Showing posts with label government affairs. Show all posts
Showing posts with label government affairs. Show all posts

Friday, May 4, 2018

Congressman Jeff Duncan accepts Defender of Housing Award from (from left to right) Rick Quinn, APB, Quinn-Satterfield, and Dave Hagan, APB, and Scott Daniel, APB, of Ryan Homes.
Your HBA leaders and PAC donors met this week with Congressman Jeff Duncan.

During the meeting our members discussed with Duncan the need to resume negotiations with Canada over the lumber tariff, the need for a long-term renewal of the National Flood Insurance Program, the labor shortage and the need to expand the guest-worker program and support training in the building trades, and a long-term solution to the the mortgage-finance system.

During the meeting, HBA of South Carolina President Rick Quinn, APB, presented Congressman Duncan with the NAHB Defender of Housing Award. Thank you Ryan Homes for hosting the meeting.

Thursday, February 15, 2018

OSHA Targeting Upstate Construction Sites

Your HBA was informed this morning that OSHA is targeting construction sites in Greenville, Spartanburg, and Anderson.  They call this a blitz enforcement.  OSHA currently has staff in the Upstate identifying sites for potential enforcement.  In particular, they are looking for fall hazards and struck-by hazards.

Be sure all of your sites, even single-home sites, are in full compliance with OSHA rules and regulations.

Wednesday, February 14, 2018

PEX/HDPE Service Pipe Rule Change at Greenville Water

Greenville Water recently adopted a rule that PEX and HDPE pipe must be installed with a tracer wire attached by the manufacturer.  Tracer wire attached by anyone other than the manufacturer will not be accepted.

In addition, Greenville Water has announced that repairs to PEX or HDPE pipe may not be made with "SharkBite" push-to-connect fittings.  Repairs may only be made using compression fitting as specified by Greenville Water's Standard Specifications, which can be found at greenvillewater.com.

Thursday, January 18, 2018

HBA letter to Greenville County Council regarding Land Development Regulations



The Honorable Butch Kirven, Chairman
Greenville County Council
301 University Ridge
Greenville, SC 29601

Dear Chairman Kirven,

On behalf of the 600 members of the Home Builders Association of Greenville, I am providing you with a detailed analysis and list of proposed changes to the draft Land Development Regulations ordinance which you will consider for third reading on January 23.

I wish to emphasize that the Home Builders Association is not in opposition to this ordinance.  In fact, we find many changes that we believe are needed and will improve the current ordinance.  However, there are several changes that will significantly impair the economic development of residential building lots and lead to increased housing costs in Greenville County.

This analysis was prepared by several of our members who are active in land development in Greenville County.  Most of them also were actively involved in the drafting of the Land Development Regulation ordinance that was adopted by Greenville County Council in 2016.  In fact, each of them, as well as myself, spent more than 200 hours over the course of three years working with county staff to develop the ordinance that is in place now.  Unfortunately, not of us were consulted on the current draft, but these comments have been received by county staff in a meeting that took place on January 10, 2018, at County Square.

Article 1
1.6.1:
In the draft ordinance, an additional pre-submittal meeting has been added by county staff.  With this change to the ordinance, county staff will make the meeting mandatory and the meeting must occur before an application to subdivide real estate will be “accepted” for consideration.  It is our opinion that this new meeting will add at least one month to the process of reviewing and approving a subdivision.  It also is completely unnecessary in most cases.

Until recently, county staff made themselves available to developers and engineers, on an informal basis, to discuss a proposed development before the application to subdivide was submitted.  This is no longer the case and when combined with a constantly-changing process imposed by county staff, some applications for subdivision have been submitted with errors.  Staff has concluded that the developer and their engineer are at fault.  However, it is our opinion that what is really needed is accessibility, and in some cases an improved customer service culture, among the staff that handles these applications.

One other point: you should know that county staff has already implemented this new meeting, and has declared it mandatory, ahead of action by County Council.  In the first month some developers have been turned away because the meeting schedule was full.  It should be apparent that our 30-day estimate may be conservative.

Recommendation: The change in 1.6.1.A. should be rejected.

