Your HBA as working for you in Washingting (here is how)

by | Sep 25, 2017 | Uncategorized

(September 20, 2017) Ever wonder what your Home Builders Association is doing for you in Washington DC and around the country?  Below is a report of the issues on which we are engaged:

1. Canadian Softwood Lumber

  • The U.S. Department of Commerce imposed a 20% countervailing duty on Canadian lumber imports in April, and added 7% antidumping duties in June. 
  • In late August, Commerce announced a delay in the final duties to Nov. 18. This will allow more time to negotiate a settlement. Collection of countervailing duties is suspended for now, but antidumping duties will continue to be collected. 
  • NAHB is meeting with representatives with the Trump Administration and Congress as well as Canadian officials to address home builder concerns regarding price and availability of lumber. 
  • These meetings are especially important because U.S. consumers cannot participate in trade disputes, although NAHB provided witness testimony during the International Trade Commission hearing on Sept. 12. 
  • Generally, lumber prices have increased, but that may be partly due to wildfires in the Western U.S. and Canada. 
  • NAHB is urging U.S. lumber producers to increase production for domestic consumption, and working to identify alternate foreign sources of dimensional lumber. 

2. Disaster Response

  • In the aftermath of two devastating hurricanes, NAHB is working closely with state and local home builder associations in those areas to help them meet the needs of members affected by the storms. 
  • We sent out an all-member email with information on how to donate to the recovery effort. 
  • NAHB issued statements on hurricane-related advocacy. Our leadership conducted media interviews on flood-related topics, including the need for the National Flood Insurance Program (NFIP) reauthorization, building codes, rebuilding efforts and labor shortages. 
  • We updated our online Disaster Recovery toolkit with new media talking points and safety information for contractors. 
  • We added resources on hiring contractors and places to donate on our consumer Web page. 
  • We are creating resources on business continuity; hiring reputable contractors; and best practices for flood damage repair work. 
  • We will continue to reach out to the affected communities to see how to help in the rebuilding efforts. 
  • With respect to resiliency, our Resiliency Working Group issued its final report and recommendations in July. Many of the recommendations are related to disaster preparedness, resiliency, recovery and communications. 
  • The hurricanes have illustrated the importance of disaster response and planning for rebuilding, and the Resiliency Working Group will now help ensure NAHB can be a resource and problem solver after a natural disaster. 

3. Electronic Recordkeeping

  • The Occupational Safety and Health Administration’s 2015 electronic reporting rule requires certain employers to electronically submit injury and illness data that they are mandated to keep under existing recordkeeping regulations. 
  • The rule also contains anti-discrimination prohibitions to protect workers who notify an employer of a workrelated injury or illness. 
  • NAHB has concerns about several elements of the rule, including the requirements for employers to submit records electronically to OSHA that would become publicly available.  In January, NAHB and other stakeholders filed a legal challenge. 
  • On May 5, NAHB and other organizations submitted a petition to the Department of Labor (DOL) seeking a stay of implementation and enforcement of the rule, and requested OSHA re-open the rulemaking. 
  • In June, OSHA announced it was extending the filing deadline for employers to submit electronic records to December, which would give OSHA more time to review the rule. 

4. Federal Flood Risk Management Standard

  • In response to the charge led by NAHB and as part of President Trump’s Executive Order to expedite federal approval for infrastructure projects, the Administration revoked Executive Order 13690 and the Federal Flood Risk Management Standard (FFRMS). 
  • Our advocacy efforts included participating in federal listening sessions and meetings; submitting comment letters to federal agencies; and requesting that President Trump revoke it. 
  • This standard would have dramatically expanded regulated floodplain areas. 
  • However, in response to the hurricanes, the Trump Administration may establish its own flood standard. 
  • If the Administration chooses to do so, NAHB will work with the White House to develop an effective standard that does not place undue regulatory burdens on residential construction projects. 

5. Immigration

  • The H-2B Temporary Non-Agricultural Worker program allows employers who cannot find local labor for short-term or seasonal jobs to fill those positions with temporary foreign workers. 
  • There is an annual cap of 66,000 on H-2B visas issued in a fiscal year, but that cap excluded workers who had participated in the program within three years. 
  • That “returning worker exemption” expired in September 2016 and has not been renewed by Congress. 
  • In May, Congress approved a spending package for the remainder of FY 2017 that included language allowing the Department of Homeland Security (DHS) to raise the statutory cap for 2017 to allow additional visas. 
  • In July, DHS announced it would make 15,000 more visas available, but only to employers who could demonstrate that their business would suffer “irreparable harm” without H-2B workers. 
  • The next round of H-2B visas will become available on Oct. 1. NAHB hosted a free webinar to help employers learn if they qualify to apply for H-2B workers and how they can become certified employers under the program. 
  • With Congress and the Administration focused on immigration enforcement, the prospect of creating a new guest worker program to benefit builders and specialty trades is highly unlikely. 
  • NAHB continues to advocate for restoration of the returning worker exemption while looking for opportunities to expand and reform the H-2B program.

