"The taxpayer: That's someone who works for the federal government

but doesn't have to take the civil service examination."

-Ronald Reagan

NAA/NMHC HELP DRAFT NEW GREEN BUILDING STANDARD

NAA/NMHC have been appointed to the committee charged with developing a new National Green Building Standard and will have a major role in crafting the provisions that apply to multifamily properties. The final standard, which is being produced in conjunction with the International Code Council (ICC) and the National Association of Home Builders (NAHB), will be published by the American National Standards Institute (ANSI). The new standard is important because a growing number of cities are implementing regulations requiring new apartment properties to achieve certain environmental and energy benchmarks. Absent an alternative, many of these new laws require developers to meet the standards set by the U.S. Green Building Council’s (USGBC) LEED program. This is problematic for apartment firms, though, because the USGBC does not have a rating system for multifamily construction. They essentially force mid- and high-rise apartment buildings to comply with the LEED standard developed for commercial office construction and low-rise buildings to comply with a single-family standard that is still in the pilot phase. The National Green Building Standard will specifically address multifamily construction and will serve as an important alternative rating system for apartment firms and local officials. More information on the initiative, including a working draft of the standard, is available at

FAIR HOUSING

  • Fair Housing Complaints Increased in 2006. In what should be a warning to apartment firms, the U.S. Department of Housing and Urban Development (HUD) reports that housing discrimination complaints increased 12 percent in FY 2006 to 10,328, the highest number ever. According to HUD’s Annual Report on Fair Housing, disability and race were the most common bases for complaints, constituting 40 percent and 39 percent, respectively. The fastest-growing issue was failure to make reasonable accommodations for disabled individuals; complaints of this increased by 14 percent from 2005 and by 48 percent from 2003. HUD reports that disabled individuals encountered discrimination in half of encounters for hearing-impaired individuals using telephone-operator relay to search for rental housing, and in one-third of encounters for wheelchair-bound individuals inquiring in person about housing. HUD’s full report, which includes information on HUD’s Fair Housing enforcement, oversight and outreach efforts, is posted at
  • NAA/NMHC Fair Housing Accessibility Conference. With advocacy groups continuing to target apartment firms in high-profile lawsuits alleging violations of the federal Fair Housing Accessibility regulations, NAA/NMHC are sponsoring a one-day conference to help firms understand and respond to this very important issue. Scheduled for June 5 in Baltimore, MD, the members-only conference is reserved for senior executives, risk managers and general counsels at firms that own, manage and develop apartments. Among other things, the event will review the rules for accessible design, review the changing standards that make it difficult to comply, offer tips for determining if properties comply and discuss steps to take if a firm is sued. To register or for more information, visit

HIGH-PROFILE NEWSPAPERS PROMOTE RENTING, QUESTION HOMEOWNERSHIP BENEFITS

The housing slow down and the meltdown in the subprime mortgage market—predicted for years by NAA/NMHC—has inspired several high-profile articles promoting renting and questioning the benefits of homeownership. The most recent appeared on the front page of The New York Times (NYT) on April 11. Titled “A Word of Advice During a Housing Slump: Rent”, the article summarizes a NYT analysis of buying vs. renting in every major metropolitan area and concludes that “it’s now clear that people who chose renting over buying in the last two years made the right move.” It goes on to say that “buying has never been quite as beneficial as Realtors—and mortgage brokers, home builders and everybody else who makes money off home purchases—have made it out to be.”

Both The Washington Post and The Wall Street Journal have published articles exploring the often-overstated investment potential of homeownership. In an April 8 article titled “Your House Doesn’t Add Up the Way You Think”, the Post looks at the role a house can play in an individual’s retirement planning and finds that even where real estate values are the highest, stocks beat real estate over the long term. On March 12, the Journal ran an article titled “Why Your Home Isn’t the Investment You Think It Is”, refuting the idea that a house is the best nest egg. The article ends with a series of questions and answers about the benefits of renting versus owning.

These recent articles follow earlier articles questioning the nation’s aggressive pursuit of homeownership “at any cost.” On March 17, The New York Times ran a story (“Mortgage Trouble Clouds Homeownership Dream”) concluding that “perhaps the American dream of homeownership is not for everyone.” It goes on to say that the current foreclosure situation “...calls into question whether the nation’s long drive to increase homeownership—pushed by both public policy and financial innovations—has overstepped some boundary of demographic and economic sense.” On March 21, American Public Media’s Marketplace radio show ran a commentary by David Frum, a former speechwriter for President Bush and now a resident scholar at the American Enterprise Institute, titled “Maybe home ownership's not for everyone”. Frum questions the price we’ve paid to push our homeownership rates higher by pointing out several economic advantages renting offers households.

In related news, NMHC recently submitted a letter to the editor to The Wall Street Journal responding to a commentary published on April 18 (“An Endangered Dream”) that argues for continuing–even expanding–homeownership incentives for low- and moderate-income families despite the clear and convincing evidence that America has pushed its “home ownership at any cost” policy too far. Our letter is available at

NAA/NMHC HIRE NEW VICE PRESIDENT OF TAX

Capitol Hill veteran Jennifer Bonar Gray has been named the new NAA/NMHC Vice President of Tax. She will have principal responsibility for federal and state tax issues, including NAA/NMHC priorities such as estate tax reform and exit tax relief. Gray brings extensive advocacy and private sector experience to the position. Most recently she was Tax, Trade and Budget Counsel to U.S. Senator Jim Bunning (R-KY), a member of the Senate Finance Committee. Before that she was Legislative Counsel to U.S. Senator Peter Fitzgerald (R-IL). Prior to that she was Tax, Legislative and Regulatory Services Manager at KPMG LLP and also practiced law at Hogan & Hartson in Washington and at Taft, Stettinius & Hollister, LLP in Cincinnati, OH. Gray is a graduate of Harvard Law School and a Phi Beta Kappa graduate of Centre College in Danville, KY with a Bachelor of Arts degree in Economics and Government. She can be reached at or 202/974-2362.

NAA/NMHC PROTEST PROPOSED FHA PREMIUM INCREASE

For the second year in a row, HUD has included a proposal in its FY 2008 budget to increase the mortgage insurance premium on most FHA multifamily mortgage insurance programs. If approved by Congress, the 35 percent increase would generate an additional $43 million in revenue for the Department and would go into effect on October 1, 2007. NAA/NMHC and a coalition of housing organizations have written to lawmakers opposing the increase as a “tax” on affordable housing that will result in fewer properties being built and higher rents. The move is particularly disturbing since HUD has reduced the premium in recent years after being pressured to tie the premiums to the actual program costs. HUD was forced to withdraw a similar proposed increase last year after 121 Members of Congress signed a letter asking that the fee increase not be imposed. The House Financial Services Committee has already gone on record opposing the premium increases.
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