Nation's Building News Online: March 8, 2004

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New Jersey Zero Energy Remodeling Project Points the Way to Gains In Residential Energy Efficiency

An energy-efficient restoration project on run-down structures on a 24-acre Victorian farmstead in Lebanon, NJ, is expected to produce the nation’s first rehabbed zero-energy home, Bill Asdal, president of Asdal and Builders of Chester, NJ, told an audience at the National Building Museum in Washington, D.C. last month.

Asdal’s company is working with the NAHB Research Center through the Department of Energy's Building America Program for Existing Homes to restore a 19th century, two-story, 1,500-square-foot home that will serve as the innkeeper’s residence in a bed and breakfast project. The remodeling research initiative also includes a 4,000-square-foot Victorian home, a garage and a barn.

The project is using readily available renewable energy systems that produce electrical and thermal energy, including photovoltaic roof panels, an active solar hot water collector and geothermal heating and cooling. A map of area wind speeds showed that Bergey wind turbines could also add energy to the grid, Asdal said, although the need to obtain a height variance for the 120-foot tower is a challenge.

“Consistently, we waste wind, we waste sunlight and we waste water,” Asdal said, describing underutilized energy resources that are being tapped for his project.

With the exception of liquid propane for a fireplace, no fossil fuels will be used in the two houses, he said.

The annual net energy use of the smaller test home is now predicted to be zero over the span of a year. Current demands on the system are light, and the building is operating as a residential power plant, metering a negative 185 Kilowatts of power after its first month of operation.

A careful analysis by Research Center engineers of the acquisition and installation costs of the energy-efficient features versus their operation and maintenance costs suggests that there will be a double-digit return on investment for the technology that was selected for the project.

Other technologies from the PATH Technology Inventory that are being used by the project include microprocessor controlled ventilation, air-sealing techniques, blown cellulose insulation and energy-efficient appliances.

As it becomes increasingly difficult to find places to build housing, Asdal predicted that the emphasis on retrofitting the nation’s 116 million existing homes will steadily increase. “The streetscape will look very much the same in 10 years, 50 years or more,” he said, but the homes themselves hold the potential for dramatically improving their energy efficiency.

Good systems and responsible behavior could easily cut in half the costs of operations and maintenance, which are the only costs associated with owning a home that the consumer can control, he said.


2004 National Green Building Conference

The National Green Building Conference, March 14-16 in Austin, TX, explores cutting-edge building technologies and looks at the future of green building in America. The conference includes education and networking opportunities and explores why a growing number of home builders are “going green” by making cost-effective business decisions that also help the environment. Click here for more information.

Building News Coast To Coast

Easy on the Eyes and the Environment

Environmentally friendly features are gaining popularity both among buyers of new homes and owners undertaking remodeling projects, notes Ray Tonjes of NAHB. A total of 13,224 green homes were constructed in 2002 alone, compared to 18,887 built between 1990 and 2001. Unlike conventional dwellings, green structures are more energy-efficient, incorporate recycled materials and have better indoor air. The "greenest" home in Florida, according to the Florida Green Building Coalition, is located in Palm Beach Gardens' new Evergrene development. Its features include permeable pavers that prevent stormwater runoff; barrels that save rainwater for use in the garden; a swimming pool that uses sodium instead of chlorine for cleaning purposes; concrete walls to guard against high winds; expandable attic insulation; and an outdoor compost bin. The home also has a recycled-glass backsplash, bamboo floors, light and faucet sensors, a central vacuum, a tankless hot water heater and dual-flush toilets. These green features account for $75,000 of the home's $400,000-plus price tag, but WCI Chief Executive Al Hoffman Jr. believes the costs will decline as green techniques catch on with more production builders. Demand for green homes has prompted builders in Atlanta to create a green remodeling program, and NAHB plans to release national green building guidelines sometime this year.
Christian Science Monitor (03/03/04) P. 11; Gardner, Marilyn: www.csmonitor.com

Florida Retirement Village Tops List of Top-Selling Communities in U.S.

The Villages — spanning Florida's Lake, Sumter and Marion Counties — recorded the most sales of all master-planned communities in the nation last year, according to Maryland-based Robert Charles Lesser & Co. With a 69% boost in sales to 3,823 in 2003, The Villages pushed Las Vegas' Summerlin development out of first place for the first time in six years. The Florida retirement community has 20,000 homes and 35,000 residents today, but it will encompass 55,000 homes and 100,000 residents on more than 20,000 acres when it is completed in 2014. The dwellings range in price from a little more than $90,000 for a villa to close to $342,000 for a 3,627-square-foot home. Robert Charles Lesser & Co. Marketing Director James Raby notes that almost half of the 20 fastest-selling communities cater to retirees; and all but one of those 20 are located either in Florida, Arizona, Nevada, California or Texas.
Ocala Star-Banner (FL) (03/03/04) Curry, Christopher: www.starbanner.com

San Francisco Rejects Prop. J for Affordable Housing

The San Francisco Chamber of Commerce has rejected the Proposition J initiative that was designed to create more middle-income housing by offering incentives to city developers. The so-called Workforce Housing initiative was backed by Chamber Senior Vice President Roberta Achtenberg, Mayor Gavin Newsom and U.S. Sen. Dianne Feinstein, among others who had hoped the creation of more affordable housing would keep middle-class workers like teachers and firefighters from leaving the city for less costly destinations. However, opponents — including Board of Supervisors President Matt Gonzales and a number of interest groups covering the whole political spectrum — said the proposed housing would not be affordable enough and that the Chamber did not adequately involve community members in the planning. Critics additionally charged that Proposition J's complicated language and proposed changes to the city planning code favored developers rather than neighborhood interests. While supporters of the Workforce Housing initiative plan to continue campaigning, other are suggesting alternative solutions to San Francisco's housing crisis.
San Francisco Chronicle (03/03/04) Hetter, Katia: www.sfgate.com

To Stay: Home Kitchens and Bathrooms Lend Themselves to Warmer Design Innovations

Today's home owners want their kitchens and bathrooms to appear warm and cozy, especially since many of them are spending more time at home with family and friends. Wood cabinets, recessed lighting, tumbled marble backsplashes, taupe and pecan finishes, stainless steel appliances, a mixture of open shelves and various-sized cabinets, and islands are bringing warmth to the kitchen. Also upping the comfort level is the increasingly common absence of dividers between the kitchen and dining room. As for the bathroom, a growing number of home owners are opting for sinks made of vessel bowls dropped into antique bureaus and dressers; granite, marble or Corian countertops; glass showers; and decorative mirrors. Home owners also are trending toward separate bathroom appliances as well as heated, radiant flooring. Lighting improvements are playing a major role in both rooms, meanwhile. For example, large windows with plenty of glass — which bring home owners closer to the outdoors — are gaining in popularity.
Pittsburgh Post-Gazette (03/03/04) P. S6; Taylor, Lynda Guydon: www.post-gazette.com

Hovnanian February Contracts Rise 70 Percent to $485.6 Million

Home builder Hovnanian enjoyed a surge in February business compared to the year-earlier period. The company reported that contracts for the month mushroomed 70% to a value of $485.6 million, while the number of net contracts vaulted 58% to 1,673. The value of home contracts was up 76% in the Southwest, 67% in the West, 58% in the Southeast and 38% in the Northeast.

CBSMarketWatch.com (03/03/04) Kilgore, Tomi: cbs.marketwatch.com

Identity Checker Hopes to Curb Financial Fraud

TransUnion and Acxiom have unveiled a fraud management platform that should help financial services companies crack down on identity theft and other forms of financial deception. The new technology makes use of the multiple reference databases of TransUnion and Acxiom to check the identity of consumers at call centers, Web sites, credit applications and other points of sale. Top officials from the two companies announced the new fraud management platform last week during Acxiom's annual executive symposium. Losses from identity theft grew to $1.5 billion in 2002, according to the Federal Trade Commission, which projects fraud losses to rise to $8.6 billion by 2006.
Inman News Features Online (03/02/04): www.inman.com

Life at the Top

High-rise and mid-rise condominium towers are gaining popularity in Chicago, Dallas, Phoenix and other cities across the country, with many such projects sparking urban redevelopment. These luxury units often are as large as single-family homes, and some boast price tags approaching $10 million. The so-called "vertical lifestyle" encompasses location, design, security, personal service and top-notch amenities. Units in these skyscrapers generally include upscale finishes and materials, breathtaking views, media rooms, studies, family rooms and spacious laundry areas, among other amenities. The towers might also offer 24-hour security, sophisticated monitoring systems, personal elevators, conference rooms, fitness centers, restaurants and concierge services. According to Jamie Marquez of The Landmark in Scottsdale, AZ, "Vertical living draws buyers who want maintenance-free living in a care-free lifestyle, where they can walk to shopping, drop off a request with the concierge, enjoy hotel-like services in their own home, cater a party, make travel arrangements and still 'lock n' leave' on a moment's notice." Buyers range from wealthy young professionals to active baby boomers and retirees who want to live in the city without sacrificing space and amenities.
Unique Homes (03/04) Vol. 33, No. 2, P. 68; McLaughlin, Camilla: www.uniquehomes.com

