Nation's Building News Online: April 5, 2004Print All Articles Text Version |
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Builders Vow to Defeat Uphill Senate Bid to Overhaul Regulation of Housing GSEsThe nation’s home builders have voiced strong opposition to legislation narrowly passed on April 1 by the Senate Banking Committee that would overhaul the regulatory structure of Fannie Mae, Freddie Mac and the Federal Home Loan Bank System. Builders Vow to Defeat Uphill Senate Bid to Overhaul Regulation of Housing GSEsThe nation’s home builders have voiced strong opposition to legislation narrowly passed on April 1 by the Senate Banking Committee that would overhaul the regulatory structure of Fannie Mae, Freddie Mac and the Federal Home Loan Bank System. “The bill to restructure the regulatory framework of the housing government sponsored enterprises (GSEs) that was approved along party lines by the Senate Banking Committee is a bad bill for the nation’s home buyers and represents a retrenchment from national policies that have expanded housing opportunities over the past several decades,” said NAHB President Bobby Rayburn. S. 1508, the “Federal Housing Enterprise Regulatory Reform Act of 2004,” was approved by a 12 to nine vote, with Sen. Zell Miller (D-GA) the lone Democrat voting with the Republican majority. An alternative proposal supported by NAHB and offered by the committee’s ranking member, Sen. Paul Sarbanes (D-MD), failed by a vote of nine to 12. Unlike Committee Chairman Richard Shelby’s (R-AL) bill, the Sarbanes measure omitted a provision that would allow the agencies’ regulator to place the GSEs into receivership; altered the structure and governance by replacing an advisory board with a voting board; limited the supervisory board’s ability to raise minimum capital requirements; and gave the housing government sponsored enterprises (GSEs) sufficient flexibility to offer new loan products. The highly partisan committee vote makes it unlikely that the full Senate will vote to approve the legislation this year. The Administration has also publicly come out in opposition to the final bill passed by the committee because it believes its provision on receivership is not strong enough. On a provision of the committee-approved legislation that would give a sitting Congress 30 days to block the appointment of any receiver by a regulator, Sarbanes voiced strong reservations that this could harm the housing market. “We are literally playing with dynamite here, and we need to recognize that,” he said. Sen. Charles Schumer (D-NY) went a step further, charging that the bill “opens the door to the complete privatization of Fannie and Freddie — the end of the GSEs as we know them.” “While we appreciate Chairman Shelby’s efforts to craft legislation that would address the nation’s housing concerns at the same time as it assures the soundness and safety of institutions that are indispensable to our housing finance system,” commented Rayburn, “the bill that emerged today unfortunately falls far short of protecting a priority for housing in America. “Under the structure and governance established by this legislation, decisions on the housing mission of Fannie Mae and Freddie Mac have been put into the hands of a single regulator who will be politically appointed and whose focus may be on concerns that do not necessarily reflect the best interests of housing,” Rayburn said. “While the bill’s receivership provisions have been improved by language that would enable the Congress to contravene a decision by the regulator to place a GSE in receivership in the remote event that it became financially insolvent,” he said, “the bill would still make investment in these institutions less attractive, resulting in higher mortgage interest rates and higher monthly housing costs. “The introduction of affordable housing goals into this legislation is a notable improvement over the previous version of this bill, but this is more than offset by new minimum capital requirements and a regimen of unnecessary regulations that would stifle innovations in the mortgage market. “As we stated earlier this week, the shortcomings of this bill are so great that they cannot be corrected through amendments, and for that reason we cannot support it. “Enactment of this legislation faces a steep uphill climb and we have every intention of making that upward path as rocky as possible to help ensure its defeat.” To read the legislation, go to thomas.loc.gov, and enter S. 1508 in the box at the upper left. For more information, e-mail Michael Strauss at mstrauss@nahb.com or call him at 800-368-5242 x8252. Building News Coast To CoastFiery U.S. Home Building Industry May Bid Farewell to Junk MarketThe strength of the home building industry in the midst of a sluggish economy and stagnant job market has Fitch Ratings and Moody's Investors Service pulling builders' stocks out of junk status and toward a possible credit upgrade. "This sector could become predominantly investment grade credits," speculates Fitch Ratings Senior Director Robert Curran. The industry is expected to remain strong even as interest rates rise, mainly because rates will climb more slowly and remain lower than in previous years. Moreover, builders have scaled back their speculative construction and expanded into several metropolitan areas and price ranges. KDP Investment Advisors bond analyst Matthew Wilcox also believes builders can cater to demand, eliminating rooms and accessories that might be too costly during higher-interest environments. Buildings Designed in Cool Shades of 'Green'Environmentally friendly building is gaining popularity across the country due to demand for healthier buildings, lower-cost materials and government requirements at the local, state and federal levels. The U.S. Green Building Council has certified a total of 89 so-called "eco-friendly" or "sustainable" structures in the last three years, and 10 states and 23 municipalities require or are seeking to require public buildings to receive the Leadership in Energy and Environmental Design (LEED) certification. "Now we're seeing friendly competitions among builders and design teams and between cities and states about how green they can be," remarks Green Building Council Executive Director Christine Ervin. The strategy involves a focus on energy efficiency and water conservation, the use of recycled materials, the elimination of chemicals and other toxins and designs that take advantage of natural sunlight. In Portland, OR, developer Robert Gerding built a 123-unit condominium tower with pressed-straw doors and cabinets, dual-flush toilets, woods from sustainable forests, chemical-free carpets and paints, windows that block the sun and control indoor temperature and bike racks to discourage driving, among other features. As in other sustainable developments, The Henry's $280,000-$1.3 million units were sold out before they were finished. Though green building has earned the support of government officials, builders and consumers, experts say truly sustainable structures — which produce more energy than they consume — have yet to be built. A New Breed of Home ImproversA recent report by RoperASW found that 60% of home owners plan to undertake improvement projects in the next couple years. For 15% of home owners and 22% of renters, this involves new furniture purchases. Home owners tend to focus on new rooms, roofs, windows, fixtures and landscaping and generally hire a professional to handle even the easiest tasks. In fact, the report reveals that only 40% of home owners opt to paint the property interior themselves. However, they do prefer to select the fixtures, paint colors and other items themselves — which explains the success of Home Depot, Lowe's and other home-improvement retailers. For Rent: New Apartments for Healthy, Independent SeniorsDevelopers are targeting seniors who are in good financial standing, still active and interested in scaling down their residences. No longer do so many people need large houses, especially those so-called "empty nesters" whose children are grown and living independently. Consequently, the American Seniors Housing Association reports that senior-apartment construction reached a total of 8,789 units in 2003, a substantial increase from the 4,566 such units that were built the previous year. These apartments typically are garden-style units, not high-rise buildings. To be sure, the growth in apartments for active seniors is being fueled by the simple fact that people are living longer. The Census Bureau adds that more than 16% of U.S. citizens will be at least 65 years old by 2020. After today's wave of seniors, developers and landlords will next look to appeal to the baby-boomer generation whose first wave will start hitting 65 in 2011. Uncertainty lies in how many older Americans will be willing to rent instead of buy similar condos in the years ahead, however — especially if interest rates remain favorable. Construction Rebuilds Its Economic RespectThe construction sector has remained strong in recent years despite the sluggish economy, creating jobs as low interest rates sparked a nationwide housing boom. Out of all goods-producing industries, the U.S. Labor Department has pegged construction as the only one that will grow through 2012. The sector added 128,000 jobs during the year-over-year period ended in February, while the nation's industries as a whole posted net job gains of just 113,000. Even so, construction still gets little recognition as an economic contributor; and some expect the industry to weaken as interest rates