Nation's Building News Online: June 26, 2006Print All Articles Text Version |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Home Size Reaches All-Time High in 2005The average size of a new home climbed to a record high last year, according to annual data on new-home characteristics released by the U.S. Census Bureau last month, and in terms of amenities the distance between homes built today and homes built 30 years ago continued to widen. “Between 1975 and 2005, the portion of new homes built with central air conditioning has risen 43%, while the portion of homes built with fewer than two bathrooms has fallen from 41% to just 4%,” noted Jerry Howard, executive vice president and CEO of NAHB. “Meanwhile, the share of newly built homes with four or more bedrooms has risen steadily from 21% three decades ago to just shy of 40% last year.” The statistics, along with NAHB research on several additional trends, provide a snapshot of changing aspects of home design over the past 30 years, including the continued expansion of new-home size through 2005. The average floor area in a newly built home last year reached an all-time high of 2,434 square feet — up from an average 2,349 square feet in 2004 and just 1,645 square feet in 1975. The Northeast had the largest average new-home size for any region last year, at 2,556 square feet. New homes in the Midwest had the smallest square footage, with an average of 2,310 square feet. Vinyl Siding on the Rise The report also revealed important trends in the type of exterior wall material used for newly completed houses. In general, the use of brick and wood exteriors has declined as stucco and vinyl siding have become more popular through the years — with vinyl siding now the most-used wall exterior. Brick exteriors on newly built homes declined from 32% to 20% of the market between 1975 and 2005, while wood exteriors declined from 36% to 7%. Meanwhile, use of stucco as an exterior wall material went from 10% of new homes in 1975 to 22% in 2005 and use of vinyl siding, which was previously not broken out in the Census data, went from 23% of homes in 1992 to 34% in 2005. Vinyl siding is particularly popular in the Northeast, where 83% of newly built homes last year had the material. Despite the data on brick, it is still not hard to find when driving through newly built communities, Howard said. “Brick is still very popular as an exterior material in many areas,” he said, “but primarily because of the high cost of labor, builders have increasingly limited its use to the front of the home. The Census data only reflects the exterior material that’s on more than 50% of a home’s surface area.” Blowing Hot Air The data also show evidence of the increasing popularity of heat pumps versus conventional warm air furnaces, particularly in the South. Overall, warm air furnaces remain the most popular heating systems in the U.S. — accounting for 67% of the new-homes market in 2005, down from 72% of the market back in 1975. The decline in that market appears entirely due to construction practices in the South, where use of warm air furnaces fell from 82% of new homes to 47% over the past 30 years, and where heat pumps now command more than half of the market (53%). An important trend in home design that’s been highlighted by NAHB builder surveys over the years is increasing ceiling height. More than half of all newly built single-family homes in 2004 — 58% — had nine-foot or higher ceilings on the first floor. This was up from an estimated 15% of homes 30 years ago. Garages are another place where home buyers are providing extra space. Census data collected since 1991 indicates that the percentage of homes built with garages for three or more cars has doubled, from 10% in 1991 to 20% in 2005. Meanwhile, NAHB data reveal that garage-door sizes are expanding to accommodate the increasing size of vehicles like SUVs that owners are parking in those spaces. The typical door for a single-car garage bay used to measure about 7 by 9 feet, but the trend is now moving toward 8- by 10-foot garage doors. What has shrunk over the years is lot size, which Census data shows has dropped from a median of about 10,000 square feet in 1990 to 8,500 square feet today. Nevertheless, because of the rising cost of developed lots, said Howard, the share of home price that can be attributed to the lot on which that home is built hasn’t changed — it’s still about 25%. Among important trends revealed in the Census report: Central Air Conditioning
Big Builders Improve Operations and Reap Big ProfitsWhile they credit market fundamentals, land assembly strategies and customer satisfaction for their unmatched financial performance in recent years, the nation’s big home builders have been steadily implementing innovative operating practices that have worked to their advantage by increasing their home building efficiencies, according to a new study by the Joint Center for Housing Studies of Harvard University. Between 1999 and 2004, companies building 500 units or more realized inflation-adjusted revenue growth of 135%, according to “The Evolving Home Building Industry – Implications for Consumers.” In addition, they increased their gross margins on homes sold and net income by about 4.5 percentage points each. Gross margins rose from 19.6% to 24.0% and net income grew from 8.0% to 12.6%. To examine some of the implications of changes in builder operations and the emergence of large national production builders, the Harvard study drew on recent survey results of U.S. home builders conducted with the Harvard Center for Textile and Apparel Research through its Sloan Foundation activities. The research, known as the Harvard Distribution Study, was supported by Masco Corporation, which is a member of the National Council of the Housing Industry — The Supplier 100 of NAHB. The survey focused on builders reporting closings of 500 or more single-family homes in 2004, including “national producers” building 2,500 homes or more a year and “regional” companies building in the 500-2,500 range. The survey respondents accounted for more than 60% of homes constructed by large builders and almost one-quarter of all new single-family homes sold in 2004. When asked to name the single most important reason for their recent financial performance:
The Harvard Distribution Study identified four general practices that larger builders have been using to their advantage:
But the study says that their ability to reduce the share of homes they build on a speculative basis is even more important. Among the builders surveyed, 73% of the homes closed in 2004 were sold before construction began, up from 70% in 1999, and “national builders pre-sold over three-quarters of homes closed in 2004, while regional builders pre-sold about two-thirds.” Impact Fees Illegal, Says Mississippi State Supreme CourtIn a decision that likely will rebound on other Mississippi jurisdictions, the city of Ocean Springs’ impact fee ordinance is an illegal tax, the Supreme Court of Mississippi has ruled. The high court last week affirmed the 2004 state circuit court decision in the impact fee lawsuit filed by the Home Builders Association of Mississippi against Ocean Springs. The Mississippi Supreme Court’s decision should concern cities that charge impact fees without specific authority from the state. “This is a big victory for the hard-working people who provide housing in our state, and it is an even bigger victory for the thousands of Mississippians who have been charged illegal taxes,” said Clay Easterling, president of the home builders association and a builder and remodeler from Gulfport. “As a lifelong resident of the Mississippi Gulf Coast, I can tell you that this decision could not have come at a better time. We don’t need cities collecting illegal taxes from people who have lost everything that they own,” said Easterling. In January 2003, Ocean Springs enacted seven different impact fee ordinances on builders and developers that would have forced them to pay $4,598 per new home, a fee that would be passed on to home buyers in the form of