Nation's Building News Online: July 12, 2004

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Vacation Homes Whet the Appetite of Affluent Households, Study Finds

Among more affluent buyers the market for second homes is heating up, according to results of a survey released last month by Centex Destination Properties, the second home and resort arm of Centex Homes.

Conservatively, one in four of those who completed the Internet poll last October indicated some interest in purchasing a vacation home over the next two to three years. Almost all of the households who were surveyed had incomes of at least $125,000 and their median income was $156,000.

Respondents were at a median age of 45; about 30% were under the age of 40; 78% were married and 87% were home owners.

According to projections from Claritas, the number of households with $125,000 incomes will increase from 7.5 million in 2000 to 10.3 million in 2005 to 14.6 million by 2009. Identifying how many in that income group will range in age from 35-65, the research company expects the primary market for potential second-home buyers to double from 5.8 million in 2000 to 11.4 million in 2009.

A survey by the U.S. Bureau of the Census shows that seasonal and occasional housing as a percentage of all housing units has been ticking up, from 4% in 1987 to 4.7% in 2003.

Among the survey findings:

• Respondents were willing to pay an average $350,000 for a single-family house and $300,000 for a condominium or town home. What they were willing to pay varied widely by destination, ranging from $640,000 in Long Island, NY, and $545,000 in Maui, HI, to $185,000 for the Tennessee Lakes area and $205,000 in the Poconos. Roughly 70% said they would consider financing their purchase with a mortgage.
• Fifty-one percent said they preferred a detached home, 25% attached, 14% a site on which to build a custom home and 10% fractional ownership.
• About two-thirds were looking for investment potential and almost as many wanted a location that is convenient to a grocery store and with low real estate taxes. Low upkeep and maintenance was a desirable attribute for more than 70% of those polled.
• Top amenities were walking trails and an outdoor pool. Golf, tennis and skiing were identified as lower priorities.
• Fifty-seven percent of those polled said they were looking for a second home as a place to get away from business pressures.
• About half said that two to four hours was the preferable travel time and 53% would prefer to drive.
• More than 45% said they found a temperate climate year round desirable; more than a third like a place where the seasons change. Almost 15% wanted a place where the winters are warm and about 11% want snow so they can engage in winter sports.

Destinations varied by region, but the top 10 spots for a vacation home were:

• Naples, Marco Island, FL (3.1%)
• Southern New Jersey and Delaware coast (2.9%)
• Florida Keys (2.8%)
• Southern South Carolina coast, Hilton Head and Charleston (2.8%)
• Maui, HI (2.6%)
• Northern North Carolina coast and the Outer Banks (2.6%)
• San Diego and Oceanside, CA (2.5%)
• Northern Sierras and Lake Tahoe (2.3%)
• Capes and outer islands in Massachusetts (2.2%)
• Daytona-Palm Beach FL (1.8%)

“The Second Home/Vacation Property National Study” was conducted by American LIVES, Inc.

Building News Coast To Coast

Nothing Concrete

A global shortage of the powder used to manufacture such concrete items as slabs and driveways has caused a slowdown in residential building activity in Georgia and elsewhere. Orders for concrete that once took two to three days are now taking well over a week — no small setback, considering how the residential construction industry already has to deal with such factors as inclement weather and contractor schedules. In 2003, approximately 38% of the cement Georgia builders used was for home building, trailing only Florida — at 47% — on a national comparison level. In general, the U.S. market also is hampered by China, which is on an even bigger building spree now that its economy is booming and is snapping up 640 million tons of cement each year. While analysts speculate that American demand for cement could decline if mortgage rates rise or if docking fees fall, mortgage rates actually have fallen — defying an artificial hike by the Federal Reserve — in response to reduced inflationary pressures.
Atlanta Journal-Constitution (07/08/04) P. 1E; Stafford, Leon: www.ajc.com

Apartment Market Improves, But New Units May Slow Sector

Reis Inc. reports that the average apartment vacancy rate in the country's 61 top metro areas declined from 7.1% in the first quarter to 6.8% in the three-month period ended June 30. Absorption reached positive levels in the second quarter, as the number of apartments rented during the period surpassed the number that were vacated. Reis researchers forecast that a surge in new apartment development likely will cause the sector's vacancy rate to increase to at least 7.1% by the end of this year — the highest level since 1986 — as the sector continues to deal with fallout from earlier in the decade, when a weak job market coupled with increased homeownership thanks to lower mortgage rates torpedoed much of the multifamily stock in the nation. Looking closer at the second quarter, Reis lists Norfolk, Miami and New York among the markets that logged the largest increases in rent growth in year-to-year comparisons.
Wall Street Journal (07/08/04) P. B2; Smith, Ray A.: www.wsj.com

Cities Rethink Public Housing

In Detroit, developers are planning a couple of specially designed low-income housing projects that feature homes and services for not only senior citizens, but also for the grandchildren that many of them are rearing. The projects are similar to ones already up and running in such other cities as Boston and Buffalo, with similar developments on the rise or nearing construction in Baltimore, Chicago, Cleveland, Nashville, New York City and Sacramento. Donna Butts, executive director of a nationwide advocacy group for grandparents, states, "The apartments in Boston, for example, are built for both age groups, so that you have grab bars in the bathrooms and covers for the electrical outlets." For many, these so-called "grandfamily developments" are attractive not only because of their affordability, but also because they foster a community support system of baby sitters and playmates for the grandkids.
New York Newsday (07/07/04) Schwisow, Adrienne: www.newsday.com

A Home of Their Own

Census data shows that homeownership rates soared 21% between 1993 and 2003 for female-headed households with two or more residents, while creeping up just 0.74% for single female households. According to research analyst Allegra Calder of Harvard University's Joint Center for Housing Studies, higher incomes, delayed marriage plans and underwriting standards that bend to include non-traditional households have made it possible for women to join forces for home purchases. Women who prefer some privacy generally opt for duplexes; condominiums; or three-, six- or 12-flat buildings. Many are discovering that property management is not as difficult as they had originally thought and are sinking their money into multifamily buildings to generate rental income. Though not all co-ownership arrangements work out, the most successful ones involve plenty of communication and planning. Experts urge group buyers to speak with an attorney prior to the purchase to establish land trust agreements that allow them to avoid probate court if one owner dies. They also would be wise to formulate partnership agreements that cover insurance, expenses, investments and the possibility of default, among other things. Frequent meetings also are recommended so that maintenance and other issues can be addressed on a regular basis.
Chicago Tribune (07/07/04) Mikkelson, Katherine: www.chicagotribune.com

