Print-All Page: September 11, 2006

With concerns over the health of the nation’s housing industry increasing in response to slower sales and rising unsold inventories, NAHB President David Pressly and other association representatives have been stepping up their efforts to put the current downturn into perspective and respond to unsubstantiated, speculative reports in the new media “that the world is falling apart.”

The current slowdown in the pace of sales and construction “is pretty much what we were expecting” following the unsustainable levels of recent boom years and will still leave activity close to record levels, Pressly told a “Housing and Homeownership” conference of the Democratic Governors Association (DGA) in Aspen, Colo. on Aug. 26.

“Sure, it could be painful for some builders in the market who are overextended and some sellers who are having difficulty selling homes,” Pressly told the governors. “But if the Federal Reserve refrains from any additional interest rate increases, and other sectors of the economy pick up the slack and keep the U.S. economy growing at a respectable pace, we have all the makings for a relatively soft landing.”

Pressly provided the governors with statistics for their states gathered by NAHB/Housing Economics, including forecasts on housing starts and employment and population growth for 2006 and 2007, recent annual rates of home price appreciation compared to the nation as a whole, rental vacancy and homeownership rates, and rankings on annual housing growth and the OFHEO House Price Index.

Among those attending, Larry Gotlieb, vice president of government and public affairs and associate general counsel for KB Home, noted that current housing affordability problems are being greatly exacerbated by unreasonable development fees for infrastructure improvements, which he called “some of the most regressive tax policies being utilized by governments of all levels today.”

“Believe me when I say home builders are willing to pay their fair share to support new infrastructure needs,” said Pressly. “But when the cost of fees, taxes and regulatory red tape adds up to $50,000 or more to the price of a home — that’s simply too much. Remember, these costs are passed on to our customers, and there’s a limit to what they can afford to pay.”

Pressly said that NAHB has worked with the National Conference of State Legislatures to identify infrastructure financing alternatives. “However, in order for a locale to engage in these financing alternatives, they must be granted the enabling legislation by you, their governor, and your respective state legislatures,” he said.

A delegation from NAHB, including Pressly and Senior Officers of the association, visited the Federal Reserve Board in Washington, D.C. on Sept. 5 to provide an update of conditions in the housing market.

The meeting was attended by five of the six Federal Reserve governors, including Chairman Ben Bernanke.

Housing has been one of the sectors of the economy that the Fed has been watching closely to gauge the impact of its monetary policies. A Sept. 6 “Beige Book” prepared by the Federal Reserve Bank of New York noted that recent reports on real estate and construction were uniformly weak in the residential sector across the country, while commercial construction showed fairly widespread strength.

Virtually all of the 12 Fed districts reported declines in home sales and construction activity, the report said, and most districts indicated substantial increases in the inventory of unsold homes.

Residential real estate contacts for the Fed report said they expected housing markets to remain weak, if not weaken further, in the months ahead. This concern was specifically cited in reports from Philadelphia, Cleveland, Atlanta and Kansas City.

Relatively flat or declining home prices were noted in the New York, Richmond and Kansas City districts, and decelerating prices were reported in the Philadelphia and San Francisco districts, according to the report. The high end of the market was described as particularly weak in the Richmond, Va., Chicago and Kansas City districts, as well as parts of the Minneapolis District.

The high ends of both the Dallas District’s housing market and the New York District’s co-op and condo market were reported to have experienced less softening than the more moderately priced segments. “One area of relative strength in residential real estate has been the apartment market — of the three districts reporting on this, New York and Chicago both indicate fairly strong demand for apartment rentals since the last report, while Dallas noted continued strong demand for condominiums.”

NAHB Chief Economist David Seiders carried the association’s insights into the state of the housing marketplace to the White House on Sept. 7, joining a discussion with Edward Lazear, chairman of the Council of Economic Advisers.

“As long as the economy remains in good shape, interest rates remain close to current levels, energy prices remain below recent highs and sellers of new and existing homes adjust prices or offer incentives to meet current market realities, the rest of the housing market correction should be of limited depth and duration,” Seiders said. He expects to see the housing market stabilize by the middle of 2007.

Big Builders Play It Safe on Innovative Technology

In an industry that is slow to give up the traditional way of doing things, larger, national production builders may not be entirely sold on innovative building technologies and materials, but they are more likely to invest in them than their smaller counterparts and they do see many possible benefits from using them over the next couple of decades, according to a recent report from the Partnership for Advancing Technology in Housing (PATH).

The report, “Characteristics of Innovative Production Builders,” was based on surveys of NAHB members affiliated with the 400 largest builders in the U.S., all of which build 200 or more single-family homes per year from stock plans rather than custom designs. The study was prepared by the Center for Housing Research at Virginia Tech in Blacksburg, Va.

National firms are in a better position than local builders to use innovative building technologies to their advantage and to continue to gain market share, the study finds, “but they are also very reliant on the success of established business models. The risks associated with building innovations are magnified by the volume of units built by a large production builder. Without substantial field-testing to demonstrate the performance and benefits of an innovation, the risks faced by large production builders generally outweigh any advantages.”

However, the current slowdown in the housing market and increased materials costs could be helping to create a better market for building technology innovation, according to the report. Also, “shortages in skilled construction labor in terms of both overall availability and the inadequacy of training by small contractors is pushing companies to look to solutions that include process and quality control technologies and vertical integration,” the study says.

With large builders focusing more on their land inventories as part of their business strategies, more small builders could be prevented from obtaining desirable locations for development, further accelerating the trend toward concentration in the industry over the past 20 years. However, the study says, the growing importance of land in the cost of housing diminishes the potential impact of building technology innovations.

“As ‘bricks and mortar’ contribute proportionately less to the final cost, the contribution of building technology innovation to profitability declines….This supports the survey results that emphasize the impact of innovation on quality and customer satisfaction rather than costs or profits.”

When asked to rate their likelihood of investing time and money over the next five years on a variety of management and building technology objectives related to construction, respondents gave the highest ratings (“very likely”) to reduce construction defects and callbacks (81%), improve subcontractor dependability (76%) and improve the attractiveness of the homes being built (72%). Cost reduction and productivity (reduced cycle time) were rated very likely by 61% and 62% of the respondents, respectively.

In looking at factors they believe contribute greatly to their success, 75% of the firms represented in the survey emphasized customer service in terms of quickly addressing problems in homes. “This aspect of customer service rates in importance well above the next two items, providing amenities within the communities they develop (57%) and developing and offering high-quality architectural design (57%). Fifty-one percent indicated that higher structural quality and better mechanical systems made a significant contribution to their success; energy-efficiency and environmental sensitivity was cited by 35%.

The study included 11 innovative products and process technologies, and it found that their market penetration fell into three tiers:

The survey found that the single most important trend that could affect future innovation in building technology is the increase in energy costs, which was cited by 70% of the respondents. That was followed by land costs and availability (62%) and labor costs and availability (61%).

“For the most part, there were no clear associations between business strategies and current or past use of the innovative technologies measured in the survey,” the report says.