higher prices. The state home builders association immediately filed suit, protesting that the Ocean Springs had neither express or implied legislative authority to craft or impose such an ordinance. The state Supreme Court agreed, saying, “Under the Municipal Planning Statutes...there are no provisions which grant authority to adopt impact fees or other revenue raising mechanisms to implement the City’s Comprehensive Plan...The impact fees constitute a tax because the fees are simply a revenue-raising measure...a tax the municipality has no authority to assess.” “There should be no question in anyone’s mind regarding impact fees after this ruling by the highest court in Mississippi,” said Marty Milstead, executive vice president and CEO of the Mississippi home builders association. “The home builders are calling on all municipalities to immediately stop charging illegal taxes and return the money that they have charged and collected illegally,” said Milstead. Home builders and new home buyers more than pay their way in supporting the economy, Milstead said. For example, developers pay for the roads, parks and other infrastructure in new neighborhoods and then sign it over to the city in which it’s been built. Home builders in Mississippi pay the permit, water and sewer and other fees associated with residential construction along with the thousands of dollars of sales taxes associated with the materials and supplies used to build a new home. “When cities charge impact fees atop the other taxes that home builders pay, it unfairly discriminates against new home buyers and can have a significant effect on housing affordability,” Millstead said. “Our membership is delighted that the courts agree with our stand.” The Home Builders Association of Mississippi represents 4,000 member firms. NAHB provided support to the builders association and this litigation through its Legal Action Fund. For more information, contact Mary Lynn Pickel, NAHB director of Legal Services, or call her at 800-368-5242 x8485. Share Nation's Building News With Your Staff — It's FreeMake your business click. Subscribe your employees and trade partners to Nation's Building News — the free, online e-newspaper of NAHB. Each issue is filled with valuable news and information on every aspect of the home building industry — business and builders tips; the latest materials prices and mortgage and interest rates; new technologies; cutting edge design; state and federal regulations and how they affect the industy; and more. Information your entire company needs to stay ahead of your competitors. Forward this issue to your employees and trade partners and ask them to subscribe. Nation's Building News, it's free to them — invaluable to you. Don't delay, have your employees subscribe today. To subscribe, go to www.nahb.org/nbn. Coastal Builders Are Finding Eager Buyers for Their Fortified HousesAfter two years of horrendous hurricanes, with more catastrophic weather expected, a few dozen developers and contractors along the Southern coasts, from Texas to the Carolinas, have begun to produce a new generation of houses designed to withstand just about anything that nature can throw at them. “We’re building tanks,” said Jason Comer, who is putting up an upscale village in the Florida Panhandle of gleaming white mansions with eight-inch concrete walls and heavy, ridged concrete roofs. Until now, few buyers have been interested in super-strong houses that have often looked more like ugly ducklings than cozy havens. But many of the new homes are proving more appealing. Demand has jumped sharply, and insurance companies are even offering policies at a discount in coastal areas where they are otherwise cutting back on coverage. “People have seen what has happened in Florida, Louisiana and Mississippi and they know that what has happened can happen again,” said Gopal Ahluwalia, the vice president for research for the National Association of Home Builders. (www.nytimes.com)
U.S. Losing Its Middle Class NeighborhoodsMiddle-class neighborhoods, long regarded as incubators for the American dream, are losing ground in cities across the country, shrinking at more than twice the rate of the middle class itself. In their place, poor and rich neighborhoods are both on the rise as cities and suburbs have become increasingly segregated by income, according to a recent Brookings Institute study. It found that as a share of all urban and suburban neighborhoods, middle-income neighborhoods in the nation’s 100 largest metro areas have declined from 58% in 1970 to 41% in 2000. Middle-income neighborhoods — where families earn 80% to 120% of the local median income — have plunged by more than 20% as a share of all neighborhoods in Baltimore, Chicago, Los Angeles and Philadelphia. They are down 10% in the Washington area. As poor and rich neighborhoods proliferate, the share of middle-income neighborhoods in greater Indianapolis, where unemployment is low and the downtown is vibrant, has dropped by 21% since 1970. “It means that if you are not living in one of the well-off areas, you are not going to have access to the same amenities — good schools and a safe environment — that you could find 30 years ago,” said Alan Berube, an urban demographer at Brookings who worked on the report. (www.washingtonpost.com)
Remodeling on the Rise; And It’s the Upper End of the Market Boasting the Biggest IncreasesAs the real estate market slows, more home owners appear to be staying put and adding on. That’s not to say that the remodeling industry is going to take giant leaps any time soon. In fact, the Joint Center for Housing Studies at Harvard University estimates this year’s first-quarter increase in activity at 4.5% over the same period in 2005. It represents spending of $155 billion over 12 months, said Kermit Baker, director of the remodeling-futures program at the center. “Remodeling contractors have reported a slight decline in hours worked by their employees, and more modest growth in their payrolls,” Baker said. “This points to remodeling following home building into a period of slower growth in the months ahead.” Still, home owner equity — $11 trillion of it — is continuing to feed the remodeling market, according to Vince Butler, chairman of the Remodelors® Council of the National Association of Home Builders. (www.philly.com)
As Housing Market Cools Down, Some Buyers Bailing OutAs the U.S. housing market cools, builders say more people are walking away from contracts and from tens of thousands of dollars in deposits. When a housing market is hot and prices increase, cancellations are rare. But if the market is slowing, as it has been this year, builders might need to add incentives and price cuts. People who are buying investment homes are the most likely to bail out, experts said. They reason that it would be better to lose a deposit than to go ahead with an investment that could lose value. “I have seen people literally walk away from $125,000 deposits rather than go forward with the closing because the value of a home identical to their own was being sold by the builder for $100,000 less,” said Alexandria, Va. Lawyer James Brincefield, Jr., who is preparing litigation for buyers who want to get their deposits back. Gopal Ahluwalia, director of research for the National Association of Home Builders, said his group’s surveys show cancellation rates increasing nationwide, but not as much as others have estimated. (http://seattletimes.nwsource.com)
Be Selective in Home RenovationsBefore you renovate your home in order to reap the reward of a higher selling price, you should know that not all renovations are equal. In fact, some won’t do more than make a home owner happy. In a This Old House article, “Remodeling Returns,” writer Carol Vogel warns sellers about the renovations that help boost sales prices and those that don’t. Kitchens and baths rank the highest, said Kermit Baker of the Joint Center for Housing Studies at Harvard University. Of course, these rooms are often the most expensive to renovate, but they may pay for themselves in a sale. Adding rooms is also a good bet, especially a family room or master bedroom suite. Swimming pools rarely return their cost, and home offices don’t garner a lot of sympathy. (www.detnews.com)
