Nation's Building News Online: August 2, 2004

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Atlanta Chosen to Launch National Workforce Housing Initiative

The Atlanta metropolitan area has been chosen as the first of 11 national demonstration sites for the “Housing America’s Workforce Initiative,” a program in which NAHB and Fannie Mae are collaborating to find creative ways to produce affordably priced housing for wage-earning families.

Atlanta was picked because of its diverse and dynamic economy and its range of public, private and nonprofit resources available to expand the affordable housing stock. Its selection for the initiative was announced at Cascade Parc, a model for workforce housing priced in the $110,000-$220,000 range that is being developed by Sharon McSwain Homes, with help from the Atlanta Development Authority (ADA) and Fannie Mae.

“A key to our long-term strategies for making Atlanta neighborhoods more livable is increasing the stock of homes in the city that families who work here can afford to own,” said Atlanta Mayor Shirley Franklin. “I’m thrilled that the home builders and Fannie Mae have chosen to work with Atlanta organizations to find new ways to open the doors to homeownership to more families.”

NAHB and Fannie Mae announced their workforce housing initiative in March with a pledge to expand the stock of homes near the workplaces of employees such as police officers, firefighters, healthcare workers and those in the service and retail industries. While the effort will be providing affordably priced housing in specific locations, it will also serve as a laboratory for new approaches to meeting the housing needs of workers that can be repeated around the country.

“In Atlanta, as in the rest of the country, homeownership is increasingly out of the reach of our working families,” said NAHB President Bobby Rayburn, who has made housing for America’s working families the top priority of the association this year. “Working with Fannie Mae and our local partners in Atlanta and around the country, we will reverse this trend and open new opportunities for millions of working families to afford a home of their own.”

Rayburn cited the strong leadership of Atlanta's mayor as a consistend advocate for housing and he noted that the area also has "an energetic private sector, and effective community and regional organizations." Exemplifying the city's "can-do spirit," he said, is builder Bobby Lunceford, who is a leader in Cobb Housing Incorporated, an organization seeking to provide affordable housing options in Cobb County and a force behind Mitchell Chase Development homes, which he called "an excellent example of workforce housing."

Commending NAHB for putting the issue of workforce housing on the national agenda and “challenging Fannie Mae to put our low-cost housing capital to work to make tangible progress,” Franklin D. Raines, chairman and chief executive officer of Fannie Mae, said that, “We will share the lessons we learn in Atlanta with other municipalities seeking to expand their workforce housing stock.”

Research released at the end of last month by the Atlanta Neighborhood Development Partnership found that teachers, firefighters, police officers, office administrators, retail service providers and other moderate-income workers could not qualify in 2002 to purchase the area’s average-priced home with their average starting salaries. Ranging from $22,000-$35,000, salaries for these professions fell far short of the $54,000-$73,000 incomes needed to purchase the average-priced home of $243,000 in the City of Atlanta and $180,000 for the region.

Cascade Parc, located near downtown Atlanta in the former Kings Ridge community, will include 331 condominiums, townhomes and estate homes on a 50-acre site. McSwain was able to price the homes within reach of the city’s working families with a land subsidy from the Atlanta Development Authority and a $3.5 million debt investment from Fannie Mae’s American Communities Fund™.

“I’m proud to be able to offer working families homes that they can afford and enjoy for years to come at Cascade Parc,” said McSwain.

“There are already some great examples in the marketplace that demonstrate the commitment of the Greater Atlanta Home Builders Association to addressing housing affordability for working families,” said David Smith, the association’s president.

“Workforce housing is an integral part of the Atlanta Regional Commission's Livable Centers Initiative and is essential to creating communities where our residents can live, work and connect to their neighbors,” said C. Crandle Bray, chairman of the Atlanta Regional Commission.

Workforce housing is a goal of Fannie Mae’s American Dream Commitment, which is designed to help tackle the toughest housing problems facing the country.

For more information about NAHB’s workforce housing initiative, click here.

To find out more about the American Dream Commitment or Fannie Mae’s affordable mortgage products, consumers can call Fannie Mae’s Consumer Resource Center at 800-7FANNIE (800-732-6643) Monday through Friday, 9:00 a.m. to 5:00 p.m. EDT.

Building News Coast To Coast

Residential Builders See Big Opportunity in Overseas Markets

Some of the top residential builders in the United States are expanding into foreign markets. Individually, Los Angeles-based KB Home has opened a design showroom in France; Pulte Homes Inc. is active in the Mexican and Argentine markets; and K. Hovnanian has dabbled in Poland's residential market. Those efforts are applauded by the Commerce Department, which is encouraging movement into China; and NAHB, which is promoting opportunities in Eastern Europe. NAHB also launched the "Access Mexico" program in 2003 to help U.S. builders take advantage of opportunities there. Some observers believe New Zealand and other English-speaking countries provide a comfortable atmosphere for American builders. Though New Zealand produces only 30,000 new homes each year — compared to more than 1 million annually in the U.S. — experts see similarities between the two housing markets, considering that both have been fueled by low interest rates and immigration. However, domestic builders have focused their efforts on huge dwellings jam-packed with amenities; while an aversion to suburban sprawl makes dense, multifamily projects popular in New Zealand. 
Philadelphia Inquirer (07/26/04) Heavens, Alan J.: www.philly.com

Beyond the Summer Cabin: Vacation-Home Alternatives

The National Association of Realtors® reports that the number of Americans who own second homes has increased by 25% since 1989 to about 5.1 million, with average prices for vacation properties hovering near the $200,000 mark. At the same time, two new vacation-home options have emerged for consumers who want to avoid the hassles and extra costs of full ownership, such as property taxes and upkeep. Some developers are offering "fractional ownership" or "shares" of units at posh resorts. The units, which can range from studios to two- and three-bedroom condominiums, sell for a one-time price, usually between $300,000 and $500,000, with additional maintenance fees ranging from $450 to $14,000 annually. Depending on the deal, owners can reserve the resort for as little as one month or as much as 13 weeks at a time; but one of the drawbacks is that availability may be somewhat limited. Meanwhile, "vacation clubs" are similar in that buyers pay a one-time membership fee, usually for a few thousand dollars, and then pay up to $25,000 in annual maintenance fees. They differ in that members have access to a number of different destinations worldwide for several weeks at a time. Unlike fractional ownership programs, however, vacation clubs do not generate a profit upon resale.
Wall Street Journal (07/29/04) P. D1; Lieber, Ron; Opdyke, Jeff D.: www.wsj.com

Models, Web Work in Tandem

Many buyers of both new and resale properties begin their searches on the Internet, perusing listings that feature complete property descriptions, floor plans and even virtual tours. According to Michael Copp of NAHB's National Sales and Marketing Council, most new-home buyers use the Web to prequalify builders. While some builders have been able to sell a majority of their units without models, most continue to build them to showcase the latest trends and popular upgrades. Others opt for design centers or "staged" homes outfitted with only standard features instead. "We build models to give people ideas of what they can do with their homes with upgrades," remarks Centex Homes Sales and Marketing Director Charlie Roter. "We also show them homes under construction so they can see what it normally comes with." Despite the popularity of Web-site listings and virtual tours, builders tend to agree that computer models will not eliminate the need for furnished models.
San Luis Obispo Tribune (07/25/04) Stevens, Leslie E.: www.sanluisobispo.com

