Nation's Building News Online: April 3, 2006Print All Articles Text Version |
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States Make More Headway on Construction Defect SuitsWisconsin has become the 28th state in the nation to enact notice and opportunity to repair (NOR) legislation making it easier and less expensive for builders and home owners to resolve construction defect disputes. Signed by Wisconsin Gov. Jim Doyle (D) on March 27, the new law requires home owners to give builders written notice of an alleged construction defect before they can file a lawsuit. The builder then has 30 days to inspect and offer to remedy the defect within a reasonable period of time; offer to settle the claim through a monetary payment; or choose to reject the claim altogether and allow the owner to proceed with a suit. "We've been looking for a way to resolve disputes without having to go to court," said Frank Madden, president of the Wisconsin Builders Association (WBA). "This legislation provides a sensible alternative that enables the builder and the home buyer to resolve disputes without turning to costly litigation." Madden noted that many locals throughout Wisconsin have had arbitration procedures in place for a number of years. The new law will complement those existing arbitration procedures, he said. “We're very pleased to have adopted NOR legislation in the Wisconsin legislature this session,” said Brad Boycks, director of political affairs at the WBA. “Providing contractors with notification and allowing them an opportunity to inspect and repair is an important step, and we hope it will reduce the number of cases unnecessarily taken to the courts.” Elsewhere in the country, the Virginia legislature recently adopted House Bill 558, which would strengthen the state’s current NOR law. The bill is currently awaiting Gov. Tim Kaine’s (D) signature. Several other states are also considering NOR legislation during the current legislative cycle. "It's worth noting that more than half of the states have enacted notice and opportunity to repair laws," said NAHB President David Pressly. "This is certainly not a coincidence. Across the country, state legislators and governors have recognized that contentious litigation is not the best way to resolve construction defect disputes."
"Notice and opportunity to repair laws provide a common-sense approach to dealing with construction defect problems," Pressly added. "It's an approach that has received widespread and bi-partisan support across the country. This support goes beyond government officials to the members of our industry and the public in general. This is just one of the many key industry issues the Wisconsin Builders Association has been successful in moving forward for their members.” For more information on Wisconsin’s new law, e-mail Brad Boycks with WBA, or call him at 800-362-9066 x16. For more information on NOR laws across the country, e-mail Gerry Keegan at NAHB, or call him at 800-368-5242 x8326. Floor Plans: Family Rooms — Born in the 19th CenturyCommon knowledge has it that the “family room” came into being during the latter half of the 20th century when families outgrew the tiny ranch houses built immediately after World War II and began seeking larger, more luxurious homes. Well, common knowledge is off by more than a century. That relaxed, informal space for families actually emerged in the 1870s (if not before). A Home With a Formal Parlor, Plus Room for the ‘Family’
Plans for the vintage home featured here were first published in the December 1877 issue of Manufacturer and Builder, a New York City-based building industry news magazine. The plans clearly show a separate family room in addition to the more formal parlor. The visionary architect who — almost 130 years ago — anticipated one of the most important home design trends of the late 20th century was Lawrence V. Valk. He worked out of offices at 229 Broadway. According to the magazine, the frame-built house sat on a stone foundation, sold for $3,600 and included a parlor and “a family or sitting room” on the first floor. Also on the first floor were a kitchen and pantry off the home’s dining room. Upstairs were “five good-sized bedrooms.” Beautifully Finished — For Less The home’s interior was “finished in pine — no painting; but filled and varnished, a beautiful and inexpensive way of interior finish.” The home also featured brick fireplaces with flues made of “new fire-proof composition pipe, plastered over the same as brick.” While a note on the floor plan also indicates that the home did have a bathroom on the second floor, the exact configuration of the second floor is unknown.
Instead of publishing the floor plans for the first and second floors as it usually did with the houses that it featured each month, Manufacturer and Builder opted to print an alternate first floor design utilizing the same footprint — but without the family or sitting room.
Cisterns, Indoor Plumbing — and More Savings The article also noted that both versions of the home “have shingle roofs, and cellars under nearly the whole, also a cistern, and plumbing in bath-room, water closet, etc.” Following a new trend in home building, the design dispensed with setting ranges in brick, “for the new patterns lately introduced do not require brick-work, which is a great saving.” Even though our contemporary home building industry can no longer lay claim to having originated the concept of the family room, we can take comfort in the sure knowledge that the home’s single bathroom wasn’t equipped with a whirlpool tub, a handheld shower massage or a dual-sink vanity. And, of course, Valk’s design didn’t include a low flow toilet.
Plans courtesy of:
Affordable Home Plans Available at BuilderBooks.com "Affordable Home Plans," available through BuilderBooks.com, offers readers 275 of the most popular, stylish and affordable home designs available. Included are practical tips and expert advice on creating interior and exterior accents for the new home. To view or purchase this publication online, click here, or call 800-223-2665. Reader Survey: Tell Us What News Is 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. NAHB Proposes Code Changes on Wind Effects, Foundation WallsRanging from minor administrative changes to requests to change construction methods that otherwise could cost home builders more money and take a toll on housing affordability, NAHB has submitted 65 proposals to the International Code Council (ICC) for discussion during the upcoming 18-month 2006 cycle of code revisions. Among the proposals submitted by NAHB:
For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132. KB Leader Addresses Housing ChallengesLand availability and entitlements are the biggest challenges for Los Angeles-based KB Home in California’s East Bay market, company president Drew Kusnick told a reporter for the Contra Costa Times. An urban limit line approved by Contra Costa County voters in November has reduced opportunities to find land that’s entitled, he said, but “it helps create different types of opportunities, like urban infill (dense development within city borders), which is more where our business is moving as well.” Kusnick said that eight years ago his company didn’t do much infill, but today it accounts for a third of KB business and it’s growing to half. Land prices in Northern California are the largest obstacle to the housing affordability that KB sees as one of its competitive advantages. “There is a shortage of land,” he said, “and great challenges in getting it entitled for land development. That underlines the basic constraint of supply. By adding more density per acre, we’re driving down the land-cost component. Typically, it also opens up more opportunities, you can deal with smaller sites. A few years ago we wouldn’t have looked at a three- or four-acre site.” (www.contracostatimes.com)
Dispute Could Increase Flood Insurance CostIn a move that could increase flood insurance premiums in North Carolina by at least $1.4 million a year, FEMA officials are threatening to reduce flood insurance credits in 18 coastal communities in the state unless the N.C. Building Code Council extends miles inland a new rule requiring storm shutters for windows and doors on all new homes built within 1,500 feet of the ocean. In Wrightsville Beach — long considered a model of storm readiness — flood insurance discounts may drop from 25% to 10%, and that would force roughly 2,500 policyholders there to pay $242,000 more for flood insurance, or about $96 per home. The code in question requires doors and windows to be strengthened against flying debris propelled by tropical storm or hurricane winds. Solutions include pre-cut plywood sheets that can be nailed to window casings and doorjambs, as well as more expensive metal shutters and pricier windows made of armored glass. The code council found little scientific or engineering evidence that the rule would be needed far from the beach. (www.starnewsonline.com)
