Nation's Building News Online: September 6, 2004

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Latest NAFTA Ruling Could Sound the Death Knell for Tariffs on Canadian Timber

An Aug. 31 decision by a North American Free Trade Agreement (NAFTA) panel clearing the way for the removal of burdensome tariffs on Canadian timber is a victory for housing affordability and millions of American consumers who are feeling the pinch of near-record lumber prices, according to NAHB.

Countervailing and anti-dumping duties totaling more than 27% have been in place since May of 2002. Of the many anti-tariff court rulings by NAFTA and the World Trade Organization that have occurred since then, last week's verdict is the most significant by far.

Twice previously, NAFTA had determined that the domestic lumber industry’s threat of injury allegations were baseless and contrary to law. In each instance, the case was remanded back to the U.S. International Trade Commission (ITC).

In its latest decision, the NAFTA panel indicated that it had grown weary of the ITC’s attempts to prove that U.S. lumber interests were harmed by competition from Canada.

The five-member panel, which consists of three Americans and two Canadians, unanimously concluded that the ITC was “simply unwilling to accept this (NAFTA) panel’s review” and “has consistently ignored the authority of this panel in an effort to preserve its finding of threat of material injury.”

The ITC was ordered “to make a determination consistent with the decision of this panel that the evidence on the record does not support a finding of threat of material injury and to make that determination within 10 days.”

Although it was noted that the U.S. had no new evidence to back claims of injury and that it “would be an exercise in futility” to further review the case, the U.S. still has the option of appealing the ruling to an “extraordinary challenge” committee.

“But that appeal would merely be a delaying tactic,” said Rayburn, who noted that NAFTA’s extraordinary challenge provisions are primarily meant to be used for matters of gross misconduct, for which there is no legitimate claim in this case.

With the price of framing lumber at $473 per 1,000 board feet for the week ending Aug. 27, according to Random Lengths — up more than 40% from the beginning of the year and approaching the all-time high of $519 recorded in 1994 — Rayburn noted that the NAFTA decision could not have come at a better time.

“Rising building material costs, led by lumber, have added $5,000-$7,000 to the cost of constructing an average new home,” he said. “The duties have artificially boosted lumber prices and have helped line the pockets of domestic producers at the expense of U.S. consumers. NAFTA has unambiguously ruled that this case has no merit. Therefore, the Administration should prevent this case from dragging out any further and allow these punitive duties to disappear.”

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

Building News Coast To Coast

Construction-Trade Students Building for Future

The Florida Home Builders Association formally launched the National Future Builders of America (NFBA) program at the 2004 Southeast Building Conference in early August.  Association President Mike Hickman remarked, "Through the program, we can identify students interested in construction and provide them with the leadership and training skills necessary to help ensure that the future of our nation's home building industry remains strong." The program introduces middle-school and high-school students to industry leaders to build relationships, obtain training and advice, and eventually secure jobs. The Colliers Building Industry Association sponsors the NFBA chapter at Lely High School's Academy of Architecture, Construction and Engineering. Participants in Lely's program will undertake community service projects as part of a partnership with Habitat for Humanity. The state has a total of three NFBA chapters.
Naples Daily News (09/01/04) Elliott, Marci: www.naplesnews.com

Monied Laundering

According to a recent NAHB survey, new-home buyers put laundry rooms at the top of their must-have lists. No longer relegated to the garage or the basement, today's laundry areas boast upscale countertops, cabinets, appliances and even televisions. The emergence of high-powered washers and dryers in black, stainless steel and blue, meanwhile, has made men more interested in laundry rooms. In fact, research by Maytag reveals that men play a major role in more than half of its top-of-the-line sales but only 40%-45% of purchases involving standard units. Home owners also can buy personal valets, ironing stations and drying centers at more than $1,000 apiece. While older laundry rooms were about 50 square feet in size, it is not unusual to see new laundry rooms taking up as much as six times that amount of space.
Wall Street Journal (09/03/04) P. W10; Reed, Danielle: www.wsj.com

Smart Home Thinks for Itself

A number of seniors in Gainesville, FL, will participate in a 10-year test of a 2,400-square-foot smart home developed by the University of Florida's Rehabilitation Engineering Research Center on Technology for Successful Aging. The dwelling features a computerized mobile phone and several flat-screen monitors linked to appliances and other devices. The network lets residents know if they forget to turn off the stove or lock the doors; and off-site caregivers are alerted if the occupant enters the bathroom and fails to set off motion sensors after a certain amount of time has passed. The home even has a microwave that reads bar codes and sets the cooking time on prepared foods; a medicine cabinet that scans pill bottles and automatically reorders prescriptions; and a single machine to both wash and dry clothes, among other things. Researchers believe such technology would allow aging baby boomers to remain independent and keep nursing homes and assisted-living communities from overflowing. "We think whole retirement communities can be built this way," testifies Sumi Helal, the center's director of technology development. "The technology is there now. We're just putting it all together in a way that could be available and affordable to the public within the next few decades."
Fort Lauderdale Sun-Sentinel (08/29/04) P. 1A; Benedick, Robin: www.sun-sentinel.com

Home Buyers Hone In on Choices

Builders agree that new-home buyers want the most house for the best price. In particular, they look for huge kitchens with islands, spacious garages, flex space that can be turned into a home office, stainless steel appliances, French doors and other upscale features. Many buyers are so impressed with the builder's models that they will spend thousands to include the same options in their dwellings. Pardee Homes executive Jim Stringer notes that parks, new schools, recreation centers and other neighborhood amenities also are in high demand. He believes the expanding pool of non-traditional buyers, including singles and empty-nesters, will fuel condominium development in some locales.
Scripps Howard News Service (08/30/04) Auerbach, Erin: www.shns.com

Cooking Up a Digital Future

Concocting futuristic kitchen technologies is the goal of MIT's Counter Intelligence Research initiative, whose areas of focus include smart appliances and more durable equipment. Concepts being researched include devices such as a sensor-studded plastic container that is aware of its contents and can clock how long before those contents go bad; oven mitts that read temperature and dispense culinary advice; and camera- and computer-equipped fridges that monitor stored items and add items that need to be replaced to a shopping list. Another project is a mug that tells the owner when it is hot through the incorporation of liquid crystal displays, bimetal strips, thermoresisters and thermochromic ink. "We're really starting to think about what we can sense, but more importantly how we can use the sensors to change the way people do things, and improve them," explains Ted Selker, director of Counter Intelligence Research. "My most exciting example of that is a spoon that literally teaches you how to cook, by watching and tasting, and noticing the temperature of the thing you're mixing." Research assistant Leonardo Bonanni notes that the "dishmaker" project is particularly fascinating: It involves a machine that inflates thin, recyclable plastic wafers into dishes and reduces kitchen clutter. Bonanni also calls attention to a kitchen sink made of pliant silicon rubber that is tolerant of high temperatures and resistant to breakage. The technologies being developed are often rough around the edges, with design refinements handled by appliance companies.
BBC News (08/31/04) Hardy, Ian: news.bbc.co.uk

