Nation's Building News Online: December 15, 2003Print All Articles Text Version |
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Loft-Styled New American Home Adaptable to Multi-Generational NeedsBuilders are putting the finishing touches on The New American Home 2004 to have it ready for the thousands of convention-goers who will be visiting it next month during the International Builders’ Show in Las Vegas. By all accounts, the single-family, modern loft-style residence is expected to be one of the best of the 21 showcase homes that over the years have been built in conjunction with the annual NAHB convention. Co-sponsored by the National Council of the Housing Industry — the Supplier 100 of NAHB — and Builder magazine, this year’s home has a commercial feel in its use of large, adaptable spaces and such features as exposed ductwork and loft ceilings. Designed by Food for Buildings, an architectural firm from the Netherlands, the home’s loft design bears a resemblance to the work of Frank Lloyd Wright and provides living space that is adaptable to the needs of a variety of households spanning many generations — ranging from first-time buyers to singles to older members of the post-World War II baby boom with grown children. In its acknowledgment of other emerging forces in the American housing market, the home works well in higher density situations and can be built using quick and easy construction techniques. The home is being constructed in The Lakes at West Sahara — just minutes from the Las Vegas Convention Center — by local builder, Merlin Contracting and Developing, LLC. In consultation with Building America's IBACOS Consortium, the home uses a number of high-performance technologies to achieve a level of energy efficiency that will exceed Energy Star's required score of 86 on the Home Energy Rating System (HERS). The home has been designed to use 46% less energy for space heating and cooling, hot water and lighting than a comparable standard home. Specific energy-efficient products in the home include: “access” windows from Loewen with Sun 140 glazing; insulated concrete forms for the foundation and above-ground exterior walls; structured insulated panel roofing; heat recovery ventilators; highly efficient condensing units; and copper roofing shingles that reflect sunlight away from the house, reducing the roof’s surface temperature and the home’s cooling load. For the first time in 10 years, most of this year’s New American Home’s structural elements will be made of concrete — including the envelope, flooring, decking and exterior finish. The show home is being furnished by San Francisco designer Jiun Ho and merchandiser Source Francaise in a fusion of Asian and European traditions with sensibilities that blend well with both modern and classic interiors. Furnishings are conducive to relaxed living rather than studied formality and have been interspersed with antiquities rescued from French chateaus and Provencal farmhouses. Design highlights of the home include:
The sales price of the 5,180-square-foot home is estimated to be in the $1.8 million range. Building News Coast To CoastHome View/Hidden DoorsAccording to Home of Fine Decorators' Dawn Causa, a growing number of Florida home owners are opting for so-called "flush doors." In this design trend, which produces a seamless effect, the casings are removed and the door is painted to match the wall. Once popular in minimalist dwellings, Causa says these camouflaged doors are now being incorporated into all kinds of house styles. If the Kitchen's Warm, It May Be the PCThe kitchen has been transformed in recent years from a room solely designed for cooking to a family gathering place, and it is now the most popular area to locate the household computer. University of California-Los Angeles Center for Communications Policy Director Jeffrey Cole believes always-on broadband Internet connections sparked the migration of the computer from the den to the kitchen. "It's all about being able to do things very fast and not have to wait," he remarks. Home owners are putting both laptops and desktop computers with either wireless or cable connections in the kitchen, and some are even giving up eating space to make room for the equipment. Moreover, computer areas are now included in many kitchen designs. Home owners typically choose devices that do not stand out in terms of size, and many prefer laptops because they can be moved to different locations throughout the room. With Salton's $2,000 Icebox, for instance, home owners view the Internet, television, movies and other applications from a flip-down monitor mounted under their cabinets. The device's keyboard and remote control are tightly sealed so that they cannot be damaged by spills and other kitchen mishaps. Builders: Incentive Program Won't Lower Home Prices MuchOfficials in Palm Beach County, FL, have created a voluntary incentive program to assist builders in offering homes for just $78,000-$188,000. Participating builders can undertake higher-density projects that increase area traffic. The incentives are intended to help low- to moderate-income families that cannot afford properties at the county's median price of $246,000 without a significant downpayment. County commissioners say builders could be required to offer low-cost homes to earn project approvals if the plan does not spark improvements within three years. However, Gold Coast Builders Association President Ron Hyman does not expect the incentives to slash home prices. Rather, he believes that lower impact fees, cheaper water and sewer access, and faster permit and inspection processes would be more effective. Eagles or Bogies? Golf Courses' Development Appeal DwindlesMany developers in Northeast Florida have decided not to include golf courses in their project plans. Davidson Development Inc., for instance, opted against a golf course for its Heritage Landing community in World Golf Village mainly because the development already will have a total of three courses when completed. Says Davidson Development Design Executive Rick Pariani, "When you include a golf course, it drives up the cost of the real estate, and the complexion of the community that evolves around the golf course ends up being much higher-end." Homes in Heritage Landing would have price tags between $300,000 and $500,000 or more if a golf course were built, versus $160,000-$350,000 without a course. Pariani says the company has decided to build a family camp instead, featuring swimming, outdoor sports, multi-function rooms, an outdoor movie screen and a storytelling or campfire ring. This will attract buyers with children, while other golf course communities target retirees. A number of experts believe Northeast Florida has plenty of golf courses to meet the needs of its residents, and LandMar Group COO Roger Postlethwaite insists that 1,000 or more homes are necessary for golf course communities to be successful. Building America: Innovation in Home BuildingBuilding America, a Department of Energy-sponsored public-private partnership, aims to make homes 40%-70% more energy efficient. It proposes to accomplish its goal by assembling teams of architects, builders, engineers, manufacturers, suppliers, planners, lenders and contractors to experiment with energy-efficient designs. The partnership also works to minimize waste; speed up the construction process; boost builder productivity; and test new products. Those involved in the research process monitor the envelope, mechanical systems and energy use, among other factors, to help create more sophisticated building systems. Dimmers Add Ambiance, Cut Electricity CostsHome owners can spend anywhere from $4-$50 on dimmer switches for their kitchens as well as living, dining, powder and family rooms. They allow occupants to control the lighting in each room to create a particular mood, and they also cut light output and electricity bills by controlling the circuit current. There are a variety of styles to choose from — including push dials, touch controls and toggle-and-lever — and they are available in colors that match the walls, windows and floors. The size of the dimmer, meanwhile, should correspond to the total wattage of the light bulb being used in the room. Though dimmer switches can be installed quickly and fairly easily, home owners might want to pay a little more for installation by an electrician to avoid bad connections and potential fire hazards. However, experts warn, home owners should use dimmer switches only for incandescent lighting and never for outlets or appliances. Builders Survey: Raise a CheerAccording to the CIT Construction Industry Forecast, optimism among U.S. construction executives rose 16% in the last year to the highest level since 1999. More than half of the 900 contractors and equipment distributors polled — 62% — expect next year to be an improvement from 2003, and most believe the commercial construction sector will fare better as well. Only 8% of respondents anticipate a worse year. Optimism was highest among contractors in the West South Central region — which encompasses Texas, Oklahoma, Arkansas and Louisiana. Those in the East North Central region including Illinois, Indiana, Michigan, Ohio and Wisconsin were not as confident about the industry's outlook. Restaurant Look Enters the High-End Home KitchenA growing number of home owners are taking advantage of low interest rates to upgrade their kitchens, which are a top priority because they retain value and boost the property's resale potential. High-end appliances are gaining popularity because families are spending more time gathering and entertaining in the kitchen, plus experts say home owners want to showcase their wealth. Wine coolers, $6,000-plus Sub-Zero refrigerators with digital controls, convection ovens, quiet dishwashers, multiple appliances and warming drawers are in high demand among affluent home buyers as are upscale cabinets, sinks and countertops. According to Coppenbarger Homes interior coordinator Josie Myers, many home owners are opting for commercial-grade appliances, while others desire built-in appliances hidden behind the cabinetry. Myers notes that some kitchens even combine the two looks. Hanging Up on Old-Line TelephonesSeveral Milwaukee-based businesses are replacing traditional phone lines with Web-based communications systems. With voice-over Internet Protocol (VOIP) technology, companies can combine voice and data capabilities and similarly handle both voice mail and e-mail messages. Businesses can also install new phones easily and quickly by plugging them into the network system, and they save money on long distance calls by making them over the Internet. "There's a flexibility and increase in productivity that these systems are able to bring," remarks SBC Communications Inc.'s voice data convergence director Marianne Gedeon. The Doorway to a Digital Document StrategyMultifunctional digital copiers, which lately have added such features as scan-once technology, raster image processors and enterprise networking, can create an impressive new document-management solution for companies that take a total-cost-of-ownership approach to their document handling needs. While most companies still think of the devices as a capital expense — it can run from $3,000-$15,000 for an entry-level machine handling 16-33 pages per minute and $20,000-$40,000 for devices handling 40-60 pages per minute — there are also additional savings and productivity gains