Print-All Page: March 14, 2005

At a time when NAHB and others in the home building industry are stepping up efforts to educate employers and employees about how to work safely with cement and concrete, a new guide from the Portland Cement Association (PCA) provides simple suggestions and precautions to prevent eye injuries or skin irritation when working with the material.

The Portland Cement Association points out that concrete is one of the safest building materials to work with when a few basic precautions are observed. “Over the years, relatively few people involved in mixing, handling and finishing concrete have experienced injury,” the association says.

For more information on cement, the brochure recommends consulting with the manufacturer’s material safety data sheet (MSDS).

The illustrated guide also contains information on proper lifting techniques and protection for the public. An ideal handout for tool-box safety meetings, it is being sold in packages of 100 for $35. To order, click here.

For more information on the issue of cement and worker safety, e-mail George Middleton at NAHB, or call him at 800-368-5242 x8590.

Tour several cement and concrete production facilities to learn and experience first-hand the technologies and considerations going into this fast-growing market segment — from swimming pools and homescaping products to concrete exterior walls and more ― as part of the Concrete Technologies Tour from June 26-28 in Kansas City, Mo. Capitalize on the growing popularity of residential concrete construction by learning from industry experts and network with builders, manufacturers and designers from across the country. For information or to register, click here.

Leaders in Congress, HUD Urged to Adopt Strong Housing Agenda

Addressing a wide range of legislative and regulatory issues with serious repercussions for the nation’s supply of affordably priced housing, NAHB President David Wilson last week met with HUD Secretary Alphonso Jackson and congressional leaders to urge Washington policymakers to pursue a strong national agenda for housing.

In his visit with Secretary Jackson, Wilson said that NAHB is committed to continuing to work with HUD to overcome regulatory barriers within the department and other federal agencies as well as at the state and local levels. He also thanked Jackson for having NAHB First Vice President David Pressly participate in last month’s rollout of the “Why Not In Our Community?” report, which examines the impact of regulatory barriers on affordable housing and will serve as an important reference as efforts in this area go forward.

Wilson also said that NAHB is interested in working with the Administration and the Congress to institute reforms that will enhance the operational soundness of the Section 8 program and allow the many local public housing authorities that administer the program to increase the number of households it assists.

Seeking to build bipartisan consensus for housing priorites among Washington power brokers, Wilson held a productive meeting with newly-elected Democratic National Committee Chairman Howard Dean. Discussions focused on workforce housing and the need to enact policies that would make homeownership more affordable for firefighters, teachers police officers and other public servants.

On Capitol Hill, Wilson met with influential lawmakers including Senate Minority Leader Harry Reid (D-Nev.), Sens. Lincoln Chafee (R-R.I.) and Jack Reed (D-R.I.), House Majority Leader Tom DeLay (R-Texas), House Financial Services Committee Ranking Member Barney Frank (D-Mass.) and Rep. Paul Kanjorski (D-Pa.), who also serves on the House panel.

Wilson raised several NAHB priorities during his discussions in Washington, D.C. last week:

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

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

Justice Launching Forum on Accessibility Compliance

The U.S. Department of Justice is launching a new forum to bring together builders, architects, disability advocates, representatives from its Civil Rights Division and other housing professionals to develop cooperative approaches to promoting compliance with Fair Housing accessibility requirements.

While its plans are not yet fully finalized, the department has slated the first of these “Multifamily Housing Access Forums” for May.

The department says that it is launching the forum largely because it has found that the builders and architects who are sued for Fair Housing accessibility violations believe that they are in compliance or are not fully aware of the law’s requirements.

In defending multifamily builders, NAHB has long argued with the Department of Justice that the law has been poorly promulgated and there has been inadequate guidance on how to comply. The department now seems to be recognizing that fact.

While significant progress has been made by NAHB and others — such as securing the approval of the International Building Code as a safe harbor for compliance — the industry welcomes prospects that the Department of Justice will be stepping up its role to promote compliance through education rather than lawsuits.

In discussing the forum with the Civil Rights Division, NAHB expressed satisfaction that the department is now formally recognizing the very real obstacles to compliance and the association will be urging the department to give those factors greater weight in adjudicating their suits against builders.

NAHB will also be using the forums to rekindle discussions with the department to address how it will resolve cases where it has decided to take enforcement action.

For more information, e-mail Jeff Inks at NAHB, or call him at 800-368-5242 x8547.

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.

Builders to Carry Storm Water, ESA Concerns to Capitol Hill

Members of the building industry who are concerned about the legislative process and its impact on the health of their business and the nation’s housing industry will want to attend the 2005 Legislative Conference on April 13 at the start of NAHB’s spring board meeting in Washington, D.C.

The annual NAHB conference provides an ideal opportunity for association members to share their concerns on housing-related issues with lawmakers on Capitol Hill.

This year’s lobbying event will focus on two environmental priorities for home builders — the federal storm water program and the Endangered Species Act. Both issues are of wide concern to builders and have major repercussions for housing affordability around the country.

The Environmental Protection Agency's aggressive enforcement activities focus too much on paperwork requirements and too little on environmental impacts, while compliance costs can spin out of control. In addition, builders often must comply with state and local storm water regulations that duplicate EPA's mission.

Many NAHB members report that storm water regulation is adding $1,500-$5,000 to the cost of a lot, eroding the affordability of housing for the nation’s working households. Data from the U.S. Census suggests that each $1,000 increase in the cost of a home prices 300,000 families out of the marketplace.

On the Endangered Species Act, NAHB is urging the Congress to adopt a balanced critical habitat reform measure and to ensure that the data behind listing decisions actually serves to further the protection of species. Approximately 76% of all listed species can be found on privately-owned lands; one-third of them can only be found on private property.

NAHB is supporting the efforts of Rep. Dennis Cardoza (D-Calif.), who is expected to introduce a critical habitat reform bill soon that would require a cost-benefit analysis of the economic impacts on a community before the U.S. Fish and Wildlife Service makes a critical habitat designation.

The Cardoza plan, identical to a measure the California lawmaker submitted in the 108th Congress, would promote species recovery, reduce litigation and provide incentives for private landowners to enact voluntary conservation.

House Resources Committee Chairman Richard Pombo (R.-Calif.) and Senate Environment and Public Works Committee Chairman James Inhofe (R-Okla.) have made passage of Endangered Species Act reforms a priority for this Congress.

Also at the top of the agenda during the one-day lobbying blitz next month will be the issue of providing effective regulatory reform of the government-sponsored enterprises (GSEs) — Fannie Mae, Freddie Mac and the Federal Home Loan Banks — while preserving their housing mission. Participants will also be asked to garner cosponsorship of legislation creating a homeownership tax credit.

More than 700 builders are expected to participate in this year’s visits to Capitol Hill, meeting with their representatives and senators as advocates and educators for the housing industry.

Talking points and further details on this year's legislative priorities are available to NAHB members at www.nahb.org/legcon.

For more information or to register for the NAHB Legislative Conference, call 800-368-5242 x8470; or e-mail Jessica Boyce at NAHB.

Senate-Passed Bill Stops Tenant, Home Owner Bankruptcy Abuse

The nation’s home builders last week applauded Senate passage of S. 256, the “Bankruptcy Abuse Prevention Act of 2005,” noting that the measure contains two beneficial provisions for home builders.

