Nation's Building News Online: September 15, 2003Print All Articles Text Version |
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Proposal to Strip HUD of Fannie Mae, Freddie Mac Program Oversight Raises Grave ConcernsThe sweeping overhaul of the regulation of Fannie Mae and Freddie Mac proposed by Treasury Secretary John Snow and Housing and Urban Development Secretary Mel Martinez in testimony before Congress on Sept. 10 raises grave concerns about the future of the nation’s housing finance system. The Bush Administration plan would assign responsibility for safety and soundness oversight and new program approval to the Treasury Department. Currently, safety and soundness regulation is handled by the Office of Federal Housing Enterprise Oversight OFHEO), an independent agency within HUD, and program regulation is under the charge of the HUD secretary. NAHB does not object to the shift of safety and soundness regulation but believes removing HUD’s current oversight of Fannie Mae and Freddie Mac programs would subvert HUD’s role as the nation’s primary housing advocate. This change would impair the ability of these critical components of the housing finance system to provide the liquidity and stability needed to keep mortgage credit available at the lowest possible cost to home owners and rental housing providers. NAHB was the first housing organization to identify this proposal as a major concern to the industry and to publicly state its opposition. Warning that this plan threatens to undermine the nation’s housing finance system, NAHB Executive Vice President and CEO Jerry Howard held interviews with several national media outlets following the congressional hearing. He expressed the association’s strong support for HUD, and said that it must remain “the cabinet agency that speaks for housing.” While the Treasury Department would be an appropriate agency for regulating the financial safety and soundness of the nation’s two major mortgage lenders, Howard said, it is imperative for HUD to retain its current status as the mission regulator for Fannie Mae and Freddie Mac, including its responsibility for approving new programs and establishing annual goals for affordable housing. “NAHB strongly believes that Fannie Mae’s and Freddie Mac’s ability to spur innovative solutions and to develop new products that increase homeownership will continue only if the mission of these corporations is regulated by HUD, the only cabinet agency with a thorough understanding of, and extensive involvement in, housing-related issues.” NAHB’s efforts to reach out to its allies in the housing community to help ensure that HUD retains its leadership in housing are producing dividends. The National Association of Realtors® subsequently issued a statement in support of NAHB’s position that HUD should maintain oversight over Fannie Mae and Freddie Mac’s mission and programs. With Congress set to hold additional hearings on the issue this week, NAHB is sending a message to lawmakers that the rush to enact a quick legislative fix in the wake of Freddie Mac’s accounting problems could produce severe negative consequences for housing. The Administration’s proposal to strip HUD of its program approval authority for Fannie Mae and Freddie Mac constitutes an attack on the mission of HUD itself by removing the agency’s ability to improve housing opportunities for America’s working families. It would irreparably harm HUD’s ability to focus the efforts of the two giant mortgage lenders on supporting homeownership opportunities for low- and moderate-income and minority families. Transferring mission oversight of critical financial housing institutions to the Treasury Department, an agency with little experience in evaluating the effectiveness and appropriateness of housing policies, especially those pertaining to housing for working families, would be a grave mistake that could have severe repercussions on a well-working secondary mortgage market system, said Howard. NAHB is also concerned that some may seek to use the proposed regulatory overhaul to alter the recently imposed system of capital requirements for Fannie Mae and Freddie Mac. These standards are the product of years of careful analysis and effort, and should not be discarded before they have been tested. “We disagree,” Howard said, “with those who seek changes to the risk-based capital standards for Fannie and Freddie and are encouraged by statements of the House Financial Services Committee members who are urging their fellow lawmakers to proceed in a cautious, deliberative manner before enacting legislation that could radically alter the oversight and functioning of the housing finance system.” We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Building News Coast To CoastFor Kids, Sharing a Room Is So 15 Minutes AgoWhile the size of the average U.S. household is shrinking, Zhu Xiao Di of the Harvard Center for Housing Studies notes that "more houses are larger than we've ever seen before." The trend is so prevalent, in fact, that it is unusual today to find siblings who must share their bedroom with a brother or sister. NAHB confirms that the number of new dwellings with at least four bedrooms has been on the rise for decades, save a brief lapse during the recession of the early 1980s. The bedroom boom is not inclusive, however, as many minority and immigrant families double up on households, Zhu stresses. For households that can afford the extra space, though, children often have not only their own bedroom space but separate bathrooms as well. "Jack-and-Jill" bathrooms with two entrances and two sinks are popular among this set, as are individual "princess" bedroom suites that include private bathrooms. Builder, Buyer Use Eye in Sky to Watch Home Rise on WebRegal Classic Homes has installed a $2,300 system to monitor the construction of a 6,000-square-foot residence near Orlando. A camera stationed on a pole allows the buyers to check the status of their home online at any time. Regal Classic owner Michael McGuffie says the system also enables him to oversee construction from his office and lets subcontractors and suppliers check on their workers' performance. Though cameras are often installed for security purposes in high-crime locales, Home Builders Association of Metro Orlando Executive Director Tom Lagomarsino says Regal Classic is the only regional builder that has done so to keep tabs on the progress of construction. "But what a neat marketing idea," says Lagomarsino. "Others may pick up on it if clients like the idea." The Ranch House, an American Icon, Gets Some New LooksRanch homes were once hailed for their open floor plans, lack of formal rooms and child-centric approach, complete with a den and clustered bedrooms. Although the ranch has given way to super-sized McMansions, "Ranch House Style" author Katherine Ann Samon says ranch owners can spruce up their dwellings by constructing an addition or making simple cosmetic alterations. She notes, "The wise buyer should use the existing structure as a starting point." Among the cosmetic changes recommended by Samon are wall-to-wall curtains; several coats of white paint; and the removal of walls to create a great room or a single space for cooking, eating and leisure activities. Samon also believes that taking down cupboard doors, painting the shelves white and using white beadboard on the back of cabinets will make kitchens seem more spacious; while trading in checkerboard linoleum for marbleized designs can help modernize the room. Empty-Nesters Face Home Improvement DecisionsBefore delving into renovation projects after their children move out, The Home Service Store's Mike Turner urges empty nesters to consider their budget, preferences and the things they will need as they age. Many home owners with adult offspring transform their children's bedrooms into hobby, media, craft or guest rooms or use the space for a bigger bathroom or