Home Buyers Show Taste for Kitchen Amenities

An NAHB survey shows that kitchen amenities top the list of features most desired by home buyers. A walk-in pantry was the most popular amenity named in the "Housing Facts, Figures and Trends 2004" survey, with 78% of respondents giving it a high desirability rating. Buyers also indicated a preference for island work areas and wood cabinets in their kitchens; and many said that if such features were not included in the purchase, they would add them within the first year of moving. NAHB reported new-home buyers spending an average of $8,905 to improve their properties, with buyers of resale properties spending an average of $3,766. The poll also noted that the last decade's steady gains in new-home sales reached a record high of over 1 million sold last year, as the national average price for both new and existing residences also continued to rise.
Copley News Service (03/01/04) Woodard, James M.: www.copleynews.com

Urban Redevelopment Hits Real Estate Snag

Urban infill development is gaining popularity as more people relocate closer to downtown districts and as planners seek out strategies to offset suburban sprawl. However, lamented industry experts attending a recent Urban Land Institute forum, infill developers are hindered by a number of factors that prevent them from acquiring and cobbling together separate tracts of land from different owners. Those influences on land assembly include soaring costs, a trim inventory of land, long chains of title, the need for time-consuming zoning revisions in some cases and the stubbornness of some property owners who do not want to give up their land. As a direct result of these factors, explained ULI's Maureen McAvey, "much potentially usable land in close-in areas is bypassed because it is cheaper and easier to build further out." One forum participant, Allan Mallach of the National Housing Institute, cited eminent domain as one solution for facilitating urban redevelopment in older communities. "However," he warned, "local officials must be able to effectively sell what they are doing to their constituencies." While McAvey noted that land assembly is not a popular political agenda, she said the issue demands attention as municipalities mine for new ways to generate revenue and meet fiscal challenges.
Inman News Features Online (03/01/04): www.inman.com

Weigh Pros, Cons of One- Vs. Two-Story Dwellings

Demand is on the rise for new, one-story homes, especially among baby boomers and parents with young children. At the same time, however, new research from NAHB shows that the availability of one-level dwellings in new residential developments is declining. Most of today's new houses — more than 50% — have at least two stories, compared to just 14% in 1970. Despite the dearth of such units, there are still some builders that produce one-level models — particularly in new communities that cater to the preferences of an older clientele. Prospective home buyers should search diligently if they have their heart set on a one-story home; but they should not automatically rule out two-story structures. Not only do these properties generally provide more space, but house-hunters also will discover that many two-story floor plans are designed in such a way to mitigate the hardship of having to climb stairs constantly. For example, buyers of two-story houses can opt for one where the master bedroom suite is located on the first floor — which will prove especially useful for residents who aim to age in place. Many two-story homes also are being designed with the laundry room off the kitchen or near the bedrooms to avoid frequent trips up and down the stairs.
Saint Paul Pioneer Press (02/28/04) P. 6J; Martin, Ellen James: www.pioneerplanet.com

Boom or Bust for Home Market?

Some economists fret that purchase mortgages and refinancing transactions — which have driven the U.S. economic engine in the past three years — may have crested and could be headed for a collapse. Based on a recent poll by global market research firm Ipsos-Insight, however, many Americans are still planning to buy a home, tap into their equity or refinance an existing loan. The company's survey of 1,001 consumers indicated that 12% of respondents intend to purchase a residential property this year — an existing home for 57% and a newly built home for 43%. Moreover, 48% of those who said they would purchase a home in 2004 currently do not own one, making them first-time participants in the owner-occupied market. Even those Americans who own homes and are not planning a new purchase this year appear eager to take advantage of continued attractive borrowing costs, which Ipsos-Insight Senior Vice President Greg Mahon says are expected to remain stable for the next six months.  psos-Insight reports that 7% of poll respondents stated that they have plans to dip into their equity via home equity loans or lines of credit; while 9% said they intend to refinance this year. "While most experts have predicted 2004 home sales will drop off from the all-time record sales seen in 2003, consumer intentions seem to indicate that if there is in fact a sales decrease, it may only be a slight decline," according to Mahon.  "It's important to note that we are expecting, from a historical perspective, 2004 to be a very strong year again for mortgages."
United Press International (02/26/04): www.upi.com

Home View/Basement Blitz

Architects and interior designers say they are seeing more demand for residential basements in markets that previously offered very little support for this amenity. In Manhattan Beach, CA, for example, 90% of the luxury residential projects designed by architect Grant Kirkpatrick of KAA Design Group involves a basement — up from practically zero such projects 10 years ago. Southern California traditionally has ignored basements, since a ground that does not freeze means basements are not needed to properly found a house. Basements also are gaining popularity in Florida, where the high water table has long presented a barrier to basements. However, many home owners are turning instead to "above-ground" versions for their oceanfront properties. Waterfront homes are required to be constructed 17 feet above sea level to prevent flooding. That building approach leaves empty space, which owners are filling with concrete-reinforced storage rooms, bowling alleys and lounges.
Wall Street Journa (02/27/04) P. W12; Reed, Danielle: www.wsj.com

A Hole in the Wall With a Hot Look

Restaurants and hotels were the first to embrace minimalist fireplaces, but home owners now are installing them to complement their contemporary furniture and architecture. The popularity of the loft has fueled the barely-there fireplace trend, and designers are rushing to meet demand. Home owners can opt for fireplaces made of granite, metal and other materials as well as those shaped like diamonds, glass pillars or sculptures. There also are novelty fireplaces that can be built into the floor or hung from the walls.
Wall Street Journal (02/27/04) P. W12; Mechling, Lauren: www.wsj.com

Cybersecurity Concerns Grow for Small Business

Viruses, worms, spying, identity theft and other forms of cyberattacks have moved beyond technology problems that result in wrecked computers, erased hard drives and corrupted data to business problems that involve extortion, stolen information and trade secrets. Without sufficient protections against cyberattacks, businesses stand to lose customers, productivity and their ability to communicate. According to Phoenix-based cybersecurity consultant Cindy Donaldson, "The biggest challenges for small businesses are awareness and financial resources needed to protect themselves." Donaldson recommends a security assessment so companies can pinpoint their specific risks. Threats can range from sophisticated off-site attacks to someone entering the office and stealing equipment, both of which could hurt businesses if passwords, trade secrets and private customer data get into the wrong hands. Security assessments let consultants determine the assets in need of the most protection and help businesses install the necessary safeguards.
Phoenix Business Journal Online (03/01/04) Hernandez, Ruben: www.phoenix.bizjournals.com

For Peace of Mind, the One-Button Backup

Several easy-to-use backup devices for PCs are now available that are designed to prevent the loss of important data files due to damage, loss or corruption.  At the press of a single button, these devices can back up computer data without interfering with regular PC functionality; they can also be programmed to automatically back up data at regular intervals. Models include the Western Digital Media Center With Dual-Option Backup, the Maxtor One-Touch external drive and the Seagate External Hard Drive, which are about the size a large book. Data can be backed up en masse or selectively; users have options at installation about what and how often the data should be replicated. Back-up rates are affected by such factors as U.S.B. connection, computer processing speed and the volume of data to be processed. An alternative type of back-up device is the Mirra Personal Server, a network device that relies on the Linux operating system and uses mirroring technology similar to that used for Web site back ups. All of the above devices range in price from $180-$500 and are available at such stores as Best Buy.
New York Times (02/26/04) P. E5; Fitzgerald, Thomas J.: www.nytimes.com

Vonage Makes Phoning Through the Internet Convenient and Cheap

New Jersey-based Vonage lets broadband users make phone calls over the Internet while using their home phones and retaining their current phone numbers. After purchasing the digital adapter to link their phones and computers, users shell out only $15-$35 per month for a local and long distance plan, voice mail, caller ID, call waiting and other features that cost extra with traditional phone companies. Unlike traditional carriers, Vonage allows users to choose a new phone number with any area code; use their adapter box and service plan from any location; and select "virtual phone numbers" with different area codes so certain incoming calls are considered local. However, there are some drawbacks, including the inability for 911 operators to immediately identify the user's location, the absence of Vonage numbers from the phone book and limited local area codes, among others.
Wall Street Journal (02/26/04) P. B1; Mossberg, Walter S.: www.wsj.com

GAO Report Documents Inconsistencies in How Corps Districts Make Decisions on Wetlands Regulation

A Feb. 27 report by the U.S. General Accounting Office found that the Army Corps of Engineers and the Environmental Protection Agency (EPA) need to resolve inconsistencies in how Corps districts interpret Clean Water Act regulations when asserting their federal regulatory jurisdiction over privately owned waters and wetlands.

