Print-All Page: February 13, 2006

Legislation that would expand opportunities for enlisted military personnel and their families to obtain safe, decent and affordable housing received the support of the nation’s home builders last week.

Testifying for NAHB before the House Subcommittee on Housing and Community Opportunity, Bobby Bowling, a third generation home builder and president of Tropicana Homes in El Paso, Texas, said the bill — H.R. 3186, the “Build Houses for Our Military’s Enlisted Servicemembers Act” — would allow more military families to qualify for Low Income Housing Tax Credit (LIHTC) properties.

“This important legislation increases access to affordable housing for enlisted military personnel, specifically through the housing tax credit program,” said Bowling. “This would be especially helpful at Fort Bliss in El Paso, where there is a tremendous shortage of decent, affordable housing for enlisted military personnel and their families.”

The legislation would correct a technical anomoly in how income eligibility is calculated for enlisted military personnel who seek to qualify for residency in a tax-credit home. This would be achieved by excluding military members’ housing allowance from their annual household income when qualifying them for the tax credit properties.

Bowling told lawmakers that many of NAHB’s multifamily members who develop and operate affordable housing built under the LIHTC program in communities with substantial military populations, such as El Paso, often have to turn down some members of the military, particularly junior enlisted personnel, because their income is just over the maximum permitted under the program’s rules.

“With the men and women in our armed forces facing shortages of affordable housing at duty stations across the country, the situation is only expected to worsen by the transfer of military units as part of the recent Base Realignment and Closure process,” he said. “H.R. 3186 would permit more U.S. service members and their families to qualify for housing under the LIHTC program, the finest affordable housing production program in history.”

To read the legislation, click here and enter H.R. 3186 in the box at the center of the page.

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

Approval and Permit Process Top Challenge for Builders

The development approval and permitting process has emerged as the most challenging issue for the nation’s home builders in NAHB’s latest survey of the critical issues facing the association’s membership. With some differences among the various regions of the country, the issue nationally received an average rating of 4.32, on a scale where 1 indicates that an issue is not critical and 5 that it is very critical.

Following closely behind as the second most vexing issue for builders was the cost of liability insurance, which averaged 4.29. This had been the leading issue confronting NAHB members since it was included in the survey in 2002 until the current critical issues report, which covers the period of October 2004 through December 2005.

The cost and supply of lumber and cement were in third and fourth place in the latest survey, with ratings of 4.25 and 4.23, respectively. Development costs were ranked fifth with a rating of 4.l9.

Labor availability was ranked sixth in the latest survey. Labor shortages were the leading concern of NAHB members for 11 consecutive quarters — from the second quarter of 1998 through the third quarter of 2001. That concern faded gradually since that time, dropping to 14th place during the July 2003 to June 2004 period.

Rounding out the top 10 critical concerns were: the cost of lots, in seventh place, averaging 4.16; impact fees and development exactions, in eight place, at 4.14; the availability of lots, in ninth place, at 4.10; and availability of affordable housing, in 10th place, 4.08.

Looking at responses from different parts of the country, the developmental approval and permitting process was significantly lower on the list in Region C (Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, North Dakota, Ohio and South Dakota) and Region D (Arkansas, Kansas, Louisiana, Mississippi, Missouri, Nebraska, Oklahoma and Texas).

In Region C, the top three concerns were related to the price and supply of lumber (4.36), gypsum board/sheetrock (4.31) and cement (4.25).

In Region D, liability insurance costs (4.59) remained the greatest challenge for members of NAHB, followed closely by storm water management and permits (4.41).

The availability of lots (4.54) was the most critical issue for NAHB members surveyed in Region A (Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont and Virginia), followed by the availability of affordable housing (4.46) and the cost of lots (4.44).

Lot costs (4.68) were the top worry in Region E (Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington and Wyoming.)

For more information, e-mail Gerry Keegan at NAHB, or call him at 800-368-5242 x8326; or contact Sam Leyvas, x8584.

Rhode Island Builders Help Military Families

When Army reservist Chris Potts and his wife Terri bought their fixer-upper in Tiverton, R.I. two years ago, their plan was to make repairs and cozy up the place as time and money allowed.

When they found out Chris’ unit was shipping off to Iraq, the couple was in the thick of the project. They put it on hold until Chris’ return.

But Chris didn’t return to his home. Sgt Christopher Potts, a member of Alpha Battery, First Battalion, 103rd Field Artillery, U.S. Army Reserve, was killed in action in Tagi, Iraq, in October, 2004.

In the months that followed, Chris’ fellow reservists helped a grieving Terri and her two children as they tried to make a new life for themselves. When Rhode Island found itself awash in record-breaking rains last fall, the Potts’ basement family room was flooded. Members of Chris’ old unit pulled out the sodden carpeting, furniture and drywall. “There was nothing left but the ceiling tiles,” said builder Bob Baldwin, who learned of their plight in late 2005.

Baldwin and fellow members of the Rhode Island Builders Association found out about the Potts family because they had just decided to launch a new charitable initiative, Builders Helping Heroes. Based on a similar program in Florida, Builders Helping Heroes provides construction assistance to veterans with special housing needs who have been injured in combat since Sept. 11, 2001.

The association’s volunteers and staff kicked off the program last month in a ceremony that included top elected officials and military officers in the state, but Baldwin and his fellow builders started the work in December, when the Army told them about the Potts family.

“The situation was pretty difficult for her,” Baldwin said. Between the half-started renovation work and the flooded basement, “the house was in pieces.” Baldwin put together a scope of work on Friday, Dec. 16. And then he started to work the phones.

Innovative Construction volunteered a team to do some carpentry. Builders Surplus Inc. donated doors. Crews descended on the Potts home the following week to replace millwork and moldings and hang exterior and interior doors, and Steve Schmidt of Trinty Painting and his crew painted all the bedrooms, living room and hallways.

“Everybody pulled together and these guys worked very hard,” Baldwin said. “It was really rewarding the first time I saw her smile. I had never seen Terri smile, ever.”

Now, Baldwin and a cast of volunteers are working on the design phase for more work: a new mudroom off a remodeled kitchen, work in the basement and a permanent solution to the home’s recurring water and flooding problems.

Getting all that work done the week before Christmas was “almost a miracle,” Baldwin said. But the credit goes not to the volunteer crews, but to the service men and women that Builders Helping Heroes is set up to help.

“We’ll never be able to repay these people for the sacrifice they have undertaken for this country. What they do on a daily basis, picking up that gun or strapping themselves into that fighter plane, these are the people who do their best to make sure that what happened Sept. 11 doesn’t happen again,” Baldwin said.

“The bands stop playing, the TV cameras go away and these soldiers have a permanent situation they’ll have to live with for the rest of their lives,” he said. “Freedom isn’t free, and politics aside, these are the guys who pay the price so that you and I can conduct our lives and raise our families and not worry about being blown up.”

