Nation's Building News Online: February 14, 2005Print All Articles Text Version |
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Demand for Rental Housing Poised for Improvements in 2005With jobs getting back to pre-recession levels and the nation’s workforce continuing to grow, the coming year promises to be favorable for the rental multifamily market, according to economists at the International Builders’ Show last month in Orlando, Fla. Condominiums, which surged last year and bolstered multifamily production during a period when rental vacancy rates were near record highs and rent concessions were commonplace, are expected to continue to gain ground, heading to almost one-third of the market. “This year will show good economic and job growth, which is good news for rentals,” said NAHB Chief Economist David Seiders. “Vacancy rates will fall, and absorption rates will rise.” Seiders said that demand for multifamily rentals will receive a bit of a boost from slowly rising interest rates that will push up monthly mortgage payments enough to slow the recent flow of renters into homeownership. While multifamily production has remained remarkably steady and healthy for the past several years, vacancy rates last year rose to their highest levels since the early 1990s, when the industry was in recession. For buildings with five or more units, they reached a peak of 12% in the second quarter, according to the Census Bureau. Vacancies in these buildings shifted down in the second half of 2004, but remained at a relatively high 11.5%. Housing analysts expect gradual improvement in vacancy rates as the year progresses, but cite wide regional and local differences in the strength of demand for multifamily rentals. Demand has tended to be strongest in California and the mid-Atlantic region — including markets where the cost of owning a home tends to be particularly high — and weakest in the Midwest. Among the nation’s 75 largest metropolitan areas, those with the worst overall vacancy rates for all multifamily units in 2004 included: Columbus, Ohio, 18.8%; Atlanta, 18.5%; Raleigh-Durham-Chapel Hill, N.C., 18.1%; Akron, Ohio, 17.5%; Oklahoma City, 15.8%; Houston, 15.7%; Chicago, 15.4%; Norfolk-Virginia Beach-Newport News, Va., 14.8%; Dayton-Springfield, Ohio, 14.8%; Denver, 14.5%; and San Antonio, 14.5%. Lowest vacancies were in: Orange County, Calif., 3.6%; Ventura County, Calif., 3.7%; Bergen-Passaic, N.J., 3.8%; Los Angeles-Long Beach, 3.8%; New York, 5.2%; Sacramento, Calif., 5.7%; Middlesex-Somerset-Hunterson, N.J., 5.8%; Honolulu, 5.8%; Riverside-San Bernardino, Calif., 6.0%; Fresno, Calif., 6.0%; and Boston, 6.0%. Ron Witten, of Witten Advisors in Dallas, is bullish about prospects for the multifamily industry in the year ahead. Demand for rental units has started growing faster than the pace at which they are being produced for the first time in years, he said, and that should push overall increases in rents into the 3%-4% range this year. The for-sale share of the multifamily market, now 30%, is at an all-time high, he said. Building News Coast To CoastTemperatures Rise, Utility Bills DropOnly about 1% of the homes built nationwide in each of the past five years can be considered zero-energy, according to NAHB analysts. That holds true for Long Island, N.Y., where less than 1% of the 4,500-5,000 new homes built annually in the same period produce as much energy as they use. The owner of one of those new homes — in a part of the country where winter morning temperatures can typically hover in the mid-20s — pays $500-$600 a year for heating oil and nothing for electricity thanks to a photovoltaic system of solar panels on the rooftop. One of the reasons people aren’t building this way is that consumers don’t seem to be interested in the energy savings. “Energy is not a priority,” said Bob Wieboldt, executive vice president of the Long Island Builders Institute. And then there’s the myth that energy-efficient construction techniques and materials are unreliable and expensive. Finally, builders seem hesitant to try new materials. Blaze Probe Shows Tie to Eco-TerroristsA blaze set last Monday at a newly constructed 100-unit apartment complex in Sutter Creek, Calif., 45 miles east of Sacramento, could possibly be the work of an environmental group that may be responsible for at least two other acts of arson in the Sierra foothills in recent months, according to federal agents and local law and fire officials investigating the crimes. Seven firebombs were found at the site, along with graffiti associated with the eco-terrorist group known as the Environmental Liberation Front, or ELF, according to a spokesman for the FBI. The building’s sprinkler system prevented the complex from being ruined. The Joint Terrorism Task Force is offering a $50,000 reward for the identification, arrest and conviction of the perpetrators. Construction Theft a Growing ConcernConstruction site theft is costing the residential building industry about $4 billion annually and increases the cost of an average home by 1.5%, according to NAHB estimates. “Front doors, toilets, bidets, Jacuzzis — they’ll steal about anything,” said Kris Ringle, chief superintendent for Calvert Homes, a Lake Ridge, Va.-based company that builds about 25 homes a year in fast-growing Stafford and Prince William Counties. Sheriff’s deputies in Loudon County, Va., report they took 347 construction theft reports last year, mostly for stolen kitchen appliances. The total value was more than $604,000. Items that have been reported missing in fast-growing Virginia suburbs in the Washington, D.C. area include three bathroom mirrors, custom-made and worth about $600 each; three chandeliers and seven pieces of trim for recessed lighting; moldings and cabinets worth $1,900; a box of Aristocraft cabinet knobs worth $160; and a copper roof finial priced at $1,300. Most thefts occur at night, but looters can be brazen, such as those who stole four decorative columns from the garage of a home under construction on a Sunday afternoon last summer. Doorknobs or stovepipes are typically pilfered by workers on site who take the products for themselves or to use them on another job. Some builders have installed surveillance cameras on some sites, but hiring guards is too costly to be an option. “It’s getting worse….The products that are being used are just extremely expensive,” says a local high-end builder. “It just makes it more enticing.” True Crime — Mapping Tools Help Apartment Firms Assess Their RiskCrime mapping can be a helpful tool for apartment and hotel builders who are choosing construction sites. The service of one vendor scores a property’s risk for homicide, rape, robbery, aggravated assault, burglary, larceny and car theft using police reports, FBI statistics, loss reports from the company’s own clients, and offender and victim surveys. Also included is information about the neighborhood such as the education and income levels of the population; how transient the population is; and what kind of housing surrounds the property. NIJ’s Mapping and Analysis for Public Safety Program allows police to plug in crime locations on a map indicating where culprits are likely to strike next; it is available for free at www.icpsr.umich.edu/nacjd/crimestat.html. The FBI’s Uniform Crime Report collects crime data from 17,000 law enforcement agencies, revealing crime clusters in state, cities and counties; the report is available for free at www.fbi.gov/ucr/ucr.htm. Yoga Rooms Are All the Non-RageSome 16.5 million people in the U.S. now practice yoga, according to a recent Harris Interactive survey for Yoga Journal magazine, and more than three-quarters of them spend some time doing yoga at home. “What we’re seeing more and more is people building the spa services they want right into their own homes with spaces such as yoga rooms,” says Heather McCune, editorial director of Professional Builder magazine. Finished spaces over garages, basements and spare bedrooms are all good candidates for yoga rooms. Model homes for Toll Brothers, the country’s largest builder of luxury homes, now feature a room off the master bedroom that they suggest using for yoga, mediation or Pilates. The finished rooms may appear sparse, but they can be luxurious. “No expense is spared in the materials, from wood floors with radiant heat to beautiful stone finishes,” says Los Angeles architect Alex Anamos of KAA Design Group, who is currently working on three homes that will have designated yoga rooms. Home and Family: Shopping AroundAbout 15% of the nation’s homes now have billiard tables, up from about 5%-8% a decade ago, according to Gopal Ahluwalia, NAHB’s staff vice president for research. The Sporting Goods Manufacturers Association expects to see a 6% increase in pool table shipments this year. With home-entertainment rooms now in vogue, manufacturers are hoping to expand their sales with models that make a design statement. Brunswick Billiards has introduced “Apollo,” a $3,500 bright blue table with steel legs and a black cloth-top, and “Genesis,” a cherry-red laminate table that costs just under $2,000 (at Brunswickbilliards.com). Contemporary styled tables can cost $13,000-$15,000 and even more Log Homes Offer Her New PathEntering her 50s, Jane Sharpe decided to chuck her job as vice president of corporate communications and shareholder relations at People’s Bank to start a new career selling log homes in Connecticut. She is successfully involved with homes in the $150,000 to $1 million range; nationwide, the average price for a finished log home is $300,000. She says she works hard to debunk the common misconception that log homes are old, dark, unfinished hunting and fishing camps. In fact, they are year-round residences and many are multimillion structures, especially in the western states and Rocky Mountains, she says. The popularity of log homes has been growing steadily since the 1980s, according to Eric Fulton, of NAHB’s Log Homes Council. “There has been a growth in their popularity as baby boomers start looking toward their final homes,” he says. “Log homes remind them of their summer homes, and the idea of green building is appealing.” He said that 25,000 log homes were built in the U.S. in 2001, about 7% of all custom homes. They accounted for about 2% of the custom market in the 1980s, according to Sharpe. St. Louis Downtown Population Is Increasingly Single, Young and GrowingDowntown St. Louis is in for a housing boom next year, with the opening of more than 1,500 new residential units, according to a report by the Downtown St. Louis Partnership, a nonprofit organization that focuses on improving the area. Residential development has focused on the renovation of historic buildings, the report says, but as those are depleted new construction will be needed to keep pace with growth. Recent developments downtown are trending toward a broader price range, aimed at residents with higher incomes who want more amenities. For example, the 24 units in Denim Lofts in what once was the Knickerbocker jeans factory are set to open in March of 2006; they will be 1,200-2,200 square feet and range in price from $175,000-$350,000. Residents in properties developed downtown since 2000 have higher incomes, the report found; 66% of them earn more than $50,000 a year and a quarter of them bring in more than $100,000. Since 1999, developers have invested $500 million in residential development downtown and the population has climbed 25% from 8,000 to 10,000. Fifty-nine percent of the housing units expected to open this year will be owned, compared to only about 10% for total downtown housing last December. Growth Spurt in Big Homes; More Buyers Are Two Families Who Have Become OneDennis Cleland, owner