Retirement Place Rated Best: Florence, Oregon

The sixth edition of Retirement Places Rated ranks Florence, OR, as the best U.S. destination for Golden Agers — an impressive rise from its No. 30 position in the last analysis, conducted in 1999. The statistical study ranks 203 locations according to cost of living, climate, crime, economy, ambience and services. The only area in which Florence lagged was in crime, since its crime rate is higher than the national average. Though two Florida destinations — Melbourne-Palm Bay, at No. 4, and Daytona Beach, at No. 9 — are still in the top 10, the survey shows a continuing shift from Florida as the primary retirement hot spot to areas in the Northwest, Rocky Mountains and desert Southwest. Study editor David Savageau says the state is losing favor because of "population growth, crime, hurricanes, politics and because boomers view it as their gray-haired parents' retirement spot." The report also shows that Las Vegas has fallen in favor due to high housing costs, while California is attracting more retirees despite economic and weather-related problems there. The study also notes a number of additional retirement trends, such as seasonal housing, frequent relocation and full-time RV lifestyles.
USA Today (09/01/04) P. 1D; Minzesheimer, Bob: www.usatoday.com

Constructing Standards

The NAHB Research Center in Upper Marlboro, MD, was opened in 1964 to research land use, sustainable housing and related issues; provide market research data and information on building materials; and build homes to demonstrate various technologies and features. The center also houses a laboratory that provides independent testing for manufacturers to ensure that products meet building and plumbing codes and comply with standards developed by the American National Standards Institute and the American Society for Testing and Materials, among others. The lab features a universal test machine that exerts a 200,000-pound force on concrete walls and steel reinforcements and a 150,000-pound shear wall tester to determine whether products are wind- and earthquake-resistant. Researchers also use scrubbers to ensure that sinks remain intact after frequent use; an ultraviolet test to see if sunlight causes cracking or fading; and an air cannon to test the performance of windows in hurricanes and tornados. They even conduct impact-resistance tests on sinks and figure out how much weight can be supported by shower grab bars, among other things. Lab director Robert Hill says products that pass such tests can be stamped with NAHB's certification logo, which "gives the consumer confidence that this company is willing to have a third party randomly test the product to make sure that it will perform like it's advertised."
Washington Post (08/28/04) P. F1; Flandez, Raymund: www.washingtonpost.com

Building Trends: Order Makes an Entry

While mudrooms are a common feature in the North, where people need an area to remove snowy and muddy clothing before entering the home, similar spaces are growing in demand in the South. Market researcher Cecilia Davidson-Farkas, who specializes in the home building industry, says Atlanta residents use mudrooms as "drop zones" — places to store shoes, mail, school supplies and other items that can clutter the inside of the house. "There's a demand in the market for organizational products, those things that improve the quality of life for home owners," she notes. Builders are adding niches, cabinets, storage benches and message centers to new homes in order to meet this demand. Architect Bill Harrison says mudrooms are particularly popular among families with children as well as among active seniors who want a space for umbrellas, coats and messy projects such as potting plants.  A mudroom equipped with several different storage options can cost as much as $10,000-$30,000 for an upscale home.
Atlanta Journal-Constitution (08/27/04) P. 12HG; Saunders, Tinah: www.accessatlanta.com/ajc

Greenhouses Are Growing in Popularity Among Home Owners

More and more home owners are putting greenhouses on their properties to protect their plants from deer and poor weather conditions, enclose swimming pools or house pets, among other things. These installations cost anywhere from $250-$600 for do-it-yourself kits or $3,000-$80,000 for professionally installed structures. Home owners can choose from silver aluminum, painted aluminum or wood — which can be assembled into various shapes and sizes. Experts say many owners want their greenhouses to complement their homes and also are adding ponds, fountains, garden seating and hot tubs to make them more visually appealing. To ensure maximum plant growth, the greenhouse should be situated on the southeastern portion of the property and climate controls, window and roof vents, timer watering systems and heating systems should be installed.
Cleveland Plain Dealer (08/26/04) P. E9; Hebert, Melissa: www.plaindealer.com

Built-Ins Put Finishing Touches on Rooms

Built-in cabinets, shelves, benches, entertainment centers and home offices are gaining popularity among home owners. Built-in wall units or bookcases are becoming a standard feature in new homes; while owners of older properties are using the built-in approach to transform alcoves, attics, basements and recesses under stairwells into additional living spaces and storage areas. Sources say home owners typically recoup the costs associated with such conversions when they sell. Depending on the project type and scope and the materials used, built-ins can cost anywhere from a couple hundred dollars to over $20,000. These projects are usually finished within six to eight weeks, but elaborate designs or demolitions could extend the completion date. Home owners also might want to consider set-ins, which are cheaper than traditional built-ins and are removable.
Washington Times (08/27/04) Ross, Audrey: www.washtimes.com

Security Basics for PDAs and Handheld PCs

Many workers use their own PDAs and other handheld devices for business purposes, even linking them to the company network.  As a result, companies need to be concerned about viruses, device and data theft, and other security breaches. They would be wise to create and enforce security policies governing the use of employee-owned handhelds. Users should write their phone number somewhere on the device and ensure that it is password-protected, increasing the likelihood that a lost or stolen handheld will be returned. They can also install software that erases all of the data stored on the device if the password is not entered correctly or synchronization does not occur within a certain amount of time. Anti-virus software, firewalls and tools for encryption and authentication are also useful. Among other things, companies might want to require workers to scan for viruses before connecting to the company network; use a remote-access virtual private network (VPN); and install the most up-to-date security patches.
Small Business Computing (08/27/04) Taylor, Laura: www.smallbusinesscomputing.com

NAHB Goes to New York to Promote Election-Year National Housing Agenda

As part of NAHB’s ongoing efforts during the current election cycle to ensure that housing is a top priority in the next Administration and in the new 109th Congress, the association’s Senior Officers were out in force last week at the Republican National Convention in New York, meeting with top GOP leaders to discuss important industry concerns.

Among its activities at the convention, NAHB — along with Fannie Mae, Freddie Mac, the Mortgage Bankers Association, the National Association of Realtors® and the Independent Community Bankers of America — hosted a reception in honor of Senate Majority Leader Bill Frist (R-TN) and the Republican members of Congress. Republican lawmakers attending the event lauded the housing industry and cited the critical role that home builders play in the U.S. economy and political process.

To promote a national housing agenda in this election year, NAHB ran a series of ads in special daily convention issues of the National Journal that were distributed to every lawmaker and candidate in attendance. The same appeared earlier this summer at the Democratic convention in Boston.

Further boosting housing’s presence in New York, NAHB cosponsored two convention media briefings with the National Journal and MSNBC featuring election analysis from political pundits, including Charlie Cook, editor and publisher of The Cook Political Report; and Chris Matthews, host of MSNBC’s “Hardball.”

In a statement of housing policy presented to the Republican Platform Drafting Committee last month, the nation’s home builders recommended these priorities:

• Sustaining housing’s critical role in the national economy
• Maintaining a strong housing finance system
• Supporting federal tax incentives for housing
• Promoting the production of workforce and affordable housing
• Encouraging federal regulatory reform and protecting private property rights
• Advocating sound land-use and regulatory policies at the local and state level
• Supporting incentives for small business
• Ensuring that housing continues to be a top national concern

In June, NAHB also testified before the Democratic Party Platform Committee, where the association had the opportunity to outline specific builder policy recommendations for a national housing agenda.