“However, companies planning to invest in educating buyers about new technologies were much more likely to have adopted one or more of the early-stage innovations. This pattern confirms other findings stating that building technology innovation by production builders is not pulled by demands and suggests that these innovators focus on their role in (or even the necessity of) educating buyers about the benefits of higher building performance. Given that many building technology improvements are invisible to the consumer, the successful innovator will need to be highly skilled in communicating the benefits of a better quality product.”

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Nation's Building News will not be published on Sept. 18. Publication of NAHB's official online e-newspaper will return to its regular weekly schedule with the Sept. 25 issue.

Massachusetts Home Made From ‘Big Dig’ Scraps

Paul Pedini, a 51-year-old civil engineer who worked on Boston’s $14.6 billion “Big Dig” highway construction project for a decade, has just finished building a house out of steel and concrete salvaged from the project, and although it came in over budget, he reports that “it doesn’t leak.” Concrete slabs, each about 40 feet long and weighing up to 25 tons, comprise the floors and roof of the 4,300-square-foot home, which cost $645,000 to build in a neighborhood of modern homes in the suburb of Lexington. Besides the 600,000 pounds of steel and concrete, the rest of the home has new materials. Pedini got the scrap materials for free, estimating the giveaway saved his company, one of the project’s main contractors, $20,000 in demolition and dumping fees. He paid a crew $10,000 to transport the slabs on trailers. Pedini, along with architects John Hong and Jinhee Park, want a percentage of government-funded transportation construction contracts to require “pre-cycling.” In the meantime, residents and civic groups have nixed the design for a 24-unit apartment building in North Cambridge made with Big Dig scraps and Pedini is peddling his “engineered pre-cycling” concept to the state of Washington, which is preparing to replace the Alaskan Way Viaduct in Seattle, and to federal transportation officials. (www.usatoday.com)
USA Today (8/6/06); Ken Maguire, Associated Press

KB Home Cuts Holdings as Market Cools

Reevaluating its property holdings in today’s slumping housing market, KB Home has started pruning its land portfolio in Southern California and recently sold its 49% stake in the massive Anaverde master-planned community in the Antelope Valley to the majority owner, Empire Cos. of Ontario. KB, the fifth-largest home builder in the nation, in recent years has beefed up its land-development business to capitalize on rising property values during a six-year housing boom. But now with demand for new homes on the decline, major builders are under pressure from Wall Street to justify their ownership of land that isn’t already primed for building and that doesn’t have a prospective buyer lined up. Some analysts also worry that builders could be forced to write down the value of their land if they can’t unload it, or if land values start to decline. “Builders are trying to become more like manufacturers who want ‘just-in-time’ inventory,” said Patrick Duffy, a managing director for Hanley Wood Market Intelligence. (www.latimes.com)
Los Angeles Times (8/30/06); Annette Haddad

Silicon Valley Ranks Dead Last in Ranking of U.S. Tech Hubs

High housing costs are among the factors that have relegated California's Silicon Valley to last place among the nation’s 12 technology hubs, according to the newest survey by Silicon Valley Leadership Group. North Carolina’s Raleigh-Durham area, which enjoys relatively affordable housing and a thriving job market, was in first place. The valley — defined broadly as the region stretching from San Jose north to San Francisco and Berkeley, as well as corporate suburbs such as Cupertino and Palo Alto — fared particularly poorly because of its expensive homes. Only 14.9% of local homes are within the price range of individuals earning the median income, according to NAHB. By contrast, 65.8% of homes in the North Carolina tech hub were considered within the reach of those earning the median income. However, the valley attracts nearly $8 billion annually in venture funding, four times more than its closest domestic rivals. (www.ap.org)
Associated Press (9/1/06); Rachel Konrad

A Star’s Down-to-Earth Role

GREEN.O.LA by Andrew Kotchen and Matthew Berman of Workshop/APD in New York has won a contest by Global Green and actor Brad Pitt to create eco-friendly housing for New Orleans. By adopting a neighborhood — Holy Cross in the Ninth Ward — Pitt hopes to jump-start the rebuilding process while providing a new standard for architecture that will give the rebuilt city a reputation for forward-thinking design and energy efficiency. The contest’s jury, which included such experts as Pritzker Architecture Prize winner Thom Mayne, felt that the winning entry was the most adaptable to various settings. Pitt attributes his interest in architecture to a college course on Frank Lloyd Wright and more recently has been taken by the work of Frank Gehry, whose Guggenheim museum in Bilbao, Spain moved him to tears. When remodeling his 1930s Arts and Crafts-style residence extensively, Pitt collaborated on every detail of his guest house and stark art studio, according to designers at the Los Angeles office of the Graft architecture firm. A shoebox of concrete, Venetian plaster and glass contains little more than a Gerrit Rietveld Zig-Zag chair, which can be hidden away in a wall. Pivoting glass doors offer a smidgen of eco-design by admitting breezes and keeping the need for air conditioning to a minimum. Pitt says he will be returning to New Orleans to monitor progress on the Global Green project while filming “The Curious Case of Benjamin Button.” (www.washingtonpost.com)
Washington Post (9/9/06); Linda Hales

Contractor Pitches Saving Green by Going Green With Biodiesel

Working on a 48-unit green townhouse development, for the first time in his career, Ernie Sota, a 56-year-old general contractor in Pittsburgh, is requiring on-site subcontractors to use a fuel blend that is 20% biodiesel and 80% traditional diesel. Made from animal fat and vegetable oils, biodiesel reduces the use of petroleum-based diesel fuels and many of the pollutants they emit. “There are a lot of good contractors in the area,” he said. “But we’re trying to differentiate ourselves as a firm with a green approach that saves money for the client and end user, along with providing environmental benefits.” Sota is no stranger to environmentally sensitive construction techniques, but he realizes the biodiesel initiative moves him in a direction that involves people who might not always think of the earth first. “It’s always difficult to change behaviors,” he said. “I have to educate my subcontractors about the product and how it can help them improve the performance and lifespan of their equipment. Once they understand that, it’s an easier idea to sell.” (www.pittsburgh.bizjournals.com)
Pittsburgh Business Times (8/25/06); John Altdorfer

On With the Model Home Show

Centex Homes’ Los Angeles/Ventura County division recently decided to “warm up” the largest model of its Milestone community in Santa Clarita by having actors pose as a family of four in a performance of “HomeLife.” The advertising and public relations agency that came up with the idea to integrate real estate and entertainment presented a loosely-scripted skit revolving around Mom’s surprise birthday, in which the family would be making dinner, baking a cake and listening to music. The “family” was given enough information about the property to answer basic questions while playing their characters, and was encouraged to not only field questions from visitors but ask them as well. The show was originally set for a two-time run, the first performance coinciding with Milestone’s grand opening, but it was so successful that Centex has taken it on the road. “We see a lot of benefits,” says Amanda Larson, the Centex Homes unit’s marketing director. “We like it, and people like it because they can picture themselves in the home and learn more about it. From what they’re telling us, it’s been a positive experience.” While it is hard to say how many sales have resulted from the promotion, it has generated tons of traffic and publicity and costs substantially less than a newspaper ad. (www.realtytimes.com)
Realty Times (9/6/06); Lew Sichelman

Letter to the Editor: Keeping Ground Water Clean

As a design professional in an architecture firm that engages in site planning activities for developers, I have recently had to fight a case similar to one mentioned in your Aug. 28 story, “NAHB Weighs in on Two Pending Wetlands Cases.”