of D.C. Construction & Development in Los Angeles, which builds townhouses and single-family homes, says that about 60% of his business consists of blended families who are in the market for homes with several bedrooms to accommodate children from previous marriages. Blended families are a growing segment of the population that is helping to fuel interest in larger homes, according to NAHB. The New York City-based StepFamily Foundation estimates that in 50% of U.S. families one or both members of the couple have children from a previous marriage. Cleland says he doesn’t like to build a home with fewer than three bedrooms. “No matter how small the third bedroom is, even if it’s only 10 feet by 11 feet, bedroom count is the main thing.” Cleland says that he also designs homes with bathrooms that provide extra privacy. “In some of our homes, we’ll put the sink outside the toilet and shower area, so each bedroom has its own sink.” However, builders of larger homes aren’t just catering to blended families, he says; they are also responding to customers who desire prestige. One- or Two-Story Home? Weigh the OptionsAffordable one-level homes in new subdivisions are getting harder to find, according to a report from NAHB. As of 2003, the share of new homes with two or more stories was 52%, compared to just 14% in 1970. “It’s simply economics,” says Shawn Luesse, a residential development expert for Coldwell Banker. “It’s cheaper to build a two-story house with the same square footage than a one-story house.” The two-story house requires a smaller foundation; the plumbing and heating can be “stacked,” making those systems less costly to install; and less land is typically needed. Some builders of two-story homes are responding to the desire for one-floor living by designing floorplans that reduce the need for stair climbing. For example, more builders are designing models with a master bedroom suite on the first floor and a laundry room nearby. Appliance Makers Use Colors; Brighter Hues Such as Burnt Orange Are Seen as a Way to Stoke Up SalesWith manufacturers of large appliances experimenting with parts of the color palette rarely seen in kitchens and laundry rooms, it is now possible to get a washer and dryer in burnt orange. The colors themselves are getting bolder and more off-beat, going beyond blues and reds. Morice Equipment, a French professional cooking equipment manufacturer, is offering a stove in “British Racing Green.” At last month’s International Builders’ Show, Sears, Roebuck & Co. introduced Kenmore washers and dryers in “Sedona” and “Pacific Blue.” Stainless-steel appliance maker Dacor Inc. later this year plans to begin selling a double wall oven in colors such as pastel blue and pale green. The bolder colors come with higher price tags. Sears’ new Kenmore washers sell for $1,499, compared to $1,299 for a white version. The color appliances can also take longer for manufacturers to deliver. Shipments of the “big six” appliances — washers, dryers, dishwashers, refrigerators, freezers and freestanding and built-in ranges — are expected to increase to 45.5 million units this year, up from 45.1 million units in 2004, the Association of Home Appliance Manufacturers estimates. California May Reduce Housing Aid to SeniorsTo help close his state’s $9.1 billion budget gap, California Governor Arnold Schwarzenegger has proposed scaling back a grant program that helps low-income senior and disabled residents pay their rent or property taxes. Under the proposal, the income threshold for the grants would be lowered to $13,200 from about $37,000 currently, and the amount of the grants — which do not need to be repaid — would be reduced. In 2003, about 628,000 households received grants averaging $291 under the program; 474,000 of them were renters. Under the governor’s new plan, those who do qualify for the grants would receive $96 on average. For home owners, Schwarzenegger is proposing the expansion of a separate program that allows seniors to postpone paying their property taxes, resulting in a lien on their house until it is sold or they or their estate pays. The loan would carry about a 2% interest rate. Shhh! Home Devices Are Getting QuieterMajor appliance makers exhibiting at last month’s International Builders’ Show are responding to the public’s growing aversion to noise with products such as the 18-inch-wide Integra Vision dishwasher ($999) from Bosch that runs at 48 decibels, quieter than a normal conversation, which runs at about 65 decibels. KitchenAid’s quiet new Pro Line washer and dryer are 20%-25% quieter than “the quietest ones out there,” according to the manufacturer. Both machines have new rubber feet and the washer uses newly designed drain hoses that absorb sound, along with a new shock absorber around the drum and a new coating that surrounds the chassis. Consumers in test groups complained that General Electric’s new Monogram dishwasher ($1,249-$1,349) was so quiet that they couldn’t tell when a load was done. The new unit uses a small green light on the upper right corner of the door to indicate when the dishes are clean and dry. Jeld-Wen’s ProCore Quiet Door (filled with particle board and costing $150 pre-hung) transmits only half as much sound as hollow models and costs 20% more. Broan’s QT series fans ($80-$90) run “almost inaudibly” thanks to wider exhaust pipes and slower fan speeds, but because the bathroom is often in a public area of the house, “People want a certain level of noise as camouflage.” Engineering a Better BulbScientists believe that zinc oxide — the same chemical used to prevent diaper rash — could be used to make a light-emitting diode (LED) that could convert electricity to light 10 times more efficiently than the tungsten filaments used in today’s incandescent bulbs. It also lasts 10 times as long. Switching from tungsten to light sources like zinc oxide could cut global electricity consumption for lighting by more than half, but the expansive infrastructure changes that are required will be a formidable hurdle. Zinc-oxide LEDs could help Americans save $35 billion a year. Senate Passes Class Action Bill, House Approval Expected This WeekLegislation approved by the Senate on Feb. 10 that would help curb frivolous class action lawsuits that unnecessarily drive up the cost of housing has received the strong backing of the nation’s home builders. “Because of the vital importance of this issue to our industry, NAHB had designated consideration of S. 5, the ‘Class Action Fairness Act of 2005,’ as a key vote among our members,” said NAHB President David Wilson. “We are delighted that this measured reform for certifying class actions received overwhelming bipartisan support,” he added. The bill passed in the Senate by a wide margin of 72 to 26. The House is expected to approve the tort reform measure this week and send it to the President to sign into law. The legislation would move to federal court class action lawsuits that are for more than $5 million in damages and that involve defendants or plaintiffs who live in multiple states. “As an association that represents the entire spectrum of the housing industry — from small and high production builders to manufacturers of component products — NAHB believes these provisions will discourage ‘forum shopping,’ an abusive practice in which attorneys seek out certain state courts that have a history of biased judgments against defendants in class action suits. “This has reached a point where defendants will settle cases, even those without merit, rather than risk trial in state court. This bill will protect defendants from undue pressure to settle and ensure protection for plaintiffs,” said Wilson. To read the legislation, click here and type S. 5 in the box at the upper left. For more information, e-mail Michael Strauss at NAHB, or call him at 800-368-5242 x8252. Housing SnapshotMortgage interest rates continued to nudge downward last week despite the Federal Reserve's ongoing efforts to tighten its monetary policy. Freddie Mac Chief Economist Frank Nothaft credited weaker-than-expected employment figures in January for the decline, and he noted that the rate on one-year adjustable rate mortgages last week fell for the first time in five weeks. "According to Freddie Mac's weekly survey, interest rates on 30-year, fixed-rate mortgages have not risen above 6% in at least six months, which has helped to keep the housing market bustling. As a matter of fact, we are forecasting that long-term mortgage rates will average only about 6% for the year," Nothaft said. The biggest news for the nation's economy last week came from the Commerce Department, which announced a record $616.7 billion U.S. trade deficit for 2004, a 24% leap over the prior year. As a share of the Gross Domestic Product, the trade deficit rose from 4.5% in 2003 to 5.3% last year. The figure for December, however, showed some decline. Lumber prices continued to move forward aggressively last week, though it was not clear how much longer the upward trend will continue. The cost of framing lumber rose from $404 per 1,000 board feet to $422 last week, according to Random Lengths. The panel composite price, which includes plywood and oriented strand board, rose from $424 per 1,000 square feet to $455. Mortgage Interest Rates30 Year Fixed Rate: 5.57%\% Housing Starts: Dec. 2004Total: 2.004 million\% New Home Sales: Dec. 2004 *1.098 million Existing Home Sales: Dec. 2004 *6.69 milliion * Seasonally Adjusted Annual Rate NAHB Is Your Business PartnerIf you were one of the record 105,000 housing professionals who attended this year’s International Builders’ Show in Orlando, then you saw for yourself that nobody puts on a show like NAHB. From the largest assembly anywhere of cutting-edge building products and services to presentations by expert speakers on the issues that are shaping our industry, in four super-charged days NAHB’s annual exposition provides the resources and the ideas that can keep your business ahead of the competition. NAHB is the best business partner you could have, not just at the start of the year but all year long. I am committed to providing our members with the tools they need to score success in an industry that is always fraught with challenges. We are fired up about prospects for housing in 2005 and we are ready to deliver. In the coming year, we’re going to continue to focus on what NAHB does best, and we’re going to do it better than ever. One of our top priorities is improving the business environment in which we all operate. This means eliminating the regulatory barriers that frustrate our efforts to supply the housing that is sorely needed in our growing communities. And it means empowering our members with educational opportunities so that they will have the wide range of abilities needed to prosper in the home building business — to assess your marketplace, provide your prospective customers with what they want, run an effective operation, navigate the approval process, turn neighbors into supporters of your housing plans and much, much more. We’re going to be more proactive in moving forward our legislative agenda in the 109th Congress. We’re going to tackle issues head-on. One of the top issues emerging in the Senate will be reforms for the housing industry’s government sponsored enterprises (GSEs) — Fannie Mae, Freddie Mac and the Federal Home Loan Banks. Following the recommendations of a specially appointed NAHB task force on this issue, our board of directors has just approved major policy on oversight reform, and we’re ready to lead the debate. Another goal we will continue to pursue with full determination is increasing the supply of affordable workforce housing for teachers, police officers, fire fighters and