NAHB Now: Key Housing Issues

KEY

NAHB Housing Issues

1.NAHB’s tireless efforts to work with the White House, Congress, and lumber producers to increase production and bring prices lower are showing some positive results but the fight is far from over.

2. NAHB’s recent legal victory in the U.S. District Court for the Northern District of Ohio means that the CDC’s federal eviction moratorium has been set aside for all members. However, the eviction moratorium may still apply to landlords who are not NAHB members.

3. President Biden’s broad COVID-19 relief package contains several provisions to help our members, including $175 billion in low-interest loans for small businesses, $15 billion in grants to small businesses and an additional $25 billion in rental assistance to help renters and landlords.

4. Recruiting is the lifeblood of the Federation. Please participate in NAHB’s “ONE in 21” campaign to recruit at least one new member this year.

5. NAHB members are invited to sign a Diversity, Equity and Inclusion compact to enhance a diverse and inclusive membership that represents all communities that seek the American dream of homeownership.

Lumber Prices

• NAHB’s tireless efforts to work with the White House, Congress, and lumber producers to increase production and bring prices lower are showing some positive results but the fight is far from over. • Though still far too high, framing lumber prices are down nearly 50 percent from their peak in May and prices are down even further on the futures market. • Part of the reason for this positive development is because that

NAHB has owned this issue. • For the past year, we have been the leader in educating the public and policymakers about how rising lumber prices are harming home builders, home buyers and the economic recovery. • NAHB leaders have appeared on CBS This Morning and numerous times on Fox Business News. We have also been featured in

Bloomberg, CNN Business, Fortune, CNBC, and scores of other local media outlets across the nation calling for action to address rising prices and supply shortages. • Overall, on the media front, we have earned more than $50 million in media coverage, with over 11,000 stories featured in national and local news. Effectively, we got $50 million in national publicity for free rather than having to pay for it. • In the policy arena, we have reached out to virtually every member

of Congress on this issue and held talks with top White House officials and Commerce Secretary Gina Raimondo. • Thanks to the outreach of NAHB and our grassroots, several House and Senate leaders have openly raised the issue of soaring lumber prices and housing affordability with Secretary Raimondo and U.S.

Trade Representative Katherine Tai. • In fact, Secretary Raimondo addressed the NAHB Leadership

Council on June 28 and said that “supply chain disruptions are at the top of my mind.” • The secretary told NAHB she will conduct a summit with all interested stakeholders to address supply side constraints and to find solutions to keep this from happening again.

Not Out of the Woods Yet

• Despite these positive developments, it is far too soon to claim victory. • Last November, lumber prices fell quickly from the summer peak only to abruptly reverse course and soar to new heights. Now, we need to be sure that the drop in prices that began in late May continues. • Moreover, one factor in this recent price decline is because demand is falling to meet supply instead of supply rising to meet demand. • In other words, many builders are delaying or even canceling projects to wait for lumber prices to decline to reasonable levels. • And countless builders who are moving full steam ahead have not been able to take advantage of the recent decline in lumber prices because producers are still selling off lumber that they purchased from the mills when prices were at their peak. • So, when buyers read that lumber prices are coming down, builders need to educate them about this price lag.

Moving Forward

• Looking ahead, our focus is not limited to only lowering lumber prices and increasing supply. We are putting pressure on policymakers to improve supply chains for all building materials in order to protect housing affordability. • While lumber costs have come down in recent weeks, they are still more than 120 percent higher than a year ago. And OSB prices are up more than 380 percent over the last year. • The NAHB advocacy team – Government Affairs, Communications,

Economics and Legal – continues to work doggedly on all fronts to find solutions that will ensure a lasting and stable supply of lumber and other building materials for the home building industry at competitive prices. • Learn more about what NAHB is doing to resolve the lumber crisis

• In an important example of the value of membership, NAHB scored a major legal victory in March that sets aside the federal CDC eviction moratorium for all NAHB members nationwide. • On March 10, the U.S. District Court for the Northern District of

