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Rep. Kelly Cites NAHB’s Contribution to Economic Stimulus PackageIn an address on the floor of the House of Representatives on May 22, Rep. Sue W. Kelly, chair of the House Financial Services Subcommittee on Investigations and Oversight, praised NAHB for helping to shape a historic $350 billion tax-cut bill that included provisions to ensure that all segments of the housing industry would continue to lead the national economy forward. Rep. Kelly made her remarks after the House had passed the economic stimulus package, and the full text appeared in the June 3 Congressional Record. “Numerous business groups have been part of the process and I want to acknowledge the testimony of the National Association of Home Builders before my subcommittee on the president’s package and their contribution in supporting the overall effort,” Kelly said. “I am also aware and want to acknowledge the effort of the home builders in working with the administration in the same manner, particularly the Department of Treasury,” she said. “I very much appreciate their expertise, economic research and analysis to ensure that no part of the legislation had any unintended consequences for low income housing. As a result, we are now able to pursue an economic stimulus plan that is good for all segments of the housing industry and all segments of the economy of these United States.” Since early this year, NAHB had been working with the Administration and the Congress in support of legislation that would provide a significant boost to the economy, including housing, and create new jobs quickly. The association also worked steadily to ensure that President Bush’s proposal to eliminate double taxation of corporate earnings would not do any unintended harm to the Low Income Housing Tax Credit. In the final bill that was signed into law by President Bush on May 28, the dividend exclusion proposal had been replaced by a reduction in ordinary long-term capital gains tax rates that also applyies to dividend income. This provision actually created a new incentive for corporations to invest in the tax credit. As the U.S. economy has been recovering from the past recession slowly and fitfully, housing has attracted particular attention from economic policy makers in Washington because it is the one sector that has demonstrated full-blown strength and that has been especially responsive to the Federal Reserve’s low interest rates. Housing accounted for about one-third of growth in the Gross Domestic Product during this year’s first quarter. “For the past two years, home building has been a leader in moving America’s economy forward,” said Kelly. “Where many sectors of the economy have faltered, housing has remained a source of strength. “Enactment of the economic stimulus package that is about to emerge from this Congress will ensure that housing continues to create the jobs and stimulate the economic growth that are needed to restore full prosperity for our nation’s families and businesses.” Building News Coast To CoastU.S. Should Help Unite Housing Industry, Says ReportDespite the emergence of new products and technologies designed to improve the quality of life, the housing industry is slow in adopting these innovations because of competition among builders and the need to limit risk; the lack of necessary staff and training; minimal resources among small- and medium-size builders; the high number of independent craftsmen and the inability to protect ideas from competitors; and the challenge of sharing information with builders, suppliers, subcontractors, lenders and others. In response, RAND's recent report for the U.S. Housing Department's Office of Policy Development and Research and the Partnership for Advancing Technology in Housing finds that simply asking the industry or the government to make changes to overcome the barriers blocking adoption of new innovations will not be effective. Instead, RAND urges the government to hold conferences, symposiums and similar events to allow those in the housing industry to network with scientists and engineers. The study also recommends improving the coordination of research and development programs; making research findings more readily available; and offering funding or tax incentives to help education and training efforts. They Conserve Resources While Putting Up BuildingsAccording to NAHB Research Center environmental analyst Richard Dooley, there are presently 19 green building programs and an estimated 32,000 certified green homes in the United States. Green or sustainable building involves land-use and energy efficiency, water and resource conservation, better indoor air and the use of recycled building materials. Though green homes can cost as much as 5% more than traditional dwellings, they are growing in popularity. Architects are even using green designs in commercial and public buildings of all sizes. In Philadelphia, for instance, buildings ready for demolition as part of the Neighborhood Transformation Initiative will be deconstructed so that certain components can be reused. Furthermore, the new Cusano Environmental Education Center at the John Heinz National Wildlife Refuge will receive an award from the American Institute of Architects for its ecological wastewater-treatment system; use of recycled timber and other materials; and energy-efficient design. "There are those who say that we did this in the 1970s and it will go away. But I think it has become a cultural groundswell," remarks Philadelphia University's Engineering and Design Studio Co-Director Rob Fleming. A Home's Foyer Is Like a Window to Its SoulThe entry into a residence makes a first impression on visitors and also sets the tone for the remaining rooms. To create foyers that draw people into the rest of the home, architects and builders are incorporating design elements that make these areas more inviting. Porticoes, porches, verandas, vestibules, large front doors and grand staircases can all serve this purpose. These touches should mesh with the style of the home in general, however, and also should reflect the owners' interests and personal tastes — making them an excellent place to showcase a family heirloom or antique piece. Experts also stress that the foyer should not be cluttered, although home owners can add function to form by strategically placing a couple of extra chairs that can be moved to other rooms when needed. Logs and LightNAHB's Log Home Council estimates that log homes account for just 2% of the custom residential market, with 30,000 built annually. Unlike their dark and dreary predecessors of decades past, modern-day log homes feature high-end cabinetry, updated appliances, fashionable countertops, spas, climate-control systems and open floor plans; they also are brighter, with more windows and skylights. Regardless of the style or age, Lehigh Valley, PA-based Realtor® Carol Dorey notes that log homes usually sell fast. Expert Janice Brewster says log homes typically are built in the Adirondack "Great Camp" style, combining both woodsy and Victorian aspects; Arts and Crafts design, with handcrafted features; the rustic Cowboy-Western style; the Southwestern style, or a mixture of Native American and Spanish accents; and the Early American design, which is reminiscent of the nation's first log homes. Brewster says the popularity of each style depends on the region, with Early American preferred by log home owners in the East. Most log home owners want a sanctuary in the woods, and the added maintenance tasks are offset by lower utility bills. According to Canadensis, PA-based Pocono Log Homes owner Judi Gilje, log-home owners must look out for insect damage; power-wash the home every three to five years; and reapply preservative to keep the logs in good condition. Ohio Builders Start to Consider Building Concrete HousesPicking up on a trend that has been gaining momentum nationwide, some builders in Ohio are looking at the possibility of constructing energy-efficient and wind-resistant concrete homes. While demand for the products in Ohio is uncertain, the Portland Cement Association (PCA) expects the number of new homes with concrete walls to rise from 3% of the total U.S. housing market in 1996 and 14% in 2001 to 25% within the next two years. According to a 1997 Boston University study, concrete homes use significantly less energy than traditional wood-framed dwellings for heating and cooling. PCA's Jim Niehoff concedes that concrete homes are priced as much as 5% higher than conventional models, but adds that lower utility bills allow home owners to recover the extra costs. Currently, builders Sam Witt and J.P. Simon are constructing