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Building News Coast to Coast

HEADLINES AT A GLANCE


 Solar Power Hits Suburbia

 Easy Access

 Let Your Contractor Finance Home Improvements

 Touring Condos That Aren't There

 Blueprints for the Home Planet

 Improvements With a Flair

 U.S. Rules Put Adult Communities in Play

 

 Solar Power Gets an Energy Boost

 What's Grounding Builder's Stocks?

 Did You Know. . .

 Slowing the Flow

 Printers: Small Office, Shoestring Budget

 Deciding When It's Time to Buy a New PC

Find out how Countrywide can waive condo pre-sale requirements for preferred builders.
Discover the lower initial rate and fixed payment advantages of Countrywide's Fixed Period ARM.

Solar Power Hits Suburbia

Concerns about global warming, state subsidies and rebate programs, and more affordable technology are making solar power more popular in the suburbs. In fact, no less than 10,000 American home owners installed such systems between 2000 and 2002. However, the cost is still pricey for many at $4.50 per watt; but Home Power magazine Publisher Richard Perez expects a boost in demand when it drops to $2 per watt, making it less expensive than commercial power. A growing number of builders are including solar power in new subdivisions, especially in sunny, blackout-prone states like California. "Our goal is to bring green to entry-level home buyers," remarks Clarum Homes co-founder and Vice President John Suppes, who is willing to give up a portion of the company's profits in order to make solar power available to the masses. Though home owners increasingly are interested in solar power, most are unwilling to sacrifice their big-screen televisions, clothes dryers, air conditioners and other power-hungry appliances and devices. These consumers are taking advantage of services that let them install solar cells and remain connected to the local grid, allowing them to scale back their dependency on fossil fuels, sell a portion of their power to the electric company and continue to use their high-power appliances. (www.csmonitor.com)
Christian Science Monitor (02/12/04) P. 14; Clayton, Mark


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Easy Access

Georgia's EasyLiving Homes is the first coalition of state officials and nonprofit groups in the nation to support the construction of accessible homes. Builders participating in the program must make sure their models have first-floor bathrooms, kitchens and bedrooms; step-free entrances; wider doorways and hallways; and features that allow home owners to remain independent. The accessible design also must blend in with the décor to avoid a clinical atmosphere. In the EasyLiving Homes built by Roy Wendt, for example, bathroom grab bars double as towel racks; and the absence of thresholds and the wider spaces are not noticeable. Wendt shells out less than $500 on these EasyLiving features — which appeal to parents of young children, seniors and people with disabilities alike. (www.accessatlanta.com/ajc)
Atlanta Journal-Constitution (02/12/04) P. 12NE; Saunders, Tinah


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Let Your Contractor Finance Home Improvements

Home owners do not have to write frequent checks for labor or materials if they have their improvement projects financed by the contractor, although they still will need to monitor expenses. Contractor financing also eliminates the need to pay for materials via higher-interest credit cards. Companies like Kenwood Associates assist contractors in qualifying borrowers, processing paperwork and handling payments. Given that contractors must provide proof of insurance and licensing as well as undergo financial and background checks in order to work with the lender, home owners can be assured that the contractor is competent and in good shape financially. (www.ap.org)
Associated Press (02/09/04) Bradley, David


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Touring Condos That Aren't There

A growing number of developers are offering virtual reality tours that let prospective buyers view residential projects before construction begins. Companies like Montreal-based Alpha Vision create these tours with the help of 3-D animation software, allowing buyers to see beyond the floor plan or brochure. After completing a detailed replica of the building, Alpha Vision incorporates furniture, appliances, pricey cars and other accessories. Live models or digital actors also are included to represent the target buyers in terms of age, income and ethnicity. Virtual reality tours cost developers anywhere from $30,000-$80,000, depending on whether or not filmed actors and aerial shots are used. "It's an important tool for the developer who has to sell 50% of the project before breaking ground, and it's a comfort level for the buyer to have a feel for what they are buying," notes John Bell of the Fort Myers, FL-based Vistech. Computer-generated tours helped the Rosen Corp. sell 25%-35% of the condominiums in its Esplanade development in Fort Lauderdale. Even so, developer Paul Rosen still believes sales representatives are essential in helping the buyer during the decision-making process. (www.miami.com)
Miami Herald (02/08/04) P. 1H; Werne, Jo