“The legislation strikes a fair balance between the rights of tenants and property owners, and it also provides sufficient safeguards for home owners to protect their property in the event of a bankruptcy filing,” said NAHB President David Wilson.

The bill would stop an abusive practice under current law in which delinquent tenants facing eviction can file for bankruptcy, triggering an automatic stay that requires the property owner to stop all eviction proceedings — even if the tenant is damaging property or involved in illegal activity. This allows a tenant to remain in a rental property for months without paying rent until a bankruptcy judge lifts the stay.

“These tenants drive up housing costs for the vast majority of residents who pay their rents on time,” said Wilson. “At the same time, they are also threatening the economic viability of rental properties, particularly subsidized housing properties that have thin operating margins.”

The bill would establish a clear procedure for the speedy resolution in federal bankruptcy court of cases in which a tenant has defaulted on the lease agreement for failure to pay and then files for bankruptcy, while providing debtors with due process protection against unfair evictions.

The measure also stipulates that home owners who filed for bankruptcy within 40 months of buying a home would be able to protect no more than $125,000 of home equity from creditors, and after 40 months existing state homestead limits would apply. This provision prevents a debtor from shielding assets by purchasing a home in a state with an unlimited homestead exemption, while also recognizing that states should have the ability to set homestead exemptions at levels they deem appropriate.

The legislation was approved by a 74 to 25 vote. House leaders have indicated that they plan to approve the bill as early as next month, and President Bush is expected to sign the bankruptcy measure into law shortly thereafter.

To read the legislation, click here and enter S. 256 in the box at the upper left.

For further information, e-mail J.P. Delmore at NAHB, or call him at 800-368-5242 x8412.

OSHA Reform Package Would Enhance Worker Safety

A legislative package introduced on Feb. 18 by Rep. Todd Tiahrt (R-Kan.) would help the Occupational Safety and Health Administration (OSHA) work in a more cooperative and efficient manner with employers to achieve the mutual goal of improving workplace safety, according to NAHB.

“By bringing equity to the citation process, the six reform bills unveiled by Rep. Tiahrt will provide OSHA officials more flexibility in working with builders and contractors and help foster a better working relationship between the parties,” said NAHB President David Wilson.

“These reforms would promote greater fairness for small business owners, advance employer cooperation with OSHA and enhance worker safety,” said Wilson.

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

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

Population Along U.S. Coasts Continues to Grow

According to the Census Bureau, 10 of the 25 most populous cities in the U.S. are located in coastal counties, which constitute only 17% of the total land area in the country, excluding Alaska. Alaska was factored out of most analysis in the report because of its long coastline and small population.

The nation’s coastal population is expected to increase by more than 7 million by 2008 and 12 million by 2015, according to Woods and Poole Economics, Inc., whose county-level populations were used in the report.

Total coastal population between 1980 and 2003 increased by 33 million people, or 28%, the report says, and that is roughly consistent with the overall increase in the nation’s population during that time.

“Public policymakers and coastal managers are confronted with the daily task of finding a balance between benefiting from economic growth while mitigating the effects of this growth on coastal environments,” the report concludes. “The task is becoming ever more challenging as the coastal population continues to grow in a limited space.”

The report also identifies regional growth trends in the coastal areas between 2003 and 2008:

See what's on the horizon for the housing industry at NAHB's Spring Construction Forecast Conference on May 5 in Washington, D.C. Get the latest forecasts on housing starts, project budgets and other economic bellwethers and developments in the housing industry from some of the country's premier economists and finance experts. To register or for more information, click here.

Eye on the Economy

By David F. Seiders, NAHB Chief Economist
Growth of U.S. economic output moves ahead nicely …

On Feb. 25, the Commerce Department raised its estimate of GDP growth for the fourth quarter of 2004, from 3.1% to 3.8%, placing that quarter comfortably within the healthy above-trend range in evidence for the past seven quarters. The upward revision reflected upward adjustments to exports, construction spending and business investment in equipment and software as well as inventories.

Available monthly data point toward maintenance of strong growth of real GDP in the first quarter of this year (we’re currently estimating 4.0%). Current growth is well balanced, with positive contributions coming from consumer spending, residential and nonresidential fixed investment, inventory investment, government spending and possibly even net exports. While the sectoral composition will be changing in the future, we’re looking for maintenance of solid GDP growth throughout the 2005-2006 forecast period.

Job growth continues apace and there’s still ample slack in labor markets …

The employment report for February was quite positive. Payroll employment was revised up slightly for the previous two months and then rose by a robust 262,000 in February. Part of this surge represented a catch-up following a negative weather effect in January, leaving an average monthly gain of 197,000 for the first two months of the year.

The Labor Department’s survey of households showed a modest decline in civilian employment and a decent increase in the civilian labor force in February. The unemployment rate moved up from 5.2% to 5.4% in the process, leaving the January-February average at 5.3% — equivalent to our projection for the first quarter. The labor force participation rate held steady at 65.8%, a 16-year low.

The current unemployment rate suggests that there’s still a good bit of slack in the labor market, leaving room for more above-trend economic growth without serious labor cost pressures, and the low labor force participation rate also argues in that direction. Indeed, broad measures of slack (including discouraged workers, others marginally attached to the labor force and those working only part time for economic reasons) show much more breathing room than the basic unemployment rate.

Core inflation (excluding prices of food and energy) certainly has firmed up since late 2003, although the readings for late-2004 still were historically low ― particularly for an economic expansion with three full years under its belt.

The core Consumer Price Index (CPI) for January showed a year-over-year advance of 2.3% and the technically superior chain-core CPI was up by 1.9%. While still historically low, these readings are consistent with the systematic upward pressures evident since late 2003 when these core rates were hanging around 1%.

Reasonably reassuring news on core inflation recently was provided by the Fed’s favorite inflation gauge, the core price index for Personal Consumption Expenditures. While this measure rose at an annual rate of 3.7% in January, the largest month-to-month jump of the current economic expansion, the year-over-year gain was only 1.6% — similar to the pace of other recent months. Furthermore, a market-based version of this index (excluding most implicit prices) held at 1.7% for the third month in a row.

Fed Chairman Alan Greenspan delivered the Federal Reserve’s semiannual Monetary Policy Report to the Congress on Feb.16 (to the Senate) and Feb. 17 (to the House of Representatives). Greenspan painted an optimistic picture of the current condition of the economy as well as near-term prospects. In general, Greenspan talked about solid economic fundamentals, good economic growth, declining unemployment and modest increases in core measures of consumer prices.

Greenspan certainly didn’t spell out the future path of monetary policy at his Feb. 16-17 testimony before Congress. However, a judicious reading “between the lines” reveals a strong preference for more tightening in the near term as well as further down the line.

In this regard, Greenspan described the current federal funds rate as “fairly low” despite significant tightening since mid-2004, and he made several references to excessive risk-taking in financial markets. He also focused on upside risks to core inflation, including the cyclical slowing of productivity growth and the prospects for further declines in the dollar and associated increases in import prices.

Financial markets are pricing in expectation of another percentage-point increase in the federal funds rate by August, taking the funds rate to 3.5% and the bank prime rate to 6.5% by then. NAHB’s forecast shows a 3.75% funds rate by year end, and we expect the Fed to push the rate to 4.25% by mid-2006 as it pursues a neutral policy stance that will neither stimulate nor retard the economic expansion.

