Print-All Page: June 12, 2006

Rising interest rates and high land and production costs will continue to push the cost of housing beyond the means of many American families, and a disproportionate share of the blame for today’s sky-high prices goes to misguided local government policies, according to participants in a June 8 symposium on barriers to homeownership.

The one-day meeting in Washington, D.C. was sponsored by Wells Fargo Home Mortgage and attended by some 300 representatives from home building, home finance, Realtors®, housing affordability advocacy groups and government, including HUD Secretary Alphonso Jackson.

The symposium addressed the current economic and demographic conditions that are constraining homeownership, as well as the need to educate consumers and to provide financial services that meet the needs of low- and moderate-income families.

“The ’90s were a pretty dog-gone good decade for housing. But we expect this decade and the next to be even better,” said David Crowe, an NAHB senior staff vice president. “We expect interest rates to climb a little bit more this year, but then to level off. And we’re expecting overall economic growth to be positive but not outstanding.”

The robust housing market of recent years has boosted housing prices significantly, Crowe said. “We don’t expect to see this rise in prices to continue unabated. We’re not talking about a decline in housing prices, nationally. But we do expect to see a significant slowing in the rate of housing-price appreciation.

“New home prices are a very large determinant of all housing prices. Producing more housing will continue to be expensive, and that will affect all housing prices,” Crowe said.

In addition to higher interest rates, several components of housing production are driving up the cost of housing, Crowe said, and a surprising number of them are coming from the government:

Lawrence Yun, a senior economist with the National Association of Realtors® (NAR), noted that potential home buyers face significant regional differences in affordability that affect their chances of purchasing a home.

“If you are a home owner in a high-cost coastal region, then you are lucky to be enjoying significant increases in home equity,” Yun said. “If you live in one of the expensive coastal markets and you are not a home owner, it will be difficult to become a home owner.”

Restrictive growth policies are a big contributor to high housing prices in high-cost areas, Yun said. “Home builders will tell you it is very difficult to build a home in San Francisco. If you aren’t building homes in San Francisco, then home prices there can only go up.”

Frances Martinez Myers, chairman of the National Association of Hispanic Real Estate Professionals (NAHREP), said the Latino market is large and will get much larger, noting that current projections anticipate that by the year 2050, 25% of the American population will be Hispanic.

American companies should take note of various cultural factors in the way they relate to the Hispanic market, she said. “A Latino family is the perfect customer for life. “If you treat them well, they’ll keep coming back, and they’ll bring family and friends.”

Martinez Myers listed several factors that prevent some Hispanic households from buying a home:

On the positive side of what’s happening in the country today, HUD Secretary Alphonso Jackson told the symposium that housing “can make a difference in the quality of life of people in this country” and the federal government is moving decisively to help families realize their aspiration of becoming home owners.

“All you have to do is believe,” Jackson said. “It might be madness to live with a dream, but it is insanity to live without one.”

“This is a good time to be a home owner in this country,” Jackson added. “Many people have seen the value of their homes rise. They have tapped their home equity to improve their homes, or to send a child to college.”

Jackson noted the success of the Bush Administration initiative to increase minority homeownership rates. “Four years ago, President Bush challenged us to create 5.5 million home owners by 2010. We have created 2.6 million new minority home owners in this country.

“Today, for the first time in our nation’s history, the homeownership rate for minority households is above 50%,” he said.

“President Bush and I know that the role of government is not to create wealth and opportunity. It is to create the conditions in which the private sector can do it,” Jackson said.

Jackson made clear that one of his highest priorities is working with Congress on legislation to modernize the Federal Housing Administration. “There is a clear reason for updating the FHA — because we don’t want people priced out of homeownership and we don’t want people forced into the sub-prime market,” he said.

The proposed reforms include allowing lower downpayments then are allowed under the current FHA program, and raising the FHA mortgage limit to address those places, like California, where home prices have gotten so high that almost no home mortgages are eligible under the FHA program.

Jackson concluded with an appeal for compassion: “We come into this world with nothing. We go out of this world with nothing. All that matters is how we treat people while we are here.”

“Communities where homeownership is high are more vital,” said Cara Heiden, a division president for national consumer and institutional lending for Wells Fargo Home Mortgage. “Families take care of their asset. They make sacrifices to preserve it,” she said.

For more information, e-mail Blake Smith at NAHB, or call him at 800-368-5242 x8583.

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Wisconsin Law Puts Needed Limits on Residential Impact Fees

Builders and developers in Wisconsin advocating reform of impact fees in the state scored a swift victory on Tuesday, May 30 when Democratic Gov. Jim Doyle signed Senate Bill 681 (Wisconsin Act 477) into law — just seven weeks after the bill was introduced.

“Over time, this legislation will help control the cost of new homes because it will lower the cost of developing a lot,” said Bill Wendle, executive vice president of the Wisconsin Builders Association. “It will be most helpful to first-time buyers, especially low- and moderate-income families, because it will make it easier for them to buy that first home and enjoy the benefits of homeownership.”

The new law aims to limit a recent surge in the imposition of impact fees on residential development by no longer allowing localities to use them to finance “other recreational facilities” and “other transportation facilities.” Public works and athletic fields are the only recreational facilities that can now be supported by the fees, and building roads is the only transportation-related activity allowed.

Another recently passed bill allows impact fees to go unused for no more than seven years. “If they truly need an impact fee to build a park, then they should be able to build the park in seven years,” said Wendle.

The new impact fee measure will help builders and consumers in a number of ways, Wendle said:

“One of the issues that the new legislation addressed is accountability on the part of municipal governments that collect these fees,” said Frank Madden, president of the Wisconsin Builders Association and a home builder in the Milwaukee metro area. “One of the requirements is that there has to be a reporting to the public about how these fees are used.”

It also shifts the point at which impact fees can be collected, Madden said. Under the new legislation, the fees will be collected at the time a building permit is issued.

“Let’s say it takes several years before the developer begins selling lots,” Madden continued. “But the purpose behind impact fees is to cover the cost of infrastructure needs of new home owners coming into the community. It makes no sense to require the developer to finance the cost of infrastructure several years before that infrastructure is needed.

“Now, the money will not be collected until you have a home buyer who has selected a lot and is ready to build a home,” Madden said. “This also makes the buyer more aware of the fees. Impact fees should be very visible to the new member of the community — the person who is buying that lot and building a home.

“If you bury the impact fees in the development costs, then it’s out of sight and out of mind for consumers,” Madden said. “But this legislation makes these fees much more visible to home buyers, so the home buyers know what they are paying to buy a new home in the community.”