rise. However, Economy.com and other analysts predict that commercial and public works projects will prop up the industry once the housing market weakens. Mobile-Home Industry Tries to Haul Itself Out of Big SlumpThe mobile-home industry is trying to rebound from a crash that has flooded the market with repossessed properties, causing the shipment of new houses to fall in 2003 to its lowest level in 41 years at 131,000 units. The sector's woes have forced Conseco to seek bankruptcy protection and prompted Fannie Mae to make $206 million of write-downs on securities backed by mobile homes, and the figure could continue to grow. Many dealers that used misleading sale practices and lenders that offered unrealistic loan terms have not been able to survive the problems in the industry, but Warren Buffet, General Motors and other parties that are more committed to improving the quality of manufactured homes and tightening lending are starting to fill the void. Many housing experts say mobile homes still represent the best shelter option for low-income households, and they believe that manufactured homes will help increase the national homeownership rate. Conservatories Bring the Outdoors InsideSunrooms are gaining popularity among home owners who want to enjoy the outdoors without actually going outside. Modern versions generally are made of lightweight aluminum and vinyl, with interior wood frames and glass that minimizes glare, cleans itself, retains heat in the winter and keeps the space cool during the summer. Though many home owners use their sunrooms for relaxation time, others use them to house kitchens, dining rooms, great rooms or swimming pools. The conservatory design is the most common, according to James Ruppel of Holbrook, NY-based Four Season Sunrooms, because of its "classic elegance." Fed to Offer Affordable Housing IncentivesHUD plans to reward state and local governments that remove excessive regulatory barriers to building affordable housing by offering them an extra point or two when it considers applicants for its competitively awarded grant programs. The new priority points would make a huge difference as state and local government compete for HUD funding. Exclusionary zoning, antiquated building codes, duplicative reviews and approval processes and excessive and unwarranted fees are the kinds of obstacles that often drive up the cost of low-income housing by tens of thousands of dollars. "We believe this initiative will facilitate a dialogue on reducing excessive regulations that have a very real impact on working families being priced out of their own communities," says A. Bryant Applegate, senior counsel and director of HUD's Affordable Communities Initiative. Program Analyzes What Kind of Home You Really WantMore than 70,000 real estate agents use AdWriter software to quickly pen classified ads, and the program can now be used to gauge home buyer preferences. Using collaborative filtering and the Values and Lifestyles (VALS) attitude-measurement system, AdWriter takes note of the properties viewed by online users and determines what AdWriter's Bryan Blue calls "a pattern of wants, needs, desires." The software uses this information to suggest particular homes, just like Amazon.com tracks buying patterns and recommends certain books to repeat customers. "We're helping people find homes without them telling us directly what they want," remarks AdWriter creator Hal Douthit. The program — which eventually will expand from broker databases to multiple listing services — cuts the time spent on the home search. Higher Materials Prices Hit BuildersRising prices for steel and other construction supplies are leading some firms to request government assistance or to consider job cuts as a way of defraying costs. The price increases are affecting residential, commercial and civic construction projects throughout the country. Overall building costs could rise by as much as 6% this year as a result, which would be the largest hike in a decade, according to Donald Boyken of Boyken International, a construction development and management firm. Steel prices are causing the greatest concern, as they have risen 40%-60% in the past few months, prompting major groups like the Associated General Contractors of America and the American Road & Transportation Builders to lobby for price adjustments on federal highway contracts. In addition to steel, home builders are facing price surges in lumber, strand board and copper wiring. For now, low mortgage rates are keeping residential construction afloat; but some firms may begin resorting to layoffs or even bankruptcy if the unusually high rate of inflation in steel costs continues. The New Pioneers of SprawlCulture clashes are emerging as residential development expands into Larimer County, CO, a rural locale near Denver that is home to farmers and ranchers. Colorado State University research scientist David Theobald expects exurban development statewide to grow from almost 2.5 million acres in 2000 to more than 5 million acres by 2030. Though development in Larimer County is restricted to plots of 35 acres or more, Colorado State University professor and conservationist Rick Knight notes that these parcels are too small for wildlife and native plants to thrive. Meanwhile, many owners of these so-called "ranchettes" do not anticipate the hardships that accompany rural living. In response, former Larimer County Commissioner John Clarke penned the "Code of the West" to warn them of unpaved roads, the smell of manure and frequent power outages, among other rural facts of life. Many ranchers, farmers and property-rights advocates are against boosting the 35-acre limit as a means of curbing growth. As an alternative, Larimer County Rural Land Use Center Director Jim Reidhead believes ranchers and farmers should be allowed to develop unproductive parcels of fewer than 35 acres in exchange for conservation easements on the remainder of their properties. Target: Zero-Energy Homes"Zero-energy homes" are gaining popularity among the nation's home builders. These dwellings produce more energy than needed, allowing residents to sell the excess to local utility companies. Builders are employing solar technology such as photovoltaic cells and parabolic trough systems — the latter of which use mirrors and sunlight to heat fluid inside receiver tubes to create steam, run a turbine generator and make electricity. Solid-state lighting, landscaping, high-performance windows, cellulose insulation and efficient water heaters also are important components of zero-energy homes. Incentives offered by some states make the technology more affordable, and U.S. Energy Department official David Garman says federal officials also are looking to slash the cost of photovoltaic cells and other products. Though zero-energy projects generally are undertaken by custom builders, Centex is among the production builders interested in this approach. Centex, for instance, collaborated with the Davis Energy Group on the Livermore, CA-based Los Olivos development, where a demonstration model of a zero-energy home generates electricity even when outdoor temperatures exceed 100 degrees. The Dysfunctional Family HouseIn a shift away from open floor plans, great rooms and shared spaces, many builders are offering his-and-her offices, Internet alcoves, master-bedroom retreats and other walled-off areas to give home owners more privacy. "We call this the ultimate home for families who don't want anything to do with one another," says Pardee Homes CEO Mike McGee about the Ultimate Family Home showcased at the recent International Builders' Show, complete with divided rooms and hidden spaces. Though home owners are paying more for a greater number of rooms and special features, they are not necessarily getting more space. According to NAHB, the living room has diminished in size to make way for other rooms. Both mass-market and upscale builders now offer private areas, a trend that University of Virginia architecture department Chairman William Sherman believes discourages strong family relationships. Home Buying Is Special Challenge for the YoungThough the average first-time buyer is aged 32, the National Association of Realtors® reports that a record 345,000 homes were purchased by buyers in their late teens to mid-20s last year. According to NAR spokesman Walter Molony, "You see a greater number of young people who are mature and who understand that homeownership is the key to building wealth over time." A multitude of low- and no-downpayment programs, as well as financial assistance from relatives, have allowed young buyers to take advantage of attractive interest rates and flee the rental market. Since these buyers depend on near-perfect credit histories to secure financing, experts believe they are more disciplined than their peers when it comes to spending and saving. Mundelein, IL-based lender Kevin McGovern says buyers in their 20s tend to purchase second homes and custom-built dwellings earlier than others because they have had more time to accumulate equity. Many purchase homes at low pre-construction prices or flock to neighborhoods known for rapid appreciation to make the most of their investments. Tablets Offer Great Promise, But Have Some DrawbacksTablet PCs are a great alternative to using a laptop or PDA, but Tablets' drawbacks may contribute to their slow adoption. A case study of Tablets conducted by Overall Laundry Services Director of Information Management Gary Leaf shows that Tablet-based solutions offer some advantages over other solutions. Tablets allow better note