to be found by using the devices. For example, the copiers can create new value as low-cost, high-quality document scanners, and their networking functions can make them a convenient e-mail portal for sharing hardcopy documents without having to pay associated postage costs. The devices can also convert existing documents from hardcopy to digital format. A downside, however, is the need to reengineer the management processes for the assets and related workflow; it may be a good idea to put the IT department in charge of handling networked multifunctional document devices. The companies that develop an enterprise document strategy into which multifunctional devices can be incorporated are the companies that will see the most benefit from the devices. Proposed Lumber Accord Would Harm Housing ConsumersA proposed quota settlement of the long-standing U.S./Canada softwood lumber dispute now under discussion by the two governments represents a blow to free trade and would harm consumers, housing affordability and millions of workers in lumber-dependent industries, according to the nation’s home builders. Last year, Canadian softwood lumber imports totaled nearly 34% of the U.S. market. Under the proposed accord, Canadian shipments above 31.5% would be subject to a punitive tariff of $200 per 1,000 board feet (or about 65% of the average value), effectively imposing an inflexible ceiling on imports. A typical new home requires about 16,000 board feet of framing lumber. “This plan to subsidize domestic lumber producers by restricting legitimate competition in the marketplace runs contrary to the interests of consumers and the national economy,” said NAHB President-elect Bobby Rayburn. “Artificially capping Canada’s duty-free share of the U.S. market and then charging prohibitive tariffs will limit lumber supplies and raise the cost of this vital building material. It is essentially a hidden tax on American home buyers and consumers.” Rayburn added that the new tax could add thousands of dollars to the cost of a new home, which in turn would bump many borderline home buyers out of the market, and could also greatly increase the cost of home remodeling. With the supply of timber from U.S. public lands restricted for environmental and other policy reasons, and with timber on private lands already being harvested in many areas at rates in excess of sustainable yields, Rayburn noted “it would be impossible to meet the demand for housing without imports. Imports do not replace domestic production. We can’t significantly increase lumber production or lumber mill employment in the U.S. because we don’t have any more trees available.” As a result, Rayburn noted, the number of jobs in the U.S. lumber industry will remain limited by the finite domestic timber supply. However, the duties will have a detrimental impact on the more than 7 million Americans employed in housing and related industries that use softwood lumber and who outnumber U.S. lumber-producing workers by 25 to one. The pact is designed to replace the current system under which Canadian lumber firms are paying an average 27% in across-the-board duties levied by the U.S. Commerce Department. Canada has challenged the legality of the tariffs in cases now pending before the North American Free Trade Agreement (NAFTA) and the World Trade Organization (WTO). Initial rulings by the NAFTA and WTO appeals panels found that the duties were improperly imposed by the U.S. government. “With regard to the lumber trade dispute, Canada has already scored important successes before the WTO and NAFTA. Rather than agree to a deeply flawed quota deal that would harm Canadian interests and the millions of American consumers who rely on a steady supply of softwood lumber, Ottawa’s best chance to roll back the tariffs once and for all is to pursue its legal challenges through to their conclusion,” said Rayburn. Housing SnapshotMortgage interest rates continue bobbing up and down around the 6% mark, and last week 30-year, fixed rate loans fell to 5.88% and ARMs remained at a comfortable 3.77% for the third week in a row. Freddie Mac Chief Economist Frank Nothaft is predicting that the annual rate for mortgages this year will be at its lowest level in the 32-year history of the Freddie interest rate survey, and he does not expect mortgage financing to get much more expensive in 2004. General economic news was favorable last week: the Dow broke the 10,000 mark last Thursday for the first time in 18 months and the Federal Reserve indicated that it has no intention of increasing interest rates for "a considerable period." Framing lumber was down a bit to $326 per 1,000 board feet, but far bigger news came from the ongoing unraveling of price hikes for plywood and oriented strand board. According to Random Lengths, 15/32-inch 3-ply CDX Southern Westside plywood fell last week from $360 to $260 per 1,000 square feet and OSB declined from $325 to $220. Mortgage Interest Rates30 Year Fixed Rate: 5.88\% Housing Starts: Oct. 2003Total: 1.96 million\% New Home Sales: Oct. 2003 *1.105 million Existing Home Sales: Oct. 2003 *6.35 million * Seasonally Adjusted Annual Rate 2003 – A Year to RememberWhen we work together, there’s no end to what we can achieve on behalf of NAHB’s grassroots members and the families across this country who regard the opportunity to rent or own a decent home as one of their top priorities. As we approach the end of an amazingly successful year for America’s housing industry and this association, I want to briefly review our efforts and our accomplishments in 2003 so that we can celebrate our victories, mark our progress on ongoing housing priorities and redouble our efforts in the year ahead to meeting challenges that remain unresolved. Once again NAHB responded and refuted naysayers in the media and academic circles who were predicting a collapse in real estate values and a subsequent decline in housing production. Not only did housing values hold their own but home builders for the third consecutive year led the economy forward to higher ground in 2003. Mortgage interest rates declined to their lowest level in almost half a century in early summer, and by year’s end annual new home sales are expected to top the one million threshold for the first time ever and single-family housing starts will exceed 1.45 million units — also an all-time record. Other major highlights included leading the debate against a misbegotten regulatory effort for Fannie Mae and Freddie Mac that would undermine the effectiveness of the best housing finance system in the world; passage of a landmark tax stimulus bill; passage of a major housing bill in the Senate that is expected to be approved by the House; smashing all records (for attendance and exhibit sales) at the 2003 International Builders’ Show in Las Vegas; setting an all-time membership record of 215,000; and adopting the association’s first program-based budgeting system. Here is a recap highlighting NAHB’s activities over the past year:
At the end of 2003, economists at NAHB are predicting that the nation’s home builders can look forward to another good year in 2004, with mortgage rates remaining on the low side and a resurgent economy creating new jobs and prosperity. I am confident that our association is stronger, more resourceful and more responsive to the needs of its members than ever before, and that we stand ready to build on the many outstanding achievements of the year gone by and tackle the challenges that lie ahead as “Together We Build the American Dream.” ‘American Dream Downpayment Act’ to Increase Housing OpportunitiesHouse passage last week of S. 811, the “American Dream Downpayment Act,” will promote housing affordability and increase rental and homeownership opportunities nationwide, according to the nation’s home builders. “This important housing bill will spur badly needed apartment construction in such major markets as Boston, San Francisco, Los Angeles, Chicago and New York,” said NAHB Executive Vice President Jerry Howard. “It will also help tens of thousands of working families to become new home owners.” The bill was passed by the Senate just before the Thanksgiving recess and as this issue of NBN went to press, President Bush was expected to sign it into law on Tuesday, Dec. 16. The Federal Housing Administration (FHA) multifamily mortgage insurance program is a critical source of financing for affordable multifamily rental housing. The legislation will raise the loan limits in high-cost markets, enabling multifamily builders there to use the program to finance affordable rental housing. The measure will boost limits for FHA-insured loans in high-cost areas to 140% above the program’s base limit. The current limit is 110%. For special projects in high-cost areas, the HUD secretary will have the discretion to raise the maximum loan limit to 170% above the base. The bill also authorizes $200 million annually to assist low- and moderate-income home buyers with downpayment and closing costs, providing grants of roughly $5,000 to an estimated 40,000 home buyers annually. The legislation also contains a provision designed to increase the use of the FHA’s hybrid adjustable rate mortgages. These loans have a fixed interest rate for an initial period that is typically three, five, seven or 10 years and then switch over to an adjustable rate; they enable more families to qualify for a home loan because the initial interest rate is lower than the rate on a conventional 30-year, fixed-rate mortgage. “NAHB congratulates the Administration on passage of the 'American Dream Downpayment Act,' which is the centerpiece of its housing agenda this year aimed at helping to achieve the goal of 5.5 million additional minority home owners by the end of the decade,” said Howard. To read the bill in its entirely, click here and enter S. 811 in the box at the upper left. HUD Secretary Martinez Resigns to Run for SenateHUD Secretary Mel Martinez resigned as the nation's 12th secretary of the Department of Housing and Urban Development (HUD) on Dec. 12 to run for a U.S. Senate seat in Florida. NAHB thanked Secretary Martinez for his service and support for housing following his announcement to leave HUD and run for office. "Echoing President Bush's comments, we want to thank Secretary Martinez for his service to his country," said NAHB President Kent Conine.
Make Your Connection With www.nahb.org Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available to you 24 hours a day at www.nahb.org. Just click the "Member Log In" button to get started. If you are a member and need information about NAHB products and services, use the NAHB Staff Contact Directory to look up the direct telephone extensions for NAHB staff experts. Jackson Nominated as Housing and Urban Development SecretaryPresident Bush on Dec. 12 nominated Alphonso Jackson to become the nation’s 13th secretary of the Department of Housing and Urban Development. The nomination was made after Secretary Mel Martinez stepped down from his post last week, reportedly to run for the open U.S. Senate seat in Florida. Jackson has served as HUD deputy secretary for nearly three years, supervising the day-to-day activities of the agency. Previously, he directed the housing agencies for St. Louis, Washington, D.C. and Dallas. “Alphonso Jackson has all the credentials to become an excellent HUD secretary,” said NAHB President Kent Conine. “We look forward to working with Secretary Jackson in the weeks and months ahead.”