other essential employees who have been priced out of living in the communities they serve. We brought this issue to national attention last year and identified resources and approaches that will begin to address the problem. We will pursue those initiatives this year, and we will also continue our support for proposals by the Bush Administration to create a homeownership tax credit and a zero-downpayment FHA mortgage to boost homeownership opportunities in this country. In our commitment to make NAHB your true business partner, we will also be increasing our efforts this year on retaining current members and acquiring new ones. Membership is the lifeblood of this association. Our grassroots membership is the source of our strength, and in 2005 we plan to make the members of our federation even stronger through the expansion of NAHB’s educational programs and networking opportunities, including the 20 Clubs. Finally, I want to let you know about the Home Builders Care/National Housing Endowment-Tsunami Shelter Fund. With an initial donation of $250,000 designated by the NAHB Board of Directors in Orlando, the fund will be directed to rebuilding efforts that provide temporary and permanent shelter for survivors. I have asked Bob Mitchell, a past president of NAHB, to lead this effort. We will be working with U.S. charitable organizations to demonstrate our concern, and I urge you to join in this effort through a tax-deductible donation. For more information in this issue of Nation's Building News on how you can do your part to address the shelter needs of nations devastated by the tsunami, click here. You can ask the President of the United States, leaders in the Congress, the chairman of the Federal Reserve or the top economists in the country, and they will all tell you that housing has been the driving force supporting our economy for the past several years. And you can ask the parents of your childrens’ friends at school, members of your church congregation, people standing in the checkout line at the grocery store, and they will tell you that there are few things more important for their families than housing. That is an awesome responsibility for a single industry, but one in which we can all take great professional pride. I promise you that NAHB will continue to be your voice — the voice of housing in America. I look forward to serving you and our entire membership. President Proposes Spartan Spending on Some Housing ProgramsUnveiling a spartan budget that cuts spending in nearly all domestic programs, including dramatic reductions in some Department of Housing and Urban Development programs, President Bush on Feb. 7 formally delivered his $2.5 trillion FY 2006 budget proposal to the Congress. Under the plan, the White House estimates that more than 150 major discretionary programs would be eliminated, saving the U.S. Treasury approximately $20 billion. Bush proposed consolidating 18 federal grant programs — including Community Development Block Grants (CDBGs) — into the “Strengthening America’s Communites Grant Program,” which would be administered by the Commerce Department. Appropriations for those programs would dwindle from about $5.3 billion in FY 2005 to only $3.7 billion under the consolidated plan. Several lawmakers on Capitol Hill have expressed skepticism about the new grant program. While the President’s budget recommends spending levels for the next fiscal year, it is not legally binding. Congressional appropriators will have the final say in program realignment and spending levels. Overall, the Department of Housing and Urban Development (HUD) is funded at $28.5 billion for FY 2006, a decrease of 11.5% from the current year, but much of the reduction stems from the plan to move its CDBG program to the Commerce Department. While proposed allocations are similar to this year’s for many programs, others have been slated for drastic cuts. In areas of interest to housing, the President’s budget plan:
NAHB continues to analyze the President’s budget package, and will be working with congressional appropriators as they craft the FY 2006 spending bills. Given the austere budget presented to Capitol Hill, the scores of key programs that have been cut or eliminated and the number of lawmakers who have already voiced concerns over the President’s budget, the ensuing appropriations process is likely to be drawn out and contentious. For more information, e-mail Jenna Morgan Hamilton at NAHB, or call her at 800-368-5242 x8407. Builders Support OSHA Reform PackageFour bills introduced on Feb. 10 by Rep. Charlie Norwood (R-Ga.) would improve the enforcement of the Occupational Safety and Health Administration's many rules and regulations among small business owners, according to NAHB. “The vast majority of NAHB’s members own small businesses and often find themselves unequipped to negotiate OSHA’s reams of regulations and requirements,” said NAHB President David Wilson. “This legislative package will help to reduce some of the regulatory burdens faced by our members when they try to work within OSHA’s complicated system of due process, and will provide OSHA with greater flexibility to respond to small businesses without sacrificing workplace safety.” Of particular note to home builders are H.R. 739, the “Occupational Safety and Health Small Business Day in Court Act,” and H.R. 742, the “Occupational Safety and Health Small Employer Access to Justice Act.” The first bill would allow OSHA to give businesses more than 15 days to respond to a citation; the second would make it easier for companies to recover attorneys’ fees when they successfully defend themselves against a citation. H.R. 740, the “Occupational Safety and Health Review Commission Efficiency Act,” would add two more administrative law judges to the three-member Occupational Safety and Health Review Commission (OSHRC), which hears appeals of violations. At its current size, the commission frequently has to delay hearings because it does not have a quorum. The measure is designed to address this problem. H.R. 741, the “Occupational Safety and Health Independent Review of OSHA Citations Act,” would require judges to defer to the OSHRC when OSHA cases are appealed to the courts. The four bills are identical to OSHA reform measures passed by the House last spring. “These bills would improve workplace safety and help to level the playing field for small businesses that seek to defend themselves in OSHA actions that are brought against them,” said Wilson. “We urge the House to approve these measures and call on the Senate to introduce similar legislation.” To read the legislation, click here, and enter the bill numbers in the box at the upper left. For more information, e-mail Jenna Hamilton Morgan at NAHB, or call her at 800-368-5242 x8407. Builders Support Congressional Efforts to Improve Endangered Species ActA new, coordinated approach between the House and the Senate to improve and update the Endangered Species Act (ESA) outlined last week at a Capitol Hill news conference by Sens. Mike Crapo (R-Idaho) and Lincoln Chafee (R-R.I.), and Reps. Richard Pombo (R-Calif.) and Greg Walden (R-Ore.), has received the backing of the nation’s home builders. NAHB President David Wilson said that the nation’s home builders commend the four legislators for “seeking to adopt a common-sense approach that provides for species conservation and protection while avoiding the adverse economic impacts of excessive environmental regulation under current law.” “As the hard-working people in Oregon’s Klamath Basin will tell you, and the National Academy of Sciences will confirm, this well-intentioned law simply isn’t working as it should,” said Walden. “Not only should the health of species throughout the nation be demonstrably improved by the ESA, but the health of communities and local economies should also be carefully addressed as they too are directly driven by the act.” “I believe as we move forward in this process, we need to make private property owners part of the solution,” added Pombo, who noted that 93% of critical habitat species reside on lands owned by private citizens. Sens. Chafee and Crapo reaffirmed their intent to seek bipartisan support for a consistent approach in both chambers of Congress. Chafee, who is chairman of the Subcommittee on Fisheries, Wildlife and Water, said that his panel will hold hearings later this year and seek broad participation from the environmental and business communities. As a long-time proponent of improving the Endangered Species Act, NAHB believes that Congress should adopt a well-balanced critical habitat reform measure that strengthens the act and ensures that the data used to make decisions under the statute actually serves to protect species. “Two bills approved by the House Resources Committee in the 108th Congress would achieve these objectives,” said Wilson, referring to the “The Critical Habitat Reform Act” that was championed by Rep. Dennis Cardoza (D-Calif.), and the “Sound Science for Endangered Species Act Planning Act,” which was sponsored by Rep. Walden. “These bills would promote species recovery, reduce litigation, provide incentives for private landowners to enact voluntary conservation measures and ensure that Endangered Species Act decisions are based on sound scientific data. NAHB supports the reintroduction of both of these measures in the 109th Congress,” he said. For more information, e-mail Michael Strauss at NAHB, or call him at 800-368-5242 x8252. NAHB Ad Campaign Targets Congress for SupportNAHB launched a major new ad campaign this week to focus Congress' attention on housing, its contribution to the nation’s economic recovery and to the robust demand for new housing projected for the next 10 years. “After back-to-back record-breaking years for homeownership, new housing production and home sales, it's not surprising that some members of Congress don't exactly have housing on the front burner. But serious work must still be done to ensure that the housing needs of millions of Americans each year are met,” said NAHB President David Wilson. The ads urge Senators and Congressmen to take a pro-housing stance on legislation that is expected to be considered in the current session. The campaign will culminate with a day-long ad blitz on April 13, the day of the NAHB Spring Legislative Conference when 700 builders are expected to converge on Capitol Hill for pre-arranged meetings with federal legislators. Full-page advertisements will appear in publications regularly read by members of Congress, including Roll Call, National Journal, The Hill and Congressional Quarterly. In addition, radio spots will air on National Public Radio and the Washington, D.C. stations WTOP, WMAL and WBIG. To view the print ads, “America’s Home Team” and “Stepping Up to the Plate,” and to listen to the radio spot, “Step Up to the Plate,” visit the NAHB Web site at www.nahb.org/Congress. Eye on the EconomyBy David F. Seiders, NAHB Chief Economist Growth of real gross domestic product (GDP) slowed to an annual rate of 3.1% in the final quarter of 2004, according to the “advance” estimate released by the Commerce Department on Jan. 28. This pace was well below consensus expectations and NAHB’s estimate (3.8%). But the composition of the report hardly suggested that the economic expansion faltered in a fundamental way, and some statistical issues uncovered after release of the GDP report point toward a significant upward revision when the “preliminary” report is released on Feb. 25. The details of the advance fourth-quarter GDP report actually were quite encouraging and reinforce expectations of solid economic growth for 2005. There certainly was no weakness in domestic demand for goods and services, as the measure