Home Builder Public Policy Post March 16th, 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 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 http://www.focusonenergy.com/Business/Special_Promotions.asp for more information and applications. Mark Your Calendar for These Important Election Dates ● April 3 (Local Spring Elections) ● May 8 (Recall Primaries) ● June 5 (General Recall Election) ● November 6 (Fall Elections) State Issues Shoreland Zoning The Wisconsin Natural Resources Board will meet on March 28. During the board's regular meeting, it is scheduled to vote on moving ahead to make changes to shoreland zoning rules and the rules governing endangered and threatened species. This procedural step is called "scope statement." Without the board's approval of this scope statement, the department can't move ahead with changes to the current administrative rules. Any changes that are ultimately approved by the DNR are at least a year away from enactment. NR 151 Webinar The Wisconsin DNR has revised Chapter NR 151 of the Wisconsin Administrative Code, an administrative rule that establishes runoff pollution performance standards for both agricultural and non-agricultural sources. Changes to the non-agricultural performances standards in Chapter NR 151 became effective on January 1, 2011. Since that time, the DNR has been working to implement these changes. However, the DNR has not previously had an opportunity to provide outreach on the changes. The DNR and the UW-Extension offers the development community, consultants, and municipal representatives the opportunity to participate in a Webinar where DNR staff will provide an overview of the changes to the non-agricultural performances standards in Chapter NR 151 and updates on other elements of the storm water management program. This free informational Webinar will take place from 9:00 a.m. to 11:00 1
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a.m. CDT on Wednesday, March 28, 2012. Registration for the Webinar is available by clicking here. WI MN Reciprocity Agreement Revenue officials from Minnesota and Wisconsin say they hope to finalize an agreement on tax reciprocity that will allow residents who live in one state and work in the other to file just one state income tax return beginning next year. Wetland Hearings: Gov. Walker signed a bill that would loosen restrictions on wetland development. The wetlands bill creates a two-tiered construction permit system in the Department of Natural Resources. Developers will be able to apply for a general permit or an individual permit for more specialized projects. Individual permit applicants will have to submit mitigation plans. Submitting a plan won't guarantee a permit, but it will give developers another way to show the DNR they can offset their projects' impact. National Issues HUD Publishes Revised Seller Concessions Proposal The Department of Housing and Urban Development (HUD) reissued a proposed change that would reduce the maximum allowable amount of seller concessions on an FHA loan from 6% of the sales price to 3%. A public comment period on this proposal will be open until March 26, 2012. HUD originally proposed the reduction in seller concessions in July 2010 as part of initiatives to bolster the Mutual Mortgage Insurance Fund (MMIF) capital reserve account. After having considered comments, HUD has now republished the proposed rule for public comment, with two significant changes. Specifically, the changes stipulate that HUD will: 1. Reduce the amount of seller concessions to actual closing costs by up to 3% or $6,000, whichever is greater. And, 2. Limit acceptable uses of seller concessions to payments toward borrower closing costs, prepaid items, discount points, FHA’s Up Front Mortgage Insurance Premium, and any interest rate buyown. This revised definition eliminates payment supplements such as HOA or condominium association fees, mortgage interest payments, and mortgage payment protection plans. According to HUD, this revised proposal is designed to mitigate the disproportionately negative impact that would have been felt by borrowers with low and moderate incomes if it had implemented an acrossthe-board, 3% limit on seller concessions. Meanwhile, HUD’s rationale for eliminating payment supplements offered by sellers, such as a year’s worth of HOA fees, is that these types of payment supplements are really inducements to purchase and should be treated as such. Members who want to contribute can do so by sending comments to slinville@nahb.org by March 16, 2012. For additional information, contact Steve Linville at 800-368-5242 x8597. NAHB Unveils Housing Finance Reform Plan With Congress and the Administration now looking at several proposals to wind down Fannie Mae and Freddie Mac and encourage greater participation in the mortgage finance system among private institutions, NAHB has unveiled a comprehensive framework for housing finance reform that it will advocate in ongoing negotiations. The plan, which was developed through a specially appointed NAHB working group and approved by NAHB's Board of Directors at its recent meeting in Orlando, stresses that any transition away from the 2
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current housing finance system must be done in a careful and deliberate manner to avoid further disruptions to an already fragile market. It is also built upon the recognition that, as the private market assumes a greater role in the mortgage marketplace, it is absolutely vital to maintain an appropriate level of government support to preserve financial stability, promote investor confidence and ensure liquidity and stability for homeownership and rental housing. In keeping with these core directives, NAHB's plan seeks to: ยง ยง
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Include private, federal and state sources of housing capital. Offer a reasonable menu of sound mortgage products for both single-family and multifamily housing that is governed by prudent underwriting standards and adequate oversight and regulation. Transition Fannie Mae and Freddie Mac to a new mortgage securitization system for singlefamily and multifamily conventional mortgages. Consider the 12 regional Federal Home Loan Banks for this securitization role. Phase in the new system over time and allow Fannie and Freddie to remain operational until the alternative system is fully functioning. Provide a federal backstop to ensure that conventional 30-year home loans and adjustable rate mortgages are available at reasonable interest rates and terms. Structure the federal support to the conventional mortgage market of the future through a privately funded insurance fund similar to the FDICโ s backing of the fund that insures savings deposits. This will allow the government to be the insurer of last resort in order to reduce the risk to taxpayers. Continue the role of the federal government housing agencies (HUD, FHA, VA, USDA and Ginnie Mae). Expand the role of the Federal Home Loan Banks in the housing finance system. Restart a carefully regulated fully private mortgage-backed securities market through reforms to the securities ratings system to remove conflicts of interest that led to problems in the past. Repair other flaws that produced the housing boom and bust by closing the gaps in standards and oversight that allowed and facilitated the improper and illegal activities in financial and mortgage markets.
