Nation's Building News Online: March 22, 2004Print All Articles Text Version |
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Large Production Home Builder Shows Smaller Builders the Way to Green BuildingSetting an example for smaller builders who have been watching the green home building movement from the sidelines, the more than 600 attendees at NAHB’s annual Green Building Conference in Austin March 14-16 heard from a high production builder how a successful push into the market for resource-efficient, environmentally sensitive homes is yielding rich dividends. Joyce Mason, vice president of marketing for Los Angeles-based Pardee Homes, said that her company’s evolution to becoming a green builder started in 1998 with its participation in ENERGY STAR®. Administered by the Environmental Protection Agency, homes become qualified under the program when they are independently verified to be at least 30% more energy-efficient than homes built to the 1993 national Model Energy Code or 15% more efficient than the state energy code, whichever is more vigorous. Mason said that being able to attach the ENERGY STAR label on a home is a relatively easy way for builders to advertise to consumers that they are offering a product that taps into the advantages of green building, which include energy savings, environmental stewardship, healthy indoor air quality and good design. Pardee is now building all of its homes to the ENERGY STAR standard, she said. The company built 2,300 homes last year and expects to deliver 2,600 homes in 2004. Speaker after speaker at the conference emphasized that there is a wide range of building techniques and technologies that can be used to produce green housing, and Mason indicated that her company is choosing green products that are generally in the mainstream. Because the company releases its finished homes in groups of eight to 15, "We use items that are readily available and that can’t be hard to get,” she said. Products also must have a proven track record and lengthy warranties and local subcontractors need to be knowledgeable about installing them. Mason also advised builders to look at the whole house system and the whole house environment first, and to “know the climate and region that you’re in.” For example, Pardee’s activities tend to be concentrated in markets such as Las Vegas, where there is extreme heat and dryness and water shortages are a specific concern. Pardee stepped up its green building commitment in 2002, with its first “Living Smart” home in San Diego. Buyers are offered three plans that provide premiums in energy savings ranging from 15%-63%. Currently committed to this program are 2,300 homes in three regions and 11 neighborhoods, Mason said, and all of Pardee’s homes may eventually be included. In its marketing, Pardee provides its home buyers with options that fall into three categories, she said:
Mason said that there is enormous potential for advancements in green building in the Sunbelt, which accounts for roughly half of all the new housing in the country. Only about 10% of the homes being built in this region meet minimal energy standards, she said. Nationwide, more than 32,000 homes were built green using local green building program guidelines from 1990-2002. In 2002 alone, more than 13,000 green homes were constructed. There are now 31 successful green building programs in the country, 11 of which are operated by home builders associations in Arizona, California, Colorado, Georgia, Hawaii, Missouri, New York and Washington. Building News Coast To CoastSmart Growthers Expand Interest in Green BuildingAt his keynote address to a recent green building conference held in Atlanta by Southface Energy Institute and the Georgia Environmental Facilities Authority, Urban Land Institute (ULI) Chairman Harry Frampton III told attendees that green construction will soon be "an accepted community building practice." Just as ULI promoted smart growth, Frampton believes the group must now focus its efforts on research and education pertaining to green building and sustainable development — especially if it hopes to gain the support of investors and developers. In response, ULI has created the position of the Charles Fraser Senior Resident Fellow for Sustainable Development — named after Frampton's mentor — and will soon publish a book that upholds green building as a practical business strategy. Frampton's Beaver Creek, CO-based company, East West Partners, embraced green building in response to demand from home buyers, universities and the public sector and support from environmentalists. "I can envision a time when not doing it will be unthinkable," Frampton remarked. Slower Population Growth Could Have Dual ImpactThe nation's population grew by 87% during the last 50 years, but the U.S. Census Bureau anticipates a more modest expansion of 49% by 2050. Fewer new residents could boost the quality of life in terms of more jobs and better wages and benefits. However, population growth helps the economy, props up the housing market, boosts tax revenues and provides greater funding to government-sponsored retirement programs. Many analysts are especially concerned about the impact of slower population growth on Social Security, considering that the number of beneficiaries for every 10 workers is expected to rise from three in 2002 to five in 2050. Some experts believe immigrants could build up the workforce once baby boomers retire and cushion the blow. The Spiritual GardenGardens spotted with religious symbols are gaining popularity among home owners, which landscape designers attribute to post-Sept. 11 spirituality. Home owners are creating so-called "sacred spaces" with stone crosses, Tibetan prayer wheels, statues of Buddha and Catholic saints and gardens full of Biblical plants and flowers. A home owner in Falcon Heights, MN, has gone as far as spending $17,000 on an elaborate stone labyrinth. Though Virgin Mary statues, Japanese reflecting pools and Zen gardens have been part of the landscape for many years, especially among the pious, the trend is now being embraced wholeheartedly by the non-religious. Many are using these spiritual symbols to create a sense of peace or comfort, facilitate meditation or simply unwind after a stressful day at work. California's New Building Standards to Save 500 Megawatts by 2008Residential and commercial builders in California will have to comply with new energy-efficiency standards beginning in Oct. 2005. Among the requirements will be fluorescent lights in permanent fixtures; replacement windows with better glazings; and the inspection and sealing of ducts with installation of new heating, ventilation and air conditioning systems. The California Energy Commission expects the new standards to slash statewide energy demand by over 180 megawatts each year, with energy savings reaching 500 MW by 2008. Developer to Build Modular Community in Punta Gorda, FloridaMSM Land Investments Inc. is erecting the first modular-home development in Punta Gorda, FL, with 93 single-family homes for retirees priced at about $160,000. All of the residences in Rio Villa Lakes will be factory-built and assembled onsite. According to MSM managing partner Ben Maltese, modular homes are not exposed to the elements during the construction process and can survive 135-mph winds. Maltese says Rio Villa will be a "lifestyle" community, complete with a gated entrance, swimming pool and tennis court. Charlotte County Planning Services manager Thomas Cookingham notes that while some modular homes have been built locally by individual lot owners, Rio Villa appears to be the only 100% modular development at this time. Raising the RoofMany Wall Street analysts expect home builder stocks to weaken this year, but Lennar and others have posted first-quarter gains due to continued low interest rates. In fact, Lennar's stock surged 28% from the first quarter of 2003, surpassing UBS's forecast of 15%. Even so, the sector is expected to decline once interest rates rise, demand diminishes and home prices moderate. It is possible that higher interest rates could inflict more damage on other sectors, but analysts will have to wait until rates jump before making assumptions about builders' profitability. Living With NatureConservation communities go beyond golf courses, restaurants and other standard luxury amenities by locating development near preserved forests, marshlands and beachfront. As a means of protecting the natural environment, these developments have open-space and low-density requirements and measures to keep home owners from expanding their dwellings. The most notable conservation communities are Sea Pines in Hilton Head, SC, and Amelia Island Plantation on Amelia Island in Florida. Amelia Island Company Executive Vice President Norman Bray says preserved lands are not subject to development and notes that builders often revamp their building plans to avoid destroying trees. West Bench Area Called Model of Smart GrowthKennecott Land is being praised by Envision Utah for applying the group's "Quality Growth Strategy" to 93,000 acres under development in Salt Lake Valley's west bench area. These smart-growth principles call for open-space preservation and resource conservation in an effort to minimize sprawl. Kennecott's Daybreak development will feature 13,667 homes, 9 million square feet of commercial space and 1,200 acres of parks on a total of 4,200 acres. The community will be "walkable, workable and liveable," according to an advertising slogan. Moreover, the homes will be energy-efficient and feature landscaping and secondary water systems that cut water consumption by 15%. "By building quality housing, protecting open space and creating a pedestrian-friendly transportation plan, they will create quality, timeless communities for Utah families," says Gov. Olene Walker of Kennecott Land. Developers Throw Lavish Parties to Promote Homes That Aren't Yet BuiltAmid fierce competition in the real estate market, some Florida developers are hosting exclusive social events for prospective buyers to generate early interest in projects before they have even entered the construction phase. Hundreds or thousands of guests are chosen as potential buyers and invited to parties that can cost developers anywhere from $25 to $300 per person. The invitation-only events frequently feature food, drinks, entertainment and celebrity guests along with promotional information ranging from information packets to virtual-reality tours of planned housing units. Developers say the parties are a good way to garner publicity and entice buyers in the earliest stages of a project. Beyond the GatewaysFigures from the Census 2000 reveal that 60% of Hispanics living in the United States had changed households between 1995 and 2000 and that 75% lived in just 10 states, including California, Arizona, Florida and Texas. During the five-year period, Hispanics were more likely than any other demographic to move from one county to another within the same state and far less likely to move from state to state. Also, Census figures show that between 1999 and 2001, Hispanics increased their median household incomes to $33,600 from $30,700, marking a faster pace than that experienced by any other subpopulation. When looking for the greatest up-and-coming markets and business opportunities for Hispanics, one should consider Los Angeles, Miami, Houston and New York, with cities like Charlotte and Raleigh-Durham, N.C., Milwaukee, Minneapolis and Portland/Vancouver, Oregon and Washington state also drawing their fair share of interest and relocations. Verizon Wireless Lets You Get Online and Get Out — QuicklyVerizon Wireless offers a wireless data service, BroadbandAccess, that works as well as a cable or digital-subscriber-line connection, but it costs $79.99 per month in the District of Columbia area and is only offered there and in the San Diego area. BroadbandAccess has cellular service coverage and the speed of broadband, but cannot easily replace a cell phone or a broadband connection, since its modem takes adjusting to work in a PC and it has no e-mail accounts or voice phone service. It is easy to use, requiring Verizon's PC Card, and its speed performs as