6. Low-Income Housing Tax Credit (LIHTC)

  • On Aug. 1, NAHB Chairman Granger MacDonald testified before the Senate Finance Committee on “America’s Affordable Housing Crisis.” The hearing focused on the LIHTC. 
  • Chairman MacDonald also discussed how lots and labor shortages, building material price increases and regulations affect housing affordability.

7. National Flood Insurance Program (NFIP)

  • The NFIP was extended until Dec. 8 as part of a broader legislative package. 
  • During NAHB’s Leg Con in June, builders spoke to their congressional delegations about provisions in the House Financial Services Committee’s flood insurance bill that negatively targeted new construction and grandfathered properties. 
  • NAHB was able to convince the committee’s leadership to remove those provisions. 
  • After Hurricanes Harvey and Irma, discussions about changing the program were put on hold as policymakers ensured home owners and communities had short-term certainty and financial aid. 
  • NAHB will work with Congress on long-term legislation that ensures an affordable, available, predictable and financially stable NFIP.

8. Regulatory Reform

  • President Trump has made regulatory reform one of his top priorities, and has asked each agency to evaluate existing regulations and identify ones that should be repealed, replaced or modified. 
  • We have submitted recommendations to the Environmental Protection Agency (EPA), Department of Housing and Urban Development (HUD), Federal Emergency Management Agency (FEMA), National Marine Fisheries Service (NMFS), Fish and Wildlife Services (FWS), Department of Justice (DOJ) and Department of Energy (DOE), and will soon submit feedback to the Army Corps of Engineers. 
  • NAHB will provide suggestions to DOL, OSHA and others once their notices are published. 
  • We will review the 2017 Fall Regulatory Plan and Agenda upon its release and determine if our suggestions were incorporated. 
  • The Small Business Administration (SBA) Office of Advocacy is also collecting input on regulatory reform through a series of nationwide Regulatory Roundtables; NAHB has had good representation at all roundtables to date. 
  • As part of the Cleveland roundtable, NAHB member George Davis met with SBA officials at one of his construction developments. 
  • NAHB will continue its outreach to HBAs and members as additional roundtables are announced. 
  • On August 28, NAHB testified before the SBA’s Regulatory Fairness Board about the enforcement activities of federal agencies, particularly EPA and OSHA.

9. Overtime Rule

  • Under a new rule that was set to go into effect Dec. 1, 2016, the Obama Administration doubled the annual salary level used to determine whether an employee qualifies for the professional, administrative and executive exemption to overtime eligibility from $23,660 to $47,476. 
  • Under the new rule, the salary threshold would also be automatically adjusted every three years. 
  • NAHB and many other industry groups challenged the rule in federal court. 
  • We contended that DOL went beyond its authority under the Fair Labor Standards Act to allow the salary limit to automatically be re-set every year. The Administrative Procedures Act requires these updates be made through regular notice and comment periods. 
  • In a victory for NAHB, a federal judge in Texas issued a preliminary injunction that temporarily barred the implementation of the rule. 
  • On Aug. 31, the Texas federal court held the rule was invalid and the three-year automatic increase DOL included was similarly unlawful. 
  • DOL’s appeal of the preliminary injunction is now moot and likely to be dismissed.

10. Smart Market Report

  • Preliminary findings from them Green Residential Smart Market Report show that green building activity should increase over the next few years. Approximately 60 percent of surveyed builders expect it to be a significant share of their overall activity by 2022. This is nearly double from 2014, when only 32 percent of firms reported that level of green building. 
  • Single- and multifamily home builders agree that energy efficiency and healthier indoor environments are key factors in building a green home, and have prioritized these elements in the construction process. 
  • The Smart Market report found that ENERGY STAR is more popular in the single-family market while LEED and the National Green Building Standard (NGBS) are more popular with multifamily builders. 
  • The Green Residential Smart Market Report is a biannual report released by NAHB and Dodge Data and Analytics (formerly McGraw Hill). The report reviews the history and future of green home construction in the single-family, multifamily and remodeling sectors.

11. Stormwater

  • NAHB launched an online toolkit in August to help HBAs advocate for programs that provide a clear path to compliance, reduce redundancy and meet water quality goals. 
  • The toolkit provides simple checklists that compare pros and cons of different regulatory approaches based on climate, geography, and local land use patterns. This data will help our members in conversations with state regulators. 
  • As part of the toolkit launch, NAHB released A Developer’s Guide to Post-Construction Stormwater Regulation. This report provides a state-by-state breakdown on the top permitting issues affecting builders.