Article 2
Definition of Authorized Representative:
If adopted, the definition of Authorized Representative will limit to one person a representative who is available to appear on behalf of the application in meetings with county staff as well as the Planning Commission and County Council.  The problem with this definition is that it does not acknowledge the reality of people’s lives.  Should the authorized representative be unavailable for a meeting, the application will be delayed until the authorized representative is available.

Recommendation: Provide for Alternate Authorized Representatives when the Authorized Representative is unavailable to represent the project.

Article 3
3.1:
Ordinances that are drafted with subjective language are especially problematic.  Subjective ordinances do the following:

·       Empower staff to make policy decisions that are rightfully the purview of County Council
·       Allow policy makers to inject political considerations into a decision that should be objective
·       Removes clarity in how land use is expected to occur in Greenville County
·       Diminishes the role of the Comprehensive Plan in land use decisions, which the language in 3.1 will do

Greenville County Council already has allowed itself to be overly influenced by Not In My Backyard (NIMBY) interests, and in some cases council members are fanning those flames uncessarily.  The people who oppose real estate development are not interested in sound planning decisions, they are interested in stopping any activity that might impact their personal property, even when their property is impacted positively, not impacted in any way, or is miles away.  Some don’t have a property interest in the area at all.

The language in 3.1 will only provide further ammunition for opposition to development that is otherwise consistent with county plans and ordinances.  In addition, because of its lack of clarity, it could be used to support litigation on both sides of a dispute, further clouding land use policy in Greenville County.

Recommendation: The new language in 3.1 should be rejected.

3.3.2:
As has already been pointed out in the Definition of Authorized Representative, the pre-submittal meeting and lengthening of the review schedule is unnecessary.

Recommendation: The Pre-Submittal meeting should be made optional.

3.4.7:
Sidewalks have been a touchy subject between developers and Greenville County.  In most cases, developers want to include them in their projects, but the bonding requirement is something they would like to avoid.  Bonding is expensive at 125 percent of construction cost.  In addition, bonding is not actually a bond, but cash placed on deposit with the county.  This money generally can not be borrowed, therefore it impacts the developer’s capital position for current and future projects.  Therefore, it is not just an issue of interest expense, but restricts the developer’s ability to take on other projects or to do more with their current project.  It therefore adds expense to the development that is beyond the cost of the financial security.

In the case of this change, which removes one word, “required,” it creates a disincentive for the developer to do more than the sidewalks required in the ordinance and on the site plan, because the developer will be required to bond any sidewalk that may otherwise be added by the developer, but is not required.

Recommendation: The removal of “required” in 2.4.7 should be rejected.

3.5.1.:
In our meeting with county staff on January 10, 2018, we questioned this new paragraph because of its vagueness and subjectivity.  In that discussion, county staff stated that their intention is to redirect a Minor Subdivision to the Preliminary Plan process if a road, whether public or private, is required.  They stated that it is not their plan to redirect Minor Subdivisions if a detention pond, sewer line, drainage swale, or other improvement, which could be defined as a public improvement, is involved.

Recommendation: In the last sentence of this paragraph, replace “improvement” with “road,” so that it reads, “If the County determines that a public or private road is necessary for any reason, …”

Article 8
8.17.2.B.:  
Requirements to place buffers in common areas will result in forcing a Homeowners Association to be created when no other common areas are necessary.  In addition, it will have a major impact on meeting lot area requirements for non-cluster subdivisions, particularly in R-S, R-R1 and R-R3 developments.  In addition, if buffers are expanded in the future, this will result in an even greater impact to the development.

Recommendation: Change the language to:  “Riparian buffers are preferred to be located in common areas, but not required.”

8.17.3.A.:  
Requiring stormwater conveyance systems to be in common areas rather than in an easement will result in division of lots where stormwater has to flow through the lot.   This will particularly impact larger lots.  In addition, the county has stated that they want easements on all channels that carry water from two or more lots.  This could be interpreted to make these easements common area, which creates new property lines, building setbacks, and other issues that will reduce the yield of lots in a subdivision, raising the cost of the remaining lots.

