Nation's Building News Online: February 6, 2006Print All Articles Text Version |
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So Cal Builders Launch TV Ads to Counter Growing NIMBYismA proactive television and public relations campaign designed to reverse anti-growth and anti-builder sentiment in one of the fastest growing regions in the country is already showing positive results less than two weeks after the campaign launch. “We are already seeing the public rallying to our side,” said Carlos Rodriguez, senior vice president and director of public affairs for the Baldy View Chapter of the Building Industry Association of Southern California, which encompasses San Bernardino County and parts of Los Angeles County.
The Baldy View chapter launched two 30-second television ads — one somber, the other more upbeat — late last month to counter what the 400-member chapter saw as growing NIMBYism, particularly among long-time residents.
More than 3,100 airings, many of them in prime time, are planned on 10 local cable stations through March. The ads are expected to reach 61,000 households — about 70%-80% of the county — about 10 times each. The television ads highlight the contributions the building industry and growth bring to the region and pose two questions: “If home building stops, where will jobs go to sleep at night?” and “How do you define quality of life?” The ads are based on research of building industry activity conducted for the association by John Hustings. They point out that in 2004 about 74,000 jobs in the county were directly and indirectly related to the building industry, and that those jobs generated about $3 billion in salaries. In addition, the ads report that builders paid more than $500 million in fees, which helped to pay for better schools, more parks, better roads, better police and fire safety and other quality-of-life improvements. (The ads are posted on the Baldy View Chapter Web site and can be seen by visiting www.biabuild.com). In addition to increasing public awareness of builder contributions to everyday life, Rodriguez said the ads were designed to create a “climate of courage” for the many local officials the chapter works with so that these officials can support pro-growth measures in their localities. At more than 20,000 square miles, San Bernardino County is nearly as large as West Virginia and includes 24 incorporated cities. Association members also work with local officials in 13 cities in nearby Los Angeles County. Anatomy of a Pro-Builder Public Relations Campaign “We were starting to see too much anti-housing sentiment and thought we should undertake a public affairs campaign that showed the benefits that we bring to quality of life,” said Ray Fernandez of Rainbow Building & Development, the current president of the BIA/Baldy View Chapter. Last April, Fernandez and Rodriguez, along with Todd Tatum of American Housing Group, the chapter’s vice president of public affairs, began to develop a three-pronged public relations campaign to counter anti-housing sentiment “We wanted to get out in front of the issue,” said Rodriguez. “We wanted to see what people thought about our industry.” With the support of the association’s executive committee board of directors and excutive officer, Frank Williams, they developed a campaign to address government relations, media relations and community relations. The effort included conducting a countywide public opinion poll to determine the residents’ “hot button” issues; a survey of members to determine the amount of fees they paid for their projects; research by Hustings to determine what contributions the industry and growth brought to the county; and the creation of television ads to highlight those results. The association worked with TMG Communications to develop the program and create the TV ads. Through the poll, Rodriguez said, “We found that roads, schools, parks and public safety were overarching concerns.” “Everybody thinks the government is wholly responsible for funding roads, schools, parks and public safety,” said Fernandez, so the association developed the television ads and a brochure to inform the public about the building industry’s contributions to providing those services and amenities. “We wanted people to know that the building community is responsible for much of that.” Rodriguez said that since the ads first appeared, he is seeing public support for the industry.
The Media Take Notice The Baldy View chapter launched the television ads on Jan. 27 during a press conference attended by reporters from the county’s major media outlets who were allowed to preview the ads. This was the second major press conference the builders held as part of the media relations component of their campaign. In August, the association held a press conference to announce the findings of Hustings' study. Rodriguez said the press conference about the television ads generated stories in all the county’s major newspapers and other media outlets — with many of the stories prominently displayed “above the fold” on many of the papers’ front pages. All the headlines and most of the coverage were very favorable, said Rodriguez:
The Next Phase: Meeting With Decision-Makers Rodriguez said the next phase of the campaign is to conduct a “city-by-city briefing tour.” Using the polling and research information they have collected, association officials will be meeting with city managers and city council members to discuss the industry’s contributions to their communities. Said Fernandez, “We're hoping that showing them the benefits of housing will translate into stronger support from the councils.” The association’s campaign — including polling, research, creating the television ads and brochures, and airing the TV ads — cost $184,000. Rodriguez said the association did not budget for the campaign, so the money was raised by the membership. For more information, e-mail Carlos Rodriguez at BIA/Baldy View Chapter, or call him at 909-945-1884.
Builders Call for Sensible Flood Insurance Reforms From CongressTestifying before the Senate Banking Committee on Feb. 2, NAHB President David Pressly told lawmakers that the nation’s home builders support efforts to reform the National Flood Insurance Program (NFIP) to ensure its long-term financial stability, but cautioned that any legislative proposals should not be an overreaction to unusual circumstances stemming from last year’s devastating hurricane season. “The NFIP is not simply about flood insurance premiums and payouts, but is rather a comprehensive program that guides future development and mitigates against future loss,” said Pressly. “While a financially stable NFIP is in all of our interests, the steps that Congress takes to achieve this aim have the potential to greatly impact housing affordability and the ability of local communities to exercise control over their growth and development.” To improve the solvency of the program and its attractiveness to potential policyholders, NAHB supports the following reforms to allow the Federal Emergency Management Agency (FEMA) and the NFIP to better adapt to changes in the marketplace:
Pressly said that NAHB would oppose any effort to statutorily change the current 100-year floodplain standard to a 500-year floodplain standard as a way to require more home owners to participate in the NFIP and buttress the program against greater losses. “At a minimum, FEMA should conduct a study of the feasibility and implications of such a change in the NFIP’s mandatory purchase requirements prior to enacting any modifications,” said Pressly, who noted that a shift to a 500-year floodplain standard would greatly expand the program’s reach by forcing millions of additional property owners to purchase flood insurance. “What would this mean?” he asked. “Would this impose burdensome requirements on areas unlikely to suffer floods? Would it unnecessarily harm home buyers and increase the cost of homeownership? Would it harm home values? And how would such a change impact every coastal community — and many inland areas — in the U.S.?” Likewise, Pressly told lawmakers that before Congress considers mandating flood insurance for home owners who reside behind flood control structures such as dams or levees, FEMA must produce adequate documentation indicating that the benefits of such compulsory coverage outweigh the costs. Citing significantly higher construction costs and their accompanying impact on housing affordability, NAHB opposes expanding residential design standards beyond current law. “For example, on the Gulf Coast, elevating new structures could add, on average, $30,000 to the cost of a new home,” said Pressly. Flood insurance claims for the 2005 hurricane season are expected to top $23 billion as a result of the unprecedented damages caused last year by Hurricanes Katrina, Rita and Wilma, far exceeding the total amount paid out over the NFIP’s 37-year existence. Congress approved