The report, “Waters and Wetlands: Corps of Engineers Needs to Evaluate Its District Office Practices in Determining Jurisdiction” (GAO-04-297), documented sufficient differences in how the 16 surveyed Corp districts apply the law that the Corps has acknowledged that a more comprehensive survey of those practices is needed.

“For example,” the report said, “one district generally regulated wetlands located within 200 feet of other jurisdictional waters, while other districts consider the proximity of wetlands to other jurisdictional waters without any reference to a specific linear distance.”

In January of 2003, the Corps and the EPA solicited public comments on whether there was a need to revise regulations defining which waters should be subject to federal jurisdiction. After generating a significant number of comments, including several from the development industry, the agencies announced in December that they would not proceed with a rulemaking. This sparked sharp criticism from NAHB that they had “shirked their responsibilities on wetlands regulations for too long.”

Before 2001, waters or wetlands were usually considered jurisdictional if they were used as habitat by migrating birds. But that rule was struck down by the Supreme Court in the case of Solid Waste Agency of Northern Cook County v. U.S. Army Corps of Engineers. This has forced the Corps to grapple with such less-defined questions in asserting jurisdiction as what "adjacency" means, how far up a "tributary" it can go, and when it can assert jurisdiction over common, roadside "ditches."

“We have known for years that different Corps districts take divergent approaches in making jurisdictional decisions that are of vital importance to home builders, developers and property owners, and the GAO report accurately documents these inconsistencies and the failures of both agencies to provide written guidance to interested parties,” NAHB said in a statement issued on March 4.

“The writing is on the wall,” the statement said. “The EPA and the Corps can no longer hide behind inconsistent verbal guidance and allow the present unpredictable regulatory system to continue. They need to act quickly to provide accurate and fair guidance on how Corps field staff should decide what falls under their jurisdiction and what does not, just as they should have done years ago.”

NAHB has been noting for years that important jurisdictional decisions have varied among Corps districts and even among field staff within the same district. Inconsistency and unpredictability in how much of a site falls under federal regulation can have a significant impact on important business decisions of builders and developers.

The GAO report found that only three of the GAO districts made documentation of their practices available to the public and that the remaining districts generally relied on oral communication to convey those practices to interested parties.

Housing Snapshot

For the third consecutive month, job growth in February continued to dawdle, raising questions about the strength of the U.S. economy despite a recent resurgence in the Gross Domestic Product. Only some 21,000 jobs were created, compared to expectations for 125,000. Economists believe that the monthly pace of job creation will have to quicken to the 200,000 level before the country will see a true job market recovery. For those looking for some more encouraging economic news last week, the residential mortgage market was the place to find it. With mortgage rates remaing unexpectedly low, at roughly the same levels as the week before, refinancings rose to a seven-month high, according to the Mortgage Bankers Association. The lumber price story remained bleak last week, although the rates of the increases continued to slow. Random Lengths reported that framing lumber was up $3 to $392 per 1,000 board feet. The mill price for 15/32-inch 3-ply CDX Southern Westside plywood was stable at $495 per 1,000 square feet, although still soaring over the $240 cost of a year earlier. Oriented strand board was slightly higher for the week, up $3 to $498 and well above last year's cost of $175 per 1,000 square feet.

Mortgage Interest Rates

30 Year Fixed Rate: 5.59\%
15 Year Fixed Rate: 4.88\%
1 Year ARM: 3.47\%

Housing Starts: Jan. 2004

Total: 1.903 million\%
Single Family: 1.537 million\%
Multi Family: 339,000\%

New Home Sales: Jan. 2004 *

1.106 million

Existing Home Sales: Jan. 2004 *

6.04 million

* Seasonally Adjusted Annual Rate

For Working Families, Affordable Housing Is in Short Supply

It has been the best of times and the worst of times for housing in America. It’s been the best of times for the 68% of families — an all-time high — that have achieved the dream of homeownership and the economic benefits that come with it. And it’s been the worst of times for millions of families that struggle to find housing that meets their needs.

While we can take pride in our outstanding homeownership rates, we must remain committed to meeting the housing needs of all Americans. The statistics are staggering. Millions of the nation’s working families spend more than half of their income on housing or live in seriously substandard conditions. These aren’t just statistics. This means that millions of Americans struggle to find an adequate living environment. It means that millions of mothers and fathers must worry about providing adequate shelter for their children.

A recent study by the National Housing Conference (NHC) found that the median income of the nation’s elementary school teachers, police officers, licensed practical nurses, retail salespersons and janitors is well below the amount needed to qualify for a median-priced home in the United States.

Even more telling, families dependent solely on the income of a janitor or retail salesperson pay more than 30% of their income — the upper limit of affordability — for a two-bedroom apartment in the nation’s 60 largest metropolitan areas. And in markets as diverse as Boston, Dallas and West Palm Beach, FL, apartment rents often require more than 30% of household income for two-income families.

The statistics point to a chronic affordability problem. It is absolutely essential that our communities take the steps necessary to ensure an adequate supply of housing that is affordable to working families.

Our cities and towns need housing that is affordable for teachers, police officers, firefighters and other public servants, as well people working in the service and retail industries. These are the people who teach our children, keep our streets safe and provide the services we depend on.

A growing number of working Americans are forced to commute long distances, or they live in housing that simply does not meet their needs. These working people are an important part of the social fabric. A community suffers when the people who provide its essential services go home to another city or town at the end of the workday.

We need four things if we are to solve this problem:

  • First is a strong economy. Working families do best when incomes are rising and jobs are plentiful.
  • Second is financing. We need low interest rates, as well as a strong and dynamic secondary mortgage market.
  • Third are sound land-use and regulatory policies. In many communities, the housing affordability problem is made worse by a shortage of buildable land. The land-supply shortage is often the product of policies such as large-lot zoning and urban growth boundaries that are established by local governments. Restrictions on multifamily housing development also contribute to the problem. And high impact fees and regulatory costs push up the price of housing. Local governments must reform these policies.
  • Fourth, we need more funding for special programs that can help families buy or rent a home that meets their needs. These include a homeownership tax credit, downpayment assistance programs and tax credits that make rents more affordable. These programs make a difference for millions of families on the edge of affordability.

The solutions to our nation’s housing affordability crisis will not come easily. This problem demands the attention of the private sector — builders, developers, lenders, architects, citizen groups — as well as that of government at all levels.

This is a problem we cannot ignore. Our nation’s families deserve real and lasting solutions.

Builders Monitoring Progress of Florida Land Use Amendment

Continuing to make headway in Florida, a petition drive to amend the state’s constitution by putting land use decisions in the hands of voters instead of elected officials is being watched closely by builders who are concerned that it has the potential for stopping residential growth dead in its tracks.

The amendment that no-growth proponents are hoping to put on the November ballot would require voters to approve changes to local comprehensive plans, effectively stripping elected officials of their land planning abilities.

The amendment is being pushed by Florida Hometown Democracy, which counts the Sierra Club of Florida, Floridians for a Sustainable Population and Save Our Wetlands Coalition as its members.

Last year in Palm Beach County alone, there were 1,364 amendments to the general plan. Multiply that by 67, the total number of counties in Florida, and Florida Hometown Democracy's strategy of stopping growth by playing on voter apathy and confusion becomes readily apparent.

As of early February, the coalition had collected more than 30,000 of the 50,000 signatures it needs to send the measure to the Florida Supreme Court for review.  After it receives the court’s approval, the group will need to collect an additional 450,000 signatures to qualify the measure for the ballot. The coalition has hired a signature-gathering firm to help meet both thresholds.

The Florida Home Builders Association (FHBA) is assuming that the proposal will reach the ballot. Given the terrible precedent that would be set by passage of the amendment, NAHB is working with the association on an aggressive campaign to defeat it.

The state association has received a grant from NAHB's State and Local Issues Fund, and NAHB’s State and Local Political Operations team has been retained to help build a statewide grassroots coalition to defeat the measure if it is put on the ballot.

Hometown Democracy's efforts could gain national attention from activist groups and be used as a tool for organizing and turning out the pro-environment vote in the presidential election.

For more information on efforts to defeat this potentially devastating amendment, e-mail NAHB’s Alastair Macaulay or call him at 800-368-5242 x8584.

Florida Builders Return Fire on Attack Against Affordable Housing Trust Fund

Home builders in Florida are up in arms against a proposal by Governor Jeb Bush to eliminate $167 million from the state’s Affordable Housing Trust Fund and plans, reported in the media, to sunset the highly successful program when it comes up for its regular four-year reauthorization.

Last year, lawmakers in Tallahassee siphoned off $126 million from the trust fund, an amount that would have enabled nearly 9,000 working families to become home owners, according to the Florida Home Builders Association (FHBA). This year’s proposal would be to the detriment of an additional 11,000 families.

