On December 28, 2017, the National Association of Home Builders’ (NAHB) Public Affairs Committee Chair Skip Howes and Membership Committee Chair Sonny Antonio sent a letter to area chairs, state representatives, state and local home builders association (HBA) presidents, HBA executive officers, senior life directors, life directors and spikes to update NAHB members on several ongoing advocacy efforts.
The letter addressed the following:
- The recent tax reform bill
- The factors that make up a home’s final sales price
- The National Labor Relations Board (NLRB)’s decision to overturn its 2015 Joint-Employer ruling
- The Department of the Interior’s reversal of an Obama-era policy that subject private landowners, including home builders, to federal prosecution under the Migratory Bird Treaty Act
- Meeting of the Members at the International Builders’ Show on January 10
- NAHB Officer Installment on January 11
- NAHB’s new Bringing Housing Home™ program
First, the chairs expressed support for the recent tax reform bill. “The tax reform bill signed into law on December 22 will provide tax relief for hard-working families and create a more favorable tax climate for small business[es],” the letter said. “NAHB achieved significant victories in the bill, such as the real estate exception to the business interest deduction, second homes, private activity bongs, the capital gains exclusion and many other provisions.”
The chairs also released data related to the cost of constructing a home and how this affects final sales price and affordability. A recent NAHB home builders survey revealed that construction costs make up 55.6 percent of an average new home’s final sales price. Lot costs account for 21.5 percent, overhead and general expenses represent 5.1 percent, sales and commission make up 4.1 percent and financing costs take 1.8 percent of the final sales price.
Thirdly, the National Labor Relations Board’s (NLRB) vote to overturn the 2015 ruling in the Browning-Ferris Industries case, the chairs reasoned, allowed the NLRB to “restore[d] the traditional definition of joint employment in which a company much exercise ‘direct and immediate’ control over a worker in a business-to-business relationship.”
Learn more about the MBTA reversal on www.NAHBnow.com.
The NAHB will also conduct Bringing Housing Home™ in 2018. The program will include in-district meetings with members of Congress to discuss important issues affecting the home building industry. The program will take place from April 30 to May 5. Learn more during IBS at the NAHB HQ Booth W4842 or contact Karl Eckhart by calling 202-266-8319.
Become a member of NAHB and gain access to valuable education, networking and advocacy opportunities by visiting www.NAHB.org.