Issues & AdvocacyIssues & Advocacy

AIA Pushes for Jobs, Fights Tax Hikes in Washington; Urges Limits to Liability in Florida; and Encourages Architects’ Civic Engagement Nationwide

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AIA Leaders Press Jobs Agenda in Washington

As the economic outlook for the design and construction industry remained shaky and Congress remained mired in partisan debate over immigration, financial reform and climate change, the AIA pressed policymakers to keep the focus on job creation.

On May 4, AIA President George H. Miller, FAIA, joined national leaders in addressing the Good Jobs Green Jobs National Conference. During a session that included speeches from House Speaker Nancy Pelosi (D-CA), Labor Secretary Hilda Solis and Colorado Gov. Bill Ritter (D), Miller told the attendees, “Architects and the construction industry can make a major contribution to America’s economic and environmental security. Our industry has the will to make that contribution. What we need are the tools.” He went on to urge Congress to pass several pieces of legislation that would create jobs through promoting energy efficiency, including the BuildingSTAR commercial retrofit program and the GREEN Act for green affordable housing, which was approved by the House Financial Services Committee last week. (Click here to read Miller’s remarks in full and here to watch the video of Miller’s comments.)

On May 5, Chris Green, AIA, told the House Small Business Committee that tax policies to drive economic growth and job creation should be Congress’ top priority. “Although there have been glimmers of hope in the economic figures,” Green said in his prepared remarks, “I am here to tell you that, for our industry, the light at the end of the tunnel is still a distant flicker. Our data shows that we are still at least a year away from having a healthy business environment in the design and construction industry.”

Green, president of AGO Studios in Avon, Colorado, and Vice Chairman of the Sustainable Building Technology Committee that developed the International Green Construction Code (IgCC), urged the Committee and Congress to enact measures that provide tax incentives for small businesses to expand and invest in assets and to expand the Energy Efficient Commercial Building Tax Deduction. (Click here to read Green’s congressional testimony or click here to watch a video of Green testifying.)

To speak up for jobs and connect with your representatives on Capitol Hill, click here.

Read the AIA press release urging expansion of the commercial building tax deduction.

Click here to read an AIA study analyzing the potential impact of job creation in the building design and construction sectors from the GREEN Act.

Read an AIA letter advocating establishment of the BuildingSTAR retrofit program.

Tax Hike on S Corporations Floated; AIA Joins Other Groups in Opposition

A proposal by staff on the House Ways and Means Committee that would increase payroll taxes on S corporations has triggered the opposition of several industry groups, including the AIA.

The proposal, which is designed to raise revenue to offset the cost to the Treasury of other tax breaks, would expand the application of payroll taxes to active shareholders of S corporations “primarily” engaged in “the performance of services.” Under current law, S corporation income is not directly taxed, but instead flows through to shareholders who are taxed at the individual level as ordinary income. Income flowing from the S corporations may be classified as either salary paid to shareholders or as earnings distributions. A shareholder who performs services as an employee of the S corporation is subject to payroll taxes on amounts received as salary, but does not pay payroll taxes on amounts received as earnings distribution.

The AIA joined in sending a letter initiated by the S Corporation Association to Committee Chairman Sander Levin (D-MI) to express concerns over the proposal. The letter states, “By targeting service sector S corporations, this proposal would increase taxes on small business owners who are fully complying with the law. It will add to the tax code’s complexity by creating new categories of business activity that will have to be defined and litigated. And, by blurring the line between income from labor and income from capital, this proposal will set the stage for future increases in payroll taxes on more capital-intensive sectors such as manufacturing and agriculture.” It is not clear at this point if the proposal will be debated by the Committee.

Report Highlights Ways White House Can Promote Green Buildings

A new report finds that the Obama administration can dramatically increase green building programs and activities through existing laws. Sponsored by the U.S. Green Building Council with the support of the AIA and other energy, housing, environment, and real estate groups, the report, Using Executive Authority to Achieve Greener Buildings: A Guide for Policymakers to Enhance Sustainability and Efficiency in Multifamily Housing and Commercial Buildings, identifies more than 30 existing federal programs worth $72 billion that could be employed immediately to enhance energy efficient in commercial buildings and multifamily housing, without the need for additional legislation from Congress.

The report’s recommendations include:

• reforming appraisal and underwriting practices at Fannie Mae and Freddie Mac;

• “greening” federal banking regulation;

• integrating energy efficiency and sustainability criteria into competitive grants and funding formulas;

• strengthening minimum property standards for federal housing and economic development programs to reflect energy efficiency and sustainability standards;

• improving performance standards applicable to federal buildings and leases;

• refining guidance applicable to the energy efficient commercial buildings tax deduction and the national historic preservation tax credit; and

• using SBA funding mechanisms to support small business energy efficiency investments.