Since 1992, the trust fund program has provided funding for more than 150,000 working families, seniors and disabled to buy homes. The fund was created by the Sadowski Act, which allocates 20 cents to the fund for every $1,000 spent on real estate.

Identifying the Affordable Housing Trust Fund as one of his association’s top three priorities in the upcoming legislative session, FHBA President Mike Hickman said that ending guaranteed state funding for affordable housing would “make us come back year after year to lobby lawmakers for affordable housing dollars. We cannot tolerate this action. The Affordable Housing Trust Fund is sacred.”

Without the fund, affordable housing would have to compete for state funding with such interests as schools, health care and juvenile justice on a yearly basis, the association says.

The association is urging its members to participate in an e-mail campaign to bring the issue to the attention of the governor, state senators and representatives and local newspapers.

New Web Tools Enable Associations to Share Information on Industry Challenges

A new online clearinghouse provides legislative, regulatory and political information for lobbyists, executive officers and other association staff who are looking for support on various issues they face in their communities.

The clearinghouse has been designed especially for state and local association staff members, and allows associations to share their experiences dealing with a range of challenges.  

The NAHB member-only site, www.NAHB.org/infosource, groups information into eight topic areas:

The site includes a catalog and description of projects that have received funding from NAHB's State & Local Issues Fund over the last five years.

There are currently about 50 items on the site, and the hope is that the content will grow considerably as association staff members from around the country submit information.

Visitors to the site can provide an overview of a local success story, experience, research project, study, etc. by clicking on the "SHARE" button on the site's first page. Files and other uploadable resources also can be added.

For more information on accessing or contributing to the site, e-mail Marie Zenner or call her at 800-368-5242 x8279.

California Study Cites Regulatory Toll on Housing Production

California’s regulatory climate, which “is the most costly, complex and uncertain in the nation,” has led to “chronic underinvestment in residential construction” in the state, with a shortfall of more than 500,000 housing units since 1995, according to a new study.

There is only a 6% probability in California of having a subdivision project approved with no modifications, according to the “California Competitiveness Project,” which was conducted by Bain & Company for the California Business Roundtable. By contrast, in Texas and Arizona, there is nearly a 75% chance of project approvals with no required modifications.

Furthermore, it takes an average of 33 weeks to get project approvals, compared to 16 in Arizona and eight in Texas, the study found.

Nearly 40% of the companies that were interviewed for the project said they were planning to move jobs out of the state, and 100% of the senior executives who were interviewed view the business climate in California unfavorably.

Based on an earlier state report, Sherman D. Harmer, Jr., a San Diego home builder and president of the California Building Industry Association, said that the long-term cumulative housing deficit in the state is actually closer to one million units.

“That lack of supply, coupled with an ever-growing population, is why the median home price has jumped 92% since the early 1990s and why the median-priced home in California, which cost about the same as the national average in the mid-1970s, now costs nearly $200,000 more than the national median-priced home,” said Harmer.

“In addition, the lack of housing supply for our workforce is starting to severely undermine the stability of our economy and jobs,” he said.

Harmer said enacting the study’s recommendations for reform would go a long way toward easing the state’s growing housing affordability crisis. Among those recommendations are:

  • Reforming the environmental regulation process to focus on outcomes as opposed to the process.
  • Studying the feasibility of reengineering the California Environmental Quality Act (CEQA) process so that it serves its original purpose of ensuring that environmental impacts are considered in the planning process, and mitigated where feasible. “Late hits” — CEQA lawsuits after the exhaustive reporting and review process has been completed — should be discouraged, and redundant environmental reviews should be eliminated.
  • A dedicated and consistent source of long-term funding should be developed to invest in building and maintaining the state’s infrastructure, such as transportation, water and power systems.
  • Adequate housing production should be ensured to address the housing shortage.

OSHA Construction eTool Provides Safety Information in English and Spanish

Available in English and Spanish, Construction eTools from the Occupational Safety and Health Administration can help NAHB members educate their employees about safety and health issues.

A full 20% of workplace fatalities involve construction workers, OSHA says, but “construction can be a safe occupation when workers are aware of the hazards, and use an effective Safety and Health program.”

OSHA’s interactive, Web-based Construction eTool can help builders and their employees identify and control the hazards that commonly cause the most construction injuries. Information on this topic has been grouped into four areas: electrical incidents, falls, struck-by and trenching and evacuation.

The section on falls, for example, points out that falls from elevations account for one-third of all construction deaths, and it then follows-up with information on identifying and avoiding the hazards that cause the most fall-related injuries: unprotected sides, wall openings and floor holes; improper scaffold construction; unguarded protruding steel rebars; and misuse of portable ladders.

The eTool also lists several OSHA Construction Standards that address safety and health program elements and topics relevant to developing and maintaining a safety program, along with some regulatory citations applicable to each topic.

To download the Construction eTool in English, click here, and in Spanish, click here. For further information on construction safety issues, e-mail George Middleton at NAHB, or call him at 800-368-5242 x8590.


English and English-Spanish Editions of 'Toolbox Safety Talks' Available Through BuilderBooks.com 

NAHB Toolbox Safety Talks, available through BuilderBooks.com, are designed to supplement your employee safety training program and help you identify those areas where you may need to develop additional safety training for your employees.

Each individual talk is intended to be used as a brief, job site training session of approximately 15 minutes. Each talk includes questions that encourage employees to share their experiences about working safely or accidents that they may have been involved in. Hearing others talk about what has happened to them will make the reality of injuries more apparent, and the safety message much clearer.

The complete Toolbox Safety Talks series and other safety training and OSHA information are available through BuilderBooks.com or by calling 800-223-2665. NAHB Toolbox Safety Talks are available in English and English-Spanish editions.

Safety Publications and Resources Available Through BuilderBooks.com

BuilderBooks.com also offers a variety of safety and OSHA resources, including many bilingual English/Spanish titles. To view or purchase these publications online, click here.

Young Workers Prohibited From Performing Many Construction Tasks

Home builders and other NAHB members who are getting ready to line up teen-aged construction workers for summer jobs need to be aware that there are many tasks that are considered unsafe for youths and prohibited under the federal Fair Labor Standards Act (FLSA).

A recently published brochure from the National Institute for Occupational Safety and Health (NIOSH) — “Safe Work for Youth in Construction” — provides valuable information about preventing injuries and fatalities among young, inexperienced workers.

“Work on a construction site is especially hazardous, the publication cautions. “In fact, the construction industry, which employs less than 3% of all young workers, ranks third in the number of work-related fatalities to youth,” accounting for 14% of all occupational deaths among those under 18.

Among its recommendations, NIOSH says that young workers should receive clear instructions for each and every task; they should be instructed that they can only work on tasks for which they are trained; they should be asked to demonstrate that they understand what they have been told; they should be provided with appropriate and properly sized personal protective equipment; they should have adequate supervision; and they should be made aware of safety issues.

The FLSA specifies 17 jobs that are hazardous and prohibited for youths under 18. Those with particular relevance to the construction industry include:

  • Driving a motor vehicle
  • Operating power-driven woodworking machines, including drills and nail guns
  • Operating forklifts, cranes, hoists or elevators
  • Operating power-driven metal forming, punching and shearing machines
  • Operating power-driven circular saws, band saws and guillotine shears
  • Wrecking, demolition and shipbreaking operations
  • Roofing operations
  • Excavation operations

If certain conditions are met, 16- and 17-year-old apprentices and student learners may be allowed to perform some of these prohibited jobs.

The Occupational Safety and Health Administration last month issued a bulletin reminding employers of the prohibition against young workers operating forklifts and other specified hazardous machines and equipment.

Employers also need to consult state child labor laws. “If the employment falls under federal FLSA jurisdiction, then both federal and state laws apply — and the most restrictive law (whether it is the state of the federal) is followed,” the brochure says.

To download the NIOSH brochure, click here.

For information on federal child labor laws from the Department of Labor, click here. For youth employment information for a specific state, contact your state’s department of labor.

For information about construction safety issues, e-mail George Middleton at NAHB or call 1-800-368-5242 x8590.

Cleaning the Slate: Making a Good Publication Better

By Peter Magnuson
Don't let anyone fool you into thinking that redesigning a major publication such as a magazine or weekly newsletter is a cakewalk. It's hard work — but it often pays off in renewed member interest, increased revenue and, ultimately, a better product. Read on to see how the National Association of Elementary School Principals took its flagship publication from good to great.

A decade is a long time, 10 years to be exact. And in 10 years, a lot can happen. In 10 years, that seedling will be a tree. In 10 years, that tadpole will be a dead frog. In 10 years, my two-year-old daughter will want to wear makeup and low-rider jeans.

Despite the changes that can occur over a 10-year period, the passage of time had little impact on the design of the flagship publication of the National Association of Elementary School Principals (NAESP), Principal magazine. Over the previous decade, the editors had added a few new features and the designers had tweaked the table of contents. But the overall design was pretty much the same.