When Greenspan marched to Capitol Hill on Feb. 16, the 10-year Treasury bond yield was hanging around 4.1%, well below the levels of mid-2004 despite the Fed’s 150 basis point hike in short-term rates that began on June 30. Greenspan naturally paid a good bit of attention to this apparent disconnect and pointed out that the phenomenon actually is global. In essence, he threw up his hands and said “the broadly unanticipated behavior of world bond markets remains a conundrum” ― i.e., a riddle with no satisfactory solution.

Although Greenspan was hard-pressed to explain the behavior of long-term rates, it seemed clear that he was not entirely happy with their stubbornly low levels.

Greenspan’s vibrations apparently made their way into the bond markets, and the 10-year Treasury yield has gravitated back to about 4.35%, in alignment with NAHB’s forecast for this point in time. We also continue to believe that further increases are in store, and we’re pegging the Treasury bond rate at 5% by the end of this year. That move should take the long-term home mortgage rate up to about 6.5%, and we expect a 7% mortgage rate by the end of next year.

House prices continue to climb, particularly in supply-constrained markets …

Rapid increases in house prices have been a striking feature of the economic scene in recent years, and that pattern continued through the end of last year. The repeat-transactions House Price Index (HPI) produced by the Office of Federal Housing Enterprise Oversight (OFHEO) showed a year-over-year increase of 11.17% in the fourth quarter of 2004, down a bit from the third-quarter pace but still at the high end of observations for the history of the series.

The national rates of house price appreciation certainly are striking, but the rates for some geographic areas are astounding. Metro areas with the most rapid rates of house price appreciation are heavily concentrated in the West and in Florida. Indeed, California has 14 of the top 20, ranging from 23% in Stockton to 30% in Bakersfield, and Las Vegas led the nation in the fourth quarter with a year-over-year advance of 36%.

The rates of house price increase registered in some areas presumably will not be sustained for long, even though it’s clear that shortages of developable land have created housing shortages in many high-growth areas. Rising interest rates are likely to crimp price increases to some degree, although growing employment and household income will be supporting housing demand at the same time. Everything considered, we’re expecting house price increases to slow down in 2005-2006 without any regional declines. Price declines are possible in some metro areas, particularly those where aggressive buying by investors/speculators may have boosted prices to unsustainable levels.

The housing outlook is quite positive despite mixed signals early this year …

Total housing starts for January posted a 21-year high, single-family starts climbed to a record high and issuance of building permits threatened the records set last May ― and all this happened in the face of unusually bad weather in the Northeast, Midwest and West. Home sales were off in January at the national level (for both new and existing units), but weather-related declines in the Northeast and Midwest regions pulled the numbers down from the records of late 2004.

The NAHB/Wells Fargo Housing Market Index lost just a bit of ground in January and February as single-family builders maintained an upbeat view of buyer traffic, current home sales and sales prospects for the future. The index of applications for mortgages to buy homes (Mortgage Bankers Association series) definitely is off the records of late 2004, but the series still is within the range of the last 18 months and recent declines may be partly weather related.

Our forecasts for the economy and the financial market environment paint a friendly picture for housing in 2005 and 2006. We’re showing modest (3%-4%) declines in home sales and housing starts in both years, countered to some degree by persistent growth in residential remodeling and an evolving upswing in manufactured home shipments. The balance of forces generates slight declines in the housing production component of GDP (residential fixed investment) over the next five to six quarters, following positive growth during the past several years (including the first quarter of this year).

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 March 9 edition. To subcribe to “Eye on the Economy,” click here.

"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:

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

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.

Attend the 2005 Seniors Housing Symposium

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.

Sonkin, who has launched J.D. Power and Associates customer satisfaction surveys for airlines, rental car companies and hotels, 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.

The symposium will 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.

Multifamily Builders Back Homeownership Tax Credit

Multifamily developers with extensive experience producing affordable rental apartments using the Low Income Housing Tax Credit (LIHTC) program have voiced support for the enactment of the proposed Homeownership Tax Credit (HOTC), a top legislative priority of NAHB.

NAHB policy supports both the tax credits as two independent and viable tax programs that are needed to foster the creation of affordable rental and homeownership opportunities across the country.

The Homeownership Tax Credit is designed to boost the availability of quality housing and homeownership opportunities in distressed neighborhoods that are generally located in Census tracts where average incomes are not more than 80% of area median income and residents would be unable to afford the market value of newly constructed or renovated homes.

The homeownership credit would lower construction costs by providing a tax credit equal to the present value of 50% of the eligible basis of a qualified residence. Detached single-family homes, row houses, condos, co-ops and manufactured homes would all qualify for the credit. The goal is to produce 50,000 new and rehabilitated homes annually with the credit.

“Multifamily developers are supportive of the Homeownership Tax Credit,” said Bob Nielsen, president of Shelter Properties in Reno, Nev., and a member of NAHB’s Housing Credit Group, the specialty membership group within NAHB Multifamily that serves LIHTC developers, owners, managers and investors. “The tax credit program has been the primary catalyst for affordable rental housing in this country for almost two decades,” he said. “The Housing Credit Group is confident that the HOTC will be just as effective in producing for-sale homes that are affordable to America’s working families.”

Although the HOTC is modeled on the Low Income Housing Tax Credit, it does have some fundamental differences. In contrast to the LIHTC, which is paid out over a 10-year period, the HOTC is paid out over a five-year period to the developer or to investors who purchase the credit from the developer. Once the home is sold to a qualified buyer, only that buyer would be subject to a possible recapture or loss of tax benefits if the property is sold or converted to a rental property during a required holding period.

As a result of these differences between the credits, there is more risk associated with investments in the LIHTC than the HOTC. Rates of return are expected to reflect the risk differences.

The congressional Joint Tax Committee estimates that the HOTC will have a substantial impact on federal tax revenues, with a projected tax revenue loss of $16.4 billion over 10 years. However, NAHB calculates that the 50,000 new and rehabilitated homes produced annually under the credit would generate $2 billion of private equity investment and $6 billion in total investment and produce an estimated 122,400 jobs, $4 billion in wages and $2 billion in taxes and fees. More than half of the jobs (66,150) would be in industries other than construction.

During the last Congress, there was widespread support for the HOTC. More than 300 members of the House of Representatives cosponsored the proposal. In the Senate, 54 Senators sponsored the legislation, which was introduced in three different bills. The Administration also has consistently supported creating a credit, as indicated in its budget proposals.

The credit is expected to get renewed consideration in the new Congress, along with other tax proposals.

Attend the NAHB Multifamily Pillars of the Industry Conference, the premier industry event for the multifamily industry, on April 3-6 in Miami, Fla. Pillars sessions were developed by multifamily executives for multifamily executives. To register or for more information, click here.

Network — Because No Remodeler Is an Island

You already know this truism backward and forward, don’t you? Belonging to an association gives you the value and benefits of networking.

But let’s go a step further because networking does not stop with association meetings. In fact, I don’t think networking should stop, period. At least not when you’re in business for yourself.

I liken networking to the concept behind shopping malls. When people go shopping, they want to do it as quickly and efficiently as possible, so they go to a mall where they can shop many stores and meet many needs in one location.