Finding a House Gets Easier — Inventories Rise Sharply in Many Major Markets as Buyers Hang Back

The inventory of homes on the market is climbing sharply in a number of major cities. There were 2.8 million existing houses and condominiums on the market at the end of last year, according to the National Association of Realtors®, up 26% from a year earlier. Since last spring, inventories have climbed steadily in Phoenix, where the traffic is still holding up but prospective buyers are taking their time and sellers will consider lowering their price if there are no takers within 30 days. Sales in Detroit fell nearly 10% in last year’s final quarter and inventories were up amid uncertainty about auto-industry layoffs. One brokerage firm there is running a promotion in which sellers agree to provide $2,000 to $10,000 toward buyer closing costs on purchases before April 15. In Seattle, on the other hand, inventories have declined modestly over the past 12 months as a robust job market sustains demand, and the supply of homes is tight. Among big builders, the Ryland Group Inc. announced that new orders were down 4.7% for the quarter ending Dec. 31. New orders at Standard Pacific were off 20% for the same period. In the Tampa, Fla. area, Lennar has been offering discounts of $20,000 to $30,000, plus help with closing costs and bonuses to brokers, on selected homes. (www.wsj.com)
Wall Street Journal (2/8/06); Ruth Simon and James R. Hagerty

Toll Says First-Quarter Orders Plunge 29%, Cuts Forecast

Luxury home builder, Toll Brothers Inc., whose homes cost almost three times the U.S. average, reported that its orders dropped 29% during its first fiscal quarter, which ended on Jan. 31. Orders were down to 1,544 from 2,173 a year earlier, and the Pennsylvania-based company is now forecasting that its sales will rise 4.9% this year, half its previous forecast. “The Toll Brothers data is telling us that the fairy dust of rising home prices is floating away,” said Stephen Roach, chief global economist at Morgan Stanley in New York. The company’s average home costs $709,000, compared with the U.S. average of $272,900. Toll’s selling price rose 14% from a year ago, compared with a 2.4% gain for the industry. “They’re not going to be able to replicate that now because we’re going to see prices start to level off — not collapse,” said Karl Case, an economics professor at Wellesley College in Wellesley, Mass. (www.bloomberg.com)
Bloomberg (2/7/06); Kathleen M. Howley

Builder Blows Into Florida, Brownstone Builders Will Develop Hurricane-Resistant Luxury Homes

BrownStone, based in Landenberg, Pa., is partnering with Palm Harbor Homes to build a 52-home gated project called Porte de la Mer south of Tampa, Fla. The development will be the first to be certified by NextGen, a consortium of manufacturers of smart-home products. The homes are crafted inside Palm Harbor’s climate-controlled fabrication centers; put together at subassembly sites; and then taken apart and trucked to final construction sites in three or four sections. The units are all interconnected to withstand 150-mph winds, to meet the state’s recently toughened wind codes. “Florida has really tough standards, some of the toughest in the nation,” said James R. Brown Sr., BrownStone managing partner. “That’s what I like to see. With some states, you just pay a fee and you’re in. That’s not the way it works in Florida.” (www.orlandosentinel.com)
Orlando Sentinel (2/9/06); Jerry W. Jackson

Long Johns for the Home: Icynene Is Pricey, But the Foam Insulation Shuts Out Cold

Icynene, a foam insulation, was a quiet star at last month’s International Builders’ Show in Orlando, Fla., appearing in the New American Home and the NextGen Home. The foam, which reduces heating and cooling costs by an average 50%, was named one of the top 100 products in 2005 by Home Builder magazine and has been approved by the National Building Code of Canada, NASA, the NAHB Research Center and Energy Star. The water-based insulation was created by chemical engineer Gabe Farkas in 1986 as an effective environmentally friendly insulation that also stops mold. The American market for the product opened up when financial adviser Graeme Kirkland was a regular on “This Old House.” “Many Americans saw Icynene and wanted it for their homes,” he said. He estimates that the company posted a 35% growth in sales last year and will likely do the same again in 2006, surpassing $100 million in sales. The price of Icynene is 2.5 times that of pink insulation. (www.canada.com/ottawacitizen)
Ottawa Citizen (2/4/06); Sheila Brady

Home Work 10 Most Wanted

Among 10 products that are likely to be a hit among new home buyers sometime soon, according to Newsday, is a high-tech toilet seat that sprays users clean with a wand attachment. Models are available from Toto, a Japanese company, and Brondell, an American manufacturer. First on the list is Z-Wave technology one-touch control of household lights, security systems and appliances plugged into electrical outlets. Devices are controlled by a wireless remote, like those used for TVs. Information on the product can be found at www.Intermatic.com; www.Leviton,com; and www.z-wave. Another product destined for popularity is flexible plastic plumbing from Zago Flexible Moulding (www.FlexibleTrim.com) that bends and curves to complement wood and painted moldings in both interior and exterior use. Seen at www.EonOutdoor.com, eon fencing is a highly engineered polymer that has the look and feel of wood but the durability of vinyl. It resists rot, mold and insects and is lighter than most composites, which blend recycled plastic and wood fibers. (www.newsday.com)
Newsday (2/9/06); Gary Dymski

Cap Rates Likely on the Rise in 2006

In addition to uncertainty over how much long-term interest rates will increase in 2006, the biggest question on the minds of those in the multifamily industry for the new year is just how closely cap rates will track permanent mortgage rates upward. The consensus among expert sources consulted by Apartment Finance Today magazine is that cap rates seem bound to rise somewhat as the year progresses, but probably won’t rise as much as long-term debt costs. Long-term mortgage rates have been creeping up, “and the expectation among buyers seems to be that cap rates will have to follow,” said David Baird, national director of investment brokerage Sperry Van Ness’ multifamily practice. “We haven’t really seen cap rates start moving upward in the coast markets in particular, but it seems it’s bound to happen.” (www.housingfinance.com)
Apartment Finance Today (January/February 2006); Brad Berton

Letter to the Editor: Shotgun Houses

I enjoyed your article on the new housing for Katrina victims (“Tidy Katrina Cottage One Approach to Rebuilding Effort,” Jan. 30, 2006). However, I would like to call your attention to the fact that this type of housing has been around and existing throughout the South for more than two centuries.

In the city of Darlington, S.C. there can be found today similar "shotgun houses," which were constructed as tenant or sharecropper housing in the economically depressed post-war South before and after the "War Between the States."

These structures are relatively inexpensive to produce and transport; are easily erected and completed; and can be mass-produced. Undeniably, it does offer an answer to the dilemma that the storm-ravaged areas of the South have again encountered. Although these units may not always be desirable as permanent housing, they do get the victims out of temporary shelters and tents and into "code-acceptable" homes.

I once read an article in Architectural Digest where similar structures as these were renovated as "upscale living apartments" in Birmingham, Ala. The renovated units were later resold at prices many times higher than their original cost. So, who knows, these new shotgun houses now being manufactured and provided to Katrina victims may someday find an enduring place in the housing market. Apparently this "historical design" has found new uses in helping our nation and our storm victims recover from the ravages of Mother Nature.

Virginia Builders Rally Against Anti-Growth Policy

More than 100 members of the Virginia housing industry showed up in full force at the state capital recently to voice their opposition to the newly elected governor’s anti-growth proposals.

The Home Builders Association of Virginia (HBAV) sponsored a “housing blitz” in Richmond after new Gov. Tim Kaine (D), in office just days, announced plans to give local governments more power to restrict the development of much-needed new housing.

The housing industry can claim victory, for now, over the proposed anti-growth measures because the deadline has passed for legislators to introduce new bills during their current session. But the builders still can’t let down their guard, because the governor of Virginia has extraordinary powers that could enable him to revive this issue prior to the March 12 scheduled adjournment of the state legislature.

The housing blitz received significant media coverage, including a Washington Post story quoting Mike Toalson, the association’s executive officer, who said, “The more troops we have this year, the more effective we will be.”

Since his election, Gov. Kaine has traveled the state highlighting his intent to pressure the state legislature to grant municipalities and counties the new authority to adopt “Adequate Public Facilities” (APF) for roads ordinances. These ordinances would allow jurisdictions to approve or reject land-use plans based solely on their determination of the adequacy of public facilities, such as roads and schools.