All of that changed in September 2002 when the magazine unveiled its first completely new design in 10 years.

Starting Over

How did we know it was time for a new design? Well, over the last 10 years our membership demographics had changed, complex work responsibilities had reduced the amount of time our members had to read the magazine and an almost entirely new editorial staff was on board. Since many experts would contend that any one of these reasons could necessitate a redesign, with all three issues, it was clearly time to overhaul our magazine.

While thoughts of redesigning our magazine surfaced from time to time, the potential cost had relegated the project to back-burner status. That is, until our design firm volunteered to give us a new look for free. We couldn't turn down this offer, but we couldn't decide immediately what we wanted to do. Internal discussions ran the gamut — from just asking for new icons to scrapping what we had and starting with a clean slate.

Getting Started

When people hear that you have redesigned your publication, they immediately assume you have a new visual appearance. While that is usually the case, it shouldn't be the only element that gets a makeover. Take a close look at your content, too. Are you delivering what your readers want? Have their needs changed over time? The answers to these questions may surprise you. They shocked us.

We editors were supremely confident that we knew what our readers wanted. They wanted Q-and-A stories; they wanted international news and profiles; they wanted interviews. Boy, were we wrong. And we were lucky we didn't just go with our instincts.

Instead, we began the redesign process by surveying our readers (another task that hadn't been done in nearly a decade). We wanted to know what worked, what didn't, what was read and what was skipped. Initially, we had planned a full-blown readership survey that would be mailed to a randomly selected number of members. We developed and refined approximately 40 questions about such things as article formats, length of time spent with the magazine and favorite departments. But when we looked at the budget, those 40 questions became 20, and the mailing became an e-mailing.

Although we would have liked more in-depth information, the survey results confirmed some of our beliefs and also proved there was a lot we didn't know. We had correctly assumed that our members wanted faster ways to move through the magazine. But we were off in our assumption that they wanted more interviews and Q-and-A articles. What they really wanted were more research-based articles, more resources they could explore and shorter articles written by peers rather than so-called experts. Armed with this knowledge, we began to work on the redesign.

Deciding What You Want

Before our design firm would begin working, our editorial team was charged with two tasks: Decide on content and format.

Nearly two months of discussion followed as we tried to determine what elements we would keep, what we needed to add and what needed to be refocused. Although this was a time-consuming project, it was an excellent exercise. As a result of the discussions and the survey feedback, we deleted one department, refocused another to tie in with NAESP's Web site, changed a couple of department titles to more accurately reflect the content and invited our members to write book reviews.

One of the most valuable outcomes of our content discussions was the development of purpose statements for our departments and columns. Now our members know what to expect, and the authors know what and how to write. For example, prior to the redesign, we had a department called "Technology Trends." The only trouble was that we weren't writing about trends. Instead, we were printing literally any article we could get our hands on that dealt with technology. Following our discussions, we renamed the department "Tech Support," with the purpose of providing our members with practical examples of how technology could make their jobs easier. The result? Better articles that our members find more useful.

After we had a good handle on the content, we began to work on the format. For research, we scoured the magazine rack and looked at every magazine we could get hold of — from direct competitors to news magazines to tabloids. We were looking for elements such as cover, photo and sidebar treatments as well as colors, fonts and folios that would help our magazine achieve a distinctive look. While opinions differed among the four people on the editorial staff, we were able to come to a consensus. After meeting for a couple of hours, we agreed on a number of elements and examples we wanted to present to our designers.

Getting It on Paper

About four months into the redesign process, we met with our designers to discuss the magazine’s content and format. Working together, we were able to further refine both the graphic and textural elements that would appear in the "new" magazine.

For the next few months, we critiqued a number of designs. We saw things we liked, things we hated and things we couldn't understand. Our most difficult task was finding an exciting design that incorporated our preferences but that wouldn't overwhelm our somewhat conservative audience. We went back and forth with the designers a number of times before we came up with a design with which everyone felt comfortable.

With the new design, we added photos to the table of contents; reordered the editorial content to provide more full-page, four-color advertising space in the front of the magazine; created a new banner; added cover lines; developed new article templates; and even began using a new font. In addition, we began including brief summaries of the magazine's theme and feature articles to make it faster for our readers to skim through the content.

While we were refining the new look and content of the magazine, we also were busy promoting the redesign. Through the magazine itself, print and electronic newsletters and our Web site, we prepared NAESP members for a new, more inviting publication. Since our launch date was going to be the first issue of the 2002-2003 school year, we wanted our members to watch for it when they returned to school. Our promotional efforts centered on the magazine's enhanced content, its easier-to-navigate format and opportunities for members to share their input on hot topics.

The Unveiling

Nearly a year after we began the redesign process, 29,000 NAESP members received the first new Principal magazine with a wrap cover that included the tagline, "What does a new Principal look like? Turn the page to find out." The positive feedback from our members and the redesign awards the magazine has won are proof that the redesign was a needed and welcomed change. Through the entire process, we were focused on developing an exciting magazine that would enhance its position as NAESP's leading membership benefit. We weren't looking for cheese, nor were we throwing fish. We were just trying to get something done that our members would appreciate.

Peter Magnuson is senior editor of Principal magazine, published by the National Association of Elementary School Principals (NAESP). He can be reached by e-mail or at 703-684-3345.

© Greater Washington Society of Association Executives


'The Best of Sales & Marketing Ideas' Available at BuilderBooks.com

Compiled from the most popular articles in Sales & Marketing Ideas magazine, "The Best of Sales and Marketing Ideas" offers tips, techniques and advice from successful home builders and prominent new-home marketing pros. To view or purchase this publication online, click here, or call 800-223-2665 to order.

BuilderBooks.com also offers a variety of other publications about sales and marketing. To view or purchase these publications online, click here.

Business management publications available at BuilderBooks.com

BuilderBooks.com also offers a variety of 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.

Seniors Symposiums Ensure That Builder Has Information, Insight to Enter 50+ Market

Two NAHB conferences about the 50+ housing market were just the right venue for a St. Louis-based builder to get the information he needed to enter the active adult market — and save himself from heading off in the wrong direction.

Attending the 2002 and 2003 Building for Boomers & Beyond: Seniors Housing Symposiums gave Stephen Dickhut, of American Midwest Development Corp., a better understanding about boomers — the largest generation in U.S. history at 77.5 million — and their diverse housing needs.

Dickhut became interested in the seniors market several years ago when the oldest boomers were first entering their early- to mid-50s “I had read some of the demographics at that time and knew that this was going to be the hot market for the next few decades,” Dickhut said. “If you’re not building for the boomer generation and their senior parents, you’re missing a great opportunity.”

But Dickhut wanted to know more than just demographics and opportunities. He wanted to know as much about what to expect as he could learn. So he joined the NAHB Seniors Housing Council in 2002 and quickly signed up for that year’s seniors housing symposium in Orlando. A year later, he went to Indian Wells, CA, for his second symposium.

“Attending the seniors housing symposiums was one of the smartest moves I’ve made,” Dickhut said. “The education sessions were first-rate. In addition to hearing the latest research and trends, I received practical information from industry experts about how to design and develop an active adult community and how to market and sell to seniors.”

Not only was the information useful, Dickhut was impressed by the speakers. “They didn’t just tell me what I wanted to hear,” Dickhut said. “They were honest and precise about their experiences. As a newcomer to the active adult market, I wanted to hear about all the potential obstacles as well as their secrets to success.” Which is exactly what they talked about.

Dickhut also found the symposiums’ tours — each seniors symposium includes a tour of nearby active adult communities — just as valuable as the speakers’ experiences. Past tours have included stops at award-winning communities from respected builder/developers such as Avatar Communities, Lennar Family of Builders, LINC Housing Corp., Pulte Homes/Del Webb and Shea Homes for Active Adults. And Dickhut got to examine the communities close-up and from a builder’s perspective.

“It’s interesting to see what other builders around the country are doing,” Dickhut said. “I picked up some good ideas that I plan to incorporate into my community.”

With all that information and insight under his belt, Dickhut and American Midwest, a real estate firm specializing in multifamily residential investments, decided to take the plunge. “When we started thinking about an active adult community, our objective was to develop senior rental apartments,” Dickhut said.

They had a parcel of land in the Kansas City area, but apartments didn’t really work on the property, Dickhut explained. So the company changed direction. It recently submitted plans to the area planning and zoning boards and is currently awaiting approval to build an active adult community in the Kansas City area featuring nearly 200 for-sale “cottages” ranging from 1,100 to 1,300 square feet.

Dickhut credits the NAHB Seniors Housing Council and national seniors housing conferences with helping his company make the right decisions when entering the boomer market. “Since we’re doing this for the first time, we needed as much information as possible,” Dickhut said. “The seniors housing symposium was, and continues to be, a tremendous resource for our company ”


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.

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.