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Blueprints for the Home Planet

An increasing number of builders across the country are constructing environmentally friendly homes that are energy efficient, use recycled and non-toxic materials and take advantage of natural light. However, demand for luxury amenities and the costs involved with green building make it difficult for production builders to jump on the bandwagon. Still, the number of green projects should rise as consumers, builders, architects and others in the industry learn more about the benefits and cost savings that accompany such developments. The Florida Green Building Coalition is one of 21 regional programs nationwide that set green-building standards; and NAHB also plans to establish countrywide voluntary guidelines governing land development, site planning, water conservation, indoor air quality and energy efficiency, among other areas. Unlike the green dwellings built in the 1960s and 1970s, today's environmentally friendly homes blend in with the surrounding neighborhoods. These homes might feature solar water heaters, insulated doors, programmable thermostats, dehumidification and ventilation systems, irrigation systems and durable roofing materials that make them wind-resistant. Experts say home owners who plan to stay put will recoup some of the costs in the form of lower energy bills. (www.orlandosentinel.com)
Orlando Sentinel (02/08/04) P. J1; Alexander, Carrie


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Improvements With a Flair

Gopal Ahluwalia, vice president of research at NAHB, says residential improvement and repair spending surged from $173 billion in 2002 to an estimated $182 billion last year. However, he notes, the nature of that spending appears to be shifting. For instance, Clifton, VA-based remodeling contractor Vince Butler has seen a jump in demand for extensive renovation projects — especially as home owners look at existing dwellings in the city limits to avoid lengthy commutes. While major remodels are too costly for most home owners, luxury projects eventually trickle down to the lower end. Denver-based architect Doug Walter notes, for example, that more and more home owners are choosing huge windows, skylights and sun tunnels to brighten their homes. Detached garages; natural stones and woods; his-and-her offices, studies and hobby rooms; and first-floor bedrooms, step-free baths, wider halls and entryways, and other accessibility upgrades are also gaining popularity. (cbs.marketwatch.com)
CBSMarketWatch.com Online (02/07/04) Kerch, Steve


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U.S. Rules Put Adult Communities in Play

The Fair Housing Act outlaws discrimination based on race, color, religion, sex, disabilities and familial status — the latter of which was added in 1988 to help families with children locate housing. Exemptions were made for active adult communities — which permit only those buyers who are aged 55 or older — provided that certain facilities and services were made available, but developers steered clear of such projects to avoid litigation. The Housing for Older Persons Act of 1995 made it easier for builders to construct active-adult communities, exempting them from the Fair Housing Act if all residents are aged 62 or older or 80% or more of the units house at least one resident older than 55. The law allows surviving spouses who are younger than the minimum required age to remain in the community, and it permits younger home owners to retain such properties as long as they rent or sell to seniors. However, the law does not govern communities where fewer than 80% of the units are occupied by seniors. Local governments favor active adult communities because they do not add to an area's traffic problems or make schools more crowded. (www.washtimes.com)
Washington Times (02/06/04) P. F1; Lerner, Michele


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Solar Power Gets an Energy Boost

More home builders in California are embracing solar energy as a way to increase energy efficiency and lower home buyers' power bills. The California Energy Commission reported that the number of rebate applications for renewable energy systems rose to 1,300 in 2003, up from 240 in the year before. However, many builders say the systems still cost too much, and home buyers only are willing to pay a little more for energy-efficient homes. The supporters of solar energy in the building industry hope the technology will receive a boost from Gov. Arnold Schwarzenegger's plans to use solar energy as part of his attempt to ease the state's power crisis. (www.contracosta.com)
Contra Costa Times (02/07/04) P. F4; Bazeley, Michael


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What's Grounding Builder's Stocks?

