Spokane Home Builders Association

New Heat Stress Rules Unnecessary, Very Expensive

Make Your Voice Heard on the New Heat Stress Rules from L&I

L&I continues to move forward with their new heat stress rules. The rule, which will become permanent once adopted by L&I, are extremely costly (especially to small business) and totally unnecessary.

This latest approach from L&I is yet again a solution in search of a problem—only .00311% of all injured worker claims statewide are related to heat stress.

The Small Business Economic Impact Statement prepared by L&I clearly indicates the proposed heat stress rule will be very costly, especially to small businesses. For a company with 20 employees, L&I estimates the cost to comply with this new rule could be more than $80,000 per year. Compliance costs for small businesses will be nearly five times the compliance costs for large companies.

Help us oppose these costly and unnecessary rules!!

Contact your state legislator and ask him or her to contact L&I Director Judy Schurke to express opposition to the heat stress rule.

Call or email Judy Schurke directly to express opposition.(scju235@lni.wa.gov, 360-902-4200)

Attend the Spokane public hearings to voice your concerns:

Date: May 1st
Location: Red Lion Hotel at the Park
Time: 1:00 pm

Read the Spokesman Review Editorial on the topic here.

Is this REALLY a State Priority?

From the Washington Policy Center

When KXLY News 4 in Spokane saw The Washington State Piglet Book: Connecting the Dots on How Government Wastes Your Money, they decided to go out and interview the public on what they thought about some of the pork projects we listed. The story was broadcast during the prime time news hour on Thursday evening, April 24th. You can watch the news video online here. You can also read the story here.

<From the Editor>

After watching this, I can't help but question this states leadership when they tell me they have no money for roads, ferries, or infrastructure.  The priorities of the current Administration in Olympia seems to be elsewhere, rather than on their fundamental duties of governance.

Kim Momb Scholarship Deadline May 16th!

The application deadline for the 2008 Kim Momb Scholarship is rapidly approaching!  Submit the application linked below before 5pm on May 16th for consideration.  Scholarship awards are in the amount of $1,000 and $500. 

The Kim Momb Scholarship is awarded to the children of members in good standing of the Spokane Home Builders Association.                  

ELIGIBILITY

The applicant must be:

• A daughter or son of an individual member or company representative, in good standing, of the Spokane Home Builders Association.

•  A graduating high school senior planning to attend an accredited college or university as a full-time student.

For more information and to apply, download the Application Form.

States, Localities Have Options to Stimulate the Economy

Those of us in the Northwest can be extremely thankful that we have avoided the worst of the market downturn currently affecting many high profile markets around the county. Though we seem to have dodged the direct impacts, collateral damage is evident. Extremely tight lending practices are causing a rise in construction costs as credit becomes more expensive, overall market negativity has been driven by the national media without local consideration in the region's press when re-printing related 'wire' stories, and in-migration (people moving to Spokane from other parts of the U.S.A.) has slowed as a direct result of the increasing difficulty that migrants are experiencing in selling their current homes in depressed markets.

One of the fundamental reasons that the Northwest has avoided a drastic market correction has been the belief among local elected leaders that growth is inherently good for our cities, neighborhoods, and of course, the tax rolls. The last thing that the market needs are more fees, increased property taxes, and other added costs that further diminish the ability for people to own their own home.

A study produced last July offers some stark numbers about the effects of added costs to homeowners. The numbers specific to Spokane show that for every $1,000 in fees leveled, 386 households would be priced out of the market and forced to remain in housing that does not meet their needs. A current City of Spokane proposal imposes impact fees up to $2,500 per home in certain areas. With the average household size at about 2.1 people per household, that means 2,026 of your friends, kids, neighbors, and co-workers will priced out of Spokane overnight.

In a time where there is such tremendous pressure to provide affordable housing at all income levels, it is counterproductive to further distance the dream of home ownership with more fees. We understand that fundamental government services must be provided, but perhaps a further exploration of cost-cutting measures is needed in order to fund the fundamental services before rising another barrier to hopeful home owners.