Save on Dell® Computers
 
NAHB members, with all types and sizes of business, can save money on purchases of Dell computers and equipment through NAHB's Member Advantage discount program.

Take advantage of the Dell discount by calling 888-577-3355. Be sure to identify yourself as an NAHB member when you order. The discount will be automatically applied and will be reflected on your invoice. The NAHB discount cannot be combined with other Dell discounts or promotions.

To order online and for details on more than a dozen other money-saving Member Advantage discount programs click here, or send a blank e-mail to membersavings@nahb.com.

Go to www.nahb.org to explore the numerous advantages associated with membership in your local, state and national home builders association.

Green Trailblazer Tom Hoyt to Offer Green Tips at Conference

Tom Hoyt, who was awarded the 2001 Professional Achievement Award for his efforts in advancing green building in the residential land development and home building industry by Professional Builder magazine, will be the keynote speaker at NAHB's 2004 National Green Builders’ Conference in Austin, TX, March 14-16.

Hoyt will discuss his success in guiding the core business strategy of McStain Enterprises, which he co-owns with his wife, Caroline, to incorporate green building practices and how other builders can do the same.

McStain Enterprises helped create a number of master-planned communities in the Colorado Front Range. Tom and Caroline have built over 8,000 residential units and multiple commercial buildings that incorporate leading-edge community planning and environmental features. Founded as a small design-oriented custom builder, McStain Enterprises has become a $100 million builder/developer practice.

Hoyt also is a founder of the Boulder Home Builders Association, which later merged with the Home Builders Association of Metropolitan Denver. He currently serves as a trustee for the Colorado Nature Conservancy.

The NAHB conference is being held in the heart of the city that gave birth to the green building movement, and some 500 attendees are expected to be on hand to exchange green building ideas, see the latest in green building products and technologies from 67 exhibitors and participate in educational sessions on green mortgages, green land development, water conservation, trends in green building design and more.

Tours will be available on the first day of the conference, including visits to award-winning infill subdivisions and Austin’s first SMART housing development. The conference is being held at The Hilton Austin Hotel and Convention Center, which is located at 500 East 4th Street in downtown Austin.

For registration information, contact the NAHB University of Housing at 800-368-5242 x8EDU, or click here to download the conference program.

For hotel reservation, call 800-236-1592 or 512-482-8000, or click here to visit the hotel's Web site.


'Building Green in a Black and White World' Available Through BuilderBooks.com

Learn how to begin building green with "Building Green in a Black and White World," available through BuilderBooks.com. With over 30 years in the building industry, author David Johnston, who has seen firsthand the changes in consumer demand for homes that reflect their values and lifestyles, shows how to build green. Learn how green substitutes can improve your bottom line and offer your home buyers greater quality and value. To view or order this publication online, click here, or call 800-223-2665 to order.

'Profit From Building Green: Award Winning Tips to Build Energy Efficient Homes' Available Through BuilderBooks.com

In "Profit From Building Green: Award Winning Tips to Build Energy Efficient Homes," available through BuilderBooks.com, NAHB Research Center green building expert Jeannie Leggett Sikora has combed through hundreds of annual contest entries and talked with past award winners to develop specific examples and tried-and-true techniques to give home builders the inside track to create successful green building practices — from choosing building products through marketing energy efficient houses. To view or order this publication online, click here, or call 800-223-2665 to order.

Save With Green Building Combo

Get these two Green Building titles for one low price from BuilderBooks.com and save. To order this publication offer online, click here, or call 800-223-2665 to order.

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.

Index Finds Condo Market Strong and Hopes Rising for Rental Apartments

The popularity of condominiums continues to surge as conditions in the rental apartment market are finally showing signs of improvement, according to the NAHB Multifamily Market Index (MMI), a quarterly gauge of multifamily market activity and builder confidence.

“Home buyers across the country are realizing that condos can be an ideal choice for people who want to enjoy the financial advantages of homeownership while maintaining the amenity-rich, low-maintenance apartment lifestyle,” said NAHB President Bobby Rayburn. “We expect that the demand for condos will continue to rise, especially in urban areas, and particularly while excellent financing opportunities exist.”

The for-sale component of the MMI climbed to 59.5, up six points from the previous quarter and up eight points from one year earlier. Multifamily builders also expressed confidence that the demand for condos would continue; the index gauging for-sale starts expected over the next six months jumped to 62.0.

The MMI is based on a survey of multifamily developers, owners and managers, whose answers to a series of questions are assigned numerical values in order to calculate separate indices that track both supply and demand. An index value over 50 indicates that more respondents view market conditions as good rather than poor.

Although the rental market remained sluggish in the fourth quarter, with indexes tracking demand below 50 for all classes of apartments, conditions are improving slightly. Demand for Class A apartments was up almost five points to 40.0 on the MMI, and multifamily builders appear optimistic that the next six months will show continued improvement for both market-rate and affordable apartments.

The indexes tracking builder expectations rose dramatically to 58.4, 58.3 and 58.0 respectively for Class A, Class B and Class C apartments. Survey respondents said the volume of calls from prospective renters was up and that 66% of their new units rented within 90 days during the fourth quarter of 2003, compared to 57.9% in the previous quarter.

“Historically, rental apartment demand has been dependent on job growth,” said NAHB Chief Economist David Seiders. “While the recession has been over for a while, we haven’t seen enough job growth to fuel strong rental demand, but with improving economic indicators, we hope to see a turnaround soon.”


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.

Improvements Sought in Low-Income Housing Tax Credit

The nation’s home builders are gearing up to seek changes in the Low-Income Housing Tax Credit (LIHTC) to make it a more effective and efficient program and to increase the amount of affordable housing it produces.

With the goal of deriving the most benefit from the program with the least amount of impact on the federal budget, NAHB Multifamily’s Housing Credit Group (HCG), is seeking the following improvements in the program:

  • Fix tax credit percentages at 4% and 9%, instead of current floating percentages pegged to interest rates
  • Make the 10% carry-forward requirement incontestable once a building is placed in service
  • Allow separate ownership of tax-credit units and market-rate units in mixed-income properties

  • Use the LIHTC’s next-available unit rule instead of the tax-exempt bond rule in program projects financed with tax-exempt bonds

These four proposals, approved as policy by the NAHB Board of Directors at its January meeting in Las Vegas, complement four other program-enhancement proposals NAHB is seeking to implement:

  • Allow new construction and substantial rehabilitation expenditures to be eligible for the 9% tax credit even if they are financed using federally appropriated dollars (this would not apply to tax-exempt bond financing)
  • Allow HOME-assisted properties in high-cost areas to receive the 30% tax credit basis boost available to other developments in those areas
  • Change the name of the program from “Low-Income Housing Tax Credit” to “Affordable Housing Tax Credit”
  • Eliminate the restriction on the use of tax credits for Section 8 Moderate Rehabilitation projects

The Housing Credit Group’s mission is to protect and expand the tax credit program, which it considers to be the nation’s single most important catalyst for affordable housing.

For more information on these proposals, e-mail Greg Brown, or call him at 899-368-5242 x8207.

Liability Insurance Expert Among Speakers at Pillars Conference

Jeff Masters, a litigation partner and co-chair of the Development and Risk Management Practice group at Cox, Castle & Nicholson, LLP, will share strategies for solving today’s liability insurance problems with multifamily builders and developers attending the 2004 Pillars of the Industry Conference in Palm Springs, CA, on March 28-30.

Masters will be bringing with him a list of insurers who are still willing to cover multifamily rental and condominium projects — even in California.

“This is the toughest insurance environment in years,” says Masters. “Insurers are returning to the fundamentals of underwriting, and are scrutinizing prospective insured’s much more critically than before.” Masters will discuss what insurance companies are looking for in potential clients, and what companies need to do to qualify.

Other topics that will be covered include condo marketing, the new demographics, transforming urban areas with multifamily housing and more.

The Pillars Conference will be held at La Quinta Resort and Club.

For more information about the conference, click here.

HUD Web Tool Provides Advice on Energy-Efficient Home Rehabs

Recognizing the enormous potential for energy savings and comfort improvements in the nation’s existing housing stock, the U.S. Department of Housing and Urban Development recently launched the Energy Efficient Rehab Advisor, a Web-based tool designed to help home owners, contractors, architects, facility managers and others to improve residential energy efficiency during renovation and remodeling.

In six clicks the Advisor provides recommendations for cost-effectively increasing the energy efficiency of a typical renovation project in single-family or multifamily housing. These free recommendations are based on the building type, age, location and project.

The Advisor suggests specific actions to get the most value from a typical remodeling project.

Making a few easy improvements, like sealing air leaks when finishing a basement or upgrading to ENERGY STAR® rated appliances with a kitchen remodel, can produce big savings on energy bills, increase comfort and create a quieter, healthier indoor environment, according to HUD.