of final sales to domestic purchasers rose at a robust 4.3% annual rate. This heady performance was led by rapid growth in both consumer spending and business investment in equipment and software. The job market continues to improve, although the degree of remaining slack has come into question … On Feb. 4, the Labor Department released the employment report for January and unveiled benchmark revisions to both payroll and household employment figures. The historical revision raised the payroll employment level substantially, and the January gain (146,000 jobs) lifted the employment level slightly above the cyclical peak in February 2001 — while converting a small net loss during the first Bush term into a small gain. The unemployment rate for January (from the household survey) fell by two-tenths to 5.2%, an unexpectedly low reading. Such a move normally suggests a healthier labor market, but the January decline primarily reflected a decline in the labor force participation rate and a large decline in the labor force. These results fly in the face of consensus expectations of a rising participation rate and a growing labor force that will continue to support above-trend growth in economic output with minimal upward pressures on labor costs and price inflation. We haven’t exactly scurried back to the drawing board, but it’s fair to say that the plot has thickened with respect to current and future slack in the labor market. The inflation situation remains benign but upward pressures lie ahead … The inflation situation in the U.S. remains remarkable benign as the economy moves into the fourth consecutive year of expansion. Core inflation (excluding prices of food and energy) has been particularly well behaved in the face of strong growth in economic output and declining slack in the labor market. It’s worth remembering, of course, that our central bank looks ahead and wants to nip serious inflation pressures in the bud. In this regard, the minutes from the Dec. 14 Federal Open Market Committee (FOMC) meeting — released on Jan. 4 ― highlighted a number of upside risks to core inflation:
Everything considered, the FOMC concluded that cost and price pressures were likely to become a clearer intermediate-term risk to sustained good economic performance if the Fed did not continue to reduce the degree of monetary policy “accommodation.” That conclusion virtually mandated another quarter-point increase in the federal funds rate target at the conclusion of the Dec. 14 meeting and guaranteed that the Fed would continue to talk about further monetary tightening “at a measured pace.” The Fed marches down the path to monetary neutrality … As widely expected, the Fed hiked short-term interest rates by another quarter point at the conclusion of the Feb. 2 FOMC meeting, raising the federal funds rate target to 2.5%. The FOMC statement was nearly identical to the statement issued on Dec. 14, and the consistency of the statement implied that the central bank plans to stay with the pattern of gradual rate hikes that began at the middle of last year. The surprising weakness of payroll employment growth in January, along with downward revisions to job growth in both November and December, prompted some speculation that the Fed might delay the monetary tightening process pending better job growth down the line. However, the FOMC has repeatedly stressed that its “obligation to maintain price stability” will be fulfilled, and the reduction in labor market slack shown by the household side of the January employment report argues strongly for further systematic removal of monetary stimulus from the economy. Translation — count on another quarter-point rate hike at the March 22 FOMC meeting. Long-term interest rates remain stubbornly low … The monetary policy process kicked off at mid-2004 has yet to raise long-term rates. Indeed, long-term Treasury, mortgage and high–grade corporates are now at or below the levels of mid-2004. Furthermore, quality spreads in bond markets narrowed during this period, lending standards at depository institutions remained quite liberal, the dollar declined rather than rose and the stock market was up substantially. Thus, prominent measures of overall financial market conditions show better conditions since mid-2004 despite the 150 basis point increase in the federal funds rate. It’s become clear that persistent forces are holding down long-term rates. As a result, we’ve just trimmed our projected pattern of long-term rates across the 2005-2006 forecast period, cutting year-end readings by about 30 basis points. Moderate increases still are expected, partly because we believe that market participants have overly optimistic views on both future inflation and the amount of monetary policy tightening that lies ahead. Housing markets remain quite strong but further growth will be hard to achieve … Housing market activity turned out to be surprisingly strong in 2004, and the surprise was due to unexpectedly low mortgage interest rates. Fourth-quarter housing activity was influenced by unusual swings in weather conditions but, in general, the data suggest a topping-out pattern for home sales, housing starts and construction put-in-place. In the process, new annual records were set for sales of both single-family homes and condo units as well as for improvements to residential structures. The strength of the condo/co-op market kept the production of new multifamily housing flat in 2004 despite a record vacancy rate (11.7%) in the rental apartment market (structures with five or more units). This vacancy rate is the “other side” of the record high homeownership rate (69%) posted in 2004. Thankfully, rental vacancy rates started to move down a bit in the second half of the year as job growth helped fill up some empty units. Looking ahead, we’re projecting modest (3%-4%) declines in home sales and housing starts in 2005, followed by a similar pace of erosion in 2006. At the same time, we’re projecting positive growth in remodeling activity and a modest recovery in the beleaguered manufactured home (HUD-code) market. Everything considered, our forecast shows slight declines in the residential fixed investment component of GDP, a process that finally takes housing out of the GDP growth-engine category and converts housing to a bit of a drag on economic growth. Investor-driven price appreciation looms over some housing markets … It’s fair to say that potential price inflation generated by a surge in buying by investors and speculators loom over both single-family and condo markets in some metro areas. Indeed, the minutes from the Dec. 14 FOMC meeting cited “reports that speculative demands were becoming apparent in the markets for single-family homes and condominiums.” While overstimulated prices pose risks in some markets, dramatic price declines are unlikely unless interest rates spike upward and/or job markets falter badly. If interest rates behave about as we expect, and if job markets continue to strengthen in most areas (as we expect), the most likely prospect is for price flattening in overheated markets and a slowdown in national average house price appreciation. We’re looking for national price gains on the order of 5% this year, off from roughly 10% in 2004. NAHB Chief Economist David Seiders analyzes the economy from the point of view of the housing market every other week in the free e-newsletter, “Eye on the Economy.” The preceding is a reissue of his Feb. 9 edition. To subcribe to “Eye on the Economy,” click here.
‘HousingEconomics Online’ Provides In-Depth Analysis of Housing Market "HousingEconomics Online" is a new online publication from the NAHB Economics Group that provides the latest housing economic data, trends and key events shaping the economy. NAHB’s leading economists analyze and synthesize the housing and economic information to provide in-depth analysis of the niches and nuances of the home building market. Available at BuilderBooks.com, "HousingEconomics Online" combines unique scientific research with practical applications providing insights that are original, useful and written in terms that builders, manufacturers and housing finance professionals can understand and apply to their own businesses. This interactive Web site at the executive level provides critical data and information quickly, easily and frequently and includes the following features:
For more details, go to www.housingeconomics.com. Survey Finds Contractors Often Underestimate ExpensesContractors often short-change themselves and end up putting their businesses on the line by underestimating jobs, according to a survey by Intuit Construction Business Solutions. The results contradict the unfair reputation for over-billing that saddle contactors sometimes. Half of the Intuit survey respondents said they often omit general condition costs from their job estimates. These omissions — which include supervision, phone calls and temporary power — result in lower revenue and gross profit. Most respondents, however, recognized the problem. When asked about the areas of their business most needing improvement, 65% of the respondents cited greater job profitability and 57% said more accurate estimating. More than 500 residential and commercial contractors and subcontractors were surveyed for Intuit by the independent research firm Decipher. The results were announced during the International Builders’ Show in Orlando, Fla. last month. “Business growth is not simply about hiring more employees and winning more jobs,” says Carol Novello, president of Intuit Construction Business Solutions. “Success in today’s unpredictable economy depends on uncovering costly inefficiencies and new revenue opportunities. An important first step is to bill your expenses fully and fairly.” Scheduling and Managing Labor Is the Most Frustrating Aspect of Business Asked to name the most frustrating aspect of managing a contracting business, 50% of the survey respondents cited scheduling labor and managing work crew productivity. Almost as many respondents said hiring quality employees was their greatest challenge. Despite obstacles in managing their businesses, the survey respondents estimated that their current gross profitability per job was 15.5%. They also anticipate 12% growth over the next five years. Interest Rates and Healthy Economy Drive Growth Not surprisingly, most said the health of the economy and interest rates would have an effect on their success. Seventy-two percent of contractors consider interest rates and the economy as the key factors driving construction industry growth. To meet growth projections, 66% of respondents said they would hire additional field employees. One cause for optimism among new companies is evidence that the road gets smoother with time. Builders with annual revenues of at least $10 million were the most successful. One possible reason: These companies use a single, integrated management solution for estimating, scheduling, accounting and analysis. Thirty-nine percent of respondents reported that they expect to invest in integrated business management software in the next three years. Regarding business technology, 32% of survey respondents said they were happy with their current technology but would upgrade to save additional time and money. Twenty-five percent reported that they would upgrade for greater product functionality. Two-Thirds Have No Exit Strategy As for what to do with their businesses when they retire, overall, 67% of survey respondents said they have no exit strategy, but 60% of contractors who have been in business more than 10 years indicated that they do have plans in place. Of those respondents with exit strategies, 38% plan to sell or give their companies to family members.
