Nation's Building News Online: August 14, 2006Print All Articles Text Version |
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Regulators Backing Down From Ditch OversightThe U.S. Army Corps of Engineers has agreed to stop enforcing the so-called Philadelphia Ditch Rule, under which it had asserted jurisdiction to regulate common roadside ditches as "navigable waters." The decision provides further indication that the Corps and the U.S. Environmental Protection Agency are beginning to reassess how builders and developers should be regulated under the Clean Water Act, following the recent Supreme Court decision in the Rapanos and Carabell cases. In New Mexico, the Corps on July 20 withdrew a previous requirement for a Clean Water Act Section 404 wetlands permit it had imposed on Sivage Community Development, which has been planning to build a community on a 354-acre plot near the town of Los Lunas. The Corps told the company that it had reevaluated the information submitted for the permit, which by late June had cost the company $30,000 in consultant fees and delayed starting the project by 10 months. NAHB filed suit in March over the Ditch Rule, arguing that it had been issued without following appropriate administrative rulemaking procedures when the Corps’ Philadelphia regional office told its agents to treat all upland ditches as navigable waters of the United States, triggering their regulation under the act. "We have been fighting for a clear, consistent definition of 'navigable waters' for years, mainly because costs and delays associated with compliance have such a significant effect on housing affordability and often result in environmentally unsound land-use decisions," said NAHB President David Pressly. "It sounds like the federal government is listening, and finally acting, on our repeated requests. This is a big win for housing affordability." The U.S. District Court for the District of Columbia entered an order on Aug. 4 sending the rule back to the agency for reconsideration. According to a Department of Housing and Urban Development study on factors affecting housing affordability, regulatory costs, which include the cost of complying with wetlands rules, can top $40,000 per home. The decision to end Ditch Rule enforcement is significant because it is the first action by the agency on Clean Water Act regulation since the Supreme Court's decision on the Rapanos v. United States and Carabell v. U.S. Army Corps of Engineers cases in June. At that time, the justices urged the Corps to come up with a clearer definition that would provide sensible, uniform federal guidance. "While the majority of justices in the Rapanos and Carabell cases indicated that they want to rein in the Corps' broad interpretation of its regulatory jurisdiction, it's likely that any new guidance or rule will address more than just navigable lakes and bays, rivers and the wetlands next to them," Pressly said. "And that's exactly how it should be. We need to protect these precious resources. "The problem is that the Corps didn't know where to stop, but now there's a clear line drawn in the sand. With today's order, a foundation has been laid for sensible, environmentally sound and consistent guidelines — not just in the Philadelphia region, but all over the country," Pressly said. For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132. Floor Plans: Affordability, Convenience Come to ‘Main Street’
Developed by: Peachtree Homes, Inc. Not too far from downtown Atlanta near the Fulton County line, Peachtree Villages in Jonesboro, Ga. offers affordable two-story town homes with two-, three- and four-bedroom options with features and a “Main Street” look that makes living here convenient. Designed to appeal to and be well within reach of the local workforce, Peachtree Villages, with prices ranging from $110,900 to $121,900, is already home to teachers, day care workers, truck drivers, medical technicians, people who work in retail and others. Peachtree Villages won NAHB's Workforce Housing Award in 2005. White Picket Fences and Friendly Sidewalks The homes feature rear entry alleyways, and some models are offered with optional garages. Out front, the combination of white picket fences, sidewalks, decorative trees and 50-foot sodded front yards help make Peachtree Villages pedestrian- and neighbor-friendly.
Total lawn care is included with the purchase of a Peachtree Village home. A Lawn to Admire, Not to Mow Peachtree Villages was built on the site of a failed commercial venue and features 107 town homes on 17.4 acres. The community is convenient to public transportation and shopping, and very convenient to workforce owners. Total lawn maintenance is included with the purchase price — a definite plus for those who might not have the time to tend their front yards. “We’re very pleased we did this project,” Aguilera said. “We’ve been able to offer homeownership opportunity in this community that might not otherwise be available to these families in Jonesboro and the greater Atlanta area.”
‘Affordable Home Plans’ Available at BuilderBooks.com “Affordable Home Plans,” available through BuilderBooks.com, offers 275 of the most popular, stylish and affordable home designs available. In addition to the home plans, this publication provides practical tips and expert advice to guide the potential home owner through creating interior and exterior accents for the home. To view or purchase this publication, click here, or call 800-223-2665. Florida’s Hurricane Season a Time to Wait for Home Sales RecoveryFlorida’s housing industry appears poised for a return to growth in 2007, possibly as early as the first quarter, but first builders will have to work off a growing inventory in a chilly sales environment and return to a more customer-friendly approach to selling homes in the process, according to market analysts appearing at the Florida Home Builders Association’s (FHBA) Southeast Building Conference (SEBC) in Orlando, Fla. on Aug. 5. Builders are also hoping for a respite during this year’s hurricane season from the major storms that have pounded states in the Gulf Coast for the past couple of years. In addition to destroying or damaging some 750,000 homes in the region last year, the hurricanes have given northerners pause about relocating to traditional retirement areas and have sent home owner insurance costs skyrocketing. Also undermining affordability in Florida are high property taxes and a state homesteading law that limits annual tax hikes to 3%, creating a widening disparity between taxes on existing home owners and new residents and a major financial disincentive for trading up to a more expensive home, or even down, said panelists attending the annual builders’ show. More than 16,000 housing professionals, a record, made their way to the Orange County Convention Center for the Aug. 2-6 SEBC, reported FHBA President Len Tylka. Boca Raton-based Brad Hunter, director of Metrostudy’s South Florida Region, said that his company’s Market Sentiment Survey of builders in Florida and Atlanta for this year’s second quarter indicated significant deterioration in traffic volume, sales conversion rates, traffic quality and contract cancellations. “It’s back to the fundamentals,” he said. “Builders waiting for buyers coming to them are going out of business.” Builders in the poll were also not optimistic about interest rates, Hunter said, with 81% of them expecting to see further increases over the next 12 months. Thirty-eight percent said that an increase of a full percentage point over current mortgage rates would have a significant impact on the industry. To get over the hump and spur sales, builders in the survey indicated that they are reducing prices on their inventory (33%), paying closing costs (14%) and buying down the interest rate (7%), Hunter said. Forty-five percent of the builders said that the average value of their incentives was $15,000 or below, and 28% estimated it was in the $15,000 to $30,000 range. Twenty-eight percent said they expected to see declining land prices, but 39% were projecting some further increases in building materials prices over the next six months. Confusion Among Bottom Feeders Home buying incentives are destabilizing some of Florida’s markets, said consultant Louis Ludwig, of Ludwig & Associates in Boca Raton. “Buyers don’t understand where the bottom of the market will be, and the consumer is confused.” Reducing home prices is generally inadvisable, he said, and financing buy downs, paying closing costs and throwing in features is a more effective way to proceed. The ongoing recovery from the hurricane devastation of 2005 alone guarantees high demand for supplies, materials and