“Improving housing affordability is a key component of HUD’s mission. The Energy Efficient Rehab Advisor represents one way HUD can help identify energy efficiency improvements and pinpoint cost savings for any remodeling project,” said Mike Blanford, a research engineer with the Office of Policy Development and Research who managed the development of the Advisor.

HUD developed the Advisor in cooperation with the U.S. Department of Energy and the U.S. Environmental Protection Agency. The energy efficiency recommendations are based on ENERGY STAR specifications, where applicable.

The Energy Efficient Rehab Advisor was developed for HUD by D&R International, Ltd. and the New Jersey Institute of Technology.


'Builder's Guide to Cold Climates' and 'Builder's Guide to Mixed Climates' Available at BuilderBooks.com

The "Builder's Guide to Cold Climates" and "Builder's Guide to Mixed Climates," both available from BuilderBooks.com, are concise, graphically-rich manuals that show the best techniques for energy- and resource-efficient residential construction in the colder climate and mixed climate zones of North America. The publications provide comprehensive, completely up-to-date reference for designing, building or remodeling homes that are durable, energy-efficient, healthy, safe and comfortable.

To view or purchase "Builder's Guide to Cold Climates" online, click here. To view or purchase "Builder's Guide to Mixed Climates" online, click here. Or call 800-223-2665 to order either or both publications.

Carpentry Contractor Receives Housing Quality Award

Staying on the leading edge of advances in wood products since it was founded in 1966, Schuck and Sons Construction Co. of Glendale, AZ, received the 2004 Silver National Housing Quality Award in the Trade Contractor division.

Craig Steele, the company’s president and CEO, has been active in the home building industry’s efforts to improve quality for years, most recently serving on the NHQ Program’s Advisory Council. Through the company’s participation in the NHQ Quality Framing Contractor program five years ago, Schuck and Sons began formalizing performance measurements and documenting continuous improvement.

Schuck and Sons managers report that the company’s dedication to quality has resulted in very positive customer feedback. “Many of the builders we work with have welcomed our proactive approach to business,” said Jim Tourek, vice president of customer relations.

At an educational session during January’s International Builders’ Show in Las Vegas, Tourek said that his company rang up $97 million in sales last year, 85% of which included installed services, in I-joists, roof and floor trusses, lumber and plywood and doors and trim.

Tourek discussed several company initiatives that have produced quality results. Among them:

  • Employees attend monthly safety meetings to discuss incidents and training opportunities.
  • Trouble spots are highlighted, and foremen are required to return to the site to correct situations that are not in conformance. Employees have to sign off on problems that have not been resolved.
  • In their inspections of houses and sites, company superintendents use pocket PCs so that they can upload their reports into the main data base. Foremen examine the reports, which help identify areas where additional training is needed.
  • Customers are surveyed twice a year on the quality of materials and labor.

Modeled after the Malcolm Bladrige National Quality Award, the annual NHQ Awards are administered by the NAHB Research Center and Reed Residential Group, publisher of Professional Builder and Professional Remodeler magazines.

Entries are judged by panels of experts who evaluate the role that customer-focused quality plays in construction, business management, sales, design and warranty service.

Participants benefit from the insights they gain from the process of preparing an application for the award and from the feedback they receive from the judges.

“The application process gave us another way to benchmark our successes and shortcomings,” said Tourek.

How to Get That Final Payment

You just finished the job. It looks great. The client says, “the check is in the mail.” Is it really? A week goes by, then two weeks, then Christmas passes, and still no check. The client won’t return your calls. Notices of payment have been returned to sender.

Sound far-fetched? According to the latest Remodeling Market Index (RMI), 56% of professional remodelers say they sometimes have a problem collecting the final payment after completing the job. While not surefire, there are several ways you can avoid this problem.

Communication Is Key

Tony Thompson, president of Remodeling Services Unlimited, Columbia, SC, believes communication can help avoid not receiving payment. “Communication is the key. Put payment terms in writing on the contract and change orders,” says Thompson. “Most of our problems in the past came with not staying on top of changes and communicating them with the customer. When they got the final bill they were surprised because we failed to keep them informed along the way of changes and costs. I can't stress how important clear, constant communication is to a project.”

Rick Montelongo, president of Montelongo Homes & Remodeling, San Antonio, TX, says to avoid any misunderstandings by either party, his company meets with the client after completing a substantial part of the project to discuss a final completion list that both parties sign. “This states that both parties acknowledge that once this list is complete and the job is finished, the final payment will be paid,” says Montelongo. “By documenting and signing a completion list this gives the home owner the opportunity to express any final concerns.”

Create a Credit System

Kathe Ostrom, president, C.N. Ostrom & Son, Inc., in Excelsior, MN, says on top of communicating with her clients on a regular basis, her company also “works” with the client. “I always try to give the client a ‘credit’ for something,” says Ostrom. “It may be as little as $6.30 from an allowance. If there is a larger amount still owing, I will make up a credit, even up to $150 against something that I thought would cost more but we were able to do the job for less. It helps your client think that you are really on their side and looking out for their money.”

Closing Pomp and Circumstance

Don Strong, president of Brothers Strong, Inc. in Houston, says he makes a big deal about turning over the project to the client. “When I call to make the appointment I explain that I will be collecting the final payment and is there anything I need to bring?” says Strong. “I make a big deal about turning over the project, including all paper work. I make it clear that anything else will be a warranty item and they can relax in terms of future issues as we give a two-year warranty.”

Collect it Upfront

Donna Shirey of Shirey Contracting in Issiquah, WA, said her company had a problem collecting the final payment and decided to do something about it. “We now take a percentage of the total estimate as a deposit,” says Shirey.

Shirey says, depending on the size of the job, she will hold a 20% deposit as a part of the final payment. “Our goal is to have a very small final payment amount so the client does not have us over a barrel. There is nothing worse than being held hostage because a client owes us a substantial amount of money when the project is complete.”

Avoid the ‘Toxic’ Client

Finally, learn how to fine-tune your ability to detect and avoid the “toxic” client. Thompson says to watch out for the picky customer. “I usually see this in the very beginning and walk away. Sometimes choosing your customer is important and something you learn to identify. A lot of times it's the picky customer that will stiff you, so if you suspect a picky customer watch out.”

Thompson advises remodelers to make sure the client has achievable expectations. “Make it clear what will be performed and the payment terms,” says Thompson. “If they start off with bad paying habits, beware. This is another sign of a customer that may want to stiff you. Again, if you get in this situation you need to communicate what the payment terms are and what is expected from them.”

Project CRAFT Helping the Local Community in Dallas

After settling into its new home in Dallas last September, the Home Builders Institute's (HBI) Project CRAFT (Community Restitution Apprenticeship-Focused Training) has already begun making a difference in the local community.

Project CRAFT, which offers construction trades training and job placement assistance to adjudicated youth, also has programs in Florida, New Jersey and Tennessee.

The project’s first major undertaking in Dallas was the construction of a 4,500-square-foot addition to the A.M.E. Church in South Dallas. Helping the church’s pastor find a non-profit construction partner, local builder Patrick Shannon of The Shannon Group LLC was referred to Project CRAFT by Habitat for Humanity.

Shannon was more than satisfied with the students and their work. “These are good kids and they are hard workers,” he said.

An industry and community partner with Project CRAFT in Dallas,  the Home Builders Association of Greater Dallas is putting its members who are looking for workers in touch with qualified program graduates. The association also recently featured CRAFT’s first local project on its Web site.

“We are pleased to be a part of this program, because it is a win-win proposition,” said HBA Executive Vice President Bob Morris, BIAE. “Our industry wins with new talent and society wins with a program that provides new opportunities to young people.”

HBI was able to introduce Project CRAFT at the Dallas County Youth Village through a partnership with SER-Jobs for Progress, Work Source for Dallas County and the Dallas County Department of Juvenile Justice.

For more information on Project CRAFT, e-mail John Hattery at HBI or call him at 800-795-7955 x8916.

Vapor Retarder Receives Innovative Technology Award

CertainTeed Corporation's new MemBrain™, a patented smart vapor retarder, has won an Innovative Housing Technology Award in the Energy category from the NAHB Research Center and EH Publishing, the publishers of TecHome Builder, CE Pro and Electronic House.

CertainTeed is a member of the National Council of the Housing Industry — the Supplier 100 of NAHB.

Made of polyamide film, MemBrain allows excess moisture trapped in a wall cavity to escape, changing its permeability from less than one perm at low humidity to more than 20 perms when the relative humidity is high.

"MemBrain allows closed building envelope systems to increase their drying potential with seasonal climatic changes, helping to reduce the risk and liability concerns due to excess moisture in homes and buildings, a growing concern today," says Glenn Singer, manager of building science for CertainTeed's Insulation Group.

In their fourth year, the annual Innovative Housing Technology Awards recognize significant advances by product manufacturers in technology development in the housing industry; they were created to stimulate the development of innovative new products, materials and systems for residential construction that can improve the livability of homes.