Developer Plans Energy Efficient Village

Developer Alan Hoffman hopes to build 735 single-family homes, townhouses, so-called "live-work" units and multifamily structures outside of Santa Fe, N.M. Oshara Village also will feature 235 acres of open space and a commercial component that will give residents the opportunity to live, work and play in a single location. The project will involve passive-solar construction to lower utility bills and the reuse of water in community gardens and other open spaces. Subsidized affordable housing — as well as units priced from $250,000 to $300,000 — will be available, and Hoffman will encourage the creation of homes in varying architectural styles by restricting each builder to six lots spread throughout the development.
Associated Press (07/07/04): www.ap.org

Surprise: Mortgage Rates Are Falling

Mortgage rates started to climb over the past couple months due to expectations that the Federal Reserve would soon boost short-term rates coupled with worries about inflation and reports of an economic rebound. However, indications of weaker job growth drove the average 30-year mortgage rate down to 6.12% on July 7, after reaching 6.49% in May. Additional housing starts and renewed demand for mortgages are expected as a result of the dip in rates, which already has lured some borrowers from adjustable-rate loans to fixed-rate products. Mortgage Bankers Association Chief Economist Doug Duncan believes that rate volatility will make it more difficult for borrowers to gauge the rate cycle, but he expects that rates will remain generally low until the bond market reacts to upcoming reports about economic growth and inflation.
Wall Street Journal (07/08/04) P. D1; Simon, Ruth: www.wsj.com

Study Concludes Productivity Is Up, Just Not Enough

Haskell Co. Chairman Preston H. Haskell says that the 30% increase in construction productivity over the past 40 years is not good enough to keep up with other industries, and he has published a study that finds that costs in dollars per square foot for similar buildings have fallen. Haskell's view goes against the popular metric of civil engineering professor emeritus Paul Teicholz, who found that the industry's productivity declined, on average, almost 0.5% per year between 1964 and 1998. Haskell says that the measure of constant contract dollars does not correctly measure the tangible output of the construction industry or take into account enhancements in quality or the performance of buildings. He believes that the real cost of construction materials and the use of newer, lower-cost materials has reduced the cost of real materials by 25% over the past four decades. Gilbane Building Chairman and CEO Thomas Gilbane Jr. says that he agrees with Haskell, noting that projects are being completed more quickly and with higher quality. The Civil Engineering Research Foundation is putting together a collaborative effort to find the best way to measure construction productivity.
ENR (07/05/04) Vol. 253, No. 1, P. 18; Tuchman, Janice L.: www.enr.com

Bill May Give Tax Break to Builders

A bill that has been passed by the Michigan House of Representatives and is now pending in the Senate would allow builders developing single-family homes or condominiums to receive the principal residence property tax exemption, also known as the homestead property tax exemption. Under the existing law, residential builders and developers must pay the non-homestead property tax rate on newly developed properties until they are sold. This extra cost ends up being passed on during settlement to the consumers who buy the real estate that was taxed under the higher non-homestead rate. The new law, therefore, would reduce costs for both builders and home buyers. The legislation was sponsored in the House by Republican Reps. Joe Hune and Chris Ward and is also being supported by the Michigan Association of Home Builders, the Michigan Association of Realtors® and the Home Builders Association of Livingston County. State Sen. Nancy Cassis says the Senate Finance Committee is not likely to conduct a hearing on the legislation until fall, at which time the bill's impact on state tax revenues will be considered.
Detroit News (07/06/04) Ramsey, Duane: www.detnews.com

Two-Way Streets: How Britain and the U.S. Are Looking Up to Urbanism

U.S. cities and newer British towns are similarly developed, with planners and architects from each country drawing inspiration from the other. "We used to visit each other's places frequently," notes Andres Duany, who helped found the Congress for the New Urbanism in the United States in 1993. Duany and other American planners modeled many projects on British garden cities and new towns established after World War II. British architect Ebenezer Howard based the garden cities he helped develop on the informal plots and landscaped roads he saw while working in Chicago in the late 1800s. However, the United States uses planning codes to quickly approve projects; while British officials depend on less efficient, informal guidelines. As a result, Duany believes the British planning system has slowed development and sparked an affordable-housing crisis.
London Guardian (07/07/04) P. 2; Hetherington, Peter: www.guardian.co.uk/guardian

Build It, They Will Haul It Off

Sacramento, CA's home construction boom has ignited a wave of thievery, as construction sites are being robbed of equipment and other items. Between 15,000 and 16,000 homes are being built annually in the six-county Sacramento area. California is fourth in the United States in terms of frequency of heavy equipment thefts. Overall, the value of stolen heavy construction equipment in the nation has been around $1 billion annually. There are many valuable items at home construction sites that can easily be resold, including lumber, appliances and carpeting. Home construction sites also frequently lack neighbors to report questionable activity. Some builders have hired security guards or are installing security cameras in an effort to deal with the problem while others have turned to just-in-time deliveries to close the window of opportunity.
Sacramento Bee (07/05/04) Louey, Sandy: www.sacbee.com

Service Base Drives June's Job Growth

The U.S. Labor Department reports that hiring in the construction industry was flat in June as white-collar and service professions led the nation in job growth last month. The construction industry was responsible for much of the employment gains in the United States during the downturn because of the strong housing market. Over the past three months, the construction industry has added some 120,000 jobs. However, as mortgage rates start to increase, and as the housing industry slows, hiring in the construction sector is expected to decline.
USA Today (07/05/04) Kirchhoff, Sue: www.usatoday.com

A Place to Live, Or a Place for Living?

Many new developments feature computer intranets that make information about community activities, home owner association meetings,and nearby development plans, among other data, accessible to residents. Developers of Grand Hampton in New Tampa, FL, are expanding on the traditional intranet by using profiles to help residents of the 1,100-home community locate others who share their interests. Grand Hampton's intranet and clubhouse are examples of "third places," a concept coined by sociologist and author Ray Oldenburg. According to Oldenburg, people spend much of their lives in their homes and workplaces as well as third places like cafés, salons and other community gathering spaces. Oldenburg shuns zoning laws that prohibit the mixing of residential, commercial,and retail components; rather, he notes, third places create a sense of community, foster relationships among residents of all ages and offer entertainment.
Scripps Howard News Service (07/05/04) Stark, Judy: www.shns.com

House Coating Better Than Paint for Heat Protection

Florida-based Textured Coatings of America has adapted military technology for residential use and created a reflective house coating that aims to replace exterior paint. It reflects 60% more ultraviolet rays than conventional paint, cooling the home's surface temperature by upwards of 40 degrees. Unlike paint, the coating does not fade; seals out moisture; protects wood siding from deterioration; and does not have to be frequently reapplied. Given that the coating must be applied with a professional-grade sprayer, it is not a recommended project for do-it-yourselfers.
Associated Press (07/05/04) Bradley, David: www.ap.org