12. Tax Reform

  • A team of congressional leaders and Administration officials known as the “Gang of Six” is developing a structure for tax reform, while President Trump is trying to garner nationwide support on the issue. 
  • House Speaker Paul Ryan intends to move tax reform this fall. 
  • Before Congress can address tax reform, it must pass a budget resolution to set up the procedural process known as reconciliation. This will allow tax reform to pass the Senate with only 50 votes. 
  • However, there is growing resistance in the House to passing a budget resolution before members see the Gang of 6’s tax framework. To use the reconciliation process, the House and Senate must pass identical budget resolutions, which will be challenging.

13. Waters of the U.S. (WOTUS)

  • On Oct. 11, the U.S. Supreme Court will hear oral arguments on whether the 2015 WOTUS rule should be litigated in federal trial court or the appellate court. 
  • NAHB has argued that challenges to the WOTUS rule must be first heard at the trial court. 
  • We need this clarity so we do not have to file two lawsuits when we challenge an EPA Clean Water Act regulation. 
  • Meanwhile, the EPA plans to use a two-step process to develop a new WOTUS definition. 
  • In the first step, the EPA has proposed to withdraw the 2015 WOTUS Rule and revert to the status quo. We expect the agency to finalize the withdrawal by early 2018. 
  • The EPA also plans to develop a new WOTUS rule, and will soon take comments on the proposal. 
  • NAHB is taking advantage of its unprecedented access to EPA Administrator Scott Pruitt, and is working with the agency on a new rule that is clear and limits jurisdiction of the Clean Water Act consistent with congressional intent. 
  • In August, NAHB and the Dallas Builders Association hosted a meeting with Administrator Pruitt in Dallas to voice concerns and offer insight about the new rule. 
  • NAHB and the Colorado Association of Home Builders are planning a similar meeting with Administrator Pruitt in Colorado Springs in October. 
  • In late October, NAHB will provide recommendations on a revised WOTUS definition at a business-focused in-person listening session at EPA headquarters. 

For more information about these or other Federal government affairs issues, contact Michael Dey (mdey@hbaofgreenville.com).

Compliance with regulations account for nearly 25 percent of the cost of a new home

Compliance with regulations account for nearly 25 percent of the cost of a new home

by | Jul 20, 2017 | Uncategorized


By Bob Barreto, President, Home Builders Association of Greenville
      President, GBS Building Supply


On average, regulations imposed by all levels of government account for 24.3 percent of the sales price of a new single-family home, according to a 2016 study by the National Association of Home Builders (NAHB).
Breaking down the total regulatory costs further, the study revealed that three fifths of compliance costs, or 14.6 percent of the final house price, is due to a higher price for a finished lot resulting from regulations imposed during the lot’s development. The other two fifths, or 9.7 percent of the house price, is the result of costs incurred by the builder when building the home after purchasing the finished lot.
In the Greater Greenville area, the study indicates that a new home is $67,424 more expensive as a result of the cost of complying with regulations. 
These regulations come from many sources.  They include new land-use controls that reduce the potential density yield of a parcel of land, which increases the cost of the finished lot.  Other regulations include significant changes to the building code that has added thousands of dollars to the price of a new home.  Labor-law changes also have had an impact.  As well as significant increases in building permit fees, development compliance fees, and new sewer account fees.  But the greatest increase in the cost of compliance has come in the form of new and increased environmental regulations to control erosion and stormwater runoff during development and construction.
When the 2016 study is compared to a previous study prepared in 2011, NAHB found that the cost of compliance with regulations increased by 29.8 percent in the five years between the two studies.  That means the cost of constructing a new home in the Greater Greenville area increased by more than $20,000, in just five years, to comply with new rules imposed by government.  Meanwhile, personal disposable income in the U.S. increased by just 14.4 percent during that same time period, meaning that the average cost of regulation embodied in a new home is rising more than twice as fast as the average American’s ability to pay for it.
According to another study by the National Association of Home Builders, 521 families in the Greater Greenville are priced out of Homeownership by a $1,000 increase in the cost of purchasing a new home.  If you do the math, and I have, that means the increase in the last five years in the cost of compliance with regulations has priced out of homeownership more than 10,000 families in our community.
There has been considerable discussion and debate about affordable housing in our community.  Studies by the City of Greenville and Greenville County are providing evidence of the problem.  Many want to blame home builders and land developers for the problem.  But a reading of the studies by the National Association of Home Builders demonstrates that at least part of the problem lies with well-meaning regulations that fail to take into account the impact on a family’s ability to afford a home.
Clearly, a portion of the solution to our community’s housing affordability problem lies in a thorough review of the cost of complying with our own regulations.
NAHB Helps Clarify EPA’s New Rule

NAHB Helps Clarify EPA’s New Rule

by | Nov 6, 2015 | Uncategorized

Having trouble understanding the EPA’s new rule and how it will affect you? NAHB clarifies with infographics and projections below.
The Environmental Protection Agency (EPA) final rule revising the National Ambient Air Quality Standard for ozone has been published in the Federal Register.
As previously reported by NAHBNow, EPA revised the standard to 70 parts per billion (ppb) from the 75 ppb set in 2008.
Based on the agency’s 2012-2014 air quality monitoring data, there are at least 241 counties where current ozone levels exceed the newly revised 2015 standard (below).

map
By comparison, 225 counties were designated as non-attainment under the 2008 standards (below).
map

The final standard is likely to affect 14 of the top 20 housing markets, expanding its impact on new housing. More than 140 local HBAs are likely to be impacted – some for the first time, and some seeing more members affected. [See infographic for more details.]

