Nation's Building News Online: May 19, 2003Print All Articles Text Version |
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Market-Driven Programs Boosting Energy Efficiency of HomesCooperation between the Environmental Protection Agency and NAHB has produced major gains in improving the energy efficiency of the nation’s housing. In an appearance on May 6 before the NAHB Executive Board to mark the success of the voluntary, market-driven Energy Star® program, Governor Christine Todd Whitman, EPA’s administrator, indicated that she is looking for new ways her agency can work with home builders to promote voluntary compliance with environmental regulations. Since NAHB joined with the EPA in 1995 as Energy Star partners, more than 100,000 homes in the country have received the Energy Star label by incorporating energy savings in design and construction and using 30% less energy for heating and cooling and hot water than a standard home. NAHB helped to design the program, which is managed by the EPA with assistance from the U.S. Department of Energy. “By joining together to extend our Energy Star label to your energy efficient homes, we are showing that good environmental practices and good business practices are not mutually exclusive,” Whitman said. “In fact, they go together like a hammer and nails.” More than 1,500 builders in all 50 states are producing Energy Star homes today, she said, including more than one out of every three of the top 100 builders in the U.S. Last year alone, said Whitman, Energy Star products in housing and other industries “helped consumers and businesses save more than $7 billion on their energy bills and save enough energy to power 15 million homes, and reduced greenhouse gas emissions equivalent to taking 14 million cars off the road.” Fielding questions from members of the NAHB Executive Board, Whitman indicated that she is willing to consider following voluntary guidelines that would enable builders to use best management practices to address such environmental concerns as lead-based paint. “But we have to see results from these,” she said. If there is quantifiable evidence that this approach works, “then we would be happy to go to voluntary compliance.” NAHB President Kent Conine noted that today’s new homes are 100% more energy efficient than homes built in the 1970s because of “voluntary programs like Energy Star that make it easy for builders to promote conservation to new home buyers, and new construction materials that help save on energy use.” Since the mid-1990s, he said, consumers have bought more than 450,000 homes built under NAHB-endorsed voluntary energy-efficiency partnerships among builders, utilities and other groups. In addition to Energy Star, these include CertainTeed’s Certified Plus Home, Comfort Home, Johns Manville Performance Home, Masco’s Environments for Living and Alaska Craftsman Home Program. Tight ducts, improved insulation, high performance windows, energy-efficient heating and cooling equipment and tight construction that reduces air infiltration are among the cost-efficient products and techniques that have improved the energy efficiency of U.S. homes. Building News Coast To CoastConverted: Houses of Worship Become Homes of DistinctionThe real estate market in Boston and elsewhere has been flooded in recent years with church properties as shrinking congregations and depleted coffers have forced spiritual leaders to put the religious buildings — along with parochial schools, rectories and convents — on the selling block. The trend has proved to be a lucrative one for developers, who find themselves presented with a unique opportunity to meet the demands of sophisticated home buyers seeking the extraordinary. Churches not only exude architectural character, but they also are generally accompanied by a sacred history that draws buyers in. “People want a landmark,' explains Lucas Garofalo, a broker in Boston's South End. 'And because churches have such a strong connection to the history of a community, buyers love that.' Easier Eating Now Built Into HomesMany builders are catering to buyers' demands for snack stations and casual dining areas, moving beyond the traditional kitchen breakfast bar and formal dining room to such amenities as food-preparation islands, butler's pantries, master-suite mini-bars, basement wet bars, outdoor dining areas and second-floor family rooms with refrigerators. According to NAHB, living rooms were absent in 30% of the homes built in 2001; but 57% had formal dining spaces. Moreover, 13% of the entire floor plan of the average 2,310-square-foot dwelling was devoted to the kitchen last year. However, health experts believe builders are simply making the obesity epidemic worse. Northwestern Memorial Wellness Center medical director Dr. Robert Kushner insists, "This is architecturally enabling those who are battling weight problems." Brad Saks, a clinical psychologist at the Wellness Center, adds that home designs should encourage people to move toward the food rather than bring the food closer to them. Home Appreciation Is SlowingThe National Association of Realtors reports a 7% jump in the first-quarter median home price to $161,500, down slightly from the 8.4% appreciation rate posted in the fourth quarter. Although slower price growth gives buyers leverage in negotiations, sellers still will benefit as low interest rates continue to stoke demand. The largest price increases were seen in the U.S. Northeast, Florida and California as buyers flocked to Atlantic City, NJ; New Haven, CT; Riverside-San Bernardino, CA; and other lower-priced markets. Appreciation weakened, meanwhile, in the South, Midwest and the Pacific Northwest regions, with Indianapolis; Austin, TX; and Chattanooga, TN; counted among the eight markets that saw housing prices actually decline. 'Universal Design' Aims at Growing Group of Graying BoomersWider hallways and doorways, door levers instead of knobs and entryways devoid of stairs are among the Universal Design features that allow home owners to age in place rather than move into senior housing if they become disabled. Builders who target over-50 buyers already incorporate these elements; but Pima County, AZ, requires them in all new homes — regardless of the resident's age or health. Even so, Universal Design is not in high demand there or elsewhere, mainly because younger home buyers do not think about aging and disabilities. In response, builders are using terms like 'Lifestyle Design' and 'Easy Living' in their marketing materials to appeal to buyers who need space to maneuver strollers, furniture, wheelchairs and other equipment as well as those whose relatives are disabled and would not be able to visit without such accommodations. Cure for Empty Hotel Rooms: Go CondoThe weak hotel market and a surge in condominium prices have given new life to the condo-hotel movement. While owners benefit from hotel services, rapid appreciation and the opportunity to rent their units when they are away, developers profit from the sale of the units, a share of the room-rental fees and a lighter debt load. According to Elysian Development Group LLC CEO David Pisor, developers can only secure hotel financing in today's economy with massive amounts of up-front equity or through the sale of condominiums. Since owners have access to concierge, room service and other amenities, Delta