Recommendation: Remove “through the common area.”

8.18.A.: 
During the 2016 revision to the Land Development Regulations, the study committee agreed that ADA standards would apply only to the ramp portion where the sidewalk transitions to the street.  We arrived at this conclusion because Greenville County is a very topographically challenging county, with many steep slopes even in the Southern part of the county.  In many cases, it will be nearly impossible to meet the slope requirements of the ADA (5 percent) without substantial grading of the site, requiring the removal of trees and dramatic leveling of the site.  This not only adds great expense, but it is also contrary to the very concern that has brought rise to this revised ordinance.

In addition, we feel it is important to point out to County Council that the language, as written in the current ordinance, which includes the ADA requirement to which we object, was not what was adopted by County Council in 2016.  We brought this fact to the attention of county staff in Spring 2017, and we were informed that the ordinance would be corrected.  To date it has not been corrected, and the current draft implies no change to the language when in fact there has been a change made to an ordinance that was properly adopted by County Council.  This is a transparency issue that gives constituents reason to be suspicious of the integrity of the governing process and the motives of those who made the change after County Council approved the ordinance.

Recommendation: ADA standards should apply only to ramps and transitions from sidewalks to streets and the language should be restored to the language which was adopted by County Council in 2016.

8.21: 
We object to the proposed screening requirement for the following reasons:
  1. It is unnecessary to screen similar, or identical, residential uses from one another. This adds unnecessary expense.
  2. The act of installing screening may result in the removal of existing vegetation that would otherwise be left undisturbed.
Recommendation: The current screening requirement should be retained.  However, the Home Builders Association will support screening of residential uses from incompatible, non-residential uses.

Article 12
12.5.1.:
Requiring Private Roads will prevent certain types of development, like townhomes, which are generally regarded as more affordable than traditional single-family homes.  County staff has told us that this was not their intent.  But this issue in particular highlights the need for this ordinance to be returned to Planning Commission for further work.

Recommendation: The next to last sentence in this article should be be revised to read, "Private Roads or Private Drives are required…" 

We do not oppose the entire ordinance
There are changes in this ordinance that we do support, and others on which we do not have a position either way, which is why we are not recommending that you reject the entire ordinance, just make the changes that we have outlined in this letter.  For example, we support changes in Article 5 which provide for greater right-of-way when needed, and more consistency when designing streets. 

We also should note that county staff has agreed to certain changes to the ordinance:

  • 6.4.5.D.: Remove “whichever is greater”, to allow paving of the final surface coat of asphalt after 90 days of installation of the initial surface coat.
  •  6.5.2.B.5.a.: Consider 60 or 90 days instead of the proposed 30 days for compaction test reports.
  • 6.5.2.B.5.b.: Consider 180 days for grade depth expiration.

We also support certain changes in Article 8 that improve the engineering of catch basins under sidewalks, improving performance while reducing cost.

The regulated and regulators should work together to improve the process
I would like to note that this association has always been in support of, and has facilitated, training for engineers and developers to help improve the development process.  We have hosted these meetings in the past, and collaborated with others to facilitate them. 

We would, however, like to make the point that regulations and processes for compliance are continually changing at Greenville County.  Instead of developing processes and rules on a periodic basis, whether annually or semi-annually, we have found in recent years that a new rule is implemented frequently, as often as every month.  Some of the changes are minor, others major, but all contribute to the problem of applications that are not complete.

As a final recommendation, we urge Greenville County Council to initiate an independent review of land-use regulation, particularly development regulation, to search for ways to improve processes, communications, and customer service.  The alternative is that development will continue to move to neighboring counties, which have the same regulations but also a culture of the desire for growth.

Conclusion
There should be no doubt that increased regulation raises the cost of everything, not the least of which is the cost of housing.  And few activities are more highly regulated than home building.

And those regulations do add to the cost of housing.  Since 2000, according to the U.S. Census Bureau, the percentage of homes in the South priced at less than $200,000 went from 90 percent to 10 percent.  Let that sink in.  Fewer than 10 percent of all homes in the South today are priced below $200,000. 