Preliminary data offers some indication of what the impact will be: EPA will likely take final action based on updated air quality monitoring data. In addition, the counties without valid air quality monitors may be designated as nonattainment based on the status of neighboring counties’ air quality, even if those counties are in another state.

EPA projects that states will submit designation recommendations by Oct. 1, 2016. EPA will respond by June 1, 2017,indicating whether the agency intends to make any modifications and providing states an opportunity to comment and provide additional information. By Oct.1, 2017, EPA will issues final area designations,which are expected to be based on 2014-2016 air quality data.

While the overall impact of the final rule is mitigated in comparison to the full range of options considered by EPA under the proposal, the full scope of implementation issues may not be known until area designations are made final and state implementation plans are developed: It is at this stage when potential roadblocks to land development and building may be proposed.

By 2020-2021, states must provide their state implementation plans that outline how they will reduce emissions and meet the standard in non-attainment areas. EPA expects the implementation of other federal clean air rules, such as the Cross-State Air Pollution Rule, Mercury and Air Toxics Standards, Tier 3 Vehicle Emissions and Fuels Standards, and the Clean Power Plan, to have a significant impact on reducing ozone-forming pollution in the years ahead the requirements.

Regardless, areas designated non-attainment will be faced with adopting a suite of federal, state and local measures that are needed to demonstrate how the relevant nonattainment area can achieve the standard by the required deadline.

NAHB Helps Soften the Impact of New Flood Risk Standards

by | Oct 16, 2015 | Uncategorized

In an important victory for NAHB and the housing community, the U.S. Army Corps of Engineers will pull in the reins on sweeping new standards that could have had a dramatic impact on home building and development.
NAHB talks with the Corps have produced results that will blunt the impact of the new Federal Flood Risk Management Standard, which greatly expand the 100-year floodplain, placing tighter limits on where homes can be built.
In January, President Obama issued an executive order establishing the new Federal Flood Risk Management Standard expanding the floodplain beyond the 100-year floodplain to either the climate-informed science floodplain,  the 500-year floodplain,  or the 100-year floodplain plus an additional 2 to 3 foot freeboard.
Given the language of the executive order, NAHB was concerned that the new floodplain definition could adversely affect residential housing projects and homes that get HUD funding, require EPA permits and participate in the National Flood Insurance Program (NFIP), making housing more expensive for consumers.
NAHB members and staff spoke in listening sessions, submitted comments and continually pushed federal agencies to limit the applicability of the new standard. These efforts worked.
  • In June, FEMA confirmed that the new standard will not affect the standards or rates of the NFIP or the minimum floodplain management criteria for communities. FEMA will also continue to use the 1% annual chance floodplain as the basis for the Flood Insurance Rate Maps and the overall NFIP.
  • This week, the Army Corps of Engineers released a fact sheet stating that Clean Water Act Section 404 wetland permits will not be subject to the expanded floodplain standard.
  • Also this week, HUD confirmed to NAHB that the standard would not apply to newly constructed homes financed with FHA-insured mortgages. It had already determined that the standard would not apply to existing homes purchased with an FHA-insured mortgage.
However, the standard will apply to multifamily properties using FHA insurance for new construction or substantial rehabilitation. It will also apply to FHA 203(k) rehabilitation loans.
NAHB will continue to meet with the agencies as they update their regulations. We’ll monitor the development of the various documents and participate as needed to ensure our members’ concerns are addressed.
As a member of the HBA of Greenville, part of your dues go towards your NAHB membership so that they can continue to fight for fair regulations on your behalf. 

With the New Year Comes New Reporting Requirements

by | Dec 29, 2014 | Uncategorized

Beginning Jan. 1, the Occupational Safety and Health Administration will require employers to report all work-related fatalities within eight hours and all in-patient hospitalizations, amputations and losses of an eye within 24 hours of being notified of the incident. In the past, employers only reported all workplace fatalities and when three or more workers were hospitalized in the same incident. Since September’s announcement of its new requirements, OSHA has conducted extensive outreach to help employers understand the new standards. The agency recently held its first-ever Twitter chat on the subject, answering questions and directing the broader worker safety audience to useful resources.