New Cell Phones Get Tiny Keyboards

Cell phone manufacturers are adding miniature keyboards to their devices to facilitate text messaging, e-mail and Web surfing. Both Motorola's A630 and Nokia's 6810 come with keyboards that are revealed when the phones are flipped open. Users can also type messages on any flat surface using Samsung's tiny laser projector, which uses Bluetooth technology to inform the phone of every keystroke.
USA Today (07/01/04) Maney, Kevin; Baig, Ed: www.usatoday.com

Thumbs Up for HP's Pocket PC

PDA users who have difficulty writing with the traditional stylus might want to consider Hewlett-Packard's new iPAQ h4355, which features a thumb keyboard for the composition of e-mail messages and personal notes. The device is the only one of its kind to include a built-in keyboard, and it also boasts built-in backlighting, rounded keys and a longer battery life than other Pocket PCs. Moreover, it is equipped with both Wi-Fi and Bluetooth technologies to facilitate wireless Internet connections. The $450 device comes with pocket versions of various Microsoft programs and a tool that displays all applications in use.
Small Business Computing (07/01/04) Miller, James Alan: www.SmallBusinessComputing.com

Knowledgeable Insurance Pros Can Help Solve Liability Insurance Woes

Using the resources of a knowledgeable insurance professional can help builders weather today's insurance liability crisis and position themselves for when the market begins to improve, according to a new brochure from NAHB.

"Insurance professionals, such as brokers, direct writers and independent agents, have an important role to play in helping builders through the current crisis," the publication says. "However, to do so, the insurance professional must have a high level of building industry knowledge and experience, as well as access to all quality insurance markets, which include both national and international insurance markets so that all possible insurance alternatives are in play."

To download a free copy of “How Knowledgeable Insurance Professionals Can Help Builders Survive the Liability Insurance Crisis," members of NAHB can click here.

The publication describes several ways in which an insurance professional can help builders:

• Evaluating the builder’s insurance coverage needs and potential coverage alternatives. This can enable the builder to decide how much risk he should retain and the appropriate manner in which to do so.
• Promoting relations with underwriters. Professionals can help builders prepare for insurance much earlier than in previous years and assemble a persuasive submission for the underwriter. Along with the usual numbers on losses, sales, pro forma construction values and the like, it is now just as important to provide detailed information about the builder's quality control programs and other risk reduction.
• Presenting the builder's claims history in the best possible light. If a builder has a good history, an insurance professioinal can help explain factors that have kept claims low — such as long-term relationships with a stable group of contractors and experienced superintendents that have kept quality high; or an outstanding customer service operation that has prevented small problems from escalating into lawsuits. Losses similarly need to be explained. They might be attributable to a one-time event such as a hurricane or the failure of an architect or a product that the builder no longer uses. 
• Assisting in non-insurance risk management efforts. Beyond procuring insurance, "the insurance professional can assist the builder with loss control and safety expertise, claims handling assistance, input to the builder's counsel in revising construction contracts and assisting in implementing programs for obtaining proper certificates and additional insured endorsements from contractors and design professionals.

Beyond the new brochure, NAHB continues to try to resolve the liability insurance crisis through other methods, including partnering with the Marsh global insurance and consulting firm in an effort to develop new GLI products that will meet NAHB members’ needs

The association’s relationship with Marsh has three main goals:

• To produce an accurate national picture of the loss experiences of the residential construction industry through comprehensive data collection
• To utilize actual loss experience and exposure data to develop new GLI products for NAHB members
• To structure any new GLI products so that they can be purchased from state-licensed local insurance agents with whom NAHB’s members already do business

An intense effort to gather insurance and loss-experience information from NAHB builder, remodeler and trade-contractor members is currently underway. Association members are being urged to complete an insurance survey and to send a consent letter to their insurance carrier giving the carrier permission to share loss information with Marsh. To participate in this survey, click here.

(To read the President’s Message on this issue, click here.)

For more information about NAHB’s GLI initiative, click here, or e-mail Blake Smith or call him at 800-368-5242 x8583. For specific questions about the current data collection initiative, contact Clayton Traylor, x8490, or Brett Diggs, x8453.

Housing Snapshot

Mortgage interest rates actually declined a bit last week following the first move by the Federal Reserve Board to gradually push up interest rates as a defense against a resurgence in inflation as the economy gets back to operating at full throttle. The financial markets had expected to see an interest rate hike for some time before the Fed's decision, and those expectations were reflected in mortgage rates before the announcement was made. Also, disappointing job creation numbers in June added to recent speculation that the pace of economic expansion has already started slowing down some and that it may still be too early to sound the all-clear on the employment front. New applications for mortgages jumped in the week ended July 2 in response to the downturn in interest rates, but the cost of home financing is expected to continue its slow upward climb as the year progresses. Not much was happening last week on the lumber price front. The cost of framing lumber was $405 per 1,000 board feet, unchanged from the prior week. The price of 15/32-inch 3-ply CDX southern west-east plywood was $295 per 1,000 square feet, also a replay of the previous week. Oriented strand board prices dropped $10, to $290.

Mortgage Interest Rates

30 Year Fixed Rate: 6.01\%
15 Year Fixed Rate: 5.42\%
1 Year ARM: 4.05\%

Housing Starts: May 2004

Total: 1.97 million\%
Single Family: 1.64 million\%
Multi Family: 317,000\%

New Home Sales: May 2004 *

1.369 million

Existing Home Sales: May 2004 *

6.80 million

* Seasonally Adjusted Annual Rate

Please Take the Time to Help Us Solve the GLI Crisis

Fellow builders, it’s time for action.

It’s time for us to fill out our general liability insurance (GLI) surveys and send in our consent letters. It’s time for each of us to do our part to help solve the home building industry’s GLI crisis.

Recent surveys show that GLI is our members’ number one concern. It’s easy to see why. GLI premiums have risen 10-fold in some areas. Many policies have so many exclusions that the coverage is ineffective. And in some states, it’s almost impossible to get any GLI coverage at all.

NAHB members have made it clear that they want the federation to do something to solve this GLI problem. In response, NAHB has entered into a strategic partnership with Marsh, the insurance and consulting firm, to gather loss information about the residential construction industry, to analyze that data to better understand the industry’s risk management needs and to use that analysis to develop new, cost-effective GLI products.

Last month NAHB and Marsh sent an eight-page mail piece to 55,000 builder, remodeler and trade contractor members. The mailer included a survey, a model consent letter giving insurance carriers permission to share a builder’s loss information with Marsh, and information about NAHB’s GLI initiative. If you didn’t receive the mailing, you can find the survey, model consent letter and other information at www.nahb.org/gli.

It seems to me that anyone who recognizes that our industry is experiencing a GLI crisis ought to take half an hour to fill out the survey and send in the consent letter.

If you need help with the survey, ask your insurance agent for assistance. You can find additional information about this initiative at www.nahb.org/gli. If you want to speak to someone at NAHB, please contact Clayton Traylor at 800-368-5242 x8490 or Brett Diggs at x8453. If you need a copy of the survey and the model consent letter, you can find them on NAHB’s web site or you can call Blake Smith at x8583.