legislation last November to raise the borrowing authority of FEMA to $18.5 billion annually from the Treasury, and the NFIP will need at least $5 billion more to meet its obligation to claim holders. Established in 1968, the NFIP offers affordable flood insurance to home owners and businesses in floodplains and other low-lying areas that otherwise might not be able to obtain such coverage. More than 20,000 communities nationwide participate in the NFIP and the program currently covers approximately 4.8 million policyholders. Circuit Court Returns Wetlands Case to District CourtIt’s back to the courthouse for the “Tulloch II” lawsuit. The D.C. Circuit Court of Appeals has reversed the U.S. District Court’s decision that an important wetland regulation case is not ready to be decided because builders and developers do not yet face a hardship under NAHB v. U.S. Army Corps of Engineers. The court of appeals agreed with NAHB that its challenge is “ripe for review” because the association based its claims on purely legal principles that do not require a court to wait until the regulation is actually applied to any individual builder or developer. Why is this important to NAHB members? NAHB can now return to the lower court and convince the court that when its members are not discarding soil or sediment into federally protected waters, they should not be regulated under the Clean Water Act. NAHB filed the lawsuit in 2001 challenging the Corps’ so-called “Tulloch II” rule that any machine use in a wetland should be regulated because it can be assumed that using a backhoe or similar equipment is going to result in a discharge — even if the equipment is working to remove soil, sediments or other material. The Tulloch II rule placed an onerous burden on developers, NAHB argued. In 2004, the District Court found that NAHB’s challenge was not “ripe for review” – that NAHB members do not yet face a hardship, even though they need to apply for permits from the Corps regardless of whether their projects will result in discharges into navigable waters of the United States. NAHB appealed the case to the Circuit Court, which heard oral arguments in 2005. On Feb. 3, the court handed down its decision: Because the District Court ruled that the Corps must decide on a case-by-case basis whether any discharge should be regulated, “we conclude that the district court’s reasoning does not support postponing review for lack of ripeness.” In other words, NAHB and its members should not have to wait to get their day in court on this regulatory issue. “This is a very important step in attempting to bring reason to regulation,” said NAHB President David Pressly. “We understand and support the Corps’ need to oversee discharges to our navigable waters, but that is not a reason to need a permit when builders are actually removing material and creating only incidental fallback from their backhoes and shovels.” The Corps and EPA lost the first Tulloch case in 1998 when the D.C. Circuit ruled that under the Clean Water Act, agencies only have authority to require permits when material is added to wetlands, not when it is removed. The two agencies issued a 2001 rule to give them authority over any activity that causes soil movement in wetlands, regardless of whether it results in a “discharge” to navigable water. NAHB fought back with the ‘Tulloch II” suit. The Circuit Court’s ruling sends the case back to the District Court to be decided on its merits. Living Ever Larger: Estates in the SkyFor more than a decade, McMansions have been a fixture on the American landscape. Now apartments are being supersized, too. On Fisher Island, near Miami, a condo developer is offering penthouses of 20,000 square feet, more than eight times the size of the average single-family house. In a Las Vegas suburb, a custom-home builder is developing high-rise condos topped by 16,000-square-foot apartments. And in New York, some luxury pads now on the market measure more than 10,000 square feet, gargantuan by Manhattan standards. "The question is not 'What do you need?' it is 'What do you want?' " said Deborah Grubman, a broker with the Corcoran Group in Manhattan, who is helping to market three 8,360-square-foot co-ops in the converted Stanhope Hotel on Fifth Avenue. In addition to a master suite that could comfortably house a family of four, the apartments will feature seven other bedrooms with en-suite bathrooms, a drawing room, a dining room, a family room, a media room, a library and two wet bars, one attached to the master suite. "So if, God forbid, you should get thirsty at night, you don't have to go all the way back to the kitchen," Grubman said. At nearly $4,200 a square foot, that yields an asking price of $35 million, not to mention the $26,000-a-month maintenance fees. (www.nytimes.com)
Density Ranking Will Inform Growth DebateThe City of Austin has a new weapon in its arsenal to guide decisions on one of the touchiest topics in city politics — a quietly conceived ranking of the density of various Austin neighborhoods. For years, neighborhood residents, developers and planners have fought sometimes ferocious battles over how much redevelopment and population growth that established neighborhoods in the urban core should absorb. The debate, however, has largely been conducted in a vacuum, without hard numbers to bolster competing arguments that neighborhoods are either maxed out or shirking their responsibilities to a growing city. In more than 50 Austin neighborhoods, city demographer Ryan Robinson divided the number of residents into the amount of residential acreage and subtracted space for such things as streets, office buildings and parks. Neighborhoods were then ranked based on the number of residents per acre. Many longtime neighborhood activists hope the study is just the first step in determining the city’s capacity to absorb residents, a potentially paradigm-shifting number. (www.knowledgeplex.com)
Garages Go Upscale: More Space for Storage and Maybe Your CarsThe latest addition to Leigh and Carrie Munsell's home in Palos Verdes Estates, Calif. has granite-like flooring, cedar-lined cabinets and pricey recessed lighting. An elegant new pantry? A library? No — a $20,000-plus made-to-order storage space in the couple's two-car garage. With everything from fly-fishing gear to clothes now arranged in an orderly way, the garage is "pristine," says Carrie Munsell, 41, a stay-at-home mom. "No cars are allowed." Aiming for the high-end home owner with a glut of stuff, garage specialists around the country are urging customers to invest in storage space as refined as the rest of their home. Ranging up to 500 square feet, the spaces are typically created along garage walls, often with weatherproof cabinetry in woods like maple and birch. In some cases, cabinets are hung on slatwalls, or storage platforms are installed above the cars. Garage Envy, a three-year-old garage-storage company in Pasadena, Calif., offers features like retractable benches ($650 apiece) and marble flooring and granite tops for work tables for $35 per square foot. Business has been so good the firm just opened branches in northern California, Arizona and Oregon. In Houston, a typical custom job by Advantage Garage Cabinets is about $2,700, or double the amount a year ago. (www.realestatejournal.com)
Boost Your Overhead; Look Up. See White? You Can Change ThatKnown as the “fifth wall” in architecture, the ceiling often is overlooked in design and decorating. Drywall it, paint it white and you’re done, right? Not necessarily. Evanston-based architect Donna Lee Floeter says today’s home owners are more likely to add ceiling treatments to their remodeling to-do lists than in past years — perhaps because in many cases there is simply more room to play with overhead. Nine-foot ceilings are now a standard height, up from 8 feet, according to NAHB. Yet architects and builders report a move away from soaring, two story ceilings. That’s where beams and beadboard, paint and press-tin panels can come in. Using pattern, texture, color or architectural details on ceilings, it’s possible to make a room seem larger or smaller, lighter or darker, warmer or cooler. (www.chicagotribune.com)
Home Prices Out of Sync With PayFor Avondale Estates, Ga. police officer Tom Gillis, living where he works is not an option. "What you'd like to do and what you can afford to do are two different things," said Gillis, who earned about $43,000 last year from his police job and a side job. On that income, Gillis said, it's unthinkable to consider buying a home in fashionable Avondale Estates, with its shaded streets and a median home value of $203,500, according to the U.S. Census. Instead, Gillis drives about an hour to work from the house he built for $100,000 in Gwinnett County 15 years ago. It's a common experience for middle-income workers who can't afford to live in the pricey communities where they work. Some DeKalb County commissioners want to make it easier for public servants to live where they work. Some are pushing a proposal that would require developers to offer a percentage of their projects in unincorporated DeKalb at lower rates for moderate-income workers. The proposal is controversial. Builders say such "work force housing" measures could discourage development and should be voluntary. Builders support affordable housing measures only if they are voluntary and carry incentives, said April Atkins, senior government affairs representative of the Greater Atlanta Home Builders Association. "There must be room for flexibility," she said. "The numbers have to work." (www.knowledgeplex.com)