A New Nest

Though more baby boomers are relocating to the urban core when they retire, most continue to retreat to suburban active-adult communities. The newest active-adult developments are located outside of metropolitan areas in the Southwest, Colorado and Florida. Baby boomers typically relocate to these communities after their children leave the nest but well before they reach the traditional retirement age. A recent survey by AARP reveals that 80% of respondents plan to remain employed after they turn 65, and many will serve as consultants or work from their homes. According to State University of New York at Albany demographics professor William Frey, "The difference between the baby boomers and their parents is that the parents were willing to defer gratification until they reached retirement age, while the baby boomers want it all now." Meanwhile, close to 25% of respondents to a poll conducted by Pulte Homes' Del Webb unit expect their kids to move back in; and another 24% believe they will end up taking in their parents to care for them.
Philadelphia Inquirer (07/25/04) P. J1; Heavens, Alan J.: www.phillyom

Model Worth More Than Scale

Architects often recommend that new-home buyers commission a scale model of their planned residence so that they can fully picture how the final product will look. Scale models benefit the architects as well because they allow them to make design adjustments at the clients' request before permanent structures are built. Traditional floor plans, many architects say, are not an accurate representation of how the design will translate in three dimensions. Models can take weeks or months to create; prices for a customized model start around $2,500 but can be much greater depending on the level of detail requested. Architects may assign scale model projects to their staffs or outsource to professional model makers. Most architectural degree programs include courses in model making. However, Amit Handyopadhyay, chairman of Farmingdale State University's architectural department, notes that models "are being overshadowed more and more by computer assisted design, both fixed and animated."
Chicago Tribune (07/25/04) Tyler, Jan: www.chicagotribune.com

Built-In Features Make Life Easier for Pets, You

Central Florida builder D.R. Horton Homes is incorporating animal-friendly features into the residences it designs through its new Pet Amenities Program and a partnership with PetSafe, a company that makes pet-safety products. Animal lovers can opt for common features like special pet doors or more advanced amenities such as discreet, ventilated litter boxes and easy-to-clean feeding areas. "We're constantly considering new options to offer, such as hurricane protection for pets and facilities for disabled animals," says Jack Appleman, director of sales and marketing for D.R. Horton. The company is both installing the features in existing dwellings and including them in designs for new homes at the customer's request. PetSafe donates 5% of all optional sale proceeds to the American Society for the Prevention of Cruelty to Animals, Cat Fanciers' Association and PAWS with a Cause.
Orlando Sentinel (07/25/04) P. K6; Glick, Nancy N.: www.orlandosentinel.com

The Vacation-Home Frontier

Vacation-home buyers and developers are setting their sights on remote, lesser-known locales as traditional hotspots like Nantucket, MA, and Hilton Head, SC, see their seasonal populations swell. Developers are building gated-developments with resort-style amenities in places like Hamilton, MT; Yemassee, SC; La Quinta, CA; Riceboro, GA; and Kremmling, CO, to name a few. In addition to privacy and security, they generally offer golf, tennis, a central clubhouse and community activities, with membership prices topping $100,000. Although they can get more for their money in obscure markets, some vacation-home buyers are hesitant because the resale potential of these communities remains unknown. While they can sell their memberships at a profit, purchasers generally need board approval before properties can change hands. Some buyers shy away from these developments because they would rather not submit their architectural plans for approval or attend social events. Nevertheless, the promise of rapid appreciation in both home and membership prices is sparking sales in many gated vacation-home communities.
Wall Street Journal (07/23/04) P. W1; Reed, Danielle; Fletcher, June: www.wsj.com

Survey Finds Housing Affordability Problems Hit Sales Clerks, Janitors the Hardest

A new report from the Center for Housing Policy shows that families relying solely on the income of someone working as an elementary school teacher, police officer or nurse would have problems buying a home in many of the largest housing markets in the country. Such households would have been priced out of 48 of 136 of the nation's biggest housing markets, including Boston and Seattle as well as many fast-growing metro areas of the South. The median salary of nurses rose 4% from 2001 to $33,000 in 2003, while the median salary of elementary school teachers and police officers rose nearly 3% and 7%, respectively, to $42,000 and $44,000. However, the median U.S. home price rose 9% to $170,000 last year. Barbara Lipman — who analyzed the data on behalf of the center, the research affiliate of the National Housing Conference coalition — said the benefits to the homeownership market from low interest rates basically are canceled out by the sweeping increases in property prices.
Associated Press (07/20/04) Armas, Genaro C.: www.ap.org

Programs Hope to Help Girls Build Careers in Construction

Teenage girls learn the basics of electrical wiring, welding, carpentry and safety procedures at a summer camp offered by BE&K Construction — a construction and engineering firm in Birmingham, AL. The program, taught mostly by female employees of BE&K, has been offered over the past four years and is designed to educate young girls about potential careers in the construction industry. The number of women in the overall sector — including office jobs — has grown about 9.6% from 718,000 of a total 7.5 million employees in 1994 to 975,000 of a total of 10.1 million last year, according to the Bureau of Labor Statistics; but insider estimates put the number of actual tradeswomen at only about 2% of total workers. Women still face many challenges in pursuing careers in construction, from on-the-job discrimination and unequal bathroom access to attitudes outside the workplace and the lack of child-care options.
Wall Street Journal (07/20/04) P. B4; Maher, Kris: www.wsj.com

Boomers Banking on Second Homes

Baby boomers are approaching retirement at a rapid clip, with 3.5 million turning 55 this year alone. Households headed by boomers over the age of 50 hold much of the country's wealth, with their median net worth rising from $98,000 in 1983 to $134,000 in 1998. This population segment is fueling second-home sales in resort markets, which National Association of Realtors® Chief Economist David Lereah attributes to their perception of real estate as a better investment than the stock market. Lereah believes demand from boomers will drive up vacation-home appreciation rates to more than two times the national rate of 6.7% this year. Low interest rates and new capital-gains tax laws that allow couples to avoid paying taxes on up to $500,000 of their property-sale profits also have bolstered second-home sales, though higher rates on mortgages and credit cards could eventually put a damper on the market.
National Post (CAN) (07/20/04) P. FP4; Howley, Kathleen M.: www.nationalpost.com

Seniors Get Relocation Help From Many Sources

Many new-home builders, assisted-living complexes and retirement communities offer executive-level relocation services to seniors facing a move from their family homes. These services typically involve move-in coordinators who suggest and monitor real estate agents and their marketing plans; locate moving companies and schedule the move; and arrange for the sale, donation or storage of excess belongings. Some even determine the home owner's routines, needs and preferences to create various floor plans for their new residences, allowing them to choose the one they like best. The professionals make the move easy for both developers and buyers, facilitating the sale of the senior's longtime home in an effort to keep the closing process and relocation on schedule.
Chicago Tribune (07/18/04) P. 3N; Adler, Jane: www.chicagotribune.com

Making Accommodations

According to AARP, 86% of the nation's senior population — which will be 40 million strong by 2010 — plans to age in place. Builders increasingly are including accessibility features in their new homes, which Fairfax, VA-based consultant Mike Leahy says adds just 3%-5% to construction costs. Remodeling existing dwellings to allow owners to remain independent can be cost-prohibitive, meanwhile, especially if the home lacks an entryway that can accommodate a wheelchair. Interior age-in-place features are more affordable and include wider doorways, levered door knobs, lower counters, higher dishwashers and ovens, shower grab bars and pedestal sinks. Home owners can even install hidden elevators and chair lifts to increase mobility. The nonprofit group Concrete Change is collaborating with city officials nationwide to change building codes to incorporate some of these features. The organization also encourages lenders to offer better mortgage rates to buyers of age-in-place homes.
CBSMarketWatch.com (07/16/04) MacDonald, Jay: www.cbs.marketwatch.com

