Nation's Building News Online: August 9, 2004Print All Articles Text Version |
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Workers in the South Singing Housing Affordability BluesThe Northeast and the West are not alone in experiencing affordable housing woes, according to recent research from the Center for Housing Policy showing that low- to moderate-income families are also having a hard time finding affordably priced housing in a majority of metropolitan areas in the South. The latest findings of the center’s ongoing study, “Paycheck to Paycheck: Wages and the Cost of Housing in America,” show that the median incomes of elementary school teachers, police officers, licensed practical nurses, retail salespersons and janitors are inadequate to qualify for a median-priced home in Atlanta; Baton Rouge, LA; Birmingham, AL; Charleston, SC; Charlotte, NC; Columbia, SC; Greensboro, NC; Jackson, MS; and Melbourne, FL. On the rental side of the market, the study also found that salespersons and janitors had to pay an excessive share of their income for a one- or two-bedroom apartment in those and other Southern cities. The Center for Housing Policy is the research affiliate of the National Housing Conference. A companion study just released by the National Association of Counties (NACo) and funded by Freddie Mac — “Paycheck to Paycheck: Wages and Cost of Housing in the Counties, 2004” —identified Flagler County, FL (the Daytona Beach metropolitan area), Fulton County (Atlanta metro area) and Buncombe County, NC (the Asheville area) as especially problematic housing areas for the occupations listed above. For example, an income of $51,000 was needed to qualify for the median-priced home of $164,100 in the Daytona Beach area, where police had a median income of under $31,000, firefighters around $33,000 and elementary school teachers $40,000. Serious affordable housing shortages were also reported in many of the largest and fastest growing jurisdictions in the country. Approximately 85% of the county officials noted that most new housing in their counties is geared to middle- and upper-income households, not working families. “The most pervasive barriers to creating affordable housing, reported by three-quarters of the counties, were Not in My Backyard attitudes (NIMBY-ism) and lack of public funding,” the report said. The survey was completed by 98 counties and low- to moderate-income families were defined as those earning between the national minimum wage of $10,712 and the national median household income of $42,209. Seven out of 10 officials participating in the NACo poll said that affordable housing for working families was a “very big” or “fairly big” issue for their community. Housing shortages, they said, have been accompanied by such related problems as long commutes (45%), difficulty among local businesses in attracting and retaining workers (40%) and traffic congestion (30%). Four out of 10 counties said that they have seen an increase in the number of working families applying for housing assistance. And more than one-quarter said that the scarcity of affordable housing had caused crowding and the “doubling up” of working families in some communities. Building News Coast To CoastBetter Homes, Higher PricesHistorically low mortgage rates helped to drive the average new-home price up 22% over the past four years. While price gains have been pushed into the spotlight, less emphasis has been placed on how home quality has been measured up. According to the Census Bureau, an index that tracks size, location and upscale amenities has skyrocketed from 68.1 in 1980 to 124.8 in 2002, suggesting that the quality of new housing in this country has been improving dramatically. Luxury Home for Sale: 6 Bdrms, Dumpster VuWCI Spectrum Communities CEO Mitchell Hochberg says home buyers must be willing to compromise in terms of location if they want to live in major metropolitan areas. According to NAHB economist Gopal Ahluwalia, prime parcels are hard to come by in markets like New York, Washington, Los Angeles, San Francisco, San Diego and Boston. In turn, the dwindling supply of developable land — along with growth restrictions imposed by local governments — are blamed for soaring home prices on the East and West coasts. In order to meet demand, many builders have resorted to less desirable locations next to airports, highways, railroad tracks and low-income developments. For instance, developers in Florida have been forced to move away from the waterfront. Meanwhile, John Laing Homes is building $600,000-plus homes across from a vacant factory in Anaheim, CA. This Old House Isn'tThe latest trend in residential construction is the use of new materials that are scraped, dented, worn and otherwise manipulated to make them appear old. Builders of homes costing $300,000 to $40 million are using the faux-aged look to gain a competitive edge. The trend stems from the demand for salvaged materials that emerged two decades ago; but builders are now achieving this look with newer windows, stairs and other features to meet building codes and make homes more energy-efficient than their predecessors. For instance, builders increasingly are incorporating foam beams that resemble aged wood and walls and fabrics that have been rubbed so that they appear worn, among other strategies. Many buyers prefer new substitutes that give their property an aged appearance but that do not require approval from historical societies or demand substantial maintenance as a truly old dwelling might. Different Cultures Value Different FeaturesHome builders and designers are starting to take the needs of individual cultures into account, as immigrants make up an increasingly large segment of the home buying population. For instance, immigrant households generally tend to be larger and are more likely to combine families within one residence than U.S.-born households. Therefore, foreign-born buyers tend to seek larger properties with more bedrooms and a garage. According to Henry Cisneros, CEO of urban home builder American CityVista, Hispanic families typically prefer gas ovens and great rooms rather than living rooms. Oscar Gonzales of the Asian Real Estate Association of America, meanwhile, says that Asian immigrants are more likely to buy newer homes that accommodate their preference for feng shui — a Chinese philosophy that suggests the physical environment has an effect on one's fortune and well-being. Immigrants Chase American DreamU.S. economists believe the flood of immigrants pouring into the country will underpin continued strength in the housing market, as these newcomers place a high priority on homeownership. Faced with language and cultural barriers, bias, lack of credit histories, the issue of legal status and escalating property prices in the high-cost markets where they tend to settle, among other obstacles, they still trail American-born citizens in terms of homeownership. In a move to capture the vast potential of the immigrant home buying population, however, the residential real-estate industry is reaching out to assist with a variety of programs covering everything from financial training to downpayment help. Home builders are working with feng shui consultants to better relate to Asian customers; the National Association of Realtors® and other groups are placing greater focus on cross-cultural marketing; and GMAC Mortgage, in conjunction with the League of United Latin American Citizens, has made a four-year commitment to provide more than $400 million in loans to Hispanic communities, to name a few initiatives. Latino Home Buyers Focus of Study"El Sueno de su Casa: The Homeownership Potential for Mexican-Heritage Families," a report from the University of Southern California's Tomas Rivera Policy Institute, underscores the need for bilingual outreach programs and alternative mortgages to attract Latino home buyers. A whopping 700,000 additional Latino families would achieve homeownership if such strategies were implemented, according to the study, which was funded by Freddie Mac. The survey of 1,400 Mexican families in Los Angeles, Houston and Atlanta found 84% of respondents interested in a home purchase and more than half planning to act on that desire within five years. By the end of the decade, the institute predicts that 1.5 million Latinos will have become home owners. Ownership Gap for Single ParentsFreddie Mac reports that 69% of single fathers were home owners in 2001, but only 45% of single mothers had achieved that status. Much of the disparity can be attributed to differences in median income, with men earning $35,345 annually in 2002 and woman taking home only $25,862. According to Institute for Women's Policy Research Director Avis Jones-DeWeever, low-income women set aside as much as two-thirds of their paychecks for housing. Although demand for shelter assistance is on the rise, research by Harvard University's Joint Center for Housing Studies reveals