The National Flood Insurance Program (NFIP) is facing a short-term lapse and any home buyers who require federal flood insurance are encouraged to move any June closings up to May 31 if possible.

The NFIP is due to expire at 11:59 p.m. on May 31. The Senate has approved two bills to extend the program. The first bill is part of a disaster relief legislative package that would extend the NFIP through Sept. 30. The second bill is a stand-alone measure that provides for a two-week extension.

With Congress out of session this week for the Memorial Day recess, it appears the House will fail to gain a unanimous consent on a voice vote for the two-week extension. The House has tried twice to gain unanimous consent but was blocked by Reps. Chip Roy (R-Texas), Thomas Massie (R-Ky.) and Alex Mooney (R-W.Va.).

This could result in a short-term shutdown of the NFIP until Congress returns in the first week of June.

Congress requires all properties within the 100-year floodplain that are purchased with a federally backed mortgage to carry flood insurance. So a short-term shutdown means that insurers and insurance agents cannot sell or renew flood insurance policies backed by the program because of a lack of government funding. This means that new or renewing federal flood insurance policies will not be written during the lapse in the program.

Read More

Disaster Preparedness Must Focus on Upgrading Older Homes and Infrastructure

Read More

In the latest installment of his monthly video series, NAHB Chairman Greg Ugalde outlines two recent examples of NAHB working hard for its members: his testimony on Capitol Hill on GSE reform, and the NAHB Housing Portal which can save members thousands in survey research to help their businesses.

This monthly video series will highlight how the association is addressing key issues impacting members and delivering results that make a difference to their businesses’ bottom lines.

View all of the videos in the series at nahb.org/chairmans-update, and watch the latest one below:

Click here for video.

NAHB today commended Senate Banking Committee Chairman Mike Crapo for developing his housing finance reform proposal and believes it will serve as an important marker to move the debate forward in Congress.

Testifying on this issue before the Senate Banking Committee, NAHB Chairman Greg Ugalde said that an effective housing finance system must address liquidity as well as affordability.

“An essential component of any strategy for housing affordability must be advancing comprehensive housing finance reform which will ensure the capital and liquidity necessary for housing developers, builders, lenders and consumers to access stable financing,” said Ugalde.

Read More

More than four out of five builders expect to face serious challenges regarding the cost and availability of labor in 2019, according to a recent survey of members that ran in the monthly NAHB/Wells Fargo Housing Market Index.

The questions asked builders about the problems they confronted in 2018 and expect to face in 2019. Topping the list is the cost and availability of labor, a significant issue for 82% of builders in 2018, which ranked as the No. 2 concern behind building material prices. An identical 82% expect labor shortages will be their No. 1 issue in 2019, while material prices fell to the second slot at 69%.

A chronic labor shortage in the housing industry is a problem that has been steadily gaining steam over the past few years. To put it into perspective, just 13% of builders cited labor issues as an important concern in 2011, with the rate steadily rising over the ensuing years and peaking at 82% in each of the last three years (2017-2019).

Read More

Greg Ugalde, first vice chairman of the National Association of Home Builders (NAHB) and a builder and developer from Torrington, Conn., attended tonight’s State of the Union address and issued the following statement regarding President Trump’s remarks:

“NAHB commends President Trump for highlighting the need for large-scale nationwide investment in infrastructure that is vital to build strong communities and a thriving housing market. Homeownership and housing are essential to a strong and prosperous nation. Yet, new research by Freddie Mac shows that America’s home builders are constructing 370,000 fewer units annually than needed to satisfy demand.

Read More

President Trump today announced a deal with congressional leaders to reopen the federal government for three weeks while talks continue on his demand for a border wall.

NAHB Chairman Randy Noel issued the following statement regarding this important development:

“NAHB commends President Trump and congressional leaders for working together to reopen the government for three weeks while they tackle the issue of border security. At a time when the nation is facing a growing housing affordability crisis, the shutdown has exacerbated the situation by disrupting funding for important HUD housing programs. It is vitally important that Congress and the White House come to an agreement on securing our southern border to ensure the federal government remains open indefinitely.”

Read More

NAHB today commended House Financial Services Committee Chairman Jeb Hensarling (R-Texas) for working with lawmakers across the political aisle to develop a legislative framework to move housing finance reform forward.

“We support many aspects of the Bipartisan Housing Finance Reform Act of 2018, and are especially pleased that the draft legislation includes an explicit government backstop that assures market participants that the federal government will maintain stability, keep credit flowing and make investors whole in catastrophic circumstances,” NAHB CEO Jerry Howard said in testimony before the House Financial Services Committee.

“NAHB believes an explicit federal government guaranty is particularly important to the continued availability of the 30-year fixed-rate mortgage, which has been a staple of the U.S. housing finance system since the 1930s, and we appreciate that the preservation of the 30-year mortgage is emphasized in this draft bill,” Howard added.

Read More