I agree that in many instances the definition of "waters of the state" has been misused by jurisdictional enforcement agencies. In our recent situation, the application of waters of the state resulted in an urban drainage ditch becoming a protected creek and making desirable urban infill development impossible.

However, I believe we are also seeing an increasing awareness of the importance of surface waters (including areas of seasonal water storage) in recharging our nation's aquifers, a resource well worth protecting, if not by the Clean Water Act, then perhaps by a new piece of legislation to reward developers for protecting something we all need — clean ground water.

Here in Florida, a tremendous amount of our overall quality of life stems from the quality of water that reaches the aquifer and then reemerges in springs or as potable water. Our porous landscape is easily affected by the path that rain follows into the ground. Many award-winning communities in this state (including one by WCI that received NAHB's National Green Building Award) are working with scientists and engineers who understand these systems to create a new and rewarding environment for their customers. I hope that these will serve as models for development.

As we note the limitations of the Clean Water Act's authority, we must also promote a responsible attitude toward how the rain makes its way through the ground to the aquifer and to our springs and faucets.

‘Flippers’ Could Get Burned by Market Correction

Existing housing prices could be in for a dip over the near term, the National Association of Realtors® said last week, but with economic fundamentals sound housing price appreciation should be getting back to normal fairly quickly.

“A year ago we had record home sales and tight supply with buyers bidding over the asking price,” said David Lereah, NAR’s chief economist. “This year, sales are slowing, homes are plentiful and sellers are negotiating. Under these conditions, we’ll probably see prices dip temporarily below year-ago levels as the market works through a build-up in the housing inventory.”

Lereah said he was expecting a normal pattern for a market correction, with home prices returning to “positive territory” within a few months, although appreciating at a slower annual pace than the historical norm.

“Keep in mind that over time, home prices rise at the rate of inflation plus one to two percentage points,” said Lereah. “Buyers in most parts of the country who plan to stay in their home for a normal period of homeownership can pretty well bank on those historic averages, but people who purchased last year with the intent of flipping are likely to get burned.”

Lereah said that home sales for the balance of the year will be lower than projected earlier as the market works its way through the current inventory and price imbalance.

The national median existing-home price for all housing types is expected to grow 2.8% this year, to $225,900, with the median new-home price rising only 0.2% to $241,400, according to the Realtors®. New-home prices are being dampened by builders offering incentives to reduce inventory, the association said.

Existing home sales are forecast to fall 7.6% to 6.54 million this year, which would make 2006 the third best year after consecutive record highs in 2004 and 2005. New-home sales, Lereah predicts, should drop 16.1% this year to 1.08 million, which would be the fourth highest on record.

The 30-year, fixed-rate mortgage is likely to rise to an average of 6.7% in the fourth quarter, according to the Realtors® forecast.

“Mortgage rates are one of the bright spots in the economy right now, with an unexpected decline recently in the 30-year fixed rate to a narrow range around 6.5%,” Lereah said. “This should encourage some of the nearly 4 million people who’ve found newly created jobs over the last two years.”

Mortgage rates ended their recent downward drift for the week ending on Sept. 7, according to Freddie Mac's Primary Mortgage Market Survey. The 30-year fixed rate moved up from 6.44% for the prior week to 6.47%.

“We expect that mortgage rates will continue to fluctuate as new economic data are released, but still remain in the 6.5% to 7% range for the rest of the year,” said Frank Nothaft, Freddie Mac’s chief economist, but slowly rising mortgage rates are being offset in part by a slowdown in home price appreciation.

“Consequently, higher rates have resulted in houses sitting on the market for longer periods of time, changing the real estate sector into more of a buyer’s market from the seller’s market of the last few years. This is a plus, as it allows potential home buyers more time to look around and decide what they really want and what they can afford.”

Don't miss NAHB's fall Construction Forecast Conference for the latest economic news about the housing industry. Join NAHB on Oct. 25 for the Construction Forecast Conference — Fall 2006 in Washington, D.C.

HousingEconomics.com includes downloadable Excel tables featuring the housing starts forecast, GDP, demographics and more.

Builders Beware — You Could Be a RESPA Target

Home builders and their affiliates need to ensure that their operations comply with the Real Estate Settlement Procedures Act (RESPA) to avoid harsh penalties — including triple damages, fines and even imprisonment, warns Phillip Schulman, Esq., a partner in the Washington, D.C. office of Kirkpatrick & Lockhart Nicholson Graham LLP.

Builders need to be most concerned that they don’t violate Section 8 of RESPA, which prohibits giving or receiving anything of value in exchange for the referral of settlement service business, including any service in connection with the sale of a house.

Schulman says that the Department of Housing and Urban Development has targeted builders for their activities under RESPA:

“As these settlements demonstrate HUD’s willingness to target and investigate home builders, it is imperative that home builders be aware of those activities that are permitted and not permitted under RESPA,” says Schulman.

Although RESPA prohibits fees in exchange for the referral of business, the statute permits builders to make payments to promote their businesses, as well as receive promotions from others, says Schulman, and thus:

“Ultimately, each of these activities promotes the business of the builder, lender or title agency, which RESPA does not consider to be the giving or receiving of a thing of value in return for the referral of business,” says Schulman.

On the other hand, cautions Schulman, RESPA prohibits home builders from receiving rewards of prizes that can be tied to the referral of business:

“HUD has specifically targeted these types of gifts and prizes in the past,” says Schulman, “and home builders should ensure they are not accepting ‘things of value’ from other settlement service providers who are seeking the builder’s referrals.”

Although RESPA prohibits a range of payments and activities among builders and other settlement service providers, Schulman says, “the statute also contains a number of exceptions that permit payments for actual services provided and affiliated business arrangements, to name a few.” These exceptions provide home builders with valuable opportunities to earn ancillary income in connection with their business, and will be discussed by Schulman in an upcoming article in Nation’s Building News.

Phillip Schulman has a national practice specializing in a range of matters related to real estate finance, mortgage banking and consumer financing. He can be reached by e-mail, or call him at 202-778-9027.

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.

Teleconference to Examine State of Latino Homeownership

An upcoming teleconference — featuring Henry G. Cisneros, former secretary of the U.S. Department of Housing and Urban Development and founder and chairman of CityView, and NAHB Chief Economist David Seiders ― will examine the state of Latino homeownership. Dean Mon, NAHB national vice president for New York and New Jersey, will moderate the call.

Hispanics, the nation’s fastest-growing minority, make up 14.5% of total U.S. population and are projected to account for 17.8% of the nation’s population by the year 2020.

To participate in the teleconference, call 800-860-2442 and ask for the “NAHB Latino Homeownership” call.

Presentations and reference materials will be available for download at www.nahb.org/latinohomes, 10 minutes before the teleconference.

"Casa y Comunidad: Latino and Neighborhood Design,” available through BuilderBooks.com, takes the first-ever look at the growing and increasingly prosperous U.S. Latino community and its housing needs and helps all segments of the housing industry to understand and prepare for this emerging market.

