Print-All Page: October 31, 2005

With the support of the nation’s home builders, the U.S. House of Representatives on Oct. 26 passed legislation that would strengthen the regulation of government-sponsored enterprises (GSEs) Fannie Mae, Freddie Mac and the Federal Home Loan Banks while preserving their vital housing mission.

H.R. 1461, the Federal Housing Finance Reform Act of 2005, was approved by a strongly bipartisan vote of 331 to 90.

Jerry Howard, executive vice president and CEO of NAHB, said that the bill “offers a sound regulatory solution for our secondary market institutions. It would strengthen and safeguard the financial health of Fannie Mae and Freddie Mac while enabling them to continue to fulfill their mission of providing affordable housing credit for millions of working American families.”

In key votes for NAHB and an indication of strong sentiment among House members against proposals that would undermine the nation’s commitment to housing, three anti-housing amendments to the bill were defeated handily:

“This legislation represents a key opportunity to advance GSE regulatory reform,” said Howard. “We urge all members of the Senate to pursue a compromise similar to H.R. 1461 that would address the nation’s housing concerns at the same time as it assures the soundness and safety of institutions that are indispensable to our housing finance system.”

At the time of the House vote, it did not appear likely that the Senate leadership would attempt to move their GSE bill this year.

To read the legislation, click here and enter H.R. 1461 in the box at the upper left.

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

Small Remodelers Good Job Candidates for Big Firms

Juggling the many everyday activities unique to remodeling — from managing trade contractors and dealing with customers to scheduling jobs, meeting a payroll and following a business plan — may not be for everybody in the business, and those who have joined the industry primarily because they enjoy working with their hands are likely to fuel a trend toward consolidation, according to panelists at the 2005 Remodeling Show in Baltimore on Oct. 12-15.

Many remodeling companies don’t get bigger than a couple of hundred thousand dollars in annual revenue, tend to turn over at a high rate, and are propelled by individuals who “get good at their craft and then get a little lost,” said Sal Alfano, editor-in-chief of Remodeling magazine. “Many are one- and two-man outfits, and they will always be there, but they could be challenged down the road” by increasingly difficult regulatory and technological barriers.

Small remodelers who aren’t doing a good job on the business side of their companies, and really aren’t interested in anything but plying their trade, may find an ideal solution by going to work for a large remodeling enterprise, he suggested.

Roughly 10%-12% of remodelers are racking up more than $1 million in annual business today and that segment accounts for 50% of the money that is being spent on remodeling, said Alfano, who was in the business himself for 20 years before going to work for the Journal of Light Construction.

In his assessment of the current state of the industry, Mark Richardson, president of Case Design/Remodeling and Case Handyman Services, noted that there are more than 816,000 remodelers across the nation today. More than 645,000 are self-employed professionals, and there are 171,500 firms with a payroll for whom remodeling accounts for at least 50% of their business. About 60% of the newcomers to the industry can be expected to fail within the first five years. “Nine out of 10 are honest and hardworking,” he said, “but are not very fit businesses.”

Richardson, who expects his company to bring in $46 million in sales this year, noted that the industry represents significant untapped potential for the top 500 U.S. remodelers who currently have a hold on less than 3% of the market share. “There is no organization that has come to where the ceiling is, considering the billions of dollars that are out there,” he said.

Aiming to realize more of his company’s potential, Richardson is a student of demographic information, particularly households and their incomes, which he said is available by metropolitan area through Demographicsnow.com.

“People tend to follow what other people do,” he said. So if you’re doing $2 million worth of business in one zip code and only $500,000 in another demographically comparable area, “you can be confident that the two can be the same.”

Pursuing that strategy, he said that he expects his company’s sales to exceed the $100 million mark in the next five years.

A design/build operation that provides clients with everything they need to see a job through from start to finish is “the way the industry is evolving,” said Bill Millholland, vice president of Case Designer/Remodeling.

“Remodeling can be hard to buy and clients don’t know how to do it, how to turn a notion into a project,” Millholland said.

On projects that start in the $25,000-$50,000 range, his company provides an in-house architect to come up with a design and then puts together a budget and lays out some basic ideas and a process for doing the work.

Regulation, in areas such as lead abatement requirements, “will separate successful from non-successful companies” in the period ahead, said Bill Owens, CGR, CAPS, of Owens Construction in Columbus, Ohio.

Owens also noted that today’s clients are more demanding and their expectations need to be handled with care and extreme sensitivity.

Owens said that he never shares his in-house production schedule with the client, because unexpected slippage and down time can get in the way of those expectations. He does, however, provide his clients with a time forecast of major events, such as the start of work on drywall or floors, with draws worked in.

“If you think a job will take four months, say six months, so you’ll look like a hero and not a schmuck,” he said.

Alfano warned remodelers to obtain information about the products they are installing when they are unfamiliar with them. “If you’re installing a product incorrectly, you’re in big trouble,” he said, especially at a time when the public is more knowledgeable about products.

“The stuff is more complex, and there are not as many rules of thumb with engineered materials,” he said.

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Glass Failure in High-Rises Shocks Experts

Building experts were dumfounded by the widespread loss of windows during Hurricane Wilma, including at the JQ Marriott, Four Seasons, Espirito Santo Plaza, the Colonial Bank building and the Greenberg Traurig building in Miami; the Grand View Palace apartments in North Bay Village; and the Broward Financial Center, the Broward County Courthouse and the New River Village apartment buildings in Ft. Lauderdale. “This looks like Berlin after the war,” said Miami Police Chief John Timoney, as he surveyed more than a half-dozen ravaged buildings on Brickell. “I don’t know what to make of it. These buildings are supposed to resist winds up to 150 miles per hour.” While the causes won’t be known until inspectors examine the structures, an obvious suspect is wind-driven debris, possibly gravel in older high-rise roofing systems applied atop tar and paper to protect the waterproofing. Once a window breaks, the flying shards can become missiles themselves, said Scott Schiff, a professor of civil engineering at Clemsen University, and also expose other windows to internal pressure blowouts as hurricane winds howl inside. (www.miami.com)
Miami Herald (10/26/05); Curtis Morgan and Matthew Haggman

The Fate of Water-Soaked Wood

A research physicist with the Forest Products Laboratory, an arm of the U.S. Department of Agriculture and the nation’s leading wood research institute, says there isn’t much experience with the sort of wood-saturation that occurred in New Orleans following Hurricane Katrina, “But there is little chance that studs will radically fail. There’s furniture made from wood that has been under water for 100 years. Where you get decay is in the interface between dry and wet.” But Ken Ford from NAHB says that “as a general rule, wood saturated with moisture inherently weakens. I’ve heard that as little as six hours and as long as two days might be the tipping point” for wood-frame studs becoming structurally unsound. In repairing flooded homes, experts do agree that engineered products such as particle board will have to be discarded and that some woods, such as cypress, perform notably better than others. (www.timespicayune.com)
New Orleans Times-Picayune (10/11/05); Renee Peck

Bernanke: There’s No Housing Bubble to Go Bust

In testimony to Congress before he was nominated by President Bush to replace Alan Greenspan as chairman of the Federal Reserve, Ben S. Bernanke said that the nearly 25% increase in house prices over the past two years “largely reflect strong economic fundamentals” such as strong growth in jobs, incomes and household formations. He noted that house prices are unlikely to continue to rise at current rates, but a moderate cooling in the housing market is unlikely to compromise the nation’s economic growth. Mirroring Greenspan’s views, Bernanke believes that “the Fed’s job is to protect the economy, not to protect individual asset prices,” said William Dudley, chief economist for Goldman Sachs U.S. Economics Research. Bernanke would be unlikely to reduce short-term interest rates for the sake of individual home owners if the housing market should slow more than he expects, and has argued for many years that the Fed should respond to rising or falling prices for stocks, real estate or other assets only if they are affecting inflation or economic growth in an undesirable way. (www.washingtonpost.com) Washington Post (10/27/05); Nell Henderson

