Nation's Building News Online: March 20, 2006Print All Articles Text Version |
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Green Building Barrels Into the Mainstream MarketAfter several years of slow but steady growth across the country, the green home building movement — which applies innovative and environmentally sensitive construction techniques and products to reduce energy and water consumption and improve residential comfort and safety — is barreling into the mainstream, according to a survey of NAHB members in late January and early February by the association and McGraw Hill Construction. Preliminary results released during NAHB’s Green Building Conference in Albuquerque, N.M. on March 12-14 showed that there was a 20% increase in 2005 among those in the home building community who are focusing their attention on green building issues and that their ranks are expected to increase by another 30% this year. “Green home building is at a tipping point among the builder population,” said Harvey Bernstein, vice president of Industry Analytics and Alliances for McGraw-Hill Construction. “The data indicates 2006 to 2007 is the time frame from which the builder population moves from a majority less involved to more involved with green building.” Ray Tonjes, chairman of the NAHB Green Building Subcommittee, noted that the study opens new ground and new business opportunities for NAHB members. “NAHB has been in the vanguard of the voluntary movement to increase the efficiency and quality of the American home,” he said. “This study suggests a viable path for the home building community to educate the public about green building and deliver a product that responds to the needs of the buyer as never before.” Bernstein predicted that green building will boost its market share from $7.4 billion and 2% of housing starts last year to $19-$38 billion and 5%-10% of residential construction activity in 2010. “Within 10 years, everybody’s going to be building green,” he said. According to the survey results, the leading reason that builders are considering green is that “It’s the right thing to do,” Bernstein said, an indication of the industry’s strong links to the community. Of those polled, 92% identified this factor as a very or somewhat important influence behind the decision to go green. Other prominent influences include: lowering lifecycle costs, such as energy efficiencies and productivity increases, 87%; staying ahead of the competition, 82%; expanding business with customers who are interested in green building, 82%; and limiting exposure to liability on such issues as water leaks and mold, 78%. The leading factors triggering building firms to expand their green home building activities were identified in the survey as: increases in energy costs and utility rebates, 88%; consumer demand, 88%; superior performance, 87%; codes, ordinances and regulations, 86%; and competitive advantage, 83%. Starting costs and the unwillingness of consumers to pay additional costs for a green home were identified as the leading obstacles to firms becoming involved in green home building, rated as important by 82% and 79% of those surveyed, respectively. Also important were: uneducated consumers, 79%; codes, ordinances and regulations, 72%; and a lack of awareness among consumers of green products, 70%. Only 39% said that the perception of green building as a fad and not something here to stay was a significant obstacle. Asked to indicate the importance of specific green home building options, NAHB members participating in the survey identified high-efficiency HVAC equipment as the top item, with 92% responding that it was important. That was followed by low E-glass windows, 89%; HVAC for indoor air quality, 90%; more energy-efficient appliances, 88%; reduced air infiltration, 86%; hi-performance engineered wood products, 84%; above-code energy programs, 82%; the minimization of site disruption, 82%; water-saving utilities such as dish and clothes washers, 75%; storm water mitigation, 74%; formaldehyde-free finishes, 73%; and water-conserving fixtures and faucets, 73%. Other highlights from the survey findings:
The following are green building resources from McGraw Hill:
For more information about other NAHB resouces on green building, e-mail Calli Schmidt, or call her at 800-368-5242 x8132. NAHB Resources Available After Disasters in West, MidwestIn less than a week’s time, 100 twisters touched down in five states from Oklahoma to Illinois and 840,000 acres of land were burned in Texas and New Mexico. Twenty-two were initially reported dead, thousands were evacuated from their homes and millions of dollars in property damage was sustained — $6 million dollars worth alone at one Kansas university. "In the aftermath of Missouri's storms last week, many home owners found themselves searching for reputable contractors as they began the rebuilding process," said Vickie Muldoon, executive officer of the Home Builders Association of Jefferson City. "Home builders associations across the state are a great place to turn for recommendations. Our local association has about 300 members and a limited staff, and NAHB helped me tremendously by putting together a public service announcement to inform the public that we are out here to help them avoid fly-by-night contractors. The public relations staff was great to work with, creating a strong message to broadcast on our area radio stations." Available free online at www.nahb.org/disasterresources, NAHB Disaster Resources are geared to providing both local consumers and building industry members with the critical information they need to rebuild homes, businesses and the community. Resources include:
NAHB’s Public Affairs staff can also assist with public service announcements that warn consumers of fly-by-night contractors in areas where this has become a concern. For more information, e-mail Kym Kilbourne at NAHB, or call her at 800-368-5242 x8447. Employees Wanted: NAHB Launches Online Career Center
The career center can be found on:
The career center was created in collaboration with ConstructionJobs.com, a leading employment resource for the construction, design and building industries. NAHB members will receive a 20% discount off of standard rates for job postings. For a complete listing of all rates on the NAHB career center, click here. Career center features that give members a competitive edge include :
Nation’s Building News readers can visit the site by using the NAHB Career Center tab at the bottom of the issue’s headlines, or by going to the NAHB Web site or www.nahb.org/careers. Reader Survey: Tell Us What's Important to YouBecause you regularly read Nation's Building News, we value your input and would like your help. Please tell us what information in Nation's Building News is important to you — what you read and what you might like us to add — by answering our short online reader survey. To take the survey, click here. Real Estate Rates Could Hit 7% by Summer
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NAHB Pushes in Senate for Association Health PlansLast week, after more than a decade of debate on the topic and little or no Senate interest, the Senate Health, Education, Labor and Pensions (HELP) Committee took up the issue of whether bona fide trade associations should be allowed to offer health plans to their members across state lines. HELP Committee Chairman Mike Enzi (R-Wyo.) introduced S. 1955, the “Health Insurance Marketplace Modernization Act,” and the bill was approved by the panel on March 15 by a vote of 11-9. The measure, which contains several provisions to address the crisis of the uninsured, including association-sponsored health plans (called “small business health plans” in this version of the legislation), bears some resemblance to legislation passed by the House of Representatives in 2005. However, many differences remain between the House and Senate versions on how the plans would operate. “NAHB’s members appreciate the effort undertaken by HELP Committee Chairman Enzi and co-sponsors Senators Conrad Burns (R-Mont.) and Ben Nelson (D-Neb.) to address the crisis of the uninsured by investigating methods of providing opportunities for thousands of small businesses across the nation to get access to plans,” said NAHB President David Pressly. NAHB, which has championed association health plan legislation during the past several years, sent a letter to the full HELP Committee prior to the markup supporting the committee’s efforts to address the issue. As the measure advances through the legislative process, NAHB will continue to work with key senators to address significant differences between S. 1955 and S. 406 regarding self-funding measures for association health plans, state licensing provisions and stipulations that call for certain "benefit mandates.” The goal is to refine S. 1955 as it moves to the Senate floor in order to make it economically practical for trade associations to offer association health plans to their members. “We hope that the marketplace changes championed by the Senate legislation will ultimately provide small businesses with more choices, better access and more stability in health insurance plans,” said Pressly, who noted that more than 43 million Americans are currently uninsured, almost 60% of whom are employed by small businesses. Kentucky Builder Cites Skyrocketing Health Premiums Custom home builders Sue and Barry Jenkins, who own Keystone Custom Homes based in Prospect, Ky., say that their health care premiums have skyrocketed during the past two years, and that effective association health plan legislation is necessary to rein in runaway costs. “In the last two years, our premiums have shot up $440 