The National Association of Home Builders has developed an online resource guide suggesting policies that state and local governments can pursue to stimulate investment and growth and boost the economy.

The resource guide includes an overview of each policy tool, talking points and case studies on how state and local governments have used these policies to encourage economic growth. The tools have been divided into several categories:

Foreclosure prevention and mortgage assistance

• Tax credit programs
• Reductions and waivers for impact fees and development fees
• Streamlining the regulatory process
• Infrastructure finance options special assessment districts
• Public/private partnerships
• Tax increment financing

The tools suggested in the resource guide are designed to encourage economic activity in the local economy by providing incentives to act now, with the expectation that these tools will spur economic activity, and that a virtuous circle of investment and job growth will restore consumer confidence in housing and in the local economy.

The most effective boosts are temporary, targeted and timely. A lengthy delay in adopting these measures could do more harm than good as prospective home buyers lose further opportunity as rent and insufficient living arrangements eat into savings.

It's time for all of us to roll up our sleeves and get America 's economy back on the right track.

The economic stimulus proposals are available to NAHB members at www.NAHB.org/economicstimulus.

Senate Adopts Amendment to Housing Bill to Extend Energy Efficiency Tax Incentives

The Senate recently passed a landmark housing stimulus bill that included an important amendment to extend a number of expired (or soon-to-expire) energy efficiency tax incentives for homes and multifamily buildings. 

Despite objections from some Senators who wanted to move the energy piece separately, Sen. Majority Leader Harry Reid (D-NV) moved for a vote on the bipartisan amendment, sponsored by Sen. Maria Cantwell (D-WA) and Sen. John Ensign (D-NV), as part of the broader housing bill.  With overwhelming bipartisan support, the Senate adopted the amendment by a margin of 88 to 8.  Although the House also recently passed a similar extension of energy tax incentives, the negotiating is far from over because of the continued disagreement over how to pay for them.  The Senate measure adopted does not include any tax offsets, already causing House Leaders to balk at it.

Notably, the amendment contains a number of extensions that NAHB has been working to pass for a number of months:

1. Section 45L   –

   New Energy-Efficient Home Tax Credit.  The amendment extends the tax credit for an additional 2 years to Dec. 31, 2010.  It also modifies the credit to allow builders to occupy the residence themselves.

2. Section 179D –

   Multifamily/Commercial Building Deduction.  The amendment extends the deduction through the end of 2009.  It also increases the amount from $0.60 per square foot to $0.75 for partial allowance and from $1.80 per square foot to $2.25 for full allowance.

3. Section 25C –

   Energy Efficient Property Credit (Existing Homes).  The amendment extends the expired credit to the end of 2009.  It also adds a credit for residential biomass heating stoves (e.g., pellet stoves or wood stoves) that can achieve a 75% thermal efficiency rating.

NAHB will now work with coalition partners to gain support in the House for adoption of the Senate measure. 

If you have questions or need additional information, e-mail Elizabeth Odina at NAHB, or call her at 800-368-5242 x8570.

Premier Home Improvement Show This Weekend

Did last weekends nice weather motivate your green thumb?  Perhaps it revealed some winter repair work to your home or yard? Whatever the case, make sure to stop by the Premier Home Improvement Show this weekend at the Spokane Fair & Expo Center and find PROS to help with your next PROject!

The Show runs Friday noon-7pm,

Saturday 10am - 7 pm

and Sunday 10 am - 4 pm

Don't miss Spokane's Premier Show!  For more information, visit the show website.

See the TV ads below for event highlights!

Gen Y Provides Hot Prospects for Urban-Styled Apartments

This is a continuation of our series on Generation Y and how they (or should I say, WE) will fundamentally change your business. A little foreshadowing... can you say 'New Marketing Department'?