Building Boom Drives Up Costs of Home-Construction Materials

Industry experts say that the prices of numerous key materials used in constructing new homes and for home remodeling continue to increase. A construction spurt in China is using up large amounts of American steel and cement, resulting in shortages in certain regional markets in the United States. In addition, U.S. lumber prices continue to grow. A primary reason for the steep costs is that while demand has risen over the past three years, production capacity has not expanded to meet it. Another issue is transportation, in the guise of higher gasoline prices and new federal regulations limiting how long a truck driver can be on the road without stopping. Domestic construction spending hit an unprecedented high in March with a seasonally adjusted yearly rate of $944.1 billion.
Philadelphia Inquirer (07/15/04) Heavens, Alan J.: www.philly.com

E-Mail in Your Hand, No Matter Where You Go

Although hybrid devices that combine voice and data services are becoming increasingly popular, businesses that prefer to keep their cell phones separate from their e-mail devices still have an array of options to choose from. Several makers of palmtops have issued products that integrate wireless connectivity using built-in Wi-Fi or Bluetooth connections that allow users to access their e-mail anytime and anyplace. Wi-Fi offers users faster connection to e-mail than do smart-phones — which combine mobile access to e-mail with cell phones, but Wi-Fi connections can sometimes take time to achieve, depending on users' locations. Dell's Axim X30 offers users the Pocket Outlook e-mail program and the latest version of Microsoft's mobile operating system. Other hand-held devices with built-in wireless connectivity include PalmOne's Tungsten C, which has a built-in "qwerty keyboard," and Tungsten T3, which offers users the ability to open their palmtop to create a bigger screen. When wireless connectivity is not possible, a variety of companies offer alternatives that allow palmtops to connect to the Internet through cables or the Ethernet. While smart phones and hybrid devices seem to be the focus of some in the market, users who prefer to use e-mail and talk on the phone using separate devices still have their choice of a variety of palmtops.
New York Times (07/22/04) P. E5; Fitzgerald, Thomas J.: www.nytimes.com

On the Road Again

About 40% of employees currently travel for business, a figure predicted to increase to around 66% by the end of 2006.  As such, the need for new technological aids to keep business running well while on the road is rising. Laptop and tablet PCs, smart and wireless Internet phones, and portable printers are some of the devices that make life on the road easier for business travelers. New chip sets from Intel are providing increasing numbers of laptops with wireless capability. Tablet PCs — which provide screens a user can write on like a legal pad — are now available from two dozen manufacturers. Smart phones surf the Internet and provide non-phone services such as storing appointments and contacts and offer continual access to accompany e-mail. Recent advances in miniaturization, volume efficiencies and encryption have made wireless IP phones an inexpensive, secure prospect. In the last 18 months, portable printers have begun providing page-speed and photo-printing abilities similar to desktop models.
Wall Street Journal (07/26/04) P. R1; McWilliams, Gary: www.wsj.com

NAHB Leaders Put Focus on Housing Issues at Democratic Convention

In an ongoing effort to promote a national housing agenda for the federal government, leaders from NAHB attended last week’s Democratic National Convention in Boston.

During the four-day convention, which culminated in the nomination of Sen. John Kerry (D-MA) as the Democratic candidate for President of the United States, NAHB, along with other housing and banking groups, hosted a special event attended by the Democratic leadership of the House and Senate, scores of other members of Congress and several governors.

NAHB Senior Officers were on hand to discuss priority housing issues with top Democratic leaders. NAHB also hosted several lunches and meetings with key congressional leaders during the week.

The association will co-host a similar gathering for GOP lawmakers during the Aug. 30-Sept. 2 Republican National Convention in New York, in an effort to ensure that both political parties make housing a national priority in the upcoming election.

In addition, NAHB ran three separate full-page advertisements on the benefits of housing in the National Journal's special daily convention newspaper, which was widely distributed to Democratic lawmakers and delegates. The advertisements will also appear during the Republican National Convention.

NAHB also served as an official co-sponsor of two daily convention media briefings hosted by the National Journal and MSNBC. The briefings featured analysis of the race for the White House and the battle for Congress from Charlie Cook, editor and publisher of The Cook Political Report; MSNBC “Hardball” host Chris Matthews; Chuck Todd, editor-in-chief of The Hotline; and key Kerry campaign insiders.

The briefings attracted dozens of reporters from across the country, and provided NAHB Senior Officers and staff a unique opportunity to discuss the association’s legislative priorities with members of the media and to underscore the important role that housing plays in creating new jobs and moving the economy forward.

About a month prior to the convention, NAHB testified before the Democratic Party Platform Committee on specific builder policy recommendations for a national housing agenda.

NAHB has contacted officials from the Republican Party Platform Committee and is expected to formally present its housing agenda to the GOP panel later this month.

Expressing broad-based support for housing, the Democratic Party’s 2004 platform states that, “We will support quality housing opportunities and a balanced housing policy for all Americans, defending good rental housing and extending the American dream of homeownership to more families.”

NAHB has sent a series of questions to President George Bush and Senator Kerry about their positions on a broad range of housing issues, and their responses will be published in NBN Online in September.

For more information, e-mail Michael Strauss or call him at 800-368-5242 x8252.

To read NAHB's 10-point housing platform that highlights why housing could be critical to the outcome of the November elections, click here.

Housing Snapshot

Mortgage interest rates increased slightly last week, for the first time in five weeks. The Census Bureau reported that the nation's homeownership rate had increased to an all-time high of 69.2%. Growth of the gross domestic product slowed to an annual rate of 3% in the second quarter, according to the Commerce Department, down from 4.5% in the first quarter. A big factor in the slowdown was a decline in consumer spending, which was down from a 4.1% rate of growth in the first quarter to 1% in the second. Overall, the consumer price index was up 3.3% for the first half of the year. The Bush Administration now projects 4.7% growth for this year and 3.7% for 2005. On the lumber price front, prices are moving up again after a short hiatus earlier this summer. The cost of 1,000 board feet of framing lumber climbed to $460, up from $440 the previous week and $299 a year earlier, according to Random Lengths. The price of 15/32-inch 3-ply CDX southern west-east plywood was $370, up from $330, per 1,000 square feet and oriented strand board jumped from $305 to $340.

Mortgage Interest Rates

30 Year Fixed Rate: 6.08\%
15 Year Fixed Rate: 5.49\%
1 Year ARM: 4.17\%

Housing Starts: Jun. 2004

Total: 1.8 million\%
Single Family: 1.489 million\%
Multi Family: 313,000\%

New Home Sales: Jun. 2004 *

1.326 million

Existing Home Sales: Jun. 2004 *

6.95 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.

Letters to the Editor

Offended by Inflammatory Label 'Eco-Terrorists' in Your Article

I am responding to your article, "Eco-Terrorists Intensifying No-Growth Battles in California " (July 19). I am highly offended at the label "eco-terrorists" applied in your article. 

Terrorism is a highly sensitive subject, and to use this word when talking about environmental extremists is inflammatory, incorrect and waters down the real and very important issue of terrorism. 

