CONGRESS EXTENDS ENERGY EFFICIENT HOMES TAX CREDIT

Congress has extended the $2,000 tax credit for builders who build energy efficient homes by a bipartisan vote (89-8 in the Senate and 257-167 in the House). The legislation changed the base of the tax credit from the 2003 to the 2006 International Energy Conservation Code.

The legislation extends the credit from January 1, 2012 through December 31, 2013 and retroactively to January 1, 2012. The credit had previously expired on December 31, 2011.  The extension of the energy efficient tax credit is contained in Section 408 of the legislation. To download the legislation, click here:  American Taxpayer Act.

The legislation also extended the tax credit for homeowners to purchase qualified products to improve the energy efficiency of their existing homes.  This is a significant achievement considering the political stalemate that has existed in Washington. It also demonstrates that there is wide bipartisan policy support for high performance homes.

The HBA is planning a Builder Forum or an in-house seminar on this topic in the next few weeks.  More information will be provided to members via email.

Hearts for Habitat

Habitat for Humanity Grand Traverse Region is growing and we need you.  On February 9, 2013, we will host our “Hearts for Habitat Fundraiser” at the Hagerty Center (previously held at The Williamsburg Dinner Theater).  This is our annual fundraising event supported by both Traverse Area Association ofRealtors and Home Builders Association.

This will be an evening of fun and friends!  Enjoy chef selected hors d'oeuvres, win an item at our fabulous silent and live auctions, entertainment by Traverse City's own singer/songwriter, Levi Britton. Take your chance at selecting a key that may open a treasure of prizes or remember your evening with a funny photo at our own photo booth!

Location: NMC Hagerty Center, 715 E. Front Street, Traverse City

Date: Saturday, February 9, 2013, 6:00pm - 9:00pm

Tickets: $40 per person

Available online at www.habitatgtr.org, mynorthtickets.com, or in person at the Habitat Office located at 1129 Woodmere Avenue, Traverse City.

 

Many thanks to our sponsors:  Thompson Pharmacy and Critter Control

For more information, please contact Lee Perry at 642-1951 or the Habitat office directly at 941-4663 with questions, donations, sponsorships and more!

FLEX BILL PASSES - CODE REVIEW BEGINS IN MARCH

PA 504 places the Michigan Residential Code on a flexible code adoption cycle. Currently the residential code and the energy requirements found in chapter 11 of the residential code must be updated every three years whether such an update is needed or not.

Commencing with the 2015 national code change cycle the residential code will shift to the flexible code cycle found in the bill. The process of updating the 2009 Residential Code, including the residential energy efficiency requirements found in Chapter 11 of the residential code, by adding, amending or rescinding rules will begin by March 27, 2013. This is the same process the state has used in for previous code updates. Updates to the commercial codes began last year.

PA 504 also prevents the adoption or enforcement of any new or existing code, including the new International Green Construction Code, which is not already listed in the Single State Construction Code Act. In order for a new, unlisted code to be promulgated and enforced, the Legislature must first pass a bill and the Governor must sign that bill adding the code to the list found in the Single State Construction Code Act. This requirement does not apply to codes, such as the residential code, already listed in the law. It also prevents the substitution of an unlisted code for a code named in the law which was the subject of the administrative procedures lawsuit filed by the association in 2005.

Lee Schwartz

Executive Vice President for Government Relations
Home Builders Association of Michigan-HBAM

TAX CREDIT APPROVED

On December 27, 2012 the Governor signed House Bill 4134 (now Public Act 494 of 2012) and House Bill 4561 (now Public Act 504 of 2012) into law. The new laws take effect immediately.

PA 494 removes the 18-mill school tax on new residential construction on development property for three years or until the new construction was no longer located on development property, whichever occurs first. The exemption would apply for taxes levied after November 1, 2012.

"Development property" means real property on which a residential dwelling, condominium unit, or other residential structure is located, if the dwelling, unit, or structure meets all of the following conditions:
1. Is not occupied and has never been occupied.
2. Is available for sale.
3. Is not leased.
4. Is not used for any business or commercial purpose.

"New construction" means property not in existence on the immediately preceding tax day and not replacement construction. The exemption will apply for taxes levied after November 1, 2012.

That’s a property tax reduction of $1,800 for every $100,000 in taxable value on your inventory home or 20 times the $90 annual dues you pay to the state association.

