Page 8 - Builder Brief October 2023

2023 PRESIDENT
OUR INDUSTRY'S SUCCESS DEPENDS ON ALL OF US!
This month, I want to give you a brief update on several critical issues. On September 26th, the National Association of Home Builders (NAHB) sent a letter to Congress urging them to extend the National Flood Insurance Program (NFIP) before it expires on September 30th to avoid immediate and widespread impacts on property sales, home values and consumer confidence.
Any lapse of the NFIP will leave millions of Americans at risk and disrupt the purchase of flood insurance in more than 20,000 communities across the United States, impacting an estimated 1,300 property sales each day. If the program expires, the government will have no authority to provide new flood insurance contracts until it is reauthorized. This will delay all new home sales and insurance renewals for property owners who have federally backed mortgages for homes that lie in a Special Flood Hazard Area.
While NAHB continues to aggressively pursue all avenues to extend the NFIP, our builder members need to be aware that even a short-term disruption to the NFIP will force delays — and in some cases, cancellations — to home sales that require the homeowners to have federal flood insurance under the NFIP. We will keep you apprised of what is happening with the program.
The Internal Revenue Service also published and released the Updated Guide on the 45L Tax Credit for Energy Efficient Homes on September 28th. The 45L tax credit is allowed to an eligible contractor, builder or remodeler that constructs a home that meets the energy savings requirement of the tax credit. The applicable amount of the credit is contingent on which set of energy-saving requirements the home meets and is $500, $1,000, $2,500 or $5,000.
The good news for our members is that the energy-saving requirements of the 45L tax credit incorporate certain ENERGY STAR program requirements and certain zero-energy ready home program requirements.
There is also movement on the Homeowner Energy Freedom Act, legislation that would repeal a section of the Inflation Reduction Act that provides $1 billion to pressure state and local governments to adopt costly andrestrictiveenergycodes. Iwroteinapreviousarticlethemagnitudethat these costly energy codes will have on housing affordability.
Adoption of the 2021 International Energy Conservation Code can cost a home buyer as much as $31,000 in additional costs and can take as long as 90 years for homeowners to see a payback from these investments. GSABA supports the adoption of cost-effective, modern energy codes, but we oppose the current law that pressures state and local governments to adopt costly and restrictive energy codes to qualify for federal grants. These grants will exacerbate the current housing affordability crisis and limit energy choices for consumers. NAHB has worked tirelessly for our members on the Homeowner Energy Freedom Act passed in Congress.
NAHB also continues to weigh in on the Waters of the United States (WOTUS). Since the EPA and U.S. Army Corps of Engineers released their amended 2023 (WOTUS) rule, the public and Corps districts have struggled
SHAD SCHMID
to receive guidance and clarity on what a “relatively permanent” waterbody and “continuous surface connection” mean.
This confusion and uncertainty regarding what waters are subject to federal jurisdiction allows for continued federal overreach, bureaucratic delays during the wetlands permitting process, and regulatory confusion for our builders and land developers.
NAHB has been weighing in with the EPA and the U.S. Army Corps of Engineers and they sent a letter the last week of September calling on the agencies to provide immediate guidance to its field staff and the general public on the new rule to ensure clarity and action. NAHB has asked them to expedite approvals for jurisdictional determinations and Clean Water Act 404 permits based on an approved jurisdictionaldetermination. Thereisalotgoingon that impacts the residential construction industry.
We need your support. GSABA is hosting our 3 PAC Fundraising event on Thursday, October 12th at the San Antonio Gun Club. This event supports not only our local PAC but the Texas Association of Builders HOMEPAC and NAHB’s BUILDPAC. We have several elected officials attending. Congressman Henry Cuellar will attend the event along with other local, state, and national elected officials. This is one of our most important events of the year. Your personal contribution to GSABA’s San Antonio Builders Political Action Committee (SABPAC) will truly make a difference.
Sincerely,
8 OCTOBER 2023 | GREATER SAN ANTONIO BUILDERS ASSOCIATION