closet. However, Turner suggests they postpone such projects for a few years because college-age children usually return home for holidays and semester breaks. According to Houston-based Home Service Store affiliate owner Dan Bawden, empty nesters instead might want to install low thresholds, handrails in the shower and bathtub, skid-resistant flooring and better lighting to help them age in place. Bawden says these improvements, as well as room additions complete with kitchenettes and private living spaces, are popular because many empty nesters take in their elderly parents. Shifting TastesChanges in the American home take decades to show up, according to NAHB research executive Gopal Ahluwalia. These changes are based primarily on what home buyers need and want; however, buyers abandon many of their preferences in order to obtain the best resale value. According to Raleigh, NC-based architect and "The Not So Big House" author Sarah Susanka, "They're told what they need for resale but not given a chance to say what rooms they don't use and would eliminate." In addition, home owners prefer traditional designs because they provide a link to previous generations. Nevertheless, a number of changes are in the works for the coming decades, including the desire for multi-functional rooms, smaller homes with top-quality materials, smaller dwellings on high-priced lots and dining rooms that can double as living rooms or studies. More and more buyers also are opting for family or great rooms over living rooms; kitchens that serve as the family gathering space; jazzed-up secondary entryways; home offices in the back of the house so that wires and papers are not on display; cozy master bedrooms that do not isolate parents from the rest of the family; furnished outdoor areas; detached offices, playhouses and living spaces for adult children; and eco-friendly homes. Other emerging trends include panelized room wall systems, which allow for speedier construction and easy renovations. However, Susanka does not believe home owners will request all of these changes themselves due to concerns about resale value — which means that builders and architects will have to take a proactive stance. County OKs Impact Fees for SchoolsDurham County, NC, has become the first in the state to impose school impact fees without approval from the general assembly. The county already charges developers fees to cover transportation, parks and recreation, open space and water and sewer costs; and they will now be forced to pay $2,000 per new home and $1,155 for new apartments, condominiums and townhouses to fund school construction. According to Durham Citizens for Responsible Government — a new group primarily made up of Realtors® and developers — the fees would boost new-home prices by $2,500, prevent the construction of 120 homes, eliminate hundreds of jobs and cost the county more than $1 million in tax revenues over a 10-year period. County officials discredit such reports and insist that the fees would actually spark a property-tax reduction because of the new funding source. Much to the chagrin of proponents, who claim the fees are intended to help the area's children, the Home Builders Association of Durham and Orange Counties and other industry groups plan to sue the county for failing to seek the support of state lawmakers prior to the vote. New Rules on Treated Wood to Change the Backyard WorldPressure-treated wood, which has been used to construct long-lasting decks, gazebos and playground equipment, will no longer be available after this year. The Environmental Protection Agency (EPA) called for a ban on wood treated with chromated copper arsenate (CCA). Consumers will have access to a number of alternatives, including wood treated with non-arsenic ammoniacal copper quaternary and copper boron azole; materials comprised of plastic, metal or both; and naturally rot- and pest-resistant woods like cedar, redwood, hemlock, chestnut, mesquite and South American hardwoods. However, Arch Wood Protection Inc. Marketing Communications Manager Huck DeVenzio says these products can cost upwards of 15% more than CCA-treated wood. Meanwhile, the EPA is not recommending that home owners tear down existing structures made from CCA-treated lumber due to the absence of any immediate health risks and the complex disposal process. New Floor Finishes for Garages Are Getting Top MarksMany home owners are replacing the plain concrete floors in their garages with finished floors to protect the concrete from chemicals, facilitate clean up and improve the room's appearance. Latex, oil and epoxy paints are fairly inexpensive finishes. Though latex and oil paints are easily applied, they tend to peel from the heat of car tires and are not skid-resistant like epoxy paints. Home owners with bigger budgets may want to consider vinyl mats or floor tiles, which are easy to install and clean. Modular plastic floor tiles are easily assembled by snapping the pieces in place; and although they are quite costly, they come in a variety of colors and do not stain. Quartz-based floor tile is another upscale finish that does not blister from hydrostatic pressure and is chemical-, impact-, stain- and skid-resistant. Seven-Year Housing Upswing Going Strong in Year NineThe Office of Federal Housing Enterprise Oversight reports that despite the ongoing turbulence in the nation's economy, the nine-year-old housing boom continues to flourish. The Washington, D.C., agency confirms that home values have soared an average of 37.88% nationally over the past five years and more than 60% over the last 10. Income growth since the middle part of the last decade has provided the housing sector with a secure base, and this past summer's increase in mortgage interest rates is further proof of economic growth that ultimately will help all age and income demographics. OFHEO Senior Economist Shelly Dreiman concludes that the only real trouble signs may be the shaky labor market, adding, "People talk about price bubbles as if it were a national issue, but it was never an issue at the U.S. level. Housing bubbles occur in local places like San Francisco and Boston, areas along the coast where there's a big price run-up" followed by a correction. America Experiencing Pavers BoomThough decks are still more popular than patios because they are cheaper and require less space, low interest rates, the desire for maintenance-free areas and the post-Sept. 11 focus on the home have sparked a renewed interest in patios. Evidence of this trend can be seen in home center garden departments — which are stocking up on pavers, curb stones, edging stones and blocks. In response to concerns about runoff from concrete- and blacktop-covered areas, E.P. Henry Corp. has launched the Eco-Paver, which features interlocking blocks with sufficient spaces for drainage. The company also offers pavers in numerous shapes, sizes and colors. Paver projects often are viewed as jobs that can be done by the home owners themselves, but E.P. Henry sales and marketing executive Mark Fuss says the weight of the materials — with stones weighing as much as 75 pounds — and the significant amount of labor involved make professional installation necessary in most cases. Combining Office Equipment Can Save On ExpensesCompanies currently using multiple machines for faxing, printing, scanning and copying can improve productivity and their bottom lines by upgrading to multifunctional products (MFPs). Not only do MFPs decrease the overall cost of ownership, they also move several maintenance tasks to a single machine. Moreover, MFPs save time and paper by letting employees scan documents and fax them via e-mail. They also bundle maintenance costs and supply ordering, eliminating the need to deal with several manufacturers and maintenance agreements. Laptops Dropping in Cost, WeightCentrino notebook computers, which feature the Pentium M processor, the 855 chip set and the Intel PRO/Wireless 2100 hardware, are faster than previous laptops. They are also lighter and use less battery power. In fact, users can run their Centrino notebooks for five to six hours with the same battery that once offered only two-and-a-half to three hours of computing time. However, users worried more about weight than battery life can make their notebooks easier to carry by opting for lighter batteries with only two to three hours of computing time between charges. The Gateway 450 — priced at $2,000 — boasts Centrino technology, a dial-up modem and an Ethernet connection. The device also comes with Microsoft Works' productivity tools, Quicken and MS Money and audio and video capabilities. We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. 