a proposed rule. It also gives small businesses more opportunities to be heard as regulations are written.

Though the Regulatory Flexibility Act already stipulates that federal agencies must consider the effect of their actions on small businesses, Harris noted that too often they circumvent the intent and the letter of a law that is intended to make the regulatory process more cost effective and less burdensome for small businesses.

"To improve federal compliance with the Regulatory Flexibility Act, assure small businesses have a voice in the regulatory process, limit unnecessary regulations and spur job growth, I urge Congress to move quickly on this legislation," said Harris.

Bill Signing Ceremony for S.B. 1077, Act 176, Owner-Builder Exemption

On June 25, 2013, Governor Abercrombie signed into law S.B. 1077, which sets forth specific responsibilities and protections for owner-builders. This exemption to Chapter 444 was established, and intended, for legitimate circumstances where homeowners had the requisite ability, time, and inclination to save money by performing their own home improvements and construction. However, and unfortunately, this exemption has been abused by unlicensed contractors, resulting in millions of lost tax revenue and leaves licensed contractors at a disadvantage because of the higher costs associated with running a legitimate contracting business. Act 176 benefits our construction industry, the State, and homeowners against unlicensed construction activity.

Governor Abercrombie with BIA Government Relations Committee Members

Governor Abercrombie with Greg Thielen, 2013 BIA President

New Plan Review Fees at DPP

Mayor Caldwell signed Bill 15 into Ordinance 13-16, which would increase certain permit fees at the Department of Planning and Permitting. Of particular concern to BIA members, Ord. 13-16 adds a fee of 20% of the value of the permit as a plan review fee, in addition to the building permit fee. BIA’s government relations committee had worked with DPP Director and Deputy Director, and submitted testimony during the entire process, recommending they consider other options. Unfortunately, despite BIA’s efforts, Bill 15 is now law.

View press release here.

Please see testimony here.

If you have any questions, please contact Gladys Marrone at 629-7509 or gqm@biahawaii.org.

Senate Bill an Important Step Forward in Debate on Housing Finance Reform

NAHB Press Release

WASHINGTON, June 25 - Bipartisan legislation introduced today by Sens. Bob Corker (R-Tenn.) and Mark Warner (D-Va.) is an important first step in moving the dialogue forward on overhauling the government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, and the U.S. housing finance system, according to the National Association of Home Builders (NAHB).

"We applaud Sens. Corker and Warner, along with Sens. Jon Tester (D-Mont.), Mike Johanns (R-Neb.), Heidi Heitkamp (D-N.D.), Dean Heller (R-Nev.), Kay Hagan (D-N.C.) and Jerry Moran (R-Kan.) for crafting comprehensive legislation to reform the mortgage finance system," said NAHB Chairman Rick Judson, a home builder and developer from Charlotte, N.C. "This bill will advance the debate on GSE reform in an earnest manner."

The Housing Finance Reform and Taxpayer Protection Act of 2013 (S. 1217) contains several elements recommended by NAHB to restructure the nation's housing finance system, such as retaining a federal backstop while limiting taxpayer exposure.

A stable and reliable housing finance system is vital to a vibrant housing market and sustainable economic recovery. Currently, Fannie Mae, Freddie Mac and the Federal Housing Administration guarantee or insure more than 90 percent of all home mortgage activity. This is not sustainable or desirable as NAHB believes the private sector must play a greater role.

"As private lenders gradually re-enter the mortgage market, it is essential that the federal government plays a proper role in backing up the nation's housing finance system to ensure liquidity and stability for homeownership and rental housing," said Judson.

"We look forward to participating in the discussions to reform the mortgage finance system as the bill moves forward," he added.

BIA-Hawaii Executive Awarded one of 12 positions for a National Leadership Program

ASAE Selects 12 Association Professionals for 2013–2015 DELP Class

 

ASAE Press Release

WASHINGTON- Twelve scholars have been chosen to join the Diversity Executive Leadership Program (DELP) as the class of 2013–2015. DELP gives individuals from underrepresented segments of the association profession an opportunity to advance into the ranks of leadership in association management by providing networking opportunities, educational programs, and career guidance.

“Congratulations to the new DELP class, a diverse group of talent," said ASAE President and CEO John H. Graham IV, CAE. "This leadership program is a great opportunity to raise the visibility of their contributions within the association community."

Gladys Marrone, BIA Government Relations Director, was awarded one of the 12 positions

DELP is a two-year program which includes a more dynamic learning experience to prepare the scholars for future leadership roles. Although the program is officially two years long, many consider themselves as DELP scholars for life and continue to give back to the new members and the association community.