Reform of current impact fee laws in Wisconsin brings much needed change in municipalities and communities where upwards of $10,000 in impact fees per house can be charged. Wisconsin Act 477 seeks to protect residents from not only an increase in impact fees but also the use, and sometimes abuse, of impact fee funds in their communities.

The Wisconsin Builders Association and the Metropolitan Builders Association of Greater Milwaukee — two associations that have been in court over abuses where fees were collected for one purpose but then were used for another — agree that impact fees should be spent for the benefit of the people who pay them.

Madden also noted that the new legislation renders moot a Wisconsin court decision that allowed a municipality to collect a fee for one purpose and then use it for another. “This legislation tightens up the use of impact fees so a fee can only be used for the purpose for which it was collected,” he said.

For more information, e-mail Blake Smith at NAHB, or call him at 800-368-5242 x8583.

Is Easy Money Going Down the Drain?

Investment pros are watching the Federal Reserve closely these days to see how far the central bankers will go in draining away some of the easy money that has made investors’ lives comfortable for the past several years. If they keep mopping up the excess liquid cash they had helped pour into the markets when deflation loomed as a possibility during the bear market of 2000-2002, the days of speculation in such investments as once-hot Florida condos could be coming to a swift end. “My brother-in-law is no longer flipping condos in Miami, wrote Bank of America market strategist Joseph Quinlan in a report to clients. “His credit line has been shut down by the banks. My neighbor’s plans for a new kitchen are on hold — turns out he made a wrong leveraged bet on commodities.” At the same time, higher interest rates are forcing people to cut back on the use of new mortgages to finance spending and investment, says Jason Trennert, chief investment strategist at New York research and brokerage firm Strategy & Investment. However, not everyone is convinced that all of the money for speculative investment is about to disappear; Chairman Ben Bernanke has indicated that the Fed is looking for a way to pause its current tightening regimen. (www.post-gazette.como)
Pittsburgh Post-Gazette; (6/5/06); E. S. Browning and Justin Lahart, Wall Street Journal

By the Tank: Gas Prices Change How Agents Sell and Where Buyers Look

Higher gasoline prices and traffic congestion in the Washington, D.C. housing market are having an impact on where people are looking to buy and making Realtors® and purchasers more judicious about jumping into their cars to visit open houses, previewing properties on the Internet instead, according to David Howell, executive vice president of McEnearney Associates. Expensive gasoline could also affect the area’s real estate values, according to Stephen Fuller, director of the Center for Regional Analysis at George Mason University, pushing down prices in more remote neighborhoods and having a beneficial impact in closer-in locations that also have good amenities and schools. Higher energy prices combined with higher interest rates are also helping push some would-be buyers out of the market who are finding it’s all they can do to juggle the expenses they already have without taking on a mortgage. Nicolas Retsinas, director of Harvard University’s Joint Center for Housing Studies, said he doesn’t believe that gas prices will reverse a century-old pattern of suburbanization, “but it may slow as people become more aware of the cost of transportation as part of their housing cost. People will think twice before they go farther out.” (www.washingtonpost.com)
Washington Post (6/10/06); Kirstin Downey

Real-Estate Slowdown Causes Condo Conversion Aversion

As double-digit housing-price appreciation cools in many markets, rental apartments that once looked ripe for conversion into more lucrative condominiums don’t look as attractive as they did six months ago and are returning to the rental market. The reversions are only a small percentage of the units that were converted into condos in recent years, but a trend is emerging as developers stuck with slow-selling condo units struggle to recoup part of their investment and as tenants complain about being caught in the middle when their building swings from apartments to condos and back again. In condo conversion-crazed south Florida, eight converted complexes with 2,156 units have reverted to rentals in Broward and Palm Beach counties, according to Jack McCabe, chief executive of McCabe Research & Consulting in Deerfield Beach. That compares with about 62,904 conversions to condos in the area since 2004. He expects the trend to spill over into San Diego, Washington, D.C., Las Vegas and Phoenix — all areas that experienced among the sharpest increases in home prices over the past few years. (www.realestatejournal.com)
RealEstateJournal.com (6/8/06); Kemba J. Dunham, Wall Street Journal Online

Helping Cities Lure More ‘Ruppies’

Kyle Ezell, author of a guide, “Retire Downtown: The Lifestyle Destination for Active Retirees and Empty Nesters,” thinks that more Americans would live downtown if they knew how and has founded a consulting firm, Get Urban America, to help people overcome their fear of the unknown when it comes to residing in downtown neighborhoods. “Most downtown developers concentrate on their granite countertops and stainless-steel appliances,” he said. “I come with an urban-living symposium.” With the release of his book, Ezell will be hosting a series of parties around the country this fall to promote the “ruppie” (retired urban people) lifestyle. “Ruppies are different from yuppies, because they aren’t fixated on material things,” he said. “They want to help, to be part of the community and be creative and keep revitalized.” At these social gatherings, “people who have been scared to death of urban environments can talk to people who are into it already,” he said. “The ruppies are going to tell their stories here, how their lives have changed.” (www.chicagotribune.com)
Chicago Tribune (6/8/06); Mary Umberger

Now Mortgages Worry Regulators

Within weeks, regulators led by the Federal Reserve and the Comptroller of the Currency are expected to issue new guidelines for mortgage lenders that could reduce the number of interest-only and payment-option loans being offered. In some parts of the country, the share of buyers using those loans has soared from the single digits two years ago to more than 50% in 2005, and there has been concern that too few borrowers understand the risks and know how these loans work. Some mortgage securities industry experts estimate that up to 70% of payment-option borrowers go with a minimum payment that is even lower than an interest-only payment, causing negative amortization. Borrowers are often allowed to increase their original loan balance by 10%-25% before they are required to start paying down their principal with significantly higher monthly payments. A study by the Consumer Federation of America finds that lenders are not strictly reserving these loans for high-income, high-credit-score applicants, which could be a source of problems in an economic squeeze. (www.washingtonpost.com)
Washington Post (6/10/06); Kenneth R. Harney

Remodeling? Don’t Forget the Ceiling

According to Remodeling magazine’s 2005 “Cost vs. Value” study, 60% of home owners with unfinished basements say they are likely to finish the room in the next five years, which can add significant value to their house, and the most ignored aspect of remodeling that area is the ceiling. NAHB reports that 98% of homes feature plain white gypsum drywall ceilings, but there is a widening range of decorative ceiling products on the market and they are relatively easy for do-it-yourselfers to install. One option comes from Armstrong Building Products, which is a member of the National Council of the Housing Industry. The company’s ceiling tile systems come in either Raised Panel or new Single Raised Panel ceilings. The line features 24-inch square panels that can be removed for easy access to concealed utilities. They are fire-retardant and add a seamless, unified decorative element to suspended ceilings. For the finishing touch, Armstrong also offers its WoodHaven line of wood-like ceiling planks and Tin Look, a line of ceiling tiles replicating the look of real tin. (www.hometownannapolis.com)
Annapolis Capital (6/9/06); Home Improvement Time

New Illegal Alien Enforcement Regulations Proposed

The Department of Homeland Security (DHS) on June 9 announced it was proposing two new federal regulations aimed at improving worksite enforcement against illegal aliens, preventing the use of fraudulent Social Security numbers and assisting employers in verifying the employment eligibility of workers.

