Nation's Building News Online: May 26, 2003Print All Articles Text Version |
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Builders Applaud Tax Plan to Stimulate the Economy and All Segments of the Housing IndustryThe $350 billion tax cut package passed by the Congress last week after an agreement was reached between Senate Finance Committee Chairman Charles Grassley (R-IA) and House Ways and Means Committee Chairman Bill Thomas (R-CA) will provide a significant boost to economic growth, including housing, and create new jobs quickly, according to NAHB. The package reflects key elements of NAHB's policy: across the board tax rate reductions, an increase in the limit for small business expensing from $25,000 to $100,000, and a reduction in capital gains tax rates. That, said Jerry Howard, executive vice president and CEO of NAHB, is a prescription that will “move the economy and housing sector forward by providing much-needed stimulus to consumer spending and capital investment.” The President's proposal to eliminate double taxation of corporate earnings was replaced by a reduction in ordinary long-term capital gains tax rates that will also apply to dividend income. This provision creates a new incentive for corporations to invest in the Low Income Housing Tax Credit. Because the provision to reduce tax rates on dividend income is calculated strictly at the shareholder level, purchasing tax credits increases corporate earnings that can be used to distribute more dividends. The increased dividends are then taxed at the reduced capital gains tax rates, which are substantially lower than the ordinary income tax rates that apply to dividends today. NAHB played a pivotal role in shaping the tax cut agreement throughout a negotiating process that lasted for months. The association worked with the White House, Treasury Secretary John Snow, Commerce Secretary Donald Evans, Chairmen Grassley and Thomas and bipartisan congressional leaders to ensure that the final tax package produced the best possible bill for the entire housing sector. “As the congressional debate on the Administration’s tax plan unfolded,” said Howard, “NAHB remained a voice of reason to calm fears that the President’s proposal to eliminate the double taxation of corporate dividends would harm the Low Income Housing Tax Credit program." NAHB testified before Congress in support of the Administration’s economic growth package and offered several solutions to mitigate any unintended effects of the President’s dividend proposal on the tax credit. In its meetings with Secretary Snow and his top aides to discuss these proposals, NAHB presented economic data to help the Treasury Department craft a good solution on this issue. “Since the beginning of the year when President Bush first unveiled his tax plan, NAHB was the only housing organization that had a seat at the table in the ongoing discussions between the Administration and Congress on an economic growth package,” said Howard. “As an organization that represents all segments of the housing industry, I am particularly proud of the role that NAHB played on behalf of the housing community,” he said. Building News Coast To Coast'New Brooklyns' Replace White SuburbsAnaheim, CA, has become what Virginia Tech's Metropolitan Institute director Robert Lang calls 'the new Brooklyn' as immigrants move in to avoid crime and congestion and white residents move out to the deserted suburbs. Conservative and white from the start, the city's white population has plunged about 25% from 1990 to 2000; and half of its residents are now Latino, a tenth are Asian and only a third are Anglo. The trend also is evident in other traditionally white suburbs across the country. Experts say these New Brooklyns typically have over 100,000 residents, but are not the largest or most recognized city in a metro area. Additionally, they grow by 10% or more each decade; are home to more foreign-born, non-English-speaking residents than the country as a whole; and are criticized and misunderstood by the surrounding communities. The aging housing stock in these cities provides immigrants with affordable dwellings and gives more affluent residents a reason to move elsewhere. Poverty Begins to Lose Its Grip on Some CitiesRecent studies by the Brookings Institution and the Urban Institute reveal that inner-city poverty has decreased substantially across the country. According to the Brookings Institution, the population of high-poverty neighborhoods — where 40% or more of the residents live in poverty — plunged 24% from 10.4 million in 1990 to 7.9 million in 2000. The most significant declines were posted in Detroit, San Antonio and Columbus, OH, where the number of high-poverty residents plummeted 74%, 70% and 55%, respectively. As a result, these cities are seeing less crime, better schools, more businesses and an increase in the number of residents with jobs; and experts say lower poverty rates translate into stronger families and less suburban sprawl. The robust economy of the 1990s, welfare reform, the razing of around 175 public housing projects and minimal industrial decline are credited for the improvements. The transformation occurred as poorer residents moved away from the inner cities to live closer to suburban jobs, the incomes of those who remained rose and more affluent people flocked to the urban core. Still, the overall poverty rate held steady at 11%-12% of the nation's population, and the population of high-poverty neighborhoods in Los Angeles, San Diego and Washington, D.C., continued to climb. McMansion Passion Is DiminishingRaleigh, NC-based architect and “The Not So Big House” author Sarah Susanka says move-up buyers are passing over suburban mansions in favor of smaller homes with more personalized details. University of Florida architecture school director Stephen Schreiber concurs, noting that buyers increasingly prefer homes in small, close-knit communities with both commercial and residential components. In addition to economic and international tensions that cause the public to embrace the home, Consumer Eyes Inc. trend analyst Ron Rentel attributes the focus on nesting and bonding to what he calls “a growing cultural backlash in the U.S. against ostentation and over-consumption.” Rentel explains that “huge vehicles and resource-hogging have been scoffed at for a while now, but that attitude seems to be shifting toward housing, too.” Susanka says home owners instead are remodeling to maximize the space they have rather than to expand it. “I'm not saying small, just not so big as you thought you needed. It's the quality and character of your space, not the size of it, that matters.” National Association of the Remodeling Industry President Mark Brick agrees, pointing out that some of the most popular projects have been large showers, sophisticated sound systems and other so-called “creature comforts.” NAHB expects spending on residential improvements to rise from $150 billion in 2002 to almost $200 billion this year. However, Toll Brothers CEO Robert Toll says he has not seen a drop in demand for spacious homes and entryways; and he insists that it is natural for people to want more rooms and accessories and loftier ceilings. The Legal Minefield in Your Own BackyardHome owners' insurers lost $11 billion in the past two years, forcing many to hike premiums, exclude mold and water damage from policies and refuse to renew policyholders or insure homes with several claims. Insurers are now banning backyard trampolines, swimming pools with diving boards and certain dog breeds due to an rise in related injuries. However, Insurance Information Institute Chief Economist Robert Hartwig says a growing number of home owners are trying to protect their children from abductors by installing jungle gyms and trampolines in their backyards to keep them from playing elsewhere. Though many home owners are simply removing the prohibited items to retain their coverage, others are paying exorbitant premiums, purchasing separate policies or looking for another insurer. Home owners who wish to reinstate a cancelled policy will have to prove that the offending item has been completely removed. Meanwhile, those who wish to keep the item should surf the Web or consult an independent agent to locate an insurer that provides such coverage. Home owners should keep in mind that insurers are usually unwilling to exclude the banned item from the policy and will simply deny coverage on the entire home. The Wealthy Keep Home Real Estate Market BusyWhile the lowest mortgage rates in decades are the primary force energizing the residential property market, American Institute of Architects Chief Economist Kermit Baker notes that this country's pool of wealthy buyers is another