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Report Identifies Alternative Ways to Pay for InfrastructureAt a time when a growing number of state and local governments are experiencing severe budget problems and looking for alternatives to traditional ways of financing and managing infrastructure Report Identifies Alternative Ways to Pay for InfrastructureAt a time when a growing number of state and local governments are experiencing severe budget problems and looking for alternatives to traditional ways of financing and managing infrastructure, a new report from NAHB and the National Association of Realtors® (NAR) offers a range of solutions to the problem. The report, “Building for Tomorrow: Innovative Infrastructure Solutions,” was released to the public on Sept. 9 in a policy briefing at the National Housing Center in Washington, D.C. “State and local governments face an unprecedented fiscal crisis,” said David Pressly, NAHB vice president and secretary. “The National Association of Home Builders is working to help find solutions — looking to help officials at all levels of government find new ways to finance and manage infrastructure.” The challenge of providing needed infrastructure has been made more difficult by three developments, Pressly said:
As funding sources have dried up, local governments have increasingly looked to impact fees and exactions as a means of funding infrastructure. NAHB and others in the housing industry have argued that impact fees impose an unfair tax on home buyers, make housing less affordable and provide an unreliable source of revenue that cannot be leveraged to pay for long-term needs. “Impact fees are a very real barrier to housing affordability, said Martin Edwards, NAR’s immediate past president. “An increase of just $1,000 in impact fees can prevent 240,000 families from achieving homeownership. And $1,000 in impact fees is just a drop in the bucket in many communities.” 'Show Me an Alternative' “The real solutions are the ones that enable communities to raise the funds for needed infrastructure without disrupting the housing market,” Edwards said. While many public officials acknowledge that impact fees are not a fair or efficient way to pay for infrastructure, their response is often “show me an alternative.” The new report offers a wide range of alternatives that state and local governments can use, depending on their size, needs, revenue streams, fiscal health and many other factors. The alternatives include innovative financing mechanisms such as tax increment financing (TIFs), state bond banks, tax-exempt municipal lease-finance, GARVEE bonds and special purpose corporations. Other approaches — such as design-build strategies, public-private partnerships and small-scale water and wastewater systems — offer new ways to get infrastructure built. Still other innovations — asset sales, privatization and competitive contracting of operations — focus on the long-term management of infrastructure. Fostering a Dialogue and Partnerships “This is the first comprehensive, objective review of infrastructure strategies that cuts across regions and across different infrastructure types,” said Janet Corcoran, principal of The Corcoran Network, a New York-based consulting firm. Corcoran was one of the lead authors of the report. “We’re hoping this report will foster dialogue, creativity and partnerships among those who have a stake in building high-quality infrastructure,” Corcoran said. The next step is to form partnerships at the state and local level so that the ideas in the report can be put to use, Pressly said. “We hope that local government officials, school officials, Realtors®, builders and developers, lenders, community activists and all the people with a stake in this issue will use this publication to explore innovative strategies that might work in their community,” Pressly said. To read the report, click here. Photos by Morris Semiatin
We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Housing SnapshotMortgage interest rates declined last week, but the refinancing boom is winding down. Refinancings — which have helped bolster consumer spending despite a plodding economic recovery — now account for less than 50% of new mortgage applications, down from 75% in the first half of 2003, and economists at Freddie Mac expect that share to drop to less than 30% next year. The stock market posted a modest decline last week as consumers continued to voice concern over the outlook for jobs and there was little compelling good economic news. The Federal Reserve was expected to keep its federal funds rate at 1%. Many economists now believe that the Fed won't see a need to increase interest rates until at least next spring and that Chairman Greenspan remains concerned about the inflation rate becoming too low. Many economists also believe that this year's fourth quarter will produce gains on the job front as businesses decide the time has come to start gearing up for more activity. Mortgage Interest Rates30 Year Fixed Rate: 6.16\% Housing Starts: Jul. 2003Total: 1.87 million\% New Home Sales: Jul. 2003 *1.165 million Existing Home Sales: Jul. 2003 *6.12 million * Seasonally Adjusted Annual Rate Housing Advocates Are Prevailing in Court on Policy IssuesThanks to a major push by NAHB in recent years, the home builders of America are finally starting to get their day in court and prevailing on issues that hold major repercussions for the cost of housing. With good reason, nobody wants to become embroiled in a lawsuit if they can help it. The legal process can be long and drawn-out and brutally expensive, and there are no guarantees that you will prevail even when the facts are on your side. But there are times when legal action is the only remedy. Unfortunately, lawsuits are the only language that many of our government regulators and bureaucrats understand. Environmental and anti-growth groups understood the power of lawsuits a lot earlier than we did, and they often trounced us in court. By working overtime, however, we have caught up with the opposition. Increasingly, our arguments on behalf of a common-sense and fair approach to decisions affecting housing affordability are prevailing. NAHB is flexing its muscle so that its members are protected in federal, state and local courts. On major concerns to the housing industry, the tide is turning — and that is working to the great benefit of families who are seeking to buy homes at prices they can afford. Ordinarily a fairly sleepy time for news affecting the housing industry, this summer has been an exception, and several court decisions have spelled success or suggested further challenges for home builders in the legislative arena:
Nobody said it would be easy fighting city hall — or huge federal regulatory agencies — in court. But when discussions break down, when cooperation fails, the judicial system is an appropriate place for the voice of the nation’s housing industry. That is why you can expect to hear more from NAHB in the judicial arena as we continue to make the case on issues that are essential for preserving and expanding a uniquely American way of life that begins with decent and affordably priced housing.