"Eco-terrorist" is a label that is subjective and seeks to give the same weight to environmentalists that is given to those who perpetrated the terrorist attacks against the United States on Sept. 11, 2001 and those who continue to perpetrate attacks against our men and women in uniform in Iraq. I doubt that they would find the comparison fitting.

Home builders and environmentalists should work together to preserve the environment. The two groups should find a way to come together to solve the very real environmental problems that face everyone — home builder, environmentalist or citizen. Using inflammatory language only perpetuates the negative image that home builders face every day. I expect more from our national home building association.

Angela Flood
Vice President
Strategy Planning Associates, Inc.

Editor's Note: The dictionary defines terrorism as "the unlawful use or threatened use of violence to intimidate or coerce societies or governments, often for ideological or political reasons." Eco-terrorists wantonly destroy private property, sometimes buildings worth $50 million or more, in an effort to sabotage legal decisions made by local governments through their planning and zoning boards.

Disagree With the Tone of Your Article on Eco-Terrorists

Nation's Building News is an important trade journal, and when you recently invited me to subscribe, I was tempted. One of your recent headlines caught my eye — "Eco-Terrorists Intensifying No-Growth Battles in California" (July 19).

I agree that vandalism and destruction of private property is wrong, even if the perpetrators are acting in what they perceive as the interests of the public good. I am not sure that I would refer to their actions as "terrorist tactics," however. At least as far as the article stated, they have not harmed anyone. They are not trying to instill fear, but to stop something they see as being unjust.

I don't support their tactics, but using an emotionally charged term like "terrorist" in this context is, I believe, a form of yellow journalism. I realize that you may simply be using a moniker framed by others, but I believe it is the responsibility of the press, even professional trade journals, to be more circumspect.

I was particularly disturbed by the tone used in the article when discussing more moderate eco-activists. "Your opponents (the eco-activists) don't have much integrity..." Although this statement is attributed to Pearce, a builder's representative, it seems clear that your publication shares his point of view. There is no real attempt to present the environmentalists' perspective or grievances.

I was glad to see that at least one of the recommendations cited in the article was to consider the community and green building methods when designing new projects. I believe that properly implemented, these practices produce a better return for developers and users. Everybody can win. I have shared in the frustration many people feel when developers act solely in their own interests with little regard for the community and the environment they are impacting.

In short, I believe that developers and builders need a wake-up call when it comes to responsible design and construction practices. I don't support the actions of extremists who use vandalism and arson to make their point, but I think it is just as wrong to vilify those who use legal means to protect the public welfare.

Green design is good design and everyone can benefit from it. I think that it is important for NBN and similar journals to get that message out, and not to blindly side with the builder in every dispute.

Mike Binder
Graduate Student of Architecture
University of Maryland

Builders Applaud Homeownership Tax Credit Provision in Bipartisan Senate Bill

Senate Finance Committee Chairman Charles Grassley (R-IA), Ranking Member Max Baucus (D-MT) and Senators Gordon Smith (R-OR) and Kent Conrad (D-ND) received the appreciation of the nation’s home builders last month for including a homeownership tax credit provision designed to spur the production of affordable housing in S. 2761, the “Heartland Investment and Rural Employment Act.”

“The National Association of Home Builders applauds the leadership displayed by the members of the Senate Finance Committee in working in a bipartisan manner to incorporate a homeownership tax credit component in the small business/agriculture tax bill,” said NAHB President Bobby Rayburn.

A top legislative priority of NAHB, the tax credit would increase housing opportunities for working families by helping to bridge the gap between what it costs to build homes in lower-income neighborhoods and the price that buyers in those neighborhoods can afford to pay.

The homeownership marker included in S. 2761 reflects similar legislation (S. 875 and S. 198) sponsored by Senators Smith, John Kerry (D-MA), Rick Santorum (R-PA) and Debbie Stabenow (D-MI) that would help provide affordable workforce housing; stabilize rural, depressed areas and other communities; create new jobs; increase investment and stimulate the economy.

“For several months, Senators Kerry, Smith, Santorum and Stabenow, along with Senator Paul Sarbanes, the ranking member of the Senate Banking Committee, have diligently promoted the tax credit to help boost homeownership opportunities in low-income communities, and NAHB commends them for their efforts,” said Rayburn.

As S. 2761 moves through the legislative process, we look forward to working with Senate lawmakers to strengthen the homeownership tax credit component and help bring the American dream home to tens of thousands of families,” he said.

To read the legislation discussed above, click here and enter the bill number in the box at the upper left.

For further information, e-mail Michael Strauss or call him at 800-368-5242 x8252.

Habitat Conservation Measures Receive Builder Support

Two bills passed by the House Resources Committee on July 21 that would make important changes to the critical habitat designation process, reduce litigation, promote species recovery, provide incentives for private landowners to enact voluntary conservation measures, and ensure that Endangered Species Act decisions are based on sound scientific data received the support of the nation’s home builders.

H.R. 2933, the “Critical Habitat Reform Act of 2003,” was introduced by Rep. Dennis Cardoza (D-CA) and cleared the House panel with bipartisan support on a 28-14 vote. Sponsored by Rep. Greg Walden (R-OR), H.R. 1662, the “Sound Science for Endangered Species Act Planning Act of 2003,” was approved by a 26-15 margin.

“NAHB commends Chairman Richard Pombo (R-CA) and Reps. Cardoza and Walden for their tireless efforts to move these conservation measures forward,” said NAHB President Bobby Rayburn. “The nation’s home builders believe that the Congress should be encouraged to adopt legislation that would create a more balanced environmental agenda that supports the twin goals of providing for species conservation and protection and accommodating the needs of the communities and states where they reside. These bills would clearly help to achieve these objectives.”

H.R. 2933 would compel the U.S. Fish and Wildlife Service to provide information to landowners on the “specific areas” that warrant heightened regulation and protection and to fully examine the economic consequences of critical habitat designations.

It also establishes an independent timeline for designating critical habitat, which would provide a strong incentive for states and private landowners to quickly adopt programs to protect listed species and avoid inclusion of their lands in the critical habitat designation.

“Rep. Cardoza’s bill embraces common-sense reforms that improve critical habitat designations and promote voluntary conservation measures to protect species, while allowing local communities to expand and thrive,” said Rayburn.

H.R. 1662 would mandate the use of sound science in decisions made under the Endangered Species Act. The bill would improve the scientific and biological data underlying decisions made under the act.

“Neither the housing needs of America’s growing population nor the needs of dwindling wildlife are well served when the government applies environmental solutions before it has scientifically determined the true nature and extent of the problem. We need to make valid and sound science the backbone of our Endangered Species Act protection efforts, and H.R. 1662 will help us achieve that goal,” said Rayburn.

To read the legislation above, click here, and enter the bill number in the box at the upper left.

For further information, e-mail Michael Strauss or call him at 800-368-5242 x8252.

House Acts at the Last Minute to Avoid Shutdown of FHA Multifamily Program

Just minutes before adjourning for its summer recess, Congress prevented the shutdown of a critical Federal Housing Administration (FHA) mortgage insurance program for multifamily housing by giving it an additional $4 billion in loan commitment authority.

The increase was the House’s final order of business before its late adjournment on July 22. It had been approved by the Senate earlier in the week.

“We applaud Congress for taking swift action before the recess to keep this FHA program in the market and operating for the remainder of the current fiscal year,” said NAHB President Bobby Rayburn. “Without this increased authority, the affordable rental housing market could have been seriously disrupted. We will continue to monitor this situation closely to ensure that FHA’s loan authority remains sufficient to meet the demand for multifamily mortgage insurance in the months ahead.”