The publication was written by Henry G. Cisneros, former secretary of the U.S. Department of Housing and Urban Development and founder and chairman of CityView, which partners with home builders to provide workforce housing.

Eye on the Economy: Housing Downswing Still Is Underway

The economy still is moving ahead at a decent pace without generating prohibitive inflationary pressures. Growth of real gross domestic product (GDP) has been revised upward for the second quarter, although the pace still qualifies as slightly below trend and the composition of second-quarter GDP has sobering implications for the third quarter of the year.

Indeed, slightly below-trend rates of economic growth are in store for the balance of this year and most of 2007, although trend-like growth should be attained by 2008 (our short-term forecast now extends through 2008).

Payroll employment growth has shifted to a lower pace as growth of economic output has slowed, and the unemployment rate is off its cyclical low in the second quarter of this year. Job growth should continue around recent rates for some time and the unemployment rate should move up somewhat further before receding over the latter part of our forecast horizon.

Core inflation still is running above the upper bounds of the Federal Reserve’s implicit comfort zones. However, recent news is reassuring and the core inflation measures still are being boosted by the perverse “owners’ equivalent rent” imputations that should be discounted by the Fed.

Economic developments since the Aug. 8 meeting of the Federal Open Market Committee (FOMC) meeting — particularly further deterioration of housing market activity and reassuring news on core inflation ― point toward another “no change” decision at the next FOMC meeting on Sept. 20. We’re still expecting stable monetary policy through mid-2007, followed by a bit of monetary ease to help the economy move up toward trend.

Fixed-income markets have feasted on the news of a slowing economy, limited core inflation pressures and rising prospects for stable short-term interest rates. Long-term bond and mortgage rates have come down quite a bit from their mid-year highs, and we’re expecting only slight increases in coming quarters.

The housing downswing that began around the middle of last year deepened in July as all major housing indicators lost more ground. Furthermore, forward-looking surveys of builders and mortgage lenders, including NAHB’s monthly survey of single-family builders and weekly surveys of home mortgage lenders conducted by the Mortgage Bankers Association, point toward additional declines in single-family sales and housing starts in August.

Large inventory overhangs of both new and existing units promise to weigh on both single-family and condo markets for some time.

House prices now are reflecting the falloff in housing demand and the buildup of unsold inventories. The purchase-only component of the House Price Index produced by the Office of Federal Housing Enterprise Oversight (OFHEO) rose by only 1% in the second quarter (seasonally adjusted), less than half the pace in 2005, and a fair number of metro areas now are showing quarter-to-quarter declines in the OFHEO “repeat transactions” data system.

For July, the median price of new homes sold was up by only 0.3% on a year-over-year basis, the median price of existing single-family homes was up by only 1.5% and the median price of existing condo units actually was down by 1% on a year-over-year basis.

All these national data show dramatic deceleration from the double-digit rates of price appreciation recorded in previous years, and prices now are falling in a growing number of metro areas.

It’s clear that the housing downswing still has some distance to go, if only to work off excess supply in markets for both new and existing homes.

Builders are doing their part by cutting back on starts of new units, by trimming prices and by offering sizeable non-price sales incentives to limit cancellations and bolster sales. Furthermore, various economic and financial market fundamentals figure to be supportive of housing demand for the foreseeable future, helping to facilitate the inventory correction.

As long as the economy remains in good shape, interest rates remain close to current levels, energy prices remain below recent highs and sellers of new and existing homes adjust prices or offer incentives to meet current market realities, the rest of the housing market correction should be of limited depth and duration.

It’s likely that the bulk of the downswing in home sales and housing production will occur this year, with market activity stabilizing during 2007 and moving back up toward trend in 2008. The cumulative below-trend levels of housing market activity we’re projecting roughly offset the above-trend performances in 2004-2005.

The downswing in housing market activity will continue to detract from economic growth over the balance of this year and in the first half of 2007. However, stronger performances from other sectors, including non-residential construction, should keep the overall economy on a solid growth path, and the mid-cycle sectorial rotation process should enhance the vitality of the economic expansion.

The recent housing boom and the current downswing in housing market activity may have some adverse indirect impacts on the economy. However, neither a fading housing wealth effect nor a rising number of households subject to “payment shock” on adjustable-rate loans should be serious enough to derail the economic expansion.

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 Sept. 6 edition. To subcribe to “Eye on the Economy,” click here.

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.

Builder's Tip: A Time Saver for Installing Closet Shelf Cleats

Whenever I’m installing cleats for closet shelves, I cut down the amount of ladder time with the little trick shown in the accompanying illustration.

To request a reprint of this feature, e-mail Christina Glennon 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.

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.

Preferred Lender Strategies Can Help Sell Homes

One proven option that can help sell homes in a slowing market is to partner with preferred lenders that provide affordability tools to buyers.

Many of these tools ― such as buydowns, forwards and construction-to-permanent (CTP) financing ― work well in the current economic environment and can help consumers qualify for the home of their dreams, according to Paul Fazzini, vice president of American Home Bank in Lancaster, Pa.

Howard Hirsch, of Keystone Custom Homes, worked with American Home Bank to design financing incentives that reduced the monthly payment for buyers from $1,643 using conventional financing to $1,124 using CTP financing and other affordability tools. Keystone sold 18 homes in one weekend.

Keystone Custom Homes is a three-time Best Builder award winning builder based in Willow Street, Pa.

“Qualifying for homes was made easier, and several buyers found they could buy a new home for less than the payment on their old home,” Hirsch said. With half of the customers providing construction-to-permanent financing, Keystone also reduced the risk of walk-aways.

Another builder designed a program using a special financing incentive that reduced the mortgage payment from $2,100 to $1,700 to sell spec homes in his inventory. Not only did the builder successfully sell many of his spec homes, he also generated enough traffic with his special financing offer to make several additional sales.

Other recent programs builders were able to offer with the help of preferred lenders included:

“These types of preferred lending arrangements are not usually found in a typical commercial banking environment,” Fazzini said, while noting that builders should consult with their preferred lenders to find out what incentives will give them the “most bang for the buck.”

To read more about buydowns, forwards and construction-to-permanent financing, visit www.nahb.org/pb (available in the members-only section of the NAHB Web site).

NAHB Has More Than 250 Resources to Help You Run Your Business More Profitably

Go to NAHB's Business Management Tools Web pages (available to members only) for instant access to more than 250 timesaving, moneymaking and cost-cutting business resources to help you run your business more profitably. Get guidance on accounting and financial management, business strategy, computers and information technology, customer service, human resources and more.

Resources are added weekly, so bookmark www.nahb.org/biztools to go directly to these vital business management resources.

Local and state home builders associations can link directly to www.nahb.org/biztools from their Web site and give their members instant access to these resources. It will make your HBA's Web site the place to go for the information and guidance that members need to succeed.

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

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

Enter Pillars to Be 'Best of the Best' in Multifamily

Its style and luxuriously high-end features earned The Setai Resort and Spa in the historic Art Deco district of Miami Beach, Fla. top honors in the mixed-use category of the 2006 Pillars of the Industry Awards as well as the Freddie Mac Multifamily Community of the Year Award.

