Print-All Page: March 7, 2005

As the legislative reform of the nation’s government-sponsored enterprises (GSEs) — Fannie Mae, Freddie Mac and the Federal Home Loan Banks — moves forward on Capitol Hill, NAHB and the National Association of Realtors® (NAR) last week issued a joint statement of principles in support of stronger regulation that will boost confidence in the nation’s housing finance system.

The two groups sounded their opposition to “efforts to privatize, withdraw federal support, reduce the capacity or in any other way diminish the ability of the GSEs to provide low-cost housing finance.” The statement was distributed to members of Congress.

“Fannie Mae, Freddie Mac and the Federal Home Loan Banks are the nation’s largest source of capital for home mortgages, so obviously the housing community has a huge stake in the outcome as lawmakers consider new GSE reform measures,” said NAHB President David Wilson.

“NAHB and NAR are committed to working with Congress to enact a meaningful regulatory framework for the GSEs that ensures their continued financial safety and soundness,” said Wilson . “At the same time, we want to make sure that Fannie Mae, Freddie Mac and the Federal Home Loan Banks continue to fulfill their congressional mandate of providing low-cost and readily available housing credit that is so essential to today’s housing market.”

“NAR supports credible and vigorous regulation of the GSEs,” said NAR President Al Mansell. “However, we also believe that any changes to the current regulatory structure must be consistent with our national policies supporting homeownership and housing opportunities for all. Our two organizations are united in our commitment to seeing the GSEs continue to help millions of American families achieve their dreams of homeownership in good times as well as bad, when other market players have left the field.”

Mansell said that NAR will closely monitor efforts to reform GSE regulation and will work to protect the mission that both Fannie Mae and Freddie Mac play in making housing more affordable.

As the legislative debate continues in the coming weeks and months, the two groups said they will be reaching out to lawmakers on both sides of the political aisle to achieve a regulatory framework for the GSEs that is credible and effective and preserves their vital housing mission.

For further information, e-mail Michael Strauss at NAHB or call him at 800-368-5242 x8252; or contact Linda Johnson at NAR, 202-383-7536.

Floor Plans for Living Big in Narrow Spaces

Full-sized Living on a Narrow Lot: Neatly wrapped in a home designed for traditional neighborhoods and empty nesters

Indoor Conveniences: The Farmington has more than enough flexible space to go around ― a full 3,137 square feet of living space in a home just 38 feet wide — a first floor master suite with a deluxe master bath and split closets, two-story formal foyer, 10-foot ceilings and an open floor plan with overlapping spaces.

Outside Charm: A formal entry and stoop, multi-piece cornices, brick banding, shutters, molded brick sills and a rear- or alley-loaded two-car garage carry tradition into the 21st century.

Cozy Retreats: The Farmington’s front and side covered porches are just right for kicking back and chatting with neighbors, and bring home all the charm and easy living of an earlier time.

Features & Specs

Width: 38 feet
Depth: 67 feet, 6 inches
Total Square Footage: 3,137 square feet
Narrow Lot Design for Traditional Neighborhoods
Traditional Exterior Architectural Detailing
Formal Front Entry Features and Stoops
Covered Front and Side Porches
Open Floor Plan with Defined Rooms and Overlapping Spaces
First Floor Master Suite with Deluxe Master Bath and Split Closets
Two Story, Formal Foyer
10-foot + Ceilings (stepped and tray)
Upper Level, Open Loft Space
Rear/Alley Load, Attached Two-Car Garage

— Mitchell & Best Homes (www.mitchellbesthomes.com)

Ohio Latest State to Pass Notice and Opportunity to Repair Law

Ohio Gov. Bob Taft has recently signed into law notice and opportunity to repair legislation that enables home owners and home builders to settle construction defect disputes without engaging in costly and time-consuming litigation.

Ohio joins neighboring states — including Indiana, Kentucky, Michigan and West Virginia — in adopting notice and opportunity to repair, or “right to cure,” laws. Over the last three years, 21 states have enacted right to repair laws, and 24 states now have them on the books.

“Notice and opportunity to repair laws provide a common-sense approach to dealing with construction defect problems,” said NAHB President David Wilson. “It’s an approach that has received widespread support across the country.”

The new Ohio law, which was signed by the governor on Feb. 22, requires home owners to provide written notice to builders 60 days before filing a lawsuit alleging that there is a construction defect in a newly constructed or renovated home.

Contractors would then have 21 days to propose to inspect the alleged defects, offer to settle the claim by payment or dispute the claim. Notice and right to cure preserves the home owner’s right to sue if they are not satisfied with the builder’s settlement offer.

“Notice and right to cure is a common-sense approach to resolving legitimate consumer complaints and addressing construction defect concerns in a way that can help both the home owner and the builder avoid expensive court battles,” said Bill Fannin Jr., president of the Ohio Home Builders Association (OHBA). “It will help bring stability to the general liability insurance market plaguing the residential construction industry as a result of the increasing number of construction defect lawsuits.”

For more information, NAHB members can click here; or e-mail Blake Smith at NAHB, or call him at 800-368-5242 x8583.

NAHB Is Your Business Partner

If 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.

Bill Would Extend Terrorism Insurance Provisions

Legislation introduced on Feb. 18 by Sens. Christopher Dodd (D-Conn.) and Robert Bennett (R-Utah) — the “Terrorism Risk Insurance Act (TRIA) of 2005”, S. 467 — would extend through the end of 2007 provisions of terrorism legislation that was passed in 2002.

The legislation “would help to ensure the continued availability of affordable insurance coverage and provide stability to the nation’s commercial and multifamily real estate markets,” said NAHB President David Wilson. “It would also help to boost economic security and shore up the terrorism insurance marketplace.”

Without an extension, the insurance provisions will expire at the end of this year.

“This law is working as it was intended: to provide some measure of insurance for American jobs and American companies against the risk of terrorism,” said Sen. Dodd upon the introduction of the bill. “It needs and deserves to be extended. The extension of TRIA is of critical importance, particularly while long-term solutions to protect against future terrorist attacks are being developed.”

For more information, e-mail Greg Brown at NAHB, or call him at 800-368-5242 x8421.

House Passes Bill to Improve Job Training

Legislation approved by the House last week would strengthen and improve the nation’s primary job-training program, according to NAHB.

“Passage of H.R. 27, the ‘Job Training Improvement Act of 2005,’ would reauthorize the Workforce Investment Act (WIA), which is key to our industry’s efforts to provide young workers with the training and support they need to begin careers in our high-growth industry,” said NAHB President David Wilson.

The WIA provides vocational training for about 200,000 people annually. The legislation, which cleared the House on a 224-200 vote, builds upon reforms made in the WIA that were implemented in 1998.

Sponsored by Rep. Howard “Buck” McKeon (R-Calif.), the measure would consolidate scores of programs into a single $3 billion block grant that would reduce unnecessary rules and regulations, increase flexibility and reduce administrative costs, fund partnerships between community colleges and employers in high-demand industries and provide states and localities greater discretion over how to disburse the funds.

“Residential construction, which continually faces a shortage of skilled workers, is expected to need to fill over one million new jobs in the next decade,” said Wilson. “NAHB believes that the federal government’s investment in WIA, and the opportunities it provides for private sector interests like the Home Builders Institute, NAHB's workforce development arm, to partner through such programs as Jobs Corps, helps train our nation’s workforce while addressing the needs of job seekers and employers.”