By including a strong federal backstop for both single-family and multifamily mortgage markets and ensuring a consistent stream of mortgage credit, NAHB believes this plan will produce a sound housing finance system that provides a stable and affordable supply of credit for home buyers and rental housing. Going forward, NAHB will be working with the Administration, Congress and policy stakeholders to make this goal a reality, and we have already begun to promote our blueprint among lawmakers and the media. For additional information, email Chellie Hamecs at NAHB or call her at 800-368-5242 x8425. House Approves Eminent Domain Bill The U.S. House of Representatives this week approved H.R. 1433, the Private Property Rights Protection Act, legislation that would penalize states that use their eminent domain powers to seize land for purposes of economic development. 3
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Reps. Jim Sensenbrenner (R-Wis.) and Maxine Waters (D-Calif.) championed the bill in response to the U.S. Supreme Court’s 2005 decision in Kelo v. City of New London, which gave the government power to take land from one private property owner and transfer it to another to further economic development. The legislation seeks to discourage state and local governments from using their eminent domain powers for economic development by prohibiting them from receiving federal economic development funds for two years after they exercise such authority. New Cell Phone Restrictions for Drivers of Commercial Vehicles A rule from the Federal DOT places new restrictions on mobile telephone use in large commercial vehicles including buses and many trucks – and comes with heavy fines for drivers who don’t comply and employers that allow the violation to take place. The Federal Motor Carrier Safety Regulations (FMCSRs) and the Hazardous Materials Regulations (HMR) have been amended to restrict the use of hand-held mobile telephones by drivers of commercial motor vehicles (CMVs). The rule took effect Jan. 3. The amendment also details new driver disqualification sanctions for drivers of CMVs who don’t comply with the rule, and new driver disqualification sanctions for commercial driver's license holders who have multiple convictions for violating any state or local law or ordinance restricting the use of hand-held mobile telephones while driving. Additionally, motor carriers are prohibited from requiring or allowing drivers of CMVs to use hand-held mobile telephones. The rule applies to drivers of vehicles that meet any one of the following requirements: • • • •
A gross vehicle weight/gross vehicle weight rating of 10,001 pounds or greater Vehicles designed or used to transport more than eight passengers (including the driver) for compensation Vehicles designed or used to transport more than 15 passengers, not for compensation When transporting any quantity of hazardous materials requiring placards to be displayed on the vehicle
Only drivers employed by federal, state or local governments are exempt. Violations can result in fines as high as $2,750 for drivers and $11,000 for employers. Keep in mind that these regulations may be in addition to state restrictions or bans already in place that affect all drivers. For more information on individual state restrictions, view a list compiled by the Governors Highway Safety Administration. U.S. Department of Transportation Takes Action to Ensure Truck Driver Rest Time and Improve Safety U.S. Department of Transportation announced a final rule that revises the hours-of-service (HOS) safety requirements for commercial truck drivers. Commercial truck drivers and companies must comply with the final rule by July 1, 2013. The final rule reduces the maximum number of hours a truck driver can work within a week to 70. Under the old rule, truck drivers could work on average up to 82 hours within a seven-day period. In addition, 4
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truck drivers cannot drive after working eight hours without first taking a break of at least 30 minutes. Drivers can take the 30-minute break whenever they need rest during the eight-hour window. The final rule retains the current 11-hour daily driving limit. The rule requires truck drivers who maximize their weekly work hours to take at least two nights' rest from 1:00 a.m. to 5:00 a.m. This rest requirement is part of the rule's "34-hour restart" provision that allows drivers to restart the clock on their work week by taking at least 34 consecutive hours off-duty. The final rule allows drivers to use the restart provision only once during a seven-day period. If you drive a commercial motor vehicle or a vehicle that is used as part of a business and is involved in interstate commercial and any of the following descriptions apply to you, you are required to comply. • • • • •
Vehicle weighs 10,001 pounds Has a gross vehicle weight rating or gross combination weight rating of 10,001 pounds or more Is designed or used to transport 16 or more persons not for compensation Is designed or used to transport 9 or more persons for compensation A vehicle that is involved in Interstate or intrastate commerce and is transporting hazardous materials in a quantity requiring placards is also considered a CMV
Court Upholds NLRB Poster Rule, But Disallows Sanctions A new government ruling mandates that most employers prominently display a poster in their workplace that all employees can see that explains to employees their right to unionize. The rule applies to all employers with a gross annual volume of business of $500,000 or more. It does not matter how many employees the business may have. The NLRB poster rule is scheduled to go into effect on April 30, 2012. You can download the poster at https://www.nlrb.gov/poster. In a case brought by the National Association of Manufacturers (NAM), the U.S. District Court for the District of Columbia has recently upheld the National Labor Relations Board (NLRB) poster rule, but has also held that an employer’s failure to display the poster will not be considered to be an unfair labor practice, nor will it toll the statute of limitations for filing an unfair labor practice complaint. If the rule lacks these sanctions, it may be unenforceable as a practical matter. A separate challenge to the NLRB collective bargaining rights poster rule, brought by the U.S. Chamber of Commerce, is currently pending in the U.S. District Court for the District of South Carolina. Next Issue: April 20, 2012
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