labor, Ludwig said. “The cost of homes won’t go down and we have to relay that information to the customers.” The task of changing the mindset of prospective buyers who are sitting on the fence and waiting to see fire-sale prices is a major challenge in the state’s current downturn, which analysts said is now more than a year old. And where sales have weakened the most, a major part of that effort will entail controlling the inventory coming back onto the market from “investors” with contracts on homes they intended to flip for a higher price before they closed on them. Louis also reminded builders that this is a good time to use Realtors® to help step up sales, and they deserve incentives as well. “Realtors® need to be serviced, or they will eliminate you from the list of communities they show,” he said. Big builders in the Tampa area have been providing Realtors® with thousands of dollars in home-closing bonuses, gas cards to encourage home showings and shopping spree points, the St. Petersburg Times reported last month. Commissions have risen from last year’s standard 3% to 5% at Beazer Homes, 6% at Lennar and 10% at Standard Pacific for second closings. A Condo Glut Condominiums are the most susceptible to the state’s housing slowdown, Hunter said, not only because they have been a magnet for speculation but also because the supply is glutted, with 77 active communities in Palm Beach County, 93 in Broward County and 203 in Miami’s Dade County. On the drawing board are an additional 148, 249 and 312 in those counties, respectively, but Hunter was skeptical that many of them would actually be built. A rundown of some of the state’s most populated counties shows a mixed-bag for housing inventories. Establishing 1.5 months as a normal supply for finished vacant homes, Hunter said there is a five-month supply in Martin County, on the northern edge of Palm Beach, but this area has been undersupplied historically and will improve once its inventory is worked off. Palm Beach and Broward counties have both been declining in recent years because vacant land is scarce and builders have had a hard time keeping up with demand. Miami/Dade is improving, with its supply trending down. Collier County (Naples) and Lee County just to the north are both grappling with a surge in finished vacant homes, he said. Nationwide, Hunter said that the $1 trillion in adjustable-rate mortgages that will be reset next year could cause some problems for home owners. For example, on a $300,000 loan going from 4.75% to a new rate of 6.5%, which may be on the conservative side, monthly mortgage payments will increase from $1,565 to $1,896. “Those who bought in 2003 and 2004 can refinance because they have home equity,” he said, but buyers from 2005 “have no equity and will have a tough time getting the bank to refinance them into a lower payment.” Virtually nobody will be buying during the hurricane season, Hunter said, but it is possible that buyers will start returning to the market in December. In the meantime, selling high-impact glass, safe rooms and generators could be a lure for the relatively few buyers out there. Trading on a Good Reputation “Resume old-style selling,” he said, which will mean getting used to selling “10% in pre-construction and not 100%.” Builders who haven’t pulled in their horns, a healthy strategy for those who want to play it safe, should keep an eye out for “deals for land coming up at better prices,” he said. “We are no longer selling a fungible commodity to investors, but a service to end users,” said Geoff Graham, president and founder of Atlanta-based Guild Quality. “The end user is interested in service and experience,” he said, and the builders who will do well in today’s environment are those we are operating a service business and able to trade on a reputation for the quality of their work. “There is a tremendous amount of inventory and buyers have a lot to choose from,” Graham said. Nationally, less than 70% of new home buyers say they would recommend their builder, and in some markets it’s much lower than that. Builders with scores starting in the 85% to 90% range are in a position to excel, he said. Architect Mark Jones, principal, Looney Ricks Kiss, said that hard times require “doing something special and better to get traffic to our product,” with an emphasis on creating a community and “the great place to sell your product.” “Create value for the whole community, not just one house,” Jones advised. “The house doesn’t have to be the most important place on the street.” Restaurants and cafes; a beach, lake or river; a natural preserve, pedestrian walkways, architecture, parks, recreational activities and shopping all make the community better, he said. Giving Buyers What They Want Jones touted the value of surveys to determine how people are living in their homes and what they want, and said that a big focus in new homes should be placed on the kitchen and family room. High-impact glass is a standard feature now that Florida appears to have become a frequent bulls eye for hurricanes, and even in an inland market like Orlando, where there as many wood-framed as masonry homes, “the perception in the market is that masonry is better.” Green building can be another effective approach for grabbing the attention of prospective buyers, the panelists said. People are starting to look more closely at their monthly utility bills, said Ludwig, especially in Florida where the summers are long, hot and humid, and “they will look at lower energy costs as a plus.” But “even without a payback,” most people perceive a green-built home as a healthier place to live, said Edward Del Grande, from HGTV Pro in Atlanta. Adding a few simple features to the home will also yield encouraging results, according to Del Grande. “Don’t look for extravagant add-ons,” he said. Examples of what will turn on buyers include: a radiant heat loop off of the water heater for the bathroom floor, at a cost of under $2,000; a pot filler by the stove in the kitchen; and a sink that can also cook. Share Nation's Building News With Your Staff. It's Free.Make 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. Slim Pickings for Real Estate VulturesHome prices may have to fall further to create the bargains that are being sought by the vultures who have begun to circle the nation’s slowing real estate market. In the meantime, in Manhattan there are so many home buyers looking for bargains that they have been cancelling each other out. Any sign of price weakness attracts them, which is creating competition that keeps prices from decreasing. “Buyers may be negotiating more, but sellers are mostly holding firm,” said Pam Liebman, CEO of the Corcoran Group. “There’s been a drop in sales volume but not in prices.” Jonas Lee, a co-founder of Redbrick Partners, which makes a living by buying residential properties at the right price, says the general slowdown in the market nationally should create some buying opportunities for vultures in some once bubbly markets, such as South Florida, condos in the Washington, D.C. area and California’s Central Valley cities, including Bakersfield, Stockton and Modesto. Lee thinks San Francisco will hold up. “Everyone thinks it is overpriced,” he said. “But it’s a highly constrained market, difficult to build in and very wealthy.” (www.cnnmoney.com)
Are Housing Prices Headed for a Big Fall?Economist Mark Zandi says that the concessions home sellers are making across the country, such as paying closing costs for the buyer, are obscuring a downward trend in prices. “So the effective price is lower and probably already falling, but you don’t see that in the market price,” said Zandi. “I’m expecting 5% to 10% peak-to-trough declines in a third to maybe half of the nation’s markets.” With a rise in mortgage interest rates, the volume of new and existing homes has plunged, and home builders are reporting a sharp drop in demand. Pulte Homes, the second largest U.S. home builder, reported a nearly 30% drop in orders, on top of a rise in unsold homes. Prices have remained relatively steady overall because home owners are holding out for their asking price and hoping to wait out the market downturn. “In the stock market you might get a quick adjustment and then things would start to recover,” said NAHB economist Michael Carliner. “I think the adjustment (in the housing market) is going to be a lengthy process, but it’s also going to be more of a flattening out than a real decline.” Zandi believes credit terms will continue to tighten and there will be rising credit problems with some home buyers. “That’s going to take some time,” said Zandi. “So the real weakness in pricing won’t be felt until this time next year.”