per month, and as of May 1 we will be paying $760 a month for a family health plan,” said Sue Jenkins. “We appreciate NAHB’s diligent efforts to urge Congress to enact association health plan legislation that would help our family and countless other small businesses across the country to access greater health insurance options and lower premiums. Congress needs to act quickly to address this urgent matter.” Small Businesses Can’t Keep Up With Costs “If we transform health insurance to a market where small employers and family-owned businesses can demand better benefits at better prices, insurance companies would be forced either to keep up with the competition, or lose their market share,” Sen. Enzi said. “With the help of a diverse group of senators and business groups representing small business, we’ve bridged the gap between small business proponents of traditional AHPs and state-based interests worried about the prospects of dramatic regulatory changes in health insurance markets,” Enzi added. Noting that health care premiums are experiencing double-digit growth annually, Sen. Nelson said the bill is vital to help small businesses cope with soaring health care costs. “Small businesses can’t keep up with the costs. As a result, fewer employers are offering health coverage and fewer employees are covered. This action by the HELP Committee today is the first step in addressing this problem.” While the panel’s passage of S. 1955 marks the first time that legislation referencing association health plans has cleared a Senate committee, the full House has approved its version of association health plan legislation eight times, acting most recently last July, with passage of H.R. 525, the “Small Business Health Fairness Act.” President Bush, a strong advocate of association health plan legislation since the time he first entered the Oval Office, on March 10 reiterated his support for this concept. “AHPs make a lot of sense. I am a strong backer. I believe small businesses ought to be able to pool risk across jurisdictional boundaries, so they can get the same benefits from larger risk pools that big companies get,” Bush said. The Senate bill is expected to be considered on the Senate floor sometime during the end of April or in early May. Upon passage, it would have to be reconciled with the more widely-supported House bill. Major differences between the two versions could potentially slow down the bill’s progress. To read the Senate legislation, click here and enter S. 1955 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. NAHB Fights for Property Owners in Flood Insurance BillActing to keep the National Flood Insurance Program (NFIP) solvent, the House Financial Services Committee on March 16 approved H.R. 4973, the “Flood Insurance Reform and Modernization Act of 2006.” The measure would allow the NFIP to borrow up to $25 billion from the U.S. Treasury to pay insurance claims and would make other changes to the program to reduce the need for future borrowing. The Federal Emergency Management Agency (FEMA), which runs the NFIP, estimates it will need $24 billion to pay off claims resulting from the devastating destruction caused last year by Hurricanes Katrina and Rita. Separate legislation approved by the House and Senate would raise FEMA’s borrowing authority from the Treasury to $20.8 billion, up from the current ceiling of $18.5 billion. The agency has warned that it will exhaust its current borrowing authority in coming weeks and would then be forced to stop payments to flood claimants. NAHB’s succesful lobbying against several amendments during the House panel’s consideration of the legislation will result in significant savings for millions of property owners. Of particular note, an amendment that would have eliminated subsidized premiums on all NFIP properties was soundly defeated by a vote of 45-10. The Congressional Budget Office estimates that entirely eliminating all subsidies would boost average premiums by about 150%. However, the committee-passed bill does contain a provision to phase-out NFIP subsidies for vacation homes, second homes and commercial properties. H.R. 4973 would also:
In the Senate, Banking Committee Chairman Richard Shelby (R-Ala.) has indicated that his panel plans to advance a flood insurance overhaul measure in the next few weeks. Established in 1968, the NFIP offers affordable flood insurance to home owners and businesses in flood plains and other low-lying areas that otherwise might not be able to obtain coverage. More than 20,000 communities nationwide participate in the NFIP and the program currently covers approximately 4.8 million policyholders. To read the House legislation, click here and enter H.R. 4973 in the box at the center of the page. For more information, e-mail Scott Meyer at NAHB, or call him at 800-368-5242 x8144. NAHB Members to Carry Concerns to Lawmakers on May 10“For any builder who is concerned about their bottom line, attending the Legislative Conference could be the best decision that they make this year,” said NAHB President David Pressly, who has set a goal of expanding builder participation by at least 10% this year. “This is your chance to speak directly to your federal representatives on Capitol Hill, and communicate the challenges that you and your business face every day. Don't miss this once-a-year opportunity to really make a difference.” Decisions that affect a builder’s business are being made every day in the halls of Congress. Environmental regulations, tax policy, soaring health care costs and many other issues can add thousands of dollars to a firm’s annual operating budget, and Congress weighs in on each and every one of them. Bridgette Evans, EO of the Missoula BIA in Montana, recalls that her participation in last year’s Legislative Conference was an invaluable experience. “Of the meetings I attended while in Washington, the visit to Capitol Hill was the most beneficial,” says Evans. “It is good to see that we really do make a difference when we meet with members of Congress and their staffs. With this knowledge, I was able to go back to my board and the membership and feel confident when recruiting people to donate time to work on an issue." Sharon Larson, EO of Brookings Regional BA in South Dakota, voices similar sentiments. "A person can receive all of the e-mails and legislative alerts that come from NAHB, but not really 'get it' until they have heard first-hand how builders and home owners are affected on a daily basis,” she says. “Hopefully, we were able to make a difference that day, but in addition to that, I think having the ability to reference that meeting in my correspondence has been very useful." The NAHB Legislative Conference provides a unique opportunity for builders to speak directly with their members of Congress and to take a stand on the issues that affect their businesses and bottom line. Attending the 2006 Legislative Conference offers an unparalleled opportunity to:
Come to Washington and show your members of Congress the great work you do back home in building your communities. Urge your lawmakers to adopt sensible policies to enable your business to thrive and allow the nation’s home builders to fulfill their mission of providing safe, decent, affordable housing to all Americans. For more information and to register for NAHB’s 2006 Legislative Conference, click here; or e-mail Jessica Boyce, or call her at 800-368-5242 x8334. Housing Production Cools in FebruarySingle-family home construction dipped 2.3% to 1.8 million units last month, and from an unsustainably high pace of 460,000 units in January, multifamily starts fell 30.4% to an annual rate of 320,000. “The underlying market fundamentals remain solid,” said NAHB President David Pressly. “Job and income growth are moving ahead at healthy levels. Today’s starts numbers are another indicator that points towards an orderly cooling down process for the housing market in 2006.” “So far this year, housing starts have received a boost from unusually mild winter weather, even in February, and we expect to see these numbers move further down in the months ahead,” said NAHB Chief Economist David Seiders. “Indicators that measure housing demand — home sales, applications for home mortgages and our own survey of single-family builders — show that the cooling process has begun. Furthermore, single-family permits, which are less affected by weather than single-family starts, have been trailing down gradually from their highs last fall.” Seiders added that the evolving slowdown is actually a healthy development and should not lead to any major contraction in the housing markets. “Last year’s record-level of housing starts and double-digit price appreciation were unsustainable, and they encouraged many investors and speculators to enter the market,” he said. “With demand slowing, we expect to see price appreciation also falling back into the single-digit range, and that will discourage short-term speculators from jumping into the market. We anticipate another solid year for housing in 2006, with new-home construction and new home sales down about 7% from last year’s all-time highs.” Regionally, construction of new homes and apartments in February was down 23.5% in the Northeast, 10.4% in the Midwest and 11.2% in the South. Starts rose 7.9% in the West. The number of total building permits issued last month fell 3.2% to a seasonably adjusted annual rate of 2.145 million. Single-family permits fell 3% to 1.639 million, while multifamily permits increased 1.1% to 532,000.
To learn more or subscribe to “HousingEconomics Online”, visit www.housingeconomics.com.
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. For more information, visit www.nahb.org/cfc.
