Joint Legislative Program 2000 Priorities.

Telecommunications access, bankruptcy reform, fair housing accessibility, lead-based paint regulatory reform, and the adoption of the new International Building Codes top the Joint Legislative Program's 2000 agenda. As the country continues to experience unprecedented economic prosperity and growth, NAA/NMHC are urging policy makers to maintain a reasonable regulatory framework for housing that does not interfere with the dynamics of the private marketplace.

"The private market is working, and as a result, our citizens enjoy more housing opportunities than ever before," said Clarine Nardi Riddle, NAA/NMHC Senior Vice President for Government Affairs. "We as an industry cannot become complacent. The imposition of restrictive, unnecessary and costly regulations can easily jeopardize the health of the apartment industry, reduce housing choice and further erode our already inadequate supply of affordable housing."

"We will also be using our discussions with federal policy-makers as an opportunity to advocate for a better balance between rental and for sale housing in our national housing policy," she continued. "For a variety of reasons, we are seeing a growing number of households who could afford to buy homes instead renting apartments. In fact, in 1998 and 1999 the fastest growing segment of renters was households making $50,000 or more a year. As apartments become an increasingly desirable alternative to single-family houses, we need state and local policies that better reflect these general lifestyle changes.

"NAA/NMHC are dedicated to ensuring that legislation, rulemakings, and other judicial decisions are in the best interests of those who live in apartments. In 2000, we have an extensive legislative and regulatory agenda, with telecommunications, building codes, bankruptcy and environmental policies figuring prominently."

Telecommunications Access

The battle over forced access to buildings by emerging telecommunications companies will be a central focus for NAA/NMHC in 2000. As part of the Real Access Alliance, a coalition of 11 national real estate trade groups, NAA/NMHC will be vigorously opposing telecom industry-backed proposals that would require private real estate owners to provide unlimited, uncontrolled, and free building access to telecom service providers. The free market is already working to ensure resident access to advanced telecommunications services, and forced-access approaches more often than not result in higher prices and less competition. The apartment association is urging policy makers to reject forced-access approaches being proposed by the Federal Communications Commission (FCC), several members of Congress and some state legislators and regulators. NAA/NMHC will also continue its effort to overturn the Federal Communications Commission's Order allowing renters to install individual satellite dishes of one meter or less in diameter within their leased premises with prior approval of the owner.

Bankruptcy Reform

Another critically important issue for the multifamily housing industry in 2000 is the five-year effort to remedy the abuse of U.S. Bankruptcy Code by residents who file for bankruptcy solely to remain rent-free on the apartment premises. Bankruptcy reform legislation (H.R. 833) passed the U.S. House of Representatives in 1999 and was one of the first bills to pass the U.S. Senate when it reconvened this January. Both bills include a provision to end the practice of using the Bankruptcy Code as a means to live rent-free for months. NAA/NMHC will be working to ensure that the apartment-related provision remains in the final bill negotiated by the House-Senate conference committee.

Accessibility

NAA/NMHC will also continue to lead the apartment industry in reviewing increased U.S. HUD and Department of Justice (DOJ) enforcement of the federal accessibility regulations to ensure that apartment professionals' rights and interests are protected. The associations continue to urge HUD and DOJ to expedite their review of the model building codes for accessibility compliance, and they will be working with Congress and HUD to reduce and eliminate the ambiguities in the department guidelines that have created widespread confusion and inadvertent noncompliance.

Building Codes

NAA/NMHC are also coordinating a grassroots effort to encourage adoption at the state and local level of the new model building codes published by the International Code Council (ICC). The `I' Codes represent a five-year effort to replace the model codes previously published by three regional organizations with a single comprehensive and coordinated set of codes governing housing design and construction across the country. Just as the "I" codes are being published, however, several other organizations have announced their intention to collaborate on a competing set of codes. In a move that threatens to derail the ICC effort to bring standardization to building code enforcement, these groups are actively promoting several of their own codes and standards as alternatives to the ICC codes. NAA/NMHC are working to actively oppose this and in 2000 will be mobilizing an industry effort to urge state and local governments to adopt the ICC Codes, without modification.

Lead-Based Paint Regulatory Reform

Even though scientific analysis has confirmed a dramatic decline in the blood lead levels in children, federal regulators continued to propose and implement new lead-based paint regulations that create onerous requirements for property owners and ultimately drive up housing costs. NAA/NMHC will work with Congress and the federal agencies to urge reforms in the existing regulatory approach to create a more cost-effective framework that reduces the burden on property owners while protecting the health of children.

Other critical issues targeted by NAA/NMHC in 2000 include:

* Encouraging HUD to rely more on fair housing education and outreach instead of enforcement to improve fair housing compliance and increase the stock of accessible housing.

* Streamlining the federal housing voucher program and clarifying a housing provider's right to voluntarily participate in any federal housing assistance program.

* Reducing the capital gains tax and repealing the 1997 depreciation recapture rule.

* Opposing rent control ordinances and reducing other barriers to affordable housing.

* Encouraging efforts to streamline the tax code to encourage investment in multifamily housing.

* Reducing property owner liability for on-premises crimes committed by third parties not employed by the property owner.

* Clarifying the role of property management companies under the Fair Debt Collection Act.

* Reforming the nation's civil asset forfeiture laws to legislate an "innocent owner" defense.

* Supporting legislation to allow the immediate expensing of environmental clean-up costs for tax purposes.

* Urging a review and possible revision of tax legislation repealing the use of the installment sales method for accrual basis taxpayers.

* Opposing efforts to alter the present like-kind exchange rules.

* Clarifying private property rights and the right to compensation for owners when federal actions result in the "taking" of private property.

* Streamlining the wetland permit approval process.

* Supporting efforts to deregulate the electric utility industry.

* Opposing provisions in the model building codes and standards that are costly and not supported by sound technical justification.

* Maintaining state autonomy over seniors housing.

* Reforming Medicaid and encouraging personal responsibility for financing long-term care.

In addition to its legislative and regulatory effort, NAA/NMHC will continue its work to:

* Improve the image of the apartment industry among legislators and consumers;

* Focus national attention on the lifestyle and financial benefits of renting;

* Highlight the importance of apartments to the national smart growth movement.

Information compiled by NAA/NMHC Joint Legislative Staff: Senior Vice President Clarine Nardi Riddle; Vice President of Tax Jim Arbury; Vice President of Communications Kim Duty; Vice President of Property Management Jay Harris; Vice President of Environment Eileen Lee; Vice President of Housing and Finance Stephen Lefkovits; and Vice President of Building Codes Ron Nickson.