Graham added, “We also recognize and want to thank the Detroit Metro Convention and Visitors Bureau for their continued support of this important program in helping us fulfill our commitment to developing diverse + inclusive leaders within the association industry,” added Graham.

DELP is exclusively sponsored by the Detroit Metro Convention and Visitors Bureau. DMCVB is also an ASAE strategic partner.

This year’s class includes:

Beau Ballinger
Senior Program Specialist
AARP Foundation

Adrienne Bryant
Member Information and Database Manager
Association of Florida Colleges

JJ Colburn
Executive Director
Texas Association for the Gifted and Talented

Paul K. Farrell, Au.D.
Associate Director, Audiology Professional Practices
American Speech-Language-Hearing Association

Shane H. Feldman, CAE
Executive Director
Registry of Interpreters for the Deaf/National Association of the Deaf

Audra F. Franks, MTA, CMP
Senior Director for Meetings
American Dental Education Association

Tracy King, CFD
Associate Director, Education
American Academy of Neurology

Maunda Land, CMP
Manager, College and University Relations
The Institute of Internal Auditors

Gladys Quinto Marrone, JD
Director, Government Relations
Building Industry Association of Hawaii

Michelle Mills, CAE
Senior Manager, Member Communities
Association Forum of Chicagoland

Nathan Victoria
Director, Member Engagement and Student Initiatives
NASPA–Student Affairs Administration in Higher Ed

Irving Washington, III
Director of Operations
Online News Association

Department of Taxation (Announcement 2013-04) on the Sunset of Act 105

BIA's top legislative priority in the 2013 legislative session was to ensure that Act 105 (2011), which suspended the subcontractors' exemption, sunset as scheduled on June 30, 2013. We are happy to report that Act 105 repeals on June 30, 2013, after which all GE and Use Tax exclusions, exemptions and deductions under it will no longer be suspended. The Department of Taxation has issued an announcement on Act 105.

View Announcement No. 2013-04 here

More Than 750 Builders Discuss Housing Issues in Hill Visits

NAHB Press Release

WASHINGTON, June 5 - More than 750 builders from across the nation converged on Capitol Hill today for the annual National Association of Home Builders (NAHB) Legislative Conference to urge their lawmakers to support policies that will keep the housing recovery moving forward and increase housing opportunities for all Americans.

"We are sending a loud and clear message to members of Congress that a strong housing market is critical to create jobs and boost economic growth," said NAHB Chairman Rick Judson, a home builder and developer from Charlotte, N.C.

In 300 individual meetings with their representatives and senators, builders discussed the following key housing issues:

· Tax reform. To meet the nation's growing need for affordable rental housing and homeownership opportunities, NAHB members urged Congress to maintain its support for vital housing tax incentives, including the mortgage interest deduction. Builders also emphasized that the Low Income Housing Tax Credit is essential to ensure that lower-income families have access to safe, decent and affordable housing.

· Housing finance reform. With Congress preparing to address the future of the nation's housing finance system and Fannie Mae and Freddie Mac, NAHB continued to advocate that any restructuring provides for a reliable and adequate flow of credit for home buyers and that the federal government plays an appropriate role in backing up the housing finance system.

· Immigration reform. NAHB called on Congress to enact comprehensive immigration reform that protects the nation's borders; focuses on the direct employer-employee relationship so that U.S. employers remain accountable only for the identity and work authorization status of their direct employees; and creates an efficient, temporary guest worker program that allows employers to recruit legal immigrant workers when there is a shortage of domestic workers.

· Credit for housing production. Despite the recent upturn in housing, builders in many markets are still unable to obtain construction loans for viable home building projects. NAHB called on lawmakers to support House bill H.R. 1255 sponsored by Reps. Gary Miller (R-Calif.) and Carolyn McCarthy (D-N.Y.) and companion Senate bill S. 1002 introduced by Sens. Robert Menendez (D-N.J.) and Johnny Isakson (R-Ga.) that would help resolve the ongoing credit problems for builders.

Builders Urge Congress to Pursue Pro-Housing Policies to Spur Job and Economic Growth

NAHB Press Release

WASHINGTON, June 4 - New-home production and remodeling contribute billions of dollars to the nation's economy each year, and with the right policies in place housing can serve as a catalyst to boost job and economic growth, the National Association of Home Builders (NAHB) told Congress today.

"How lawmakers and regulators deal with tax reform, home energy codes and the availability of building materials will go a long way to ensure a robust, long-term recovery for housing and the economy," said NAHB Chairman Rick Judson, a home builder and developer from Charlotte, N.C., in testimony before the House Energy and Commerce Committee's Subcommittee on Commerce, Manufacturing and Trade.