that the growing budget deficit is spurring program cuts. Solo PerformancesFannie Mae expects 28% of all households to be headed by unmarried women by the end of the decade. Already, this demographic is outpacing its male counterpart, with the National Association of Realtors® reporting that 21% of home buyers in 2003 were single women compared to 11% who were single men. The boost in single-women buyers can be attributed to higher incomes, low interest rates, investment plans, the high divorce rate, longer life expectancies and the fact that many are postponing marriage. Single women typically buy condominiums or single-family dwellings in dense clusters, and many make the purchase with unmarried relatives or friends. However, the homeownership rate among single women lags considerably behind that of married couples — who accounted for 59% of sales in 2003 — due to the absence of knowledge about the purchase process and credit problems. Single mothers also own fewer homes than single fathers. Those who do achieve homeownership are urged to stick with well-known lenders that are less likely to engage in predatory practices as well as ensure that only their name appears on the title. Designing Spaces: More Home Owners Seek to Add ValueAccording to a survey of 200-plus Realtors®, interior designers and landscape architects, as much as 30% of a home's value can be tied to the deck, patio, courtyard, pool, garden and other outdoor spaces. "Designing Out: Laneventure's Home Lifestyle Report" reveals that home owners increasingly are enhancing their outdoor living areas for entertainment purposes, often modeling the design and quality after that of their interior spaces. "We're starting to see the added emphasis of style and function when it comes to designing outdoors," remarks Laneventure's Gary McCray. While home owners are able to recoup nearly 80% of the cost of kitchen upgrades, research shows that returns of more than 100% are possible for outdoor improvements. Little Ones Figure Big in Marketing of HomesThough real estate agents are divided on whether or not a child's opinion matters when it comes to home purchases, builders and individual sellers can take steps to appeal to younger family members. Builders often use child-friendly floor plans and decor. As for resale properties, sellers would be wise to underscore top-notch school districts, the residence's proximity to parks and playgrounds and the presence of other children in the neighborhood. Experts say parents also look for safe neighborhoods and quiet streets, large yards and spacious rooms, among other things. State's Realtors Aid Home Builders' Suit Against Impact FeesThe Arkansas Realtors® Association has lent its support to the Northwest Arkansas Home Builders Association in its fight against impact fees in Bentonville. The builders group filed suit against Bentonville last year, questioning the city's power to impose the levy, equating the average $3,094-per-home fee with a tax and criticizing the inability to ensure that the fees are used appropriately. Officials in Bentonville say the ordinance stems from a 1993 court ruling that allowed the city of Marion — which had been sued by the Crittendon County Home Builders Association — to impose impact fees as long as the charges were reasonable and used for a specific purpose. The Realtors® group has contributed $2,000 toward the builders' legal costs and will provide money to cover the testimony of National Association of Realtors® government affairs representative Bob McNamara in the case. Housing: Affordability Drops During Second QuarterThe National Association of Realtors® reports a slip in its housing affordability index from 144.1 in the first quarter to a two-year low of 133.6 in the second quarter, with a reading of 100 indicating that households earning the U.S. median income make just enough to afford a median-priced dwelling. The median resale price surged 9.1% from the second quarter of 2003 to $183,800 between April and June of this year, while the median income edged up 3% to $54,884 during the same period. The decline in affordability can be attributed to rising mortgage rates and home prices. NAR economist Lawrence Yun expects the 30-year mortgage rate to hover around 7% by the close of the year. Wi-Fi + VOIP = ?Voice over Internet protocol (VoIP) and wireless Internet technology (Wi-Fi) may soon be combined to allow wireless calls to be made over the Internet. A number of companies are working on making wireless Internet phone calls commercially practical, which would mean less traffic over cellular networks. Isen.com principal David S. Isenberg says that both price and the ability to perform Internet applications over wireless networks will drive the technology, and cellular providers are looking into the potential market to avoid losing revenue. Nextel Communications says it is interested in phones that would use Wi-Fi; diverting some calls from the cellular network could keep a company from having to increase its network. Technical issues include the short range of Wi-Fi signals, and equipment manufacturers are working on devices that combine cellular and Wi-Fi technologies. Motorola wants to create a phone that can be used indoors on a wireless network and outdoors on a cellular network, eliminating the use of a wired phone. This presents the challenge of switching a call from one network to the other without interruptions. Wi-Fi also requires more battery power. Pedestrian-Friendly Project Mixes Homes, Shops and Offices in North CarolinaExemplifying smart growth strategies that are creating new housing in established locations, a major redevelopment of a Raleigh, NC, commercial area will be the centerpiece of a vertical mixed-use development integrating housing, shops, restaurants and office space. The project, The Galleria of Crabtree, is being led by North Carolina developer Mark Tipton. The 12-acre development will include 600 multifamily rental units, 250,000 square feet of retail space and approximately 150,000 square feet of office space. The Galleria is being built across from a major regional mall to which it will be connected by a bridge and moving sidewalk crossing a creek and a five-lane road. Tipton, a former NAHB president, came out of early retirement to undertake the project. His first step was to put together a development team, which includes North Carolina architect and Frank Lloyd Wright disciple Bennett Strahan, who was lured from retirement in Cimarron, NM. When Strahan was in North Carolina for a wedding, Tipton asked him to stop by his house to look at some art. “When he got here I had my layouts and I said, ‘Bennett, what would you do with this property?’ About an hour later he was saying ‘we could do this and we could do that,’” Tipton said. “Then he looked at me and said, ‘you tricked me again.’ Now Strahan has a full office in Raleigh with 10 architects and support staff,” Tipton said. The project is located on one of the premier sites in Raleigh, but the topography is rough and hilly. There are traffic considerations, and topping off development challenges, the property is adjacent to a section of the Raleigh greenway system that runs along Crabtree Creek. To overcome the challenges, the development team created a plan that played to the natural advantages of the site and complied with a well-developed “Small Area Business Plan” put in place by the city. But it wasn’t easy. “We’re removing 300,000 cubic yards of dirt,” Tipton said. “It’s the equivalent of digging out three football fields, 38 feet down. Then we’ll put in a four-level parking deck, with the fourth level being surface parking and retail space.” “North Carolina is famous for its brick, so we’re using that brick throughout this project,” he said. “We’ll have brick arches, using the arch styling that is indigenous to this area. The majority of the exterior will be brick and stucco. It will also have some European themes, with a lot of outdoor cafes and open space. We’ll have fountains in the promenade area. It will also be pedestrian friendly, with a lot of green grass and areas to eat outside. Alcoves for Artists “Our design includes a series of alcoves where artists will be able to set up on Saturdays and Sundays to paint or sell their art,” Tipton said. “We want this to be a comfortable setting where people can gather, meet their friends, do some shopping.” The response to the project has been very positive, Tipton said. “I’ve never had a project generate so much excitement and acceptance. We didn’t have a single vote against us. We went through the Raleigh planning process in four and a half months.” The response from potential retail tenants has also been strong, Tipton said. “A lot of retailers now are looking for opportunities to get into pedestrian-friendly neighborhood projects.” Housing SnapshotMortgage interest rates declined a bit last week as the financial markets continued to digest unsettling economic news. A