NMHC led the way for the apartment industry in 2018 in terms of thought leadership, industry advocacy and industry research. NMHC was proud to bring together multifamily leaders at NMHC’s various conferences and meetings. We thank each and every one of our members for their contributions, participation and support. As we kick off 2019, let’s take a look back at the key legislative and regulatory victories of 2018.
Among the top successes for the year, NMHC Chairwoman Sue Ansel, President and CEO of Gables Residential, and Jim Schloemer, CEO of Continental Properties Company, testified before Congress on the cost of regulation and barriers to apartment community development. Throughout their testimony, the multifamily leaders highlighted research from NMHC/NAHB that cites that government regulation accounts for an average of 32.1 percent of multifamily development costs.
Additionally, issues related to housing affordability and rent control were of top importance this year. NMHC played a leading role in the resounding 62%–38% defeat of California Proposition 10, a ballot initiative that would have overturned the state’s rent control preemption.
We will continue to offer ideas and policies aimed at solving the housing affordability crisis while remaining vigilant against proposals like Proposition 10 that would inhibit growth and deepen the affordability challenge.
NMHC also successfully advocated on the following issues this year:
Regulatory and Administrative Victories
NMHC has worked to leverage the Administration’s commitment to regulatory reform to secure significant victories for the industry that will make it easier for apartment owners, developers, managers and financiers to operate their businesses, invest in new projects and expand hiring.
NMHC has successfully encouraged HUD to reconsider policies on:
- Disparate Impact Rule
- Davis Bacon
- Section 8
- AFFH Reform
- Emotional Support Animals
NMHC is working to replace, rescind and clarify other regulations and guidance documents including:
- EPA’s Lead Hazard Standards
- FHFA’s Capital Standard Regulation
- Community Reinvestment Act (CRA)
- High Volatility Commercial Real Estate (HVCRE)
- NLRB Joint Employer Rule
- Data and CyberSecurity
Tax Reform Implementation
- After big victories in 2017 with the passage of the Tax Cuts and Jobs Act, NMHC is focused on the implementation of key provisions. We are working to:
- NMHC secured major victories on several critical tax issues important to the industry:
- Enable multifamily firms to take full advantage of the new 20 percent deduction for pass-through businesses (e.g., LLCs, partnerships and S Corporations).
- Clarify that a 30-year depreciation period applies to multifamily property placed in service before and after 2018 for firms electing out of limits on interest deductibility.
- Treasury’s proposed Opportunity Zones regulations provide Opportunity Funds sufficient time to deploy capital.
- Increased the Low-income Housing Tax Credit (LIHTC) allocation by 12.5% for four years (2018-2021) and made income averaging a permanent component of the program.
NMHC also successfully secured the following:
- A reversal of reductions to military housing benefits that could have jeopardized the future of the privatized military housing program.
- Funding for EPA’s Energy Stars building performance benchmarking tool.
- A more workable, science-based approach on the Clean Water Act (WOTUS) rule.
- A number of short-term extensions of the National Flood Insurance Program (NFIP) to ensure there was no lapse in coverage while working to continue to negotiate a long-term reauthorization can take shape.
- NMHC facilitated the passage in the House of “The ADA Education and Reform Act of 2017” (H.R. 620), putting an end to costly, frivolous ADA lawsuits.
- NMHC maintains an up-to-date resources center for both apartment owners and residents to help them prepare for and recover from catastrophic weather events such as Hurricanes Florence and Michael. NMHC worked with policymakers to secure and expedite emergency funds for impacted apartment communities and residents impacted and displaced by storms.
Building Codes Advocacy
NMHC shielded the apartment industry from millions of dollars in annual construction costs by preventing changes to the national building codes and standards that would harm the apartment industry.
- NMHC filed an amicus brief with the National Apartment Association in support of an appeal filed by apartment company AIMCO in a legal dispute with Airbnb, which has since been settled. NMHC’s argument centered around preserving private property rights and the need for owners and operators’ choice to prevail when it comes to short-term rentals within apartment communities
To explore more of our active advocacy issues, please visit our Advocacy Topics library.
- FHFA Announces Enterprise Resources for LIBOR to SOFR Transition
- House Passes Changes to the Paycheck Protection Program
- NMHC Joins Over 200 Business Groups Pushing for COVID Liability Protections
- Senate Looks at Liability Protection and Enhanced Guidance for Businesses
- FHFA Releases Re-Proposed Capital Framework for the Enterprises