notable driver behind the real estate mania. While low- and moderate-income Americans have not enjoyed any significant income growth in the past of quarter of a century, the top 20% of wage-earners have experienced income gains of 50% since 1975 to a 2001 average of roughly $150,000. This upper-level group has helped to pump up the housing industry; but Baker says the run-up may be heading for a decline now that baby boomers are approaching retirement and fixed incomes. As more people make less money, he says, the market for smaller 'pre-retirement' and second homes, and also for condominiums, will take on increasing importance. A New Formula for HousingIn Boston, city officials and community groups are offering seniors living alone in triple-decker dwellings incentives to rent their extra space to the homeless and others in need of affordable housing. "Overhousing" exacerbates the housing shortage, and half of the overhoused are seniors who are living longer and choosing to stay in their long-time homes. Meanwhile, there are 6,000 homeless and 20,000 people in line for government subsidized housing. Only 25 home owners have agreed to rent out a portion of their homes in exchange for city grants for renovations, and officials say the reluctance among seniors to share their living space has hindered the program's success. In fact, just five seniors are participating in the Neighborhood of Affordable Housing's year-old East Boston program. A number of the city's three-deckers were used as rentals in the past, but many seniors have been unable to afford the repairs needed to comply with city codes. However, Nuestra Comunidad's program helps home owners secure city grants and low-interest mortgages for extensive renovations, and the group also locates tenants, handles the lease and acts as the landlord. Though thousands of seniors throughout the city could benefit from the initiative and ease the housing crunch, Neighborhood of Affordable Housing program director Phil Giffee notes that it is not "the final answer to solve the affordable housing crisis." Boomers Shun 'R' WordThough many baby boomers will turn 60 in just three years, they refuse to think of themselves as old and are avoiding so-called retirement communities. Builders have responded by renaming such developments as “age targeted,” “age restricted” and “active adult for 55 and over” communities. This branding strategy is important, especially since adult community builder Del Webb says 45% of boomers will move during their retirement years. Though buyers of any age can purchase an age-targeted home, their first-floor master bedrooms, dens and increased security are preferred by those in the upper age groups. Many of these dwellings also feature crown moldings, tray ceilings, hardwood floors, granite countertops and other upscale amenities that are more affordable to older buyers who have sold their larger homes. Most boomers are also willing to spend hundreds of dollars per month to forego landscaping and other maintenance tasks. Meanwhile, an increasing number of builders are finding it easy to secure zoning changes that allow age-restricted communities — which prohibit primary tenants under the age of 19 and require one 55-plus resident — because local governments benefit from high-end tax assessments and fewer students burdening the school systems. Environment's All Right in 'Green' HousesEnvironmentally friendly homes — which boast recycled products and improved energy efficiency — are in high demand among buyers. Builders and developers, in response, are working to change zoning laws in an effort to minimize urban sprawl and curtail pollution. The Taylorstown, VA-based EcoVillage of Loudoun County, for instance, features a significant amount of open space and housing clusters positioned around a community center. Builders also have focused on mixed-use developments, which feature homes, retail centers and office buildings within walking distance; “in-fill” development, which revitalizes contaminated or blighted locales; and co-housing. However, green buildings can cost as much as 7% more than traditional construction; and green products often are 25% more expensive than conventional materials. Even so, industry experts say “plastic lumber” for decks and fences, roofing tiles made from recycled tires and bamboo flooring are growing more popular and declining in price. According to the U.S. Green Building Council, green construction should grow 3% this year, up from 1% growth last year. Emergency Plans Focus on Real-World FlexibilityFacilities are changing their outlook on disaster plans, ceasing to look at them just as a list of set rules and instead looking at them as a way of fostering flexibility and responsiveness to unforeseen emergencies. "How do you plan for something that is indeterminate?" asks James Eckert, director of corporate real estate and facilities for Owens-Corning, continuing, "You put in place a communication plan that enables you to maximize the speed and effectiveness of your response to any emergency." Owens-Corning's plan stresses the involvement of top management, close links to local officials and teams based at facilities focused on things like safety and business continuity. The Georgia Institute of Technology, meanwhile, has received a number of phone calls about its new flexible emergency plan, which has one person in each building responsible for all aspects of emergency readiness. These individuals report to one of five zone coordinators, who in turn report to the emergency command center. The emergency command center is able to give orders to the separate police, facilities and research security operational centers. CarrAmerica Realty, for its part, has performed several drills in which the staff has vacated the premises, shut down phones and computers and brought everything back up off-site. New Mortgage Programs Reward Buyers of Energy-Efficient HousesHome owners who want to do more than install programmable thermostats or add weather-stripping around doors to boost their homes' energy efficiency may want to consider an Energy Efficient Mortgage (EEM). The U.S. Department of Energy says these loans — which are used to make energy-efficient improvements — allow home owners to put the savings from lower utility bills toward their mortgage payments. Home owners can borrower as much as 15% more than the home's value without an extra downpayment or income with the Fannie Mae-backed EEM, which is currently available from Countrywide Home Loans. Since many lenders are unaware of EEMs because they have been focused on the refinancing boom, RESNET executive director Steve Baden urges borrowers to bring the program to their attention. Raines Bullish on HousingFannie Mae CEO Franklin D. Raines discredits fears about a nationwide housing bubble, explaining that home prices have soared because of low interest rates and higher incomes. The robust housing market allowed Fannie to post higher profits in January, but the mortgage giant continues to face criticism — particularly from the editors of the Wall Street Journal — for what is perceived as its widening risk. However, UBS Warburg managing director and stock analyst Gary Gordon, who has tracked the firm for more than 15 years, considers Fannie's risks reasonable and accuses the company's critics of a lack of knowledge regarding the housing market. According to Gordon, “[The critics] live in New York or some high-cost area and they worry about [the housing market] but they don't know that in Iowa, Texas and Florida things are very different.” Despite increased competition, Gordon expects another strong year for Fannie Mae. Ultra Wideband: Gaining MomentumSupporters of ultra wideband (UWB) are predicting a surge in home networking products based on the technology thanks to the FCC's February 2002 ruling authorizing commercial, unlicensed UWB implementation. The agency supposedly approved the authorization because of the technology's potential impact on public safety, which includes radar imaging that penetrates the ground and walls to aid in rescue operations. However, industry analysts think UWB-based wireless electronic products could debut as early as Christmas 2003, in the form of camcorders that can transmit wireless streaming video to computers or a TV. Other expected innovations include flat-screen computer monitors that can wirelessly link to a CPU anywhere in the house, wireless TV-to-TV transmission of programs and wirelessly connected TVs and VCRs. To allay concerns from law enforcement, the military and other entities that UWB devices may interfere with essential public services and military operations, the FCC ruled that such devices can only run in the 3.1 GHz to 10.6 GHz frequency band, while operation