California Proposal Aims to Control Scope of Eminent DomainIn June, when the U.S. Supreme Court ruled in Kelo v. City of New London, Conn. that the government has the right to seize homes to make way for private redevelopment, it set off fear in the hearts of home owners and lawmakers alike. A flurry of bills and state ballot initiatives have been introduced in response to concern that the court's decision can put anyone's property up for grabs through eminent domain. A state constitutional amendment by California state Sen. Tom McClintock, R-Thousand Oaks, would allow the government to continue to apply eminent domain for public uses such as roads, schools and libraries, even while potentially driving up costs by redefining "just compensation." But it would forbid redevelopment agencies from forcibly taking properties for private redevelopment, such as retail centers, condo projects or hotels. "It means you can't take one person's property and give it to another for private gain," McClintock said. "It's a fundamental American freedom in the Bill of Rights that your house and shop are secure and nobody can take them away from you against your will for private gain." He hopes to get the measure on the November ballot by a two-thirds vote of the Legislature or through the ballot initiative process. (www.contracostatimes.com)
Professor Offers Contrarian View of Sprawl“From every direction," complains Robert Bruegmann, "Americans are bombarded by the message of anti-sprawl reformers," whose jeremiads decry the spread of suburbia as wasteful, irrational and destructive of environmental and human values. In his provocative new book, "Sprawl: a Compact History," Bruegmann, a professor of urban planning at the University of Illinois at Chicago, takes these catastrophists to task. In the eyes of its elitist detractors, Bruegmann charges, "sprawl is where other people live, particularly people with less taste and good sense than themselves." Contrary to the anti-sprawl message, he claims, the unregulated expansion of urban space represents the highest expression of democracy, as the "choices of millions of individuals and families about where and how they [want] to live" shape the complex layouts of cities far more effectively than the blueprints and regulations of a planning elite. Bruegmann critically examines what he regards as the moralizing of anti-sprawl activists, who regard sprawl as wasteful, dependent on fossil fuels, aesthetically displeasing, alienating, homogenous and conformist. In Bruegmann's view, this reflects subjective judgments more than objective reality. For him, the patronizing attack on sprawl represents little more than the defense by an entrenched cultural elite against the encroachment on its territory by "a newly affluent or empowered part of the population" — in this case, the upwardly mobile working class seeking the good life. (www.chicagotribune.com)
White House Cool to Rep. Baker's Katrina Recovery PlanThe White House on Jan. 23 indicated that it would oppose a hurricane recovery plan sponsored by Rep. Richard Baker (R-La.), arguing that the legislation would create an unnecessary layer of bureaucracy and could prove to be prohibitively expensive to implement. Baker’s bill, H.R. 4100, was approved by the House Financial Services Committee in December by a 50-9 vote. The measure would create a “Louisiana Recovery Corporation” designed to prevent the foreclosure of approximately 200,000 hurricane-damaged homes by providing federal financing to pay affected home owners approximately 60% of the equity in their homes. It would also pay off their mortgages. Administration officials have said they prefer for Louisiana to use its $6.2 billion share of Community Development Block Grant funding that was approved as part of a larger post-Katrina reconstruction plan recently passed by Congress to address housing needs and other recovery efforts. A companion measure to the Baker bill introduced by Sen. Mary Landrieu (D-La.) is pending in the Senate. However, the fate of these bills remains highly uncertain given the Administration’s apparent opposition to this plan. For more information, e-mail Greg Brown at NAHB, or call him at 800-368-5242 x8421. Congress Votes to Repeal Controversial Anti-Dumping LawCongress last week voted to repeal the Continued Dumping and Subsidy Offset Act, an anti-dumping trade law that allows U.S. firms to receive duties from foreign rivals, as part of a larger budget bill (S. 1932) that narrowly passed the House by a 216-214 margin. Commonly known as the “Byrd amendment,” the law was enacted in 2000 through the efforts of Senator Robert Byrd (D-W. Va.) and will be repealed in October 2007. NAHB supported repeal of the Byrd amendment because it encourages domestic industries to file trade cases in the hope that any duties collected will go directly to their corporate coffers instead of into the U.S. Treasury. The controversial law is linked to the U.S./Canadian softwood lumber dispute. The U.S. Customs Service has collected approximately $5 billion in duties to date, and the funds have yet to be distributed. Several rulings by North American Free Trade Agreement panels have found that current duties on softwood lumber shipments are illegal and that the U.S. should repay the duties that have been collected. However, the U.S. has been dragging out the legal proceedings in an effort to reach a negotiated settlement. In addition, the World Trade Organization has ruled that the Byrd amendment violates its trade rules. President Bush signed the budget bill into law last week. For more information, e-mail Jason Lynn at NAHB, or call him at 800-368-5242 x8307. Big Builders Will Be Less Acquisitive in 2006Nineteen transactions took place in 2005, Kahn said, and there probably will be fewer of them this year because the housing giants will be cautiously “tapping the brake” until they figure out exactly what is happening in today’s changing marketplace. Finding the stability they are looking for will take roughly three to six months, he estimated. “They can operate in good and bad times, but they don’t like to operate when they don’t know what’s going on,” he said. With stock prices for the giant builders down 30%-60% over the past six months, Kahn said, many are thinking that maybe they should be buying back their own stock at low valuations. Earnings, however, are not a concern for the big builders because they already have a year of production in the bag, he said. In the transactions that do get done in 2006, Kahn predicted that there will be less cash paid at the closing and more paid over time, based on performance, as the companies settle into more normal times for acquisitions. Among the prerequisites for being a successful acquisition candidate, he said:
Kahn also recommended candor. “What’s the worst thing that they will hear about you? Bring it up and deal with it on the surface.” Further advice for those who are waiting to be tapped for acquisition: “Most big builders today are patient; they are not asking the builder to change. Keep doing what you’re doing.” Geographically, acquisitions are generally out of favor in the Midwest. Big builders are also looking askance at Washington, D.C. and other markets where there is the beginning of a perception that housing is overpriced and prices are coming down. On the other hand, “Florida, Florida, Florida is hot as a pistol.” Public builders will continue to have a healthy appetite for expansion, Kahn said. They have high retained earnings, low debt-to-income ratios and access to impressive lines of untapped credit. It’s relatively easy for a builder who constucts 300 homes annually to meet a goal of growing by 15% in a year, but for a big builder who is in the 30,000-40,000 unit range, 15% growth is the equivalent of 4,500-6,000 units, and that increase is hard to achieve organically. The big builders will be expanding into different types of products, such as high-rises, but they won’t be interested in pursuing asset-driven businesses such as commercial or multifamily development. By 2010, at least one of the housing giants will be able to build 100,000 units in a year, Kahn predicted, while noting that four builders are close.
Where Are the Top 100 Metropolitan Areas for 2006?