'PRO Builder: Business Planning' Available at BuilderBooks.com “PRO Builder: Business Planning,” available through BuilderBooks.com, spells out the benefits of preparing business plans and provides proven methods for establishing goals, developing strategies, setting priorities and evaluating results. The publication includes step-by-step exercises and an electronic spreadsheet to help you develop a customized plan for your business. To view or purchase this publication online, click here, or call 800-223-2665 to order. NAHB Has More Than 170 Resources to Help You Run Your Business More Profitably Go to NAHB's Business Management Tools Web pages for instant access to more than 170 timesaving, moneymaking and cost-cutting business resources to help you run your business more profitably. Get guidance on accounting and financial management, business strategy, computers and information technology, customer service, human resources and more. Don’t Be a Mind Reader: Ask Home Owners for FeedbackAs an ambitious Nebraska teenager with initiative, I fell for a multi-level marketing “opportunity of a lifetime.” According to the family friend who recruited me, wannabe customers would be literally waiting for me to knock on their door and sell them — cans of instant shoeshine and earthy-scent aftershave. Brimming with optimism, I ordered a case each of the shoeshine and aftershave. Why wait for customer orders? I already knew in advance what customers wanted. Figuring on re-ordering after my first day, I boldly went door-to-door... Many years later, after paying movers to transport full cases of instant shoeshine and earthy-scent aftershave lotion from house to house, I finally trashed the stuff. How could I have been so wrong? No one wanted what I had already decided they needed — a shine on their shoes and the smell of the forest on their skin. I didn’t fall prey to a zealous marketer as much as I fell victim to my own miscalculation of thinking I knew the customers better than they knew themselves. Only Customers Can Tell You What They Think About Their Satisfaction Companies sometimes make that mistake, too. Remember the XFL (Extreme Football League)? Or Gerber’s Baby Food for Adults? Or the ill-fated New Coke? These are all cases of companies thinking they knew what the customer wanted when in real life it just wasn’t so. Builders aren’t exempt when it comes to thinking they know their customers without actually asking them. Our company recently conducted a builder survey. We asked 2,600 builders nationwide that have annual volumes ranging from fewer than 50 to thousands of homes how they use home owner feedback to improve their businesses. Why Builders Don’t Survey The vast majority (75%) of builders we surveyed don’t survey their buyers. We asked them why, and these were their top five reasons:
Wow! And I thought I was arrogant in believing people wanted cheap shoeshines and aftershave. Say I’m old-fashioned, but give me a builder who realizes customer satisfaction surveys are as much a part of the home building process as the quality of basic construction and I’ll show you a builder whose business will endure any hiccups in the economy. Most Home Owners Want to Answer Survey Questions In defense of builders, nothing is perfect. Houses are handmade. However, recognizing that houses are imperfect is not enough to get you off the hook if you don’t survey your home owners. For the most part, your home owners will value the opportunity to respond to a survey. Three Tips About How to Conduct Surveys Whether you currently survey or need to begin surveying your home owners, what can you do to get useful feedback from your customers? Here are three tips:
Only the customer can tell you what they think about their satisfaction. They have entered into a business partnership with you and want to talk about their building experience. It costs money to survey and the responses can be painful, but it’s not nearly as costly or painful as ignoring your home owner’s need to provide feedback. Paul Clem is president of How America Thinks, the Overland, Kan.-based company that developed RateMyBuilderOnline, a Web-based tool for measuring consumers’ satisfaction with home builders. For more information, e-mail Clem or call him at 913-469-0070 x14.
'PRO Builder: Business Planning' Available at BuilderBooks.com “PRO Builder: Business Planning,” available through BuilderBooks.com, spells out the benefits of preparing business plans and provides proven methods for establishing goals, developing strategies, setting priorities and evaluating results. The publication includes step-by-step exercises and an electronic spreadsheet to help you develop a customized plan for your business. To view or purchase this publication online, click here, or call 800-223-2665 to order. NAHB Has More Than 170 Resources to Help You Run Your Business More Profitably Go to NAHB's Business Management Tools Web pages for instant access to more than 170 timesaving, moneymaking and cost-cutting business resources to help you run your business more profitably. Get guidance on accounting and financial management, business strategy, computers and information technology, customer service, human resources and more. Builder 20 Clubs Help Maximize Benefits of NAHB MembershipPresented with a Silver medal last week in Association Trends' All-Media Competition, a brochure on "20 Reasons to Join an NAHB 20 Club” provides a comprehensive introduction to an innovative networking and educational program that can be a viable resource for members of NAHB. The 20 Clubs gather together similar housing professionals from non-competing markets who meet several times a year to compare notes on improving their business performance. The members compare financial information, identify trouble spots and share advice on increasing profits and improving operations. Each company’s financial results are reviewed annually by the club. “Builder 20 Clubs are a great tool that NAHB members can use to improve the way their businesses perform, and they’ve been very successful,” said NAHB President Dave Wilson. “Our goal is to add 25 new 20 Clubs in 2005, on top of the 43 we currently have in operation.” The “20 Reasons” booklet includes applications for joining any of the individual clubs. In addition to builders and remodelers, the 20 Clubs are aimed at specific NAHB constituencies, such as builders who specialize in housing for active-adult seniors, builders of multifamily apartments, land developers, urban home builders and marketing professionals. NAHB staffers put together the initial members of a club based on their business profiles, and take care of meeting logistics and registration fees. To be eligible to join a 20 Club, participants must be NAHB members in good standing who complete at least one project annually; and they must be the owner, principal or president of their company. Participants are required to attend scheduled meetings regularly. All 20 Club members sign confidentiality agreements and are from different markets, enabling them to discuss their pressing business issues freely. They learn from one another’s mistakes and successes, and help each other establish strategic timelines for achieving corporate goals. Members pay approximately $500 in annual dues, plus meeting expenses. The following 20 Clubs are now signing up new members:
For more information, click here; send an e-mail; or telephone Cheryl Caulfield at 800-368-5242 x8110. NAHB Statistical Model Helps Identify Apartment Features That Bring Higher RentsA statistical model developed by NAHB showing how different amenities and features can have an impact on gross rents can help apartment developers and owners place a value on these features as they compare rents in their region. The model can also help owners determine if specific property renovations are worthwhile. While the NAHB model estimates average gross rents across broad Census regions and doesn’t include all of the features that can have an impact on rents, it can be used to show how changing the age, structural features, general location and neighborhood characteristics of an apartment in a building with five or more units tends to affect its market rent. Using the model to analyze a “standard” 1,000-square-foot apartment, with two full baths, two bedrooms, two miscellaneous rooms and no amenities in a three-story building, Paul Emrath, NAHB’s vice president of housing policy research, identified several factors behind apartment rents. Except in the West, with the exception of large California metro areas, rents are higher in the suburbs than the central cities, and higher in central cities than in non-metro areas, the model found. Rents also tend to be higher in taller buildings, most likely because they tend to be built in locations where land prices are higher. Looking at a standard apartment in a southern suburb, the analysis also found that:
For more information on the NAHB model, e-mail Paul Emrath or call him at 800-368-5242 x8449. Apartment Builder Andrew Chaban Honored for Affordable Housing AdvocacyNAHB honored Andrew Chaban, an apartment builder from North Andover, Mass., with the Dan Grady Memorial Award for his commitment to quality, affordable housing and his service to the association. The award was presented at the International Builders’ Show last month. “Dan Grady made his ideals about the need for housing to serve families of all income levels an integral part of NAHB’s mission,” said 2004 NAHB President Bobby Rayburn. “Andrew’s dedication to the housing industry and to NAHB as the voice of housing would make Dan Grady proud.” Chaban is the CEO of Princeton Properties, which owns and manages 5,000 apartment units in 33 communities throughout New England, He was instrumental in the creation of NAHB Multifamily’s Housing Credit Group, which is considered the nation’s leading voice for private sector developers in the low income housing tax credit industry, and has served in several key leadership positions within NAHB. Chaban was recently named one of “125 Leaders who Make a Difference” by Banker and Tradesman of Boston. He currently serves as chair of NAHB’s Federal Government Affairs Committee. During an almost 50-year career, Grady developed and managed subsidized housing. He also served as a consultant to other developers, non-profit organizations and government agencies on how to best use programs administered by the Department of Housing and Urban Development to create quality housing for lower-income families. Grady was inducted into the Housing Hall of Fame in 1992. A Cool Kitchen Checklist to Wow Your ClientsKitchens are the most popular spot in the American homes that we build and remodel — and with good reason. That’s where the party happens, right? Cozy or jazzy, kitchens are where friends and family congregate and where we all spend time every day. Kitchen renovations also provide the highest potential payback for your clients on resale, as if just having a perfect kitchen isn’t payback enough. As a remodeler, if you can customize your clients' kitchen space to make it theirs and the new finished kitchen elicits praise from their friends and neighbors, your clients will think you’re a genius — and refer you to others. The following is checklist of cool kitchen ideas, any number of which will help you wow your clients and transform their kitchens: Lighting
Electrical
Plumbing Fixtures
Kitchen Floors
Countertops
Backsplashes
Cabinetry
Window and Skylights
Appliances
Also, the “retro look,” in which new energy-efficient appliances now look like the funky old ones, has some baby boomers going ga-ga. Talk to your home owners about these and all the other cool kitchen innovations that seem to cross our desks each week. If you want your clients to have fun in the kitchen, make their kitchen fun. Dan Bawden, CAPS, CGR, GMB , is president of Legal Eagle Contractors in Houston, and the winner of the "Texas Remodeler of the Year" three times, the Houston Remodeler of the Year twice, Big 50 winner and National Remodeler of the Month, among others. Bawden teaches other builders and remodelers at Certified Graduate Remodeler/Graduate Builder Institute classes at the "CGR College" he began in Houston while he was the Remodelors™ Council president. For more information, contact Bawden via e-mail or through his company’s Web site.