The House and Senate passed similar job-training measures in the 108^th Congress, but were unable to reconcile their differences.

To read the House-passed bill, click here and enter H.R. 27 in the box at the upper left. For more information, e-mail Jenna Morgan Hamilton at NAHB, or call her at 800-368-5242 x8407.

Manage Your Time, Make More Money

Mainlining coffee and enduring 80-hour work weeks go hand-in-hand with owning a home building or remodeling business, right?

“The harder you’re working, the more questions I have for you because it’s supposed to be easy if you’re doing it right,” said Bob Whitten, vice president of SMA Consulting. During an educational session at the 2005 International Builders' Show, Whitten gave builders, remodelers and other housing industry professionals practical solutions for harnessing their time.

To work smarter and more profitably, Whitten suggested that you do the following:

Whether you operate your business from your home or have an outside office, you need to separate your professional life from your personal life. The key is planning.

Begin by thinking about what you want from your business and writing down your goals. To accomplish those goals, write a business plan (see the note below about the PRO Builder Business Plan Guide) and a mission statement.

“As a business owner, if you don’t make the distinction between your business and personal goals, you’ll be stuck in entrepreneur-land forever. And most of us don’t want to be there,” Whitten said.

You have an estimate to complete, a floor plan to review, a pre-construction meeting with a customer that starts in two hours and a supplier you’re going to discuss co-branding with later that day. But…

One of your project managers calls from a job site with a question about a schedule change. Then a customer calls about wanting to move a wall. Your customer service manager stops by to talk about warranty service tickets that are still open. Your office manager hands you materials from someone who wants to sell your company a new health insurance policy.

Not surprisingly, that great idea you had for creating a new marketing brochure evaporates as you pour your third cup of coffee.

To prioritize what’s on your plate, assign tasks, requests, questions, ideas and everything else competing for your time to one of these four to-do lists:

It’s natural for contractors to devote much of their time to those items that are important and urgent. But Whitten said don’t. To accomplish your professional and personal goals, he stressed ― concentrate on the items that are “important and not urgent.” “Then you won’t be in crisis mode all the time,” Whitten observed. “This is the key to getting more things done.”

Conquer Communications

About 10% of phone calls, e-mails, faxes and other communications are important. The rest you should delegate.

“You have the potential to create $1,000 more in revenue for your company for each hour you work,” Whitten said, which is much more preferable than being interrupted by phone calls, meetings and other requests for your time that someone else can handle.

Ix-Nay on Handing Out Your Cell Phone Number

To reduce your incoming calls, don’t print your cell phone number on your business card. Then, instruct customers, vendors and others to call your office number. Be sure to have your staff contact you on your cell phone if something is urgent.

But if someone asks your staff for your cell phone number, tell your staff to ask for your permission first before giving out the number. Not everyone has to have your cell number.

Prevent snail mail (and faxes) from piling up by acting on it, filing it or trashing it. If you’re unsure about what to do — throw it out.

If you get a letter in the mail from a lawyer, don’t open it. Send it to your attorney. “That’s what you pay him for,” Whitten said. “Besides, if you open it, you’ll just ruin your day.”

Delegate as Much as Possible

One of the great things about delegating is that it allows you to multiply your productivity ― without having to work more. You can build 600 houses with a dedicated team of employees much more easily than you can build two houses by yourself.

“When you delegate you have more people working on your goals,” Whitten said.

Delegating authority allows you to hand off tasks or projects to others but retain your responsibility. A good way to do that is:

“If you keep your team in a little box and tell them how to do things, they don’t grow,” Whitten said. “Give them a challenge, and they’ll become better and smarter.”

“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.

Learn More About the NAHB University of Housing

The NAHB University of Housing invites you to invest in your professional growth and the success of your business by earning a designation, attending an event or simply taking a course or two. Click here to find out how you can reach higher and work smarter.

Subscribe Your Employees to Nation’s Building News — and Earn a Chance to Win Digital Camera

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.

Subscribe your employees to Nation’s Building News Online. It’s free, easy and NAHB members who sign up three or more employees will be entered into the "Make Your Business Click" contest to win a digital camera. To learn more or sign up your employees, click here.

Builders' Tip: Fitting Stair Treads

Cobbled together out of scrap plywood, the jig shown in the drawing makes it easy to fit stair treads between a pair of walls or skirtboards.

[Click for larger image]

First Seniors 20 Club Explores Issues of Growing 50+ Market

Land costs, universal design, and marketing techniques for the 50+ housing market topped the agenda at the first 50+ Seniors Housing 20 Club meeting at the National Housing Center, Feb.17-18. Fourteen builders from non-competing markets gathered to share their knowledge and experiences.

“Regardless of how big you are, your company is only as good as the brain trust of your internal staff,” said Chuck Covell, president of Bozzuto Homes in Greenbelt, Md. “With the collaborative process of the 50+ Seniors Housing 20 Club, you can increase your knowledge base, understand how your peers operate and take that information back to your own company to implement new ideas and best practices.”

The 20 Clubs program was started 10 years ago to give builders face time with an untapped resource of the association ― other builders. The clubs are limited to 20 members each, with the members coming from non-competing markets across the country.

Members of the seniors 20 club include small-, medium- and large-volume builders who specialize in active-adult, multigenerational, single-family detached and age-qualified rental homes. They will meet several times a year to discuss the issues surrounding the seniors housing market, tap into the expertise of NAHB’s Seniors Housing Council staff and share ways to grow their businesses.

“The 50+ Seniors Housing 20 Club helps make your business more successful and helps you provide your customers with a unique product,” said Charlie Derik, senior design and development engineer for Lutron, a lighting control company based in Coopersburg, Pa., and a sponsor of the NAHB 20 Clubs program.

The formation of the 50+ Seniors Housing 20 Club is especially timely to its members, who currently are grappling with the issues of accommodating the varying needs of baby boomers as they begin to move into age-qualified housing. Active-adult housing currently represents one of the fastest-growing segments of the industry, and the over-50 market is estimated to hit 100 million by the year 2010.

There are now 48 clubs operating, with each focusing on a particular segment of the home building industry, such as custom home building, production building, small volume building, land development, seniors housing, urban infill, marketing, remodeling and more.

Do you want to learn more about the fastest-growing segment of the housing market? Attend Building for Boomers & Beyond: Seniors Housing Symposium 2005 on May 16-18 in the Washington, D.C. area. The seniors housing symposium is the premier educational and networking event for industry professionals who serve the burgeoning 50+ market. For more information, click here.

To learn more about seniors housing, join the NAHB Seniors Housing Council. The council provides information, education, networking and recognition opportunities for its members and represents NAHB on seniors housing issues. For more details, e-mail Jeff Jenkins or call him at 800-368-5242 x8292.

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Tenants 'Best Buyers' in Condo Conversions

Builders who hope to capitalize on today’s strong demand for condominiums can convert existing multifamily rental properties at a fairly low risk, provided they have a good understanding of their market and know how to sell the units, according to panelists leading an educational session at January’s International Builders’ Show in Orlando, Fla.

Of top importance in the conversion process, “we do whatever we can to make a tenant a home owner,” said David Jacobson, senior vice president of Regis Homes in Irvine, Calif., which has completed 8,000 condo unit conversions. “They’re your best buyers. You have to do something to ‘incentivize’ them,” and “if it’s inconvenient for construction, too bad.”