Developers Nix or Delay Condo Projects as Sales Slow, Costs RiseFrom coast to coast, developers are nixing or delaying condominium projects as home sales decelerate, construction costs soar and lenders start to balk at financing units that might not sell. Making matters worse, there is a glut of high-priced condos and too few people can afford them. Projects that have been cancelled include the $40 million Old City 205 in Philadelphia; the $600 million, 825-unit Aqua Blue that counted Michael Jackson as an investor and Ivana Trump’s $700 million, 945-unit tower, both in Las Vegas; and South Florida’s 1390 Brickell Bay and ICE in Miami, Fort Lauderdale’s the Waves Las Olas, and Promenate in Palm Beach County. WCI Communities Inc., a luxury home builder based in Bonita Springs, Fla., said in June that new orders for its high-rise condos fell 84% in the second quarter. The company this year is going forward with only three to five condo projects, down from as many as 15 to 17. Torto Wheaton Research in Boston reported in May that the volume of apartment-to-condo conversions plunged to $334 million from $1.65 billion a year earlier. The all-time high was $4 billion last September. (www.suntimes.com)
Most Expensive Homes in the World 2006For the second year running, Updown Court, a spanking-new palace in England, is at the top of the list of the world’s most expensive homes. It has 103 rooms, five swimming pools and a heated marble driveway. Built on speculation, it doesn’t yet have an owner in residence. Second on the list, Donald Trump’s massive oceanfront mansion in Palm Beach, Fla. lacks chandeliers and other details because nobody has lived there since Trump bought it two years ago and began refurbishing it for the potential new owner. The French Regency-style estate is in the final stages of a massive renovation and will come with a price tag of $125 million. The number of people in the world who can afford to buy these homes is quite limited. The most luxurious residences in the most desirable locations — the Hamptons, the Cote d’Azur, Australia’s Gold Coast or business centers like New York or London — share a shifting international pool of buyers who are increasingly crossing countries and oceans to get the homes they want. Among the 500 most expensive U.S. zip codes for homes are Beverly Hills, 90210, and New Vernon, N.J., 07976. California accounted for half of the zip codes on the list; New York took up 20% and the rest were primarily in Massachusetts, Connecticut, Arizona and Maryland. (www.forbes.com)
More Hispanics in Mid-Valley Pick a New Field: ConstructionA growing number of Hispanic immigrants in Oregon are making the jump from employment in agriculture to construction. The number of Hispanics in the state working in construction jobs was 26,460 in 2002, the most recent data available from the U.S. Bureau of Labor Statistics, but that figure has almost certainly increased since then. “We could use many more,” said Larry Sharp, the vice president of Salem-based Sharp Cor, a home builder. “They’re the most consistent workers. They show up for work every day, work long hours, show a desire to learn, a desire to be productive, and they stay on the job.” NAHB said the number of foreign-born Hispanics in the construction industry has more than doubled in the past two decades. Nationwide, an estimated 2.4 million Hispanics work in construction, according to Labor Statistics. The bureau does not differentiate between Hispanic construction workers who are U.S.-born and those who are foreign-born. However, in Oregon it is estimated that almost eight out of 10 Hispanics are of Mexican descent. (www.statesmanjournal.com)
Wrecking BrawlWith a 77% jump in residential demolition permits last year to 352, Denver has appointed a task force to begin a review of the city’s zoning ordinance for the first time in 50 years. Neighborhood groups have been stopping teardowns through historic-preservation laws, but the process is time-consuming and costly. “We support the true intent of historic preservation, but we don’t support manipulating historic preservation just to prevent change in a community,” said J.J. Martinez, vice president of the Home Builders Association of Metro Denver. And Realtors® and home builders say teardowns are necessary urban renewal to rejuvenate the city and attract new residents, bolstering the tax base and keeping families in cities. NAHB estimates that about 75,000 houses are being razed each year and replaced with bigger homes. (www.denverpost.com)
Days Numbered for Senate to Move on Estate Tax ReliefShortly before leaving Washington for its August recess, the Senate blocked a motion to consider legislation that would provide permanent relief on estate taxes, increase the minimum wage and extend numerous expiring business tax breaks. By a vote of 56-42, lawmakers on Aug. 3 defeated a motion to vote on H.R. 5970, the "Estate Tax and Extension of Tax Relief Act of 2006." Sixty votes were needed to move the measure forward. Although the bill was approved by the House on July 28, Senate Democrats objected to linking a vote on boosting the minimum wage with cutting estate taxes. Senators from both parties expressed an interest in considering certain tax break extensions separately when they return, but the fate of a tax-cut package remains unclear. Prior to the Senate vote, NAHB sent a letter to Senate Majority Leader Bill Frist (R-Tenn.) in support of the bill and advised every senator that the association would consider the effort to move the tax measure forward as a “key vote” in their voting record on housing-related concerns. In a procedural move, Frist changed his vote to “no” so that he would retain his right under Senate rules to bring up the bill again. Key components of the estate tax provisions in H.R. 5970 would:
Senate leaders have indicated that they would like to bring the legislation back to the Senate floor in September, although the limited number of days the Senate will be in session prior to the fall elections makes this an uncertainty. To view the legislation, click here and enter the bill number in the box in the center of the page. For more information, e-mail Greg Brown at NAHB, or call him at 800-368-5242 x8421. Mortgage Holdings a Sticking Point for GSE Reform BillThe Senate adjourned on Aug. 4 for its month-long summer recess without passing S. 190, a bill that would severely curtail the investment portfolios of Fannie Mae and Freddie Mac. Senate Banking Committee Chairman Richard Shelby (R-Ala.), who had hoped to bring the measure to the Senate floor before lawmakers left the nation’s capital, still maintains that there is time to pass comprehensive government sponsored enterprise (GSE)-reform legislation before the fall elections. However, several other senators have expressed skepticism because Shelby has yet to offer a specific compromise to bridge a partisan divide with Democrats primarily over the portfolio issue, and it is uncertain whether the legislation will ultimately reach the Senate floor. NAHB opposes the bill because it would force the two housing finance entities to engage in a massive sell-off or run-down of existing holdings, disrupting the mortgage markets and harming the housing finance system. Senate Majority Leader Bill Frist (R-Tenn.) has indicated that he will not bring S. 190 to the floor until Shelby reaches a compromise. In a related development, Freddie Mac recently agreed, at the request of the Office of Federal Housing Oversight (OFHEO), to voluntarily limit the growth of its $710 billion in mortgage holdings to 2% a year until it resumes publishing regular quarterly financial reports. Fannie Mae agreed to cap its mortgage portfolio at about $727 billion two months ago. While some have speculated that the voluntary portfolio limits could pave the way for a compromise on GSE reform legislation, others point out that this only demonstrates that OFHEO already has the ability to properly regulate the housing GSEs. NAHB will continue to monitor this debate throughout the August recess as its staff on Capitol Hill prepares for the short legislative session prior to the November