Toalson points out that the proposed APFs are contrary to the development process, noting that construction of public roads follows residential and commercial growth, and that builders do not construct roads to nowhere, basing their hopes that one day there will be development near those roads. “Localities neither have the vision nor the resources to build roads to nowhere, which APF growth management authority would require,” Toalson said.

To prepare for the blitz, the Virginia association armed the housing industry representatives with solid background information to take to their lawmakers. HBAV pointed out that in those places where adequate public facilities requirements have been put in place, the cost of new and existing housing has increased dramatically because new home construction has not been able to keep pace with demand. And in those areas that have adopted APFs, sprawl actually has increased as those working at new jobs in the popular suburbs have sought more affordable housing further away from their offices.

For more information about HBAV’s housing blitz, e-mail Mike Toalson with the state home builders association.

Eye on the Economy

Growth of real Gross Domestic Product (GDP) slowed even more than expected in the final quarter of 2005, slipping to an annual rate of only 1.1% — according to the “advance” estimate released by the Commerce Department on Jan. 27. This was the lowest growth rate in three years and raised serious questions about the sustainability of the economic expansion.

Data since the release of the anemic GDP report suggest only a slight upward revision to the fourth-quarter “advance” estimate. However, the composition of the slowdown, along with available indicators of economic activity for the early part of 2006 and an obvious swing in weather conditions, point toward a nice rebound of GDP growth in the first quarter of this year.

Although the quarterly patterns have changed quite a bit, we’re still forecasting above-trend GDP growth for 2006.

The Labor Market Is Performing Quite Well, But the Degree of Slack Is Shrinking

Payroll employment growth was solid in January (a net gain of 193,000 jobs). This performance, along with upward revisions to fourth-quarter payroll jobs and a downward trend in claims for unemployment insurance through January, provide reassuring evidence that forward momentum in the economy has been well maintained despite the fourth-quarter GDP shortfall. Furthermore, the nation’s unemployment rate moved down significantly to 4.7% in January, the lowest level of the economic expansion to date.

A falling unemployment rate certainly is good news for the country, although sluggish growth in the labor force and a disappointingly low labor force participation rate (66.0%) are parts of the pattern.

In any case, it’s clear that the degree of slack in labor markets is being systematically reduced, with potential inflationary consequences as the economic expansion rolls along.

Core Consumer Price Inflation Remains Low Despite Threats from Labor and Energy Markets

Alternative measures of labor costs are throwing off somewhat different signals, but movements in average hourly earnings in the employment reports show a definite pattern of acceleration in recent months. This pattern, combined with an apparent cyclical slowdown in growth of labor productivity, has heightened concerns about rising unit labor costs down the line. The Federal Reserve, of course, views unit labor costs as the key to core inflation patterns.

Measures of core consumer price inflation, including the market-based core personal consumption expenditures (PCE) price index — the Fed’s favorite — remained very much under control through the end of 2005. But broader measures of core inflation, including the core GDP price index, have accelerated to some degree.

Some pass-through of high energy costs into core inflation is likely, and unit labor costs are likely to firm up to some degree before long. We’re projecting some increase in core inflation this year, threatening the bounds of the Fed’s implicit comfort zone.

The Fed Hiked Short-Term Rates on Jan. 31 and Another Increase Is in the Cards

As expected, the Fed enacted another quarter-point increase in short-term interest rates at the Jan. 31 meeting of the Federal Open Market Committee (FOMC), raising the federal funds rate target to 4.5%. The FOMC statement was less equivocal than prior statements about future rate hikes and also dropped the word “measured” in describing the possible degree of future tightening.

In essence, these changes give the new Fed chairman, Ben Bernanke, maximum flexibility to craft future monetary policy. That’s a present from Alan Greenspan, who chaired his last FOMC meeting on Jan. 31.

The Jan. 31 FOMC statement not only insisted that the economic expansion remains “solid” despite recent “uneven” economic data (including the fourth-quarter GDP report), it also fretted about the inflation potential of tightening resource markets and elevated energy prices.

The rather hawkish tone of the statement, along with recent signals from both labor and energy markets, have compelled us to add another quarter-point rate hike to our forecast of the funds rate — to occur at the next FOMC meeting on March 28.

Long-Term Interest Rates Appear Range-Bound, But Moderate Increases Are in Store

Long-term interest rates have been rattling around in a narrow range during recent months, and the Treasury yield curve now is essentially flat. In essence, upward pressures on long rates from current and prospective Fed rate hikes have been counterbalanced by an easing of long-term inflation expectations (following the post-hurricane spike last fall) and by an ongoing strong appetite by foreign investors for dollar-denominated securities.

The recent stability of long-term rates has compelled us to trim NAHB’s forecast for bond and mortgage rates a bit across the 2006-2007 forecast horizon, despite our call for more Fed tightening in the near term. We still show a persistent updrift in long rates this year, at least on a quarterly basis, maintaining a slight upward slope to the Treasury yield curve.

Housing Market Activity Has Come Off 2005 Peaks and Price Appreciation Is Slowing

The long-awaited housing slowdown becomes more convincing as time passes, despite seasonal- adjustment difficulties during the winter months.

Housing starts and building permits both were down by 3% in the fourth quarter, single-family home sales (new plus existing) were down by 4%, sales of existing condos were down by 6% and “pending” sales of existing single-family homes (based on contracts signed rather than closings) also were off by 6%.

In December, the median price of existing homes sold (single-family plus condo) was up by 10.5% on a year-over-year basis, down from appreciation rates of more than 15% a few months earlier.

NAHB’s single-family housing market index (HMI) hit its expansion high in June (72), slipped systematically to 57 in December and then stabilized in January. Indeed, the components for current sales, buyer traffic and sales expectations have receded by equivalent amounts.

Furthermore, weekly surveys of home mortgage lenders (conducted by the Mortgage Bankers Association) also show rather convincing signs of slowdown. The index of applications for mortgages to buy homes, available through early February, shows an 11% decline from its late-September high (four-week moving average basis).

Both Homeownership Rates and Multifamily Rental Vacancy Rates Are Down From Record Highs

Soaring costs of home buying combined with sluggish growth in apartment rents have led to erosion of the nation’s homeownership rate and a simultaneous reduction in the multifamily vacancy rates — both from record highs posted in the early part of 2004. Indeed, the vacancy rate for apartments in buildings with five or more units has fallen from 12.0% to 9.5% in the process, retreating to a level not seen since early 2001.

While multifamily rental vacancy rates have been tumbling, the rental vacancy rate for single-family homes has been climbing to higher and higher levels.

For the first time in recorded history, the single-family rate climbed above 10% and actually exceeded the multifamily rate in the final quarter of 2005. The strength of this movement is symptomatic of the dramatic upswing in the investor share of home purchases since the late 1990s.

NAHB’s Housing Forecast Shows an Orderly ‘Simmering Down’ Process in 2006

Evidence of a recent housing slowdown — as well as our forecasts for overall economic activity and the interest rate structure — point toward a moderate reduction in home sales and housing starts and a slowdown in price appreciation from the torrid performance of 2005.

We expect a significant pullback by investors and speculators to be a key part of the picture — along with greater discipline in the mortgage lending arena following the proliferation of “exotic” adjustable-rate mortgage loans in 2005.

