VOLUME THREE | ISSUE ONE | January 3, 2005           |  
   


Special Feature

Grassroots 2005: AIA Congressional Issue Agenda

“The AIA’s Congressional issue agenda for the 109th Congress, which starts this week, covers a wide range of vital values and practice issues,” says Ron Faucheux, vice president of AIA Government Advocacy. “It is an agenda developed through a transparent, inclusive process that involves the AIA membership, knowledge communities, and components.”

The official launch of the new agenda will be the Grassroots 2005 conference in Washington, D.C., which begins February 9, 2005, when AIA members and leaders will visit offices of U.S. Senators and House members in search of support for both immediate and long range issues.

“We’re setting our markers with this new, more aggressive agenda so that Members of Congress know where we stand on issues that impact not only architects and the design profession but also values that impact the built environment in the larger world,” continued Faucheux.

Faucheux said the AIA’s Government Advocacy Team has analyzed the responses of members to the October 2004 “Grassroots Issue Call” as well as a survey of the AIA membership conducted in September 2004. In addition, the Government Advocacy Team has consulted with various AIA Knowledge Community leaders as part of a comprehensive assessment of federal legislative opportunities for the 109th Congress, which begins in January 2005, and beyond.

“It is our mission to advance a proactive multi-year legislative agenda linked to the AIA public policy framework that directly addresses the values and practice needs of our membership,” he said. “We’re listening to the membership, and we’re responding with specific action.”

Faucheux cautioned, however, that many of these proposed initiatives – because of technical complexities, “omnibus bill” structuring, committee work schedules, parliamentary factors, federal budgetary constraints, and the changing realities of the political environment – “are to be viewed as long-term priorities that may take years and multiple sessions of Congress to execute fully and successfully.”

“Specific initiatives were developed after extensive discussions with Members of Congress and staffers,” said Tom Wolfe, senior director of AIA Federal Affairs. “They reflect opportunities that either exist or may develop over time.”

“We have already identified Congressional sponsors and champions for some of these initiatives, which makes them ripe for immediate action," he went on. "Other issues will take more time to develop the depth of support needed to make progress on them. All of our proposals will require extensive cultivation of bipartisan support and cosponsorships as well as numerous coalitions with other advocacy, professional, and association groups.”

“As the legislative process evolves during the 109th Congress over the next two years, it is likely that the feasibility of pursuing some of the initiatives and options presented here will diminish because of outside factors,” said Faucheux. “It is also likely that new openings will present themselves on these issues and related initiatives. It is essential that we are able to maintain a high level of flexibility and nimbleness to react to new, unanticipated threats and opportunities on issues and legislative vehicles important to architects and the AIA throughout the process.”

“This is a very ambitious and wide ranging issue agenda, which underscores the need for the AIA to build a strong grassroots network of members to push for legislative action,” said Adam Melis, manager AIA Grassroots Advocacy. “Ultimately, we will be successful only if our membership participates through direct legislator contacts as part of the new Grassroots Leadership Action Network mobilization operation we started building during these past 10 months.”

Melis added that AIA members will soon receive a mailing packet that will include a three-minute government advocacy questionnaire and provide information on how members can join the grassroots advocacy network.

The following represents the current version of the AIA’s Congressional Issue Agenda for the 109th Congress and beyond:

Energy Issues and the Built Environment

The AIA will take a leadership role on a range of energy issues, especially as they relate to proposed comprehensive energy legislation, resource conservation, and the built environment.

Initiative 1: The AIA will advance legislation that calls upon the General Services Administration to establish a photovoltaic energy commercialization program that will procure and install solar electric systems in new and existing federal buildings. Its purpose is to jumpstart a market for these systems and drive down the production costs of photovoltaic equipment by providing an assured public sector market, as well as stimulate the use of life-cycle costing in federal procurement.

Initiative 2: The AIA will identify other energy and resource conservation issues related to the built environment that are related to the sustainability of the built environment—such as the possibility of funding Regional Energy Centers and measures related to the Water Resources Development Act Reauthorization—and join coalitions in support of proposals that are offered to comprehensive energy and water resources legislation.

AIA policies/values link: Sustainability, energy and resource conservation.

Green Buildings Collaborative Initiatives

The AIA’s objective is to increase dramatically the number of green buildings constructed in both the public and private sector. Public and elected official understanding of the life-cycle benefits of building green is minimal. To address the realities surrounding this issue and the use of objective standards necessary to measure compliance, it is proposed that the AIA play a major leadership role in taking the following sequential steps: (a) demonstrating the advantages of green buildings through congressional study and hearings; (b) funding pilot projects that exemplify these advantages; and, finally, (c) providing broad government incentives for private sector action. The initiatives below represent logical and feasible implementation steps in this long-term process:

Initiative 1: After researching the status of federal initiatives to build “green” public buildings, seek a congressional hearing on the matter and organize the most knowledgeable AIA architects to testify.

Initiative 2: Advance an amendment to the National Science Foundation and/or National Institutes of Health appropriations bills to research and quantify the potential for environmentally sensitive design to reduce environmental and human health costs in the U.S.

Initiative 3: Seek legislation that would fund a pilot project to demonstrate the life-cycle cost effectiveness of green design in public buildings (possibly for schools and justice facilities).

Initiative 4: Advance legislation to create tax incentives (accelerated depreciation) for private-sector owners of green buildings. Base this tax relief on a third-party consensus standard that includes building design and performance as well as building materials. Task a recognized national or international standard-setting body (e.g. USGBC, ASTM, ANSI, ISO) to create a green buildings standard that takes life-cycle costing, regional climate differences, environmental context, and building type differences into account.

AIA policies/values link: Sustainability, energy conservation, livable communities.

