Home Builders Public Policy Post June 2012 Welcome to the NABA Home Builders Public Policy Post. This is a monthly update for NABA members on regulatory and legislative issues facing the housing industry whether it is local, state or national. If you are interested in contributing to the update, we are looking for members who are interested in attending and reporting back about local zoning and county board meetings. Please contact the NABA office at 715.259.3486 or naba@centurytel.net for details.
Local Issues Input needed on Shoreland Zoning law change, 2011 WI Act 170 We’re looking for quick feedback on our members’ recent experience with permits for remodeling or reconstruction work in shoreland zones. The Wisconsin Legislature, via Act 170, gave counties more flexibility to allow the repair, remodeling or relocation of nonconforming structures in the shoreland zone. However, WBA has been hearing mixed messages on how counties are implementing that new law. Some are using the law as a tool to allow more repair or remodeling while others are doing nothing. Please forward comments to WBA at bboycks@wisbuild.org and NABA at naba@centurytel.net.
State Issues A change in the Recall Process? Robin Vos of Burlington area believes the voter reaction to this week's recall may be enough to help push his proposal to change the state's recall process. Exit polling that took place during the recall shows that 60 percent of voters think recall elections should only be used in the case of misconduct or criminal activity. He believes the information gathered during the exit polls will help him receive the support of more lawmakers with his idea of a constitutional amendment proposing a rule change in Wisconsin. The amendment he is proposing would limit when a recall can be used. He also believes that recalls in the past were rarely utilized, and now they're being used as a political tactic. Vos states “This is clearly not the intention when our founders put this in the Constitution almost 100 years ago”. Will there be a special summer session to start the process of making a recall rule change? Recall Recall Update Walker/Kleefisch win Wisconsin voters rejected the recall of Governor Scott Walker and Lt. Governor Rebecca Kleefisch, allowing both to finish their four year term. Lt. Governor Kleefisch generally mirrored the vote total of Governor Walker. Kleefisch came in with just over 34,000 fewer votes than Governor Walker once all the votes were totaled.
Home Builder Public Policy Post: June 2012
Page 1
How Did Northern Wisconsin Vote? Douglas County 64% Barrett/35% Walker, 1% Hari Trivedi, Independent Candidate Bayfield County 60% Barrett/40% Walker, 1% Hari Trivedi, Independent Candidate Ashland County 61% Barrett/38% Walker, 1% Hari Trivedi, Independent Candidate Burnett County 39% Barrett/61% Walker, 1% Hari Trivedi, Independent Candidate Washburn County 42% Barrett/57% Walker, 1% Hari Trivedi, Independent Candidate Sawyer County 43% Barrett/57% Walker, 1% Hari Trivedi, Independent Candidate State
46% Barrett/53% Walker, 1% Hari Trivedi, Independent Candidate
Senate Recall Recapenate likely flips D Most said the majority in the state senate would ultimately be decided in the 21st Senate District which featured a “do over” from 2010 where current State Senator Van Wanggaard was facing former State Senator John Lehman. They were correct. The other three state senate seats stayed Republican while it appears that Wanggaard was defeated by Lehman by just under 800 votes. If the Lehman victory holds, and with a 779 vote lead that is very likely, the senate majority will flip to the Democrats 17-16 for the time being. The legislature is adjourned for the time being so it is unlikely the body will meet until January 2013 after the fall general election.
National Issues Urge Senators to Co-Sponsor S. 2078, the Home Building Lending Improvement Act of 2012 Call (866) 924-NAHB (6242) ∙ Write at www.capitolconnect.com/builderlink Hundreds of builder and associate members were on Capitol Hill to advocate for the housing industry this week. They spoke with their members of Congress on a bevy of issues. One of the most important issues is the lack of credit in the housing market. Senator Robert Menendez (DNJ) has introduced legislation to address that lack of credit. S. 2078, the Home Building Lending Improvement Act of 2012, directs the banking regulators to issue new regulatory guidance in key areas that have resulted in the credit window being slammed shut on our industry. The legislation removes the barriers to lending while preserving the regulators’ ability to assure the safety and the soundness of the financial institutions they oversee. Help amplify the voice of the members of the National Association of Home Builders (NAHB) that are on the Hill advocating for the housing industry. Please take a minute to email and call your senators about co-sponsoring S. 2078, the Home Building Lending Improvement Act of 2012, a solution to the growing housing production credit crisis. Call to Action: • Call your Senators at (866) 924-NAHB (6242); • Write your Senators at www.capitolconnect.com/builderlink. Urge Your Senators to: • Co-Sponsor S. 2078, the Home Building Lending Improvement Act of 2012.