taking and observing for users over laptops, and their handwritten input can come in handy during meetings. The Tablet's full screen also offers visibility and entry advantages over the PDA. While Tablet-based solutions may be useful for workers in healthcare, warehousing and sales, the solutions do have disadvantages. The cost of adopting the operating system capable of handwriting recognition can be high, as can the cost of maintaining Tablets' battery life. Overall, however, the Tablet does present users with an option that can improve information visibility, reduce redundancies and increase productivity. The Entrepreneur's Financial-Fitness ChecklistThough many entrepreneurs are intimately involved with the products and services they plan to offer when starting a business, few have the financial background necessary to manage their businesses. Founders should have a working understanding of at least the basics so they can work intelligently with advisers and serve as the first line of defense to ward off potential headaches. The first and most important thing to recognize is the importance of cash, which necessitates a coordination between vendor and customer payments. A financial system should be in place from the get-go, one that will grow with the company and will help measure important indicators of a business' status. Creating a yearly operating and budget plan before the first day of each year is vital. Consistently paying vendors is appreciated, and when seeking payments from customers, do not be shy about asking for short-term payments. Founders should not put up personal property when financing their business and should keep in mind that if a deal sounds too good to be true, it generally is. Advisers should be chosen carefully, and taxes must be paid on time to avoid fines and even legal proceedings. Best Smartphones for Web SurfingThe ideal Web-enabled smartphone would have a large screen, Qwerty-style keyboard, sufficient memory and a long battery life, but most of the smartphones on the market lack one or more of these features. The Palm Tungsten W, for instance, boasts a large screen and Qwerty keyboard, but its processor is fairly slow. Meanwhile, text-entry is made more difficult with the Siemens SX56 because it does not have a traditional keyboard. Users of the Palm and Siemens smartphones will also encounter slow downloads, but they can surf more quickly with the Samsung SPH-i700 or Hitachi G1000 due to higher-speed networks. The absence of a Qwerty keyboard and a small display prevent significant productivity gains with the Samsung smartphone, but the Hitachi G1000 offers users a miniature keyboard, 320x240 pixel display, faster download and operational speeds, a 400MHz Intel processor, a dedicated graphics processor and a slot for additional memory. NAHB Members Urged to Participate in National Recruitment Campaign on April 26More than ever, state and local home builders associations across the country are riding the momentum of National Membership Day, the annual membership event sponsored by Sears Contract Sales, and launching ambitious membership campaigns to reinvigorate their associations. The theme of this year’s membership recruitment and retention campaign is “Relationships That Work.” Last year, National Membership Day brought in more than 7,000 new members, and expectations for this year are greater. NAHB recognizes and applauds each and every member signed up to volunteer in this year’s effort and encourages others to follow suit to help fortify the association’s grassroots membership, which is a source of strength on Capitol Hill. NAHB offers member recruitment and retention resources online, such as Tips for Responding to Membership Objections and sample Phone-a-Thon scripts. For additional resources, click here. “I tell every member I see to participate in National Membership Day,” said Duane Bickett, chairman of the NAHB Membership Committee. “We have to band together and Membership Day provides the occasion to do that. Now is the time to choose your recruiting buddy, plan your strategy and get ready to hit the streets on Membership Day. Working together, we need the support of every single member of our association.” While recruiting new members is the best way for members to participate in Membership Day, other opportunities exist. Contact your local Membership Chair for details; some examples are:
If your local association is not participating in National Membership Day, don’t let that stop you. Individual members can volunteer to call in to the National Housing Center on April 26th on behalf of their association. (Only members of associations who pledge their commitment and call in on National Membership Day are eligible for prizes.) Organize a group of your own to recruit new members. Take the initiative and set the precedent for next year. The call-in number for National Membership Day is 800-899-6242. Be sure to call in between 12 noon and 5:00 pm EST. Prizes for the 2004 National Membership Day competition include:
If you are not yet involved in the National Membership Day activities, it’s not too late. Contact your local to find out how you can participate. New this year, NAHB will Webcast Membership Day festivities. Features will include:
NAHB Councils that are celebrating National Membership Day with competitions and awards include the Remodelors™ Council, the National Sales and Marketing Council and the Women’s Council. For details on these contests, click here. For additional information, e-mail the Membership Hotline or call 800-368-5242 x8440. Housing SnapshotA report from the Labor Department showed that the jobs market finally came alive in March, with the creation of 308,000 new positions on a seasonally adjusted basis. Job creation was also adjusted upward in January and February, bringing the monthly average to 171,000 in this year's first quarter. The good economic news helped nudge up mortgage interest rates in Freddie Mac's weekly index, but the cost of financing remained at levels that are highly favorable for home buying activity. On the lumber front, prices were advancing again last week, following a few weeks of small declines. Framing lumber rose from $377 per 1,000 board feet to $398, according to Random Lengths. The mill price for 15/32-inch 3-ply CDX Southern Westside plywood was $490 per 1,000 square feet, an increase of $25, and Oriented Strand Board was at $495, raising concerns over where prices will head as the peak home buying season moves into full gear. Mortgage Interest Rates30 Year Fixed Rate: 5.52\% Housing Starts: Feb. 2004Total: 1.855\% New Home Sales: Feb. 2004 *1.163 million Existing Home Sales: Feb. 2004 *6.12 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. President Bush Stumps for Housing in New MexicoPresident Bush met with builders, first-time home buyers and local officials and citizens in Albuquerque on March 26 to discuss the Administration’s efforts to promote homeownership. In an outdoor address at the Expo New Mexico state fairgrounds, Bush publicly thanked the members of the Home Builders Association of Central New Mexico for their work in housing their community. The President cited several areas that are also important NAHB priorities: enacting a homeownership tax credit to provide incentives to produce an additional 200,000 affordable homes over five years; making zero downpayment loans possible for those whose mortgages are insured by the Federal Housing Administration; adopting regulatory reform to save small businesses money and eliminate needless paperwork; instituting association health plans for small businesses so that they can pool their risk and find affordable insurance; and passing class action tort reform legislation in Congress. Stressing the importance of an ownership society, Bush said: “We want more people owning something because when someody owns something, they have a vital stake in the future of the country. The more people who own their home, the better off America is. And we’re making good progress. Our nation’s 68% homeownership rate is the highest ever. More people own homes now than ever before in the country’s history, and that’s exciting for the future of America.” Still, the President acknowledged there’s a homeownership gap that exists for minorities, and said that there has been significant progress since he announced in June 2002 a goal of adding 5.5 million new minority home owners in America by the end of the decade. “Since then, more than 1.5 million minority families have moved into houses of their own. And for the first time, most minorities own their own home,” he said. Bush shared a conversation he had with Lori Benavidez, a single mother who recently moved into her own home in Albuquerque with the help of a federal homeownership program. “Here’s what Lori said: ‘I never thought the day would happen when my girls and I would be sitting in our own home. It’s a miracle.’” Homeownership was high on the White House agenda last month. President Bush made similar stops in Pennsylvania and Arizona to tout the benefits of housing and discussed homeownership in a national radio address on March 27. Senate Confirmation of Jackson as HUD Secretary ApplaudedSenate confirmation last week of Alphonso Jackson as secretary of the Department of Housing and Urban Development received a positive response from the nation’s home builders. “In the months that he has been running HUD, Alphonso Jackson has already demonstrated an outstanding commitment to overseeing the nation’s housing policies,” said NAHB President Bobby Rayburn. “We congratulate him now that the