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

Housing Snapshot

Mortgage interest rates were down last week, largely because of ongoing questions about the strength of the nation's economy. Consumer confidence dropped and retail sales were up a sluggish 1.1% in August, which is usually the second strongest month of the year because of back-to-school expenditures. The jobs report, on the other hand, showed the economy starting to perk up from its summer doldrums. The Commerce Department reported that 144,000 jobs were added in August, about what the economy needs to accommodate population growth. The month's unemployment rate fell to 5.4%. The new week began on a healthy note, with oil prices falling. The cost of framing lumber dropped $6 to $467 per 1,000 board feet, Random Lengths reported. The price of 15/32-inch 3-ply southern (west-east) exterior sheathing was unchanged at $440 per 1,000 square feet, and oriented strand board was up $7 to $412.

Mortgage Interest Rates

30 Year Fixed Rate: 5.77\%
15 Year Fixed Rate: 5.15\%
1 Year ARM: 3.97\%

Housing Starts: Jul. 2004

Total: 1.978 million\%
Single Family: 1.651 million\%
Multi Family: 327,000\%

New Home Sales: Jul. 2004 *

1.134 million

Existing Home Sales: Jul. 2004 *

6.72 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.

Letter to the Editor: Housing Is a Plus for the Local Tax Base

The study reported in the Aug. 30 issue of NBN ("New Apartments and Condos an Unlikely Source of Classroom Crowding, Study Finds") tells us what we have known for many years: that multifamily generally is a net tax producer. What your readers may not know is that the same holds true for new single-family construction.

We recently commissioned a study by a recognized economist and data analyst to study the taxes and education costs resulting from one full year of single-family production in Middletown,CT. The results:

• The number of new homes receiving certificates of occupancy, leaving a two-month delay in collecting the data to ensure that the homes were occupied — 103
• Number of students in the public school system — 8
• Cost to educate students at $6,922 per student — $55,000
• Taxes assessed on the 103 new homes — $627,000
• Net to the city after education — $572,000

Since this study, builders in other municipalities in Connecticut have conducted similar reviews. In every case, the results have shown a positive contribution to municipal tax revenue after allowing for education. 

It is hard to believe, but the municipalities are actually working overtime to stop, reduce or slow down a substantial source of net tax dollars. 

Bob Fusari, Sr.
NAHB Senior Life Director
Middletown, CT

The Truth About Turnover: You Can Stop It From Bleeding Your Company Dry

Turnover happens.

Call it a fact of life, a basic truth, whatever. It happens.

Now, here’s another truth: It’s probably your fault.

Okay, now that those two truths are out there, put a Band Aid on your bruised ego and think about it.

It’s About More Than Money

When was the last time you told your employees that you appreciate them? That they do good work? That you have seen positive growth in their professionalism, customer service or trade?

Notice that there is no mention of money. That’s right. Your turnover problems have less to do with money than with your relationship with your employees.

Employees want to know that they are a part of the team. They want to feel that they are an asset to your future growth.

But, don’t forget about money — you should pay your employees what they are worth, what the market dictates and what your competitor down the street would offer a first-rate tradesman to steal him away from you. So, while money isn’t the number one reason why employees leave, it still plays a role. After all, would a company that says it really values you pay you poorly and offer no benefits?

Here’s another truth: Turnover is costly.

While companies know that employee turnover is expensive, most cannot quantify the cost. Estimates range from 25% to almost 200% of annual compensation.

Turnover is even more expensive if you add in how much money is wasted because of the mistakes, bottlenecks, redundancies and inefficiencies that result from turnover. And let’s not forget the lost productivity that results because the owner may be distracted from his primary responsibilities, or when other employees have to fill in and pick up the slack when an employee leaves. Finally, turnover can damage customer relations and employee morale, which will affect your bottom line, too.

Now that you have a better idea of what causes — and does not cause — your turnover problem, what steps can you take to alleviate the problem?

Create a Stronger Team Atmosphere

Have you ever heard an employee telling a customer or friend that this was the best company he has ever worked for? Or that he enjoyed the job and his coworkers so much, he wouldn’t work anywhere else?

It’s called “team mentality.” Those employees that truly enjoy working for their companies and with their coworkers are buying into the team philosophy. If you don't have one, create it. If you have one, promote it.

“Our employees know they are part of a winning team and they are proud of that,” says Erik Anderson, CGB, GMB, CAPS, vice president of Anderson-Moore Builders, Inc., in Winston-Salem, NC. “Our employees know we are here to help them, both personally and professionally.”

Don Strong, CGR, president Brothers Strong in Houston, says he keeps his turnover rate low because he involves all employees in marketing plans, advertising efforts, production problems and solutions during weekly sales or production meetings.

“The last item on every agenda is always, ‘Ideas anyone? Any new products we should know about?’ ” says Strong. “This shows our employees that we value their ideas and opinions. We also have a company philosophy stating we will back any employee’s actions no matter what. If the employee makes a bad decision that costs the company money, the decision is discussed in detail. Remedial and preventive plans are developed to find solutions to the problem. At no time do we ever discourage or admonish an employee for doing his job.”

This philosophy that “We are all in this together” is the foundation of many successful companies. Do you project the same atmosphere in your company? Evaluate how your employees view their relationship with your company.

Not Just Words — Deeds and Attitude, Too

“Studies show that compensation is not the top ranking requirement for a job, or conversely, the reason for leaving,” says Greg Miedema, CGR, CAPS, CGB, president of Dakota Builders in Tucson, AZ. “Job satisfaction, positive feedback from the owner or manager and self-direction all rank higher.

“Self direction/control is a big winner in this industry, especially with older, more experienced folks," Miedema notes. “They not only don't need to be watched and told what to do every 30 minutes; they expressly don't want it and won't put up with it.”

Strong agrees. “I am convinced that positive morale and attitude are as important as compensation,” says Strong. “We make it a policy that our key personnel attend the board of directors meeting. Everyone knows exactly how well or badly the company is doing. If a new employee benefit is offered or terminated, all employees know why.”

Another aspect of the “attitude” of a company that employees often judge is what comes out of the corner office. In the case of S.N. Peck, Builder, Inc. and Case Handyman® Services of Chicago, its employees see owners who don’t just care about the almighty dollar. They see bosses who give back to their community and ask their employees to stand beside them when they do it.

“My husband and I, co-owners of our two companies, are deeply engaged in creating a better future to be enjoyed by all people,” says Barbara Rose Peck. “Our companies have sponsored events to raise money for AIDS research, trained entrepreneurs from emerging democracies, built homes with Habitat for Humanity, promoted the well-being of women and girls and worked to end the persistence of chronic hunger. Our employees are proud participants in these activities. That counts, too.”

Invest In Your Employees’ (And Your Company’s) Future

While teamwork and great attitudes help employees “believe” in what they do, another important factor to employee satisfaction is growth. Employees want to grow personally and professionally in their work.

Many employers view this as an important key to keeping employees and, therefore, more and more invest in training and educational opportunities for their employees.

“While we offer a decent benefit package, the most appreciated benefit is our training program,” says Peck. “Some of our top people and oldest employees started with us as laborers. They are now skilled team members and very loyal. We pay well but do not match union wages. On the other hand, our work is steady and year-round.”

Anderson says that while his company has no set “training plan,” he does offer educational opportunities to his employees. “We ask them what they need to make their job better, we ask them what they want from their job, and then go from there in helping them get the training they want and need.”