“These new regulations will give U.S. businesses the necessary tools to increase the likelihood that they are employing workers consistent with our laws,” said Homeland Security Secretary Michael Chertoff. “They also help us to identify and prosecute employers who are blatantly abusing our immigration system.”

As characterized by DHS, the first proposal to improve employment verification would permit U.S. businesses to digitize their I-9 employment forms, which are used to verify eligibility to work in the United States.

According to DHS, employers who have expressed frustration with being required to keep paper forms would benefit by switching to a computerized system because electronic forms are less likely to contain errors and can be searched more easily, which is important for verification, quality assurance and inspection purposes.

The second proposal is designed to provide guidance to employers and improve their ability to ensure that they are not employing aliens who are not authorized to work in the U.S.

The rule would set forth guidance for U.S. businesses when handling "no-match" letters from the Social Security Administration concerning submitted employee Social Security numbers or from DHS concerning documents submitted by employees during the I-9 process. It would also provide safe-harbor procedures for employers who perform due-diligence, to ensure that they are not found in violation of their legal obligation.

According to a news release issued by DHS, “if followed in good faith, these procedures would provide certainty that DHS will not find, based on a receipt of a ‘no-match’ letter, the employer in violation of their legal obligations.”

These proposed regulations are part of a larger DHS initiative intended to strengthen the border and enhance interior enforcement. These regulations are only a first step in what will likely prove to be a series of changes proposed by the department.

The proposed regulations are now subject to a 60-day public comment period, although the I-9 regulation will become effective on an interim basis as soon as it is published.

House Bill Strikes a Balance on Storm Water Rules

Legislation introduced on June 8 by Rep. John Duncan (R-Tenn.) and 18 bipartisan cosponsors would update and improve Environmental Protection Agency (EPA) storm water permit and enforcement policies that have needlessly harmed housing affordability, according to NAHB.

“Current storm water permitting requirements and regulations are duplicative and burdensome, adding anywhere from $1,400 to $4,500 to the cost of every lot,” said NAHB President David Pressly. “The legislation takes into account the differences between residential construction activity and other industries. By taking a more balanced and reasonable approach to storm water management and enforcement, the measure would streamline the permit process, improve compliance and enhance environmental protection.”

H.R. 5558, the “Stormwater Enforcement and Permitting Act,” contains a number of provisions that would protect the environment without needlessly driving up housing costs. The bill would:

At a time when housing affordability is becoming a national issue, and duplicative and burdensome storm water regulations are pushing up the cost of housing and pricing a growing number of families out of the market for homeownership, the time has come to update and improve these requirements, Pressly said. A more consistent and sensible regulatory approach would better protect America’s rivers and streams without unduly increasing housing costs, he added.

“Home builders are committed to protecting the environment and enhancing the communities in which they build and live,” said Pressly. “H.R. 5558 would successfully eliminate duplicative storm water requirements and improve environmental protection while increasing housing affordability.”

To read the legislation, click here and enter H.R. 5558 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.

‘Storm Water Permitting: A Guide for Builders and Developers’ Available at BuilderBooks.com

Senators Fail to Open Debate on Estate Tax Repeal

The Senate on June 8 fell three votes shy of the 60 needed to consider and vote on legislation that would permanently repeal the estate tax.

While this represents a significant setback for proponents seeking to overturn what they call the “death tax,” Senate Majority Leader Bill Frist (R-Tenn.) has pledged to resurrect the issue later this year.

Before consideration of H.R. 8, the “Death Tax Repeal Permanency Act of 2005,” could even begin, legislators had to clear a parliamentary maneuver by invoking cloture, which requires the support of 60 senators for opening debate.

Because of the importance of this issue to home builders, NAHB designated the cloture vote on H.R. 8 as a “key vote” and sent a letter to every senator urging them to support the motion and to allow a debate on scuttling the estate tax to take place, regardless of their position on the issue.

In the end, the Senate voted 57-41 in favor of the motion to limit debate. (See how your Senator voted).

The legislation, which was approved by the House last April on a 272-162 vote, would make permanent the 2010 repeal of the estate tax put in place by the “Economic Growth and Tax Relief Reconciliation Act of 2001” (EGTRRA), the first of the Administration's tax cut bills.

EGTRRA gradually phases out the estate tax until it is fully repealed in 2010. However, without permanent repeal or some type of reform, the tax will come roaring back in 2011 to its pre-2001 level — a 55% tax rate on amounts exceeding a $1 million exemption.

Under current law, this year there is a minimum tax rate of 46% on the amount that exceeds a $2 million exemption.

Senator Frist could seek another vote on the issue by attempting to forge a bipartisan compromise that would fall short of outright repeal but significantly scale back the tax.

While several proposals have been floated, the one receiving the most attention was put forth by Sen. Jon Kyl (R-Ariz.). His plan would allow individuals to exempt the first $5 million of their estate from taxes ($10 million per couple) and levy a tax of 15% on amounts between $5 million and $30 million and 30% above $30 million.

NAHB is monitoring these negotiations closely and continues to press for full repeal of the estate tax.

To read the legislation, click here and enter H.R. 8 in the box at the middle of the page.

For more information, e-mail Greg Brown at NAHB, or call him at 800-368-5242 x8421.

Fund Provides Aid on No-Growth, Inclusionary Zoning

No growth, inclusionary zoning and housing accessibility are among the issues on which home builders associations received financial assistance from the NAHB State and Local Issues Fund during last month’s spring board meeting in Washington, D.C.

The fund provides support to HBAs that are involved with legislative, regulatory or ballot issues that have national significance or concern a common industry problem whose resolution could set a precedent.

Applications for the funding are reviewed three times a year, in conjunction with the NAHB board meetings, by the State and Local Government Affairs Committee. The deadline for applications that will be reviewed at the fall meeting in Salt Lake City is Aug. 10.

For information on the fund, click here. Or e-mail Gerry Keegan at NAHB, or call him at 800-368-5242 x8326.

‘Inclusionary Zoning for Affordable Housing’ Available at BuilderBooks.com

“Inclusionary Zoning for Affordable Housing,” available through BuilderBooks.com, describes best practices and techniques for creating an effective inclusionary zoning program based on the experiences of industry experts; evaluations of state, regional, and local programs; and case studies of 15 communities across the nation.