Our forecasts show 6% to 7% declines in home sales and single-family housing starts in 2006, followed by smaller declines in 2007.

Multifamily starts hold up better in the forecast, despite inevitable production cutbacks in the condo market as the rental component shows positive growth in both years. Shipments of manufactured homes (HUD-code units) have surged in recent months, reflecting a large flow to the Gulf Coast region, and our forecast shows growth of about 12% in 2006 (year-over-year basis).

We’re also expecting ongoing growth in residential remodeling, partly in the post-hurricane rebuilding process.

NAHB Chief Economist David Seiders analyzes the economy from the point of view of the housing market every other week in the free e-newsletter, “Eye on the Economy.” The preceding is a reissue of his Feb. 8 edition. To subcribe to “Eye on the Economy,” click here.

Anticipate the trends, make better decisions and improve your bottom line. "HousingEconomics.com," the online publication from NAHB Economics Group, is your single source for market analysis, forecasts, housing statistics and more. In-depth analysis and detailed Excel tables and overviews are available for all the state and metro forecasts.

“HousingEconomics.com” combines unique scientific research with practical applications providing insights that are original and useful. This interactive Web site at the executive level provides critical data and information quickly, easily and frequently and includes the following features:

Give Your Perspective on the New NAHB Economics Blog

Give your economic perspective on NAHB's new economics blog, “Seiders on Housing,” NAHB's 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 Economis David Seiders' expert opinions, projections and responses. Then let him know what you think.

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: Cutting Engineered Joists

Engineered joists and rafters — which have a cross section akin to an I-beam — present a wrinkle to the carpenter crosscutting them with a circular saw.

Because the plane of the web lies below that of the thicker chords, the saw cannot glide across an unbroken surface as it makes a cut. The solution is to make a template that will fit on the web and guide the saw.

The bottom piece is longer than the top, so the first cut that you make also trims part A. That will allow you to register the edge of the template against the cut mark for accurate positioning.

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.

Builder-Tested Contracts and Forms Increase Profitability

Systemizing and managing your day-to-day business operations can make you more efficient, productive and profitable.

“Home Builder Contracts & Construction Management Forms," second edition, contains 95 documents of specific use in residential construction, including:

These documents, which will improve your ability to manage your building business, are a compilation of business resources that have been generously donated by successful builders across the country.

To order “Home Builder Contracts & Construction Management Forms” online, click here, or call 800-223-2665.

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.

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 the 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.

Presenters Wanted for Custom Builder Symposium

NAHB is seeking presenters for the Custom Builder Symposium, NAHB’s premier event for custom builders.

NAHB seeks presenters who have proven ideas for building more productive relationships with architects and trade partners, improving marketing, smoothing the selections process, taking control of customer service and warranty, new design ideas or any other area of the custom home building process,

Symposium presenters receive a stipend and, more importantly, complimentary registration that allows them to “experience the energy” custom home builders bring to this event.

To read more about presenting at the symposium, or to submit a proposal, click here.

Presenters are wanted for the Custom Builder Symposium at the Lake Las Vegas Resort in Nevada this October. Proposals are due March 17.

Builders, Owners See Brighter Rental Apartment Outlook

With demand for apartments strengthening, builder confidence in all sectors of the multifamily rental market surged in the fourth quarter of 2005, according to NAHB’s Multifamily Housing Market Index (MMI), which was released on Feb. 9. The survey also indicated expectations for some cooling down in the condominium market.

“A balanced and stable multifamily market offers a range of options for people who want to rent an apartment home, and for those who want to buy,” said Leonard Wood, chairman of NAHB’s Multifamily Leadership Board. “The reports of rising demand for rental apartments and increased apartment starts indicate that this sector of the housing market is moving toward better balance.”

In the quarterly MMI survey, multifamily builders and property owners from across the country are asked about current market conditions and their expectations for the next six months. The survey tracks assessments of both demand and supply on a scale of 1 to 100, with a rating of 50 indicating that positive and negative responses are evenly divided.

Demand was reported running substantially higher for all classes of apartments in last year’s final quarter compared to the same period a year earlier, with top-tier Class A units registering the biggest increase, of 17 points to 62.3 on the index. Demand for mid-range and lower-rent apartments rose to 59.5 and 58.0, respectively, a significant improvement over a year earlier.

“Our survey of builders indicates such positive trends should continue over the next six months,” said NAHB Chief Economist Dave Seiders. “For the first time since the beginning of 2005, builder expectations posted an above-60 reading for every class of apartment.”

Meanwhile, the index tracking the number of apartments available for rent continued on a downward trend, falling to 45.9 in the concluding three months of 2005, down 10.5 points from 56.4 in the fourth quarter of 2004.

On the supply side, builders and developers see a strong market for new apartments continuing over the coming six months, with lower-rent apartments rated the strongest, at 52.6.

For-sale multifamily supply skidded 10 points on the index between the fourth quarters of 2004 and 2005, dropping to 47.1.

On special survey questions about condo conversions, 15% of those responding reported that they had converted rental units to condominiums in 2005, more than twice as many as in 2003 and 2004. And 20% — up from 13% in 2003 and in 2004 — reported that they currently are building rental units with a view toward converting them to for-sale units in the next three to five years.

The majority of those surveyed do perceive a “moderate oversupply” in today’s condo market, but builders in the South were most likely to report a moderate or substantial shortage despite an apparent oversupply in South Florida. Midwestern builders reported an oversupply, which actually is an indication of a dearth of buyers, since relatively few condos are being built in the Midwest outside of major cities.

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

Best in Multifamily Housing Pillars Finalists Named

Finalists were named in 29 categories, including Freddie Mac’s Multifamily Development Firm of the Year and Property Management Company of the Year.

“These finalists all have a great deal to be proud of,” said Leonard Wood, chairman of NAHB’s Multifamily Leadership Board and managing director of Atlanta-based Wood Partners. “This year’s Pillars program proves once again that today’s multifamily communities are better than ever and offer a wide variety of great lifestyle choices to residents.”

Wood noted that this year’s competition saw an increase in the number of entries in the “Best Affordable Rental Apartment” category, reflecting the growing need for workforce housing, especially in high-cost neighborhoods. “This category really shows how tremendously innovative today’s multifamily developers have to be to provide high-quality apartment living at affordable prices, in an era of rapidly escalating land and construction costs,” Wood said.

Another notable trend arising from this year’s awards stems from the opposite end of the spectrum, with several for-sale projects making the list of finalists. This can be seen as a direct influence of urban-area condos attracting everyone from aging baby boomers to young professionals who want a low-maintenance, full-service lifestyle.

Gaslight Lofts in Milwaukee is a Pillars finalist in the best high-rise rental apartment category for apartments 5-8 stories high.

Best Garden Rental Apartment Community (4 stories and under) Primary Market

Best Garden Rental Apartment Community (4 stories and under) Secondary Market

Winners will be announced during NAHB Multifamily’s Pillars of the Industry Conference in Scottsdale, Ariz. on April 2-5.

For more information about the Pillars conference and how to register, click here, or call or e-mail Sheronda Carr at NAHB at 800-368-5242 x8168.

Attend the Multifamily Pillars of the Industry Conference, the premier industry event for the multifamily industry, on April 2-4 in Scottsdale, Ariz.

The conference focuses on best practices and real-life lessons presented in case studies on the finance, design and development of rental apartments and condominiums.