Give Us Your Perspective on the NAHB Economics Blog Give your economic perspective on NAHB's 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 Seiders know what you think. Builder Confidence in Market Inches Down in MarchThe NAHB/Wells Fargo Housing Market Index (HMI) has moved down one point this month, indicating that housing demand and sales are gradually cooling from overheated levels to a more sustainable pace. "Today's HMI provides the latest evidence of a predicted and orderly cooling process for the nation's single-family new-home market, which easily hit record highs in 2005," said NAHB President David Pressly. Noting that the confidence gauge has remained within a narrow two-point range for four consecutive months since declining from its peak in mid-2005, NAHB Chief Economist David Seiders attributed March's slight downshift to eroding affordability conditions as well as a gradual withdrawal of investor demand in some areas. "Rising interest rates and high rates of home-price appreciation have raised the bar for homeownership to beyond what some families can reach," he noted. "Meanwhile, a retreat of short-term investors from certain markets is helping restore equilibrium between supply and demand." Derived from a monthly survey that NAHB has been conducting for nearly 20 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales, sales expectations for the next six months and the traffic of prospective buyers, with any number over 50 indicating that more builders view sales conditions as good than poor. The March HMI registered 55, down from a revised February reading of 56, with one-point declines in the index’s single-family sales and prospective buyer components and a two-point drop in the six-month sales outlook. Both the current and expected sales remained well in the positive range, at 60 and 62, respectively. Regionally, builder confidence this month slid everywhere but the Midwest, which remained the gloomiest part of the country despite a seven point index gain, to 39, from February. While the confidence of builders in the West skidded six points in March, it remained the highest of the four regions, at 67. The Northeast was down two points to 55 and the South down four points to 58.
Want to Know the Housing Starts 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.
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. For more information, visit www.nahb.org/cfc.
Give your economic perspective on NAHB's 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 Seiders know what you think. 2005 Permits Look Good in Atlanta, Phoenix and HoustonWith the Atlanta, Phoenix and Houston-area markets leading the way, single-family home building permits reached a record 1.681 million in 2005, up 4.3% from the previous annual record of 1.613 million set in 2004, according to preliminary year-end figures by the U.S. Census Bureau. Single-family permits have been up for four consecutive years. The Atlanta metro region topped the nation with 60,950 single-family building permits in 2005, followed by Phoenix with 53,960 permits and the Houston’s 51,130. “The first three quarters of 2005 produced a record year in terms of volume of sales for our firm, and we are very optimistic about 2006,” said Bobby Lunceford, president of Bob Lunceford Properties, Inc. based in the north metro Atlanta market. Lunceford noted that his company built 19 homes in 2005, versus 16 in 2004, and that he expects to significantly increase output in the coming year. “We had a slightly sluggish fourth quarter where we had to carry over inventory into the new year, but we’ve established a construction pace where we believe that sales will support a volume of 30 homes in 2006,” he said. As for the overall Atlanta market, Lunceford is predicting another solid year, with housing production edging 2-3% below 2005 levels. Doug Cotter, president of the Greater Atlanta Home Builders Association, is also bullish about the region’s outlook in 2006. “The niche markets are still doing real well in Atlanta,” he said. “We’ve seen a little bit of a slowdown, but I equate it from going 90 miles an hour with your hair on fire to just going 90 miles per hour,” he said. Cotter, a builder-developer who is president of Cotter Homes and Cotter Properties and Development, also foresees another solid year for his business. “We built about 50 homes last year in a price range of $400,000-plus, and so far this year, we’ve had our best first quarter ever on the building side.” “I’m optimistic, yet guarded,” he added. “In Atlanta, just as in many other areas of the country, government regulations are slowing down land development, which will further slow down lot supply.” Paced by a resurgent energy sector, moderate home appreciation rates and a growing population, Houston continues to be a strong market for home builders, according to Randy Bayer, GMB, president of the Greater Houston Builders Association. “The west side of Houston in Katy is the energy corridor, home to Shell Oil, BP Amoco, ConocoPhillips and dozens of independent oil companies,” said Bayer, a custom builder and president of Bayer Homes, which constructs homes priced at $600,000 and up. “I am selling most of my houses to executives relocating to the Houston area. The expansion of Interstate 10 and the opening of the Westpark Tollway all the way to the Katy area county line has allowed more people to travel out to the western suburb of Houston.” Bayer built nine homes last year, up from four in 2004, and expects to construct nine to 12 houses in 2006. “Houston created 42,500 new jobs in 2005 and we are predicting 50,000 new jobs for the city in 2006,” he said. “For 17 straight years, housing starts in Houston have gone up from the previous year. And appreciation rates remain at a reasonable 5% annually, which keeps the Houston area affordable. Plus, many Hurricane Katrina victims are relocating to the area, helping to boost multifamily occupancy rates and single-family starts.” On a personal note, Bayer said he recently sold his own home to a Katrina evacuee who has been permanently relocated to Houston and is now working for the U.S. Postal Service.
For a complete listing of 2005 permit usage, provided in Excel format, click here.
To learn more or subscribe to “HousingEconomics Online”, visit www.housingeconomics.com.
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. For more information, visit www.nahb.org/cfc. Give Us Your Perspective on the NAHB Economics Blog Give your economic perspective on NAHB's 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 Seiders know what you think. NAFTA Panel Finds No Grounds for Lumber TariffsThe nation’s home builders on March 20 called on the Bush Administration to rescind punishing tariffs on Canadian lumber imports following a unanimous ruling by a North American Free Trade Agreement panel that Canada does not subsidize its lumber industry. “This marks the sixth time in the past three years that a NAFTA panel has found no justification for the U.S. to be imposing countervailing duties on Canadian lumber shipments into the American marketplace,” said NAHB President David Pressly. “It’s time for the U.S. to honor its legal obligations by eliminating these border taxes that are unnecessarily raising the cost of housing and refunding to Canada the duties that have been collected.” Currently, there is an 8.7% countervailing duty on Canadian lumber imports and anti-dumping duties average about 2.1%. The U.S. government imposed countervailing and anti-dumping duties totaling 27% on softwood lumber in May of 2002, charging that Canadian imports represented a “threat” to domestic lumber producers. The percentage was subsequently reduced on two separate occasions but remains above 10%. U.S. law permits countervailing duties to be imposed only if a foreign supplier is benefiting from subsidies and U.S. producers are being injured, or threatened with injury, as a result. On March 17, the NAFTA panel determined that the subsidy is below 1%, which under U.S. law means that the lumber imports are not subject to duties. The U.S. has until April 27 to file an appeal to the decision. Last week’s ruling has no effect on anti-dumping duties. Several NAFTA panel decisions have unanimously determined that the Commerce Department was using flawed calculations to reach the conclusion that Canadian lumber is subsidized. And on Aug. 10, a NAFTA Extraordinary Challenge Committee upheld an earlier NAFTA ruling that found no threat of injury from Canadian imports. It also stipulated that the U.S. was required to refund the billions of dollars of duties that Canada has paid to date. Although a NAFTA ruling carries the weight of law in Canada, the U.S. and Mexico, the Administration has failed to implement decisions that invalidate the lumber duties and return all duties paid out by Canadian firms. For more information, e-mail Michael Strauss at NAHB, or call him at 800-368-5242 x8252. Builder's Tip: A Jig for Router-Made Moldings
I think my new method is faster, more accurate and safer than using a router table — especially if the moldings are narrow and thin. As shown in the drawing:
Cutting the moldings is a simple matter of turning on the router and feeding the stock into the groove. In a few minutes I had hundreds of feet of molding. And because the stock was captured in the groove of the jig under the base of the router, my fingers never got near the cutters. — Bill Young, Berkeley, Calif. Tips & Techniques provided by Fine Homebuilding.