elections. To view Senate legislation S. 190, click here and enter the bill number in the box at the center of the page. For more information, e-mail Scott Meyer at NAHB, or call him at 800-368-5242 x8144. Eye on the Economy: Housing Pulls Down Economic GrowthThe three-year “benchmark” revision to the national economic accounts, released by the Commerce Department on July 28, trimmed growth of real gross domestic product (GDP) and labor productivity while raising core inflation ― a sobering package of adjustments. Furthermore, the “advance” estimate of GDP for the second quarter of this year (released at the same time) showed below-trend 2.5% annualized GDP growth, modestly below our expectations. The benchmark GDP revision substantially altered the path of real residential fixed investment (RFI), showing even stronger growth in the first half of last year but swinging RFI growth from positive to negative in both the fourth quarter of 2005 and the first quarter of this year. In addition, the advance GDP report for the second quarter shows a hefty contraction in RFI, a reduction that lopped a sizeable piece off the GDP growth rate. Thus, the revised and updated GDP numbers clearly show that the housing sector was a major part of the above-trend economic growth pattern through the third quarter of 2005 and that housing is largely responsible for the shift to below-trend economic growth that’s now underway. The Labor Market Also Is Weakening as the Economy Slows The U.S. labor market inevitably has lost strength as GDP growth has slipped below trend. Payroll employment increased by only 113,000 in July, equal to the average gain for the past four months and equivalent to an annualized growth rate of only 1% ― down from an average 1.5% pace during the previous five quarters. Employment in home building fell by 9,000 in July and is off by 37,000 from its cyclical peak in March. The unemployment rate increased by 0.2% in July, from a cyclical low of 4.6% in June, and the pool of available labor moved upward despite a stubbornly low labor force participation rate. Despite the weakening of labor market conditions, average hourly earnings posted year-over-year growth of 3.8% in July, the same as in June and a growing complication on the inflation front. Core Inflation Accelerates, But the Fed Remains Calm Measures of core consumer price inflation have been accelerating recently, despite the downshift in GDP growth and the weakening of labor market conditions. The core consumer price index (CPI) posted a year-over-year advance of 2.6% in June and the core price index for personal consumption expenditures (PCE), the Fed’s preferred inflation gauge, showed a 2.4% year-over-year advance. These inflation readings look quite troublesome when the Federal Reserve apparently wants to limit year-over-year changes in the core CPI and PCE price indexes to 2.5% and 2.0%, respectively. Fed Chairman Ben Bernanke delivered a surprisingly friendly message on the inflation situation during his July 19-20 semiannual Monetary Policy Report to the Congress. While citing the pickup in core inflation this year, Bernanke felt that upward price pressures would subside in coming months as long as oil prices stabilize near current record levels and economic growth remains below trend. He also emphasized that the Fed must consider the lagged effects of past policy changes when making future policy decisions. Finally, under questioning stimulated by NAHB’s communications with Congress, Bernanke seemed to agree that recent upward pressures on core inflation stemming from surges in “owners’ equivalent rent” are rather perverse from a policy perspective and can be discounted by the Fed. The Housing Downswing Still Is Underway Recent indicators show that housing still is on a downward path that should weigh on economic growth for a few more quarters. Indeed, measures of housing affordability continued to deteriorate through mid-year, sales of single-family homes and condo units have been falling, and both housing starts and building permits moved down further in June. Available indicators for July suggest that the housing downswing still is underway. NAHB’s Housing Market Index slipped by three more points to a level of 39, down from a cyclical high of 72 in June 2005 and the lowest level since late 1991. The weekly survey of lenders conducted by the Mortgage Bankers Association shows that, in July, applications for mortgages to buy homes were down from June and 20% below the cyclical high a year earlier. NAHB surveys of large single-family home builders show that, because of soaring cancellations, net sales of new homes have fallen by a lot more than gross sales from the highs of last year. Inventories of new homes in the hands of builders actually are a lot larger than the record number being reported by the Commerce Department. Furthermore, the inventory of existing single-family homes was up by 36% in June (year-over-year) and the inventory of existing condo/co-op units was up by 63%. The Fed Pauses and Bond Markets Rally As we expected, the Fed held short-term interest rates steady at the Aug. 8 FOMC meeting, maintaining the 5.25% target for the federal funds rate. The FOMC statement cited the recent slowdown in economic growth, singling out the “cooling of the housing market.” The statement also said that “inflation pressures seem likely to moderate over time.” The FOMC’s public statement stressed that future policy adjustments will depend on the evolution of the outlook for both inflation and economic growth. The FOMC’s economic projections, revealed in the Fed’s recent Monetary Policy Report to the Congress, show expectations for slowing growth and receding core inflation, and NAHB’s current forecast goes even further in those directions. If we (and the FOMC) turn out to be on target, the Fed should be able to hold policy steady for some time and possibly drop rates some time next year. Long-term interest rates have been falling since late June as evidence of a slowing economy has accumulated and as Fed spokespersons, particularly Bernanke, have been remarkably sanguine about the prospects for core inflation. The FOMC’s decision on Aug. 8, along with the rather even-handed public statement, maintained downward pressure on long rates — holding the 10-year Treasury yield below 5% and keeping the long-term home mortgage rate around 6.6%. NAHB’s Forecast Still Tells a Fundamentally Positive Story The wealth of recent information on housing and the economy has prompted a variety of changes to NAHB’s forecasts for the second half of this year and 2007. The basic story remains the same, although the economic slowdown is a bit more serious, the interest rate structure is a bit lower and the housing downswing is a bit deeper. We continue to view the 2006-2007 slowdown as an inevitable mid-cycle correction that will pave the way for at least several more years of economic expansion and healthy trend-like housing market activity. There are downside risks, of course, but recent developments in financial markets bolster our confidence in our baseline (most probable) outlook. NAHB Chief Economist David Seiders analyzes the economy from the point of view of the housing market every other week in the free e-newsletter, “Eye on the Economy.” The preceding is a reissue of his Aug. 9 edition. To subcribe to “Eye on the Economy,” click here. 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. Free NAHB Moisture Protection Pamphlet for Siding InstallersNAHB’s popular how-to pamphlet for siding installers, “Moisture Protection of Exterior Walls — An Installer’s Guide,” has been updated and is available free to NAHB members. It is available in English and Spanish. The pamphlet was updated by NAHB’s Building Product Issues Committee and the NAHB Research Center and provides tips for several types of siding and veneer applications ― including brick, manufactured stone, stucco, thin brick and EIF systems over wood sheathing or paper-backed products. “Moisture Protection of Exterior Walls — An Installer’s Guide” provides guidance on:
To obtain bulk copies, call Cynthia Day at NAHB at 800-368-5242 x8291.