We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Eye on the EconomyDavid F. Seiders, NAHB Chief Economist Growth of economic output picks up while payroll employment weakens further ... As we expected, growth of real Gross Domestic Product in the second quarter has been revised upward (from 2.4% to 3.1%). Furthermore, it seems clear that GDP growth will top 4% in the third quarter of the year and continue to move ahead with strong momentum into 2004. As in previous stages of this economic recovery, the growth of economic output in the second quarter was spurred by rapid growth in labor productivity (output per hour) while the number of jobs in the economy continued to fall. The employment reports for both July and August show further erosion of payroll employment, and it’s clear that productivity growth is continuing at a rapid pace in the third quarter as businesses squeeze all they can out of their existing workers before adding to their payrolls. Rapid growth in spending and economic output is sure to force businesses to increase hiring at some point, and we expect payroll employment to pick up by the fourth quarter. Indeed, surveys of small businesses have been showing more positive hiring plans for several months, business use of temporary help services has been on the rise and the August employment report showed a pickup in self-employment that helped to offset the deterioration in payroll jobs. These developments typically precede broad-based improvement in labor market conditions. The Fed holding rates steady despite labor market weakness ... The Federal Reserve almost certainly will hold short-term rates steady at its FOMC meeting tomorrow (keeping the federal funds rate target at 1%) even though the labor market has been weakening since the last rate cut on June 25. The Fed actually has been applauding the strong productivity growth, along with the obvious pickup in spending and economic output, and the Fed fully expects the job market to firm up before long. The current monetary policy stance is quite stimulative, of course, a point the Fed keeps stressing in public statements. The next change in monetary policy most likely will be toward higher rather than lower rates. But the Fed will not start to tighten until there’s convincing evidence of labor market improvement and some increase in core inflation in the upper end of the central bank’s implicit 1.5% to 2.5% target range. We don’t expect the first rate hike to occur before the June 2004 FOMC meeting, and the upward march toward monetary policy “neutrality” presumably will proceed quite cautiously beyond that point. House prices continue to rise while the refi boom stalls the buildup of housing equity ... OFHEO’s national House Price Index showed a 5.6% advance for the second quarter (year-over-year), as all the census divisions, all the states and all major metro areas posted price increases. As anticipated, rates of house price appreciation have been decelerating in many areas from the peak rates in the first half of 2001, but there seems to be little danger of outright price declines as the national economic expansion gains momentum and mortgage rates remain historically low. The healthy rate of home price appreciation, along with the strong pace of single-family housing production (new units and remodeling), pushed the market value of household real estate to a record $14.1 trillion at mid-2003. However, the record-breaking refinancing boom in the second quarter of the year spurred an even larger increase in mortgage debt, halting the climb in housing equity (at least temporarily). Even so, equity in housing was a near-record $7.6 trillion at mid-year, and mortgage debt was still less than half the market value of homes. Mortgage rates are still the key to the single-family housing outlook ... The increases in mortgage interest rates since mid-June have already taken a lot of strength out of the refi boom, based on weekly data on mortgage applications from the Mortgage Bankers Association. But the impacts on home buying apparently have been quite limited to date. It’s reasonable to expect home buying and single-family housing production to move ahead at a strong pace that’s only modestly below the extremely rapid rate of recent months, and house prices as well as housing equity should post healthy gains over the balance of this year and in 2004. The path of mortgage interest rates is critical to these forecasts, of course, and NAHB’s interest rate outlook shows only slight increases from current levels until the latter part of next year. Recent rate developments in the Treasury market have been encouraging, showing some retreat in long-term yields from the highs of early September. This should presage some decline in the long-term mortgage rate from its early-September level (6.44%). Residential remodeling moves ahead, paced by spending on owner-occupied homes ... NAHB’s Remodeling Market Index (RMI) for the second quarter of 2003, based on a survey of about 550 professional remodelers, showed strong readings for both current market conditions and expectations for the future. Remodeling of owner-occupied homes received high scores on all fronts, including forward-looking measures regarding calls for bids, amount of work committed in coming months, job backlogs and appointments for proposals. The components of the RMI dealing with rental units have been showing much less strength than the owner-occupied components for both current market conditions and the outlook for remodeling jobs. Many landlords apparently have been limiting remodeling outlays in an environment of rising vacancies and widespread rent concessions. Production of new multifamily structures hangs in there despite rising rental vacancy rates ... Multifamily starts and permits have been essentially flat for about seven years, generally hovering in the 325,00-350,000 unit range (annual rate), and the value of new multifamily construction put-in-place has settled into an elevated range around $33 billion per year. This has occurred despite persistent and substantial increases in rental vacancy rates since late 2000 and reports of widespread rent concessions in market-rate rental housing, a phenomenon that apparently has sapped the strength of the market for federally subsidized rental units in some areas. NAHB’s Multifamily Market Index for the second quarter confirms the weakness in current rental market conditions, particularly for Class A apartments. However, multifamily producers and apartment managers foresee stronger rental market conditions six months down the line, based largely on expectations for higher home mortgage rates and a stronger job market. Furthermore, the condo (for-sale) component of the market for new multifamily units continues to perform relatively well, and more than 10% of survey respondents say they are planning to convert rental to condo units down the line. 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 Sept. 10 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.
Let us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Rents Out of Reach for Millions of Working Americans, Study FindsA side-by-side comparison of wages and rents across the country by the National Low Income Housing Coalition finds that millions of American families are unable to afford safe and decent housing as rental costs continue to rise faster than wages and faster than the costs of other basic needs; as the affordable housing stock declines; and as an insufficient amount of affordable housing is being built. A national median wage of $15.21 is needed to afford a two-bedroom apartment at a Fair Market Rent, based on the standard of paying no more than 30% of income for rent, according to the coalition’s “Out of Reach 2003” report, which was released last week. This is a 37% increase from an hourly wage of $11.08 in 1999 and a 3.74% increase over last year. Hourly wages needed to afford two-bedroom apartments range from a high of $35.02 in Santa Clara County, CA, to a low of $7.12 in parts of Alabama, the report finds. In 66% of the nation’s metropolitan areas, renters need to earn at least twice the prevailing minimum wage to be able to afford a two-bedroom apartment. In 46 of those areas, between three and four times the minimum wage was needed; in eight more, between four and five times the minimum wage was needed; and in three areas the wage needed exceeded five times the minimum wage. Fair Market Rents are set by the Department of Housing and Urban Development each year and are defined as “the dollar amount below which 40% of the standard quality rental housing units rent.” This is what “it costs to rent modest, safe and healthy housing” in specific counties and metro areas, the report says. Other findings from the “Out of Reach” data for 2003 include:
The coalition began publishing “Out of Reach” data in 1989, and comprehensive data for every jurisdiction in the U.S. has been available since 1999.
Pillars Conference Showcases Multifamily Industry and Issues To learn more about a variety of issues that affect multifamily professionals, attend the 2004 NAHB Multifamily Pillars of the Industry Conference & Awards Gala, the premier educational and networking event of the year for the multifamily industry, from March 28-30 in Palm Springs, CA. For more information or to register, click here.
We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Expert Panel Reports on Health Effects of Indoor MoldReviewing the existing scientific literature, a panel of experts in the fields of mycology, industrial hygiene, immunology and toxicology has reported that mold can cause allergic reactions in sensitized individuals but there is scant evidence that it is linked to many other health problems. The panel was convened by NAHB to help association members sort through the complex and often conflicting information on the health effects of mold. The panel was also asked to identify future research that may help determine the links between indoor molds and their related health effects. To read the panel’s report, click here, and go to PDFs on "Scientific Literature Review of Mold." While various studies on humans have attempted to link molds to a variety of non-specific health problems — such as fatigue, nausea and depression — the panel found that those links are weak and there is no evidence of causation in this area. The panel also found that there is little evidence to link inhalation of molds in offices, schools, hospitals and residences with any form of cancer. The report includes an executive summary and a review of what the panelists consider to be the 100 most important documents on the health effects of indoor mold in the English language.
We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Virginia Case Supports Regulation of Roadside DitchesNAHB members who have to contend with wetlands regulation were dealt a legal setback on Sept. 10 when the U.S. Fourth Circuit ruled that ditches can be considered tributaries of the waters of the U.S. and that development activities affecting those ditches can be regulated. In its 3-0 decision in favor of the Commonwealth of Virginia and the Army Corps of Engineers in the case of Treacy and U.S.A. v. Newdunn Associates, the court said: “It is undisputed that water flows intermittently from wetlands on the Newdunn Property through a series of natural and manmade waterways, crossing under [Highway] I-64, draining into the west arm of Stony Run, and eventually finding its way 2.4 miles later to traditional navigable waters.” In the case of U.S. v. Deaton, a federal appeals court earlier this summer reached a similar conclusion that man-made roadside ditches can be regulated under the Clean Water Act. NAHB’s legal advocates have vowed to continue fighting these kinds of decisions. The association has formally asked for a re-hearing of the Deaton case, and may take its battle all the way to the Supreme Court. For more information, e-mail Duane Desiderio or call him at 800-368-5242 x8146 or Tom Ward, x8230.