To request a reprint of this feature, e-mail Mary Lou von der Lancken at 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. Production Builders: NAHB Has a Web Resource Page for You
The page contains nearly 150 resources, and new resources are being added regularly. This resource is for NAHB members only. Resources include specific strategies to increase margins, tools to measure your home building company’s progress, resources for hiring and retention and ideas to improve your business processes Among the recently added members-only resources are:
New resources — including: how to sell more homes with the construction-perm (CP) product; how to make more money by controlling the mortgage finance process; building efficiencies through better technology; reducing financing costs; and maintaining business control with a mortgage joint venture — will be added later this year. These resources are being added through the support of American Home Bank, which is working with NAHB’s Single Family Production Builders Committee to sponsor some of the Web section’s content. More Ideas Wanted Production builders who build more than 25 homes a year are invited to provide ideas for new business management tools that they would like to see added to the production builder resource page. E-mail Natalie Holmes at NAHB, or call her at 800-368-5242 x8461 with ideas. NAHB Technology Solutions Directory Now Online 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.
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 association's Web site the place to go for the information and guidance that members need to succeed.
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To subscribe, visit www.nahb.org/BoB on the Members Only side of the NAHB Web site.
Marketing Automation — Selling More Without Spending MoreBy Steven Lewkowitz, Pivotal Corporation Builders in a hot market may be able to beat their competition with less than perfect lead-stroking. In cooler times, however, mishandled leads can translate directly into lost sales. Although it’s shaping up to be a modest slowdown, the cooling housing market is an opportunity for builders to shift from processes that worked in times of heady growth and gear up for when the going gets tough. One way to do this is by automating more of your marketing functions. Automation can help you manage leads more effectively — without spending more — always a smart business decision. Say ‘Hello’ to Marketing Automation Marketing automation encompasses various technology solutions all designed to facilitate the planning, execution, management and tracking of your marketing activities — everything you do from traditional print advertising, to direct mail and e-mail, sales events and promotions. Marketing automation includes event management solutions, planning tools, marketing analysis programs and more. It’s about doing more with less: running more campaigns, reaching more prospects and collecting more leads — while minimizing costs. Ultimately, marketing automation is about selling more homes faster and at a lower cost of sales. Leveraging the Internet, Saving Precious Marketing Dollars Good marketing automation systems help users manage and analyze the totality of their marketing initiatives, whether these are advertisements in print newspapers, glossy brochures sent by mail or in-person sales center events. One of the greatest advantages of automated marketing systems is that they allow builders to maximize the potential of the lowest cost marketing channel: the Internet. No longer a novelty, the Internet is now a vital tool for home builders. Keep in mind that builders aren’t just using the Internet for marketing because it’s cost effective, either. Builders are using the Internet because that’s where the home buyers are. A recent study conducted for the NAHB Institute of Residential Marketing (IRM) found that not only did Internet-using consumers value online resources highly in their home buying search, they found them the most useful, the most important and the resources they were most likely to use in future home searches. National Association of Realtors® research also indicated that 77% of home buyers use the Web when looking for a home. But the push toward more use of online channels is not driven purely by the consumer. Builders reported in the IRM study that the Web was the source of their best-quality leads. The Picture Is Clear Builders who neglect or insufficiently utilize online channels are passing up an obvious and relatively inexpensive vehicle for reaching the majority of potential buyers. To learn more about how to effectively use technology to get the most from your marketing dollars, visit the the Institute of Residential Marketing on the NAHB Web site. Steven Lewkowitz is professional services director of the Homebuilding and Real Estate Group at Pivotal Corporation. Pivotal offers the industry-leading Pivotal Homebuilder Front Office. For more information, e-mail Lewkowitz, or call him at 732-297-4060.
NAHB Has More Than 250 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 250 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.
Subscribe to NAHB’s Business of Building e/Source 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. Baby Boomers Ready to Rejuvenate 50+ Housing Market“Boomers have a strong preference for homeownership,” NAHB Chief Economist David Seiders said, and the rising numbers of members of this group heading into the traditional retirement years will be boost demand for new housing. Although many boomers and older Americans say they would prefer sitting tight and aging in place in their current homes, the demand for housing created specifically for graying Americans is strong. According to numbers from the U.S. Census Bureau’s American Housing Survey, 6% of all housing starts in 2003 were age-restricted or age-targeted. “As the boomers age, that number will grow,” said Seiders. Georgia-based builder Norman Cohen reported that he is finding that buyers in his company’s active adult communities are demanding more and more options. “Our customers are not looking for cookie-cutter homes,” he said. “They want upgrades and options. We have about 300-400 pre-priced options, and we find that buyers come up with options we haven’t even considered. And they are willing to pay for them. They’ve sold their previous home and they have the money to get what they want.” Cohen, chairman of NAHB’s 50+ Housing Council, added that “most 50+ buyers are not looking for a new place to live, but for a change in lifestyle.” Aging home owners don’t want to have to worry about maintaining their homes. Cohen’s company, Camelot/Signature Development, builds what he calls “lock it and leave it” communities, where all the painting, gutter cleaning, landscaping and other maintenance are taken care of. Although there is a segment of the market looking for “destination communities,” most of the 50+ home buyers Cohen has been seeing want to stay within five miles of where they used to live, or near their grandchildren or other family. In another trend reported during the teleconference, age-restricted communities are rapidly losing the stigma that used to be associated with them. “When my company began building active adult six years ago, ‘age-restricted’ had a negative connotation, but now that’s changed,” said Cohen. “It’s a positive because a lot of 50+ buyers want to be in a community with people like themselves. So many people are interested in it that it doesn’t concern me about advertising age-restricted as a feature because people are seeking it out.” Seiders predicted that the demand for age-restricted housing, which is allowed under a 1995 exemption to the Fair Housing Act, will keep growing. For more information, e-mail Elizabeth Landry at NAHB, or call 800-368-5242 x8680. Time is Running Out to Register for the 50+ Housing Symposium Do you want to learn more about the fastest-growing segment of the housing market? You still have time to register for Building for Boomers & Beyond: 50+ Housing Symposium 2006, 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 and 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. To learn more about the 2006 50+ Housing Symposium, which will be held April 24-26 in Phoenix, click here. Learn How to Market and Sell to the 50+ Home BuyerWith America’s 50+ population estimated to hit 100 million by the year 2010, and the first generation of baby boomers turning 60 this year, the active adult market represents one of the fastest-growing segments of the housing industry. Building for Boomers & Beyond: 50+ Housing Symposium 2006, held April 24-26 in Phoenix, will give attendees the keys to tap into the success of this market. The symposium offers a variety of sales and marketing-related courses focused on capturing the attention of the 50+ home buyer:
In addition to the sales and marketing program, the symposium offers courses in:
Pre-Registration Ends April 7 Pre-registration for the 50+ Housing Symposium ends Friday, April 7. On-site registration is $100 more. To register online, click here. Hotel reservations are available at the symposium rate through Wednesday, March 22. Call 800-HILTONS (800-445-8667) for a hotel room. Find Out What Boomers Want “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. Attend Upcoming Multifamily Conference in Scottsdale, Ariz.
