Home Builder Public Policy Post February 17, 2012 Welcome to the NABA Home Builder Public Policy Post. The Post 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 Post, NABA is looking for members who are interested in attending and reporting back about local Zoning and County Board meetings. Please contact the NABA office for details. Local Issues Mining Legislation Update State Senate Majority Leader Scott Fitzgerald (R-Juneau) has dissolved the senate committee that had recently released a draft version of a mining bill. The state Assembly had previously adopted a mining bill last month. A hearing on the Senate bill was scheduled to take place in Platteville on Friday, but the hearing has been canceled. Sen. Bob Jauch (D-Poplar) had said a second hearing on the Senate bill would be held in Ashland, possibly next week, but that hearing appears to be in doubt. Instead of being considered first by the Select Senate Committee on Mining Jobs, mining legislation will go now to the Senate Joint Finance Committee. The Joint Finance Committee is expected to take up the mining bill adopted by the state Assembly, according to Fitzgerald spokesman Andrew Welhouse. Welhouse said Fitzgerald is concerned that the senate's session will end March 15 before the senate has a chance to adopt mining legislation. The Joint Finance Committee held a hearing on Assembly Bill 426 on Feb. 17 in Madison. Superior Days: Feb 21 & 22 Superior Days is a grassroots community-based effort to bring issues of importance to Northwestern Wisconsin to the attention of State Legislators. Superior Days will be February 21st and 22nd in Madison. Visit http://superiordays.com/registration/ for registration information. Cost is $35/person and is open to business representatives, community leaders, elected officials, concerned citizens, and youth from Northwestern Wisconsin. Mark Your Calendar for These Important Election Dates ● February 21(Spring Primary) ● April 3 (Local Spring Elections) ● November 6 (Fall Elections) State Issues Ready, Set, Build Initiative Governor Scott Walker announced his “Ready, Set, Build!” initiative to identify certified sites for business development in Wisconsin. The initiative calls on the Wisconsin Economic Development Corporation (WEDC) to select a qualified business to provide site certification services to WEDC. It is anticipated that the site certification program will be available for implementation in early spring 2012. 1
A certified site is one that is shovel-ready and has been reviewed and approved by the certifying agency. Certified sites will consider a number of factors such as minimum site size, utility and transportation infrastructure in place, physically and technically developable, environmental assessments, quality of labor force and support by local communities. Under the Governor’s proposal there will be ten sites certified each of the next three years. Senate passes new Wetland protocols Senate Republicans approved a bill that would loosen restrictions on wetland development in an early morning session Wednesday. The wetlands bill has become a hot-button issue. The GOP sees it as a way to help businesses expand and create jobs. Minority Democrats and their allies fear the measure would pressure environmental regulators to lower their standards for granting permits, leading to the loss of potentially thousands of acres of wetlands. The wetlands bill would create a two-tiered construction permit system in the Department of Natural Resources. Developers could apply for a general permit or an individual permit for more specialized projects. Individual permit applicants would have to submit mitigation plans. The plans could include purchasing credits from entities that have already restored wetlands, paying the DNR to support its wetland restoration work, or enhancing or restoring other wetlands within a half-mile of a project or within the project's watershed. Submitting a plan wouldn't guarantee a permit, but it would give developers another way to show the DNR they could offset their projects' impact. The Bill goes next to the state Assembly where a vote is expected on Thursday. The legislation looks destined to become law since republicans control the Assembly, and Walker supports the measure. Wisconsin Recall Update Last week, a Dane County Circuit Judge denied Gov. Scott Walker’s request for an extension to review the recall petition signatures – stating that the election was likely to proceed. In January, recall organizers submitted more than one million signatures to the Government Accountability Board supporting a recall of the Governor. Only 540,208 signatures were needed to trigger the recall election. Walker must now submit any challenge by February 27, and the Government Accountability Board has until March 19 to make its final determination regarding the recall elections. In the meantime, State Senator Kathleen Vinehout (D-Alma) announced that she would be running in the Democratic primary in the hopes of challenging Governor Walker. By entering the race, she is forcing a run-off between herself and Kathleen Falk, a former Dane County executive. Vinehout is currently serving her second term in the State Senate. Before being elected to the State Senate in 2006, Vinehout had been a dairy farmer and college professor. Senator Terry Moulton (R-Chippewa Falls) is one of the four Senators facing recalls. Former 68th district rival Kristen Dexter recently announced her intention to run against Moulton in the recall. Focus on Energy Enhanced Business Incentives Expire March 31 Focus on Energy offers financial incentives to eligible customers for installing qualifying energy efficiency and renewable energy measure (including energy efficient lighting, compressed air, HVAC equipment, and residential solar energy systems). It also includes custom projects such as system or building upgrades or process improvements. On March 31, 2012 several enhanced Focus on Energy business incentives will expire. Check out the special promotions page at http://www.focusonenergy.com/Business/Special_Promotions.aspx for more information and applications.
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SmartGrowth Reform Moves Forward in Senate SmartGrowth reform legislation (AB 303) passed the Assembly in early November, and it is currently moving through the committee process in the State Senate. As proposed, this bill:
Makes SmartGrowth optional by removing the mandate – municipalities would no longer be required to have a comprehensive plan in place by January 1, 2010 or January 1, 2012 for those who received extension. Restores local control by allowing communities to opt-out of SmartGrowth. If they decide not to participate, they can still engage in zoning and other land use functions and those decisions will no longer have to be consistent with a comprehensive plan. Allows local governments (counties, towns, villages and cities) to repeal comprehensive plans that are already in place. The process will mirror what is already in place for making revisions to comprehensive plans by requiring 30 days notice and a public hearing. Makes it clear that the existence of a comprehensive plan does not prevent a community from participating in state-funded economic development programs. Removes the consistency requirement that counties who want to participate in the Farmland Preservation program must do so in compliance with a comprehensive plan.