Attend the Spring Construction Forecast Conference in April Plan to attend NAHB's Construction Forecast Conference on April 27 at the National Housing Center in Washington, D.C. The conference brings together the nation's premier housing economists and finance experts for an in-depth examination of the economic outlook for the housing industry. Give Your Perspective on the New NAHB Economics Blog Give your economic perspective on NAHB's new economics blog, “Seiders on Housing,” an informal Internet-based discussion forum dealing with economic issues, housing trends, survey research and other topics affecting the housing sector of the economy. Log onto the blog at http://nahbblog.blogs.com and get direct access to NAHB Chief Economist David Seiders' expert opinions, projections and responses. Then let him know what you think. Regulators' Expansion of Housing Data Could Boost LendingFederal regulators overseeing the nation’s banking industry last month initiated changes that will require banks to provide more detailed data on residential and commercial construction lending when reporting on their quarterly activities. The changes, which will go into effect next year and could boost lending activities, are supported by NAHB. “This action will allow federal banking regulatory agencies to differentiate the disparate risks posed by residential versus commercial lending activities,” said NAHB President David Pressly. “Providing data on one-to-four-family residential construction is an important step in developing a secondary market for single-family housing production.” As a result of the regulatory changes, large banks and banks with a high volume of residential production loans on their books will be required to break out their one-to-four-family housing production data in their quarterly Bank Call Report effective on March 31, 2007. All other banks will begin reporting the breakdown of their construction loans as of March 31, 2008. “The bottom line is that more residential-specific data will be reported on loan volume and loan performance, which will invite market analysts and investors to treat housing production loans more favorably. This information will help build a secondary market for construction financing,” said Pressly. Want to Know the Housing Starts Forecast Through 2014? Find out in HousingEconomics.com’s Long-Term Forecast. HousingEconomics.com includes downloadable Excel tables featuring the housing starts forecast, GDP, demographics and more. To learn more, visit www.housingeconomics.com.
Give your economic perspective on NAHB's new economics blog, “Seiders on Housing,” an informal Internet-based forum dealing with economic issues, housing trends, survey research and other topics affecting the housing sector of the economy. Log onto the blog at http://nahbblog.blogs.com and get direct access to NAHB Chief Economist David Seiders' expert opinions, projections and responses. Then let him know what you think.
Attend the Spring Construction Forecast Conference in April Plan to attend NAHB's Construction Forecast Conference on April 27 at the National Housing Center in Washington, D.C. The conference brings together the nation's premier housing economists and finance experts for an in-depth examination of the economic outlook for the housing industry. Builder's Tip: Coping With Mini-Grinders
Instead of using the backing pad, I put a pair of sanding disks back-to-back so I can cope the whole profile of a molding without turning over the grinder. I can cut to the left or right and the dust keeps heading away from me.
Another use for the top disk is removing extra material from the bottoms of casings so that flooring will slide under. — Gregg Roos, San Francisco Tips & Techniques provided by Fine Homebuilding.
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. Analysis Yields Better Management, Greater ProfitsEven as volume increased and their staff worked harder and longer, Bill and Scott Jagoe of Jagoe Homes sensed that their company was not nearly as efficient as it could be. They studied the systems used to support the company’s sales, construction, customer service and other functions and realized that inefficiencies were affecting profit margins. The Jagoes used the lessons learned about business process management to increase their company’s efficiency — and bottom line. And they shared those lessons with fellow builders in a business management education session at the recent International Builders' Show in Orlando, Fla. The Jagoes' analysis found 297 non-construction processes in their company. They were able to eliminate more than half — 155 to be exact — that were not adding value to the customer. The Jagoes noted five issues with cycle time, four construction-related problems, and trends in administrative inefficiencies that needed to be addressed. Cycle time
Construction
Office inefficiencies
Do any of these issues look familiar to you? If so, you may be sacrificing customer satisfaction, volume, market response time and, most importantly, profits, the Jagoes contend. In its first 10 years of operation, 1985-1995, Jagoe Homes had reduced cycle times, increased housing starts per superintendent, improved overall office efficiency and modestly boosted margins. But the Owensboro, Ky.-based single-family production builder and land developer was seeing a disproportionate rise in overhead that was squeezing its profits. “We sold a lot of houses, but behind the scenes was chaos,” Bill Jagoe said. “We were starting a lot of houses but our processes were fragmented. The business was managing us.” In 1995 the Jagoes decided that in order to overcome the chaos they needed to look beyond the company’s limitations and find a way to replicate good results, improve communication, create a customer-focused culture and deliver a better product and experience for customers. With the help of industry consultants in sales, back office and product development, Jagoe Homes:
Now, process improvement is an ongoing activity at Jagoe Homes, with communication and information management a centerpiece of the effort. The company digitized its paperwork, installed networked computer workstations in its model homes, and created an e-mai product suggestion boxl. Meanwhile, the company brought its sales function in house and trained sales staff in the home building process, construction terminology and how to read plans, plats and easements. Now, superintendents can spend their time in the field, rather than at preconstruction meetings. Cycle time has decreased, contributing to the bottom line and superintendents are more productive because they’re not burned out. Customers are guaranteed a “sure close” date; margins continue to climb; and the company is selling more homes. “We meet customer commitments 99% of the time,” Scott Jagoe said. And a 75% increase in profits from 1995 to 2005 has helped reduce the company’s reliance on external sources for operating capital while providing even more resources to invest in land development.
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.
NAHB’s Technology Solutions Directory — an easy-to-use directory that enables builders, remodelers, contractors and other industry professionals to find information on software and IT solutions and services for their businesses — is now online. The directory is sponsored by the Business Management & Information Technology Committee. Software and technology solutions providers interested in being listed can sign up for:
The Technology Solutions Directory is solely for educational and informational purposes. Nothing in the directory should be construed as policy, an endorsement, warranty or guaranty by the National Association of Home Builders of the listed software, IT service or the software/IT vendor. The National Association of Home Builders expressly disclaims any responsibility for any damages arising from the use, application or reliance on any information contained in this directory. See How You Measure Up With ‘Cost of Doing Business Study’
Find out how your home building business measures up against the competition with NAHB's "Cost of Doing Business Study." Available from BuilderBooks.com, this one-of-a-kind resource gives home builders a rare glimpse at other builders’ books by providing data about profitability, cost of sales and expenses from hundreds of home builders across the country. The latest edition of the study provides an opportunity to see how your financial performance stacks up against the industry as a whole — and against your goals for your business. See how you measure up with industry-wide averages in these important areas:
The "Cost of Doing Business Study" has the data, analyses and guidance you need to boost profitability, increase efficiency, set realistic budget targets and improve your business practices. To order the "Cost of Doing Business Study," click here, or call 800-223-2665. Beyond Location: Factors That Drive Active Adult Sales“Location, location, location,” is not the only reason — and probably not the primary reason — active adults purchase a new home. Astute active adult community developers are spending more time analyzing their markets and the reasons behind buyer purchases, and what they are finding is that consumers follow a distinct process encompassing many factors, not just location, when making a purchasing decision. To put it more simply, they are discovering that this market generally shops community and community amenities first — and the house itself last. Therefore, active adult developers should take advantage of the multiple opportunities to leave a positive impression that well-designed and through-out communities have on prospective buyers before those prospects ever see the models. Designing communities for the active adult lifestyle requires a more comprehensive approach than simply plunking houses down on lots, although it differs very little from designing to appeal to other market segments. After all, 70% of all active adults will buy in an intergenerational community rather than an age-restricted one. So how do you design a community that will appeal to this vibrant and rapidly growing sector of the market? A More Comprehensive Design Is Needed The key to successfully designing communities for active adults is to truly understand how they make the decision to purchase a home. Our company, David Jensen Associates, Inc., has done just that by creating what we call the Buyer’s Sequence tool. The Tool is designed to show how every step of the community planning process is an opportunity to get inside the buyer’s mind, to appeal to the consumer’s needs and wants, and to help mold the ultimate decision to purchase a home.