Not a proponent of conversion programs that are oriented to emptying out the building, Jacobson’s company typically announces its plans at a tenant party, starting with the assurance that nothing is changing in the leases. Residents are provided with model and pricing information and a “renting vs. buying” analysis that is good collateral advertising.

Tenants usually are given an exclusive 90-day right to buy their unit and a discount if they decide to buy quickly, within 10-15 days or so.

“There are some people who have personal problems precluding them from being buyers, and we assist them in finding another community, or sometimes align them with a non-owner buyer,” said Jacobson. “Our goal is to create happy home owners.”

The initial prices on the condos are the most affordable, he said. “We do have price increases that lock in earlier buyers but we don’t want to slow down sales momentum.” Promotion of the project to the public starts a month or so after the tenants are notified.

Advertising is pitched to the demographics and lifestyles of “the people we think should be living in our communities,” he said. To tap into California’s growing Asian market, that should include advertising in Korean, Chinese, Japanese and Vietnamese.

Exciting sales offices are a must, and most existing leasing offices “are in the right place,” he said.

New paint jobs or design overhauls, necessary repairs and new landscaping are standard in the conversion process, and six to eight consultants who are specialists in these and other areas work on each project.

Conversion is a low-risk proposition, Jacobson said, because “you know your costs pretty well,” and “if you have a cyclical plunge, at least you have the rental income. It can still be an occupied community unless you take the ‘everybody out of the pool’ approach.”

In today’s market, “it’s not your father’s condo conversion,” said Marta Borsanyi, principal and managing director of The Concord Group in Newport Beach, Calif., which provides advisory services to financial entities, builders and developers and cities. Condos were primarily a relatively inexpensive opportunity to own a home up through the early 1990s, but now increasingly represent lifestyle changes for the buyer.

Condo conversions need to be based on a thorough, in-depth analysis of the market, including such considerations as the position of condos compared to new production or single-family homes; comparative site evaluations; market timing; and demographic analysis that takes into consideration unique characteristics in the populations of specific cities and sub-markets.

Identifying “the type of people who may be your buyers” is essential, she says, along with an assessment of their wants and needs.

As for prime locations, “clients are buying in newly developing centers of town, areas where the city wants ownership units,” Borsanyi said. The first suburban ring is also a good area. No more than 10% of the residents in converted condominiums have children, so proximity to schools is not as important as access to retail and hospitals.

“Timing is extremely important,” she said. “Bring the property on market when the demand is there.” But because housing is a basic necessity, there will always be some demand. “The difference between the peak and the bottom of the market is really made up of discretionary purchases,” she said.

“Marketing Multifamily Housing,” available through BuilderBooks.com, teaches you how to successfully market multifamily developments, get referrals and boost profits from satisfied renters. Learn unique techniques to market to renters. To view or purchase this publication online click here, or call 800-223-2665.

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Speaking Spanish Will Make a Difference to Your Bottom Line

“If I had only known a few key phrases or words in Spanish, I could have avoided the extra expense and time my crew spent stripping, sanding and reapplying stain and varnish to the banister and railing of one of my custom homes.”

“I wonder what would have happened if I just had asked Juan if he needed help moving that load of plywood, whether such help would have prevented him from ‘blowing out’ his back and having surgery. He ultimately lost his job because he could no longer lift and I not only lost a good worker, my workers comp premiums went up ― way up.”

These are just two examples of the regrets that contractors and employers have expressed to me during my 20 years working in the insurance and risk management industries. Most of them have told me that they relied upon a couple of their bilingual workers to communicate with the other members of their Spanish-speaking staff.

Why a contractor would place the entire outcome of a project ― or the safety of his crew — solely in the hands of a few bilingual workers is something I can never understand. Even those bilingual workers, as conscientious and dedicated as they may be, cannot be in all places at all times.

Commit to Learning Key Phrases ― You’ll Improve Workforce Relationships

In many of the trades, Hispanic workers represent 80%-90% of the workforce. Committing yourself to speaking Spanish — even if you only learn key phrases and leave the general discussions to your bilingual staff — not only increases job efficiency, safety and loyalty, it improves workforce relationships.

This commitment doesn’t mean you have to move to Mexico and take a six-month crash course in Spanish. And you don’t have to buy Spanish phrase books, dictionaries, CDs, tapes and other such learning aids. Anyone who works at a construction site can pick up a few important, but simple, Spanish phrases.

If you do, you can avoid many of the mishaps, accidents and incorrect work that often result from a lack of communication.

Some Phrases to Get You Started

Let me help get you started by offering a few brief, simple phrases that will make a significant difference at your job site:

If you intend to employ a cost-effective workforce, take the time and make the commitment to bridge the language barrier. Learning and speaking just a few simple phrases will help you improve your company culture — and increase your bottom line.

Deby Jones is the founder and sales director of 2nd Language Success based in Sandy, Utah. Her company offers Spanish In-A-Pinch, Inglés En-Un-Rato and other language aids and products. Jones has teamed with NAHB and local home builders associations and private business to train people to speak Spanish in a pinch. For more information, visit the 2nd Language Success Web site.

‘Jobsite Phrasebook, English-Spanish’ Available at BuilderBooks.com

“Jobsite Phrasebook, English-Spanish,” available through BuilderBooks.com, offers Spanish translations and pronunciations for common job site phrases in the construction fields: insulation, concrete, framing, drywall and roofing. To view or purchase this publication online, click here, or call 800-223-2665.

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.

The program groups local councils from different states into designated months. There will be two “wild card” months that will allow the council’s members-at-large to participate in the program. A winner will be chosen each month and that winner will then be automatically included in the nominations for the Remodelor™ of the Year award.

This is a great opportunity for local councils and members to get involved and submit their “best of the best” members to compete with other councils. The national Remodelors™ Council will send out press releases and highlight each winner in ReNews, the Remodelors™ Council e-newsletter.

Subscribe Your Employees to Nation’s Building News — Earn a Chance to Win Digital Camera

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.

Countrywide New Sponsor of NAHB University of Housing

“The generosity of Countrywide will help support The NAHB University of Housing’s countless educational offerings, as well as development of new education products,” said 2004 NAHB President Bobby Rayburn. “The NAHB University of Housing’s mission is to help our members reach higher and work smarter. And Countrywide, with its sponsorship, fully supports that mission.”

Countrywide will be promoting the sponsorship as a means to reach more people within the building industry. “It’s all about knowledge,” said Jack Haynes, executive vice president of Countrywide’s National Builder Division. “That’s why it’s so important to me every time I pick something for Countrywide to be involved in. (I make sure) that it has something to do with giving back to the organization in the form of knowledge and information.”

The sponsorship will help the University of Housing promote further outreach to new members and let them know about the classes, designations and conferences available. It will also give NAHB the opportunity to build on the strong foundation of programs offered by the University of Housing and to develop them further.

Countrywide, a leader in home loan products and services for builders, began its association with NAHB with a commitment to the National Sales and Marketing Council. Countrywide then sponsored Nation’s Building News Online and has since transitioned into the current sponsorship of The NAHB University of Housing.

For more information about The NAHB University of Housing and its educational offerings, click here. For information about Countrywide Home Loans, National Builder Division, click here.

Education Calendar

Subscribe Your Employees to Nation’s Building News — and Earn a Chance to Win Digital Camera

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.

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.