Anti-McMansions Have Every Comfort of HomeJay Shafer, who started the Tumbleweed House Co., helped Gregory Johnson build a 7-foot-wide by 10-foot-long chalet in Iowa City, Iowa in 2003. Bigger than a child’s playhouse but much smaller than a typical Manhattan studio apartment, the house features metal roofing, exposed stud interior walls, red oak flooring and wheels that enabled it to be parked in the back yard of his parent’s house. The anti-McMansion has high ceilings and a sleeping loft, which make it feel more spacious, says Johnson, who is the founder of the Small House Society. With a mailing list of more than 200, including architecture firms and urban planners, the group’s monthly e-mail newsletter provides tips on a range of topics, including housing code battles and home owners insurance, two common stumbling blocks for enthusiasts. A Hurricane Katrina refugee who lost her home in Bay St. Louis, Miss., Julie Martin has worked with Shafer to design a special Gulf Coast model of a tiny house, with a front porch, asymmetrical windows and doors, porcelain faucet handles and other details typical of the area’s old homes. The homes come with two essentials — a full bathroom and a walk-in closet — and because they’re built to last and can be set on property later as a guest cottage, Martin says that the tiny houses, which start at $37,000, will appreciate, unlike a trailer. (www.chicagotribune.com)
Sellers Learning New LanguageAlan Nevin, chief economist for the California Building Industry Association, says that Latinos remain underrepresented among California home owners, but their children will dominate the entry-level housing market within the next decade. Currently, 44% of the state’s Latino households are home owners, compared with 57% for all of the state’s households, because of lower income and cultural influences, particularly an aversion to buying on credit. Nevin said Latino home buyers generally won’t buy condominiums as their first homes because they want a yard. And he said extended Latino families often prefer a fixer-upper near a downtown where they work rather than commute to a nicer house on a suburban fringe; one reason is that not everyone in the family may own a car. Laura Castro de Cortes, a banking consultant, says that financial institutions must recognize the needs of Latino customers. Many choose not to have credit cards, preferring to pay in cash, she said, leaving them with limited credit histories when they apply for loans. Latino purchasing power nationally will top $1.08 trillion by 2010, up 413% from 1990, according to the Selig Center for Economic Growth at the University of Georgia. By 2010, Latinos will account for 9.2% of total U.S. consumer buying power and 17.2% in California. (www.pe.com)
Top 10 Millionaire CountiesAlthough real estate is not their sole source of wealth, it remains a staple for many of the nation’s 8.9 million households with a net worth in excess of $1 million excluding their primary residence. Forty-six percent of those surveyed last year by TNS Financial Services, a market research and polling firm, said they owned investment real estate like a second home or rental properties, a smaller share than in the previous year, compared to 70% owning stocks and bonds and 68% mutual funds. America’s millionaires are disproportionately located in four counties in California. Other states where they are easier to find include Illinois, Arizona, Texas, New York, Florida and Massachusetts. Millionaire households last year reported total income averaging $119,000. Those who drew some of their income from jobs reported earning an average of $82,000 in salaries or professional fees. (www.cnnmoney.com)
Custom Installed A/V Offered by More Builders, Says CEA/NAHBA new study by the Consumer Electronics Association and NAHB found that 74% of builders who offered home technology last year offered multi-room audio as a standard or option, up from 68% in 2004 and 56.8% in 2004, and actually installed them in 15% of the homes they built. The survey also found that builders selling home technology increased their sales of everything but structured wiring, perhaps because of “the plethora of inexpensive wireless networking technologies.” The overwhelming majority of the builders surveyed — 86% — agreed that home technologies are important to marketing homes, the study said. A third of builders who install home technology believe that this helped them both sell homes and boost their revenues last year. Builders “are becoming more involved with home technologies as a means to compete and differentiate themselves,” the study said. “And to compete effectively, many builders have reached out to somewhat nontraditional partners. This year we see evidence of new-home builders working more closely with custom installers, retailers and service providers to collaborate on offerings and installations." (www.twice.com)
Take the Ax to the Costly Canadian Timber TariffBy Ron Dzwonkowski, Detroit Free Press Columnist Well, at least at loggerheads with the Canadians, since this ongoing fight is about lumber. It's a war the United States keeps losing, too, most recently in a battle two weeks ago. Yet Uncle Sam won't surrender and, as a result, Americans are probably paying more than they should for new homes and an infuriated Canada keeps talking about turning this into a trade war with its biggest economic partner. Whether that would lead to skirmishing here, at the busiest border crossing, isn't clear. But anything that slows or reduces traffic isn't going to be in Michigan's best interests, unless it stops the parade of Canadian trash trucks. This war has escaped notice of much of the U.S. population, maybe because we have other wars on our minds, maybe because most of us buy our lumber a few two-by-fours at a time from Home Depot and don't pay much mind to whether it's U.S. or Canadian. But the "softwood lumber" war has been front-page news for a long time across Canada, where it is seen as yet another example of America's refusal to be bound by the same rules as other countries even when, as in this case, we practically wrote the rules. In fact, the latest official panel to declare that the United States is wrong under the North American Free Trade Agreement to slap a punitive duty on Canadian softwood lumber comprised three Americans and two Canadians, who made a unanimous decision on March 17. It was the sixth time in three years that a NAFTA panel has sided with the Canadians. The U.S. government, however, acting at the behest of some American lumber producers, has yet to concede the error of its position that the Canadian government is subsidizing lumber producers who then "dump" their product on the U.S. market below their cost. The tariffs, which have ranged over the course of this dispute from 27% to the present level of about 10%, remain in place. Canadian companies have paid about $5 billion in these tariffs — which become part of the price of lumber — to export their wood to the United States. This is money that should be refunded to them under the NAFTA rulings the United States refuses to accept. U.S. home builders figure the tariffs add about $1,000 to the cost of a new house. A little background: Belying its name, "softwood lumber" is the building block of housing and remodeling because of its strength and flexibility. Hardwood is actually more brittle and better suited to furniture and other uses. The U.S. needs annually more softwood timber than we can or want to cut here, and the Canadians grow a better grade of it. Consequently, about a third of all the softwood lumber sold in the United States comes from Canada, and we need it. We'll need more of it, too, once the Gulf Coast Katrina rebuild shifts from cleanup to reconstruction. The point of NAFTA, for better or worse, is just what its name says: free trade, which means commercial competition irrespective of borders and, in theory, larger markets and opportunities. It is the same basis on which the Bush Administration pushed a similar Central American Free Trade Agreement through Congress last year. The safeguards in NAFTA, and CAFTA, are the international, quasi-judicial panels that settle disputes between the trading nations. You either honor those procedures or invite NAFTA partners to look out for their self-interests, too, and pretty soon your agreement isn't worth the paper it's written on. The United States has until April 27 to adhere to the latest NAFTA ruling or file yet another appeal. America has enough ill will directed its way these days without inviting it so close to home over something that shouldn't be such an issue. Besides, we need the lumber. RON DZWONKOWSKI is editor of the Free Press editorial page. Contact him at dzwonk@freepress.com, 313-222-6635, or in care of the Free Press editorial page. Reprinted with permission from the Detroit Free Press Inc. Copyright © 2006 Help Bring Industry Concerns to Lawmakers on May 10Builders seeking the rare opportunity to walk the halls of Congress with their colleagues and to meet with their lawmakers to discuss issues of concern for the housing industry won't want to miss the association's most important grassroots activity of the year — the NAHB Legislative Conference on May 10, a day-long event coinciding with the spring board meeting. “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.” Why Your Help Is Needed 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. “Of