Attend the Multifamily Pillars of the Industry Conference, the premier event for the multifamily industry, on April 2-4 in Scottsdale, Ariz. Online registration is closed, but onsite registration is available. 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. Among the session topics to be presented are:
The conference will be at the Hyatt Regency Scottsdale Resort and Spa at Gainey Ranch. For more information about the conference, click here. Directories Provide Remodeler Listings for ConsumersTwo directories on the NAHB Web site are geared to helping consumers find remodeling companies. Managed by the Remodelors™ Council, the “Directory of Professional Remodelers,” allows consumers to locate “professional home remodelers” who are members of the council at-large or through a local home builders association. The Remodelors™ Council’s directory is promoted through the nahb.org consumer Web pages, House Beautiful Kitchen and Baths and House Beautiful Remodeling magazines and other public relations efforts, with more promotions on the way. (For more information on the benefits of joining the Remodelors™ Council, click here.) Managed by the NAHB University of Housing, the "Builder and Remodeler Designation Directory" takes prospective customers to listings of local home builders and remodelers who have obtained the CGB, GMB, CGR or CAPS designations. Additionally, builders can search this directory for Certified Graduate Associates (CGAs). To be included in this directory, an NAHB member must hold one of the above mentioned designations and be in good standing. If you are unable to find your company in these directories and you meet the listing qualifications, you should seek assistance:
Enter the Best in American Living Awards Competition
Entries are being accepted for the 2006 Best in American Living Awards (BALA), the foremost residential design competition in the country. Builders, interior designers, architects, developers and marketing and real estate professionals are invited to enter. The competition includes 41 categories — from single-family attached and detached in a variety of sizes to rental developments and custom homes, plus categories for interior design, communities and neighborhoods, affordable housing, smart growth and others. Homes completed or for which the first model opened between May 1, 2005 and July 15, 2006 are eligible for this year’s competition. Entry Dates:
Co-sponsored by Professional Builder magazine and NAHB, winners will be announced at the 2007 International Builders’ Show Feb. 7-10 in Orlando, Fla. Winning entries also will be posted on the Professional Builder Web site, HousingZone.com, for up to one year after the announcement. For additional information and to download a BALA entry form, click here, or contact Judy Brociek, Professional Builder, at 630-288-8184 or Michelle Persinger Matuga, NAHB, at 800-368-5242 x8343. Past Winners A total of 92 award winners in 41 categories were chosen from more than 390 entries in last year's competition. Winners were featured in the January 2006 issue of Professional Builder. To view the winners as posted in an e-book on the Professional Builder Web site, click here. One 2005 winner is pictured below.
Designations Should Be the 'Norm' for Our Industry
Scott Sevon, CGR, CAPS, GMB
What designations do you hold? Have you ever won a customer or a job because of your NHAB designation? Yes, we have. Actually one of our clients is quoted in the new Remodelors™ Council CGR brochure. How has your designation tangibly benefited your career? The designations have kept me and the firm current. The ongoing education refreshes us and continues to teach us how to be better builders and remodelers. Doctors and surgeons must keep up their education and training — and so do we. How have you promoted designations among your peers? Your home builders association? Whenever I speak to one of our non-certified members or at meetings, I do promote the need for designations. Each time I introduce myself, I always use my certifications. This always perks interest in non-certified members. When I sign in on attendance sheets, I also list my certifications for all to see. Lastly, whenever a member wants to know more about designations, I try to mentor them and guide them into starting their own paths. Why should consumers ask for designations from their builders? I hope it becomes a norm in the industry for consumers to want to hire only professionals in our industry. When we go to doctors, surgeons, accountants and attorneys, we seem to always request or view their degrees and designations. Why shouldn't we do the same in our industry? If our professionalism through designations were more evident in the media, hopefully consumers would ask for only graduated professionals. Why did you choose to pursue a designation through NAHB? Again, to be better rounded and educated, and to bring more professionalism to myself and the firm. By taking the courses and educational programs and continuing education that The NAHB University of Housing provides, constantly monitors and updates, we are always kept ahead of the learning curve. Many of my friends and peers at NAHB have one or more designations, which sparked my interest long ago to obtain my designations and certifications. Also, because NAHB is the largest and strongest federation of builders and remodelers in our great nation. Start Your Professional Designation Today A designation shows your own commitment to improving your skills while showing your customers your commitment to the profession. To learn more about the HCCP designation and to begin the road to receiving this or one of the 13 other NAHB professional designations, visit www.nahb.org/designations. Education Calendar
Learn More About The NAHB University of Housing 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.
Register Now for the Design Institute At the NAHB/BALA Design Institute for Builders, you'll learn the latest in residential housing design trends from the industry's top professionals, tour beautiful award-winning homes and communities that display the best in cutting-edge architectural design, and learn how to profitably apply these design ideas to the homes you build.
The Design Institute will be held June 5-7 at the Westin Charlotte, Charlotte, N.C.
To register and for detailed information, visit www.nahb.org/designinstitute.
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. Twelve NAHB Green Building Award Winners Announced“Ron served as charter chairman of the NAHB Green Building Subcommittee and has worked tirelessly ever since to help bring green building into the mainstream,” said NAHB Green Building Subcommittee Chairman Ray Tonjes, a custom home builder in Austin, Texas. Other awards announced last week included:
For more information, e-mail Calli Schmidt at NAHB, or call her at 800-358-5242 x8132. Roadside Ditch Regulation Sparks Builder LawsuitThe rule directs Corps officials in the Philadelphia District to treat all upland ditches as navigable waters of the United States, triggering their regulation under the federal Clean Water Act. “This action is not only unnecessary but contradicts the wording of the act itself,” said NAHB President David. Pressly. “Once again, we find ourselves explaining to federal authorities what their own rules mean,” Pressly said. “You can’t regulate a roadside ditch like you do the Mississippi River. It’s excessive, it’s expensive, and ultimately, it’s reflected in the cost of new homes.” Furthermore, the Corps issued the ditch rule without appropriate notice, preventing property owners and other advocates from commenting on the rule, the suit says. NAHB maintains that under the Clean Water Act, upland ditches are regulated as “point sources.” The association asked the District Court to “declare the final Philadelphia Ditch Rule to be unlawful” and to “enjoin the Corps from relying on the Ditch Rule in making its jurisdictional determinations.” “We all work to abide by the environmental regulations that guide home building and support the goals of the Clean Water Act. But this ditch rule is just uncalled for,” Pressly said. The association has also filed friend-of-the-court briefs in two cases heard last month by the Supreme Court to decide the issue of the Corps’ jurisdiction over tributaries, Rapanos v. United States and Carabell v. Army Corps of Engineers. For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132. Large Numbers in Gulf Coast Not Paying MortgagesAlmost 76,000 home owners in Louisiana and Mississippi were seriously delinquent on their mortgages at the end of December, the survey found. These are loans that are 90 days or more past due or in the process of foreclosure, and they normally would be considered to be in default at this stage, but many borrowers have been taking advantage of forbearance programs offered by their lenders. In the immediate aftermath of Katrina at the end of last September, 24.6% of all mortgages in Louisiana and 17.4% in Mississippi were delinquent, or 30 days past due. By the end of 2005, those percentages had declined to 20.8% and 16.9%, respectively. As expected, a majority of the loans that were only 30 days delinquent in September have now fallen into the 90 days or more seriously delinquent category. As a result of the mortgage industry’s forbearance programs, the mortgage bankers reported, new foreclosures have actually dropped, to only 0.16% in Louisiana and 0.26% in Mississippi at the end of December, compared to 0.67% and 0.78% respectively during the same period a year earlier. The national average for foreclosures started stands at 0.42%. “The fact that we have almost 76,000 people who have not been able to resume making their mortgage payments, most as a direct result of Hurricane Katrina, points to the need to get a housing and economic development program funded and under way in Louisiana, and build support for the initiatives already undertaken in Mississippi,” said Jay Brinkmann, vice president of research and economics at MBA. “It is also important to realize that a number of home owners continue to meet their financial obligations despite not being able to occupy their homes or being temporarily relocated for other reasons,” he said. “These people are putting