To claim an exemption under subsection (1), an owner of development property must file an affidavit claiming the exemption with the local tax collecting unit on or before June 1 for the immediately succeeding summer tax levy and all subsequent tax levies or on or before November 1 for the immediately succeeding winter tax levy and all subsequent tax levies. The Michigan Department of Treasury is currently designing the affidavit form. HBAM will let you know when the form is available

Lee Schwartz
Executive Vice President for Government Relations
Home Builders Association of Michigan-HBAM

ANSI Approves Next Generation of the ICC 700 National Green Building Standard

FOR IMMEDIATE RELEASE

Contact: Liz Thompson

202-266-8495

ethompson@nahb.org


www.nahb.org

ANSI Approves Next Generation of the ICC 700 National Green Building Standard

Notable Changes Impact Energy Requirements and Scoring of Remodeling Projects

WASHINGTON, Jan. 11--The National Association of Home Builders (NAHB) and the International Code Council (ICC) applaud the recent approval of the 2012 ICC 700 National Green Building Standard[tm].

In 2007, NAHB and the ICC partnered to establish a nationally-recognizable standard definition of green building. The resulting ICC 700 National Green Building Standard is the first and only residential green building rating system to undergo the full consensus process and receive approval from the American National Standards Institute (ANSI). This is the first time the standard has undergone Consensus Committee review and update since it was published in 2009.

"The introduction of the 2012 National Green Building Standard is a huge deal for our industry," said NAHB Chairman Barry Rutenberg, a home builder from Gainesville, Fla. "Not only does the updated version raise the bar on energy efficiency requirements, but it also completely revolutionizes how renovations and remodeling projects are treated under the standard. The 2012 updates make the standard easier to understand and implement, and we expect that this will certainly help to build upon the momentum we are already seeing in green building across the residential building industry."

To date, the standard has been widely implemented throughout the industry. The NAHB Research Center, which serves as the secretariat of the standard as it progresses through ANSI, has certified the compliance of thousands of dwelling units and developed lots to the ICC 700. Dozens of regional and local green initiatives refer to the standard within their program criteria and the International Green Construction Code (IgCC) requires compliance with the ICC 700 if a jurisdiction chooses to regulate residential buildings four stories or less in height.

"ANSI's approval of the 2012 ICC 700 National Green Building Standard reinforces the quality and transparency of the process used to develop this important standard for constructing green residential buildings across America," said International Code Council Board President Ronald Piester and CEO Dominic Sims in a joint statement. "We are proud to develop the codes and standards that ICC and NAHB Members use to guide the construction of safe, sustainable and affordable homes, and provide an opportunity for ICC Members to play a vital role in this important undertaking."

The new version of the standard includes several important changes including:

· Energy Code Update: While the original ICC 700 used the 2006 version of the International Energy Conservation Code (IECC) as a basis, the new version will use the 2009 IECC. The requirements of the 2009 IECC are estimated to result in energy efficient performance that is about 15 percent higher than the previous 2006 code.

· Restructured Scoring for Remodeling: The new version completely revamped the scoring for renovations and remodeling projects. The revised standard includes two entirely new chapters devoted to existing building projects. The first provides criteria for entire buildings and includes requirements for improved energy and water efficiency that increases as higher levels of compliance are sought. The second provides a green protocol for the most common renovation and addition projects that focus on functional areas of a home such as a kitchen, bathroom, basement, or addition under 400 square feet.

· Incentives for Development and Lot Design: The 2012 ICC 700 includes the addition of a new scoring opportunity for those choosing the build lots in green communities. In the new version, six points can be earned in the Lot Design, Preparation and Development chapter for choosing lots in developments that have been certified to ICC 700 or an equivalent program. In the previous version of the standard no such incentives were provided.

On Wednesday, Jan. 23, "Green Day" at the International Builders' Show in Las Vegas, NAHB and the ICC will release additional information on what changes the 2012 standard entails. Attendees of the show can hear the details during a press conference at 9:30 a.m. that day.

The standard will be available for order on January 23 at www.BuilderBooks.com.

For more information on the 2012 ICC 700 National Green Building Standard, please visit www.nahb.org/nahbgreen.