Enter Historic Rehabilitation Awards Competition

The National Housing & Rehabilitation Association (NH&RA) announces a call for entries to the second annual J. Timothy Anderson Awards for Excellence in Historic Rehabilitation — the “Timmy” — awards for outstanding rehabilitation and preservation projects. The awards competition is based on overall design and quality, interpretation and respect of historic elements, impact on the community and financial and market success.

This is the second year of the awards competition, which has expanded to include the following categories:

The awards are named after Boston architect and preservation advocate J. Timothy Anderson, who was involved in several Boston-area projects as well as the seminal study that helped launch preservation efforts in the art deco South Beach district of Miami Beach in the late 1970s.

Winners will be recognized at an awards ceremony on Oct. 9 in Boston. Applications are available online at the National Housing & Rehabilitation Association Web site, www.housingonline.com.

HG&RA is a Washington, D.C.-based association that provides an ongoing forum for professionals in affordable housing and historic restoration to exchange information and assess trends.

For more information, e-mail Debby Tempio at NH&RA, call her at 202-939-1778, or visit the NH&RA Web site.

Rising Rents, High Land Costs on Conference Agenda

Looking forward to a banner year in 2006 with increasing occupancy levels, rising rents and sustained high prices for apartment properties, multifamily owners and developers will be gathering at the Omni Hotel San Diego on March 8-10 for Apartment Finance Today's second annual Developer Conference.

“How rents will rise, when the long run-up in values will reverse course and how developers can meet the increasing need for affordable housing, despite fast-rising land and construction costs, these will be among the key topics discussed at our conference,” said Andre Shashaty, conference chairman.

There will be 12 breakout sessions at the conference on topics such as opportunities for developers in providing housing for people displaced by Hurricane Katrina, how to find the best financing for smaller projects and an update on lending programs from Fannie Mae, Freddie Mac and the Federal Housing Administration.

The More We Bring to NAHB, the More NAHB Works for Us

And its true value lies in the interaction of the members — our networking, resource sharing and information exchange.

Given that this is our association, let’s understand how an increase in membership benefits all of us and why it’s in our best interest to actively and constantly recruit.

For instance, how many times have you stepped back and thought to yourself that you’re the only one involved in a particular issue or activity? Or that you seem to get more calls for help than anyone else? More calls than you can handle or have time for.

Let them know the benefits of participating in a particular project or course of action — what successes you’ve had as a result and how your experiences have enriched your business or personal endeavors.

I know — I mean I really know — that each and every person reading this can point to trades, vendors, suppliers or business associates with whom they work, either occasionally or on a regular basis, who are not members.

That being the case, why not share the load with brand new team members? Don’t only recruit them to help with the job at hand, convince them to join your local association, too.

No, you don’t have to do it alone, but you do have to be willing to ask for help. And that includes “creating your own help” by recruiting non-members.

Have you ever wondered why there aren’t as many people at (insert the meeting or event of your choice here) as there used to be?

When was the last time you took a minute — and it truly only takes a minute — to remind a fellow member of a particular event — or gasp! — invite a guest to attend that event with you?

Okay, maybe it will take several prodding invitations before you can get a guest or fellow member to attend. But that isn’t too much effort, considering how much you will benefit eventually. After all, you’re ultimately helping yourself.

Also, have you ever read newspaper or magazine articles or seen reports on TV demonstrating the “strength” of NAHB and the association’s impact?

It is up to us — as business owners, as ambassadors for our industry — to reach each and every person with member companies with the message that are important to this association. It will only make us stronger and enable us to have an even larger impact on government at all levels, and in the communities where we do business.

Remember, it’s in our best interest to recruit — to recruit fellow members into action and to recruit non-members into becoming members.

Think of what NAHB has accomplished throughout the last year. 2005 was truly a great year by any measure.

Now, think of how much more NAHB could accomplish this year if every member got involved and each and every member recruited just one new member. Can you envision what could be accomplished if we all did these two simple tasks?

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

"How to Find a Professional Remodeler," available at BuilderBooks.com, promotes the professionalism of your remodeling business by offering valuable advice to your customers on the process of selecting a remodeler. The brochure guides consumers from the dream to the reality of having their homes remodeled by skilled and trained professionals. Sections include what to look for in a professional remodeler, what questions to ask and signs of a professional remodeler. To view or puchase this publication online, click here, or call 800-223-2665 to order.

BuilderBooks.com offers a variety of other publications about remodeling. To view or puchase these publications online, click here, or call 800-223-2665 to order.

The NAHB University of Housing offers CAPS, CGR, CGB and a variety of other professional designation programs and business management courses that set builders and remodelers apart from the competition. To learn more about NAHB’s designation programs, visit www.nahb.org/designations. For a complete list of all current education offerings, click here.

Normal OSHA Enforcement Resumes in Most of Gulf Coast

The Occupational Safety and Health Administration (OSHA) announced last month that it was resuming regular enforcement of job safety and health standards throughout much of the U.S. Gulf Coast area impacted by Hurricane Katrina.

With an effective date of Jan. 25, OSHA announced that normal enforcement would occur throughout Florida and Alabama, in Mississippi north of Interstate 10 and in Louisiana, with the exception of seven parishes in and around New Orleans.

Following last fall’s devastating hurricanes, the agency had exempted a number of counties and parishes in those states from regular enforcement so that OSHA staff could provide faster and more flexible responses to hazards facing workers involved in the cleanup and recovery.

Thousands of crews and individual workers received technical assistance on job safety and health in the aftermath of Katrina. At that time, OSHA limited inspections to cases involving fatalities, catastrophic accidents or complaints.

“We’re now able to resume normal operations in several of the impacted areas where recovery — while still ongoing — has progressed more fully than other areas,” said Jonathan Snare, acting assistant secretary of labor for OSHA.

In the areas where normal enforcement has yet to be restored, Snare said that OSHA would continue to provide technical assistance to employers and workers by providing advice and information on hazards and the use of personal protective equipment and other safety measures.

For more information on worker safety and health information related to Katrina, click here.

For more information on NAHB resources on construction safety, e-mail Rob Matuga, 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.

Generate Sales with a Wide-Ranging Incentive Program

One effective way to generate more sales is to create a comprehensive price incentive program that encompasses all the various aspects of home building.

The program should include a combination of any of the following — monthly price increases; financial incentives; product incentives, including appliance packages; and delivery incentives, including landscape packages, discounts at furniture stores and more.

One element of the sale that should not be discounted, however, is the price of the home. Discounting the price would affect the appraisal value of the homes you already sold in your community — and foster some ill will among your previous purchasers.

When initiating an incentive program, establish start and final dates for the incentive. By incorporating a final date, you sales team can create a better sense of urgency with potential buyers.

When instituting an incentive program, market your program creatively and be sure the program is available to all potential buyers.

Once in place, determine which incentives work best for your particular market and repeat them as necessary. Also, continually adapt and institute programs until your last home is sold and has closed.

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

For additional cutting-edge sales and marketing information, subscribe to NAHB’s Sales + Marketing Ideas Magazine (http://www.smimagazine.com/). Click here to learn about membership benefits of the National Sales and Marketing Council and the Institute of Residential Marketing.

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

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

How Designations Have Helped Me — A Testimonial

Beverly Koehn, GMB, CGA,MIRM, CMP, CAPS, CGR

Beverly Koehn & Associates
As part of National Designation Month, Nation’s Building News talked with Beverly Koehn, GMB, CGA, MIRM, CMP, CAPS, CGR, about the value of NAHB's professional designations. Koehn, a sales and marketing professional, is the president of San Antonio, Texas-based Beverly Kohen & Associates, Inc.