A Room of His Own; Men Want Their Own Space, and They’re Pulling Out the StopsThere was a time when Virginia Woolf’s “A Room of One’s Own” resonated with women. But that was before houses morphed into mini-mansions and women got not only a room of their own, but a house of their own to generally decorate as they pleased. Now it’s the man’s turn to covet a room of his own, and for an increasing number of men, the “man’s room” is a cut above the garage where Tim Allen liked to hang out in the sitcom “Home Improvement.” “Men have always wanted a know-around place where they can spill things and tromp around,” said Joanne Carroll, publisher of Connecticut Builder magazine. But today, these places are “getting more luxurious, just like everything else.” She has seen a hunt room with custom cabinets for rifles and wall space for the heads of trophy animals. Still another man has his own meditation room. One Woodbury resident had a “wine cave” modeled after a dimly lighted wine cave that dates from the 13th century built in his basement. Custom builder Eric Strachan understands the desire for a man’s room. He has outfitted his own garage to look like a 1950s Texaco station — with a Texaco gas pump, two race cars and whitewashed walls. (www.courant.com)
Copping Copper: Thieves Are Stripping Valuable Pipes and Wiring From HomesDallas home builder Jeff Dworkin has seen his share of job site thefts. But when thieves snatched the copper coolant lines for air conditioning at one of his homes under construction, he realized that he would have to take extra steps to guard his projects. “They actually had to clime into the attic and cut the supply line and pull it through the house,” Dworkin said. With prices for copper building materials near a record, home builders are sometimes paying twice. First they have to come up with the extra money to buy copper wiring and plumbing materials. Then they have to pay again if thieves cart off the copper fixtures. (www.dallasnews.com)
Energy Costs Will Shift Buyer Priorities in New HomesThe American Homeowners Foundation (AHF) predicts that new home buyer priorities will shift dramatically over the next two years. AHF believes that home buyers will increasingly prefer a slightly smaller but more energy-efficient home. “The combination of rapidly increasing energy costs, increasing mortgage rates and higher home prices will undermine the ‘McMansion’ trend that has continued for the past several decades,” said AHF President Bruce Hahn. Energy efficiency goals and recent tax incentives will drive more consumers to become more interested in Energy Star® homes, AHF believes (www.americanhomeowners.org)
Financial Incentives Can Spur Interest in Abandoned HomesProviding incentives for people to buy or rehabilitate properties in conditions they might not consider otherwise is among the many approaches that the nation’s mayors can pursue to restore deteriorating parts of their cities, according to a new publication, “Mayors’ Resource Guide on Vacant and Abandoned Properties,” by the U.S. Conference of Mayors Housing Task Force, the National Vacant Properties Campaign and the Fannie Mae Foundation. “While abandoned properties are a problem, they also represent an opportunity for neighborhood revitalization and community redevelopment,” according to the publication. “By reusing abandoned properties strategically, cities and towns can improve neighborhoods, build new markets and enhance their quality of life.” The publication notes that abandoned properties have become most common in Rustbelt cities such as Detroit and Buffalo, N.Y., but also plague small towns like Lima, Ohio and Waterloo, Iowa, and can even pose problems in such central cities of the Sunbelt as Houston or Las Vegas when older neighborhoods are left behind. Preventing abandonment in the first place is the best strategy for grappling with the problem, the publication notes. “The cost of keeping a property in use is often far less than the cost of restoring it to productive use,” the report says. “Moreover, the cost to the community of an abandoned property begins almost the moment that it is abandoned. While not all abandonment can be prevented, effective local actions — helping owners maintain their properties and using code enforcement, nuisance abatement and receivership when owners are unwilling to do so voluntarily — can significantly reduce the number of lost properties.” When using incentives to help revitalize housing in downtrodden areas, the report notes that the incentives “should be targeted, calibrated to the strength of the neighborhood’s market and carefully aimed at those investments — particularly rehabilitation of vacant properties — that enhance neighborhoods and increase the value of surrounding properties, but where the cost of the improvement potentially exceeds current market value.” The tax incentives can come in many different forms, ranging from tax abatements to credits to below-market interest rate loans. However, “it is critical not just to offer incentives but also to motivate buyers to buy and rehabilitate properties that they would not have bought and rehabilitated without the incentives.” Cited as an example of a program that works, Richmond, Va.’s Urban Pioneer Incentive Program in the city’s Jackson-Ward neighborhood offers $35,000 matching loans to families who rehabilitate houses as owner-occupants. If the family is still in the house after seven years, the loan is forgiven. “The city must create an environment in which those individuals will see the opportunity to rehabilitate these properties as a desirable personal choice,” the publication emphasizes. Attend the 2006 State & Local Government Affairs Conference Plan to attend the 2006 State and Local Government Affairs Conference, Nov. 9-11, in New Orleans. Register today and join home builders association staff and builders to learn about the hottest housing issues. For more information, click here. Senate FHA Bill Would Boost Homeownership OpportunitiesSenator Jim Talent (R-Mo.) on June 19 introduced legislation that would update and modernize the Federal Housing Administration's single-family mortgage insurance programs and help spur housing opportunities for America’s working families. S. 3535, the “Expanding American Homeownership Act,” has the strong support of NAHB and would increase the FHA’s flexiblity to mold its mortgage insurance programs to help first-time home buyers, minorities and low- and moderate-income families to obtain the necessary financing to purchase a home. NAHB submitted written testimony in support of the measure at a June 20 hearing before the Senate Subcommittee on Housing and Transportation. The written statement noted that FHA’s current loan limit structure, downpayment requirements and mortgage insurance premium scales seriously constrain its ability to deliver the range of mortgage products that are needed for the agency to fulfill its mission. Co-sponsored by Senators Mel Martinez (R-Fla.), Johnny Isakson (R-Ga.) and Saxby Chambliss (R-Ga.), S. 3535 contains several provisions supported by NAHB. It would:
NAHB Executive Vice President and CEO Jerry Howard testified in support of H.R. 5121 before the House Financial Services Committee’s Housing and Community Opportunity Subcommittee in early April. He noted that these provisions would give FHA a greater ability to respond to the needs of borrowers and enable more working families to become home owners. To view the legislation, click here and type the bill number in the center screen box. For more information, e-mail Scott Meyer at NAHB, or call him at 800-368-5242 x8144. Attend the 2006 State & Local Government Affairs Conference Plan to attend the 2006 State and Local Government Affairs Conference, Nov. 9-11, in New Orleans. Register today and join home builders association staff and builders to learn about the hottest housing issues. For more information, click here.