Architects May Perform ENERGY STAR Verification for Buildings

Acting upon an AIA request, beginning April 1, 2010, the US Environmental Protection Agency (EPA) will allow registered architects to perform ENERGY STAR label verifications for commercial buildings. Previously, only professional engineers were permitted to conduct these verifications and then sign and stamp the building’s Statement of Energy Performance. To qualify, an architect must hold a valid license and follow the guidance available on the ENERGY STAR website.

EPA has not yet updated all of its documents, web pages, and guides. In the meantime, architects may substitute “RA” (registered architect) for “PE” (professional engineer) on any documents.

For additional information, contact Billie Kaumaya, manager, Federal Relations.

New Rule Requires Lead Safety Certification for Certain Renovations

Under a new EPA rule, as of April 22, 2010, firms performing renovation, repair, and painting projects (i.e., for compensation or dust sampling) that disturb lead-based paint in homes and child-occupied facilities (e.g., child care facilities, schools, etc.) built before 1978 must be “lead-safe”-certified and any individual performing/directing these services must be a “certified renovator.”

The rule also requires firms to distribute new renovation-specific lead hazard information pamphlet and information on the renovation before beginning work to owners and occupants.

To learn more about the new requirements and the accredited training courses, click here, and for additional information, contact Billie Kaumaya, manager, Federal Relations.

Washington In Brief

Legislator Calls on HHS To Study Well-Designed Hospitals

Rep. Russ Carnahan (D-MO) has written to Health and Human Services Secretary Kathleen Sebelius to urge HHS to work with private groups like the AIA to study the benefits of well-designed hospitals on patient outcomes and reducing medical errors and to develop a technical assistance program with the AIA and others to disseminate best practices. To read the letter, click here.

Design Industry Presses Case for QBS

Staff for the major architectural and engineering societies made the case for qualifications based selection with key policymakers in two recent meetings. During a meeting with Daniel Gordon, the newly-confirmed Administrator of the White House Office of Federal Procurement Policy (OFPP), the AIA and its allies stressed the need to ensure agencies follow the Brooks Act OBS requirements. Further, in a meeting with House Transportation and Infrastructure Chairman James Oberstar (D-MN), the AIA and its allies pledged to work to ensure that pending aviation legislation extended QBS provisions to the Passenger Facility Charge program that funds airport improvements.

HomeSTAR Bill Comes to a vote in the House

This week, the House is considering legislation designed to stimulate demand for construction services and enhance the nation’s energy efficiency. Introduced by Rep. Peter Welch (D-VT) with the support of 44 additional cosponsors, the Home Star Energy Retrofit Act of 2010 (H.R.5019) would authorize $6 billion to fund point-of-sale rebates for consumers who purchase and install certain energy efficient products.

The Silver Star Program would award rebates up to $3,000 to reimburse retrofit work that installs specified energy-saving measures, including air-sealing and insulation measures; duct seal or replacement; window or door replacement; heating or cooling system replacement; and water heater replacement. The Gold Star Program would reimburse retrofit work that achieves whole home energy savings up to $8,000.

DOE Webcast: EnergySmart Schools Operations and Maintenance Online Training Tool

The U.S. Department of Energy is holding a free webcast to provide an overview of the Guide to Operating and Maintaining EnergySmart Schools. The live cast will help participants better understand new tools and technologies aimed to maximize energy efficiency opportunities, build upon lessons learned, and apply them to specific school districts and will include a discussion on O&M best practices.

The webcast will take place May 25 from 12 to 1:15 p.m. Eastern time.

Panelists include Jason Turner, Energy Coordinator for OnSite Energy Services, Texas Association of School Boards; and Sue Pierce, Director of Facility Planning and Energy, Washington Elementary School District (Arizona)

Upon completing the course and quiz, attendees will qualify for 1.5 HSW continuing education units. For more information, please visit www.energysmartschools.gov.

AIA Florida heads coalition to pass professional liability reform

Last week, members of AIA Florida celebrated the passage of legislation aimed at re-establishing “fairness in contractual liability” for architects. In the end, this bill (SB 1964) survived 14 attempts to weaken it by amendment and passed both the Senate and House by wide, bipartisan margins. Once Gov. Charlie Crist (R) receives the measure, he is expected to sign it into law.

Rep. Steve Precourt (R-Orlando), the prime House sponsor of the legislation and himself a transportation engineer, remarked, “In just a matter of days, we’ll have made a huge step in protecting our industry, protecting our businesses, and, most importantly, allowing us to practice in a responsible way.”

The bill reverses a state Supreme Court opinion by limiting the potential tort claims for recovery of economic damages resulting from construction defects that may be filed by a claimant who contracts for the professional services of a design professional (e.g., licensed architects, engineers, mappers, surveyors, etc.).