can only take place indoors or via handhelds if peer-to-peer communication is involved. The FCC hosted an Ultra Wideband event this past February, where several UWB technologies were spotlighted. Technologies on hand included Time Domain's handheld RadarVision device, a radar imaging system that uses the PulsON chipset, which the FCC certified last September; and a UWB intercommunications system from Multispectral Solutions, which was created for the U.S. Navy to reduce cabling clutter and prevent accidents. The odds for UWB's success would be significantly improved if the industry can work out a universal wireless standard interface. NAHB and OSHA Form Alliance to Advance Job Site SafetyNAHB earlier this month announced plans for an alliance with the Occupational Safety and Health Administration (OSHA) to advance job site safety throughout the home building industry. The plans were announced during a joint signing ceremony with NAHB President Kent Conine, Assistant Secretary of Labor for OSHA John Henshaw and NAHB Construction Safety and Health Committee Chairman Andy Anderson. “Through the alliance, we will be able to leverage our association’s resources and focus greater attention on addressing the educational needs of the residential construction industry workforce,” said Conine. He noted that a particular focus of this effort will be meeting the safety needs of Spanish-speaking workers, who constitute the fastest-growing segment of the home building industry’s labor pool. “This partnership will ensure that all workers in our industry are provided with the latest construction safety information, training and compliance guidance,” Conine said. During a tour of a residential construction job site last October, Henshaw recommended that NAHB collaborate with OSHA’s new alliance program to bolster its construction safety efforts. During the International Builders’ Show in Las Vegas, the NAHB Board of Directors passed a resolution that encouraged the association to enter into an alliance with OSHA to foster a safe work environment. The alliance will give NAHB the opportunity to continue expanding its relationship with OSHA, leveraging the resources of both organizations to increase workers' safety and health protection and reduce worker compensation costs. Housing SnapshotMortgage interest rates last week continued to fall deeper into record low territory, and fixed-rate loans were about one-and-a-half percentage points lower than they were a year earlier. Further discussion from Federal Reserve Chairman Greenspan on the dangers of deflation fueled speculation that another cut in the central bank's overnight lending rate could happen later next month. With $350 billion in tax cuts headed for the pockets of U.S. consumers and businesses, the consensus is growing that economic output in the second half of this year will be decidedly stronger than in the first half. The economy grew at a rate of 1.6% in this year's first quarter; growth in the 3%-4% range is expected in the second half. A surging Euro was good news for U.S. exports but raised questions about the sustainability of Europe's economic recovery. Mortgage Interest Rates30 Year Fixed Rate: 5.34\% Housing Starts: Apr. 2003Total: 1.63 million\% New Home Sales: Apr. 2003 *1.028 million Existing Home Sales: Apr. 2003 *5.84 million * Seasonally Adjusted Annual Rate June Is National Homeownership MonthAlmost two decades ago, human rights activist Yelena Bonner, wife of renowned Soviet dissident Andrei Sakharov, wrote an essay about housing’s place in American life that resounds to this day. After observing our way of life for only a short time, she wrote, “What Americans want is a house. No matter their place on the social ladder, they want a house of their own.” “A house is a symbol of independence, both spiritual and physical,” she continued. “The American feeling about his house expresses the main traits of Americans — the desire for independence and privacy. But that attitude gives rise to a third trait: ‘My house is my pride and joy.’ And from that comes: ‘My city, my state and my country is my pride and joy’.” As Bonner so eloquently noted, housing is one of the distinguishing characteristics of American life. Whether it’s a downtown apartment or a detached home in the suburbs, the home is an important aspect of cultural, social and economic well-being for most families. In particular, homeownership offers significant benefits to families and communities. It is associated with higher incomes and greater social cohesion, and home equity is a principal source of both wealth and economic growth. It accounts for approximately 28% of household net worth in the United States, and an even higher percentage of the net worth of lower income households. Home equity also provides an important source of capital for other activities, such as home improvements and financing higher education and new business startups. Unfortunately, homeownership and its advantages are not enjoyed equally by all Americans. The nation’s overall homeownership rate stands at 68%, but homeownership rates for African-American and Hispanic households remain below 50% even though minority homeownership is on the rise. This disparity is significant because it further widens the wealth gap between these groups and whites. With the price of housing serving as a major barrier to homeownership, many minority families are unable to accrue the home equity that provides financial security for millions of American families. In addition to benefits to individuals, new residential construction also brings strong economic benefits to the nation’s communities. On average, construction of 100 single-family homes generates $11.6 million in new income to local businesses and workers in the first year of construction, and $2.8 million every year thereafter. It also creates 250 jobs in the local community during the first year of construction, and 65 jobs every year thereafter. In terms of their contribution to public revenue, these 100 new homes bring $1.4 million in additional local taxes and fees in the first year of construction, and $498,000 every year thereafter, for a total of $5.9 million over 10 years. As for individuals, the rewards to communities are significant and ongoing. June is National Homeownership Month, a time to celebrate the many benefits of homeownership and redouble our efforts to ensure that homeownership is an attainable goal for all Americans. Yelena Bonner closed her essay with simple, poignant words that transcend political boundaries and are echoed today by millions of American families. “I want a house,” she said. As home builders, it is up to us to help ensure that every American who wants to own a home has that opportunity. Reports Show Positive Local Economic Impact of HousingNAHB’s Local Impact Model is helping builders associations and members around the country estimate the local economic benefits of home building, including new income and jobs for residents. To date, NAHB’s Housing Policy Department has produced more than 240 of these customized reports, and they show that the economic impact of home building is substantial. The results have been used to counter local attempts to impose growth boundaries, increase impact fees or adopt other anti-growth measures. They have also been used to obtain approval for individual construction projects. NAHB members have used the results to defend particular projects, and as support to gain zoning or permit approval. To see more information on the average economic impact of housing for a typical U.S. city, click here. The reports take no more than 10 calendar days to complete once all the necessary data has been collected. More rapid turn-around is possible where zoning or project approval decisions, or hearings on impact fees or other anti-growth measures, are imminent. The reports are backed up with technical documentation explaining how the best available data sources, justifiable assumptions and rigorous analytical techniques have been used to generate the results. Beginning this year, NAHB has instituted a new pricing schedule for customized local impact reports. In most cases, requests for the reports should come through a state or local home builders association. For more information, contact your local association, or e-mail Elliot Eisenberg or call him at 800-368-5242 x8398. Spotline on: Dallas By Robert Morris, EO of the HBA of Greater Dallas Vital Stats:
In general, we feel very good about the shape of the housing market in Dallas and are expecting a return of job growth after two years of job losses. Builders I’ve talked to feel there will probably be a slight downturn from last year’s production pace, but that would still be a solid market by any standard.