concrete model homes in northwest Ohio. Creating Space Fit for a Mother-in-LawAs baby boomers begin to gray and real estate costs in some markets spiral out of reach, mother-in-law quarters that can serve as living space for elderly parents, adult children returning to the family home or other relatives who need to be near home but who want to remain somewhat independent are gaining in popularity. While these secondary dwellings provide just the kind of flexibility to accommodate changing housing needs, planning is a key part of the conversion process for these units — which often are located over a garage, as an addition to the residence or as a guesthouse on the property grounds. While adding a bedroom and bathroom to a single-family home is generally allowed, home owners may cross legal lines once they decide to install separate kitchen facilities. Doing so makes the home a multifamily unit, which is subject to different zoning rules. Unless the property zoning specifically permits this type of building, adding an in-law suite most likely will be prohibited. To err on the side of caution, home owners who want to build on such an addition should contact local planning authorities and discuss their options. Garage Doors Designed to Do the House ProudThe front-facing garage is an unsightly blemish on the face of U.S. suburbs, a situation exacerbated when open doors expose the mish-mash of miscellaneous items that Americans store in the space meant for their vehicles. The obvious solution to the problem is to put garage entries to the side, rather than the front, of the property. That would require a wider lot, however; and with land costs already reaching toward the clouds, that option is feasible only for the well-off. In response, designers and builders have begun focusing on ways to pretty up the appearance of garage doors. In some suburbs, for example, doors must mesh with the architectural style of the rest of the house. Manufacturers, meanwhile, are rolling out products with doors that appear to swing out rather than roll up. According to Michael Tillman of River Falls, WI-based Designer Doors, "this sort of door appeals to people who value the aesthetics of their home." Other alternatives include models that may still roll up but abandon steel, fiberglass and aluminum in favor of classier materials such as wood and versions that blend in with the home so much that they are no longer recognizable as garages. While some of the innovations are rather pricey, at least one supplier offers a "value" model that builders are incorporating into their developments. Inspiration From AboveThe residential basement — often left unfinished or finished to a lesser degree than the rest of the home — is becoming a top renovation target for existing home owners. This room also is drawing a great deal of attention from home builders, which are beginning to include them more often — even in townhouse units. While they generally leave the task of finishing the basement to the property owners, builders are adding on a number of amenities, such as walk-out configurations for more natural light and ventilation; higher ceilings; fewer beams and columns for more continuity of space; larger window wells; insulated walls; roughed-in plumbing for future bathrooms; and even nicer stairs for interior access. The focus on basements is being fostered in part by home owner recognition that improving an existing basement is much cheaper than adding space on the upper level. Builders, meanwhile, find that the cost of building a full unfinished basement is marginal — only about $20,000 more than building simply a crawl space. Laundry Rooms Now Win Prime LocationsDespite being one of the most heavily trafficked areas of the home, the laundry room historically was banished to the family basement. Now, however, conveniently located, spacious and aesthetically pleasing laundry rooms have emerged as a selling point for new and renovated residences. In fact, research conducted by the NAHB places the laundry at the top of the list of must-haves for home owners. Some prefer to have the clothes-washing area near the kitchen with a mudroom, while others want it on the same level as the bedrooms; regardless of the location, however, functionality has become increasingly important. "People want fancier laundry rooms with double sinks, kitchen cabinets and places to put away and hang everything," explains NAHB Vice President of Research Gopal Ahluwalia. Other desirable upgrades for the laundry room include laundry drawers for dirty garments or cubby holes for sorting, open shelves for folding and built-in ironing boards. On top of that, home owners want their modern wash spaces to double as something else, such as a sewing station, hobby area or planning center equipped with a desk. Basically, according to Ahluwalia, "people are looking for comfort and convenience. They don't want to run around the whole house to do their laundry." Letting the Sun Shine InOnce popular primarily with seniors, the sunroom has become a favorite of home owners of all ages and lifestyles. The business has experienced 40% growth over the past three years alone; and market-research estimates now make the sale of factory-built sunrooms and solariums a $2.5 billion industry. Independent contractors pump an additional $500 million into the market each year. Unlike past versions, however, the modern sunroom is highly sophisticated and ornately decorated. Innovations in window technology and structural design, for example, have ushered in improvements, such as reducing the glare that fades fabrics and melts items; and the switch to vinyl-covered aluminum for framing purposes has reduced condensation, which previously had been a big problem. With such changes, meanwhile, have come bigger price tags. National Sunroom Association President Bob Ottaway, who is a sunroom builder himself in Oregon, says the average price of his models has jumped by a third to $40,000 over just the past three years. Window in the Roof; Skylights, Sun Tunnels Give Home a Light TouchAccording to some contractors, the popularity of standard skylights — which usually measure about two feet by four feet in size — probably hit its peak in the 1990s. Now, they say, their workload has shifted to replacing models installed in the past decade or putting in a relatively new version known as a "sun tunnel." Like a standard skylight, sun tunnels are basically a dome on top of the roof, but they are attached to a tunnel that resembles a flexible air-conditioning duct. Unlike their traditional cousins, however, sun tunnels bring outside light into a room without a view of the sun or sky. The tunnel can be snaked several feet from the roof through a crawl space through the ceiling. Its interior finish, made of mirrored metallic, then helps transfer or reflect light from the outside to the inside. Experts say the sun tunnel is a good alternative for roof locations that are not appropriate for a standard skylight — such as a roof valley, or low point in the roof where water and snow can accumulate. Moreover, they cost only about $700 or $800 — roughly half the cost of a standard skylight. A 'Zero-Energy' House Sells in ArizonaA "zero-energy" residence located in Tucson, AZ, recently was purchased for $386,000. Part of a national demonstration program bankrolled by the U.S. Energy Department, the house incorporates solar heating, energy-efficient fluorescent lighting, low-flow plumbing installations and heat-blocking windows. Additionally, Tucson Electric Power will run the property's utility meter backward, crediting the new owners when their renewable-energy systems return excess power to the grid. As a result, the home is expected to meet all of its energy requirements for a full year with net-zero energy bills. Plant a Tree and Watch Your Home's Resale Value GrowThe National Gardening Association reports that U.S. lawn and garden spending rose 5% from $37.7 billion in 2001 to $39.6 billion last year. Landscaping improvements can significantly boost a property's value, experts say, depending on the project. According to a 2000 study by Laval University in Quebec City, for example, landscaped patios and hedges boost residential values by 12.4% and 3.6%, respectively. Though landscaping can be a valuable investment, American Nursery and Landscape Association spokeswoman Nancy Jacks Montgomery says home owners also view it as a means of creating safe havens. Experts note that the most popular outdoor features are fountains, koi ponds, reflecting pools, outdoor kitchens and lighting to accentuate trees and walkways. Trees are considered one of the best investments because they help control the home's temperature, provide a buffer against street noise and offer privacy. Landscaping projects can be costly; but home owners with tight budgets can add curb appeal by concentrating on the front of the home, planting shrubs and flowers in pots and trimming trees and shrubs near the driveway and windows. The Quebec study also reveals that retirees are attracted to homes with lots of trees, while younger home buyers want large lawns. Remodeled GaragesAccording to a survey conducted in April by Harris Interactive for Greater Washington, D.C.