The problem is, restricting growth is more popular than promoting housing affordability, particularly for citizens who have an incentive to see their home prices rise.  But even if you are a homeowner, and have concluded that your home investment is more important than someone else’s dream of homeownership, or just an affordable rent, ask yourself this question: where are my children going to live?

Land use regulations do restrict where housing development occurs.  It’s a basic business principle: locate where you are welcome.

In the first nine months of 2017, compared to 2016, the rate of growth in home building in the counties surrounding Greenville, was as follows:

  • Spartanburg County, up 21 percent 
  • Laurens County, up 33 percent 
  • Anderson County, up 17 percent 
  • Pickens County, up 76 percent

Meanwhile, Greenville County was down 5 percent.

Where are our children going to live?  Spartanburg, Laurens, Anderson, and Pickens counties.

Our Recommendation
We wish to reinforce that we are not opposed to amending and refining the Land Development Regulations.  However, as you should have concluded from this letter, this ordinance is not ready for implementation.

We recommend that Greenville County Council return this ordinance to Planning Commission with instructions to engage with the members of the Home Builders Association who have invested a great deal of their personal time in developing the current ordinance.  These professionals—engineers, developers, and other real estate development professionals—have the expertise and experience that the county needs to develop the amendments that will truly improve the Land Development Regulations in a manner that accomplishes our county’s goals for land development.

If you have any questions regarding any of these issues, please do not hesitate to contact me.

Home Builders Association of Greenville
Sincerely,

Michael E. Dey, Executive Vice President
and Chief Executive Officer

Copy:
The Honorable Willis Meadows, Vice Chairman
The Honorable Xanthene Norris, Chairman Pro Tem
The Honorable Joe Dill, Councilman
The Honorable Michael Barnes, Councilman
The Honorable Sid Cates, Councilman
The Honorable Rick Roberts, Councilman
The Honorable Bob Taylor, Councilman
The Honorable Liz Seman, Councilman
The Honorable Ennis Fant, Couniclman
The Honorable Lynn Ballard, Councilman
The Honorable Fred Payne, Councilman
Mr. Joseph Kernell, County Administrator
Ms. Paula Gucker, Assistant County Administrator for Community Planning, Development & Public Works
Mr. Mark Tollison, County Attorney

Wednesday, September 27, 2017

HBASC names Alex James Director of Government Affairs

Alex James

The Home Builders Association of South Carolina announced last month that Alex James has been named Director of Government Affairs. 

James joined HBASC in January as Government Affairs Intern.  In that position he assisted with the association's regulatory and legislative affairs programs, the Political Action Committee, and facilitated the association's hill visits in Washington DC in June.  

James is a graduate of The University of South Carolina and previously worked on several state and local political campaigns. He is the son of HBA of Charleston builder member and and past president, Doug James.

The Board of Directors and staff of the HBA of Greenville congratulate and welcome Alex to his new position.

Monday, September 25, 2017

Your HBA as working for you in Washingting (here is how)

(September 20, 2017) Ever wonder what your Home Builders Association is doing for you in Washington DC and around the country?  Below is a report of the issues on which we are engaged:

1. Canadian Softwood Lumber
  • The U.S. Department of Commerce imposed a 20% countervailing duty on Canadian lumber imports in April, and added 7% antidumping duties in June. 
  • In late August, Commerce announced a delay in the final duties to Nov. 18. This will allow more time to negotiate a settlement. Collection of countervailing duties is suspended for now, but antidumping duties will continue to be collected. 
  • NAHB is meeting with representatives with the Trump Administration and Congress as well as Canadian officials to address home builder concerns regarding price and availability of lumber. 
  • These meetings are especially important because U.S. consumers cannot participate in trade disputes, although NAHB provided witness testimony during the International Trade Commission hearing on Sept. 12. 
  • Generally, lumber prices have increased, but that may be partly due to wildfires in the Western U.S. and Canada. 
  • NAHB is urging U.S. lumber producers to increase production for domestic consumption, and working to identify alternate foreign sources of dimensional lumber. 
2. Disaster Response
  • In the aftermath of two devastating hurricanes, NAHB is working closely with state and local home builder associations in those areas to help them meet the needs of members affected by the storms. 
  • We sent out an all-member email with information on how to donate to the recovery effort. 
  • NAHB issued statements on hurricane-related advocacy. Our leadership conducted media interviews on flood-related topics, including the need for the National Flood Insurance Program (NFIP) reauthorization, building codes, rebuilding efforts and labor shortages. 
  • We updated our online Disaster Recovery toolkit with new media talking points and safety information for contractors. 
  • We added resources on hiring contractors and places to donate on our consumer Web page. 
  • We are creating resources on business continuity; hiring reputable contractors; and best practices for flood damage repair work. 
  • We will continue to reach out to the affected communities to see how to help in the rebuilding efforts. 
  • With respect to resiliency, our Resiliency Working Group issued its final report and recommendations in July. Many of the recommendations are related to disaster preparedness, resiliency, recovery and communications. 
  • The hurricanes have illustrated the importance of disaster response and planning for rebuilding, and the Resiliency Working Group will now help ensure NAHB can be a resource and problem solver after a natural disaster. 
3. Electronic Recordkeeping
  • The Occupational Safety and Health Administration’s 2015 electronic reporting rule requires certain employers to electronically submit injury and illness data that they are mandated to keep under existing recordkeeping regulations. 
  • The rule also contains anti-discrimination prohibitions to protect workers who notify an employer of a workrelated injury or illness. 
  • NAHB has concerns about several elements of the rule, including the requirements for employers to submit records electronically to OSHA that would become publicly available.  In January, NAHB and other stakeholders filed a legal challenge. 
  • On May 5, NAHB and other organizations submitted a petition to the Department of Labor (DOL) seeking a stay of implementation and enforcement of the rule, and requested OSHA re-open the rulemaking. 
  • In June, OSHA announced it was extending the filing deadline for employers to submit electronic records to December, which would give OSHA more time to review the rule. 
4. Federal Flood Risk Management Standard
  • In response to the charge led by NAHB and as part of President Trump’s Executive Order to expedite federal approval for infrastructure projects, the Administration revoked Executive Order 13690 and the Federal Flood Risk Management Standard (FFRMS). 
  • Our advocacy efforts included participating in federal listening sessions and meetings; submitting comment letters to federal agencies; and requesting that President Trump revoke it. 
  • This standard would have dramatically expanded regulated floodplain areas. 
  • However, in response to the hurricanes, the Trump Administration may establish its own flood standard. 
  • If the Administration chooses to do so, NAHB will work with the White House to develop an effective standard that does not place undue regulatory burdens on residential construction projects. 
5. Immigration
  • The H-2B Temporary Non-Agricultural Worker program allows employers who cannot find local labor for short-term or seasonal jobs to fill those positions with temporary foreign workers. 
  • There is an annual cap of 66,000 on H-2B visas issued in a fiscal year, but that cap excluded workers who had participated in the program within three years. 
  • That “returning worker exemption” expired in September 2016 and has not been renewed by Congress. 
  • In May, Congress approved a spending package for the remainder of FY 2017 that included language allowing the Department of Homeland Security (DHS) to raise the statutory cap for 2017 to allow additional visas. 
  • In July, DHS announced it would make 15,000 more visas available, but only to employers who could demonstrate that their business would suffer “irreparable harm” without H-2B workers. 
  • The next round of H-2B visas will become available on Oct. 1. NAHB hosted a free webinar to help employers learn if they qualify to apply for H-2B workers and how they can become certified employers under the program. 
  • With Congress and the Administration focused on immigration enforcement, the prospect of creating a new guest worker program to benefit builders and specialty trades is highly unlikely. 
  • NAHB continues to advocate for restoration of the returning worker exemption while looking for opportunities to expand and reform the H-2B program.
6. Low-Income Housing Tax Credit (LIHTC)
  • On Aug. 1, NAHB Chairman Granger MacDonald testified before the Senate Finance Committee on “America’s Affordable Housing Crisis.” The hearing focused on the LIHTC. 
  • Chairman MacDonald also discussed how lots and labor shortages, building material price increases and regulations affect housing affordability.
7. National Flood Insurance Program (NFIP)
  • The NFIP was extended until Dec. 8 as part of a broader legislative package. 
  • During NAHB’s Leg Con in June, builders spoke to their congressional delegations about provisions in the House Financial Services Committee’s flood insurance bill that negatively targeted new construction and grandfathered properties. 
  • NAHB was able to convince the committee’s leadership to remove those provisions. 