Builder’s Property Rights Fight a 14-Year Nightmare

The federal courts have abdicated their responsibility to protect property owners, so Congress must enact legislation to ensure that liberties safeguarded by the takings clause in the Constitution can be defended in the federal courts, a Minnesota home builder told the House Judiciary Subcommittee on the Constitution on June 8.

“Passage of the Private Property Rights Implementation Act of 2006 (H.R. 4772) is absolutely essential to restore the fundamental private property rights that have been a bulwark of our democracy since the nation’s founders enacted the Bill of Rights,” said Frank Kottschade, a builder and developer from Rochester, Minn.

Kottschade is president of North American Realty, Inc., a small development and real estate brokerage company. Since it was founded 34 years ago, his company has provided more than 1,400 homes for Minnesotans across the economic spectrum, including single-family houses, rental apartments, seniors housing, mobile homes and affordable townhouses.

Kottschade recounted a true story of government abuse. When he applied for approval to construct 104 townhomes on a property he purchased in Rochester in 1992, as allowed under the city’s zoning code, the city planning department made a number of unreasonable demands, including that he create a man-made lake on the property, which ran counter to rules set forth by the Minnesota Department of Natural Resources. Other demands were equally egregious.

After years of enduring the city’s stalling tactics and unreasonable contingencies, Kottschade sued the city in the U.S. District Court for the District of Minnesota. As is typical in property rights cases, the federal court dismissed his case, finding that he was required to first litigate in state court because of a unique requirement in constitutional law. Ironically, in its opinion dismissing his appeal, the Eighth Circuit clearly recognized that claimants such as Kottschade, who are required to seek a remedy in state court, are “altogether denied a federal forum for what is undoubtedly a federal right.”

The U.S. Supreme Court, which hears only a small fraction of the cases filed, later declined to hear Kottschade’s appeal.

But in 2003, while he was waiting to learn if the U.S. Supreme Court would accept his case, the Minnesota Department of Transportation filed formal condemnation proceedings against Kottschade’s property in state court under its eminent domain powers and took title to all 28 acres, including the 16.4 acres he had sought to develop.

The state valued the confiscated land at about $875,000, or roughly 10 cents on the dollar of its actual market value, noting that Rochester’s development limitations had depressed what the property was worth.

Now, the city has asked Kottschade to enter into a “development agreement” under which he would be required to give to the city some of the “just compensation” he might receive from the state, on the grounds that if the proposed townhomes had been built he would have had to dedicate part of his land for a right-of-way.

“Assuming I receive money from the state to compensate me for the value of my land in the eminent domain proceedings — which has been lowballed because the city imposed excessive conditions that reduced the land’s development potential — the city wants me to pay it some of those compensation dollars because it would have required me to dedicate that land anyway — even though the dedication it demanded is excessive, extortionary, lacks proportionality, violates Fifth Amendment standards and escapes federal court review,” Kottschade said.

Kottschade pointed to his 14-year nightmare as a glaring example of why federal legislation is needed to provide citizens with access to federal courts in property rights cases.

“Takings law, in all its dimensions, is notoriously chaotic,” Kottschade said. “The Supreme Court itself has issued takings decisions that are difficult, if not impossible, to accept. With lack of coherence and no guidance from the high court, rampant confusion in the lower federal courts has been the predictable result. The time is ripe for Congress to clean up the ripeness mess.”

Kottschade pointed out to legislators that the state litigation requirement voids the Fifth and Fourteenth Amendment protections for property owners.

“I note with irony,” Kottschade said, “that on the Web site for the U.S. federal courts, www.uscourts.gov, it reads that ‘the federal courts often are called the guardians of the Constitution because their rulings protect rights and liberties guaranteed by the Constitution.’ Unfortunately, I know this is not true, from my own personal experience.”

To read the legislation, click here and enter H.R. 4772 in the box at the center of the page.

Builder’s Tip: A Free Caulk-Finishing Tool That Works

My favorite caulk-finishing tool isn’t my finger. I didn’t pay for it. And I don't end up with gobs of caulk stuck to rags at the end of a job.

What is it? As shown in the accompanying drawing, I reworked a spent plastic caulk tube and turned it into a custom-made finishing tool that does the job. Here’s how I did it:

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.

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.

Budgeting: The Basis for Profitable Endings

There is a common saying that, “Failing to plan is planning to fail.” It is truer than you may want to believe.

Successful business planning involves making an intelligent guess of what the end of the year will look like. Every successful year starts with that end in mind.

That said, let’s go through the possible steps in creating a budget that has legs, predicts a pricing model, forces decisions based on financial impact as well as production impact, and can be tracked to keep score month by month.

Start with the owner’s compensation ― what you would like to make for the year, or at the very least, what you need to make. Your personal needs and goals will drive how much money has to satisfy owner’s compensation and benefits.

This is essential to proper planning. All goals and desires will have a financial impact, and you need to bring those costs to the company to help in making them realistic.

A plan to increase sales can be made merely by letting inflation take hold. But a plan to “increase residential remodeling sales revenues by 5% compounded over the next three years by increasing prices and without adding staff” is a realistic goal.

The latter plan has a time frame and is specific, action-oriented, measurable and, with proper planning, attainable. Only with a goal like this in mind can a working budget be established.

Think of your budget as an opportunity to anticipate your best year ever, while having a plan in place for adjustments if the financial picture sours.

With a sound budget, if the year is going better than planned, you can make it stellar by implementing the programs, purchases, marketing, hiring, salary and other pieces of your business plan that you planned for when business is going well.

Conversely, if the year is going poorly, you already have a written list of the programs, expenses, layoffs and capital purchases to cut back. With a predictable budget cycle, you already have made the hard decisions on paper outside of the emotionally charged climate of actual cutbacks.

To judge whether you are having a good year, a year better than last or your best year ever, measure both volume and gross profit margin percent — two gauges that can predict the year’s-end outcome of your labor accurately.

With IRS Section 179 depreciation write-offs, it is easy to play the tax-and-profit game on capital purchases right up until you actually have to pay your taxes. Other possible tax scenarios that need to play out before year’s end include: selling for a loss or gain; larger pension contributions, or none at all; not sending out bills; and collecting checks.

For more information, go to the NAHB Web site for my free, step-by-step budget planning tool. It includes five steps that will help you plan and budget with a profitable end in mind.

Alan Hanbury, Jr., CGR, CAPS, a member of NAHB’s Business Management and Information Technology committee, is the president and CEO of the House of Hanbury in Newington, Conn. He is a frequent speaker at the Remodeling Show and JLC Live residential construction trade show. He also is a columnist with Professional Remodeler magazine and an instructor for The NAHB University of Housing designation programs.

