Mold study finds no evidence of serious health hazard.

A long-awaited federal study issued May 25 finds that while exposure to excessively damp indoor spaces is "associated" with upper respiratory tract symptoms, coughing, wheezing and asthma symptoms, there is insufficient evidence that mold causes other health risks often claimed by litigants, including the development of asthma, fatigue, shortness of breath, skin symptoms, cancer, immune diseases and cognitive/neurological dysfunction. The study was conducted by the non-partisan Institute of Medicine, part of the Congressionally chartered National Academy of Sciences, at the request of the U.S. Centers for Disease Control.

Although the study should help quell consumer fears about mold and help reduce the number of mold-related lawsuits facing property owners, the report does say that excessive indoor dampness is problematic, and it echoes NAA/NMHC's long-held advice to property owners to deal promptly and effectively with moisture intrusion. Members can refer to NAA/NMHC's Operations and Maintenance Plan posted at www.naahq.org/government/ government.aspx for information.

In recommendations specifically directed toward the building sciences, the report calls on the U.S. Department of Housing and Urban Development of other appropriate government agencies to help develop consensus guidelines on building design, construction and operation/maintenance to prevent dampness problems. It also calls on government and the private sector to educate building professionals (architects, builders, facility managers and maintenance staff, code officials and insurers) on how to prevent dampness problems. Copies of the report, "Damp Indoor Spaces and Health (2004)", can be ordered from www.nap.edu/catalog/11011.html.

Media Address Homeownership Bias

NAA/NMHC's ongoing campaign to help consumers understand the potential value of renting and to help policy makers understand the need for a more balanced housing policy is making a difference. In large part because of media outreach by NAA/NMHC, two high-profile articles on these issues recently ran in The Wall Street Journal (WSJ) and a third appeared in The Chicago Tribune. In "Homeownership Doesn't Solve Every Problem," (April 29, 2004) the WSJ's Washington, D.C., columnist David Wessel criticizes politicians' single-minded focus on homeownership.

He wrote, "Owning a home isn't right for everyone. It isn't smart for every low-income family. And the unrelenting political fixation with homeownership as the U.S.'s top housing priority diverts attention from ways to get more affordable rental housing."

The article points out several serious policy considerations--decreasing funding for housing vouchers, local restrictions on rental housing production and the under-used Millennial Housing Commission Report--that are ignored when "everyone is encouraged to believe that homeownership will solve it all."

On May 17, Wessel was interviewed on National Public Radio's Morning Edition in a segment titled "Home Ownership: Bad Move for Some?" He noted that homeownership may be financially unwise for some, stretching their budgets dangerously thin, and argued that the federal government is trying too hard to get low-income people to take out a mortgage. NAA/NMHC have updated Talking Points that members can use to help explain the problem with a "homeownership at any cost" housing policy. A copy is posted at www.naahq.org/ government/government.aspx.

An April 29 WSJ article titled "Five Reasons Restless Renters Should Consider Staying Put" warns consumers not to feel pressured by rising interest rates to buy a house. The columnist, a noted financial advisor, explains that "buying vs. renting isn't always a no-brainer." Meanwhile, a May 2 Chicago Tribune article titled "It Doesn't Take a House to Make a Home" profiles a number of area families who have rejected the American dream of a single-family house in the suburbs and have decided instead to remain in their multifamily homes.

Brochure Refutes Ownership Myths

Homeownership may be the American Dream, but it is not always the best financial choice. NAA/NMHC are pleased to offer apartment owners a new consumer education brochure that examines the most common financial misunderstandings about owning a house and offers a series of "reality checks" for would-be buyers. By combating several of the top homeownership myths, "Don't Buy the Myths: Renting Can Be a Smart Investment," explains why renting is not "throwing away money" and offers consumers the information they need to counter all those well-meaning people who keep telling them that they need to buy a house.

A PDF of the brochure is posted at www.naahq.org/bookstore/bookstore.aspx where bulk orders can also be placed. NAA/NMHC will conduct a major media campaign to publicize the brochure over the coming weeks as part of our ongoing effort to create a more balanced playing field for rental housing.

Terrorism Insurance Extension Urged

NAA/NMHC have submitted comments to the U.S. Treasury Department urging it to extend the provision in the Terrorism Risk Insurance Act (TRIA) that requires insurance companies to make terrorism insurance available on the same terms and conditions as property and casualty insurance. Although TRIA does not expire until 2005, the "make available" provision expires at the end of 2004 if the Treasury Secretary does not extend it by Sept. 1, 2004. Our comments urge the secretary to extend it as soon as possible and note that insurance companies are likely to stop offering terrorism insurance if they are not required to by law. If terrorism insurance once again becomes scarce of unaffordable for most apartment property owners, it could greatly impact the sector's ability to obtain financing from lenders. This, in turn, could undermine the security of our economy. NAA/NMHC's comments are posted at www.naahq.org/ government/government.aspx.

A Mortgage Bankers Association (MBA) survey released in late May shows that more than $400 billion in commercial/multifamily debt is at risk of cancellation of exclusion if TRIA's make available provision is allowed to expire. According to MBA, 93.9 percent of the $656 billion in debt it reviewed is required to have terrorism insurance by the mortgage investor and/or servicer. That same week, nearly 100 members of the House of Representatives signed onto a letter urging the Treasury Secretary to extend the provision.

Study: Housing an Election Issue

Two out of three Americans are so concerned about the cost of housing in their communities that they would be more likely to vote for a candidate who works to make housing more affordable, according to a national survey conducted by the National Association of Realtors.

The survey found that 81 percent of voters would like to see government place a higher priority on making housing more affordable for renters and homeowners alike. By a wide margin, Americans support the construction of more affordable housing, both rental and ownership, in their communities if the housing "were built in such a way that it fit with the area and was pleasant to look at."

Three out of four Americans are concerned about the impact the rising cost of housing has on teachers, firefighters, police and others on whom communities depend, and 70 percent support the construction of affordable housing for these public employees. Most Americans (53 percent) worry that their children and grandchildren will not be able to afford to live close to them, and 69 percent of voters gave their federal elected officials a grade of "C" for not working to improve the availability of affordable housing.

Lead Found in Drinking Water 

Congress has launched a series of hearings on lead in drinking water following the discovery of high lead levels in the water of Washington, D.C., and neighboring jurisdictions. D.C.'s problems were apparently caused by an alteration to its water treatment protocol designed to bring the city's water into compliance with new standards under the Disinfectant Byproduct rule of the Safe Drinking Water Act. The alteration in water chemistry caused lead to leach out of older pipes and fixtures.

The issue has implications for property owners across the country since D.C.'s water distribution system resembles that of most of other U.S. cities in that it contains some lead service lines in both public and private areas. Although public health officials maintain that lead in deteriorated paint and dust is the most direct threat to children, water utilities are advising residents in homes with high levels of lead to use water filters.

Congress is considering legislation, titled The Lead-Free Drinking Water Act of 2004 (H.R. 4268, S. 2377), that would address this issue.

Information compiled by NAA/NMHC Joint Legislative Staff: Senior Vice President for Government Affairs Jim Arbury; Vice President of Housing Policy Lisa Blackwell; Vice President of Finance and Technology David Cardwell; Vice President of Property Management Jeanne Delgado; Vice President of Communications Kim Duty; Vice President of Environment Eileen Lee; Tax Advisor Howard Menell; Vice President of Building Codes Ron Nickson; and Chief Economist Mark Obrinsky.