Make Your Connection With www.nahb.org Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available to you 24 hours a day at www.nahb.org. Just click the "Member Log In" button to get started. If you are a member and need information about NAHB products and services, use the NAHB Staff Contact Directory to look up the direct telephone extensions for NAHB staff experts. FHA Multifamily Mortgage Insurance Receives Another Reprieve in CongressThanks to a Herculean effort on the part of NAHB and other concerned industry organizations, the House and Senate last week both passed, by unanimous consent, a measure giving the Federal Housing Administration the authority to continue to commit funds through its Multifamily Mortgage Insurance Program. That program’s authority had been set to expire last fall, and Congress had passed interim measures to allow it to continue. But the last of those ran out on Dec. 5 and the agency’s authority to commit funds expired. In just days, NAHB persuaded both houses of Congress to take action to ensure that HUD would have sufficient authority to continue the program until Jan. 31. By that time, the pending HUD appropriation is expected to have passed as part of an Omnibus Appropriations bill, which will allow the program to continue for the remainder of the fiscal year. The program will be back up and running as soon as it receives a final okay from the Office of Management and Budget. Multifamily Leadership Board Conference Call — Jan. 8, 2004 Industry expert Ron Witten, president of Witten Advisors, Dallas, will brief the members and invited guests of the Multifamily Leadership Board on what to expect in the coming months in terms of trends and hot markets. For information on participation, contact Laura Zaner, 800-368-5242 x8563. 2004 NAHB Multifamily Pillars of the Industry Conference & Awards Gala Don’t miss the Multifamily Pillars of the Industry Conference and Awards Gala, the premier educational and networking event of the year for the multifamily industry, in Palm Springs, CA, March 28-30. Explore both the current and future state of the multifamily industry. Click here for more information. NAHB Hits the Target on All of Its FHA Multifamily Legislative GoalsAs this issue of Nation’s Building News went to press, President Bush was poised to sign the "American Dream Downpayment Act" into law — a measure that contains a provision giving FHA the ability to significantly raise mortgage insurance loan limits in high-cost areas This marks the final segment of a four-part strategy to address builder concerns about the FHA Multifamily Mortgage Insurance program. With this latest improvement, the HUD secretary will have the authority to raise the mortgage loan limits in high-cost areas by up to 140% of the program’s base limit (from the current limit of 110%). And on a project-by-project basis in high-cost areas, the HUD secretary will have the discretion to raise the maximum loan limit by up to 170%. This will enable developers to more easily build rental housing in the nation’s most costly markets — areas that tend to be among those most in need of such housing. NAHB’s effort began in the fall of 2001 when it successfully persuaded Congress to raise the FHA Multifamily Mortgage Insurance program’s base loan limits by 25%. Those limits had not been raised since 1992. Last year, Congress agreed to index those limits to inflation, effective Jan. 1, 2003. Those successes are in addition to work by NAHB to help HUD modify the model it was using to set mortgage insurance premiums, which was resulting in unreasonably high premiums for builders. During meetings with HUD, NAHB economists explained the problems and suggested solutions. HUD now incorporates NAHB’s approach to set insurance premiums that are reasonable and accurate.
Multifamily Leadership Board Conference Call — Jan. 8, 2004 Industry expert Ron Witten, president of Witten Advisors, Dallas, will brief the members and invited guests of the Multifamily Leadership Board on what to expect in the coming months in terms of trends and hot markets. For information on participation, contact Laura Zaner, 800-368-5242 x8563. 2004 NAHB Multifamily Pillars of the Industry Conference & Awards Gala Don’t miss the Multifamily Pillars of the Industry Conference and Awards Gala, the premier educational and networking event of the year for the multifamily industry, in Palm Springs, CA, March 28-30. Explore both the current and future state of the multifamily industry. Click here for more information. Managing Property Like a Pro"It was collecting the rent, supervising maintenance and repairs — and sometimes even mopping the floors." That’s what multifamily management used to be, according to David Kuperberg and N. Mike Patellis, authors of "Residential Property Management," a new publication from BuilderBooks. These days, though, say the authors, "each residential property is like a branch office, an independent business center with...goals to meet." That sort of enterprise needs a professional manager, one who’s trained to prepare a budget and understand legal requirements and responsibilities. Beyond that, "the manager needs communication skills, marketing expertise and more," says Kuperberg, himself a RAM (Registered in Apartment Management) and a CPM (Certified Property Manager). This new book will be the textbook for the revised and updated RAM course being piloted this year, according to Patellis, also a RAM and CPM. With the information the two have compiled, students will be able to understand issues and develop the strategies to deal with them in a professional manner. But the book also was designed to serve as a reference for people involved in property management at every level, from the site itself to the corporate office. "There really aren’t any comprehensive property management guides out there that focus only on residential management," says Patellis. "This is a reference you can consult whenever a question arises. It’s indexed, it has a glossary and it’s as complete as we could make it." Residential Property Management includes updated approaches to record-keeping and reporting used by firms that must be accountable not merely to syndicates or shareholders, but to large corporate investors. It includes information on managing condominium communities and co-ops, as well as now-privatized military base housing. It talks about higher-tech methods of communication and when to use them. The authors note that in the RAM textbook they helped write in 1987, they talked about "this new thing — computers — that might transform the workplace." In this edition, computer use by professional managers is a given. "If you’re not using computers, you’re not in this business." The book also addresses the top problem areas — the issues that, if handled badly, can land a company in court or worse. Those include:
Patellis and Kuperberg will be at NAHB’s International Builders' Show to answer questions and to sign their new book. Look for them at the Multifamily Reception on Saturday, Jan. 17; and at the On-Site area Monday, Jan. 19, from 2:30-3:30 p.m. and Tuesday, Jan. 20, from 12:30-1:30 p.m. To view or purchase "Residential Property Management" online from BuilderBooks.com, click here or call 800-223-2665 to order. Multifamily Leadership Board Conference Call — Jan. 8, 2004 Industry expert Ron Witten, president of Witten Advisors, Dallas, will brief the members and invited guests of the Multifamily Leadership Board on what to expect in the coming months in terms of trends and hot markets. For information on participation, contact Laura Zaner, 800-368-5242 x8563. 2004 NAHB Multifamily Pillars of the Industry Conference & Awards Gala Don’t miss the Multifamily Pillars of the Industry Conference and Awards Gala, the premier educational and networking event of the year for the multifamily industry, in Palm Springs, CA, March 28-30. Explore both the current and future state of the multifamily industry. Click here for more information. Protecting Yourself From Fraud: An IntroductionThe first in a series of articles on preventing fraud from affecting your business. Theft doesn’t have to happen with a gun. You can be robbed in broad daylight while you’re out working on a job site, as you sit at your desk talking to a vendor or while you’re on vacation. And you won’t even know it happened until well after the fact — if ever! Through my years of experience as a certified public accountant, certified internal auditor and QuickBooks® ProAdvisor, I have seen a surprisingly high rate of significant internal frauds. I have investigated instances of embezzlement and have studied various documented fraud cases, specifics and fraud warning signals. When I help my clients develop management and cost accounting systems, I typically advise them about implementing basic, cost-effective controls to helpminimize, prevent or detect fraud. When I work with owners of small businesses I normally find that, unless they’ve personally experienced prior theft, they have little or no knowledge about:
Without this information, small business owners (and particularly those in the construction industry) are exceptionally vulnerable to major loss. Fraud is a quiet, insidious form of theft that can rob you, your employees and your family of your financial security and everything you’ve worked for over the years. It is not uncommon for a major fraud to cause a company to fail. And the criminal seldom makes restitution or goes to jail. It’s a darn shame — and it needn’t happen to you. I’ve developed this series of business management articles, which will appear in upcoming issues of Nation's Building News Online, to brief you in the following areas:
I’ll include real-life examples of actual frauds and discuss controls that could have prevented the fraud or detected it in its early stages. A Quiz to Get You Started The following quiz will get you thinking about your areas of risk (answers are at the end of the article). This actually is the first half of the quiz. The second half will be provided in the next article of this series. 1. Most frauds are committed by (choose one):
2. Which of the following scenarios might encourage the bookkeeper for a small company to
3. True or False: The bank will only clear checks that show the name(s) of authorized signers. 4. True or False: The bank checks authorized signatures on checks exceeding $10,000. 5. Your blank checks are stored in a drawer in your bookkeeper’s desk. Without your
1. b. Why? Because they are in a position to do so and the work of trusted employees is 2. a. The bookkeeper controls all accounting activities so there is minimal opportunity to 3. False. Although a sharp teller might catch a bad signature at the teller window, most 4. False. See number 3. Banks may check signatures on a small percentage of checks 5. d. Self-explanatory answer. Banks can require you to notify them of discrepancies within Diane C.O. Gilson, CPA, CIA, is a Certified QuickBooks ProAdvisor and MasterBuilder ProAdvisor, author, trainer and construction accounting coach, as well as a frequent speaker at The International Builders’ Show and The Remodelers’ Show. Her firm, Info Plus Accounting PC/CPA, offers bookkeeping and support services to help construction companies do more accurate and timely job costing and run better management reports. Contact Gilson via e-mail, or call her at 734-544-7620.