Rising Energy Costs Start to Gnaw at Home Owner Budgets

With the prices of natural gas and heating oil soaring, one of the first questions prospective home buyers are asking is how much it costs to heat the home. “Energy costs are becoming a larger part of expenses so people may change what they look for in a new home,” said Thomas Kenney, director of engineering services for the NAHB Research Center. According to Kenney, the average annual energy cost today is $1,454, up from $1,190 10 years ago. The Energy Department is predicting that winter heating bills will be a third to a half higher than last year for most families across the country — an average of $350 more for natural gas users and $378 more for fuel oil users. Compounding the problem is the recent popularity of airy cathedral ceilings that add more cubic feet of space to be heated. A proliferation of electrical outlets in homes for an increasing number of appliances such as computers and their peripherals is also helping to increase energy costs. (www.post-gazette.com)
Pittsburgh Post-Gazette (10/26/05); Aleksandrs Rozens, Associated Press

Cold Facts; Heating Bills Are About to Hit Housing’s Front Burner

If rising heating bills aren’t just a blip, housing may feel a blow more than in previous price spikes because of America’s fondness for increasingly larger homes in areas that require longer commutes, according to some real estate analysts. “When you see a $200- or $300-a-month heating bill turn into $500 or $600, that raises eyebrows,” said David Johnston, a Boulder, Colo. consultant on green building and energy conservation. “People are going to start looking at how far they commute.” But NAHB economist Michael Carliner says that consumers didn’t alter their housing preferences during previous energy crises. “The ’70s and ’80s gave us a pretty good idea of what people say [about energy conservation] and what they actually do. They are different things,” said Carliner. “They don’t tend to buy smaller houses or houses with lower ceilings or houses that are closer to work, to any significant extent. They tend to be more conscious of how efficient the equipment is in the house, and how well-insulated it is. There will be increased attention to things like that.” (www.chicagotribune.com)
Chicago Tribune (10/23/05); Mary Umberger

When Workers Can’t Buy Homes, It Hurts Employers Too

Employers in Sacramento, Calif., where the percentage of households who can afford to buy a median-priced home has gone from 40% to 26% in the last year, are finding it harder to hire new people from outside the region unless they come from even higher-priced housing markets, such as those in the San Francisco Bay area or Southern California. A home that cost $350,000 five years ago is now $500,000-$600,000. Kaiser Permanente, the largest private-sector employer in Greater Sacramento, offers partial home-loan assistance to doctors who agree to come to town and make their career at the company. The longer they stay, the better the benefit. Nationally, the cost of moving an employee now costs $70,771 and 73% of workers reluctant to move cite the high cost of housing as the reason, according to Pam O’Connor, president and chief executive officer of RELO Direct Inc. in Chicago. (www.bizjournals.com)
Sacramento Business Journal (10/10/05); Kathy Robertson

Historic Chapel Being Restored

The Southern Arizona Home Builders Association recently offered to upgrade downtown Tucson, Ariz.’s Immaculate Mary Chapel, an adobe structure constructed in 1916 by master builder Manuel Flores. The association began work earlier this month with the help of 16 youths from the local Fred G. Acosta Job Corps, who have been participating in the project as part of their job training. The building is one of four behind St. Augustine Cathedral owned by the Roman Catholic Diocese of Tucson, which emerged last month from Chapter 11 bankruptcy protection and does not have the $4 million in funds it is expected to cost to restore the crumbling structures. “This shows that faith does move mountains,” said Rosie Garcia of the Friends group, which expects to restore all four buildings to create a Cathedral square, including a museum and refurbished social hall. “Consider that across the street from here so much of Tucson’s history is buried under concrete. This is what is left,” said Alex Jacome, from the builders association. (www.azstarnet.com)
Arizona Daily Star (10/19/05); Stephanie Innes

The Dog Ate My Job

Some builders in the white-hot Tampa Bay, Fla. housing market are taking steps in their contracts to penalize buyers who buy and sell to turn a quick profit. The Tampa Bay division of Westfield Homes charges $20,000 if the home is sold or rented in the first year. The restriction is recorded with the deed and it’s a lien that requires the signature of the builder if an exception for a hardship such as a job transfer or divorce is to be made. The company’s president says that investor sales have dropped by 99% as a result of the strict language. At Morrison Homes, an addendum on the purchase and sale agreement, which is recorded with the title, requires the builder to be notified if the home is resold within two years. In the first year, the buyer must pay Morrison $10,000 or any profit realized over the original sale price, whichever is greater. In the second year, they have to pay the greater of 50% of the profits or $20,000. At KB Home, “If you rent your home out in the first year or sell it, we reserve the right to take the profit or the rent,” said division president Marshall Gray. (www.sptimes.com)
St. Petersburg Times (8/20/05); Judy Stark

Tax Panel Eyes the Perfect Man-Made Storm

In recent weeks, while the attention of the nation has been largely diverted by reconstruction efforts along the Gulf Coast, a storm of disturbing proportions has been quietly brewing in Washington, D.C., as nine presidential appointees from Congress, business and academia have been honing in on income tax reform proposals that would pound housing about as severely as Hurricane Katrina battered New Orleans and Biloxi. If this man-made cataclysm does eventually make landfall, immediate casualties will include the more than 74 million households who own their homes, and housing may never recover as the force it is today in the American economy.

A typical home owner doesn’t need a pencil to estimate the fallout from recommendations from the President’s Advisory Panel on Federal Tax Reform that are due on the Treasury secretary’s desk on Nov. 1. Just consider what April 15 would look like if you could no longer take full advantage of your tax deduction for mortgage interest and you lost your deductions for local and state taxes, including property taxes, and for interest on home equity loans. It wouldn’t be a pretty picture, but those are among the provisions that are expected to emerge from the panel, which for some inexplicable reason apparently believes that Americans are prepared to pay a heavy price for the simplification that its radical overhaul of our tax system is supposed to achieve.

The panel is expected to propose replacing the mortgage interest deduction with a tax credit for 15% of the interest on loan amounts up to the ceilings for FHA loans, which range from roughly $172,000 up to $312,000 for high-cost areas. Among those who will feel the full brunt of this change will be home owners and buyers in the highest-priced markets of California and other parts of the country, where the price of a relatively modest house can easily approach an amount that is double the top FHA limit. This could be the final blow for middle-income households who have relied upon current tax policy to push them over an affordability gap that has been widening at an alarming rate.

It is disturbing that an advisory panel chartered to “promote long-run economic growth and job creation, and better encourage work effort, saving and investment” is oblivious to the consequences of dismantling tax policies that have provided a solid foundation for homeownership and doesn’t seem to be much concerned about what happens when that foundation is gone.

Housing sustained the American economy through the relatively mild recession early in this decade and led growth during the recovery period, churning out new jobs when job creation from most businesses and industries remained stubbornly at a trickle. Housing accounts today for 16% of growth in the Gross Domestic Product. At a time when energy prices are soaring, the Federal Reserve is pushing up interest rates to keep a rein on inflation, workers are seeing a decline in their real wages and consumers are becoming more subdued in their spending, does it really make sense to pursue policies that are sure to erode housing values, dampen housing sales and set the industry spinning downward?

About half of the wealth of the nation’s home owners is tied up in the homes they own. Significantly more families own housing than stocks. And out of their vast stores of equity families are finding the means to pay for their children’s college educations, cope with high medical expenditures, repair and update their homes and defray other expenses. Is it worth jeopardizing the investment that tax payers have made in their housing so that it will be easier for them to fill out their tax forms?