Information shared in designation classes has given me real-world information on how the building industry operates.

Textbook strategies are great, but when you have the hands-on interaction with builders, remodelers and industry vendors, you find out the real intricacies of how the systems work and what the potential pitfalls are.

I mention my designations in every venue I'm involved in. People always ask me what the "letters behind my name" stand for.

Again, I require that every introduction includes my designations, plus I always tell people why I feel designations are so important in our industry.

Because they have voluntarily taken the extra steps to elevate their professional knowledge.

Education in our industry is not mandatory. Voluntary learning is always more rewarding — and enriching in my opinion.

To enhance my knowledge of the business and to give me another advantage over my competition. In essence, to help me become more profitable!

NAHB offers more than a dozen professional designations covering industry basics such as business management and marketing, as well as specialized classes, including aging-in-place programs, property management and more. For information about designations, go to www.nahb.org/designations.

NAHB Designations Give Members a Competitive Edge

Last year, more than 1,700 members completed a professional designation course during NAHB’s National Designation Month in February. The designations they earned enabled them to stay well ahead of the curve and have given them an edge over their competition.

Throughout February, The NAHB University of Housing is again sponsoring National Designation Month so members can hone their business skills and convey to their clients the superior training, practical experience and in-depth knowledge that come with earning an NAHB designation.

"The chief thing that a designation does is give you a huge boost in self-confidence," said Mike Weiss, CGR, CGB, GMB, CAPS, of Weiss RCMI, who with his four designations, speaks from experience. "It's an emblem that signifies that you have completed an element of study and puts you a cut above — not just because of what you have learned, but because you have taken the initiative to improve yourself."

Scott Stephani, CGB, CAPS,CMP, MIRM, of William Thomas Homes in Crystal Lake, Ill., agrees. "NAHB professional designations are important because they give you the opportunity to show your customers that you've done something that other builders in the marketplace have not — continued your education and learned how to be a better builder," he said.

The Dallas and Houston home builders associations are planning events in February to celebrate National Designation Month.

The Home Builders Association of Greater Dallas will have a reception honoring local designees on Wednesday, Feb. 1, at its offices in Plano. Jack Haynes, executive vice president of the National Builder Division for Countrywide Home Loans, will be the event's keynote speaker.

The Greater Houston Builders Association will feature a cover story about NAHB designations in the latest issue of its monthly publication, Houston Builder. The association is also offering its members discounts on 11 designation courses throughout February.

In addition, local associations around the country are also planning courses, events and guidance to help members obtain their designations and advance their professionalism and business knowledge.

Sample Designations from NAHB

Certified Graduate Associate (CGA)
Developed specifically for NAHB associate members (including suppliers and financial services providers), the CGA program offers participants an opportunity to enhance their knowledge of the fundamentals of the home building industry.
Certified Graduate Builder (CGB)
An overview of key areas in today’s home building industry, the CGB curriculum covers business management, financial strategies, marketing techniques, construction technologies and more.
Certified Graduate Remodelor™ (CGR)
An exclusive professional designation that emphasizes business management skills as the key to a professional remodeling operation, the CGR designation trains remodelers in project management, design estimating and job costing along with other core skills relevant to the remodeling industry.
Certified Aging-in-Place Specialist (CAPS)
Developed by the NAHB Remodelors™ Council in collaboration with AARP, the NAHB Research Center and NAHB’s Seniors Housing Council, the CAPS program provides comprehensive, practical, market-specific information about working with older and maturing adults to remodel their homes for aging-in-place.
Registered in Apartment Management (RAM)
The longest running and most well-respected program of its kind, RAM is a comprehensive educational curriculum developed to augment the professional skills of managers of apartments, condominiums and cooperative housing.
Member, Institute of Residential Marketing (MIRM)
The most prestigious designation from the Institute of Residential Marketing, MIRM represents the highest level of achievement for professionals in new home marketing. MIRM graduates are required to complete all mandated course work and submit a case study for approval before graduating from the program.

For more information about NAHB’s designation programs, visit www.nahb.org/designations.

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 Market

With 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.

Trade Mission to Explore Niche Opportunities in Mexico

The $5.3 billion niche market for retirement and vacation homes in Mexico is growing — particularly in the areas of Puerto Vallarta, Puerto Penasco, Los Cabos and San Felipe along Mexico’s Pacific Coast. It is also offering growing opportunities for U.S.-based home building companies.

To learn more about this market, and the opportunities available to U.S. builders and others in the industry, NAHB International is organizing a trade mission to Puerto Vallarta and other development sites along the Banderas Bay and Pacific coastal areas on April 2-4.

Developers, builders, suppliers and other industry professionals will be able to explore business opportunities and meet with private developers, public officials and other industry players. The trade mission will also include site visits.

For more information, e-mail Rita Feinberg at NAHB, or call her 800-368-5242 x8415.

Story Shows Why Man-Made Ditch Shouldn't Be Regulated

The Supreme Court is slated to consider the question of government regulation of ditches on Feb. 21 when it hears arguments on two wetlands cases — John A. Rapanos, et al. v. the United States and June Carabell, et al. v. the United States Army Corps of Engineers.

At issue is whether a ditch or storm sewer system is a “navigable water” under the Clean Water Act and thus subject to federal permitting requirements. NAHB has filed a friend of the court briefing in both cases.

To illustrate the problem, NAHB member Andrew Der, director of environmental sciences at Loiederman Soltesz Associates, a Rockville, Md.-based engineering firm, brought National Public Radio reporter Kathleen Schlach to a wooded parcel outside Germantown, Md., in January to explain why a man-made ditch dug alongside a state road should not be regulated by the federal government.

The ditch drains into a former farm field now dotted with trees and brush, and can resemble a stream after it’s been raining and even reveal a fork where it has been intersected by a deep tire track. But all that is deceiving, Der told the reporter in an NPR story that aired last month.

When it created the Clean Water Act in 1987, Congress defined ditches as point sources. Under the law, a permit is required to control sediments and other pollutants that leave a ditch and flow into navigable water. NAHB’s brief argues that a ditch is not a navigable water, and should not be regulated unless — and until — the contents reach a tributary to a navigable water. The ditches at issue in Carabell , for instance, drain into a municipal storm sewer system already permitted under the Clean Water Act to control pollutant discharges.

“NAHB has developed comprehensive familiarity with the [Clean Water Act] permitting requirements, provides compliance advice to its members, and, unfortunately, has witnessed numerous situations where federal regulators have exercised their authority beyond the act’s limits,” the NAHB brief said.

“There are an estimated 3.9 million miles of roads in the nation, and regulations require that federally funded primary roads must be ‘designed … and maintained to have adequate drainage, cross drains and ditch relief drains,’” the brief argues. Requiring permits assuming that all these ditches are navigable and subject to regulation and permitting makes no sense and would be prohibitively expensive to administer, NAHB said.

For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132.

Lowe’s Praised for Support of HBI Job Corps Students

At last month’s International Builders’ Show in Orlando, Fla. the Lowe’s Home Improvement booth was a hub of activity, and with thousands of show attendees stopping by, an ideal location to spotlight its support of the Home Builders Institute's Job Corps students through the HBI/Lowe’s Building Careers Scholarship program.

Established in April 2004 with an initial contribution by Lowe’s of $50,000, the scholarships help HBI Job Corps graduates defray the costs of making a transition to the workplace.