-based GarageTek, 28% of male respondents preferred a more organized garage. Split-level home owners often transform their garages into additional living space; and Virginia-based interior designer Victor Shargai says paneled, carpeted and furnished garages are common in Dallas and other locales. However, most home owners use their garages solely for storage space. Still, plastic shelving, old desks or cabinets and pre-made storage containers are inexpensive ways to minimize clutter. For about $6,000, GarageTek will install tongue-and-groove walls over existing walls, allowing home owners to create a new look and efficiently use the available space. Nevertheless, home owners will likely continue to view the garage as storage space that does not need as much care and cleaning as the rest of the home. Freddie Mac Announces Major Changes in Corporate LeadershipFreddie Mac, the nation’s second largest buyer of mortgages, on June 9 reported a major change in its top corporate leadership. The change came five months after Freddie Mac announced that the company was restating its income for the previous three years. The Freddie Mac Board of Directors elected Gregory J. Parseghian as chief executive officer and president and Paul T. Peterson as chief operating officer. Martin F. Baumann, who previously served as executive vice president of finance, was appointed as chief financial officer and Shaun O’Malley was named as non-executive chairman of the board. Stepping down were Leland C. Brendsel, from his position as chairman and CEO, and Vaughn Clarke, who had served as executive vice president/chief financial officer. David Glenn was fired as chief operating officer because of “serious questions as to the timeliness and completeness of his cooperation and candor with the Board’s Audit Committee counsel, retained in January 2003 to review the facts and circumstances surrounding the principal accounting errors identified during the restatement process.” NAHB President Kent Conine cautioned the media, Wall Street and housing market participants against overreacting to the change in leadership at Freddie Mac. “We are fully confident in Freddie Mac’s underlying financial strength and its ability to continue to serve as one of the key cornerstones of the U.S. housing finance system,” he said. Conine noted that a statement by the head of the Office of Federal Housing Enterprise Oversight — the federal safety-and-soundness regulator for Freddie Mac — said that “Freddie Mac's business fundamentals, asset quality, capital positions and other safety and soundness measures remain strong.” Freddie Mac said that it expects “the likely cumulative effect of the (income) restatements will be to materially increase reported earnings for prior periods and materially increase the corporation’s capital surplus under its regulatory minimum capital requirements as of the end of 2002. The company further expects significant volatility in reported quarterly earnings for those periods … and expects that adjustments affecting its income will relate substantially to changes in the timing of income recognition, and, as a result, cumulative increases related to the adjustments will have offsetting effects in future periods. In addition, the company expects increased volatility in future periods.” Parseghian, who previously served as executive vice president/chief investment officer, said that the restatement process would probably be completed in the third quarter of this year. “Job number one is to get our financial statements right,” he said. “We are committed to providing re-audited financial statements to the market as soon as possible and to taking any and all steps necessary to ensure that our people, processes and controls are of the highest caliber going forward.” Peterson, who has been named as the new COO, was previously executive vice president for Freddie Mac’s single-family operations. O’Malley is the retired chairman of Price Waterhouse LLP, where he was chairman and senior partner from 1988 to 1995. Housing SnapshotFixed-rate mortgages last week declined for the eighth consecutive week, hitting yet another new low, as the nation's economy continued to display signs of weakness and expectations grew for the Federal Reserve to cut its overnight interest rate further when it meets later this month. Unemployment in May climbed to a nine-year high of 6.1% as 17,000 jobs were lost. The economy has shed 2.5 million jobs since March 2001. Economists still believe that growth will accelerate into the 3.5%-4% range later this year, at which point, according to Freddie Mac Chief Economist Frank Nothaft, there will be "a gentle upswing" in mortgage rates. Mortgage Interest Rates30 Year Fixed Rate: 5.26\% 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 Too Many Communities Make Building Housing a StruggleThere’s no doubt about it. These are good times for America’s home building industry. With mortgage interest rates at their lowest levels in modern history, housing production and sales have been healthy and home building for some time has been the bright star in an otherwise lackluster national economy. The news has been so good, in fact, that it may come as a surprise to many how much of a daily struggle it has become in too many parts of this country to build affordably priced housing for our growing population. When communities sit down to discuss such local concerns as the environment, economic growth and infrastructure needs, too many times housing is scorned. We’re forced to come in through the back door, which is a crying shame because housing deserves a central role in addressing all of those concerns. Instead of making an honest assessment of housing needs, too many localities these days are turning their backs and embracing no-growth policies that are a quick fix but ultimately a ticket to nowhere. Unreasonable restrictions are placed on the use of land for housing. Zoning and development codes that are out of date and out of step with the housing wants and needs of families are locked into place. And new home buyers are saddled with inequitable impact fees and other exactions to finance facilities and services that politicians are afraid to ask the general population to pay for. This is National Homeownership Month, and that makes it an especially appropriate time to take a closer look at housing needs of the men and women who live and work in our communities. When we’re doing a good job of meeting those needs, that’s good for our neighborhoods, our businesses, our institutions, our entire way of life. But when we’re struggling to provide affordably priced housing, there are enormous economic and social implications that sooner or later will start taking a heavy toll. Something is wrong when our school teachers, our police officers, our fire fighters and the many, many workers who provide us with goods and services every day can’t afford to live within a reasonable distance of their workplaces; when single-parent families — who constitute a growing portion of our households — can’t stretch one income far enough to pay for decent housing in a decent neighborhood; or when family breadwinners have to choose between paying the rent and meeting other necessities. These are among the telltale signs of housing in crisis. They are symptomatic of elected officials who are apathetic, at best, about adopting policies to alleviate constraints against providing for one of the most basic human needs. While the depth of today’s housing crisis varies in different parts of the country, it is of epidemic proportions and should be a serious concern for everyone. Over the coming decade, the U.S. population is projected to increase by 24 million people. During that period, an average of one million new households are expected to be formed each year. These are some of the solutions that will help ensure that there is a sufficient supply of new housing to meet demand:
Today’s enduring low mortgage rates provide a window of opportunity for increasing the ranks of the nation’s home owners, especially among minority families whose rate of homeownership is far below the national average. But even in the very best of times, housing affordability will remain an elusive goal as long as local jurisdictions fail to recognize that their policies are a major part of the problem. Money Can’t Fix What’s Wrong With ESA Habitat Designations, But Maybe NAHB CanBy Martin Mitchell The best solution would be for the Congress to start all over again with a new law. Until that happens, at the very least, the Fish and Wildlife Service needs to figure out how to assess the economic impacts of its habit designations for threatened or endangered species. Although that is a requirement under the current law, it is a requirement that the Service has consistently ignored. A typical example is what happened after a federal court in 2001 threw out a habitat designation for Arizona’s cactus ferruginous pygmy owl on the grounds that the Service failed to take into account the economic impact of its determination. The Service went back to the drawing board and returned with a designation that doubled the amount of land that would be needed to protect the owl — 1.2 million acres for 50 or so surviving owls — at a cost of $108 million over 10 years to the residents and businesses of Pima and Pinal Counties. Sounds like sprawl to me. A source of gnawing frustration for home builders and landowners, for four years the Service was asked to provide information identifying the location of the owls so that NAHB members could avoid harming them. And for four years the Service resisted. It took a Freedom of Information Act request by NAHB to finally compel the Service to provide the answer to a question that on its own it should have answered when the initial request was made. There is no question that legal battles are hampering efforts to meet the mandates of the Endangered Species Act. But the Service’s failure to meet that law’s scientific requirements and to take into account the impact of habitat designations on the economy — despite several reprimands from the courts — has contributed significantly to the growing heap of litigation in which it has become mired. There are some good things that the Service has done on behalf of protecting endangered species. Its “no surprises” policy that encourages the protection of habitat in exchange for a promise from the government not to take more land in the future without paying for it — an approach that NAHB helped craft and supports — is encouraging, although environmental groups are now contesting it in federal court. NAHB has managed to schedule a meeting, after two years of requests, with Fish and Wildlife Assistant Secretary Craig Manson to discuss ways of bolstering and reforming the critical habitat designation process. The conversation will focus on the new definitions of 'adverse modification' and 'jeopardy' created by an NAHB working group chaired by NAHB Vice President and Treasurer Dave Wilson. They will also focus on a 15-page white paper written by NAHB staff on how economic modeling should be conducted. The definition changes were required by the courts and the economic modeling is critical to making habitat designation a scientific process. NAHB seems to be the only group that is offering concrete suggestions rather than pursuing further litigation. Until those changes are made, there’s little point in Congress doling out more money to prop up a program that increasingly looks like an Edsel. Martin Mitchell is chairman of the NAHB Environmental Issues Committee. Event Recognizes ‘Homeownership Heroes’The celebration of National Homeownership Month began last week in Washington, D.C. with a major event sponsored by the Homeownership Alliance. In a ceremony recognizing “Homeownership Heroes,” Rep. Bob Ney (R-OH), chairman of the House Financial Services Subcommittee on Housing, received an award from NAHB Executive Vice President Jerry Howard. Other recipients of the housing award were Secretary of Housing and Urban Development Mel Martinez, Rep. Harold Ford (D-TN), Rep. Maxine Waters (D-CA), Charlotte, NC, Mayor Pat McCrory, Boston Mayor Thomas Menino and NAHB Past President Bob Mitchell. Sen. Paul Sarbanes (D-MD) spoke at the event and praised Mitchell for his contributions to the housing industry. Mitchell has served as chairman of the Homeownership Alliance for the past two years. On Capitol Hill, the focus of Homeownership Month activities last Tuesday was an event to promote Habitat for Humanity’s “Congress Building America,” which encourages members to build low-income housing in their states and districts. Secretary Martinez and Sen. Elizabeth Dole (R-NC), along with NAH President Kent Conine, participated. NAHB has created several advertisements to thank members of Congress for their support on housing issues. The first of those ads appeared last week in Roll Call and CQ Today. NAHB has also prepared a proclamation on the importance of housing and has distributed it to state and local governments. Also as part of the month’s activities, the Homeownership Tax Credit (HOTC) Coalition is planning several activities, including a media event at the National Press Club, a congressional staff briefing and possibly one or two hearings on Capitol Hill. The coalition is continuing to seek additional co-sponsors for legislation to create the tax credit. Senate Bill Would Help First-Time Home BuyersSens. Debbie Stabenow (D-MI), Gordon Smith (R-OR) and Mark Dayton (D-MN) introduced legislation on June 3 that they believe could help as many as 17 million people become home owners over the next seven years. “The First Time Homebuyers’ Tax Credit Act of 2003,” S. 1175, would provide a tax credit for the purchase of a new home of up to $3,000 for an individual and $6,000 for a married couple. To be fully eligible for the tax credit, first-time home buyers must be in no higher than the 27% tax bracket during the year prior to their purchase. According to a fact sheet released by Stabenow, this would create eligibility caps of $67,700 for single taxpayers, $96,700 for heads of households and $112,850 for joint returns. There would be a dollar-for-dollar phase-out of the tax credit beyond these caps. NAHB supports the legislation; one of its most significant provisions would enable the home buyer to transfer “all or a portion of the credit” to pay for downpayment and closing costs. “The goal of this legislation is to extend the dream of homeownership to more working families,” Stabenow said. To read this bill, click here, and enter S. 1175 in the box at the upper left. Legislation Would Increase New Affordable Apartment ConstructionLegislation introduced in Congress last month addresses two key NAHB priorities for multifamily housing: increasing the Federal Housing Administration (FHA) multifamily insurance loan limits and overturning five IRS Technical Advice Memorandums (TAMs) that restrict the amount of tax credits that are used to raise investment equity for Low Income Housing Tax Credit properties. Introduced by Reps. Gary Miller (R-CA) and Barney Frank (D-MA), H.R. 1985, the “FHA Multifamily Loan Limit Adjustment Act of 2003,” would give the HUD secretary the discretion to raise FHA loan limits in high-cost areas. This would enable major urban markets that have been unable to take advantage of the FHA multifamily mortgage insurance programs to provide much-needed new rental housing for their populations. These cities include San Francisco, New York, Chicago and Boston. H.R. 1928, introduced in the House by Reps. Nancy Johnson (R-CT) and Charles Rangel (D-NY), and companion Senate bill S. 1119, sponsored by Sens. Bob Graham (D-FL), Orrin Hatch (R-UT), John Kerry (D-MA) and Jim Jeffords (I-VT), would correct an IRS interpretation that restricts the Low Income Housing Tax Credit. The legislation would reverse the five TAMs issued by the IRS in 2000. This would restore the amount of equity financing available under the credit, which would create an incentive for builders to build more apartments and increase the supply of affordable housing. NAHB economists project that the TAMs legislation would result each year in the construction of an additional 4,600 affordable housing units, 4,738 jobs, $154.1 million in wages and $81.9 million in tax revenues. To see these bills, click here and type in H.R. 1985, H.R. 1928 or S. 1119 in the box at the upper left. Texas Developer Wins Seat in U.S. CongressIn a tight congressional run-off election on June 3 to fill the seat of retiring Rep. Larry Combest (R-TX), land developer Randy Neugebauer defeated fellow Republican Mike Conaway. “As a successful small businessman, Randy knows what it’s like to create jobs and meet a payroll,” said NAHB President Kent Conine. “He understands how taxes and over-regulation hurt job growth and opportunity, and he will fight to promote pro-housing issues on Capitol Hill.” With all 207 precincts reporting, Neugebauer had 28,546 votes, a slim 587-vote margin over his opponent’s 27,959 votes. In support of Neugebauer, NAHB launched an effort among its members that employed sophisticated communications and outreach to help identify and mobilize pro-housing voters. A long-time member of NAHB, Neugebauer serves on the association’s board of directors and is a former NAHB national vice president. BUILD-PAC, the political action committee of NAHB, contributed the legal maximum of $10,000 to Neugebauer’s campaign — $5,000 for the primary and $5,000 for the runoff election. During a hard-fought campaign, Neugebauer stressed “jobs for West Texas families” as a top priority. “One of the things we have to make sure in America is that we have an environment where small business can flourish and thrive, and certainly tax cuts is one way to do that,” he said. Neugebauer comes to Congress with a strong record of public service in Texas. He served as Lubbock city councilman for six years and was the leader of the Ports-to-Plains coalition, which won approval for a job-creating transportation project. Spotlight on: Jackson, MSLocal HBA: By John Price, president of the HBA of Jackson Vital Stats:
Outlook for 2003: We should have at least as many starts as last year, if not more. Right now we’re running ahead of last year, so we’re confident the market will do at least as well, if not better. And owing to a new Nissan plant that has just opened in our area, we’re very optimistic about the next couple of years. Biggest source of concern for builders: Builders are especially concerned about the availability of general liability insurance. Land prices are also an issue. And north of Jackson, where the huge Nissan plant just opened — that area has imposed growth restrictions. Those restrictions are going to drive development into the other two counties in our metro area, which have traditionally had more growth and therefore have more land availability issues. So the concern is that the affordability of starter homes in the area will suffer — and that families trying to buy their first home will be priced out of the market. Market trends: Because of the Nissan plant, 1,500-2,200 square-foot homes are very hot. They are the market mainstay for builders. This trend should get even stronger over the next five years. Looking at other areas like ours, where a big plant has opened, the real growth in homes in the 2,000-square-foot range seems to happen after the first year or year-and-a-half. Initially many of the people getting jobs at the plant will commute from their current residences, which could be an hour or more away. After that, they’ll start planning to move their families. So we’re just very optimistic looking forward. Also, in the current marketplace, remodeling is running very strong right now. Eye on the EconomyDavid F. Seiders, NAHB Chief Economist Economic growth promises to remain “quite soft” in the second quarter, to repeat a phrase used by Fed Chairman Greenspan in testimony before the Joint Economic Committee of the U.S. Congress on May 21. The early part of the second quarter obviously was weighed down by the war with Iraq and related concerns about a terrorist backlash in the U.S., and the eagerly awaited rebound is not yet obvious in “hard” economic data despite the downshift in geopolitical uncertainties and the domestic terrorism alert in the wake of the war. But various market “pre-conditions” are in place and May surveys are reassuring … A number of promising pre-conditions for an economic rebound have been coming together nicely, including lower oil and energy costs (other than natural gas), a stronger stock market, lower interest rates, smaller quality spreads in the bond markets and a lower dollar on the foreign exchange markets. Furthermore, survey measures of consumer confidence (Conference Board) and consumer sentiment (University of Michigan) rebounded in both April and May, and surveys of purchasing managers (Institute for Supply Management) suggest that contraction of the manufacturing sector slowed markedly in May while the services sector of the economy grew moderately. Surveys of both builders (NAHB) and mortgage lenders (MBA) suggest that the single-family housing market did quite well in May following a modest setback in starts of new units in April. Passage of the fiscal stimulus bill bodes well for near-term economic performance … On May 23, the Congress settled on a $350 billion fiscal stimulus package and President Bush signed the package — the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) — into law by the end of the month. The final package consisted of $330 billion in tax cuts, spread out in various creative ways through 2013, and $20 billion in federal aid to beleaguered state and local governments to be distributed over the next two years. The outcome was at the low end of the $350-$550 billion negotiating range set up by the Congress, and well below the original $726 billion “Jobs and Growth” proposal floated by the Administration back in January. Nevertheless, the third Bush tax cut stacks up as a major domestic policy victory for the President and major economic stimulus for at least the next few years. The impacts of JGTRRA are heavily front-loaded and could provide even more support to the economy in the second half of this year and in 2004 than the original Bush proposal. Indeed, about 85% of the $350 billion package is focused in the first three years because many tax breaks expire (sunset) after a few years. The dividends/capital gains provisions already appear to be boosting the stock market and lowering the cost of equity capital for corporations. The (retroactive) cuts in personal income tax rates, along with “advance refunds” of the expanded child credit (beginning in July), will boost disposable income considerably and stimulate consumer spending significantly over the balance of the 2003-2004 forecast horizon. The Fed has talked long-term rates down and is poised to cut short rates as well … The Fed’s unprecedented expressions of deflation concern at the conclusion of the May 6 FOMC meeting and in various forums since then have changed market expectations about future monetary policy management and have driven long-term rates downward in the process. Long-term Treasury yields are down about 60 basis points since May 6, and the long-term mortgage rate has fallen nearly as much, despite maintenance of stable short-term rates by the Fed on May 6 and during the period since then. The Fed’s determination to insure against development of a deflationary spiral in the U.S. may very well provoke a cut in short-term interest rates at the next FOMC meeting on June 25, even though the prospects for a second-half economic rebound have been brightening — aided and abetted by recent passage of the fiscal stimulus package. NAHB’s forecast does not yet incorporate another rate cut by the Fed, but we’ve kicked the first increase in short-term rates out to May 2004 (from January 2004) and trimmed the forecasted profile of long-term rates for the balance of 2003 and 2004. Falling mortgage rates buoy home sales, house prices and mortgage refinancings … It’s difficult to overstate the benefits of falling mortgage rates for housing and the economy! With respect to recent evidence, NAHB’s Housing Market Index for May showed a healthy rebound in the attitudes of single-family builders, particularly regarding the prospects for home sales in the future, because of the impacts of falling rates (and the end of the war) on the attitudes of prospective buyers. Furthermore, applications for home mortgages (MBA series) accelerated during May to new records for both the home-purchase and refinancing components. The support to housing demand from falling mortgage rates has also bolstered house prices, a dramatic development in an economy toying with broad deflationary forces. OFHEO’s repeat-transactions national House Price Index registered a solid 6.5% (year-over-year) gain in the first quarter, continuing the process of gradual deceleration from the peak rate of increase (8.4%) in early 2001. All regions, states and major metropolitan areas posted year-over-year price gains in the first quarter, and a similar performance is likely for the second quarter of the year. 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 June 4 e-newsletter. To subcribe to “Eye on the Economy,” click here.
Want more economic information? Find it in our publications. Find more in-depth information in our three economics publications, Home Builders Forecast, Housing Market Statistics and Housing Economics. All are availaible by subscription.