Satisfied Customers Can Help Build Your Brand and Business

Using tips and techniques common to big business, builders and developers are beginning to realize the benefits of improving customer service and creating a name brand.

Branding is essentially the practice of building a familiarity and trust between a company and its customers. It’s usually used as a way to reinforce relationships after a company has already established a core clientele. Branding takes the “Who’s that?” and “What do they do?” out of the minds of the general public.

To gain the customers’ trust and build relationships that will bolster business, companies should concentrate on improving customer satisfaction. As you know, customers’ opinions are integral to success in the building industry — where word-of-mouth advertising can be more effective than print ads.

Customers Help Shape Your Company’s Reputation

Whether you intend them to or not, the average customer can play a large part in shaping your company’s reputation — good or bad.

Disgruntled customers can cause potential harm. Studies have shown that people who have had an unpleasant experience will tell as many as 20 of their closest friends, relatives and associates. The key is to minimize their bad experiences and reinforce the satisfying ones. Conducting customer surveys is one approach to begin eliminating the negative and accentuating the positive.

Customer Surveys Can Help Determine Where You Need to Improve

Customers’ home building experiences can reveal a wealth of information for the builder who knows how and where to look for it. Builders can use customer feedback from these surveys to help determine where they need to improve and where they can excel.

Several companies offer objective, third-party surveying services to builders, contractors and developers. Some companies even offer peer-group comparisons so builders can see how they measure up to other builders in their respective peer groups.

Surveys Can Lead to Increased Customer Satisfaction

Data from an objective, third-party survey can give builders additional insight into their businesses. With this new information, they can then offer services that match desires of their customers that they may not have known about previously. And of course, using these methods to work on problems and create higher levels of customer satisfaction can help maximize profits.

Your Competition Is Out There

Not too long ago, home buyers would average about seven years between home purchases. Today, that average is five years. What’s more, many more people have entered the market and building activity has been remarkably high for several years.

In fact, according to year-end Commerce Department figures, sales of new single-family homes hit a record 1.183 million in 2004. That represents a tremendous number of homes built and sold, but also a tremendous number of builders and contractors. In order to succeed, you’ve got to differentiate your company and products from your competition.

Build a Recognizable Name So You Can Separate Yourself From the Crowd

One sure-fire way to set yourself apart is to offer superior customer satisfaction. Companies with superior customer satisfaction and service ratings have successfully used them as a marketing and sales tool to attract more business — and have charged a premium for their services.

Service and satisfaction is part of the reason many of us are willing to pay more than $5 for a cup of coffee from Starbucks when we can get the same thing for much cheaper at a gas station.

Positive name recognition is another way to stand above the crowd and attract even more customers. When they hear your company’s name, you want customers to think that you’re not just building them a house; you want them to think that you’re giving them the lifestyle they’ve always dreamed of at a reasonable price.

To build your brand, begin by creating a consistent message and then ensure that your customers’ experiences match that message. Like Nike and Starbucks, you want customers to know who you are and what you do.

Of course, big corporations like that rely on consultants and customer service specialists to put systems in place that dispel customer complaints before they even occur. Advertising specialists also help them create memorable tag lines and eye-catching logos.

Strategies That Work for Building Your Brand

Builders don’t have to — and probably can’t afford to ― spend as much money as big corporations do on brand building. However, builders can use some of the same strategies other industries use. For example:

Use all of these avenues to create a company image that will draw customers to you. Remember, also, to consistently show your customers you are doing what you say you can do. Successfully branded companies don’t over-promise and under-deliver.

Erin Rosintoski is a membership sales executive with GuildQuality Inc., an Atlanta-based organization that uses customer satisfaction and loyalty surveying to measure, benchmark and improve business performance. For information, e-mail Rosintoski, call her at 888-355-9223 x22 or visit the GuildQuality Web site.

For additional cutting-edge sales and marketing information, subscribe to NAHB’s Sales + Marketing Ideas magazine. Call 800-368-5242 x8192 or visit www.smimagazine.com to subscribe or order a copy. Click here to learn about membership benefits of the National Sales and Marketing Council and the Institute of Residential Marketing.

The Institute of Residential Marketing Offers Courses and Designation Programs for Sales & Marketing Professionals

The Institute of Residential Marketing (IRM) offers four designation programs for sales and marketing professionals:

BuilderBooks.com offers a variety of sales and marketing publications online. To view or purchase these publications, click here.

St. Louis Builders Join With OSHA to Improve Safety

The Home Builders Association of Greater St. Louis, in conjunction with the Carpenters District Council of Greater St. Louis and Vicinity, has entered into a partnership with the Occupational Safety and Health Administration designed to help employees and workers identify and control hazards on the job site. The partnership is part of U.S. Labor Secretary Elaine Chao's ongoing efforts to improve health and safety for workers through the agency’s Residential On-Site Safety Initiative (ROSSI).

A key goal of the partnership is to reduce and prevent the top causes of work-related fatalities identified by OSHA: falls, electrical hazards, moving equipment or machinery and workers who are caught between equipment.

Under the terms of the partnership, contractors will implement a safety and health program that will enable workers and supervisors to prevent injuries by identifying and correcting safety hazards before work begins.

Contractors have also agreed to conduct regular job site inspections and to train all their workers on safety hazards that typically occur on residential construction sites.

As an incentive for participating in the voluntary ROSSI program, OSHA will not conduct programmed inspections of partnership members for up to 12 months following the completion of an on-site verification inspection. However, inspections will still be conducted in response to reports of imminent danger, an employee complaint, a fatality or a catastrophic accident.

Participating contractors also will not be cited for less than serious violations that can be abated during an inspection and will receive reduced penalties for other safety and health violations.

For more information, e-mail Rob Matuga at NAHB, or call him at 800-368-5242 x8507.

“NAHB-OSHA Jobsite Safety Handbook,” available through BuilderBooks.com, presents the basic guidelines for establishing a safety and health program and identifies safe work practices that counteract the most common hazards found on residential job sites. To view or purchase this publication online, click here, or call 800-223-2665.

North Carolina Builders Win School Impact Fee Case

In a clear victory for the building industry, a Durham County trial court recently ruled in favor of several North Carolina builders, invalidating a school impact fee ordinance imposed upon new residential construction.

Granting the builders’ motion for summary judgment in their class action lawsuit, the court ruled on Jan. 25 that the Durham County ordinance was “unlawful, void and without legal effect” and that the county was permanently enjoined from enforcing and collecting fees under it.

However, on March 1, the North Carolina Court of Appeals ruled that the county can continue to collect the fees on residential construction until the legal wrangling has been resolved. The recent appeals court decision, nevertheless, hasn't lessened the sense that builders have won a key victory at a time when cash-strapped local jurisdictions are increasingly turning to new or higher impact fees as an extra source of municipal funding.

The trial court ordered Durham County to refund to the builders all of the fees that had been collected, plus 8% interest, and to provide an accounting of all persons who paid or might have paid the school impact fees.

This victory amounts to a potential annual savings of more than $5 million for Durham County home builders and home buyers.

This case follows on the heels of a similar victory in Ocean Springs, Miss., last year, as builders continue to score growing success in defeating these measures.

NAHB is available to provide technical assistance, litigation strategies and funding to state and local associations to battle impact fees and seek out alternative infrastructure financing solutions. For staff assistance on impact fees, e-mail Mary Lynn Pickel, director of legal services at NAHB, or call her at 800-368-5242 x8485; or contact Keyvan Izadi, land use planner, x8469.