their faith and money into their expectations of a recovery along the Gulf Coast and those expectations must be met.” In Louisiana, 16.1% of prime loans were delinquent, 33.9% of subprime loans and 31.8% of FHA loans. In Mississippi, 11.8% of prime loans were delinquent, 31.1% of subprime loans and 24.9% of FHA loans. For seriously delinquent loans past due for 90 days or more or in foreclosure, in Mississippi the percentage of prime loans was 9.7%, 24.3% for subprime and 21.1% for FHA. In Mississippi, the percentages were 6.3%, 19.8% and 13.5%, respectively. Builders Invited to Accessibility WorkshopsFree workshops for builders and architects, code officials and building inspectors, Realtors™ and others interested in meeting the accessibility requirements of the Fair Housing Act are being offered this spring and summer in New York, North Carolina, Georgia and Tennessee. The workshops are sponsored by the United Spinal Association and the International Code Council, whose International Building Codes (IBC) for 2000 and 2003 are safe harbor documents that local jurisdictions can adopt to ensure compliance with Fair Housing Act accessibility requirements for multifamily buildings with four or more units. Endorsed by NAHB, the workshops will include a discussion of design and construction requirements, common violations and how local jurisdictions can adopt the IBC or one of six other safe harbor documents to ensure compliance with the law. NAHB played a leading role in securing safe harbor designation from the U.S. Department of Housing and Urban Development. "When you incorporate accessibility requirements into apartments and other multifamily residential facilities during the construction process, the cost is minimal yet the benefit to people with disabilities is enormous," said ICC President Henry L. Green. "The International Building Code already addresses the Fair Housing requirements. By working with the United Spinal Association and NAHB, we can educate builders about accessibility and significantly improve housing opportunities for the thousands of people with disabilities across the nation." The half-day workshops will be held in New York City on April 4; Raleigh-Durham, N.C., May 12; Atlanta May 25 and Nashville June 14. Click here to register. Additional information is available from the program brochure. Deadline Nears for Code Change ProposalsNAHB will submit between 40 and 50 International Residential Code change proposals this week. But individuals can do so as well and can visit this link for submission information. NAHB Construction Codes and Standards Committee members will meet this summer to consider the hundreds of code submissions from individuals, trade associations, manufacturers and other interest groups. Proposals with the greatest impact on NAHB members will be discussed in upcoming issues of Nation’s Building News. For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132. Development in Irvine a Neighborhood With ‘HEART’
Developed by Jamboree Housing Corporation, Montecito Vista is a multifamily rental development consisting of 84 two-bedroom, one-bath apartments starting at $510 per month and 78 three-bedroom, two-bath apartments starting at $589 per month. These units will be rented to households earning between 30% and 50% of area median income. Laura Archuleta, president of Jamboree Housing Corp., accepted the award. The development includes a community building, a small library, a computer learning center, as well as outdoor barbecues, on-grade parking and a swimming pool. Jamboree Housing Corp. also offers resident assistance programs, such as child safety courses, tutoring programs, computer learning classes and programs to help residents prepare for career opportunities in the job-rich Irvine area. “Basic shelter is only the beginning when it comes to improving the lives of lower-income residents of affordable housing communities,” Archuleta said. “JHC was one of the first nonprofit housing providers to recognize, and integrate into its program, the vital link between housing and on-site resident services. So strong is this belief that in 2004 Housing with HEART (Helping Educate Activate and Respond Together) became its own 501(c)(3) organization as an affiliate of JHC.”
“Housing with HEART fills a critical gap by providing essential services, tools and other resources to help our residents become more self-sufficient, and to help make JHC communities better places to live,” Archuleta added. “Our goal is to transform our developments into neighborhoods, by creating environments that foster communication, resident involvement and empowerment. Housing with HEART offers an innovative, comprehensive approach to developing a long-term resident services program tailored to each of its communities. The goal is to respond to the current and future needs of residents to improve their lives, break the poverty cycle and move them toward non-subsidized self-sufficiency.” Montecito Vista is adjacent to a new community park and a new technology center. It is close to hiking and bike trails and is just two blocks from The Market Place, a regional retail center with stores, restaurants and movie theaters that provide amenities and job opportunities. Montecito Vista is also adjacent the new Arnold O. Beckman High School, a $94 million state-of-the-art facility that is the first new high school built in the Irvine Unified School District in 40 years. From the initial phases of development through the implementation of property management, partnerships play a crucial role to the viability of a project, Archuleta said. “As a nonprofit housing developer, JHC is able to leverage a nexus of public and private funds through partnerships with local government, private developers, investors and the surrounding community. Public-private collaboration with partners like JHC is why Irvine boasts the greatest ratio of affordable housing units in Orange County,” she said.
“Irvine’s Housing Element indicates the city is a jobs-rich community with an estimated 3.4 jobs per housing unit,” Archuleta said. “The average price of a home is $693,500, but the fastest-growing California industries average annual salaries of only $17,000-$44,000. That means thousands of residents from other communities commute here for work, creating traffic congestion, air quality problems and other issues." “Incorporating rental workforce housing into its major employment centers makes sense for the city and families and is key to success for Irvine’s overall housing plan,” she added. “It provides workforce families with the opportunity to live where they work. This results in shorter commutes, access to better schools and more time with their families.” Archuleta offers this advice for those interested in providing workforce housing:
Florida Job Corps Students Earning College CreditUnder a $4.2 million grant from the U.S. Department of Labor to the Home Builders Institute (HBI), the workforce development arm of NAHB, model programs are underway at sites in Arizona, California, Connecticut, Idaho, Kentucky, New York, Pennsylvania, South Carolina, Virginia and Florida. Job Corps students participating in the Jacksonville program can receive 24 credit hours towards a degree from St. Johns River Community College or 30 hours from Florida Community College at Jacksonville. “Eighteen months ago, Labor Secretary Elaine Chao stood side by side with Kimsha Lowery, an HBI Job Corps student, to announce this grant and the benefit this effort would bring to Job Corps students,” said HBI Chairman Michael Sivage, a builder and developer in Albuquerque, N.M. “This is the type of collaboration we all envisioned at the time, and we hope other HBI Job Corps programs, home builders associations and community colleges will use this as a model in their career development efforts.” The Northeast Florida Builders have worked with the Job Corps Center in Jacksonville for some time, and several graduates have been accepted into the association’s apprenticeship program. In January, Kareem Dorsett, one of the association’s electrical apprentices, was recognized with the NAHB President’s Award at the International Builders’ Show. Through its Builders Care program, the association has also been instrumental in helping Job Corps students gain job site experience and work with prospective employers by participating alongside builders and contractors in community service rehab projects. HBI currently operates its standards-based trades training programs at 68 Job Corps Centers in 40 states. The “Building Today’s Workforce for Tomorrow” grant was awarded to HBI under the President’s High Growth Job Training Initiative. For more information on “Building Today’s Workforce for Tomorrow,” e-mail John Shortt at HBI, or call him at 800-795-7955 x8924. For information on HBI’s Job Corps programs, click here; or e-mail Maria McIntyre or call her at x8912. Insulation Protects Unvented Attics From Hurricane Rains