Builders Launch Grassroots Push in Support of Storm Water BillWith duplicative and burdensome storm water regulations pushing up the cost of housing by as much as $4,500 a lot, the nation’s home builders have launched a grassroots effort to urge members of Congress to support H.R. 5558, the “Stormwater Enforcement and Permitting Act.” “H.R. 5558 would reduce the regulatory burden placed on home builders, simplify compliance and provide a more consistent and sensible regulatory approach that better protects America’s rivers and streams,” said NAHB President David Pressly. Introduced on June 8 by Rep. John Duncan (R-Tenn.) and 16 bipartisan co-sponsors, the legislation would update and improve the Environmental Protection Agency’s (EPA) storm water permit and enforcement policies, which can add $1,400 to $4,500 to the cost of every lot. The bill, which now has 30 co-sponsors, takes into account the differences between residential construction and other types of construction. “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,” said Pressly. Contact Your Members of Congress Voters troubled over how current storm water regulations unduly increase housing costs while doing little to improve water quality are encouraged to contact their members of Congress and ask them to support H.R. 5558 by adding their name as a co-sponsor to the bill. It is particularly important to urge members of the House Transportation and Infrastructure Committee to co-sponsor the legislation. To view a full list of the committee members and those who have co-sponsored the bill, click here. To voice your opinion to Capitol Hill lawmakers, call the U.S. Capitol Switchboard at 202-224-3121 and then ask for your member of Congress. Or send a letter to your federal lawmakers asking them to support H.R. 5558 by logging on to www.capitolconnect.com/nahb. To view a one-page summary of the bill, click here. To read the legislation, click here and enter H.R. 5558 in the box at the upper left. For more information, e-mail Jason Lynn at NAHB, or call him at 800-368-5242 x8307. Attend the 2006 State & Local Government Affairs Conference Plan to attend the 2006 State and Local Government Affairs Conference, Nov. 9-11, in New Orleans. Register today and join home builders association staff and builders to learn about the hottest housing issues. For more information, click here. House Cuts Estate Taxes, Bill Awaits Uncertain Fate in SenateBy a solid bipartisan vote of 269-156, the House last week approved estate tax relief legislation that would permanently raise the exemption threshold on all estates and reduce rates for taxable assets. Prior to the vote, NAHB sent a letter to every House member urging them to support H.R. 5638, the “Permanent Estate Tax Relief Act of 2006.” Because of the importance of this issue to the housing industry, NAHB designated passage of the bill as a “key vote” for lawmakers. The measure, which would take effect on Jan. 1, 2010, would exempt the first $5 million of an individual’s estate from taxes. The exemption would be $10 million for couples and would be indexed for inflation. Estates valued between $10 million and $25 million would be taxed at the capital-gains rate, which is now 15% but is scheduled to rise to 20% in 2011. Estates worth more than $25 million would be taxed at twice the capital gains rate, or 30%, under current law. Last year, the House passed H.R. 8, the “Death Tax Repeal Permanency Act of 2005," which would completely abolish the estate tax. While NAHB strongly supports congressional efforts to completely and permanently eliminate the estate tax, this goal has been consistently thwarted in the Senate. Earlier this month, the Senate fell three votes short on a procedural maneuver that would have allowed the chamber to act on full repeal. Following the vote, Majority Leader Bill Frist (R-Tenn.) conceded that there was not enough support in the Senate to pass full repeal of the estate tax this year. Under current law, the estate tax, also known as the “death tax” to its detractors, would gradually phase out until it is fully repealed in 2010. However, without permanent repeal or some type of reform, the tax will roar back to life in 2011 to its pre-2001 level — a 55% tax rate on amounts exceeding a $1 million exemption. This year there is a minimum tax rate of 46% on the amount that exceeds a $2 million exemption. H.R. 5638 is a compromise designed to elicit enough Senate support to win passage while also providing significant estate tax relief. The measure contains a 60% deduction for qualified capital gains on timber, which is designed to attract the support of Democratic senators in Washington and Arkansas. “H.R. 5638 would protect more small businesses from the estate tax while lowering estate tax liability overall for many others,” said NAHB President David Pressly. “The legislation also brings more certainty and simplicity to estate tax planning, easing the administrative and financial burdens on modest, family-owned businesses. We urge the Senate to act quickly to approve this bill.” At this point, it is uncertain whether there is enough support in the Senate to approve H.R. 5638. Frist has indicated he would like to take the measure to the Senate floor before the July 4 congressional recess if he can secure enough votes for passage. NAHB is now working with Senate staff to build support for this compromise bill. To view the legislation, click here and type the bill number in the center screen box. For more information, e-mail Greg Brown at NAHB, or call him at 800-368-5242 x8421. Attend the 2006 State & Local Government Affairs Conference Plan to attend the 2006 State and Local Government Affairs Conference, Nov. 9-11, in New Orleans. Register today and join home builders association staff and builders to learn about the hottest housing issues. For more information, click here. Study Redefines How We Talk About U.S. CitiesWith the lines between city and suburb and even rural areas increasingly blurred, the National League of Cities, in conjunction with the Metropolitan Institute at Virginia Tech, recently analyzed nearly 1,000 U.S. cities to come up with classifications that will be helpful to policy makers, particularly in their examination of local land use. Re-examing traditional perceptions of city types, “From Meltingpot Cities to Boomtowns: Redefining How We Talk About America’s Cities,” found that today’s cities can be divided into six groups:
Christiana Brennan, co-author of the report said, "There is no longer a 'typical' city, just as there are no helpful one-size-fits-all approaches to the varying issues that cities face. As a result, policy decisions or programs based on distinctions such as central city, suburb and rural, and metropolitan and non-metropolitan labels are not as useful to decision-makers and others attempting to understand and ameliorate local challenges." For example, both Huntington Beach, Calif. and Henderson, Nev. are similarly sized suburban cities, with populations around 190,000. "But when you begin to look more closely at them, you can see how very different they are," Brennan said. "Huntington Beach, with its older, wealthy population is a Gold Coast city. Henderson is a residential Boomtown located at the edge of one of the fastest growing metropolitan areas in the country. They may be similar in size, but their service mix, goals and the people they serve are not. Local officials in each of these cities would probably take a very different approach to governing and to providing services and programs for their citizens," Brennan said. There are 19,000 cities in the U.S. today. For more information on the study, e-mail Carlos Gutierrez at NAHB, or call him at 800-368-5242 x8242. Attend the 2006 State & Local Government Affairs Conference Plan to attend the 2006 State and Local Government Affairs Conference, Nov. 9-11, in New Orleans. Register today and join home builders association staff and builders to learn about the hottest housing issues. For more information, click here. Kansas Governor Applauded for Her Support of Home Building
