Celebrating victories: the NAA/NMHC joint legislative program reports on its major legislative and regulatory accomplishments from 2005.

Following is a list of accomplishments achieved in 2005 in which NAA/NMHC played a major role.

LEGISLATION

Secured Passage of Bankruptcy Reform Legislation. After an eight-year effort to remove a loophole from the U.S. Bankruptcy Code that allowed renters to abuse the system, NM/NMHC achieved their goal on April 20, when President Bush signed into law the Bankruptcy Abuse Prevention and Consumer Protection Act (PL 109-08).

The revised law prevents residents from using a last-minute bankruptcy filing to avoid eviction by allowing property owners to continue eviction if they had obtained a judgment of possession before the bankruptcy petition was filed. It also expedites evictions where residents recently damaged the property or used illegal drugs. The law went into effect on Oct. 17.

Secured Two-Year Extension of Federal Terrorism Insurance Legislation. NM/NMHC successfully lobbied for a two-year extension of the expiring 2002 Terrorism Risk Insurance Act. This was a top priority to avoid a repeat of the post-September 11 environment when lenders demanded terrorism coverage, which was largely unavailable or exorbitantly priced.

Secured Legislation to Minimize the Effect of Class Action Lawsuits for Mold, Rental Fees and Other Issues. After several years of negotiations and failed attempts to pass Congress, on Feb. 18, President Bush signed into law the Class Action Fairness Act of 2005 (PL 109-14). Class action lawsuit reform was a top priority for the apartment industry given the rise in class action lawsuits targeting apartment firms for such issues as mold and rental fees. In addition to making it easier for firms to transfer multi-state class action suits from state court to federal court, the new law also: provides for judicial review and approval of non-cash settlements; limits attorneys' fees; prohibits settlement agreements that provide class members near the presiding court with larger payments; and prohibits settlements that would grant a greater share of an award to a class representative.

Led Hurricane Katrina and Rita Relief Efforts. Amid much of the confusion that reigned in various federal agencies in the aftermath of Hurricane Katrina, NAA/NMHC quickly identified the federal regulatory barriers that prevented some affordable housing communities from taking in evacuees. NAA/NMHC's efforts were hailed by lawmakers at a Congressional invitation-only roundtable as a model for other groups to follow. On Sept. 9, the Internal Revenue Service authorized states to temporarily waive several requirements for Low-Income Housing Tax Credit communities. At NAA/NMHC's urging, in December, Congress passed legislation making it easier for owners of tax-exempt bond communities to rent to hurricane evacuees by allowing property owners to rely on evacuee representations to determine whether they meet income eligibility requirements. Both houses of Congress also approved measures temporarily waiving Section 8 program requirements to open more housing. After extensive media coverage generated by NAA and NMHC of FEMA's failure to take advantage of apartments as a resource to house hurricane victims, FEMA agreed to change its post-disaster housing strategy. Ongoing efforts are being pursued with Congress and relevant federal agencies to further improve efforts to find suitable housing for the 600,000 homeless evacuees.

Blocked Implementation of Onerous "Do Not Fax" Regulations. As part of a broad coalition, NAA/NMHC secured passage of legislation that is critical to any business that uses faxed communications. The Junk Fax Prevention Act of 2005, (PL 109-76) signed into law on June 28, overturned a 2003 Federal Communications Commission regulation that would have required all businesses and organizations to collect written consent forms before sending out any unsolicited commercial faxes, even if they were sending faxes to customers or association members.

Blocked Section 8 Reform Legislation. For the third consecutive year, NAA/NMHC prevented HUD from weakening the Section 8 voucher program by turning it into a state block grant program. NAA/NMHC continue to be the leading voices for the apartment sector as Congress once again considered changes to this important program. In March, NM/NMHC participated in a Congressional invitation-only roundtable and a national summit on the Section 8 program. In May, NAA/NMHC testified before the U.S. House of Representatives on the reform measure and explained that the proposal actually creates new obstacles that would discourage apartment owners from participating in the program.

Blocked Several Homeownership Incentives.