There's something more than a little different about the 20-somethings of Generation Y who are lined up to generate the biggest burst of housing demand since members of the post-World War II baby boom generation, according to two market researchers and an architect appearing at the NAHB Multifamily Pillars of the Industry Conference on April 1-3 in Colorado Springs, Colo.

Stressing the difference of those in this bulging population group with even their most recent predecessors, James Chung, president of Reach Advisors , noted that “a 28-year-old today is dramatically different from how a 31-year-old today was three years ago.”

“Your staff needs to be tuned into this market,” Chung told an audience of professionals in the multifamily industry. His research finds that Generation Y can be distinguished in several ways:

• Forty percent of Gen Y members are minorities, double the share of their parent's group, Chung said, and there is the expectation that even less integrated communities will show far greater diversity than in the past.
  
• Gen Y'ers are not easily reached through mass media, e-mail is out and they tend to communicate by text messaging and through social Web sites, especially women, he said. The challenge for marketers, who are “salivating” over the potential of selling to this group is to reach the leaders who are most likely to spread the news about a particular housing project. The message must be something “that's so important that they need to share it with their friends,” Chung said, and “you have to have a script” to provide “signals” that will enable them to talk about the product.
  
• They are “virtually intimate” and happy to “put their lives out for the world to see; privacy is not what they're looking for” and “visibility matters.”
  
• They are “prematurely affluent,” with their spending habits higher than their earnings can support. For those from more affluent families in the top 25 percentile of household incomes, this means subsidies from their parents, which tend to diminish the farther they get from college and the nearer they are to their 30th birthday. They embrace luxury goods and the brands of their parents, and communicate with their parents a couple of times a day. When it comes to housing, Chung said, a few are looking for the best they can get and a quarter are looking for “a good place” but not denying themselves the means to live the lifestyle they want.
  
• Minority members are advancing faster into high-paying jobs than their predecessors thanks to the strength of their school systems.
  
• Members of Gen Y have managed to make a startling difference from previous generations in closing the income gap between men and women. At a time when women in the general population are earning only 80% as much as men, women in their 20s in cities with a white-collar, “knowledge-driven employment base” are making 100% to 120% as much, he said. The explanation is simple: more women than men are going to college, he said. Women account for a 59% share of today's undergraduate degrees and are receiving advanced degrees 1.5 times as much as men. “If this trend continues,” Chung predicted, “men will be relegated to the role of pets.”
  
• They appear to be delaying marriage and parenthood and are spending more time as “unsettled” households. Single-women now account for 25% of first-time home buyers, he said, compared to a number in the single digits just five years ago and compared to a 9% share currently for single men.

<Keep Reeading>

REALTORS Endorse Dino Rossi, Governor

FOR IMMEDIATE RELEASE – April 14, 2008

Washington REALTORS® endorse Dino Rossi for governor

OLYMPIA , Wash. - The Washington Association of REALTORS®, the state's largest professional organization of 25,000 members, today endorsed Dino Rossi for governor. The announcement is made following interviews of both Rossi and Gov. Christine Gregoire by a 17-member Statewide Candidate Interview Team.

“Washington state is fortunate to have two highly-qualified candidates for Governor,” said team member Jan Ellingson, the 2008 president of the Washington Realtors. “It was a tough decision, but, in the end, we felt Dino's background in real estate and his leadership on budget issues while in the state legislature make him the best candidate to address the issues facing our industry and our state.”

With the endorsement by the Realtors comes the financial support of the REALTORS® PAC, the state's largest political action committee, with more than 10,000 contributors. RPAC does not favor political parties, but candidates who share the organization's concerns about the housing industry, home buyers, and homeownership in Washington state. In 2004, RPAC invested $750,000 in direct contributions and independent expenditures for political races around the state; about 92 percent of Realtor-endorsed candidates were elected to office.