Statement from NAHB Chairman Barry Rutenberg on Qualified Mortgage Rules

FOR IMMEDIATE RELEASE

Contact: Paul Lopez

202-266-8409

plopez@nahb.org


www.nahb.org

Statement from NAHB Chairman Barry Rutenberg on Qualified Mortgage Rule

WASHINGTON, Jan. 10 - Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla., today issued the following statement regarding the Consumer Financial Protection Bureau's newly-released standard on the definition of a qualified mortgage (QM) which addresses the borrower's ability to repay a home loan:

"We appreciate the hard work the Consumer Financial Protection Bureau has put into this effort to create a qualified mortgage standard that ensures home buyers have access to affordable mortgages, contains strong consumer protections and provides lenders proper incentives to make home loans to creditworthy borrowers.

"The qualified mortgage rule stipulates that borrowers must be able to repay home loans issued to them and will set the parameters for all mortgage financing going forward. So it is essential that it strikes the proper balance that encourages lenders to provide creditworthy borrowers access to affordable home loans, and also gives assurances to financial institutions that they will be protected from lawsuits if they meet the criteria set forth in the rules.

"Our initial review of the QM rule indicates that this balanced approach can be achieved. NAHB is encouraged that regulators heeded concerns from the housing industry to craft a broad standard that includes many of today's sound mortgage products, including fixed-rate and adjustable-rate mortgages, under the QM standard.

"The rule will take effect next January. To spur the revival of the home lending market, it is essential that regulators act prudently and thoughtfully in the coming year to implement this rule in a sensible manner to avoid disruptions to the housing finance system and ensure qualified borrowers can obtain affordable credit."

#####

ABOUT NAHB: The National Association of Home Builders is a Washington-based trade association representing more than 140,000 members involved in remodeling, home building, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing and other aspects of residential and light commercial construction. NAHB is affiliated with 800 state and local home builders associations around the country. NAHB's builder members will construct about 80 percent of the new housing units projected for this year.

Governor Snyder has signed the two top legislative priorities of the Home Builders Association of Michigan into law!

On December 27, 2012 the Governor signed House Bill 4134 (now Public Act 494 of 2012) and House Bill 4561 (now Public Act 504 of 2012) into law. The new laws take effect immediately.

PA 494 removes the 18-mill school tax on new residential construction on development property for three years or until the new construction was no longer located on development property, whichever occurs first. The exemption would apply for taxes levied after November 1, 2012.

"Development property" means real property on which a residential dwelling, condominium unit, or other residential structure is located, if the dwelling, unit, or structure meets all of the following conditions:
1. Is not occupied and has never been occupied.
2. Is available for sale.
3. Is not leased.
4. Is not used for any business or commercial purpose.

"New construction" means property not in existence on the immediately preceding tax day and not replacement construction. The exemption will apply for taxes levied after November 1, 2012.

That’s a property tax reduction of $1,800 for every $100,000 in taxable value on your inventory home or 20 times the $90 annual dues you pay to the state association.

To claim an exemption under subsection (1), an owner of development property must file an affidavit claiming the exemption with the local tax collecting unit on or before June 1 for the immediately succeeding summer tax levy and all subsequent tax levies or on or before November 1 for the immediately succeeding winter tax levy and all subsequent tax levies. The Michigan Department of Treasury is currently designing the affidavit form. We will let you know when the form is available

PA 504 places the Michigan Residential Code on a flexible code adoption cycle. Currently the residential code and the energy requirements found in chapter 11 of the residential code must be updated every three years whether such an update is needed or not.

Commencing with the 2015 national code change cycle the residential code will shift to the flexible code cycle found in the bill. The process of updating the 2009 Residential Code, including the residential energy efficiency requirements found in Chapter 11 of the residential code, by adding, amending or rescinding rules will begin by March 27, 2013. This is the same process the state has used in for previous code updates. Updates to the commercial codes began last year.

PA 504 also prevents the adoption or enforcement of any new or existing code, including the new International Green Construction Code, which is not already listed in the Single State Construction Code Act. In order for a new, unlisted code to be promulgated and enforced, the Legislature must first pass a bill and the Governor must sign that bill adding the code to the list found in the Single State Construction Code Act. This requirement does not apply to codes, such as the residential code, already listed in the law. It also prevents the substitution of an unlisted code for a code named in the law which was the subject of the administrative procedures lawsuit filed by the association in 2005.

Look for more information on these and other 2011-2012 accomplishments in next week’s edition of NEWSWIRE.
Lee Schwartz
Executive Vice President for Government Relations
Home Builders Association of Michigan