'Accounting with QuickBooks Pro®' Available at BuilderBooks.com "Accounting with QuickBooks Pro® for Home Builders and Remodelers," including a CD-ROM with a trial version of QuickBooks Pro®, is available through BuilderBooks.com. From writing payroll checks to generating up-to-date income statements, this book will help you get the maximum benefit from your accounting system. To view or purchase it online, click here or call 800-223-2665 to order. Business management publications available at BuilderBooks.com 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. Search keywords: “Introduction to Business Management.” The NAHB University of Housing offers designation programs for builders and remodelers interested in improving their productivity and profitability. Click here for a list of NAHB designation programs. Make Your Connection With www.nahb.org Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available to you 24 hours a day at www.nahb.org. Just click the "Member Log In" button to get started. If you are a member and need information about NAHB products and services, use the NAHB Staff Contact Directory to look up the direct telephone extensions for NAHB staff experts. Rental Apartments for All Ages Are Competition to Seniors HousingThe National Investment Center for the Seniors Housing & Care Industries (NIC) released research indicating that rental apartments — not “aging in place” — are the seniors housing industry’s biggest competition. The report, "Understanding Seniors Housing Demand, Choices and Behavior: Insights From the AHEAD and HRS Studies," found that seniors who do not move into seniors housing communities do not necessarily remain in their homes. Instead, many often downsize and leave their “roots” by moving to apartments in non-age-qualified communities. Of significance, the NIC report concluded that seniors tend to move into market-rate apartments open to all ages at a greater rate than they move into seniors housing. In addition, it found that age-qualified residents who receive congregate care and assisted living services are substantially less depressed and less lonely than people of the same age renting in all-ages communities. The report also noted that seniors who live in age-qualified housing are happier than those who live in all-ages neighborhoods. “This speaks directly to the quality of the product and will help adult children feel more comfortable in persuading their parents to consider moving into a seniors community,” said Robert G. Kramer, president of the Annapolis, MD-based NIC. The report provides a range of insights for seniors housing owners and operators into the decision-making process, preferences and experiences of seniors when they consider moving to new housing. For example, the report indicated that some seniors typically use part of their assets to supplement their income in order to cover their housing expenses, a finding that NIC has previously reported in other studies, Kramer said. As people age, they typically spend more money than they generate, meaning developers should not use income as the sole qualifier for an individual moving into a retirement community. Developers also need to look at how prospects will be able to monetize their homes and other assets before moving to seniors housing. The report also identified opportune times to attract potential customers. According to NIC, the first opportunity arises when an individual initially moves from his or her all-ages neighborhood home, either from desire or need. The second occurs when that individual, after having made the initial move, is required to move again at a later date due to a need for care. NIC analyzed data from two University of Michigan studies, the Health and Retirement Survey (HRS) and the Asset and Health Dynamics Among the Oldest Old (AHEAD), that reported on more than 22,000 occupants from 13,000 households. The residents were interviewed every two years. Topics included health, living environments, housing expenses and sources of personal income. Margaret Wylde, of Oxford, MS-based ProMatura Group, LLC and a trustee for the NAHB Seniors Housing Council, prepared the report and compiled the data on behalf of NIC. Copies of the new report, "Understanding Seniors Housing Demand, Choices and Behavior: Insights From the AHEAD and HRS Studies," can be purchased for $75 by calling NIC at 410-267-0504 or visiting the publications section of the organization’s Web site.
Learn More About Seniors Housing Through the Seniors Housing Council To learn more about seniors housing, 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 in Chicago from April 14-16. The symposium will focus on the lifestyle component of 50+ seniors housing. Model Merchandising and the Sales Manager: Character CountsDoris Pearlman, MIRM Good sales managers know that successful models generally share two things in common — a focus on buyer character and on comfort. Both are prime factors in garnering the buyer’s attention. Understanding this focus in today’s model home merchandising will facilitate increased sales and profitability. A Matter of Character Whether the product is modest or magnificent, it must convey a sense of character. Below are a few ways to help accomplish that:
Finally, check your attitude — the attitude conveyed by your model homes and by the salespeople staffing them. It’s all part of the branding process you are creating. Remember, you are marketing the character of your company. Color Them Comfortable Design historians note that home interiors mirror the exterior happenings of our nation. Today’s interior trends clearly reflect the uncertainty of our times; balancing post-9/11 uncertainties through careful selection of calm-inspiring, comfort-granting textures and tones. Consider the many ways to say “comfort” in your models. Color. Early in this new millennium, the Color Marketing Group report predicted: “In a dramatic change from the prosperity of the ‘90s, we believe that many consumers will seek safe and secure colors.” Indeed, we are seeing the following trends now:
Lighting. Light is both symbolic of safety and a tool to achieve it. Whether it’s direct, hidden, reflected, up, under, back, track or translucent, fresh lighting solutions are giving added presence to today’s interiors. Light is being used to echo as well as emphasize architectural detail, art and other special features. Classics. Today’s desire for calm and comfort is proving, more than ever, that “new” and “old” can coexist beautifully. Authentic American design is gaining momentum as seen in the proliferation of red, white and blue color schemes and the resurgence of craftsman décor. Textures. Buyers today are big on authenticity, making textures more important than ever. They want real fabrics, such as cotton and linen. They want real surfaces, such as granite, fieldstone and marble. Space. Today’s new homes are being built with greater respect for all family members. Imagination — not high-ticket accessories — is the key to an exceptional environment. The merchandiser must demonstrate the style and function of the home, emphasizing volume, demonstrating function and aiding the buyer in understanding how the space lives. Models need to increase perceived value. Understanding options and upgrade programs and utilizing them means increased perceived value leading to increased profitability (something we all understand). Time. It’s being called “the new currency.” And buyers are spending it more cautiously to assure they receive value. Efficiency is critical. Buyers need room to relax and a place to entertain. Gourmet kitchens and dual appliances such as double dishwashers and washer/dryer combos are a huge draw. Don’t Wait — Anticipate Put your energy into home designs that surprise, delight and demonstrate. Anticipate your buyers’ needs and questions. Everything matters when you’re appealing to buyers. They notice and care about the smallest detail. So think twice — and again for good measure — about your philosophy, interior design and merchandising. Buyers want to be respected, appreciated, nurtured and noticed. When a sales manager gives all-important input into a merchandiser’s efforts, everyone wins.
Twenty Tips for Sales Managers and Marketers
Doris Pearlman, MIRM, is founder of Possibilities for Design, Inc., a nationally recognized interior design and merchandising firm based in Denver. Pearlman is a past recipient of the prestigious “Excellence in Education Award” given by NAHB’s Institute of Residential Marketing. She can be reached at 303-571-0325. This article was originally published in NAHB’s Sales & Marketing Ideas ©2003 magazine. 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. National Green Building Awards Applications Due by Dec. 31Applications for the prestigious 2004 National Green Building Awards sponsored by NAHB are due Dec. 31. Designed to honor outstanding environmentally responsible and resource-efficient construction methods in the housing industry, the National Green Building Awards are open to builders, remodelers, industry professionals, home builders associations and related organizations that demonstrate dedication to, and best practices, in the field of cost-effective, environmentally-friendly construction. Entrants are eligible to compete in one of four categories:
Award winners will be announced at NAHB's National Green Building Conference to be held in Austin, TX, March 14-16. All winners will receive complimentary admission to the 2005 conference and will be featured in NAHB print and electronic publications. Additionally, the recipient of the Outstanding Green Product Award will receive complimentary booth space at the 2005 conference. For complete details about the 2004 National Green Building Awards, including eligibility requirements and an application form, click here. All applications must be postmarked by Dec. 31.