We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Atlanta Builders Win Major Fee SettlementA drawn-out legal battle over building permit fees was recently resolved when DeKalb County, GA, agreed to pay a $1.65 million settlement to the Greater Atlanta Home Builders Association. The precedent setting case, Greater Atlanta Home Builders Association, Inc. v. DeKalb County, began nearly four years ago, when the association realized that funds raised from a recent increase in building permit fees were not being used for their intended purpose. Builders worked with the county to negotiate the fee increase, proceeds from which were to fund additional building inspectors and increased services. Georgia law says that regulatory fees must be proportional to the cost of providing the associated services. But the new fees were not used to enhance county services and DeKalb County's development department began to accumulate a large budget surplus. Filing a lawsuit was not the association's first choice for changing the excessive fee structure. Jeff Rader, vice president of operations and public policy for the Atlanta association, said that his group “places a high priority on having a good working relationship with local elected officials.” The association was forced to file suit after its attempts to work with the county failed. The association originally sought a declaratory judgment from the Superior Court of DeKalb County, which would have ordered the county to fix its fee structure, rather than settling the case monetarily. The county had the case moved to federal court, where the association's motion for summary judgment was granted and the court maintained that the fee structure violated state law. The county appealed the decision — and later decisions that favored the association — and said it would continue to contest every ruling that required it to refund fees. The association decided to settle for a $1.65 million payment because it was facing the threat of further delays from the country and it wanted to provide relief for its members. The Greater Atlanta Home Builders Association's board of directors appointed a task force to determine how the unusual lump-sum payment will be used; the task force will report its recommendations by the end of the year. The association has recently sought similar relief from the city of Atlanta.
We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Ask the Lawyer — About Copyright Protection for Buildings and PlansQ. My business partner and I are at odds over whether we can build a house using a design similar to one we recently saw in our local Parade of Homes. I say that we can so long as we do not use the exact design and we do not use the original plans. My partner disagrees and says that we could be sued for copyright infringement if we build that house without first obtaining permission. How does copyright apply here? A. You cannot avoid copyright infringement by making a few changes to someone else’s design. The test for copyright infringement is whether the works in question are substantially similar. The focus is on the overall impression of the two works, not on a detailed comparison of their individual differences. A copyright protects "original works of authorship." Copyright protection is significant because it gives copyright owners property rights in their original works, including the exclusive right to: reproduce, or copy, the work; improve upon it; display it publicly; and distribute copies.
Copyright protection extends to building designs. This was not the case until fairly recently. Prior to 1990, copying a house structure, without copying the plans, did not usually constitute copyright infringement. That changed with enactment of The Architectural Works Copyright Protection Act, which extended protection to a new category: architectural works. An “architectural work” is defined as “the design of a building as embodied in any tangible medium of expression, including a building, architectural plans or drawings. The work includes the overall form as well as the arrangement and composition of spaces and elements in the design, but does not include individual standard features.” Consequently, if you build that house you might be subject to copyright infringement even if you do not use the original plans because the act of copying a constructed home infringes on the designer's copyright in the design of the building. Copyright infringement can be costly. A copyright owner who registered the design with the United States Copyright Office prior to the infringement may recover either actual damages or damages provided by the Copyright Act of between $750 and $30,000, as determined by the court. And if the court determines that the infringement was willful, it may award statutory damages of up to $150,000.
If you have questions for Ask the Lawyer, click here. There is no guarantee that your question will be answered in this format, so if you have a particular legal concern that requires immediate attention, contact the NAHB Legal Research Service at 800-368-5242 x8491. This information is provided as a service of the NAHB Legal Action Committee and NAHB Building Products Issues Committee. The information is intended to familiarize you with the law in this area. It is not intended to be an exhaustive presentation of legal information on this particular subject, and in no way constitutes an opinion of law. Your own attorney must review this information to determine how it may apply to your particular situation.
We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Understand Your Company — For What It's WorthSelling a business without knowing its market value is like playing poker without looking at your cards — except that a lifetime of hard work and sweat equity is at stake. Picture this scenario: On the same day, the owners of two different private companies complete transactions to sell their respective companies to two separate buyers. The companies have similar products and services, serve similar markets and have similar revenues and profitability. Yet one sells for $11 million, while the other sells for $17.5 million. Why the big difference? Despite apparent similarities between the two companies, there are probably hundreds of factors that increase or reduce their value to a buyer. That is why understanding what makes a company more, or less, attractive to a buyer is important for any home builder or remodeler planning to sell his or her business. However, it’s good to know your company’s true market value even if you aren’t planning to sell your company anytime soon. The information comes in handy when you’re seeking a loan from a bank, looking for investors, want to take on a partner, want to know how your company compares to the competition or want to see if that new handyman or custom home division is adding value to your company. Many business owners don’t want to spend the time or money to learn their company’s true market value. Some believe it’s too difficult or they don’t have the right skills or resources; others think they already have a pretty good idea of what their companies are worth — but they’re usually wrong. Find an Advisor Determining market value requires extensive market research and financial analysis to reveal a company’s future potential under new ownership. Since most business owners sell only one business in their lifetime, a professional, experienced mergers-and-acquisitions advisor can help by providing a valuation that gives an owner confidence when approaching and negotiating with prospective buyers — or talking to a lender. If you do less than $1 million in volume, look for a business broker or an accountant who specializes in mergers and acquisitions. (You can find them by consulting the International Business Brokers Association.) In addition, you’ll want a good investment banker and an attorney who handles mergers and acquisition on your team. Your advisor can probably provide referrals to locate these professionals. Once you’ve located an advisor, broker or accountant, don’t expect him or her to do all the work. The key to obtaining a “full” valuation is to understand everything good and bad about your business, and to anticipate how this information will be received in the marketplace. Study Your Financials The process usually begins with recasting financial statements of your business — typically the past three years’ balance sheets, income statements and statements of cash flow. Recasting includes extracting information that lenders, investors and potential buyers want to see; eliminating certain expenses and extraordinary items used by private, owner-managed companies to define tax benefits; and making other adjustments to conform with Generally Accepted Accounting Principles (GAAP). These adjusted financial statements offer potential buyers a normalized view of the company’s past performance; they provide a basis for making judgments about the company by showing how it operated over a given period. Remember, however, that buyers are buying for future, not past performance. Adjusted historical financials help you build pro forma financials, which look five years into the future and are the foundation of market value. Pro forma financials require extensive market research to determine reasonable, supportable assumptions about revenue and profitability trends, growth rates, market dynamics and other factors. Study the Market If it isn’t economically feasible to hire a market research firm, do your own research by examining trends in the industry, studying your competition and reading industry publications and general business-related periodicals. Identifying and examining intangible assets is also integral to the valuation process. These include a loyal customer base, patents and licenses, supplier contracts, trade secrets and many other attributes that add value to the company but aren’t necessarily represented in the financial statements. Combining all of these elements — adjusted historical financials, reasonable pro forma financials and intangible assets — reveals a company’s future potential and establishes a range of what informed buyers will likely be willing to pay for the company. Armed with a perceptive, comprehensive valuation of his or her business, an owner can then enhance the value by increasing sales and marketing efforts, investing in cutting-edge technology, divesting an underperforming division or adjusting the capital structure. That in turn provides leverage at the negotiating table and increases the likelihood of receiving an attractive price for the company — or funding for future ventures — regardless of market conditions.