Rossi, whom the Realtors endorsed for governor in 2004, has had a successful career in commercial real estate for more than 20 years. He served two terms in the Washington state legislature, from 1996 to 2003, when he resigned to run for governor. He lost that campaign in the closest race in the history of the state. During his time in the state legislature he had an eight-year record of supporting issues important to REALTORS®. As chair of the Senate Ways & Means Committee he successfully negotiated a balanced state budget.

“Dino believes that the state should live within its means, and so do we,” said Bill Riley, Washington Realtors vice-president of government affairs.  “He also understands the need to address the lack of housing affordability that's pushing home ownership further and further from the reach of middle-income families.”

Riley pointed out that housing is not a priority on Gov. Gregoire's policy agenda, which she has stated includes health care, transportation, public safety, education and the environment. “The reality is that housing is not one of her top priorities and it is clearly a priority for Dino,” said Riley, who participated in the Realtors' interview process.

The interview team included leaders of the Washington Realtors' government affairs committees, the association leadership, and others appointed by the organization—Realtors from all ten RPAC districts that cover the entire state and are representative of the diversity within the organization's large membership.  There is also a representative of the Washington State Commercial Association of REALTORS®. The interview team will continue candidate interviews throughout the day and announce endorsements of other statewide races tomorrow.

The Washington Realtors represent approximately 170,000 homebuyers and the interests of more than 2 million homeowners throughout the state.  Realtors' top public policy priority is building communities that have a strong economy, attractive home choices, great schools and parks, safe neighborhoods, and good transportation choices.

# # #

For more information and for interviews, please contact Barbara J. Lally, Director of Public Affairs, 360-561-4848 .

“REALTOR® is a federally registered collective membership mark which identifies a real estate professional who is a member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes

Kate Whiting
Political Affairs Director
Washington REALTORS®
kate.whiting@warealtor.org
Phone 360-943-3100 x 118

New Heat Stress Rules - Spokesman Review Editorial

Question: Do these rules ($80,000 worth of rules) make any rational sense, or are they just another example of L&I run amok as they try to play overprotective parent to an industry that is inherently risky?

From the Spokesman Review, April 14th 2008

Heat rules face test Our View: Regulations sought for outdoor working conditions

If you go The Spokane hearing on the Department of Labor and Industries' proposed heat stress rule will be at 1 p.m. on Thursday, May 1, at the Red Lion Hotel at the Park, 303 W. North River Drive.

April 14, 2008

A fter the endless winter of 2007-08, Inland Northwest residents will be slow to see a down side to the onset of warmer temperatures.

If there is an exception, though, it may be among farm and construction workers and others who labor outside in summer's broiling sun. And, in Washington, their employers.

Two years ago, after a Yakima-area farmworker died of heat stroke while chopping weeds in a hop field in July, it occurred to the state Department of Labor and Industries that the agency didn't have regulations in place to address outdoor working conditions that could lead to heat-related illnesses. Indoors, yes. Outdoors, no

Not coincidentally, the discovery of this oversight followed a move in California – where there recently had been four similar deaths – to adopt strict workplace regulations that demanded employee training, close monitoring of work-site temperatures and mitigating steps to protect against the health consequences of working in high temperatures.

To date, according to a spokeswoman for Labor and Industries, apparently sunny California and northern tier Washington are the only states to have undertaken this response.

Predictably, businesses affected by the proposed rules are protesting. The Building Industry Association of Washington calls them "ridiculously prescriptive and completely unnecessary."

Citing the state agency's own estimates, the construction association says compliance with the rules could cost a business with 20 employees more than $83,000 a year, plus another $50 a year per employee to train workers about such things as how to recognize the signs of heat stroke, and what to do about it if they do.

To put businesses' reaction in proper context, it's worth remembering that they are faced with a barrage of requirements to safeguard their workplaces against an infinite array of threats to employee health and safety. The goals may be reasonable, but the methods aren't always practical.