the meetings I attended while in Washington, the visit to Capitol Hill was the most beneficial,” said Bridgette Evans, executive officer of the Missoula Building Industry Association in Montana, who attended the Legislative Conference last year. “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." Meet With Your Members of Congress 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. To Register 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. Court Reviews Discriminatory Lending Law in MarylandMontgomery County, Md. Circuit Court Judge Michael D. Mason on March 7 issued an injunction staying a new law that would grant the county’s Human Rights Commission broad authority to impose steep fines against mortgage lenders accused of discriminatory lending practices. The court issued the injunction while it reviews a legal challenge to the law filed by the American Financial Services Association (AFSA), a trade group representing mortgage lenders. In its filings, the association alleges that only the state, and not the county, has the authority to regulate mortgage lending. The new law, which was approved by the county council in November, would prohibit lenders from steering borrowers to more expensive mortgages. In addition, the law would increase the number of lending practices considered discriminatory, including charging "abusive prepayment penalties” and financing “excessive points and fees.” Opponents argue that the law does not adequately define discriminatory lending, making it difficult to determine when a violation occurs. They also argue that if the law is implemented, it will greatly diminish the availability of credit for potential home owners and will create an uncertain legal environment for lenders because it does not protect them against frivolous lawsuits. Under the law, the Human Rights Commission could fine lenders up to $500,000 for “humiliation and embarrassment” resulting from a discriminatory lending practice. In addition, lenders would have to pay “any other relief” as determined by the commission. Raquel Montenegro, associate director of legislative affairs at the Maryland National Capital Building Industry Association (MNCBIA), noted that such monetary liabilities, and the legal uncertainties associated with them, would discourage lenders from making loans in Montgomery County and create roadblocks for the secondary mortgage market. “Before the bill was introduced, 640 lenders placed loans in Montgomery County," she said. "After its introduction, approximately 70 lenders suspended lending operations, resulting in a $3.8 billion, nearly 15% of the market share, loss for Montgomery County,” AFSA, the Mortgage Bankers Association and the Maryland builders worked to enjoin the law. The county court has scheduled a hearing on AFSA’s lawsuit for July 6. Two county council members have also introduced legislation to repeal the controversial law. For more information about the Montgomery County lending issue, e-mail Raquel Montenegro at MNCBIA. Builder’s Tip: Sharing Compressed Air
This setup allows me to plug in at any connection, at the compressor or in the field simply by unplugging someone else’s hose, plugging mine into where theirs was and plugging theirs back into the female coupling in the T-fitting. This arrangement saves time, and you never irritate anyone else by stealing their air connection — at least for more than five seconds or so. Shortly after adapting my hoses this way, it dawned on me that I ran the risk of getting dirt and debris into the female coupling when it wasn’t being used. So I ran a plug into a male coupling and drilled a hole in it for a small chain that attaches to a key ring at the end of the hose. Presto. A built-in debris barrier. — Carl McFarland Jr., 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. Log In and Explore www.nahb.org Explore the latest housing industry news and information on www.nahb.org — the official public and members-only Web site of NAHB. With an expansive "For Consumers" section, www.nahb.org provides a credible source of information on home building and remodeling for your customers. The Web site also provides a wealth of member discount programs and business resources developed for you. Plus, to make it easy to get what you need, the Web site has built in time-saving features like My NAHB to customize the site to your interests, My Favorites so you can select specific links to appear on your www.nahb.org Home page and online Staff Directories so you can find NAHB housing industry experts quickly and easily. Use www.nahb.org to stay on top of the latest housing industry news, access your council and committee materials, register for courses and events and stay abreast of NAHB’s efforts to promote housing. Log in today to start taking advantage of this free NAHB member benefit. A Sick-Pay Plan Can Help You Build a Healthy BusinessConsider this situation: A key employee or even your business partner (and co-owner of your company) has a mild heart attack. His physician says he can return to work in six months. But in the meantime, his family counts on his salary. The company is doing well and you want to do the right thing. Do you continue to pay him? If so, what are the effects? For the answer, we need to look at a landmark case that was decided in the federal courts back in 1963 {E.W. Chism Estate v. Comm’r, 322 F. 2d 956 (9th Cir. 1963)}. The court found that the Chism Ice Cream Company did not have a sick-pay plan in effect before Chism was disabled and had not provided any formal, written communication to employees. Therefore, “sick-pay” payments made to Chism were not a tax-deductible business expense, but rather dividends. A key employee’s disability is a serious problem for a small business and a lot more probable than most small-business owners realize. Statistics show the staggering chances of a disability of 90 days or more occurring before age 65. For example, in the case of two 30-year olds, there’s a 55.2% chance; a 64.3% chance in a group of three 40-year olds; and in a group of four 50-year olds, there’s a 64.2% chance that one of them will become disabled. The odds are even higher for women. (Source 1985 CIDA and 1980 CSO). The IRS Says: No Plan — No Deduction! As far as the IRS is concerned, all monies paid as well as FICA contributions made on behalf of disabled employees are not considered wages unless the business has established a qualified sick-pay plan. Although one would think all wages would be tax-deductible as business expenses, IRS rulings and regulations clearly indicate that “wages” can be paid only to an employee. According to the IRS, an employee is someone who
Pay to disabled employees not covered by a plan is considered ad hoc payment and not deductible as a business expense. What’s more, payments made to owner-employees may be considered dividends as well. The result of all this is quite clear: No plan — No deduction. Employers who think they’ll simply establish a plan if and when a disability occurs face the same consequences. The plan, according to the IRS, must have been in place prior to the disability and it must have been communicated to the employees. What Is a Qualified Sick-Pay Plan? A QSPP is simply a formal agreement that provides for a firm to continue some or all the wages of employees, including stockholder employees, during a disability. Just about every kind of business entity can and should establish a QSPP — corporations, partnerships and sole proprietorships. Plans must be in writing, and each covered employee must be aware of the plan’s terms. And as previously stated, the plan must be in place before a disability occurs. While most larger, more established businesses have a formal sick-pay plan, the vast majority of small businesses have no plan in place. Under Section 162 of the Internal Revenue Code, payments made to an employee under an accident and health plan are deductible to the employer. This is true whether the plan is insured or self-insured by the employer. A sick-pay plan must be deemed to be for the employees’ benefit. Unlike Employee Retirement Income Securities Act of 1974 (ERICA)-governed pension and retirement plans that carry rigid limitations and restrictions, however, a QSPP can cover one or more employees. And the employer may establish different plans for different classes of employees. Although certain ground rules should be followed, the opportunity for creative plan design appears to be limited only by the imagination and ingenuity of the employer and the employer’s advisers. No IRS Approval Required What does it take to establish a QSPP? First, it’s necessary to have a formal plan document that sets out:
Sample prototype documents are available that companies easily can use, along with sample resolutions and suggested letters that need to be provided to covered employees. While plans are referred to as “qualified,” it is important to note that no IRS approval is required. Establishing a formal sick-pay plan solves the business’s tax problem, but a critical question still remains. Should the plan be insured or uninsured? Although a plan need not be insured to satisfy the tax law, an insured plan offers business owners significant advantages.