Networking, for remodelers, is similar. We want to do it as quickly and efficiently as possible. We only have so much time in a day. Luckily, there are many related businesses that can help you — and that you can help in return. When you network with a business that is mutually beneficial, you can cultivate a relationship that gets results.

Building relationships within and outside of your association is key to building your business. So look to groups or businesses that target similar demographics or that market in the same media.

Realtors® are one group that comes to mind. Fiercely independent ― yes. But if they can provide their clients with a resource that can give them more business, they will develop and promote the necessary relationships to do it. So why not be that resource who will be there for a Realtor® when a client need arises?

Dakota Builders has made solid contacts with more than 420 real estate-related businesses among our more than 1,700 business contacts. Because we have instructional qualifications, we offer our contacts business-focused courses that can help them grow their businesses.

You might also want to consider contacting your local American Society of Interior Designers (ASID) chapter. Or cultivate contacts in your local media — newspapers magazines, etc.

Your trade partners, suppliers and vendors work with buyers and customers whose needs extend beyond their (vendor, trade) capacities. Partnering and networking with them will help them fill some gaps and bring you business.

Some of the things you can do include pooling resources and conducting direct mail campaigns, producing newsletters or sharing a home show presence. And you don’t have to limit these types of activities to trade partners, either.

And while we’re at it, let’s break from the “remodelers vs. builders” mentality and realize that we can share resources and references, too.

It’s probably worth remembering, though, that you’re never going to be everyone’s best referral source or best customer. In that regard, you’re best bet is to be a good source/resource to a select few rather than to be a poor or unreliable source to a large number of customers.

You’ll need to do some work to identify where best to expend your time and energies to make those relationships pay off for you, but the effort will be worth it.

Through our local HBA, we also have established beneficial relationships with production builders as well as custom builders who do not want to venture into remodeling. We are able to place stacks of newsletters in several vendors’ showrooms, business cards in others and some of them now sponsor our newsletter.

So the next time you attend a trade show, home show, real estate expo or similar event, make it more than just a fly-by or recreational diversion. Investigate it as a potential opportunity to build business relationships. You will add to your referral base and in many cases make referral-based sales.

Yes, I know, we all want to say our business is all referral anyway and that we’re too busy for more. But are we really? By building a stronger referral base through expanded networking, you’ll have a higher number of qualified leads, be in a better position to choose the clientele you want to work with and be more selective about the type of work you want to do. More work — with less effort.

So, bottom line, networking should not be limited to your HBA or Remodelors™ Council. Networking is a business thing.

Greg Miedema, CGR, CAPS, is president of Dakota Builders in Tucson, Ariz. He is chair and founder of his local Remodelors™ Council, a member of the NAHB Remodelors™ Council Board of Trustees and currently serves as the chairman of the Remodelors™ Council Public Affairs Committee. The Southern Arizona Home Builders Association (SAHBA) has named Dakota Builders, Inc. Remodelor™ of the Year in 1998, 1999, 2000 and 2003. For more information, send him an e-mail.

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.

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.

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.

Concrete Tour Mixes Demos, Networking, Six Plant Visits

A new annual offering from NAHB’s Concrete Home Building Council, the Concrete Technologies Tour shows attendees the basics of residential and light commercial concrete.

The three-day event also includes a golf tournament at the St. Andrews Golf Club and several receptions.

For more information or to register for the Concrete Technologies Tour, visit www.nahb.org/concretetour or contact the Concrete Home Building Council at 800-368-5242 x8362.

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.

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.

Technical Report Looks at Sound Transmission and Log Walls

A recently published “Tech Note” from the Technical Committee of the Log Homes Council, “Sound Transmission & Log Walls,” explores the sound transmission properties of solid log walls and examines possible construction and lifestyle considerations to reduce the amount of noise in a log home.

While there are currently no Sound Transmission Class (STC) ratings for solid log walls, the ratings of conventional construction that have been published typically show that stiff finish surface, interior buffers and wall mass are factors in reducing sound transmission. The committee concluded that it would be improper to imply an STC rating for solid log walls without actual test results, although it is hard to deny that that the density of log walls limits sound transmission.

The one-page report notes that quality construction is the best prevention for noise leaks. Landscaping techniques such as earth berms and tall or dense foliage can be barriers to outside noise. Among recommended construction techniques that will reduce sound transmission in solid log wall structures:

Log home buyers and owners can help reduce sound transmission by using hard surfaces — such as log walls, wood floors and glazing — to reflect voices and music, and using softer or textured surfaces to absorb sound using obstacles to disperse it. Options include:

For more information, e-mail Eric Fulton at NAHB, or call him at 800-368-5242 x8577.

Speakers, Presentations Sought on Systems-Built Housing

NAHB’s Building Systems Councils (BSC) is looking for speakers and educational seminars for SHOWCASE, which will be held Nov. 6-9 at the Sheraton New Orleans.

The BSC is an umbrella organization that represents the manufacturers, builders and vendors of the concrete, log, modular and panelized home building industry. For information about the show and the request for proposals, click here.

Although the BSC is especially interested in presentations on specific topics, all proposals will be considered by the SHOWCASE planning committee. The BSC is also seeking keynote speakers for the conference.

For more information about the BSC, the building systems industry, or SHOWCASE, click here or call 800-368-5242 x8676.

Challenging Seattle Site Yields Affordable Condos

Developers in Seattle overcame the challenge of a steep, triangular site to provide housing for working families and individuals that would otherwise have been priced out of the city’s hot housing market.

The Stellina, a 34-unit condominium project, was one of six winners of NAHB’s Innovations in Workforce Housing Awards, announced in January during the International Builders' Show in Orlando. The developer is Seattle-based HomeSight.

The development is located in the city’s Jackson Place Community and is within walking distance of Seattle’s downtown “free ride zone.” The design team was able to make maximum use of the challenging 45,500 square-foot lot.

By partnering with the city, HomeSight was able to secure a 10-year property tax exemption on all improvements to the property and these tax savings were passed on to consumers.

“The team approach provided a venue for agreeing upon task lists, scheduling coordination and job completion, as well as consistency and accountability,” said Uche Okezie of HomeSight. “The common understanding of goals and solutions prior to design and submittal meant both design and review periods were expedited and progressed smoothly,” she said.

In addition to the challenging topography, the developer also had to deal with the five-foot-diameter, 68-year-old Cedar River water main running alongside the property. HomeSight transferred to the City of Seattle a 14-inch-wide strip of land along the water main.

HomeSight worked closely with the Jackson Place Community Council in the planning and design stages.

The 34 condo units are organized into three smaller buildings of eight units each and one larger building of 10 units. The design team made use of the sloping site to put the parking garage under the buildings.

“It took a lot of creativity to make this project a success, and that’s what the Innovation in Workforce Housing Awards are all about,” said Bobby Rayburn, immediate past president of NAHB. “It’s exciting to see builders find 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; e-mail Kym Kilbourne at NAHB or call her at 800-368-5242 x8447.

Get Floor Plans Reviewed at NAHB/BALA Design Conference

Participating builders can have their floor plans critiqued by some of the country’s top architects during the NAHB/BALA Design Institute for Builders design conference from June 13-15 at the Westin Tabor Center in Denver.