The bill does not repeal Smart Growth or any plans that are currently in place; but according to the bill’s co-author Rep. Scott Suder, it does provide communities with flexibility to decide if comprehensive planning makes sense for them. Huebsch to Speak at WBA Advocacy Forum For those who will be attending the Wisconsin Builders Association (WBA) Conference this week at the Chula Vista Resort in Wisconsin Dells, do not forget to attend the WBA Advocacy Forum on Friday, February 24 at 9 am. Department of Administration Secretary Mike Huebsch will be joining WBA members to give us an update on what has been going on in state government over the past 14 months and give us an insight into what might be in store for the future. This is an open forum open to all WBA members and guests to get an insider’s look into state government and we hope you put this on your calendar of events to attend next week. Wisconsin Mortgage Settlement Closing Holes in State Budget A $26 billion foreclosure settlement was reached last week with five of the largest home lending institutions. The five mortgage servicers entering into the settlement are Bank of America, J.P. Morgan Chase, Citigroup, Residential Capital (Ally Bank/GMAC), and Wells Fargo & Co. The settlement specifies that the mortgage servicers follow comprehensive “servicing standards” that will significantly reform all aspects of post-closing mortgage servicing. Among other items, the new standards will: (a) prevent robo-signing and other improper foreclosure practices; (b) require banks to offer loss mitigation alternatives to borrowers before pursuing foreclosure; (c) increase the transparency of the loss mitigation process; (d) impose timelines for servicers to respond to borrowers; and (e) restrict the practice of “dual tracking,” where foreclosure is initiated despite the borrower’s engagement in a loss mitigation process. Monetary benefits to Wisconsin include: Up to an estimated $60 million in benefits from loan term modifications and other direct relief.
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Approximately $17.2 million in uniform payments of up to $2,000 for eligible Wisconsin borrowers who lost their home to foreclosure from January 1, 2008, through December 31, 2011, and suffered servicing abuses. Approximately $31.3 million in refinancing benefits for eligible borrowers who are currently making payments but owe more than their home is worth. Payment to the State of approximately $31.6 million that may be used for compensation to the State, future law enforcement efforts, additional relief to borrowers, civil penalties and/or funding of foreclosure relief and mitigation programs.
Only two states (Wisconsin and Missouri) are proposing to use the funds to help offset the state budget deficits. The settlement grants the attorneys general the authority to distribute the money to foreclosure relief and housing programs, however there is leeway to the terms. Wisconsin’s Attorney General JB Van Hollen is asking the state legislature to apply $25.6 million to the general fund and is setting aside the remaining $6 million, Governor Walker defended the decision by citing the economic hardship the state had to endure as a result of the foreclosure crisis.
National Issues OSHA Extends Temporary Enforcement Measures in Residential Construction OSHA will extend through September 15, 2012 its temporary enforcement measures in residential construction. Fatalities from falls are the number one cause of workplace death in construction. The temporary enforcement measures include priority free on-site compliance assistance, penalty reductions, extended abatement dates, measures to assure consistency and increased outreach. Over the past year, OSHA has worked closely with the industry, conducting over 1,000 outreach sessions nationwide to assist employers in complying with the new directive. Social Security withholding continues The final step to employees continuing to see a reduction of their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid through December 31st, 2012 is the president’s signature. The two percentage point payroll tax cut began in 2011. This reduced Social Security withholding will have no effect on employees' future Social Security benefits. According to the Internal Revenue Service (IRS) the payroll tax cut will put an average of $1000.00 into each households pocketbook for 2012. Federal Reserve Chair Bernanke Speaks at NAHB International Builders’ Show (IBS) Attendees of the 2012 International Builders' Show had an outstanding opportunity to hear Federal Reserve Chairman Ben Bernanke deliver remarks during a special session. Testifying before the Joint Economic Committee in Congress in early October, Bernanke specifically acknowledged housing's role in economic recovery and job growth and the challenges facing builders in today's market. Chairman Bernanke understands the contributions that builders can make to the economy when given the chance, and throughout his tenure he has been willing to meet with NAHB leadership on a regular basis to receive updates from us on the state of the housing market and discuss industry concerns. "The housing sector has been a significant driver of recovery from most recessions in the United States since World War II," he said. "This time, however, a number of factors -- including the overhang of distressed and foreclosed properties, tight credit conditions for builders and potential home buyers, and
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the large number of 'underwater' mortgages -- have left the rate of new home construction at only about one-third of its average level in recent decades." To watch a replay of Bernanke’s speech: http://www.nahb.org/generic.aspx?genericContentID=175526 NAHB 2011 Advocacy Value - $5.7 Billion in Increased Member Revenue and Reduced Member Costs NAHB Advocacy identified 14 accomplishments that could be evaluated in terms of additions to members’ revenues or reductions in members’ costs. These accomplishments include Congressional enactment of higher FHA loan limits, defeat of proposed EPA stormwater regulations, and federation victories connected to building code requirements. Many other actions that deferred, deterred or eliminated negative actions on members’ business were reviewed but only those with specific and identifiable outcomes were evaluated.
Next Issue: March 17, 2012
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