Thus a plan covering several disabled key employees would need to project the potential full cost of the possible liability. With an insured plan, the insurance company assumes full liability for all insured benefit payments (the insurance company admits the liability on its annual statement). Louis F. Rendemonti, CLU ChFC, is the president of Suncoast Wealth Management, a Sarasota, Fla.-based financial services firm dedicated to helping owners and employees of companies involved in home building Industry. For more information, e-mail Rendemonti, or call him at 941-378-7883. Republished with permission from Louis Rendemonti and the Florida Association of Home Builders — www.fhba.com. 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. ‘Meet the Experts’ at Building for Boomers & BeyondIf you have questions about the active adult market, don’t miss “Meet the Experts” at “Building for Boomers & Beyond: 50+ Housing Symposium 2006.” Interact with active adult experts who can guide you and help you make the right business decisions to capitalize on this growing market. Join others in an interactive presentation with a panel of experts covering many active adult housing topics. “Meet the Experts” on: Tuesday, April 25
Wednesday, April 26
Pre-registration ends Friday, April 7. On-site registration is $100 more.
Save 15% when you purchase “The 50+ Housing Publication Set” through BuilderBooks.com. The set includes one copy of "Boomers on the Horizon: Housing Preferences of the 55+ Market," "Marketing Seniors Housing" and "The Best of Seniors’ Housing News." This publication set is a must for anyone serving the 50+ market. To view or purchase this publication set online, click here, or call 800-223-2665. Condo Hotels, Affordable Apts. Key Conference TopicsAre condo hotels the next big thing? Where are land prices and interest rates going? Will market-rate apartments bounce back strongly in 2006? The industry experts gathering in Scottsdale this week for NAHB Multifamily’s Pillars of the Industry conference will address those issues and more. There is still time to join the more than 450 multifamily developers, builders, architects and planners attending the conference who want to know what the smartest folks in the industry think, and add their own wisdom to the mix. It’s an active — some say overactive — market, and the more you know, the better you’ll handle the inevitable challenges and surprises. Onsite registration will be available starting today, Monday. Although NAHB’s block of rooms at the Hyatt Gainey Ranch hotel is sold out, rooms at a reduced rate are still available at the Gainey Suites Hotel, which is within easy walking distance of the Hyatt. For reservations, call 800-970-4666; mention the NAHB Pillars Conference to receive a special conference rate. For more conference information, visit the Pillars conference Web page.
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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. Remodelers Get More Time to Study EPA Lead Paint RuleIn good news for remodeler members of NAHB, the U.S. Environmental Protection Agency is extending to May 25 the public comment period for its proposed "Lead Renovation, Repair and Painting Program" rule. This will enable the NAHB Remodelors™ Council to continue testing the actual exposures generated by renovation and remodeling activities, as well as the effectiveness of the lead-safe work practices EPA has proposed under this rule. NAHB contends that the rule targets the wrong industry and will not accomplish the intended goal of reducing lead-paint exposure among small children because it applies only to remodelers or other professionals being paid to make renovations and not to home owners, who do the work themselves more than half the time. As they are passed on to consumers, the extra costs of the materials and training needed to comply with the proposed lead-safe work practices will only encourage more unregulated “do-it-yourself” remodeling, according to NAHB. Worst of all, said Remodelors™ Council Chair Vince Butler, a remodeler from Clifton, Va., “The unintended consequences of making it more difficult to hire a remodeler may leave even more children with the potential for exposure.” With more time to conduct testing under the extended comment period, NAHB continues to seek the help of association members in locating appropriate buildings for the research. Members who can assist in this effort are being asked to e-mail environmental policy analyst Gary Suskauer at NAHB, or call him at 800-368-5242 x8327. EPA will be discussing the proposal at two public meetings this week: on April 4 in Atlanta and at a final meeting in San Francisco on April 6. For additional information, click here.
Where is the Remodeling Market Headed? Find out in the HousingEconomics Remodeling Forecast (for a sample, click here). Included are downloadable Excel tables and forecast data through 2014 with topics like "What Drives Remodeling?" and "Who is Remodeling?" Subscribe today!
Attend the Spring Construction Forecast Conference in April Plan to attend NAHB's Construction Forecast Conference on April 27 at the National Housing Center in Washington, D.C. The conference brings together the nation's premier housing economists and finance experts for an in-depth examination of the economic outlook for the housing industry. 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. Annual Remodeling Volume Crosses $200 Billion ThresholdCrossing the $200 billion threshold for the first time, residential remodeling activity in last year’s third quarter hit an estimated annual rate of $210 billion, according to NAHB analysis of spending statistics from the U.S. Census Bureau. The association is now predicting that Americans will spend a record $238 billion this year remodeling their homes, a 13.2% jump that would be the sharpest in more than 10 years. Spending on home remodeling grew by 5.8% last year, in line with an average rate of 5.3% from 1994-2004. “The devastating 2005 hurricanes and a rebound in the rental market are expected to spur a historically high increase in spending this year as repair work proceeds in the Gulf states and apartment owners renovate properties to maximize rental income,” said Vince Butler, CGR, CAPS, GMB, chair of NAHB’s Remodelors™ Council. “The massive owner equity and low refinance rates that fueled recent growth will continue to drive strong expansion.” For every $100,000 spent on additions and alterations, the local community receives $54,200 in income, $4,900 in taxes and other government revenue and more than one local full-time job, according to an analysis by NAHB economists of the local economic impact of remodeling. “The $200 billion remodeling industry is almost exclusively made up of small businesses that operate in local communities,” said Butler. “And we can now confirm that money spent on remodeling stays local.” Regionally, the South accounted for 31% of all remodeling expenditures in 2004, the last full year of Census data, with an average of $1,513 spent per household. It was followed by the West, with a 23% share and $2,104 spending per household; the Northeast, with a 23% share and $2,185 spent per-household, the highest of any region; and the Midwest, accounting for 20% and registering $1,530 per household remodeling spending. The residential remodeling market accounts for approximately 40% of all spending on home construction. For more information, e-mail Jim Lapides at NAHB, or call him at 800-368-5242 x8451.