To participate, floor plans must be submitted to Michelle Persinger Matuga via e-mail by Saturday, April 16. For more information, visit the plan reviews section of the NAHB/BALA Web site.

The conference will feature world-class speakers including: Daniel Nahabedian, formerly of The Irvine Development Company and John Laing Homes; Heather McCune, editor-in-chief of Professional Builder magazine; Cheri Meyn , president of The Genesis Group; and Howard Englander, president of The Englander Company.

The conference will include discussions about the latest in residential housing design trends; tours of award-winning homes and communities displaying cutting-edge architectural design; and opportunities to learn how to profitably apply these design ideas to the homes you build.

For more information or to register for the Design Institute conference, click here.

NAHB's Land Development Magazine Wins PIVA Award

Land Development magazine earned first place in the “Best in Print” competition by the Printing Industries of Virginia (PIVA). The award went to the magazine’s 2004 summer issue. The magazine is produced by the NAHB Land Development Department.

The PIVA competition has 37 categories, and entries are judged for excellence in layout, litho preparation, printing and binding.

Good Printers, Inc., of Bridgewater, Va., which prints Land Development, won 11 first place awards and 85 awards of excellence. Bonotom Studio, Inc., of Arlington, Va, provides the design and layout for Land Development.

“We are honored to receive a PIVA award and also congratulate Good Printers and Bonotom Studio for their continued excellent work on Land Development,” said Michelle Persinger Matuga, managing editor of Land Development.

For more information on Land Development, to subscribe, advertise or contribute an article, click here.

Be Thorough When Planning Your Grand Opening

Advertisements and public relations articles help create awareness, but a grand opening puts you directly in touch with your specific audience.

And in this venue, the more that people are able to see and talk to each other about a given product, the easier it is for you to sell it because benefits are easier to highlight and objections are easier to refute.

When should you hold a grand opening? The simple answer is ― only after your product or community has been built and prepared to your satisfaction. Plan to offer your product for display when it is sellable or when people will have the most favorable impression of it.

Begin planning your grand opening a minimum of two months before the event. Preparation takes time and, while putting together a grand opening is not difficult, a successful event does require many different factors to come together satisfactorily. Start by ensuring that you have uniform control over the development process.

When making your preparations, be sure to work with companies that have proven track records. The success of your event will depend upon them. Remember, many of your peers and, more importantly, prospective buyers, will judge you by the success of your event.

During your intial planning, be sure select a caterer and menu, the wait staff, parking attendants, port-o-johns, flowers, signage, guest book, plaques, presentations during the event and, of course, party favors.

You should have one — and only one ― coordinator to direct all facets of the event. Having too many people in charge leads to more chances for mistakes. In addition, a single coordinator can handle the accounting and ensure that your subcontractors will get paid promptly — which means happier subcontractors and a better chance of success for your event.

Don’t overlook the importance of location when planning your grand opening. After ensuring when your product will be ready and sellable, pick the location and plan that you want to show. Then review traffic flow (cars) and parking as well as traffic flow (people) through your event and model.

Some days of the week are better suited for a party than others. When choosing the day and time, it’s especially important to consider your target group’s lifestyle or work schedule. For example, you probably don’t want to schedule a promotional event for real estate agents on a Monday morning because that’s when they usually meet with clients to solidify their weekend transactions.

It is equally important not to compete directly with any other major events in your area such as high school sporting events, entertainment events or competing grand openings.

The next item on the checklist is your guest list. Who should you invite? Simple, again. Invite those people whose appearance can help you sell your homes and, of course, those who are interested in buying.

Once the guest list has been prepared, create a tracking system for the guests to get an accurate count of how many people you can expect to attend. Track the letters sent, telephone calls, RSVPs, everything. The more accurate your tracking, the more accurate your attendance count for the event.

The copy should be direct, to the point and simple. Include the date, time, place, dress code (if applicable), RSVP and a contact person. If possible, include a map.

Mail your invitation two or three weeks prior to the event. Do not send it out bulk mail. Send it first class so you know it will get there.

Create and prepare brochures and other related marketing materials about your property. The material should be complimentary and project a consistent “brand.” Be sure to have displays (plat maps, blueprints, elevations, etc.) prepared that will help consumers understand what you are offering, too.

Don’t forget to contact your local police once your guest list has been prepared. They will help traffic flow through the neighborhood adjacent to your property.

They may request that you hire off-duty policemen for the event. Don’t balk at this. It won’t be too expensive and it’s worth the investment.

Contract a photographer and make sure that he or she is at the site at least half an hour early and stays throughout the program. Plan to use the photographs with press releases of the event, as gifts to business associates or clients and in future marketing materials. Consequently, have the photographer ready to distribute the necessary release forms.

Adequate, hassle-fee parking goes a long way toward reinforcing a successful event. Consider hiring parking attendants for a touch of class.

Once the invitations have been mailed, have a telephone solicitation squad ready to call guests for an immediate RSVP and to keep records of the people invited to your event. By calling guests, you’ll generate attention for the event and create awareness for your community.

Prepare individual name tags, have a guest book or hostess onsite to register your guests. Your entire staff should review the list of attendees and prepare to visit with your guests.

There is no getting around it. This will be a hectic day no matter how carefully you have planned and followed through with everything. Arrive early and make sure everything is clean, presentable and appealing. Set up for the event six to eight hours in advance in order to minimize any last minute problems that may arise.

Be sure your staff is dressed appropriately for the event and that they spend time with the guests rather than each other.

Treat those in attendance as if they are guests in your home. Make sure they are “happy, well-fed, well-beveraged and well informed.” Give them a memento when they leave, and try to see them to the door.

After the event, meet with your staff to get feedback as quickly as possible. If your staff has heard any complaints, correct them. Finally, use the time post event to contact everyone you invited ― those who attended and those who could not be there ― to update them about the event and generate some excitement about your product. Contacting them after the event is another gives you another fresh opportunity to sell your product.

S. Robert August, MIRM, is president and founder of S.Robert August & Company, Inc., a national marketing and public relations firm based in Denver that specializes in providing home builders, developers, manufacturers and lenders marketing/management consultation and sales training. August is the owner of Colorado-based RealtyWorks, Inc. a real estate brokerage company. He is also past chairman of NAHB’s National Sales and Marketing Council and the only person to receive the prestigious Bill Molester Award twice. For more information, contact August by phone at 303-220-8480 or via e-mail.

For additional cutting-edge sales and marketing information, subscribe to NAHB’s 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.

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]

Coaching Is the Name of the Game

Among successful women, the conversation often turns to a discussion of people who have helped them along the road to success. Call them coaches, mentors or advisors, almost every successful man or woman can name at least one person who took the time to help them polish their skills, round off the rough corners or just simply listen.

With today’s fast-paced life, it is important to remember our responsibility to serve as role models for those who follow in our footsteps, and to take the time to listen and help where we can. Often it’s just a simple conversation here and there dealing with specific problems, but occasionally we have the opportunity to step into the role of coach or mentor.

Fast becoming a fixture of the business world, corporate “coaches” make a career of working with key managers to help them acquire the skills they might need for an upward career move; working with people to change abrasive behavioral styles; or helping transition teams during business mergers.

The situations that call for “coaches” are as varied as the companies that use them. Far from being just another buzzword, coaching or mentoring has become an important tool in corporate leadership training.