report on Friday that only 32,000 jobs were created in July helped drive the stock market average to its lowest level since December 10. In the meantime, according to most expectations, the Federal Reserve was preparing to notch up its federal funds rate by one-quarter of a percentage point to 1.5%. Its announcement on Tuesday will be closely read to see how the current "slow patch" in the economy might affect current monetary policy if it turns out not just to be a passing phase. Economic growth declined to a moderate annual rate of 3% in this year's second quarter. On the lumber price front, prices continued to move up aggressively. Random Lengths reported that the cost of framing lumber increased to $472 per 1,000 board feet, its highest level in more than five years. Panel prices were also on an upswing, following a brief respite earlier this summer. The price of 15/32-inch 3-ply CDX southern west-east plywood was $400 per 1,000 square feet, up from $370, and oriented strand board was $375, up from $340. Mortgage Interest Rates30 Year Fixed Rate: 5.99\% Housing Starts: Jun. 2004Total: 1.8 million\% 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 CrisisFellow 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. Bill Would Allow Businesses to Fax Clients Without Written ConsentBefore adjourning for its summer recess, the U.S. House of Representatives on July 20 passed the “Junk Fax Prevention Act of 2004” (H.R. 4600), which would allow small businesses and trade associations to use faxes to conduct business with their clients and members without having to obtain written permission from the recipient. Last year, the Federal Communications Commission, as part of its anti-telemarketing campaign, issued a rule requiring all fax transmissions to be authorized by a written and signed consent form from the intended recipient. The rule, which is scheduled to go into effect in January, would raise business costs for home builders, NAHB, its state and local affiliates and the many others to whom it applies. NAHB supports H.R. 4600 and Senate companion legislation S. 2603, which cleared the Senate Commerce, Science and Transportation Committee on July 22. The legislation would allow firms that have an “established business relationship” to transmit unsolicited commercial faxes to their customers and would give recipients the ability to opt-out of unsolicited faxes in the future. To read the legislation, click here and enter the bill number in the box at the upper left. For more information, e-mail Jim Tobin or call him at 800-368-5242 x8258. Zero Downpayment Bill Introduced in the SenateShortly before the Congress adjourned for its summer recess, Senator Gordon Smith (R-OR) introduced S. 2753, “The Zero Downpayment Act of 2004,” which would help working families realize the American dream of owning their own home. S. 2753 is the Senate counterpart to H.R. 3755, a bipartisan measure introduced earlier this year by Reps. Patrick Tiberi (R-OH) and David Scott (D-GA) to authorize the secretary of the Department of Housing and Urban Development to insure zero downpayment mortgages for single-family detached homes, condos, co-ops, manufactured housing and four-unit buildings. Currently, the FHA requires a 3% minimum downpayment under its single-family program. A top legislative priority of NAHB, the measure addresses one of the biggest obstacles facing families aspiring to become home owners — the ability to assemble enough funds for a downpayment. The Zero Downpayment Act of 2004 would allow families who seek FHA-insured loans to include the downpayment in their loan amount. These borrowers would still have to meet FHA credit qualifications and would pay a slightly higher annual interest rate to cover the cost of the program. Borrowers would also be required to receive counseling to ensure they are ready for the financial responsibilities associated with homeownership. “This legislation provides a wonderful opportunity for those Americans who are on the edge of homeownership to begin building better lives and neighborhoods all over the country,” said Smith. To read the legislation, click here, and enter the bill number in the box at the upper left. For more information, e-mail Greg Brown or call him at 800-368-5242 x8421. House Bill Boosts Section 8 Appropriations, Cuts Other HUD ProgramsShortly before Congress adjourned for its August recess, the House Appropriations Committee approved the FY 2005 VA/HUD appropriations bill, which sets funding levels for several key housing programs. To offset an additional $1.2 billion appropriation for veterans’ medical assistance, lawmakers cut the NASA and Environmental Protection Agency budgets, along with most Department of Housing and Urban Development programs, by an average of 4% from their levels for the current fiscal year. One notable exception was the Section 8 program. Many housing advocates had been worried that the program faced the possibility of substantial cuts during the budget wrangling process, but it ended up receiving a handsome increase over last year’s funding levels. The legislation is expected to go to the House floor in early September. The Senate has not yet acted on its version of the bill, and NAHB is urging those who are working on the budget to maintain funding for housing programs at last year’s spending levels. Highlights of the FY 2005 VA/HUD appropriations bill:
For more information, e-mail Jenna Morgan Hamilton or call her at 800-368-5242 x8407. Commerce Department Urged to Stop Dragging Its Feet on Eliminating Lumber DutiesA determination released by the U.S. Commerce Department on July 30 would cut countervailing duties on imported Canadian lumber by more than half, but NAHB continues to urge the U.S. government to take more decisive action and totally eliminate the tariffs before they further erode the affordability of new housing. “The Commerce Department is moving in the right path, going from a rate of 18.79% down to 7.82%,” said NAHB President Bobby Rayburn. “But we believe that the duties should have gone straight to zero and that is the message that we continue to send to the federal government.” The Commerce Department proposed the lower tariff in an attempt to comply with a North American Free Trade Agreement (NAFTA) appeals panel. The panel can choose to accept the new rate, or ask the Commerce Department to make further changes. In January, the NAFTA panel rejected an Administration proposal to reduce the duties to 13.23%. Until the NAFTA panel rules on the latest proposal from the Commerce Department, the 18.79% countervailing duties will remain in effect. Anti-dumping duties bring the total tariffs to 27.2%. As a result of the tariffs and strong demand for softwood lumber in the U.S. and overseas, the cost of framing lumber increased from less than $300 per 1,000 board feet last summer to a recent peak of $472 last week, according to Random Lengths, a trade publication based in Eugene, OR. A separate NAFTA panel is expected to rule shortly on whether Canadian lumber imports represent a threat of injury to U.S. producers. A definitive ruling by that panel, which may come later this month, could end the entire litigation process and require the Administration to eliminate the duties altogether — if there are no further appeals from the U.S. “It’s time to end the duties on Canadian lumber shipments and once and for all rescind this hidden tax that has been imposed on American home buyers and renters,” said Rayburn. For more information, e-mail Michael Strauss or call him at 800-368-5242 x8252. OSHA Considers Requiring Employers to Pay for Employee Personal Protective EquipmentThe Occupational Safety and Health Administration (OSHA) is seeking comments from the public on a proposal to require employers to pay for all types of personal protective equipment (PPE) used by employees under OSHA standards, with the exception of safety shoes and prescription safety glasses. OSHA is also considering exempting “tools of the trade” from the requirement. These are items typically supplied by the employee and carried from job to job, such as hard hats, safety glasses and gloves. Current OSHA standards usually state that the employer is required to “provide” protective equipment, without specifying who has to pay for it. However, some standards, such as those for respiratory protection, require the employer to provide the equipment at no cost, and recent OSHA regulations have been moving towards that requirement for all necessary PPE for employees. Those who oppose requiring employers to pay for protection equipment that is considered a “tool of the trade” are encouraged to send a comment to OSHA. Several points can be brought to the agency’s attention:
Interested NAHB members must submit comments to OSHA no later than Aug. 23. Comments can be submitted via:
“Docket Number S042” should be included on the submission. For more information, e-mail Rob Matuga or call him at 800-368-5242 x8507.