Associates CEO Greg Leisch says units in condo-hotels cost 40%-60% more than those without hotel services. Furthermore, they must comply with the hotel management's furnishing requirements. Condo-hotel projects currently underway include Setai Group LLC's conversion of a Miami Beach hotel into 88 upscale condos and Starwood Hotels & Resorts Inc.'s St. Regis Museum Towers, which will feature 269 hotel rooms and 100 high-end condos in San Francisco. Modular Home Owners Put Pieces TogetherThough modular homes accounted for only 35,000 of the 1.6 million-plus dwellings built in this country during 2002, they are becoming increasingly popular among buyers. Modular homes are built in a factory and assembled on site in sections, but technological innovation has paved the way for customization. Moreover, modular housing closely resembles traditional stick-built homes but costs as much as 6% less; are not exposed to the elements during construction; and can be assembled in as little as one week. In another advancement, buyers can now secure financing before the home is placed on the foundation; and the builders are paid as soon as it is cemented. However, many still equate modulars with manufactured or mobile homes, which are built to different construction standards. The Culture of Home SalesIn Santa Clara County, CA, diversity training courses are being offered to residential builders and real estate agents to help them understand the customs and beliefs of different cultures and how they can be incorporated into home design and the purchase process. Property agents cannot effectively communicate with clients without an adequate knowledge of their cultures. For example, Asians often nod or smile to acknowledge what has been said; but agents tend to view the gestures as signs of agreement. The course work also informs real estate practitioners of the housing preferences of various cultures. Chinese immigrants, for instance, will steer clear of properties with the unlucky number four in the address; and Latinos will avoid large homes with only a few bedrooms because they want enough space for their extended families. The Santa Clara County Association of Realtors has recognized the important of cultural awareness by giving certificates to members who complete Department of Housing and Urban Development-approved courses. In addition to a number of educational campaigns, the association will launch Web sites in Chinese and Spanish later this month. Communing With NatureAn increasing number of affluent home buyers in Southwest Florida want to live in the midst of nature and preserve the environment; and developers are responding with environmentally friendly but upscale estates. At the Estates at TwinEagles in North Naples, for instance, the Bonita Bay Group's $3.75 million 2003 Dream Green Home features floors made of recycled glass, bamboo, cork and plank from the Savannah River; toxic-free paints and materials; recycled brick pavers; native plants and trees to control temperature; and views of a lake and a private golf course. The 185-home community also boasts 800 acres of open space and a four-mile nature corridor. In the Bonita Bay community in Bonita Springs, meanwhile, multimillion-dollar mansions and three golf courses have been built near the Estero Bay, a river, a creek, marshes and mangrove stands. Elsewhere, WCI Communities Inc. plans to build 10 so-called 'environmentally sustainable residential communities' throughout the state as part of a partnership with Audubon International. Premier Properties President Todd Kendall sees the growing popularity of ecologically residential projects as less of a movement and more of a byproduct of builder sensitivity. 'As a land developer, if you use an approach to your development that's kinder to the development, you end up with a nicer development,' he explains. 'Developers are just more sensitive, and as a result, both sides benefit.' Habitat for Humanity Builds Experimental, Energy Efficient Home in TennesseeHabitat for Humanity partnered with Oak Ridge Lab to build an energy-efficient home in Tennessee incorporating advanced features, such as a high-tech water heater, solar panels and energy-saving materials. The design team chose prefabricated insulated panels for the walls, floor and roof, in addition to installing energy-efficient appliances and strategically placing air ducts to maximize energy savings. The home cost roughly $124,000 to build and reportedly cut the family's winter power bill to less than $43 per month. NAHB reports builders are including more energy-efficient features in new homes. Snug in a BungalowAn increasing number of home owners prefer bungalows over large suburban homes because of their wood floors, cabinets and moldings; built-in buffets and bookcases; spacious front porches; floor plans that maximize space; and fireplaces. As a result, bungalow prices are rising nationwide. In Minneapolis-St. Paul, for instance, the price has surged from about $75,000 in 1990 to $200,000. Despite their enchantment with bungalows, many home owners are adding space for guest bedrooms, family rooms, home theaters and home offices. In addition to their charm, Twin Cities Bungalow Club President and "Bungalow Nation" author Tim Counts loves these dwellings because he can spend less time on cleaning, maintenance and landscaping. Economist Sees Boom in RemodelingAmerican Institute of Architects chief economist Kermit Baker believes home remodeling will surpass new construction before the end of the decade. Remodeling already accounts for 51% of construction work in the Northeast, while both improvements and tear-downs are on the rise in the suburbs of the South and West. Baker, also an economist for Harvard University's Joint Center for Housing, believes affluent home owners and buyers continue to drive the market. In fact, the top 20% of households have watched their earnings rise 50% since 1975 to an average of nearly $150,000. Baker attributes the success of the housing market to low interest rates and wealthy baby boomers, but he expects a few shifts in housing demand in the coming years. Demand for second homes is currently strong; but overall demand could diminish as the smaller baby bust population — born from 1964 to 1975 — enters the market, rising again when the large baby boom echo generation of the 1980s and 1990s comes of age. Home Costs Outpace WagesThe National Housing Conference reports that salaries have failed to keep pace with rising home prices throughout much of the country. The nationwide median home price in 2001 was $156,000, out of the range of most middle- and low-income workers, whose paychecks have not risen in recent years prior to that. The NHC study determined that retail salespeople, janitors and other similar workers would have to earn twice their current salaries to be able to afford a home in most metro areas and as much as triple their salaries to afford homes in the more expensive zip codes. Maryland: Rouse Finalizes Land DealRouse has completed a land swap in Nevada with the Department of the Interior's Bureau of Land Management. Approximately 1,100 acres along the northern and western edges of Summerlin, a planned community Rouse is developing in the suburbs of Las Vegas, will be transferred to the nearby Red Rock Canyon National Conservation Area. Rouse received nearly 990 acres of land in