promised. The service is best for people who use Internet access all day for their jobs, yet are mobile, such as real estate agents and consultants. According to analyst Jane Zweig, Verizon could offer the service for a lower price, but without competition it is not likely to do so. Smart Hardware Maintenance StrategiesA small business can lower its total hardware upkeep expenses while maintaining its computer systems at top efficiency by employing a combination of outsourcing repairs and keeping a particular stock of certain parts to cover hardware with high rates of failure. To keep those systems running well, a business needs to have a surplus of spare disk drives and monitors. If there are numerous laptops to keep running, have a couple of "loaner" laptops available in case one breaks down. Reduce the number of manufacturers and hardware configurations employed in the office. Also, reduce the number of operating systems and versions the business is maintaining. Lower the amount of user information on the desktop systems and standardize the system image. If the system is four years or older, get a new one. Consider a more lengthy repair cycle contract with the business' hardware maintenance vendor, and check out the hardware manufacturer's mean time to repair record. On the Road, President Bush Leads Town Meeting Discussion of Homeownership OpportunitiesCiting record homeownership rates and the need for more Americans to own their own homes, particularly minority households, President Bush on March 15 traveled to Ardmore, PA, outside Philadelphia, to discuss the important role that housing plays in communities across the country. “Homeownership in America is at the highest rate ever. It’s a fantastic statement to say that, isn’t it? That means that more people than ever in our history are able to say, ‘I own something. I own my own home,’” Bush said in an informal town hall setting at the Main Line YMCA. (To read the President's remarks in their entirety, click here.) Joining the President on stage were Pearl Cerdan, a brand new home owner, Judy Memberg, a housing counselor, and Scott Cannon, president of the Pennsylvania Builders Association. Discussing his agenda to dismantle the barriers to homeownership and to spur economic growth, Bush cited several NAHB priorities, including the homeownership tax credit, tort reform and association health plans. The Administration’s FY 2005 budget provides $2.5 billion over five years to enact a single-family housing tax credit to increase the supply of affordable single-family homes. A top NAHB legislative priority, tax credit bills S. 198 and S. 875 are pending in the Senate and a counterpart House bill, H.R. 839, has 259 co-sponsors, which represents 59% of the chamber’s 435 members. “I believe Congress ought to pass tax credits to encourage home building in areas that need affordable homes,” Bush said. The legislation would create a tax credit of up to 50% of the cost of building a new home or rehabilitating an existing property in distressed areas. Turning to Cannon, president of Cannon Custom Homes, Bush said, “You can’t live in a home unless you’ve got somebody who is willing to build them. How about tort reform? You could use a little tort reform, couldn’t you?” Cannon responded that it would be desirable to pass legislation that would stem the tide of class-action lawsuits, which force builders to pay more for insurance and ultimately increase housing costs. He also called for regulatory reform to enable builders to develop more affordable communities. Another problem area for small businesses is health care. NAHB has been urging Congress to pass association health plan (AHP) legislation that would reduce health care costs by giving small businesses an alternative to purchasing coverage from a large carrier. H.R. 660, the “Small Business Health Fairness Act,” passed the House last year, but there has been little movement on companion Senate bill S. 545. “Small businesses need to be able to pool their risk with association health care plans, so their employees can have more affordable health care,” said Bush. In June 2002, Bush set a goal of increasing the number of minority home owners by at least 5.5 million families before the end of the decade. Since that time, Census figures estimate an additional 1.53 million minority households have been added to the homeownership roster. Minority groups set a new quarterly homeownership record of 50.6% at the end of last year, surpassing the 50% mark for the first time ever. This compares with a national rate of 68.6% and more than 75% for white households. “We want to close the minority homeownership gap in America. We want more people owning their own home, and we want more of our minorities owning their own home as well. We think it’s in the best interests of the country that more people own something. When you own something you call your own, you have a vital stake in the future of our nation,” Bush said. To read the legislation discussed in this article, click here and enter the bill number in the box at the upper left. Housing SnapshotMortgage interest rates remained low last week, with a slight drop. Freddie Mac economists are now expecting 30-year, fixed-rate loans to average 5.75% for the year, and they are suggesting that home sales will set another record. Concerns about terrorism and turbulence in the Middle East continued to rattle the stock market and losses on Wall Street overshadowed other economic news, including a modest decline in February's housing starts to a more sustainable level. New claims for unemployment declined last week for the third week in a row. Wholesale inflation for January rose to a seasonally adjusted 0.6% in the Producer Price Index, reflecting a surge in energy and some materials prices. Prices for wood products headed down, but Oriented Strand Board and plywood remained at lofty levels. Framing lumber dropped $21 to $371 per 1,000 board feet, Random Lengths reported. The mill price for 15/32-inch 3-ply CDX Southern Westside plywood was $371 per 1,000 square feet, down $20 from the previous week, and OSB was $490, down $8. Mortgage Interest Rates30 Year Fixed Rate: 5.38\% Housing Starts: Feb. 2004Total: 1.855\% 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 SupplyIt 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:
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. It’s Not Easy Building GreenBy Dave Porter What Is Green? Various definitions are creating a problem. There does not seem to be one definition for green construction and, therefore, builders, appraisers, lenders, county officials, trades people, real estate agents (and lest we forget) consumers, all seem to have different perceptions about what it means. To be truly built-green, a project needs to include many components: site selection, design (this is often undervalued, because green construction starts with green design), air quality, durability of construction, natural light use, water conservation (inside and outside the home), natural landscaping, job site waste reduction and recycling, recycled products in construction, alternative building components, energy saving appliances and lighting, energy alternatives (such as solar) and of course, robust insulation. Other considerations include the size of the home and its use of space and impact on the land. The next stages of green include zero net energy homes that can sell energy back to the utilities by producing green power by harnessing such natural elements as the wind and sun. The Green Tower of Babble is another problem. Scores of special interest groups, each with a green message, add to the confusion. Each group wants a bit of your time and a bit of your wallet! Everyone has heard of ENERGY STAR® and that they certify appliances. They also certify homes. But energy savings is only one (albeit very critical) part of the green puzzle. In Washington’s King and Snohomish Counties, the charge is being led by the Master Builders’ “Built Green Program” and in Portland, OR, it’s the “Earth Advantage” program. These programs advocate current green components and the willingness to incorporate smart ideas from other groups (a kind of sub-branding of products, techniques and standards, like incorporating ENERGY STAR appliances and their practices.) Building an authoritative and clear educational program about green building is paramount for all concerned. Green Can Be Costly. This is perhaps one of the biggest consumer concerns and often the biggest myth. Some of the added costs for a green-built house are real, but many are not. Paying for upgraded appliances, insulation, HERS (Home Energy Rating System) testing — all add up. HERS testing is important because it validates that a home is indeed energy efficient, but requiring every similar home to be tested layers costs. A compromise on verification is needed to insure quality but manage cost impacts. For some, this will still work against home affordability. On the other hand, some buyers are willing to pay more than we’d expect. They know they will save on utility costs and there is a quality-of-life factor. In a study conducted by David Johnston, “The State of Green Building 2001,” buyers said that they were prepared to spend more on green features than builders expected, an indication that the builders were probably leaving profits on the table. Industry partners are also an important cost-saving resource. They can help with marketing and in some cases financial incentives for consumers. Lenders such as Countrywide Home Loans are offering, in targeted areas, closing cost reductions when buyers buy built-green homes. Token greening (a.k.a. "green washing") can be another major issue when dealing with green construction. Some builders will throw down carpet from recycled plastic bottles and slap up a recycled product logo on the kitchen counters. Consumers will see through the "green wash" very quickly. Buyers see the value of healthy living and durability of construction and they are more environmentally educated than any other generation. Government Forced Green Is Not the Solution. As counties and cities increasingly begin to see that there is a benefit to green building, it needs to be emphasized that encouraging green is a far more productive approach than controlling green. It’s too early in the green revolution for cities and counties to mandate green building standards. Let the Green Built or Earth Advantage (or similar) programs have a chance to succeed. If consumers drive the market demand for green, then builders will see the advantage in attracting purchasers, while realizing the profit potentials from green. Regulators (“sticks”) requiring green can lead to adversity for both builders and their customers. Collaboration, on the other hand, creates a synergy that produces stellar results. The private sector can “own” and promote green. Cities and counties should challenge builders and developers to increase their output of built-green homes. If builders don’t embrace the cause over a reasonable period of time (say two to five years), then perhaps some formal ordinances might be appropriate. A great example of how the private sector is stepping up to the plate is a new alliance between the City of Issaquah and Port Blakely Communities. They are partnering in establishing ways to create green communities. It’s a promising collaboration. Builders in Issaquah Highlands will be green builders. They are planning for all of the builders going forward in that development to build to a three-star, built-green standard. This effort will incluce a turbo-charged, built-green demonstration home. In the definition of green at the beginning of this article, the individual home site was listed as a piece to building green. In the Issaquah Highlands instance, it’s exciting that the entire development will be green. The challenge is there for home builders both large and small as well as the industry at large to find ways to champion green. The legacy is ours to build, and the time is now. Dave Porter is first vice president in the Pacific Northwest for Countrywide Home Loans — National Builder Division. He is a national speaker and writer. Contact him by e-mail or call 888-877-4879.