Ironically, the tax panelists also want to wipe out the low-income housing tax credit, which is shaping up as a valuable tool for rebuilding from the rubble left by Katrina. The low-income housing tax credit is one of the only tools available to construct affordable rental housing. About 135,000 new and rehabilitated apartment units are made available to low-income families under the tax credit program every year.

Fortunately, for the time being, the blueprint for man-made destruction unfolding in Washington is more a source of concern than an outright menace. Unleashing the full fury of this anti-housing plan will require the concurrence of both Congress and the President. It can only be hoped that they will exercise common sense in rejecting this disastrous approach, an option that is not available to Mother Nature.

Panel Wraps Up Tax Reform Recommendations

NAHB believes the plan would have far-reaching implications for home owners, the housing sector and the economy. (For NAHB Executive Vice President Jerry Howard's commentary on the expected tax reform proposals, click here.)

The panel is likely to call for the elimination of the mortgage interest deduction and state and local property tax deductions, as well as other changes to the tax code that are unfavorable to housing and homeownership.

The Low Income Housing Tax Credit, the nation’s premier program for the production of affordable housing, would be abolished under the proposed new tax system.

The panel was also expected to rescind the current deductions for home equity loans and second homes.

In lieu of these popular housing tax incentives, the panel has been considering the creation of a mortgage interest tax credit of 15% that would be capped based on the current FHA loan limits, which range from roughly $172,000 up to $313,000 in high-cost areas.

The Treasury Department is expected to analyze the package over the coming months and President Bush is under no obligation to follow the panel’s recommendations. It is anticipated that early next year, the White House will decide which ideas to adopt, if any, for a tax overhaul plan the President can embrace.

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

Attend Upcoming Government Affairs Conference in Phoenix

The conference is for association staff members and leaders who work with their local or state governments on regulatory and other state and local government issues.

SLGA Awards: Nominate Those Who Support Housing by Nov. 9

Applications are being accepted until Wednesday, Nov. 9 for the 15th annual NAHB State & Local Government Affairs Recognition Awards program honoring public officials and home builders associations that have advanced the needs and principles of the building industry.

The program honors elected or public officials who have gone to bat for the home building industry; home builders associations that have undertaken innovative or successful government affairs initiatives for a stronger industry; and those who have made a special effort to fulfill NAHB’s smart growth principles.

Honorees will be recognized at an awards breakfast on Jan. 13 during the International Builders' Show in Orlando, Fla. Honorees will receive an engraved award and be cited in NAHB's Nation's Building News and State & Local Reporter.

Interactive skills-building sessions, hot issues and prime networking opportunities will be featured at NAHB's State and Local Government Affairs Conference in Phoenix on Nov. 17-19 at the Wyndham Buttes Resort. The conference is for association staff members and leaders who work with their local or state governments on regulatory and other state and local government issues. To register or for more information, click here.

September Home Sales Show Signs of Winding Down

Sales of new single-family homes rose 2.1% to a seasonally adjusted annual rate of 1.222 million units in September following downward revisions to the June, July and August rates, the U.S. Commerce Department reported on Oct. 27. The September sales pace was 0.1% below a year earlier.

“Home builders are beginning to see a very modest slowdown in what has been a very robust sales pace this year,” said NAHB President David Wilson. “Housing demand remains quite healthy and our monthly survey of builders indicates that they continue to see plenty of traffic in their sales offices and still have an upbeat view of sales prospects for the next six months.”

“We are definitely headed for record home sales in 2005,” said NAHB Chief Economist David Seiders. “However, the pattern of sales in recent months suggests that the new-home market may have been tapped out around mid-year, a conclusion consistent with findings from our builders’ surveys.

“We’re projecting further modest erosion in home sales and housing production as the interest rate structure continues to move higher, although housing market activity will be buoyed to some degree in the wake of this year’s hurricane season,” Seiders added.

Regionally, sales were up 24.9% in the Midwest and 5.6% in the South, and down 11.8% in the West and 20.0% in the Northeast.

September’s inventory of new homes for sale rose slightly to 493,000, a 4.9 months’ supply at the current sales pace. For-sale units that were not yet started represented 22% of the total — a historically high share. Units still under construction accounted for 57% of the inventory, and completed homes for sale for 21%. Completed units were on the market for less than four months, essentially the same period as a year earlier.

Katrina Aftereffects Bolster Existing Home Sales

September’s existing sales of single-family homes, townhomes, condominiums and co-ops remained unchanged from the prior month, holding to a seasonally adjusted annual rate of 7.28 million units, the second highest monthly pace on record, the National Association of Realtors® reported last week.

The robust level of activity was supported by home sales in markets surrounding the areas of devastation from Hurricane Katrina, according to David Lereah, the association’s chief economist.

“We are now getting some hard data from this region, with spot checks showing sharply higher home sales to residents who were displaced by the hurricane. The sales surge is more than offsetting declines in the disaster zone,” Lereah said.

Ad hoc checks in markets such as Baton Rouge, La. show a dramatic rise in existing-home sales compared to a year earlier, he said. Parts of New Orleans recorded only a fraction of their year-earlier volume, but some suburban areas of the city appeared to be doing well.

Echoing observations about a developing trend in new-home sales, Lereah noted that, “The underlying fundamentals of the housing market are solid and sales will stay historically strong, but they will trend modestly down from current peaks. Masked by the data are early signs that housing is starting to wind down from a boom and will transition into an expansion — in other words, a soft landing.”

Lereah added that home prices are expected to continue to appreciate faster than they have in the past “until we see sustained improvements in the supply of homes, and we expect the balance between home buyers and sellers to begin to equalize in the months ahead.”

Single-family home re-sales rose 0.6% to a record seasonally adjusted annual rate of 6.38 million in September, while sales of existing condominiums and co-ops dropped 4.7% to an annual pace of 898,000.

The median single-family existing home price was $212,200 in September, up 14.3% from a year earlier, compared to a median price of $213,600 for a condo, up 9%.

Total housing inventory levels barely budged last month, rising 0.3% to 2.85 million homes, a 4.7-month supply at the current sales pace, the Realtors® reported.

Mortgage Applications Tapering Off a Bit as Rates Rise

Efforts by the Federal Reserve to push up long-term interest rates appear to have started taking hold in the primary mortgage market in recent weeks, with Freddie Mac reporting that 30-year fixed-rate loans were averaging 6.15% for the week ending Oct. 15.

The 30-year mortgage rate has been rising steadily since the beginning of September and crossed the 6% threshold on Oct. 13.

Interest on the fixed-rate mortgage last week was the highest it has been since the week ending July 1, 2004. Last year’s high was 6.34% in May.

“Although home sales were still impressive in September, mortgage applications in October seem to be tapering off a bit, due in large part to slowly rising interest rates,” said Frank Nothaft, Freddie Mac's chief economist.

“Obviously, refinancing is going to take the biggest hit as mortgage rates tick up,” he said. “Refinancing comprised about 40% or more of the total volume of mortgage originations over the last 13 months. This issue, however, will lessen as mortgage rates continue to rise.”

NAHB Chief Economist David Seiders said at the association’s recent forecast conference that he expects 30-year fixed-rate mortgages to rise to the 6.6% level next year. Economists at the conference predicted that the mortgage rate over the next two years will likely return to early 2002 levels, when they were about 7%.

Builders’ Tip: Moving Strike Plates

When I am hanging or adjusting doors, I sometimes find that the strike plate isn’t ideally located and causes the door latch to have play at the strike or, if too tight, makes it difficult to latch without slamming or pushing hard.

Some carpenters remove the strike plate, plug the screw holes with small-diameter dowels (matchsticks are a time-honored plug) and then drill new holes for the strike-plate screws.