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.

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

To subscribe, visit www.nahb.org/BoB on the Members Only side of the NAHB Web site.

NAHB’s Technology Solutions Directory — an easy-to-use directory that enables builders, remodelers, contractors and other industry professionals to find information on software and IT solutions and services for their businesses — is now online. The directory is sponsored by the Business Management & Information Technology Committee.

Software and technology solutions providers interested in being listed can sign up for:

The Technology Solutions Directory is solely for educational and informational purposes. Nothing in the directory should be construed as policy, an endorsement, warranty or guaranty by the National Association of Home Builders of the listed software, IT service or the software/IT vendor. The National Association of Home Builders expressly disclaims any responsibility for any damages arising from the use, application or reliance on any information contained in this directory.

Age-Targeting Marketing Can Put Builders at Risk

Builders who are considering developing a seniors housing community should think twice about how they market it. They could run the risk of age targeting.

“You can’t discriminate based on familial status, which is families with children ages 18 and under,” said Eric A. Berg, a partner with the law firm of DLA Piper Rudnick Gray Cary US LLP in Chicago. “The law is clear in that regard.”

Builders and developers can build and market age-qualified communities that meet federal Fair Housing Act and Housing for Older Persons Act (HOPA) requirements. But Berg said builders who age-target communities that don’t meet those requirements could run afoul of the federal Fair Housing Act if they market based on familial status and should avoid this type of discriminatory practice altogether.

Age-targeted communities are allowed under the law if the housing is intended for, and solely occupied by, persons 62 years or older. Or, for the 50+ crowd, federal law allows for an age-restricted community if the community is intended and operated for occupancy by persons 55 and older, with at least 80% of the units occupied by at least one person who is 55 years of age or older.

Berg said age-targeted communities that do not meet those requirements are not protected and that marketing for these communities cannot discourage families with younger members from moving in.

While the law is clear on print media — applications, flyers, brochures, deeds, signs, banners, posters and billboards — Berg said the law remains fuzzy on Internet marketing. “Internet marketing is still relatively new, and it takes case law a few years to catch up,” he said.

He predicted that age-targeting could become a sticky issue for builders; much like mold and accessibility has been in recent years. “There isn’t a lot of case law out there, but that doesn’t mean it won’t happen,” said Berg, who noted that many cases involving age-targeting likely are settled out of court. “This has the potential to gain momentum.”

But Berg emphasized that builders may avoid expensive lawsuits by adhering to the Fair Housing Act. The safest bet for builders who want to serve the 55+ market is to build age-restricted communities, which are protected by law.

Berg discussed age-targeting and his handout, “Age Targeting: A Risky Plan,” at the 50+ Housing Council’s Advocacy, Legislative and Rental Seniors Housing Committee meeting at NAHB's spring board meeting.

For more information, see Eric Berg’s handout for a review of the federal Fair Housing Act on age-targeting. Or e-mail Jeff Jenkins of the 50+ Housing Council, or call him at 800-368-5242 x8292, or Mary Lynn Pickel of Legal Affairs, x8485.

The "Fair Housing Pocket Guide" is available to 50+ Housing Council members at www.nahb.org/50plus in the Resources section.

This article is intended for educational and informational purposes only. Nothing contained in this article should be considered as the rendering of legal advice, and readers are responsible for obtaining advice from their own legal counsel on matters related to any applicable federal or state law, regulation or case mentioned herein.

“Boomers on the Horizon,” 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.

Mark your calendars to attend the 50+ Housing Symposium in Denver on May 30-June 1, 2007. The conference will include property tours, educational sessions on the latest 50+ issues and networking opportunities.

Clubhouses Moving Over for Active Adult Retail

The traditional clubhouse is on its way out as a marketing strategy for selling active adult housing, and a “casual, cozy and convenient” retail district providing products and services targeted to the aging baby boomer is on its way in, Rick Abelson, of William Hezmalhalch Architects, told NAHB’s “Building for Boomers and Beyond” housing symposium earlier this spring in Phoenix.

Bringing the retail and residential worlds together in a way that supports “how active adults live in their daily lives,” Abelson said, “just feels right.” His company has created a brand — Active Adult Retail® — as a prototype for what will grab buyers in age-targeted, age-restricted or aging-in-place communities, and the clubhouse as it is used today is not on the agenda.

“With its unprogrammed activity rooms, token retail, high operating costs and nonexistent revenue,” Abelson said, today’s clubhouse “no longer leverages new home marketing strategies. The upgraded version offers more amenities, requires more staff, generates insignificant revenue and takes up to 14 years to show a return.”

Abelson noted that 10,000 boomers a day are now hitting the age of 60 and after retiring, many are working and up to 80%, according to a Merrill Lynch New Retirement Survey conducted last year, are self employed. “They want the permanence, routine and security of everyday home life, the tools to fulfill work life and the respite, play and indulgence of traditional retirement, and they want to merge the resort and residential lifestyle,” according to Abelson.

Of the many things that buyers are looking for in adult communities, retail and restaurants on-site or nearby are the hardest to find.

“Property owners can put retail in tomorrow,” Abelson said, but “retailers need to understand the brand and how it relates to active adults”; they are looking for retail that is value-based, convenient and provides a psychological lift. The retail area should also provide a place for hanging out and socializing, and to that end he recommended making services deliveries from the front and not the back of stores.

“Shopping now is very disconnected,” he said. “Each shop only has one thing you need and there is a lot of wasted time.” The challenge for the developer is to “cherry pick the services and products that active adults need and position it for the community.”

While the clubhouse can be transformed to serve this purpose, Abelson has his sights on a retail village on 11-19 acres, about the size of a conventional strip center. A minimum population base is needed to support the retail center, he added, and developers should be looking for sites on the edges of existing adult communities.

Brokers are of key importance, he said: “the leasing guy wants to bring you Lowe’s for 200,000 square feet,” but what the broker should be doing is trying to get a successful mix. Depending upon what else is already in the existing neighborhood, a good mix might be 40% retail, 30% food and entertainment and 30% health, finance and education, he said.

“Rethink how parking lots work,” Abelson said. For a start, they need to be broken up and shaded, and alternative lighting needs to be used.

Confidence in Rental Apartment Market Soars

With occupancy and rental rates on the rise, the confidence of multifamily builders in the rental apartment market soared to a new high in this year’s first quarter, according to the latest NAHB/Fannie Mae Multifamily Housing Market Index (MMI).

On the flip side, builders were less enthusiastic about prospects for condominiums, which are in the midst of a cooldown.