exchange. Mold-Resistant Interior PanelsMold needs four conditions to be present in order to grow: sufficient moisture, the correct temperature range, mold spores and organic materials to serve as a food source. Among the products that building-product manufacturers have developed to help make mold harder to grow is an interior panel product that removes the paper from the front and back of the board and reducies the organics in the core, which results in a panel with fiberglass mat facings on both sides. Under the American Society for Testing and Materials' D 3273 test, a standard for testing mold growth, the two-sided fiberglass mat product gets a score of 10, the highest rating possible. Other best practices being developed by the industry include allowing proper appliance ventilation, immediately correcting leaks and using products engineered to resist mold growth. NAHB Members and Staff Participate in ‘Family Build’ for Habitat for HumanityFour households in Maryland became first-time home owners last week at the conclusion of a “Family Build” by NAHB in partnership with Habitat for Humanity of Montgomery County. Association members and staff helped build a four-townhouse unit in the Forest Glen area of Silver Spring. NAHB plans to build Habitat homes for the next three years in conjunction with its spring board of directors meetings in Washington, D.C. “NAHB has long enjoyed a thriving partnership with Habitat for Humanity,” said NAHB President Kent Conine, “and we are so pleased that our NAHB family is working with Habitat to help these families achieve the American dream of homeownership.” Wives of NAHB Senior Officers — Meg Conine, Annette Rayburn, Trish Wilson, Tammy Pressley and Debby Smith — were among the many volunteers who participated in the weeklong build. Also rolling up their sleeves were Reps. Jeb Hensarling (T-TX), John Sullivan (R-OK) and Chris Van Hollen (D-MD). “We are so thankful to NAHB for making it possible to build our home,” said Senia Ovalles, who along with her husband, Jose, and children, Elaine and Eliana, will be moving into one of the new homes. “We also are thankful to the many volunteers who have joined us on the work site to help build.” Habitat families labor on their homes and then purchase them with no-interest mortgages. Elm Street Developers and Craftstar Homes donated land for the three bedroom, one-and-a-half bathroom Habitat homes, which are an easy walk to a Metro rail station. For years, NAHB and Habitat for Humanity International have enjoyed a unique partnership to provide affordable housing to families in need across the country. NAHB members and state and local home builders associations participate in builds, conduct fundraisers and donate money and materials to support Habitat efforts locally as part of their community service programs. Housing SnapshotMortgage interest rates continue to hover around 40-year lows while there is little encouraging news on the job front or in the manufacturing sector. In April, the leading economic indicators increased a faint 0.1 point, and the Consumer Price Index registered a decline of 0.3%. Concerned by a growing, although still distant possibility of deflation, the normally inflation-fighting Federal Reserve has suggested that some inflation is better than no inflation at all. Some analysts now expect the Fed to keep interest rates low until it sees annual price increases move back into a more comforable 2% range. The core rate of inflation has been running at 0.4% for the last three months. Mortgage Interest Rates30 Year Fixed Rate: 5.45\% Housing Starts: Apr. 2003Total: 1.63 million\% New Home Sales: Mar. 2003 *1.01 milliion Existing Home Sales: Mar. 2003 *5.53 million * Seasonally Adjusted Annual Rate There Are No Better Housing Advocates AnywhereIn most cases, when Americans count their blessings, housing is at the top of the list. Unfortunately, even when you are the best-housed nation on Earth, housing is not something that you can afford to take for granted. Housing needs advocates, and in Washington, D.C. and across the country, there is no better housing advocate than NAHB. On behalf of our members and the public they serve, advocacy is without question one of the most important missions of NAHB. Carrying a pro-housing message to the Congress, the Administration, the federal regulatory agencies, state legislatures, the local community and to our citizens at large is essential for accomplishing our mission of building the housing our country’s growing population needs. And it is essential for ensuring that “the voice of the housing industry” — our voice — resounds persuasively from coast to coast. On the frontlines of housing advocacy, there is no greater fighting force in this country than NAHB’s 205,000 grassroots members and their employees, their colleagues in a host of housing-related businesses, their families, their friends and their customers. Back at the National Housing Center in Washington, they are supported by a staff of professional advocates who are trained to attack the foes of housing on every front. They include lobbyists, attorneys, journalists, economists, land planners, scientists, specialists on the environment and on government regulation, experts in construction and codes, and more. They are working with you and for you to ensure that housing receives the priority it deserves in every walk of American life. When we make advocacy our mission, a bright future for housing is assured. Here are just a few of the achievements that are the direct result of focusing our energies on strategies designed to carry the day for housing:
And the list goes on. To see how well your NAHB is doing, continue to watch the information that is being brought to you electronically over our Web site and in our new streamlined online publications. In the housing business, there is no such thing as fate. That’s why our mission is to make things happen through advocacy. Advocacy is our strength. It is the foundation upon which, together, we build the American Dream. Salmon Born in Hatcheries Are as Good as WildRuss Brooks That's what small-town banker Ronald Yechout heard as he was out hunting near Philomath, OR, back in November 1998. He followed the noise to the banks of Fall Creek, and saw a sight he couldn't believe: State wildlife regulators were clubbing to death thousands of migrating salmon. Yechout's outrage launched him on a crusade to expose a government 'conservation' program that targeted hatchery salmon for extermination supposedly to somehow 'help' stream-bred salmon. Eventually, under the pressure brought by Yechout and Pacific Legal Foundation, the systematic government slaughter of salmon that were born in hatcheries was ended. But the larger legal controversy continues before the Ninth Circuit Court of Appeals in Portland. A three-judge appeals panel is considering whether hatchery-born salmon can be counted along with stream-bred salmon when it comes to determining whether coho are 'endangered' and in need of special protection in the form of tough land-use regulations. Although government officials claimed that their clubbing expeditions were intended to clear the way for healthier development of wild salmon, skeptics observed that by killing salmon, it was easier for bureaucrats to grab headlines — and expand their power over private property — by claiming that salmon