Sebelius, who recently received national attention when Time magazine named her one of the five best governors in the nation, was feted at a luncheon at the National Housing Center as part of the Democratic Governors Association’s Governor’s Series Luncheon. Jerry Howard, NAHB’s executive vice president and CEO, thanked Sebelius on behalf of Kansas builders for signing notice and opportunity to repair legislation in 2003. Sebelius praised the home building industry for its contributions to the economy and the country. She also spoke about the importance of attracting and keeping businesses in rural states like her own. During the past legislative session, Sebelius signed legislation repealing property taxes on newly-purchased business machinery and equipment and on business property costing less than $1,500. She also approved legislation that prohibits cities from levying excise taxes on new developments, legislation supported by the Kansas Building Industry Association. At the luncheon, Sebelius discussed the challenges of being a Democratic governor in a state where Republicans outnumber Democrats two-to-one. She noted her attempts to bridge the gap between the two political parties by including Republicans in her cabinet and choosing a former state GOP party chair as her running mate in the upcoming election. Through spending cuts, fee increases and some borrowing, Sebelius was able to overcome a more than $1.1 billion deficit and balance Kansas’ budget in her first year in office without raising taxes or cutting funding for education. Because of her bipartisanship and leadership, and her ability to win in a heavily Republican state, many political pundits have touted her as a vice-presidential contender in the 2008 national elections. Attend the 2006 State & Local Government Affairs Conference Plan to attend the 2006 State and Local Government Affairs Conference, Nov. 9-11, in New Orleans. Register today and join home builders association staff and builders to learn about the hottest housing issues. For more information, click here. Supreme Court´s Decision on Wetlands Only Goes So FarLast week’s 5-4 Supreme Court ruling reining in the Army Corps of Engineers’ jurisdiction over wetlands and its costly and confusing permitting process bodes well for builders and affordable housing advocates who have been fighting for more practical jurisdictional boundaries of the Clean Water Act. But the court’s decision gives no indication how or when the Corps’ regulatory process should be improved. In the decision, the Supreme Court remanded the combined Rapanos v. United States and Carabell v. U.S. Army Corps of Engineers cases back to the U.S. 6th Circuit Court, saying that the Corps’ jurisdiction should be limited. However, the divergence of Justices’ opinions in the decision sets no clear boundaries for the Corps and, instead, leaves that to future court cases and new Corps regulations to accomplish. “Builders are clearly better off when navigating the regulatory process with this decision in place than they were last week,” said R. Randy Lee, chairman of NAHB’s legal affairs committee and a developer from Staten Island, N.Y. But because the justices could not agree on how or by how much to limit the Corp’s role in the permitting process, home builders’ optimism should be tempered, Lee added. As Chief Justice John Roberts said of the decision, “It is unfortunate that no opinion commands a majority of the Court on precisely how to read Congress’ limits on the reach of the Clean Water Act. Lower courts and regulated entities will now have to feel their way on a case-by-case basis.” Writing the plurality opinion on behalf of Justices Clarence Thomas and Samuel Alito and Chief Justice Roberts, Justice Antonin Scalia said, “The average applicant for an individual permit spends 788 days and $271,596 in completing the process, and the average applicant for a nationwide permit spends 313 days and $28,915 — not counting costs of mitigation or design changes. “The burden of federal regulation on those who would deposit fill material in locations denominated ‘waters of the United States’ is not trivial,” he wrote. Scalia’s sometimes scathing comments — he referred to the Corps as an “enlightened despot” that has “stretched the term ‘waters of the United States’ beyond parody” ― centered on the regulatory creep that home builders experience in the course of their work. “The enforcement proceedings against Mr. Rapanos are a small part of the immense expansion of federal regulation of land use that has occurred under the Clean Water Act — without any change in the governing statute — during the past five Presidential administrations,” Scalia said. The Justice also chided Congress for ducking the question of jurisdiction. The courts should not have to decide what constitutes a water of the United States, Scalia said, but “neither, however, should it be answered by appointed officers of the Corps of Engineers in contradiction of congressional direction…Even if the term ‘the waters of the United States’ were ambiguous as applied to channels that sometimes host ephemeral flows of water (which it is not), we would expect a clearer statement from Congress to authorize an agency theory of jurisdiction that presses the envelope of constitutional validity.” In a dissenting opinion, Justice Stephen Breyer said the Corps should step up as well. “In the absence of updated regulations, courts will have to make ad hoc determinations that run the risk of transforming scientific questions into matters of law. That is not the system Congress intended. Hence I believe that today’s opinions, taken together, call for the Army Corps of Engineers to write new regulations, and speedily so.” Justice Anthony Kennedy agreed with Scalia, Roberts, Thomas and Alito that the decision should be remanded, but not for the same reasons. He cited the question of “significant nexus” in his vote, which resulted in the 5-4 decision. “Five justices have agreed that an intermittent hydrological connection is not enough for the Corps to assert jurisdiction,” said Tom Ward, NAHB assistant staff vice president for litigation. “That certainly puts our members in a better position than they are now when they apply for a permit.” NAHB staff and volunteers will continue to work with Congress and federal regulators and agencies toward a rulemaking and more definitive guidance for home builders, he added. NAHB filed a brief of amicus curiae on behalf of the petitioners in the Rapanos and Carabell wetlands cases in December of 2005, prompted by member pleas to help fight the expensive, time consuming and often duplicative regulatory morass they must slog through to get the appropriate permits to build homes. To read an assessment by R. Randy Lee, chairman of NAHB's legal affairs committee, of the Supreme Court decision and NAHB's long struggle to bring clarity to the Clean Water Act, click here. A Decision Long in Coming and Worth Celebrating
R. Randy Lee, Chair
When did NAHB start to examine the impact of the Clean Water Act? NAHB has been in the Clean Water Act business since the day the act was passed in 1972. Soon after it was passed, our volunteers and staff began to see that the federal Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers weren’t satisfied with the limits that Congress had put on their jurisdiction ― limits that, in fact, NAHB had a hand in negotiating, so we knew that they were dead wrong. Was legal action considered right away? No. In order to have litigation, you first have to have a dispute over the issuance of a storm water or wetlands permit or a violation of the law or regulation. So it took some years after the act took effect for arguments or disputes to turn into lawsuits. However, from the very beginning, NAHB’s regulatory staff worked long and hard to try to make sure that the regulations proposed by the bureaucrats did not exceed the authority granted to them by the Clean Water Act. Unfortunately, it was, and continues to be, an uphill battle. The government believes, under some stretch if its collective imagination, that it is entitled or authorized to regulate potholes in parking lots, drainage ditches and isolated “wetlands” that are miles away from the closest body of water. Some of the more egregious attempts had to do with the continued inclination shown by these government agencies to regulate completely isolated bodies of the water, and I use the term “body” loosely, since they’ve been known to try to regulate farm ponds — more often than not man-made ― and of course in recent years, roadside ditches. And that’s when the association began to look for a more effective fix? Exactly. NAHB jumped in when the Corps went too far and began to hold up entitlements and require permits where they had no jurisdiction. Its jurisdictional and regulatory hook regarding even the smallest patches of wetness is the interstate commerce clause of the U.S. Constitution. The Corps claimed it could regulate upland waters, isolated wetlands and prairie potholes on the theory that they might be used by migratory birds, which of course don’t respect state lines, stopping off for a drink on their way to wherever they go. The legal actions of NAHB members supported by our legal staff have done a lot to rein this in. For instance, in the early 1990s, the U.S. 7th Circuit Court of Appeals heard the two Hoffman Homes cases. In the first case, the court ruled that the EPA had no jurisdiction over isolated waters. Subsequently, in Hoffman Homes II, it found that the water body in question was not a suitable habitat for migratory birds as had been alleged by the EPA. In the late 1990s the 4th Circuit Court of Appeals affirmed the case of Tabb Lakes, Ltd. v. United States, agreeing that the Corps was incorrectly relying on its migratory bird guidance because that guidance was issued without public notice and comment. Finally in 2001, the U.S. Supreme Court made clear in the case involving the Solid Waste Authority of Northern Cook County — the famous SWANCC v. Corps ― that federal agencies could not use the presence of migratory birds as basis to determine that a geographic feature is a “navigable water” under the Clean Water Act. NAHB was involved all of these cases, in one capacity or