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. Builders Advised to Keep an Eye on SafetyJune is National Safety Month, and home builders are being encouraged to consider how they can make safety a way of life, not just on the job, but at home, in public places and on the road. They are also being urged by NAHB to adopt a company safety program for their employees if one is not already in place. Each week during this month, the National Safety Council will be providing information on various aspects of the safety issue. The week of June 22-30 will focus on learning how to promote safe practices and prevent injuries on the job. The council takes a four-pronged approach to promoting safety:
A joint publication of NAHB and the U.S. Occupational Safety and Health Administration, “Jobsite Safety Handbook,” provides information in English and Spanish on policies, procedures and practices that will help residential builders and trade contractors protect their workers from job-related safety and health hazards. The company safety program, the handbook advises, should include these four elements:
To promote safety at home, NAHB and HIT Entertainment are developing a public service campaign called “Blueprints for Home Safety,” featuring Bob the Builder™. Included will be a 30-second public service announcement, a 16-page activity book with a pull-out poster and a Web site where children can play games and learn more about home safety. The materials are still being developed; NAHB will announce the program in this publication when it is completed. An article on 10 steps that are needed to ensure an effective safety and health program will appear in the June 16 issue of NBN Online. The “NAHB-OSHA Jobsite Safety Handbook” is available from BuilderBooks.com in an English edition or English and Spanish. It is also available in a construction safety kit that includes two other publications. For further information on safety issues, e-mail Robert Matuga or call him at 800-368-5242 x8507. For information on “Blueprints for Home Safety,” e-mail Kym Kilbourne or call her at 800-368-5242 x8447.
BuilderBooks.com offers a variety of safety and OSHA-related publications online. To view or purchase these publications, click here. Falls the Leading Cause of Home Building Worker FatalitiesWith funding from the Occupational Safety and Health Administration, NAHB has developed training for the home building industry focused on preventing unnecessary deaths and injuries on the jobsite. A written safety and health program is the first step to defining how employees and subs are expected to behave on the job, NAHB is advising its members. Safety management is the only way to avoid job-related accidents and injuries that can result in human suffering, higher workers’ compensation costs, loss of worker productivity and materials, equipment damage and legal liability. An NAHB analysis of OSHA data from 1993-1997 found that there was one death for every 16,825 houses built during that five-year period. Other findings of the NAHB study, which was commissioned in 2000, were:
An article on 10 steps that are needed to ensure an effective safety and health program to address the causes of deaths and injuries on the construction site will appear in the June 16 issue of NBN Online. For more information on safety issues, e-mail Robert Matuga or call him at 800-368-5242 x8507.
BuilderBooks.com offers a variety of safety and OSHA-related publications online. To view or purchase these publications, click here. Toolbox Talk: Electricity Causes More Injuries Than You ThinkJune is National Safety Month. In order to help you make your jobsite safer, we offer this Toolbox Talk as part of our series of monthly, employee-oriented toolbox safety training articles. Electricity is one of the leading causes of construction worker injuries on the job. But because we use electricity every day, we often overlook it as a jobsite hazard. Many electrical-related injuries can be avoided because most electrical hazards can be fixed easily once they are identified. Just follow these basic electrical safety tips and rules. Protect Against Electrical Shock by Avoiding Electricity Altogether If someone is working with electricity near you, try to keep as much distance as possible. Stay away from the temp pole and breaker boxes when they are being installed. Electricians are specially trained to handle electrical hazards; you are not. In most cases there is no reason for you to be near live electrical parts, so keep away from those hazards. Even the Smallest Openings to Energized Equipment Can Hurt You If you ever have to work near live parts in a junction box or near circuit breakers, be sure all the openings are covered and the knock outs are in place. Knock out plugs should cover all conduit and breaker openings, and there should be covers on all breaker and junction boxes. If there isn't a cover and you need to work near the live parts, let your supervisor know so they can be guarded for your safety. Also, keep an eye out for exposed parts when the electrician is doing his job and during the drywalling stages of construction. Don't forget: Something as simple as an uncovered receptacle can lead to injuries. Leave the Ground Prong On The third prong (or ground prong) on an extension cord is designed to protect you. Clipping off the ground prong means that a tool or extension cord can no longer be grounded and this could result in injury. If you find that a cord or tool has had the prong clipped, you need to tell your supervisor so it can be repaired or replaced. Most importantly, remember not to use a broken cord. Be Sure Your Tools are Double Insulated It should say so right on the side of the tool. Double insulated tools don't need a ground prong to protect you, but you may need an adapter so they will fit your extension cord. A two-prong plug does not necessarily mean it is double insulated, so be sure to check on the tool. Tools also need to be protected from water and other elements that could cause electrical hazards. House Wiring Needs to Be Protected Correctly The electrician will have installed the wiring properly so it won't get cut. But if you do accidentally cut a wire or notice a damaged wire in the house, let your supervisor know right away. Don’t try to repair the break. The electrician will be notified and repair it. Following this procedure will help protect you, the other workers and the home buyers. Make electrical safety one of your first goals for a safe jobsite. For more information, contact Robert Matuga, director, Labor, Safety & Health Services at 800-368-5242 x8507.
NAHB Toolbox Safety Talks, available through BuilderBooks.com, are designed to supplement your employee safety training program and help you identify those areas where you may need to develop additional safety training for your employees. Each individual talk is intended to be used as a brief, job site training session of approximately 15 minutes. Each talk includes questions that encourage employees to share their experiences about working safely or accidents that they may have been involved in. Hearing others talk about what has happened to them will make the reality of injuries more apparent, and the safety message much clearer. The complete Toolbox Safety Talks series and other safety training and OSHA information are available through BuilderBooks.com or by calling 800-223-2665. NAHB Toolbox Safety Talks are available in English and English-Spanish editions. Manage Prospects and Buyers More Efficiently With TechnologyThe fifth in a series of tech talks for builders The concept behind customer relationship management (CRM) systems within the home building industry is to have a seamless, perpetual management system that enables the customer to participate in the home building process from across the street or across the world, and enables the builder to provide the best product with a glitch-free closing. Sounds simple, doesn’t it? To achieve such glitch-free results, a builder’s Web site must be connected to his or her internal business and production systems and to the sales operation. There is technology available to do that. But for the technology to be effective, be sure you incorporate the following sales and marketing fundamentals in your processes. The more that technology advances in the industry, the more essential these fundamentals will become:
When it comes to managing prospects and buyers, the more integration between the processes mentioned above and your customer database the better. Most sales office software products have features that handle the “contract to closing” process, but they don’t connect with construction scheduling or cost analysis functions. Whether you’re evaluating integrated software systems or you want to fine-tune the way you currently manage prospects and buyers, follow the steps below to make your front- and back-office operations work more efficiently.