Right now, first-time buyers are the main drivers of this market — Dallas-Ft. Worth is probably the single most affordable major metropolitan area for housing, and that keeps them coming. But when job growth resumes — and the outlook for that is promising — we expect to see the upper sectors heating up as well. By all accounts, Dallas is poised to be among the earliest metros to rebound with an economic recovery. So while home sales and production are already robust, there’s reason to believe we’ll be back to break-neck speed before long. Biggest source of concern for builders: In terms of external factors, job growth is the number one concern. But on the inside, builders are very concerned about the increasing levels of impact fees that cities are imposing. That’s an issue that translates directly to housing affordability. Market trends: Anything priced under a quarter-million is being absorbed right away — that’s the trend, and we should continue to see strong demand for entry-level homes. Our production (high-volume) builders have all notched their market focuses downward to affordable product, which is really moving. They’re all poised to move into higher markets as soon as the economic indicators support that. On the flip side, much of the multifamily product that’s being built is on the upper end, aimed at lifestyle renters like empty nesters and young professionals who want a lot of amenities. Where mid-market vacancies have opened up, move-in incentives are big. Some will pay moving costs, provide a year of free dry cleaning or even send lease-signers on a one-week cruise. Remodeling seems very healthy right now. Our remodeling members are doing well. Many are closing on big contracts that might have been on the backburner earlier due to war jitters. Those uncertainties seem to have been resolved, and there’s a great deal of activity in that market. Eye on the EconomyDavid F. Seiders, NAHB Chief Economist The eagerly awaited economic rebound in the wake of the war with Iraq has not yet materialized, despite the downshift in “geopolitical uncertainties.” To be sure, we’ve seen a number of promising post-war developments, including lower oil/energy costs, a stronger stock market, lower interest rates and quality spreads in the bond markets, a lower dollar on the foreign exchange markets and rebounds in measures of consumer confidence. These are welcome “pre-conditions” for an economic rebound. However, spending patterns in the U.S. economy still are quite weak, and weekly data on unemployment insurance claims suggest that the job market still is losing ground. Economic fundamentals still are weighing heavily on the economy … Perhaps it’s just too early to see evidence of an economic rebound. After all, President Bush didn’t declare an end to major military operations in Iraq until May 1. But it’s more likely that too much of the pre-war economic weakness was pinned on those dratted geopolitical uncertainties, with too little blame placed on deep-seated problems that still are hanging over the U.S. and global economies following the excessive binges that led up to the recession of 2001. The bursting of the stock market bubble still is reverberating through much of the economic system, and measures of excess industrial capacity recently rose to 20-year highs. It’s becoming painfully obvious that success in the war effort simply is not enough to spur corporate America into the kind of spending and hiring mode that’s necessary to carry the economy forward on its own. More federal policy stimulus is needed to keep the economy moving … The lackluster economic recovery recorded so far has relied very heavily on extraordinary double-barreled doses of monetary and fiscal policy fired off in rapid succession since early 2001. The Federal Reserve has slashed short-term interest rates to historic lows in order to cushion the impacts of bursting bubbles and other forces. The Bush Administration has cut taxes and outside forces have spurred federal spending on defense and national security. The economy certainly needs federal economic stimulus — partly because of a newfound fiscal drag from beleaguered state and local government budgets that have fallen into serious deficit around the country. The Fed should ease monetary policy to counter rising risks of deflation … The Federal Reserve held short-term rates steady at the May 6 FOMC meeting. However, the Fed installed a risk assessment slanted toward weakness and fingered price deflation as the major emerging threat to the U.S. economy — a threat that has been accentuated by price data released since then (the April PPI and CPI reports). The Fed’s unprecedented deflation slant put immediate downward pressure on long-term interest rates (presumably a deliberate effect) and opened the door to near-term cuts in the short-term rate that have been the normal focus of monetary policy (i.e., the federal funds rate). Fed Chairman Alan Greenspan said nothing to alter this interpretation during testimony before the Joint Economic Committee on May 21, and there’s a better-than-even chance (priced into the fed funds futures market) that the Fed will cut the federal funds rate target at the next FOMC meeting on June 25. Greenspan also said the Fed is considering the use of unconventional monetary policy weapons, including frontal attacks on longer-term interest rates in open market operations. The housing sector continues to defy economic weakness and deflationary forces … Both single-family housing and remodeling activity continue to pace a truly remarkable performance by the housing sector of the U.S. economy. Indeed, broad-scale economic weakness has bestowed benefits on the interest-sensitive housing market, buoying home sales and stimulating waves of mortgage refinancings that have freed up huge amounts of accumulated housing equity to support spending on remodeling (and other things) by home owners. The support to housing demand from falling mortgage rates (now below 5.4%) also has bolstered house prices, a dramatic development in an economy toying with broad deflationary forces. Indeed, median prices for existing homes sold posted a solid 7% increase (year-over-year) in the first quarter, equivalent to the performance for all of 2002. Housing starts retreated by 6.8% in April, prompting speculation about fundamental problems emerging in the heretofore resilient housing sector. But most of this decline was in the volatile multifamily sector. Furthermore, issuance of building permits was up for both single-family and multifamily housing, and the backlog of unused permits rose substantially in both components of the market, providing a strong foundation for starts in May. To top things off, NAHB’s Housing Market Index for May showed a healthy rebound in the attitudes of single-family builders, particularly with respect to the prospects for home sales in the future. NAHB Chief Economist David Seiders analyzes the economy from the point of view of the housing market every other week in the free e-newsletter, “Eye on the Economy.” The preceding is a reissue of his May 21 e-newsletter. To subcribe to “Eye on the Economy,” click here.