Helping your employees get ahead will pay off whether you help your employees pay for college courses, hold computer/technology classes at the office or enroll employees in advanced trade training courses. Your employees will stay because you have invested in their growth — and your customers will appreciate your employees' newly acquired skills and knowledge.

Recognition Also Plays a Key Role

Another important piece to the turnover puzzle is recognition. Employees need to hear praise for the good work they perform. Recognition plays a key part in company morale.

Some companies go beyond a pat on the back for good work. Some tie in rewards programs to employee morale.

“We have a bonus plan that is directly tied into the gross margin of the company,” says Anderson. “This shows employees that their actions directly influence how much of a bonus they receive. The more efficient they become, the more money they will receive. The more successful our company, the more successful they will be.”

Miedema says his company also has created an incentive plan to help reduce employee turnover. “We encourage our employees to buy into the budget and company’s well being. We essentially ‘split’ any excess gross profit that comes in over our original budgeted gross profit.”

Next Steps

Step back and evaluate your company. Ask your employees what they would like to see happen. If the feedback is not unreasonable, implement some of the suggested changes to keep them happy.

While employee turnover will always occur, you can control the damage it does to your company. By initiating programs that show your employees that they are important assets to your organization, you will keep the best employees from walking across the street to your competition.

BuilderBooks.com Offers Publications for Remodelers

BuilderBooks.com offers a variety of publications about remodeling. To view or puchase these publications online, click here, or call 800-223-2665 to order by phone.

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. To search for current offerings, click here.

Universal Design Features: Perfectly Concealed

Buyer awareness: That just may be the last major hurdle universal design has to overcome before it has truly “arrived” and is a force — a “must have” — in the booming boomer market.

Many housing professionals, especially those who already market to the active seniors and boomers, know all about universal design. We understand its value and virtues, the flexibility it adds to our marketing and the peace of mind it can bring to potential home owners. But some of us discovered that a majority of our prospective home buyers, even those who would benefit the most, don’t know much about universal design.

Quite simply, most prospective home buyers are not at that point in their lives where they would be looking for universal design to fill their housing needs — unless of course, they are caring for aging parents. Why would they think about universal design if it doesn’t apply to them?

What’s that slogan coined by AARP? “60 is the new 30?” Friends in their 40s, 50s, even their 60s have told me more that once, and I quote them here, “Middle age is 10 years older than I am.” I have even used the phrase myself. With so many older adults living active lifestyles and unwilling to slow down, it’s no wonder they aren’t more aware of universal design.

But universal design is not about the now. It’s about the future, possibly well into the future. So what’s a builder or architect to do? How do you reach this market?

Add Pizzazz to Your Universal Design

You “wow” them, of course. In universal design, form and function can be accomplished with style and pizzazz. In fact, many of the features buyers want possess universal design components.

AARP considers my home as a model for universal design. It’s even featured in the universal design section (Interative Home Tours: "A Capitol House") of the AARP Web site, www.aarp.org. Built in the 1990s, my home existed before universal design was the formal architectural concept it is now. When I built my home, the only future needs I addressed were to design it so that I could live in it comfortably and conveniently for as long as I wanted to live there. Of course, my home is accessible and incorporates many universal design features because I am in a wheelchair.

My home has earned a Finest For Family Living Award in Maryland and Florida in the homes-over- $3 million category. Among its many amenities are outdoor and indoor swimming pools, a movie theater and a heated driveway. Neither award submission mentioned that the home has universal design features or is wheelchair accessible.

The key to its success in a universal design sense is that all the accessibility features are so well incorporated, or as the AARP Web site points out, so perfectly concealed, that guests may not even be aware of the specialized areas. It’s comfortable for me, it’s comfortable for my guests and it’s designed and built for my entire family, from the youngest to the oldest.

So what kinds of features are we talking about? Are they transferable to production-style or semi-custom homes? And lastly, are these features that home owners want?

An Accessible Entry Can Have Curb Appeal

A ramp and curb appeal do not have to be mutually exclusive. When properly designed, a ramp can be close to invisible from the streetscape. My home incorporates a three-part entry ramp designed into the landscape. A step leads to my front door, but the ramp deftly bypasses it. Many guests don't notice the ramp when they first visit my home.

If you don’t want to incorporate a ramp, you easily can design and offer a stepless entry. I offer my customers both ramps and stepless entries. Just be sure that the front entry is accessible. Nothing turns off a home owner more than to always have to enter his or her home through a back door.

The front door should be wide enough to easily accommodate a wheelchair. That also applies to hallways. I prefer to make my hallways four, five, even six feet wide. Not all hallways have to be six feet wide, but they shouldn’t be three feet wide either. Your home buyers will appreciate more elbowroom. It makes the home that much more attractive, and most buyers will trade a little space from other rooms for wider hallways.

Make the Volume Dance

Volume is as important as width. Like many active adult home buyers, I’m a big fan of volume. My home has a variety of ceiling heights and styles in several rooms. There’s a domed ceiling in the foyer, a tray ceiling with hidden lights in the bedroom, a pyramid ceiling in my library and a 20-foot ceiling in the family room. Just about every room in the main-floor living area is a different height or ceiling style.

Designers once used sunken living rooms and step-down dens or family rooms that created a sense of volume and movement, but that trend has become obsolete. Today's buyers want level floors, but not at the expense of movement. That’s where volume comes into play. Offering a range in room heights promotes the illusion of movement while maintaining a level floor. You don’t have to incorporate as much variety in your homes as I did in mine, but add some variety; that's what the market demands.

I have found that many active adult home buyers no longer want grand U-shaped stairways. Instead, they prefer the stairs to be concealed, which is also compatible with universal design.

In my home, the stairs leading to the upstairs bedrooms are off to the side while the stairs leading to the game/billiard area and movie theater are off another hallway. I also have a hidden elevator large enough for my wheelchair.

All the flooring in my home is hard-surface, with area rugs scattered throughout to add warmth. It is easier for a wheelchair user to maneuver on hard surfaces than on cut pile carpeting. It’s a universal design “must have,” but it’s also a feature that many buyers request.

Be Aware of Bathroom Dimensions

You don’t have to put grab bars or rails in the bathrooms: just plan for them. As for bathtubs, the general market is slowly moving away from spa tubs, and that’s a good thing for universal design. From my perspective, a normal-depth tub is easier to get in and out of and much more convenient than a deeper one. My tub also has a ledge around it that is of wheelchair height and wide enough for me to transfer from wheelchair to the tub — a must when incorporating universal design as well as an attractive convenience.

I splurged a bit by installing what I call a “drive-through” shower. Equipped with multiple shower heads and body sprays, it has shower openings on both ends so I can wheel through — much like a car wash — whenever I want to shower.

Elaborate showers may not be a practical feature for most universal design homes. However, upscale home buyers are trending away from two-person tubs and toward two-person showers. More affluent buyers want showers equipped with shower seats, multiple shower heads and body sprays — and no-threshold openings. All those features fit in nicely with universal design.

I also have installed a custom vanity in my bathroom with enough legroom beneath it so I can comfortably use my wheelchair.

A Kitchen Fit for an Owner

Believe it or not, I did nothing special to the kitchen cabinets. The reason is simple. Before my injury, I was very tall, 6-foot-4. And even though I’m in a wheelchair, I’m still tall; I have a long reach and have no trouble getting items from the upper cabinets.

