Environment.

The 109th Congress is expected to consider a number of environmental issues with significant implications for the real estate industry. Comprehensive energy legislation will remain a top priority, as well as issues related to indoor air quality.

In addition, the apartment industry continues to face new regulatory requirements from previously enacted laws in the area of wetlands, endangered species and brownfields. NAA/NMHC will be closely monitoring both the regulatory and legislative developments that significantly affect apartment owners/managers and developers.

Mold

NAA/NMHC Position: NAA/NMHC continue to work at both state and federal levels to advance a legislative agenda on mold that is both reasonable and based on sound science.

Background: Mold growth in schools, courthouses, libraries, office buildings, hotels and all types of residential dwellings is becoming an increasing concern for the public. There are currently no state or federal statutes regarding mold levels and indoor air quality.

In 2004, the National Academy of Sciences (NAS) issued a long-awaited report on the health effects of damp indoor spaces, which rejected the most sensational mold-related health claims, but did find an "association" between exposure to mold in damp indoor environments and some upper respiratory tract ,symptoms. However, the report left unsettled the question of which molds at what levels pose a threat to human health.

The NAS report echoes the position of the U.S. Environmental Protection Agency (EPA), which has called for additional scientific research with which to formulate any health-based indoor air standards for mold. Notwithstanding the lack of sound science on this topic, several states passed legislation in 2004 specifically designed to develop guidelines/regulations for molds in indoor air, and similar measures are pending in other states.

On the federal level, the sharp increase in the number of children with asthma continues to focus attention on the indoor air quality (IAQ) issue. Legislation on IAQ has been introduced, but has not passed out of the relevant Congressional committees. Additionally, in its study, NAS made several specific recommendations regarding the built-environment for federal agencies including HUD and the U.S. Department of Energy.

Action Requested: (1) Congress should direct federal agencies to incorporate NAS' recommendations into their research agendas on indoor air quality. (2) Given the current scientific uncertainty and question about the effect of mold on health, NAA/NMHC urge that Congress not allow funds to be used by any federal agency to establish mold exposure guidelines in housing (including federally owned and assisted housing) until such time as EPA and the Centers for Disease Control or other federal agencies, as necessary, carry out the research needed to fill gaps and answer questions identified by NAS.

Energy and Energy-Efficient Credits

NAA/NMHC Position: NAA/NMHC support the passage of a comprehensive Energy Policy Act containing, among other things, tax credits and incentives to encourage the use of energy efficient building technologies, renewable energy sources and conservation measures by apartment owners. We are concerned about federal policies that have stressed an over-reliance on natural gas for new power plants without the concomitant development of increased gas resources or demand-side management.

Background: NAA/NMHC, along with other real estate groups, have continually urged Congress to implement federal policies that stabilize energy sources, including natural gas, while at the sane time encourage property owners to incorporate energy-efficient building technologies, renewable energy sources and conservation measures into use on their properties.

To that end, NAA/NMHC have advocated for federal tax incentives as a cost-effective means of spurring the construction and remodeling of energy-efficient buildings nationwide. We have partnered with EPA and the U.S. Department of Energy in a voluntary, market-driven program (the Energy Star Building Label Program) that encourages residential property owners to incorporate new, energy-efficient products and designs in residential buildings. In light of recent world events and energy concerns, now more than ever, energy-efficient building technology incentives are critical to the multifamily housing industry.

On the legislative front, despite extensive efforts, Congress has not reached agreement on comprehensive energy legislation. Also, recent price spirals in natural gas have contributed to highly volatile pricing for gas and electricity on apartment properties. Supply and demand fundamentals are expected to keep prices high on this commodity for the foreseeable future.

Action Requested: NAA/NMHC support the passage of a comprehensive energy bill and urge Congress to pass such legislation that contains tax incentives for both (1) energy-efficient renovation and construction of apartment properties; and (2) the installation of water submetering devices in apartment properties. With respect to natural gas, we support a balanced approach that would increase natural gas supplies while reducing demand through conservation and energy-efficiency programs.