Go Green in 2005 Mark your calendars now for the seventh annual National Green Building Conference. Next year’s conference will be in Atlanta March 6-8. Escalation Clause From NAHB Provides Insurance Against Rising Materials PricesResponding to recent sharp price increases for a number of critical building materials — including OSB, plywood and steel — NAHB has prepared for its members a new escalation clause for sales contracts that is designed to be adaptable for any number of materials that a builder may want to include. Sales profits from a home can be seriously eroded or even turn to losses when builders base their bid or contract prices on building materials prices that rise significantly by the time construction actually begins. An escalation clause can help protect builders from the adverse consequences of price spikes, especially for materials with volatile markets or where there are indications of possible shortages. In completing the escalation clause form, in order to avoid future disputes with the owner over the actual cost of materials at the time of the bid or contract, it is recommended that the specific building material be listed, along with its current price per appropriate unit of measurement, as of a certain date (such as the date of the contract or bid) and with the name and address of the supplier. As a matter of fairness, both the owner and the builder should have a right of termination if increases in materials costs become exorbitant and threaten to make the house unaffordable or too expensive to build. NAHB’s sample escalation clause provides for termination in the event that increases in materials prices cause the total contract price to increase by more than a certain percent, although this can also be stated as a certain dollar amount. Both the owner and the builder should mutually agree on the percentage or the amount. This may be pegged to the lending limits on the construction loan or another figure that the parties find acceptable. Because the builder must take affirmative steps to claim the increase, it is possible for him to waive or ignore increases considered to be minor. However, including the clause in the contract is insurance against suffering the effects of crippling builder material cost hikes. To download the escalation clause, NAHB members can click here. For further information, e-mail David Crump, NAHB’s director of legal research, or call him at 800-368-5242 x8491; or e-mail David Jaffe, NAHB’s staff vice president for construction liability and legal research, or call him at x8317.
Register for NAHB’s Spring Construction Forecast Conference See what's on the horizon for the housing industry at the semi-annual gathering of the country's premier economists and finance experts. Get the latest forecasts on housing starts, project budgets and other economic bellwethers at the Spring Construction Forecast Conference on Wednesday, April 21, at the National Housing Center in Washington, D.C. Visit the Web site for more information. Weather Cools Down Home Starts a Bit in FebruaryUnusually cold and wet weather in the South and West helped cool the seasonally adjusted annual pace of new-home construction in February to 1.855 million units. However, that was still above the total 1.848 million units started in 2003, which was the highest number of housing starts in 26 years. The rate of new home construction in February fell 4% below January's upwardly revised rate of 1.932 million, but was 13.1% above the level recorded a year earlier, the Commerce Department reported last Tuesday. “Builders continued to adjust their new production to a more sustainable level after the surge of late 2003,” said NAHB President Bobby Rayburn. “But builders remain very confident about the market, and we expect to maintain a very healthy pace through the coming months.” Despite some weather-related problems last month, NAHB Chief Economist David Seiders, said that market conditions remained healthy. “The interest rate structure is even more favorable than earlier in the year, and with house price performance remaining solid and continued increases in household formations, we expect housing to remain strong,” he said. Seiders even suggested the possibility that housing starts this year “could equal or surpass the excellent performance of 2003, if interest rates are well-behaved as this year progresses.” Single-family housing starts declined 4.1% in February to a rate of 1.489 million, which was 13.5% higher than a year earlier. Multifamily starts decreased 3.4% to a seasonally adjusted rate of 366,000 units, 11.6% higher than February of 2003. Residential construction fell 10.6% in the South and 7.5% in the West. It climbed 25.3% in the Northeast and 7.1% in the Midwest.
Register for NAHB’s Spring Construction Forecast Conference See what's on the horizon for the housing industry at the semi-annual gathering of the country's premier economists and finance experts. Get the latest forecasts on housing starts, project budgets and other economic bellwethers at the Spring Construction Forecast Conference on Wednesday, April 21, at the National Housing Center in Washington, D.C. Visit the Web site for more information. Builders See Strong and Steady Single-Family Market in MarchThe nation’s home builders are seeing demand for newly built single-family housing holding up to a strong and steady level this month, according to NAHB’s latest Housing Market Index (HMI), which remained unchanged from February’s reading of 64. “The tremendous pace of home sales in last year’s final months has apparently given way to a more sustainable level of activity in early 2004,” said NAHB President Bobby Rayburn, which is a positive sign heading into the peak home buying season this spring. Highly favorable financing conditions, solid house-price performance and excellent demographics continue to drive the new-homes marketplace, according to NAHB Chief Economist David Seiders. “Builders evidently are deriving confidence from these developments and registering realistic expectations for the future,” he said. Seiders also noted that there has been a gradual downward drift in the HMI from its highs of late 2003, in tandem with ongoing concerns about the job market and lower consumer confidence readings. The HMI is derived from a monthly survey of builders that NAHB has been conducting for the last 19 years. Home builders are asked to rate current sales of single-family homes, which fell two points to 69 in March; sales expectations for the next six months, which were down three points to 70; and the traffic of prospective buyers, which climbed two points to 48. Any number over 50 indicates that more builders view sales conditions as good than poor.