In the present case, the rules are triggered when temperatures reach a certain point – as low as 52 degrees on sites were workers wear vapor-barrier clothing. There must be sufficient drinking water on hand, there must be adequate shade or other cooling means, which might include anything from tarps to air-conditioned trailers.

The agency had emergency rules in place last summer, and now Labor and Industries wants to make them permanent, with some modifications. In making their case, officials note that heat stroke is to blame for at least four worker deaths in Washington in the past decade – the same number that occurred in California in a span of weeks before that state took regulatory action.

Even one such death is a tragedy, of course, and BIA's reaction may be a bit overwrought, but enactment of another layer of rules and regulations is no guarantee that other deaths will be prevented. In fact, the employer of the Yakima worker who died in 2005 was found by Labor and Industries to have been in violation of regulations already in place. That employer was fined $3,000, which was upheld on appeal.

Labor and Industries' current proposal is tentatively scheduled to be adopted on June 4, and put into effect on July 5. First, however, there will be public hearings, including one in Spokane on May 1. No doubt the agency will get an earful from affected businesses. Before this rule becomes permanent, the regulators must make a compelling case why it can be expected to save lives where existing regulations failed.

Language Barriers Could Contribute to Job Site Fatalities

Foreign-born workers accounted for 29% of the fatalities in the residential construction industry, according to “ Residential Construction Industry Fatalities 2003-2006 ,” a recently-released study commissioned by NAHB.

The study also found that workers of Hispanic origin accounted for 28% of the fatalities.

Foreign-born and Hispanic workers have significantly higher representation in the construction industry than in the population at large.

2006 Census Bureau figures show that 11% of people living in the U.S. were born in other countries, while Department of Labor figures indicate that 28% of construction workers are non-native. The proportion of Hispanic workers in the construction trades — 28% — is also higher than in the general U.S. population (14.8%).

“Without safety training, residential construction sites can be very dangerous for any worker, regardless of their language skills or assigned task,” said Buck Roberts, president of A.B. Roberts Construction Company in Anderson, S.C. and chairman of NAHB's Construction Safety and Health Committee .

“Since more than a quarter of the workers in our industry may not speak English as their first language, NAHB is creating many safety training resources in English-Spanish language formats for our members and their workers,” he said.

The safety study evaluated the 1,385 work-related deaths that were reported in residential construction from 2003 to 2006. Data was collected from the U.S. Department of Labor's Bureau of Labor Statistics' (BLS) Census of Fatal Occupational Injuries as well as employment estimates from the U.S. Census Bureau American Community Survey and the BLS Quarterly Census of Employment and Wages .

The study also found that falls, which accounted for 45% of the industry's reported deaths, were the most common cause of home building fatalities.

Study Available Free From NAHB

The study, available free from NAHB, is the most comprehensive analysis of home building industry fatalities to date.

To download a free copy of the full study or its executive summary from the NAHB Web site, go to: www.nahb.org/fatalitystudy .

Spanish-Language Safety Resources Available From NAHB

NAHB offers its members and affiliated home builders associations Spanish-language resources in a variety of formats, including books, videos, onsite training programs and Sed de Saber™-Construction Edition , a learn-at-home program from the Home Builders Institute (HBI) that teaches English to Spanish-speaking adults in the construction industry. HBI is the workforce development arm of NAHB.

BuilderBooks.com offers several safety-oriented Spanish-language instructional books and videos, including “ Fall Protection Video, English-Spanish ,” which includes identical 30-minute training videos in each language. 

NAHB and the NAHB Research Center also conduct fall protection training seminars in locations around the country for builders, trade contractors, supervisors and workers. The seminars are offered in both English and Spanish.

To learn more about the fall protection training program, and to see a list of scheduled seminar locations for 2008, go to www.nahb.org/fallprotectiontraining .

To purchase safety publications, videos and other resources online from BuilderBooks.com , visit www.builderbooks.com/safety .

For more information on NAHB safety training programs, e-mail Lindsay Cather at NAHB, or call her at 800-368-5242 x8163.