Creating communities for active adults is a sophisticated process. It requires learning the sales and marketing elements, so that the fabric of the community has an appealing function, lifestyle and image. Additionally, it’s important to recognize active adults’ hobbies and desires and create images of a rewarding lifestyle throughout the community. For this discerning market, the attention to detail will pay off. And while location may not be the primary consideration, there are several locational aspects that matter greatly to consumers. These factors make up the first four steps of the buyer’s sequence: access and proximity to employment; educational facilities and personal services; image and character of the area; and recreational facilities and opportunities. Access Most people have a tolerance level of a specific length of time they will spend driving to work each day, so a development with reasonable access to employment has a distinct advantage. Typically, when looking to purchase a new home, buyers will begin in an area at an optimum distance from their jobs and expand to a certain point only if no housing options exist within their price range. Personal Services and Lifestyle Opportunities Active adults are more interested in a new and exciting lifestyle than a new house. They prefer communities that offer them a wide variety of amenities, so communities should include access to specialty retail, wellness centers, libraries and hobby shops. Central trail systems should link the amenities and facilitate walking, biking and alternative modes of transportation. Community Character To achieve true walkability, plans should begin with open space and trails and walkways. Once done, the remaining development space should be refined and roads should be connected to that space. Curvilinear streets should replace monotonous grids in order to slow traffic, display elegant landscape design and encourage a walkable lifestyle. The remaining eight steps of the buyer’s sequence fall entirely within the community developer’s and land planner’s control and begin at the perimeter of the property. As consumers are driving down the road, changes in landscape or structural features such as a brick wall or wood fencing should signal the approach of the community, and logos should be used to stimulate the buyer’s interest. Buyers will investigate the features of a village, street scene of individual enclaves and village’s street scene of individual neighborhood, street scene from individual lots, views, traffic, adjacent land uses and the house. Active adults focus on future wants and desires and seek a community that addresses their desired lifestyle and maximizes natural features. Builders and developers who focus on these activities will win big with the active adult market. David Jensen is president of the Denver-based David Jensen Associates, Inc., which specializes in active adult and mixed-use master-planned communities. The company's award-winning communities rely on parks, open space and trail systems to create structure and a sense of place. For more information, visit his company’ Web site at www.davidjensenassociates.com, e-mail Jensen, or call him at 303-369-7369. Attend the 50+ Housing Symposium in Phoenix Learn more about the fastest-growing segment of the housing market. Attend the Building for Boomers & Beyond: 50+ Housing Symposium, April 24-26 in Phoenix. The seniors housing symposium is the premier educational and networking event for industry professionals who serve the burgeoning 50+ market. For more information or to register, click here. “Boomers on the Horizon: Housing Preferences of the 55+ Market,” available through BuilderBooks.com, can help you better build and market homes to this age group. Capitalize on the niches, needs and opportunities of this rapidly growing market by learning their preferences. To view or purchase this publication online, click here, or call 800-223-2665.
Best Of Seniors Housing Honored at Builders' ShowThe best in the 50+ housing industry were honored by NAHB during the 2006 Best of Seniors Housing Awards ceremony held Jan. 11, in conjunction with the International Builders’ Show in Orlando, Fla. The NAHB 50+ Housing Council, which promotes excellence in the seniors housing industry, presented 132 gold and silver awards in 58 categories to current and on-the-boards projects from across the United States and as far away as Japan. Design categories covered a range of product types such as active adult, aging in place, assisted living, continued-care retirement communities, for-sale condominiums, rental apartments and renovated seniors housing. Winners were also honored for excellence in marketing strategies focusing on the mature market, and nine Jurors’ Innovation Awards were presented to projects that demonstrated extraordinary creativity and insight. Among the top award winners were: Active Adult Overall Community of the Year Gold Awards
Richard Rosen, a Silver Spring, Md.-based architect and chairman of the Best of Seniors Housing Awards Committee, noted several trends that judges saw in this year’s entries. “This year, as in the past, active-adult community design reflects a greater sensitivity to working with the natural environment while creating a resort-like community,” Rosen said. “Floor plans in both villas and apartments continue to be open and flexible, reflecting current lifestyle preferences. Universal design is also becoming standard in the planning and detailing of active-adult residences.” A 13-member panel of architects, builders, designers, marketing professionals and universal design specialists judged the projects on innovative architecture, interior design, merchandising, marketing, and how effectively they responded to the housing demands of the 50+ market. Marketing categories focused on brochures, advertising campaigns, sales centers, and special promotions. For more information, e-mail Elizabeth Landry at NAHB, or call her at 800-368-5242 x8680. Gen X Demand Providing a Strong Follow-Up to BoomersFrom research with colleague Amal Bendimerad on the demographics of U.S. households, Apgar told an audience at the International Builders’ Show last month in Orlando, Fla. that it is now apparent that the Gen X population, those born between 1965 and 1974, has received a healthy infusion of immigrants and in sheer numbers has come within hailing distance of the massive post-World War II generation born between 1945 and 1964. “What looked like a big cliff is now just a small valley,” Apgar said. The Generation X population may now be about 5% smaller than the generation that has just preceded it, he said, but that difference will be hardly noticeable to the housing industry because Gen Xers spend more. Apgar listed several demographic findings about GenX suggesting expanding opportunities for builders and remodelers:
For more information on remodeling, e-mail Jim Lapides at NAHB, or call him at 800-368-5242 x8451. Learn How to Market to Gen-Xers “Marketing and Selling to Generation X,” available through BuilderBooks.com, gives you the inside scoop on what motivates Gen X home buyers as two Gen-Xers share their insights into this new market niche. This book helps improve sales by serving the needs of this young generation of home buyers. To view or purchase this publication online, click here, or call 800-223-2665. Web Tool Provides Quick Start on OSHA ComplianceVisitors to the page can generate a set of compliance assistance materials tailored to their job sites. Step 1 of the Quick Start resource for builders provides an introduction to OSHA requirements that address some of the leading hazards at construction sites, including those related to falls, stairways and ladders, scaffolding, electrical, trenching and evacuation, and motor vehicle safety and highway work zones. A link is provided to find the OSHA standards that are most frequently cited by OSHA inspectors. Noting that most construction job sites involve multiple employers — such as general contractors, construction managers and subcontractors — OSHA also provides a link to information on its multi-employer citation policy. Step 2 lists information resources on a number of other OSHA standards that may apply to a job site. Topics include personal protective equipment; hand and power tools; concrete or masonry products; cranes, derricks, hoists, elevators or conveyors; welding, cutting or brazing; residential construction; steel erection; fire safety and emergency action planning; and hazard communication standards. The Quick Start provides further links to information on surveying the workplace for additional hazards; developing a job site safety and health program; training employees; recordkeeping, reporting and posting; and additional compliance assistance. For more information on construction safety issues, e-mail Rob Matuga at NAHB, or call him at 800-368-5242 x8507.