'Jobsite Safety Handbook: English-Spanish Edition' Available at BuilderBooks.com The "NAHB-OSHA Jobsite Safety Handbook: English-Spanish Edition," available at BuilderBooks.com, covers the key safety issues residential builders need to focus on to reduce injuries and fatalities in English and Spanish so you can easily convey important safety information to alll of your employees. This easy-to-use handbook contains the complete English and Spanish text side by side to facilitate communication in a straightforward manner. It provides guidelines for establishing a company safety program and identifies safe work practices that counteract the most common hazards found on the job site. To view or purchase this publication online, click here, or call 800-223-2665 to order. Wanted: Volunteers to Serve on ICC Code Development CommitteesThe International Code Council (ICC) is accepting applications for seats on its code development committees for the 2004/2005 cycle. The deadline for applications is Friday, Aug. 20. Each cycle, NAHB submits a full slate of nominees to represent the association and the home building industry on these committees. Builder participation on ICC’s code development committees is critical to ensuring that residential building codes remain practical and cost-effective. Builder volunteers play a vital role in helping to ensure that housing remains decent, safe and affordable. Fire Safety Committee Volunteers Especially Important Applications are currently being completed for those who have volunteered to date, but volunteers are still needed to represent the home builders on the International Building Code (IBC) Fire Safety Committee. This committee is especially important because it determines code requirements for emergency access and other items that impact broad areas of new construction. To volunteer or recommend another builder, send the builder’s name and contact information to Joe Knarich at jknarich@nahb.com, or call him at 800-368-5242 x8366. Builders' contact information is requested by close of business Friday, Aug. 13. HUD Releases Draft IBC Report for Public CommentThe Department of Housing and Urban Development (HUD) last week released for public comment its draft report evaluating the 2003 International Building Code (IBC). NAHB has begun reviewing the report and will submit comments to HUD in order to ensure HUD's safe harbor endorsement of the IBC for multifamily builders. HUD released its draft report on Friday, Aug. 6. The deadline for public comments is Sept. 7. HUD’s safe harbor endorsement is critical to ensuring that multifamily builders and designers are able to comply with the Fair Housing Act’s accessibility requirements by meeting the IBC. The IBC is the only model building code available for state and local adoption that incorporates the federal requirements — written in language builders and designers are accustomed to — that is enforceable at the local level. Without HUD's safe harbor endorsement, builders and designers are left to fend for themselves without the benefit of any kind of inspection mechanism or compliance verification. Under the federal Fair Housing Act, multifamily dwellings with four or more units — whether for rent or for sale — that were built for first occupancy after March 13, 1991, must meet certain design and construction requirements to make them accessible to people with disabilities. This includes all ground-floor units in buildings without elevators, all units in buildings with elevators, single-story townhouses and all indoor and outdoor common-use areas. NAHB worked with HUD to secure the safe harbor endorsement for the 2000 edition of the IBC and is doing so again for the 2003 edition. For more information, contact Jeff Inks at jinks@nahb.com or on 800-368-5242 x8547. Multifamily Stock Index Hits an All-Time HighThe stocks of publicly traded companies whose primary business is multifamily housing outpaced the market as a whole in June, pushing the NAHB Multifamily Stock Index (MFSI) to an all-time high. “The health of apartment company stocks on Wall Street is another sign of the overall strength of the housing market in this country,” said NAHB President Bobby Rayburn. “With the echo boom generation now moving into prime renting age and immigration levels expected to remain stable or even increase, the long-term outlook for multifamily housing looks very good indeed.” NAHB’s Multifamily Stock Index tracks the total returns (including capital gains and dividends) of 28 publicly traded firms principally involved in the ownership and management of apartments. During the month of June, the MFSI rose by 53 points, or almost 3%, to 1,882, an all-time high for the index and 22% higher than a year earlier. “Apartment stocks remain a darling for investors because they have offered attractive returns compared with other investment opportunities over the past five years,” said Elliot Eisenberg, a housing policy economist at NAHB and creator of the index. “Despite the consistently strong showing of the S&P 500 over the past year, the MFSI has outperformed it,” he said. “In fact, since December 1998 the MFSI has risen by 88%, while the S&P 500 with dividends reinvested has gained only 0.5%.” NAHB created the index in 2002 to track the performance of public firms involved in multifamily housing. To allow for historical comparisons to be made between the MFSI and other financial indexes, the starting point for tracking performance data for these publicly traded firms was set at Dec. 31, 1998. The MSFI appears monthly in NAHB’s electronic newsletter, Multifamily Market Outlook. The Importance of Good Design: A Remodeler’s PerspectiveGood design equals good customer service. A well-designed remodeling project can give a family more time together. Clients might ask for an expanded family room, a new kitchen that lets them cook together without bumping heads or a spare bedroom for guests so their teenage son doesn’t have to sleep on the couch when grandma comes to visit. Good Design Makes Clients’ Lives More Comfortable Good design enhances traffic flow. It lets people live more efficiently. This is especially important as more and more home owners telecommute from home offices. Chances are they have also have to keep an eye on the kids, toss laundry into the washer, prune the rose bushes, fetch grandma from the airport and…you get the idea. Good design makes their lives more comfortable. It adapts to the client’s needs. It persuades them to think outside the box and outside the living room when they are planning for the future. Good Design Won’t Stretch Clients' Wallets Your clients may have Mercedes dreams but a beat-up Chevy in the garage. Good design accommodates their bank account so they get the best of what they can afford. It means knowing what suppliers and products are out there, and how best to fit them into what your clients want. While you may have to steer your clients from the top-of-the-line washer and dryer so they won’t have to take in laundry to pay for it, the best construction crew can’t save a poor design. A good design saves your clients money by getting their wants and needs right the first time. That way, your subcontractor doesn’t’ become a permanent fixture in their home and you don’t earn a reputation around town as “the guy who built that really ugly addition.” Good Design Preserves the Character of the Original House A well-designed project may be innovative, but it always preserves the character of the original house and site. A remodeled Victorian becomes an improved Victorian, not a modern horror that neighbors point to and snicker. Good design means finding a place for a piano or a treasured antique. It gives an old house new life and preserves what the home owners already know and love about their house. Good design is a good neighbor that considers easements, codes and the community. It helps your clients keep up with the Joneses, not thumb their noses at them — unless that’s what they want. Good Design Brings Referrals Finally, good design can bring you more work. If your clients like your work, the whole neighborhood will hear about it. And that’s the best advertising you can hope for. Doug Sutton, Sr., CGR, CAPS, president of Sutton Siding & Remodeling in Springfield, IL, is the 2004 Remodelors™ Council chairman and active in his local, state and national associations. He was the first remodeler to be elected president of the Greater Springfield Home Builders Association and president of the Home Builders Association of Illinois. Sutton is a past chairman of NAHB National Representatives and was the first individual to be named National Representative of the Year twice. He is also an NAHB life director and served as chairman of the Remodelors™ Council in 1998. For more information, e-mail Sutton.