Four Steps on How to Deal with an Abrasive Customer

Four Simple Steps on How to Deal With Abusive Customers
By Tracey Gundersen, CEO, Warranty Management Technologies

Abusive clients are, unfortunately, a part of the new home customer service process, a tiny part, but a part nonetheless.

Establishing a procedure on how personnel should deal with abusive clients nurtures better long-term customer relationships. Look at a situation involving an upset and enraged customer as a chance to improve your product and service.

A written procedure guides your staff, reduces stress and may keep you out of legal hot water. After all, one enraged customer can drag down your entire warranty service department. Left unchecked, an irate customer can turn vengeful and destroy a company. 

When encountering abusive clients, Carol Smith, author of numerous best-selling new-home customer service books including “ Meetings With Clients: A Self-Study Manual for a Builder's Frontline Personnel ,” recommends the following four steps in order to avoid stressful situations:

• Always conduct yourself in a business like manner.
  Instead of sarcasm, respond with healthy detachment. Avoid engaging in an argument and provide a realistic outlook. Don't yell, use self control.
  
• Establish boundaries and empathize with your client.
  Tell them in a normal tone of voice, “I understand that you're angry. I'm here to help. I do have limits on how we communicate. If you will stop (using that language, threatening me, intimidating, etc.), we can continue talking. Otherwise, I'll end this conversation and will call you tomorrow.”
  
• If the client continues, end the conversation by calmly leaving the meeting or gently hanging up the phone.
  
• Document the call on an incident report.
  Make sure to date and time the incident. Mark your calendar for a follow-up call.
  Defusing a potentially nasty situation allows everyone to get their emotions under control and think rationally. We're here to solve problems, not compound them.

Now, doesn't that feel better than a swollen vein on your head?

Tracey Gundersen is the founder and CEO of Warranty Management Technologies, LLC, of Burnsville, Minn. The firm provides warranty process management software, consulting services and fully-outsourced customer service to new home builders. For more information, e-mail  Gundersen , call her at 952-707-0725 or visit www.homsoft.com .

SHBA Apprenticeship Program Seeking New Instructor

The Spokane Home Builders Association Apprenticeship & Training program is currently accepting applications for a part-time ‘Residential Carpentry' instructor. Teaching experience valued.

Qualified applicants must have completed an approved Apprenticeship training program and have worked in the trade for a minimum of 10 years or have a B.A. degree in Construction Management.

For more information, click here.

Cars are the Solution - Not the Problem

And more on this topic from the Washington Policy Center.

It looks like the City of Tacoma is also trying to limit CO2 emissions by setting targets to reduce per capita VMT by 2020.

As Todd Myers, director of WPC's Center for the Environment points out in his latest Environmental Watch , Europe has failed to meet similar targets under the Kyoto Protocol in the last ten years. And as our region continues to grow, the City of Tacoma and the State will also likely fail to limit how much its citizens drive.

But there is a better way.

Its a fact that every gallon of gasoline burned creates 20 lbs of CO2 .
By 2030, the State estimates Washingtonians will drive an average of 86.5 billion miles.

If the average fuel efficiency for all vehicles in Washington is 22 mpg, drivers will emit about 78.6 billion lbs of CO2. If the average fuel efficiency rises to about 30 mpg, drivers will emit about 57.6 billion lbs of CO2.

So improving the statewide average fuel efficiency by just 8 mpg will reduce vehicle CO2 emissions by 27%. The State's Climate Advisory Team's reduction target is about 18%.

Instead of forcing behavior changes by limiting mobility through social engineering, a more realistic way to reduce CO2 emissions is to remove barriers to technology that will improve emission standards and fuel efficiency. Cars are the solution, not the problem.

Sorry Gov, Rep. Warnick is Right About the Climate Change Bill You Signed

The post below if from the Association of Washington Business. We recently posted a similar blog from the Washington Policy Center here that talks about how WA ST plans to forcefully reduce that amound of miles your drive.