As a longtime professional residential carpenter, I’ve used another method that is a lot simpler and works just as well.

If a 5d nail isn’t available, use a 4d. The smaller-gauge nail works better than the next size up.

BuilderBooks.com Offers More Than 250 Books That Help You Build Your Business

BuilderBooks.com is your source for training and education products for the building industry. The official bookstore for NAHB, BuilderBooks.com offers award-winning publications, software, brochures and more available in both English and Spanish. To view these publications online, click here, or call 800-223-2665.

Subscribe Your Employees to Nation’s Building News — and 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.

Subscribe your employees to Nation's Building News and they will begin receiving timely, valuable industry and business news at their desktops beginning with the very next issue. Inside each issue, they'll find the latest lumber prices, industry news, builders' tips, lumber prices, problem-solving floor plans, sales and marketing tips and more.

Hire Smart, Delegate Before It’s Too Late

Finding quality, motivated employees is a common challenge for building business owners. At the same time, you know you cannot perform all of the administrative functions of your business and sell your services and produce a quality product — all while trying to envision the future for your company as CEO.

Therefore, if you have not figured out how to interview, hire, train and retain excellent employees, it’s essential that you learn something about human resources management now.

Only 10% of new businesses succeed. If you want to be that one in 10, you need a quality workforce. Having one will help you live a life that includes personal time, not just 100-hour work weeks as far as the eye can see.

Whether or not you have adequate help — or the right help — to run your business can mean the difference between a correctly estimated job or one that leaves you in the red; a project ahead of schedule or one that misses crucial deadlines; repeat business or a string of disgruntled customers. In short, staffing or no staffing may be the difference between success and failure.

Veteran remodeler Jud Motsenbocker, CGR, CAPS, of Muncie, Ind., offers examples of how an investment in employees — financial and otherwise — has paid off.

It was a member of his sales staff who noticed that repeat clients were literally dying off and that Jud Construction had to find new customers.

His top administrator helped create the team environment in which staff members feel that their suggestions are welcome and appreciated by encouraging “Thank You” as a routine office phrase.

Empowering production staff to determine how jobs will be staffed to meet deadlines has resulted in projects finishing ahead of schedule.

Of course, since one of the chief reasons entrepreneurs want their own business is to be “in control,” there is a tradeoff in learning the essential skill of delegating. Motsenbocker acknowledged, for example, that it was tough to give up hands-on production. But after he did, his employees got better at it.

Building professionals recommend leaving no stone unturned in seeking qualified help, since not every hire will be a good hire and your best employees probably will move on, perhaps even start their own building business eventually.

One builder hires only former Job Corps trainees. Another business owner has had good experiences hiring veterans returning from the Iraq war. Some have found that, while risky, hiring former prisoners has been a good decision.

(Note: Until Jan. 1, 2006, when the federal Work Opportunity Tax Credit (WOTC) is set to expire, employers can reduce their federal income tax liability by as much as $2,400 if they hire an employee from a targeted group, which includes some veterans, reentering prisoners, people moving from welfare to work, some Hurricane Katrina victims and others receiving government benefits. For more information, follow this link.)

You can also find new employees through your competitors, construction inspectors, trade contractors, professional associations and other industries. One business owner noticed excellent customer service skills in a waitress who served him and, subsequently, hired her. Motsenbocker found a good hire through a source he didn’t expect — a state-run employment service that tracked him down through a classified ad he had placed in the newspaper.

In fact, state and federally funded employment services are under increasing pressure to offer employer-demand-driven services to help people find and retain jobs in high-skill, high-growth areas like home construction. So don’t overlook them as a source — not only for workers, but for training and other supportive services that may help you hire someone and keep them employed.

In addition, the U.S. Department of Labor has provided grants to the Katrina-affected states of Alabama, Louisiana, Mississippi and Texas to train workers for jobs critical to the economic recovery of the Gulf region, including construction. The public workforce investment system is supposed to use the $12 million provided to place trainees in jobs where there is a critical need for workers.

You can find state “One Stop” employment and training center Web sites that encourage employers to post jobs. Just click on your state at the following link.

Once you have a candidate in mind, there are a number of approaches — beyond interviewing them — to determine whether they have the skills you are seeking.

One builder requires candidates to demonstrate competencies in a 10-by-10-foot room where they hang crown molding, install stairs and perform other similar tasks. Another escorts candidates to their trucks so he can assess how well their vehicles are organized.

After they are hired, all candidates need training at the outset and on an ongoing basis. The training may be helping employees adapt their skills to the new work situation (helping the waitress learn building customer requirements, for example, or having an expert in remodeling act as mentor to someone whose previous experience was framing new construction). Or it may be learning an entirely new skill, such as how to interact with high-end clients.

Some may even need basic skills tutoring in reading and writing, which is offered through local volunteer organizations, state-certified training programs, high schools or community colleges.

Besides training, employees also need rewards to keep them motivated — and these aren’t always monetary. Positive reinforcement should be ongoing — two positives for every negative is a good rule of thumb in discussing a problem with a team member.

And, for the sake of your business as well as your employee, never criticize one of your workers in front of a client. Instead, have a private discussion with the employee to discuss perceived shortcomings.

"It's really a team approach," says Lucy Katz, of Katz Builders, an Austin, Texas-based custom homes builder and high-end remodeler. At weekly staff meetings, employees brainstorm solutions to problems "so nobody feels like they're the Lone Ranger out there. We cover for each other.

"It's not, 'Are you going to mess up?' It's, 'When are you going to mess up?'" she says. The point is not to assign blame for mistakes, but to make sure they are caught and corrected expeditiously.

"Hopefully, if we've hired the right people, they're conscientious, they understand it's all about a team," including trade contractors. In exchange, she says, team members get flexible hours, "autonomy and the freedom and space to do their job."

Tangible rewards besides money for a job well done or as tokens of appreciation for showing up every day are important as well, building professionals say. These may include tickets to sporting events, employee outings and celebrations, incorporating breaks — and food — into the work day as part of contracts with clients and closing down for hunting "holidays."

Despite all of your efforts to build a productive, happy team, not every hire is a “good hire.” Motsenbocker recalls having to let an employee go even though his skills were good and he had a great work ethic. The reason? He couldn’t work with others on the crew.

The results of his decision to terminate affirmed that it was the right one. After the employee left, production actually increased even though, according to the organizational chart, the team was short one crew member.

Besides exercising the difficult option to fire an employee, though, it’s incumbent on you to answer the question of “why” a particular hire did not work out. Was the person truly a slacker or was there a personality conflict with another member of the team?

You can’t always judge the strength of one employee on the word of another. There could be an individual personality conflict. For example, the new clerical staff member whose work style clashes with your longtime administrator may do fine once the senior staff member has moved on.

For more information, e-mail Natalie Holmes at NAHB, or call her at 800-368-5242 x8461.

Attend the Custom Builder Symposium in Atlanta

Attend the 2005 Custom Builder Symposium in Atlanta on Nov. 11-13 for the latest industry-specific education and networking opportunities for custom home builders, remodelers, architects, developers and other industry professionals.

The symposium will be held at the Sheraton Atlanta. Online advance registration is closed, but onsite registration is available Nov. 10 at the hotel.

The symposium features 15 concurrent sessions and four advanced sessions. Click here for a list of titles, speakers and descriptions for all educational sessions.

In addition, pre-symposium Certified Graduate Builder (CGB) and Graduate Master Builder (GMB) designation courses will be offered on Saturday and Sunday at no additional charge. These courses include Estimating for Builders and Remodelers (approved for CGB, CGR and CGA designation credit) and Diversification (approved for GMB designation credit).