Following a video clip on Job Corps’ 40 years of achievement, Mike Horn, Lowe’s vice president of commercial sales, welcomed 2006 NAHB President David Pressly, HBI Chairman Mike Sivage and several Job Corps student “ambassadors” to the booth on Jan. 11.

“When I first learned of Lowe’s $50,000 contribution to establish the scholarship, you couldn’t imagine how pleased I was,” Pressly told the crowd that had gathered at the booth. “To see you continuing to renew this commitment gives me an intense feeling of pride. Thank you for your support of HBI, our Job Corps students and our industry.”

HBI Chairman Mike Sivage, a strong advocate for careers in the industry, cited “the tremendous job Lowe’s has done in encouraging youth to enter the building industry through financial support and education. We are very grateful to Lowe’s for their leadership in the continuation of this great program.”

Horn said that the visit by the students and NAHB leaders was “one of the highlights of the show for Lowe’s.”

Lowe’s commitment to HBI and its Job Corps students has been renewed for a third year, bringing the company’s total support for the scholarship program to $150,000.

The names of the more than 60 Job Corps students who have received scholarship awards through the program were listed at the entrance of the Lowe’s booth.

HBI, the workforce development arm of NAHB, is the largest National Training Contractor in Job Corps, placing more than 2,000 young people annually in jobs in residential construction. NAHB members work through their local home builders associations to help develop the curriculum, mentor students and provide internships or work-based learning opportunities.

For more information on the HBI/Lowe’s Building Careers Scholarship, e-mail Maria McIntyre at HBI, or call her at 800-795-7955 x8912.

Industry Careers Reward Job Corps Students at IBS

Some of the outstanding achievements of the Home Builders Institute's brightest Job Corps students were recognized during last month’s International Builders’ Show in Orlando, Fla.

On Jan. 11, NAHB Student Chapters sponsored its first annual National Job Corps Jeopardy! Championships. Held at the Job Corps Skills and Employment Booth, the fast-paced competition consisted of semi-final and championship rounds in which students were tested on their academic, trade and employment skills.

Demonstrating an impressive understanding of tools, safety, trade math and personal career development, Medissa Lopez, a plumbing student at the Fred G. Acosta Job Corps Cente in Tucson, Ariz., emerged as the Job Corps Jeopardy! Champion and received a $100 gift card from Lowe’s Home Improvement.

HBI’s ongoing partnership with Lowe’s through the HBI/Lowe’s Building Careers Scholarship program has assisted more than 60 Job Corps graduates in making the transition to jobs in the construction industry. The company also donated the materials for the construction of HBI’s booth, where eight Job Corps students were on hand throughout the show to demonstrate their skills.

2005 NAHB President Dave Wilson presented Kareem Dorsett with the second annual NAHB President’s Award on Jan. 12 during the NAHB Board of Directors meeting.

The award is reserved for the HBI Job Corps graduate who most ably displays the ability to overcome adversity and achieve success in the building industry. Dorsett, 25, an electrical apprentice with Alligood Electric Company in Orange Park, Fla., graduated from HBI’s electrical program at the Jacksonville Job Corps Center in 2001 and completed his work-based learning at the company.

A model student, Dorsett was hired as an electrical helper immediately after graduation in January 2002 and enrolled in the Northeast Florida Builders Association's four-year registered electrical apprenticeship program. He will graduate in May and plans to eventually become a master electrician.

Wilson cited Dorsett’s achievements as an example for today’s Job Corps students. “Our hope is that they too will follow in Kareem’s footsteps,” he said, “and that they too will have the strength of character and perseverance that helped earn him this award.”

Kisna Tatum, 25, was presented with the 2006 Shirley Wiseman Lach Award for Exceptional Promise and a $1,000 cash prize from 2-10 Home Buyers Warranty.

Tatum moved to Florida from the Virgin Islands two years ago in search of career opportunity, enrolling in HBI’s Facilities Maintenance class at the Homestead Job Corps Center and focusing on plumbing.

When she broke her leg skating, some suggested she return home, but Tatum would not abandon her goals and was back in class the following week on crutches and ready to get to work. She graduated in 2004 and her employer, Seaway Plumbing in Key Largo, is in the process of enrolling her in an apprenticeship program. Last year, she was reunited with her daughter, Elina.

Former NAHB President and HBI Trustee Shirley Wiseman Lach presented the award to Tatum on Jan. 12. “Kisna’s story is one of courage and determination,” Wiseman Lach said. “She had the courage to leave her home and family behind and the determination to do what she set out to do for herself and her young daughter. Job Corps gave her the skills with which to do it. That is all the proof we need that Job Corps works!”

The Shirley Wiseman Lach Award for Exceptional Promise is presented every year to a graduate from an HBI Job Corps program who has overcome great challenges and demonstrated remarkable promise in her career in the housing industry.

Home Builders Institute (HBI), the workforce development arm of NAHB, is the largest vocational trainer in Job Corps. Job Corps is the nation’s largest federally funded residential job training and education program for at-risk youth ages16-24.

For more information on HBI and its Job Corps programs, e-mail Maria McIntyre at HBI, or call her at 800-795-7955 x8912.

Free-Standing 120-Volt Dual-Fuel Range a First

The GE Profile free-standing 120-volt dual-fuel range offers the best of both cooking worlds — the responsiveness of gas on the cooktop with the performance and even heating of an electric oven. Consumers with a gas line in their kitchen can plug this range into any dedicated standard 120V/15amp electrical outlet.

The GE Profile free-standing 120-volt dual-fuel range (model J2B912) is available in stainless steel, white on white, bisque on bisque and black on black. The estimated retail price ranges from $1,399-$1,649.

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.

Wanna Know What's Rude?

There are two things that happen all the time in business that really chap my hide, which is saying something because my hide is approximately as thick as a 30-year comp shingle.

Why has it become okay to simply not return an e-mail? For example, there is a certain magazine editor who cordially invites; no, actually encourages, reader input via e-mail. He lists his e-mail address for all the world to see, and presumably, to use. I happen to be in the same business as him and have, on at least a dozen occasions, sent this man a meaningful e-mail. How many times do you think he’s responded? Even with a canned form letter acknowledging that he received my e-mail? Zip, zilch, nada. It makes me wonder, is this guy too important for the likes of me?

Lest anyone accuse me of hypocrisy, my column, the one you’re reading now, has a greater circulation than this magazine. You would know, if you’ve ever sent me an e-mail, that I respond, personally. You see, I understand that you went out of your way to think about me, to think about a topic that concerns you, to compose your writing, to haggle with my ungainly e-mail address and to click “Send”.

Whether I agree with your point or not, I always appreciate the effort. And so I respond. Sometimes my response is short and sweet, sometimes long and wordy. It depends on how much time I’ve got and how interested I am. But, I respond — always (except to spam, of course).

Someday I may get so many e-mails that I can’t humanly respond to them all. I’ve been giving that day some thought and have come up with the following protocol. I’d like to go down in history as the person who invented the polite, non-personal response that, even though non-personal, is a response nonetheless. Here it is:

It stands for “Got Your E-Mail” and is pronounced “gem” (the “y” is silent). Notice that the word “Thanks” is also included, as is the recipient’s name. So whenever someone gems you, you’ll know at least that they looked at your e-mail and had the decency to reply.

I had a meeting with a bureaucrat recently. She is a higher-up and so, in her mind at least, is Very Important Indeed. I was on time and checked in with the receptionist, who told me that Mrs. V.I.I. was in but that I would have to sit and wait.