Coaching or mentoring is nothing new; in fact, its origins are based in ancient mythology when Mentor was charged with educating and safeguarding Odysseus’s son, Telemachus, while his father was on his long journey. The role of the mentor has only grown stronger through the centuries, and today’s dictionary defines a mentor as “a wise and trusted counselor or teacher.”

In our competitive environment, mentoring can give tomorrow’s leaders a better chance of success by providing them with the wisdom and experience of those further up the corporate ladder. However, mentoring is not always a senior/junior partnership. At some progressive companies the tables have been turned, and younger workers are providing their senior colleagues with the benefit of their advanced technological expertise.

So what is mentoring and what can it achieve? When is it appropriate and what can realistically be expected from a mentoring program?

“Formal or planned mentoring is not appropriate for teaching basic skills, solving perceived or actual discrimination problems or overcoming organizational problems such as inadequate hiring practices or understaffing,” according to Dr. Linda Phillips-Jones, a leading authority on mentoring and the author of “The New Mentors and Proteges.”

On the other hand, “Mentoring can be useful for orienting new employees; helping newly promoted individuals learn new roles and responsibilities; developing managers and other leaders; and assisting minority group members and women in professional development,” she says.

In today’s multicultural society, coaching programs often address cultural issues in the workplace and assist companies in developing an atmosphere of tolerance and mutual respect. While fairness and tolerance may be mandated by law, in actual fact professional help may be needed to resolve issues in toxic situations.

Another benefit of mentoring, whether formal or informal, is cross-training employees in new skill areas and exposing students and others to various career fields and advanced educational opportunities, according to Philips-Jones.

In the past, the approach to mentoring was hit-or-miss and the partnership developed almost by chance. This was frequently a prescription for failure, when the individuals did not define their relationships and their needs, or were not sensitive to the common courtesies that are required for successful interaction.

Becoming a mentor or a protégé requires commitment and effort, but the results can be highly rewarding for both parties. Sometimes it is even possible to be a mentor to someone while remaining a protégé of another.

In the “old days,” many companies used a structured advancement path or a “learn by watching” approach in their apprenticeship programs. But in today’s busy workplace where people are expected to demonstrate their productivity quickly, there simply isn’t time for these approaches. A mentor who can help by supplying the benefit of his or her experience in an informal way is a plus in this environment.

The recent spate of downsizing also has eliminated many middle managers who provide a source of counseling and advice to help others develop their potential.

The benefits of mentoring are many, and the process helps not only those who are directly involved, but the participating organizations as well. Companies report faster integration of new employees, more commitment and loyalty, greater enthusiasm and greater visibility in the community.

Successful women in the building business have an even greater responsibility than their counterparts in many other industries. Because there are fewer role models available for women in construction, we must all do our part to help others achieve success in their profession.

Don’t make the mistake of thinking that you can only coach someone if you have an advanced degree or are in a high-level position. Coaching is just as much about teaching the value of life experiences and lessons learned at all levels, as it is about imparting formal knowledge.

Be open to helping people and look around for opportunities to provide a helping hand or a word of advice. You will find the rewards of watching those you coach become more successful well worth the time invested.

Lee Terry is the immediate past chairman of the NAHB Women’s Council Board of Trustees and president of Lee Terry & Associates, Inc., an executive search firm for the home building industry. Terry was honored as the 2003 NAHB Associate of the Year. She can be reached by e-mail, or call her at 650-570-7913.

HBI Trustees Visit Project CRAFT in Dallas

Members of the Board of Trustees of the Home Builders Institute (HBI), the workforce development arm of NAHB, traveled to Dallas last week to hold their annual planning meeting and visit Project CRAFT/Dallas.

Trustees had the opportunity to observe a typical day at the Dallas CRAFT (Community Restitution, Apprenticeship-Focused Training) site on the campus of the Dallas County Youth Village, where the program trains 16- to 18-year-olds.

Prior to the tour, the trustees heard students discuss the program, their future plans and their recent training activities in the community. Students last month used their skills to help replace 20-year-old carpet and 60-year-old tile at the Southeast Dallas Food Center.

Efforts by Bob Morris, executive vice president of the Home Builders Association of Greater Dallas, and his staff have brought media attention to the students’ work at the Food Center. In recent weeks, stories by local networks and the national FoxNews and Univision have featured Project CRAFT and its role in preparing youths for jobs in the industry while they assist in community projects.

“We are excited about the accomplishments of Project CRAFT here in Dallas and are confident that these students will make great contributions to our industry one day,” said Sandy Dunn, NAHB vice president/secretary and an HBI Trustee.

Funded by Work Source for Dallas County, and under an agreement with SER-Jobs for Progress, HBI and Project CRAFT/Dallas continue to provide youths in the area with employment opportunities while simultaneously strengthening the construction industry’s workforce.

Much of Project CRAFT’s success stems from its strong ties to the construction industry through HBI, NAHB and the HBA of Greater Dallas. Association members such as Jim Higginbotham of J & C Custom Homes have given of their time and shared their years of industry experience to help Project CRAFT students. An ardent program supporter, Higginbotham was the first person to serve on the advisory board of CRAFT-Dallas, and he continues to work with instructors to enhance project operations.

Project CRAFT, a congressionally-recognized model for rehabilitating adjudicated youths and reducing their recidivism, aims to help troubled adolescents rebuild their lives while they learn the skills necessary for employment in the construction industry.

Nationally, CRAFT graduates enjoy an 85% employment rate with an average hourly starting wage of $8.58.

For more information about Project CRAFT/Dallas, e-mail John Hattery at HBI, or call him at 800-795-7955 x8916.

Michael Graves Kitchen Faucets Win Design Award

Founded in 1950 in Chicago by Edgar Kaufmann and many of the pioneering greats of American and modern design, the GOOD DESIGN program recognizes design-driven products that successfully incorporate a high level of functionality.

Delta Faucet’s award-winning Michael Graves collection includes three single-handle kitchen faucet options: a deck mount faucet, a high-arc faucet and a bar/prep faucet.

Each kitchen faucet in the collection comes standard with a pivoting aerator. With a simple twist, the aerator can operate as spray or stream. The aerator also features Delta’s Touch-Clean spray face, which is comprised of soft, rubber nubs that are easily cleaned by the tip of a finger, preventing lime and calcium from building up.

The faucets are available with an optional soap/lotion dispenser and vegetable sprayer. Lever handles are generously sized and ergonomically designed to fit perfectly in the user's hand.

A model of the Michael Graves high-arc kitchen faucet will be exhibited at the Chicago Athenaeum this summer, after which it will become part of the museum’s permanent design collection.

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.

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.