Find out in the HousingEconomics Remodeling Forecast (for a sample, click here). Included are downloadable Excel tables and forecast data through 2014 with topics like "What Drives Remodeling?" and "Who is Remodeling?" Subscribe today!
Attend the Spring Construction Forecast Conference in April Plan to attend NAHB's Construction Forecast Conference on April 27 at the National Housing Center in Washington, D.C. The conference brings together the nation's premier housing economists and finance experts for an in-depth examination of the economic outlook for the housing industry. 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. Maryland Alliance Committed to Work Site SafetyRecognizing the value of working together to promote a safe and healthful work environment in the residential construction industry, the Maryland-National Capital Building Industry Association on March 10 joined with several national and volume builders in the Greater Washington region to form the Maryland Home Builders Safety Alliance and establish a partnership with the Maryland Department of Labor, Licensing and Regulation and Maryland Occupational Safety and Health (MOSH). As part of the effort, the builders and MOSH will be collaborating on at least four hours of formal training for various trade industries, including masonry, framing, siding and roofing. The training will focus on falling, electric shock, “struck by” and “caught in” hazards. The initiative will include an outreach effort to non-English speaking members of the workforce. In addition, the alliance will create and disseminate informational safety materials for English and non-English speaking workers on hazards associated with siding installation. “We believe this cooperative approach is the best way to begin to reduce the risks workers face every day they build our homes,” said Larry Freiert, director of safety and risk management for Winchester Homes. “This alliance will ensure that workers who are exposed to the greatest risk of injury will have access to training and educational materials. Alliance members will share best practices and work with MOSH to ensure that safety is a top priority in the minds, and the practices, of our employees." A general contractor, Winchester took the initiative to form the alliance last November, convinced that a cooperative approach was needed to address the repetitive safety and health problems of construction subcontractors. “Maintaining a safe workplace is a primary responsibility of our members, and we believe that they should be able to look to their association for information they can use to reduce worker injuries, illnesses and fatalities,” said Kristy Mitchell Sullivan, president of the Maryland National Capital BIA. “We also believe that an open dialogue between builders and the regulatory community will result in further progress on this crucial issue.” The building firms that created the alliance are: Avalon Bay Communities, Beazer Homes Corporation, Centex Homes, Clark Realty Builders, K. Hovnanian Homes/Maryland and Delaware Regions, KB Home Mid-Atlantic and Winchester Homes. Founders of the alliance are hoping to eventually expand participation to 16 organizations. For more information on health and safety issues and resources available from NAHB, 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. Awards Honor Service to Log Home Industry
Log home professionals and companies were recognized last week in Harrisburg, Pa. by the Log Homes Council (LHC) of NAHB for their service to the industry. “It has been a tremendous year for the log homes industry and the future looks even brighter,” said Al Theriault, incoming president of the council and director of operations for Kuhns Bros. Log Homes in Lewisburg, Pa. As the industry continues to gain visibility in the marketplace, he said, “more home buyers are considering log homes as primary residences.” There were some 27,000 log homes constructed in the U.S. last year. The winners included:
Success Reported for Designation Push in FebruaryTallying the results of activities aimed at publicizing the value of ongoing education for professionals in the home building business, home builders associations around the country are reporting success from their participation this February in NAHB’s 3rd annual National Designation Month. Last year, more than 15,000 individuals completed courses towards a professional designation. With the designations they earned, they can apply the latest industry information to demonstrate their expertise to prospective customers and take a decisive lead over the competition. Throughout February, National Designation Month events sponsored by The NAHB University of Housing enabled NAHB members to hone their business skills and impress their clients with the superior training, practical experience and in-depth knowledge commensurate with earning an NAHB designation. Events From Around the Country Among activities related to the month-long effort:
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.
Log In and Discover www.nahb.org The NAHB Web site, www.nahb.org, gives you access to nearly 5,000 pages of housing industry information and exclusive members-only resources 24 hours a day, seven days a week. Access is fast, easy and free to NAHB members. To take full advantage of the exclusive NAHB members-only resources on www.nahb.org, however, you must log in. To create your login:
By logging onto the NAHB Web site, you will have access to twice as much information as non-members — information that will help you stay ahead of your competition. You will be able to view and read entire sections of content developed just for members, and you will be able to personalize the site to your specific interests. To learn more, log in and visit the "How to Use" www.nahb.org section in My NAHB. For questions or help logging in, call 800-368-5242 x0; or e-mail your name, company name, state and phone number to login@nahb.org. New Wetlands Rules Would Encourage Mitigation BankingA new “results-oriented” wetlands mitigation rule proposed by the U.S. Environmental Protection Agency and the U.S. Army Corps of Engineers would change how wetlands mitigation is regulated by establishing performance standards and criteria for on-site mitigation and mitigation banks, with the goal of applying the same standards to both types of mitigation and encouraging banking where possible. The rule is aimed at “improving the quality and success of compensatory mitigation projects for activities authorized by Department of the Army permits,” the proposal says. The emphasis on mitigation banking should be welcome news for smaller builders who don’t have the resources to successfully engineer and construct new wetlands. “Home builders are not the right people to be in the wetlands mitigation business, just as you wouldn’t want a mitigation banker to build your home,” said Susan Asmus, NAHB’s staff vice president for regulatory affairs. “On the surface, this looks interesting, but the devil is in the details. We need to take a close look at all the implications of this proposed rule and work with the agencies to ensure that the final rule is workable for builders and does not have too profound an effect on housing affordability.” Regulatory experts at NAHB are scrutinizing the proposal now in preparation for submitting written comments. The proposal also directs regulators to look not just at the wetland in question, but the entire watershed in determining how to best mitigate a wetlands loss or removal. It would also require in-lieu fee programs to meet the same standards as mitigation banks. “NAHB members all want wetlands mitigation efforts to be successful because we understand the important ecological contributions that wetlands can make,” said NAHB Executive Vice President Jerry Howard. “We are encouraged by reports that this proposed rule builds on the guidance already available from EPA and the Corps and makes it consistent across the board,” he said. “Equally important is that the rule recognizes that there are several options available for providing compensatory mitigation,” he said. “We applaud the EPA and Corps’ efforts to encourage flexibility in cases where the functionality of one wetland makes ‘acre for acre’ replacement less effective for the watershed as a whole. We look forward to examining this new rule closely.” Comments are due by May 30. For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132. National Interest Spurs Energy Efficiency ConcernsMore than saving money or saving the planet, the war in Iraq and the national interest come closest to what’s motivating American consumers to become more receptive to energy-efficient products and conservation activities, according to polling results presented at the NAHB National Green Building Conference last month in Albuquerque, N.M. When a telephone survey conducted by the Shelton Group last summer asked 406 households to choose from a number of messages that would be most persuasive in convincing them to focus on energy efficiency in their purchasing decisions, roughly 36% identified protecting the nation’s economy and reducing its dependence on foreign oil. Less than 25% said that saving money would be their leading inducement to pursuing energy efficiency, followed by ensuring quality of life for future generations, which was picked by roughly 21% of the respondents, and protecting the environment and saving natural resources, the choice of about 19%. The “Energy Pulse 2005” survey, which the Knoxville, Tenn. marketing firm plans to update annually from here on out, also found that green builders will have to