Senate has formally confirmed his nomination to the Cabinet post.” Rayburn added that NAHB is looking forward to working with Jackson and his agency “to address the many challenges and opportunities that face our industry, such as the growing workforce housing issue, the continuation of RESPA reform and helping President Bush to achieve his goal of 5.5 million new minority home owners by the end of the decade.” Jackson has served as the acting HUD secretary since Dec. 12, when Secretary Mel Martinez stepped down from the post to run for the open Senate seat in Florida. In nominating him to housing’s Cabinet post, President Bush called Jackson “an experienced executive in the public and private sectors, a man who knows the issues facing HUD and knows how to get things done.” Before taking over the top position at HUD, Jackson served as the deputy secretary for nearly three years, supervising the day-to-day activities of the agency. Previously, he directed the housing agencies for St. Louis, Washington, D.C. and Dallas. Decision on Storm Water Runoff Saves Housing Industry $3.5 Billion AnnuallyIn a victory for the nation’s home builders, the Environmental Protection Agency (EPA) announced on April 1 a final decision to leave current storm water permitting regulations unchanged. NAHB had worked for five years with two Administrations and the EPA to ensure that new “Effluent Limitation Guidelines” would not be imposed on housing. NAHB President Bobby Rayburn praised the Bush Administration for making “the right choice by recognizing the unnecessary burdens of added regulation.” The new rule would have added an average of $1,700 to the cost of producing a single-family house, to the tune of about $3.5 billion a year, according to an analysis by NAHB. “Providing affordable housing for America’s working families is already a national crisis,” said Rayburn, “and having a new rule, in this case, would have been excessive, unnecessary and harmful to both builders and home buyers.” Comprehensive storm water permitting rules from the EPA are already in place to limit storm water runoff from home building sites and protect the environment. Phase I and Phase II permits limit discharges from construction sites that disturb one or more acres of property. Dozens of city, state and county environmental agencies had also submitted comments to the EPA in opposition to the new rule, which was viewed as a needlessly burdensome encroachment on state and local land use planning authority. Local control over storm water permits, NAHB and others had argued, enables regulations to be tailored to local environmental conditions, often with requirements that are more stringent than what would be prescribed under a national rule. “The existing federal permits, combined with flexibility to regulate at the state and local level, help guarantee that we can protect the environment while ensuring that all Americans have a safe, decent and affordable place to live,” said Rayburn. The Administration’s decision last week will enable the EPA to focus on implementing its existing storm water regulations and conducting more educational outreach to the small business and home building communities, he indicated. Commenting on NAHB's involvement in the process that ultimately led to the favorable ruling by the EPA, Chuck Ellison, of Ellison and Associates in North Bethesda, MD, and chairman of NAHB's Effluent Guidelines/TMDL Working Group, cited the association's "great team of builders, developers, associates and staff." "This is a great example," said Ellison, "of how the resources of NAHB — engaged members, dedicated and professional staff and financial resources — can be brought together to focus on a particular issue of concern to the industry. This decision represents a savings to every family purchasing a home throughout America." Builders Blast Inconsistencies in Wetlands RegulationThe Environmental Protection Agency and the U.S. Army Corps of Engineers have a dismal track record for providing consistent and predictable jurisdictional decisions on wetlands permits and instead give property owners the run-around, according to NAHB President Bobby Rayburn. “It is increasingly difficult to get a straightforward answer from either agency to questions as simple as which portions of your property are federally regulated wetlands and which are not,” said Rayburn. He also submitted written comments to the House Subcommittee on Water Resources and Environment for a hearing on March 27. Frequently cited during the hearing was a recent report by the General Accounting Office concluding that the agencies have been irresponsible in their regulation of wetlands and waters of the U.S. under the Clean Water Act and documenting that the Corps districts’ regulatory practices are not even written down. (To read the report, click here and search for GAO-04-297 from February 2004.) At the hearing, it was apparent that home builders and developers are not alone in their frustration over the lack of clear regulatory guidance from the agencies. The National Association of Flood and Stormwater Management Agencies, the Maryland Contractors Association, Bronco Construction and the American Farm Bureau Foundation for Agriculture voiced concern over the vagaries of the wetlands permitting process. “The federal government’s approach to wetlands regulation is controversial and confusing and it is having a direct impact on my operation’s ability to remain a viable economic unit,” said Aldean Luthi, a corn and soybean farmer from Hancock, MN, and a member of the Stevens County Farm Bureau. In his comments, Rayburn asked Congress to urge the EPA and the Corps to provide clear guidance to builders and developers on federal wetlands jurisdiction. In December, the two agencies announced their decision not to conclude a rulemaking process that would have done so. To read the congressional testimony, click here. Under the Site Map, click on “Water Resources and Environment Subcommittee” and then click on “Hearings/Testimony” and follow the March 30 link to “Inconsistent Regulation of Wetlands and Other Waters.” Notice and Opportunity to Repair Laws Continue to Gain GroundBills to create new and enhance existing Notice and Opportunity to Repair laws are making progress around the country. In general, these laws are designed to provide builders with an opportunity to respond to complaints from home buyers about construction defects before lawsuits are initiated. The movement to advance this type of legislation got started several years ago when Arizona, California and Washington passed Notice and Opportunity to Repair laws. To date, 18 states have similar laws on record. Insurers have said that these laws are important and a necessary first step in making general liability insurance more widely available and more affordable. As of April 1, legislation to create new Notice and Opportunity to Repair laws included:
Legislation to amend or enhance existing Notice and Opportunity to Repair laws includes:
For information on specific legisation, contact your state lobbyist. E-mail Sam Leyvas at NAHB for help with general questions about Notice and Opportunity to Repair legislation, or call him at 800-368-5242 x8326. Strange Behavior May Be Tip-Off to Possible FraudThe fifth in a series about preventing fraud from affecting your business. In “Lifestyles Can Be Red Flags: Know the Warning Signs of Fraud,” we examined lifestyle situations that can tempt employees to commit fraud and pointed out some warning signs that often accompany fraudulent activity. In addition to those indicators, certain workplace behaviors can also tip you off that someone may be fleecing your assets. Here are some more warning signs to watch out for: Evasive Behavior Although you should expect all your employees to be completely honest with you, those in sensitive financial positions must understand that they are held to an even higher standard of accountability and disclosure. Be alert to any of the following types of evasive behavior:
Recommendation: Make sure you’ve got a good accounting system in place, that the people who use it are well trained and that they can provide the necessary management reports for tracking your company’s finances. Write reporting duties into employees’ job descriptions.
Response #1: “I don’t know. Do they really seem that high to you? Could the lumber company have changed their pricing structure?” Response #2: “That’s a good question. I’ll take a look at it. By the way, are you planning on taking Fred to the International Builders’ Show with you this year?” Neither response answers your question and both subtly “push” you in another direction without directly refusing your request. You may even forget that you asked the question. Recommendation: Make notes about questions you want answered. Then set a time or date to follow up on the specifics.
Recommendation: When you review information, carefully scrutinize areas that need analysis. Don’t allow yourself to get sidetracked by someone else’s opinions or comments.
Recommendation: If you don’t understand something, keep asking questions until you do. Request pictures, flow charts or written explanations if necessary. If your current bookkeeper or accountant can’t explain it to you, look for outside assistance. It’s your money, so you should be motivated to understand what it’s doing for you.
Recommendation: All of us are occasionally distracted, confused or disorganized. But if you notice a pattern of any of these behaviors, immediately find different caretakers to safeguard your financial and accounting operations.