The NAHB University of Housing Offers Designation Programs and Other Courses The NAHB University of Housing offers CAPS, CGR, CGB and a variety of other professional designation programs and business management courses that set builders and remodelers apart from the competition. To learn more about NAHB’s designation programs, visit www.nahb.org/designations. For a complete list of all current education offerings, click here. Who Will Be the Next Remodelor™ of the Month? The Remodelor™ of the Month (this link is accessible to Remodelors™ Council members only) award program is underway. Don't miss your opportunity to be named the Remodelor™ of the Month. Kitchens, ‘Hiving’ and Financing to Drive Remodeling Trends in 2005A perennial hot spot in the remodeling market, the coming year should bring some new twists in the kitchen, according to remodelers participating in an industry trends panel discussion during last month’s International Builders’ Show in Orlando, Fla. Home owners are also looking for remodeling opportunities to create more versatility and privacy in their living space, and they are interested in innovative financing that will enable them to tackle larger remodeling jobs, the panelists said. With kitchen remodeling becoming increasingly popular in recent years and veering toward mass production, the industry professionals said that home owners are now looking for originality and are embracing such creative products as faucets and fixtures with unique shapes, concrete counters in favorite colors or patterns and glass-tile and solid-wood countertops. Remodelers in the Northeast are seeing a blend of traditional materials with urban accents creating a modern vernacular. “For one project, we used painted white raised panel doors for kitchen cabinets and mahogany on the flooring as well as the casings for the windows and doors for an elegant look,” said Paul Sullivan, CGR, CAPS of the Sullivan Co., in Newton Heights, Mass. “Also, adjacent to the kitchen we installed mahogany wainscot paneling to encompass the perimeter of the dining room,” said Sullivan. “We then used a random color pattern of glass tiles as the backsplash and accented the cabinet doors with custom hand-blown glass hardware. This use of traditional style cabinetry and mahogany wood in conjunction with modern materials such as glass and stainless steel appliances gave this characteristically traditional kitchen an extraordinarily modern feel.” Home owners are also using limestone, slate and granite in their kitchens. For those seeking a sleek look, stainless steel countertops with built in sinks and runoff boards are being designed to complement stainless steel appliances. Cabinets rising to the ceiling are making a comeback, providing more storage space and a cleaner look, according to Michael Strong, CGR, CAPS of Brothers Strong in Houston. Northwestern home owners like mixing two or three colors in the kitchen, especially on lower and upper cabinets. “Many home owners are going for the 'energized' look where they mix techno-bright and metallic colors with calming earth tones,” said Chuck Russell, CGR, CAPS of Westhill, Inc., in Woodinville, Wash. ‘Hiving’ Is the New Buzz Word In another big remodeling trend, home owners are moving out of the reclusive “cocooning” period following Sept. 11 into a “hiving” phase in which they want their homes to match a more active, on-the-go lifestyle. People want rooms to be useful and to serve more than one purpose. For example, they want a room where mom can do her crafting while dad watches television and the kids play on the computer. “While each family member wants to do their own thing, they still want to be in the same space,” said Russell. Interior glass doors and walls — including glass-paned French doors — are providing a sense of separation while still allowing family members to remain connected. “This allows people to have private spaces but allows for natural light to flow in and people seeing one another,” said Russell. Looking for Financing In another new wrinkle in the remodeling industry, more attention is being given to lining up creative financing options that will enable home owners to finance large projects. “The new financing options facilitate larger projects than ever before and, I believe, will have the most significant impact on the industry in the years ahead,” says Vince Butler, CGR, CAPS, GMB, of Butler Brothers Corp., in Clifton, Va. “It would be wise for all remodelers to look in to partnering with their local financial institutions to stay ahead of the competition.” Will You Be the Next Remodelor™ of the Month?The Remodelor™ of the Month (this link is accessible to Remodelors™ Council members only) award program is underway. Don't miss your opportunity to be named the Remodelor™ of the Month. Calendar For 2005 Remodelor™ of the Year
Click here for a Remodelor™ of the Month application. (This link is accessible to Remodelors™ Council members only.) For more information, contact the Remodelors™ Council, 800-368-5242 x8216. Covenants Prohibiting ‘Prefabricated’ Housing Can Unintentionally Exclude Systems-Built HomesAs more builders and consumers are looking to factory-crafted homes and components for better efficiency and performance, the NAHB Building Systems Councils is working to clear up public confusion about the term “prefabricated.” When used too broadly or erroneously, the term can result in the exclusion of systems-built homes from residential communities. Generically, “prefabricated” can be used to define any type of housing or component that is, in any way, constructed in a factory before it is shipped to the home site. This applies to roof trusses and floor panels, as well as to certain types of housing, including modular, panelized, log and concrete homes. Confusion arises, however, when the term is also applied to manufactured housing, including trailer or “mobile” homes. “Prefabricated” is too general a term to accurately describe the advantages of code-compliant, factory-crafted housing. While the construction of “systems-built” homes does begin in a factory, there is more involved in their production than prefabrication. While they are built with prefabricated components, they are also assembled in a precise system to meet local and state building codes. Structurally, they are at least as strong as homes built entirely on site and they show comparable appreciation in value. Building Systems Councils Advocacy Chairman John Colucci of Westchester Modular Homes says that confusing “prefabricated” and “systems-built” can often lead to unintended consequences. “Many times, in an effort to exclude manufactured homes — or mobile homes — from subdivisions, land developers and real estate lawyers will rely on boilerplate text that bans all ‘prefabricated’ homes. While these restrictive covenants will exclude mobile homes from a community, they also unintentionally bar modular, panelized, concrete and log homes.” Systems-built construction applies to roughly 30% of all new housing being produced, and as it continues to gain in popularity across the country, using “prefabricated” and “systems-built” interchangeably can create problems for developers, builders and home buyers. “Once covenants that prohibit a certain type of housing are drafted and accepted, they are very difficult to overturn,” noted Colucci. The NAHB Building Systems Councils represents the builders, suppliers and producers of modular, panelized, log and concrete homes. For more information about systems-built housing and how to draft covenants that include these types of homes, contact NAHB’s Building Systems Councils at 800-368-5242 x8576. Marketing, Customer Satisfaction, Design to Be Featured at Senior Housing SymposiumPaula Sonkin, who has launched J.D. Power and Associates customer satisfaction surveys for airlines, rental car companies and hotels, and David B. Wolfe, of The Center for Ageless Marketing, an expert on marketing to seniors, will be the featured speakers at Building for Boomers & Beyond: Seniors Housing Symposium 2005 from May 16-18 at the Westfields Marriott in Chantilly, Va. Sonkin will discuss findings from the recent J.D. Power Home Builder Survey pertaining to seniors housing; share J.D. Power methodology used to rate customer satisfaction; and shatter myths associated with developing a customer satisfaction initiative. Wolfe, the author “Ageless Marketing: Strategies for Reaching the Hearts and Minds of the New Customer Majority” and “Serving the Ageless Market,” will discuss how aging boomers are more like their parents at comparable ages than commonly believed, and how companies that understand this will be poised for greater success in the seniors market. Building for Boomers & Beyond is a nationally recognized educational and networking conference on the growing 50+ housing market, presented by the NAHB Seniors Housing Council. New Courses Include Design, How to Get Started More than 600 single-family and multifamily builders and developers, architects, land planners, interior designers and merchandisers, sales and marketing professionals, and others interested in the mature market are expected to attend. In addition to Sonkin and Wolfe, new programs at the symposium will include:
The symposium will also feature more than 20 education sessions covering such topics as amenities, design, multifamily, marketing and sales and the latest research and trends. There will also be a bus tour or several active adult communities in the Washington, D.C. area. NAHB members can register online by March 18 and receive an early-bird discount. For information, contact The NAHB University of Housing at 800-368-5242 x8338, view the Building for Boomers & Beyond brochure or visit www.nahb.org/build4boomers. Take Advantage of National Designation Month — Before It EndsFebruary is National Designation Month and to celebrate the month The NAHB University of Housing is offering more than 140 classes throughout the month. The NAHB University of Housing offers more than a dozen professional designations covering industry basics such as business management and marketing techniques, along with specialized courses including aging-in-place programs, property management and more. Earning a designation allows NAHB members to hone their business skills and convey to their clients that they have superior training, practical experience and in-depth knowledge. Additionally, designation holders can take advantage of valuable networking opportunities throughout their enrollment by working closely with expert instructors and other professionals both within their field and outside their specific areas of expertise. To participate in National Designation Month, visit Designation Month Resources on the NAHB Web site. Report Calls Smart Kitchens a ‘Technology to Watch’Proponents of smart kitchens that use a broadband-equipped home network to connect appliances with cell phones, pagers, office computers, laptops and other remote devices are targeting new home builders who are pre-wiring their kitchens to accommodate the new technology. Smart kitchens are included in “5 Technologies to Watch,” a recent report from the Consumer Electronics Association. “The American kitchen is about to take another step in its evolution,” the report says. “The need for speed control coupled with the desire for old fashioned ‘home cookin’ has led to the invention of several products that could make the kitchen the center of the home.” Referred to as hybrid white goods, the products include refrigerators with cable-ready television screens; refrigerators that can monitor the shelf life of in-box items using barcodes; ovens that can download and execute recipes via the Internet; and ovens that can store and cook food via a cell phone. “The rapid expansion of high-speed home networks and the rollout of smart kitchen appliances looks like a marriage destined for success,” the report says, projecting that the number of homes worldwide with home networks will jump from 35 million at the end of last year to 98 million by 2008. Whirlpool, IBM, Sears and Hewlett-Packard are among the companies that have been leading the effort through participation in the Internet Home Alliance, whose mission is to help build a market for products and services that require a broadband or persistent Internet connection. The companies have been collaborating to resolve basic design issues so that there won’t be conflicts over standards and proprietary software and consumers won’t be confused about which device works with another. A recent survey by the group found that 42% of the nation’s single-family home owners — or 26.1 million households — are interested in new technology in a connected home, the report says. “Our research shows that busy consumers still blame themselves when they cannot provide their families with home-cooked meals,” said Henry Marcy, V, Whirlpool’s vice president for corporate technology and electronics. “Solving the food preparation dilemma would dramatically open up the market possibilities for us, especially since the kitchen is the command center of the home.” While industry’s goal is to connect all kitchen appliances so that they can be accessed by remote devices, there are some kitchen appliances that do not require broadband for basic service, the report says. One of them is Whirlpool’s Polara oven, which keeps raw food at the correct temperature during the day so that it can be cooked after work right away. “Mealtime,” a pilot program of the alliance, has been conducting research among consumers to see how the devices work from both home and remote locations in actual meal preparation and other household chores. Although, like the microwave, the smart kitchen “appears to be a concept that’s right for the time,” the report identifies four major hurdles before it becomes a household staple:
Florida Builders Determined to Continue Fight Against ‘Outrageously High’ School Impact FeeCommunity leaders in Osceola County, Fla., have stepped up criticism of home builders recently in an attempt to pressure them into dropping a court challenge against a controversial school impact fee. The Florida Home Builders Association (FHBA) and the Home Builders Association of Metro Orlando filed a lawsuit against a more than threefold increase in the fee from $2,824 per single-family residence to $9,708, making it the highest school impact fee in the entire state. The fee took effect last May. In a legislative update appearing in the Feb. 8 edition of FHBAction News, Dan Gilmore, president of the state association, said that home builders would not back down from their fight against “the outrageously high and ill-conceived school impact fee in Osceola County regardless of what pressure we might receive from local elected officials and the media.” Gilmore added that the county’s “public relations ploy to convince citizens that home builders are bad people for opposing a substantially increased school impact fee is an embarrassment. Using essential public taxpayer dollars to fund this campaign is even more disgraceful.” The two home builders associations in Florida are attempting to overthrow the fee because it was based on a faulty study, which was conducted by an outside consulting firm commissioned by the school district. “The school impact fee would force home buyers to pay twice for one impact,” said Gilmore. “Inherent in the cost of a new home are road infrastructure expenses to access the home, property taxes paid on that home, sales taxes paid for the material to build the home, fees and taxes to build and buy the home, and ultimately the property tax and mileage fee charged on that home forever more.” The Osceola school levy fails to consider any of those costs, Gilmore said, and it “eliminates all credits for past and future faxes and fees paid, or expected to be paid, by the home owner. Making matters worse, credits for other school revenue sources such as funding for new school construction from the State of Florida were eliminated from the calculations. This is contrary to well-established principles governing the imposition of impact fees by a local government and the primary reason for our legal challenge.” Gilmore also pointed out that less than 50% of the county’s school population is coming from the construction of new housing. The School District of Osceola County has said that while the litigation is ongoing it has been advised by legal counsel to place in escrow the difference of what has been collected between the previous rate and the new rate. From July 1, 2004 through November, $14.3 million in impact fees was collected; so far, $8 million has been placed in escrow. “It is unfortunate that the money that could help provide needed relief from overcrowded classrooms is being tied up because of a lawsuit instead of being spent to build new schools for our students,” said Superintendent Blaine Muse. “Raising the impact fee was a huge step for new growth to pay for itself. By 2006, the district will be even farther behind in building needed classrooms.” New Hampshire Takes Up Regulation and Licensing to Curb Contractor AbuseA high number of complaints against fly-by-night contractors in New Hampshire has spurred calls for regulation and conctractor licensing requirements in the “Live Free or Die” state, and the state Legislature has responded by introducing several bills this session. According to the Consumer Protection & Antitrust Bureau of New Hampshire, 313 complaints were lodged against contractors and remodelers in 2004 — the number one grievance lodged by consumers last year. In response, the legislature has introduced four bills relating to home contractors — one in the Senate and three in the House. All four bills have received at least partial support from members from both parties, the New Hampshire Attorney General, the Home Builders and Remodelers Association of New Hampshire (HBRANH), the New Hampshire Building Officials Association and a former legislative clerk, Leo Callahan of Dover, who has collected the names of 30 disgruntled home owners ready to testify in favor of a license requirement. ‘Study Bill’ Looks at the Feasibility of Licensing New Hampshire House Bill 177 — also known as the “Study Bill” — sets forth requirements for home improvement contracts exceeding $5,000. This bill would establish a committee to study the feasibility of licensing residential building and remodeling contractors.
If the House passes the Study Bill, a committee will also look at the feasibility of creating a reimbursement fund for bilked consumers that several states, including Massachusetts, already have. The committee is expected to report on the bill on Nov. 1. If approved, the law is not expected go into effect until 2006. More Contractors and Inspectors Support Licensing Requirements Support for some type of license requirement has increased among home improvement contractors and building inspectors, but some have said it could take time to convince those who believe regulation "is not the New Hampshire way." "We are adamant that any licensing program include educational, continuing education and testing requirements," Buck added. "We would hope to pattern this around the NAHB designation curriculum.” Another House bill (its number is not yet available) outlines requirements that dissatisfied consumers must follow before they can file a lawsuit for defective construction against the contractor. The bill requires home owners to notify builders of alleged construction defects prior to filing lawsuits. It would also require a timeframe to give builders an opportunity to address defect concerns. Most importantly for consumers, the bill preserves the right for home owners to sue if they are not satisfied. "Consumer protection laws are aimed at the less than qualified and scrupulous individuals and companies in our industry. Unfortunately, you cannot legislate against crooks or stupidity,” Buck said. Accommodative Zoning Helps Developer Build Affordable Homes in Newport NewsSeventy-six families in Newport News, Va., have been able to purchase their first homes, thanks to a collaborative effort between the city and a local developer. The project, Hilton Heights, is one of six winners of NAHB’s Innovations in Workforce Housing Awards, which were announced last month during the International Builders’ Show in Orlando, Fla. Hilton Heights is a neighborhood of 99 homes near historic Hilton Village in Newport News. The project was the work of the Franciscus Company, a builder/developer in the Hampton Roads area. Of the 99 homes, 76 were sold to first-time home buyers, most from Newport News and the adjacent city of Hampton. The buyers represent a cross section of the area’s workforce, including nurses, school teachers, firefighters, police officers, public utility employees and workers from the local shipyards. The development was made possible, in part, by the City of Newport News, which allowed the site’s existing zoning for duplexes and townhouses to be changed to small-lot, single-family detached homes. Monarch Bank provided the acquisition and construction financing and looked beyond the below-market appraisals that initially threatened the project’s feasibility. “Hilton Heights is a showplace community in a neighborhood that is being turned around by concerned home owners,” said Gary Werner, a vice president of the Franciscus Company, who accepted the award. “This collaboration between the City of Newport News and the Franciscus Company is an example of the type of partnering that will have to occur if we are going to meet the housing needs of the nation’s workforce.” The development’s Craftsman-style homes feature “rocking chair-deep” front porches and striking color schemes. The homes range from two bedrooms and 1,192 square feet to three bedrooms and 1,665 square feet. Initial consumer response to the neighborhood was lukewarm, but once the first phases of construction were completed and visitors could see a finished streetscape, sales increased sharply. “These awards were designed to bring recognition to those builders, developers, architects and organizations that are bringing creativity to the effort to meet the demand for workforce housing,’ said Bobby Rayburn, immediate past president of NAHB. “I am excited to see that builders and developers are finding unique and innovative ways to address the inadequate supply of housing that is affordable to working families.” For more information about workforce housing and these awards, including eligibility requirements, click here; or e-mail Kym Kilbourne, or call her at 800-368-5242 x8447. Award photo by Oscar Einzig Photographers Proposed Budget Would Cut Job Corps Funding, Move Youthbuild to Labor DepartmentReleased on Feb. 7, the President’s $2.5 trillion budget contains mixed news for a host of employment and training programs designed to address the nation’s workforce needs. Although it has received wide bipartisan support from Congress and the Administration, Job Corps — which comes under the Department of Labor's Employment and Training Administration — was not spared from the widespread domestic spending cuts proposed in the budget for fiscal 2006. Its funding would be cut by $29.3 million to $1.517 billion, compared to a $10 million increase for the current fiscal year. Home Builders Institute (HBI), the workforce development arm of NAHB, is the largest training contractor in Job Corps. More than 2,000 young people — about 92% of those who graduate from the HBI program — are placed in jobs in the industry each year. This year marks Job Corps’ 40th anniversary and is the 31st year since the department awarded HBI its first contract to train its students in the skilled trades. Also under the Employment and Training Administration (ETA) is the Responsible Reintegration of Young Offenders program, which would be rolled into the Prisoner Reentry Initiative for adults. The program taps community- and faith-based organizations to provide services such as job training and mentoring to reduce recidivism among ex-offenders. ETA would receive only $35 million for the combined programs. The Young Offenders program alone is funded at nearly $50 million in the FY 2005 budget. The new structure, combined with the sharp budget cut for the coming fiscal year, has raised another concern: HBI’s Project CRAFT/Nashville is funded through Young Offenders. The President’s 2006 budget proposal would provide $250 million in funding for the Community College Initiative. The program’s Community-Based Job Training Grants “prepare workers in high demand occupations” through strategic partnerships among community colleges, industry and the workforce system. HBI received a grant in 2004 to partner with community colleges to develop a skilled trades workforce, laying the groundwork for this initiative in the residential construction area. The budget proposal consolidates four Department of Labor programs under the $3.9 billion Workforce Investment Act (WIA) Plus funding stream that will be disbursed through state formula grants. Consolidated under WIA Plus are Adult, Dislocated Worker and Youth activities, as well as the Employment Service, Labor Market Information and the administration of the Work Opportunity and Welfare to Work tax credit programs. Legislation will be proposed to make these structural changes. Similar WIA legislation will be proposed to transfer the Youthbuild program from the Department of Housing and Urban Development to the Labor Department. This recommendation was first made by the White House Task Force on Disadvantaged Youth as a way to facilitate coordination between Youthbuild and other youth employment and training programs such as Job Corps. In 2004, HBI received its first national grant to give technical assistance to Youthbuild’s local programs. The Administration has requested $58.9 million to fund Youthbuild at the Department of Labor in fiscal 2005. The Department of Education would also undergo some changes. The Administration’s budget would terminate 48 “ineffective” programs and would redirect these funds, some $4.7 billion, to Individuals with Disabilities Education Act (IDEA) programs; improving teacher quality; and the new High School Intervention Initiative, which would take the No Child Left Behind Act to the high school level. The High School Intervention Initiative would provide $1.2 billion to the states to help improve student academic achievement and graduation rates through an intervention strategy of their choosing — including vocational education, mentoring and partnerships between high schools and community colleges. This proposal would consolidate programs such as Vocational Education, Upward Bound, Gear Up, Smaller Learning Communities and others that are not considered effective in improving student outcomes. 