Documents - Home Builders Association of Raleigh-Wake County, North Carolina

Builder News Update

January 8, 2010

Falls Lake Nutrient Management Rules

Member Action: Please review draft rules for new development and provide comments by January 25^th. Email your comments to Suzanne Harris at sharris04@hbawake.com or call her at 919-232-5886.

The Upper Neuse River Basin Association (UNRBA) and the NC Division of Water Quality (DWQ) are sponsoring the Falls Lake Stakeholder Project. The purpose of the project is to engage a diverse group of stakeholders representing a wide range of interests in developing a nutrient management strategy for the Falls Lake Watershed. Stakeholder meetings have come to an end and DWQ is in the process of drafting rules for Falls Lake Nutrient Management. One set of those rules specifically apply to new development. Preliminary comments on the draft rules are due to DWQ by January 29^th. Please click here to read the draft rules and provide comments to Suzanne Harris, VP of Governmental Affairs, no later than January 25^th so she can incorporate them into comments to provide back to DWQ by January 29^th.

Tax Deferral

Member Action: If you are going to defer 2010 taxes on an unsold home, please apply by January 31^st. For Wake County homes, please call 856-5400 to request form for deferral.

Builders must apply in January for inventory tax deferral. Do you have unsold homes and need some tax relief? In the most recent legislative session, NCHBA worked closely with the N.C. General Assembly to enact SL 2009-308 Defer Tax of Builder Inventory. The legislation allows a builder to defer the portion of taxes levied on residences owned and constructed by builders that are unsold as of January 1 of each year. The deferment may be granted based on taxes levied on improvements only; the land is fully taxable. This legislation is effective for 2010 and will sunset in 2013. You must act soon to take advantage of this legislation in 2010. Please click here for instructions on how to apply for a tax deferral.

Builders & the Health Care Bill

Member Action: NAHB has a membership-wide grassroots alert prepared, but are coordinating on the timing of sending it out based on their discussion with allies on the Hill. Please keep you eyes open for more information.

NAHB is working with Senator Blanche Lincoln (D-AR) who is approaching about a dozen other Democrat Senators asking them to join her in a letter to Senate Majority Leader Reid asking him to remove the construction provision. NAHB is working with the relevant states to get as many of those dozen Senators as possible to sign on. At this point, Senator Lincoln wishes to focus on these particular offices only—none of the targeted Senators represent North Carolina, but stay tuned. NAHB has a membership-wide grassroots alert prepared, but is coordinating on the timing of sending it out based on their discussion with allies on the Hill.

Timing remains the same—get a bill to the President before the State of the Union. The State of the Union Address will probably be February 2^nd, which is a change. It appears they are pushing it back one week. But NAHB continues to anticipate that Congress will wrap up the bill swiftly once both chambers have agreed on the final changes.

Click here for a one-pager created by NAHB on the issue.

North Carolina Commissioner of Banks

Member Action: Attend the January 20^th meeting at 9:00 am at the Reynolds Building (NCCOB offices), Raleigh, NC.

On November 3, 2009 the NC Office of the Commissioner of Banks (NCCOB) announced that it is proposing mortgage rules to help reduce foreclosures, to improve consumer protection and the functioning of the mortgage market, and to implement the S.A.F.E. Act. One of the proposed rules, mortgage rule 602, would prohibit lenders from making loans if the use of the lender was required in order to obtain a discount from an affiliated party, such as a home builder. This would adversely affect national builders with mortgage subsidiaries and custom builders with preferred mortgage lender relationships.

A public hearing was held on December 8, 2009 and many spoke in opposition to the rules, specifically mortgage rule 602. A follow up meeting with NCCOB staff was held to further discuss the intent behind the rule and to hopefully find a reasonable compromise. The ball is now in the NCCOB court and the proposed rules will be brought before the NCCOB Board on January 20^th at 9:00 am at the Reynolds building for deliberation and possible decision.

The next meeting in 2010 is March 17^th. The question is whether alternate rules will be proposed for rules .0601, .0602 and .0603. NCHBA staff is working to touch base with NCCOB staff to gain as much information as possible in advance of the meeting on the 20^th.

Progress Energy Deposit/Refund

Member Action: Provide any examples of situations you’ve had with Progress Energy where deposits have not been refunded and instead rolled to another account held by same builder. Email your examples to Suzanne Harris at sharris04@hbawake.com or call her at 919-232-5886.

Concerns have been raised by builders who have not received refunds on their deposits for both temporary and permanent meters on houses after the accounts have been closed. Progress Energy believes their policies are in line with the rules they must abide by from the Public Utilities Commission. NCHBA and HBA-RWC staff has met with Progress Energy and the North Carolina Utilities Commission Public Staff to find a solution. At this juncture the next step is likely to be arbitration between NCHBA and Progress Energy, conducted by the North Carolina Utilities Commission Public Staff. This will likely not begin until February/March 2010.

Builder Only Luncheons ~ Food for Thought

Member Action: Please provide your input on topics you would like to have offered for 1hour lunch discussions ~ “Food for Thought”. Email your suggestions to Suzanne Harris at sharris04@hbawake.com or call her at 919-232-5886.

Stock Building Supply sponsors quarterly builder only luncheons on topics pertinent to builders. These hours long “Food for Thought” sessions are best attended when the topics are of great importance to our builders. Please let us know topics you would like to see offered during the 2010 calendar year.