  • After Hurricanes Harvey and Irma, discussions about changing the program were put on hold as policymakers ensured home owners and communities had short-term certainty and financial aid. 
  • NAHB will work with Congress on long-term legislation that ensures an affordable, available, predictable and financially stable NFIP.
8. Regulatory Reform
  • President Trump has made regulatory reform one of his top priorities, and has asked each agency to evaluate existing regulations and identify ones that should be repealed, replaced or modified. 
  • We have submitted recommendations to the Environmental Protection Agency (EPA), Department of Housing and Urban Development (HUD), Federal Emergency Management Agency (FEMA), National Marine Fisheries Service (NMFS), Fish and Wildlife Services (FWS), Department of Justice (DOJ) and Department of Energy (DOE), and will soon submit feedback to the Army Corps of Engineers. 
  • NAHB will provide suggestions to DOL, OSHA and others once their notices are published. 
  • We will review the 2017 Fall Regulatory Plan and Agenda upon its release and determine if our suggestions were incorporated. 
  • The Small Business Administration (SBA) Office of Advocacy is also collecting input on regulatory reform through a series of nationwide Regulatory Roundtables; NAHB has had good representation at all roundtables to date. 
  • As part of the Cleveland roundtable, NAHB member George Davis met with SBA officials at one of his construction developments. 
  • NAHB will continue its outreach to HBAs and members as additional roundtables are announced. 
  • On August 28, NAHB testified before the SBA’s Regulatory Fairness Board about the enforcement activities of federal agencies, particularly EPA and OSHA.
9. Overtime Rule
  • Under a new rule that was set to go into effect Dec. 1, 2016, the Obama Administration doubled the annual salary level used to determine whether an employee qualifies for the professional, administrative and executive exemption to overtime eligibility from $23,660 to $47,476. 
  • Under the new rule, the salary threshold would also be automatically adjusted every three years. 
  • NAHB and many other industry groups challenged the rule in federal court. 
  • We contended that DOL went beyond its authority under the Fair Labor Standards Act to allow the salary limit to automatically be re-set every year. The Administrative Procedures Act requires these updates be made through regular notice and comment periods. 
  • In a victory for NAHB, a federal judge in Texas issued a preliminary injunction that temporarily barred the implementation of the rule. 
  • On Aug. 31, the Texas federal court held the rule was invalid and the three-year automatic increase DOL included was similarly unlawful. 
  • DOL’s appeal of the preliminary injunction is now moot and likely to be dismissed.
10. Smart Market Report
  • Preliminary findings from them Green Residential Smart Market Report show that green building activity should increase over the next few years. Approximately 60 percent of surveyed builders expect it to be a significant share of their overall activity by 2022. This is nearly double from 2014, when only 32 percent of firms reported that level of green building. 
  • Single- and multifamily home builders agree that energy efficiency and healthier indoor environments are key factors in building a green home, and have prioritized these elements in the construction process. 
  • The Smart Market report found that ENERGY STAR is more popular in the single-family market while LEED and the National Green Building Standard (NGBS) are more popular with multifamily builders. 
  • The Green Residential Smart Market Report is a biannual report released by NAHB and Dodge Data and Analytics (formerly McGraw Hill). The report reviews the history and future of green home construction in the single-family, multifamily and remodeling sectors.
11. Stormwater
  • NAHB launched an online toolkit in August to help HBAs advocate for programs that provide a clear path to compliance, reduce redundancy and meet water quality goals. 
  • The toolkit provides simple checklists that compare pros and cons of different regulatory approaches based on climate, geography, and local land use patterns. This data will help our members in conversations with state regulators. 
  • As part of the toolkit launch, NAHB released A Developer’s Guide to Post-Construction Stormwater Regulation. This report provides a state-by-state breakdown on the top permitting issues affecting builders.
12. Tax Reform
  • A team of congressional leaders and Administration officials known as the “Gang of Six” is developing a structure for tax reform, while President Trump is trying to garner nationwide support on the issue. 
  • House Speaker Paul Ryan intends to move tax reform this fall. 
  • Before Congress can address tax reform, it must pass a budget resolution to set up the procedural process known as reconciliation. This will allow tax reform to pass the Senate with only 50 votes. 
  • However, there is growing resistance in the House to passing a budget resolution before members see the Gang of 6’s tax framework. To use the reconciliation process, the House and Senate must pass identical budget resolutions, which will be challenging.
13. Waters of the U.S. (WOTUS)
  • On Oct. 11, the U.S. Supreme Court will hear oral arguments on whether the 2015 WOTUS rule should be litigated in federal trial court or the appellate court. 
  • NAHB has argued that challenges to the WOTUS rule must be first heard at the trial court. 
  • We need this clarity so we do not have to file two lawsuits when we challenge an EPA Clean Water Act regulation. 
  • Meanwhile, the EPA plans to use a two-step process to develop a new WOTUS definition. 
  • In the first step, the EPA has proposed to withdraw the 2015 WOTUS Rule and revert to the status quo. We expect the agency to finalize the withdrawal by early 2018. 
  • The EPA also plans to develop a new WOTUS rule, and will soon take comments on the proposal. 
  • NAHB is taking advantage of its unprecedented access to EPA Administrator Scott Pruitt, and is working with the agency on a new rule that is clear and limits jurisdiction of the Clean Water Act consistent with congressional intent. 
  • In August, NAHB and the Dallas Builders Association hosted a meeting with Administrator Pruitt in Dallas to voice concerns and offer insight about the new rule. 
  • NAHB and the Colorado Association of Home Builders are planning a similar meeting with Administrator Pruitt in Colorado Springs in October. 
  • In late October, NAHB will provide recommendations on a revised WOTUS definition at a business-focused in-person listening session at EPA headquarters. 
For more information about these or other Federal government affairs issues, contact Michael Dey (mdey@hbaofgreenville.com).