Register for NAHB’s Spring Construction Forecast Conference See what's on the horizon for the housing industry at the semi-annual gathering of the country's premier economists and finance experts. Get the latest forecasts on housing starts, project budgets and other economic bellwethers at the Spring Construction Forecast Conference on Wednesday, April 21, at the National Housing Center in Washington, D.C. Visit the Web site for more information. NAHB Fights for Reasonably Priced Flood InsuranceThis is the first in a series chronicling NAHB legal activities undertaken to protect the industry. Environmental groups around the country are resorting to a coordinated tactic to stop growth and development that does not affect the home building industry directly, but can limit residential activity, nonetheless. Using existing federal laws and regulations involved with housing, these groups have filed similar lawsuits against federal agencies and programs that affect our industry, with the ultimate aim of shutting down or limiting these programs — and halting growth. Their primary legal argument is that the programs allow growth to occur at the expense of natural resources and endangered species and, therefore, should be curtailed or restricted. NAHB is countering this offensive by both intervening in the lawsuits to keep in place valuable rules and regulations, and initiating litigation to challenge agency actions that are detrimental to home building. Environmentalists Mount a Coordinated Attack Against FEMA Environmental groups have initiated three lawsuits across the country targeting the National Flood Insurance Program (NFIP) and the Federal Emergency Management Agency (FEMA), the agency that administers it. In all three lawsuits — one involving Key deer in Florida, another targeting fish and wildlife habitat in New Mexico and the third involving Chinook salmon in Puget Sound — environmental groups have argued that the NFIP allows development in floodplain areas and that FEMA is responsible for encouraging wholesale habitat and endangered species destruction. In reality, the flood insurance program, established by Congress as part of the National Flood Insurance Act of 1968, is designed to minimize risks to human health and property within floodplains and requires participating communities to enact ordinances and regulations to manage growth and development. The NFIP also is designed to provide reasonably priced flood insurance that would otherwise be cost prohibitive or unavailable to most property owners that participate in the program. In order for a community to participate in the NFIP, it is required to adopt a floodplain management ordinance that complies with, or exceeds, the minimum requirements set forth in the NFIP regulations. To ensure compliance with the NFIP, FEMA has the authority to suspend communities that either do not have compliant ordinances or have not maintained a floodplain management ordinance conforming with the NFIP regulations. Furthermore, Congress has encouraged NFIP participation by mandating that federally regulated lenders require mortgagees to have flood insurance on covered properties. If the environmental groups prevail in their lawsuits and builders or property owners are unable to obtain or renew flood insurance, builders and owners will be unable to finance their property, extend financing or sell their property because mortgage lenders will be unwilling to provide loans for land that cannot adequately be insured. Similarly, purchasers will not be able to secure loans in participating NFIP communities if they cannot purchase flood insurance due to a court ordered injunction. Creative financing options will need to be developed to fill the gap left by the unavailability of traditional mortgages. Status of the NFIP Challenges NAHB has intervened in the lawsuit in the Pacific Northwest and is closely following the challenge to the flood insurance program in Florida. The suit filed by environmental groups in New Mexico was settled before NAHB could participate. Florida Key Deer: The longest running of the flood insurance lawsuits, initially filed in 1990, involves a challenge to the flood insurance program in South Florida where environmental groups alleged that FEMA’s practices negatively impacted Key deer habitat. Key deer are considered an “endangered species” and their habitat encompasses most of the Florida Keys. As part of their suit, environmentalists contended that FEMA did not “consult” with the U.S. Fish & Wildlife Service (FWS) to develop procedures to preserve Key deer habitat. A federal district court agreed with the environmental groups and ordered FEMA to “consult” with FWS. As a result, the counties in the affected area now forward building permits to FWS for review before local building permits can be approved. However, because the environmental groups are not satisfied with FWS reviews, they have brought another legal challenge requesting that the court enjoin FEMA from issuing flood insurance in Key deer habitat. NAHB currently is monitoring the proceedings and is ready to support FEMA if the court sets hearing or briefing schedules in response to the environmentalists’ request for an injunction. New Mexico Fish and Wildlife: In this matter, the environmental groups claimed that by granting flood insurance, FEMA has harmed the endangered Rio Grande silvery minnow, the bald eagle and the Colorado pike minnow. FEMA and the environmental groups negotiated a settlement that required FEMA to assess the effects of the flood insurance program on these endangered animals. The settlement also required FEMA to perform compliance assessments on communities participating in the flood insurance program. The case was settled before NAHB had an opportunity to intervene. Puget Sound Chinook Salmon: In this case, filed in Seattle, environmentalists alleged that FEMA failed to consult with the National Marine Fisheries Service (NMFS) to carry out programs for the conservation of endangered and threatened Chinook salmon. Specifically, they claimed that: “The sweeping extent of floodplain loss is one of the most pervasive and unregulated forms of habitat degradation in the Pacific Northwest.” They seek an injunction preventing FEMA from issuing any further flood insurance until it consults with NMFS about ways to protect Chinook salmon habitat. NAHB has intervened in this case in order to remain involved in any consultation process, and to be able to explain to the court the negative impacts that would occur if the court were to issue an injunction against issuance of flood insurance. In addition, NAHB is concerned that the environmentalists will expand their litigation to other communities participating in FEMA’s flood insurance program, thereby slowing down or otherwise preventing development. NAHB will continue to monitor these and other cases, to ensure that its members’ efforts to supply affordable housing are consistent with minimizing floodplain impacts and protecting endangered species. Leaders in Green Building Helping to Develop GuidelinesEfforts by the nation’s home builders and the NAHB Research Center to provide model green home building guidelines moved forward last week at the end of the National Green Building Conference in Austin, with discussions among various stakeholders. Announced at January’s International Builders’ Show in Las Vegas, the development of the guidelines marks the first effort to provide a nationally recognized baseline for determining minimum thresholds for resource-efficient, cost-effective home building. “Home builders nationwide have been building green for more than 30 years, but never before have those practices evolved into a single, written set of criteria establishing what green building actually is,” said Ray Tonjes, chair of the NAHB Green Building Subcommittee and a builder from Austin. Tonjes commended the stakeholders who participated in meetings last week for "their commitment to ensuring that all builders have the necessary tools and guidance to create resource-efficient, environmentally sensitive homes. The stakeholders included large and small home builders, manufacturers, architects, environmentalists, government agencies, suppliers and others with significant expertise in green building issues." Topics of discussion covered all aspects of green building, including lot planning and design, resource efficiency, water and energy efficiency, indoor environmental quality and home owner education. The guidelines will be completed later this year. For further information, e-mail Richard Price or call him at 800-368-5242 x8495. Following is the list of stakeholders who are helping to develop the green home building guidelines: Module — Lot Preparation and Design Glenn Acomb Ted Bardacke Karen Childress James Davenport Helen English Anthony Floyd Tim Piasky Jan Rohila Mary Yager Module — Resource Efficiency Ken Bland Gregg Borchelt Jim Dangerfield Pete Dinger Matt Dobson Bill Freeman Michael Gardner David Jarmul, PE Lee Kitson Edward Korczak Mark Leuthold Bob Peoples Larry Potts, Jr. David Shepherd Wayne Trusty Richard Walker Larry Williams Tom Williamson Module — Water and Energy Efficiency Ray Arnold Erv Bales Jim Benney Brian Binash Richard Church Charles Cottrell Michelle Desiderio Tom Farkas Glenn Hamer Jay Murdoch Rick Perry Jim Ranfone Sam Rashkin Doug Seiter Mike Walker Rob Watson David Wilson Duane Wolk Module — Indoor Environmental Quality and Home Owner Education Allan Bilka, R.A. Frank Borelli Stephen Colley Paul Eisele John Fantauzzi Larry Gruber Kathleen Guidera Gary Heroux Glenn Hourahan Vivian Loftness William Pitman Dave Schrock Steve Sides Mark Stypczynski
Go Green in 2005 Mark your calendars now for the seventh annual National Green Building Conference. Next year’s conference will be in Atlanta, March 6-8.
Awards Recognize the Best and the Brightest in Resource-Efficient Home BuildingWinners of the 2004 National Green Building Awards were announced last week in Austin at the sixth annual National Green Building Conference. “This year’s award winners represent some of the best and brightest in the home building industry,” said John Kurowski, NAHB National Green Building Conference chairman, president of Kurowski Development Co. and a builder of energy-efficient homes for the past 27 years. “NAHB is proud to honor their dedication to the advancement of green building techniques and technologies. Their achievements will inform and inspire home builders about the benefits of green building for home buyers and the environment.” During opening ceremonies at the conference, the following awards were presented:
For additional information on the awards, e-mail Richard Price at NAHB or call him at 800-368-5242 x8495.
'Profits From Building Green' Available Through BuilderBooks.com NAHB Research Center’s resident expert, Jeannie Leggett Sikora shows builders how to develop an effective green home building business in "Profits From Building Green: Award Winning Tips to Build Energy Efficient Homes," available through BuilderBooks.com. The tried-and-true techniques in the book 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 "Profits From Building Green: Award Winning Tips to Build Energy Efficient Homes," click here, or call 800-223-2665 to order. 'Good Green Homes' Available Through BuilderBooks.com "Good Green Homes," available through BuilderBooks.com, offers builders a guide to create homes that are easier on the environment, less expensive and more enjoyable to live in. To view or order "Good Green Homes," click here, or call 800-223-2665 to order. Go Green in 2005 Mark your calendars now for the seventh annual National Green Building Conference. Next year’s conference will be in Atlanta March 6-8. Interior Clay Finish Chosen for National Green Building AwardClayote, a 100% natural earth plaster veneer made of pure clays, aggregates and pigments, was chosen as the Outstanding Green Product by those attending last week’s Green Building Conference in Austin. Winning a National Green Building Award, the product is manufactured by American Clay Enterprises, LLC, which is located in Santa Fe. “Clay naturally controls climate by regulating arid and humid air, absorbing and releasing moisture in response to environmental changes,” says the manufacturer. “Warm to the touch in the winter and surprisingly cool in summer, Clayote creates a wall surface that is inviting to the senses.” Clayote can be applied over raw or painted drywall after priming; on bathroom surfaces that are not in direct contact with water; on ceilings; over straw bale walls that are coated with earth plaster, gypsum plaster or cement stucco; and over scraped adobe walls. The product is a practical alternative to cement, gypsum or lime plasters and is compatible with “breathing” construction in historic and new buildings. The manufacturer says that the product works well for most chemically sensitive people. Its colors come from natural, non-toxic oxides and ochre mineral pigments; it contains borax as an anti-molding agent. New Mailbox Regulations Still Raise Some ConcernsNearing the end of year-long negotiations with the U.S. Postal Service (USPS) over onerous new mailbox requirements for multifamily owners and developers, NAHB has convinced the Post Office that a proposal to retrofit wall-mounted mailboxes in all existing apartments and condominiums would be impractical and costly. However, remaining concerned about a number of issues in the proposed final rule, NAHB has decided not to sign an agreement with the Postal Service that would prevent the association from commenting once the rule is published or taking other actions if the new requirements prove to be overly burdensome. The Postal Service is expected to publish its proposed final rule within a few weeks. One major concern is that the proposed final rule will require mailbox retrofitting in buildings that undergo “substantial renovation,” a term that has been only loosely defined. As currently proposed, local postmasters would have the authority to determine what constitutes a substantial renovation. NAHB also disagrees with an expected mandate for the installation of parcel lockers, which could add significantly to construction costs, not only for the lockers themselves, but also for the additional walls and floor space that would be needed to accommodate them. The Postal Service has indicated to NAHB that it will give local postmasters the discretion not to require parcel lockers if building owners provide alternative package handling strategies instead. Again, however, the authority to require parcel lockers would remain at the discretion of local postmasters. NAHB also remains concerned over the possibly higher cost of the new mailboxes. Manufacturers have estimated cost increases of 15%-30% because of the more stringent manufacturing requirements that would be needed to comply with the rule, but have conceded that they won’t really know for sure until they start producing them. NAHB is worried that the actual cost could substantially exceed estimates. Appreciating the challenges faced by the Post Office in providing efficient and secure mail service and not opposing the effort to improve that service, NAHB has said, however, that any new requirements to achieve that goal must be cost-effective and balanced with the challenges builders face in providing safe, affordable housing. For more information, e-mail Jeff Inks or call him at 800-368-5242 x8547.