Keynote speaker Rodney Miller, of Walt Disney World, will discuss, "What your passion can do for you." Prior to joining Walt Disney World, Miller was an executive facilitator for companies including Westinghouse, AT&T, Sears, PepsiCo. and NASA.

The symposium features the Anderson Home Tour of custom, high style homes with a Southern flair. The homes on tour will be in various stages of completion — from framing to fully-furnished models.

Two social events are planned: Experience Atlanta, featuring fun and entertainment in some of Atlanta's most popular hot spots, including the Historic Virginia Highlands; and a golf outing at the Atlanta National Golf Course.

NAHB Has More Than 170 Resources to Help You Run Your Business More Profitably

Go to NAHB's Business Management Tools Web pages (available to members only) 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.

Resources are added weekly, so bookmark www.nahb.org/biztools to go directly to these vital business management resources.

Local and state home builders associations can link directly to www.nahb.org/biztools from their Web site and give their members instant access to these resources. It will make your HBA's Web site the place to go for the information and guidance that members need to succeed.

'Residential Performance Guidelines' Available From BuilderBooks.com

The contractor's and consumer's references of the "Residential Performance Guidelines, Third Edition" are now available through BuilderBooks.com. With almost 300 guidelines in 12 major construction categories, including 50 new guidelines on cabinets, cement board siding, concrete, countertops, drainage, driveways, drywall, landscaping water infiltration and more, these references were created to help builders and remodelers create and manage customer expectations while delivering high-performance homes and protecting their bottom lines. Click here to order both the contractor and consumer references online. For the contractor's performance guidelines reference only, click here.

NAHB’s Business of Building e/Source is your monthly electronic guide to the hot issues and emerging trends in home building business management. You’ll find practical advice, tricks of the trade and sound business guidance — all delivered monthly, straight to your desktop, in a quick and easy-to-read format. Business of Building e/Source is available free to NAHB members and their employees. To subscribe, visit www.nahb.org/BoB on the Members Only side of the NAHB Web site.

Stop by the BuilderBooks Bookstore at the Custom Builders Symposium for books you need to build your business, great savings and giveaways. BuilderBooks.com Reward participants, show your Rewards card to receive an additional 5% off your purchase.

Collaboration Key to Affordable Seniors Housing

During the final weeks of construction on a low-income seniors apartment building in Baltimore, the project’s developer received calls from young professionals wanting to know when the new condominiums would be on the market. From the architect’s standpoint, that was a sign that he did something right.

Of course, successful affordable seniors housing goes well beyond an appealing exterior. But what constitutes a success is a matter of perspective:

For tenants ― Successful affordable housing enhances the quality of life by providing an environment and amenities that meet their needs at a reasonable price.

For the developer — A winning project achieves economic goals by attracting financing, coming in on budget, competing in the marketplace and enduring the test of time.

For the community ― Affordable housing should work within the context of the neighborhood. Ideally, it fosters community pride, which in turn lowers tolerance for vandalism and crime. It attracts further residential or business development.

Affordable housing is truly exceptional when it succeeds for all its constituencies. Most often, its success is the result of a close partnership among the developer, architect and contractor from the project’s outset. This partnership begins with a common understanding of the developer’s vision, the prospective tenants’ needs, the project’s financial parameters and the project’s place in the community.

“It makes a big difference when everyone starts at the same point and knows where they’re heading,” said Larry Kraemer, vice president of estimating for Harkins Builders, one of the largest builders of affordable multifamily apartments in the mid-Atlantic region. “From the beginning, it’s important for all disciplines to meet regularly.”

Close collaboration during the design phase is essential so that cost estimating can begin early. This also allows the contractor to suggest more affordable alternatives if the team heads down a path that potentially could break the budget.

Without all parties at the table from the outset, “the owner might get a surprise when we estimate the job, and we’d have to value-engineer to get back to a number that works,” Kraemer said. This often means engineering the value out of the project, especially if time is running short. At that point, the process becomes purely budget-driven — to the detriment of the project’s other objectives.

In contrast, early and ongoing collaboration maximizes the team’s ability to creatively address the full spectrum of developer, tenant and community needs.

In 1983, the American Hellenistic Educational Progressive Association (AHEPA), an American-based Greek heritage service organization, founded a non-profit national housing corporation to provide low-income housing for the elderly and the disabled. One of the corporation’s seniors housing complexes in Baltimore is a perfect example of how a project facing community opposition benefited from a collaborative project team.


	Park View at Ellicott City, Md., an award-winning affordable seniors housing community, was built on a challenging site with sloping land, reducing the amount of money available for the exterior. However, the use of dark vinyl siding and concrete created a beautiful Tudor look.

The most economical solution would have been a four-story building, but the community blocked the proposal because four stories were too high for the neighborhood. Although the project team, of which I was a part, had a solid case for securing a zoning variance, we opted to design a more contextual, three-story complex instead.

As part of the three-story solution, we proposed closing an unused alley, which also met neighborhood opposition. After much heartache, we decided the alley wasn’t worth the fight and developed a design that accommodated the alley, maintained the existing street line and suited the project’s financial parameters.

We used exterior materials compatible with the adjacent homes to help blend the project into the neighborhood. At the same time, we incorporated Greek elements in the design, including columns and an entry pediment, to reflect the residents’ heritage. And we included inset balconies to help balance the length of the façade and allow residents to take advantage of the water views.

Through creativity and continuous cost estimating, the AHEPA team found ways to overcome barriers and meet the needs of all parties.

“This is a place people love living in, it’s easy to run and it came in under budget. So what’s not to like?” said Charlie Duff, chief executive officer of Jubilee Baltimore, Inc., the project’s developer.

Park View at Bel Air, an affordable 100-unit seniors housing community in Harford County, Md., was built on a site that would have deterred most developers. Although the site’s proximity to downtown Bel Air offered several major advantages for seniors, a stream and a strip of wetlands separated the connector street and the useable land.


	Park View at Bel Air in Harford County, Md. proved to be a challenge for the design team with a nearby stream and strip of wetlands. The designer overcame the problem by designing a single long building that created the feel of a wooden enclave.

Like many affordable housing projects, this one was slated for a tough site, a narrow slice of land in an urban neighborhood.

Rather than view the wetlands as a negative attribute, however, we used them to the project’s advantage ― as a natural scenic buffer from a busy street.

Making the site work also meant changing our assumptions about building configurations because the available land couldn’t accommodate the usual L-, H- or U-shapes typically used in affordable seniors housing complexes. Instead, we designed a single, long building with shallow projections to offer relief.

Through collaboration, the project team turned what seemed like an unworkable site into a community with the feel of a wooded enclave — located just blocks from an active commercial district.

A sister Park View complex in Ellicott City, Md. had an equally challenging site ― steep slopes. Dealing with the land’s steep slopes consumed a considerable chunk of the budget and restricted what we could afford for the building’s exterior.

So the team sought cost-effective alternatives to masonry that would provide both durability and visual appeal. The solution involved a creative use of dark vinyl siding and concrete, giving the building a Tudor look. The atypical color palette was complemented by dormers of various sizes and articulation.

Again, overcoming the project’s challenges resulted from a close partnership between the owner, architect and contractor. Not only did Park View at Ellicott City come in on budget, it earned a Silver Award in the NAHB 50+ Housing Council’s Best of Seniors Housing Awards.

Waverly Gardens, an active adult apartment complex that will open next winter in Marriottsville, Md., is a prime example of how sustainable design can enhance affordable housing.

In addition to minimizing the environmental impact, sustainable housing offers residents a healthier atmosphere and a significant savings in energy costs. Plus, contrary to common belief, it can have economic benefits for the building’s owner as well.