If GLI costs are eating into your profits, then please participate in this effort. If you’re “flying solo” — doing business without any GLI coverage — then please participate in this effort. If you’re worried about how much your premiums will rise the next time you have to renew your coverage, then please participate in this effort.

Please don’t put this off. For many builders, we’re talking about thousands of dollars per year. We’re talking about the stability of your business. We’re talking about the long-term strength of our industry.

Take an hour and make a difference for your business and the home building industry.

It’s time for action.

Flurry of Amendments Delays Tort Reform Effort in the Senate

Legislation supported by NAHB to rein in class action lawsuits in state courts failed on a largely party-line vote on July 8, apparently ending prospects this year for enactment of sorely needed tort reform.

Going into debate, the “Class Action Fairness Act of 2004” (S. 2062) had the backing of enough senators to guarantee its passage, but the measure became bogged down by a number of contentious and unrelated amendments.

Democrats were seeking to use the bill to increase the minimum wage, address global warming issues and extend the assault weapons ban that expires at the end of the year. Republicans saw an opportunity to submit proposals on climate change and granting temporary legal status to undocumented workers.

Senate Majority Leader Bill Frist (R-TN) responded by cutting off debate on all of the amendments and filing a procedural cloture motion requiring 60 votes to approve the legislation.

Only 44 senators voted to take up the bill, 16 short of the votes needed, while 43 voted against it.

The House has already approved its version of the bill, but with the November elections coming up fast there doesn’t appear to be enough time for the Senate to return to the issue during its current session.

To read the Senate legislation, click here and enter S. 2062 in the box at the upper left.

For further information, e-mail Jim Tobin at NAHB, or call him at 800-368-5242 x8258.

White House Would Be a Hot Property on the Open Market

Being able to call the White House home is an incentive in itself for seeking the presidency of the U.S., according to research by HouseValues Inc.

According to a story appearing in the July 7 issue of Building Online, leading real estate agents across the country were asked to review price-per-foot data and the home features and historic significance of the White House to determine its asking price.

The prominent piece of real estate at 1600 Pennsylvania Avenue would be listed for $106 million, the survey concluded.

With 10% down, the home’s purchaser would need an annual salary of at least $18 million to qualify for a jumbo 30-year, fixed-rate loan at 7.5% to buy the 132-room house. Or they might have to consider turning it into a bed and breakfast.

More Economists Discount Doomsday Housing Bubble Scenarios

Recent economic analysis suggests that housing prices are in little danger of tumbling as the Federal Reserve pursues a new path designed to hold inflation in check by pushing up interest rates in small increments.

A report appearing last month in a publication of the Federal Reserve Board of New York — “Are Home Prices the Next ‘Bubble’?” — concluded that there is no imminent danger of a collapse in housing prices that would harm the U.S. economy.

If the economy falls into recession, which does not appear to be a prospect for the immediate future, then there could be some moderate housing price declines, the report says, primarily along the East and West Coasts, where it is difficult for the housing supply to keep up with demand because of a restrictive environment for new construction.

“Our analysis of the U.S. housing market in recent years finds little evidence to support the existence of a national home price bubble,” write Jonathan McCarthy, a senior economist, and Richard W. Peach, a vice president, at the Federal Reserve Bank of New York.

“Rather, it appears that home prices have risen in line with increases in personal income and declines in nominal interest rates,” they write. “Moreover, expectations of rapid price appreciation do not appear to be a major factor behind the strong housing market.”

While low mortgage interest rates have provided a major boost to the nation’s housing markets, even under the Federal Reserve Board’s new policies, mortgage interest rates are expected to remain at fairly affordable levels, NAHB President Bobby Rayburn told members of the press at PCBC in San Francisco last month.

Even in a state that would appear to be most susceptible to a bubble problem because of a surge in home prices in the past few years and extremely formidable regulatory barriers for new residential construction, Alan Nevin, chief economist for the California Building Industry Association, discounts fears of a collapse.

“Based on the state’s population growth of nearly 600,000 a year, combined with the continuing lack of enough homes and apartments to meet the demand, there is little chance that the housing market will collapse,” Nevin said. “Standing inventories of new homes are essentially zero. You can’t have a housing bubble if we aren’t building enough houses to handle the demand.”

Speaking at a PCBC presentation on the state of the nation’s housing, William Apgar, senior scholar, Harvard Joint Center for Housing Studies, said there will be no significant erosion nationwide in home prices, although they will slow down from last year’s increase of 5.9%.

Apgar also reminded his audience that “homes are being bought by people at the top half of the income distribution,” where incomes did not decline during the recession. Incomes should now be growing faster as economic growth moves forward.

Also on the PCBC panel, Kenneth Rosen, chairman of Rosen Consulting Group in Berkeley, CA, suggested that inflation could move into the 4%-5% range, which might result in higher interest rates than currently anticipated.

With housing prices rising by 60% and more over the past three years in California’s best markets, Rosen said that he believed that the state’s housing industry has just about reached its peak levels.

However, he acknowledged that it will take another recession and higher interest rates to trigger a significant adjustment in prices.

In California and elsewhere, the high cost and limited availability of land have been driving housing costs upward, Apgar added.

Mark Your Calendar for NAHB's Fall Construction Forecast Conference

Get the latest forecasts on housing starts, project budgets and other economic bellwethers of the housing industry at NAHB's Fall Construction Forecast Conference at the National Housing Center in Washington, D.C. on Oct. 27. Click here for more information.

Employer Assisted Housing Among Private Sector Strategies Addressing Affordability Issue

A recent report from the National Housing Conference (NHC) focuses on how the private sector can participate in housing and community development activities and expand homeownership opportunities for low- and moderate-income families.

Information in the publication, “Private Sector Partnerships: Investing in Housing and Neighborhood Revitalization,” was derived from discussions at a series of Senior Executive Roundtables designed to reach “business and civic leaders around the country who are increasingly making the connection between affordable housing and their community’s future economic and social well being.”

The new report provides examples of how employers are helping to expand housing opportunities for their workers at Fannie Mae, and in Chicago, Milwaukee, Seattle and Portland, OR.

Also included are discussions on the creation of state incentives for the removal of local barriers to the construction of affordably priced housing in Massachusetts and public-private redevelopment efforts in San Diego and the Phillips neighborhood, south of downtown Minneapolis.

“With federal spending cuts greatly reducing the role that government programs have historically played in providing affordable housing, private sector partnerships are without question proving highly effective and are growing in popularity as a result,” said NHC Chariman G. Allan Kingston, president and CEO of Century Housing.

“Ultimately, our goal is to bring the related strategies and lessons learned in this new report to a nationwide audience so that companies, and the communities they serve, are provided with the tools and resources needed to succeed.”