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. Pillars Awards Showcase the Best in Apartments and CondosNAHB will honor the “best of the best” in multifamily housing design and development when it presents the 2004 Pillars of the Industry Awards, March 29, at a gala event in Palm Springs, CA. The Pillars Awards, which also recognize superior leadership in apartment and condo marketing and management, provide a showcase of future trends and innovations in the industry. “Multifamily communities today have come into their own — they are highly sought after and wonderful places to live,” said Doug Buster, managing partner and senior vice president of Bloodgood Sharp Buster Architects, and one of the architectural experts who served on the judging panel for the 2004 awards. “That stripped-down, poorly landscaped, institutional building that passed for multifamily for so long is nowhere to be found among the finalists for this year’s awards,” noted Buster, adding that today's apartments and condos are striking in their design, from their use of color and unique building materials to the way they maximize functional living space for residents. “They really complement and enhance the communities where they're built," he said. Leading apartment organizations from around the country are vying for this year’s top honors, including Multifamily Development Firm of the Year, Property Management Company of the Year and Best Multifamily Community of the Year. For a complete list of finalists for builder, marketing and management awards, click here. The awards are being presented in conjunction with NAHB Multifamily’s Pillars of the Industry Conference, which will be held at the La Quinta Resort & Club in Palm Springs, March 28-30.
'Density by Design' Available Through BuilderBooks.com "Density by Design, New Directions in Residential Development" available through BuilderBooks.com, provides the latest trends in residential development and details on innovative projects that work. Fourteen case studies showcase developments of small lot subdivisions, accessory units, housing in new urbanists communities, higher-density and transit-oriented development, mixed-income and mixed housing types, infill and adaptive use. Both single-family and multifamily housing projects are covered in diverse locations such as suburban, urban and new communities. To view or order "Density by Design, New Directions in Residential Development," click here, or call 800-223-2665 to order. Apartment Management Sessions Offered at Multi Housing WorldApartment and condo managers who currently hold a Registered in Apartment Management (RAM) designation can earn continuing education credits at sessions offered at this year’s Multi Housing World conference, the NAHB Multifamily Council and VNU Business Media announced last week. The conference, which will be held at the Las Vegas Hilton May 11-13, will feature more than 40 educational sessions for multifamily managers, owners and developers, with nearly half eligible for continuing education credits toward the RAM designation. “Today’s property managers are responsible for millions of dollars in apartment assets,” said Granger MacDonald, president and CEO of The MacDonald Companies and chairman of NAHB’s Multifamily Council. “The property management business is more sophisticated and competitive than ever and education of key management personnel is critical to resident satisfaction and successful properties.” Multi Housing World has been offering educational seminars and providing hundreds of solutions on the show floor to thousands of multifamily housing professionals for more than four decades. NAHB has offered its RAM series of education and designation programs for more than 30 years, and the designation is recognized as a credential of distinction for managers of apartments, condominiums and cooperative housing. For more information or to register for Multi Housing World, click here. To Do or Not to Do…Handyman ServiceMany of us do it, though not many of us admit it. I am talking about handyman services. I suppose many remodelers are somewhat reluctant to admit it because of the stigma that still exists with the name “handyman services.” Some might dodge a direct answer when asked by a client and, instead, say, “We don’t have a service per se, but we do occasional small jobs for past clients.” Call handyman service what you like. It doesn’t change what it is. And it shouldn’t be looked down upon. It’s effective customer service (we do work in a service industry). It’s a good revenue source. It’s good business marketing (to be noticed and perceived as a “can do” business). And it’s a good source for business leads. Plain and simple, it’s just good business. Admittedly, it takes some specialization and focus to make handyman services a major component of a company’s business plan and revenue stream. But regardless of what size the service plays in a business plan, it can generate revenue and bring additional value. After all, it gives contractors the opportunity to stay in touch with past clients — and what better source of referrals/leads exists than past clients? Get Paid While Marketing Yourself Handyman services also present a valuable way to essentially get paid to demonstrate your skills and competence to someone who might hire you for a “big” project. How many people buy their first vehicle without going for a test drive? Handyman services enable prospects to take the same type of trial run? Now, I’m not advocating giving away services or even selling them at cost. Expect and plan for a reasonable profit. But why not use the service to make contacts, build mailing lists, promote the company in a neighborhood, meet prospects, strengthen ties with trade contractors, perhaps spin off a subdivision for more market saturation or more? In fact, more reasons exist to offer the service than not. In some isolated cases, it just doesn’t fit, but in those instances it makes sense to have a (licensed, reputable) entity you can tap to “sub” out services. That way, your company’s name still comes to mind for all the services that both past customers and future prospects need when they wonder who to call for that job that’s just “too small” for a contractor to bother with. I can trace a series of large, profitable projects I did for one company back to a single, small repair I performed about 14 years ago. The job was for a student who wanted some work done on his home. The whole job took just a few days and cost between $1,000 and $1,500. But from that job sprang — through relationship building — jobs over the next couple years totaling more than $250,000. Not bad, plus I got paid for the initial repair. So, even if it hadn’t developed into a quarter-million dollars worth of work, I still would have walked away with a profit on that job. Handyman service has grown, both in size and need, since I took that small repair job. As the population ages (see information about Certified Aging-In-Place Specialists — CAPS), I receive more calls for smaller jobs and repairs from home owners who can’t, don’t want to or just don’t have the time to perform them themselves. And keep in mind that everyone knows someone else — and probably a few more — who might need help with a larger project. So, stand up, form a self-help group and repeat after me: “Hi, my name’s Greg, and I do handyman services…” Greg Miedema, CGR, CAPS, is president of Dakota Builders in Tucson, AZ. He is chair and founder of his local Remodelors™ Council, a member of the NAHB Remodelors™ Council Board of Trustees and currently serves as the chairman of the Remodelors™ Council Public Affairs Committee. The Southern Arizona Home Builders Association (SAHBA) has named Dakota Builders, Inc. Remodelor™ of the Year in 1998, 1999 and 2000. For more information, send him an e-mail.