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:
For information, e-mail the Remodelors™ Council or call 800-368-5242 x8216. The NAHB University of Housing Offers Courses and Designation Programs The NAHB University of Housing offers a variety of business management courses and professional designation programs that set builders and remodelers apart from the competition. For a complete list of current offerings, click here. Attend the 2005 Custom Builder Symposium Expand your knowledge “Beyond the Tool Belt” at this year’s Custom Builder Symposium. This is the one event where custom builders can go for world-class education and exceptional networking opportunities. For more information, click here. 'Creating the Not So Big House' Available at BuilderBooks.com "Creating the Not So Big House," vailable at BuilderBooks.com, focuses on key design strategies such as visual weight, layering and framed openings as it takes an up-close look at 25 houses designed according to Not So Big principles — creating houses that value quality over quantity with an emphasis on comfort, beauty and details. The houses are from all over the country in a rich varity of styles. To view or purchase "Creating the Not So Big House" online, click here, or call 800-223-2665 or order. Home Owners Creating the Ultimate Spa ExperienceHome owners are increasingly altering their bathrooms to provide a luxurious space in which to relax and unwind, according to the NAHB Remodelors™ Council. “Today, we are seeing consumers spend more money to produce the ultimate spa experience right in their own bathrooms,” said Douglas Sutton, Sr., CGR, CAPS, chairman of the council and a remodeler from Springfield, IL. “The bathroom is an excellent place to invest money on a remodel, because your return can be as high as 90%.” The Remodelors™ Council has identified these as the latest trends in the bathroom:
Home owners who are looking for a bathroom redesign can download a free brochure, “How to Find a Professional Remodeler.”
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:
For information, e-mail the Remodelors™ Council or call 800-368-5242 x8216. The NAHB University of Housing Offers Courses and Designation Programs The NAHB University of Housing offers a variety of business management courses and professional designation programs that set builders and remodelers apart from the competition. For a complete list of current offerings, click here. Attend the 2005 Custom Builder Symposium Expand your knowledge “Beyond the Tool Belt” at this year’s Custom Builder Symposium. This is the one event where custom builders can go for world-class education and exceptional networking opportunities. For more information, click here. Tech Talk: Process Integration Levels Your Playing FieldThe next in a series of Tech Talks for builders. For some time now, consultants and IT vendors have sung the praises of integrated, automated back-office processes and systems. Not long ago, this meant that estimates could produce purchase orders; purchase orders could update accounts payable functions; and loan draws, customer deposits and accounts payable systems could update the general ledger. Better Efficiency Through Integration The benefits are obvious — the payment approval process, in particular, becomes much more efficient. For example: The superintendent inspects work done in the field and approves it. This triggers automatic approval of the electronic purchase order, which is set up to be invoiced and paid. At the same time, the task is recorded as complete in the construction schedule, and all dependent tasks are then scheduled. Exceptional costs are managed through variances, as are schedule changes and customer additions to contracts. Integrate Front Office Processes The next natural move is to integrate automated front-office processes and systems. In this scenario, production schedule milestones automatically update the payment approval process, while sales office systems automatically update the sales and closing backlog and the customer care process. Hand-held computers replace whiteboards and a computerized database replaces file cards containing information about prospects and buyers. Builders have struggled mightily to get to the point above. Integrated systems and software require everyone in the company to adopt a common set of procedures. Tasks must be standardized so that data used by a variety of systems is perpetually updated — not duplicated or corrupted as is often the case with manual systems. To a small-volume builder, just the process of synchronizing a Blackberry® to Microsoft Outlook® is a big job but has obvious benefits. Integrating every process of a home building operation is a daunting responsibility even for a mid-size builder, but consider how many redundant steps the payment approval process described above saves. Communicate Effectively With Trade Contractors, Vendors and Customers Process and systems integration does not stop there. The next dimension is to go outside the office and allow your automated systems to communicate with trade contractors, vendors and customers. Many builders are now opening up their Web sites to these “outside parties” with password-protected portals. The Web site is no longer an electronic billboard. It has become part or an extension of the virtual private network. This is not simply Bill Gates dictating what the future will be. The whole point of process integration is accomplishing more in fewer steps — with less paper and redundancy than ever before. It’s also about service to the customer. If you don’t embrace this evolution, your vendors and customers will demand it. Follow These Steps to Make Integration Work Smoothly Here are some pointers on making process and systems integration work for your home building company:
Systems Integration Lets You Compete With the Big Guys The exciting part of integrating systems and processes between the field, front- and back-office functions, and end users is that smaller builders can compete with larger builders using the same arsenal of speed and services on a level playing field. So keep up the grass drills and wind sprints and be agile. It’s a new world out there. Earlier Articles in This Series
Note: Various software products are mentioned throughout the tech talk series. The intent is not to recommend these products as being right for you, but to identify some fairly well-known players and to note a few new ones. My apologies to vendors who are not mentioned — the omission was not intentional. Bill Allen is president of W.A. Allen Consulting and a member of NAHB’s Business Management & Information Technology Committee. His company, headquartered in Redmond, WA, provides information technology consulting services and process management assistance to the home building industry. Allen can be reached at 425-885-4489 or via e-mail. Or visit the W.A. Allen Consulting Web site.