In the midst of a record-breaking year for Atlantic hurricanes in the U.S., Icynene, Inc., the manufacturer of The Icynene Insulation System, initiated a study last fall to evaluate insulating practices that can protect homes and their occupants from water and moisture damage resulting from high winds. Based in Toronto, Icynene, Inc. is a member of the National Council of the Housing Industry — The Supplier 100 of NAHB. The study was conducted by the Alan G. Davenport Wind Engineering Group at The University of Western Ontario, using a model home with reduced air infiltration rates similar to those that would be achieved in a home insulated with Icynene’s insulation/air barrier system. The model created for the test was a gable-roof house with the attic and living space scaled to maintain similar volume ratios to those of a full-scale home. Two different insulation applications were tested to determine which would perform better in strong winds. Wind climate models for Chicago and Miami were used during the tests. In the first test of a typical vented attic design, wind and the laterally-driven rain accompanying it entered the attic through the soffit vent assemblies, which under real conditions can cause flooding and an increased risk of mold growth and rotting building materials. Studying the rainwater performance of residential assemblies in Central Florida during hurricanes in 2004, building science expert, Joe Lstiburek of Building Science Corporation, concluded that “soffit geometries are currently not designed to address extreme wind-driven rain exposures.” In the second batch of tests, all of the soffit vents were sealed, creating an unvented sealed attic assembly, which is an approach recommended by Lstiburek and other experts to prevent rain from entering. With this approach, the attic becomes part of the conditioned space. The testing found that sealing the soffits eliminated the entry of moisture into the attic, helping to prevent moisture damage to the insulation and ceiling materials. “This technology has significant advantages in the Florida climate with respect to rainwater control, energy conservation, moisture and humidity control, wind uplift and fire performance over standard attic roof technology” Lstiburek’s study found. Icynene is one of the few insulation products that are approved for use in this type of application, according to its manufacturer. The material is able to create a complete air-seal, which reduces airflow and accompanying moisture in and out of the building envelope. Because of this product’s proven performance in unvented conditioned attics, it has been the insulation of choice for high-profile demonstration projects that feature this design, Icynene says. The International Code Council recently approved amendments to its International Energy Conservation Code and International Residential Code that approve unvented conditioned attic assemblies, stipulating that an air-impermeable insulation can be applied directly to the underside or interior roof deck, according to the manufacturer. 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. This Column Is in the ToiletCindy, my lovely wife, was on the warpath the other day. “TIM!” she shrieked, “I don’t care what it costs, you’ve got to replace the toilet in the mud room. That confounded thing plugs every time!” She didn’t actually use the adjective “confounded.” I took some editorial license and inserted that in favor of the more colorful term she did use, which is inappropriate for this highly professional column. Because she started with, “I don’t care what it costs…” my laser-pointed attention was wrenched from my favorite educational TV program, “SpongeBob Squarepants,” to this sudden emergency. “Tut tut,” I tried to sooth her. “We’ve been through this before. It only plugs when Corey (our 10-year-old) uses it.” “Tell that to the plunger,” she roared. “I just spent the last 10 minutes wearing it out on that [goll-darned] toilet.” There was a nugget of truth to her complaint, I must admit. This issue has been plaguing us for about seven years now. Many men might feel embarrassed to admit such a thing. I mean, who wants to be known as the large-turd family? “Say, there goes the Garrisons; the ones who are always plugging their toilet. Ha ha.” But is it really a matter of jumbo excrement, or is some other sinister mechanism at work? Seven years ago we built a carriage home above our garage as temporary living quarters until the Real-House-Adjacent could be built. It was to be a two-year stint, max. Or so I convinced Cindy. Being temporary quarters, we saved money wherever we could and, boy, wasn’t I proud of the $79 toilet I bagged at Eagle Hardware! I’m pretty sure that toilet was designed and made in Lilliput for Lilliputians because it couldn’t pass a 1-cent tootsie roll without plugging. I became an expert at plunging and can now tell you which variety of plungers work and which are a complete waste of money. (Go for the old-fashioned thick rubber ones with the street lamp-shaped end. The newfangled billows design is worthless). Cindy hounded me relentlessly about our toilet problem for two years. Since I hadn’t even started the design of the Real-House-Adjacent yet, I figured I’d placate her with the gift of a brand-spanking-new commode for her birthday. I went all out and purchased a $129 model, made in the USA for USA-sized people with commodiously-sized poops. Yep, I sure do know how to thrill my gal! Replacing the old Lilliput model was an experience. Apparently, all that plunging had rammed toilet water out of the soil pipe so frequently it had saturated the wood floor and had also rusted the mounting bolts, transforming the keen Lilliputian steel to approximately the consistency of canned dog food. Canned dog food has very little shear strength and so after I buggered off the edges of the nuts so that a wrench would no longer work, I cranked my vise grips on what was left, promptly snapping the bolts off like mechanical pencil leads extended too far out. But the Lilliputian toilet flange designers had already thought of this and made it impossible to extract the bolt stubs, thereby railroading me into the purchase of an entirely new flange. Fifteen trips to the hardware store later, the spanking-new $189 USA model toilet was proudly in place. I awarded Cindy first use. My two boys and I awaited eagerly just outside the door, our breath held in pregnant expectation. She plugged it. Her cries of anguish were surpassed only by the slapping sound of my hands on my forehead. “It’s got to be a freak turd,” I explained, barging in, my sons hustling past to carefully examine the aftermath. “I do NOT have freak turds,” she hollered. Sensing her distress, I tried to console her: “This USA toilet is supposed to be able to pass a four-pound russet potato and not even burp.” “This cull couldn’t pass a four-inch piece of cooked spaghetti! I want another toilet!” She rushed out muttering and gesturing extravagantly. Somehow I convinced her to give the toilet another try. Two years and several thousand plunges later I became suspicious that something was indeed wrong with the USA model because the ceiling in the garage directly beneath it was harboring an ominous orange fungus. It started as a hairy film, then slowly progressed to a billowing, leafy, brilliantly colored floral arrangement. And water dripped from it all the time, which annoyed me because my workbench is located directly below and the water was rusting my tools and causing me to work in a rain slicker. By this time I had actually started the design of the Real-House-Adjacent and had convinced Cindy to hang on with the USA model a little longer; that we’d replace it when we went to phase-two construction. She said okay, but with the provisio that I would remove the floral arrangement, which I did, along with half of the saturated drywall ceiling. I also solved the rain slicker problem with a few strategically positioned buckets bailing wired to the ceiling. Cindy, for some odd reason, did not appreciate this stroke of Yankee Ingenuity and nitpicked that she might prefer having the floral arrangement instead. This irritated me no end. For crying out loud, women can be so indecisive. (To be continued next week) 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. Send e-mail to buildersengineer@constructioncalc.com. Tim reads every one. This column cannot be reprinted without permission from the author. The views expressed in this article represent the personal views, statements and opinions of the author and do not necessarily represent the views, statements, opinions or policies of the National Association of Home Builders. NAHB does not necessarily endorse any of the views expressed by the author and NAHB is not responsible for any direct or indirect consequences arising out of the views expressed in this article. 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
Jennifer Watson and Barry Bless tackle building a modern prefab home that is as unique as their artistic lifestyle. Meet architect Rocio Romero and discover why she decided to design for prefab. Visit a factory where the LV panels are made and join builders onsite as they construct this modern kit home. 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 With www.nahb.org 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. KB Home Spreads TLC Throughout San Antonio
Actually, the TLC was the builder’s T-L-C (Teamwork-Leadership-Community) Volunteer Corps, and through it, 560 KB employees donated more than 2,220 volunteer hours at 55 projects. The KB employees donated $475,313 worth of labor and direct giving last year. Through the TLC Volunteer Corps, KB Home developed partnerships with non-profits that provide shelter and comfort for San Antonio’s neediest; that beautify and enhance the city; and that support education and at-risk youth programs. KB Home, San Antonio was honored with a 2005 Honorable Mention National Housing Endowment Builder Achievement Award for Outstanding Community Service for its collaborative outreach program during the International Builders’ Show in Orlando, Fla. in January. As winners of the award, KB Home, San Antonio received a $1,000 donation to be directed to the charity of its choice. The company selected the San Antonio Parks Foundation. "As a company we can certainly use our financial resources to build a better community. But the real strength of KB T-L-C lies in our ability to provide sweat equity,” said Craig Westmoreland, president of KB Home's San Antonio division. “Our non-profit partners know that when we commit to a project we're not just going to do what they ask of us, we're going to exceed their expectations." The T-L-C Volunteer Corps participated in projects that impacted nearly every aspect of the community. Recipients included hurricane victims, the homeless, abandoned animals, public school children, the hungry and the elderly. Many of these projects received favorable coverage in the local media, which further attested to KB Home’s positive community impact and the generous philanthropy of home builders. “We received letters in support of KB Home’s application ranging from elementary students to elected officials,” said Gary Garczynski, chairman of the endowment and 2002 NAHB president. “The T-L-C Volunteer Corps has contributed to a better San Antonio and reinforces the fact that our nation’s home builders make our communities stronger and our country greater.” 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. For the complete list of winners, click here.