The application deadline for NAHB Multifamily’s 2007 Pillars of the Industry Awards program — which honors excellence in multifamily design, development, marketing and management — is Nov. 30.

A showcase of innovation and future trends, Pillars is considered to be the most prestigious national awards competition in the multifamily housing industry.

“The Pillars awards represent a perfect opportunity to promote the benefits of apartmetn and condo living, and for multifamily professionals to be recognized for their commitment to proving superior housing choices, both rental and for sale, for today's consumer," said Leonard Wood, director of Wood Partners, LLC and chairman of NAHB's Multifamily Leadership Board.

The winners will be honored at a gala ceremony held in conjunction with NAHB Multifamily’s Pillars of the Industry Conference coming to New Orleans on April 11-13.

For more information about the awards and to apply, visit www.nahb.org/pillarsawards, or e-mail Laura Zaner at NAHB, or call her at 800-368-5242 x8563.

Diversifying During Stressful Times Could Spell Disaster

Many in residential construction are beginning to see the economic sun set a little earlier these days.

Now is definitely the time to make sure your conversions are at peak efficiency, or as close to peak as possible. You also must do everything you can to trim excesses ― without losing key assets, people or product. Non-productive people also must either become productive or be given the opportunity to join your competition.

This also is a time for bargains — to obtain the things that you need for your business like a Bobcat to backfill your jobs, for instance, rather than having to wait for your dirt contractor to become available.

In this economic environment, you may be tempted to diversify your business. Bargain-priced businesses are out there ready to be acquired, but be very careful.

Trying to diversify during economic hard times is like scavenging — if you find something be careful it’s not rotten and don’t let it poison your operation. You can get a good bargain, but don’t make that move at the expense or health of your main ride.

Diversifying is something you should only consider undertaking when your core business is good ― when your business is kicking off more money than you need for operations and when you have more than enough “reserve capacity.” (Reserve capacity — that’s what I would tell people I had plenty of when they asked me if I was busy. I would tell them I was enjoying some “reserve capacity.”)

When I wrote The NAHB University of Housing course on diversification, I made a very real case that anyone who is considering diversifying their business should first evaluate their talent, preparedness and readiness for seeking a diversified line of business.

Do you have the funds that the new venture will take to get started? Can you and the people who are part of your core company spare the time it will take to buy into and administer the new program?

That business venture you are considering may seem like a bargain right now, but look beyond its price tag and consider the full investment you will have to make. When things are tightening up, as they are now, may not be the best time to venture into uncharted waters.

The NAHB University of Housing course I wrote on diversification does a fair job on helping you decide how suited you might be to expanding your business into other areas. You actually can get a glimpse into your potential by measuring your Diversification Quotient.

One thing is for certain, however. If your core business is doing well ― giving you an excellent return on your investment — make sure you have a good reason for looking elsewhere rather than improving what you have.

Also, if you’re making so much money that you are embarrassed by your riches, send some of it to me. I’ll make your apologies for you.

MM “Mike” Weiss, CGR, CAPS, CGB, GMB, has been a full-service remodeler for more than 25 years and is a past chairman of the Remodelors™ Council of NAHB. Weiss tours the country teaching both CGR and CAPS courses to hundreds of professional remodelers a year. For more information, e-mail Mike@WeissRCMI.com.

Design, Codes, Trends Are Hot Topics at BSC SHOWCASE

Balancing modern, popular home designs with the structural properties necessary to meet state and local codes is a challenge for even the most experienced engineers and architects.


	SHOWCASE 2006 will be held Nov. 5-8 at the Doral Golf Resort & Spa in Miami, Fla.

Breakout sessions at the Building Systems Councils' SHOWCASE conference and trade show in Miami, Fla. on Nov. 5-8 will highlight the dual sides of design — designing for codes and designing for consumers ― to help builders better achieve that balance.

Two SHOWCASE breakout sessions will give attendees a crash course on building code evolution and how products are tested to meet and exceed those codes, even in the most stringent jurisdictions:

Two additional SHOWCASE breakout sessions address the changing needs of today’s home buyers:

To register, or for more information, visit www.nahb.org/showcase. Event registration is open through Oct. 13. Register by Sept. 15 and save.

Sept. 15 Entry Deadline Looms for BSC Excellence Awards

The awards are open to all BSC member manufacturers — concrete, log, modular and panelized — and associates and any NAHB builder member who uses building systems

Categories for new, single-family homes constructed within the past 12 months include:

Additionally, this year two new categories were created to meet member ― and market — demand.

Multifamily: There is now a multifamily category that honors the finest systems-built multifamily projects, including everything from apartments to town houses.

Universal Design: In addition, BSC has added a universal design category to recognize the growing aging-in-place market.

As in the past, all winners will be featured in the January/February 2007 issue of Building Systems Magazine, as well as on the NAHB Web site, in NAHB publications and through national and local press releases.

For more information, e-mail Cortney Klein at NAHB, or call her at 800-368-5242 x8357.

Registration is open for the Building Systems Councils' SHOWCASE, which will be held Nov. 5-8 at the Doral Golf Resort & Spa in Miami, Fla. Save $100 by registering by Sept. 15.

SHOWCASE features education sessions, an awards event and exhibits geared to the building systems segment of the home building industry.

New Technologies on Display at nextBUILD at Builders’ Show

The latest home building technologies will be on display at nextBUILD™, the newly renamed technology component of the 2007 International Builders’ Show (IBS) from Feb. 7-10 in Orlando, Fla.

“Cutting-edge builders realize that technology is critical not only to their business management, but to their customers, as consumers are demanding state-of-the art technology in their homes,” said Harvey Edwards, NAHB Convention Committee chair and president of Tuscaloosa Building & Land Co. in Tuscaloosa, Ala. “That's why the technology pavilion is one of the most visited sections of the IBS and why the new and expanded nextBUILD™ is sure to be an even bigger draw at the 2007 show."

Formerly called tecHOMExpo, nextBUILD™ will feature more than 200 exhibitors offering both back-end office technologies to help builders improve their business management processes and the top technologies that consumers are asking for in their homes.

The show will also offer several education sessions to help builders implement the new technologies on display. Builder technology forums will be offered to assist builders with specific software issues and demonstrate how technology can help them run a more efficient and profitable business.

These moderated panels that include builders and technology experts will explore such topics as:

Builders will also have the opportunity to get hands-on demonstrations, test drive the latest software solutions and ask vendors questions about their products through nextBUILD™’s interactive computer labs.

Want to Know More About Designations? Ask an Expert

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

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

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

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

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

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

The NAHB Web site, www.nahb.org, gives you access to nearly 5,000 pages of housing industry information and exclusive members-only resources 24 hours a day, seven days a week. Access is fast, easy and free to NAHB members.

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

By logging onto the NAHB Web site, you will have access to twice as much information as non-members — information that will help you stay ahead of your competition.

You will be able to view and read entire sections of content developed just for members, and you will be able to personalize the site to your specific interests.

To learn more, log in and visit the "How to Use" www.nahb.org section in My NAHB.

For questions or help logging in, call 800-368-5242 x0; or e-mail your name, company name, state and phone number to login@nahb.org.