Register for Sept. 7-8 Construction Law Seminar in San Francisco
David Jaffe, NAHB staff vice president for construction liability and legal research, will be a panelist for a “Legal Challenges in Representation of the Home Builder” discussion on Sept. 7. Other panelists include Peter Reinhart, senior vice president and general counsel for Hovnanian Enterprises, Inc., and Brian Woram, senior vice president and chief legal officer for Centex Corporation. In addition to the home builder-specific panel, the two-day seminar will also include topics such as insurance coverage, “additional insured” obligations, litigation defense strategies, class action litigation, the development of a thriving construction law practice and more. The seminar also will feature a “hands on” session constructing scaled mock-ups of actual building components. The seminar is open to coverage attorneys, in-house counsel for construction or engineering firms, class action coordinating counsel, construction litigators, claims professionals, home builders and product manufacturers. The seminar is being conducted by DRI, the Chicago-based national organization of defense trial lawyers and corporate counsel. For more information about the seminar, click here. To read the seminar brochure online, click here. Eliminate Risks, Protect Against Liability With Well-Written Contracts “Contracts and Liability, 5th Edition,” available through BuilderBooks.com, shows builders how to reduce or eliminate litigation costs by learning how to write better contracts. NAHB staff attorneys provide you with vital knowledge concerning the basic elements of a warranty; drafting tips and formats; potential pitfalls; implied and statutory requirements; claim procedures; and limitations of liability. To view or purchase this publication online, click here, or call 800-223-2665. Builder's Tip: Using Sandbags as Concrete-Form Anchors
As shown in the accompanying drawings, a combination of sandbags and struts can often be a suitable substitute for conventional anchorages when applied in certain applications — like rocky soil or winter conditions when driving stakes into the ground just won’t work. Strut-braced forms also have the advantage of not obstructing the mouth of the form, and they don’t require the loss of valuable anchorage materials, such as threaded rods, inside the cast concrete. Please note that I’ve deliberately not given any dimensions to these configurations. They would depend entirely on the specific size and shape of the form being used. To use this method:
I am typically working with post pedestals in the 1-cu. ft. to 2-cu. ft. range, and it’s easy to pile on more than enough bags to deal with these loads. My rule of thumb is to use enough bags so that when I shove the form hard, there is no appreciable movement. I also keep plenty of bags on hand should I need more bracing. The critical thing to keep in mind is that concrete is heavy, surprisingly plastic and prefers to assume the general shape of a cow pie — rather than the shape you have in mind. It never hurts to overbuild or over-brace forms more than you think necessary. By the way, 25-lb. and 50-lb. woven poly-fiber seed and feed bags are excellent for sandbags. They are likely to be available for free from your landscape subs and local livestock farms. — Christopher T. Gale, Fallston, Md. 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 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.
Explore the latest housing industry news and information on www.nahb.org — the official public and members-only Web site of NAHB. Explore the latest housing industry news and information on — 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. Why You Should Be Concerned About Workplace HarassmentBy Betty S.W. Graumlich and Lee Ann Anderson According to the latest statistics by the U.S. Equal Employment Opportunity Commission (EEOC), more than 50,000 charges of sexual harassment were filed between 2002 and 2005. More importantly, it is not just sexual harassment charges that you need to worry about. Your employees are capable of creating a hostile work environment based on sex, race, disability, national origin or religion — unless you set the right tone and consistently condemn any form of harassment. Workplace Harassment Cases Are on the Rise Race and national origin harassment charges are on the rise, and the EEOC is taking those charges seriously. In 2004, the EEOC sued 30 employers for race harassment and more than 20 employers for national origin harassment. Two Cases of Harassment on the Construction Site In one case involving harassment in the construction industry, the EEOC brought suit against a company because its Mexican construction workers were subjected to vile discriminatory language on a daily basis — including the constant use of profanity combined with derogatory names for their ethnicity. Not only that, the workers were prohibited from using the cleaner restrooms on the ground floor and from using the elevators to carry heavy loads. They also had to bring their own drinking water to the site because they were prohibited from getting water from the supervisor’s trailer. The case was resolved through a consent decree in which the employer was required to pay a total of $600,000 to 10 claimants and $150,000 to other workers of Mexican national origin who had previously worked on the project and were subjected to harassment or retaliation. In another case, the EEOC obtained $100,000 for a truck driver/crane operator whose parents were from Puerto Rico and who was regularly called derogatory names because of his ethnicity. Despite complaints to the general manager, the company did nothing to investigate or remedy the complaints until the EEOC conducted an onsite investigation of the employee’s discrimination charge. Bad for Business Fines in workplace harassment cases like these are only part of the costs involved. The true cost is incalculable. Workplace harassment creates disruption in the workplace, lowers morale and productivity, causes emotional injury that leads to greater absenteeism and higher health-care costs and results in a substantial loss of management time in investigating and handling harassment complaints and defending EEOC charges and lawsuits. In addition, harassment charges create negative publicity for the business. In short, workplace harassment is costly business. To read more about harassment, go online to the “Human Resources Management Tools” section of www.nahb.org/biztools on the members section of the NAHB Web site. For seven tips on heading off inappropriate workplace behavior that can ruin you and your business and how to institute workplace policies and practices that can improve morale and save significant costs, click here (available to NAHB members only). Betty S.W. Graumlich is counsel in the Richmond, Va. office of Reed Smith LLP, an international law firm that represents companies in multi-jurisdictional litigation and other high-stakes disputes, strategic and cross-border transactions and crucial regulatory matters . Lee Ann Anderson is a senior associate in the Richmond office. Both attorneys specialize in labor and employment law. For more information, e-mail Graumlich, or call her at 804-344-3456; or e-mail Anderson, or call her at 804-344-3441.
Go to NAHB's Business Management Tools Web pages (available to members only) for instant access to more than 250 timesaving, moneymaking and cost-cutting business resources to help you run your business more profitably. Get guidance on accounting and financial management, business strategy, computers and information technology, customer service, human resources and more. Resources are added weekly, so bookmark www.nahb.org/biztools to go directly to these vital business management resources. Local and state home builders associations can link directly to www.nahb.org/biztools from their Web site and give their members instant access to these resources. It will make your HBA's Web site the place to go for the information and guidance that members need to succeed.
Subscribe to NAHB’s Business of Building e/Source NAHB’s Business of Building e/Source is your monthly electronic guide to the hot issues and emerging trends in home building business management. You’ll find practical advice, tricks of the trade and sound business guidance — all delivered monthly, straight to your desktop, in a quick and easy-to-read format. Business of Building e/Source is available free to NAHB members and their employees. To subscribe, visit www.nahb.org/BoB on the Members Only side of the NAHB Web site.