Friday, September 8, 2017

Congress extends flood insurance program for three months

With a September 30 deadline looming, Congress has approved a broad package that will keep the government funded until December 8, provide roughly $15 billion in disaster relief from Hurricane Harvey, and raise the debt ceiling, which sets a limit on the amount of money the federal government can borrow.

The government funding package also means that the National Flood Insurance Program (NFIP), which was set to expire on September 30, will be extended until December 8.

The National Association of Home Builders continues to work with Congress to achieve a long-term reauthorization of the NFIP that will keep the program fiscally sound and let builders provide safe and affordable housing.

NAHB to hold briefings on Federal tax reform

Dear HBA Member:

The prospect of tax reform is becoming a reality, and I expect legislative action to begin in earnest this fall. Given the importance of tax reform to the NAHB membership, we want to make certain we accurately represent your concerns in this debate.

Please participate in an online discussion with your NAHB Leadership on what tax reform means to our industry. Bring your questions and concerns: We will cover business taxes, including the deduction for business interest, homeownership incentives such as the mortgage interest deduction, multifamily tax issues including the Low Income Housing Tax Credit, and provisions affecting remodelers.

We will hold three "Tax Reform and the Housing Industry" web briefings on Monday, Sept. 18. The three 60-minute briefings each cover the same information, so you only need to attend one session. The briefings will take place at 9:30 a.m., 12:30 p.m. and 3:30 p.m, ET.

You must pre-register for this member-only event. Please make certain you are logged into nahb.org as this is members only content.

If you are unable to participate in the live webcasts, the recordings and staff contacts for more information will be posted to nahb.org after the sessions conclude.

This is an important time for the housing industry. Tax reform will shape the course of our livelihoods for the next several decades. We must get it right. Join me at one of the briefings on Sept. 18.