There’s a small lesson here. The handicapped community is as diverse as the community in general. Some are tall and some are short. Some are heavy and some are thin. The rules of design are basically the same, whether or not they are in wheelchairs or require other mobility assistance. When incorporating universal design features, make sure the features can comfortably accommodate the family buying the home. In other words, one size does not fit all.

A few other “must haves” for universal design can just be part of the luxury package for upscale homes. Instead of doorknobs, use lever door handles. They are easier to operate and much more practical. Besides, there are enough choices out there to satisfy most buyers.

Do away with 30-inch doors and 24-inch closet doors. You don’t have to go overboard, 2-foot 10-inch doors are wide enough, add a touch of luxury and, at that size, enable the bedrooms and bathrooms to be fully accessible.

The features in my home can be incorporated in homes selling for $500,000 or $5 million. They are universal design features that make living easier, but also are optional design features that many buyers want. I incorporate many of them in the custom homes I build: luxury features that are compatible with universal design. I’d call that a breakthrough in buyer awareness.

A Touch of Rose

Some features in my home were designed just for me and it’s amazing how technology is making accessible living more comfortable. My swimming pools incorporate hydraulic chair lifts — lifts powered by water pressure and not electricity — that allow me to get in and out of the water.

A movie buff, I have built a small movie theater with a mini-version of stadium seating and, of course, ample space for multiple wheelchairs. In the lower level family room/activity room, I added a wet bar that can be lowered from its normal height to wheelchair height.

As a technology geek, I fully automated my home and have strategically placed touch screens that allow me to operate the lights, drapes and curtains, air temperature, water temperature, door locks, etc.

I added a special refrigerator outside the movie theater to store my Diet Cokes and Diet Dr. Peppers. To satisfy my sweet tooth, I put a candy counter at wheelchair height so I can sneak a candy bar when my wife isn’t looking.

Finally, I have what can affectionately be called a universal design poker table. I gladly take winnings from disabled as well as able-bodied players.

Michael T. Rose is president and founder of the Laurel, MD-based Michael T. Rose Family of Companies, a nationally recognized builder/developer in the Washington, D.C. area. Rose is an advocate of accessibility and includes many universal design features in the homes he builds, including his own. Rose and his companies have won numerous awards for developing and creating homes and communities that are environmentally sound and built in harmony with nature. Rose can be reached via e-mail or by calling 310-953-3110.

This article was reprinted from the Summer 2004 edition of Seniors'  Housing News, published quarterly by NAHB's Seniors Housing Council. For publication information, e-mail Jeff Jenkins, or call him at  800-368-5242 x8292.

To read "Universal Design Solutions Focus on Safety, Lighting and Useability" elsewhere in this issue of NBN Online, click here.

Attend the 2005 Seniors Housing Symposium in Metro Washington, D.C. Area

Learn more about the fastest-growing segment of the housing market. Plan to attend Building for Boomers & Beyond: Seniors Housing Symposium 2005, the premier educational and networking event for industry professionals serving the burgeoning 50+ market. For more information, click here.

Universal Design Solutions Focus on Safety, Lighting and Useability

Ask architect Kim Beasley, of the Beasley Architectural Group LLC in Alexandria, VA, what the most important room in the house to design right is and he’ll tell you it’s the bathroom.

“This is where the day begins and ends. It absolutely has to function properly,” Beasley says. “The bathroom tends to be the most dangerous room in the house if it can’t accommodate your capabilities and limitations.

"Outside of automobiles, the leading cause of accidents for people getting up in age is falls in bathrooms or on the stairs,” he adds.

Beasley, an architect who focuses on accessibility and universal design, came to the home building industry from a background in medical care. Before tackling homes and renovations, he designed several medical facilities for disabled veterans, including a number of nursing homes and spinal cord injury hospitals, while working for the Paralyzed Veterans of America. He also co-wrote a textbook about accessible home design for the wheelchair user and one about accessible design for the hospitality industry.

Limit Step-overs in the Bathroom 

Beasley believes that in older homes, the bathtub/shower combination is the most difficult and dangerous part of the bathroom to maneuver in. Those lucky enough to have a toilet adjacent to the tub can lower the lid and use that to transfer into the tub. But, especially when there is one-wall plumbing, the home owner still has to worry about banging into the plumbing when getting in.

“You’re almost forced to step into the middle of the tub,” Beasley points out, “and there’s nothing you can hang on to. It’s worse getting out.”

It wasn’t always like this. Many upscale properties at the turn of the last century were elegantly equipped with bathroom grab bars, Beasley explains. That changed with the post-World War II housing boom.

Today, many of Beasley’s clients ask him to design larger bathrooms for their renovations or new homes. His designs include separate tubs and showers with tub surrounds or ledges for clients to sit on when getting into their tubs. “A lot of what I do is designed so my clients do not have to step over anything.”

Strategically placed grab bars are making their way back into bathrooms. Some are disguised as towel bars. Others are decorative. At least one manufacturer offers them in about 30 colors to match tiles, fixtures and paint.

Proper Stairway Lighing Is Important

Because stairway falls are a leading cause of home injuries, Beasley says proper stairway lighting is very important.

“With seniors, lighting is extremely critical. Most homes are not well lit because home owners were expected to bring in their own lighting,” he says. That’s changing. Architects are adding more recessed lighting, decorative lighting and more lighting in general.

Almost Half Those Over 65 Have Severe Arthritic Conditions

Beasley also points to the importance of installing easier-to-use lever door handles and faucets in homes. “About half the people in the U.S. over 65 have severe arthritic conditions that make operating doorknobs and faucets difficult. I try to use hardware that doesn’t require grasping or pinching. Those are great solutions.”

Many of Beasley’s clients live in the Washington, D.C. area and want to live in homes in established neighborhoods with mature trees. That usually means older homes, and his challenge is to make them more liveable. “Almost without exception, the homes that are modified weren’t designed to have any interaction with the backyard,” Beasley notes. “We usually expand the kitchen and family room and create a landscaped backyard that is an extension of the home.

“There’s a certain amount of diagnostics involved, but in the end, the home owner has a much more spacious environment to live in, entertain in and have the grandkids over,” he says. “It’s much more usable space and much safer.”

AARP Finds That Baby Boomers' Net Worth Has Increased

Net worth has grown substantially among boomers in recent years due to strong economic growth, but it may not be enough to get them through retirement, according to two studies conducted by AARP.

In a paper titled "The Distribution of Financial Wealth Among Boomers," the AARP Public Policy Institute noted that net worth increased substantially for many boomers — especially whites, men, married couples, older boomers, home owners and those with college degrees — but it still may not be sufficient without Social Security and other pension plans.

Using data from the Federal Reserve Board's Survey of Consumer Finances, AARP revealed the following:

• Median net worth increased from $36,000 in 1989 to more than $107,000 in 2001.
  • Counting home equity, net worth exploded from $140,000 to nearly $400,000 during that same period.
• Median net worth varied by individual and demographic factors.
  • The median net worth for white households grew from nearly $57,000 to $147,000, while the total for nonwhites increased from $3,000 in 1989 to just under $25,000 in 2001.
  • Married couples and boomers with college degrees saw their net worth expand substantially.
• Older boomers (born from 1946 to 1955) tripled their median net worth from $45,000 to $146,000. Younger boomers (born from 1956 to 1964) jumped from $29,000 to $86,000, but these boomers are doing better than older boomers at comparable ages.
• Homeownership is the primary source of net worth for Americans.
  • Home owners had $100,000 in net worth in 1989, compared to just more than $2,000 for non-home owners. By 2001, home owners had $175,000 in net worth, while non-home owners had only $7,000.