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. Freddie Mac and NAHB Student Chapter Job Site Events Focus on Housing for Working FamiliesIn the first stop on a five-city “Day at the Job Site” tour being sponsored by Freddie Mac, 40 NAHB Student Chapter members from three high schools in Colonial Heights, Va., last week worked with participants from the Home Builders Association of Southside Virginia on the construction of an affordably priced home for their community. The students worked on a 1,300-square-foot house that is being built over a two-year period in conjunction with the Colonial Heights Building Trades Foundation. Once completed, it will be sold and the proceeds will be used to start building another house and to provide scholarships for students pursuing careers in the construction industry. The foundation, which was established by the Colonial Heights High School, has built eight homes to date. “As student members of NAHB, you are part of a powerful organization that has the drive to help America’s citizens, and we are very pleased to partner with you on this endeavor,” said Becky Froass, manager of industry relations for Freddie Mac. During the Feb. 7 event, students and instructors set trusses, raised walls and competed in nail driving contests for an electric drill set, tool belts, measuring tapes and ball caps. All of the participants in the day’s activities were outfitted with hard hats, protective eyewear and T-shirts. "Events such as these are a wonderful opportunity for our members to work with tomorrow's home builders." said Deborah Tomlin, NAHB Student Chapter chairperson for the Southside builders and associate vice president of the HBA of Virginia. "We have a strong local association that believes in giving back to our community,” she said, “and I'm sure that the students will remember this event for a lifetime." This spring, Freddie Mac and NAHB Student Chapters will take “A Day at the Job Site” to high schools and HBAs in Pittsburgh and Columbus, Ga. Two additional events are tentatively scheduled for the fall. For more information on “A Day at the Job Site” or the NAHB Student Chapters program, e-mail Joe Krinock at the Home Builders Institute, or call him at 800-795-7955, x8928. 30-Year Warranty Offered on EIFS Residential SystemsDryvit has developed an exclusive 30-year warranty for builders who use its two residential Exterior Insulation and Finish Systems (EIFS), the manufacturer announced at last month’s International Builders’ Show in Orlando, Fla. Headquartered in West Warwick, R.I., Dryvit is a member of the National Council of the Housing Industry — the Supplier 100 of NAHB. “We were the first to bring EIFS to the U.S. market, and now we’re the first to bring an EIFS warranty product of this significance to the residential market,” said Tony Stall, the company’s vice president of marketing. The two systems covered by the warranty are:
The 30-year warranty applies to the construction of one- and two-family homes. To be eligible, builders must be an NAHB member; possess applicable state and local licenses; conform to all applicable state general liability coverage requirements; attend a Dryvit EIFS program for home builders; and possess a current Dryvit Residentail MF or Spring MD listing. The EIFS installer must possess a current Dryvit listing and a current AWCI EIFSmart certificate. For more information, click here, or call 800-556-7752. 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.Dip in the RoadI was inspecting a utility crossing the other day (several conduits in a 4-foot deep by 3-foot wide trench, crossing a road). A good old boy, Amos, was operating the excavator and had the trench just about completely backfilled when I walked up. I noted a backhoe-mounted vibratory plate compactor sitting idly nearby. “Amos,” I hailed him. “Got a minute?” “Sure boss,” he said around the spit-soaked butt of a Swisher Sweet. “Where’s your compactor operator?” I asked. “You should be compacting as you backfill.” “Oh, I’ll compact it,” he assured me. “See, in this outfit, we do our compacting at the very end. I just mound up a little extra, then we hammer it down flat with the plate.” “Amos, we’ve got a problem,” I said. “The specs require backfilling and compacting in 12-inch maximum lifts. You’re doing 36-inch lifts. There is no way the dirt in the bottom of that trench will ever even feel your compactor. This crossing is going to be a dip in the road in a few months.” Amos spitted and testily shifted the cigar butt across his lips. “Now, look here bossman,” he grumbled. “I been pullin’ levers for 50 years, an’ I always do my compactin’ this a-way. Ain’t never had no problem yet.” Those words, “I’ve been doing it this way for blah-blah-blah years are every engineer’s fingernails across the chalkboard. When I hear them it brings to mind a favorite Uncle Remus story. [“The Complete Tales of Uncle Remus”, Joel Chandler Harris, Houghton Mifflin, 1983]. My condensed (and slightly modified) version follows: One day Brer Fox and Brer Rabbit were ambling down the big road and happened to notice some geese sleeping by the mill pond.The geese all had their heads tucked neatly under a wing, as is their habit. “Hey’o, Brer Rabbit,” says Brer Fox. “How come geese allers sleep with their heads off?” Brer Rabbit smiled privately and replied, “That’s simple Brer Fox. They been doin’ it that-a-way fer fifty years er better. See, ev’y time they settle down fer t’ sleep, Mrs. Goose, she takes off Mr. Goose’s head, an’ then Mr. Goose takes off Mrs. Goose’s head, then they tuck ‘em real neat-like unner their wing fer safe keepin’.” Brer Fox fetched a grin, and down the road they continued, passing the time of day just like old friends. When he got home, Brer Fox said to Mrs. Fox, “Woman, tonight when we lay down ter sleep, I want you to take off my head so I can tuck it real neat-like unner my paw – jes like the geese down at the mill pon’.” Mrs. Fox looked at her husband in astonishment and protested his outlandish request. But he would hear nothing of it. “They been doin’ it that-a-way fer fifty years,” he insisted. So when bedtime rolled around, Mrs. Fox went to the wood shed, fetched the axe and did as her husband had asked. Of course in the morning, she was most distraught when she could not figure out how to hook the head back on. Brer Rabbit, who had been spying through a window, got quite a laugh out of the whole affair. So, now you know why so many trench crossings are dips in the road. It’s because Amos’ crew was on the job, and they’ve been doing it that-a-way for 50 years. Tim Garrison of ConstructionCalc.com, is a professional engineer, author and software producer for the building industry. Send e-mail to 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.
HomeAid and ‘Extreme Makeover’ Build Transitional Shelter for Two Denver FamiliesViewer’s of ABC’s “Extreme Makeover: Home Edition” on Sunday saw two deserving homeless families in Denver receive transitional shelter that was built by HomeAid and Standard Pacific Homes. The ranch-style duplex was built in seven days with the help of more than 60 subcontractors and suppliers, who provided hundreds of thousands of dollars worth of time, materials and labor for the project. This was the third time that HomeAid participated in the popular television program, but the first shelter for the show. Established by the Orange County Chapter of the Building Industry Association of Southern California, HomeAid is a non-profit organization that builds shelters for the temporarily homeless across the country. “This is a tremendous feat for HomeAid and for the people of the Denver area,” said Genette Eaton, the organization’s chief executive officer. Two local non-profit agencies — Jeffco Action Center and the Denver Rescue Mission — helped to find the families in need of shelter. The families were nominated by Connie Zimmerman, founder and executive director of Colorado Homeless Families (CHF), who did not have space for them but wanted to help. After extensive interviews, the Correa and Medeiros families were chosen to move into the duplex. The Correas were displaced from their apartment when husband Frankie lost his job at a box and packaging company following the September 11 attacks. He provided the only income for his stay-at-home wife and their four children. After they spent all of their savings living in a motel, they moved into an emergency homeless shelter. Frankie was finally able to land a job as a day laborer, but he still didn’t make enough to rent a one-bedroom apartment for six people or feed his family. Dusty Medeiros, a working single mom with two children, was no longer able to afford her apartment after she broke up with her live-in boyfriend and was unable to receive financial help from her parents. She bounced around from friend to friend, with no permanent place for her family to live. “The homeless shelter is a project we’ve wanted to do for a long time,” said Tom Forman, executive producer of the television program. “It’s shocking how easily your life can be turned upside down when you get sick or get fired.” “These families were struggling with the same difficult circumstances that affect many Americans,” said Forman. “They’d been doing just fine. They weren’t using drugs. They weren’t spending foolishly. They did all the right things and still ended up homeless. It was sad and scary, and we will help in any way we can.” The two families will live in their new homes for two years under the CHF program. The “Extreme Makeover: Home Edition” team also built a basketball court, park and children’s play area adjacent to CHF’s other 26 housing units. For more information on HomeAid, click here, or call 714-662-6822. Get GM Discount Pricing on More Than 80 GM Vehicles
GM is offering preferred supplier discount pricing on more than 80 General Motors vehicles, including Chevrolet, Pontiac, Buick, GMC, Oldsmobile, Cadillac, Saturn, HUMMER (except H1) and Saab passenger cars, light duty trucks, vans and SUVs as part of NAHB’s Member Advantage discount program. Through the program: For complete details, go to www.gmfleet.com/nahb. The GM Preferred Supplier Pricing program runs through Jan. 3, 2006. Other Member Advantage Discounts For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to http://memberadvantage.nahb.org. Or visit www.nahb.org to explore the full range of benefits associated with membership in your local, state and national home builders associations.
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. Subscribe Your Employees to NBN Online and a Digital Camera Could Be YoursNAHB members, sign up three or more employees to receive Nation's Building News Online in the "Make Your Business Click" contest and you'll be automatically entered for a chance to win a FREE Sony Cyber-shot® Digital Camera. See official contest rules for more details. All active NAHB members, HBA staff and executive officers are eligible. Watch for a New Look for Nation's Building News Coming this March, Nation's Building News will have a new look. The new NBN will have even more of the information you need — like the latest lumber prices, interest rates, industry news and information that will help your business — in an even easier-to-read format.
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. |