Run Your Business Better and More Profitably Click www.nahb.org/biztools to access hundreds of timesaving, moneymaking and cost-cutting resources. You’ll find guidance in a concise, easy-to-read format on topics like financial management, production, sales and marketing, customer service and human resources … to name just a few. Plus, get answers to your tough questions about how to use software to improve your bottom line in the Talk About Business & IT section. The NAHB University of Housing Offers Courses on Business Management The NAHB University of Housing offers a course on business management designed to help builders improve their business and profitability. For a list of current offerings, click here. Search keywords: “Introduction to Business Management.” Business Management Publications Available at BuilderBooks.com BuilderBooks.com offers a variety of other publications about business management. To view or purchase these publications online, click here. Anti-Growth Arsons Reported in the WestMembers of the radical environmental group, Earth Liberation Front (ELF), are claiming responsibility for arson and attempted arson at three residential construction sites in Snohomish County, WA. ELF, which uses arson, vandalism and other illegal methods to make their point, also is tied to June's $1.5 million arson fire in a St. Lake City area lumberyard. The Associated Press reports that the initials "ELF" were spray painted on a building at the lumberyard and on a truck, and that no one was injured. Messages including, "If you build it, we will burn it," along with anti-sprawl sentiments are typically associated with ELF attacks. The Seattle Times reported on June 12 that 10 area police departments were put on alert for possible acts of sabotage by ELF during their so-called "day of action and solidarity." The FBI says that the ELF has caused more than $100 million in damage since 1996. The group has been linked to arson and vandalism at agriculture research labs, logging operations, sport utility vehicle dealerships and construction sites. The costliest incident to date involved a $50 million fire last year that destroyed a five-story apartment complex under construction in San Diego. Additionally, the FBI reports that attacks claimed by ELF are moving into more densely populated areas. NAHB Takes Action In response to increased ELF activity, NAHB is setting up meetings with the FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives to discuss what additional efforts association members can take to better secure their job sites against potential attacks. Additionally, at the Pacific Coast Builders Conference (PCBC) in June, Laer Pearce & Associates made a presentation that focused on how builders can keep themselves from becoming victims of “green collar crime” and also get their projects out from under the barrage of community opposition. Panelists suggested a number of strategies for combating environmental extremists. To read the story in the July 17 edition of Nation’s Building News Online, click here. Further, according to its Web site, the grassroots organization, Stop-Eco Violence! (www.stopecoviolence.com) is committed to raising the awareness of eco-terrorism and the harm it causes others and to advancing legislative and law enforcement efforts to eradicate violence committed in support of environmentally motivated agendas. The group states that these homegrown terrorists put people at great physical risk and cause very real harm. Visit the site for more information and alerts, or read the July 21, 2003 NBN Online story by clicking here. Precautions Builders Can Take In the meantime, NAHB is urging members to take appropriate measures and institute precautions as they see fit to ensure security at their job site, especially after-hours. These precautions could include:
NAHB will report progress on this issue to the membership in NBN Online and through the local executive officers. Washington Post Examines Imbalance Between New Jobs and HousingLocal governments across the country are always working hard to attract more jobs. But those same local governments are not so quick to approve the housing that new workers will need. The discrepancy between job growth and housing demand is creating real hardship for millions of families, forcing many to commute long distances or to spend far too much for housing. A three-part series by Washington Post staff writer Peter Whoriskey explains the politics behind the housing crunch and how the jobs-housing imbalance affects families. Whoriskey’s series focuses on the Washington, D.C. region, but the story is the same in countless cities across America. The series begins with a look at affluent Montgomery County, MD, where the pace of job growth far outpaces the number of housing units approved by the county government. Whoriskey writes about growth in the County’s Clarksburg area: “The master plan approved by Montgomery County leaders permits enough office space and shops to employ 40,000 workers. But it deliberately does not provide for enough housing for all of those workers — fewer than 15,000 new homes. By the time Clarksburg is completed, homes for thousands of workers will have to be built elsewhere. "But where? The answer resounding from county governments across the Washington region these days is: not here.” Part II of the series looks at how the jobs-housing imbalance is forcing a growing number of families to commute long distances from home to work. Part III addresses the debate over density. To read the series, click here. You will be asked to register for the Washington Post web site. Registration is free. The link to these articles will become inactive after Aug. 22. For more information on this story or the land use issues it covers, e-mail Blake Smith at NAHB or call him at 800-368-5242 x8583. Active Adult Housing Most Expensive in Aspen, ColoradoWhile California remains among the most expensive states for home owners ages 55 to 74, Pitkin County, CO, tops the list of U.S. counties with the highest average active adult home values, according to an NAHB analysis of 2000 U.S. Census data. The 1,275 homes occupied by active adults in Pitkin County, best known for Aspen and its world-class ski resorts, were worth an average of $946,036. Pitkin was followed by New York County, NY, whose 42,844 homes owned by active adults averaged $829,631, and Teton County, WY, the location of 1,306 active adult homes averaging $650,526. Ten of the top 25 most expensive counties in the country were in California, led by fourth-place Marin County with 22,212 homes averaging $616,915 and fifth-place San Mateo, whose 49,245 homes were worth an average of $570,032. In all, 16 counties had average active adult home values of more than $400,000. The averages were computed by dividing the aggregate value of homes owned by the number of homes. Home values are based on owners’ estimates of how much their homes would sell for at the time of the 2000 U.S. Census. “The highest-priced counties are generally in resort areas near mountains or on islands, where the supply of land is severely limited by geography,” said Bonnie Solomon, chair of the NAHB Seniors Housing Council and a vice president of several retirement communities in St. Louis and Kansas City, MO, and Atlanta. “The others are in parts of the country known for extremely high housing costs, such as California and New York.” The chart below shows U.S. counties with the most high-priced active adult communities:
For more information, e-mail Jeff Jenkins at NAHB or call him at 800-368-5242 x8292. Former Go-Kart Racing Facility Converted Into Successful Seniors Apartment CommunityAn abandoned go-kart racing track might not seem like the best site for seniors apartments, but Los Angeles-based Meta Housing Corp. made it work. Meta Housing Corp., in conjunction with Western Seniors Housing, developed The Piedmont Luxury Senior Apartments, a 198-unit independent senior community in North Hollywood, CA, on a site formerly used as a go-kart racing and family recreation complex that had been vacant for years until the City of Los Angeles decided to designate the property for seniors housing. The Piedmont, built by Cobalt Construction Co. and designed by John Cotton Architects, is the winner of two design awards in the 2004 Best of Seniors Housing Design Awards competition sponsored by the NAHB Seniors Housing Council earlier this year — the Jurors’ Innovation Award and a platinum award for small active adult communities. 'Active Living in Place' — An Array of Services and Amenities Completed in January 2003 at a cost of $27 million, The Piedmont offers spacious one- and two-bedroom floor plans with designer touches such as built-in appliances, granite counter-tops, maple cabinetry, central heating and airconditioning, cable TV hook-ups and more. Individual units also include universal design and accessible features such as wider doorways, bathroom grab bars and easy-access electrical outlets. The developer also believed that on-site services and amenities should be incorporated into the project’s design, rather than added after completion. This philosophy, called “active living in place” as opposed to “aging in place,” involves designing in provisions for life-enhancing activities to ensure residents a greater fullness of life. Dedicating spaces and integrating them into the overall design draws residents from their units and makes it possible for them to interact, enhancing their health, happiness, self-respect and independence. Addressing this philosophy, The Piedmont includes the following community amenities:
Housekeeping and concierge services are available to residents, along with scheduled transportation to nearby shopping, dining, entertainment and commercial services. The community also is conveniently located near senior centers, health care facilities and public transportation. In addition, a range of on-site resident services are offered, all at little or no cost to residents. They include:
All of those programs are designed to improve residents’ well-being and satisfaction and encourage them to remain active. By supporting continued active lifestyles, the project team believed its approach helps delay the need for more expensive assisted living alternatives as residents age. Most Residents Are Empty Nesters From Surrounding Neighborhoods The Piedmont was built primarily for seniors who are able and want to live independently and who have household incomes of $40,000 or more, the median income for this market. A significant number of residents are empty nesters and widows downsizing from larger family homes but who want to remain close to family and friends — most are from surrounding neighborhoods. Most, also, remain active, have a multitude of interests and seek higher levels of service and attention than at typical apartment communities in the area. Keeping the Community Competitive Research indicated that senior renters in the area wanted prices far below comparable market-rate rentals, which range from $2,500 to $4,000 per month in buildings between 20 and 50 years old that have have fewer amenities and services. Rents at The Piedmont are less than half those amounts. Forty of the apartments (20%) were slated for low-income seniors meeting median area income guidelines. By combining service, luxury and competitive rents in a new community, the project team made a strong value statement in a market dominated by mostly older, less amenitized product lacking the features today’s seniors desire. To enter your community in the 2005 Best of Seniors Housing Awards competition, visit www.nahb.org/seniorshousingawards or contact Eucklan Matthews at 800-368-5242 x8220. Deadline for entries is Oct. 22. Enter the 'Best of Seniors Housing' Awards CompetitionThe NAHB Seniors Housing Council announces the call for entries for its awards competition — the 2005 Best of Seniors Housing design and marketing awards program, “Celebrating Excellence…Visions of the Future.” The program, now in its 12th year, recognizes architectural and interior designs and marketing approaches that have brought quality, innovation and spirit to the seniors housing industry. The awards program recognizes innovative design and marketing approaches to seniors housing in 108 categories — including 31 marketing categories — and is open to project owners, builders, developers, architects, remodelers, operators, interior designers and merchandisers, land planners and marketing/advertising firms serving the 50+ market. Entries are now being accepted. The entry deadline is: Oct. 22. New marketing categories for this competition include logo design, community brochure, direct mail piece/campaign, Web site, black-and-white and color print advertisements, radio commercial, television commercial and special promotion for active adult, service-enriched and multifamily seniors communities. The Best of Seniors Housing awards program also features a total of 77 design categories that recognize companies for meeting the ever-changing needs and desires of the seniors housing market. Platinum, gold and silver winners will be chosen for current and “on the boards” projects including, but not limited to:
Contest rules and the complete Call for Entries are available online at the NAHB Seniors Housing Council Web site. Or e-mail Eucklan Matthews or call 800-368-5242 x8220 for more information. The Best of Seniors Housing awards ceremony will take place during the 2005 International Builders’ Show in Orlando. 20 Club Forming for Seniors HousingNAHB, 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. Conference to Focus on Using Industry Performance Standards to Improve BusinessThe upcoming Benchmark 2004 conference will include sessions hosted by the NAHB Research Center on how company culture and customer relationships based on a formal quality assurance system can help set residential construction companies apart from their competitors. Targeted to housing industry members who want to create better performing, sustainable businesses that deliver high margins and satisfied customers, Benchmark 2004 will focus on the many ways in which high-performing home builders, professional remodelers, suppliers and manufacturers can differentiate their businesses. The conference will provide opportunities for networking and creating professional relationships based on camaraderie, advice and shared goals. Discussions will focus on industry performance standards that enable individual companies to share, learn and develop their own roadmap for achieving these standards. Seth Godin, Business Week magazine’s “ultimate entrepreneur for the Information Age” and the best-selling author of “The Purple Cow,” will give a keynote address on the benefit of using creative thinking to transform business ideas and strategies. Benchmark 2004 will be held Sept. 12-14 at the Hilton Hotel Riverside in New Orleans. For more information from the NAHB Research Center on the conference and how to register, click here. Job Corps Funding Receives a Boost in the House, But Labor Initiatives Fall ShortFunding for Job Corps in the coming fiscal year received a $1 million increase over the current year in the budget for the Departments of Labor, Health and Human Services, and Education passed by the House Appropriations Committee on July 16 shortly before Congress adjourned for its August recess. The program’s overall funding level was increased to $1.542 billion, $15 million short of the Administration’s request. Home Builders Institute (HBI), the workforce development arm of NAHB, is the largest training contractor in the Department of Labor’s Job Corps, annually placing more than 2,000 youths in industry jobs, a 90% placement rate for the institute’s Job Corps graduates. Workforce Investment Act (WIA) adult programs were funded at their current level of $900,000, and youth activities received $1 billion, as requested by the White House, a small increase over this year. A number of labor initiatives proposed by the Administration were not funded by the committee, including Challenge Grants, which would be used by model programs working closely with industry, and the Community Colleges Initiative, designed to provide training for industries with worker shortages. A new Prisoner Reentry Program, a $90 million Administration initiative unveiled by the President in his State of the Union address, was not funded; and the budget zeroed out the Responsible Reintegration of Youthful Offenders program, which provides the funding for HBI’s Project CRAFT in Nashville, a national model for training court-involved youths for industry jobs. The Carl Perkins Vocational and Technical Education for the Future Act, HR 4496, passed the Education and the Workforce Committee on July 21. The bill would merge funding streams for Tech-Prep programs and state grants, and require states to impose new accountability measures. It also contains a provision that would allow states to use incentives and sanctions to manage the performance of local programs. The bill now moves to the full House. The Senate Health, Education, Labor and Pensions