'2004 National Repair & Remodeling Estimator' Available Through BuilderBooks.com "2004 National Repair & Remodeling Estimator," available through BuilderBooks.com, is a complete guide for estimating residential reconstruction costs. It includes up-to-date material costs and labor figures based on thousands of remodeling jobs across the country and provides recommended crew sizes; average production rate; exact material, equipment and labor costs; and total unit cost and a total price including overhead and profit. There are also separate listings for high- and low-volume builders. "2004 National Repair & Remodeling Estimator," also includes a CD ROM with an electronic version of the book, "National Estimator for Windows," multimedia tutorial, and a Job Cost Wizard that enables you to create invoices or export estimates to QuickBooks or QuickBooks Pro. Updated annually. To view or order "2004 National Repair & Remodeling Estimator," online, click here, or call 800-223-2665 to order. Show Your Prospects (and Their Guests) That They Have ArrivedMost people want to feel that they have arrived. This is especially true for high-end active adult home buyers who are interested in a resort-style community. They still may be working or perhaps are semi-retired or newly retired, but they demand the best. Consequently, they want to live in a community that exudes style, one that can show the world they have arrived. Start With the Entrance How do you create this sense of arrival in your community? Start with the entrance. When prospects approach a community, they immediately form distinct, lasting impressions. So entry monuments, towers and other architectural details should reflect the architectural style of the community. All builders and developers want to draw prospects in and inspire them to explore their communities. Landscaping details are crucial and add warmth to the entrance. These details can be as simple as planting vines along a tower to soften walls or seasonally changing the types and colors of plants that border the entrance. A gated entrance with a guard is a guaranteed way to encourage a sense of arrival. As prospects approach, being greeted by a guard gives them a glimpse of daily life in the community. Active adult buyers respond to this. What’s more, a simple salute from the guard tells them they will be respected and welcomed. The guarded gate makes a lasting visual impact that will remain with them long after they leave the grounds. Wide main streets with landscaped medians offer beauty and reinforce that sense of arrival. They also generate a feeling among residents and prospects that that the community is open and easy to navigate. Don’t forget the small details like custom stop signs or more substantial features like tree-lined streets. These set a community apart from the competition. Create a Marketing Trail A marketing trail — the path prospects take through the community to the sales center and its amenities — is critical to a community’s success. When developing the site plan, locate the amenities and sales center logically in relation to the entrance. It’s a smart practice to step back and look at it through the eyes of your prospects. They will want to see the best parts of the community, whether it’s the parks, walking or jogging trails, golf course or other amenities. Directional signage is an important component of the marketing trail. Signage should be straightforward and consistent and easily direct prospects to the sales center and model park. Remember, many prospects will not be familiar with your community and might feel anxious about visiting. Reassure them by making it easy to get to the sales center. Also, test the effectiveness of your signage by asking friends and associates to visit the community and give you feedback. Keep the marketing trail immaculate at all times — trees trimmed, landscaping maintained, roads repaired, grass mowed, trash picked up and flags kept in perfect condition. Keep your eyes open for minute details every time you drive the trail. You can be sure prospects will notice. Make Your Sales Center a Focal Point Make the sales center and model park a focal point. Look at the site map and determine the best spot for your sales center. Keep your Unique Selling Point (USP) in mind when you choose a location that shows off at least one of those propositions.
Putting your sales center in a location that highlights your community’s uniqueness will leave your prospects with a memorable experience. If you are using a sales trailer, attach a façade to it that matches the community’s architecture and ties into its other aspects. If your prospects were drawn into your community by an impressive entrance and an effective marketing trail, don’t plant seeds of doubt with a poorly designed sales center. Rather, reassure them by visually demonstrating the quality they will receive upon buying a home in your community. Drive-in appeal doesn’t end when the prospects enter the sales center. Draw them back outside with picture windows displaying magnificent views. If the prospect doesn’t have time to tour your community’s amenities, be sure to have a high quality, three-dimensional topographical map, and a sales associate who can “walk” them through the community using that topo. How Do You Generate Appeal When There’s Only Dirt to Work With? In the very early stages of a community when there is very little to show, create a sense of arrival and appeal by using imaginative story-telling skills. Your sales brochure — the copy and photography — must establish an emotional connection with prospects and provide a vision of your community. After all, your community is as much a feeling as it is a place. This vision needs to be reinforced continuously through renderings, architectural displays and a stellar sales team that, collectively, can paint the picture for your prospects. Advertising and direct mail campaigns also should strive to emotionally connect prospects to the community. Many active adults who buy early in the development process already have a vision and are excited about starting something new. Those without that vision require regular follow-ups and updates about community progress. A newsletter is the perfect way to present the community as it evolves — both physically (amenity starts and completions) and emotionally (residents at community events). Encourage your prospects to drop by the community at a later date and invite them to openings. Create and display large signs that depict the amenities that are still being planned or under construction. Use renderings of the amenities and place the signs where the amenities will be located. This not only assures prospects that the amenity will be built, it also shows them the amenity’s architectural style. Before unveiling an amenity to the community, make sure signage is in place that announces the start or completion dates. This will generate extra excitement among current residents and future prospects. Creating a memorable sense of arrival projects a community’s quality and warmth and gives prospects a preview of what awaits them in the sales center. When done effectively, it encourages them to explore the possibility of being a part of your community. This article appeared in the Winter 2004 issue of Seniors’ Housing News, a quarterly publication by the NAHB Seniors Housing Council. Julie Knepp is vice president of marketing for Sunrise Colony Company, a nationally recognized developer of master-planned communities that cater to upscale mature families, empty nesters, pre-retirees, retirees and established business professionals. Knepp is responsible for marketing Sunrise’s communities and golf clubs at Siena and Red Rock Country Club in Las Vegas, and Toscana Country Club in Indian Wells, CA. She also is an active member of the NAHB Seniors Housing Council and a scheduled speaker at Building for Boomers & Beyond: Seniors Housing Symposium 2004. She can be reached at 760-772-7227 or via e-mail.
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. Creating Service, Success and Lifestyle Communities Among Topics at Seniors SymposiumRob George, corporate director of training and development of the Ritz-Carlton Leadership Center, will be the keynote speaker for Building for Boomers & Beyond: Seniors Housing Symposium 2004 to be held April 14-16 at the Hyatt Regency Chicago. George, who is responsible for strategic aspects of leadership development and training initiatives for The Ritz-Carlton Hotel Company, will discuss “How to Create Legendary Customer Service” and share with seniors housing professionals how to establish a “legendary service” trademark for their companies and communities. Antonio Giordano, Jr., chair of the 2004 Symposium Committee, said that George’s message is an important one. “Customer service is the cornerstone of any business — and this couldn’t be truer for the seniors housing industry,” said Giordano, a multifamily builder/developer based in Providence, RI. “Boomers, empty nesters, pre-retirees and seniors can be discriminating customers. They have very specific ideas about how they want to live their lives and their expectations for their homes and communities. It’s vital to know what satisfies their wants and desires.” Building for Boomers & Beyond includes 19 education sessions featuring top industry leaders and nationally recognized speakers. The sessions will explore topics including design and development, finance, marketing and sales, research and trends and an all-new multifamily track for companies that are building apartments, condominiums and townhouses for seniors. Jon Fels, president of Avatar Properties, Inc., a Coral Gables, FL-based builder/developer of several active adult communities in Florida and Arizona, will speak at the symposium’s Icons of the Industry Awards breakfast. He will discuss his industry experiences creating lifestyle communities for active adults. Also speaking will be Sheryl Palmer, Nevada-area president for Pulte Homes, and David Smith, vice president of Cambridge Homes/D.R. Horton. In their session, “Success Stories,” they will compare costs, marketing ideas and successes as well as discuss the development challenges they faced in their respective active adult communities. “Our speakers will tap into their own personal experiences and use actual case studies,” Giordano said. “All attendees will learn something, whether they are building their first age-qualified or age-targeted community or are industry veterans.” Other highlights of Building for Boomers & Beyond include an exhibit area featuring products and services tailored to 50+ consumers and networking events. NAHB members who register by Monday, March 29 can take advantage of a pre-registration discount. However, on-site registration will be available. Read the Building for Boomers & Beyond brochure for more details. For more information, contact NAHB’s University of Housing at 800-368-5242 x8338 or visit www.nahb.org/build4boomers. Building for Boomers & Beyond is sponsored by the NAHB Seniors Housing Council. The symposium is expected to attract more than 500 single-family and multifamily builders and developers, architects, land planners, interior designers and merchandisers, sales and marketing professionals and others interested in the mature market.