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To learn more or to order any of these three NAHB economic publications, visit the Economics Publications Information section of the NAHB Web site or call 800-223-2665. Sen. Graham Offers Support for Homeownership Tax CreditSen. Graham Offers Support for Homeownership Tax Credit Following a May 6 address to the NAHB Executive Board, Sen. Lindsey Graham (R-SC) offered to support S. 198, homeownership tax credit legislation now pending in the Senate. (For information on S. 198, click here and enter the bill number in the box at the upper left.) At the request of NAHB President Kent Conine, Graham pledged to sponsor the bill, which is one of the association’s top legislative priorities this year. The measure would provide developers with tax credits to make it economically viable to construct or rehabilitate single-family homes in inner cities, struggling suburbs and isolated rural areas where affordably priced housing is in short supply. During NAHB’s annual Legislative Conference the following day, drumming up support for the bill was one of the objectives of builders visiting Senate offices. At the time of Graham’s appearance before NAHB leaders, only three senators had signed onto the bill — Gordon Smith (R-OR), Rick Santorum (R-PA) and Debbie Stabenow (D-MI). In his address at the National Housing Center, Graham told builders that he would fight for the President’s economic stimulus plan. “We need to grow this tax package to stimulate the economy and create jobs,” said Graham. “We need to give money back to the people so that they can afford to buy a house,” he said. Graham was one of eight House and Senate candidates targeted last fall in NAHB’s voter mobilization effort, and the senator thanked the home builders for their support. “You came to a debate and did a TV commercial for me. You were terrific. You are a political force,” he said. Photo by Herman Farrer Bill Addresses Reducing Wildfires in National ForestsThe U.S. House of Representatives on May 20 approved legislation that would reduce the risk of wildfires in national forests and areas administered by the Bureau of Land Management. The legislation has been endorsed by President Bush and is supported by NAHB. Sponsored by Reps. Scott McInnis (R-CO) and Greg Walden (R-OR), H.R. 1904, the “Healthy Forests Restoration Act,” is modeled after the President’s Healthy Forests Initiative. The measure would enable federal land management agencies to address wildfire-prone conditions that threaten stands of harvestable timber and communities adjacent to federal lands. The bill would provide a streamlined judicial review process for forest-thinning projects on up to 20 million acres. The Senate is expected to take up similar legislation before the peak fire season this summer. To read the bill, click here and type H.R. 1904 in the box at the upper left. Construction Defect Laws Help Restore Liability InsuranceBuilders in a growing number of states can expect an easier time settling construction defects, now that “notice and opportunity to repair” legislation has been signed into law. The process, which asks home owners to notify builders and give them the chance to fix defects before filing a lawsuit, is a first step in making general liability insurance more accessible and affordable for builders. Colorado is the most recent state to adopt notice and opportunity to repair language, which was included in a major construction litigation reform package. The new law contains favorable caps on damages, including limiting a plaintiff’s recovery to actual damages, capping non-economic damages at $250,000 and implicitly removing the option to sue for punitive damages. The bill also limits damages in a construction defect action to $250,000; the tripling of actual damages was previously allowed. Attorneys’ fees are included in that amount. Rob Nanfelt, government affairs director for the Colorado Association of Home Builders, said the reforms have made insurers “very interested” in returning to the market. He is hopeful that surplus insurers will return to Colorado in three to six months, and that major carriers will follow within a year. Colorado’s bill contains some of the strongest construction litigation language passed to date, and that has spurred its opponents to file an initiative for a voter recall on the 2004 ballot. Nanfelt’s association is working vigorously to keep the law in place. In addition to Colorado, six other states — Idaho, Indiana, Kansas, Kentucky, Montana and West Virginia — have passed notice and opportunity to repair bills in 2003. A bill in Florida awaits Gov. Jeb Bush’s signature, and a number of other states are still considering legislation. Arizona, California, Nevada and Washington already have laws in place. For more information on the notice and opportunity to repair process, talk to your state lobbyist or e-mail NAHB’s Marie Zenner or call her at 800-368-5242 x8279. Builders Watching How States Remedy Budget DeficitsWith new residential construction always a tempting target for states and municipalities that are trying to find new revenue to balance their budgets, many home builders associations are watching their state legislatures especially closely this year as massive budget deficits are piling up in states across the country. Budget figures released recently by the American Legislative Exchange Council (ALEC) show a grim fiscal picture, with state deficits projected at nearly $95.2 billion for 2004 and the remainder of 2003. Several states have already enacted, or are considering, a variety of tax increases. Others are pursuing major spending cuts, many of which can have an impact on public infrastructure. Also, proposals to increase or cut property taxes continue to come up frequently before state legislatures. These decisions can have a major impact on impact fees and other assessments on new housing. “One must wonder when state budgets will begin to see the light of day,” said Michael Flynn, director of policy and legislation for ALEC, the nation’s largest bipartisan organization of legislators. “States continue to address deficits with a mix of spending cuts, tax increases and the use of one-time funds,” Flynn said. “But they’re using duct tape instead of fixing the plumbing.” ALEC has identified the 10 states with the biggest deficits as of April:
Arizona Workers Feel Housing Affordability SqueezeA shortage of affordably priced housing for the lowest income households in Arizona is squeezing housing affordability for residents of the state who have higher, but still modest incomes, according to a report commissioned by the Department of Housing and Urban Development and the Arizona Governor’s Office of Housing Development. The report found that as of 2000 there were an estimated 194,700 households in Arizona that were paying more than 28% of their income for housing or living in crowded or substandard conditions. That represents 10.3% of the state’s households. By being forced to secure housing that is beyond their means, the lowest income households “occupy housing that would normally be available for households higher up the income scale,” says the report, which was prepared by Elliott D. Pollack and Company in association with housing consultant John Lopach. “In many parts of Arizona, this phenomenon could affect the housing supply for 25% to 30% of the population,” the report says. Exacerbating the affordability problem, “there are fewer married couple families in the state today and more single householder families,” the report finds. “For single parent families and single person households, the rising cost of housing is a significant issue.” If they are not part of dual income families, typical workers could well experience problems in finding affordably priced housing. The Arizona Department of Economic Security provided some examples of the average wages for a number of occupations and the housing costs those workers could afford in 2000:
Median home prices during the third quarter of 2001 were $149,000 in Phoenix-Mesa, $135,000 in Tucson and $155,000 in Flagstaff. In a telephone survey across the state, the five greatest barriers to housing affordability were identified as:
Report Tackles Misperceptions About Housing and GrowthA new report from the Housing and Building Association of Colorado Springs — “The Truth About Home Building and Neighborhood Development in the Pikes Peak Region” — says that demand is driving residential construction in the area and that housing is making a significant contribution to the local economy. “Builders build what people want; otherwise they’d go out of business,” the report says. “More than anything, development is determined by the way our community grows, how the industry is regulated and the strength of our local economy. Among the reports findings:
Housing Quality Awards Accepting Remodeler EntriesResidential remodelers in the United States, including full-service and specialty remodelers, can now participate in the National Housing Quality (NHQ) Awards, the highest recognition by the housing industry for quality achievement. The remodeling category has been added to existing categories for builders and trade contractors. Sponsored by the NAHB Research Center and the Reed Residential Group, which is the publisher of Professional Remodeler and Professional Builder magazines, the awards recognize the role of customer-focused quality in construction, business management, sales, design and warranty service. Companies participating in the awards gain insight into their businesses through the application process and feedback from the judges. The competition is modeled after the Malcolm Baldrige National Quality Award. The awards will be presented at next year’s International Builders’ Show in Las Vegas, and winners will be featured in Professional Remodeler and Professional Builder. To request an application package, e-mail Rita Knab or call her at 800-638-8556 x6225. Entries for the remodeling awards must be received by Sept. 1. Entries from builders and trade contractors are due one month earlier — by Aug. 1. For more information on the National Housing Quality program, click here. NAHB Litigators Support Property Owner RightsIn an effort to protect the Constitutional rights of NAHB members who own property, NAHB’s litigators have become involved in two “takings” cases where lower courts have misapplied or ignored tests outlined by the U.S. Supreme Court to determine when a person’s property has been taken and “just compensation” is required. The Fifth Amendment to the U.S. Constitution requires compensation for private property when it has been “taken for public use.” Federal, state and local environmental and growth-related land-use laws can limit or prohibit development on a property, creating economic hardship for the landowner. In the case of Torromeo v. Town of Fremont, NAHB’s Legal Affairs staff is asking the U.S. Supreme Court to decide whether an NAHB builder member is entitled to receive compensation for the nine months he was prevented from receiving building permits under a local growth control ordinance that was later found to be illegal. After the state court in New Hampshire found the ordinance illegal and ordered Fremont to give landowner Henry Torromeo the permits he needed, Torromeo sued the town, claiming that his property had been taken for those nine months in violation of the Fifth Amendment. The New Hampshire Supreme Court ruled against Torromeo. In April, NAHB petitioned the U.S. Supreme Court to hear the case, arguing that the Town of Fremont had exceeded its police powers by enforcing an illegal ordinance and that the New Hampshire Supreme Court had contradicted federal court case law in its decision, which suggested that a taking can only occur after an ordinance has been found to be unconstitutional. NAHB also argued that the appropriate compensation for Torromeo was compensation, not building permits, as suggested by the New Hampshire court. The U.S. Supreme Court is not expected to act on this matter until July at the earliest. The second case, Santini v. Connecticut Hazardous Waste Management Service, involves a developer who was unable to complete the second phase of his subdivision when it was announced that the site was one of three finalists for a hazardous waste disposal facility. A map of his property and development, 74 acres of which had been completed, appeared on the front page of the local newspaper adjacent to the international symbol for radioactivity. In 1994, the developer filed a claim for inverse condemnation in the Connecticut state courts. The case was appealed all the way to the U.S. Supreme Court, where he did not prevail. A takings claim has subsequently been filed in the Second Circuit of the U.S. District Court. In March, NAHB and the HBA of Connecticut filed a friend-of-the-court brief supporting Santini. NAHB Works to Open Federal Courts for Land Use CasesOn behalf of NAHB member and National Housing Hall of Fame inductee Frank Kottschade, NAHB’s Legal Affairs team is asking the U.S. Supreme Court to decide whether property owners should be able to bring federal constitutional claims in federal courts just like other constitutional claimants. Before landowners can bring their Fifth Amendment takings claims to federal court, they typically have to wait eight to 10 years and spend hundreds of thousands of dollars to have their case litigated in state court. Only after the state court litigation is complete can a property owner have his case heard by a federal judge. To add insult to injury, federal courts routinely dismiss these cases because the matter has already been litigated. This leaves the property owners with a federal Constitutional claim that cannot be brought in federal court. Kottschade’s case stems from his unsuccessful efforts to construct 104 townhomes on 16 acres of land in Rochester, MN, that the city’s land use plan identified as appropriate for higher density development. The city’s planning and zoning commission recommended that the property be re-zoned to accommodate affordable housing at a greater density as long as a general development plan for the property was submitted and approved. After Kottschade provided a plan that was consistent with all of the local zoning laws, the commission recommended nine onerous conditions that were adopted by the city council and effectively killed the project. Those conditions, Kottschade said, reduced the development potential of his property by more than 75%, shrinking the number of townhomes he could build from 104 to 26, and making the project economically infeasible. Following months of additional reviews, the city upheld the onerous conditions. Kottschade then filed suit in the U.S. District Court for the District of Minnesota, arguing that the city’s regulations took his property and that he was due “just compensation” under the Fifth Amendment to the U.S. Constitution. Even though the federal courts hear cases such as those involving the violation of First Amendment free speech rights or Fourth Amendment privacy rights, the Minnesota District Court decided that Kottschade needed to file his case in state court and, therefore, denied a federal hearing of its merits. Kottschade subsequently appealed the case to the Eighth Circuit, which upheld the lower court's decision. NAHB is now in the process of asking the U.S. Supreme Court to hear Kottschade's complaint against the City of Rochester. Home Ventilation Committee Seeks New MembersNAHB members have an opportunity to participate in the ongoing review of indoor air quality standards that may be published by the American Society for Heating, Refrigerating and Air Conditioning Engineers this July. The standard that has been approved for publication by ASHRAE’s Standing Project Committee SPC 62.2P includes requirements for continuous whole-house mechanical ventilation in most of the country, vented kitchen and bathroom fans, low-sound ratings on most fans, testing of furnaces for backdrafting in many homes and the prohibition of air handlers in garages unless duct systems pass a leakage test. NAHB has criticized the standard because there is little scientific basis for it, and the association plans to appeal the publication decision for technical and procedural reasons. No broad-based national studies have demonstrated that indoor air quality in homes built to current standards is inadequate. Especially troublesome is a requirement for continuously blowing outdoor air into houses in hot, humid climates. This could cause condensation and mold growth on surfaces chilled by air conditioners. The SPC 62.2P Committee has announced that it is looking for individuals and organizations to expand the membership of the committee. The membership would not become effective until July at the earliest. Representing the interests of NAHB members, Tom Kenney from the NAHB Research Association has been a member of the committee for the past five years. NAHB has applied to be an organizational member of the committee after July. In seeking new members, the committee is interested in gaining the perspectives of small home builders, production builders and energy-efficient builders and many others who represent producers, users and organizations. NAHB members who are interested in serving on the committee can obtain the necessary forms by clicking here or calling 404-636-8400 x1136. For further information, e-mail Dick Morris at NAHB or phone him at 800-368-5242 x8444. ICC Approves Low-Cost Foundations for Remodelers and BuildersAt hearings in Fort Worth,TX, last fall, the International Code Council (ICC) approved a proposal by NAHB that permits additions built on Frost-Protected Shallow Foundations(FPSFs) to be attached to houses and commercial buildings on deep, or shallow, foundations. Also under the NAHB proposal, unheated garages and porches with deep foundations can be attached to houses built on FPSFs. FPSFs are approved in the 2003 International Building Code and 2000 and 2003 International Residential Code. Building additions on Frost-Protected Shallow Foundations (this link is available to NAHB members only) can provide remodelers and commercial builders with substantial savings, and it disturbs less soil and landscaping. Where it is necessary, small FPSFs can even be dug by hand. With the ability to build attached garages on deep foundations, builders have an alternative to insulating and heating the garages, or using unheated FPSF designs with thick insulation under the entire slab. Some buyers may prefer not having to heat their garages in the winter. NAHB recommends that jurisdictions adopting the 2000 IRC amend their codes to include the proposals approved in the 2003 code. NAHB Helps Oklahoma Builders Advance Impact Fee AlternativesWhen the planning and community development staff of Stillwater, OK, first considered drafting an impact fee ordinance that would charge builders about $1,000 per house for improvements to the city's transportation infrastructure, the Stillwater Home Builders Association (SHBA) contacted NAHB's Land Development Department for assistance. Responding to the association's call, NAHB land development staff flew to Stillwater and met with city officials and SHBA representatives to discuss possible infrastructure financing alternatives as well as to analyze the legal requirements that would be necessary for the city to implement the impact fee. NAHB staff determined that the city's impact fee ordinance did not meet all the necessary legal requirements. Rather than implement impact fees that would only affect new home buyers, staff instead suggested that Stillwater officials consider infrastructure funding alternatives such as bonding capacity, special assessment districts and community-wide tax increment financing. NAHB's involvement raised enough questions among city officials that the city of Stillwater has delayed the adoption of the fees and is now considering alternative tools to finance the community's road improvements.