“Many developers steer away from green building because they think it costs more. In actuality, when done correctly, it can bring down overhead and lower operating expenses,” said Jared Spahn, president of Old Town Construction, who was instrumental in securing $1.1 million in green building tax credits from the state of Maryland for Waverly Gardens.

Another concern often raised is the extra effort involved in developing sustainable projects. However, if the project team is working collaboratively from the start, incorporating sustainable elements isn’t onerous. Often, it’s a matter of breaking habits and doing things that make sense, like positioning windows for maximum daylight and selecting drought-resistant plants.

Furthermore, the growing demand for sustainable building resources has led to better selection and access. Greater availability of products and services, such as certified wood, low-emitting materials and construction waste recycling makes projects like Waverly Gardens more feasible than ever.

Waverly, which is expected to earn LEED certification, will feature Energy Star appliances, solar-heated water, a car sharing service and other green elements that enhance the community’s quality.

This goes hand in hand with another objective — demonstrating that affordable housing doesn’t have to look cheap.

The community of upscale single-family homes that surround Waverly Gardens set a high standard for the complex. The project faced major opposition, as many do, when the neighborhood learned that affordable housing was being proposed.

One of the great ironies of Waverly Gardens is that the complex, with its metal roof, brick exterior and underground parking ― all elements that further sustainability — is superior in appearance and quality to market-rate condominiums ― with their asphalt shingles, vinyl siding and surface parking — just two blocks away.

The surrounding community’s trepidation about Waverly Gardens appears to have faded. Months before the groundbreaking, the list of would-be residents included relatives from 40 families who live in the community.

A team that’s committed to an early, continuous partnership gives an affordable housing project the best chances for success. The process should begin with a clear understanding of the developer’s vision, the needs of prospective tenant and the community’s context.

Estimating throughout the process can go a long way in keeping the project on budget and avoiding costly surprises. When challenges present themselves — and they will — engage the full brainpower of your team to develop solutions that make the most of the available budget and resources.

Ed Hord, FAIA, is a principal at Hord Coplan Macht, Inc., an architecture and landscape architecture firm based in Baltimore. Under Hord’s leadership, the firm has designed more than 10,000 units of multifamily housing, including active adult, independent living and assisted living, since 1977. Hord is the 2005 chair of the American Institute of Architect’s Housing Committee and is a member of the NAHB 50+ Housing Council. For more information, e-mail Hord, or call him at 410-837-7311. or edhord@hcm2.com.

Save 15% when you purchase “The 50+ Housing Publication Set,” through BuilderBooks.com. Receive one copy of “Boomers on the Horizon: Housing Preferences of the 55+ Market,” “Marketing Seniors Housing” and the “Best of Seniors’ Housing News.” This publication set is a must-have for anyone serving the 50+ market. To view or purchase this publication set online, click here, or call 800-223-2665.

To learn more about seniors housing, join the NAHB 50+ Housing Council. The council provides information, education, networking and recognition opportunities for its members and represents NAHB on 50+ housing issues. For more details, e-mail Jeff Jenkins or call him at 800-368-5242 x8292.

Multifamily Stock Index Rebounded Last Month

The stocks of publicly traded companies primarily involved in the development and ownership of multifamily housing bounced back strongly in September, after taking a dip in August, pushing the NAHB Multifamily Stock Index (MFSI) to its second-highest level ever.

"The demand for condominiums remains strong and demand for market-rate rental apartments is also on the upswing," said Ron Terwilliger, chief executive officer of Trammell Crow Residential. "The health of apartment company stocks on Wall Street is another sign of the overall strength of the housing market right now."

The NAHB index tracks the total returns (including capital gains and dividends) of 27 publicly traded firms.

In September, the MFSI rose by 48 points to 2,554, or almost 2%. The index was about 26% higher than a year earlier, when it stood at 2,030. By comparison, the S&P 500 (with dividends reinvested) rose by less than 1% in September and its value was roughly 12.5% higher than 12 months earlier.

The multifamily index is currently outpacing the S&P 500 by more than 130%, according to Elliot Eisenberg, a housing policy economist at NAHB and creator of the MFSI. "Despite the consistently strong showing of the S&P 500 over the past year, the MFSI continues to outperform it," he noted.

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

Shashaty Receives Corletta Affordable Housing Award

Affordable housing journalist and advocate Andre Shashaty recently received the 2005 Robert J. Corletta Award for Achievement in Affordable Housing from NAHB and the Neighborhood Development Collaborative.

The award was established in 1999 in memory of Corletta, who was one of the Collaborative’s founders and a long-time multifamily developer for NAHB.

“Andre Shashaty has a consistent history of demonstrating how much he cares by using the power of the pen to address the really difficult issues which often determine whether or not organizations such as the Collaborative can fully carry out the mission to create and preserve desirable housing with affordable rents,” said David Cole, the Collaborative’s chief operating officer.

“He has courageously paved the way to remove affordable housing barriers and correct many mistakes in the past,” Cole said. “In so many ways, he is the voice of affordable housing.”

Aging in Place, CAPS Expertise Featured on CNN

"CNN American Morning" recently highlighted the remodeling work of Jeff Glass, of Construction Concepts of Stamford., Conn. and the knowledge and know-how of CAPS instructor Alan Hanbury, CGR, CAPS, of the House of Hanbury Builders, Inc. of Newington, Conn. as part of its series, "Dream Retirement: Living It," which aired last week. Glass specializes in aging-in-place remodeling.

The episode featuring NAHB remodelers ― "Your old new home" ― originally aired on Wednesday, Oct. 26 and showcased the home of Shelley Lounsbury, who had her home remodeled so her aging parents could live with her.

"You can't put a price tag on being in a home versus being in a facility. And that is what we ultimately wanted," Lounsbury said on the show.

During the segment, Hanbury described and demonstrated many of the aging-in-place features that Glass had installed in Lounsbury’s home ― including a chair lift, widened hallways and an accessible bathroom and shower.

In addition, Hanbury had CNN’s Gerri Willis, personal finance editor and episode host, demonstrate how difficult turning an oven knob could be with simulated arthritic hands — part of regular CAPS training that involves grasping a tennis ball while wearing an athletic sock and then attempting simple tasks.

Willis promoted both NAHB and CAPS expertise during the show. "The good news here is that the National Association of Home Builders has a program, aging-in-place specialists. They certify them," Willis said.

"You can go to their Web site at NAHB and find out details about how to hook up with somebody who knows how to do this in your area," she added.

CNN is the latest of many media outlets that have featured the CAPS designation and aging in place this year. CAPS stories involving NAHB members and staff have appeared in Time magazine, BusinessWeek, Wall Street Journal Online, the Chicago Tribune and other major metropolitan daily newspapers. On average, one story about CAPS a week has appeared across the country.

More than 800 home building and remodeling professionals have earned their CAPS designation since May of 2002. To learn more about CAPS, click here.

To read elsewhere in this issue about NAHB's online Directory of Professional Remodelers that CNN viewers were directed to, as well as other benefits of Remodelers™ Council membership, click here.

CNN Shows the Value of NAHB Remodelers — a Benefit to Us All

Last week, CNN aired a program about aging in place that featured two of our own ― NAHB Remodelors™ Council members Jeff Glass and Alan Hanbury. But the show did more than showcase these two members, it highlighted the council’s expertise in aging in place and clearly demonstrated what NAHB and its members do for our customers.

Sometimes it is difficult for us to communicate the value of being an NAHB Remodelors™ Council member — the skills, knowledge and professionalism that entails ― to our customers. The CNN program made it easy for thousands and thousands to see.

Through a tour of a home remodeled by one of our council members, the episode really showed how the education and training that are the pillars of our CAPS program can really change customers’ lives for the better.

