The Business Record held an interesting power breakfast last week regarding “The March to 1 Million” – talking about the issues and challenges as the population of the Des Moines metro approaches the one million mark. Panelists included Gene Meyer (Greater Des Moines Partnership), Angela Connolly (Polk County Supervisor), Liesl Eathington (Iowa State Economist), Elisabeth Buck (United Way of Central Iowa), and Zachary Mannheimer (McClure Engineering Company). HBA of Greater DM Executive Officer Dan Knoup and HBAI Executive Officer Jay Iverson were also in attendance.
Fighting for the Home Ownership Tax Incentives
Our Federation continues to decry the House of Representatives’ rejection of a homeownership tax credit that would include both mortgage interest and property taxes to benefit up to 37 million additional home owners, and has served notice that we plan to deploy all necessary resources to ensure that the middle-class tax benefits of homeownership are part of this week’s planned release of a tax reform package.
Our message is being heard loud and clear, with front-page stories in national media outlets.
“The National Association of Home Builders know how to demolish things, and on Saturday they decided to take on a new project – the House Republican tax bill,” said the Washington Post.The House plan to double the standard deduction, end personal exemptions and repeal the deduction for state and local taxes “is a bad bill for the housing sector,” NAHB CEO Jerry Howard told Fox Business. “All the resources we were going to put into supporting are now going to go into opposing the plan,” Howard told Politico.
The House is set to release its proposal Wednesday. NAHB will continue to keep members informed of its progress. “We will not rest until Congress guarantees us that homeownership will remain as a centerpiece of our tax policy,” said NAHB chair Granger MacDonald.
Note from Granger MacDonald
Here is a note from NAHB Chairman Granger MacDonald: I want to update you on recent developments regarding tax reform. NAHB’s focus on tax reform has been to ensure that housing remains a central component to the next generation tax code. We have been concerned that the plan under development would marginalize the existing homeownership tax incentives by sharply reducing the number of taxpayers who itemize. Because only taxpayers who itemize can claim the mortgage interest and property tax deductions, the Republican tax plan would have negated the benefits of the homeownership tax incentives for millions of middle-class American homeowners.
That is not an acceptable outcome. In response, the NAHB Executive Board granted NAHB flexibility to explore other means to deliver the homeownership tax incentives, and we proposed to the House and Senate a broad homeownership tax credit that would include both mortgage interest and property taxes. The benefit of this approach is up to 37 million additional homeowners, who do not currently itemize, could benefit from a homeownership tax incentive, and current itemizing homeowners would continue to see a meaningful tax benefit.
We negotiated with the House of Representatives in good faith, and we were given assurances that a robust, broadly claimed homeownership tax credit would be part of their tax reform package that is scheduled to be released on November 1. Unfortunately, the Speaker of the House personally contacted NAHB CEO Jerry Howard this weekend to inform him that our tax credit proposal would not be part of the bill.
Instead, we expect the House to release a bill where only a small number of largely higher-income homeowners continue to itemize and claim a deduction for their home, while millions of middle-class homeowners completely lose their housing tax incentives. As a result, NAHB will strongly and aggressively oppose the House tax reform bill.
We will not rest until Congress guarantees us that homeownership will remain as a centerpiece of our tax policy.
Key Vote: Support for H.R. 2936 – The Resilient National Forests Act of 2017
A letter was sent on your behalf to Speaker Ryan and Minority Leader Pelosiin support of H.R. 2936 The Resilient National Forests Act of 2017. This will modernize the U.S. forest management system by encouraging better multi-use forest management practices for national forests. Most importantly to our members, it will increase the supply of federal timber products.
Protect Your Business: Construction Contracts & Law Live Online
If your home building or remodeling business is too small to hire full-time legal staff, you may also be finding it difficult to devote the time needed to get a grip on the legal documents that are part and parcel of a business no matter what the size. You’re not alone. That’s why NAHB offers Construction Contracts & Law Live Online, taught in live webinar format over three consecutive Tuesdays, Nov. 7, 14 and 21.
This course provides a step-by-step explanation of how contracts sustain positive customer and supplier relations, provide for resolution of disputes and minimize the risk of litigation.
You’ll also learn about contracts specifically recommended for builders and remodelers: sales agreements, construction contracts, remodeling contracts, warranties and subcontractor agreements, including mandatory and optional provisions. The course will also help you:
- Identify additional resources related to construction law
- Explain how contracts sustain positive customer and supplier relations, provide for resolution of disputes and minimize the risk of litigation
- Earn continuing education credits if you hold an NAHB designation
Oakwood Homes in Denver Offers Free Homebuilding Academy
Here is an interesting twist – a Denver company donates $1k for each of the homes it sells (1,356 this year) to their Foundation, which is designed to bring students into the trades. The students are some of the first to enroll in an eight-week “boot camp” at the Colorado Homebuilding Academy, a nonprofit organization that opened this year. The course is free, founded and funded by Oakwood Homes, a Denver-based homebuilder. Check out the article here.
“Every single year the labor situation has basically gotten worse,” said Patrick Hamill, CEO of Oakwood. “People retire, and there’s nobody to replace them, and as an industry, ultimately we’ve just done a lousy job marketing our opportunities to young people.”
So Oakwood, which is owned by Berkshire Hathaway, started a foundation to fund the academy and donates $1,000 for every house it closes. This year, Oakwood expects to close on 1,356 homes. In its first year, the program will run 11 boot camps, training approximately 200 workers. Next year, company officials hope to double that.
“Trade associations are involved, other homebuilders are involved, because we all know if we don’t do this, we’re not going to have a labor force to meet the needs of our industry,” said Hamill.
Here is an interesting graphic – the push pins represent the students, schools, and participants in attendance at the Skilled Trades dinner with Mike Rowe in September. Well represented across the state!
New OSHA AppointmentPresident Trump has appointed Scott A. Mugno of Pennsylvania to head up the U.S. Occupational Safety and Health Administration (OSHA) as assistant secretary of Labor, Occupational Safety and Health.Mugno comes from the private sector as the vice president for safety, sustainability and vehicle maintenance at FedEx Ground in Pittsburgh, Pa. and he previously served as the managing director for FedEx Express Corporate Safety, Health and Fire Protection in Memphis, Tenn.His responsibilities in both those positions included developing, promoting and facilitating the safety and health program and culture and he was twice awarded FedEx’s highest honor, the FedEx Five Star Award, for his safety leadership at FedEx Express.”OSHA has needed leadership in place to be able to address issues of high importance to home builders and remodelers, such as providing compliance assistance for the silica rule.” said Robert Matuga, assistant vice president for labor, safety and health at NAHB. “NAHB and the members of our Construction Safety and Health Committee look forward to working closely with the assistant secretary to continue improving workplace safety in the home building industry.”
Early Pricing for the Builders’ Show Ends Nov. 10
Get a great deal on IBS registration when you register early. From now until Nov. 10, you can save significantly on full IBS registration, which gives you access to 140+ education sessions and all the exhibit floors. Another option-the expo pass-includes an all-access pass to the exhibit floors.