Each year Congress sets a ceiling on the total value of loans that the FHA can insure on multifamily properties. When it became clear earlier this summer that the agency would bump up against the ceiling well before the end of the fiscal year, NAHB took the lead in urging Congress to increase FHA’s insurance authority, which is used to encourage construction and rehabilitation of affordable rental housing.

FHA’s multifamily volume has been stronger than expected in large part because of the increased size of loans that it is now authorized to insure. NAHB worked closely with Congress during the past three years to update the loan limits for FHA multifamily programs, to index the loan limits for inflation and to increase limits for high-cost markets.

Rayburn credited Senators Jack Reed (D-RI), Richard Shelby (R-AL), Paul Sarbanes (D-MD), Christopher Bond (R-MO) and Barbara Mikulski (D-MD) for spearheading this effort in the Senate.

In the House, Representatives Robert Ney (R-OH), Jim Walsh (R-NY) and Alan Mollohan (D-WV) “worked diligently to ensure that the legislation would receive House consideration prior to adjournment,” he added.

For more information, e-mail Michael Strauss or call him at 800-368-5242 x8252.

NAHB Enters Election Season With 10-Point Housing Platform

Campaigning hard on housing issues will give a big boost to the two presidential candidates this fall and could help determine who wins the White House, said NAHB President Bobby Rayburn.

Starting on July 7, NAHB began counting down to the political conventions by issuing 10 key points that highlight why housing could be critical to the outcome of the November elections.

10. Housing is leading the nation’s economic recovery. Home builders constructed more than 1.8 million new homes and apartment units in 2003, and a record 1.1 million new homes were sold last year. Production and sales are expected to exceed those figures in 2004. To sustain this level of production, a healthy overall economy with low interest rates and rising real incomes is absolutely critical. In 2003, housing activity accounted for 16 cents of every dollar spent in the U.S. economy.

9. Housing creates good paying jobs. The 215,000 members of NAHB employ about 8 million Americans, making the housing industry one of the nation’s largest employers.

8. Housing generates wealth. Housing accounts for 32% of household wealth in the nation. Home owners have a total of about $8 trillion in home equity, which is often used as a nest egg for retirement or to cover college expenses.

7. A major housing gap. While the national homeownership rate stands at a record 68%, millions of working families are still struggling to obtain decent shelter. The homeownership rate for minorities lags 25 points below white households. In addition, more than 14 million still spend more than 50% of their income on housing or live in seriously substandard housing.

6. The job of housing America is far from complete. Home builders will have to construct 18 million new home and apartment units over the next decade just to keep up with rising population and household growth. Financing this housing will require $3 trillion annually in new mortgage loan originations. Such a growth rate will require strong primary and secondary mortgage markets and an ongoing commitment by the federal government to support the housing finance sector.

5. Growing need for affordable housing for America’s workers. As the number of immigrant, minority and female-headed households continues to grow over the next decade, demand for starter homes and affordable rental housing will increase. Unfortunately, more and more working families — including teachers, firefighters, nurses, police officers and other public servants — are being priced out of the local markets where they work and they are commuting two hours or more each day to work.

4. Smart growth. New household formations are expected to average between 1.3 and 1.6 million per year during the next decade. To satisfy this robust housing demand, local and state governments need to enact sound land-use policies and reform and streamline the zoning and regulatory process. Sensible growth management policies will meet a community’s housing needs and allow for construction of a mix of different types of housing in various price ranges. At the federal level, policy makers need to establish a more balanced environmental agenda that supports the twin goals of providing for a clean and healthy environment and meeting the nation’s housing needs.

3. Credit is the lifeblood of the housing market. Maintaining an adequate flow of credit is fundamentally important. During the next decade, America’s families will need 125 million mortgage loans, or an average of $3 trillion annually, for home purchases and refinancings. Therefore, policy makers must guard against any backdoor attempts to alter the regulations affecting the housing government sponsored enterprises in a way that impedes the ability of Fannie Mae, Freddie Mac and the Federal Home Loan banks to provide lenders with new mortgage products and ensure an affordable and steady flow of credit for home mortgages.

2. Meeting the housing needs of the underserved. The federal government should also support special programs and tax incentives that promote homeownership or help low- and moderate-income families buy or rent decent housing. Housing initiatives in Congress that enjoy broad bipartisan support, such as the homeownership tax credit legislation, the FHA zero downpayment program and improvements in the Low Income Housing Tax Credit, need to be enacted into law.

1. Elevate housing as a national priority. Housing — like other basic human needs — should be a top national priority. By reaffirming this commitment to housing, the next Congress and Administration can help fulfill the promise of the Housing Act of 1949, which set a goal of "a decent home and a suitable living environment for every American family."

For more information, e-mail Michael Strauss or call him at 800-368-5242 x8252.

To read about NAHB's efforts to promote a national housing agenda and discuss priority housing issues with top Democratic leaders at last week's Democratic National Convention in Boston, click here.

New-Home Sales in June Hold Close to Record Pace

Fueled by strong population and household growth, improving economic conditions, a favorable financing climate and the continued solid investment potential of housing, sales of new single-family homes hit a seasonally adjusted annual rate of 1.326 million units in June.

New home sales were at a record level during the May-June period, according to the Commerce Department. Sales in June were just below the record 1.337-million unit pace set in May and stood 11.1% ahead of the rate of a year earlier.

“Buyer demand for new homes remains quite strong as job growth proceeds and consumer confidence builds,” said NAHB President Bobby Rayburn. “NAHB’s Housing Market Index, which is based on our monthly surveys of single-family builders, indicates that the perception of an improving economy is helping to drive this market.”

Noting that the fundamentals for housing demand remain highly positive, NAHB Chief Economist David Seiders attributed the brisk sales pace of recent months to expectations of rising interest rates later in the year. Mortgage interest rates actually fell below their May-June levels in July, he said. "While home buying may fade later this year, it now appears that home sales for 2004 will easily surpass the record set last year.”

Sales in June declined 14.2% in the Northeast, 13.1% in the West and 2.9% in the Midwest and increased 9.6% in the South. But in all four regions sales activity on average increased in the second quarter over the first quarter of this year.

The 374,000-unit inventory of new homes for sale in June represented a 3.4-month supply at that month’s sales pace. “The inventory situation improved during May and June as sales surged, and the supply-demand balance in the new-home market was very, very healthy at mid-year,” Seiders said. “That bodes well for both housing production and home prices in the months ahead.”

Record Pace of June Home Re-sales Will Be Tough to Beat, Realtors Say

Stoked by an improving economy and affordable interest rates, sales of existing single-family homes climbed 2.1% in June to a seasonally adjusted annual rate of 6.95 million units, toppling May’s short-lived record, according to the National Association of Realtors®.

Housing re-sales in June were 17.4% ahead of the pace of a year earlier, the Realtors® reported.

“Although we’ve been expecting sales to ease, it’s clear the market has tremendous momentum,” said David Lereah, the association’s chief economist. “The improving job market and higher consumer confidence are feeding into a large demographic demand for housing. It’s unlikely that we’ll top the pace in June, but home sales remain very healthy and are likely to stay quite strong, even with some easing expected in the second half of the year.”

Existing-home sales were up 3.5% in the Midwest, 3.1% in the West, 2.8% in the Northeast and 0.4% in the South.