The “Jobsite Safety Video,” available through BuilderBooks.com, provides an overview of the key safety issues residential builders and workers need to focus on to reduce accidents and injuries. Based on the “NAHB-OSHA Jobsite Safety Handbook,” this DVD is intended to be used as part of an essential residential construction safety-training program and includes two 20-minute videos. To view or purchase this DVD online, click here, or call 800-223-2665. OSHA Resources Helping Katrina Recovery WorkersAvailable on the hurricane recovery page on the OSHA Web site, the dozens of listed topics include general decontamination; demolition; dangerous animals; molds and fungi; hydrogen sulfide; respiratory protection; grounding portable generators; and tree trimming. In response to specific requests from workers and employers, more topics are being added to the series on a continuing basis, and three of the cards are now available in Vietnamese for the first time. “These materials provide concise, expert information that will help workers avoid the vast array of hazards they will encounter during the Gulf Coast clean-up and recovery operations,” said Jonathan L. Snare, the acting assistant secretary of labor for OSHA. Thousands of the information tools have been printed, laminated and put in the hands of clean-up and recovery workers throughout the Gulf Coast area devastated last year by Hurricane Katrina. Demolition Safety Tips OSHA warns that in addition to the hazards that arise during regular construction activities, demolition raises concerns about a number of other factors, including lead-based paint, sharp or protruding objects and materials containing asbestos. The agency offers the following tips to ensure the health and safety of demolition workers:
OSHA offers these tips on protecting workers who are cleaning up mold:
For more information on construction safety, e-mail Rob Matuga at NAHB, or call him at 800-368-5242 x8507. New Green Building Course Part of CGB Designation
Green Building for Building Professionals is a new course being offered as part of the Certified Graduate Builder (CGB) designation that gives builders the knowledge to incorporate green building principles in their operations, as well as how to provide value to their consumers. Green Building for Building Professionals, a two-day course, will be offered for the first time on March 11-12 in Albuquerque, N.M. just prior to the 2006 NAHB National Green Building Conference. The conference will be held March 12-14. The course offers in-depth discussions on strategies for incorporating green building principles into homes — without driving up the cost of construction. It also will include information on how builders can provide buyers with lower energy and maintenance costs, improved indoor air quality and long-term value. Techniques for competitively differentiating home products with increased indoor environment quality will also be covered. Chuck Miller, CGB, GMB, of Chuck Miller Construction in Hidden Springs, Idaho, believes his CGB designation not only helped to sharpen his business management skills, it gave him an edge over his competition. “My designations give me credibility in the marketplace,” Miller said. “I feel the CGB is a very good background for anyone in the home building business. It also provides you with great networking opportunities.” Both the course and Green Building Conference will be held at the Hyatt Regency Albuquerque. Special conference hotel rates are available. For more information, or to register for the course or the conference, visit www.nahb.org/greenbuilding.
Attend the 2006 Green Building Conference Plan now to attend the 2006 Green Building Conference, March 12-14 in Albuquerque, N.M. The National Green Building Conference is the only national conference targeted to "green building" for the mainstream residential building industry. The high caliber education programs will give you a chance to meet other green-minded builders from all around the country as well as meet with exhibitors with products to help you build a better home. For more information, click here. 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 educational 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.
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 24 hours a day at www.nahb.org. Just click the "Log In" button to get started. Once you log in, personalize the site to reflect your interests. Simply go to the My NAHB>My Profile page and click the “Edit Content Preferences” link. To learn more about how you can customize My NAHB — including how to customize the links that appear on the Home page ― visit the How to Use www.nahb.org section. Conference Focuses on Green Building MarketWith more than 30 new educational seminars, exhibits of innovative products and a tour of a half-dozen homes in the Albuquerque, N.M. area, this year’s National Green Building Conference March 12-14 offers opportunities for NAHB members who want to build homes with a special focus on preserving the environment. The conference also will unveil an advanced course for the Certified Graduate Builder designation: two days of in-depth discussions on strategies for incorporating green-building principles into homes without driving up the cost of construction; andon providing buyers with lower energy and maintenance costs, excellent indoor air quality and long-term value. Seminars include “Green by Design,” led by green building pioneer and architect Peter Pfeiffer, FAIA; “Make Green Sexy,” on how to turn mainstream buyers into green consumers; a detailed look at environmentally friendly residential remodeling; and “Taking Building Science from the Conference to the Construction Site,” ensuring that attendees will be able to easily translate what they have learned at the show into results for their business. NAHB has partnered with Green Builder magazine to present the Vision 06 demonstration house, which illustrates how sustainability can be achieved with beautiful design and within budgetary constraints. The home is being built by Norm Schreifels of Sun Mountain Construction. On Sunday, March 12, winners of the National Green Building Awards will be honored during a gala dinner recognizing their achievements in residential green building. Hotel rooms are available at the Hyatt Regency Albuquerque at a special conference rate. Conference registration information ($450 for NAHB members, $575 for non-members) is available by contacting registrar@nahb.org.
“Building Green in a Black & White World,” available through BuilderBooks.com, covers everything from the home design process to green substitutes for products ranging from foundations to roofs. The publication includes case studies of successful green companies and useful resources. To view or purchase this publication online, click here, or call 800-223-2665. Builders Say Quality Matters, Raises Productivity, ProfitabilityThe NAHB Research Center’s National Housing Quality (NHQ) Certified Builder program, a quality assurance program for builders of all sizes, increases productivity, customer satisfaction and profitability, according to two of the programs’s initial participants. The two builders, Grayson Homes, a small production builder based in Ellicott City, Md., and KB Home Las Vegas, gave their assessment of the program during a press conference at the International Builders' Show in Orlando, Fla. last month. Both builders said the progam, which formally was launched in January 2005 and has grown from three initial participants to 26 builders nationwide, has resulted in measurable inprovements in their productivity, home buyer satisfaction and their bottom lines. The NHQ program is a certification-based program for builders who have implemented and documented quality management systems. The program requires a rigorous annual review of the builders’ systems, a process designed to advance consistency and quality in building practices. The program also includes trade contractor participation. Fostering Consistency Cynthia McAuliffe, president of Grayson Homes, said her company has experienced a significant increase in customer satisfaction — and a corresponding decrease in warranty spending — since she implemented the NHQ program. McAuliffe said home buyer satisfaction at settlement has risen from 95.7% to more than 98% since the program was implemented. The percent of customer lists signed off at settlement, she said, has increased from 95.3% to 97%. “This program has given us consistency, and consistency is gold in our business,” McAuliffe said. McAuliffe said warranty spending has decreased 43% — from $242,000 in 2003 to $137,000 in 2005 — because of the progam. She also said she believes the higher levels of customer satisfaction have helped increase her profitability. Before Grayson Homes implemented the NHQ certification program, McAuliffe said her net profits were about 10.4%. Since, the program was implemented, the company’s net profits have jumped to over 18%, she added. Reducing Production Time Douglas Eddie, quality manager for KB Home Las Vegas, said the program has resulted in his division achieving and maintaining a customer satisfaction rating of 95%, the highest in the company’s history. In addition, he said KB Home Las Vegas was able to reduce its average cycle time by 24 days because the program helped him increase the effectiveness and efficiency of his trade contractors. Eddie, who characterized his company as a “management company” relying upon trade contractors for the production work, said his division developes eight acres and averages 75 closings a week “To get quality at that rate of business is a challenge,” he said. Eddie said his division has reduced warranty callbacks by 28% and landscaping warranty callbacks by 41%. In addition, he said KB Home Las Vegas has been able to reduce the need for crews to return to houses to work by 50% since the quality assurance program was implemented. “We were able identify the reasons behind quality defects, their root causes and the processes that fostered them, and we were able to implement changes,” Eddie noted. He