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. Mobile Office Alarm System Protects Construction Job SitesStepping up efforts to combat construction site thefts, Williams Scotsman International recently announced that it is integrating a portable wirelesss alarm system in its mobile office fleet that will allow builders to simultaneously monitor multiple areas of the job site. The SITELOCK™ Jobsite Security Portable Alarm System was developed by DEWALT after research from the power tool manufacturer identified job site thefts as a major problem for the construction industry. NAHB has reported that residential job site losses account for an average 1% to 2% of the cost of building a new home. Annual thefts from all construction sites in the U.S. are now running at more than $1 billion. Williams Scotsman’s mobile offices for construction sites will come equipped with the system, which in addition to securing the office can protect key assets on a job site for up to 2,000 feet away. The SITELOCK™ system can be customized for different job site needs. The system’s base unit is stationed in an indoor location, most often the job-site trailer, and equipment and key areas on the site can be monitored by remote sensors such as a container vibration sensor, security cable lock, indoor motion sensor and door and window contact sensor. If an intruder tries to enter a secured area, disturb a piece of protected equipment or remove a sensor, the sensor sends a wireless message to the base unit, activating the alarm and sending a signal via wireless cellular technology to a monitoring service. Job site managers have the option of having notifications sent to DEWALT’s central monitoring customer service center, which is staffed around the clock with trained SITELOCK™ alarm system specialists. The monitoring center will call the customer and notify the police if requested for about $40 a month (with limited availability in some areas), or customers can choose to be notified directly via a cell phone text message or e-mail for approximately $30 a month. The system is being introduced across the country this year, beginning with Seattle; Cherry Hill, N.J.; Dallas/Fort Worth; Boston, New York City; Sacramento, Calif.; Cincinnati; Detroit; Baltimore; and Fort Lauderdale, Fla. For more information, visit Williams Scotsman’s Web site, or click here. Williams Scotsman is one of NAHB’s affinity programs and provides mobile offices and storage containers for members. NAHB members can receive one month free rental (restrictions apply). To learn more about services offered by Williams Scotsman through the Member Advantage program, click here. 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. BuilderBooks.com: Navigate the Challenges of Land DevelopmentIn an environment of increasing local governmental regulations and constraints on land use combined with a growing concern over smart growth, land development has become an even greater challenge for builders. To better prepare for this challenge, BuilderBooks.com has released “Land Development, 10th Edition,” a step-by-step guide to help builders learn how to successfully navigate through the complicating land development process. The recently released edition contains new sections that examine the latest environmental regulations affecting land development, emerging demographics for targeted marketing and new innovations in housing types. The book emphasizes flexibility in order to accommodate the ever-changing trends in demographics, plan designs, technology and regulations. “Land Development” is written by Daisy Linda Kone, a Houston-based architect, planner and manager in the design-build residential construction industry who specializes in the environmental impact of construction and residential construction development. A key resource for developers, builders and students, “Land Development” helps readers better understand the interrelated factors that contribute to a successful land development project, including:
Custom Home Builder of Year Nominations Due Aug. 15Are you a master at transforming client wish lists into one-of-a-kind homes that complement both lifestyle and surroundings? Do you have a gift for acquiring that sought-after material or craftsman that will transform a room into a special experience? Have you experienced the thrill of a “first” in home building? If your answers are, “yes,” “yes” and, “I absolutely want to,” then you should apply for NAHB’s newest award, the NAHB Custom Home Builder of the Year. But you have to hurry. The application deadline for nominations is Tuesday, Aug. 15. To submit your nomination form online, click here. Sponsored by Dryvit Systems, Inc., the award recognizes the best of the best in a unique segment of the home building industry — those who craft exceptional custom homes for discerning clients and are leaders in the industry and their community. Award winners will be honored during the 2006 Custom Builder Symposium at the Hyatt Regency Lake Las Vegas Resort on Oct. 27-29. To learn more about the award and to apply, click here. To register for the symposium, click here.
Go to NAHB's Business Management Tools Web pages (available to members only) for instant access to more than 250 timesaving, moneymaking and cost-cutting business resources to help you run your business more profitably. Get guidance on accounting and financial management, business strategy, computers and information technology, customer service, human resources and more. Resources are added weekly, so bookmark www.nahb.org/biztools to go directly to these vital business management resources. Local and state home builders associations can link directly to www.nahb.org/biztools from their Web site and give their members instant access to these resources. It will make your HBA's Web site the place to go for the information and guidance that members need to succeed.
Subscribe to NAHB’s Business of Building e/Source NAHB’s Business of Building e/Source is your monthly electronic guide to the hot issues and emerging trends in home building business management. You’ll find practical advice, tricks of the trade and sound business guidance — all delivered monthly, straight to your desktop, in a quick and easy-to-read format. Business of Building e/Source is available free to NAHB members and their employees. To subscribe, visit www.nahb.org/BoB on the Members Only side of the NAHB Web site.
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. Early Registration for Custom Builder Symposium Ends Soon
Register now for the 2006 Custom Builder Symposium so you don't miss the Aug. 25 early bird registration deadline. Members will save $170 by registering by Aug. 25, non-members will save $70. The symposium will be held Oct. 27-29 in the Lake Las Vegas Resort, Nev. Featuring world-class education, plenty of networking opportunities and a practical take-home workbook packed with tips on marketing, management and customer service, the Custom Builder Symposium is a can't-miss opportunity for custom builders to learn from peers who build high-end homes for demanding customers. In addition, the symposium's Andersen Home Tour will feature homes in all phases of construction created by leading Las Vegas custom home builders. Learn From Peers and Other Industry Experts in Concurrent Sessions The Custom Builder Symposium will feature education programs tailored to the needs of builders whose specialty is the discerning, high-end home client. The following are just a few of the sessions offered:
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. Golf Utah for Educated Remodelers EverywherePlay golf at one of Utah’s finest courses, with proceeds to benefit the Remodelors™ Council Education Fund at the National Housing Endowment. The “unofficial” tournament begins Wednesday morning, Sept. 13 — one day before NAHB Fall Board of Directors meetings ― at the Mountain Dell Canyon Golf Course. The tournament fee is a $90 minimum contribution, which includes green fees, cart, prizes and a goodie bag for each golfer. Groups are welcome and single golfers can be paired to create foursomes. Special Premier Tee Times are available for those who wish to play and attend the Executive Board Meeting. For more information, e-mail Doug Sutton, Sr., CGR, CAPS, or call him at 217-528-3911 or 217-562-6452. McGraw-Hill Offers ENR Discount to NAHB MembersMcGraw-Hill Construction is offering National Commercial Builders Council (NCBC) members a 53% discount off the basic rate for Engineering News-Record (ENR). ENR provides construction industry professionals with news, analysis, commentary and data on such topics as business management, design, construction methods, technology, safety, law, legislation, the environment and labor. ENR products include a weekly magazine, a Web site and a series of in-person events. ENR products were developed for commercial contractors, project owners, engineers, architects, government regulators and industry suppliers — many of whom work around the world. NCBC members can subscribe to ENR for $39. The basis rate is $82. The annual subscription includes 51 issues of ENR, as well as “Top 400 Contractors Sourcebook,” “Top 500 Design Firms Sourcebook," “Top 600 Specialty Contractors Sourcebook,” the “ENR Quarterly Forecast and Cost Reports” and password access to the ENR web site, ENR.com. For the special discount rate, go to www.mcgraw-hill-sales.com/nahbenr.htm, or call McGraw-Hill Construction at 877-876-8208. Mention the special promotion code: 4ENRNAHB to receive the discounted rate. Commercial Builders Awards of Excellence Deadline Aug. 18The 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 Friday, Aug. 18. 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. Sign Up for Trade Mission to Puerto Vallarta, Mexico
The market for resort and high-end, resort vacation and retirement homes in Mexico is growing and attracting U.S. and European buyers — particularly in the areas of Puerto Vallarta, Nayarit, Puerto Penasco, Los Cabos and San Felipe along Mexico’s Pacific Coast. It is also offering growing opportunities for U.S.-based home building companies. To learn more about this market, NAHB International is organizing a trade mission for U.S. builders and others in the industry to Puerto Vallarta/Nayarit and development sites in the Banderas Bay area on Nov. 12-14. Developers, builders, suppliers and other industry professionals will be able to explore business opportunities and meet with private developers, public officials and other industry players. The trade mission will also include site visits. The trade mission will include private briefings with government and industry experts from FONATUR (Mexico’s Trust for Tourism Development), FIBBA, (Fideicomiso Bahia de Banderas), the Export-Import Bank of the U.S., the Overseas Private Investment Corporation and Stewart Title Guaranty de Mexico. Participants also can schedule "one-on-one" meetings with builder/developer members of Mexico’s Construction Industry Chamber (CMIC). To view a draft agenda, click here. To register, download and complete the registration form and e-mail it to Michael Boyce at NAHB (mboyce@nahb.com), or fax it to his attention at 202-266-8120. For more information, visit the NAHB Web site for Vallarta/Nayarit details, e-mail Rita Feinberg at NAHB, or call her at 800-368-5242 x8415. Thinking Green, Building Green Down Under
The National Planning Conference will be held at the Hilton Hotel in Sydney, Australia on Aug. 31. The conference will be followed by Sydney housing tours on Sept. 1. For his keynote, Jones, the president of Green Builder LLC, which specializes in challenging site projects and environmentally-conscious construction, will present “Cents & Sustainability.” His talk will address sustainable housing in a market that increasingly demands proactive attention to environmental concerns. Jones is a co-founder of Green Builder Media, LLC, a leading development, education, consulting and media organization and frequently participates in green-building workshops. He is the only person to have served on the boards of directors for NAHB and the U.S. Green Building Council. Jones has earned custom home of the year and housing excellence awards in custom building and green building. In 2006, he was awarded the Green Advocate of the Year in the builder category by NAHB and the National Green Building Conference.
“Residential Green Building SmartMarket Report,” available through BuilderBooks.com, addresses the growing trends and opportunities in green home building. The report provides the results of market research conducted by McGraw-Hill Construction and NAHB about green building in home construction. To view or purchase this publication online, click here, or call 800-223-2665. CAPS Designation All Over National News, CBS, CNNThe CBS Evening News recently featured a story about the Certified Aging-in-Place Specialist (CAPS) designation and the benefits the designation brings to consumers. So did USA Today ― on the front page. CAPS stories also have appeared in the Wall Street Journal, New York Times and Time magazine and on CNN American Morning. Why all the news coverage? That’s simple. The CAPS designation — and its companion Certified Graduate Remodelor™ (CGR) designation ― provide the right skill sets for today’s housing market. The CAPS designation program, in particular, teaches remodelers the customer service, business management and technical skills to meet the needs of, and effectively compete in, the fastest growing segment of the residential remodeling industry — those 50 and older who wish to remain in their homes. The CAPS program was developed by NAHB’s Remodelors™ Council in collaboration with AARP and others to provide comprehensive, practical, market-specific information about how to work with older and maturing adults who want to remodel their homes so they can age in place. The designation enables clients to identify and choose professionals who have the training, practical experience and in-depth knowledge to address their particular needs and concerns. “Being able to put CAPS in my marketing information increases the perceived and actual benefit to the client,” said Kathy Barry, CAPS, of Home Life Interiors in Kentwood, Mich. “It helps differentiate me from my competition. “Just last month a new client mentioned that she chose me because of my CAPS designation. Her husband has MS,” Barry noted. CGR Means Business and Professionalism The CGR designation was created to emphasize the business management skills needed to run a remodeling company. The designation helps consumers identify those who exemplify professionalism in the industry and enables CGR designees to gain recognition as industry leaders and stand out in a crowded marketplace. “My designations help me every single day,” said Beverly Koehn, GMB, CAPS, president of Beverly Koehn & Associates, Inc. in San Antonio, Texas. “They keep me abreast of what’s happening in the housing industry. The industry changes so rapidly, it’s all you can do just to keep up with it. By being an instructor and involved with designations on a constant basis, I feel like I’m always up to date on what’s happening.” Continuing Education Keeps You Ahead of the Pack As the remodeling industry continues to evolve, so does the industry’s continuing education requirements. CAPS and CGR professionals are required to earn 12 hours of continuing education credit every three years. The credits can be earned through class time, at trade show seminars or through community service. The recent flurry of national news coverage has increased consumer awareness of the benefits of hiring a remodeler who holds an NAHB designation, and that makes this an excellent time to begin or renew your NAHB designation program. For more information about CAPS and CGR, visit www.nahb.org/remodelors. Learn More Before NAHB's Fall Board MeetingAre you currently working on a designation or needing to take some continuing education courses to retain your designation? Now, you have the opportunity to take a course — or two — before this year’s NAHB Fall Board of Directors Meeting in Salt Lake City. The courses being offered include:
Register today and see how you can learn more and earn more with The NAHB University of Housing. For more information about designations or courses, call the NAHB Professional Designation Help Line at 800-368-5242 x8154. 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.