Not only did Hanbury give viewers insight into the types of changes that can be done to make people more comfortable at home in their retirement years, the CNN reporter even told the viewers how to find CAPS remodelers in their areas through the NAHB Web site — www.nahb.org.

That’s not only good for particular remodelers contacted after the show by interested customers, that’s good for all of us. When visitors come to learn about aging-in-place, they are exposed to all the other expertise we have to offer on all issues of housing. And this type of thing happens because thousands of consumers regularly visit the NAHB Web site to learn about what we have to offer, and remodeling is high on their interest list

Each month, the NAHB Web site is visited by an estimated 200,000 consumers or general public visitors. In fact, the consumer section of the NAHB Web site — which contains remodeling information for the general public — is the most visited section of the Web site.

A recent NAHB online survey revealed that one of the top consumer requests about our industry was for information about the building and remodeling process. In response to such demand, the Remodelors™ Council has streamlined consumer information about remodeling. Plus, we have created a Directory of Professional Remodelers — a cost-effective national marketing exposure tool.

The directory is the latest advantage NAHB provides its Remodelors™ Council members — and one that’s already garnered national exposure.

There are other benefits, of course — connections to suppliers, legislative advocacy, peer support and networking — all of which make me a better businessman and, not incidentally, provide me with a more interesting life. Even if CNN doesn’t necessarily broadcast it.

To read about the CNN broadcast about aging in place elsewhere in this issue, click here.

Finley Perry is owner and president of F. H. Perry Builder, Inc., a Hopkinton, Mass. company he founded in 1975. The firm provides a broad range of design, construction, remodeling, management and maintenance services to residential clients throughout the Greater Boston area.

Finley is a former chair of the BAGB Remodelors™ Council, has been honored as Remodeler of the Year at the local and state level, received the Big 50 recognition from Remodeling Magazine in 1998, and his company was named one of the "Best 101 Companies to Work For" by Professional Builder magazine in 2002 and 2003. This year he was honored as Builder of the Year by the Builders Association of Greater Boston.

For more information, visit his Web site at www.fhperry.com, e-mail Perry, or call him at 508-435-3062.

High Style Meets Top Quality in Concrete Chateau

Durham, N.C., Oct. 27 -— One of the newest concrete residences on the North Carolina scene has been described as a place of "quiet elegance." The Chateau, a French-country-style home built by Jon Rufty Homes, and designed by Davenport Architecture + Design, Inc. achieves exquisite style, superior class and enough resilience to withstand the most threatening elements.

An experienced custom home builder, Rufty has completed five concrete residences to date, the most recent of which is the Chateau, a three-story, 7,345-square-foot, luxury home located on 4.9 acres in Durham.

This magnificent estate home was built without a buyer in line. This may seem unusual for a concrete home with a price tag just over $2.25 million, but for Rufty, building luxury spec homes is all in a day's work. "The reason we continue to build spec concrete homes is we truly believe that cast-in-place, using removable forms, creates superior quality," Rufty says.

It is immediately obvious upon visiting the property that Rufty had a vision in mind when he planned this home. Chateau visitors cross a four-car, concrete cobblestone motor court before entering an oversized mahogany doorway and gazing down at magnificent 24"x 24" limestone floors. Similarly impressive are acid-etched concrete floors in the game room.

The property boasts five bedrooms and five full and three half bathrooms. So that each room would feel like a suite, Rufty said he included a private bathroom and walk-in closet. Among other extras are a recreation room, an exercise room, a home-automated-lighting system, a media room and a large, rectangular-shaped pool, complete with hot tub, waterfall, tanning shelf and two fountains.

The Chateau's picturesque backyard is framed by a man-made pond with a large fountain at its center. The home also backs up to hundreds of acres of dedicated open space.

Throughout the home, Rufty has mixed in natural materials to re-enforce the concrete design theme of the structure, providing aesthetic appeal along with reminders of the Chateau’s solid structure. A stacked-stone grotto frames the kitchen's range and oven. Earthy ceramic tiles, in a range of sizes and shades, encase the garden tub and lend natural ambience to the floor and shower. In many places the concrete walls have been thickened to make the already solid walls appear wider.

"Because of the monolithic pouring of the walls and ceilings, the home is essentially a sleek reinforced concrete cube," Rufty says. "In concrete homes, you can't hear the footsteps on the floor above you and the china in the dining room doesn't rattle when you walk by."

In addition to a soundproof environment, other benefits of concrete construction include fire resistance, reduced energy consumption, a healthier living environment, increased durability and lower maintenance.

Rufty's first ventures in cast-in-place concrete construction using removable forms were townhomes in Raleigh and Topsail Island, N.C. and a 10,000-square-foot custom home in Birklands that he has used as a model for the past three years.

Rufty attributes part of his success in concrete to working with an experienced concrete contractor. Curt Fields and his team at Tri-City Contractors are no strangers to concrete home construction, and Fields says that the Chateau is his favorite among the many projects he has worked on.

"It is the most dynamic house I have helped build in the last 30 years," Fields says. "Rufty is extremely innovative and we're glad that he's building concrete homes in our market."

Located in The Hills of Rosemont subdivision just 10 miles south of I-40 near rapid residential and commercial development, The Chateau was recently named the winner of the local 2005 Parade of Homes "Best of the Best" award based on the findings of builders, new home professionals and Realtors® from North Carolina who toured 89 homes throughout Durham and Orange Counties.

Making strides in home construction for more than 17 years, Rufty and his team pride themselves on providing personalized service, listening to their clients and educating them about possible styles, materials, and intricate details that are available in new home construction.

Rufty's style is extremely versatile and his properties are recognized for their incredible craftsmanship and design. His concrete homes have been recognized for being environmentally friendly and safe.

Rachel Zwerneman is a project coordinator for Op5 Creative, Inc. in Atlanta.

Attend the 2005 SHOWCASE in Louisville

The 2005 Building Systems Councils SHOWCASE — the annual networking, education, and trade show event for all facets of the systems-built housing industry — has been relocated from New Orleans to Louisville, Ky.

Advance registration online is closed. Onsite registration is available beginning Sunday, Nov. 6, the first day of the show.

For more information about SHOWCASE or systems-built housing, contact the Building Systems Councils at 800-368-5242 x8576.

Education Calendar

Whether you’re new to the industry, hope to make your next career move or want to improve your company’s bottom line, The NAHB University of Housing can assist you in your education pursuits.

Visit www.nahb.org/education for a comprehensive listing of courses throughout the country. Be sure to visit often in order to view the most up-to-date information in your area.

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.

‘Not So Big House’ Author to Keynote Energy Awards

Sharing her insights on her “build better, not bigger” approach to residential design, award-winning architect and author Sarah Susanka will provide the keynote address for the EnergyValue Housing Award ceremonies on Jan. 11 at the International Builders' Show (IBS) in Atlanta, the NAHB Research Center announced recently.

The awards will recognize 18 industry professionals who are leading efforts to reduce residential energy consumption by voluntarily integrating energy efficiency into the design, construction and marketing of their homes.

Susanka’s books include “The Not So Big House,” “Creating the Not So Big House” and “Not So Big Solutions for Your Home," a compilation that provides everyday design solutions for people with various skill levels and budgets.

Susanka’s current book, “Inside the Not So Big House,” explores details that bring a home to life. It will be followed next year by publication of “Outside the Not So Big House” and in 2007 by “The Not So Big Life,” a continuation of her guidelines for easing overly busy lifestyles, slowing down and eliminating less fulfilling activities to make time for things that are personally satisfying.

Her demonstration Showhouse at last year’s IBS illustrated principles that govern how space, light and order are experienced in the home and revealed the techniques architects and designers use to make their creations comfortable and engaging.