credits the improvements to the NHQ program’s rigorous documentation and review requirements. Michael Luzier, NAHB Research Center president, said the program has grown in the year since it was formally introduced and now includes builders in 18 states. Of the 26 builders participating, he said, 20 companies have NHQ certifications. “In a competitive market, one of the ways builders can differentiate themselves is through the quality of their products,” Luzier said. “The NHQ Certifed Builder program allows them to pro-atively address production problems.” Frank Alexander, NHQ program director at the research center, said more builders are beginning to focus on quality because consumers are becoming more savvy and demanding better quality homes. In addition, he said builders also are focusing more on quality because of an increase in construction defect litigation in some areas of the country, and the limited availability of general liability insurance and a subsequent increase in insurance costs. “The NHQ Certified Builder program is working because builders have acknowledged the industry’s issues and are using this quality management business tool to help resolve them,” Alexander said. In addition to the builder program, the research center has a companion and complementary program for trade contractors, the NHQ Certified Trade Contractor Program. More than 2,000 contractors are currently participating. Of those, 229 have earned NHQ certifications. Three 20 Club Members Named America’s BestThe three winners of Builder magazine’s 2006 America’s Best Builder award have one thing in common: All three are members of NAHB’s Builder 20 program. Builder profiled the three 20 Club members in its January 2006 issue:
Mid-Atlantic Builders has been a 20 Club member since 1996, and Caruso Homes joined the program in 1998. John Laing Homes just recently joined the 20 Club program. Jeff Caruso, owner and chief executive officer of Caruso Homes, credits much of his company’s success to its membership in NAHB’s Builder 20 program. “Builder 20 has been the single best information resource as Caruso Homes has developed our policies, tackled tough issues, picked software and increased our customer satisfaction levels and our bottom line,” Caruso said. “My first 20 Club meeting was so informative that I can remember deciding that day I was going to quit messing around, roll up my sleeves and focus on developing the best home building company in the nation,” Caruso said. David Herzog, president and chief operating officer of Caruso Homes, said participation in the 20 Clubs has yielded unparalleled benchmarking opportunities and thought provoking ideas that lead to innovation, growth and improved profitability. The recognition as one of the nation’s best builders is a result of hard work and the application of many of the ideas first heard in 20 Club meetings, Herzog said. “To be acknowledged by peers as worthy of such a prestigious award makes all the hard work worthwhile. It inspires us to strive for even more in the coming year,” he said. “Any builder serious about their business, its quality and profitability simply cannot afford to miss this critical resource,” Herzog said. Builder 20 Clubs attract the best people in the industry and help them get better, said Roger Lebbin, president of Mid-Atlantic Builders. The 20 Club program, he said, “is one of the greatest things NAHB has ever done.” Participation in the 20 Club has been critical to the company’s success, said Stephen Paul, executive vice president of Mid-Atlantic Builders. The “priceless opportunity” of being in a club is not solely about building a successful company, but also about building relationships with the other club members, Paul said. For information on joining a 20 Club, e-mail Jeffrey Lambert at NAHB, or call him at 800-368-5242 x8609. ‘Fear Factor’ Sells Advanced Home Technology“We’re more afraid of losing than we are happy about gaining,” said Maureen McNulty, the information and outreach coordinator for the Partnership for Advancing Technology in Housing (PATH) program, a public-private partnership that works to speed the development and adoption of advanced building technologies. “Do the right thing is a message that does not motivate people to act,” she added. “Loss messages are more powerful than gain messages in eliciting action.” When pitching products, McNulty said that builders should utilize the “fear factor” and frame the argument by emphasizing to buyers what will happen if they don’t purchase these products. For example, when selling energy-efficient upgrades, she said to stress that monthly energy bills will run significantly higher with lower-grade insulation and that these added costs will erode their quality of life by taking a bite out of the family budget. “What will have to go? Dance lessons? The morning latte? Make the loss tangible,” she said. Noting that many PATH-profiled technologies can mitigate wind and water damage, McNulty said the sales pitch should focus on the specter of major storm damage, or complete devastation. “Invest now, or be sorry later,” she said. Summing up this sales philosophy, McNulty said: “You’re not selling upgrades. You’re warning consumers about the risk of downgrading.” Outscoring the Competition In evaluating the decision-making process of consumers, Bill Asdal, president of Asdal Builders LLC based in Chester, N.J., said that the three main components involve criteria, weighting and scoring. Criteria include such factors as cost, contractor pressure, social responsibility (the right thing to do) and peer pressure (keeping up with the Joneses). Asdal developed spread sheets that reflect how consumers weigh individual criteria and assign an overall score to the process. The idea, he said, is to create a “value proposition” that outscores the competition. “If you can create value, you can probably close the deal,” said Asdal. “If they want it, I show them their return.” In seeking to sell advanced technologies, McNulty said that earned media is a far more powerful tool than purchased advertising. “Be newsworthy. Get stories of innovative projects in trade publications or published by PATH. Earned media is gold.” Builders utilizing innovative products, techniques or practices were also encouraged to contact PATH to be featured in PATH case studies examining the latest advanced building trends and to also become a PATH partner. For more information, visit www.pathnet.org, or e-mail info@pathnet.org. Precautions Minimize Hospital’s Katrina DamageThe following article has been provided by the Federal Emergency Management Agency. As Category Five Hurricane Katrina approached the southeast Louisiana coastline, the Louisiana Heart Hospital (LHH) prepared for the worst. Michelle Hays, the hospital’s chief financial officer and acting chief executive officer, led the effort along with Bart Gomez, team leader for facilities management, and committed medical staff and physicians. During Katrina’s approach, the hospital accepted transfer patients from area hospitals located on low-lying ground. Devoted hospital staff cared for more than double its normal patient load. The hospital never lost power or water supply and sustained only minor roof damage. It also provided housing, meals, meeting rooms and medical care to law enforcement and response teams in the days following the hurricane. Prudent decision making during the design and construction of the facility contributed to its ability to withstand the storm. Opened in February 2003, the 58-bed, specialty care facility, is located in Lacombe, in St. Tammany Parish. The non-flood zone property was selected for its convenient location between Covington and Slidell, above the storm surge projection. “Its location dictated a wind-resistant design per code requirements, including common engineering safety features,” said Wynn Searle, vice president of operations/hospital development at Medcath. Historical storm data also indicated the need for particular attention to hurricane-resistant design in this Southeast Louisiana region. A wetland survey revealed the need for extensive site preparation, which included the placement of more than $1 million worth of sand to compress the swamp-like soil. Safety measures included installing impact-resistant windows that meet the missile impact test created for hurricane prone areas by Miami Dade County, Fla. These reinforced windows are designed to withstand sustained winds of 130 m.p.h. to 140 m.p.h. According to Searle, “measures were taken to attach the roof membrane to meet a certain ‘wind uplift requirement’ (determined by their insurance company and testing lab) to preclude uplift from significant wind storms.” He added that there were additional costs associated with the damage prevention measures, but that the minimal damage sustained by the hospital clearly demonstrates their cost effectiveness. According to hospital officials, the facility’s flood insurance premiums would have been considerably higher if it had not been built with such hurricane-resistant methods and materials. An independent water-treatment plant for domestic water supply and fire protection, and a 1,700-foot well that was drilled during construction, enabled the facility to keep functioning after the disaster. The hospital’s two large generators engaged when electrical power failed. Additional diesel fuel was ordered as the storm approached, enabling the hospital to run air-conditioning units and continue dialysis treatments, cardiac catheterization lab procedures and surgeries. The protocol for back-up diesel fuel now has been addressed and cylinders have been purchased to hold an additional 1,800 gallons of fuel on site. The staff realized that the worst was about to hit as the winds increased. All entrances to the hospital except the emergency entrance were blockaded and sandbagged. No flooding occurred and the only damage the hospital sustained was caused by mechanical roof screen panels bolted to a support system on the roof, designed to disguise the air handling system. The hurricane winds played havoc with the panels, slashing