“In addition, by highlighting the advantages of employer assisted housing programs, NHC is certain that companies and organizations will be quick to realize the benefits, not only to their employees, but to their bottom-line through less turnover, as well as improved morale and productivity,” Kingston said.

Inclusionary Zoning Seen as a Poor Cure for California's Affordable Housing Shortage

Inclusionary zoning policies that require developers to sell a certain percentage of the homes they build at below-market prices to make them affordable for people with lower incomes have been a big bust in California, according to the Reason Public Policy Institute.

In a report released last month, “Do Affordable Housing Mandates Work? Evidence From Los Angeles County and Orange County,” price controls were found to be exacerbating the problem they were supposed to solve.

Price controls have actually produced remarkably few affordable units at the same time as they have increased costs for builders, home buyers and governments and discouraged the production of new housing, the report concludes.

About 20% of the state’s communities now have inclusionary zoning, and the trend is escalating as chronic housing shortages cause prices to rise, the report says. Between 1990 and 2003, the number of localities in California resorting to these mandates tripled — from 29 to 107.

The Reason report found compelling evidence that the approach is a poor substitute for policies designed to ease governmental restrictions on the supply of new housing:

• Inclusionary zoning produces few units. In the 12 cities in the two-county area studied, only 6,379 affordable units were produced, and 70% of those were in Irvine. “After passing an ordinance, the median city produces less than eight affordable units per year,” far below the number needed.
• Inclusionary zoning has high costs. In half of the jurisdictions studied, the cost associated with selling each inclusionary unit exceeded $575,000. In current prices, the cost of inclusionary zoning in the average jurisdiction has been $298 million, bringing total costs to date for Los Angeles and Orange Counties to $3.9 billion.
• Market-price housing becomes more expensive. The prices of new homes in the median city increase by $33,000-$66,000 because of inclusionary zoning, the report found. That amount jumps to more than $100,000 in high-cost cities such as San Juan Capistrano and Laguna Beach.
• The mandates decrease new housing production. In the eight cities where there was sufficient data, researchers found that housing production decreased by 17,296 units, or $11 billion, in the period following adoption of inclusionary zoning compared to the seven-year period prior to their implementation. Those cities produced only 770 affordable units during the seven years when the mandates were in force.
• Inclusionary zoning takes a toll on government revenue. Because inclusionary zoning lowers assessed values and restricts resale values for a number of years, the report estimates that $752 million in tax revenue has been lost.
• Price controls are not addressing the problem. The report says that one study found that 90% of the difference between physical construction costs and the market price of new homes can be attributed to land use regulation.

The new Reason report follows up on a similar study it released in the spring on inclusionary zoning in the San Francisco Bay Area, where cities starting adopting it in 1973.

To date, the 50 cities in that area with inclusionary zoning have produced fewer than 7,000 affordable units, averaging only 228 units. At current rates, the zoning will only produce 4% of the estimated 24,000 affordable housing units the region needs annually, according to the earlier report.

From 1990-2000, the Bay Area added 550,000 jobs but only 200,000 new homes, only about 55% of the housing that was needed to accommodate that increase in employment, according to the California Department of Finance.

Why Bother to Join the Builders Association?

A few years ago, I was teaching a Certified Graduate Remodelor™ (CGR) course for a successful local when a member of the class asked if he could “buy my breakfast and pick my brain.” Curiosity had brought me to the brink (like the cat) on several occasions, but I survived and this turned out to be one of those times.

This young man was a framing subcontractor doing about $300,000 per year and making good money. He felt that framing, while lucrative, was not building a company. He was trying some remodeling on his own, but couldn’t make it profit-wise. What really hurt was that he was making good money as a framer, so he couldn't reconcile not doing that to become a remodeler.

As I recall, his leading question was, “What am I doing wrong?” After a few basic questions, my answer to him was, “Just about everything but framing.”

He was very good at estimating and running his framing company, but he was trying to do the remodeling by being right in the middle of things. As long as he ran the field, he was limiting how much work he could do, thereby concentrating his overhead on too little work.

He needed to step away, take off his tool belt, put down his hammer and run the company. I suggested a simple paper trail system my company had developed over the years.

When I said he was doing almost everything wrong except framing, I neglected to say that he was also being a little skeptical about the value of his NAHB membership. He did believe in asking questions to learn.

Well, he stayed with it, earned his CGR, stayed active in his local, volunteered on some committees and gave his time. He was giving, but he was also getting — getting experience, getting answers and networking with some of the best professionals in his market.

Did it pay off? You might say so. He told me recently in a CAPS (Certified Aging in Place Specialist) class that this year he will do several times the gross business he was doing at the time of our “breakfast” — and at a gross margin that made me green with envy.

And did he drop out of the local’s activities? I think not. This year he is vice chairman of his Remodelors™ Council and won the Bryan Patchan Scholarship for national leadership to gain experience at the national level.

If you don’t think he gives his local a lot of the credit for his success, ask him. He’s a remodeler through and through. He’s Steve Scheipeter, CGR, CAPS of the S. W. Scheipeter Construction Company, member of the Home Builders Associaton of Greater St. Louis.

While a great success story, it is not exclusively his. Steve is just one member who took full advantage of the benefits of his NAHB membership. Are you?

MM (Mike) Weiss, CGR, CGB, GMB, CAPS, president of Weiss & Company, is the immediate past president of the national Remodelors™ Council. Weiss tours the country teaching both CGR and CAPS courses to hundreds of professional remodelers a year. For more information, e-mail Weiss.

These Marketing Truisms Will Help Increase Your Market Share

There are several marketing truisms I’ve learned in the pursuit of selling and marketing homes in markets across the country. Below are a few of the most important:

• •  Increase your market share through consumer networking. Ask for referrals from every prospect and buyer. You deserve the referrals.
  
  
• •  Increase your market share through Realtor® networking. These professionals have a fantastic network of associates. They are a gregarious group who are motivated to sell.
  
  
• Increase your market share through trade association networking. There are hundreds of trade associations in most of the major metropolitan areas, as well as in many secondary markets. Participate. The members buy homes too.

• Increase your market share through retail business-to-business networking. Your local supermarket may have 100 employees. Your local hardware store may have 50, etc. Market your product to all of your neighboring businesses and subcontractors.
  
  
• Increase your market share through the use of other people’s money. Create marketing plans that incorporate cross marketing whereby you obtain and utilize the money from your vendors, subcontractors, manufacturers and lenders to enhance your marketing campaign.
  
  
• Increase your market share through continual evaluation of the marketing mix. Evaluate the plan of action periodically to ensure that it is working effectively. Improve the plan with the points that work and try concepts that you think will help the team.

Best in American Living Award Deadline Extended

Entries for the 2004 Best in American Living Awards (BALA), the most prestigious new home design competition in the home building industry, have been extended to the end of the month.