tread carefully to capitalize on widening opportunities to stand out and flourish in the marketplace, because consumers generally have a weak grasp of what sustainability means and they aren’t necessarily looking to builders and architects as the people who can teach them. Over People's Heads “Despite openness to energy-efficient products, there is a lack of understanding about green, renewable energy,” said Suzanne Crofts Shelton, the company’s president. “Eighty percent can’t name one form of it,” she said. “It’s over people’s heads, and they don’t understand what builders are talking about.” The term “conservation” elicited a positive response from 70% of those surveyed, Shelton said, significantly more favorable than what would have been found a decade ago, but almost half of the respondents (47%) gave a big collective shrug to “green.” “They just don’t get it,” she said. Local builders and architects need to step up to the plate to establish themselves as experts in this field. Only about 37% of the households that were polled said that the two groups of professionals were knowledgeable about energy-efficient home features and apt to include or recommend them. And only about 46% said they would be likely to purchase energy-efficient products through their home builder or contractor — compared to 82% from a national home improvement store such as Lowes or Home Depot, 79% from a national home appliance store such as Best Buy or Sears, 66% from a local appliance store and 57% from a local heating and air dealer. Putting Views on Energy Into Practice Survey results also indicated that the public is not yet sufficiently wired on the energy issue to actually put some of their views on the subject into practice. “There is a disconnect between what people think and that they do,” according to Shelton. “While 59% of Americans said that the issue of energy conservation is extremely important now and 72% think it is going to be extremely important in the next 10 years, only 32% say it’s extremely important in how it currently impacts their purchases and daily activities.” Nevertheless, “the use of energy-efficient products and services is surprisingly high and growing,” she indicated. Americans reported an average of six conservation activities over the last year, ranging from efforts as simple as purchasing a compact fluorescent bulb or recycling daily to installing solar panels or purchasing a hybrid car. Eight-eight percent said they were likely or very likely to purchase at least one additional energy-efficient product or undertake one additional energy-efficient activity in the future, and in fact, they actually expect to pursue an average 4.5 energy-efficient products or activities in the period ahead, the survey found. Among top conservation products or activities of particular relevance to members of the home building industry, survey respondents said they:
Finding Favor With Blue-Collar Workers In the past, purchases of these products have been driven largely by high-educated, white, upper-middle class, white-collar workers, she said. In a significant shift, many of those products are now finding favor with lower-income blue-collar workers and minorities. About 78% of survey participants said they would choose one home over another based on its energy efficiency. When asked why they do not participate in more energy conservation activities:
Willing to Pay More Fifty-five percent of those surveyed said they were willing to pay more for energy-efficient home features that would help save money on monthly utility bills and potentially increase the resale value of their home. Among those, the average extra amount they said they were willing to add to a home purchase price was $9,600. The most frequent amounts specified were $10,000 (15%) and $20,000 (12%). Among those who were willing to pay more for energy-saving products, about 37% said they were willing to wait more than three years to recoup the additional expense, 16% would wait two to three years, 18% one to two years, 22% six months to a year and 7% less than six months. About 18% of the survey group was characterized as being highly committed to energy conservation, and they were primarily highly educated, single, 25-39-year-old members of Generation X. The commitment of 58% was moderate, primarily comprised of high-income baby boomers; and 24% demonstrated low commitment, a group that is primarily low-income, senior or with less than 12 years of education. To download NAHB’s Green Home Building Guidlelines, click here. For information on green home building resources at NAHB, e-mail Calli Schmidt, or call her at 800-368-5242 x8132. ‘Just-in-Time’ Deliveries Thwart Job Site TheftsWhile job site theft of appliances, fixtures, lumber and other equipment and materials continues to be an area of concern for the residential construction industry, it doesn’t have to be an inevitable cost of business, according to Frank Alexander, director of quality programs at the NAHB Research Center. There are a number of crime prevention measures builders can take to combat the problem, he says, and being smart about delivery schedules is one. “Just-in-time delivery is one of the most important things you can do to prevent job-site theft,” Alexander said. “The longer materials sit on a site, the more opportunities for them to disappear.” Putting the risk of theft aside, ordering materials too early doesn’t make good business sense, he said. Early invoicing means paying for materials that aren’t being used, and the materials are more likely to sustain damage from exposure to the elements. Materials shouldn’t arrive until they are needed, he advised, and they should be used as soon as possible. The success of just-in-time delivery hinges upon field crews meeting job-ready requirements. Field managers should reinforce these requirements to prevent trade contractor overlap and limit the amount of materials left unattended. Hiring trades with a formal quality assurance process in place helps to ensure that job-ready conditions are met consistently. The appearance of unsecured materials is a sure-fire lure for thieves, warns Alexander, so if receiving materials ahead of schedule is unavoidable, be sure to make arrangements with suppliers to leave materials boxed or banded. Work Tickets Used to Focus on Job Site ‘Hot Spots’Inspection forms are worthless if they don’t help to reduce core problems, or “hot spots,” that continuously arise in the field, according to Quality Matters, the e-newsletter of the National Housing Quality (NHQ) Program. But using spot training techniques can turn that situation around by focusing direct attention on the issues that demand a response from field personnel, says the NAHB Research Center publication. TCM Masonry, an NHQ-certified trade contracting company based in Mesa, Ariz., recommends using work tickets to help keep hot spots front and center on the job site. To use this method, start by developing an inspection form that lists potential hot spots for a particular job site. Then, copy the list onto the back of each work ticket, with the designated hot spot highlighted. As the work tickets are issued to the crew, the affixed hot spot inspection list serves as a daily reminder of the item, and helps to ensure that it is not overlooked. This method can be easily adopted for any trade and allows inspection forms to be used as a training tool instead of as routine paperwork. This is just one of a number of ways to introduce hot spot training to field crews, Quality Matters says. “Keep in mind that whichever method you choose should be simple and repetitive to enhance the likelihood of retention.” The Research Center is looking for other hot spot training methods that are being used successfully by home builders. Information can be e-mailed to: qualitymattersmoderator@nahbrc.org. Seventh KB Home Division NHQ Certified in CaliforniaKB Home Orange County, a regional division of national production builder KB Home, is the nation's newest NHQ Certified builder, and the first in Orange County, Calif. to earn the designation, according to Quality Matters, the e-newsletter of the National Housing Quality Program. Leading the way for California builders, KB Home now operates an unprecedented seven NHQ Certified divisions within the state. KB Home has been delivering quality homes in communities throughout Orange County for more than 30 years. But, the company's focus isn't solely on building homes; a visible commitment to customer service excellence remains a top priority. "Becoming the first builder in Orange County to be named an NHQ Certified Builder is a significant milestone in our continued commitment to providing superior customer service, innovative architecture and quality homes in Orange County," said Jay Moss, KB Home Orange County division’s president and regional general manager. "KB Home is driven by these goals in everything we do. Completing the National Housing Quality Certified Builder program was particularly important to our division because it demonstrates to home buyers and our partners that KB Home is dedicated to delivering quality homes." For more information on KB Home, click here. The NHQ Certified Builder seal represents the high standards of quality that today's home buyers expect. If your company has a strong commitment to customer satisfaction, a focus on quality assurance and continuous improvement and strives for operational excellence — start on the path to NHQ certification today. Visit www.nahbrc.org/quality or contact Don Carr, NHQ Certified Builder program manager. 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.