The Association of Washington Business (AWB) joined rural legislators in asking Gov. Chris Gregoire (D) to veto a portion of the climate change bill which would lead to restrictions on how far trucks, tractors and cars can travel in future years.  In our letter to the Governor, AWB indicated a section of the new law, which she signed earlier this week, paves the way for future legal battles over whether or not the state can tell local government to mandate the emission limits.

AWB believes a better approach to dealing with greenhouse gases is to focus on emission reductions rather than mandating how many miles people can drive. AWB, the state's chamber of commerce and manufacturing and technology association, wants the Governor and legislators to also plant burnt over forestlands and produce more energy from the state's hydro system and other renewable sources, such as wind power, to further reduce carbon dioxide levels. 

"There are vast differences between small rural communities and downtown Seattle and the last thing we need is another court battle over the interpretation of yet another new law,"  AWB Vice President of Governmental Affairs Gary Chandler said. Chandler is a former Grant Co. commissioner and legislator from Moses Lake who also farms and runs a small rural business.

The legislation was sponsored by Reps. Geoff Simpson (D-Covington) and Hans Dunshee (D-Snohomish) in the House and Sen. Chris Marr (D-Spokane) in the Senate.

Rep. Judy Warnick (R-Moses Lake) and AWB asked the Governor to veto section two of the bill that requires the Dept. of Community, Trade and Economic Development to develop methods for counties and cities to reduce vehicle emissions. While she vetoed other potions of the legislation, she did not remove section two.

In the Governor's statement, she said:  "In my view, this section of the bill does not create a new mandate for local governments, and does not provide grounds for new litigation under the growth management act....and appropriately recognizes the differences between our urban and rural settings."

In a story published in the April 3 issue of the Yakima Herald Republic , Warnick said the language in the legislation is unmistakable. "The Legislature finds that the state, including its counties, cities and residents, must engage in activities that reduce greenhouse gas emissions."

Sorry, Governor, we agree with Rep. Warnick.

Don C. Brunell, President ( DonB@awb.org ).

A Few Industry Rumblings

A Few Industry Snippets

Up With the Downpayment

Sen. John McCain of Arizona, the presumptive Republican nominee, proposed something that no other major presidential candidate has advocated in decades: raising minimum downpayment levels for home mortgages. Even the 3% minimum required by the FHA would be raised under his plan. McCain also said the giants of the mortgage industry, Fannie Mae and Freddie Mac, “should never insure loans when the home owner clearly does not have skin in the game.” His rationale for tightening up downpayments is that he thinks a key contributing factor to the national mortgage crisis was the tiny, or nonexistent, equity contributions required by lenders during the boom years. Whatever politicians decide to do, the private marketplace is heading back to more traditional standards, where equity up front was the rule. ( www.washingtonpost.com )
Washington Post (4/5/08); Kenneth R. Harney

---

Housing Troubles Immobilize U.S. Labor

When housing is not an obstacle, more than five million Americans, nearly 4% of the U.S. workforce, move annually from one place to another. Now this mobility is increasingly restricted. Unable to sell their homes easily and move on, tens of thousands of people are making the labor force less flexible just as a weakening economy puts pressure on workers to move to wherever companies are still hiring. No government agency counts those who move for jobs, either across state lines or just from one town to another. The Census Bureau, however, calculates how many people move across state lines for all reasons, and that number fell by 27% last year, after climbing by almost that percentage for each of the previous three years. With homes changing hands easily in a booming market, interstate migration reached 2.2 million people in 2006, excluding moves that followed Hurricane Katrina. As the U.S. economy and home prices began to unravel in 2007, however, interstate migration plunged to 1.6 million people. Mark Zandi, chief economist at Moody's Economy.com, said he would not be surprised to see record low domestic migration this year. ( www.iht.com )
International Herald Tribune (4/3/08); Louis Uchitelle