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. Government Regulators Listen to Builder SuggestionsA series of “listening sessions” with federal government officials this month and next will allow the home building industry to suggest improvements to environmental regulatory and enforcement programs. The federal Cooperative Conservation program has been established to encourage the Interior, Agriculture, Commerce and Defense departments and the Environmental Protection Agency (EPA) to work more collaboratively with state and local agencies, nonprofit groups and those who are regulated, including home builders. The Bush Administration announced that it will hold as many as 24 listening sessions nationwide over the next two months to solicit ideas and public support. Reforming both the Endangered Species Act and EPA’s storm water enforcement program are at the top of NAHB’s agenda. The sessions will be hosted by senior-level Administration officials, including Secretary of the Interior Dirk Kempthorne and EPA Administrator Stephen Johnson. Eight NAHB members from Washington and Idaho attended the first listening session Aug. 11 in Spokane, Wash., where 300 people turned out to voice their concerns to both Kempthorne and Johnson. Their reception was positive, said Timothy Harris, general counsel for the Building Industry Association of Washington. “The secretary of the interior made a point of telling us that (the listening sessions) were a directive coming straight from the White House,” he said. At the recent NAHB Executive Officer Council meeting in Connecticut, Executive Vice President Jerry Howard asked state and local leaders to make a point of attending a nearby session. “NAHB wants to tell top officials what is working and what is not — and how to fix it,” Howard said. “We must be active participants in these hearings. Your leadership and the involvement of our state and local associations in this effort are crucial.” NAHB action has worked well in the past, Howard said. The House of Representatives has passed comprehensive ESA reform legislation during this session and NAHB has secured support from key House members to introduce the Storm Water Enforcement Bill. “We heard about these hearings on very short notice. But we know that they present the last good opportunity to influence this Administration to address the long-standing reform priorities of the home building industry,” Howard said. Among the changes NAHB is advocating:
Upcoming sessions include:
Color Drawing Explains Green Building to Home BuyersGeared to helping home builders explain green building concepts to their customers, “Energy Innovation: How Homes Become Green,” can now be downloaded from NAHB’s Web site. The full-color illustration depicts a range of innovative green building features, including products that can be included in remodeling projects to create a more energy-efficient home. “It’s exciting to see how many green products and technologies are available now for home builders and home owners,” said NAHB President David Pressly. “The green market is growing by leaps and bounds, and as the market expands, we will see prices come down, making energy-efficient choices much more accessible.” The power generated by photovoltaic roof shingles, wind turbines and geothermal heat systems is expected to grow by 13.2% in 2006 and by another 15.6% next year, according to the federal Energy Information Administration. Replacing a traditional electric water heater with a solar model can reduce utility costs by up to 80% a year, and over the 20-year life of the appliance will reduce its carbon dioxide emissions by 50 tons. ENERGY STAR®-rated appliances slash utility costs by 10% to 50%. New front-loading washers use only half the water of conventional machines. Tankless water heaters provide hot water on demand at a preset temperature rather than storing it, which reduces or eliminates standby losses. Meanwhile, old ideas are gaining new support — such as orienting the home to take advantage of sunlight and using xeriscaping with native drought-tolerant plants to conserve water. “Native landscaping reduces water consumption and requires less maintenance and little or no chemical treatment to stay pest-free,” Pressly said. A high-resolution PDF of the “Energy Innovation: How Homes Become Green” illustration is available to builders and home builders associations upon request. For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132.
“Residential Green Building SmartMarket Report,” available through BuilderBooks.com, addresses the growing trends and opportunities in green home building. The report provides the results of market research conducted by McGraw-Hill Construction and NAHB about green building in home construction. To view or purchase this publication online, click here, or call 800-223-2665.
“Building Greener Neighborhoods,” available through Digital Delivery at BuilderBooks.com, shows those involved in building new communities the advantages and rewards of saving, planting and transplanting more trees in their developments. The examples are drawn from decades of experience of land developers, home builders and urban foresters. To download this publication, click here, or call 800-223-2665. Save the Date for 2007 National Green Building Conference Mark your calendar for March 25-27 for the National Green Building Conference. Visit www.nahb.org/greenbuilding for more information. Apply for Green Building AwardsEntries are now being sought for NAHB’s National Green Building Awards, which recognize individuals, companies and organizations for helping to move green into the mainstream of the housing industry through their designs and construction practices. New this year is a green land development award, which honors resource-efficient site design and development practices, including onsite recycling, preservation of trees and innovative storm water retentiion features. The annual awards will be presented during ceremonies at the association’s National Green Building Conference, which will be held in St. Louis on March 25 to 27. The awards honor achievements in seven categories:
For project awards, construction must have been started by June 2005 and substantially completed by December 2006. To enter by mail, send a hard copy and a disk of the completed application. For an application form and instructions on how to send logos, project photos and other artwork, click here. Winners will be notified by Feb. 15, 2007. For additional information, e-mail Emily English at NAHB, or call her at 800-368-5242 x8366.
“Residential Green Building SmartMarket Report,” available through BuilderBooks.com, addresses the growing trends and opportunities in green home building. The report provides the results of market research conducted by McGraw-Hill Construction and NAHB about green building in home construction. To view or purchase this publication online, click here, or call 800-223-2665.
Mark your calendar for March 25-27 for the National Green Building Conference. Visit www.nahb.org/greenbuilding for more information. NAHB Members Reviewing ICC Code Change ProposalsMembers of the NAHB Construction Codes and Standards Committee and staff experts are gathering in Washington this week to work on the next step in the series of drafts, revisions, comments and hearings in the International Code Council's (ICC) 2006-2007 Code Development Cycle. NAHB’s Provision Oversight Groups, or POGs, are entrusted with looking over the estimated 2,400 proposed changes to the ICC and then recommending the appropriate association position on the change — against it, in favor of it or no comment. Interest groups across the country drafted amendments, and NAHB — which submitted 65 of its own — takes the role of the potential home buyer when examining the proposed code changes and their effect on safety, the building process and housing affordability. The International Code Council develops model codes for residential building, commercial building, electrical, mechanical, energy efficiency and other categories that states and localities either adopt in their entirety or revise based on geography, local preferences or other factors. The ICC publishes a new edition of the codes every three years, but they are amended every 18 months, ensuring that someone, somewhere is working on a code change at any given time. Under the process, a national trade association, code official, manufacturer or other interest group submits a proposal to change the code. The proposal can be as simple as an editorial clarification of a particular section that is difficult to interpret, or as far-reaching as a change in how homes are framed, which can have a significant impact on design and materials. Once all the proposals are submitted, the ICC assembles them and posts them on its Web site for downloading. "You're shoulder to shoulder in all the conference rooms with papers and code books stacked high on the table," said Jeff Inks, NAHB assistant staff vice president for codes and standards. Staff and volunteers are working together this week to prepare testimony on as many as 700 specific changes, he said. In late September, ICC will convene in Florida for 10 days of hearings on each proposed amendment, and then in December, the ICC will send out another telephone-book-sized tome that includes stakeholder comments on the actions on proposed changes that were taken at the public hearings. NAHB members and staff will spend another few weeks preparing comments for submission in late January 2007. The ICC will publish the final comment book in April as the NAHB staff prepares to testify at a final round of code hearings in May. The ultimate goal, Inks says, is to make sure that the most onerous and least cost-effective changes never see the light of day in a published code book. For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132.
“2006 International Residential Code,” available through BuilderBooks.com, establishes minimum regulations for three-story one- and two-family dwellings and townhouses. It brings together all building, plumbing, mechanical, fuel gas, energy and electrical provisions for one- and two-family residences. To view or purchase this publication online, click here, or call 800-223-2665. Apply for 2006 Workforce Housing AwardsNAHB is now accepting entries for the Innovations in Workforce Housing Awards (IWHA) recognizing outstanding examples of workforce housing communities across the nation that provide decent and affordable homes for nurses, police officers, schoolteachers, retail workers and the like near areas in which they work. The awards also serve to increase awareness of the workforce housing challenge and the ground-breaking solutions implemented by the housing industry, while encouraging builders, developers and related professionals to incorporate such innovative solutions into their own projects. “These awards bring national attention to the workforce housing problem and to the creative ways in which builders and developers are increasing the supply of housing that is affordable to working families,” said NAHB President David Pressly. IWHA is open to builders, architects, designers, developers and land planners nationwide. Communities that have been completed, or in which the first model has been opened or the first unit has be |