Big Builders Start New PAC Not affiliated with NAHB

[Guest guest]

" ..... the Leading Builders of America counts 16 major builders as its

members. Those include Pulte, Meritage, Weekley Homes, the Drees

Company, Hovnanian Enterprises, Lennar, M/I Homes, MDC, Ryland Homes, Shea

Homes,

Beazer Homes USA, KB Home, on, Toll Brothers, Weyerhaeuser

Realty Co., and others, according to news reports. "

Big Builders Form New Group

Leading Builders of America will focus on housing’s recovery, energy

efficiency legislation, and other issues.

The country’s largest home builders have decided to establish a new trade

association separate from the National Association of Home Builders.

Called the Leading Builders of America, the new organization said in a

statement that it is “are working to ensure that the housing sector continues

the process of stabilization and recovery. The group also plans to be

active on energy efficiency legislation and other issues of importance to home

buyers and the home building industry. “

It was chartered in October as a 501©6 or business group, according to

Ken Gear, who will lead the group. He is a former vice president for

government relations at Pulte. Clayton Traylor, previously director of

government

and industry relations for the former Centex Corp., will also be involved in

the new association.

(http://www.allbusiness.com/government/public-policy/13540516-1.html)

According to a _story in the Capitol Hill newspaper Roll Call,_

(http://www.allbusiness.com/government/public-policy/13540516-1.html) the

Leading Builders

of America counts 16 major builders as its members. Those include Pulte,

Meritage, Weekley Homes, the Drees Company, Hovnanian Enterprises,

Lennar, M/I Homes, MDC, Ryland Homes, Shea Homes, Beazer Homes USA, KB Home,

on, Toll Brothers, Weyerhaeuser Realty Co., and others,

according to news reports.

The group would not discuss the dues structure for funding the new

association.

While Leading Builders of America (LBA) members also plan to maintain their

NAHB memberships, according to the group’s statement, the move does

effectively dissolve what had been an NAHB specialty group for large home

building companies. “There will be no formal High Production Builders Council

under our umbrella at this time,†NAHB Chairman Joe Robson told BUILDER in an

email Tuesday. “However, they will remain members of NAHB and the state and

local home builders association.â€

Despite the dual membership for these companies, however, the establishment

of Leading Builders indicates the level of friction between the NAHB,

whose membership is primarily composed of smaller builders, and the large

public builders, who often have a competitive advantage due to their size and

access to capital.

The two groups clashed earlier this year over a bill that would have

extended the time frame for companies to carry back net operating losses, and

hence allowing companies to receive a tax refund and receive some valuable

cash. Public builders supported the carryback provision; the NAHB initially

did not. A letter sent by NAHB CEO Jerry to Speaker of the House

Pelosi arguing against the carryback inspired particular wrath among the

large builders, who felt they were being inappropriately targeted by .

That letter, said one big builder executive who declined to be identified,

was “unbelievable.†Soon after, executives from several large home

building companies “reportedly met with NAHB leadership to discuss Mr.

’s

possible ouster,†_according to a story in the Wall Street Journal._

(http://blogs.wsj.com/developments/2009/12/14/home-builders-feud-sparks-new-trad\

e-gr

oup/)

Would the big builders have stayed under the NAHB’s big tent if had

been forced to resign or fired? The Leading Builders sidestepped this

question in an email to Gear, who responded: “Our goal is to work

cooperatively

with NAHB’s senior staff and volunteer leadership and we communicate with

them regularly.â€

For the NAHB’s part, Robson told BUILDER today that the new association

would not affect ’s future at the NAHB. “Jerry has the full

backing of our leadership team,†he said. Would the NAHB be willing to let

go to get the big builders back? “No,†Robson responded.

Publicly, the Leading Builders group says the controversy surrounding the

NOL provision (which was later supported by NAHB and passed by Congress) was

not a factor. “The decision to form LBA was not based upon differences of

opinion on issues, rather to provide LBA members with a more direct line of

communication to policymakers,†Ken Gear told BUILDER in an email Tuesday.

Whether that will happen remains to be seen.

While the public builders are certainly larger, wealthier companies who

build a tremendous number of homes and employ thousands of people, the NAHB is

more established, with a larger grassroots base and potentially more

influence on elected officials.

Big builders have tried before to establish an independent group that

concentrated on what they feel are their unique issues. In _2004, they founded

the Public Home Builders Council of America_

(http://www.buildingonline.com/news/viewnews.pl?id=3142) , a nonprofit

“devoted to raising awareness and

recognition for the expanding role that the public builders play as stable

and growing providers of housing for millions of Americans.†After a large

splash, though, the group has been largely dormant for the past several

years. Its former Web address now promotes “wonderful home and garden

itemsâ€

that can be found on the Internet.

“NAHB represents more than 200,000 members involved in all sectors of the

housing industry, including home building, remodeling, multifamily

construction and housing finance,†noted Robson, who says the appearance of

Leading

Builders won’t change the NAHB’s lobbying agenda or policy decisions.

“Our

builder members come in all sizes and collectively they will construct

about 80 percent of the new housing units projected for 2009. NAHB will

continue to advocate for the entire industry. Where it makes sense to do so, we

will cooperate on issues just as we always have, and--should our interests

not coincide--with the board’s input, we will pursue the most appropriate

course of action for our members.â€

That will probably overlap frequently, predicted Sivage, who has

not been involved in the dispute. “At the end of the day, 99 percent of the

time we are going to be on the same side,†said Sivage, a former big private

builder who sold his company to Pulte in 2003 and now builds in New Mexico

and Texas as the smaller Sivage Homes. “For the industry, I don’t think

it necessarily hurts us, because by and large, they’re probably going to be

pushing the same issues we are.â€

(http://www.buildingonline.com/news/viewnews.pl?id=3142) Alison Rice is

senior editor, online, at BUILDER magazine. Caulfield also contributed

reporting to this story. &