Framing Guide Shows How to Meet Code

An illustrated guide on framing techniques developed by the NAHB Research Center and the NAHB Construction Technology Research Committee transforms code-required practices into simple, easy-to-use text and figures that enable builders, contractors and building officials to construct and inspect framing that meets all the provisions of the 2003 International Residential Code for areas not prone to earthquakes or heavy winds or snowfall.

The document was developed following Optimum Value Engineering principles, which use simple engineering-based techniques to achieve adequate strength, while helping to reduce the amount of waste generated at the construction site.

The guide was introduced in January at the International Builders’ Show in Orlando, Fla., and provided the basis for an educational session on “Picture Perfect Wood Framing — A Quality Job Every Time.” That session will be repeated at the NAHB Green Building Conference next month in Atlanta .

For more information, e-mail Joe Knarich at NAHB, or call him at 800-368-5242 x8366.

Court Rejects Anti-Growth Zoning Restrictions in Northern Virginia

The Virginia Supreme Court last week threw out broad, anti-growth zoning restrictions in Loudoun County that it said had been adopted without adequate public notice.

In 2003, Loudoun County's Board of Supervisors adopted zoning restrictions that required 10, 20 and as much as 50 acres per house in the western two-thirds of the county.

The court ruled that county officials failed to give adequate public notice of the changes because they did not “indicate the particular areas of the county that would be affected by the proposed policies.”

Loudoun County — about 25 miles west of Washington, D.C., in Northern Virginia — is one of the nation’s fastest growing counties.

“We look forward to working with Loudoun County officials to make sure that the county enjoys sensible, well-planned growth,” said Jim Williams, executive vice president of the Northern Virginia Building Industry Association. “There is a strong demand for housing in the county, and we have a great opportunity to meet that demand in ways that create vibrant communities and improve the quality of life.”

County officials have not decided how they will respond to the court’s ruling in the property rights case. They could try to give proper notice before seeking to reinstate the low-density zoning; they could appeal the decision; or they could do nothing and let the more stringent growth restrictions disappear.

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

Information About Current Use of Arbitration Requested

The home building industry has seen a dramatic increase in construction defect litigation since the early 1990s. To date, approximately 24 states have adopted notice of opportunity to repair legislation, which requires home owners to notify builders of alleged construction defects prior to filing lawsuits and gives builders an opportunity to address defect concerns.

Anecdotal evidence exists that arbitration involving home construction defects provides a quicker, less expensive and fair alternative to court trial for consumers as well as builders.

NAHB is in the process of determining the extent of current arbitration use in the industry during 2002-2003 and is seeking information from arbitration service providers.

NAHB is asking arbitration service providers to fill out the following six-question survey about arbitration and forward the answers to NAHB.

(Builders and remodelers who have used arbitration service providers are asked to forward the questionnaire to your provider.)

If you do not have exact figures, an approximation will do. If you provide services in multiple states, please provide a breakdown by state.

Any information provided is for NAHB use and will not be shared with the public.

Builders Embrace Schwarzenegger Solar Roof Proposal

“California home builders are pleased to be part of Gov. Schwarzenegger’s ongoing efforts to expand the use of photovoltaic energy (PV) systems in California and will continue to work with the governor and his administration to enact a workable, cost-effective program,” the association said in a statement issued from its headquarters in Sacramento.

The association noted that the governor’s market-based approach would ensure that PV systems do not make housing even less affordable than it already is “in a state where housing is less affordable than any other state in the nation.”

The voluntary approach will also enable consumers to choose the housing options that suit them best and ensure that PV systems are cost-effective for consumers.

“Today, in California, where we are famous for the sun, we are going to put the positive benefits of that sun to good use,” said Schwarzenegger. “Through the ‘Million Solar Roofs Initiative’ and the willingness of the building community to join us in this effort, we will succeed in providing a stable alternative source of energy.”

Among the provisions in bills that have been introduced in the state Senate to create the solar program:

You can still register onsite for the upcoming National Green Building Conference in Atlanta on March 13-15. The high caliber education programs will give you a chance to meet other green-minded builders from all around the country as well as meet with exhibitors with products to help you build a better home.

The National Green Building Conference is the only national conference targeted to "green building" for the mainstream residential building industry. For more information, click here.

“Green Building Guidelines,” available at BuilderBooks.com, is a valuable resource for builders and for buyers interested in producing or purchasing energy-and resource-efficient homes. “Green Building Guidelines” includes complimentary illustrations, case studies and checklists. To view or purchase this publication online, click here, or call 800-223-2665.

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Affordable Homes Aimed at Workers in Trenton

The 35-home development is made up of three- and four-bedroom townhomes alongside a new community park in New Jersey 's state capital.

The homes have been sold to qualified buyers with annual incomes ranging from $26,000 to $80,000. Purchasers received 100% financing at market interest rates and a generous real estate tax abatement from the city for the next five years. In Mercer County, with median income for a four person household at $74,717, the homes were affordable to workforce families with combined earnings between 35% of median income and 107% of median income.

R. Randy Lee, CEO of Leewood, and Michael Fink, president of the company’s New Jersey Division, accepted the Innovation in Workforce Housing Award, which recognizes outstanding communities across the nation that provide decent and affordable homes for workforce heroes, including nurses, police officers, schoolteachers and other service personnel, near areas in which they work.

"The National Association of Home Builders has long recognized the importance of providing quality, affordable housing to those who vitally need it," Lee said. "This award elevates Leewood Real Estate Group's prestige in the arena of urban and affordable/workforce housing, and we pledge to continue developing communities that will fulfill the dream of homeownership for those in the workforce."

The townhomes include eat-in kitchens; two full baths; generous closets and storage; central air conditioning; distinctive brick facades; private, grass rear yards; and private parking. Some models have full basements, others have garages and recreation rooms.

"Many families and individuals who presently live or work in the Trenton area have wanted to become home owners, but could not afford expensive downpayments and closing costs, and there simply weren't many high quality new homes available at reasonable prices," said Fink. "This new community, with homes affordable to those who teach, police and otherwise make up the City of Trenton 's workforce, allows our home buyers to experience the pride of homeownership and to have investment benefits while enjoying their spacious, state-of-the-art new homes."

Leewood at North Willow Green was part of a statewide effort to develop modern new homes that are affordable for New Jersey families. A public/private partnership of the Leewood Real Estate Group (NJ Division), the City of Trenton, New Jersey Housing and Mortgage Finance Agency (HMFA) and the Concerned Pastors of Trenton and Vicinity all played key roles in the development of the community. More information about the development can be found at www.northwillowgreen.com.

“It is my pleasure to bring attention to projects that are designed to meet the needs of America’s working families,” said Bobby Rayburn, immediate past president of NAHB and a home and apartment builder from Jackson, Miss. “The Innovation in Workforce Housing Awards emphasize creativity in community design, financing and in partnering with other community groups. I can’t think of a better way to single out builders and developers who are ahead of the curve on addressing this critical need.”

For more information about workforce housing and these awards, including eligibility requirements, visit www.nahb.org/workforcehousing; or e-mail Kym Kilbourne at NAHB, or call her at 800-368-5242 x8447.

Tools Becoming Safer and More Efficient

By Pamela Valenzuela
Just as Americans are reassessing their quality of life in today’s stressful environment, so too builders and contractors are analyzing how tools can increase their productivity while protecting their workers’ health and welfare.