Affordable Housing / Community Revitalization / Historic Preservation

The AIA will advance legislation to assist in the rehabilitation of existing communities, preserve historic buildings and address the urgent national priority to create more affordable housing units in the U.S.

Initiative 1: The AIA advocates legislation sponsored by U.S. Reps. Rob Portman and William Jefferson to update the current rehabilitation tax credit to promote affordable housing by eliminating the “basis reduction” required of properties using the credit, increasing the credit for “difficult to develop areas,” and allowing tax credits to be used for residential rental property.

Initiative 2: The AIA will support legislation to establish the National Affordable Housing Trust fund in the Treasury of the United States to provide for the development, rehabilitation, and preservation of decent, safe, and affordable housing for low income families. During the 108th Congress, the AIA endorsed the discharge petition sponsored by a broad-based coalition of housing groups to move this legislation (H.R. 1102) out of committee for floor consideration. The AIA will also advance putting Green Housing incentives in the bill.

AIA policies/values link: Affordable housing, diversity, equitable design, financial health of the profession.

Brownfields Redevelopment Initiative

The AIA will support legislation sponsored by U.S. Rep. Mike Turner and others to create tax exempt bonding authority for local/municipal/state authorities to clean up contaminated sites in disadvantaged neighborhoods and enhance sustainable revitalization of existing communities.

AIA policies/values link advanced: Sustainability, healthy communities, quality of life, equitable design.


21st Century Schools: Modernization / Healthy Design

The AIA will support legislation to modernize school buildings and encourage healthy built environments in the American educational system.

Initiative 1: The AIA will explore options to find funding for a study to quantify the effects of well designed, healthy, safe, and sustainable educational facilities on the well being of children and academic achievement.

Initiative 2: The AIA will support funding the National Clearinghouse for Educational Facilities, a public service that provides information on planning, designing, funding building, improving, and maintaining schools. The Clearinghouse would be funded with a grant from the U.S. Department of Education and is managed by the National Institute of Building Sciences, a nonprofit created by Congress in 1974.

Initiative 3: The AIA will evaluate opportunities for legislation designed to enhance the availability of federal tax credits in lieu of interest on municipal bonds for renovation and modernization of deteriorating public schools to eliminate health hazards and better enable learning. This approach was used in the Taxpayer Relief Act of 1997, which created the Qualified Zone Academy Bond (QZAB) program. This program was reauthorized for 2004 – 2005 by the Working Families Tax Relief Act of 2004. The AIA will ultimately seek to broaden the availability of such bonds beyond Enterprise Zones and Empowerment Zones when appropriate legislative vehicles are available.

AIA policies/values link: Quality of life, healthy communities, equitable design, sustainability, diversity, public education, architectural practice.

Community Enhancement Transportation Study

The AIA will continue to seek a federally funded study of methods to enhance community design that can be obtained from transportation projects undertaken under the Federal Surface Transportation Program. The AIA lobbied for this study in the Transportation Bill in the 108th Congress. That bill did not pass, but will be reintroduced in the 109th Congress.

Possible options for accomplishing this goal: Option 1: Advance legislative language to be inserted in next year’s Transportation and/or Treasury Appropriations bill that would instruct the Department of Transportation to carry out the study. Option 2: Advance an amendment to the Research title of the re-introduced Transportation bill to task the National Academy of Sciences to carry out the study. Option 3:Advance an amendment to the Transportation and Community System Preservation Pilot Program, which appeared in the Highway bill in the 108th Congress, to include the study.

AIA policies/values link: Livable communities, sustainability, quality of life, and equitable design.

Protect Historic Preservation Tax Credits

In the 108th Congress, the AIA was successful in fending off serious attempts to repeal preservation rehabilitation tax credits as an “offset” to pay for other programs. The Bush Administration has made tax simplification and reform a key element of its legislative agenda for the 109th Congress, and that may put these credits in the line of fire for weakening or elimination. The AIA will continue to oppose any effort that weakens or abolishes these credits and will work to expand their use to residential properties.

AIA policies/values link: Historic preservation, sustainability, livable communities, financial health of the profession.

Association/Small Business Health Insurance

The AIA will support legislation to provide access and choice for members of trade and professional associations to purchase health care for their employees. Such plans (association health plans, or AHPs) would allow AIA members to purchase health insurance at advantageous group rates and with an exclusion from certain state mandates on the coverages that must be offered. Similar legislation (H.R. 660) passed the House in the 108th Congress. The Senate version (S. 545) was referred to committee but not acted on.

AIA policies/values link: Architectural practice, employee retention, financial health of the profession.

Broadening Use of “Cash” Tax Accounting for Architects

Cash accounting is a practice that allows architects and other qualified professional services corporations (QPSCs) preferable tax treatment to its alternative – accrual accounting. Prior to the 1986 Tax Act, cash accounting was widespread and accepted by the IRS. After the passage of the 1986 law its use was limited to small QPSCs in one of eight eligible fields (architects, engineers, attorneys, accountants, etc.) with annual receipts below $5 million, and those firms with receipts in excess of $5 million that met a rigid “ownership test.” The ownership test requires that 95 percent or more of the ownership of the QPSC must rest with professionals in the relevant field (architecture, law, engineering, and accounting).

The AIA will support relaxing the ownership test in several ways. First, count professionals in any of the eight qualifying categories toward fulfilling the test (e.g., accountants with equity in an architecture firm). Second, allow retired professionals and employees currently in a partnership or joint venture with a parent corporation to participate in ownership without jeopardizing the use of cash accounting. Finally, create the first formal definitions in the tax code for each of the professions.

AIA policies/values link: Architectural practice, financial

Contact

We welcome and appreciate all comments and questions regarding The Angle. Please contact Meredith Braden at angle@aia.org.