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. Seniors Housing Library Combo Available Through BuilderBooks.com BuilderBooks.com offers a special seniors housing library combination containing three new seniors housing titles for $25 less than the cost of purchasing all three separately. Learn how to build for the seniors housing market with these three resources: "Boomers on the Horizon," "The Best of Seniors Housing News" and "Marketing Seniors Housing." To view or purchase this combination online, click here or call 800-223-2665 to order. BuilderBooks.com Has Publications About Seniors HousingBuilderBooks.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. The Best Paying Non-Job I Ever HadI have been a member of NAHB through my local association for about 10 years. I have gone from being "on the fringe" to where I am now extremely involved. I am a board member of our local association with succession to a leadership position in place, chair of our local Remodelors™ Council, a member on three other committees, a trustee on the national Remodelors™ Council and the current chair of the Remodelors™ Council Public Affairs Committee. Those who know how involved I am often ask, “How can you afford to put so much time into the association?” My answer: “It’s the best paying non-job I ever had!” Value Comes From Participation The networking and business connections I’ve made because of my involvement have improved my business operations beyond measure. The input, advice, feedback and tips I’ve received from all levels of the association are much greater than I could ever purchase through consultants or otherwise. Locally, the business referrals we’ve received are a major source of our leads. What’s more, these leads are generally very good because they come from another "pro" in the industry who is often highly regarded. In addition, my involvement in committees, home shows, community projects and similar gatherings feed into the pipeline that has become a major portion of our business volume. The training, both in structured classes and by way of advice, is also a huge asset. It’s refreshing to know that, instead of constantly “reinventing the wheel,” there are always people within the association who have been down the road you’re traveling. At every turn you can find someone to relate to and, perhaps, show you a short cut or help you avoid a (costly) detour. NAHB Members Are Willing to Share, Help and Encourage What’s really amazing is that, even though we’re all in the same business, there’s not the vicious competition you might expect. Everyone is more than willing to share, help, encourage. In a business largely without formal “schooling,” there’s something reassuring (which only helps your actions and operations) about the advice and commendations you receive from respected members of your industry. All this is available for the nominal price of membership. I can think of no other place, business or otherwise, where the same return on investment is available. But there is one obligation you need to fulfill — you have to participate! NAHB and the Remodelors™ Council are full of resources and people to help us all succeed. And, often, you don’t even have to ask. Just participate and the rest is almost like osmosis. That’s because every member wants every other member to succeed, which, in turn, ensures a stronger, more productive, influential and powerful organization. I’m just sorry I didn’t take this "job" earlier in my career. Of course, had I done so, I’d be insufferably successful and obnoxiously present at too many venues. If or when the time comes to make choices and cut expenses, I know that my membership and membership activities will be the last to go. The payback is just too valuable to give up. Greg Miedema, CGR, CAPS, is president of Dakota Builders in Tucson, AZ. He is chair and founder of his local Remodelors™ Council, a member of the NAHB Remodelors™ Council Board of Trustees and currently serves as the chairman of the Remodelors™ Council Public Affairs Committee. The Southern Arizona Home Builders Association (SAHBA) has named Dakota Builders, Inc. Remodelor™ of the Year in 1998, 1999 and 2000. For more information, send him an e-mail. National Membership Day — April 26 The recruitment efforts of each and every member on National Membership Day, April 26, are vital in ensuring its success. Contact your local Membership Chair to find out where you can help the most.
Get a 5% Discount From AT&T Wireless NAHB members can take advantage of a 5% discount on monthly cellular services from AT&T Wireless. Qualified charges for discounts include one-time charges for wireless service activation, conversion and rate plan changes, monthly wireless access, home wireless airtime charges, roaming airtime charges incurred in AT&T Wireless markets, charges for billing detail and charges for additional features such as voice mail. If you have existing AT&T Wireless Services and would like to start receiving the 5% discount, call 800-459-6524, mention code 50001515 and mention your NAHB membership. Or visit the AT&T Wireless Web site at www.attws.com/specials/wap. For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to http://memberadvantage.nahb.org. Or visit www.nahb.org to explore the full range of benefits associated with membership in your local, state and national home builders associations. Marketing Yourself: Be Prepared for the InterviewYou've been selected for an interview. Now what? Too many people approach an interview with inadequate preparation and lose out on wonderful opportunities. Don't let this happen to you. Prior to the interview, continue the information gathering process. If you know the company’s name, it’s important to gather details on its background. Do a search on the Internet for the company’s Web site, or call the company directly and ask for an annual report, company literature or information about their history and products. If you are interviewing with a builder, visit their project, walk the models and be aware of the type of housing the company builds. How important is this? Think how much more aware and intelligent you will appear if you can truly discuss the product. The real estate section of the newspaper and various real estate magazines will all provide information. Local business journals provide an annual listing of the Top 25 home builders in each area of coverage, along with statistical details, as does Builder magazine. Arrive Early Arrive early for your interview and carry spare copies of your resume. Have a list of pertinent questions prepared. These should not include questions about salary, benefits, vacations, etc. At this stage, your job is to sell yourself to the interviewer on your abilities and skills and what you can offer the company — not "What's in it for me?" If questions about salary arise, simply state that you are sure any offer the company makes will be a fair one, and you are interested in the opportunity. If pressed, simply state your last salary and indicate that you would like to be in that range. The time for salary negotiation is when you reach the offer stage. By then you will have a better idea of the company's structure and potential. During the interview be friendly and cheerful, but businesslike. Remember that the company is interested in what qualities you possess that will benefit them, not what they can do for you. Ask questions about the position. What background would the ideal person have? This gives you an opportunity to bring out your similar qualities or demonstrate how you've handled similar situations. Ask Questions — Not All Employers Know How to Interview Don't make the mistake of thinking that all employers know how to interview. Many do not and don't ask the right questions to find out about your background. Again, ask questions which give you the opportunity to explain your qualifications. Do not over-answer questions. One of the interviewer's jobs is to encourage you to share your negative as well as positive qualities, and an open supportive attitude may encourage you to share information not relevant to the position. Answer questions honestly and forthrightly, stressing your good points, but don't exaggerate or lie. Keep to the point, and remember that, “Tell me about yourself,” really means, “Tell me about your background in relation to this job.” Avoid personal matters, children, home life, etc. You may appear overly concerned about your children or create the perception that you have personal problems. Always conduct yourself during an interview as if you are determined to get the job you are discussing. Be enthusiastic, and if you are interested in the position, let the employer know this. At the End of the Inverview, Ask for the Job or Another Interview More positions are gained because of enthusiasm and attitude than specific skills. Do not “turn off'” during the interview even if you feel the specific position is not right for you. Frequently, positions can be restructured, or other positions created when an employer genuinely is impressed by a candidate. In closing, thank the employer for his or her time, and the opportunity to learn more about the company. Reiterate your interest, and ask what the next step in the selection process is. Follow up with a “thank you” note, (with the interviewer’s name and title correctly spelled) in which you reaffirm your interest in the position and refresh the employer's memory about your background. After interviewing several candidates, employers often become confused. Don't be discouraged if an interview doesn't result in an offer. Every interview provides you with more information about your field, and the practice will make the next interview smoother. Opportunities in Sales and Marketing: If you build it — you must sell it. A sales or marketing career in the home building industry can be financially rewarding while the joy of helping people realize their dream of homeownership is emotionally satisfying. Smaller builders often contract their sales and marketing efforts to local Realtors®, who act as brokers and assign agents to sell the properties. Such positions are primarily commission based, and agents are paid on a percentage basis. A real estate license is required. Larger production home builders generally handle all sales and marketing activities in house. Some major firms contract to handle all these functions, with oversight by the builder sales team. Larger builders have a hierarchy of positions generally beginning with the vice president of sales and marketing. Sometimes in very large companies the sales and marketing functions are separate. The vice president of sales has a broad range of responsibilities that can include the following duties:
Generally, this person supervises sales managers and a marketing manager and other related departments, including escrow and liaisons with the mortgage lender. A marketing manager is involved in the development of marketing budgets, market research and analysis of competitive products to determine pricing and product. This manager has responsibility for sales office and model complex functionality, development of marketing and advertising materials and determining other necessary requirements. In smaller companies these functions may be combined at the director level. A director of sales/marketing has similar duties to those outlined above. A marketing coordinator/assistant supports marketing and merchandising activities for new home communities. This person may be involved in market research, model merchandising, advertising coordination, budget development and supervising maintenance personnel. The escrow officer is responsible for overseeing the escrow process for new home communities. This includes reviewing preliminary title reports, ordering demands, drawing escrow instructions and coordinating with the lender, builder and home buyer. Earlier Articles in This Series
Lee Terry is president of the San Mateo, CA-based Lee Terry & Associates, Inc., an executive recruiting firm specializing in the building industry. Terry is also the immediate past chair of the NAHB Women’s Council. Terry can be reched at 650-570-7913 or via e-mail.