Recommendation: Remember — it’s your business and your money. Assuming you respect your employees, provide adequate training and compensate them fairly, you have every right to expect full explanations or an immediate, helpful offer to investigate and provide the requested information. Acting Out: Other Odd Traits Possessiveness
Recommendation: Insist that employees take one- to two-week vacations, cross-train others in their job and that their desks and papers remain accessible to the company owner. Signs of Ongoing Stress
Recommendation: No matter how busy you are, it’s important to pay attention to your employees’ emotional states. Ongoing stress can indicate other situations that may pose a risk to your business. Monitor stressed employees closely. Note and warning: After fraud is discovered, company owners and managers often realize they ignored warning signs or didn’t know what to look for. That's why it’s so important to learn about behavior patterns that may precede or accompany fraudulent activity. Please remember, however, that recognizing any of the behaviors discussed above does not mean that fraud is actually in progress. If you suspect an employee of wrongdoing, respect the person’s legal rights and immediately locate a qualified professional to assist you. Read "Protecting Yourself From Fraud: Principles of Self-Defense" for some pointers on how to proceed. Diane C.O. Gilson, CPA, CIA, is a Certified QuickBooks ProAdvisor and MasterBuilder ProAdvisor, author, trainer and construction accounting coach, as well as a frequent speaker at The International Builders’ Show and The Remodelers’ Show. Her firm, Info Plus Accounting PC/CPA, offers bookkeeping and support services to help construction companies do more accurate and timely job costing and run better management reports. Contact Gilson via e-mail, or call her at 734-544-7620. Earlier Articles in this Series
'Managing Your Employees' Available at BuilderBooks.com "Managing Your Employees," available through BuilderBooks.com, helps builders manage the "people paperwork" of their businesses easily and productively. This book will help you create a strong foundation of talented, successful employees. To view or purchase this publication click here, or call 800-223-2665 to order. 'Financing and Cash Management' Available at BuilderBooks.com "Financing and Cash Management," by Dennis J. Rourke and available at BuilderBooks.com, teaches how to master the primary financial concerns of builders — continuity, stability, profitability, investor satisfaction and meeting financial commitments. By combining people and money with a solid business plan, builders can be building high quality, high profit homes far into the future. To view or purchase this publication click here, or call 800-223-2665 to order. 'Accounting with QuickBooks Pro®' Available at BuilderBooks.com"Accounting with QuickBooks Pro® for Home Builders and Remodelers," including a CD-ROM with a trial version of QuickBooks Pro®, is available through BuilderBooks.com. From writing payroll checks to generating up-to-date income statements, this book will help you get the maximum benefit from your accounting system. To view or purchase it online, click here or call 800-223-2665 to order. Business management publications available at BuilderBooks.com BuilderBooks.com also offers a variety of other publications about business management. To view or purchase these publications online, click here. Want more information about effectively managing your business? NAHB’s Business Management Department offers a variety of online resources to help you run your business better and more profitably. Click Business Management Tools for articles about human resources, financial management, sales, production, technology, customer service and other business-related topics. In addition, visit the NAHB Software Users Network Discussion Forum (SUN) to ask technology consultants and other builders what they think of various software packages and applications. Subscribe to NAHB’s Business of Building e/Source NAHB’s Business of Building e/Source is your monthly electronic guide to the hot issues and emerging trends in home building business management. You’ll find practical advice, tricks of the trade and sound business guidance — all delivered monthly, straight to your desktop, in a quick and easy-to-read format. Business of Building e/Source is available free to NAHB members and their employees. To subscribe, click here on the members only side of www.nahb.org. University of Housing Offers Courses on Customer Service and Business Management The NAHB University of Housing offers a course on business management designed to help builders improve their business and profitability. For a list of current offerings, click here. Search keywords: “Introduction to Business Management.” The NAHB University of Housing offers designation programs for builders and remodelers interested in improving their productivity and profitability. Click here for a list of NAHB designation programs. Make Your Connection With www.nahb.org Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available to you 24 hours a day at www.nahb.org. Just click the "Member Log In" button to get started. If you are a member and need information about NAHB products and services, use the NAHB Staff Contact Directory to look up the direct telephone extensions for NAHB staff experts. Recognition Awards a Boost for Smart Growth ProjectsThe scenario is all too familiar to most infill developers. It begins with a great design that fits with the community’s master plan. The planning staff loves it. Even the local politicians acknowledge it’s exactly what they had in mind. Then the local citizens respond. They hate it. They think the density is too high. They worry that it will increase traffic congestion or there won’t be enough parking. The neighbors think the new project just won’t fit into their neighborhood. Thus begins a long and arduous process. Along the way, the politicians face intense pressure from their constituents to halt or downsize the development. The planning staff grows quiet. And in the end, the project that emerges from the sausage grinder of the public approval process can be very different from — and often not nearly as good as — the original design. Two years ago, a group of Washington, D.C., area organizations decided to address the problem. That group, The Washington Smart Growth Alliance (SGA), is comprised of the Urban Land Institute (ULI), the Chesapeake Bay Foundation, the Great Washington Board of Trade, the Coalition for Smarter Growth and the Metropolitan Washington Builders’ Council. In an effort to give political support to well-conceived development projects, the SGA created a smart growth recognition program. By recognizing outstanding project proposals, the SGA hoped to inform regulators, public officials, citizen groups, developers and others of the advantages of such projects, and to give such projects added support during the approval process. “Smart growth recognition gives a developer a lot of credibility when he takes his project before the planning commission,” said Gary Garczynski, former NAHB president and a nationally recognized smart growth advocate. “It makes it easier for local officials to stand up to local opposition, because the project has a legitimate stamp of approval as a smart growth development.” Under the recognition program, each proposed development that submits an application to the SGA is evaluated against a set of objective criteria. An independent, balanced jury evaluates each submission, and a letter of recognition is sent to those developers whose projects meet the demanding standards of the program. The criteria include:
Those projects that receive the recognition can highlight it as they go through the development approval process, and they can use it in their marketing efforts. “This recognition program is just another component in the process of educating the public about smart growth and the importance of supporting those development that turn smart growth theory into reality,” Garczynski said. Twelve Washington-area projects have received smart growth recognition since the program began 18 months ago. Some of those developments are now emerging from the development process and a few have broken ground. Their experiences offer an opportunity to assess the program and consider whether it conveys any advantage to the proposed development projects that receive smart growth recognition. A good example is Station Square at Clarendon, a mixed-use development now under construction adjacent to the Clarendon Metro Station in Arlington County, VA. When completed, the project will include 309 for-sale residential units and 86,000 square feet of retail and office space. “We’ve broken ground. We’re excavating three levels of parking beneath the project,” said David DeCamp, a managing partner in 2900 Clarendon Development Associates. “We were pleased to receive the smart growth recognition. It’s something we believe in, so we crow about it.” “We were facing a little bit of NIMBY resistance,” DeCamp added. “There are some folks you will never sway. But there are far more people who can look at a project and see the potential and understand how it can benefit their neighborhood. Bringing a mixed-use project to the marketplace is the right idea at the right time, especially at metro stations in places like Arlington.” “This is the kind of development that Arlington is famous for,” DeCamp said. That doesn’t mean it’s easy. It doesn’t mean there aren’t naysayers. But the county has a vision and they are willing to work with you to achieve that vision.” The residential units consist of classics and lofts. The classics are traditional condos with crown molding and other high-end finishing. The lofts are less finished, with 10-foot ceilings and exposed ductwork and sprinkler pipes. The retail will be at street level along Clarendon Boulevard and a side street. Above that will be “professional condos” — for-sale office space for professionals who want to build equity in their office space. The smart growth recognition is likely to help his firm as much on future projects as it has on this one, DeCamp said. “We’ll be able to go to a planning director, show that we’ve received smart growth recognition on this project and show what we’ve done here: ‘Look at the animated street. Look at the mix of uses. Look at how this meshes with the other things around it. Look how we’re taking advantage of local transit,’” DeCamp said. “We do smart growth.” Another good example is Chase Point, a multifamily development on Western Avenue just inside the District of Columbia. When finished, the project will include up to 125 condos and a childcare center. The complex is just 250 feet from a Metro station and easy walking distance to upscale shops at the Mazza Gallery and Chevy Chase Center. The developers had wanted to include a significant commercial component, but neighborhood resistance killed that aspect of the project. Still, the high-density, infill project won accolades from smart growth advocates. "The neighbors aren’t going to change their minds because it’s smart growth,” said Kevin Cosimano, principal of the Stonebridge Associates in Bethesda, MD. “But it is important confirmation to the planners and approval bodies that this project really makes sense in this place.” The District of Columbia’s professional planning staff embraced the proposal as smart growth, Cosimano said. “But they have to listen to many constituents and they face a lot of political pressure.” “The smart growth recognition made a difference in the zoning commission,” Cosimano said. “We publicized it, and we’re very proud of it. It was a confirmation of what we were trying to say and trying to achieve.” Seeking the recognition, Cosimano said, was “definitely worth the effort. It continues as you move forward and confirms that you are a smart growth developer.” As more people learn about the program, it will grow in importance as a way of educating the public and of promoting smart growth development, Cosimano said. “I’ve had another developer come talk to me about my application and how we did it. I think you’re going to see more people