Get a 10% Discount on Sales Incentive Programs From eMaritz Receive a 10% discount on the program fees for every sales reward and employee recognition program you launch as an NAHB member through eMaritz. NAHB has teamed with eMaritz, a division of Maritz Inc., the world’s largest source of integrated performance-improvement, incentive travel and marketing research services for more than 70 years. To learn more, click here or call eMaritz at 866-eMaritz (866-362-7489) and identify yourself as an NAHB member to request a demonstration and receive your discount. 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 to explore the numerous advantages associated with membership in your local, state and national home builders association. Center Provides Information on Housing for SeniorsThroughout May, in conjunction with Older Americans Month, the National Center for Seniors’ Housing has been providing NAHB members and consumers with the most current information on older adult housing issues and options. Established in 2000 with the goal of helping all Americans live comfortably, safely and independently in their own homes as they age, regardless of their income or abilities, the center is a cooperative effort between the NAHB Research Center and the U.S. Administration on Aging. The center was created in response to the overwhelming desire of people age 55 and over to age in place coinciding with the rapid expansion of the nation’s elderly population, said its program director Charlotte Wade. The annual “Directory of Accessible Building Products” and the “2002 National Older Adult Housing Survey (NOAHS) Report” are two of the center’s most popular publications.
The directory sells for $5.00 and is available from the NAHB Research Center’s bookstore.
The NOAHS Report sells for $45.00 at the research center’s bookstore.
Based on the success of the demonstration house, the center now offers consulting services to builders, developers and others who are interested in the older adult market. For more information, e-mail Charlotte Wade or call her at 301-430-6213.
BuilderBooks.com offers a variety of publications about seniors housing online. To view or purchase these publications, click here. NAHB Supports Voluntary ‘Visitability’NAHB supports efforts by its members and affiliated home builders associations interested in developing voluntary programs that promote accessible design features for single-family construction and remodeling. At the recent spring board meeting in Washington, D.C., NAHB's directors passed a policy resolution in favor of voluntary actions and programs and opposed to mandatory requirements in single-family construction and remodeling. The resolution was the result of a yearlong NAHB task force study of the issue of “visitability,” which refers to housing that is accessible to people with disabilities. Eleanor Smith, founder of the Atlanta-based activist group, Concrete Change, coined the phase. NAHB’s policy is in response to increasing interest by state and local communities to mandate accessibility, or visitability, features in single-family homes that are similar to accessibility requirements for multifamily housing under the federal Fair Housing law. While visitability legislation has sprung up across the country, Smith and several advocacy groups in Atlanta have partnered with the Home Builders Association of Georgia to create a voluntary accessibility program for builders of single-family new construction. Georgia’s voluntary program, called Easy Living, has been widely accepted by home builders in the state. “We believe that voluntary programs work for both builders and people with disabilities, and also that coalition-building leads to a greater understanding between the building industry and accessibility advocates,” said Ed Phillips, executive director of the Home Builders Association of Georgia. “We would like to see our Easy Living Program used as a model for home builders associations across the country.” NAHB will serve as an information resource for state and local HBAs interested in developing similar voluntary programs that promote accessibility features in the construction of new single-family homes. For information, contact Leslie Marks, NAHB Seniors Housing Council, at 800-368-5242 x8235, or Jeffrey Inks, Construction Codes & Standards, at 800-368-5242 x8547.
BuilderBooks.com offers a variety of publications about seniors housing online. To view or purchase these publications, click here. Four Named 2003 Icons of the Seniors Housing IndustryThe NAHB Seniors Housing Council announced four winners of its 2003 Icons of the Industry Award for their leadership in developing communities, products and educational services targeted specifically to the growing 50+ seniors housing market. The awards were given during the council’s recent Seniors Housing Symposium in Indian Wells, CA. “The NAHB Seniors Housing Council is pleased to recognize these individuals, educators and companies who have made substantial contributions to the growth and development of the seniors housing industry,” said L. Earl Armiger, chairman of the NAHB Seniors Housing Council and a multifamily developer from Ellicott City, MD. “Our Icons winners are pace-setters, and their example has helped elevate housing for the 50+ consumer.” The Icon winners were:
The Icons of the Industry Awards is one of many programs offered by the NAHB Seniors Housing Council. The council provides information, education and networking opportunities for its members and represents NAHB on seniors housing issues. For information, contact Jeff Jenkins at 800-368-5242 x8292 or via e-mail. BuilderBooks.com offers a variety of publications about seniors housing online. To view or purchase these publications, click here.Don't Put the CAD Before Your ProductThe fourth in a series of tech talks for builders Computer-aided design (CAD) software and similarly exciting technology solutions can be used quite effectively to research and hone home designs before you commit money to designing models. And when savvy builders use these solutions in conjunction with their Web sites, they have created some very strong marketing tools. For instance, with the aid of CAD-developed images, builders have increased the scope of their Web sites by using them as online design incubators. You can, too, by simply posting your digital images, elevations, renderings, walkthroughs, floor plans and product shots in a private section of your site. Then gather input from focus group participants, marketing consultants, designers, engineers, trade contractors and others to develop new designs or fine-tune existing ones. (Be sure not to post those images where the public can see them, or your competition may scoop you.). You can also e-mail digital materials to your research team. In addition, once you’ve defined your product, you can use the same technological tools to nail down selections and options with your customers because CAD lets them see their choices “in place.” The ability to customize a house online can be a powerful sales tool, too, one that busy prospects or out-of-town customers will especially appreciate. Don't become so enamored of CAD software that you lose sight of what you really need it to accomplish. First focus on your finished product. Answering the following questions before you purchase your CAD software will help put the technology into proper perspective:
Answering these questions will help you focus on your design whether you use CAD, integrate your design software with estimating software, hire a designer to produce them or draw your plans by hand. As with the other processes discussed earlier in the tech talk series, know where you’re headed with product design and development before you plunk down money for technology solutions. While you’re doing your homework before purchasing, don’t forget to consider the expertise of your design and estimating staffs in the technology. They may know CAD software options inside out and be able to advise you on the technology’s pros:
And its cons:
But whether your staffers are CAD whizzes or are totally new to the technology, be prepared to invest in training because every CAD program is different. Some CAD products (like Chief Architect) can be integrated with third-party estimating programs. Others (like Timberline Office) offer fully integrated design, estimating and take-off modules in one package. Fully integrated packages are extremely convenient but, as we’ve mentioned before, they can be pricey. Earlier Articles in This Series
Next: Managing prospects and buyers
Bill Allen is president of W.A. Allen Consulting and a member of NAHB’s Business Management & Information Technology Committee. His company, headquartered in Redmond, WA, provides information technology consulting services and process management assistance to the home building industry. Allen can be reached at 425-885-4489 or via e-mail. Or visit the W.A. Allen Consulting Web site.