For more information on the awards, click here; or e-mail Kevin Mo, the awards program manager, or call him at 301-430-6210.

Green Building Program Unveiled in St. Louis

The Home Builders Association of Greater St. Louis has unveiled a new voluntary residential green building program designed to offer builders information on green products and building practices appropriate for the area’s geography and climate.

The association’s Green Building Initiative™ – St. Louis was adapted from NAHB’s Model Green Home Building Guidelines, which were developed by a group of about 60 builders, environmentalists, government agencies and product manufacturers.

"This innovative program is the first of its kind in the St. Louis area," said Patrick Sullivan, executive vice president of the home builders association. "We are excited about the opportunity to provide our members with the necessary tools to build and market green homes to their consumers."

Owners of green homes can reap various benefits, including utility savings, improved indoor air quality and less overall maintenance. The voluntary guidelines can be tailored to the needs of interested home buyers during the building process. Green building practices examine the potential to save energy and reduce waste, both during and after construction.

Although there is no one-size-fits-all approach to green building, the voluntary green building guidelines in St. Louis include the following:

The St. Louis initiative will provide technical and marketing expertise to help local builders utilize the voluntary national guidelines and support the construction of green-built homes across the area. The association is also working with representatives from Laclede Gas to implement a third-party verification process to ensure that homes constructed as part of the program adhere to the NAHB guidelines.

Developments Recognized for Building With Trees

Conservation-minded builders and developers from around the country have received 2005 Awards of Excellence in the Building With Trees recognition program. Sponsored by The National Arbor Day Foundation in cooperation with NAHB and Firewise Communities, the program recognizes builders and developers who save trees during construction and land development.

A jury of development industry and urban forestry professionals selected the award winners.

Criteria considered: creativity and attention to protecting trees during planning, design and construction; planting and providing for long-term tree care; demonstrating a commitment to tree protection by having a certified tree-care professional on the development team; taking inventory of existing trees and using information to help preserve trees; and adherence to tree protection goals throughout the construction process.

The awards were presented to developers at the Arbor Day Foundation's Building for Greener Communities National Conference on Sept. 19-21 in Nebraska City, Neb. The conference provides a national forum to discuss issues of tree protection during land development and construction.

For additional information on the Building With Trees recognition program, click here, or call 888-448-7337.

NextGen Home Braces for Hurricanes

The 2,500-square-foot home is being constructed by custom home builder BrownStone Builders & Associates following the “Fortified…for safer living”® program of the Institute for Business and Home Safety. The program provides a flexible and affordable means to construct a disaster-resistant new home anywhere in the country, according to Kevin Barber, the institute’s vice president of communications.

Visitors to the home will be able to take a look at better building products and also receive a hands-on introduction to the latest advancements in home air quality, energy efficiency and home control.

The NextGen Home has been a feature of the IBS for four years, says Frank Daly, a partner with the developer, but this year will be the first time that the house will be available to home buyers; it is being built at Porte de la Mer, the first NextGen Certified planned community, located near Tampa Bay, Fla.

Ask the Lawyer: About Wetlands Determinations

Q. The U.S. Army Corps of Engineers visited my project site and said that part of my land is a “jurisdictional wetland.” This determination could cost me two or three lots in my 10-lot subdivision. My wetlands consultant disagrees with the determination. He doesn't think the land is either a wetland or within the Corps’s jurisdiction. Can I file a lawsuit and ask a court to tell the Corps that it is wrong?

A. Not yet. At this time, the Corps has simply indicated that it believes that part of your property is a wetland over which it has authority. You must overcome many hurdles before a court will hear the merits of a lawsuit.

Two of these hurdles are "final action" and "ripeness." When suing an agency like the Corps, you must have a “ripe” case ― a case in that there is a real controversy which is sufficiently developed for a court to make a decision ― and the agency must take “final agency action” before you can bring the case to a court.

Unfortunately, there are a number of steps you must take before the Corps will be considered to have taken a “final agency action” and you have a “ripe” lawsuit:

Only after you have completed all of the above steps will a court likely find that the Corps has taken an action that is reviewable.

Obviously, completing all these steps is time-consuming, so the best way to keep your project moving forward is to try to work with the Corps. You should only consider litigation as a last option.

There is no guarantee that your question will be answered in this format, so if you have a particular legal concern that requires immediate attention, contact the NAHB Legal Research Service at 800-368-5242 x8491.

"Ask the Lawyer" is a service of the NAHB Legal Action Committee and NAHB Building Products Issues Committee. The information provided is intended to familiarize you with the law in this area. It is not intended to be an exhaustive presentation of legal information on this particular subject, and in no way constitutes an opinion of law. Your own attorney must review this information to determine how it may apply to your particular situation.

HBI One of Washington Area’s Best Places to Work

Chosen from applications from 225 companies, non-profit organizations and government agencies, the magazine’s November issue features 55 employers who have distinguished themselves by providing an exciting and supportive work environment. Winners excel in offering flexibility and work-life balance, challenging and interesting work, career development, competitive pay and benefits, stability, recognition, communication and a collegial environment.

At HBI, the magazine singled out the availability of a compressed work schedule, leadership training and great retirement benefits. HBI was also praised for its ability to retain employees. 2005 marks the 35th year at HBI for its president and chief executive officer, Fred Humphreys, and its executive vice president, Al Kamikawa. Many other HBI employees have passed the 20-year mark, while others are fast approaching it.

The magazine noted HBI’s mission of helping young people establish home building careers and promoting job opportunities in the industry.

Currently, HBI has 40 people working in its national office in Washington, with another 250 instructors, educators and coordinators across the country. HBI’s largest program provides skilled trades training to 2,000 Job Corps students annually. Its Project CRAFT offers similar vocational training to court-involved youths. HBI also works with members of NAHB Student Chapters.

“We were delighted to be selected by Washingtonian,” said Humphreys. “At HBI, we respect each other and have a passion for what we do. This combination is priceless to an organization’s well being and one we value highly.”

For more information on Home Builders Institute and its programs, e-mail Maria McIntyre, or call her at 800-795-7955 x8912.

Natural Gas Users Prepare for Long, Cold Winter

With the U.S. Energy Information Administration indicating that customers who use natural gas to heat their homes could be paying as much as 47% more on average for natural gas this winter, the American Gas Association (AGA) is disseminating information on why prices are rising and what consumers can do to minimize their household energy consumption.

Representing the 195 local energy utility companies that deliver natural gas to more than 56 million homes, businesses and industries across the country, AGA is a member of the National Council of the Housing Industry — the Supplier 100 of NAHB.

While the association says that it is “confident that supplies of natural gas will be adequate to meet customers’ needs throughout the upcoming winter heating season,” it also points out that the wholesale price of natural gas, after remaining a relatively stable $2 per thousand cubic feet during the 1990s, has escalated since 2000 and could average nearly $9 in 2005.

With supply and demand already running tight following a summer in which temperatures were about 17% higher than normal and operators of power plants were forced to buy larger volumes of natural gas to power air conditioning, Hurricane Katrina further aggravated the situation, temporarily reducing supplies by an estimated 8.8 billion cubic feet per day. “Much of that production has come back online, but the weather had a marked impact on prices,” the association says.

With U.S. demand for natural gas projected to increase nearly 40% by 2020, the association says that “reductions in demand (through energy efficiency and fuel-switching) are vital to helping to ease prices, but it is clear that natural gas supplies must increase.”

The thousands of companies that produce natural gas in the U.S. are having a hard time keeping up with demand, partly because many wells are becoming depleted. “The number of producing gas wells has tripled since 1971 (from approximately 100,000 to

Nation's Building News Online: October 31, 2005

House Votes to Advance Sound GSE Regulatory Reform