NAHB supports the goals of many in Congress to reform the tax code and believes that lawmakers should maintain existing housing tax incentives because homeownership remains the major path to wealth for the middle class.

"Any policy change that makes it harder to buy a home, or delays the purchase of a home until an older age, will have a significant long-term impact on household wealth accumulation and the makeup of the middle class as a whole," said Judson.

"As most home owners benefit from the mortgage interest deduction, and most of that benefit flows to younger families, weakening the deduction and making homeownership less accessible is likely to diminish the financial success of future generations," he added.

NAHB is urging building code officials to reinstate energy-neutral equipment efficiency trade-offs in the performance path of the International Energy Conservation Code to allow builders to more cost-effectively construct energy-efficient homes.

Energy efficiency tax credits such as the Existing Home Retrofit Tax Credit (25C) that provides consumers a tax credit of up to $500 for the purchase of qualifying energy-efficient products and the New Energy Efficient Home Tax Credit (45L) available to builders who construct energy-efficient new homes are important policy tools to provide home owners and builders with incentives to perform energy efficiency upgrades on homes, he added.

Meanwhile, the rising cost of building materials - most notably for framing lumber, oriented strand board and gypsum - are decreasing affordability and preventing builders from meeting the growing demand for new homes.

"Any effort to ease escalating price pressures, help rebuild the supply chain and support a continuing housing recovery is effective economic policy," said Judson.

Labor Shortages Hamper Housing Recovery

Edward Martin, president and CEO of Tilson Home Corp. based in Austin, Texas, and president of the Texas Association of Builders, also participated in the congressional hearing. He told lawmakers that worker shortages in residential construction are impeding the housing recovery.

"My company is experiencing delays due to the lack of qualified framing crews to begin work on the structure of our homes," said Martin. "We are also struggling to find master plumbers and rough-in crews, which run the pipes in the foundation before the concrete is poured. As a result of the shortage of skilled labor, on average, it is taking my company a month longer to build a home."

A recent survey of NAHB members shows that since June 2012, residential construction firms have been reporting an increasing number of shortages in all aspects of the industry - from carpenters, excavators, framers, roofers and plumbers, to bricklayers, HVAC, building maintenance managers and weatherization workers.

Forty-six percent of the builders surveyed experienced delays in completing projects on time, 15 percent had to turn down some projects and 9 percent lost or cancelled sales as a result of recent labor shortages. Fewer homes built will harm the property tax base of local communities, which is vital to fund local schools, police and firefighters.

"With congressional attention shifting to immigration reform, I believe strongly that this debate provides an important opportunity for the country to implement a new market-based visa system that would allow more immigrants to legally enter the construction workforce each year," said Martin. "This would complement our skills training efforts within the nation's borders, and fill the labor gaps needed to meet the nation's housing needs."

Onerous Regulations Harm Remodeling, Job Growth

On the remodeling front, William Shaw, founder of William Shaw and Associates, a residential remodeling, design and build company located in Houston, said the federal government's regulatory process is hampering the ability of remodeling firms to do business and impeding job growth.

"Housing serves as a great example of an industry that would benefit from smarter and more sensible regulation," he said.

Shaw urged lawmakers to support the Lead Exposure Reduction Amendments Act of 2013 (H.R. 2093), bipartisan legislation recently introduced by Rep. Tim Murphy (R-Pa.) and 21 original co-sponsors that would make much-needed improvements to the EPA's Lead: Renovation, Repair and Painting (LRRP) Rule.

The measure would restore the opt-out provision for homes without children or pregnant women; allow remodelers to correct paperwork errors without facing full penalties; provide an exemption for emergency renovations; and make it easier for remodelers to obtain recertification training.

By removing the opt-out provision in July 2010, EPA more than doubled the number of homes subject to the LRRP rule, adding an estimated $336 million per year in compliance costs to the remodeling community without making young children any safer, Shaw said.

For the small contractor, these additional costs have to be passed on to the consumer, which increases the chances that a home owner will likely hire another uncertified contractor to do the work, or worse, do the work themselves, which would actually increase the likelihood of disturbing lead-based paint.

Officials from Kohler Co. and Louisiana-Pacific Corp., major suppliers and manufacturers of kitchen and bath products and building materials, also testified at the hearing. Most of the products used in home construction and remodeling are manufactured in the United States and home buying typically generates a positive economic ripple effect. When a family moves into a new home, they spend $7,400 more than usual on appliances, furnishings and remodeling.