Make Your Connection With www.nahb.org Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available to you 24 hours a day at www.nahb.org. Just click the "Member Log In" button to get started. If you are a member and need information about NAHB products and services, use the NAHB Staff Contact Directory to look up the direct telephone extensions for NAHB staff experts. Market Index Finds Home Remodeling Strong in Third QuarterProfessional remodelers continued to enjoy strong demand for their services in this year’s third quarter, and most expect healthy business activity throughout the next several months, according to results of NAHB’s latest Remodeling Market Index (RMI), which was released on Dec. 11. “Low interest rates, rising home values and strong home sales are definitely contributing to the remodeling fervor among home owners,” said NAHB Remodelors’ Council Chairman Mike Weiss, CGR, a remodeler from Carmel, IN. “In addition, the rebounding economy and rising consumer confidence are fueling substantial optimism among remodelers.” The latest RMI is based on a quarterly survey of 434 professional remodelers, whose answers to a series of questions were assigned numerical values to calculate two separate indexes. The first index gauges current market conditions and is based on remodelers’ reports of major and minor additions and alterations, plus maintenance work and repairs, on both owner- and renter-occupied dwellings. The second index gauges expectations for the near future and is based on remodelers’ reports of their calls for bids, the amount of work committed for the next three months, job backlogs and appointments for proposals. A variety of “special questions” are also asked at the end of the survey to help pinpoint market trends. Both indexes remained virtually unchanged in this year’s third quarter after registering substantial gains in the previous three months. The index gauging current market conditions slipped one-tenth of one point to 53.5, while the index gauging future expectations rose by the same margin to 54.9. However, year-over-year comparisons — which are more appropriate because the RMI is not seasonally adjusted — show substantial gains of 3.7 points for current market conditions and 6.7 points for future expectations. “The year-over-year gains in both indexes hold true for every region across the board, indicating the very broad-based strength of this market,” said NAHB Chief Economist David Seiders. “What’s more, substantial year-over-year gains are apparent for every single component of the future expectations index — including calls for bids and amount of work committed for the next three months for both owner- and renter-occupied dwellings, plus overall job backlogs and appointments for proposals.” The Northeast was the strongest region for professional remodeling in 2003’s third quarter, posting the highest RMI readings for both current market conditions and future expectations. While the Midwest, South and West all posted a slight decline from exceptionally robust RMI readings in the previous quarter, all four regions registered gains from a year earlier. Meanwhile, results of the “special questions” section of the RMI provide valuable insight into the typical general remodeler’s experience in the industry, educational background and company profile. “The vast majority of our members are longtime veterans of their profession who’ve built solid reputations and substantial credentials over the years,” said Weiss. Ninety percent of survey respondents have been in the business for 10 years or more; 59% have at least 20 years experience. About 9% have between five and nine years of experience, while just 1% have been in business for two to four years, and a statistically insignificant number have less than two years’ experience. The typical general remodeler also boasts an impressive educational background. Of those surveyed, 78% either have a college degree or have completed at least some college training Another 10% have earned an advanced degree of some kind. “Another interesting finding is that the operating head of most general remodeling companies is most often a baby boomer,” said Weiss. Fully 57% of those surveyed indicated that the head of their business (whether that person is the respondent or not) is 45-54 years of age. Nineteen percent said the person in charge is 35-44, while 12% said their company head is 55-64 years old, 7% said that person is 65 or older and 6% said he or she is 34 years or younger. Also notable, the number of general remodelers who operate as sole proprietors has declined significantly over the last year and a half. The number of remodelers reporting that they had sole proprietorships declined from 23% in the first quarter of 2002 to only 17% in this year’s third quarter. The most popular type of remodeling company continued to be S Corporations, which accounted for 49% of responses (up slightly from 46% in early 2002). C Corporations accounted for 21% of responses, while just 3% said their companies are partnerships. Senate Confirmation of Federal Housing Finance Board Director ApplaudedThe nation’s home builders last week commended the U.S. Senate for confirming the nomination of Alicia R. Castaneda to serve as a director of the Federal Housing Finance Board (FHFB). “The FHFB regulates the Federal Home Loan Bank System, a key component of the nation’s housing finance framework, and will clearly benefit from Ms. Castaneda’s knowledge of community financing issues,” said NAHB Executive Vice President and CEO Jerry Howard. “With a quarter century of experience in the financial services industry, she is well qualified for this important new post.” Castaneda is currently senior vice president at Bank of America, where she has held positions as a market executive in the International Private Bank Division and as senior vice president and manager for the Treasury Division. She has a vast array of experience in complex financial market transactions, including fixed-income instrument sales and trading, arbitrage management, and funding and liability management.These skills should serve her well in her new role, Howard noted. “We certainly look forward to building a working relationship with Ms. Castaneda, and wish her the best as she undertakes her new responsibilities,” he said. HBI Construction Academy Sees Spectacular RiseIn just two years, the Home Builders Institute's (HBI) Residential Construction Academy (RCA) has made dramatic strides toward bridging a growing skills gap within the home building industry. Teaching the Right Thing The academy is becoming known as a leading developer of educational materials and programs based on national skill training standards that HBI and members of NAHB worked to establish in five construction trades. These guidelines are aimed at closing a disturbing gap between what many trade students are learning and what industry members expect from their entry-level workforce. Standards for carpentry, electrical, plumbing and HVAC have been completed; the final set of standards, for facilities maintenance, will be ready early next year. The Proper Training Resources The Residential Construction Academy Series (RCA Series) sets a new standard for residential construction materials. An HBI partnership with educational publisher Thomson-Delmar Learning resulted in the development of state-of-the-art, cutting-edge resources based on the skills training standards set by the industry. Used largely by high schools and post-secondary schools, the RCA Series offers:
Materials on HVAC, Plumbing and Facilities Maintenance will be added next year. Basic Principles for Construction, a companion text that has just been published, is an introduction to the series covering such areas as careers, the workplace and math and communications skills. RCA Series materials are available through BuilderBooks.com. A Designation for Residential Construction Superintendents The RCA program also includes a Residential Construction Superintendent designation. Geared toward entry-level field superintendents as well as current site personnel, the RCS or Super Series is a set of eight courses on subjects NAHB members identified as critical to a field supervisory job. Offered through state and local home builders associations and at national and regional trade shows, the courses are taught by HBI-approved instructors, many of whom are well-known industry leaders. The eight courses are:
In just one year, more than 1,300 people attended Super Series courses. “This training is crucial to the effectiveness of site superintendents in managing a work-site,” said Bruce Harrell, CEO of HBW Insurance Services, a warranty insurance provider to the home building industry. “Site superintendents are key players in effectively managing risk,” he said. "They are the frontline of defense in your risk management program, as they oversee construction quality and enforce job-site safety procedures. Training is key for this critical role in the home building process." At press time, Super Series courses for 2004 are scheduled at nine locations in Florida, California, Michigan, Georgia and Connecticut. Twenty-six courses are on the roster for the first quarter of the year, with new locations in Virginia and Illinois. For further information, e-mail Steve Kramer at HBI or call him at 800-795-7955 x8925. Final Registration and Housing Deadline for IBS Is Dec. 17This Wednesday, Dec. 17, is the final registration and housing deadline for the International Builders’ Show. If you register before the deadline, you will save substantially on registration fees and be able to breeze right on to the show floor. You will also have access to discounted hotel rates through the NAHB housing block. To beat the crowds and register now, click here. Also, it has just been announced that celebrity journalist Leeza Gibbons will speak at the Special Luncheon during the show. For more information and to order tickets, click here. And tickets are now available for the 2004 Installation Ceremony and Banquet. To purchase tickets, download a ticket order form by clicking here. Learn About the Growing 50+ MarketConvention-goers interested in pursuing housing market opportunities for those who are 55 and older — the fastest growing segment of the industry — can pursue a variety of educational programs and activities at the International Builders’ Show sponsored by the NAHB Seniors Housing Council. Education Fourteen education sessions are covering a wide range of topics, including: tapping into the wants and needs of aging baby boomers; designing, planning and merchandising to active adults; maximizing profits through strategic marketing and planning; and incorporating universal design into homes and communities. Also included are several sessions on the emerging seniors market for multifamily rentals, which many experts believe could be the wave of the future. One session will focus on how leading home builders are using virtual reality to attract the mature market. Times and locations for these programs will be available in the International Builders’ Show program. Times can also be found on the show’s official Web site, by clicking here. Meet the Experts A new addition to this year’s program, in a series of five “Meet the Experts” sessions experienced builders, developers and other industry experts will discuss how all builders, including those who are small and mid-sized, can successfully build active adult communities. Other “Meet the Experts” sessions will look at trade secrets on marketing and selling to seniors; how to design active adult communities; tips on land development; and how to create award-winning seniors multifamily projects. Sessions are included in the Seniors Housing, Multifamily and tecHOMExpo tracks. Click here. Best of Seniors Housing Design Awards Luncheon See the country’s most innovative designs for the mature market at the 2004 Best of Seniors Housing Design Awards Luncheon at noon on Monday, Jan. 19, at Treasure Island at the Mirage. The NAHB Seniors Housing Council will present gold and silver awards to winners in 66 categories, recognizing the country’s premier active adult, service-enriched and seniors multifamily communities. Projects are cited for excellence in community design as well as for community center, common area, interior design, model merchandising and more. Check out the awards boards and meet the 2004 winners. Tickets are $65 per person. Reservations are recommended, but a limited number of tickets will be available at the door. Marketing Breakfast Learn how to create a brand identity for your company that resonates with active adult buyers at the Seniors Housing Council’s annual Marketing Breakfast from 8:30-10 a.m. on Tuesday, Jan. 20. Discover the nuances of marketing to these discriminating consumers, exchange ideas with peers and discuss other key issues related to marketing. The cost is $35 per person, and reservations are recommended. Active Adult Community Tour The Senior Housing Council’s bus tour will feature three of the premier active adult communities in Las Vegas — a hotbed for the 50+ market. See firsthand what the country’s leading builders and developers are doing. This year’s tour will take place from 9 a.m. to 3 p.m. on Wednesday, Jan. 21, departing from the Las Vegas Convention Center. Visit Sun City Anthem and Solera at Anthem, a pair of Del Webb communities within the master-planned community of Anthem, and Siena by Sunrise Colony in nearby Summerlin. Sun City Anthem and Siena feature 18-hole championship golf courses and large clubhouses. Solera is a more intimate age-qualified community with a host of community amenities. The cost for the tour is $75. Reservations are required by Wednesday, Jan. 14. This event is expected to sell out. To make reservations for the awards luncheon, marketing breakfast or community bus tour, call the NAHB Seniors Housing Council at 800-368-5242 x8220. Or click here for a complete schedule of events. For more information on seniors housing and the 50+ market, join the NAHB Seniors Housing Council. E-mail Jeff Jenkins or call him at 800-368-5242 x8292 for more information.