another. And now we’ve arrived at the Supreme Court’s decision in the Rapanos and Carabell cases. What does this ruling mean to NAHB members, and what kind of impact will it have on home builders and developers? In the very short term, the impact of the decision will not be very great. It will be a long time before we see any changes. The Supreme Court has instructed that new regulations be drafted by the U.S. Army Corps of Engineers, which based on past performance, is sure to be a glacial exercise. Then as is usual, the environmental groups will object strenuously, saying the regulations are too broad, that they don’t appropriately protect the nation’s wetland resources. Of course, NAHB will get right in the fray, continuing to draw attention to how the government continues to go far beyond its legislative mandate as proscribed by the new decision in the Carabell and Rapanos cases. Very often the issue of what the regulations say winds up in litigation, so while all of this is happening, years may go by and meanwhile, the EPA and the Corps will use that opportunity to continue business as usual. But NAHB will be there in their faces all along the way. So you’re saying that home builders won’t see regulatory relief right away. No, not immediately. But that being said, there is no question that every home builder or developer who has an application or a matter pending at EPA or the U.S. Army Corps of Engineers should carry a copy of this decision in their pocket. And they and their land use and engineering professionals should not be afraid to pull it out and demand that during the local permit process, regardless of whether the new regulations are in effect yet, that the reviewers need to follow the law. Based on NAHB’s prior experience and learning in regulatory areas other than those involving wetlands, we have found that our members often get good results by waving copies of court decisions and making threats of litigation — even in this interim stage. A second area where our members will benefit is in those situations where they have wetland litigation pending. It is absolutely clear that any federal trial court judge or appellate panel will have to carefully read the Rapanos and Carabell decision to make sure that whatever the court does is fully within the letter and spirit of that decision. Justice Scalia called the Corps’ interpretations a parody, for goodness’ sake. And Chief Justice Roberts pointed out that now the lower courts will have to “feel their way on a case-by-case basis.” They took the Corps to task because the Corps didn’t do its jobs ― something that NAHB has been saying for years. I believe that the members of the NAHB can do nothing less than to stand up and cheer and take their hats off. And what happens next? The next step in the process is for the U.S. Army Corps of Engineers to follow the lead of the direction of the Supreme Court and get to work on drafting new regulations that stick to the letter of the law as written, not as the Corps has tried to imagine it was over the last 40 years. And frankly, it’s high time. To read details about last week's U.S. Supreme Court decision in the Rapanos and Carabell cases elsewhere in this issue, click here. ‘Storm Water Permitting: A Guide for Builders and Developers’ Available at BuilderBooks.com “Storm Water Permitting: A Guide for Builders and Developers,” available through BuilderBooks.com, provides a starting point for builders and developers to use in locating and understanding storm water permitting requirements. To view or purchase this publication online, click here, or call 800-223-2665. Court Delays Defenders of Wildlife Ruling in ArizonaThe U.S. 9th Circuit Court of Appeals has agreed to a joint request from the federal Environmental Protection Agency (EPA) and NAHB to delay its ruling barring the transfer of the Clean Water Act permitting program from the EPA to Arizona. The ruling gives the EPA time to appeal the court’s ruling to the Supreme Court, an action that NAHB likely will support. At issue is whether Arizona meets the nine standards under Section 402b of the federal Clean Water Act that the EPA uses to determine whether to delegate authority to administer the program from federal to state agencies. If a state agency meets the nine standards and wants the authority to administer permitting programs, EPA must transfer the program. The EPA determined that Arizona did meet those standards and transferred the authority to administer the program to the state, but that determination was challenged by the Defenders of Wildlife, which wanted EPA to continue to administer the program. Defenders of Wildlife brought suit against the EPA, saying that the federal agency had not considered the needs of endangered species when it made its determination to transfer authority to Arizona. The circuit court agreed with the environmental group, a ruling that would force the EPA to again assume responsibility for issuing discharge permits in the state. NAHB joined with EPA to request a delay of the ruling because forcing EPA to issue discharge permits in Arizona could force more delays on home builders. “The EPA at this point is not in a position to issue permits in Arizona, and that could put our members in limbo,” said Tom Ward, assistant staff vice president for litigation at NAHB. “If Congress intended that the delegating process include endangered species concerns, it could have simply added that requirement to the Clean Water Act. But it did not,” Ward added. The decision also has a major impact on affordability for Arizona home buyers. According to the U.S. Fish and Wildlife Service, the time delays from consultations regarding the protected pygmy owl range from five to 18 months which, when added to the cost of onsite mitigation and project modifications, cost a typical development between $1.7 million and $2.7 million. Should EPA decide to take the decision to the Supreme Court, the agency must file by September. U.S. Builders Urge Canada to Reject Bad Lumber DealU.S. home builders on June 19 told Canadian lawmakers that a proposed managed trade softwood lumber agreement would distort the marketplace, harm Canadian companies and workers, and force American consumers to explore the use of alternative materials and look to other nations for a stable and reliable supply of this vital building material. Testifying for NAHB before the House of Commons Standing Committee on International Trade in Ottawa, Barry Rutenberg, a home builder from Gainesville, Fla., urged Parliament to reject the tentative accord that would harm U.S. consumers and Canadian lumber firms. Instead of rushing to complete a fatally flawed settlement, Rutenberg said the Canadians should continue to pursue free lumber trade and a refund of all duties collected, just as they have done in the past through their successful and ongoing legal cases before the North American Free Trade Agreement, the World Trade Organization and the U.S. Court of International Trade. By rushing into a bad deal and abandoning its strong legal claims, Rutenberg said that Ottawa is sending the message that the U.S. lumber coalition’s claims are legitimate and that Canada has been at fault. “We don’t believe this to be true, and we don’t understand why Canada would want to create that impression.” Complex Border Taxes and Quotas The framework would result in a complicated system of border taxes and quotas that would force Canadian lumber producers to fight for a smaller U.S. market share. During the next seven to nine years, the proposed duration of the settlement, NAHB expects the average number of annual housing starts to be about 200,000 lower than in 2005. The outlook is for construction rates similar to 2002 and 2003, when the average lumber price was $308 per 1,000 board feet, despite duties of 27%. The slowdown in home building, enhanced lumber mill efficiency, increased imports from Europe and greater use of engineered wood products should mean lower prices. Under the agreement, lumber prices would be higher than they would be under a free market, but may often fall below the $315 threshold where the most stringent fees and quotas would apply. Pact Could Create Supply Bottlenecks NAHB’s analysis indicates the pact could increase and destabilize prices and lead to bottlenecks as Canadian producers fight for limited market share and to supply shortages as firms delay shipments in anticipation of a change in duties. Since quotas would be tied to total U.S. consumption, which is constantly changing and inaccurately measured, lumber mills would not know whether they could meet supply contracts without exceeding the quotas. “That’s a peculiar notion of stability,” said Rutenberg, responding to proponents of the pact who have argued that it would actually promote supply and price stability. Since the proposed framework provides no incentive or means for Canadian softwood lumber companies to exit from the terms of the agreement, there is little reasonable expectation that a transition to free trade will be permitted. Faced with the prospect of new barriers to imports from Canada and increased volatility in supply and prices, Rutenberg told Canadian