A second AARP study, "The Inequality of Financial Wealth Among Boomers," noted that boomer wealth is more concentrated in the highest income brackets now than it was in the late 1980s.

The top 1% hold a greater share of net worth than the bottom 80% and almost as much as the bottom 90%. However, the percentage with zero or negative net worth has declined steadily.

The two studies confirm that boomers have more money today than a decade earlier, although people in the upper income ranges and in certain demograpic groups control most of the wealth. 

Achieving Higher Fair Market Rents for Section 8 Assisted Living Examined at Fall Board

During the NAHB Fall Board of Directors Meeting in Columbus, OH, the NAHB Seniors Housing Council will hold a working group of assisted living builders and developers to examine strategies to increase fair market rents for Section 8 residents of assisted living facilities.

The meeting is scheduled from 8:30-10:30 a.m. Saturday, Oct. 2, at the Hyatt Regency Columbus, Champagne Room.

Recent NAHB policy supports the increase of fair market rents (FMRs) at Section 8 assisted living facilities to help offset the higher construction costs needed to meet Section 8 requirements for these facilities. In discussions with the U.S. Department of Housing and Urban Development (HUD), NAHB has contended that higher FMRs are warranted because, under Section 8, larger common areas are needed to provide specialized services for residents, which add to the cost of building the facility.

NAHB Seniors Housing Council members and NAHB members who build or develop assisted living communities are invited to participate in the working group. For more information, e-mail Leslie Marks, or call her at 800-368-5242 x8235.

Attend the 2005 Seniors Housing Symposium in Metro Washington, D.C. Area

Learn more about the fastest-growing segment of the housing market. Plan to attend Building for Boomers & Beyond: Seniors Housing Symposium 2005, the premier educational and networking event for industry professionals serving the burgeoning 50+ market. For more information, click here.

Index Finds Rental Market Gaining Strength and Condos Remaining Strong

With consumer demand for apartments on the upswing, multifamily developers across the country are optimistic that the rental market is finally in the midst of a recovery, according to the results of the latest Multifamily Market Index (MMI) released last week by NAHB.

“The results of the MMI for the second quarter are very encouraging,” said NAHB President Bobby Rayburn. “After three years of rising vacancy rates, we’re seeing a turnaround in the apartment market.”

The index for this year’s second quarter found that demand was improving for all classes of apartments.

Class B apartments — the average market-rate communities — were at 50.6 on the index, seven points higher than a year earlier; and luxury Class A units registered 49.2, a 10-point improvement over the second quarter of 2003. Lower-rent units, a category that generally outpaces the other two when it comes to demand, stood at 55.3, 10 points higher than the April-June period a year earlier.

The index found that oversupply still remains an issue in some markets. The number of apartments available for rent jumped nearly 10 points from the second quarter of 2003 to the second quarter of 2004, from 52.1 to 64.0 on the index. Over that same period, however, the volume of calls from prospective renters rose by a healthy margin — from 49.3 to 59.1

The current MMI also found that the market for condos remains strong, with the index reaching 58.9, a five-point improvement over the same period a year earlier. Although survey respondents said that they expect the condo market to remain healthy, they expect it to cool somewhat in the next six months.

“As interest rates slowly rise, both the for-sale and rental multifamily sectors will approach new points of stability,” says NAHB Chief Economist David Seiders. “Activity in the condominium sector will remain high, especially in and near large cities whose land supplies are particularly tight, and rental demand will rise with higher mortgage interest rates and stronger rates of job formation.”

For more information, e-mail Ann Marie Moriarty at NAHB, or call her at 800-368-5242 x8350.

Power Selling Words: Words for the Wise and Successful

Q. I just witnessed one of my top salespeople asking a customer if they preferred the golf course home site or the standard interior lot. Am I correct in believing that the use of the words “standard,” “interior” and “lot” are incorrect, and, if so, how do I get my sales team to utilize a “selling” vocabulary?

Recently my wife and I were enjoying dinner at an upscale chain restaurant when, after finishing our salads, our server inquired, “May I retire your plates?” I answered yes and then, realizing how wonderfully refreshing that phrasing was, stopped him to ask whether that was an original choice of words or had been furnished by the restaurant during training.

He answered that the words were his own and, after trying several others, he believed it would leave a unique and positive impression on his customers. His professionalism was rewarded in my case as I was certain to leave a generous tip when we departed and to ask for him the next time we visited the restaurant.

The Power of Words Is Truly Amazing

For nations, words can mean the difference between war and peace. For a married couple, the wrong words can lead to divorce.

In the home building business, the choice of words can often mean the difference between the life and death of the sale. Yet most of us seldom take the time to be certain in advance that the words we choose will have the desired effect.

Over the past years, I have had the opportunity to shop thousands of new home salespeople and brokers around the country. And most of the time the salesperson will inadvertently say something that could create a negative impression, either about the home, the community or the builder, and thereby destroy the sales “moment.”

A Poor Choice of Words Can Destroy the Sales 'Moment' — and Hours Worth of Effort

My favorite, which I heard again just last week, goes something like this: “Now let’s take a look at the small bedrooms.”

Having used that phrasing, the salesperson has now suggested that he or she thinks the secondary bedrooms are small and has transferred that perception to the prospects, whether or not they previously believed it. I do not believe that anyone wants “small” bedrooms, especially, in this case, in a $300,000 home.

Using negative words such as “small,” or in the example in the opening question, “interior,” cannot possibly enhance the sales process. A poor choice of words used by the sales staff can often negate an hour or more of the sales agent’s efforts toward consensus building and buyer interest. Yet without proper thought and training, those words that naturally permeate our everyday vocabulary, will leak out at the most inopportune times during the sales process.

Modify Your Choice of Works With Behavior Modification

So how do we prevent those negative words from affecting the sales process? The only way to prevent their use is through behavior modification, training and practice.

One of the tools I use when training new salespeople and teaching the Certified New Homes Sales Professional (CSP) program is to introduce a list of what I have termed “Power Selling Words.” These words are simply common adjectives and adverbs that can be used to add positive connotations to the features in our homes and communities, but I require the group to use them in sentences.

As I believe in both positive and negative reinforcement, we continue that process with a take-home assignment of putting down in writing 20 sentences describing their homes and communities each morning for the next week. We keep a jar in the sales office and every time the salesperson uses a negative word, he or she is fined $2, which is added to the jar (we trust the sales staff to self-police on this issue).

Every month we use that fund to send flowers or a special thank-you gift (on behalf of the sales staff) to a local broker who has recently promoted our homes and brought us prospects. Within the first few months that fund shrinks dramatically as the learning process firmly takes hold.

Be aware of the power of your words and you will be surprised at the difference it will make!