Education Calendar

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

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

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

By logging onto the NAHB Web site, you will have access to twice as much information as non-members — information that will help you stay ahead of your competition.

You will be able to view and read entire sections of content developed just for members, and you will be able to personalize the site to your specific interests.

To learn more, log in and visit the "How to Use" www.nahb.org section in My NAHB.

For questions or help logging in, call 800-368-5242 x0; or e-mail your name, company name, state and phone number to login@nahb.org.

Conference to Look at ‘Houses That Work’

EEBA is known for its “Houses that Work” educational program, which is offered periodically around the country and has been presented at NAHB’s annual Green Building Conference with standing-room-only attendance.

“Houses that Work is kind of a name, and it’s kind of a perspective,” said code consultant and EEBA board member Craig Conner. The annual conference, he said, features seminars that follow the “Houses that Work” philosophy. “It’s builder-oriented, practical advice for building durable, moisture-resistant, energy efficient homes — at a profit,” he said.

Conference sessions include information on sales and marketing as well as construction how-to’s. Among popular speakers returning to the conference will be Joe Lstiburek, whose topic this year is “How to Defeat Al Qaeda with Insulation.”

Other sessions include information on zero-energy homes, selecting the right-sized air conditioning and heating units and multifamily issues.

The report provides the results of market research conducted by McGraw-Hill Construction and NAHB about green building in home construction.

Mark your calendar for March 25-27 for the National Green Building Conference. Visit www.nahb.org/greenbuilding for more information.

Blanco, Nagin to Address New Orleans Rebuilding Summit

A Sept. 29-30 Housing Solutions Summit for home builders, home buyers and investors sponsored by the Home Builders Association of Greater New Orleans will include educational sessions from national and local experts on the regional rebuilding process and include presentations from Louisiana Gov. Kathleen Blanco and New Orleans Mayor Ray Nagin.

The exhibit hall at the Ernest Morial Convention Center, where the summit is being held, will feature building products and services for professionals and for consumers.

The event is free and open to the public. Reservations at the Sheraton New Orleans must be received by Sept. 27. For additional information, visit the Housing Solutions Summit Web page at www.hssno.com.

Ventilating a Breeze With Solar Attic Fans

Now available from many manufacturers as an affordable alternative to conventional fans, solar-powered attic fans cost nothing to operate and can help reduce summertime cooling loads while at the same time providing ventilation without added utility cost, according to ToolBase Services.

The solar-powered fans rely on a small (typically 10- or 20-watt) solar panel to power a DC motor when the sun is shining, says ToolBase. The fans, which exhaust air at a rate of 800 to 1,200 cfm, are installed with intake vents — such as soffit and gable vents — to provide high-capacity powered ventilation without electric operating costs.

Most vents are mounted high on the roof, near the ridge, and combined with soffit and gable vents for balanced intake and exhaust air streams. Solar-powered gable ventilators are also available.

The fans are easy to install. In new construction applications, roofers will usually install powered ventilating units. The solar units eliminate the need for an electrician to rough and finish wire the units. For retrofit projects, a roofer or do-it-yourselfer can install a solar-powered fan using conventional materials, tools and techniques.

Units typically come fully assembled and are self-flashing. Most manufacturers offer clear installation instructions, often with diagrams and pictures. Powered attic vents are designed to be used in conjunction with sufficient intake air vents, such as soffit or gable vents. Units can typically be supplied and installed by a roofing contractor.

The fans retail from about $350 to $600 depending on ventilation capacity, manufacturer and optional features of the unit, such as a thermostat.

Although the solar equipment costs about $200 more than conventional powered fans, it does not need electrical wiring, which closes the gap on the cost of the installed product.

Because the fan motor is powered by sunshine, the highest fan speed typically coincides with the time when attic ventilation is needed the most.

ToolBase warns that if there is inadequate attic intake air and poor sealing between the conditioned space of the home and the attic, powered attic fans can potentially draw air from the house into the attic. This can compromise energy efficiency, increase the risk of attic moisture problems and increase the risk of “backdrafting,” in which the byproducts of combustion are drawn into the house.

The International Residential Code specifies the amount of ventilation required for attics in newly constructed homes. The required vent area can be reduced with installation of a ceiling vapor barrier or ventilators located in the upper portions of the space to be ventilated. The code does not require powered ventilation for attics.

There may be difficulty using solar attic fans in Dade County, Fla. and areas where building products must be approved by the inspection department. The concern in high-wind zones, such as coastal Florida, is that roof penetrations of any sort provide a potential weak point in the building envelope. High winds can blow away protrusions, leaving the building susceptible to damage from the rainwater that accompanies the wind.

Pennsylvania Court Strikes Down Mandatory Sprinklers

Enacted in March 2005, the ordinance would have required the installation of fire sprinklers in all new construction and in all structural alterations of 1,000 square feet or more.

NAHB opposes mandatory residential sprinkler ordinances in single-family residences because they increase the price of the home without providing a commensurate increase in safety.

“This court ruling is important for a number of reasons,” said Brad Elliott, president of the Pennsylvania Builders Association (PBA). “Consumers still have the option to install fire sprinklers if they so choose, but this added financial burden should not be government imposed. It should be an option for consumers to decide.”

To challenge the ordinance, the builders relied on the state building code, which went into effect in 2004 without including measures for residential fire sprinklers. To justify requiring residential fire sprinklers, Schuylkill Township officials argued that it needed them more than other parts of the state because of the area’s traffic congestion, steep roadways along neighboring Valley Forge Mountain and a decline in the ranks of local volunteer fire fighters. The court disagreed.

“In passing the [Pennsylvania Construction Code] Act, the legislature chose not to mandate the use of automatic sprinkler systems in buildings across the commonwealth,” the Court of Common Pleas decision said.

“If general or widespread conditions are sufficient to justify an exemption to the act, then the legislature would have mandated the use of automatic sprinkler systems and not made their use subject to a finding of a need for exemption.”

“It’s easy to understand that the benefits that come from having a Uniform Construction Code arise from its consistent application across the state,” he said. “The code ensures the quality and safety of new home construction in Pennsylvania. If needless variances to the code are granted to various localities, the advantages of having a single building code for everyone will be lost. That’s why the PBA will continue to advocate for a single, uniform building code administered consistently by code officials across the state.

“This court ruling represents a landmark decision because for the first time a court has clarified key wording in our state’s Uniform Construction Code,” he continued. “The court’s order is a win for Pennsylvanians because it protects the uniformity of the state’s residential building code. That benefits everyone by ensuring the construction of safe, high-quality and affordable homes for the state’s residents.”

For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132.

Builders Win in Vermont Case on Storm Water Permits

In a victory for home builders and home buyers, the Vermont Supreme Court on Aug. 25 reversed a regulatory ruling by the state requiring a permit under the federal Clean Water Act for all development involving the discharge of storm water into an impaired body of water.

NAHB had joined the Home Builders and Remodelers Association of Vermont in a friend of the court brief, arguing that permits should only be required on a case-by-base basis, because not every storm water discharge contributes to a violation of water quality standards.