Electric tools represented a major improvement years ago. Now the changes are subtler, with manufacturers rarely developing new tools, but refining and improving those that already exist.

Alicia Smales, director, Hilti Small Power Tools, says her company designs tools with four factors in mind:

Dan Harrell, Zircon Corporation's director of marketing, agrees that ergonomics — a trend that started in the late 1990 — is of utmost importance. In 1998, Zircon hired its first industrial designer, and since then, the department has expanded. Another trend that Harrell attributes partially to the growing market for women is the development of tools that are easier to use and instructions that are easier to understand.

Zircon and other tool makers also are emphasizing the production of one tool that does the job of many. Harrell says his company’s LaserVision® Qube™ System is doing just that. Its self-leveling base and assorted laser-generating cubes make it easy to set level, plumb and square layout lines. Zircon’s LaserVision iLine™ automatically self-levels in all four directions — up, down, left and right, thereby generating both plumb and level lines. Another product uses CenterVision™ technology to pinpoint the wood or metal stud center, not just the edge, which takes the guesswork out of locating the best place to anchor into a stud. The company plans to roll out new products using CenterVision later this year.

“Our stud sensors also identify hot lines, so contractors can avoid getting hurt,” Harrell says. “All it takes is one time getting shocked, and the stud sensor that points out wiring becomes much more valuable.”

Stanley Tools also manufactures a stud finder and laser line level that finds hot lines in the wall. The Intellilaser™ Pro Laser Line Level/Stud Finder electronically zooms in to show the worker both edges of the studs as far in as three-quarters of an inch, on both vertical and horizontal surfaces.

Bosch’s Randall Coe, director of product development, says his company is very focused on the user. “While it is becoming harder and harder to know what the issues are with tools, we spend more time in their environment,” says Coe, referring to the company’s field testing.

Bosch’s new cord management system allows the user to utilize any standard 12-gauge cord, rather than having a permanent cord attached to the saw or drill, which is easy to cut or damage. This way, if the cord is cut, a new cord can be plugged in.

Gary Van Durisen, Stanley Tools’ corporate vice president of innovation and design, agrees that market research has become more important. About seven years ago, the company created “Discovery Teams” to test its prototypes in the field. “I can go out with 50 prototypes and have 150 responses in two to three days,” Van Durisen says. “Builders are great for refining products and ensuring they meet their needs.”

The Discovery Teams interact with end-users in a job site environment to acquire information about how the professionals would make the tools better. This information is taken back to the designers and engineers who develop the prototypes and test models. And, again, they are taken out to the job sites for additional testing and refinements. Once the tool meets the needs of the pro, the company finalizes the design and develops the product.

Stanley’s FatMax® line of tools were developed this way, starting with its FatMax 25-foot tape rule in 1999, and the line today has almost 100 SKUs.

While some people don’t think about safety when they purchase tools, they should. Unsafe tools, improper use of tools and certain environments cause accidents, injuries and downtime.

Bosch is very safety conscious when it comes to designing its products, says Randall Coe. “If you address user fatigue, you develop and refine new projects, and you improve safety.”

Hilti’s Smales agrees about the importance of safety. As two examples, she points to her company’s corded WSR 900-PE and cordless WSR 650-A Reciprocating Saws with interlock switches that minimize the risk of unintentional engagement, and the TE 56 and 56-ATC combihammers. The patented Active Torque Control (ATC) provides added operator protection because it constantly monitors the rotation of the tool and disengages the drive system if it senses the housing beginning to rotate too quickly, she notes. It also provides 40% more power than its predecessor.

With the desire to maximize every dollar, after-sale service is always a concern of home builders and contractors.

Through its Fleet Management Program, the first of its kind according to the company, Hilti offers construction companies the benefit of a new tool fleet plan which only one monthly charge. The program includes a comprehensive review of the current tool fleet, consultation and recommendations based on tool usage and history. All annual service, including regular maintenance, calibration and shipping, is covered, resulting in lower expenses. The program reduces downtime, increases reliability and creates a predictable monthly cash flow, without a large upfront capital investment.

Under the program, tools that need servicing can immediately be sent in for repair at no additional cost. This means no more estimates, purchase orders or internal delays, saving time and money. When a tool is sent in for repair, it receives priority treatment to ensure that it is repaired and returned to the contractor as soon as possible.

Tomboy Tools is a tool and home improvement company for women, by women, that provides a unique range of private-labeled hand tools for home improvement projects, and just as importantly, training to learn how to be comfortable using the tools.

“Our mission is to empower women so they become confident and competent home owners,” says co-founder Sue Wilson, president and CEO. “We provide the highest quality tools and techniques to women through our In-Home Workshop direct-selling strategy.”

In selecting tools to be carried by the company, Wilson says they want tools that meet three requirements:

A great set of tools without the know-how to use them is not very helpful. Tomboy Tools’ In-Home Workshops let women try out tools, learn home repair skills and get new ideas in a relaxed, and fun, setting. A workshop trainer comes to the home and runs a few demonstrations of common home repair problems. Attendees can purchase tools and tool kits at that time, or they can simply learn from the demonstrations.

“Our In-Home Workshops reinforce our tell-show-do-feedback approach to home improvement projects,” says Wilson. “We tell you how it’s done, show you how to do it, give you a chance to try it yourself and then provide feedback so you can recreate the project in your own home.”

Pamela Valenzuela is a marketing communications and management consultant based in Alexandria, Va.

Lowe’s Helps HBI Job Corps Grads Pursue Housing Careers

A $50,000 donation from Lowe’s last April was instrumental in establishing the Building Careers Scholarship program, which helps the graduates overcome the barriers they face when getting started in a first job, such as finding transportation for work.

A member of NAHB, Lowe’s featured the partnership with HBI in its exhibit at January’s International Builders’ Show (IBS) in Orlando, Fla. The names of the Job Corps graduates who have received scholarships were listed on three brass plaques at the exhibit entrance.

“We know that 18 young men and women graduated from Job Corps and started jobs in our industry thanks to Lowe’s support,” said HBI Board Chair Patsy Smith. “Not all the student graduates need the extra help, but we are elated that Lowe’s is there for those who do.”

Lowe’s provided further support for HBI’s Job Corps programs by donating the materials to build the HBI Job Corps Skills Exhibit booth at the IBS, energizing students and staff to work long and hard to put together a display that has remained a source of pride long after the exhibition.

Each year, HBI trains more than 2,000 at-risk youths enrolled in the Department of Labor’s Job Corps program. HBI offers training and job placement support to students in seven trades — carpentry, facilities maintenance, electrical wiring, painting, plumbing, brick masonry and landscaping.

For more information on the HBI/Lowe’s Building Careers program, e-mail Keith Albright or Maria McIntyre at HBI; or call them at 800-795-7955 x8911 or x8912, respectively.

Fanfold Underlayment Reduces Air Infiltration

All-plastic Green Guard® Fanfold Underlayment from Pactiv Corporation is easily installed, enhances energy efficiency and provides a smooth base for replacement siding, according to the manufacturer.

Easy-to-cut, GreenGuard stays flat to provide a solid, level base for new siding, according to Pactiv Corp. Made of extruded polystyrene foam with clear flexible plastic facers, it provides superior resistance to moisture and humidity that helps prevent warping, crumbling or delamination.

The underlayment increases energy efficiency by sharply reducing air infiltration into the wall cavity.