• Entry notebooks are now due: Saturday, July 31
• Entrants much register by: Friday, July 16

Co-sponsored by Professional Builder magazine and NAHB, BALA is open to builders, architects, designers, developers, land planners and interior designers.

Now in its 21st year, BALA has grown to 41 categories, ranging from single-family attached and detached homes in a variety of sizes, to custom homes, rental developments, best community and one-of-a-kind spec homes.

The competition also includes the Best Affordable Home category, the U.S. Department of Housing and Urban Development Secretary’s Award for Excellence and the Best Smart Growth Community award.

Additional design categories include best kitchen, best bath, best specialty room and best detail.

Entries are judged on: exterior design/curb appeal, interior architecture and interior design, sales success of the product, construction quality and cost efficiency, and the site plan.

Entrants are advised to submit good photographs along with their entry notebook so that the judges can evaluate architectural elements of the project.

Floor plans are evaluated for their livability; considered are such elements as accessibility of the kitchen from the garage, traffic flow through the home, the relationship of formal to informal space and how adult areas relate to those for guests or children.

Entrants are also asked to identify their market; judges consider the plan within the context of the identified market to ensure it makes sense for the region and has market acceptance.

Winners will be announced at the International Builders' Show in Orlando, FL. Winning entries will also be displayed on the Professional Builder Web site, HousingZone.com, for up to one year.

For information, eligibility requirements and application forms, click here, or contact Professional Builders' Judy Brociek (630-288-8184) or Colleen Paez (630-288-8168) or Michelle Persinger of NAHB at 800-368-5242 x 8343.

Builder Bright Ideas: Two (Inexpensive) Ways to Show Customers You Care

The personal touch goes a long way with home buyers even after they’ve moved in. Try these subtle marketing strategies to demonstrate that you care — and to net a few more referrals:

• Send monthly postcards to past customers reminding them that certain home maintenance activities need to be done. Preprint the cards, leaving space for personal messages such as, “How are the kids?” or “How was your vacation?” This is an inexpensive way to keep your name in front of your best referral — a happy past customer.
  
  
• After a major rainstorm, call your customers to check if their basements have leaked. If a customer’s basement did leak, you’ll wind up hearing from the customer and fixing the basement anyway. If it’s dry, you are a hero for checking. Either way, it’s a win-win situation.

You’ll find hundreds of terrific tips on accounting, personnel, customer service, sales and marketing, management, trades, production and design in "More! Management Ideas That Work" from NAHB’s Business Management Department. The book costs $25 for NAHB members and $31.25 for non-members. Call 800-223-2665 or select this link to order it online.

Build Your Knowledge at the Custom Builder Symposium

Custom home clients continually raise the bar on what they expect from their builders and their finished home. The 2004 Custom Builder Symposium gives custom builders the opportunity to expand their knowledge base, deliver on their clients’ expectations and ensure profitability.

The symposium will be held Nov. 12-14 at the Renaissance Esmeralda Resort and Spa in Indian Wells, CA. The theme this year is “Beyond the Tool Belt.”

New this year:

• Keynote speaker Bryan Williams, of The Ritz-Carlton, will share his organization’s best practices and explain how to create a culture of service excellence.
• Certified Graduate Builder (CGB) designation courses will be offered during the symposium at no additional charge. The courses also are approved for Certified Graduate Remodelor™ (CGR) credit.
• Daily roundtables will provide the opportunity to discuss hot topics and solutions to business challenges with other custom builders.
• The first ever symposium golf tournament will be held at the challenging Ted Robinson-designed course located at the resort.

The resort has a full-service spa and fitness center and there are opportunities to explore Palm Springs via horseback tours of nearby Indian Canyons or by hot air balloon over the Santa Rosa and San Jacinto Mountains, and to view the area’s most innovative custom homes along the Andersen Home Tour.

Register today and save up to $50. Go to www.nahb.org/custom to register online or for more information, e-mail The NAHB University of Housing registrar or call 800-368-5242 x8338.

How to Turn Boomer Women Into Satisfied Customers

Many boomer women suffer from an inner conflict they may not be aware of — the desire to be in charge. This can often surface when they’re buying a new home. Making a new home purchase is the biggest financial investment of their lives. It’s their nest and momma runs the nest.

But unlike birds, most boomer women can’t build a new home themselves. Herein lies the builder’s challenge: make each woman feel she has a vital role in the design and detail of her home, while also making her feel secure and grateful that you are providing the expertise and able leadership she needs.

Respect Her Values

The most profitable and effective way to work with a boomer woman starts with your awareness and respect for her values. Understand the details and importance of each design element when creating floor plans, especially universal design.

Keep in mind, without ever having to say it, that this is her last home and it must meet two primary needs. It must allow her to live luxuriously and securely, and to age comfortably and with dignity.

The boomer woman also plans to remain active and social; she likes walking trails, swimming pools, clubhouses, golf courses and other community amenities. She also demands a sense of ambience and quality.

It’s critical to create a welcoming environment, from sales and design discussions through contract execution. Lose the “hard sell” sales approach because if you earn her respect, you’ve won her business. Boomers are your most affluent clients, and the boomer woman expects topnotch service.

Your sales staff must have thorough answers to her increasingly sophisticated questions like: “How many heating/cooling systems will we need?” “Will low-E windows be sufficient on our large southwestern windows?” “What are the advantages and disadvantages of engineered stone and granite for countertops?”

Help Her to Spend

The boomer woman understands the benefits of a quality automobile and is willing to pay more for those benefits when buying a new car. It’s the same with building a new home. If she understands the benefits of quality construction, it will allow her and her partner to spend responsibly to build their dream home.

It’s amazing to me that buyers must work so hard to get the information they need in order to spend more money. Don’t do this to her. Be upfront, make the process understandable and informative and don’t keep her waiting for the price. Display or produce it for her within 24 hours or use state-of-art software to create your presentation. The software will quickly pay for itself because the boomer woman will be ready to buy, especially if the presentation is informative and attractive.

A Contract Must Be an Agreement

Which parts of working with buyers, especially women, are recurring challenges for you and your staff?

For smooth scheduling and faster closings, have the following items clearly explained in your contract:

• Payment schedule and conditions
• Change orders
• Site visitation — who, where, when, why
• Communication — scheduled meetings
• Walkthroughs/inspections
• Contingencies
• Warranties

Don’t have the boomer woman/couple sign a contract until you’ve explained every important element. And don’t regard your thorough explanation as a chore or nuisance.

Think about it. This is the time in the process when you have your greatest bargaining power. She already has chosen you to build her home or she wouldn’t be there. She wants this relationship to succeed so, even though she is not yet contractually obligated, she will put her energy into helping make it work rather than defending herself in a power struggle.

Establish Realistic Expectations

This is your opportunity to not only explain what each policy is, but also why. For instance, parameters for visiting the job site can become a source of conflict. Most buyers want to watch their nest take shape. Most builders would rather they stay away.