In 2003, the Conservation Law Foundation petitioned the Vermont Agency of Natural Resources to use its “residual designation authority” (RDA) to require storm water permits for certain discharges into five impaired bodies of water. Believing that its RDA was discretionary, not mandatory, the agency denied the petition.

The foundation then appealed the denial of its petition to the Vermont Water Resources Board, which reversed the agency decision, concluding that in two earlier decisions it had conclusively established that each and every discharge of storm water into the bodies of water in question contributed to a violation of water quality standards.

In its amicus brief, NAHB explained that the RDA, which originates in the Clean Water Act, is not a mandatory authority and even when exercised, does not oblige the permitting agency to issue permits to control all storm water discharges, outside of the categories of discharges specified for regulation in the Clean Water Act. NAHB also explained to the court that the RDA must not be exercised categorically.

Agreeing with NAHB’s position, the court reversed the decision of the Water Quality Board and sent the matter back to the Agency of Natural Resources.

For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132.

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

The publication has been prepared to help builders comply with the U.S. Environmental Protection Agency's storm water requirements, and includes information on state permitting programs and more than 50 of the most commonly used Best Management Practices.

Also included are tips on compliance, including how to handle visits from inspectors.

Supreme Court Asked to Hear Arizona Clean Water Case

NAHB has asked the U.S. Supreme Court to rule in a case involving transferring the Clean Water Act Section 402 permit program from the federal government to the state of Arizona.

At issue is whether Arizona meets the nine standards under Section 402b of the federal Clean Water Act that the U.S. Environmental Protection Agency (EPA) uses to determine whether to delegate administrative authority for the permitting program to state agencies. If the standards are met and a state agency wants the authority, EPA must transfer the program.

After determining that Arizona did meet those standards, EPA transferred the permitting authority to the state. The Defenders of Wildlife then sued EPA for not considering the needs of endangered species when it made its decision. The U.S. 9th Circuit Court of Appeals agreed with the environmental group, making the EPA responsible for issuing discharge permits in Arizona.

In June, the circuit court agreed to a joint request from EPA and NAHB to delay its ruling so that they could consider submitting a writ of certiori asking the Supreme Course to take up the case.

The question, according to NAHB environmental and legal experts, is whether a court can supplement the nine criteria for state permitting authority with requirements of the federal Endangered Species Act (ESA).

Because the case raises significant questions on the connection between the Clean Water Act and ESA, NAHB is hopeful that EPA, the Department of Interior and the Department of Justice also will ask the Supreme Court to hear the case. If EPA does so, “the chances that the court will take the case increase exponentially,” said Duane Desiderio, NAHB’s staff vice president for litigation.

Forcing EPA to issue discharge permits in Arizona could result in more delays for home builders in the state. "The EPA at this point is not in a position to issue permits in Arizona, and that could put our members in limbo," said Desiderio.

"If Congress wants the delegation process to include endangered species concerns, it could amend the Clean Water Act. But it has not," Desiderio 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 on the protected pygmy owl range from five to 18 months. When added to the cost of onsite mitigation and project modifications, this adds between $1.7 million and $2.7 million to the cost of a typical residential development.

EPA has until the end of this month to file. “We are very hopeful that they will,” Desiderio said.

For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132.

Endowment Offers Student Grants to Attend IBS

The NAHB Past Presidents/National Housing Endowment Matching Funds Program is providing the grants to the students through their state and local home builders associations (HBAs). Attending the builders’ show has proven to be instrumental in helping students learn outside the classroom and prepare for careers in the home building industry.

The application announcement is being mailed to all NAHB Student Chapters and HBA executive officers. Applications are available online at the National Housing Endowment’s Web site, www.nationalhousingendowment.com.

Applications must be returned to the Home Builders Institute by Friday, Oct. 13. For more information, e-mail Page Browning at HBI, or call her 800-368-5242 x8918.

For information on additional scholarship opportunities available through the National Housing Endowment, the philanthropic arm of NAHB, go to www.nationalhousingendowment.com.

Home Depot Marketing Storm-Safe Room From Dupont

CNNMoney.com reported last week that Home Depot is test marketing Dupont’s StormRoom™ in Houston and other locations in Texas. Reinforced with KEVLAR®, the rooms are designed to withstand strong winds from tornadoes and hurricanes.

The Dupont StormRoom can be added to an existing home or incorporated into the design for a new home, according to the manufacturer.

The room has been designed to endure wind speeds of up to 250 miles per hour, and Dupont said that in independent impact tests it withstood repeated hits by building timbers fired at speeds equivalent to those experienced in Category 5 hurricanes and F5 tornadoes.

The rooms are reinforced with KEVLAR®, the same fiber that is used in bullet-resistant vests, Dupont said. Pound for pound, it is five times stronger than steel.

The Storm Room is solidly anchored to concrete foundations with chemically-set anchors strong enough to help resist the wind uplift generated by the most powerful storms.

The room can be created in any wall length from 4 feet to 12 feet as a customized system or a standard size. Equipped with a security door and keypad, the safe room is a fully functional living space. The room is ventilated and electricity, plumbing and a few finishing touches can be added for the space to double as an extra closet, powder room or even a wine cellar.

The room can be installed in less than one day by an authorized Dupont installer, and in new construction it can be installed without interrupting the building cycle — from bare slab through framing or drywall.

For more information on the StormRoom, click here, e-mail Dupont or call 800-448-9835.

NAHB-Produced Programs on HGTV & DIY This Week

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

HGTV is seeking developers, builders and architects to create the 2008 and 2009 dream homes for the network’s Dream Home Sweepstakes. To learn more, click here.

The NAHB Production Group is a full-service, self-contained, media production unit creating programming for cable television, broadcast television, non-profit, museum and corporate clients. Productions range from magazine format shows for general audiences to museum-installation videos for specialized use.

The production group includes award winning journalists, writers and photographers with experience in broadcast, documentary and corporate television.

Explore the latest housing industry news and information on www.nahb.org — the official public and members-only Web site of NAHB.

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.

Harry and Ann Pryde Named Founding Advocates

Harry and Ann Pryde were named the newest Founding Advocates of the National Housing Endowment for committing a donation of six figures to the leadership and growth of the endowment, the philanthropic arm of NAHB. Their donation will go toward the endowment’s unrestricted fund.

Harry Pryde, the 1983 president of NAHB, is the founder, president and CEO of Pryde Corporation and has built and developed more than 3,000 homes, apartment complexes, office buildings, convalescent centers and condominiums in Washington state. He also is an NAHB life director and a 1989 inductee into the Housing Hall of Fame.

“Harry and I were very impressed by the broad spectrum of issues that the endowment addresses, specifically the scope of the education programs,” said Ann Pryde. “We see our gift as an opportunity for the leaders of today to reach into the future and touch the leaders of tomorrow.”

“NAHB was profoundly wise in creating the National Housing Endowment,” she continued. “Housing is part of the larger fabric of a community and affects all areas of our society. This gift is part of Harry’s commitment to his community and desire to enrich the industry and touch future leaders. What the endowment has done already and what it is going to do is something that the board of NAHB should be proud of.”