House Lead Paint Bill Would Help Remodelers, Consumers

NAHB Press Release

WASHINGTON, May 22 - Responding to concerns from the National Association of Home Builders (NAHB) and affiliated trade groups, bipartisan legislation to make much-needed improvements to the Environmental Protection Agency's (EPA) Lead: Renovation, Repair and Painting (LRRP) rule was reintroduced in the U.S. House of Representatives today.

The Lead Exposure Reduction Amendments Act of 2013 (H.R. 2093) is identical to legislation introduced in the last Congress. The bill would reinstate the opt-out provision to allow home owners without small children or pregnant women residing in the home to decide whether to require LRRP compliance, allow remodelers to correct paperwork errors without facing full penalties and provide an exemption for emergency renovations. It would also eliminate the requirement that recertification training be "hands on," so that remodelers would no longer have to travel to training facilities out of their region.

The bipartisan bill, companion legislation to S. 484, was introduced in the U.S. House of Representatives by Rep. Tim Murphy (R-Pa.), along with 21 original co-sponsors.

"H.R. 2093 will make common sense improvements to the EPA's lead paint rule for home owners and remodelers who must comply with the regulation's costly work practices and recordkeeping requirements," said NAHB Remodelers Chairman Bill Shaw, GMR, GMB, CGP, a remodeler from Houston. "Most importantly, it will continue to protect pregnant women and small children against lead hazards. I commend the bill's co-sponsors for their commitment to improve this burdensome regulation."

The LRRP rule applies to homes built before 1978 and requires renovator training and certification, adherence to lead-safe work practices and record keeping.

By removing the opt-out provision in July 2010, EPA more than doubled the number of homes subject to the LRRP rule, adding an estimated $336 million per year in compliance costs to the remodeling community - without making young children any safer.

For more information about remodeling, visit www.nahb.org/remodel.

Act 105 to Sunset

Act 105 (2011), which temporarily suspended the exemption for the subcontractors' deduction, will sunset on June 30, 2013! Beginning July 1, 2013, contractors will once again be able to deduct subcontractor expense when calculating GE Tax.

However, until then, it is unclear how the current law will be applied. The Department of Taxation is planning to release a Tax Announcement sometime in June regarding the sunset of Act 105. When it is finalized, it will be posted on their website at www.tax.hawaii.gov.

BIA will also work with DoTax to get the information to circulate to our membership as soon as it's posted.

NAHB Calls on Congress to Establish a Fair and Workable E-Verify System

NAHB Press Release

WASHINGTON, May 16 - As Congress debates comprehensive immigration reform, the National Association of Home Builders (NAHB) today called on lawmakers to establish a fair and workable employer verification system for all businesses.

Participating in a congressional roundtable discussion on the impact of the mandatory E-Verify electronic employment verification system on America's small businesses, NAHB Chairman Rick Judson said that such a system must "be fair and efficient, and not impose significant burdens on employers." The roundtable was held by the Senate Committee on Small Business and Entrepreneurship.

"Congress must also be mindful of the home building industry and its intricate system of general contractors and subcontractors for the system to be workable," said Judson, who is a home builder and developer from Charlotte, N.C.

As Congress moves to advance immigration bills pending in the House and Senate, NAHB said that a fair and workable E-Verify system for all U.S. employers should:

• Maintain current law, holding U.S. employers accountable only for verifying the identity and work authorization status of their direct employees. Congress should not require employers to verify someone else's workers, such as a subcontractor's employees, as this is both unfair and infeasible.
• Maintain present law that forbids employers from knowingly hiring undocumented workers, including subcontracted workers. NAHB fully supports maintaining this "knowing" standard to ensure employers understand their role and obligations under the law.
• Ensure that any compulsory federal E-Verify program contains a robust safe harbor for employers so that those who use the system in good faith cannot be held liable for errors in the E-Verify system by any federal agency, including the U.S. Department of Homeland Security, or by the employer's workers.
• Include a strong pre-emption clause preventing state and local governments from creating their own versions of verification requirements for employers. If employers are going to be required to use the federal E-Verify program, they must be assured that they will not also have to meet other potentially conflicting compliance standards imposed by state and local governments.
• Allow employers to begin the E-Verify process when a worker accepts a position, rather than be required to wait until after the start date. This will provide businesses more lead time to handle tentative non-confirmations for those who are ineligible to work.
• Allow employers to access the E-Verify system via telephone and the Internet so it is more workable for small employers.

In addition to calling for a fair and efficient nationwide E-Verify program, Judson said that NAHB supports comprehensive immigration reform that would protect the nation's borders and create an efficient temporary guest worker program that allows employers to recruit legal immigrant workers when there is a shortage of domestic workers.