If you don’t want them to visit the job site until it is fairly safe, use true stories of workers who suffered injuries at construction sites. If she has grandchildren who want to accompany her, explain to her that nail guns make dangerous toys. Your policies not only have to make sense, you have to be able to communicate that reasoning with your buyers or else adjust your policies.

If you can’t reach agreement, quit while you are ahead. A reasonable explanation will help build a relationship of trust. Remember, your profit and referrals will come out of superior service.

These insights will help you to attract more business from boomer women as well as earn their continued cooperation during construction. They are fiercely loyal. When delighted, they will generate positive referrals and increase your profits for years to come.

Your success can be measured by how completely they feel that this home is their creation. They will show it off to family and friends with pride, along with the knowledge that their wonderful builder’s able leadership and support helped make their dream home a reality.

Sara Lamia is president of Home Building Coach, Inc. in Fort Collins, CO. She is author of "How to Enjoy Building Your Dream Home," a workbook for buyers and builders, and hosts a local radio show about home building issues. Lamia is a member of the NAHB Seniors Housing Council. For more information, contact her by e-mail, at 970-402-2600, or visit Home Building Coach, Inc. Web site.

20 Club Forming for Seniors Housing

NAHB, in conjunction with the NAHB Seniors Housing Council, is preparing to launch its first 20 Club for builders and developers who serve the 50+ housing market. The newly formed 50+ Seniors 20 Club will enable members interested or involved in seniors housing to gain additional insight about various aspects of the seniors housing industry from peers who operate in non-competing markets. 

The new seniors 20 Club is for single-family and multifamily builders and developers who build for-sale and rental communities that cater to boomers, empty nesters, pre-retirees, active adults and seniors.

Plans also are underway to eventually form separate clubs for architects and other industry professionals involved in assisted living and other types of seniors housing.

How the 20 Club Works

NAHB's 50+ Seniors 20 Club is open to CEOs, presidents, owners, principals and partners in companies involved in the seniors housing industry. Members will be grouped with other industry leaders from non-competing markets whose companies are similar in size and operations. They will meet several times a year to exchange ideas and develop business, strategic and marketing plans that position their companies for success.

"The networking and education in a 20 Club is second to none," said NAHB Seniors Housing Council Vice Chair Randy Rinehart, a custom builder from Charlottesville, VA, who has been active in 20 Clubs program. "It allows the owners and decision-makers from companies to exchange information, find out what others are doing across the country and pick up ways to improve operations and increase their bottom line. The best way to learn is through others' experiences." 

Fill out the 50+ Seniors 20 Club application. Or e-mail Kristin Peck or call her at 800-368-5242 x8105 for more details.

Mark Your Calendar for NAHB's Seniors Housing Symposium 2005

"Building for Boomers & Beyond": NAHB Seniors Housing Symposium 2005 is scheduled for May 16-18, 2005, in Chantilly, VA. Click here for more information.

Students Graduate From Popular Pre-Apprenticeship Program in Dallas

Eighteen young people from the Dallas County Youth Village graduated on July 1 from the Home Builder Institute’s (HBI) Project CRAFT/Dallas — a six-month pre-apprenticeship program that features classroom instruction with hands-on work in the field — and are now getting ready to pursue jobs where they can put their construction skills to good use.

Dallas County Commissioner John Wiley Price, the keynote speaker at the graduation ceremonies, challenged the students to use their experiences in the program as a steppingstone and apply the skills they had mastered to every aspect of their lives. Among the nearly 200 attending were HBI trustee Steve Nellis and Mike Mishler, vice president/secretary of the Home Builders Association of Greater Dallas.

“This program will do great things for kids in this community,” said Nellis, who is head of recruitment for Centex Homes and heavily involved in the NAHB Student Chapters program.

In less than a year since it was initiated, 32 students have graduated from the HBI program. The training has garnered enthusiastic support from the community, led by efforts of the Dallas association’s executive officer, Bob Morris, and its public relations officer, Narciso Tovar.

“We’re thrilled to have Project CRAFT in our area,” said Morris. “I’m excited to see how many more young people we can help.”

“It was amazing how close a bond I had with people I knew very little about,” one of the students said at the graduation. “Now I know I have to be a leader even when no one is around.”

An article on the job training program by reporter Victoria Williams appeared in the June 30 edition of the Dallas Morning News.

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

Precast Foundation Systems the Easy Way to Build Better Basements

Available through 23 franchises across the country, Superior Walls precast foundation systems are revolutionizing the process of year-round home building while steadily gaining acceptance from builders and home owners around the world, according to the manufacturer.

Headquartered in New Holland, PA, Superior Walls is a member of the National Council of the Housing Industry — the Supplier 100 of NAHB.

The patented wall systems are manufactured in a factory-controlled environment and brought to the new home construction site on trucks. There, a certified Superior Walls team positions the panels using a crane, and locks and seals them together for a precise fit.

The system accommodates design flexibility, according to Superior Walls. Foundations are custom built to specifications and can take almost any shape, complete with built-in spaces for windows or doors.

The system saves time on the job site and uses special technology to provide a warm, dry basement, its manufacturer says. A typical foundation can be installed and ready for building in as little as five hours, even in cold weather.

Built-in DOW® insulation increases energy efficiency, while high-strength, steel-reinforced 5000+ psi concrete is specially designed to resist water infiltration.

Superior Walls are ready-to-finish and feature easy conversion to finished living space, the company says. In addition to being pre-insulated, the walls have treated wood nailers for easy drywall installation and built-in accesses for wiring or small plumbing.

Some regions are also now offering a new Xi foundation system, which features 2.5 inches of continuous DOW® extruded polystyrene for extra insulation. Nearly everything is insulated, including corners, studs and bond beams.

Monolithically poured, the Xi wall is reinforced with steel rebar for extra strength.

Founded in 1981, Superior Walls designed its system to eliminate age-old home building problems and to provide a quick and easy way to build better basements.

For more information on Superior Walls, call 1-800-452-WALLS, or click here. 

Take the Spaghetti Test to Understand the Strength of Compression Members

I was driving through a new subdivision the other day and noted a new front porch temporarily supported by a couple of long 2x4’s. Hope it doesn’t snow, I thought to myself; or worse, hope the roofing contractor doesn’t pack all the roofing materials on that porch instead of the main house roof. He’ll likely have an expensive mess on his hands, if not a serious injury when the porch comes down.

Which brought to mind one of my seminar questions:

The Strength of a Compression Member:

a) Depends only on the cross sectional area, i.e. the amount of “meat” of the member.

b) Does depend on the cross sectional area, but more importantly, depends on unbraced length. The longer the unbraced length, the weaker the member.

c) There is an unbraced length for any given compression member beyond which the strength is so low that the member is not allowed by code.

The correct answers are b) and c).