looking for this kind of recognition for similar projects.” LCOR, a nationally recognized smart growth developer, received recognition for North Bethesda Town Center, a 2.8 million-square-foot mixed-use project at the White Flint Metro Station in Bethesda, MD. When completed, the development will include 1.4 million square feet of residential development, 1.2 million square feet of office space and 200,000 square feet of retail and restaurant space. That project is still in the planning stages, but the developer expects to break ground by the middle of 2005. “The recognition has added a significant amount of credibility,” said LCOR Vice President Mike Smith. "This is a prime example of smart growth. To have an objective organization judge our project and give it smart growth designation has helped us greatly with the public.” “We haven’t had much opposition,” Smith added. “A few folks raised concerns about traffic and about the quantity of apartments and the amount of office space. But in our planning efforts we have worked hard to mitigate 50% or more of the vehicle trips that will be generated by our project. Those mitigation efforts have helped to ease neighbors concerns,” he said. The SGA’s smart growth recognition has made it easier for LCOR to navigate an otherwise very difficult and challenging approval process, Smith said. “It’s a recognition that has some currency,” he said. “Folks understand it and respect it. They have come to embrace the notion of smart growth through the efforts of ULI and the Smart Growth Alliance.” Builders Can Find Big Advantages in Smaller LotsBy Dave Porter The first thing to do is make a mental list of the pros of a small lot and the cons of a large lot. These should be part of a salesperson’s knowledge bank. Too many site agents and builders apologize for the lot size. But lots that conform to GMA do a great service for many people. By building homes close to each other, we minimize urban sprawl. We can house the same number of families, but with less invasive development. Smaller lots accomplish several other things that home buyers don’t realize. For one, they create a sense of community. The advent of the television set changes so much, including the elimination of the front porch as folks moved indoors to watch TV. Now we are seeing a resurgence of the front porch, a great way to meet neighbors as they walk by. So often, communities with larger lots distance home owners from their neighbors. When you live in a community of high density, you will see and meet neighbors. You are more likely to speak to a neighbor who is 25 feet away than one 150 feet away. The biggest advantage to owners of smaller lots is saving time. We are all pressed for time and want to use our time wisely. Forty-five minutes a week in maintaining a yard during peak spring and summer weeks adds up to nearly 20 hours. Imagine what you could do with an extra 20 hours! Consider also the cost and conservation issues of watering the lawn and using fertilizers. Plans can be expensive, and landscape projects can run into the thousands of dollars. A smaller lot allows for a nicer yard, rather than a larger but possibly lesser-quality one. Gardening is therapy for many folks, and using raised garden beds in smaller spaces can easily accommodate this need. Some shrubs are wall and fence growers and even look like trees, creating a nice “tree effect” without taking up the space a normal tree would. When positioning a “space efficient” yard, be sure you rethink the outdoor furniture as well. Instead of oversized patio chairs, consider a small teak table and benches that look nice but take up less space. A bistro set (taller table and two stools) can take up less space than a traditional table and cost less, yet serve the same function. Its novelty can be an attention getter. I recently spoke with Rick Lawton, director of sales at Stafford Homes. Like many other quality production builders, Stafford, too, has had to rethink and reposition selling homes in light of the smaller home sites. Rick says we need to understand that different groups have different expectations. Baby boomers value more space than the “X-ers” or the “Boomer-rangers.” The latter groups have different lifestyle requirements. Builders and site agents who are boomers need to realize that a smaller lot may not be an issue for new home buyers as much as it would be for them. As Rick mentioned, what large lots often offer is privacy. But privacy can still be achieved in a small lot if the home is designed and positioned on the site correctly. Cleverly placed windows and well-positioned outlooks to a focal point can pay big dividends. Windows can be set higher in rooms, for example. Most likely you’ve seen the smaller, two-foot-by-two-foot windows high on a wall. These can provide plenty of natural light without allowing a view of the neighbor’s home 10 feet away. Selling homes on smaller lots is an issue of quality, not quantity. Offer desired features, such as outdoor lighting or carefully positioned plants and water features like a pond or small waterfall. A well-placed trellis and colorful vine can be a focal point. You can also learn great lessons from the art of feng shui. Many of its disciplines are common sense in space management. These specific concepts apply to all home buyers, not just a targeted group. Dave Porter is first vice president in the Pacific Northwest for Countrywide Home Loans, National Builders Division. Contact him by e-mail or call him at 999-877-4879. (dave_porter@countrywide.com) Reprinted from NW Builder Magazine/Builder News
'Building Community' Available Through BuilderBooks.com "Building Community," available through BuilderBooks.com, shows how a community can change the public perceptions of growth and make it easier to obtain approvals and implement good design. "Building Community" shows builders how to obtain approvals for communities and how the design of communities impacts the value of what builders build. This new publication also provides informatin about how to design a community that is sensitive to the environment, respects the neighbors, is financially successful and has the elements necessary to last generations. To view or purchase this publication click here, or call 800-223-2665 to order. Design the Focus of Symposium on Affordable HousingArchitects, housing experts, builders, government officials and scholars gathering at the National Building Museum in Washington last week for a day-and-a-half symposium on “Affordable Housing: Good Design Makes Good Living” reviewed several case studies of well-designed projects that have succeeded in opening up housing opportunities and transforming neighborhoods in both urban and rural settings. While presentations focused on the low end of the market and development that depends on combining funding from a wide range of sources in the government and community, the discussions contained a wealth of useful information for any builder who is interested in reducing housing costs and pursuing technological innovations in design. Full coverage of these reports will appear in the April 12 issue of this publication. Symposium participants reported cases in which progress is being made in meeting the nation’s most critical housing needs, but keynote speakers said that far more must be done to address the problem and that overregulation of housing and resistance to innovative solutions remain major impediments to reducing home building costs. More than 250,000 units of low-income housing would have to be produced for more than 20 years to fill the need, according to the Millennial Housing Commission’s report in 2002. Noting that the Bush Administration has established a goal of creating 5.5 million minority home owners over 10 years, Nicolas Retsinas, director of the Harvard Joint Center for Housing Studies and the federal housing commissioner during the Clinton Administration, said that “one sad reality of 2004 is the lingering disparity among income groups and by race” in homeownership rates. “There would be three million more Afro-American home owners today if they had the same homeownership rates as whites,” Retsinas said. Despite the sustained prosperity of the past 10-11 years and “a remarkable uptick” in homeownership rates, “we aren’t quite able to narrow” that gap, he said, and over this period the difference between white and non-white homeownership rates has been narrowed by only 1%. Much of that difference is due to age and income, but at least one-third of it is not, Retsinas said. NAHB Immediate Past President Kent Conine said that in addition to the plight of those at the lowest income levels there is also “growing recognition that many working families and individuals cannot find adequate housing near their jobs, or at all,” and current housing programs are ineffective in addressing the problems of this “workforce” housing because of elgibility restrictions. He cited an NAHB study last year finding that in the nation’s 25 largest metropolitan areas, “just one-third of homes are affordable to our local heroes — the police officers, firefighters, teachers and nurses.” Conine complained that, “housing is not on the radar screen” because of the strength of the nation’s housing market for the past several years. “When I hear at my city council meetings that it takes a $200,000 home for the city to break even, that gives me a frustrating feeling.” Conine said that he would be able to build a 1,000-square-foot house for $40,000, but the cost of that house would double by the time it got through the approval process. Among the many things that the home builders are doing to create a healthier environment for housing production, Conine said, NAHB will be working with the Department of Housing and Urban Development on its Affordable Communities Initiative, which was formed to work in partnership with states, localities and community interests to help them identify and reduce barriers that are driving up housing costs. “We need a far greater public-private partnership than we have today,” said Bart Harvey, CEO of the Enterprise Foundation. “Money is not enough. We need to recast and rethink our housing policies.” Harvey advocated inclusionary zoning, which he said has worked well in Montgomery County, MD. “The entire community has got to get together and look at the big picture” before it can successfully embark on an effort to meet its affordable housing needs, added the symposium’s moderator, Kent Colton, a senior scholar in housing studies and the Jacob Wertheim Research Fellow for the Betterment of Industrial Relations at the Joint Center for Housing Studies, Harvard University, and executive vice president of NAHB from 1984-1999. Puget Sound Home Demonstrates Green Building ConceptsThose in the vicinity of Issaquah, WA, have one more weekend to visit the Puget Sound Energy Built Green Idea Home to see a hands-on showcase of simple, environmentally friendly design and product ideas. Those who can’t make the trip can still take a fairly comprehensive tour of many of the home’s nearly 100 green building techniques by clicking here. Extensive research of the more than 4,000 King County residents who have visited the home over the last month and a half has found that consumers are most interested in the health benefits of the home — the clean air created by its advanced ventilation system and low emitting paints and finishes. Visitors have also been impressed by energy cost savings and environmental benefits. Ideas included in the home are:
The Built Green Idea Home is located in Issaquah Highlands, which is the first Built Green™ certified community in the Puget Sound area. Many of the features found in the home are also included in other homes for sale at Issaquah Highlands. The home is a collaboration between Port Blakely Communities, Inc., the City of Issaquah and the Master Builder Association of King and Snohomish Counties. Sponsors include Puget Sound Energy, Bennett Homes, Mutual Materials, Whirlpool, Countrywide Home Loans, The Seattle Times Company, Fannie Mae and Windermere. The home is open to the public on weekends from 10:00 a.m. – 5:00 p.m. through April 11 and admission is free. For driving directions and other information, click here.