The component of the MMI that tracks current demand saw both moderately priced (Class B) and lower-rent apartments (Class C) reaching their highest levels ever in the first quarter, with moderately priced units topping the index at 71.4, up from 60.6 at the same time last year and about 30 points higher than the last quarter of 2002, when the index was started.

Luxury rental apartments (Class A) gained 1.6 points to reach 61.6 in the first quarter, up slightly from 60.0 a year earlier.

"The rental market is very good right now," noted Leonard Wood, an apartment and condo builder from Atlanta and chairman of NAHB's Multifamily Leadership Board. "Over the past three years, there have been thousands of rental units converted and sold as condos and, at the same time, few new rental apartments were being built. This leaves us with a supply-constrained market while demand is growing."

According to NAHB Chief Economist David Seiders, the slowdown in the condo sector is due to serious affordability problems as well as a pullout by the investors who drove the market to unsustainable heights last year. "The changing supply-demand balance in the condo segment means that this component of the multifamily sector is slowing to a more sustainable level," Seiders said.

The MMI component that gauges the supply of market-rate rental apartments dropped to 54.6 during the first quarter of 2006, down from 57.2 at the same time last year.

With supply tightening and demand on the rise, the rent component of the index reached a record high of 73.1, up from 61.7 at the same time last year and almost 20 points higher than three years ago.

Meanwhile, the index tracking condo supply dipped sharply in the first quarter, falling to 37.0 from 66.9 at the same time last year. The index tracking builders' expectations for condo starts over the next six months also dropped, from 54.0 in the first quarter of 2005 to 46.0 during the same period of this year.

Indexes tracking builder expectations for all classes of rental apartments all moved higher — and all were above 50, the level at which the number of positive responses is about equal to the number of negatives.

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

The forcecast, available by subscription only, provides the latest information on the condo boom, tax credit/subsidized units, market rentals and more. Data and figures are provided in downloadable Excel tables. Reports are in a PDF format.

Mark your calendars to attend the Pillars of the Industry Conference and Awards Gala on April 11-13, 2007 in New Orleans. The conference will include the latest information on multifamily development, financing and building.

Drug Testing When Skilled Labor Is Scarce: My Opinion

Even though skilled labor is getting more and more difficult to find, I don’t believe we as an industry should lower our standards, particularly regarding substance abuse policies and drug testing, just to fill positions.

I recently tried to hire two skilled workers in two days, but in both cases, adhering to our company’s substance abuse policy cost us. We had to let go of the first employee when his drug test came back positive. The other took our application, didn’t show up for the drug test and eventually called to say that he “found another job.”

These were two guys that I believed could do the job. But I don’t believe we can compromise when it is convenient to do so, or when we are so short of — or desperate for — skilled labor that we’re almost willing to hire anybody that comes through the door.

There are those in the industry who are of the, “If it’s not on my time…” mindset where employees can do whatever leisure activities they want to as long as its not in the workplace. If they don’t see it and it doesn’t affect work, they believe, it doesn’t matter.

But does that make substance (and alcohol) abuse okay? And what kind of a message does this send to the other people who work for you (because they probably have an idea what's going on after hours)?

If everyone in your company knows that you look the other way concerning the laws governing substance abuse, how much respect can you expect them to have for you, other laws or your clientele?

Who’s to say that a coworker, seeing that this is the prevailing attitude in the workplace, may decide for himself that it’s now okay to have a little drink at lunch or to smoke a little during a break (and we’re not talking about Marlboros, here), or that it's even okay to pilfer a little from the job site?

I can’t decide for you, but ultimately, I think the answer comes down to your own values and how much of your character you carry into your business.

If sales and volume come before ethics, morality and citizenship, then so be it. That’s who you are, what you stand for and, no doubt, you probably can sleep well at night.

It is indeed a tough time to find qualified employees. But I believe tough conditions really tell you — and those around you — what you’re made of, what what you stand for and what your values are.

If you don’t work for it, I don’t believe you deserve to reap the benefits. Decide who you are, regardless of the specific situation you’re in, and commit to being that person.

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

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

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

The NAHB University of Housing offers CAPS, CGR, CGB and a variety of other professional designation programs and business management courses that set builders and remodelers apart from the competition.

To learn more about NAHB’s designation programs, visit www.nahb.org/designations. For a complete list of all current education offerings, click here.

Safety Month Tips Prevent Workplace Stumbles and Falls

Following a few practical tips can help prevent the slips, trips and falls that happen in every workplace, according to the National Safety Council, which is promoting safety information this June in celebration of National Safety Month.

Workers can watch their step on the job by following these pointers, which are taken from the council’s 1993 publication, “Preventing Slips and Falls”:

For information on NAHB resources on construction safety and health, 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.

Web Site Provides OSHA Compliance Information

A wealth of construction worker safety information is available on the Occupational Safety and Health Administration’s Web site, and good places to start tracking things down are the site index and search function.

Another good starting point is the residential construction page, a collaborative effort between NAHB and OSHA that includes the "Jobsite Safety Handbook" for home builders and links to information relevant to the residential construction industry.

An alphabetical site index listing the key tools on the site — including eTools, Safety and Health Topics pages and other resources — can be found at the top of the OSHA home page and most other OSHA Web pages. For example, if you’re looking for information on complying with OSHA’s fall protection standard, scroll down to links to fall protection and from there you can link to material specifically related to the construction industry.

Also, by using OSHA’s recently enhanced search function, you can search the entire site or selected potions, such as OSHA standards or fact sheets.

Here are some other OSHA Web pages and tools that may be helpful for small businesses:

If you have questions after completing your Web search, there are several ways that you can contact OSHA:

For an official OSHA response, you’ll need to submit your question in writing to: U.S. Department of Labor, Occupational Safety and Health Administration, 200 Constitution Ave., NW, Washington D.C. 20210.

For information on NAHB resources on construction safety and health, e-mail Rob Matuga at NAHB, or call him at 800-368-5242 x8507.

Learn More About Residential Concrete With Free Brochure

A free NAHB brochure featuring the advantages of residential concrete is available at www.nahb.org/concrete.

A new, free brochure featuring the advantages of residential concrete, “At Home With Concrete: A Guide to Residential Concrete,” is available to builders, contractors and home buyers interested in the growing popularity of residential concrete construction.

Once confined to foundations, driveways and swimming pools, concrete now accounts for 16% of all above-grade residential walls ― up from 2% in 1993.

The full-color, 20-page brochure, created by NAHB’s Concrete Home Building Council (CHBC), one of the Building Systems Councils (BSC), provides an overview of residential concrete, including interior and exterior applications and popular above-grade wall systems.

“At Home With Concrete: A Guide to Residential Concrete,” also highlights the advantages of working with concrete including:

“We have seen explosive growth in the use of concrete in residential building over the past few years and expect that trend to continue,” said Michael H. Weber, director of the Portland Cement Association and 2006 CHBC president. “This brochure is a great informational primer to help builders and buyers better understand the multiple advantages and design possibilities for using concrete as an above-grade building material.”