David L. Walker is president of RSM EquiCo’s Professional Services Group, which conducts research and analysis for client companies to determine accurate valuation ranges. Based in Costa Mesa, CA, the company specializes in mergers and acquisitions, divestitures and corporate finance for private middle-market businesses and is part of RSM McGladrey Business Services, a business segment of H&R Block. For more information, contact Gerry Gacek, senior vice president, at 888-900-0411.
BuilderBoorks.com Offers 'PRO Builder: Business Planning' Guide Business planning is the bedrock of a valuable, profitable company. "PRO Builder: Business Planning" offers step-by-step exercises and proven methods for establishing your company’s goals, developing strategies, setting priorities and evaluating results. It includes an electronic spreadsheet for developing the financial section of your business plan. To view or purchase this publication, click here, or call 800-223-2665 to order. BuilderBooks.com also offers a variety of other publications about business management. To view or purchase these publications online, click here. Want more information about effectively managing your business?NAHB’s Business Management Department offers a variety of online resources to help you run your business better and more profitably. Click Business Management Tools for articles about human resources, financial management, sales, production, technology, 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. 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. University of Housing Offers Courses on Customer Service and Business Management The NAHB University of Housing offers a course on business management designed to help builders improve their business and profitability. For a list of current offerings, click here.
We Want to Hear From You Let us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Put Your Best Foot Forward on Your Web SiteBy Donna Sechrist In fact, 71% of prospective home buyers now say they are visiting Web sites at some point in their search for a home — making this the first year on record in which more than half of all home buyers are using the Internet, according to a profile of home buyers and sellers by the National Association of Realtors®. Your customers can read all about you, your qualifications and your experience, as well as view homes that you have built in the past and new homes you currently have for sale. Effective Web sites also provide other content of interest to your visitors, such as tools to evaluate the cost of relocation and the quality of local schools. However, to take advantage of marketing opportunities on the Web, you first have to direct customers to your site. That’s why it’s imperative to advertise your Web site address everywhere you advertise your company name to drive traffic to it. Consumer destinations offer services that let you advertise yourself and include a link to your site. And once they arrive at your site, you need to give buyers the information they are looking for as effectively as possible. Here are 10 tips from HomeBuilder.com™, NAHB’s official new homes listings Web site, that are easy to implement and that will ensure your Web site is cost-effective advertising driving more traffic and sales your way:
Do the math: A Great Web Site + Qualified Traffic = More Sales. Remember, your Web site is more than just a simple advertisement. It’s your digital calling card. Make sure you’re making the right impression. Donna Sechrist is vice president of product management, Web sites and directories for HomeBuilder.com™. Subscribe to NAHB's Sales & Marketing Ideas Magazine For additional cutting-edge sales and marketing information, subscribe to NAHB’s Sales & Marketing Ideas magazine. Call 800-368-5242 x8192 to subscribe or order a copy. Visit www.nahb.org, keyword: NSMC to learn about membership benefits of the Nationals Sales and Marketing Council and the Institute of Residential Marketing. BuilderBooks.com Has Sales and Marketing Publications BuilderBooks.com offers a variety of sales and marketing publications online. To view or purchase these publications, click here. University of Housing Offers Sales and Marketing Designations and Courses The NAHB University of Housing offers designation programs and courses specifically for sales and marketing professionals. For more information on these programs, click here, or call 800-368-5242 x8EDU.
We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Employees Should Be Prepared for EmergenciesEmployers should always be prepared for fire, damaging storms, hazardous chemical spills or other unforeseen emergencies by preparing an emergency action plan to ensure the safety of their employees. Workers should receive proper training to ensure they understand their roles and responsibilities within this plan, the Occupational Safety and Health Administration (OSHA) advises. According to OSHA, the following should be addressed in an emergency action plan:
Before Lightning Strikes Thunderstorms can be a significant hazard for construction employees who are working outdoors, and the National Weather Service provides helpful information about how to avoid lightning and strong winds. To learn more about lightning safety outdoors, click here. Employers should train their employees on how to respond to approaching storms. According to the weather service, lightning can strike as far as 10 miles away from the rain in a thunderstorm. If thunder can be heard, then workers should seek safe shelter immediately because they are already within striking distance. Before bad weather strikes, employers should:
If lightning is approaching, workers who are outside should:
BuilderBooks.com Has Publications About Construction Safety and OSHA BuilderBooks.com offers a variety of publications about construction safety and OSHA online. To view or purchase these publications, click here. We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you.
Sell Your Clients on Aging-in-Place DesignDespite the need out there, selling aging-in-place residential design is harder than it should be because potential clients don't understand what it means. Finding a short explanation is no easy task. Aging-in-place covers sweeping changes in building and remodeling that are enabling people to live in their homes safely and independently for the rest of their lives. This approach begins with universal design — the design of products and environments that can be used by everyone to the greatest extent possible, without the need for adaptation or specialized design. Such common examples as the installation of grab bars or lever door handles can help your customers understand how universal design can make life easier for everyone in the family at the same time as it enables residents to age in place. For those in their 40s or 50s, this may not seem like a front-burner issue. However, when they have to help aging parents or grandparents negotiate the barriers in their homes, then they become aware of stairs that are an impediment to getting to the master bedroom or doorways that are not wide enough for wheelchairs. Aging-in-place design sounds like a no-brainer. So, how do we make our home owner clients receptive to this issue? Here are some suggestions:
I hope that these tips will help you sell aging-in-place and universal design elements in all of your projects. Educate your clients about how much sweeter life can be when their home is designed for aging in place. Dan Bawden, CGR, CAPS, JD is president of Legal Eagle Contractors in Houston. He is the chair of the Certified Aging-in-Place Specialist Board of Governors. University of Housing Offers CAPS Designation Courses The NAHB University of Housing offers the Certified Aging-In-Place Designation (CAPS), which teaches the technical, business management and customer service skills essential to competing in the fastest growing segment of the residential remodeling industry: home modifications for the aging-in-place. For more information on this designation program, click here. BuilderBooks.com Has Publications About Remodeling BuilderBooks.com offers a variety of remodeling publications online. To view or purchase these publications, click here.