The point of the question is to introduce the concept of unbraced length. But first, what is a compression member?

A compression member is any structural member that experiences compressive (squeezing) forces. Posts and columns are prime examples. Studs are also compression members, but if used in an exterior wall, studs also must resist bending stresses from wind loads. For now, we’ll only concern ourselves with pure compression members, i.e. no wind loads or other bending stresses.

Take for example the temporary 2x4 posts holding up the subject porch. How much compressive force can a 2x4, standing alone (no plywood sheathing attached) hold? It depends a lot on length. If short, say two-feet or less, a 2x4 can hold approximately 4,500 lbs. — over two tons. If long, however, the story changes dramatically. That same 2x4, six feet long, can hold only 900 lbs. If eight feet long, that same 2x4 cannot be used at all per code! In our porch example, the two 10-foot 2x4s standing alone were overstressed the instant they were installed.

This concept can be easily demonstrated using a plain piece of uncooked spaghetti. Try to break a one-inch-long piece of spaghetti by pushing on the end. Be careful you don’t poke a hole through your finger — that short column of spaghetti can take a very large load. Now, take an 8-inch-long piece and it will break with very little compressive force — it buckles in the middle. Now, take another 8-inch piece and hold (brace) the middle with finger and thumb, restraining it from buckling (moving sideways). Now you can apply a lot of compressive force again before failure. By bracing the middle, you shortened the column’s unbraced length and in effect made two short columns.

Another way to determine the strength of posts, columns and studs is by using computer software, such as ConstructionCalc’s Wood Column Calculator (shameless plug, ding!). The loads determined above were found that way in about 15 seconds.

To summarize, the strength of compression members (posts, columns and studs) depends on their size, but more importantly, on their length. So if you ever see a long, slender, unbraced column, beware. Buckling and failure may not be far behind.

Tim K. Garrison P.E. of ConstructionCalc.com has authored books and short courses and lectures on topics relevant to builders. Got a technical or management issue? E-mail buildersengineer@constructioncalc.com. Tim reads every one.

This column cannot be reprinted without permission from the author.

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.

More Than Seven Thousand New NAHB Members Recruited on National Membership Day

More than 350 home builders associations across the country joined forces last spring  to recruit 7,195 new NAHB members, shattering all previous records for the annual National Membership Day.

“All the credit goes to the Spikes and the Sears Contract Sales representatives,” said NAHB President Bobby Rayburn. “They are the real champions of National Membership Day.”

With some 150 of its members assisting in the recruitment drive, the Master Builders Association of King and Snohomish Counties (MBAKS) in Bellevue, WA, was this year’s top performing association. The association also succeeded in its goal of surpassing Greater Atlanta as the largest home builders association in the U.S. — at least for the month of April.

Over the years, the Washington association has grown bigger than those in Portland, OR; San Diego; Southern California, Dallas, SE Michigan and NE Florida, and its membership has grown 3,600 strong, even though it is based in a metropolitan area whose home building market ranks 25th in size nationally.

A major force behind the success of this year’s membership day activities was Sears Contract Sales, which sponsored the first-ever Webcast of the event, including recruitment and retention tips, hourly membership updates and interviews with NAHB Senior Officers, members and staff.

“The Webcast was an invaluable tool to help bolster our membership, and allowed HBAs around the country to track their contributions to the national membership tally,” said MBAKS member Sherry Schwab. “Thanks to the active participation of Sears Contract Sales, we can count this year’s National Membership Day as one of our most successful outreach efforts ever.”

For more information on National Membership Day 2004 or on becoming an NAHB member, contact the NAHB Membership Team at membership@nahb.com or 800-368-5242 x8440.

Sears Contract Sales Members of the Master BA of King and Snohomish Counties

Charlie Brown’s recruitment efforts last spring placed him at the 750d Spike Club level. To date, he is the only associate member in Washington to achieve this status.

Sears Contract Sales is the exclusive sponsor of National Membership Day. In support of this national sponsorship, the Pacific Northwest district of Sears Contract Sales donated an exclusively designed 25-inch Kenmore refrigerator with French doors as a prize for one of the top recruiting members

Other Sears Contract Sales member involved in the Master BA of King and Snohomish Counties' recruitment effort include Jeff Everret (not shown) and: 

HomeAid Looking to Expand Shelters in San Francisco Bay Area

HomeAid Northern California participated in last month’s PCBC in San Francisco to increase participation in efforts to design, build and renovate residences and shelters for temporarily homeless individuals and families in that city.

Established at the start of 1999 as the charitable arm of the Home Builders Association of Northern California, the Northern California chapter of HomeAid has supported homeless shelters in the Bay Area valued at $4 million. An estimated 75,000 people are homeless in that region’s nine counties on any given night.

The chapter has provided the largest HomeAid shelter to date, the East County Family Transitional Center in Antioch, CA.

At the top of its development initiatives this year, the chapter is working with William Lyon Homes and Pulte Homes to add beds to Shepherd’s Gate in Livermore and working with Christopherson Homes and Cobblestone Homes to expand the Aston Avenue Project for homeless families in Santa Rosa.

On the drawing board for next year are 100 beds at the Mission Solano Life Formation Center in Fairfield for single adults and victims of domestic violence.

In addition to safe housing, residents of HomeAid shelters receive the social services and educational and job training support they need to return to the mainstream of the community.

Among those on hand at PCBC to discuss opportunities to support the HomeAid program was Douglas Krah, regional president of Standard Pacific Homes of Northern California and Home Aid’s 2004 chairperson.

Member Advantage: Save Up to 20% From Hertz

Special NAHB member savings are yours with Hertz. Use your Hertz discount CDP#51046 whenever you rent a car to save up to 20%, depending on where and when you travel. Call 800-654-2200 or go to http://memberadvantage.nahb.org, click "view all member discounts" and scroll down to Hertz. Make a reservation, check rates or special offers.

Members can also go online to join the Hertz #1 Club Gold® — the fee, a $50 value, is waived for NAHB members who sign up. With Hertz #1 Club Gold, there’s no need to stop at any airport counters. Simply go to the specially designated Gold counter, show your driver’s license and pick up your keys. Go online and enter the following information:

• Company Name: NAHB
• CDP#: 51046
• Promo Code #: 4839

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.

Awards Programs Deadlines

Awards Program	Entries Due
Remodeling Hall of Fame	July 12
Best in American Living Awards (BALA)	July 31
EnergyValue Housing Awards	Aug. 9
CADRE	Sept. 3
Remodelor™ of the Year	Sept. 3
BSC Excellence in Marketing & Home Design Awards	Sept. 10
The Nationals — The National Sales and Marketing Awards	Sept. 24
Best of Seniors Housing — Celebrating Excellence...Visions of the Future	Oct. 22
Innovation in Workforce Housing Awards	Oct. 29

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.

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.