Headquartered in Valley Forge, PA, CertainTeed Corporation manufactures building materials, including roofing, siding, insulation, windows and patio doors, fence, decking, railing, foundations and pipe. The company is headquartered in Valley Forge, PA.

CertainTeed is a subsidiary of Saint-Gobain, which is headquartered in Paris.

Jeff Whitebear — The Best Sub Ever?

I don’t normally use real names in this column. But today is different.

Jeff Whitebear owns a small siding company — maybe five employees. He recently did the siding and exterior trim on my house. I’ve worked with, and managed, hundreds of contractors in my career. It could be that Jeff Whitebear is the best of them all.

You wouldn’t guess it by his looks. Jeff comes to work in sweats and rubber boots. His hair is worn long, and shaving is not a priority. Far more important, however, is what he wears on the inside: a friendly smile and an ever-cheerful attitude.

Here is how a siding contractor (not the most glamorous profession) earns the Builder’s Engineer top honors:

  • The Bid. Jeff’s bid was not low. In fact it blew gaping holes in my budget. I explained this to him, and rather than blaming it on the architect or his supplier; or on me for estimating poorly, instead he offered money-saving tips. We negotiated openly and honestly to a price and work scope agreeable to us both. This is called win-win negotiation. In my book, it’s the only kind.

  • Communication. Jeff went to great pains to keep me abreast of timeframe, costs, material status, problems, solutions… everything an owner needs to know. I never had to guess, and more importantly, never did I have to initiate the conversation.
  • Quality. Jeff understands the right mix of perfectionism and production.
  • People Skills. You are human — you know how you like to be treated. Is this how you treat your customers? Regardless of how much or little formal schooling Jeff has had, he is a master at human interaction. He worked cheerfully and tirelessly with my wife and me to ensure a thrilling final product.
  • Change Orders. As issues and problems arose, Jeff discussed each with me prior to doing any extra work or spending money. His change order prices were very reasonable — no gouging, skimming or bid compensating. Talk about thrilled! That is the kind of service that yields referrals.
  • Safety. One of Jeff’s employees thought it was cool to shoot nail gun nails around like bullets. This simply is not tolerable and Jeff warned his crew accordingly. When word got back that the guy kept doing it, he was down the road the next day. No B.S., no messing around.
  • Checking In. Perhaps most important of all, Jeff Whitebear himself was at my site every day. He didn’t necessarily stay there working, but he was absolutely on top of each aspect. As a result, my expectations were exceeded, very few mistakes were made and he finished on time.

The bottom line is this: Jeff Whitebear has the right stuff to be as successful as he wants to be. We can all learn by his excellent example.

Tim K. Garrison, P.E., M.S.C.E., of ConstructionCalc.com has authored a book and several short courses and lectures on topics relevant to builders. Reach Tim at timg@constructioncalc.com.

Nominations Sought for Corletta Affordable Housing Award

Neighborhood Development Collaborative is now accepting nominations for the 2004 “Robert J. Corletta Award for Achievement in Affordable Housing." The award will be presented at NAHB’s spring board meeting in Washington, D.C. in April.

Each year, the nonprofit corporation co-sponsors the award with NAHB Multifamily. Named for one of the Collaborative’s founders and long-time multifamily director for NAHB, the award recognizes developers, builders, property owners, legislators and financial executives for their achievements in providing affordable housing.

Trained as a planner, Corletta held several leadership positions in local government and the private sector. In the mid-1970s, he joined Monsignor Geno Baroni at the National Center for Urban Ethnic Affairs, a leading community advocacy group and technical assistance provider to government and communities. When Baroni left to join HUD, Corletta was named the center’s president. He joined NAHB in the early 1980s.

Nominations — which are not to exceed three pages — must be received by April 1. They can be mailed to: David P. Cole, Chief Operating Officer, Neighborhood Development Collaborative,1610 South 31st Street, No. 136, Temple, TX 76504. Nominations can also be sent by fax to 202-318-0766 or by e-mail.

For further information, call 254-773-7400.

Dallas Does Its Designation Earners Proud

The Home Builders Association of Greater Dallas honored "the best of its best" with a special Professional Designations Month reception Feb. 10. The HBA of Dallas’ members boast 291 designations. NAHB Immediate Past President Kent Conine served as the reception's keynote speaker, calling the association’s education efforts the standard by which all other local builders associations can be measured.

The association currently counts 56 Graduate Master Builders (GMBs) among its membership. They account for half the GMBs in Texas and 17% of those in the entire nation — more GMBs than any other local association.

Greater Dallas also boasts 166 Certified Graduate Builders (CGBs), 72% of the CGBs in the state and 10% nationwide. With only 41 Certified Graduate Associates (CGAs) in the country, 10 are members of the Dallas association. Seven other members are expected to achieve their CGA certification next month.

The HBA also has nine members who are Certified Graduate Remodelors™ (CGRs), another nine who hold their Certified Aging-In-Place Specialist (CAPS) certification and 10 who are Members, Institute of Residential Marketing (MIRM).

"Members of this HBA have been incredibly active in NAHB’s curriculum-based courses over the years," said Conine. "I’m proud to say that during my stint on the leadership ladder here, we completely revamped and updated this association’s old Registered Professional Builder (RPB) program and converted it to the new Certified Graduate Builder program. That CGB program is now one of the nation’s best, and the HBA of Greater Dallas is on the leading edge of professional education for builders and their affiliates."

In 2003 the HBA offered more than 20 courses to over 500 students. Earning a professional designation isn’t "just about having something to hang on the wall when you’re done," Conine said. "It’s about obtaining the resources to manage your business more profitably. It’s about increasing your professional credibility and prestige in a way that demonstrates to peers, clients and employers that you have a track record of industry experience and the dedication to do the job right."

At the reception Conine also presented Education Committee member Eric Graham, CGB, GMB, CGR, CAPS, with a special award recognizing his contribution to the development of the association’s education and certification 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.

Make Housing a Priority in Congress

Members can mark their calendars and sign up for the most important grassroots lobbying event of the year — NAHB’s 2004 Legislative Conference on Wednesday, April 28 in Washington, D.C.

The conference kicks off the NAHB Spring Board of Directors meeting and is your opportunity, along with fellow NAHB members, to:

  • Meet with your senators and representatives on Capitol Hill
  • Lobby on crucial housing legislation
  • Take a stand on issues affecting your bottom line

The daylong event will start with a morning briefing, followed by visits to congressional offices and ending with a reception and feedback session.

For information or assistance in scheduling meetings with your representative or senators, contact an NAHB Congressional Representative at 800-368-5242 x8470.

For information or to register online, visit the Legislative Conference page on the NAHB Web site.


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.

Program Provides Training in Media Interview and Presentation Skills

Local and state home builders associations and their members have an opportunity to learn the latest interviewing and public speaking techniques from media relations professionals through NAHB’s Spokesperson Training Program.

This unique, on-camera training program will be conducted during the upcoming NAHB Spring Board of Directors Meeting in Washington, D.C. Presentation skills will be taught on Wednesday, April 28, and training will focus on interview skills on April 29 and April 30.

The cost of training is $375 per attendee.

NAHB can also help associations coordinate an on-site seminar in their office. The program is conducted at cost to HBAs and taught by two professional media consultants.

The on-site program is $5,000 for the first day and $3,500 for additional days. Each session is limited to 15 participants, and the association is responsible for providing the meeting space and food and beverages.

To register for a 2004 Spokesperson Training seminar, arrange for on-site training or learn more about the program, e-mail Rhonda Brown at NAHB or call her at 800-369-5242 x8061.

Calendar of Events

 DATE

EVENT

LOCATION

March 14-16, 2004

National Green Building Conference

Austin, TX

March 21-23, 2004

2004 Log Home Councils President's Tour 

Bangor, ME

March 28-30, 2004

2004 NAHB Multifamily Pillars of the Industry Conference & Awards

Palm Springs, CA

April 14-16, 2004 

Building for Boomers & Beyond: 2004 Seniors Housing Symposium

Chicago, IL

April 21, 2004

Spring Construction Forecast Conference 

Washington, DC

April 28, 2004

NAHB Legislative Conference 

Washington, DC

April 28-May 2, 2004

NAHB Spring Board of Directors Meeting

Washington, DC 

May 23-25, 2004

2004 Building Systems Councils Plant Tour 

South Bend, IN 

September 29-
October 3, 2004

NAHB Fall Board of Directors Meeting

Columbus, OH

October 7-9, 2004

The Remodelers' Show

Chicago, IL

October 27, 2004

Fall Construction Forecast Conference 

Washington, DC

October 31-
November 3, 2004

Building Systems Councils SHOWCASE

Austin, TX 

November 4-6, 2004 

State & Local Government Affairs Conference 

Biloxi, MS 

November 12-14, 2004 

Custom Builders Symposium 

Indian Wells, CA 

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.