Alternative Construction Methods Take Center StageOn the convention floor, at breakout education sessions and in the New American Home 2004, systems-built housing will be in the spotlight at this year’s International Builders’ Show and convention-goers will be able to find a wealth of information on how significant advancements in technology are providing a major impetus to this part of the industry. A good place to start is the NAHB Building Systems Councils (BSC) booth, located at N-1333. Staff will be on hand to answer questions about the systems-built housing industry and to promote the Systems Builders Council — a new sub-council open to any NAHB builder member interested in learning more about building systems. Genesis Homes The BSC booth is located directly across from Genesis Homes' booth, N-1011. For the fifth consecutive year, Genesis Homes will build a modular home in the convention hall. Assembly on the two-story, 1,944 square-foot home will start at midnight on Thursday, Jan. 15, and be completed in time for the opening of the exhibit hall on Jan. 19. Builders who are interested in improving turn-around time and efficiency won’t want to miss the chance to tour this fully decorated home. The New American Homes Goes the Systems-Built Way
The New American Home 2004 is also constructed from building systems. The home’s basement and two stories of above-grade walls are built with Insulated Concrete Forms (ICFs), while other portions of the home are constructed with concrete masonry units and pre-cast floor planks. Several organizations associated with the BSC’s Concrete Home Building Council were involved in the planning and construction of the house, including the Portland Cement Association, the Precast/Prestressed Concrete Institute and the Southern Nevada Concrete and Aggregates Association. To tour the home, convention-goers can catch a shuttle bus in front of Main Registration Hall C2. Shuttles will depart every 30 minutes on the hour and half-hour during the show. What Systems-Built Housing Can Do For You After visiting the Building Systems Councils booth, Genesis Homes’ exhibit hall model and The New American Home, don’t miss the BSC’s education sessions, which offer practical lessons in systems-built housing. The sessions will cover each of the BSC’s sub-councils: log, modular, panelized and concrete home building. The education schedule is:
Interactive Convention Session Focuses on Frost-Protected Shallow FoundationsConvention-goers who are interested in finding out more about frost-protected shallow foundations should attend an interactive session on Wednesday, Jan. 21, from 1:30-3:00 p.m. in the Ideas Room at the Convention Center, at which two builders will be making presentations and taking questions. Tom Woods has served on many NAHB committees and has built more than 1,500 homes since he started his company in Kansas City in 1974. Sixty of his more recently built homes are on frost-protected shallow foundations (FPSFs). “I figure that with FPSFs, I save $6,000-$7,000 on a 1,300 square foot house — 30%-40% of the foundation cost — and cut 10-12 days out of a 90-day construction schedule,” he said. “They save energy, keep the floor warmer and are great for problem lots.” Look for an article on Woods’ FPSFs in the Journal of Light Construction. Scott Roebuck, senior regional project manager for The Dolben Company, is getting ready to build eight 24-unit garden apartment buildings in Maryland. “It’s a no-brainer for slab construction for apartments,” says Scott. “I can take all that savings and put it into amenities that make our apartments more beautiful and more livable.” FPSFs are now approved in the 2003 International Building Code and 2003 International Residential Code for protecting slabs-on-grade, crawl spaces and walk-out basements of heated, semi-heated and unheated buildings that are:
These applications are fully approved by the International Code Council (ICC) and American Society of Civil Engineers (ASCE). ASCE publishes standard 32-01 Design and Construction of Frost-Protected Shallow Foundations. Other Educational Programs NAHB has been getting the word out in other ways, too. Staff members conducted educational programs for ICC building officials in Rochester, NY, in 2000; at ICC hearings in Cincinnati in 2001, Nashville in 2002, Kansas City in April, 2003, and in August in Annapolis, MD; in October to the New England Building Officials in Amherst, MA, and in November to builders and building officials in Boise, ID. NAHB Web Site The NAHB Web site (NAHB.ORG; search on “Frost” or “FPSF”) contains general information, an introductory slide presentation and an advanced presentation with notes to go with the slides. Download these and give your own presentations. A full-color brochure on designing FPSFs — "Energy-Efficient Resource-Efficient Frost-Protected Shallow Foundations" — can be downloaded and printed. There are links to NOAA climate data tables, how to order ASCE 32-01, research and development, construction examples, additional resources, codes and standards, and more. Coming soon, Structure magazine will publish an article by Jay Crandell, who supervised the research and development of FPSFs at the NAHB Research Center, wrote the Design Guide for FPSFs and organized development of the ASCE standard 32-01. The magazine is a joint publication of the National Council of Structural Engineers Associations (NCSEA), ASCE's Structural Engineering Institute (SEI) and the Council of American Structural Engineers (CASE), and reaches more than 25,000 active structural engineers. For more information, e-mail Dick Morris or call him at 800-368-5242, x8444. Show Activities Focus on Access Mexico and International Housing OpportunitiesThe International Builders’ Show will offer builders, suppliers and other housing industry professionals new opportunities to make valuable contacts and establish critical business connections with Mexico. The Access Mexico Center, located in the International Business Center, will be a hub of information and activity focused on Mexico’s growing housing market. Among the activities taking place at the center:
NAHB has received a Market Development Cooperator Program grant from the U.S. Department of Commerce for the Access Mexico project, which is designed to increase export opportunities in Mexico. The project will utilize a range of activities — including conferences, seminars, trade delegations, educational programs and one-on-one meetings — to expand trade links and business opportunities for NAHB members. For more information about Access Mexico or to sigh up for the One-on-One meetings or the Access Mexico reception, e-mail Matt Monjan or call him at 800-368-5242 x8419. Education Programs A highlight of the international education programs being held during the show is “Mexico’s Housing Market: It’s Investment and Business Opportunities. ”Speakers include: Sebastian Fernandez Cortina, director general of CONAFOVI, Mexico’s National Housing Commission; Miguel Gomez Mont, vice president of CANADEVI, Mexico’s National Association of Home Builders; Manuel Campos, vice president of Su Casita, Mexico’s largest secondary mortgage bank; and Gene Towle, president of Softec. Panelists will provide an overview of the country’s housing industry and how it is evolving to meet growing demand and identify opportunities for trade and investment in Mexico. The program will be held on Tuesday, Jan. 20, from 11:00 a.m. to 12:30 p.m. in N245-247, which is on the second level of the Convention Center. Adding to the full roster of international education programs taking place during the International Builders’ Show are:
Breakfast Honors the NAHB Associate of the YearThe 2003 NAHB Associate of the Year will be named and honored at the Associates’ Awards Breakfast on Tuesday, Jan. 20, from 8:00-10:00 at the Las Vegas Hilton, Ballroom B. This prestigious award recognizes the associate member who has made outstanding contributions at the local, state and national levels to the home building industry and NAHB. Each state association is asked to nominate an associate member for this award. The Associate of the Year and four other top finalists are selected from these nominees and are inducted into NAHB’s Society of Honored Associates at the breakfast. Also honored at the breakfast is the associate member receiving the Bill Polley BUILD-PAC award and the local or state association receiving the NAHB/NOD/Aetna Disability Initiative Award. Sponsors of the breakfast are: Whirlpool Corporation, Dominion Virginia Power, Sears Contract Sales, Dow Chemical USA, HBA of Northern California, 2-10 Home Buyers Warranty, Entergy, the Home Builders Association of South Carolina, Michigan Association of Home Builders, North Carolina HBA, Piedmont Natural Gas, First American Title Insurance Company and HBA of Winston-Salem. Tickets to the breakfast are $35 person ($40 at the door), or $280 for a table of eight. E-mail Betty Thweatt for more information, or call her at 800-368-5242 x8246. Housing Industry Champions to Be Honored at Awards BreakfastA mayor who risked his political career to protect the building industry from NIMBY interests; state legislators who helped pass landmark construction defect legislation; and a building inspector who got a metropolitan area of 11 cities and two states to agree on a building code are among the outstanding public officials who will be honored at the State and Local Government Affairs Recognition Awards breakfast on the first day of the International Builders’ Show. Now in its 13th year, the prestigious awards program recognizes elected and appointed leaders who have expanded housing opportunities and strengthened the home building industry. Seventeen state and local officials will receive awards: “State Officials of the Year” awards in the area of construction defect reform —
“State Officials of the Year” awards in the area of smart growth —
“Local Officials of the Year” awards —
“Building Inspectors of the Year” awards —
In addition to paying tribute to officials, the program also recognizes outstanding government affairs and smart growth initiatives undertaken by NAHB’s state and local associations. The breakfast will be held on Monday, Jan. 19, at 8:00 a.m. at the Las Vegas Hilton, Ballroom F. For information on obtaining tickets, e-mail Laura Dooley or call her at 800-368-5242 x8361. Education Programs Geared to Small Builders and RemodelersSmall builders and remodelers will find valuable information for their businesses at education sessions during the International Builders’ Show. Among the programs:
Locations will be available in the show program. OnSite Area the Place to Find How NAHB Membership Works For YouNAHB OnSite is the place at the International Builders’ Show where members can sample some of the many ways in which they can make membership work for their business throughout the year. If you are not a member, NAHB OnSite is the place to find out how joining through your local builders association can save money, improve your networking opportunities and make your business more successful. Highlights of NAHB OnSite include:
NAHB OnSite is located in the Grand Concourse, Main Entrance to the Convention Center. It is open Monday, Jan. 19, through Wednesday, Jan. 21 from 9:00 a.m.-5:00 p.m. and on Thursday, Jan. 22, from 9:00 a.m.-1:00 p.m. Look for the Big Store at the Big ShowAt the BuilderBooks.com Bookstore in the Grand Concourse, Main Entrance, of the Las Vegas Convention Center, convention-goers will find the biggest selection ever of new books to build their business. You can also pick up a coupon for savings and learn about new products and bestsellers. A few of the products you will find:
The bookstore is open Monday, Jan. 19, through Wednesday, Jan. 21, 8:00 a.m.-6:00 p.m. It is open on Thursday, Jan. 22, from 8:00 a.m.-3:00 p.m. There will also be a BuilderBooks.com display in the South Hall of the Convention Center on the Lower Lobby Level. Education Sessions and Exhibits Geared to Multifamily BuildersFor the first time, a stand-alone “Multifamily Economic and Apartment Forecast” is being presented at the International Builders’ Show. Chief Economist David Seiders and Ron Witten, president of Witten Advisors and a respected industry consultant, will share their forecasts and opinions with builders, developers and managers of multifamily housing from 3:30 p.m.-5:00 p.m. on Monday, Jan. 19. A number of education programs will focus on multifamily issues:
In addition, Dr. David Crowe, NAHB’s senior staff vice president for federal regulatory and housing policy, will explain how multifamily developers can benefit from NAHB’s Local Impact Model. The model can determine the economic benefits of multifamily development and accurately estimate the costs to a particular community. He will introduce the cost side of the model at a special program — “Does Multifamily Housing Pay for Itself? Fight NIMBYism With Facts!” — which will be held in the Multifamily Lounge, N241, 2:00-3:00 p.m. on Wednesday, Jan. 21. Exhibitors on the show floor are being encouraged to bring products used by multifamily builders to the show. Those booths will bear a logo indicating that the exhibitor has such products. Finally, multifamily builders, developers and managers with a concern for the disabled can attend the Associate’s Awards breakfast on Tuesday, Jan. 20, from 8:00-10:00 a.m.at the Las Vegas Hilton Ballroom B to applaud the winner of this year’s Disability Initiative Award. A cash award of $1,000 is given annually by the National Organization on Disability (NOD) to honor an HBA for its outstanding work in expanding the participation of people with disabilities in the life of the community. Tickets to the breakfast are $35 per person ($40 at the door), or $280 for a table of eight. E-mail Betty Thweatt or call her at 800-368-5242 x8246 for more information. Education Session to Highlight Advance of Zero Energy HomeFour builders will discuss their experiences designing and building zero energy homes at an educational session at the International Builders’ Show on Monday, Jan. 19, from 3:30-5:00 p.m. A Zero Energy Home (ZEH) combines state-of-the-art construction and appliances with commercially available renewable energy systems to produce as much energy as they consume annually. The homes that will be discussed were part of a national demonstration program funded by the U.S. Department of Energy through the National Renewable Energy Laboratory (NREL). The program’s goal is to introduce the Zero Energy Home concept into the single-family, new home construction industry. Presenters are: Robb Aldrich of Steven Winter Associates, headquartered in Norwalk, CT; Robert Hammon of ConSol, headquartered in Stockton, CA; Jeff Jacobs of Centex Homes, located in Concord, CA; and John Wesley Miller of The John Wesley Miller Companies, headquartered in Tucson. David Garman, assistant secretary for energy efficiency and renewable energy, U.S. Department of Energy, will moderate the discussion. Resulting from the ZEH initiative, zero energy homes have achieved national attention in the media and among consumers. The concept has been covered in The Christian Science Monitor, Newsday, Builder magazine, Kitchen and Bath Design magazine, Home Energy magazine, Lighting Dimensions magazine, and ECOSTRUCTURE magazine, among others. The Tucson ZEH sold in less than one month. The NAHB Research Center is looking for participants to build ZEH demonstration projects across the country. Eventually, entire ZEH neighborhoods will be built Companies that construct more than 100 homes per year, and manufacturers, utilities, lenders, Realtors®, appraisers and others who are interested in participating in future ZEH projects should e-mail Jeannie Sikora at the NAHB Research Center or call her at 800-638-8556 x6289. For more information on Zero Energy Homes, click here and click here. Walt Disney Imagineering Executive to Keynote EnergyValue Housing AwardBruce Rauhe, a senior technician in the Environment, Materials and Infrastructure Team at Walt Disney Imagineering Research and Development (WDI R&D), will present the keynote speech at the EnergyValue Housing Award (EVHA) Ceremony during the International Buiders’ Show on Jan. 19. The ceremony, which will be held from 7:00-10:00 p.m. in Pavilion 9 of the Las Vegas Hilton, will also include a presentation on this year’s winning practices, and addresses from key industry and government leaders, including David Garman, assistant secretary for energy efficiency and renewable energy at the U.S. Department of Energy. The EVHA program is administered by the NAHB Research Center, and honors home builders who voluntarily incorporate energy efficiency into the design, construction and marketing of new homes. At Walt Disney Imagineering, Rauhe’s team works on a variety of energy and environmental projects with a focus on energy cost mitigation and integrated infrastructure related to Disney’s parks and resorts. In his presentation, he will describe how his team has accomplished a variety of sustainable projects that have contributed to his company’s profitability. Rauhe recently joined WDI R&D after two-and-a-half years as technical director of the Fuel Cell Center at the Houston Advanced Research Center. In this position, he developed and led the demonstration and evaluation of fuel cell systems under real and simulated end-use applications.. One Home at a Time, Mississippi Builder Putting Working Families on the Road to the American DreamA thousand-square-foot, two- or three-bedroom, slab-on-grade ranch house may sound like pretty basic accommodations these days, but for typical working families in small town and rural America, that home can be a virtual palace. In his 33 years in the home building business, incoming NAHB President Bobby Rayburn has applied his talents to providing households with a footing on the lowest rungs of the proverbial housing ladder. So it comes as no surprise that the Jackson, MS, builder has decided to make “Housing America’s Working Families” the association’s top priority in 2004. Rayburn’s focus on helping families negotiate their way toward achievement of the American dream starts with providing decent and affordable rental housing where, hopefully, workers can gather enough financial resources to eventually buy a starter home of their own. With his business partner, Fred Griffin, Rayburn builds both — roughly 50 rental and 50 for-sale homes annually in Mississippi. While affordable housing is a corner of the market fraught with unique challenges that have only grown more difficult over the years, this is where Rayburn has chosen to make his mark in the profession. “Growing up in Mississippi, I saw there was an especially great need for affordable housing in the state’s rural areas,” he says. Branching off from his father’s home building company in Hattiesburg, where he built his first homes in the summer of 1970 after just graduating from the University of Southern Mississippi with a real estate degree, Rayburn learned first-hand how his efforts could transform the lives of ordinary working families by giving them new housing opportunities. It happened in Glendora, which is located in one of the poorest counties in the country and boasts a population of fewer than 250 people “even on a good day.” With two grants of about $400,000 each, one from the city and the second from a non-profit group, Rayburn built 24 three-bedroom, two-bath, one-story rental units in brick veneer fourplexes. The new housing made a big impact in that community, whose residents, Rayburn recalls, were used to living in cardboard shacks with dirt floors and in “old beat-up, run-down” trailers. “The living conditions were horrible,” he said. “The town had no sewers and the water system had been in foreclosure, so the first thing we had to do was figure out how to get it back up to speed so the health department would approve our building plans.” But in the end the effort was well worth it: “We gave them something they weren’t used to seeing — good, safe, sound, decent-quality, affordable housing.” A significant venture into the field of affordable housing, Rayburn also learned that he had inherited the responsibility of providing a basic education for the residents of his new housing. Not much could be taken for granted in the rudimentary lessons he had to arrange for them, which encompassed everything from how to clean the floors to setting the thermostat and maintaining the air conditioning system. The Uphill Struggle for Affordable Housing Over the years, the product Rayburn builds hasn’t fundamentally changed, but the struggle of cobbling together the sources of financing needed to bring housing costs down to a level that modestly paid wage earners can afford has only become more difficult, made worse by the barrage of government regulations that seem to have mushroomed in recent years. Building the homes is actually the easiest part of the affordable housing equation, Rayburn insists. “The secret is in the financing, and being able to get zoning, water and sewers,” he says. “Putting all of the financing pieces together doesn’t happen overnight,” he says. “When you use federal funds, as we do most