Attractive Atlanta Area Homes Offered at an Affordable PriceRecognizing ingenuity in the development, construction and marketing of affordable workforce housing, NAHB honored five communities with its Innovation in Workforce Housing Awards at the International Builders’ Show in Orlando, Fla. in January. In an effort to bring attention to outstanding examples of workforce housing, Nation’s Building News is showcasing the winners of the award in a series of articles. The fourth development in the series is Peachtree Homes in Jonesboro, Ga.
Developed by Peachtree Homes, Peachtree Villages offers two-story town homes with two-, three- and four-bedroom options in prices ranging from $110,900 to $121,900, making them very affordable to the local workforce. “We’re very pleased we did this project,” said Whitney Aguilera, who accepted the award on behalf of Peachtree Villages. “We’ve been able to offer homeownership opportunities in this community that might not otherwise be available to these families in Jonesboro and the greater Atlanta area.” The homes have rear entry alleyways with optional garages, creating a “Main Street” look for the development, with 50-foot sodded front yards complete with sidewalks, decorative trees and white picket fences.
“We’ve learned a lot about design elements that can add a lot in terms of aesthetics and value without adding a lot to the cost of the homes,” Aguilera said. “Little things can make a big difference. For example, we’re now running the sidewalks inside the fences so that children can play and use the sidewalks and still have that barrier between themselves and the street.” Peachtree Villages offers 107 attached town homes on 17.4 acres. Built on the site of a failed commercial venue, the development has been a significant workforce housing success, with 68 of the homes already sold. The homes have been purchased by teachers, day care workers, truck drivers, medical technicians and people who work in the retail industry. “We want to recognize those individuals and organizations that saw the need for workforce housing and who took the tough steps to provide it,” said Bobby Lunceford, a previous winner of the award who announced the award winners. “And we want to hold up these projects as models of successful workforce housing that other builders and developers can emulate.” That recognition makes a difference for builders and developers who choose to get involved in workforce housing developments, Aguilera said. “It’s amazing how many phone calls we have gotten as a result of this recognition.” For more information, e-mail Blake Smith at NAHB, or call him at 800-368-5242 x8583. Project TRADE Helps Build Habitat Homes in OcalaA new Project TRADE (Training, Restitution, Apprenticeship Development Employment) facility was opened in Ocala, Fla. last fall by the Home Builders Institute and Phoenix House, a nationwide drug and alcohol treatment center, to help fill state vacancies in the home building industry, which totaled more than 10,000 last year, according to the Florida Department of Labor. As part of their training in the construction trades, Ocala’s Project TRADE students have been participating in several hands-on community service efforts, including a large-scale development project with the Marion County Habitat for Humanity that will have helped 22 needy families build their own homes by the end of this year. Currently, 12 student volunteers are gaining extensive construction experience working on 16 Habitat homes two to three days a week. “It’s been a blessing having these Project TRADE students here with us,” said Brad Nimmo, president and CEO of the local Habitat affiliate. “They have been perfect gentleman and have the skills to work on advanced projects. Their work has sped up our entire building process tenfold and has saved us countless dollars.” The students have been assisting the Habitat project by digging trenches for pipe and plumbing and installing framing, drywall and roofing. “We are hoping to give them (the students) something meaningful to do when they get back outside,” Sherry Cates-Aquino, director of education at Phoenix House, told the Ocala Star Banner for a story appearing on March 7. “With these skills, they now have an alternative to running back to drugs.”
Of Ocala’s first graduating class of 15 in February, 13 have already been placed in jobs in the home building industry. Among them was Daniel Hoppel, who was able to make the transition to becoming a Rector Construction employee with an $800 grant from The Patsy and Heman Smith Fund for Excellence in the Trades, which he used to purchase a skill saw, compressed air gun and houses and various tool accessories. The ex-offenders who have been rehabilitated by Project TRADE have a recidivism rate of only 7.8%, almost 50% below a national rate of 15%. Project TRADE also operates at sites in Colorado Springs, Colo. through a partnership with ComCor, and in Sheridan, Ill. For more information, e-mail Dennis Torbett at HBI, or call him at 800-795-7955 x8908. Weyerhaeuser U.S. Mills Produce Certified ProductsWeyerhaeuser Company announced in February that all of its 68 paper and wood products mills in the U.S. now meet independent standards for responsible wood purchasing. Headquartered in Federal Way, Wash., Weyerhaeuser is a member of the National Council of the Housing Industry — The Supplier 100 of NAHB. Outside auditors have certified that all of Weyerhaeuser’s primary mills in the U.S. meet the procurement provisions of the Sustainable Forestry Initiative (SFI®) Standard. The provisions require the mills to:
All of Weyerhaeuser’s U.S. forests have previously been independently SFI-certified, and the forests the company manages in Canada are certified under the Canadian Standards Association Sustainable Forest Management standard or the SFI standard. 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. My Love-Hate Affair With MoneyTIM: “I love hate money.” DR. FROID U. LENT: “Vat dos zat mean: love hate? You speak in oxymorons.” TIM: “On the one hand I enjoy having money and the things it can buy. But on the other — and perhaps even more poignantly — there are many thing about money that I despise. DR. FROID U. LENT: “Like vat thinks? Vat could you possibly not like about munney?” TIM: “Like that it separates people. It defines who can be your friend and who not. And that it makes people do things they normally wouldn’t do, such as lie and steal.” DR. FROID U. LENT: “Vedy intedestink. But stupid. Zere is nothing wrong with munney and having lots of it. Zat is ze Amedican way, no? You are suffedink from middle-age laissez-faire. Zession es closed. Zat will be eight hundred dollars pleez.” TIM: “But… but, I don’t even know what laissez-faire means! DR. FROID U. LENT (shouting over his shoulder): “Ullllgga! Zend in ze next zucker… I mean patient. And make it znappy! Ve’re not runnink a chadity confessional here!” If you are in business, it is your job to make money. The more the better. Following that logic leads to the notion that the more money you have, the happier you’ll be. But that statement poses a couple of thorny issues: 1. Most humans will not restrain their overzealous pursuit of wealth even when it exacts too great a toll. 2. I’m not so sure that money equals happiness to begin with. I recall growing up with my three brothers on our family’s 76-acre ranch in Modesto, Calif. Mom and dad were so strapped with mortgage payments and bills that some months there was literally nothing left. At Christmastime, were it not for a group of benevolent relatives in New Jersey, our thin