Home Builder Public Policy Post: June 2012
Page 2
Congress Agrees to Flood Insurance Program Extension Builders who rely on the National Flood Insurance Program (NFIP) will be glad to know that after significant debate, Congress has reached an agreement that provides for a 60-day extension of the program's May 31 expiration date and paves the way for consideration of a 5-year extension. NAHB has been working diligently to ensure that this critical program did not lapse at the end of May, and in this respect as well as the effort to press Congress for consideration of a 5-year reauthorization, our efforts have been rewarded. However, as a condition of any program extension, Sen. Tom Coburn (R-Okla.) insisted on a four year phase-in to actuarial rates for NFIP premiums on non-primary residences. NAHB fought vigorously against this unfair treatment of second homes, but lacking the support of our traditional real estate allies and with the threat of an immediate lapse of the entire program, these efforts were unsuccessful. The next phase of the debate kicks in as the Senate begins consideration of a 5-year NFIP reauthorization bill in June, and NAHB looks to fight off a mandatory purchase requirement for properties located behind flood control measures, in places called "residual risk" areas. NAHB has strongly argued that property owners who have paid for the construction and maintenance of flood control measures (such as levees and dams) should not be required to purchase flood insurance if they choose not to. And so, while enactment of a long-term reauthorization of the NFIP will continue to be the paramount concern, NAHB will be working with our allies in the Senate to strike the residual risk provision and will be activating our grassroots network in pursuit of the best bill possible for our members. We'll keep you apprised of the latest NAHB Defends Key Wetlands Provision in Water and Energy Spending Bill NAHB was successful in defending a provision in the 2013 energy and water appropriations bill that bars the Environmental Protection Agency (EPA) and U.S. Army Corps of Engineers (EPA) from issuing new wetlands guidance. At issue was an amendment offered by Rep. James Moran (D-Va.) on June 1 that would have struck language in the bill that would have barred the EPA and Corps from finalizing or implementing their draft guidance to expand the reach of the Clean Water Act to include virtually every ditch, pond and seasonal runoff ditch in the nation. The Moran amendment failed by a bipartisan vote of 237 to 152. Prior to the House vote, NAHB sent a letter to House members urging opposition to the Moran amendment and designated this as a “key vote� because of its importance to the housing industry. NAHB had fought hard to insert the provision into the spending bill to deny funding for the EPA and Corps to complete or enact their draft Clean Water Act document. The vote to defeat the Moran amendment ensures that this provision will remain intact. This guidance document significantly changes and expands what features are protected under the Clean Water Act. Moreover, in bypassing the necessary public outreach required under the Administrative Procedures Act, NAHB maintains that the EPA and Corps are operating outside of the proper rulemaking process and failing to full consider the legal, economic and unforeseen consequences of their actions. Arguing the guidance would ignore congressional intent under the Clean Water Act, the NAHB letter said the guidance document would dramatically increase the cost and time needed to
Home Builder Public Policy Post: June 2012
Page 3
obtain a wetlands permit prior to home construction and would interfere with the ability of individual landowners to use their property. “We believe it is essential to ensure that the housing recovery is not further impeded,� the letter stated. In a related area, NAHB is calling on House members to cosponsor H.R. 4965 and senators to support S. 2245. The two bills would prevent the EPA and Corps from using this guidance to change legal responsibilities under the Clean Water Act. This is one issue that was highlighted during the upcoming NAHB Legislative Conference that took place on Wednesday, June 6. To view legislation, click here and type the bill number in the box in the upper center screen.
Home Builder Public Policy Post: June 2012
Page 4