Silicon Valley Home Prices Suprass $700,000

According to the Bay Area Real Estate Market Newsletter compiled by Richard Calhoun, the median price of single-family detached homes and condos in Santa Clara County, Calif. — considered the heart of Silicon Valley — both rose $41,000 in February, driven by first-time home buyers out to beat the spring rush and profit-taking move-up buyers. The median price of a condo was $451,000, up $100,000 over a year earlier, and single-family homes rose to a record median of $705,000, up $140,000 in a year. Calhoun said on March 8 that in a region of 1.5 million people, there were only three single-family detached homes on the market priced under $400,000 and about 66% of the homes were selling for more than the asking price, on average, 3.6% more. Lenders are so confident about the market, says mortgage broker Brandon Knapp of Lawson & Associates Mortgage Planners in Campbell, Calif., that “they are allowing debt-to-income ratios of 55%. Lenders are accommodating the cost of housing because they feel it’s a great investment.” (www.realtytimes.com)
Realty Times (3/9/05); Broderick Perkins

House Rules: No Restrictions; For One Family; Universal Design Opens Doors Once Closed

In planning for the construction of a new home in Washington, D.C., a modern appearance was important for Lewis and Tamara Kessler, but of even more paramount concern were universal design features. One of their twin daughters was born with cerebral palsy and uses a wheelchair or walker to move around. From a list of universal features from the Center for Universal Design at North Carolina State University in Raleigh, the Kesslers decided they couldn’t live without: a subtly graded ramp to the front door; an open plan on the main floor with space in each room to accommodate full radial wheelchair turns; extra-wide doorways with flush thresholds; grab bars in the showers; wheel-under sinks and work stations; and an elevator large enough for a wheelchair and one other person and with access to every floor. Other features include bathroom faucets turned on and off with infrared sensors or placed close to the counter edge; a curbless shower; a movable wand showerhead at arm level; sturdy gates at the top of each stairwell; and kitchen appliances built close to the ground. The final cost of building the 3,000-square-foot house, not including architect’s fees and the lot, came to $540,000 or $180 a square foot. According to Alexandria, Va., architect Robert Gurney, the biggest challenge wasn’t integrating universal design into his plan. It was trying to build a house on a 50-foot-wide lot and include a 75-foot long pool. (www.washingtonpost.com)
Washington Post (3/10/05); Jeff Turrentine

Future Real Estate Markets Shed Some Mystery

A new monthly Pending Home Sales Index from the National Association of Realtors® will provide national and regional information that can be used to predict existing-home sales a month or two ahead. The index will compile pending single-family home, condominium and co-op sales data from more than 100 Multiple Listing Services and 60 large brokers, which represent about 20% of all real estate transactions. More than 80% of all pending home sales go to settlement within one or two months, and most of the others go to closing within three to four months, according to the association. Only 2% of pending transactions don’t result in completed sales. NAHB Chief Economist David Seiders said that the new index “is a welcome addition to the housing data system. Right now, we are not sure how we would use this series but we will continue to analyze its value to our members.” (www.inman.com)
Inman News (3/10/05); Glenn Roberts Jr.

Condo Fever Reaches New Heights in Miami

In Miami-Dade County, Fla., 48,000 condominiums — including condo-hotel units — had been proposed, planned or were under construction at the start of this year, according to the South Florida office of Integra Realty Resources. What is likely to happen, if the area’s condo bubble does burst, is that projects will be finished and buyers will close, but the buyers may not be the same people who originally put down deposits because some contracts will be flipped before closing, said Carlos Berner, president of JBM Capital Advisors in Miami. As many as 25% of the units that are planned probably will not be built, says Jack Winston, a residential real estate analyst at Goodkin Consulting in Miami, for one reason because construction costs are too high; they rose 12%-17% in the last 12 months. Berner says there is an oversupply of high-end units selling for $400,000 and up and a need for more affordable units priced below $250,000. Complicating the picture for Miami’s condo market are the Latin Americans and Europeans who have been buying the city’s apartments as second homes. (www.nreionline.com)
National Real Estate Investor (3/1/05); Hortense Leon

Eco-Radicals Target Growth in Sierra Hills

Auburn, Calif., a quaint Gold Rush town in the Sierra foothills on the way to Lake Tahoe, along with fast-growing communities nearby, has attracted the attention of the Earth Liberation Front in the last three months. In December, crude incendiary devices were found in three houses being built at a luxury subdivision in Lincoln, along with graffiti that read, “Enjoy the world as is — as long as you can.” In January, five more devices were found at a commercial building under construction in Auburn. And last month, a newly built apartment complex in Sutter Creek was targeted, but a sprinkler system rendered most of the incendiary devices useless before they went off. While ELF has been tough to crack because its members operate in autonomous cells and are savvy about technology, surveillance and forensics, a 21-year-old resident of Newcastle has been indicted in all three incidents and denied bail. He lives with his parents on a 17-acre mandarin orange orchard. (www.mercurynews.com)
San Diego Mercury News (3/9/05); Dana Hull

Battle Brews Over Rise of Studio Digs

Nine complexes totaling nearly 500 units of market-rate “nano-studios” with 350 square feet or less of living space are under construction or seeking city approval in San Francisco, but the city supervisor and others say the single room occupancy units should be available solely for low- or very-low income residents. The city’s planning commission has been considering a proposal that would limit availability of the units to individuals earning no more than $39,600 a year. One of the developers wants to charge rents of $750-$1,000 for his complex and another is hoping to sell his mini-homes for $300,000 and less, waiting to see what the market will bear. Under current law, 10%-12% of all new SRO complexes with 10 or more units must be reserved for median-income residents earning around $47,000 annually. (www.bizjournals.com)
San Francisco Business Times (2/7/05); Lizette Wilson

Eminent Domain Has Two Issues

York County Commissioners in Pennslyvania voted two to one in May to take the property of developer Peter Alecxih Jr. for a proposed park, the Susquehanna Riverlands Preservation Project. Alecxih has objected because he has plans to build 51 homes on the land, arguing that the government’s need for his property isn’t compelling enough to justify acquiring it through eminent domain. He also says he will never get the same kind of money from government compensation as he would have received from developing the land as he originally planned. He says his land is worth $13 million. Mary Lynn Pickel, director of legislative services for NAHB, wouldn’t comment specifically on the dispute, but she said that disputes over eminent domain come down to two basic issues: whether the public necessity is compelling enough or whether the property owner is being compensated what the property is worth. The majority of disputes by far involve the latter issue, but the issue of what constitutes public necessity can be tricky. There is legal precedent for taking land in order to build a public park. (www.ydr.com)
York Daily Record/Sunday News (3/8/05); Tom Joyce

Adjustables Lose Their Edge

The spread between fixed and adjustable mortgage rates is narrowing fast and is roughly only half of what it was a few months ago, according to Freddie Mac, prompting lenders to once again offer ever larger discounts to encourage borrowers to consider ARMs. In January, lenders were offering discounts of 1.5 percentage points, compared to 0.36% a year earlier. Since 1984, the average has been 1.7 points, but there have been times when write-downs have been two or three points. Ongoing efforts of the Federal Reserve Board to raise interest rates since last June have had a greater effect on the short-term rates than long- and medium-term loans with fixed rates and payments, which last year accounted for nearly two-thirds of all conventional home-purchase loans. Even discounted adjustable-rate mortgages aren’t much of a bargain these days and they can lead in as early as one year to higher monthly payments than those on a fixed-rate loan. (www.latimes.com)
Los Angeles Times (3/6/05); Lew Sichelman

Remodeling Can Put Trees in Tight Spot; Arborists Can Help Owners Preserve Valuable Assets

Home owners in Arlington, Va., who wanted to add on to the back of their home without disturbing a towering oak less than eight feet behind their house decided to push out the back wall by three feet to support another bedroom upstairs over a roomier kitchen. After consulting with a tree expert, the remodeler set the kitchen bump-out on piers rather than on a solid foundation. The holes for the piers were dug by hand and were unevenly spaced to avoid damaging large roots, and a beam was doubled up to compensate for the uneven spacing. Cutting roots, compacting soil and damaging tree bark are the three things to be avoided during construction, according to Lew Bloch, a certified arborist and president of Bloch Consulting Group LLC in Potomac. Md. Building a new foundation by digging a continuous trench through a tree’s roots is asking for trouble, Bloch said. “A better methodology is to insert piers through the root system and then bridge those with steel I-beams.” According to NAHB, a landscaped home commands a higher price than a barren lot, as much as 15% more. www.washingtonpost.com
Washington Post (2/5/05); Lois M. Baron

Who Are You in Bed With?