'Energy-Efficient Building' Available Through BuilderBooks.com In Fine Home Building Magazine's "Energy-Efficient Building," available through BuilderBooks.com, builders learn that energy-efficient houses have more than just cost savings going for them. They can be stunningly beautiful and individualistic and can fit into their surroundings with grace and style. This collection of 31 articles from Fine Home Building shows dozens of ways to design energy efficiency into new construction or renovation. Builders and remodelers describe the latest ideas and techniques. The book also includes super insulation, passive solar heating designs and passive cooling designs. To view or purchase this publication click here, or call 800-223-2665 to order. Show Off That Job Well Done to Get New CustomersThe completed house renovation feels like a winner. Deep in your gut, you know it’s one of the most satisfying projects you've ever finished. Everyone who sees it praises your work. Where do you go from here?
Rather than just walk away from your special project, promote it and let more people know about it. Showing off your work will help build your business. Here are a few marketing ideas to try:
This entire marketing process can be easy, but if you haven’t done something like this before, you may want to do a little groundwork first. Consider these tips to help get you started:
Your work is your livelihood. The best way to bring in new customers is to show off all that you have done and did well. It is okay to toot your own horn. Bill Lazor, CGRA, is a senior brand manager with Simonton Windows, of Parkersburg, WV, and has worked in various marketing capacities during the past eight years. Lazor serves on the NAHB Remodelors™ Council Public Affairs Committee and is chairman of the newly formed Business Associates Committee. Lazor has more than 20 years experience in building products. For more information, e-mail Lazor.
Remodeling Publications and Resources Available Through BuilderBooks.com BuilderBooks.com offers a variety of remodeling publications online. To view or purchase these publications, click here. University of Housing Offers Courses and Designation Programs The NAHB University of Housing offers a variety of business management courses and professional designation programs that set builders and remodelers apart from the competition. For a complete list of current offerings, click here. Pillars of the Industry Awards Recognize Achievement in Multifamily HousingIn recognition of excellence in multifamily development, design, marketing and management, NAHB last week announced the winners of the 2003 Pillars of the Industry Awards. Presented during NAHB Multifamily’s Pillars of the Industry Conference in Palm Springs, CA, the awards honored superior achievement in 28 categories, including the Freddie Mac Multifamily Development Firm of the Year, Property Management Company of the Year and Project of the Year. “It is heartening to see the depth and breadth of talent in the multifamily industry,” said J. Ronald Terwilliger, chair of NAHB’s Multifamily Leadership Board. “These are people who strive for excellence — and achieve it.” Hundreds of entries were received for this year’s awards program. Winners of this year’s awards were: Builder Categories Best Garden Rental Apartment Community: Four Stories and Under, Primary Market Lefevre Corporation Best Garden Apartment Community: Four Stories and Under, Secondary Market Looney Ricks Kiss Best Luxury Rental Apartment Primary Market Mithun Architects + Designers + Planners Best Luxury Rental Apartment Secondary Market AvalonBay Communities, Inc. Best Mid-Rise Rental Apartment Community: Five to Eight Stories Echelon Residential Best High-Rise Rental Apartment Community: Nine Stories and Above Simmons, Vedder & Co. Best Loft Community Creative Design Consultants, LLC Best Mixed-Use Community SP Multifamily, LLC Best For-Sale Multifamily Community: 15 units per acre or less RNM Architecture Planning Best For Sale Community: 15-40 units per acre RNM Architecture Planning STH Architectural Group, Inc. Best For Sale Community: More than 40 units per acre SGN+A Best Student Housing Apartment Community Mithun Architects + Designers + Planners Best Affordable Apartment Community Simpson Housing Solutions Best Site Plan-Urban Meeks + Partners Best Site Plan-Suburban Looney Ricks Kiss Best Repositioning or Rehabilitation of an Apartment Asset The Housing Studio, PA Most Creative Financing of an Apartment Community JMG Realty, Inc. Pillars Project of the Year SP Multifamily, LLC Marketing Categories Best Signage Program at a Multifamily Community Lane Investment & Development Corp. Best Brochure for a Rental Apartment Community Lane Investment & Development Corp. Best Brochure for a For-Sale Multifamily Community Merrick Towle Communications Best Clubhouse/Leasing Center Style Interior Design Best Interior Merchandising at a Multifamily Community Moore Design Group Best Overall Sales or Leasing Campaign for a Multifamily Community Merrick Towle Communications Best Property Web Site Sares-Regis Group Individual/Firm Categories Regional/Multi-Site Manager of the Year Anthony Hogrebe Property Manager of the Year Darlene Manning HCCP of the Year Jose Aponte Multifamily Development Firm of the Year Southern California Housing Development Corp. Property Management Company of the Year Gables Residential
Seattle Apartments Named ‘Project of the Year’ in Pillars AwardsThe Epicenter, Seattle, has been named the Project of the Year in NAHB Multifamily’s 2004 Pillars of the Industry awards. The mixed-use complex in Seattle’s arts district was chosen by the judges from the Pillars winners in all 17 builder categories. The building sports bright colors and a startling array of decorative metal — much like some of the younger neighborhood residents. It includes 150 rental units, ground floor markets, restaurants and a coffee bar. The neighborhood, long resistant to new development, was invited to participate in the development process. The incorporation of neighborhood feedback led to a better project — one that won a community award for exemplary work. The Epicenter is already a local landmark. NAHB Multifamily’s Pillars of the Industry awards honor excellence in apartment design, development, finance, marketing and management. The awards presentation, sponsored by Freddie Mac, was one of the highlights of the Pillars of the Industry educational conference held last week in Palm Springs, CA. The conference was organized by NAHB and co-sponsored by the Mortgage Bankers Association. For additional information about NAHB Multifamily, the conference or the award winners, e-mail Ann Marie Moriarty or call her at 800-368-5242 x8350. Photos © 2003 Randall J. Corcoran. All rights reserved. Washington Builders Defeat Mandatory Fire Sprinklers ProposalBuilders in Camas, WA, had little time last winter — just one week — to respond when they were told that their city council would be considering a proposal to mandate fire sprinklers in new single-family home construction. The mandate, which had the backing of the local fire marshal and several city council members, would have added roughly $2,500 to the cost of an average sized house. Realizing the effect the mandate could have on affordability and consumer choice in the southwestern Washington community, the Building Industry Association of Clark County jumped into action and requested that the city council delay consideration of the sprinkler proposal. The delay was granted. “That bought us the time we needed to push for aggressive consumer education instead of a fire sprinkler mandate,” said Matt Lewis, the association’s government affairs director. The Clark County BIA then contacted its state association and NAHB’s Construction, Codes and Standards department for information about the drawbacks of mandatory fire sprinklers. It also conducted significant research of its own so it could develop an effective rebuttal and education campaign, which it called the Fire Sprinkler Education Program. The fire department's advocacy minimized the added costs involved, embellished life safety issues and even brought in a Canadian national fire official who compared communities without fire sprinklers to “communities that are being terrorized by a serial killer.” In contrast, the industry-created Fire Sprinkler Education Program:
The builders’ program gave the city council a fair and politically attractive alternative to the mandate and the mandate was defeated. The Fire Sprinkler Education Program was successful because it focused on solutions rather than on simply defeating the mandate. By clearly demonstrating its commitment to the community, the BIA earned buy-in from the local fire department, the local Realtors® association and the city council. For its efforts, in addition to achieving its policy goals, the Clark County association and campaign was honored with NAHB’s State & Local Government Affairs Recognition Award. No city in Washington state has sprinkler mandates, and the Clark County builders association’s efforts will likely prevent similar measures from being considered in other area cities.