We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. New Designs Improve Active Adult CommunitiesAs aging baby boomers dominate the real estate landscape, active adult communities are continuing to become more popular because of their appeal to a generation seeking active and easy retirement lifestyles. While these communities are known for their innovations in lifestyle and amenities, they tend, in practice, to lack innovative design. They are in such high demand that builders are maximizing tight or restrictive land plans by building more homes on smaller lots — which can lead to design problems that are not conducive to conveying the lifestyle that active-adult living is all about. By manipulating the land configuration from the start of a project, these problems can be avoided and a community’s aesthetic appeal and its value can be enhanced. In active adult communities, the standard land plan is usually defined by very long and narrow lot configurations — lots that are 25-30 feet wide and 70-80 feet deep. Homes tend to be lined up in rows of six to eight units, with two-car garages in the front, and if they are one-story the end result can be streetscapes dominated by enormous ski-slope roofs and garages. Narrow facades leave little room for front windows or outdoor gardens or patios, which can be a drawback for a community that is designed to be structured around a warm, sociable living environment. Why not consider these added elements when designing an active adult community? There are creative ways to maximize space on a given lot, even if it’s small. Here are several tips how:
The above examples of land planning design are becoming more and more popular in many densely developed communities in California, where much of today’s innovative architectural concepts are originating. Reducing the roof mass, creating interesting spaces behind the garage for patios or gardens and increasing the surface area in front of the home to create more space for windows and light can increase the value and appeal of an active adult community. This is an approach to design that is senior-friendly, creating a comfortable living environment and fostering a sense of neighborhood in harmony with what home buyers expect to find in active-adult housing. Mark Leahy is president of Pinnacle Design & Consulting, a Fairfax, VA-based, full-service architecture firm specializing in residential and commercial design. For more information, he can be reached by e-mail, or call 703-218-3400.
Enter Your Design in Seniors Housing Awards Competition If you have an innovative design for active adult and seniors communities, enter the 2004 Best of Seniors Housing Design Awards competition. Click here to view the call for entries brochure, or e-mail Eucklan Matthews or call 800-368-5242 x8220. Learn More About Seniors Housing Through the Seniors Housing Council To learn more about seniors housing or boomers, join the NAHB Seniors Housing Council. The council provides information, education, networking and recognition opportunities for its members and represents NAHB on seniors housing issues. For more details, e-mail Jeff Jenkins or call him at 800-368-5242 x8292. BuilderBooks.com Has Publications About Seniors Housing BuilderBooks.com offers a variety of publications about the seniors housing market. To view or purchase these publications, click here and type “seniors” in the search engine. 2004 Seniors Housing Symposium To learn more about the seniors housing market, plan to attend the 2004 Seniors Housing Symposium, Building for Boomers & Beyond: It's All About Lifestyle in Chicago from April 14-16, 2004. The symposium will focus on the lifestyle component of 50+ seniors housing.
We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Dispute Over Inapplicable Code Resolved QuicklyDevelopers who want to build apartment communities are used to neighborhood opposition. But the opponents of a community being proposed by Princeton Properties, Lowell, MA, used a strategy that the company's CEO, Andrew Chaban, had never seen before. “They wanted to derail the project, so they went to the planning board to argue that our project violated a regulation concerning site access that appeared in the NFPA 5000 code — even though that code isn’t part of the Massachusetts state code,” said Chaban. Chaban immediately called the experts at NAHB's Construction, Codes and Standards. “[Staff member] Jeff Inks thoroughly researched the issue, and found that the planning board didn’t have the right to impose that regulation,” he said. Because NAHB was able to respond quickly on Princeton’s behalf, said Chaban, “we were able to save a lot of time in resolving the issue, and that saved us money. That kind of service means a lot to members.”
Save $500 on Williams Scotsman Mobile Offices With 90 locations in North America and more than 50 years experience, Williams Scotsman has a money-saving plan specifically designed for NAHB members — with up to one month's free rent. When you sign up, your seventh month is FREE — with a maximum value of $500. Williams Scotsman offers a full line of temporary-space products and accessories, including sales offices and centers, construction trailers, mobile offices, storage products and floor plans and specifications. For more information, call 800-782-1500 and identify yourself as an NAHB member or go to the Williams Scotsman Web site for NAHB members. 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 many advantages of membership in your local, state and national home builders association.
We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. HBI Provides Credentialing for Residential Construction TrainingAs fall quickly approaches and the 2003-2004 school year gets underway, educational institutions and housing industry training programs across the country are seeking credentialing from the Home Builders Institute (HBI) by using its Residential Construction Academy Series. The Central Council Tlingit and Haida Indian Tribes of Alaska Vocational Training and Resource Center, the University of Hawaii — Maui Community College and the Federal Correctional Complex in Petersburg, VA, are among the first to become credentialed. Institutions with training programs utilizing NAHB’s Residential Construction Skill Standards and using RCA Series textbooks and materials in their instruction are eligible to receive program credentialing. The RCA Series is a product of a strategic partnership between HBI, the workforce development arm of NAHB, and Thomson-Delmar Learning to develop craft trade instructional textbooks and materials to help educate the next generation of the residential construction industry. The RCA Series materials are based on skill standards for residential construction developed by HBI and NAHB members and include such titles as: “Carpentry,” “Electrical Principles” and “House Wiring.” Additions to the series for release next year will focus on plumbing, HVAC and facilities maintenance. In addition to the links above, further information on the RCA Series is available by e-mailing Steve Kramer.
We Want to Hear From You Let us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Rhode Island Women’s Council Cares About EducationFocusing its community outreach efforts on education, the Rhode Island Builders Association (RIBA) Women’s Council is making a difference in improving the lives of young residents in the Providence area. “To make a difference in our world, we must appeal to the minds and hearts of its future, the children,” said Mary Giordano, president of the council and a lifelong educator. Program support by the council includes:
The local women’s council has been working to promote NAHB’s Homes of Our Own program in local schools. Giordano says that one of the missions of the council is to help children who are interested in becoming involved in the home building industry and its trades. Other community efforts include:
To find out how you can get involved with the NAHB Women’s Council in your area, e-mail Amy Larrabee or call her at 800-368-5242 x8455.