Granger MacDonald, Chairman, National Association of Home Builders

Thursday, August 3, 2017

Department of Labor considering revising the contested overtime rule

On December 6, 2016, the U.S. Department of Labor issued a new rule changing the salary threshold for exemption from overtime pay from $23,660 to $47,476. The rule was promptly stayed by the courts.  The National Association of Home Builders took a very active role in challenging the rule in court.

President Trump's Secretary of Labor, Alexander Acosta, testified at his Senate confirmation hearing that he would prefer a more modest salary threshold than previously proposed, one that is potentially tied to the rate of inflation.

Last month the Department of Labor issued a request for information on the overtime rule. The National Association of Home Builders will submit comments on the rule, as it did last year when the Obama Administration was considering changing the rule.

Monday, July 24, 2017

ReWa Approves New Account Fee Schedule

NAF changes apply to multifamily, mixed-use projects
Changes apply to fees paid on or after January 1, 2019


At its regular board meeting in July, ReWa approved changes and increases to New Account Fees (NAF) for mulifamily and mixed-used projects. According to ReWa staff, the new fee schedule better assesses the cost of serving these larger developments, particularly mixed-use developments that include commercial activities.

The new fee schedule does not impact single-family residential developments.

Your home builders association was consulted on the proposal before it was submitted to the ReWa board.

New Account Fees for Multifamily and Mixed-Use ProjectsAll new account fees are currently based on meter size; however, this creates an inequity among customer classes. To address this inequity, ReWa will assess multi-family and mixed use new account fees based on the estimated daily wastewater flows as provided by the South Carolina Department of Health and Environmental Control Regulation 61-67, Appendix A-Unit Contributory Loadings to All Domestic Wastewater Treatment Facilities (UCL). The estimated daily wastewater flow would be multiplied by the capacity cost per gallon of $8.33, which is based on the current new account fee of $2,500 for single-family homes with a 5/8” meter divided by the 300 gallons capacity per day per the UCL.

The table below shows the flow and the respective proposed new account fees for multi-family housing per unit.


Multi-Family Housing
Flow (gpd)

NAF
Three (3) Bedrooms (Per Unit)
300
$2,500
Two (2) Bedrooms (Per Unit)
225
             $1,875
One (1) Bedrooms (Per Unit)
150
$1,250


The table below presents a sample multi-family housing new account fee calculation using the proposed methodology.
Sample Multi-Family Housing
Units
Flow (gpd)
Cost per Gal. per day
NAF
Three Bedroom Apartments
10
3,000
$ 8.33
$  25,000
Two Bedroom Apartments
50
11,250
8.33
93,750
One Bedroom Apartments
30
4,500
8.33
37,500
Total New Account Fee
90


$  156,250

When the multi-family housing project is submitted to ReWa’s engineering department for review, the number of residential units and associated number of bedrooms per unit will need to be clearly identified on the plans and shown in the design calculations. In cases where the bedrooms are unknown, ReWa will charge a $2,500 per unit fee and when the bedrooms are confirmed, the developer or engineer may request a refund, if applicable. The table below shows a sample mixed use property new account fee calculation using the proposed methodology. 
Sample Mixed Use Property
Units
Flow (gpd)
Cost per Gal. per day
NAF
Two Bedroom Condos
12
2,700
$ 8.33
$  22,500
Restaurant w/ 75 Seats
1
2,250
8.33
18,750
Office / Retail w/ 15 Employees
1
285
8.33
2,375
Total New Account Fee
14


$  43,625








When a mixed use project is submitted, in addition to identifying the residential units, commercial sites along with their projected use should also be identified on the plans. In cases where specific tenant information is not known at the time the project is submitted, the developer is to submit his best guess for the tenant and the applicable UCL. Prior to occupancy, the developer or engineer is to coordinate with ReWa’s engineering department to ensure that the original plans and fees submitted still match what is actually in place. At this time, if applicable, ReWa would refund fees or the developer would pay additional fees.

The effective date for these changes is January 1, 2019. Fees on developments previously approved but not yet paid at January 1, 2019 will be calculated based on the above methodology.