The Prydes’ donation will be used to support innovative and effective programs that further education, training and research for the housing industry ― specifically the recently announced Home Building Education Leadership Program (HELP) created to triple the number of college graduates entering residential construction management during the next decade.

He serves in numerous community organizations, and he and Ann are active philanthropists and volunteers with many civic, arts and academic organizations. This year, Pryde also will be named a Distinguished Alumni at the University of Washington Graduate School of Public Affairs.

“The endowment’s board of trustees is very thankful to Harry and Ann Pryde for their generous contribution,” said Gary Garczynski, the endowment’s chairman and 2002 NAHB president. “We will honor this gift by working diligently to open doors to careers in residential construction management for students across this country.”

“Harry’s motto while he was the NAHB president was, ‘Shelter for the People; Jobs for the Economy.’ Through this gift we will ensure the continued strength of our industry,” Garczynksi added.

For more information, e-mail Troy Patterson at the National Housing Endowment, or call him at 800-368-5242 x8483.

Free NAHB Video Instructs How to Deal With the Media

A free, new video from NAHB provides members and HBAs pointers on how to talk to reporters when contacted for interviews for stories.

With home building a top issue among local, regional and national news organizations, the quick, seven-minute video summarizes what to do when contacted by a reporter; how to prepare for an interview; how to respond to reporters' questions; how to avoid common mistakes people make when conducting an interview; and more.{{MORE}}

The video also provides a superb refresher to NAHB’s spokesperson training program.

To access the new NAHB media relations video and tip sheet, visit www.nahb.org/mediaguide on the “members only” side of the NAHB Web site.

In addition to the media relations video, NAHB offers a host of other public relations resources tools, including a PR Toolkit, spokesperson training and talking points on relevant issues. All of these resources can be found on the NAHB Web site by clicking here. Or, contact NAHB Public Relations for help.

Take the Solveras Savings Challenge and Save; or Make $50

NAHB members will average $1,870.03 profit on 2006 credit card sales. How much will your business save on credit card processing costs?

Find out with the NAHB Credit Card Processing Program’s free savings analysis.

This powerful tool will show you exactly what you are paying now and how much additional profit the NAHB negotiated MasterCard and Visa processing rates through Solveras could put back in your pocket every month.

If it doesn’t show any savings on your overall monthly credit card processing costs, Solveras will send you $50.

GM $500 Off Exclusive Offer for NAHB Members

During 2006, qualifying NAHB members are eligible for a $500 offer on most GM vehicles.

Throughout 2006, qualifying NAHB members are eligible for a $500 exclusive offer on most GM passenger cars, light-duty trucks, vans and SUVs.

GM NAHB Affinity Cards and details on this offer were mailed directly to NAHB members from GM, and members should use the affinity card when purchasing a qualifying vehicle.

Members who have misplaced or otherwise do not have a GM NAHB Affinity Card may print out their own replacement cards in order to show member verification to a GM dealer. Note: Members must be logged in to www.nahb.org in order to print their replacement card.

Members with a www.nahb.org login should go to www.nahb.org/MA and click on the “GM Exclusive Offer.” This will take members to a Web page with program details and instructions for printing a replacement card.

There are also instructions for members who do not have a login (they will be sent to www.nahb.com/loginGM and returned to the page to get a replacement card).

For more information, e-mail Tiffany Smith at NAHB, or call her at 800-368-5242 x8273.

For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to www.nahb.org/MA.

Explore the latest housing industry news and information on www.nahb.org — the official public and members-only Web site of NAHB.

UPS Offers Up to 30% Discount to NAHB Members on Shipping

NAHB and UPS, the world’s largest package delivery company, have joined forces to offer NAHB members discounts of up to 30% on shipping.

The NAHB shipping discounts include domestic air and ground, international export and international import.

Association members can also take advantage of hassle-free on-line shipping, 24/7 access and advanced package tracking at your fingertips.

NAHB members are eligible for discounts up to 30% to help manage costs with no catch — and no minimums.

The shipping discounts — which increase the more packages or letters the user sends — will be applied once enrollment is complete.

The enrollment process is fast and easy and is available to NAHB members through the Web site: www.savewithups.com/nahb.

For more information on UPS savings and the complete Member Advantage program, visit www.nahb.org/MA.

Explore the latest housing industry news and information on www.nahb.org — the official public and members-only Web site of NAHB.

Find Key Employees Through the NAHB Online Career Center

NAHB is hosting an online building industry-oriented career center that provides members with a cost-effective recruiting solution that makes locating qualified candidates and advertising open positions faster and easier.

NAHB members using the NAHB Career Center will receive a 20% discount off of standard rates for job postings. For a complete listing of all rates, click here.

The career center was created in collaboration with ConstructionJobs.com, a leading employment resource for the construction, design and building industries.

Nation’s Building News readers can visit the site by using the NAHB Career Center tab at the bottom of the issue’s headlines, or by going to the NAHB Web site or www.nahb.org/careers.

Nation's Building News Online: September 11, 2006

Housing Not Falling Apart, State Governors Told

Big Builders Play It Safe on Innovative Technology

Play Builders' Free Online Pro Football Game for Prizes, Fun

Share Nation's Building News With Your Staff. It's Free.

Nation's Building News Will Not Be Published Sept. 18

Massachusetts Home Made From ‘Big Dig’ Scraps

KB Home Cuts Holdings as Market Cools

Silicon Valley Ranks Dead Last in Ranking of U.S. Tech Hubs

A Star’s Down-to-Earth Role

Contractor Pitches Saving Green by Going Green With Biodiesel

On With the Model Home Show

Letter to the Editor: Keeping Ground Water Clean

‘Flippers’ Could Get Burned by Market Correction

Builders Beware — You Could Be a RESPA Target

Teleconference to Examine State of Latino Homeownership

Eye on the Economy: Housing Downswing Still Is Underway

Builder's Tip: A Time Saver for Installing Closet Shelf Cleats

Preferred Lender Strategies Can Help Sell Homes

Enter Pillars to Be 'Best of the Best' in Multifamily

Diversifying During Stressful Times Could Spell Disaster

Design, Codes, Trends Are Hot Topics at BSC SHOWCASE

Sept. 15 Entry Deadline Looms for BSC Excellence Awards

New Technologies on Display at nextBUILD at Builders’ Show

Want to Know More About Designations? Ask an Expert

Education Calendar

Conference to Look at ‘Houses That Work’

Blanco, Nagin to Address New Orleans Rebuilding Summit

Ventilating a Breeze With Solar Attic Fans

Pennsylvania Court Strikes Down Mandatory Sprinklers

Builders Win in Vermont Case on Storm Water Permits

Supreme Court Asked to Hear Arizona Clean Water Case

Endowment Offers Student Grants to Attend IBS

Home Depot Marketing Storm-Safe Room From Dupont

NAHB-Produced Programs on HGTV & DIY This Week

Harry and Ann Pryde Named Founding Advocates

Free NAHB Video Instructs How to Deal With the Media

Take the Solveras Savings Challenge and Save; or Make $50

GM $500 Off Exclusive Offer for NAHB Members

UPS Offers Up to 30% Discount to NAHB Members on Shipping

Find Key Employees Through the NAHB Online Career Center

Calendar of Events