We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Housing Suppliers Form Speakers BureauA new pilot program that will provide members of home builders associations with presentations geared to helping make their businesses more successful was recently announced by the National Council of the Housing Industry (NCHI) — the Supplier 100 of NAHB. Initially aimed at the 10 largest associations in the country, NCHI’s Speakers Bureau will provide experts from major housing suppliers to address topics of general interest to the industry. Speech topics, which are far-ranging, include: controlling humidity, trends in low-voltage wiring, best practices for fireplaces, leadership development, lighting design, glazing systems for windows and doors, understanding codes and standards, insulating concrete form technology, media and community relations, job site management, residential steel framing, kitchen and bathroom design, computer automation of multifamily operations, and much more. Signing on for the initial phase of the project are: American Gas Association; Aprilaire; Eaton/Cutler-Hammer; Hearth, Patio & Barbecue Association; Hilti, Inc.; Lutron Electronics Co., Inc.; Pella Corporation; Plumbing Manufacturers Institute; Portland Cement Association; SBR, Inc.; Skil Bosch Power Tools; the Steel Framing Alliance; Timberlake Cabinet Company and Timberline Software Corporation. Speakers will also provide two-minute PowerPoint presentations on NCHI. For more information on the Speakers Bureau, e-mail Barbara McMurray at NCHI or call her at 800-368-5242 x8243.
We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Residential Back-Up Generators a Growing TrendWith electronic power blackouts in the news, builders have an opportunity to increase their business by installing back-up generators in their homes, according to Eaton/Cutler-Hammer. Headquartered in Cleveland, Eaton/Cutler-Hammer is a member of the National Council of the Housing Industry — the Supplier 100 of NAHB. Cutler-Hammer, together with Briggs & Stratton, offers two automatic generator systems for the home. According to the manufacturer, the systems use advanced electronics to continuously monitor the availability of normal power. The generators turn on automatically, in seconds, if there is an interruption in power and shut down when the power is restored. The systems are quiet, says Cutler-Hammond, and include an automatic weekly exercise function to ensure that they remain in excellent working condition. Ten- or 12-kilowatt systems will keep most major appliances running during a power failure. These include: refrigerators, well pumps, garage door openers, lighting, heating and air conditioning, kitchen appliances and sump pumps. “Generator systems not only will keep home owners worry-free in a storm or blackout,” says the manufacturer, “but they will increase the value of the home. There is no longer any need to sit in the dark, worrying about the cold or the heat or any other problems associated with loss of power.” For more information on the home generator systems from Eaton, click here.
We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Donated Materials Help Renovate Apartments for New MomsWorking with World Vision Chicago and The Storehouse, a faith-based program called New Moms has totally renovated six apartments to create a safe haven for 18- to 21-year-old mothers and their children. The apartments share a living space, playroom and laundry room. With just $9,000 in hand and a corps of volunteers, New Moms was able to replace appliances, install new cabinets, repair doors, paint walls and replace tile. Materials were purchased from The Storehouse at only a fraction of what they would have cost from a commercial building supply store. Storehouse is able to provide affordable building materials for low-income housing in Chicago thanks to donations from members of the National Council of the Housing Industry — the Supplier 100 of NAHB — and from other manufacturers. Donors to The Storehouse include: Elkay Manufacturing, Grohe Faucets, Home Depot, Kohler, Moen, Purdy Corporation, Masco, Sherwin Williams, Simonton Windows, The Great Indoors, Winstrom Manufacturing, Your “Other" Warehouse, Seigle’s Building Supply, Boise Cascade and many more. New Moms is ready to undertake another project with The Storehouse. It plans to turn an empty storefront into a day care center for children three years old and younger. The building has no drywall, electricity or plumbing and is completely unfinished. World Vision continues to seek donations for The Storehouse, which currently needs cabinets, white paint and shopping carts. Manufacturers, distributors or retailers who are interested in becoming Storehouse partners can e-mail Sharon Jackson-Pincharm or call her at 773-921-3900 x315.
We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Mexico Is Focus of International Housing ConferenceBuilders and building product suppliers looking to tap the lucrative and growing Mexican housing market will gain practical advice and make valuable business connections at NAHB’s upcoming International Housing Conference of the Americas. Taking place in Mexico City, Oct. 16 - 18, the conference is expected to attract key players from both sides of the U.S.-Mexico border. Mexico currently confronts pent-up demand for 6 million homes. The market is expected to grow at 4.5% per year, with an estimated value of US$6.7 billion by the end of 2005. Mexican builders plan to build more than a million new low- and middle-income homes a year for the next three years. Mexico President Vicente Fox has set a goal of meeting the housing needs of 45 million new households by 2030. “NAHB’s 1st International Housing Conference of the Americas can help U.S. and Mexican companies identify opportunities to help reach Mexico’s housing goal,” says NAHB President Kent Conine. NAHB is now accepting online registrations for the event. Click here to register and find more information. “Now is the time for members of the home building industry to learn about the Mexican market,” Conine says. “With one-on-one meetings, education sessions and ample networking opportunities, NAHB hopes the conference will pave the way for collaboration between builders and suppliers from both nations.” Conference sessions will feature industry experts leading discussions on the latest building concepts, housing and design trends, building efficiencies and technologies, green building, building codes and work-site safety, marketing strategies, Mexico's emerging mortgage finance system and more. The conference is designed to appeal to a broad range of participants, including U.S. and Mexican builders, manufacturers, suppliers, financial representatives, architects and designers. Attendees will gain valuable information, insights and contacts in the Mexican housing market. To read the agenda, click here; to download a brochure, click here. NAHB has co-located the conference with EXPO CIHAC, Mexico’s largest housing and construction-industry trade show, which features over 500 exhibitors, including more than 70 U.S. companies — and typically attracts over 60,000 visitors. For additional information, e-mail Matt Monjan or call him at 800-368-5242 x8419.
BuilderBooks.com at EXPO CIHAC, Has Publications in Spanish BuilderBooks.com will be participating in EXPO CIHAC. BuilderBooks.com also offers a variety of Spanish language publications. To view or purchase these publications, click here.
We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Countrywide Becomes a Building Partner With HomeAid AmericaA $50,000 National Building Partnership commitment from Countrywide Home Loans was announced earlier this summer by HomeAid America. “We realize that for many Americans, the dream of homeownership is not yet within reach,” said Dan Hanson, Countrywide’s executive vice president. “By supporting HomeAid, we help to create transitional shelter for individuals and families who need shelter and support to regain their independence.” A major focus of Countrywide’s corporate giving program is to support non-profit organizations that further the company’s core goal of removing barriers to homeownership and helping those without permanent housing, he said. “As a HomeAid board member for 10 years, it is exciting to see Countrywide become a national partner,” said Hanson, who cited Countrywide’s commitment to builders and their home buyers. HomeAid America now has nine National Building Partners, In addition to Countrywide, they are: Beazer Homes, David Weekley Homes, John Laing Homes, Kimball Hill Homes, Lennar Homes, Pardee Homes, Shea Homes and Standard Pacific Homes. Each engages in national support of the non-profit organization and in regional support of HomeAid shelter development programs that build and donate shelters for the temporary homeless. Boost Your Marketing Through These Awards ProgramsProud of your work? Show it off and give your marketing efforts a boost by entering one of these award programs:
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To view more meetings & events information on the NAHB Web site, click here.
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