GreenGuard’s fanfold design is highly resistant to cracking, denting and tearing. One side is printed with grid lines for alignment and cutting, says Pactiv Corp.

The product is sold in a two-square bundle, 4-foot x 50-foot; when installed over old siding it provides a continuous layer of thermal and air infiltration protection.

For further information about the GreenGuard® family of products available to home builders and remodelers from Pactiv, click here, or call 800-241-4402.

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.

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Headlines at a Glance

Home Builders Becoming Fans of Easy-to-Apply Plaster Made From Potter’s Clay

American Clay — an earth clay plaster derived from potter’s clay — is increasingly being used by builders in Albuquerque, N.M., as an alternative to cement, acrylic, lime and gypsum plasters, according to Carol Baumgartel, the company’s vice president of marketing. Because it is a mechanical and not a chemical bond, the plaster doesn’t harden when it’s trowled on, allowing it to be reworked and retouched. Once applied, it takes six to eight hours to dry and is dust-free. The clay plaster — which won an NAHB award for outstanding green building product in 2004 — comes in 32 colors, can be mixed with straw or mica, resists molds and fading and has a suede-like finish. The cost is 90 cents a foot for the primer, color and plaster, and materials for a 12-foot square room cost $360. Business for the 10-person company has grown 400% since last year. www.abqjournal.com
Albuquerque Journal (2/26/05); Aurelio Sanchez

Texas leads the country in residential insulated concrete form construction, with more than 5,000 homes being built with the innovative technology each year, according to Joe Lyman, executive director of the Insulating Concrete Forms Association in Chicago. He adds that the state’s ICF market is growing by about 25% annually. Poured concrete walls, according to manufacturers and industry associations, are twice as energy efficient as wood. They are also nine times stronger than wood, making them popular in tornado- and hurricane-prone locations such as Galveston and Padre Island. In 2003, the Texas state legislature passed a law requiring insurance discounts for owners of concrete houses because of their fire, wind, insect and mildew resistance. A Texas distributor says that the cost is less than 5% higher than wood. Concrete homes are not visibly different from wood-framed, except the window sills are 11-inches deep instead of the standard 8 inches. In 2003, more than 16% of all new houses were made with concrete walls, up from 2% a decade earlier, according to Dawn Faull, program manager for the Concrete Home Building Council of NAHB. She said that concrete is replacing wood at a rapid rate nationally, especially in coastal areas. www.dfw.com
Fort Worth/Dallas Star–Telegram (2/25/05); Teresa McUsic

Home builders say that those who bemoan that they don’t build houses like they used to are misguided. “Thank God we don’t build them like they used to,” said Dominic Moceri, president of the Building Industry Association of Southeastern Michigan, who is thankful that formaldehyde flooring, asbestos insulation and lax environmental safety concerns are things of the past. “We’re building traditional design neighborhoods with a blend of housing types, the nostalgia of front porches and porch swings, and they back up and preserve open spaces where there was very little regard to natural feature protection (in the past).” In his list of the latest advances he has seen in the 54 years he has been in business, Dave Kellett Sr. of Kellett Construction in Bloomfield Hills, Mich., cites high-tech windows that cut down on air infiltration, air-powered tools, new glues, engineered studs for two-by-fours, computer-generated architectural drawings and exact site development, engineered-woods, fiberglass-reinforced concrete and laser-assisted excavation. www.detnews.com
Detroit News (3/3/05); Lynne Meredith Schreiber

Just two years after the landmark $274-million Roy and Edna Disney California Arts Theatre opened in Los Angeles, construction crews are set to take a hand sander to some stainless steel panels and a marquee that have been baking condominiums across the street. Beams of sunlight reflected from the hall have raised the sidewalk temperature to 140 degrees Fahrenheit, high enough to melt plastic and cause sunburn to people standing on the street, according to a report from a consultant hired by the county. The building’s architect, Frank Gehry, has agreed to make the fixes. Most of the hall is clad in duller brushed steel, and the sanded portions of the surface will look more like brushed steel than polished steel. “Even great architects make mistakes with materials and designs,” says Pauline Saliga, director of the Society of Architectural Historians. “I think you just have to admit it and you have to be pragmatic about it and alter the design if necessary. Architecture is a functional art form, so it really does have to function.” www.latimes.com
Los Angeles Times (3/3/05); Jack Leonard and Natasha Lee

Since California’s Sacramento County adopted a law in December requiring 15% of new homes in most subdivisions to be affordable to lower-income buyers, proposals to build more than 20,000 homes in the country are frozen in the pipeline while developers and planners try to find a way to make them satisfy the complicated ordinance. Because of the law’s complexity, county planners, Sacramento Housing and Redevelopment Agency planners and builders are struggling to write conformity plans for each project, and developers are worried that their projects might miss the current building season. “It was the county’s choice to adopt a policy they weren’t ready to implement,” said Dennis Rogers, director of government affairs for the Building Industry Association of Superior California. “It was a stupid choice.” After reading it several times, local land-use attorney John Hodgson said he finds the plan confusing. “I’m taking it on my vacation,” he said. “Maybe after a couple of mai tais I may be able to understand it better.” www.sacramento.bizjournals.com
Sacramento Business Journal (2/28/05)

Denver-based Archstone-Smith has signed a $1.4 billion deal to buy 30 multifamily rental communities with more than 10,000 units from Oakwood Worldwide. Los Angeles-based Oakwood is the largest global provider of corporate housing. Archstone-Smith said it expects to close on most of the portfolio late in this year’s second quarter. More than 40% of the portfolio is within walking distance of current Archstone-Smith communities, and 78% is concentrated in the company’s core markets, including 40% in Southern California; 20% in the Washington, D.C. Metropolitan Area; and 18% in the San Francisco Bay Area, Boston, Chicago and Seattle. www.globest.com
GlobeSt.com (3/1/05); John Rebchook

Moro Construction’s Suite Collard condominium project in Curitiba, Brazil, is the only building in the world where each floor can spin separately, in either direction and at variable speeds. The kitchen and bathroom of the building’s 11 homes — each on one floor — are located in a fixed central structure. The rest of the apartment is in a round capsule fixed on a concrete platform that spins. A full rotation takes about an hour and can be set in motion by a voice command. Prices start at $300,000 for the roughly 3,000-square-foot apartments. www.multihousingnews.com
Multi-Housing News (3/1/05)

Census figures showing a 20% decline between 1990 and 2000 in the number of 18- to 34-year-olds living on Long Island, N.Y., has made the local population more amenable to proposals for affordable housing, although there remains a historic aversion to anything other than single-family homes. Other older suburbs, such as California’s Orange County and Silicon Valley, also are wrestling with a housing crunch that is pushing out younger workers. Long Island could receive some help from a bill by Sen. Hillary Rodham Clinton (D-N.Y.) that would provide $250 million in federal grants and tax credits for revitalization projects aimed at the nation’s aging suburbs. Wages on Long Island, where about three-quarters of its residents work, have increased by 8% in the past 15 years, compared to 12% nationally. As of last July, the median price of a single-family home on the island was $393,000, more than twice the national average. www.chicagotribune.com
Chicago Tribune (2/24/05); Leon Lazaroff