Committee did not get around to voting on its version of the bill, The Carl D. Perkins Career and Technical Education Improvement Act (S. 2686) prior to the August recess, but it did release a brief summary of its proposal, which would raise the standards for academic and technical skills, emphasize workforce preparation, give states greater flexibility, promote professional development and increase accountability. NAHB and HBI have been working to ensure that the bill does not favor grant programs for emerging and high-tech industries over those with an established need, such as construction. For more information, e-mail Maria McIntyre at HBI or call her at 800-795-7955 x8912; or contact Jenna Morgan Hamilton in NAHB Legislative and Political Relations, 800-8368-5242 x8407. Paper Attachment System Improves Finishing SanderAn innovative ¼-sheet, palm-grip finishing sander was released this spring by Bosch Power Tools and Accessories, a division of the Robert Bosch Tool Corporation. Robert Bosch Tool Corporation is the North American branch of Robert Bosch GmbH, the largest power tool and accessory manufacturer in the world. It is also a member of the National Council of the Housing Industry — the Supplier 100 of NAHB. The new 1297DK makes several improvements to the finishing sander, according to the manufacturer. Also called a “sheets sander” or “orbital sander,” the product has remained popular because of its unique ability to accept virtually any type of sandpaper, as well as its ability to get into corners. The most important innovation in 1297DK is SheetLoc, a fast and easy paper attachment system that pulls regular sandpaper flat and tight for efficient, uniform sanding and longer paper life. The system eliminates the need to fold or bend paper and the struggle often associated with correctly positioning paper under the troublesome wire clamp systems found on other finishing sanders. According to Bosch, the SheetLoc system gives regular sandpaper the benefits of “stick-on” adhesive sandpaper — ease of installation; prevention of creases and tears; and efficient, uniform sanding, but without the added expense; ¼-sheet stick-on paper typically costs twice as much as regular ¼-sheet sandpaper. (The sander will accept stick-on paper if regular paper is not available.) The sander also includes a Microfilter dust canister, which uses through-the-pad dust collection to provide up to 75% dust collection efficiency, says Bosch, and to capture up to 40% more than competitive devices. The filter captures particles as small as a ½ of a micron in diameter — about 120 times smaller than the thickness of a human hair. To make it comfortable to use, Bosch designed the 1297D with a low-vibration three-point internal counter-balance system, ergonomic soft-grip top and control, and all ball-bearing construction. Bosch is also launching a complete line of sandpaper this summer. For more information, call toll-free 877-BOSCH-99 (877-267-2499) or click here. 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.Over-Engineering — Wind and Earthquake DesignWhen the following column was originally published over two years ago, it touched off a firestorm of responses, both positive and negative. It has run in architects’, engineers’ and builders' magazines. Amazingly, I still get feedback from this timeless gem. Here it is again, in case you missed it. Have you ever wondered why one set of plans may call for 50 holdowns, anchor bolts at 12-inches and heavy-duty shear walls everywhere, while a nearly identical set — but from a different architect or engineer — may only call for five holdowns and minimal shear wall construction? Any contractor knows all those holdowns, anchor bolts, clips, nails and plywood add thousands of dollars to the cost of a single family home — and tens of thousands to multifamily buildings. But are they really necessary? The answer is — maybe, but maybe not. Over-engineering costs big. Typically, it happens for several reasons:
How Much Is the Cost? Seasoned builders know you’ll spend more on over-engineered construction than the fee for an intelligent design up-front. For example, certain holdowns cost upwards of $50 each — just for materials. Add labor and they’re $100. If there are 20 more than need be, that’s $2,000 just for unnecessary holdowns. Add in a bunch of other over-engineered items and this cost can easily double. The engineering fee for lateral design of a standard 2,000 square foot home should be in the $1,000 dollar range. Go figure. The problem becomes, then, how to find the right engineer? My best recommendation is word of mouth. Engineers are typically good at selling themselves. You’ll have a hard time knowing the good from the not-so-good unless you or someone you trust has actually seen a few of their designs. If word of mouth doesn’t work for you, ask your would-be engineer this question: “How many similar lateral designs have you personally done in the last five years? ”If the answer is evasive, vague or “less than 25,” keep looking. Will a good, experienced engineer have a higher fee than a rookie? Probably, but not too much higher, say no more than 25%. Regardless, it will be money well spent because the good engineer’s design should:
In the world of engineering, the old adage rings true: what you don’t know can cost you. Your best defense is to educate yourself. Learn all you can about how loads act on buildings and how buildings resist those loads. Understand what a holdown really does. Learn load path. Read my book, "Basic Structural Concepts for the Non-Engineer." Because once you understand, you’ll be able to spot problems and inefficiencies before they cost you money, or worse, someone’s life. 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. Sign Up for 2005 Committees and Councils by Sept. 3NAHB is looking for members who would like to serve on any of the association’s various committees and councils for the 2005 term. Members will be able to provide leadership, expertise and experience on the issues and challenges facing the industry. The term begins immediately following the 2005 International Builders’ Show (IBS) in Orlando and continues through the completion of the 2006 IBS. The deadline for applying for an appointment is Sept. 3. Members are limited to serving on no more than two standing committees or councils. How to Apply Members can apply online by filling out the 2005 appointment sign-up form, indicating their interests. The form can be accessed on the NAHB Web site by clicking www.nahb.org/2005appointmentform, then return the completed form by e-mail, fax or mail to NAHB as indicated. Forms also can be found within the individual sections for the various committees and councils on the “members only" side of the NAHB Web site. Final appointments will be made following the fall NAHB board of directors meeting and members will be notified by mail. For more information, e-mail Cynthia McKinley Brown or call her at 800-368-5242 x8346. Save on DELL™ Computer ProductsDell, the world's leading computer systems company, offers discounts to NAHB members on an array of products designed to meet the technology needs of your company. Discounts are available on:
To learn more, or to order, go to: http://premier.dell.com. Enter access code “NAHB” and access key “NAHBDELL” (case sensitive). Your NAHB discount will be automatically applied. Contact the Dell Association Sales Representative at 888-577-3355, Monday-Friday, 7 a.m.-8 p.m. (CT) and Saturday, 8 a.m.-5 p.m. (CT). 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 view the full range of benefits associated with membership in your local, state and national home builders associations.
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Make Your Connection With www.nahb.org Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available to you 24 hours a day at www.nahb.org. Just click the "Member Log In" button to get started. If you are a member and need information about NAHB products and services, use the NAHB Staff Contact Directory to look up the direct telephone extensions for NAHB staff experts. Calendar of Events
To view more meetings & events information on the NAHB Web site, click here. Make Your Connection With www.nahb.org Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available to you 24 hours a day at www.nahb.org. Just click the "Member Log In" button to get started. If you are a member and need information about NAHB products and services, use the NAHB Staff Contact Directory to look up the direct telephone extensions for NAHB staff experts. |