are in decline. Two years ago, the dispute went before U.S. District Court Judge Michael Hogan in Eugene. He found it fishy that the government insisted on making metaphysical distinctions between coho from hatcheries and coho from streams. Hatchery-born coho are biologically identical to stream-born coho, he declared, based on the National Marine Fisheries Service's (NMFS) records. So if there are plenty of coho in streams and rivers, coho aren't 'endangered' under the federal Endangered Species Act, even if many of them are from hatcheries. In reviewing Judge Hogan's order, the Ninth Circuit should not get reeled in by the government's slippery pseudo-science. The fact is, for over half a century, coho salmon have thrived in the Pacific Ocean off the coast of Oregon — and they do so today in phenomenal numbers. More than 240,000 stream-bred coho returned to Oregon's rivers in 2002, a staggering increase from the 14,000 that returned just six years ago. More than 660,000 hatchery-born coho made the trip up river last year. Since 1952, the Fall Creek hatchery — originally with the eggs of 'wild' (partially spawned) salmon — has produced countless generations of salmon that have become fully integrated with the 'wild' population. Indeed, many biologists, including a chief of the NMFS hatcheries and inland fisheries branch, agree that there probably aren't any truly 'wild' salmon left in the lower 48 states and that because of nearly 50 years of natural cohabitation, the hatchery-spawned salmon and the 'wild' salmon are virtually indistinguishable. The only way to identify hatchery salmon is by the missing fin clipped by the hatchery. If even marine scientists cannot tell 'wild' salmon and hatchery salmon apart in a biological sense, why should government bureaucrats be allowed to insist on drawing arbitrary distinctions? And why should a court have the power to do so? Even though the clubbing has stopped, regulators can still lowball the salmon count if they're allowed to exclude those born in hatcheries. Such manufactured pessimism gives regulators more excuses to take control of logging, farming, grazing and home building on thousands of acres of land, endangering the economy for a species that isn't in danger. Judge Hogan was right to deny regulators the use of dishonest, politicized science to justify their power trips. Russ Brooks is the managing attorney of Pacific Legal Foundation's Northwest Center. He brought the landmark Alsea Valley Alliance case that was heard by the Ninth Circuit Court of Appeals on May 8. For 30 years, Pacific Legal Foundation has fought for balance and common sense in application of the Endangered Species Act. Letters to the EditorThere Is Another Way to Rid Job Sites of Carpenter Bees Regarding 'Carpenter Bees Can Be Stopped From Tunneling Into Wood,' May 5, why use poisons??? Spraying uncoated wood with borate and then coating it will protect the wood against insects and mold for as long as the coating lasts. (See my preventative treatment article by clicking here.) I am about ready to present a program on how a building can be coated with a radiant barrier that will prevent the sun's heat and ultraviolet light from entering, but will also protect against insect and mold infestations. Housing Starts Dip, But Permits Rise in AprilHousing starts declined 6.8% to a seasonally adjusted annual rate of 1.63 million units in April, due primarily to a substantial dip in multifamily production, the Commerce Department reported last week. Single-family starts fell 3% in April to an annual rate of 1.36 million. Apparently contributing to the decline was unusually wet weather in parts of the South, where new and unused single-family permits were on the rise. NAHB Chief Economist David Seiders noted that rising permit issuance and permit backlogs last month for the nation overall in both the single-family and multifamily sectors suggested that there would be a boost in housing starts activity in May. Multifamily housing starts, which typically show significant volatility from month to month, declined 22% in April to an annual rate of 274,000 units. Starts were down 11% in the South, 7% in the Midwest, 1.3% in the Northeast and less than 1% in the West. Building permits, which can be an indicator of future building activity, rose across the board in April. Overall, permits were up 1.2% to a solid 1.71 million-unit rate, while single-family permits rose at the same pace to a rate of 1.33 million units — exactly on par with the total permits issued last year. Multifamily permits rose 1.1% to 381,000 units during the month. Builders Regain Their Former Optimism in MayBuoyed by a further downshift in mortgage interest rates and improving consumer confidence, builders are taking a far rosier view of the housing market today than they did earlier this year when the prognosis for the industry was clouded by severe winter weather and a war against the Iraqi government. NAHB’s Housing Market Index (HMI) last week rose four points, to 56, for the month of May, as builders voiced optimism in their assessments of current sales of new single-family homes, sales expectations for the next six months and the traffic of prospective home buyers. “The spring home buying season is underway and builders are encouraged by the strong demand they are seeing,” said NAHB President Kent Conine. “People are now going forward with home buying decisions they may have postponed in previous months.” NAHB Chief Economist David Seiders noted that the availability and cost of lots is an ongoing concern in many markets, but “builders are solidly optimistic about being able to sell homes that are getting built,” and their sales expectations are back to where they were at the start of this year. Seiders added that he is now forecasting that new-home sales and starts this year “will be essentially on par with last year’s solid numbers.” The HMI is derived from a monthly survey of builders that NAHB has been conducting for nearly 20 years. Any number over 50 indicates that more builders view sales conditions as good than poor. Housing Priorities Warmly Received on Capitol HillMore than 700 builders from all 50 states arrived in Washington on May 7 to participate in NAHB’s annual Legislative Conference and to seek support from their members of Congress on critical legislative issues for the nation’s housing industry. At the top of their list, builders asked the Congress for economic stimulus that will create new jobs and enable the housing industry to continue to lead the nation’s faltering economy forward. NAHB is urging the Congress to pass a tax cut bill that follows President Bush’s proposal as closely as possible, said NAHB Executive Vice President Jerry Howard, because that “clearly offers the best means to bolster consumer spending and create new jobs, which in turn will lead to more housing activity.” The President originally proposed a $726 economic growth package for the next 10 years. The House on May 9 approved $550 billion in tax cuts and that bill will have to be reconciled with what the Senate approves. It is currently considering a $350 billion plan. In visits to some 280 congressional offices, builders also urged support for other top legislative priorities for the housing industry:
For information on specific bills, click here, and then enter the bill number in the box at the upper left.