Rep. Precourt noted, “We have situations out there where an owner contracts with a design firm, the owner is not bound by the contract, and can sue the individual designers that work for the design firm in a tort claim to recover contract damages, and that’s what we’re trying to resolve – that particular issue.”

AIA Florida’s executive vice president, Vicky Long, CAE, Hon. AIA FL, commented that getting this bill through was “the result of classic politics of negotiating and communicating throughout the 60-day legislative process.” Long’s statement is borne out by the fact that her chapter acted in coalition with the Florida Engineering Society, as well as the state’s mappers and surveyors and landscape architects’ societies to shepherd this bill through the Legislature.

AIA Florida’s general counsel, Mike Huey, Hon. AIA, added, “From this point on, we think that the design community can rely on the contract and the provisions of the contract when defending claims for their professional liability rather than face tort claims that previously did not occur prior to this Supreme Court opinion.”

For more information, contact Mark Wills, manager, State Issues and Programs.

Citizen Architect Vies for South Carolina Mayoralty

Tom Crews, AIA, an architect, planner, and long-time AIA member, is one of five candidates running for mayor of Hilton Head Island, SC. He has held positions as the state section director and energy committee chairman for AIA South Carolina and as president of AIA Hilton Head Island.

Crews is the president of Tom Crews Architects, Inc., serving South Carolina, Georgia, and Colorado, has long been involved in his community. Currently, he chairs the Comprehensive Plan Committee as a member of the Hilton Head Island Planning Commission. Crews also has served on more than a dozen other town and community committees, including the Land Planning Policy Committee, Energy Conservation Committee, Design Review Board, and the Boys and Girls Club Design Committee.

Crews’ campaign motto is “Leadership by Design” and his focus is on the redevelopment of Hilton Head Island as it prepares for a sustainable future.

Updates to Citizen Architect Web Page

The Citizen Architect web page has been updated recently and now features a section on Local AIA Chapter Best Practices. The best practices include information on local chapters developing Citizen Architect Committees, facilitating town hall policy forums, and furthering local advocacy efforts.

Local chapters are encouraged to submit best practices. If you are interested in submitting best practices, please contact Shannon Clarke or e-mail information directly to the Local Government Network.

The Citizen Architect web page is now available at www.aia.org/citizenarchitect.

Citizen Architect Exchange & Civic Engagement Reception

The Citizen Architect Exchange will be held on Wednesday, June 9. The Exchange is a forum for networking with other advocacy-minded and civically-engaged members to explore the development and employment of design and leadership skills in the public arena.  The agenda will include a keynote speaker, break-out sessions, and a panel discussion focused on how components can develop Citizen Architect programs; we can engage emerging professionals and students further in advocacy efforts; and architects can positively affect the community through civic engagement.

The Exchange is a pre-Convention event taking place at the Convention Center between 1 p.m. and 5 p.m., with the reception at the nearby Shore Club between 6 p.m. and 8 p.m.

For more information on the Citizen Architect Exchange, contact Brooks Rainwater, director, Local Relations. 

The Federal Agency Connection

The federal government spends more than $3 billion each year on design and construction services across the country and around the world, representing a largely untapped market for many architects. During this particularly difficult economic downturn, more and more architects have been turning to public sector clients to find work. Unfortunately, the process of procuring projects can be arduous and confusing. Join us at the Federal Agency Connection (FAC) at the 2010 AIA National Convention and Design Exposition in Miami (June 10-12) to learn how you can work with the federal government.

Key federal agency personnel from seven agencies will be on hand to talk to architects one-on-one and to answer any questions concerning rules, procedures and forms. In addition, the FAC will offer a series of courses (all available for CES credit) educating architects about various federal programs.

Agencies hosting a booth include:

• U.S. General Services Administration

• Naval Facilities Engineering Command

• U.S. Air Force

• U.S. Small Business Administration

• U.S. Department of State

• U.S. Postal Service

• U.S. Department of Veterans Affairs

To view the Federal Agency Connection course schedule, click here.

Contact Billie Kaumaya, manager, Federal Relations, for more information.

Disaster Assistance Training

Much attention has recently been given to the valuable role that the architectural profession plays in responding to natural disasters. However, it is not enough to react and respond to these crises; preparedness is essential. At the AIA National Convention in Miami, attendees will have the opportunity to be trained and accredited in building damage assessment in the session AIA Disaster Assistance Program: A Comprehensive Training.

The Safety Assessment Program (SAP) curriculum was developed by the California Governor’s Office of Emergency Services (CA OES). It accepts civil, structural, geotechnical, and architectural licenses from any state, along with many ICC building inspector certifications. The program works in compliance with national disaster management protocols, including ICS, SEMS, and NIMS.

To register, visit the Convention website.

For more information about this session, contact Cooper Martin, manager, Federal Research and Policy Development.