Despite stellar performances in recent years, the nation's home builders receive little respect when it comes to their stocks. Their earnings have surged 29% since 1999, but their price-earnings ratios have barely surpassed 7%. "In any other industry, this would be ridiculous," argues Toll Brothers Inc. CFO Joel Rassman. Investors are wary of builders' stocks because interest rates are poised to rise from record lows, along with increases in land, materials and labor prices. In fact, their stocks have slipped 11% since the beginning of December due to interest-rate concerns. Though 12 builders have teamed up to establish the Public Home Building Council of America to give their stocks some much-needed publicity, Legg Mason Walker Wood Inc. analyst David Weaver believes the market will remain unchanged until big builders can demonstrate the ability to post significant profits in high interest-rate environments. (www.businessweek.com)
Business Week (02/02/04) No. 3868, P. 69; Henry, David


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Did You Know. . .

Builders could erect a wall 30 feet high and 30 feet wide down each of the nation's coastlines with the debris they take away from construction sites each year? However, the Charlotte County, FL-based Deconstruction Institute says upwards of 80% of wood-framed homes can be recycled if disassembled with care. That includes an estimated 6,000 board feet of lumber that can be reused. Though the deconstruction process involves much labor, the institute insists this is countered by savings earned from money not spent on new materials and disposal fees. (www.pbs.org/wgbh/thisoldhouse)
This Old House (02/04) P. 22


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Slowing the Flow

The problem of unsolicited junk e-mails, or spam, is getting more and more aggravating for small businesses. Spam cause losses of $874 annually in lost productivity per employee in a moderate-sized enterprise, according to a report by Nucleus Research, and the typical worker consumes about six minutes every day coping with spam. But small businesses cannot survive without relying on e-mails, says Dave Chittum, vice president and general manger of services at Cornerstone Systems, a security solutions provider, and need to turn to anti-spam services or technology. Anti-spam solutions can take the form of open-source solutions and can be managed by service providers, or be supplied by commercial vendors. For example, Trend Micro's Spam Prevention Service costs $30 per user annually for up to 25 users, says Chittum, and stops spam at the Internet gateway and also prevents employees themselves from sending out spam. McAfee's SpamKiller e250 product, meanwhile, accommodates up to 250 users and automatically eliminates junk e-mails, obstructs deceptive e-mails, prohibits foreign language spam and allows customized filters.
(www.crn.com)
Computer Reseller News (02/09/04) Torode, Christina


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Printers: Small Office, Shoestring Budget

For small business owners dealing with tight budgets and increased demand, PC Magazine tested 17 affordable laser printers and compared them in terms of cost, quality and efficiency. Color laser printers have become popular among small businesses, especially as they decline in price. The low-cost models tested by PC Magazine include monochrome, color and multifunction lasers ranging from under $300 to $750. While the cheaper models lacked stacking, sorting and double-sided printing functions, they all boasted high-quality images and top speeds. (www.pcmag.com)
PC Magazine (02/03/04) P. 16; Metz, Cade


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Deciding When It's Time to Buy a New PC

Personal computer users and businesses must consider their options when they think about whether or not to purchase new computers. While spending on new computers can lead to a more productive workforce, businesses must question whether their investment will be worth the money, especially considering how quickly new computer hardware and software can become outdated. While new equipment will let users run the latest software, businesses should take note that newer software is often ridden with more bugs than older programs. Software and hardware companies may try to convince users that their equipment is outdated or too slow, but businesses must really consider whether they should spend less to merely improve their old systems or spend more to replace their equipment altogether. Purchasing brand new systems may be more expensive, but new systems can help lower maintenance costs and can help boost the morale and efficiency of employees. (www.computertalk.com)
Office Solutions (02/04) Vol. 21, No. 1, P. 36; Goldsborough, Reid


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