Photos by Herman Farrer Builders Receive Tax Policy Briefing From Secretary EvansCommerce Secretary Don Evans on May 10 briefed members of NAHB’s Executive Board and Capital Club on tax policy and ongoing efforts within the Bush Administration to stimulate the nation’s sputtering economy. In his remarks at the Old Executive Office Building, which is adjacent to the White House, Evans said that NAHB was one of only a few organizations that the Administration had turned to in its discussions of new tax policies, and he thanked the nation’s home builders for supporting the President’s economic package. With the Bush plan coming closer to a final resolution in the Congress, Evans reiterated that the Administration believes tax cuts for business and families are vitally important for re-igniting growth in domestic investment and consumption. That view was expressed in an open letter from the Secretary of Commerce to the NAHB membership that appeared in the March 24 issue of this publication. The President’s Council of Economic Advisers had estimated that the White House’s original plan to boost employment and economic growth would have resulted in some 1.4 million new jobs by the end of next year, Evans said in his letter. And a proposal to eliminate double taxation of corporate income would have returned about $20 billion to the economy this year alone. While the provisions and amounts contained in the original tax package remain in flux in the legislative process now underway, the Administration remains confident that its plan will unleash economic prosperity in America in the years ahead. Evans has noted that the Administration is keenly aware of the housing sector’s central role in leading economic growth during the recovery period. Housing activity accounted for about one-third of growth in the Gross Domestic Product during this year’s first quarter, NAHB President Kent Conine said. Photo by Herman Farrer Bill Called a Threat to Housing Finance SystemLegislation introduced last week by Rep. Pete Stark (D-CA) eliminating Fannie Mae's and Freddie Mac's exemption from state taxes threatens to harm the nation’s housing finance system at a time when housing is helping to prop up an anemic economy and major efforts are underway to expand homeownership opportunities, according to the nation’s home builders. “This could end up as a tax on housing and homeownership by driving mortgage interest rates higher,” said Jerry Howard, executive vice president and CEO of NAHB. The “Secondary Mortgage Market Fair Competition Act,” which would require Fannie Mae and Freddie Mac to pay hundreds of millions of dollars in annual taxes, could have an adverse impact not only on the housing financial market but on the entire industry, Howard said. “Ultimately, these expenses would be passed on to consumers in the form of higher mortgage rates. And this would harm home buyers and home builders alike.” Congress provided Fannie Mae and Freddie Mac with a special charter to allow them to extend affordable mortgage financing for home buyers. Changing their tax status would impair their ability to meet this charge. “By putting upward pressure on mortgage interest rates, this bill could greatly impede efforts spearheaded by the Bush Administration to expand homeownership opportunities to more than 5 million households over the next decade, said Howard. Take the Edge Off Business PlanningAs a business owner, you need to develop a realistic, accurate, big-picture view of your company. That’s where business planning comes in. Business planning takes time, but it needn’t be a difficult or formal task. You can have some fun with the process while building a plan for reaching your dreams. Here are some brainstorming exercises that can help you with the creative aspects of business planning: Include key employees. You know that expression, “Two heads are better than one.” It’s especially true for business planning. Ask key employees to sit down with you and help dream about your company’s future. They may come up with things you’ve never considered.
Clay Nelson is president of Consulting Services Network LLC, a Santa Barbara, CA-based company that coaches individuals and businesses on company goals and balancing work and life. For more business planning information, visit the company’s Web site, www.cjenterprises.com, by clicking here.
NAHB’s “PRO Builder: Business Planning” spells out the benefits of preparing business plans and provides proven methods for establishing goals, developing strategies, setting priorities and evaluating results. The publication includes step-by-step exercises and an electronic spreadsheet to help you develop a customized plan for your business. 'PRO Builder: Buiness Planning' is available through BuilderBooks.com. You can order it online by clicking here, or by call 800-223-2665. BuilderBooks.com also offers a variety of other publications about business planning and business management. To view or purchase these publications online, click here. Subscribe to NAHB’s Business of Building e/Source NAHB’s Business of Building e/Source is your monthly electronic guide to the hot issues and emerging trends in home building business management. You’ll find practical advice, tricks of the trade and sound business guidance — all delivered monthly, straight to your desktop, in a quick and easy-to-read format. Business of Building e/Source is available free to NAHB members and their employees. To subscribe, click here on the members only side of www.nahb.org. Hand-Held Task Manager Saves Time, Creates Paper TrailPunch List™ is a PDA-based (hand-held computer) field-and-desktop task-list manager by Bosch Digital Power Tools that can link to the Internet for automatic messaging and integrate with popular desktop scheduling and project management systems. Punch List was introduced at the 2003 International Builders’ Show in Las Vegas and is now available through BuilderBooks.com. Punch List is designed to help field project managers be more efficient in their work, communicate more effectively with trade contractors and customers and save time and money on the job site. Using Punch List, job site managers can free up as much as an hour or more of their time every day. In addition, Punch List can improve vendor management because it creates a paper trail for every task, whether included in the original project plan or not. The electronic job site solution can also help improve quality by providing better control of multiple job sites so tasks are coordinated, scheduled and get completed right the first time. Punch List is the first in a new line of digital solutions by Bosch Digital Power Tools that will be available through BuilderBooks.com. Under development are future product offerings that provide solutions for all aspects of the home building and remodeling industry. Punch List is currently compatible with systems running Windows 95 and beyond and with Palm OS devices with at least two MBs of memory. To learn more or purchase a copy from BuilderBooks.com online, click here, or call 800-223-2665.