NAA/NMHC's five-year effort to advocate for a more balanced housing policy produced meaningful results in 2005. After failing to pass a widespread federally insured zero-downpayment program in 2004, lawmakers were forced to introduce a greatly scaled back pilot program in 2005. In stark contrast to last year's hearings on the issue, and thanks, in part, to extensive information from NAA/NMHC documenting the human and financial costs of rising foreclosure rates and the damage a "homeownership at any cost" housing policy is having on communities, many lawmakers were skeptical of the proposal. As a result of that skepticism, Congress has not been able to pass the smaller pilot program either.

Increased Membership in the Congressional Real Estate Caucus. Membership now stands at 102 up from 82 members of Congress at the beginning of 2005.

REGULATION

Overturned Adverse Sprinkler Ruling. A major victory was secured when the International Code Council's Appeals Board voted to overturn a controversial ruling that would have limited the ability of apartment builders to use the less expensive NFPA 13R sprinkler system in four-story buildings with apartments in the basements.

Secured Building Codes Accessibility Safe Harbor Designation. NAA/NMHC were instrumental in securing HUD approval of the 2003 edition of the International Building Code as a "safe harbor" status for compliance with the federal Fair Housing Act's accessibility requirements. This means that builders who develop communities to the 2003 IBC codes can be confident that they have also complied with federal accessibility requirements.

Stopped New Mandatory Access Telecom Efforts in Key States. Leading an effort by the Real Access Alliance, NAA/NMHC filed briefs and key reports in Florida and North Carolina that have succeeded in stopping efforts by either the legislature or regulatory commission to impose new mandatory access laws on apartment communities.

Achieved Supreme Court Victory on Affiliated Entities and Partnerships. NAA/NMHC helped achieve a significant victory for the apartment industry when the Supreme Court ruled that firms operating in multiple jurisdictions through affiliated entities, including limited partnerships, can continue to transfer cases from state to federal courts under federal "diversity of jurisdiction" provisions instead of having to defend themselves in state and local courts. NAA/NMHC persuaded the real estate industry to support the case and filed a "friend of the court" brief in support of the apartment firm. The Supreme Court's opinion prevents unnecessary and costly litigation in state courts and preserves the ability of affiliated entities to conduct business in multiple jurisdictions, manage liability and avoid frivolous litigation.

PUBLIC RELATIONS 

Launched a Pro-Apartment Ad Campaign. NAA/NMHC launched a six-ad campaign titled "Because Not Every Home Is a House" to challenge the often unquestioned notion that homeownership alone can solve the most pressing housing and community development challenges. The ads ran monthly in Capitol Hill's widely read Roll Call newspaper.

Joined Forces with Sierra Club and Urban Land Institute in Outreach Program to Encourage Higher-Density Development. Initiated a unique collaborative effort to produce a "Re-Thinking Density" education effort. Produced two freely available and visually compelling scripted PowerPoint presentations and a narrated DVD that explain "what's in it for me" by showing how higher-density, mixed-use development can reduce traffic, reduce taxes, fight pollution, preserve green space, improve the local economy and improve quality of life. A companion book, "Higher-Density Development: Myth and Fact," debunks eight typical misconceptions about higher-density development.

Secured High Profile Pro-Renting Articles. NAA/NMHC's media outreach on the benefits of renting over buying also produced huge benefits for apartment owners. In 2005, several high-profile articles recommended renting over buying, including stories in The Wall Street Journal, The Economist magazine and CNN/Money.

Gained Valuable Allies in the Balanced Housing Policy Initiative. NAA/NMHC's Balanced Housing Policy initiative was greatly enhanced in 2005 when several prominent organizations published research echoing NAA/NMHC's concerns that the nation's aggressive homeownership incentives are dangerous. They include Harvard University, the Center for Economic and Policy Research, the National Low Income Housing Coalition and others. NAA/NMHC published a new white paper, "Pushing Back on Homeownership," that summarizes all of this research in one place for policymakers and housing advocates.

Accomplishments through Dec. 31, 2005.