To order a free copy of “At Home With Concrete: A Guide to Residential Concrete,” call NAHB’s Building Systems Councils at 800-368-5242 x8576, or visit www.nahb.org/concrete.

“Working With Concrete,” available through BuilderBooks.com, explains everything you need to know about working with concrete — from mix characteristics and formwork options to waterproofing details and repair procedures. The author offers time- and money-saving advice that comes from understanding the subject from all angles.

Registration is open for the 2006 Building Systems Councils 2006 Building Systems Councils SHOWCASE in Miami, Fla., from Nov. 5-8. SHOWCASE is the ultimate resource for the systems-built housing industry, with educational sessions, networking and exhibitors.

Tara Speaks About Why Sales Designations Are Important

Tara Speaks, MIRM, MCSP
Venture Homes

Tara Speaks, MIRM, MCSP, with Venture Homes in Atlanta, is passionate about the benefits of designations and education. And she doesn’t mind telling everyone in the industry she knows about how important designations really are.

Speaks has been a member of the Institute of Residential Marketing since 2004, and in between selling homes and raising a family, she serves as a liaison to new MIRMs, fields questions for the “Ask A MIRM” informational feature on the NAHB Web site and pens columns for Sales + Marketing Ideas magazine.

Nation’s Building News caught her between breaths to ask her about the importance of designations, and in particular, her sales designations. Here is what she had to say:

I started my career in home building at Centex in 2001 and, at that time, upper management encouraged their sales employees to join the National Sales and Marketing Council and take IRM courses. That piqued my interest, and then a coworker and close friend who had taken IRM classes said great things about the courses and recommended them.

Absolutely! Through the classes and the networking, I’ve learned what has worked and not worked in all kinds of situations. The networking added real-life experience to the course materials.

The networking you do in these classes is unparalleled. You meet people in your industry who can provide additional experience and knowledge — and job opportunities. My most recent job came about through my involvement in IRM courses. My employer is a former IRM teacher and educator who is impressed with candidates who are willing to spend their own time to learn ― instead of just relying on workplace training.

Another great benefit, which I’ve found especially in my position now, is that the education courses offered really cover every aspect of the industry. There is something to gain from every course.

For example, my company is considering active adult housing, and because I’ve taken CAPS courses as part of my MCSP designation, I was able to recommend many of the books I used to help them research the opportunities. The CAPS courses helped my company and me.

That’s one example. I think I’ve used a bit of every course in all aspects of my career. It’s helped me to contribute productive and good information.

NBN: Many have said that the case study portion of earning a MIRM designation is the most intimidating part of the MIRM process. Do you agree?

Oh, definitely. A MIRM case study can be a 30-50 page document. The outline itself is probably 10 or 15 pages long, so a lot of people don’t think they have the resources to complete it and answer all the questions.

That’s where local workshops come in handy. Local SMCs (sales and marketing councils) form groups led by people who have completed their MIRM work and who help those working on their case studies.

The case study is very daunting at first. But looking back after having done one, tackling this requirement is easier than you might initially think, especially if you get help from those who have done case studies already. I participated in workshop conference calls, and they were of great benefit. The other participants motivated me to finish. The calls also helped our local get together and help each other.

NBN: As the liaison to new MIRMs, what’s your advice for people who have just received their designation? What’s their next step?

Once I got the designation, I remember thinking, “Now what?” So I encourage new MIRMS to sign up for a committee, or at least partake in a committee’s conference calls, participate and give feedback.

A lot of people don’t know about committees, their local board or that we meet three times a year to discuss education and other beneficial topics. You don’t have to be a board member or an instructor to participate. Just get involved. Your participation is also something worthwhile to put on your resume.

Being on committees isn’t time-consuming, and you don’t have to spend money on travel if you don’t want to, you can do the conference calls. You can also provide feedback for “Ask An Expert,” which requires little time.

NBN: Do people ask you what your designations mean when they see those letters after your name?

Yes. I put my designations on my business card and in my e-mail signature, and people ask. Recently, while talking with one of our lenders, she recognized the MIRM designation and told me she was getting hers, too.

I’ve gotten questions about MIRM from people in my company who aren’t familiar with it. So I think it’s important that people publicize it and put it on their cards.

Because designations are so beneficial to your career. Being involved with the council and taking the courses, you just get so much from them that will benefit your professional life. You learn so much from the instructors, the people you meet in the classes and the classes themselves, and you can apply it all immediately to your work.

For additional cutting-edge sales and marketing information, subscribe to NAHB’s Sales + Marketing Ideas Magazine (www.smimagazine.com).

Click here to learn about membership benefits of the National Sales and Marketing Council and the Institute of Residential Marketing.

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

You also can ask designation holders questions about obtaining a designation, specific courses, case studies and more. "Ask An Expert" is available on the NAHB Web site by clicking here.

Bill Webb, MIRM, shows you how to strengthen your selling game in “Sweet Success in New Home Sales,” available through BuilderBooks.com. This book provides powerful techniques for selling more homes and making more money while enjoying your professional life.

Insider Sales, Marketing Info Available on NAHB Web Site

The NAHB Sales & Marketing Channel is an online new home sales and reference center to help home building sales and marketing professionals expand their knowledge and build their skills.

The reference center, from NAHB’s National Sales and Marketing Council (NSMC), features articles and information from leading professionals on topics ranging from sales, marketing, advertising and branding to merchandising, public relations and sales training.

The channel also includes up-to-the-minute research and survey results as well as expert advice from industry veterans and insiders.

“This enhanced online service provides a straightforward way for members to access organized information under major industry topics,” said Michael Copp, assistant staff vice president of the National Sales and Marketing Council. “It is easy to use and will be continuously updated by council professionals.”

The channel is available free to NSMC members. For NAHB council members, the fee is $45 annually. For non-council members, the fee is $110. (The sales and marketing information and reference channel is only available to NAHB members.)

NSMC members can access the sales and marketing channel and online reference center by clicking here.

NAHB council members can find more information by clicking here. NAHB members who are not members of an NAHB council can find more information by clicking here.

For additional cutting-edge sales and marketing information, subscribe to NAHB’s Sales + Marketing Ideas Magazine (www.smimagazine.com).

Click here to learn about membership benefits of the National Sales and Marketing Council and the Institute of Residential Marketing.

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

You also can ask designation holders questions about obtaining a designation, specific courses, case studies and more. "Ask An Expert" is available on the NAHB Web site by clicking here.