BuilderBooks.com offers a variety of publications and resources about construction management. To view or purchase these publications and resources online, click here. Subscribe to NAHB’s Business of Building e/Source NAHB’s Business of Building e/Source is your monthly electronic guide to the hot issues and emerging trends in home building business management. You’ll find practical advice, tricks of the trade and sound business guidance — all delivered monthly, straight to your desktop, in a quick and easy-to-read format. Business of Building e/Source is available free to NAHB members and their employees. To subscribe, click here on the members only side of www.nahb.org. Accessibility Standard Revisions Good for Builders and the DisabledWorking actively on a committee of the American National Standards Institute (ANSI), NAHB has helped make changes to a standard that will enhance accessibility in apartments for wheelchair users without needlessly increasing construction costs. The committee has been considering revisions to the 1998 ICC/ANSI A117.1, Standard on Accessible and Useable Building and Facilities, which is referenced by building codes for compliance with federal Fair Housing accessibility requirements and Type A unit requirements for multifamily construction. The revisions, which are nearly complete, will require one bathroom in Type A units to be slightly larger than some current designs in order to improve wheelchair maneuverability. Relatively few people with disabilities occupy Type A units, and for this reason NAHB has supported features in these units that can be easily modified to meet their needs rather than requiring all the features to be accessible from the outset. The committee approved an NAHB proposal that permits top mount refrigerator/freezers instead of side-by-side units, which cost a minimum of $500 more per unit. In the revised standard, combination refrigerators and freezers must have “at least 50% of the freezer compartment shelves, including the bottom of the freezer,” a maximum of 54 inches above the floor, “when the shelves are installed at the maximum heights possible in the compartment.” Under the current standards, which are administered by the International Code Council, 50% of freezer space has to be no more than 54 inches high, and this has been interpreted as a requirement for side-by-side units. The bottoms of most top-mount freezer compartments are less than 48 inches above the floor. Another NAHB proposal approved by the committee clarified that kitchen sink counters and work surfaces do not have to be instantly adjustable to heights between 29 and 36 inches, or fixed at 34 inches, as long as they can be “relocated within that range without cutting the counter or damaging adjacent cabinets, walls, doors and structural elements.” Some jurisdictions interpret the current standard as a requirement for expensive special hardware for raising and lowering these counters. The standard will continue to require turn-around space in bathrooms — either a five-foot circle or a T-shaped space, clear of obstructions. However, the standard will now also require a 30-inch wide aisle along the bathtub, clear of any fixtures, to allow greater access to bathtub controls. Under the current standard, a removable vanity or wall-mount sink can be placed in the aisle at the control end of the tub. Another change requires the toilet to be located in a clear space that measures a minimum 60 inches parallel to the wall behind the fixture by a minimum 56 inches parallel to the wall beside the toilet. A sink with a removable vanity can be installed beside the toilet if the 56-inch dimension is increased to 66 inches. As a net result of these changes, bathrooms will have to be redesigned, but they will increase in size by as little as two to three square feet. Since only one bathroom in a unit is now required to be accessible, additional bathrooms can be reduced in size, offsetting the increase in the size of the accessible bathroom. For more information, go to NAHB's Accessible Housing Web site, or e-mail Dick Morris or call him at 800-368-5242 x8444. Three Imaginative Promotions Build Sales TrafficBy Joseph P. McGaw In the community of Providence in Little Elm, TX, Choice Homes has wooed buyers with a cinema-inspired media room. Merchandisers from Position by Design used movie star icons from the past and present, a popcorn machine and theater seating to show how a family can spend their evenings. Well known for its technology-driven marketing, Michigan-based Country Cedar Town & Homes is introducing an e-book that educates prospects and boosts their confidence. “Anyone who clicks on our informational materials on our Web site will be exposed to our new e-book,” explains Dave Reed, the company’s vice president of marketing. “This provides both our casual browsers and home plan purchasers with what they’re looking for — instant gratification.” In Fairfax, VA, Brookfield Homes used a treasure chest promotion to double traffic for a solid month at its nearly two-dozen communities in the Washington market. The promotion started with a four-color newspaper insert featuring a treasure map of places where prospective buyers could find free upgrades. Each sales center received an authentic looking, but inexpensive treasure chest filled with scrolls that awarded free upgrades to the bearer if they purchased a Brookfield Home. Visitors selected a scroll at random. Photos by Douglas Handel and Brookfield Homes Joseph P. McGaw is the group publisher for NAHB’s Builder, Associates & Affiliate Services Group and editor-in-chief of Sales and Marketing Ideas magazine, the award winning publication of NAHB’s National Sales and Marketing Council. With approximately 13,000 members, the NSMC enhances and promotes skills and professionalism in sales and marketing throughout the home building industry. McGaw has more than 10 years of professional experience in marketing communications, and he can be reached by e-mail or at 800-368-5242 x8693. For additional cutting-edge sales and marketing information, subscribe to NAHB’s Sales and Marketing Ideas magazine. Call 800-368-5242 x8192 or click here to subscribe or order a copy. Click here to learn about membership benefits of the National Sales and Marketing Council and the Institute of Residential Marketing. BuilderBooks.com offers a variety of sales and marketing publications online. To view or purchase these publications, click here. Online Traffic — Get the Word Out to BuyersWhat do you know about using Internet traffic to improve your business? Effective online advertising is essential to a growing business, and home builders need to maximize their advertising resources to build name recognition and reach a geographically diverse audience of potential buyers. The National Association of Realtors® estimates that 70% of home buyers will shop for a home online this year. In fact, the Homestore Network, the largest and most comprehensive family of Web sites devoted exclusively to home- and real estate-related content, had 9.3 million monthly visitors during March, according to comScore Media Metrix. That’s some serious traffic. While managing a demanding business, it’s crucial to find the time and resources to differentiate yourself from your competitors. And that’s the beauty of online advertising; it creates brand awareness by enabling millions of potential buyers to see your products 24/7. HomeBuilder.com™, the official listings site of NAHB, is where the world shops for new homes online. You can connect with home buyers online through:
Merge your advertising into the fast lane on the Internet highway and let the nation’s largest new home network help you work smarter, not harder. If you build it they will come — but only if they know where to find you.