Want more information about using technology in your business? Check out the online resources available from NAHB’s Business Management Department: “Tools for Running Your Business.” There are also articles about human resources, financial management, sales, production, customer service and other business-related topics. In addition, visit the NAHB Software Users Network Discussion Forum (SUN) to ask technology consultants and other builders what they think of various software packages and applications. BuilderBooks.com also offers a variety of publications about strategic 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. Ask a MIRM About Standard and Upgraded Features and FinishesMary DeWalt, MIRM ANSWER:
Use the services of experienced model home merchandisers who understand the importance of target marketing. They can advise you on when to upgrade and tell you what upgrades to demonstrate. They are also trained to showcase the special features and benefits of your homes, accentuate positive architectural features and eliminate the negative. Mary DeWalt, MIRM, is the 2003 chair of NAHB’s Sales and Marketing Council and president of DeWalt Design Group in Austin, TX. She can be reached by e-mail.
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. Rep. Johnson Honored for Commitment to Affordable HousingAt a ceremony during NAHB’s spring board of directors meeting in Washington earlier this month, Rep. Nancy Johnson (R-CT) received the 2003 Robert J. Corletta Award in recognition of her efforts on behalf of affordable housing. Johnson was cited for her role in making the Low Income Housing Tax Credit a permanent part of the tax code and increasing the amount of that program’s credits allocated to the states each year. In her remarks, Johnson encouraged developers to invite their elected representatives to tour their affordable housing communities. Just such a tour, she said, “opened my eyes to the fact that this sort of housing is a real asset to the community, and this experience was responsible for my focusing attention on the need to encourage affordable housing production and to protect and expand the Low Income Housing Tax Credit program.” She also noted that the tax credit is a great example of a private-public partnership that works to meet the nation’s need for affordable housing, which “is as great as ever.” NAHB President Kent Conine, who along with his wife, Meg, develops and builds affordable housing, praised Johnson’s “commitment to affordable housing programs” and her record of keeping them “among her top legislative priorities.” The award is sponsored by NAHB Multifamily and the Neighborhood Development Collaborative (NDC) and is named after the co-founder of the NDC and a past director of NAHB Multifamily, who was considered a visionary in the affordable housing industry. The event was hosted by NAHB’s Housing Credit Group, which represents the special interests of the Low Income Housing Tax Credit’s developers and managers. Nashville Looks to Training for Safer CommunitiesProject CRAFT, the Home Builders Institute's award-winning training program for adjudicated juveniles, was among the innovative efforts to rehabilitate youthful offenders discussed in Nashville on May 15 by an assembly of home builders and nearly 100 representatives from judicial, education, social services and workforce development organizations. The two-hour event, “In Nashville’s Backyard — New Approaches to Safer Communities,” was co-hosted by HBI, the workforce development arm of NAHB. Representatives of Project CRAFT’s industry partners, the Home Builders Association of Middle Tennessee and the HBA of Tennessee also participated. Housing traditionally has been at the forefront of the state’s innovative workforce development initiatives. “It is truly gratifying to see so many different organizations coming together to help these young people build new lives,” said John Greeter, owner of Greeter Building Center and a member of the Tennessee Workforce Investment Board. “It is through events like this that you learn about programs that are working for the participants and employers as well. HBI’s Project CRAFT is doing its job of connecting youths with careers in the industry,” he said. Last July, HBI received funding from the U.S. Department of Labor's One Stop Youth Services Demonstration Model to provide employment, training and rehabilitation services to 18- to 24-year-olds in Davidson County and Nashville who had been involved in the court system. New York Requires More Wind-Resistant WindowsAndersen Windows is providing information to help architects, builders and remodelers in New York deal with stringent codes introduced this year that require windows and patio doors in homes and buildings along much of the state’s coast to withstand higher wind pressures and wind-borne debris. Andersen Windows is a member of the National Council of the Housing Industry — the Supplier 100 of NAHB. “Now is not the time for denial — building professionals need to be prepared for these code changes, or risk costly delays on the job site,” said Steve Berg, specialty products manager for Andersen Windows. “But there’s light at the end of the tunnel,” he said. “After similar regulations were imposed in Florida, most of our customers reported that determining coastal requirements eventually became second nature — like knowing energy efficiency and egress requirements.” Andersen suggests these few steps to ease New Yorkers’ transition into the new code environment:
Andersen is expanding its product line with frame, sash, glass and hardware enhancements to satisfy impact-resistance, performance-rating and energy-efficiency requirements. In addition to Andersen Windows (800-426-4261 x3018), suggested resources for further information include: New York State, Department of State, Division of Code Enforcement and Administration; Window and Door Manufacturers Association; International Conference of Building Officials; and the International Code Council. Four New Members Inducted Into National Housing Hall of FameIn honor of their contributions to the nation’s housing industry, four new members were inducted into the National Housing Hall of Fame on May 10 during NAHB’s spring board of directors meeting in Washington, D.C. Joining the more than 200 other honorees in the Hall of Fame, which is located in the Grand Hall of the National Housing Center, are:
Photo by Herman Farrer HomeAid Assisting Homeless VeteransHomeAid America is currently developing shelter projects for homeless male veterans in Northern California and for homeless female veterans in Central Massachusetts, with shelter projects for veterans under construction in other parts of the country. HomeAid, a national organization established by the Building Industry Association of Southern California 14 years ago, is dedicated to building shelter for the homeless. The National Coalition for Homeless Veterans estimates that on any given night 271,000 veterans are homeless, 23% of the nearly one million people estimated to be homeless in America on any given night. More than three-fourths of homeless veterans suffer from either substance abuse or mental health problems, or both. Operating under the auspices of the Building Industry Association of Superior California, last year HomeAid Sacramento, builder captain Renaissance Homes and Stafford King Wiese Architects broke ground on a sorely needed 8,300 square-foot expansion of the Sacramento Veterans Resource Center. The new wing will house a 19-bed residential drug and alcohol treatment program for male and female veterans who need the intensive recovery services of a 90-120 day residential program. The center, one of the largest of its kind in the country, assists veterans who find themselves temporarily homeless, unemployed or underemployed and provides a wide variety of support and referral services designed to help veterans return to a fully functional and sustainable lifestyle. HomeAid Central Massachusetts, directed by the Builders Association of Central Massachusetts, has identified Massachusetts Veterans, Inc. (MVI) as its first care provider. Established in 1992, MVI has provided a safe, strictly enforced drug- and alcohol-free transitional environment for more than 2,000 veterans. HomeAid plans to build an eight-bed transitional housing shelter that will serve homeless women veterans in Worcester, MA. |