Workforce Housing a Collaborative Effort in New Mexico

Many working families are achieving the dream of homeownership in a new mixed-income housing development in New Mexico’s affluent Los Alamos community. The development, Pinon Trails, is a collaboration of several groups, including the Los Alamos Housing Partnership, Fannie Mae and New Mexico builder Bruce Thompson and Associates.

When completed, Pinon Trails will include 121 new single-family homes. The project will be built in four phases; the first phase includes 18 market-rate and 16 affordable units.

“This was a worthwhile project for us,” said builder Bruce Thompson. “Two years ago, the Los Alamos Housing Partnership put out an RFP. We looked at the numbers and decided we could make this work. We had a good business plan, and when the project comes together from a business standpoint, you can make the workforce housing component work.”

“We enjoyed working on the workforce housing aspect of this project,” Thompson added. “You really get the sense that you’ve done something positive for the community.”

Rep. Tom Udall (D-NM) and New Mexico Lieutenant Governor Diane Denish last week joined local housing partners at a ribbon cutting to celebrate the completion of phase one construction.

Pinon Trails is being developed by the Los Alamos Housing Partnership, Inc. (LAHP), with key assistance from the Los Alamos Public Schools. The partnership has pledged to build 50 affordable homes; 13 of them will be sold to school employees and the remaining 37 will be available to qualified families earning at or below 80% of the area median income of $66,000 or $52,800 for a family of four.

"Los Alamos has experienced incredible growth in recent years, and the city has little developable land with which to grow," said Udall. "I commend the partners for working together to help create more homeownership opportunities for working families.”

The Pinon Trails homes offer 10 floor plans in either Craftsman or Pueblo style. All of the homes are energy-efficient and will include front yard landscaping and drip irrigation, fenced backyards and garages.

Affordable homes are sold to qualified buyers at appraised value and LAHP carries a substantial second mortgage on the property. Buyers' effective sales prices range from $115,960 for a two-bedroom duplex to $172,035 for a four-bedroom single-family home. Additional subsidies are available to help buyers with lower incomes purchase homes.

The market rate homes are going for as much as $550,000, Thompson said.

While most of the development is single-family detached housing, there are a few duplexes, Thompson said. Some of the duplexes are Craftsman on one side and Pueblo style on the other side. “It works great,” he said. “The design is very well done.”

In an effort to provide affordable financing options for the purchase of homes at Pinon Trails, Los Alamos National Bank is partnering with Fannie Mae to offer the Community Solutions™ option under Fannie Mae's MyCommunityMortgage™ suite that makes it easier for educators, police officers, firefighters and health care workers to qualify for a mortgage.

MyCommunityMortgage is available to eligible home buyers earning at or below 100% of the area median income and with even higher incomes in underserved areas that have been designated by the Department of Housing and Urban Development. The mortgage allows downpayments as low as $500 from the borrower's funds, and provides flexible credit requirements.

"We congratulate all the partners that made Pinon Trails a reality," said Steve Anaya, director of Fannie Mae's New Mexico Partnership Office. "Ensuring that working families continue to be able to live and work in the Los Alamos community is a top priority and takes the coordination and resources of multiple partners. We're happy to be part of the team."

Prospective first-time home buyers are qualified and receive home-buyer counseling through Homewise, Inc., a nonprofit housing agency that is working with LAHP.

For more information, e-mail Bill Renner at NAHB, or call him at 800-368-5242 x8597. 

Helena, Montana, Embraces Proposed Smart Growth Project

In a five-county region whose population is expected to grow by more than 12% by the year 2011, Helena, the capital of Montana, is looking for ways to provide the housing that will be needed without encroaching on the environment, and its City Commission last month gave a preliminary green light to a new subdivision that embraces smart growth principles.

Taking advantage of a new interchange that is being built on Interstate 15, the 153-lot Nob Hill community will be near existing city water and sewer lines and will put residents within a quick commute of downtown.

On the southeast side of town, the land slated for development is currently the site of a Wild West playground for four-wheelers and snowmobiles.

The Independent Record on Aug. 22 noted that Plan Helena, a local smart-growth advocacy group, appeared before the commission to speak on behalf of the proposed development. Mark Kelly, representing the group, said that the project will protect “visually sensitive” areas by leaving the hilltop untouched, and its back alleys for parking will make streets safer for pedestrians.

Nob Hill will provide a mix of residential and retail uses. Construction on the interchange is expected to begin next summer.

“Helena is a growing community,” says the Helena daily. “That growth obviously will require new development, and not just close to town. Demand will remain for more outlying housing. But it’s good to see developments like Nob Hill putting smart growth principles into practice.”

For more information on smart growth, e-mail Blake Smith at NAHB, or call him at 800-368-5242 x8583.

Backup Sump Pumps Can Give Home Owners Peace of Mind

Home owners with electric sump pumps who worry about their basement flooding if the power gets knocked out may want to consider buying a back-up system that can be run by battery or water pressure.

A sump pump collection system removes the water from the footings and walls of below-grade basements. Many of these basements will experience some seepage or flooding over the course of their lifetimes. Walls made of either concrete block or poured concrete have the potential to leak due to the pressure of the hydrostatic ground water table.

A typical sump pump system consists of a basin or sump pit for collecting the groundwater from the outside; an electric pump that is either submersible or mounted on a pedestal; and a discharge line. These systems are reliable and efficient, but problems can occur when electricity is lost during a severe storm.

In battery operated systems, which are the most commonly preferred backup, a battery drives a direct current pump that removes the water once a high water level is reached. In addition to the pump, these systems consist of a separate float system, trickle charger for the battery and an alarm system.

Also on the market are water pressure sump pumps that use household water pressure to operate the pump. No electrical hookup is required for the operation of this system. A water line is connected to a valve that is attached to a float alarm and when activated releases a stream of water that turns the impeller in the pump, thus discharging both the household water supply to the unit plus the water building up in the sump.

Battery backup sump pumps are readily available at hardware and home center stores and they are fairly inexpensive.

For more information, e-mail Ken Ford at NAHB or call him at 800-368-5242 x8228.

Entries Sought for National Green Building Awards

Entries for NAHB’s 2005 National Green Building Awards are now being accepted from home builders, remodelers, developers, nonprofit organizations, the academic community, industry experts and others involved in green building efforts.

The awards recognize individuals, companies and organizations that demonstrate a commitment to the ideals of green home building. Winners will be announced at the 2005 National Green Building Conference in Atlanta, March 13-15.

“The industry’s best and the brightest will have a chance to show how their green home building efforts have true market value for consumers and a positive impact on the environment,” said Eric S. Borsting, chairman of the 2005 NAHB National Green Building Conference and the NAHB Energy Subcommittee. “Winners of these awards are an inspiration to those in the growing green building movement, which has constructed more than 40,000 resource-efficient, environmentally sensitive homes since the 1970s.”

Award applications are being accepted for these six categories:

• Green Advocate of the Year, which recognizes leaders (builders, groups and individuals) whose efforts represent significant achievement in the field of resource-efficient new home construction over the past year
• Green Program of the Year, which acknowledges home builders associations, municipal governments and other institutions for new (less than three years old) and existing (more than three years old) green building programs
• Green Project of the Year — Single-Family, in recognition of green design and construction methods in attached, detached (affordable and production) and custom-built/luxury homes
• Green Project of the Year — Multifamily, honoring affordable housing and luxury condos and apartments for their green design and construction practices;
• Green Project of the Year — Remodeling, acknowledging modifications and improvements to existing homes (projects valued at more and less than $100,000) using water conservation methods, ventilation systems, energy efficient products and other green techniques
• Outstanding Green Marketing Award, recognizing the sales and marketing campaigns of a product and a housing development that best advance the ideals of environmentally friendly, resource-efficient residential construction.