BuilderBooks.com offers a variety of sales and marketing publications online. To view or purchase these publications, click here. Contractors Corner — Quality Assurance Standards Are the Way to GoThree years ago, my local, the Builders Association of Greater Indianapolis (BAGI), told its builders and remodelers that they were expected to adhere to a set of quality assurance standards addressing all of the issues that arise during the construction process. These standards establish a series of performance measurements that the association members can use to manage expectations with their customers. Like NAHB’s “Residential Construction Performance Guidelines,” BAGI’s “Quality Assurance Builder Standards” establishes a benchmark for construction quality, explaining what to do when problems arise and presenting acceptable solutions. The manual spells out, for example, how errors in drywall finish should be resolved. When it decided to exclude members who were not willing to measure up to these standards, the board of the Indianapolis association was taking a real gamble. It risked losing members and becoming unmarketable or even a laughing stock. But three years later, the program has proven not only to be a success with the members, but it has become a huge draw for new membership and was a significant factor for the more than 220 applicants who were seeking to become members of the association last year. In a nutshell, this is why we join and maintain memberships in our associations. Yes, it costs to belong, but it’s worth every cent. The smaller the remodeler’s business, the more important such association benefits as quality assurance builder standards become. Along with the local and state associations, NAHB is the best place to find educational curriculums, professional designations, advocacy for housing and remodeling issues and research into building products and practices It’s the place to find out what you need to write into your contracts to deal with mold, what you need to do to handle lead paint issues, how to use the legislative process to achieve the industry’s priorities, what the research shows about building products, and most importantly it is the place to network with other remodelers. In short, the home builders association is the best place for the new remodeler, the smaller market contractor and the small builder. It provides the means for ensuring that members are more successful in their businesses than non-members. Check with your local association leaders and suggest that they consider following the example of the Indianapolis builders by adopting quality standards. It works, and it’s a good deal for everyone, providing the buying public with the assurance and confidence that they are putting their housing dreams into the hands of competent professionals. Taking voluntary steps to ensure quality in the jobs we do may also well be the best answer to the licensing issues that are becoming an increasingly hot topic around the country. For more information, the NAHB Remodelors Council™ is a good place to begin. Call us at 800-368-5242 x8216.
BuilderBooks.com offers a variety of publications online about remodeling and for contractors. To view or purchase these publications, click here. You Can Get Work Force Safety Tips en EspanolWith the help of several new bilingual NAHB publications, you can communicate en Espanol about safety as well as codes, general construction and other topics with your growing Spanish-speaking work force. The Construction Safety & Health Committee produced the handbook, “NAHB-OSHA Jobsite Safety Handbook: English-Spanish Edition.” Also, so you can give weekly 15-minute safety talks to your crews right on the jobsite, we put out the bilingual compilation of 52 safety speeches, “Toolbox Safety Talks, English-Spanish Edition.” There’s more, of course, a “Jobsite Phrasebook” to help you improve communications, dictionaries, even an English-Spanish edition of “Pocket Codes.” There are eight new bilingual manuals, handbooks and CDs that you can get through BuilderBooks.com — y mas to come. Simply type “Spanish” in the search engine at BuilderBooks.com to view them all.
Get a 5% Discount with AT&T Wireless Services NAHB members can take advantage of a 5% discount on monthly cellular services available in all AT&T Wireless markets. Qualifying for discounts are: one-time charges for Wireless Service activation, conversion and rate plan changes, monthly wireless access, home wireless airtime charges, roaming airtime charges incurred in AT&T Wireless markets, charges for billing detail and charges for additional features such as voice mail. To learn more, click here. To order online and for details on more than a dozen other money-saving Member Advantage discount programs click here, or send a blank e-mail to membersavings@nahb.com. Go to www.nahb.org and look under “Join NAHB” to explore the numerous advantages associated with membership in your local, state and national home builders association. New Technology Will Transform Lighting in 21st Century BuildingsEfforts to reduce the amount of energy used for lighting are looking beyond “bulb culture” to solid state technologies that will transform “lighting as we know it today,” architect Sheila Kennedy, AIA, a principal in the Boston firm of Kennedy and Violich, said last week at the National Building Museum. Heating filaments “is a wasteful way of providing light,” she said in a lecture that was sponsored by the U.S. Department of Energy’s Building Technologies program, and fabric — such as a thirsty cotton or polymer — is one of the prime mediums that will be used to provide cool light. Phosphors in the material absorb energy and then release light when they are energized through copper-connected microprocessors that have been woven into the fabric. “Light flows through the fabric like water,” she said. Kennedy said that her company has also been working with luminous plywood. “Thinner than a credit card,” a plastic substrate with sprayed-on phosphors covers the plywood surface. Applying thin-film and Suspended Particle Device technology, Kennedy said her company is working with DuPont on a “24-hour” window that can provide nighttime light and during other parts of the day charge a cell phone, display information such as the outside temperature, display advertisements and provide ambient base lighting. These interactive facades “will have an impact on how we work and live in this country,” she predicted. The technology is currently being applied to commuter ferry terminals on the East River in Manhattan in response to a stringent mandate from New York Governor George Pataki for using non-traditional sources of energy. Those interested in the new technology will soon be able to see it in action at piers at East 23rd Street, East 34th Street and other locations in the ferry system. In September Kennedy said she plans to start posting on her Web site information on residential uses of new “ambient intelligence” technologies. In the meantime, builders who are looking for information on more efficient lighting from sources that are now readily available can explore several links provided by the Lawrence Berkeley National Laboratory. Modular Homes Survive TornadoFollowing the recent rash of tornadoes that tore through the Midwest and cost home owners and builders millions of dollars, one Tennessee home manufacturer was left with the assurance that its product is made