Upcoming Conferences for Builders’ Association Staff

Several upcoming conferences and seminars offer in-depth education, networking and workshops specifically designed for staff of local home builders associations. These include:

For more information on these and other NAHB’s conferences and symposiums, visit www.nahb.org/education.

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.

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.

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.

Want to Know More About Designations? Ask an Expert

"Ask an Expert" allows members to e-mail designation program graduates with questions that will help then earn their CSP, Master CSP, CMP or MIRM designations.

The graduates will field questions and concerns ranging from course content, to the designation process, to how the designation has benefited them.

So, if you're thinking about enrolling in the CSP, Master CSP, CMP or MIRM designation programs or have already started the necessary course work and have questions or concerns, visit “Ask an Expert” on the NAHB Web site.

A variety of designation holders will provide you with guidance and help you navigate the ins and outs of the program.

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.

To take full advantage of the exclusive NAHB members-only resources on www.nahb.org, however, you must log in.

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.

Education Calendar

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

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

To take full advantage of the exclusive NAHB members-only resources on www.nahb.org, however, you must log in.

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.

Arizona Builders Helping to Save Cactus and Owls

Also known as Queen of the Night, cereus is a long, cylindrical tuber that once a year blooms after the sun goes down with a sweet-scented, white and golden flower.

As part of its broader community outreach efforts, SAHBA’s board is helping to finance the program and many of its members are participating in cactus rescues, said the association’s president, Ed Taczanowsky.

Builders are also inviting program volunteers to visit their work sites before grading begins to survey plants. The plants protected under requirements of a local native plant protection ordinance are tagged, and those that will not be preserved in the landscaping are gathered early in the morning to be transplanted to another location.

Fortunately, said Alex Jácome of the SAHBA government affairs staff, most desert plants adjust well to their new surroundings and specimens such as barrel cacti, hedgehogs, bocatilla and other varieties can be removed fairly easily without fear of damaging them. Heavy equipment may be required for larger plants, and that’s when residential construction crews especially come in handy. “We tag them and transport them to a collection site at a local nursery,” he said.

Plants are sold to local home owners and the profits are plowed back into the society’s education and outreach initiative. Since the program began in 1999, nearly 30,000 cacti have been rescued.

SAHBA also participates in other programs geared to helping protected or endangered species recover, Taczanowsky said. Members support the Tucson Wildlife Center and work in a captive breeding program for the endangered masked bobwhite quail.

Two years ago, volunteers from the association began working with Arizona Game & Fish and Wild at Heart, an environmental group, to find homes for displaced burrowing owls. The 10-inch owls sleep and lay their eggs in burrows and holes abandoned by other animals and emerge to hunt small reptiles and insects. With the decline of the prairie dog and other burrowing animals in the area, the owls are losing habitat.

SAHBA member volunteers provide equipment to dig new nesting sites for the owls and, using five-gallon drums and tubing, have built 300 successful burrows so far.

For information on environmental resources available from NAHB, e-mail Calli Schmidt, or call her at 800-368-5242 x8132.

$19-38 Billion in Green Home Building Expected in 2010

Last year saw a 20% increase in the number of green home builders in the U.S., according to the results of a new survey by McGraw Hill Construction and NAHB. The study also indicates that the number is expected to grow by another 30% this year.

After several years of slow but steady growth across the country, green home building — which applies innovative and environmentally sensitive construction techniques and products to reduce energy and water consumption and improve residential comfort and safety — is rapidly moving into the mainstream, according to “Residential Green Building SmartMarket Report.”

The value of the residential green building market is expected to grow from $7.4 billion and 2% of housing starts last year to $19 billion-$38 billion and 5%-10% percent of residential construction activity by 2010, the new report says.

“Green home building is not a fad, but a trend, and one that is increasing at rapid rates,” said Harvey Bernstein, vice president of Industry Analytics and Alliances for McGraw-Hill Construction. “The data we recently collected indicates builders will reach the tipping point by early next year, where more builders will be producing green homes compared to those who are not.”

“With more builders creating green homes, and more consumers buying them, the rest of the industry will follow and increasingly begin to incorporate green features or practices into their homes and home building products,” Bernstein said.

“It’s clear that more and more of our members are incorporating environmentally sensitive and resource-efficient techniques into traditional home building practices,” said NAHB President David Pressly. “It is a natural progression as home builders stay atop market trends.”

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 motivation for their decision to go green.

Only 39% said that the perception of green building as a fad and not something here to stay was a significant roadblock.

For more information on green building resources available from NAHB, e-mail Calli Schmidt, or call her at 800-368-5242 x8132.

Mark your calendars to attend the National Green Building Conference on March 25-27, 2007 in St. Louis. The conference will include property tours of green-built homes, information-rich education sessions and an awards dinner.

DVD Presents Simple Spanish Terms in Roofing

To facilitate better communication with the increasing number of Hispanics who are installing roofs, a new educational video from GAF Materials and CARE (the Center for the Advancement of Roofing Excellence) introduces the most common English and Spanish terms used in roofing.

Headquartered in Wayne, N.J., GAF Materials is the largest roofing and ventilation manufacturer in North America, with annual sales approaching $2 billion, and it is a member of the National Council of the Housing Industry — The Supplier 100 of NAHB.

The company’s new educational DVD, “What’s That Called? 150+ Simple Spanish Terms in Roofing,” introduces each phrase accompanied by a picture on the screen. The screen can then be paused to enable the viewer to repeat it.

Many of the roofing terms in the presentation are not found in traditional dictionaries. The vocabulary is related to such subjects as roof components, tools, materials, courtesies, safety and other important phrases.

Suitable for instruction to both English- and Spanish-speaking audiences, the DVD is being offered for free through GAF Materials Corporation as a public service for roofing contractors.

GAF products include the Weather Stopper® Integrated Roofing System, Timberline® shingles and a comprehensive portfolio of low-slope roofing systems. These products are supported by an extensive national network of GAF factory-certified contractors.

GAF also supports the industry through CARE, whose mission is to help professional contractors and distributors build their businesses through sales and management education, and to provide product and installation training to contractors, distributors, architects, property owners and related industry personnel.

Since its inception, CARE has provided education to more than 50,000 professionals.

This feature is solely for educational and informational purposes. Nothing on this page should be construed as policy, an endorsement, warranty or guaranty by the National Association of Home Builders of the featured product or the product manufacturer. The National Association of Home Builders expressly disclaims any responsibility for any damages arising from the use, application or reliance on any information contained on this page.

NAHB-Produced Programs on HGTV & DIY This Week

The NAHB Production Group produces four weekly television shows on HGTV and DIY for consumers. The following is this week's lineup:

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DVD Presents Simple Spanish Terms in Roofing

NAHB-Produced Programs on HGTV & DIY This Week