parts of the hospital roof and causing some leaks. Several cars in the parking lot were damaged by flying debris. Consequently, hospital officials have decided not to replace the cosmetically designed panels. Problems with the hospital information technology system prevented outside communication during the hurricane. According to Hays, “there were no land lines, no cell phones, no e-mail, no form of communication with the outside world.” To prevent future interruptions, LHH has purchased a satellite phone, a satellite system enabling e-mail and voice capability via computer. Because some communication towers were working sooner than others, service from multiple cell-phone providers has been acquired. More than a month after Katrina, the hospital continued to be a hub of activity. It served as a meeting place for local officials and law enforcement, and offered employment opportunities for at least 80 people who lost their jobs because of the storm. Patient transfers were still being made because of staffing shortages in other areas. Clearly, the mitigation measures LHH took to reinforce their building benefited patients, staff and the surrounding communities. According to Hays, “No one expected this hospital to play the role that it did during this disaster event.” NAHB Student Members in the Spotlight at Builders’ ShowStudents from California Polytechnic University–San Louis Obispo are the winners of the Residential Construction Competition in the four-year division. Highlighting the show were the Centex Homes-sponsored Residential Construction Competitions (RCC) at which 21 high schools, vocational schools and two-year colleges participated in the two-year competition and 37 universities fielded teams for the four-year division. Prior to coming to Orlando, each participating school assembled a six-person team that was asked to take a large-scale housing construction project from groundbreaking to completion. Competition judges decided on the winners based on two days of presentations by the students at the show. RCC Results The RCC winners were announced at the Student Chapters Award Ceremony, sponsored by Beazer Homes. Cal-Poly San Luis Obispo successfully defended its previous first-place standing among four-year universities, followed by Arizona State University in second place and Texas A&M University in third. In the two-year division, finding it difficult to narrow its team to six students, Brigham Young University – Idaho formed two separate teams for the competition in Florida. BYU-Idaho (Mark Austin Homes) won the first-place trophy, while BYU-Idaho (Pure Home Design) placed third. Coming in second was last year’s top winner, Pennsylvania College of Technology. The secondary division saw defending champion Juneau Douglas High School hold onto its first-place standing, with Bloomington Area Vocational Center coming in second. Rookie of the Year awards were given to first-time RCC participants who displayed significant promise: South Dakota State University in the four-year category and Dunwoody College of Technology among two-year schools. Winning teams took home the coveted NAHB Student Chapters divisional trophy and individual plaques, along with high-tech calculators donated by Calculated Industries and duffel bags from Sage Timberline. Outstanding Leadership, Chapters, Faculty and Students
For more information on NAHB Student Chapters, e-mail Page Browning at HBI, or call her at 800-795-7955 x8918. Group Provides Expertise on Home Electronics OptionsA new subcommittee, the Home Electronics Working Group, has been established by the National Council of the Housing Industry — the Supplier 100 of NAHB to keep builders updated on the latest trends and innovations on the home technology front. The group, consisting of NCHI member companies, conducted its first home technology forum last month during the International Builders’ Show in Orlando, Fla. “Having this forum at an international event such as IBS gives many home builders the opportunity to talk about their home technology needs with manufacturers from the consumer electronics industry,” said Kevin Kelly, vice president of Builder AV and co-founder of the Home Electronics Working Group. The forum featured a panel of custom, small volume and production builders from around North America who discussed such topics as how to effectively boost awareness of consumer electronics, and how builders can encourage the adoption of consumer electronics as standard options in their homes, as well as create and design model home programs. The panel was moderated by Lee Odess, a liaison for the Custom Electronic Design & Installation Association's Home Builder Outreach and Education Board. There will be many subsequent discussions “as we develop a single message for consumer electronics where builders can feel comfortable about their options,” said Odess, who is a co-founder of the Home Electronics Working Group. The mission of the working group is to increase awareness of home technologies within the residential construction industry. Through conferences, local training and forums, the group plans to educate builders and elevate the standard level of technology in the homes that are being built today. The Home Electronics Working Group is open to all NAHB and NCHI members in the building, remodeling, manufacturing and design industries. To learn how to become a member of NCHI and the Home Electronics Working Group, e-mail Barbara McMurray at NAHB, or call her at 800-368-5242 x8243. 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. NAHB-Produced Programs on HGTV & DIY This WeekNAHB-produced television shows for consumers on HGTV and DIY: "I Want That" on HGTV
"Dream Builders" on HGTV
"Rock Solid" on DIY
"Assembly Required" on DIY
The NAHB Production Group is a full-service, self-contained, media production unit creating programming for cable television, broadcast television, non-profit, museum and corporate clients. Productions range from magazine format shows for general audiences to museum-installation videos for specialized use. The production group includes award winning journalists, writers and photographers with experience in broadcast, documentary and corporate television.
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 24 hours a day at www.nahb.org. Just click the "Log In" button to get started. Once you log in, personalize the site to reflect your interests. Simply go to the My NAHB>My Profile page and click the “Edit Content Preferences” link. To learn more about how you can customize My NAHB — including how to customize the links that appear on the Home page ― visit the How to Use www.nahb.org section. Texas Builder Earns Top Honor for Community ServiceDesert View Homes of El Paso, Texas, was awarded the 2005 Gold National Housing Endowment Builder Achievement Award for Outstanding Community Service during the recent International Builders’ Show in Orlando, Fla. Desert View Homes is the first builder to receive the award, which was established last year to honor builder, developer and remodeler members of NAHB for their exceptional philanthropic endeavors. In honor of Desert View Homes, a $10,000 donation was made to a charity selected by the company, the El Paso Association of Builders Construction Trades Education Corporation.
“Receiving an award like this, particularly in its initial year, is a great honor,” said Randy O’Leary, CEO of Desert View Homes. “Working on these various service projects has truly unified our staff and our El Paso community. And while the benefits have been tangible to the recipient families, an impact just as tangible has been felt by our volunteers, whose contributions made a real difference.” The builder developed two approaches to providing service to the local community. One focuses on the educational and economic conditions in El Paso, and the other addresses specific social issues in the community. Both forms of service are channeled through non-profit organizations that Desert View Homes created.
Partnering with El Paso Community College, Desert View Homes created a program of studies in the building trades, a 16-course module taking students through the entire home building process. The students actually build a house from the ground up, with supplies and materials provided by Desert View Homes. In turn, profits from the sale of the house are used to provide scholarships for additional students to attend the classes. Graduates also have the opportunity to be placed into the work force and 50% of their wages are paid by a federal government grant for a six-month period. To address social issues in the El Paso community, Desert View Homes established El Paso Families First, an organization that seeks to help families in all aspects of their lives. Part of its services include outreach that assists 20 to 30 families monthly with food and clothing. These families also receive financial help with expenses such as medical bills, furniture, rent, and special occasions. “Our members are active, committed citizens in their local communities and often their charitable involvement goes unnoticed,” said Gary Garczynski, chairman of the National Housing Endowment, NAHB’s philanthropic arm. “Desert View Homes exemplifies this philanthropy in its truest form. This award shines a positive light on a builder bettering his community, and at the same time provides a source of inspiration for others and delivers a positive message about our industry.” Seven other builders were honored with silver, bronze and honorable mention Builder Achievement awards during the presentation. The awards were established through a grant to the endowment by Isaac Heimbinder, vice chairman, president and COO of Kimball Hill Homes, based in Houston. For the complete list of winners, click here. 2006 NAHB Committee and Council LeadershipThe NAHB council and committee leadership positions for 2006 are: 50+ Housing Council
Associate Members Committee
Association Planning Committee
Audit Committee
Budget and Finance Committee
Building Product Issues Committee
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