Housing inventories at the end of the month slipped 0.8% to a total of 2.4 million existing homes available for sale, representing a 4.1-month supply at the current sales pace.

Lereah said that interest rates have been rising because of healthy economic growth and he predicted that they won’t dampen the strength of the nation’s housing market.

“In fact, mortgage interest rates will remain very favorable in historic terms for the foreseeable future,” he said. “One concern is for lower-income home buyers who are affected the most by a rise in financing costs — our hope is that the improving job market will provide the means to also afford decent housing at the lower rungs of the housing ladder.”

Lereah predicted that the 30-year, fixed-rate mortgage will rise to the 6.7% level by the fourth quarter of this year.

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.

Housing Starts in June Cool Down From Torrid Levels

Housing starts skidded 8.5% in June to just above 1.8 million units, down from an upwardly revised rate of 1.97 million units during the preceding month, the Commerce Department reported.

The torrid production levels of earlier this year, which were in the 2 million-unit range, were not sustainable, according to NAHB President Bobby Rayburn, “but something on the order of 1.8 million or 1.9 million is.” He added that builders remained confident about prospects for the balance of this year. “The market fundamentals remain healthy, with strong consumer demand, lean inventories and a favorable interest rate structure,” Rayburn said.

NAHB Chief Economist David Seiders said that the slowdown in June came largely in reaction to a shift in the Federal Reserve’s monetary policies. “With rampant speculation in financial markets that the Federal Reserve was about to launch an aggressive process of monetary tightening at the end of June, builders apparently became somewhat cautious, trimming both housing starts and permit issuance during the month," he said.

Since then, however, the markets have been mollified by reassurances from the Fed that it intends to boost interest rates at a measured pace, and mortgage rates subsided a bit, he said. “This certainly bodes well for housing in the coming months.”

Single-family housing starts fell 9.5% in June to a pace of 1.489 million. This was a 1.1% drop from the pace of a year earlier, but for the first half of this year single-family production was up by 12.2%.

“While the June figure is a bit of a surprise, it is still quite strong by historical standards,” said Seiders. “In fact, we expect single-family starts to post an all-time high in 2004, surpassing last year’s record 1.499 million units.”

The pace of multifamily housing starts decreased 3.7% from May to a seasonally adjusted annual rate of 313,000 units. This was down 9.3% from a year earlier, but the sector was up by about 6% so far this year.

New home construction was down in all four regions of the country: 16.5% in the West, 11.5% in the Midwest, 3.5% in the Northeast and 3.1% in the South.

The backlog of unused building permits rose substantially in June, particularly in the single-family sector, as builders reassessed the financial market climate, Seiders noted. “This development should be a positive factor for housing starts in July.”

Eye on the Economy

David F. Seiders, NAHB Chief Economist
The economy hit a “soft patch” in June but the expansion has not stalled …

The U.S. economy expanded strongly in the second half of 2003, good forward momentum continued in the first quarter of this year and the second quarter was shaping up as even stronger. But the economy hit a “soft patch” in June as a number of important economic indicators came in well below expectations — including the employment report, retail sales, industrial production and housing starts/permits. Indeed, these factors caused a decline in the index of leading economic indicators for June and a virtual flattening of the coincident indicators index, prompting many analysts to question the staying power of the economic expansion.

While the “soft patch” surprised a lot of forecasters (including NAHB), the June slowdown apparently reflected some temporary factors such as a sharp jump in energy prices, a sag in auto sales as incentives expired and seasonal adjustment issues in the employment report. Recently available indicators are reassuring, including home sales and durable goods orders for June as well as car sales and consumer confidence for July.

We continue to believe that the evolving economic expansion is in a self-sustaining mode that will systematically soak up a lot of the remaining slack in labor and capital markets over the next six quarters despite tighter monetary policy and fading fiscal stimulus. Indeed, we expect GDP growth in excess of 4% in the second half of this year, followed by 3.8% growth in 2005 (on a fourth-quarter to fourth-quarter basis).

NAHB Chief Economist David Seiders analyzes the economy from the point of view of the housing market every other week in the free e-newsletter, “Eye on the Economy.” The preceding is a reissue of his July 28 edition. To subcribe to “Eye on the Economy,” click here.

Want more economic information? Find it in our publications.

Find more in-depth information in our three economics publications, Home Builders Forecast, Housing Market Statistics and Housing Economics. All are available by subscription. 

• Home Builders Forecast includes analysis of single-family and multifamily residential activities, residential remodeling and the full range of nonresidential construction as well as the macroeconomic factors such as GDP, employment and interest rates that drive construction. If your business depends on reliable estimates of housing starts, construction spending and remodeling activity, Home Builders Forecast is designed to meet your needs.
• Housing Market Statistics contains an overview of important developments and trends that serves as an executive summary of the current industry situation. It also contains annotated charts depicting movements in key indicators and tables providing monthly, quarterly and annual data for more than 250 variables.
• Housing Economics provides a rigorous monthly overview of the economy, along with monthly data for more than 100 local markets and in-depth analyses of the niches and nuances of home building markets. Available online or in print, it is written in terms that builders, manufacturers and housing finance professionals can understand and apply to their own businesses.
  
  Housing Economics and Housing Market Statistics are also available through BuilderBooks.com for a special combination rate. 

To learn more or to order any of these three NAHB economic publications, visit the Economics Publications Information section of the NAHB Web site or call 800-223-2665.

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.

Design Trends for Today’s Booming Boomer Market

While traditional styles and trends dominate in some regions and a more modernist architectural approach is embraced in others, most builders, not to mention the baby boomer market they serve, have one thing in common — an appreciation of excellence.

Because most boomers are well educated, technology-oriented and accustomed to a high standard of living, builders need to rise to the challenge, both in their marketing approaches and their home designs.

Some Basics That Boomers Seek

To attract the boomer generation and ensure success, be sure to include the following in your new homes:

• Superior craftsmanship, the highest quality structural materials, efficiency and innovative home design
• Lavish amenities and state-of-the-art interior features
  • Creative as well as ample lifestyle space
  • An eclectic interior design “package” that avoids the “in-suite” matched furniture look
  • Cutting-edge health and fitness facilities, access to information and a pedestrian-friendly environment minimizing the use of motor vehicles to complement their diverse lifestyles

Thanks to immediate access to a virtually unlimited supply of information available on the Internet, in newspapers and magazines and on cable TV, boomers are more home-savvy than previous generations.

But, while technology enables boomers to do their “homework” in their search for a new home or active adult community, most consumers have trouble negotiating some of the most significant in-home intricacies — such as proportion, scale and use of color.

While each of these elements can be appealing in and of itself, this does not necessarily mean they can all work together in harmony. Pulling these elements together to create an appealing product is just one example of why and how qualified interior design and selection center professionals are needed.

Design Trends That Will Make Your Products Appealing

During my years designing for the active adult market, evaluating its trends and scrutinizing its evolution, I have developed the following list of simple, yet necessary design approaches to key spaces to help create product that appeals to today’s boomers:

• Discovery: Evaluate your product with help from a professional designer through a “discovery” process of exterior/interior analysis. This will save you time and resources, and ultimately result in a superior product where construction-friendly options are properly showcased.
  
  
• Foyer: The entrance should set the tone for the home’s interior and present a clear focal point of what’s to come. The larger the foyer, the larger the total living area of the home should be.
  