Once you’ve gathered the information, use it to fine-tune your product development, communication systems and other functions. Earlier Articles in This Series
Next: Selections and change order management
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 computer technology. 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. Builders Warned of Possible Arson Attacks at Job SitesThe radical environmental group Earth Liberation Front (ELF) may be stepping up its acts of destruction at residential construction sites, NAHB has learned. In the wake of two recent acts of arson allegedly committed by ELF at job sites in Michigan in which homes under construction were burned to the ground and “E.L.F.” and “Stop Sprawl” were scribbled on equipment, NAHB members should take precautions as they see fit to ensure security at their job site, especially after hours. These precautions can include meeting with security companies, local law enforcement officials, fire departments and insurance providers to learn how to better protect construction sites from arson; and installing security video cameras along with signage that the job site is being monitored. The FBI has identified ELF as one of the nation’s most active and destructive domestic terrorist groups. It is believed to be responsible for more than $43 million in damage in more than 600 attacks to corporations, individuals and government agencies, including a 1998 arson attack at the Vail Ski Resort in Colorado that resulted in $14 million in damage from seven simultaneous fires set at the top of the ski area. Earlier this year, ELF’s primary targets were SUVs and car dealerships. ELF has claimed responsibility for burning or vandalizing several dealerships in Pennsylvania, New York, Michigan and California. The recent acts of arson in Michigan suggest that ELF may be resuming its campaign against development. For more information, e-mail Neil Gaffney at NAHB or call him at 800-368-5242 x8495. Pillars Award Winner Succeeds in a Difficult MarketThe developers of San Marino managed to fully lease their new Naples, FL, luxury garden apartment community in just 12 months — unheard of in the city's soft rental market. And they implemented a plan for lease renewals that minimizes turnover and keeps monthly occupancy at 95%. According to the Cornerstone Group — which marketed the development — the major difference between this community and all the other Naples apartments is in San Marino’s amenities and services. This combination of a great business plan and flawless execution won the community a 2003 NAHB Multifamily Pillars of the Industry Award for Best Garden Apartment in a Secondary Market. The gated community’s designers overcame significant challenges in preserving wetlands while allowing for maximum views. It was worth the effort, since San Marino’s site is adjacent to a golf course and driving range, as well as a wildlife preserve. The heart of the community is the Grand Clubhouse, which has a private billiards room, an entertainment room with DVD and surround sound, an indoor racquetball and basketball court, a fitness center with a personal trainer, a kid’s game room, an outdoor volleyball court, an eight-hole putting green and a business center with high-speed Internet connections and a conference room. And, of course, there’s a heated pool and spa. A concierge program offers residents such services as door-to-door dry cleaning and a reservation and travel service. The Pillars Awards judges commended the community for its “lovely exterior hardscapes,” and lauded its surprising affordability, given the level of amenities. Arizona’s Largest Master Planned Community Approved by VotersVoters in Buckeye, AZ, a town of about 7,000 people, on May 20 voted to annex a large section of Maricopa County and to approve development of that land as Douglas Ranch, a 35,000-acre master planned community that will be the largest in the state. About 63% of the 660 voters who showed up at the polls gave a thumbs-up for a project that is expected to bring 83,000 homes, thousands of retail and office jobs and 170,000-300,000 residents within 50 years to a desert flatlands that sits above a water-rich aquifer. Construction is not expected to begin for about three to five years, after specific studies on water use and other infrastructure needs have been finalized and environmental and other permits have been received, the Arizona Republic reported. Marty Sauerzopf on May 27 reported that the developer, Sonoran West Properties, has promised to create a trust fund that as soon as ground is broken on the first subdivision will receive a $1 million donation to benefit the historic parts of town. The fund could eventually grow to more than $30 million as additional donations are made over the years. Proponents of the project, editors of the Arizona Republic now acknowledge that, “It’s up to the town and the developers to make Douglas Ranch a success.” Now that it has “passed an important litmus test — community acceptance,” Douglas Ranch “can be a signature development that accommodates the growth that we know will occur,” said a May 24 editorial in the Republic. “It can be as good — or as bad — as the developers want.” Members of the Buckeye Town Council “must demand the best development possible because like it or not, Douglas Ranch will be held up as a model, for good or ill, because of its size,” the editorial says.
BuilderBooks.com offers a variety of land development publications online, including enviromental and green building publications. To view or purchase these publications, click here. Grand Rapids Builders Oppose Transfer of Development RightsTransfer of Development Rights (TDR) programs don’t solve urban sprawl problems and they are a coercive method of land use control, according to the Board of Directors of the Home and Building Association of Greater Grand Rapids. “After years of experience and study,” the board said it found that TDRs “undermine private property rights” and “skew the market forces that otherwise ensure the highest and best uses of land that accommodate the housing preferences of citizens.” TDRs allow a landowner to trade development rights on one parcel of land in exchange for the right to build at higher densities on another parcel. A better approach to solving the problem of sprawl and preserving open space, the directors believe, is to zone land for the most compact development possible. “Responsible zoning makes TDRs unnecessary,” they said. Other proven solutions recommended by the board include:
“Zoning ordinances crafted since the 1960s have forced increased land consumption,” the directors say. “It is that continuing trend toward ever-more consumptive land use regulations that has caused urban sprawl.”
BuilderBooks.com offers a variety of land development publications online, including enviromental and green building publications. To view or purchase these publications, click here. Berks County HBA Wins Big with PA HBA, NAHB HelpThe Berks County Home Builders Association, a small local association in Reading, PA, was hit with two major anti-growth challenges last year: a proposed and heavily-backed 25% increase in Amity Township’s earned income tax that would have been used to purchase development rights; and a county comprehensive plan that would have limited developable land to only 15,000 acres. The Berks County HBA did not have the resources to take on both challenges by itself, so it teamed with its state association and NAHB. As a result, the HBA was able to defeat the proposed tax increase, and to successfully amend the proposed comprehensive plan with a four-fold increase in developable land. Builders Beat Back Tax Increase In March 2002, a group of anti-growth activists backed by the Nature Conservancy worked with the Amity Township Council to increase the township’s earned income tax from 1% to 1.25%. Proceeds from the tax increase would have been used to purchase land and development rights for “farmland preservation,” but the measure’s real intent was to stop growth. The 25% tax increase was forced to referendum vote. With assistance from NAHB's ballot management team and a $5,000 grant from the State & Local Issues Fund, the association put together a strong plan to communicate the proposal's negative impacts to the township. The campaign strategy included phone calls to targeted likely voters and two direct mail pieces. Amity Township voters heard the association’s message, and 65% of them voted against the referendum. Local Association Improves Comprehensive Plan The second anti-growth battle arose when the county’s planning commission released its proposed comprehensive plan, which included a proposal to limit the amount of developable land to only 15,000 acres — not nearly enough to accommodate the county’s projected growth. With the assistance of NAHB’s land development experts, the association conducted a rigorous critical review of the proposed plan. Then, with this information in hand, the association met with the county planning director to emphasize the plan’s shortcomings. The association then armed itself with facts from the NAHB Economic Impact Model (developed by NAHB’s Housing Policy Department) to make a forceful presentation at the plan’s final public hearing. The association’s advocacy efforts paid off. The planning commission substantially amended the plan to address every builder concern pointed out during the hearings. Most notably, the commission agreed to revise the amount of developable land included in the plan from 15,000 acres to over 60,000 acres. Said Ron Rohrbach, executive officer of the Berks County HBA, “Understanding and being able to fight the challenges that your association faces is the battle. Knowing where to find the resources to successfully fight the challenges makes the battle winnable.” For information about NAHB's resources and services to help counter anti-growth proposals, contact Ashley Geyer at 800-368-5242 x8126.