Past award recipients have included Tom Hoyt, McStain Neighborhoods, who has built more than 8,000 green homes in the last 35 years; Southface Energy Institute, a non-profit association that has certified more than 1,000 green homes through its EarthCraft House Program; and Pardee Homes, a production home builder committed to Energy Star requirements as a minimum energy-efficiency standard for all its new homes.

For information about the awards and applications, click here.

Entries must be received by Dec. 15. A $250 fee is required for entries in all categories except Green Advocate of the Year and Green Program of the Year (New Program).

All winners will be featured in NAHB publications and will receive complimentary admission to the 2006 National Green Building Conference.

NAHB Fights to Keep CGL Coverage Less Restrictive

This article is part of a continuing series chronicling NAHB legal activities undertaken to protect the industry.

Some Insurers Are Trying to Eliminate Construction Defect Coverage

Adverse insurance market conditions have made liability coverage for builders less available, more expensive and more restrictive in terms of the coverage provided. What's more, some insurers are attempting to avoid insurance coverage in all construction defect cases by expanding their policy’s “occurrence” requirement.

One way builders try to protect themselves against construction defect claims is by purchasing comprehensive general liability (CGL) insurance. A builder’s CGL policy covers construction defects claims if the claim meets the requirements of the policy’s “insuring agreement” and if the claim does not fall within any of the policy’s several exclusions from coverage.

Project TRADE to Provide Skills Training at Illinois Correctional Center

Home Builders Institute (HBI), the workforce development arm of NAHB, recently signed a five-year contract with the Illinois Department of Corrections to train 180 students annually at the Sheridan Correctional Center (SCC) through its Project TRADE (Training, Restitution, Apprenticeship, Development and Employment) program.

HBI and Project TRADE were sought out by SCC Warden Michael Rothwell. While working in Idaho’s Corrections Department, Rothwell learned of the institute’s national reputation as a provider of job training and placement services for court-involved youths (Project CRAFT) and adults, and he inquired about bringing the program to the SCC shortly after taking over its management.

Three HBI instructors will teach carpentry, facilities maintenance and electrical wiring at the center, supervised by a project coordinator. Hands-on training projects will consist of campus-based activities to improve the facility as well as a myriad of community-based projects with local organizations and municipalities. Already in the wings is a joint effort by HBI with Lutheran Social Services and Habitat for Humanity to build home components at the correctional center that can be shipped to Habitat sites across the state.

“HBI’s reputation helped bring this program to Illinois,” said Mark Harrison, executive officer of the Home Builders Association of Illinois. “The ink is hardly dry, and already there is a plan to not only train new workers for the industry, but do so while helping others become home owners by working with Habitat. It’s a win-win all around.”

Serving as a pilot “therapeutic community” for non-violent adults, the newly reopened SCC is providing intensive substance abuse treatment, educational remediation and vocational training.

For more information on Project TRADE/Sheridan, e-mail John Hattery at HBI, or call him at 800-795-7955, x8916.

Double Oven Allows Simultaneous Preparation of Two Dishes at Different Temperatures

The Maytag® Double Oven Free-Standing range provides consumers with two ovens and a cooktop in the space of a standard, 30-inch traditional range.

Headquartered in Newton, IA, Maytag is a member of the National Council of the Housing Industry — the Supplier 100 of NAHB.

The double oven free-standing range configuration allows the preparation of two dishes simultaneously at different temperatures. Home owners can bake pies at 350 degrees in the 1.2-cubic-foot upper oven while preparing a turkey and casseroles at 400 degrees in the full-sized 4.0-cubic foot lower oven.

The upper oven enables home owners to save time on the preparation of everyday meals because it heats in half the time of a standard, conventional oven. A half-rack in the lower oven creates space for cooking multiple items.

The Maytag Double Oven Free-Standing gas range features DuraClean™ heavy-duty cast iron burner grates that wipe clean easily. The continuous grate design offers flexibility and stability needed for different-sized pans and heavy pots. The range also features a 16,000 BTU Power Boost™ burner for rapid boiling, searing and stir-frying, and a 500 BTU simmer burner for delicate tasks like melting chocolate.

The company’s electric model features a 12-inch/nine-inch Dual-Choice™ radiant element allowing consumers to match the size of the element to the pan size.

For more information, call 800-673-5262.

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.

September Is Associate Member Appreciation Month

Recognize the contributions of associate members throughout September — and all year long — by doing business with them. Not only does it make good business sense, associate members are a vital part of the federation.

• Nearly two-thirds of all members in the federation are associate members and their dues help fund association operations.
• The strength that associate members bring to NAHB and the local associations helps to continually improve the building industry.
• Additional advertising, sponsorship and exhibit fees from associate members generate hefty sources of non-dues revenue for each local association.

Five Associate Members Deserve Special Recognition

• Lee Terry, of Lee Terry Associates in San Mateo, CA. Terry is immediate past chair of the NAHB Women’s Council and a member of BUILD-PAC’s Capitol Club.

• In addition, four associates were inducted into the Society of Honored Associates this year:

  • Tom Board, O.C. Cluss Lumber Company, Fairmont, WV
  • James Goodwin, a new Gold Key, Complete Home Concepts, North Kansas City, MO
  • Harlan Holsing, Saginaw Bay Underwriters, Bay City, MI
  • David Sanders, Sanders Engineering, Inc., Bixby, OK

This month and every month, show associates in your HBA that you appreciate their contributions and hard work by giving them your business.

Award Provides Recognition for Community Service

Home builders associations, women’s councils and individual members who donate thousands of volunteer hours to Home Builders Care projects each year can ensure that their efforts are recognized by entering their project for the Home Builders Care/National Housing Endowment Project of the Year Award.

To enter, submit an entry form accompanied by a detailed project description of no more than two pages. Supporting material such as press clippings, programs or other project documents can be included with the entry form.

Entries are due by Oct. 15.

The National Housing Endowment Board of Trustees will select a winner at its December meeting.

The winner will be recognized at the 2005 International Builders’ Show in Orlando and receive a plaque and a $5,000 donation to a charity of their choice. A story on the project will appear in Nation’s Building News Online.

For a story on last year’s winner, click here.

For more information, e-mail Kym Kilbourne, or call her at 1-800-368-5242 x8447.

Save Up to 20% From Hertz, Get Fee Waived for #1 Club Gold®

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

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

Awards Programs Deadlines

Awards Program	Entries Due
BSC Excellence in Marketing & Home Design Awards	Sept. 10
The Nationals — The National Sales and Marketing Awards	Sept. 24
NAHB Associate of the Year	Oct. 4
National Housing Endowment/Home Builders Care Project of the Year Award	Oct. 15
Best of Seniors Housing — Celebrating Excellence...Visions of the Future	Oct. 22
Innovation in Workforce Housing Awards	Oct. 29

 Make Your Connection With www.nahb.org

Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB.

Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available to you 24 hours a day at www.nahb.org. Just click the "Member Log In" button to get started.