  
• High Ceilings: Ceiling heights should maximize the home’s square footage, make the home appear airy and project your product’s superior architecture. Ten-foot ceilings throughout are popular, with coffered ceiling accents in foyers, owner’s suits and baths. Family rooms can include a combination of 10-foot ceilings and two-story spaces accented with generous transom windows.
  
  
• Kitchen: The trend in the kitchen is to create a space that serves as the home’s informal daily gathering place; therefore, there should be no compromising on design or budget. Since boomers spend plenty of money in options during the pre-construction phase, builders should offer state-of-the-art conveniences in the kitchen. This includes high-end cabinets and counters, cook tops with designer tile backsplashes, extended counters at a “non-bar” height and well conceived lighting.
  
  
• Living Room: For single-family homes, the national trend is to render a smaller, library-sized area with a wet/dry bar feature and comfortable seating. In a condominium or penthouse, a more traditional approach is needed that features ample seating, generous windows and a fireplace and TV appropriately positioned.
  
  
• Dining Room: Formal dining remains popular, allowing designers to craft fresh, fully-functional dining areas to entertain guests.
  
  
• Powder Room: Though a relatively tiny space, the powder room can serve as the equivalent of fine art, especially when modern furniture, quality cabinets, state-of-the-art sinks and toilets and decorative lighting are included.
  
  
• Owners’ Retreat & Bath: Inspired by palatial European hotels and guest villas that American travelers covet, these grand rooms represent old world indulgence bathed in 21st-century products. The challenge is to create separate areas for sleeping, reading or exercising and accenting them with tantalizing appointments such as fireplaces, a dry bar with under-counter refrigerator and an abundance of strategically-placed windows to maximize the view while also maintaining privacy.
  
  
• Guest Room & Bath: As a design and architectural trend, the guest room is a relatively new but popular addition to the home. It works well for the extended guest or someone who merits VIP treatment. This space should be over-scaled to accommodate furniture and an adjoining bath that adheres to Americans with Disabilities Act (ADA) principles.
  
  
• Gathering Room: Is it a family room or a great room? No matter, the gathering room is all about lifestyle and features ample space for practical furniture placement, comfortable TV viewing, a fireplace and plenty of windows.
  
  
• Rail System: Newer appointments such as elaborate iron rails are quickly becoming popular not only with consumers but with builders, too, because of their easier accessibility and more reasonable pricing.

Like architects, community planners, construction personnel and sales associates, the role of the interior designer will be tested like never before as the boomer generation heads into what will be the busiest buying period in U.S. history. Working in lasting partnership, all members of the building industry stand to gain unprecedented success in satisfying the specific requirements of today’s affluent active adult home buyer as well as the “booming” market about to erupt.

Cathie Daly is president of Medford, NJ-based Design East, Inc. Daly and her team of design professionals apply strategic planning to model homes, sales environments, community clubhouses and design centers. Daly is the 2004 president of the New Jersey Builders Association’s Senior Housing Council, a local council of the NAHB Seniors Housing Council. She also has served on numerous national subcommittees. She can be reached by e-mail or at 609-654-9675.

Help Your Clients Be Good Neighbors — And Maybe Pick Up a Job or Two

Embarking on a new remodel can be an exciting time for your clients. But that’s not necessarily the case for their neighbors. Not only will the neighbors probably be less than excited, they could become downright aggravated by the disruption your job will bring to the neighborhood.

They could be offended by all the trucks sitting in your clients’ driveway or by the dumpster out on the street. They may feel jumpy, angry or even violated by all the workmen who suddenly appear in their neighborhood — especially if it happens without their knowledge.

So, what can you do to reduce the friction and keep peace in the neighborhood? The answer is simple: advise your client to use some common courtesy.

Help your clients be good neighbors by advising them to give their immediate neighbors advance notification of the upcoming work. Let them know they should inform their neighbors:

• Of your upcoming presence
• The scope of the work
• How long the project will take
• When you will start and stop work during the day
• How long you expect the dumpster to be in the neighborhood

Common Courtesy Can Be a Great Marketing Tool, Too

Helping your clients make nice with their neighbors is also a great marketing opportunity for you and your company if you do a little legwork yourself. Simply stop by the neighbors or send them a letter to personally introduce yourself and your company to them.

Bob Peterson, CGR, CAPS, president of ABD, Ltd, in Ft. Collins, CO, sends a letter prior to starting work to all immediate neighbors introducing ABD, stating that his company intends to improve the neighborhood, that he and his employees intend to be seen and not heard, and inviting anyone who has questions to contact him directly.

“We also follow up mid-project to give an update and then send a letter out at the end of the project thanking the neighbors for letting us disturb the neighborhood and, of course, invite them to contact us if they need some work done,” says Peterson.

Michael Strong, CGR, CAPS, vice president of Brothers Strong in Houston, also sends a detailed letter to his clients' surrounding neighbors. In his company’s letter, Strong gives his company’s telephone number in case anyone is upset about the construction. He also includes a detailed list about how to keep the neighborhood’s children safe during the construction process.

In the letter, Strong asks the neighbors to enforce a few safety rules with their children concerning the construction site, such as:

• Stay clear of the work area.
• Never touch any power tools.
• Do not climb on piles of lumber.
• Do not climb on insulation or equipment.
• Do not play near, or in, dumpsters.
• Do not play around trash piles.

Instead of sending a letter, Rick Montelongo, president of Montelongo Homes and Remodeling in San Antonio, sends representatives to visit each immediate neighbor at the outset of the project and explain to them what is going on and how to get in touch with the company should they have any questions or concerns.

Also, during the job, Montelongo puts a “take one” information box with the company’s brochure next to the company sign in the front yard.

Don’t Forget to Have Your Crews Do Their Part

While alerting the neighbors to an upcoming project is a great courtesy, it is also important that work crews be courteous when working.

Bill Asdal, CGR, president of Asdal Builders, LLC in Chester, NJ, established some neighborhood courtesy rules for his construction team. Asdal instructs his team:

• Do not block driveways when parking or ease wheels onto the client’s or neighbors' lawns.
• Abide by municipal ordinances such as those pertaining to noise, lighting or truck idling during work hours.
• Do not blow debris around yards — all debris should be placed in a container and covered.
• Do not play radios loud and only use loud tools during normal, acceptable work hours.

Asdal also recommends conducting informal walk-throughs for those curious neighbors who want to know what’s happening inside the house — with the client's permission, of course.

By everyone playing their part and using common courtesy before and during a remodeling project, not only can your clients keep peace in their neighborhoods, you may also pick up a few new clients and jobs.

Nominate the Best of the Best for Remodelor™ of the Year

Applications for the Remodelors™ Council’s most prestigious awards program, the Remodelor™ of the Year Award, are now available online at www.nahb.org/remodelors under the Awards section.

The Remodelor™ of the Year Award recognizes exemplary NAHB involvement at any level, superior business management and an outstanding contribution to the remodeling industry. Councils should nominate individual remodelers, but the nominee must write his or her own entry essay.

The winner will be announced at the Remodelors™ Council Gala during the 2004 Remodeling Show in Chicago (Oct. 8).

Local Councils Honored With CADRE Awards

The Council Awards for Demonstrating Remodeling Excellence (CADRE) is awarded to local Remodelors™ Councils for superior member service in the categories of:

• Membership Recruitment & Retention
• Community Service Project
• Public Relations & Promotion
• Outstanding Associate Member
• Member Service/Education
• Government Affairs/Legislation
• Outstanding Council Chair
• Outstanding Executive Officer/Council Coordinator

For information, e-mail the Remodelors™ Council or call 800-368-5242 x8216.