David Auty, CEO of Hydrogen Solar of Guilford, England, doesn’t assume that the United States will be able to shift from fossil fuels to the hydrogen economy by 2020, as touted by the Bush Administration, California Gov. Arnold Schwarzenegger and many scientists. However, working with Altair Nanotechnolgies, his company is building a hydrogen-generation system that captures sunlight and uses the energy to break water molecules into hydrogen and oxygen. His company’s current project, a fuel station in Las Vegas, will soon be dispensing hydrogen fuel. He said that a hydrogen solar system on a home’s garage roof that is 10% efficient could provide enough hydrogen for a fuel-cell car to drive 11,000 miles per year. www.wired.com
Wired News (12/7/04); John Gartner

A recent survey of more than 1,000 home builders by Lowe’s found that nearly two in three say they already construct homes with an eye on “smart home” technology. David Steed, the company’s senior vice president for merchandising, said that, “Builders are keenly aware of how their business is changing and being driven by technology considerations.” About 51% of the builders polled said that their customers are asking for the technology now. Only 14% said that the smart house concept is five or more years away from widespread consumer acceptance. Steed said that while beefed-up wiring in a home seems simple, having it centralized with easy access for upgrades and adaptations is the linchpin that will allow a home to change along with technology. Scott Goodelle, of Pass and Seymour, a supplier of high function junction boxes, says that the cost of cable is about a nickel per foot, adding incrementally to construction costs. One quarter of the builders polled said that the perception among home owners that the added cost may not be worth it may be a significant barrier to smart home technology. www.insidevc.com
Ventura County Star (2/6/05); David Bradley

NAHB Spring Board Meeting Set for April 11-17

OFFICIAL MEETING NOTICE OF
THE NATIONAL ASSOSCIATION OF HOME BUILDERS
BOARD OF DIRECTORS

The following schedule of events is a partial listing provided as a notice for the upcoming NAHB Board of Directors Meeting and Legislative Conference at the Spring Board Meeting in Washington , D.C. , April 11–17, 2005. Meetings will be held at the National Housing Center and the Marriott Wardman Park Hotel. The Spring Board program will identify the exact time and place of each scheduled meeting.

Monday, April 11
Senior Officers Meeting
National Vice Presidents

Tuesday, April 12
National Vice Presidents
Executive Board
State Representatives

Wednesday, April 13
Legislative Conference
— Briefing, Hill Visits, Feedback Session, Grassroots Reception

Thursday, April 14
National Vice Presidents
Committee Meetings

Friday, April 15
Committee Meetings

Saturday, April 16
Area Caucuses 1-15
Joint Executive Board, Budget and Resolutions Committee
NAHB Board of Directors

Sunday, April 17
NAHB Board of Directors

Get GM Discount Pricing on More Than 80 GM Vehicles

GM has begun offering preferred GM Supplier discount pricing to NAHB members 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.

The GM Supplier pricing program is available to members who purchase or lease 2004, 2005 or 2006 model-year vehicles.

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.

Subscribe Your Employees to Nation’s Building News — and Earn a Chance to Win Digital Camera

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.

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.

Help Tsunami Survivors Rebuild Their Homes

Many NAHB members already have responded to the devastating earthquake and tsunami disaster in South Asia by generously giving to numerous relief agencies that are providing vital emergency assistance to the survivors. As the relief effort continues and moves from the acute, emergency phase into recovery, the home building industry is rallying to address the longer term need for temporary and permanent shelter in the tsunami-affected nations.

Over the years, NAHB and its members have united to help those in need, demonstrating time and again that Home Builders Care, a philosophy as well as a call to action that is emblematic of the industry's commitment to community service and charitable causes.

In response to what will be an overwhelming need for permanent shelter, NAHB and the National Housing Endowment have established the Home Builders Care/National Housing Endowment-Tsunami Shelter Fund to raise desperately needed funds.

With an initial donation of $250,000, designated by the NAHB Board of Directors at the International Builders’ Show, the fund will be directed to rebuilding efforts that provide temporary and permanent shelter for survivors.

Please help by making a tax deductible donation to the Home Builders Care/National Housing Endowment-Tsunami Shelter Fund. Money raised by the National Housing Endowment will be granted to one or more U.S. charitable relief organizations working to help tsunami survivors obtain temporary and permanent shelter.

Checks should be made payable to the National Housing Endowment and, in the memo section, please note the Tsunami Shelter Fund.

The NAHB Senior Officers have selected Past President Bob Mitchell to oversee and guide this fundraising effort.

For more information, contact Troy Patterson at the National Housing Endowment at 800-368-5242 x8483 or Kym Kilbourne in NAHB Public Affairs, x8447.

Subscribe Your Employees to Nation’s Building News — and Earn a Chance to Win Digital Camera

Subscribe Your Employees to Nation’s Building News

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.

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.

Robson Seeks Office of NAHB Vice President and Secretary

Bobby Rayburn, NAHB 2005 Nominations Committee chairman, has announced that Joe Robson of Broken Arrow, Okla., has been certified by the Nominations Committee to seek the office of NAHB Vice President and Secretary for the year 2006.

I’m a home builder and proud of it. For the last 21 years, I’ve developed land, built homes and worked on commercial and industrial projects. Along the way, I’ve fought growth boundaries, downzoning, impact fees, lack of insurance, anti-growth city councils, assaults on private property rights, lack of infrastructure and overzealous regulators.

I have been active in both the Tulsa and Oklahoma home builders associations and served as president of both. My varied background — from builder to banker to timber farmer to community volunteer — gives me a broad perspective to represent the many segments of the NAHB family. Since being elected to the NAHB Board in 1990, I have worked to protect and enhance our industry through the political process on a local, state and national level. We have a strong association, but it has not reached its full potential.

Let’s stir the pot, shake things up, harness the energy of 225,000 members and take NAHB to new heights.

Calendar of Events

Subscribe Your Employees to Nation’s Building News — and a Chance to Win Digital Camera

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.

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.

Nation's Building News Online: March 7, 2005

NAHB, Realtors State Housing Finance Reform Position

Floor Plans for Living Big in Narrow Spaces

Ohio Latest State to Pass Notice and Opportunity to Repair Law

NAHB Is Your Business Partner

Bill Would Extend Terrorism Insurance Provisions

House Passes Bill to Improve Job Training

Manage Your Time, Make More Money

Builders' Tip: Fitting Stair Treads

First Seniors 20 Club Explores Issues of Growing 50+ Market

Tenants 'Best Buyers' in Condo Conversions

Speaking Spanish Will Make a Difference to Your Bottom Line

Countrywide New Sponsor of NAHB University of Housing

Education Calendar

Satisfied Customers Can Help Build Your Brand and Business

St. Louis Builders Join With OSHA to Improve Safety

North Carolina Builders Win School Impact Fee Case

Framing Guide Shows How to Meet Code

Court Rejects Anti-Growth Zoning Restrictions in Northern Virginia

Information About Current Use of Arbitration Requested

Builders Embrace Schwarzenegger Solar Roof Proposal

Affordable Homes Aimed at Workers in Trenton

Tools Becoming Safer and More Efficient

Lowe’s Helps HBI Job Corps Grads Pursue Housing Careers

Fanfold Underlayment Reduces Air Infiltration

Headlines at a Glance

NAHB Spring Board Meeting Set for April 11-17

Get GM Discount Pricing on More Than 80 GM Vehicles

Help Tsunami Survivors Rebuild Their Homes

Subscribe Your Employees to Nation’s Building News

Robson Seeks Office of NAHB Vice President and Secretary

Calendar of Events