‘Selling Is a Woman’s Game: 15 Power Reasons Why Women Can Outsell Men’ Available at BuilderBooks.com In "Selling Is a Woman's Game: 15 Powerful Reasons Why Women Can Outsell Men," available at BuilderBooks.com, top sales trainers and motivational speaker Nicki Joy show women how to turn their natural abilities into super sales performances with top results. Packed with specific sales tips, "Selling Is a Woman's Game" examines 15 crucial areas where women have a natural edge in the selling arena, helping them to assist, motivate, persuade and convince. To view or purchase "Selling Is a Woman's Game" online, click here, or call 800-223-2665 to order. Sales & Markeing Publications Available Through BuilderBooks.com BuilderBooks.com offers a variety of sales and marketing publications online. To view or purchase these publications, click here. Bank Listing Service Potentially Worthwhile Resource for Projects in New EnglandThe Project Listing Service™ launched by the Federal Home Loan Bank of Boston at the start of this month, is aimed at matching nonprofit and for-profit developers, businesses and commercial-property owners with lenders in New England. Anyone with a project in the region can use the service. The innovative program enables builders and developers to present projects for which they are seeking funding to the more than 470 financial institutions that are members of the Federal Home Loan Bank. Using a simple online form, developers list projects for which they are seeking funding, describing the nature of the project and specifying the type of funding they are seeking. Member financial institutions access the service through a secure section of the bank’s Web site and then respond to those they decide are valuable lending and investing opportunities. To reach the Project Listing Service site, click here. For further information, e-mail Michael Carrier, NAHB’s director, financial institutions, or call him at 800-368-5242 x8529. NAHB Members Help Students Finance Their EducationCommitted to the future of the home building industry, NAHB’s members and councils are sponsoring scholarships for members of the association’s Student Chapters who are pursuing housing-related programs such as construction management, construction technology, mortgage finance, civil engineering, architecture or any of the trade specialties.
The National Housing Endowment, the philanthropic arm of NAHB, administers four scholarship programs for NAHB, including the recently established Strategies for Success Scholarship, which is sponsored by the NAHB Women’s Council. The other scholarships administered by the endowment are the Centex Homes Build Your Future Scholarship, the Lee S. Evans Scholarship and the Herman J. Smith Scholarship. Patsy Smith, vice chair of the Home Builders Institute (HBI) Board of Trustees, a trustee of the National Housing Endowment and chair of the Herman J. Smith Scholarship said of her late husband that, “Herman’s favorite motto was ‘always leave the woodpile higher than you found it,’ so we continue this in his honor.” Last year, a record $150,000 in scholarship funding went to more than 100 students across the nation. That amount should be exceeded this year as the endowment continues to grow. NAHB is also reaching out to its youngest members through the National Housing Endowment/NAHB Past Presidents Scholarship Fund, which provides matching monetary grants to two- and four-year institutions offering courses in building and building-related fields. State and local home builders associations match the funds from NAHB and award them to Student Chapter member schools in their area. Part of the Residential Construction Academy — and funded by NAHB, corporate partners and student member dues — the NAHB Student Chapters program helps to enrich the educational experience of students enrolled in construction-related fields. For more information on NAHB Student Chapters, e-mail Page Browning or call her at 800-795-7955 x8918. For more information on the National Housing Endowment, e-mail Julie Wheeler or call her at 800-368-5242 x8483. New Treated Wood Windows Resist Decay and TermitesIn its Pozzi® Custom Collection of windows and patio doors, JELD-WEN has introduced new AuraLast™ wood that it says won’t decay, absorb water or become infested by termites. Made of solid western pine, the Pozzi® windows are the only ones on the market today that achieve nearly 100% penetration of active preservation ingredients, says the manufacturer, and that allows them to provide superior protection against the elements and ensure that their integrity is not compromised by nail or screw holes. Headquartered in Klamath Falls, OR, JELD-WEN is a member of the National Council of the Housing Industry — the Supplier 100 of NAHB. The treatment process used for AuraLast is water-based, says the manufacturer, and that reduces volatile organic compounds by 96% during production, making the product more environmentally friendly. Pozzi® Custom Collection windows and patio doors with AuraLast™ wood also come with a 20-year warranty against wood decay or termite infestation. In addition to increased durability, says JELD-WEN, AuraLast™ wood maintains its natural color and beauty, providing home owners with a lower maintenance option for wood exteriors. More than 75% of today’s wood windows are sold with exterior metal cladding to protect the exposed portion of the window from weathering, says the manufacturer. While this lowers their maintenance, it also means that their color cannot be changed. With AuraLast™, home owners have the option of painting the wood exteriors any color they desire, and as often as they like. In addition, paints and stains on AuraLast™ wood will match those of untreated wood, says JELD-WEN. AuraLast™ will be available in other JELD-WEN wood windows and select wood doors in the coming year.
This feature is solely for educational and informational purposes. Nothing on this page should be construed as policy, an endorsement, warranty or guaranty by the National Association of Home Builders of the featured product or the product manufacturer. The National Association of Home Builders expressly disclaims any responsibility for any damages arising from the use, application or reliance on any information contained on this page. Joe Drut’s Meltdown"Joe Drut" operates a backhoe. Been doing it for 20 years.
One day his boss, "Slick Jette," said to him, “Joe, you’ve been around underground utilities for lots of years, in fact you used to lay pipe if I’m not mistaken. Our regular crew foreman is on another job, but we’ve got to finish the Baker Heights project next week. I need you to stand in and oversee the laying of several thousand feet of utility conduit.” Joe rumpled his forehead at this unexpected diversion in his normal duties. But being loyal, Joe said he would do it. Then Joe asked, “Who’s gonna’ buy the conduit?” Slick considered the question for a moment. He knew this task would be a stretch for Joe because Joe knew nothing about purchase orders, nor who the supplier would be. So Slick said, “I’ll order the conduit.” Joe said, “When will it be delivered?” “Hmmm,” Slick hesitated. “I suppose I could have it here in two days.” “Okay, and who’ll do the takeoff?” “I guess I will,” Slick responded. “Great. And will you coordinate with the telephone and power companies for the pre-construction meeting; and order the sand bedding too?” “Yes, I may as well do that, too.” “Fine. Let me know when the meeting is.” “Okay.” At the pre-con, Joe noticed the plans were unclear and contained several conflicts, but the utility reps were in too big a hurry to explain things well. So Joe just nodded and didn’t say much. Several days later, Joe was in the trench with a laborer, laying out conduit. He immediately discovered there wasn’t enough four-inch pipe, nor were the elbows the right kind. He called Slick. “Darn,” Slick said. “Let me see if I can get you more. I don’t know how long it will take, though.” “What should I do in the meantime?” Slick was obviously in a rush and said, “Just keep yourself busy. You know what to do.” “What about my laborer?” “Keep him busy, too.” About that time, the natural gas rep came by the job site and noticed the trench was greater than 48 inches deep. “We can’t go into that trench,” he said. “Too deep. You’re going to have to fill it back up some.” Joe looked at his dwindling pile of sand bedding. He would now need many more truckloads. Joe cursed, rolled up the plans, got in his truck and drove back to the office. He walked up to Slick’s desk, tossed the plans down and spoke harshly, “Slick, you can have your plans and your foreman job back. I ain’t doin’ it. I ’m not getting paid to think. I drive a backhoe — that’s what I do. Now, if you want me to work for this company, find me something to dig. If not, fine. I’ll go somewhere else.” Slick’s jaw hit the table — shell-shocked. Wasn’t it every tradesman’s goal to work his way up to a management position — just like he had done himself? “Um, okay Joe,” Slick finally managed. “We need a hoe operator up on the Razor Ridge job. You can head there.” Joe nodded and walked away. The next week Slick arranged one-on-one informal meetings with all his employees. If he had so grossly misread Joe, who else was he in the dark about? He was astounded by what he learned:
Though Joe Drut wouldn’t have guessed it, his meltdown was, in the end, a good thing. Rusty old lines of communication were opened. Morale soared. Methods of operation were improved. How open are your lines? 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. The views expressed in this article represent the personal views, statements and opinions of the author and do not necessarily represent the views, statements, opinions or policies of the National Association of Home Builders. NAHB does not necessarily endorse any of the views expressed by the author and NAHB is not responsible for any direct or indirect consequences arising out of the views expressed in this article. Share Your Knowledge and ExpertiseThe NAHB Public Affairs office is looking for a few good builders…and remodelers, architects, associates and more…to share their knowledge and perspective. The editorial staff of the association would like to draw upon the members’ wide-ranging expertise to help explain the impact of building industry policies, news and trends on day to day business. These impacts will be reported in NAHB's more than 20 electronic newsletters and other publications. Members who wish to participate will be contacted by phone or e-mail when there is news in their areas of expertise. It's an opportunity for members to gain national exposure among their peers. Ideal participants are members who, while they may not hold elected offices in their local or state associations, have a significant knowledge base in a specific area and are interested in sharing their experience and perspective with others. While NAHB will continue to expand to additional areas of interest to NAHB members, the initial request is for stakeholder members who are willing to comment on one or more of the following issues:
Executive officers in state and local accociations have already begun compiling contact information about members who they believe will be enthusiastic about acting as sources for stories about critical issues for NAHB print and electronic publications. If you are interested in participating or know of someone who would be a good resource, please contact your executive officer or NAHB Public Affairs at 800-368-5242 x8061.
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. Sign Up for the Legislative Conference and Make Housing a Priority in CongressMembers 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:
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. Calendar of Events
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