Consumer Publication Explains Ins and Outs of Building and Buying Log Homes

A free publication from the NAHB Log Home Council is geared to helping consumers buy, build and maintain log homes. Included is information on the merits of different wood species, the intricacies of construction-to-permanent mortgages, the energy properties of log homes and code requirements.

The 18-page, color publication gives home buyers and log home enthusiasts a brief history of the industry and highlights do-it-yourself advice, energy efficiency and financing options for modern log homes.

A free copy of  “The Log Home: An American Dream” is available by calling the NAHB Log Home Council at 800-368-5242 x8576. The publication can also be purchased in bulk quantities.

“Log homes are a unique part of the home building industry both in terms of aesthetics and logistics,” said Rich Horn, 2004 president of the NAHB Log Homes Council. “The Log Homes Council has always sought to educate consumers and make the path to log homeownership more navigable.”

All of the articles in the publication were written by members of the Log Homes Council, who share their decades of experience in selling, marketing, building and living in log homes.

For more information about log home construction, click here.

Call for Speakers for the Design Program at the Builders’ Show

Architects, builders, interior designers and merchandisers are invited to participate in the International Builders’ Show design programs — some of the most popular programs offered at the annual convention.

There are 28 design programs slated for the Orlando show concentrating on a variety of design topics including:

• National design trends
• Kitchen and bath designs
• High-end home design
• Floor plans
• Community, multifamily and traditional neighborhood design

The IBS design programs continue to be among the most popular and well attended of all NAHB convention programs.

For a list of all 28 programs and an application, contact Michelle Persinger Matuga at 800-368-5242 x8343 by Friday, Aug. 6.

Agreement Promotes Job Safety for Mexican-Born Workers

A joint declaration signed on July 21 by U.S. Labor Secretary Elaine Chao and Mexico Secretary for Foreign Affairs Luis Ernesto Derbez is an excellent step toward improving workplace safety for Mexican-born workers in the U.S., according to NAHB.

“Hispanic workers are a vital and valued source of labor for home building in this country, and it’s essential to ensure that they and anyone for whom English may not be a primary language have the training that can keep them safe on the jobsite just as others do,” said NAHB President Bobby Rayburn. “The nation’s home builders commend Secretaries Chao and Derbez for signifying our countries’ ongoing commitment to protecting those workers’ health and well-being.”

NAHB and its 215,000 members share in this commitment, and are doing their part to promote workplace safety through a recently signed alliance with the Occupational Safety and Health Administration (OSHA), Rayburn noted.

The alliance focuses on providing NAHB members and others in the residential construction industry with information, training opportunities and guidance that will help to reduce and prevent exposure to residential construction industry hazards.

This effort specifically emphasizes increasing access to this safety information for Spanish-speaking workers.

In a related move, NAHB and OSHA recently worked together to produce an English-Spanish edition of a comprehensive Jobsite Safety Handbook, and NAHB is currently developing a number of similar resources in both languages.

NAHB will also participated in the July 22 Hispanic Safety & Health Summit held by the U.S. Department of Labor and OSHA.

Superintendents in Ft. Myers, Florida, Latest to Complete Training Program

Four students from the Lee Building Industry Association in Ft. Myers, FL, are the latest Floridians to join the ranks of the 138 dedicated professionals who have earned the Residential Construction Superintendent (RCS) designation.

The designation program is comprised of a series of courses geared to improving the expertise of current field superintendents or those who are just entering the industry.

Since its inception in the fall of 2002, the RCS designation program has increased its course offerings significantly as more and more employers have recognized the value of continuing education for their employees.

“This program increases the profitability of our company by teaching our employees how they can be more effective on the job site,” says Stephen Gidus, CGR, president of the HBA of Metro Orlando, who signed up three of his company’s employees for the training. “This designation also lets our customers know that we are dedicated to providing our employees with the resources they need to build a quality product.”

Builders in Florida, in particular, have been leading participants in the RCS program, with at least three HBAs offering courses at any given time. In addition, for the second year in a row, the Florida Home Builders Association is offering all eight courses at the Southeast Building Conference (SEBC).

The eight, four-hour RCS courses cover issues and subjects identified by NAHB members as critical to a field or site supervisory job. Upon successful completion of the courses a Residential Construction Superintendent designation is awarded.

The RCS designation is a program of the Home Builders Institute, the workforce development arm of NAHB.

HBAs in California, Florida, Kansas, Missouri, Maryland, Nevada, New Hampshire, North Carolina, Texas and Virginia have scheduled courses during the balance of this year.

In an effort to increase the success of the RCS program, the National Housing Endowment has awarded the Home Builders Institute a grant to help develop the next tract of advanced-level superintendent training. Work on these courses is underway, with an anticipated rollout in early 2005.

HBI will host “The Making of a Super Superintendent” — an informational session on the RCS designation series — at the International Builders' Show in Orlando in January.

For more information, e-mail Maria McIntyre or call her at 800-795-7955 x8912.

Spray Wand Button Provides Personal Shower Control

Now available on all eight Danze Collections of bath faucets, the innovative Soft Touch Personal Shower system enables bathers to control their showers by simply pushing a button on the spray wand, rather than operating a separate diverter valve lift rod or lever.

Headquartered in Bolingbrook, IL, Danze is a brand of Globe Union America Corp. Plumbing Fixtures LLC-Danze is a member of the National Council of the Housing Industry — the Supplier 100 of NAHB.

The innovation, says the manufacturer, makes using its Roman tub shower easier and also reduces clutter on the tub deck.

Danze has designed two new personal shower styles to complement its faucet styles: the contemporary ShowerStick™, a hand-held wand that sprays with a refreshing, gentle pattern; and a traditional styled wand.

Danze is a leading manufacturer and marketer of premium decorative products, including kitchen and bath faucets, specialty faucets, showerheads, shower arms and bath accessories.

For more information, click here, or call 877-530-3344.

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.

Deadline for Insurance Survey Extended; More Participation From Builders Needed

The deadline for returning surveys and other materials for NAHB’s general liability insurance (GLI) initiative has been extended.

NAHB is partnering with Marsh, a global insurance and consulting firm, in an effort to develop new GLI products that will meet members’ needs. NAHB and Marsh are seeking to get an accurate national picture of the loss experiences of the residential construction industry and to develop new GLI products exclusively for the NAHB membership.

The first step in this initiative is to gather insurance information from members. NAHB is asking builder, remodeler and trade contractor members 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.

”We have extended the deadline because we need participation from more builders,” said NAHB President Bobby Rayburn. “This effort to develop new GLI products will not work if builders, remodelers and trade contractors don’t provide their information. With insurance costs rising and exemptions making coverage less effective, it’s in everyone’s interest to participate in this effort.”

Rayburn also pointed out that the quality of the data is important. “Marsh needs five years of policy information, but 10 years is even better. And people should take a few minutes to do this right,” he added. “Make sure you’re completing the entire survey. Put the consent letter on your letterhead. Photocopy your policy information. Then send all those materials to Marsh.”

“Thirty minutes of your time could end up saving you thousands of dollars in GLI costs,” Rayburn said.

For the survey, consent letter and background information about the GLI issue, NAHB members can click here, or e-mail Blake Smith or call him at 800-368-5242 x8583.