Taking it to the Top: How NAHB works to save members money and keep businesses thriving

Serving as the home builder’s voice in Washington is one of the most important actions that NAHB takes to save members money and to keep their businesses thriving.

NAHB lobbyists constantly interact with congressional lawmakers and their staffs on a host of issues including taxes, housing finance, immigration, stormwater, wetlands, OSHA and much more to ensure that the housing industry’s concerns are taken into account whenever Congress and regulators consider actions that will affect housing.

An uninformed decision on just one of these issues could add hundreds or even thousands of dollars to the cost of building a new home or doing a remodeling job. Collectively, the amounts could be much larger, and in more extreme circumstances, a builder could even be forced to look for another line of business.

Very few organizations are afforded the privilege of testifying before Congress, and it is even more of a rarity for a group to appear before lawmakers on multiple occasions.

As an acknowledged authority on housing among the nation’s lawmakers, NAHB has a great deal of clout on Capitol Hill. Already this year, NAHB has appeared before several congressional committees to fight for the housing industry’s interests on critical issues including current housing tax incentives, affordable financing for home buyers, the cost of building materials, and the shortage of residential construction workers.

Last month alone, NAHB testified on behalf of its members on:

• FHA reform. NAHB First Vice Chairman Kevin Kelly testified before Congress April 10 in support of congressional efforts to reform the Federal Housing Administration (FHA), but urged lawmakers to proceed cautiously to avoid any disruptions to the nation’s housing finance system.

• “While there is no doubt that the housing finance system needs to be reformed, the contributions that FHA made during the economic downturn underscore the need for a government backstop for both the primary and secondary mortgage markets,” he told lawmakers. View Kelly’s testimony or see NAHB’s press release.

• Forest bill to boost production of timber on federal lands. Legislation requiring the government to implement active forest management plans would benefit rural communities and boost harvesting of wood on federal lands, NAHB member Justin Wood told Congress on April 11.
• Testifying on behalf of the nation's home builders before the House Natural Resources Subcommittee on Public Lands and Environmental Regulation, Wood, vice president of construction for Fish Construction NW Inc. in Portland, Ore., registered NAHB's support for the "Restoring Healthy Forests for Healthy Communities Act" (H.R. 1526) introduced by House Resources Committee Chairman Doc Hastings (R-Wash.).
• This legislation would encourage increased production on federal timber lands, Wood said, adding that “it will go a long way toward helping rebuild the supply chain and reviving local mills and timber companies, while ensuring the continued recovery of the housing industry."

• Immigration legislation. NAHB Chairman Rick Judson testified before the Senate Judiciary Committee on April 22 about Senate immigration bill S. 744, the Border Security, Economic Opportunity, and Immigration Modernization Act.
• Specifically, he focused on the legislation’s guest worker provisions, and told Congress that they must be improved to address the significant role that foreign workers play in the housing industry and to help alleviate current labor challenges that are hampering the housing and economic recovery. For more details, see Judson’s testimony and NAHB’s press release

• Tax reform. Testifying on behalf of NAHB before the House Ways and Means Committee on April 25, NAHB economist Robert Dietz vigorously defended the importance of vital housing tax incentives such as the Low Income Housing Tax Credit, the mortgage interest deduction and real estate tax deductions as lawmakers consider ways to reform the U.S. tax code.
• Dietz reminded legislators of the important impacts that housing has on the economy and job growth, noted the critical role that the Low Income Housing Tax Credit plays in creating affordable rental housing, and set the record straight on a number of false assumptions regarding the mortgage interest deduction. For these reasons and more, he said, “we urge Congress to be cautious and thoughtful when it comes to housing and tax reform.” For more information, view Dietz’s testimony or see NAHB’s press release.

Amp Up Our Impact: Attend the NAHB Legislative Conference

Just as NAHB speaks out on behalf its members, the association offers members a unique opportunity to take their concerns to the top and meet with their elected officials on Capitol Hill.

NAHB’s annual Legislative Conference, which will be held on Wednesday, June 5, will give members an unparalleled opportunity to lobby lawmakers to protect their business and industry, establish lasting relationships with their federal officials, and do their part to ensure that NAHB’s issues are heard by key Washington policymakers.

Especially in these challenging times, participation by grassroots members can make a huge difference as various interest groups compete to be heard in Washington.

A strong builder turnout on June 5 will send a powerful message to members of Congress that housing must remain a top national priority.

For more information and to register, visit nahb.org/legcon; or email Nick Gentile at NAHB, or call him at 800-368-5242 x8542.