of the time, you have to clear the 21 different agencies plus the phase-one environmental review, and if we hit any major obstacles, we usually don’t pursue the project on that site, so we change sites and do it all over again. Hopping from locations that form a wide circumference around his home base in Jackson, Rayburn builds about 10 houses in any one place and at any one time so that he can package the financing, which he describes as “critical” for putting a viable deal together. He works with the community to line up HOME funds, which help substantially with the affordability factor. The Affordable Housing Program, into which the Federal Home Loan Bank System is required to put 10% of its net earnings, and the Low Income Housing Tax Credit program also help win the affordable housing battle. “You can put all of these together and make it work,” Rayburn advises. “You need more than one program, especially in areas where you are dealing with such low incomes.” Campaigning for Housing for Workers In the upcoming year’s NAHB campaign on behalf of housing for he nation’s workers, Rayburn will have the opportunity to go knocking on doors in Washington to expound upon many of the problems that he has encountered in his own efforts to expand the ranks of the nation’s home owners. That will invariably take him to the offices of leaders in the Congress, the White House and the regulatory agencies, places where he has already become a familiar figure as the association’s representative on the countervailing duties on Canadian lumber and other weighty issues for the industry. Beyond the Washington Beltway, Rayburn will also be rallying the grassroots membership to the cause of narrowing the divide between America’s housing haves and its have-nots. Local planning commissions, city councils and citizens groups “all play an important role in determining whether we will have the housing that enables workers to continue making a contribution to their communities after the workday ends,” he says. And the local and state home builders associations are strategically well placed to turn the tide against no-growth forces, as has been forcefully demonstrated by the growing success of the association’s comprehensive smart growth initiative. There are few times in its recent history when the housing industry has been as healthy as it is today, observes Rayburn, and that makes this an appropriate time to grapple with the hard affordability issues that are impeding progress for workers who play a vital role in the community. As Rayburn sees the problem: “Many teachers, police officers, fire fighters and all the lower and moderate-income workers who provide basic services on which the community relies simply cannot find a decent place to live within a reasonable distance from their jobs. They are living 50 miles or more away from their jobs, and that is not acceptable. In many markets, the gap between those who can afford a home and those who cannot is widening at an alarming rate, and the availability of affordable rental housing is in short supply.” Eliminating anti-housing land use policies around the country will be a key objective of Rayburn’s attack next year against the forces of “NIMBYism.” “We need to overcome the not-in-my-backyard philosophy that prevails among residents in too many communities in the country that have lost sight of the essential connection between housing and their economic and social well-being,” he says. “We need the entitlements, the zoning, the higher densities and the mixed-use cluster development that can advance housing opportunity.” Rayburn says the stakes are high because he has seen time after time how affordably priced housing can lift the economic horizons for working families, and he notes that housing is crucial to the financial well-being of families and that home equity is the most important component of household wealth. “The appreciation of a home is how most people build wealth in this country,” he says. “Every household deserves the opportunity to pursue the American dream — in the inner cities, where areas are waiting to be revitalized; in older suburban areas where homes are ripe for a face-lift and remodeling; and in the outlying suburbs where land is available and providing for infrastructure is a challenge that needs to be resolved.” Builders Associations Are Good for Business Rayburn has been actively involved over the years in leadership roles for the Greater Hattiesburg Home Builders Association, the HBA of Jackson (where he still serves on the board of directors) and the HBA of Mississippi, as well as NAHB. A firm believer that in numbers there is strength, he advocates harnessing the vast resources of the NAHB federation as the best guarantee of a top national priority for housing. But if they do it for no other reason, Rayburn urges young builders to join their local home builders association for the sake of their business. Rayburn says that he learned about many of the financing programs that have become indispensable to his affordable home building business through NAHB committee meetings and educational programs. Access to the growing bundle of information available on the association’s recently redesigned Web site — www.nahb.org — can be a big help to small businesses, he says. And there is no substitute for the networking opportunities and member-to-member information sharing provided by association meetings and functions, he says. Rayburn says that there is no better way to solve problems than by talking to other builders, and on one of the pivotal concerns for the industry in recent years — shortages of skilled construction workers — he is using his company as a testing ground for an effective and long-lasting solution. At the invitation of Channing Pfeiffer, executive officer of the Tidewater Builders Association, Rayburn reviewed how the builders in Virginia were using Workforce Investment Act dollars from the Department of Labor to provide on-site job training for teenagers and young adults who had dropped out of high school. Impressed by what he saw, working with the Home Builders Institute and other non-profit groups, he has now embarked on a demonstration project in Mississippi that will provide young people with GEDs if they don’t already have one, a construction safety and training program and on-site apprenticeships in carpentry, electrical, HVAC and plumbing skills. Just as he views the families who move into his homes with the expectation that they will eventually be able to climb the housing ladder to reach financial self-sufficiency and affluence, Rayburn has high hopes for his apprentices, envisioning budding careers in the home building industry and a time when they will become contractors in their own right and hire crews of their own. Photos by Herman Farrer Research Center Co-Founder Ralph Johnson Dies
Ralph J. Johnson, one of the founders of the NAHB Research Foundation, Inc. (later renamed the NAHB Research Center), died in Bethesda, MD, on Dec. 11. He was 88. "The home building industry has lost one of its lifelong champions with the passing of Ralph Johnson," said Michael Luzier, president of the NAHB Research Center. "His vision and leadership truly made a difference in the pursuit of more durable and affordable housing in this country." Johnson was the first president of the research center and served in that role until his retirement in 1985. A year later, The Ralph J. Johnson Building, home of the NAHB Research Center, in Upper Marlboro, MD, was dedicated in May 1986 in his honor. Johnson returned to the helm of the NAHB Researach Center as president emeritus for several years in the late 1980s and early 1990s. In the 1990s, Mr. Johnson was named a life member of the NAHB Research Center Board of Directors. He is survived by his sons Ralph Jr. and Stephen; stepchildren Kathleen Flynn, Maureen Delaney, Colleen Flynn , Dr. Sharon Flynn and Lawrence Flynn Jr; and one grandchild.
Make Your Connection With www.nahb.org Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available to you 24 hours a day at www.nahb.org. Just click the "Member Log In" button to get started. If you are a member and need information about NAHB products and services, use the NAHB Staff Contact Directory to look up the direct telephone extensions for NAHB staff experts. Find the Right NAHB Staff Faster Than Ever OnlineIf you’ve ever tried to call a big company and find the one person who can answer your questions, you’ll be glad to know that NAHB has just released a new online Contact Directory on its Web site to replace the former print version. The new directory (www.nahb.org/contact) includes both a Staff Directory and a Subject Directory as well as the names, phone numbers and e-mail addresses for all staff at NAHB. Available only to members, these directories are fully searchable and can be printed for easy reference. The Subject Directory contains more than 700 keywords to help members identify the appropriate staff contact for a particular topic within seconds. In addition to searching by subject, members can also search by name. The online Staff Directory makes it possible to look up staff by first name, last name or department. These options are particularly helpful when you can’t remember a contact’s full name or want to see additional contacts within a department. Members can access either directory by going to www.nahb.org and clicking the NAHB Contact Directories link under Contact Us. You must log in as a member to access the directories. For more information about the NAHB Contact Directories, e-mail Kristine Maphis or call her at 800-368-5242 x8121, or contact any of the staff in the Online Relations department. Both the Staff and Subject Directories are updated daily so staff contact information is always current. Further, both directories can be downloaded for printing. To download a current version, click the green “Download Directory” button and save the file to your desktop.
Make Your Connection With www.nahb.org Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available to you 24 hours a day at www.nahb.org. Just click the "Member Log In" button to get started. Calendar of Events
To view more meetings & events information on the NAHB Web site, click here.
Make Your Connection With www.nahb.org Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available to you 24 hours a day at www.nahb.org. Just click the "Member Log In" button to get started. If you are a member and need information about NAHB products and services, use the NAHB Staff Contact Directory to look up the direct telephone extensions for NAHB staff experts. |