to last. The headquarters of the Tennessee division of All American Homes, a member of the Building Systems Councils, was in the path of a devastating cyclone on May 5. Once the dark clouds had subsided and employees were able to return to survey the damage, they found five of the company’s six model homes unmoved from their foundations, with some minor damage from airborne projectiles and water coming in through the roof. Only one home, on a temporary foundation, had shifted during the storm, reported Jim Richards, a divisional sales manager for the company. By comparison, neighboring companies in the Springfield, TN, industrial park were flattened and a hole was torn into the wall of All American Home’s offices and plant, forcing the facility to close for more than a week. “We feel blessed because the situation could have been much worse,” said Richards. “We could not be more pleased with how the homes withstood the storm.” As a modular manufacturer, Richards added, “We build homes that comply with the SBCCI, BOCA and IBC building codes. Additionally, all of our homes are designed to withstand the rigors of transportation to each home site. This tornado proved that we assemble an incredibly durable, well-built home.” Building Systems Councils Sponsors Habitat HomeAlong with her four-year-old son, Karrington, Lydia Branch, a dental office manager, will soon be moving out of a one-bedroom apartment and into a new panelized home in Columbia, SC’s Rockgate Community that was constructed during an annual “blitz build” sponsored by the Building Systems Councils (BSC) in conjunction with Habitat for Humanity. The BSC has been sponsoring this annual event since 1995, with council members donating materials and money to assemble the home. This year’s coordinator of the project, Shanna Shepherd, raised nearly $20,000 by auctioning off several donated prizes at the BSC Banquet held during the International Builders’ Show. Sheppard also arranged for a local church group to donate money and provide volunteers to help assemble the home. The new owner of the $50,00, 1,200 square-foot, three-bedroom home has participated in the Central South Carolina Habitat for Humanity homeownership program since 2002. Next year’s BSC Habitat for Humanity project will tentatively take place in Reading, PA. Concrete Wall Systems an Alternative to Wood FramingAn increasing number of families are discovering that homes built with exterior concrete walls offer significant energy efficiency, safety from natural disasters and a quiet, comfortable indoor environment, according to the Portland Cement Association. The Portland Cement Association is a member of the National Council of the Housing Industry (NCHI) — the Supplier 100 of NAHB. The association is projecting that homes built with concrete systems will account for a full 25% share of housing starts by 2005 as residential contractors continue to look for alternatives to framing lumber, which has been declining in quality and can fluctuate unpredictably in price. The Portland Cement Association has gathered these facts about concrete wall systems:
For more information, click here. Job Corps Students Help Build Habitat HomesStudents from the Potomac Job Corps Center and the Francis Perkins Job Corps program at the U.S. Department of Labor found that there’s no better place to demonstrate construction skills and concern for the community than a Habitat for Humanity job site. Along with the national staff of the Home Builders Institute (HBI), they worked with NAHB board members and their families in NAHB’s first “Family Build” during the week of May 5. Instructors Steve Cousins and Gary Shavlik accompanied their students to the Habitat build in the Washington, D.C. suburb of Silver Spring, MD, where townhouse homes for four local families were under construction. The students also had a chance to talk with NAHB President Kent Conine and First Vice President Bobby Rayburn, who is a member of the HBI Board of Trustees. Rayburn has been closely involved with training efforts across the country, and he most recently visited the Treasure Island Job Corps Center in San Francisco in February. “Seeing our HBI Job Corps students working here makes you realize the importance of the 30-year partnership we have with the Department of Labor,” said Rayburn. “It was inspiring to watch our students hard at work using the skills we are teaching them. These are the same skills that helped them expand the American dream of homeownership for Habitat families and will help them keep turning that dream into a reality throughout their careers,” he said. HBI and Job Corps plan to participate in upcoming “Family Builds” that will be scheduled to coincide with NAHB’s spring board of directors meeting in Washington, D.C. over the next three years. Photos by Herman Farrer NAHB Announces Effort to Increase Hispanic Home OwnersIn support of the Bush Administration’s goal to increase home buying opportunities for minority families, NAHB is joining with Nueva Esperanza, the country’s largest Hispanic faith-based community development corporation, in an ambitious venture that will begin during the 2005 International Builders’ Show in Orlando. The Orlando Project will build homes on 20 acres owned by Hispanic congregations in the area. NAHB is currently exploring the possibility of offering one or more model homes displayed at the show to home buyers in the community. In addition to acting as the home building arm of the initiative, NAHB will participate in seeking support from state and local government agencies and identifying financing resources, Gary Garczynski, the association’s immediate past president, said in ceremonies in Washington, D.C. last week to commemorate the new partnership. “In partnership, our organizations will achieve great success that will be reflected in Hispanic communities across the country for decades to come,” he said. NAHB and 22 other national organizations are active in the Bush Administration’s “Blueprint for the American Dream,” which seeks to increase the nation’s minority home owners by 5.5 million before the end of the decade. Accompanying Garczynski at the welcoming reception were HUD Secretary Mel Martinez and Rev. Louis Cortés, president of Nueva Esperanza. Also on hand were representatives of the Federal Home Loan Bank of Pittsburgh and Lowe’s Home Improvement; both are partners in the program. To follow the project in Orlando, Nueva Esperanza and NAHB are looking for similar opportunities in Hispanic communities in California, southern Florida, New York City, New Jersey and Pennsylvania. BuilderBooks Introduces Kid-Friendly Educational ToolsA new line of kid-friendly tools designed to educate children and new home buyers about the home construction process is being published by BuilderBooks.com. Initial offerings are “Build It! The Card Game” and “Build It! The Coloring Book.” Both follow a real-life construction process, from completing site work through the final inspection of a house. The card game matches the skills of up to six players. As they play, they learn the step-by-step home building process, while trying to keep their house code compliant and their job site safe. The coloring book illustrates 19 phases of construction, from architectural drawings to the completed house. The card game sells for $15 and the coloring book is $6.50. NAHB members receive a discount. They can be ordered online or call 800-223-2665. |