As you read that last sentence, did it irritate you slightly? It irritated me to write it. Five minutes ticked by, then 10. I don’t mind waiting a few minutes, especially if there’s good reading material at hand. But in this office, Ladies Home Journal and Redbook were all that was available. Fifteen minutes — nothing. The receptionist busied herself, keeping her head down so as not to meet my fuming eyes.

Finally, Mrs. V.I.I. blundered in with an insincere apology for making me wait, obviously not giving a tinker’s damn about my time. “Not a problem,” I lied, eager to finish my business with this Very Rude Person Indeed, and skedaddle.

I am ashamed to admit that some years ago I was guilty of the same behavior. But a Russian fellow by the name of Mikhail Brusquenov cured me. At the time, I was the principal engineer of a 20-person firm and, in my mind at least, Very Important Indeed. My employees doted on my every word, eager to jump at my slightest command. I had a 9:00 meeting scheduled with Mikhail but was in staff meetings all morning, which were not going well. My secretary announced Mikhail’s arrival at 8:55. He can wait, I thought, He’s just a wannabe foundation contractor. Surely, with all my employees and appointments, I am far more important than the likes of him! So at 9:15, I barged into the foyer and greeted Mr. Brusquenov, apologizing insincerely for my tardiness and jumping right into the business at hand.

But Mikhail didn’t jump. He didn’t tell me a lie either. He stood, arms folded across his chest and said, “Mister Gaddeson. You make me wait. Me on time. You feefteen minutes late. I see you a busy man. Me busy too. My time just as impoetan as your’s. You not do this to me, never again.”

That short, blunt lecture was one I’ll never forget. And guess what? It cured me. Since that day, I’ve never made another person, regardless of how Very Important they are or are not, wait for me if at all humanly possible. Every person, in their own mind at least, is The Most Important Person of Them All. It is the least we can do to respect their valuable time.

I don’t think I ever thanked Mr. Brusquenov for his candid scolding, but I should have.

Tim Garrison of ConstructionCalc.com, is a professional engineer, author, and software producer for the building industry. Check out his new book, "Cracks, Sags, and Dimwits –Lessons To Build On," available at www.lulu.com, Amazon and Barnes and Noble.

NAHB-Produced Programs on HGTV & DIY This Week

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.

Winchester Homes Honored for '25 Acts of Charity'

Winchester Homes was awarded the 2005 Silver National Housing Endowment Builder Achievement Award for Outstanding Community Service Award — which includes a $5,000 donation to be directed to the charity of its choice — during the International Builders’ Show in Orlando, Fla. last month.

Winchester Homes directed its award donation to Martha’s Place, an all-women drug rehabilitation wellness program in Baltimore.

“Professionally, working on this project has been one of the proudest moments in my career,” said Vince Mendel, division sales manager for the builder and co-chairman of its 25 Acts of Charity program. “It was an awesome example of how a few people working together and pooling their resources can really make a significant difference. Being honored for this work is just the icing on the cake.”

Winchester Homes started the charitable program last year in celebration of the company's 25 years in business. Under the program, Winchester Homes employees and their contractors and suppliers are encouraged to help and participate in at least one of 25 selected charitable activities. More than 55 Winchester employees and more than 100 of the company’s subcontractors and suppliers participated in the program.

At the heart of 25 Acts of Charity program was Winchester’s support of Martha’s Place. Initially, the builder provided the organization with meals and guest speakers who provided encouragement and life skills coaching to Martha’s Place clients — including checkbook balancing, what to wear on a job interview and other tasks that would help the women in their daily lives.

That commitment grew to include the renovation of two dilapidated row houses that Martha’s Place had acquired with hopes to eventually convert then into long-term rental space for its clients. Upon learning of this need, a team of Winchester employees led the fundraising and renovation efforts and donated more than 800 hours to the effort. Martha’s Place opened its new facilities on Nov. 18.

“The National Housing Endowment is proud to honor the tremendous charity of Winchester Homes,” said Gary Garczynski, chairman of the endowment. “Their 25 Acts of Charity Program serves as a source of inspiration to our members and our industry. With the new Builder Achievement Award, we can highlight the often overlooked support and leadership home builders such as Winchester contribute to community service endeavors.”

The National Housing Endowment Builder Achievement Award for Outstanding Community Service program was begun last year to honor NAHB builders, developers and remodelers for their philanthropic programs. Winners were chosen in the gold, silver, bronze and honorable mention categories.

Seven other builders were honored with Builder Achievement awards during the presentation at the builders' show.

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.

GM $500 Exclusive Offer for NAHB Members

Throughout 2006, qualifying NAHB members are eligible for a $500 exclusive offer on most GM passenger cars, light-duty trucks, vans and SUVs.

GM NAHB Affinity Cards and details on this offer have been mailed and NAHB members should receive them shortly. The mailing is being sent directly from GM, and members should use the affinity card when purchasing a qualifying vehicle.

Members who have misplaced or otherwise do not have a GM NAHB Affinity Card may print out their own replacement cards in order to show member verification to a GM dealer. Note: Members must be logged in to www.nahb.org in order to print their replacement card.

Members with a www.nahb.org login should go to www.nahb.org/MA and click on the “GM Exclusive Offer.” This will take members to a Web page with program details and instructions for printing a replacement card.

There are also instructions for members who do not have a login (they will be sent to www.nahb.com/loginGM and returned to the page to get a replacement card).

For more information, e-mail Tiffany Smith at NAHB, or call her at 800-368-5242 x8273.

For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to www.nahb.org/MA.

Calendar of Events

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.

Nation's Building News Online: February 13, 2006

Bill Addresses Need for Affordable Military Housing

Approval and Permit Process Top Challenge for Builders

Rhode Island Builders Help Military Families

Finding a House Gets Easier — Inventories Rise Sharply in Many Major Markets as Buyers Hang Back

Toll Says First-Quarter Orders Plunge 29%, Cuts Forecast

Builder Blows Into Florida, Brownstone Builders Will Develop Hurricane-Resistant Luxury Homes

Long Johns for the Home: Icynene Is Pricey, But the Foam Insulation Shuts Out Cold

Home Work 10 Most Wanted

Cap Rates Likely on the Rise in 2006

Letter to the Editor: Shotgun Houses

Virginia Builders Rally Against Anti-Growth Policy

Eye on the Economy

Builder's Tip: Cutting Engineered Joists

Builder-Tested Contracts and Forms Increase Profitability

Presenters Wanted for Custom Builder Symposium

Builders, Owners See Brighter Rental Apartment Outlook

Best in Multifamily Housing Pillars Finalists Named

Enter Historic Rehabilitation Awards Competition

Rising Rents, High Land Costs on Conference Agenda

The More We Bring to NAHB, the More NAHB Works for Us

Normal OSHA Enforcement Resumes in Most of Gulf Coast

Generate Sales with a Wide-Ranging Incentive Program

How Designations Have Helped Me — A Testimonial

NAHB Designations Give Members a Competitive Edge

Education Calendar

Conference Focuses on Green Building Market

Trade Mission to Explore Niche Opportunities in Mexico

Story Shows Why Man-Made Ditch Shouldn't Be Regulated

Lowe’s Praised for Support of HBI Job Corps Students

Industry Careers Reward Job Corps Students at IBS

Free-Standing 120-Volt Dual-Fuel Range a First

Wanna Know What's Rude?

NAHB-Produced Programs on HGTV & DIY This Week

Winchester Homes Honored for '25 Acts of Charity'

GM $500 Exclusive Offer for NAHB Members

Calendar of Events