Endowment to Fund ‘State of the Nation’s Housing’ Report
This will be the ninth year the endowment has funded the report. “The State of the Nation’s Housing” report provides essential housing information, including:
The report serves as an essential resource for both public policy makers and private decision makers in the housing industry. The endowment is continuing to support the Joint Center’s housing report by providing the center $24,000 over the next three years. “We are truly proud of our relationship with Harvard University and the Joint Center for Housing Studies,” said Gary Garczynski, chairman of the endowment and 2002 NAHB president. “This report exemplifies the National Housing Endowment’s goal to support academic and field research that identifies and supports independent research that will advance the state of the residential construction industry.” To order a copy of the “State of the Nation’s Housing,” e-mail Elizabeth England, program coordinator at the Harvard University Joint Center for Housing Studies, or call her at 617-495-7640. The report can also be downloaded from the Joint Center’s Web site at www.jchs.harvard.edu. NAHB Spring Board Meeting May 9-13The following schedule of events is a partial listing provided as a notice for the upcoming NAHB Board of Directors Meeting and Legislative Conference at the spring board meeting in Washington, D.C. on May 9-13, 2006. Meetings will be held at the National Housing Center and the Hilton Washington Hotel. The spring board program will identify the exact time and place of each scheduled meeting.
Tuesday, May 9
National Vice Presidents Meeting
State Representatives Meeting
Executive Board Meeting
Wednesday, May 10
Legislative Conference Issues Briefing and Hill Visits
Thursday, May 11
Committees, Subcommittees, Councils, Affiliates, etc.
2006 Presidential Coordinator Team Meeting
NAHB Past Presidents’ Council Meeting
NHC Board of Governors Meeting
Nominations Committee
Friday, May 12
Committees, Subcommittees, Councils, Affiliates, etc.
Saturday, May 13
Area Caucuses 1-15
Joint Executive, Budget and Resolutions Committees Meeting
Board of Directors
Hall of Fame Induction
Florida Middle Schoolers Building Homes of Their OwnDeveloped by NAHB as part of a comprehensive educational outreach initiative, the interactive teaching tool for middle and high school classrooms is free to educators and NAHB members. Building Homes of Our Own is a perfect match for the school’s progressive approach to education, according to Dr. John Mazzella, its principal. The school’s mission is to develop each student into an inspired life-long learner and problem solver with the strength of character to serve as a productive member of society, Mazzella says. “Exposing our students to different ways of thinking through the use of new technologies and real-life applications like those presented in the Building Homes of Our Own software package is a great way to enhance the critical thinking skills of our students and instill a lasting love for learning.” The computer animation game presents users with a macro view of the entire home building process, from site selection to final sale. Students are involved in every aspect, from initial lot selection and building permit acquisition, to the selection of interior fixtures and landscape placement. Students collect information and seek advice from in-game experts, including an oil scientist, environmental consultant, archaeologist, architect/land planner, structural engineer and civil engineer. They are required to make a multitude of choices as they construct a 3-D home, balancing their efforts with the desires of the community and budgetary constraints. Once the final coat of paint has dried and the sod has been placed, players win the game by reviewing credit applications and selling their newly constructed home to the buyer of their choice for a tidy profit. For more information about Building Homes of Our Own and obtaining copies for outreach to schools, click here; or e-mail Kym Kilbourne at NAHB, or call her at 800-368-5242 x8447. Spokesperson Training Still Available for 2006 Spring BoardWith the NAHB Spring Board of Directors Meeting in Washington, D.C. less than two months away, one of three Spokesperson Training seminars is still open for participants. Through Spokesperson Training, participants develop the skills to become more persuasive and effective communicators and are able to handle media interviews and deliver presentations with confidence. Seminars are led by professional communication consultants, each with more than 30 years of experience training NAHB members on the critical issues they face every day. Spokesperson Training is separated into two difference seminars:
Each seminar also includes one-on-one on-camera experience. “Spokesperson Training was one of the best courses I’ve attended in a long time,” said Alison Cox, developer and principal of Brice Group in Gainesville, Fla. “It taught me how not to be intimidated in interview situations and how to get my point across and my message out without feeling backed into a corner.” Space still is available for "Interview Skills" seminars on Wednesday, May 10, at the spring board meeting. The seminars for May 11 and 12 have waiting lists. More than 15,000 NAHB leaders and members have taked Spokesperson Training since the program began. To Register The fees for the Spokesperson Training one-day seminars is $475 per person. Registrations are accepted on a first-come, first-served basis. To register, e-mail Niki Clark at NAHB, or call her at 800-368-5242 x8061. For more information, visit Spokesperson Training on the NAHB Web site. (This link is available to NAHB members only.) Associate Member BUILD-PAC Drive Launched
The 2005 drive raised more than $60,000, and this year the Associate Members Committee is committed to raising $100,000. Bob Duff, of Fidelity National Title Insurance Company in Newport Beach, Calif., who serves on the Associates BUILD-PAC subcommittee, made a $1,000 contribution and was the first associate member to contribute to this year’s campaign. His $1,000 contribution makes him eligible for the BUILD-PAC Gold Key Club. The associates’ BUILD-PAC drive is the Associates Committee’s annual effort to raise funds to support NAHB’s legislative and advocacy efforts. BUILD-PAC, NAHB’s federal political action committee, aims to raise a total of $4 million for the 2006 election cycle. BUILD-PAC raised $2 million in 2005 and has disbursed more than $1 million to members of Congress and candidates for federal office so far this election cycle. For more information on BUILD-PAC, e-mail Denise Mills at NAHB, or call her at 800-368-5242 x8459. Contributions or gifts to BUILD-PAC are not tax deductible. BUILD-PAC cannot accept corporate checks. Federal law requires political action committees to report the name, mailing address, occupation and name of employer for each individual whose contributions aggregate in excess of $200. GM $500 Exclusive Offer for NAHB Members
For complete details, visit www.gmfleet.com/nahb The program runs through Jan. 3. 2007. 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. Other Member Advantage Discounts 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
To view more meetings and events information on the NAHB Web site, click here.
Make Your Connection With www.nahb.org 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. |
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