The title question is figurative of course — it’s none of my beeswax who you are literally in bed with. But I may care a great deal about your business alliances if we’re to work together.

Case in point: a land holding partnership wants to sell a certain multimillion dollar property which is slated for development. Two development companies (we’ll call them Suitor A and Suitor B) want to buy it. Each suitor has a copy of a recent appraisal and thus submits nearly identical offers. Now the sellers must decide who gets the deal. In this case the sale goes to Suitor B, solely because Suitor A was sympathetic to a certain political cause and was publicly vocal about it. It just happened that one of the selling partners strongly opposed that cause.

Suitor A lost the deal because they were in bed with a certain advocacy group. I’ve also seen deals (and not just land deals — this includes construction contracts) that were lost because bed partners included:

Here’s another example. An architect designs a house and considers who to hire for the structural engineering. She has worked with Engineer A before, likes him and wants to hire him for the job. So she grabs the phone book and looks him up. She is dismayed to find that he has joined forces with a certain surveying company as their in-house engineer. She’s had a bad experience with those surveyors, and figures anyone associated with them is probably of the same ilk. Convinced she’s misjudged Engineer A, she hires Engineer B.

It’s the same with general contractors and subcontractors. The reputation of your bed partners becomes your reputation.

What is the solution? I suggest not crawling into bed with any single company or affiliate, unless you’re ready and willing to inherit their legacy. Rather, let it be known that while you may suggest or recommend certain associates, subs, etc., you are not married to any of them.

In the case of political affiliations, if you contribute to any, it is generally advisable to keep that information under your hat. Your next potential client could easily be on the other side of the fence.

To summarize, you never know what motivates potential clients. It’s hard enough making it on your own — don’t let bed partners spoil your deals.

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.

Rockingham, N.C., Builders Change Local Resident's Life

In the Sandhills of North Carolina, a place where everyone knows each other, the 40 builder and associate members making up the Richmond County Home Builders Association are recognized throughout the community for their dedication to helping people in need.

Some of the association’s most notable charitable efforts have been focused on Jerry “Punky” Martin, a 33-year-old who was born with muscular dystrophy and can usually be found at the local Lowe’s Home Improvement Warehouse, Winn Dixie, Food Lion and other stores collecting donations for research on his disease.

In the spring of 2003, when that year’s association president, Mike Ussery and his brother, Pete, visited Punky at home, they found that he had outgrown the one-room handicapped-accessible addition the local builders had attached to his mother’s mobile home almost two decades earlier.

“When Pete and I saw the circumstances he had with the room addition, it was obvious that we had to help out in some way,” said Ussery. “His mother literally could not get him out of the bed unless someone came to assist her. We realized that he needed a room with a lift and the mobile home would not allow it.”

Ussery went back to the Richmond County HBA and told the members that he wanted to build a house for Punky. “We did not have any money, but we had the will, the know-how and the contacts to make this happen,” said Ussery. “There were going to be a whole lot of prayers too.”

In just four months, members of the HBA and their subcontractors — some 50-60 volunteers in all — built a 1,360-square-foot, fully handicapped-accessible home with a new washer, dryer, bed and sofa set.

“They cleared the lot, dug the footing, laid the brick, poured the concrete — everything,” said Ussery. “No one ever asked where the money was coming from and no one asked anything about getting paid.”

In addition to completing Punky’s house, the HBA also contributed $2,000 to the Roberdel Children’s Center, a public school serving Richmond County’s most severely physically and mentally handicapped children.

At the end of last year, the association had another surprise in store for Punky. Through a “Friends of Punky Martin Van Fund” set up at a local bank, Rockingham, N.C., citizens and local clubs were able to make contributions to purchase a handicapped-accessible van.

“The need for the van was quite clear,” said Ussery, who has spearheaded the projects for Punky. “For Punky to get from place to place, two thin metal ramps had to be set up, at a steep angle, into the Astro mini-van that his mother had purchased 13 years ago. It was very dangerous. One slip and Punky could have been seriously injured. He also had to be in the correct angle to fit through the door. It was also very uncomfortable for Punky to travel in the van because the height of the mini-van was too low and his head would rub on the roof.”

Punky and his mother, Kathy, received the keys to an Econoline van in a surprise presentation during a “larger than usual” membership meeting last November.

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.

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

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.

Get GM Discount on More Than 80 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.

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 14, 2005

Guide Promotes Safe Practices for Working With Concrete

Leaders in Congress, HUD Urged to Adopt Strong Housing Agenda

Justice Launching Forum on Accessibility Compliance

NAHB Is Your Business Partner

Builders to Carry Storm Water, ESA Concerns to Capitol Hill

Senate-Passed Bill Stops Tenant, Home Owner Bankruptcy Abuse

OSHA Reform Package Would Enhance Worker Safety

Population Along U.S. Coasts Continues to Grow

Eye on the Economy

Attend the 2005 Seniors Housing Symposium

Multifamily Builders Back Homeownership Tax Credit

Network — Because No Remodeler Is an Island

Concrete Tour Mixes Demos, Networking, Six Plant Visits

Education Calendar

Technical Report Looks at Sound Transmission and Log Walls

Speakers, Presentations Sought on Systems-Built Housing

Challenging Seattle Site Yields Affordable Condos

Get Floor Plans Reviewed at NAHB/BALA Design Conference

NAHB's Land Development Magazine Wins PIVA Award

Be Thorough When Planning Your Grand Opening

Builders' Tip: Fitting Stair Treads

Coaching Is the Name of the Game

HBI Trustees Visit Project CRAFT in Dallas

Michael Graves Kitchen Faucets Win Design Award

Silicon Valley Home Prices Suprass $700,000

House Rules: No Restrictions; For One Family; Universal Design Opens Doors Once Closed

Future Real Estate Markets Shed Some Mystery

Condo Fever Reaches New Heights in Miami

Eco-Radicals Target Growth in Sierra Hills

Battle Brews Over Rise of Studio Digs

Eminent Domain Has Two Issues

Adjustables Lose Their Edge

Remodeling Can Put Trees in Tight Spot; Arborists Can Help Owners Preserve Valuable Assets

Who Are You in Bed With?

Rockingham, N.C., Builders Change Local Resident's Life

NAHB Spring Board Meeting Set for April 11-17

Robson Seeks Office of NAHB Vice President and Secretary

Get GM Discount on More Than 80 Vehicles

Help Tsunami Survivors Rebuild Their Homes

Subscribe Your Employees to Nation's Building News

Calendar of Events