lawmakers that NAHB feels obligated to facilitate softwood lumber imports from Europe and the use of alternative materials to protect the interests of American home builders and consumers. Stay the Legal Course Rutenberg emphasized that the best strategy for Canada to achieve free lumber trade and a refund of all duties collected is to see its legal cases to their conclusions. Ottawa has already notched several key legal victories in the NAFTA process — at the World Trade Organization and in the U.S. Court of International Trade — that will ultimately realize these goals. “Finishing the litigation would establish important precedents and make it much more difficult for the U.S. lumber coalition to successfully petition for new duties,” said Rutenberg. “We are very disappointed by the willingness of the Canadian government to sacrifice those gains, jeopardize Canada’s share in the U.S. market and effectively provide a handful of U.S. companies with veto power over provincial forest policies.” In supporting Canada’s strong legal stance, NAHB has worked avidly to convince U.S. lawmakers and the American public that Canadian lumber is not unfairly traded and that barriers to lumber imports hurt U.S. consumers. “Several major newspapers across the U.S. — including the Wall Street Journal, the Los Angeles Times, the Detroit Free Press and the Orlando Sentinel — have published editorials reflecting this view, and more than 100 members of Congress have gone on record in support of the consumer perspective,” said Rutenberg. For more information, e-mail Michael Carliner at NAHB, or call him at 800-368-5242 x8376. Housing Starts Rise in May, But Permits DipTotal housing starts rebounded from a 13-month low to increase 5.0% in May as builders worked down a backlog of unfilled orders under unusually good weather conditions, according the latest Commerce Department figures. But the government also reported that the issuance of new building permits dropped 2.1% for the month, continuing the moderate downslide from the peak last September. “Builders have been drawing down the backlog of unused permits for houses sold earlier,” said NAHB President David Pressly. “Many builders have reported in recent NAHB surveys that they are offering incentives to limit the number of potential cancellations.” “This increase is not inconsistent with an ongoing moderate erosion of housing market activity, a pattern shown by both today’s permit numbers and NAHB’s surveys of single-family home builders,” said NAHB Chief Economist David Seiders. “The builders still are reporting reductions in housing demand, and we expect both housing starts and building permits to lose some ground as 2006 progresses." The pace of construction rose to a seasonally adjusted annual rate of 1.957 million units — 3.8% below the pace of a year ago. Permits dipped to a monthly rate of 1.932 million units — 8.5% lower than the year before. “The rebound in total housing starts for May primarily reflected typical volatility in the multifamily market, and the modest increase in single-family starts largely reflected a buildout of units that had been sold and permitted earlier,” Seiders said. “Strong numbers in the South and West may also have been supported by some rebuilding in the wake of last year’s record-breaking hurricane season.” Single-family housing starts were up 2.1% in May to a pace of 1.586 million units for the month. Multifamily housing construction rose 19.7% for the month to a seasonally adjusted pace of 371,000 units. Three of four regions reported increases in housing starts for the month. Construction of new homes and apartments rose 1.7% in the Northeast, 8.5% in the South and 15.8% in the West. Housing starts were down 15.8% in the Midwest, following a sizeable increase in April. Single-family permits were down 2.1% on a national basis to a pace of 1.466 million units. The pace of multifamily permits also dipped 2.1% to a pace of 466,000 units for the month. Want to Know Your State's Starts Forecast for 2007? Find out in HousingEconomics.com’s State Starts Forecast (sample). The starts forecast includes downloadable Excel tables of total, single-family and multifamily starts by region and state. To learn more, visit www.housingeconomics.com.
Seiders Says, 'Builders Have Not Lost Touch With Demand' on the NAHB Economics Blog NAHB Chief Economist David Seiders says that "builders have not lost touch with demand" 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 on at http://nahbblog.blogs.com and get direct access to Seiders' expert opinions, projections and responses. Then let Seiders know what you think by giving your perspective. New-Home Sales Rise in MaySales of new single-family homes rose 4.6% to a seasonally adjusted, annual rate of 1.23 million units in May from a downwardly revised number in the previous month, according to figures reported by the U.S. Census Department today. “If the sales gain in today’s report holds true, it’s likely due at least partly to the extra efforts that builders are making to attract the many potential buyers who are still out there,” said NAHB President David Pressly. “Many are stepping up incentives or trimming prices to help maintain sales volume.” “That said, the May sales number seems a bit too good to be true, especially in view of the wide confidence intervals around these statistics. Furthermore, the latest results of NAHB’s builder surveys indicate weaker demand for homes coinciding with higher interest rates, deepening affordability issues and a retreat of investors/speculators from the market,” added NAHB Chief Economist David Seiders. “We don’t think the cooling process for housing is over yet, and we wouldn’t be surprised to see a downward revision to May’s numbers as well as some decline in coming months.” Three out of four regions posted gains in the Census figures for new-home sales in May. The South had the strongest gain, 6%, followed by the West’s 5.3% increase and the Midwest’s 2.7% gain. Sales fell nearly 8% in the Northeast. Meanwhile, the inventory of new homes for sale declined slightly in May to 556,000 units, equivalent to a 5.5-month supply at the current sales pace.
Want to Know Your State's Starts Forecast for 2007? Find out in HousingEconomics.com’s State Starts Forecast (sample). The starts forecast includes downloadable Excel tables of total, single-family and multifamily starts by region and state. To learn more, visit www.housingeconomics.com.
Seiders Says, 'Builders Have Not Lost Touch With Demand' on the NAHB Economics Blog NAHB Chief Economist David Seiders says that "builders have not lost touch with demand" 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 on at http://nahbblog.blogs.com and get direct access to Seiders' expert opinions, projections and responses. Then let Seiders know what you think by giving your perspective. Builder's Tip: How to Center Your Ladder LoadAfter getting my new 32-foot aluminum extension ladder home, I struggled to haul it around the yard to complete a painting project. Whether using it as two separate 16-foot sections or as an extension ladder, I found it mighty awkward to carry. Try as I might to estimate the midpoint when lifting it, I always got it wrong. Eventually, after much trial-and-error repositioning of the lifting point, I was able to pick up the ladder without one end digging into the ground. Here’s what I did to solve this problem: I first separated the two sections of ladder and placed each section on a sawhorse, perpendicular to the crossbar. I quickly found the balance points and marked them with a spray-painted fluorescent orange line across the side rails of each section. Now when I pick up either section, I know that I am grabbing it exactly in the middle. Best of all, when the sections are back together, the lines still act to indicate the center. No matter how far the ladder is extended, the lines on the sections are only a few feet apart. It is easy to eyeball the midpoint between the two lines and to grab the ladder at the midpoint every time. — Jim Parker, Littleton, Colo. 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. Enter the BALA Competition — Registration Deadline Is July 15
Builders, interior designers, architects, developers, marketing and real estate professionals, the registration deadline for entries for the 2006 Best in American Living Awards (BALA) is July 15. Entry notebooks are due by July 31. BALA is the foremost residential design competition in the country. The awards program 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, the U.S. Department of Housing and Urban Development (HUD) Secretary's Award for Excellence and others. Special HUD Award for Excellence The HUD Secretary's Award for Excellence recognizes design excellence produces through cooperative public/private efforts that expand homeownership opportunities for underserved families. For details on the HUD category and to download the HUD award’s application, visit www.huduser.org/research/secaward.html. 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 Near:
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 will also 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.