Get Special Discounts from Hertz® NAHB members can get deals on car class upgrades and one-way double upgrades, and discounts off weekly and weekend rentals from Hertz. For more information, call Hertz at 800-654-2200 and use CDP No. 051046 or visit them online. To request your free Hertz ID card, call NAHB at 800-368-5242 x8330. 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. Free Access To Sweets a Benefit for NAHB Builder and Remodeler MembersUnder an alliance between NAHB and McGraw-Hill Construction Sweets, builder/remodeler members of NAHB can receive free access to information that will enable them to easily select, compare and purchase the building products they need for their projects. Access is automatic once members complete and submit their 2003 NAHB Member’s Census. The McGraw Hill Companies is a member of the National Council of the Housing Industry — the Supplier 100 of NAHB. NAHB members receive:
Backed by Sweets, Dodge, Architectural Record, Engineering News-Record and regional publications, McGraw-Hill Construction serves more than one million customers in the $3.4 trillion construction community. A Thank-You Note Can Go a Long WayBy Mark Barnard Sending the note was an afterthought on my part, but I had to wonder if it had helped me to land the job. Obviously, it had made a meaningful impression. Words of appreciation do not go unnoticed by our customers, either. I can’t count the number of times customers have returned to my model home with the thank you note I sent them or mentioned it in a follow-up telephone call. It’s a rare new home specialist who can consistently close a customer on the first visit. So taking the initiative to generate positive feelings before their second visit only enhances your odds of selling them a home. An effective thank-you note establishes rapport and sets the tone for the relationship that follows. These days, a little thoughtfulness can go a long way, and a well-timed note is simply thoughtfulness in writing. Over the years, I’ve learned that while there is no one script for every occasion, there are some things to keep in mind:
Remember, a thank-you note can go a long way toward establishing rapport with your prospects.
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. Field Superintendent Courses to Be Offered in OrlandoFor the first time since the program was launched in January, all of the Home Builder Institute’s (HBI) Field Superintendent Designation courses will be offered at one time, during the Southeast Builders Conference (SEBC) in Orlando on July 24-26. Part of HBI’s Residential Construction Academy, the designation provides instruction for field superintendents and site personnel. The courses are offered by local home builders associations and at major regional shows such as SEBC. The eight courses constituting the program are: General Project Management; Planning and Scheduling; Budget and Cost Control; Customer Service and Homeowner Relations; Safety and Security; Codes and Quality Control; Hiring, Training and Supervision; and Office and Subcontractor Relations. A number of the courses were offered for the first time at last summer’s SEBC and attracted standing-room-only attendance. The designation originated through the efforts of Ron Coppenbarger, the president of the Florida Home Builders Association in 2000-2001 and an HBI trustee; Vero Beach builder Ray Puzzitiello and members of the Gold Coast Builders Association. So far, 10 program participants have qualified for the Residential Construction Superintendent designation in Michigan, Florida and Georgia. HBAs that are interested in offering the designation courses to their employer members or seeking more information about the program, should e-mail Steve Kramer or call him at 800-795-7955 x8925. Confusion Over Carl Perkins Program Funding Cleared UpNAHB has cleared up some of the confusion among state and local home builders associations that were concerned that reauthorization of H.R. 1261, the “Workforce Reinvestment Act,” would have a potentially negative impact on funding for the Carl Perkins program. The program provides federal grants for vocational and educational programs — including those related to construction skills — at high schools and community colleges. Opposed to a provision in the reauthorization bill that would have given state governors the authority to allocate up to 25% of workforce funding to pay for infrastructure and administrative costs, the American Council of Technical Education (ACTE) spearheaded a campaign in which Carl Perkins was used as an example of the programs that would be undermined as a result. Carl Perkins was cited because of its popularity, although it actually will receive its funding under a different bill for Department of Education programs that is expected to be considered later this year. H.R. 1261 provides funding for one-stop workforce programs under the Department of Labor. ACTE is no longer opposing the reauthorization bill; an amendment offered by Rep. John Kline (R-MN) now prevents governors from using money for programs to pay for administrative costs. The legislation has passed the House and has been sent to the Senate HELP Committee Subcommittee on Employment, Safety and Training for its consideration. To read H.R. 1261, click here, and enter the bill number in box at the upper left. For more information, e-mail Jenna Morgan, or call her at 800-368-5242 x8407. Modular Housing Plants Toured in the NortheastIn a tour of plants in New York and Pennsylvania, members of the Building Systems Councils recently discovered why modular and panelized housing is big business in the Northeast. The region accounts for nearly 30% of the nation’s modular and panelized housing and is where nine of the country’s top 20 modular manufacturers are located. The tour included stops at the manufacturing plants of council members Signature Building Systems, Simplex Industries and Chelsea Modular Homes. Signature’s facility can produce four modules a day, roughly the equivalent of a 2,500 square-foot home. While buyers enjoy the short production time of modular housing, builders find that the homes are easy to assemble and extremely durable. Following detailed assembly instructions from the manufacturer, builders are able to construct modular homes more quickly than stick-built homes and with less chance of weather delays and damage. One out of every 10 new homes built in the Northeast is modular or panelized. ‘Building Homes of Our Own’ Wins National Award“Building Homes of Our Own” received the prestigious national Bronze Anvil Award from the Public Relations Society of America on June 5 in recognition of the middle school CD-ROM program’s use of interactive communications. The award recognizes new, creative and unconventional uses of technology in a public relations program. In just eight months, “Building Homes of Our Own” has been put into the hands of 20,000 teachers, giving the educational home building game a potential reach of 1.5 million people. Educators continue to praise the program as one of the best teaching tools they have ever used in the classroom, and they are integrating the program into their curriculums school-wide. For more information about “Building Homes of Our Own,” e-mail Kym Kilbourne or call her at 800-368-5242 x8447. 17 Members Named to 50 Best Remodeling Companies in AmericaThe editors of Remodeling magazine selected 17 NAHB Remodelors™ Council members for inclusion in their “Big50” best remodeling companies in America. Every year the magazine selects 50 remodelers who exemplify the very best of the industry for induction into this hall of fame. The selections include every facet of remodeling, from small contractors to large design/build firms all across the country. Induction into the Big50 is based on industry impact, business savvy, design innovation, marketing, company growth and teamwork. This year's winners were announced at the Remodeling Leadership Conference in Washington, D.C. The 17 NAHB member companies include:
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