gift exchanges would have been vaporous. But I can’t remember a happier time. We were healthy and always had enough food; chiefly because we grew most of it in our gardens, raised beef cattle and milked our own dairy cows. We worked hard, but then, we played hard too. For some reason it is the play time that I remember most. (Unless I’m trying to make a point with my own children; then all I can remember are the 25-hour workdays and the absence of a single toy.) One thing about being poor. You appreciate what you’ve got. When I was 12, I got a new baseball mitt for my birthday. I used that mitt so many years it became infamously known as “The Rag.” I restrung it at least three times using the materials we had on hand: shoe laces. One year I carelessly left it out in the north pasture (our ball field) over the winter. When I discovered it the next spring I was horrified to find that a cow had dropped a bomb on the last three fingers, which, after fermenting and promoting a healthy crop of mushrooms, turned them permanently black and rotted the stitching. (I think the cow recognized a distant relative in the leather and aimed for retribution.) Ten years later I was still using that mitt. Several years after that, my wife finally couldn’t stand the embarrassment any longer and got me a new one for my 30th birthday. I smiled thinly and pretended to be thrilled. Now, at age 46, that new mitt is finally getting broken in. I like to show the kids on my little league team the worn out spot in the middle where you’re supposed to catch the ball. A worn out spot like that is something you can’t buy. Probably I shouldn’t get into the longevity feats I’ve accomplished with underwear. Which brings me back to my first thorny issue: that our reckless pursuit of money sometimes takes too great a toll. The ultimate motivator in our culture is money — cold, hard cash. As much as we’d rather admit to benevolence, love, environment or some other politically correct commodity, money is what motivates us. Yes, we are addicted to cash like a heroin junkie to his next fix. We’ve set ourselves up with lifestyles that require a certain amount every month and we’ll sacrifice extravagantly to ensure that we get it. And if we can make even more — forget the spouse and kids, where do we sign up? A good friend owns a small construction company. He recently told me a story about a client who did not pay for $60,000 worth of work. It brought back nightmarish memories concerning certain past clients of mine. My friend’s case is likely headed to court or arbitration — an almost certain guarantee that he will lose. Even if he wins the decision, the cost, both mentally and monetarily, will not have been worth it. I know, I’ve been down that road too many times. In my experience, judges and arbitrators are not looking to exact justice. They’re looking for common ground — compromise. The problem with small-dollar lawsuits (anything under about $100,000) is that the cost of bringing them to court is too great to justify the return you might get. I’ve never seen a dispute like this result in a one-sided spanking of the guilty party. It is always a partial award. Partial because even if your case is iron-clad, a good opposing attorney will find a chink in your armor — some small foible or error you committed. Your case is not iron-clad, I guarantee it. But if you’re like I was when I was younger and dumber — believing in the righteousness of our legal system — you’ll go to court anyway. The lawyers will get paid their fees and the chips will fall where they may. You’ll miss a ton of billable work in preparations, meetings and court time and spend several months stressed out like a bungee cord. In the end you’ll wonder, Where are the winners? I explained this to my friend and advised him to settle out of court. “For what amount?” he asked. “As a first stab, try to recover everything but your profit. In other words, propose a break-even agreement.” “And if the shyster doesn’t go for that?” “Negotiate. In the end, though, I wouldn’t hesitate to settle for 50 cents on the dollar, or even less.” “Unh, I don’t know about that, man,” my friend said, cinching up the surgical tubing around his biceps and aiming a loaded syringe at the bulging vein in his elbow. “That’s a lot of money to leave on the table.” “Okay,” I said. “I understand. I had to find out for myself too. Give 'em heck.” The morals of this story are twofold: 1. Money is a powerful motivator. Proceed with caution, keeping things more genuine, like family and health, in mind. 2. Conduct your business to avoid being owed money in the first place. How, you wonder? I’ll tell you how in next week’s column. 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 WeekThe NAHB Production Group produces four weekly television shows on HGTV and DIY for consumers. The following is this week's lineup: "I Want That" on HGTV
"Dream Builders" on HGTV
"Rock Solid" on DIY
"Assembly Required" on DIY
Episode: "Modular Home (Part 1)"
Meet two families who realize just how fantastic custom prefab homes can be. Watch as the Papadapoulos family considers prefab home options for their Virginia vineyard. Also, meet the Surratt family who used prefab technology to create a one-of-a kind modular home. Tour their home and find out the many upgrades that are available to modular home buyers.
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. Log In and Explore www.nahb.org Explore the latest housing industry news and information on www.nahb.org — the official public and members-only Web site of NAHB. With an expansive "For Consumers" section, www.nahb.org provides a credible source of information on home building and remodeling for your customers. The Web site also provides a wealth of member discount programs and business resources developed for you. Plus, to make it easy to get what you need, the Web site has built in time-saving features like My NAHB to customize the site to your interests, My Favorites so you can select specific links to appear on your www.nahb.org Home page and online Staff Directories so you can find NAHB housing industry experts quickly and easily. Use www.nahb.org to stay on top of the latest housing industry news, access your council and committee materials, register for courses and events and stay abreast of NAHB’s efforts to promote housing. Log in today to start taking advantage of this free NAHB member benefit. Deadline Nears for Matching Funds Grant ApplicationsThe deadline for matching fund grants for the Challenge/Build/Grow initiative from the National Housing Endowment, the philanthropic arm of NAHB, is Monday, April 17. The endowment awards grants to state and local home builders associations in support of their innovative programs addressing education, land use and labor shortages and worker training. Since the program began in 2001, matching fund awards around the country have totaled more than $95,000. As the program has evolved, greater emphasis has been placed on innovation and collaborative efforts with schools and community organizations. The following programs have received funding previously:
For grant applications and information, visit the endowment Web site at www.nationalhousingendowment.org; or e-mail Troy Patterson at NAHB, or call him at 800-368-5242 x8483. NAHB Has Free 'New Homes Month' Resources for YouThe ad above is one of many resources available to NAHB members and associations for promoting homeownership and building and buying new homes during "New Homes Month" — or throughout the year. April is "New Homes Month," and to help you make the most of it, |