Deadline Nears for Remodeling Hall of Fame EntriesDo you know of someone, living or deceased, who has made a lasting contribution to the remodeling industry? Consider nominating them for the America’s Best National Remodeling Hall of Fame. Categories include:
The deadline for nominations is Wednesday, July 12. For more information, click here. Commercial Builders Awards of Excellence Deadline LoomsThe NAHB National Commercial Builders Council (NCBC) is accepting applications for its 2007 Awards of Excellence program, which recognizes achievements in the national commercial building industry for remodeling and new construction design, market appeal, energy efficiency, building challenges and overall project success. The deadline for entries is Tuesday, July 25. Applications are open to builders, architects, designers, engineers, contractors, developers and building owners for non-residential retail, commercial, institutional, medical, industrial, recreational, entertainment and mixed-use projects completed after Dec. 31, 2003. There are six divisions to enter:
Entrants will receive a one-year subscription to Commercial Builder magazine, a granite recognition award and publicity at the International Builders' Show and in the convention issue of Commercial Builder. Winners will be notified by mail no later than Nov. 1. For more information, visit 2007 Awards of Excellence: Building Excitement on the NAHB Web site or e-mail Nick Lashinsky at NAHB, or call him at 800-368-5242 x8455. Want to Know More About Designations? Ask an ExpertThe NAHB University of Housing recently implemented “Ask an Expert,” a new service on the NAHB Web site for members seeking or earning designations. "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. 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. 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. 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. 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. Exterior Insulated Foundations Need Termite ProtectionA recent Toolbase Technote from the NAHB Research Center provides builders who are using exterior foam insulation for slab-on-grade, crawl-spaces and frost-protected shallow foundations with techniques that can be used to help prevent termite infestations. Although the insulation is not a source of food for the insects, termites can tunnel through it to reach cellulose or the wood structure and they can be difficult to detect, the technical note advises. With an impenetrable exposed surface like concrete, the termites are more likely to build mud tunnels on the exterior of the wall when coming up from the soil to the wood framing members, making them easier to spot. Much of the U.S. is prone to termites, from Florida to Connecticut and all points to the west, and the areas with the heaviest infestations are those where slab-on-grade or crawlspace foundations are typical, the note says. This can sause a dilemma for builders who want to use foam to enhance the thermal performance of their homes. In some areas where there is a very high probability of termite infestation, installing exterior foam plastics can be limited by building codes. Where infestation is more moderate, the decision about how best to protect homes against serious termite damage is initially up to the builder, and after that it is left to the home owner to continue with a long-term program. “Correct installation of the selected system(s), regular inspection and maintenance, and good building details are the best defense against termites and assurance of a long-lived home,” the note says. However, no one approach guarantees that a structure will be termite-proof, and it will best serve as a deterrent or as a method of detecting the presence of termites before they can inflict any real damage. For builders using exterior rigid foam insulation on slabs, termite barriers should be considered to reduce the probability of infestation. Physical barriers impeding the movement of the insects into the structure can include flashings between the foundation and the wood structural elements, waterproof membranes, aggregate mixtures under and around the foundation and stainless steel mesh. Flashings are the most practical physical barriers, the note says, and although they may not prevent termites from finding their way to a home’s wood structural members, they will at least force them to the outside of the home, where their tunnels can be detected. Chemical barriers can also be effective, although they need to be maintained. They work for only about five years at the most. Their primary downside is the environmental impact of the chemicals. Also, replenishing the chemicals is not entirely easy or effective, unless a reticulation system — a piping system to distribute the termicide — has been installed during construction, the note advises. Baiting systems have been found to be quite effective if they are properly installed and maintained, and they are more environmentally friendly because they require only limited amounts of termiticide. The note provides a list of simple construction and site management rules that should be followed to control moisture and termite food supply near the foundation:
View of PowerHouse Shows Advanced Energy Efficiency
The 3,724-square-foot two-story colonial with a full basement and attached garage is typical of many new homes being built in the area, and although it will not attain 100% net-zero annual energy consumption, it is expected to perform about 50% better than a standard home of similar size. The home was built by Bob Ward Companies of Edgewood, Md., and it represents the company’s first use of renewable energy systems in one of its homes. The home combines state-of-the-art energy-efficiency features with solar thermal and photovoltaic technologies. The only exterior features distinguishing the homes from its conventional counterparts are an array of photovoltaic panels and two solar thermal panels on the roof. The photovoltaic system will generate electricity that can either be used in the home directly or fed back to the utility during times when excess power is produced. The solar thermal system will preheat the domestic hot water and in its temperate-climate location is estimated to reduce energy purchased from the utility for water heating by at least 50%. Among the affordable and effective energy enhancements made throughout the home — in its building envelope, space conditioning systems, water heating, lighting and appliances — are:
Gen. Wesley Clark Launches Accessibility Program
Retired Gen. Wesley Clark launched a new International Code Council (ICC) program last month to improve the quality of life for veterans with disabilities. The Ohio home of Vietnam veteran Shelby Bowling is the pilot site for Project H.E.R.O. — Homes Eliminated of Restrictions and Obstacles, bringing together building officials, architects, engineers, businesses and other volunteers to help make the homes of veterans with disabilities accessible. The ICC is organizing state coordinators to replicate the pilot program across the country. “Many injured veterans own homes that are not accessible to someone with a disability,” said Clark, who is chairman of the project. “For a disabled veteran, the key to attaining independence may be an extensive, often expensive, home remodeling project. Unfortunately, some of our nation’s veterans cannot afford to make these necessary modifications. That’s where Project H.E.R.O. and its volunteers can help.” Bowling, an Air Force veteran, has diabetes and must use a motorized scooter to maneuver through his home. His house does not have an accessible entrance and his bedroom and bathroom are on the second floor — limiting his ability to access 50% of the home. The Project H.E.R.O. additions for Bowling’s home include an addition with an accessible entrance, a bedroom and a bathroom. “I’m very thankful for what they are doing for me,” said Bowling. “It has kept me from having to make an immediate decision about how to continue to fight my stairway. I still think it’s kind of unbelievable they have selected me for this. I’m just very, very grateful.” Indiana OSHA Staff Get Insights Into Home Building
The “Building a House” program was developed as part of the NAHB-OSHA Alliance. The May 26 seminar was hosted by the Indiana Builders Association (IBA) for the staff of the Indiana Occupational Safety and Health Division (IOSHA) and the INsafe consultation program. “The seminar was a great opportunity for the association to give federal and state officials a better understanding of the residential construction process,” said Rick Wajda, IBA chief executive officer. “NAHB and Ryland Homes were great partners in this project and we received excellent feedback from the Department of Labor.” Ryland Homes hosted a job site tour as part of the training. The seminar helps OSHA employees:
Classroom instruction for the seminar was provided by Jim Carr, a member of the NAHB Construction Safety and Health Committee and an associate professor in construction management at the University of Arkansas at Little Rock. For more information, e-mail Rob Matuga at NAHB, or call him at 800-368-5242 x8507. Protect Your Workers and Your Profits 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. Personal Protective Equipment Prevents Job-Site Injuries
These pointers are taken from the council’s publication, “PPE Awareness”:
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. Kitchens Not Just for Cooking and Eating Anymore
Electrolux sold more than $16.5 billion worth of kitchen products in more than 150 countries last year, and it is a member of the National Council of the Housing Industry — The Supplier 100 of NAHB. Based on a phone survey of 1,024 American households, the “Electrolux State of the Kitchen Report” found that nine out of 10 respondents are involved in some sort of activity in their kitchen besides cooking — from paying bills and doing homework to practicing musical instruments and working on the computer. In addition, more than two-thirds of adults said they use their kitchen, rather than their living or family rooms, to socialize and entertain guests. Among other survey results:
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
|