Save 15% on Payroll Processing with Paychex® Paychex® makes automated payroll efficient and cost-effective for any size organization. NAHB members save 15% on payroll processing charges and setup fees for selected human resource services with Paychex®. In addition to employee payroll checks and statements, Paychex® produces accounting records and management reports, tax payment notices and payroll tax returns. Put Paychex to work for you by calling 800-729-2439. Identify yourself as an NAHB member and use Member Advantage code 5685.Or visit www.paychex.com. 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: Starting Your New CareerYou've done it! Your interview, negotiation and acceptance are completed. You’ve resigned from your old job. You are excited and ready to begin your new job. All your worries are over, or are they? How you approach your new colleagues, and your attitude and behavior during the first few weeks on the job, will set the tone for your whole career. So be mindful of some good business etiquette and proceed cautiously until you determine the "culture" of the office and the behaviors of your peers, superiors and subordinates. Whatever your position, for the first few weeks, there is usually a "honeymoon" period during which you can settle in and become familiar with the corporate structure and key players. It is best to follow the old adage and listen much more than you speak during this time. Do not criticize or compare. Many people fall into the trap of constantly saying, “In my old job we did it this way," before they fully understand the new company's procedures. It is usually better to settle in quietly and learn everything you can before offering too much advice. You will find that new ideas are more readily accepted after you have been absorbed into the mainstream. Another cardinal rule in a new position is not to take sides or be absorbed into different "camps." Never criticize anyone or listen to office gossip, since there is often someone only too eager to descend on a new employee and tell him or her all the good and bad. Which usually means "bad," according to their view. Watch and "learn by walking around" until you have a clear picture of the structure and players. If you are a replacement hire, you may be faced with some negative attitudes, particularly if you have replaced someone who was well liked. Prior to beginning work, you should ask during your orientation interview if there are any special problems you may encounter or anything in particular to be aware of. Remember, a smile and a genuinely sincere attitude will go a long way to win friends. Be sure to take notes during your training and orientation. If you don't understand something — ask — don't assume. You are not expected to understand everything during the first few days. Take this time to study your supervisors and their methods of communication. Do they give instruction verbally or write copious memos? Are they formal and detailed, or very sketchy with details? Learn, or ask, how they like to receive information. Nothing is worse than to burden someone with copious reports when they prefer a mere action outline. On the other hand, a meticulous boss might be very impressed by those same detailed notes. Ask questions often and remember the answers. Learn the parameters of the position early in the game. After you have been on the job for 30 days, take time to personally evaluate your progress, how you feel about your grasp of the position, where you need help if any and how you feel your knowledge and experience might be used to improve or add to the position. Outline your plan for growth and learning. It's not a bad idea to schedule an appointment with your supervisor to discuss your progress in order to fully understand how you are settling in and if the company is satisfied with what you are doing. If there are any minor problems, now is the time to correct them before they become big ones. Beginning any new career step is sometimes a little daunting and very few people enjoy the settling in period. But there are very few problems that cannot be overcome by open communication. Do not procrastinate if you need help or have problems. Seek out someone who can help you find the solution. Work doubly hard during these first few weeks to learn as much about the company and your position as you possibly can, even though much is new. After a while it will suddenly become familiar. Remember that you chose this position to learn new ideas and face new challenges, to increase your knowledge and further your career goals. Resolve to make every experience a learning one, even the unpleasant moments, and you cannot help but succeed. Design as a Career: the Finishing Touch The building industry offers a number of avenues for women with an artistic flair and an interest in design. Among the possibilities are:
Those with an interest, but not established credentials, might want to consider a position as an options coordinator where your role is to help buyers choose the upgrades and options to personalize their new home. Another avenue is bath and kitchen design, where one can pursue a professional designation as a certified designer. Many other options exist within the industry and are worth pursuing as a career. 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. Impact-Certified Window Boasts Traditional Good LooksAt a time when building codes are becoming more and more stringent, especially in coastal areas, it can be hard to find impact certified windows that don’t have unsightly hardware or vinyl parts. Wind-borne debris requirements in the International Building Code (IBC) that have been implemented by a number of states on the East Coast require impact-rated products to be used. The specific test methods, which relate to wind-borne debris criteria, are listed in ASTM E1886 and ASTM E1996-01 and 02. Under the newest and most stringent of these test methods — the ASTM E 1996-02 rating and ASTM E 1886-02 — the highest residential/light commercial application is usually a missile type “D” for Wind Zone 4. To date Kolbe & Kolbe Windows and Doors has achieved this certification on its newest product — the “Sterling” double-hung window. Headquartered in Wausau, WI, Kolbe & Kolbe Millwork Co. is member of the National Council of the Housing Industry — the Supplier 100 of NAHB. Unsightly metal brackets, visible vinyl liners, extra hardware or heavy glazing beads are the usual indications that a window is impact-certified, and that makes the “Sterling” unique. An impact-certified “Sterling” double-hung looks the same as a standard “Sterling” unit, the manufacturer says. The glazing bead and even the glass look alike, and there are no visible vinyl liners or metal brackets. The “Sterling” offers the same protection, thermal ratings, acoustical ratings and energy performance as other impact-certified products in this class, yet it looks like a traditional double-hung window, says Kolbe & Kolbe. Testing was conducted with the minimum Gateway size required for residential units. Additionally, Kolbe & Kolbe says it tests products to the largest catalog size available, which means that the “Sterling” double-hung was tested to a glass size of 40" x 36"; all smaller units qualify. These units were tested for air, water, structural, forced entry and impact/cycling at a design pressure of 65 and achieved certification, Kolbe & Kolbe says. In addition to now being able to enjoy the true natural beauty of an impact-certified double-hung without looking at unattractive hardware or vinyl parts, the manufacturer notes that many of the insurance companies on the East Coast are now offering lower insurance rates if home owners meet the new IBC codes. 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. Take the Test of Time“Manny Bucks,” a well-to-do builder/developer, was telling me his grandiose plans over lunch the other day. A few million here, several million there…the usual. I know Manny well. His work day is typically 12 hours long. You can easily identify him because of the cell phone surgically implanted in the side of his head. His kids get to see him sometimes. Over a mouthful of linguini, I asked, “With all you’ve got on your plate, have you ever taken an accounting of your time? I mean, money is great, but at what cost, personally?” “Oh, I’ve got tons of time,” he replied. “I don’t believe you,” I ventured. “Tell you what, I will come up with a little test — if you’ve got the courage to take it.” “Great,” he replied confidently. “I’ll take any test you conjure up.” The next week we met again for lunch. The following is the two-minute test I prepared for him:
This is what it looked like after he filled in the blanks and did the math:
“Hmmm,” he said scratching his head. “Looks like I only work four hours a day. But I know it’s more like eight or nine.” “You mean 11 or 12?” I countered. “Yeah, well, some days I do work late.” “Here’s my point, Manny. You are considering a new mega-million housing development on the east side. Great. But right now you don’t even have time for your wife and kids. Those missing seven or eight hours have to come from somewhere.” “Okay, I’ll bite. What do you suggest?” “If I were in your shoes, this is what I’d do:
We finished lunch and went our ways. It just happened that I had this conversation with a developer. It could have easily been any small builder, contractor or consultant I know. It could have been you. Time doesn’t care about income. Take the test. (Author’s note: I was so shocked at my own test results, it caused a significant rearrangement of my life — principally shifting time away from work and toward kids and wife. Work can wait.)
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. Help Available for Members Who Host Radio, TV Shows
NAHB Public Affairs is offering assistance to members who host radio and/or television programs about the industry in their local markets. These members will be offered assistance with story development and talking points/issue backgrounders as appropriate. NAHB is developing a network of these members to help provide assistance on an ongoing basis. Network assistance also will include an online discussion forum with other program hosts so they can interact and share ideas. NAHB Public Affairs will also provide help for members interested in starting a radio or television program. They will be offered story and issue development and be able to participate in the online discussion forum, as well. For information, e-mail Stacy Hope or call her at 800-368-5242 x8061.
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