Ohio ruled that, by issuing an eviction moratorium, the CDC exceeded the authority granted to it by Congress. NAHB brought the lawsuit as a plaintiff on behalf of its members and we were the only association to do so. • As a result of this ruling, the CDC eviction moratorium is currently set aside with respect to all NAHB members nationwide who were members of the association as of Oct. 23, 2020, when the case was filed. • However, the eviction moratorium may still apply to landlords who are not NAHB members and those who became new members of

NAHB after Oct. 23, 2020. Moreover, NAHB members must still comply with state or local eviction restrictions. • The reason the decision was set aside for all NAHB members across the nation and not all landlords is because NAHB was a plaintiff in the case and we had “representational standing.” • This means NAHB was acting as a representative of its members who have been impacted by the moratorium. When an association wins a case like this, the decision applies to all its members. • This victory for all NAHB members shows how our association is working on behalf of our entire federation and producing concrete results to help your businesses and our industry. • And while this is an important win, NAHB continues to urge members to seek access to the $46.5 billion of rental funding through the Emergency Rental Assistance Program via your local government and housing authorities. NAHB has always stated that the best way to help all parties is through emergency funding and not moratorium mandates. • Finally, with the CDC eviction moratorium set to expire on March 31, the agency moved to extend the eviction freeze through June 30, 2021. In late June, the CDC said it would extend the moratorium one final time through July 31, 2021. Given the district court’s ruling on March 10, this eviction moratorium extension should not apply to NAHB members. • For more information, view NAHB’s FAQ on the CDC eviction moratorium at nahb.org.

Biden’s stimulus plan will help housing

• While the end of the year relief package was a positive development, more needs to be done to help small business owners and keep the economy moving forward. • Millions of Americans remain underemployed or unemployed, millions of small businesses still require economic relief and millions of mom-and-pop landlords have not been receiving rent payments for months, threatening their economic livelihoods. • The Biden COVID-19 relief bill signed into law on March 11 includes additional funds for small businesses, rental assistance, school reopenings, nationwide coronavirus vaccine delivery, and state and local governments -- which are critical to help many of our members and get the economy back on track. • The new law will leverage $35 billion in government funds into $175 billion in low-interest loans for small businesses. It also includes $15 billion in grants for small businesses. An additional $25 billion is targeted to rental assistance to help renters and landlords. • This is why NAHB supports the Biden relief package, though we recognize the COVID relief package is far from perfect. • Regarding aid to state and local governments, this provision is a net plus for members. Without federal aid, critical government services such as planning approvals, building permits and timely • NAHB’s “ONE in 21” campaign asks members to help recruit and retain at least one member this year. • Membership matters, and everybody can make an impact. Visit the retention tips and resources web page to get started on your Retain

ONE effort. • You’ll find sample outreach materials and advice from HBAs with top retention rates. • Make a difference – be a part of “ONE in 21.”

Diversity, Equity, and Inclusion Compact

• NAHB’s Diversity, Equity and Inclusion Task Force was created in 2020 to establish best practices for developing policies to enhance a diverse and inclusive membership that represents all communities that seek the American Dream of homeownership. • NAHB’s goal is to have a membership that accurately reflects the diverse communities in which we live and work. We want to improve the culture by ensuring a welcoming environment where every person can thrive in this industry and create a successful and rewarding career. • The task force recently created a DEI Compact based on five guiding principles designed to foster and cultivate an association culture that promotes and encourages diversity, equity, and inclusion as a foundation of a strong NAHB Federation. • NAHB members, affiliated home builders associations and industry professionals are invited to demonstrate their commitment to

NAHB’s DEI initiatives by signing an electronic version of the NAHB

DEI Compact. • Adding your signature to the DEI Compact is voluntary and illustrates you also affirm the principles it outlines. • You can learn more, read the DEI Compact and sign your name at nahb.org/dei.