Nation's Building News Online: October 16, 2006Print All Articles Text Version |
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Builders Work With Lenders to Heat Up Sales in Chilly MarketsEntering the fall months, home builders from around the country are reporting success in boosting sales in a cooling marketplace by partnering with lenders to provide financial incentives for their buyers, according to information published in NAHB’s Back to Basics toolkit. Introduced last month, the online kit is designed to provide association members with materials that will help them respond to the new challenges of today’s slower environment for home sales. “Builders and our builder joint venture partners have been contacting us about how we can partner with them to sell more homes as they get ready for the fall market,” says Paul Fazzini, vice president of American Home Bank in Lancaster, Pa. One proven option for registering more sales is to partner with a preferred lender and provide affordability tools to buyers, Fazzini says. Many of these tools can work quite well in the current marketplace, where high home prices have become the key factor discouraging prospective buyers. As a result, consumers are finding they are able to qualify and afford the home of their dreams now, he says, instead of waiting for interest rates to drop further or their incomes to increase. Howard Hirsch, of Keystone Custom Homes, said that he has worked with American Home as his preferred lender and joint venture partner to design financing incentives that reduced the monthly payments from $1,643 using conventional financing, to $1,124. The substantial reductions in payments enabled him to sell 18 homes in one weekend, he said. “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 reduced the risk of walk-aways. Another builder designed a program to sell spec homes in his inventory, using an incentive that reduced the mortgage payment from $2,100 to $1,700. Not only were a number of specs successfully sold, but traffic generated by the special financing offer resulted in several additional sales. Still another builder used a lender’s program to offer borrowers 95% financing with no mortgage insurance payments and without the hassle of a first and second piggyback mortgage. And another used a construction-to-permanent loan tool that required no payments during the construction period and pays the builder directly within 48 hours of a draw request. Among financing options are buydowns, forwards and construction-to-permanent financing. “These types of preferred lending arrangements are not usually found in a typical commercial banking environment,” Fazzini says, so builder should consult with their preferred lenders to find out what incentives will give them the “most bang for the buck.” The Back to Basics article provides a description of several financial strategies that can help sell homes:
“Time is of the essence and it pays for all of us to be flexible and nimble in this environment,” Fazzini says. To access the Back to Basics toolkit, NAHB members can go to www.nahb.org/toolkit. You must be an NAHB member and have a login to www.nahb.org to view this product. To create a login, go to www.nahb.org or click on the log-in button on the main menu bar. If you need assistance, call the NAHB Member Service Center at 800-368-5242. For more information about American Home Bank’s joint venture Web site, click here. FEMA Gives Systems Builders Chance to Help Rebuild Gulf CoastThe Federal Emergency Management Administration is preparing to parcel out money from a $400 million federal grant to encourage hurricane-damaged states to submit housing designs and products that are more cost-effective, comfortable and durable than the travel trailers and manufactured homes now supplied by the agency. The grants present a huge opportunity for NAHB members, said David Endy of Stratford Homes, a Wisconsin-based modular building company. Endy is chairman of the NAHB Building Systems Councils, which includes leaders in the modular, panelized, concrete and log home building industries. “$400 million is a lot of money, and a lot of homes,” he said. For example, the Katrina Cottage, which debuted during last January’s International Builders’ Show, could be built using similar floor plans and elevations as a panelized or modular home. “There are manufacturers who could build these in a factory setting and then ship them down there,” Endy said. “These are smaller homes, but they could go up quickly and be a huge upgrade from the FEMA trailers.” FEMA’s Alternative Housing Pilot Program is targeting non-profit organizations and industry groups as well as home builders, who are invited to come up with innovative, creative homes “that can be produced, transported and installed in a timely manner and in appropriate quantities, that are adaptable to a variety of site conditions, and that will facilitate sustainable and permanent housing,” according to the FEMA announcement. The ideas must be submitted through designated state agencies in Alabama, Florida, Louisiana, Mississippi and Texas. The agencies that are awarded the pilot program money can spend it on the chosen programs. Endy is encouraging Building Systems Councils members and other NAHB builders to contact the Gulf Coast state agencies with ideas for pilot projects in the affected states. For a list of state contacts, click here. “The Alternative Housing Pilot Program is an opportunity for the states, the housing industry and other organizations to help FEMA and Congress explore new ideas for providing post-disaster housing to people in need,” FEMA said on its Web site. "This Gulf Coast pilot will have national applicability, as it will help FEMA consider new ways to house people quickly and efficiently for future disasters," said FEMA Director David Paulison in an agency press release. “For systems builders, there is some real opportunity for manufacturers to develop some housing that can help the Gulf Coast rebuild faster than traditional housing can,” Endy said. “With the market slowing down right now, this is a good time for something like this to come out. If we can keep manufacturing facilities building something, it’s hugely helpful.” Click here to learn more about the grant application, which is due Oct. 20. For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132.
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For more information, go to www.nahb.org/bfl. 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 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. All Crashes Should Be So GoodNational housing sales numbers are merely receding to 2003 levels, “and that was a record year,” says Doug Duncan, chief economist of the Mortgage Bankers Association. Serious sellers and buyers shouldn’t be misled by predictions of imminent crashes, he says, because the reports of doom ignore the positives in the current marketplace, particularly mortgage rates. “The rhetoric is just way overwrought,” he says. Donald Kohn, the Federal Reserve’s vice chairman, views the housing slowdown as a “correction” — a cyclical rebalancing of a marketplace that got too hot for too long in some parts of the country, and is now heading back toward more “normal” conditions, where prices are more in line with what consumers can afford. “The reported declines in house prices in a number of areas should help to facilitate the rebalancing of supply and demand in those markets,” Kohn said. In contrast to past housing downturns, he also noted that today’s “unusually low” long-term mortgage rate environment “stands in sharp contrast to some past downturns in the housing market that followed actions by the Federal Reserve to tighten credit conditions significantly.” Lower asking and selling prices on houses could help shorten the correction process, increasing the number of potential buyers, especially if mortgage rates dip below 6% in the coming months, which some Wall Street capital market analysts expect. (www.washigntonpost.com)
Moskow Joins Chorus of Fed Officials Shying From Lower RatesThe fifth Fed official since Oct. 4 to play down a possible cut in interest rates, Federal Reserve Bank of Chicago President Michael Moskow said that central bankers may need more rate increases to curb inflation. “Some additional firming of policy may yet be necessary to bring inflation back to a range consistent with price stability in a reasonable period of time,” he said last week. At their meeting on Sept. 20, policy makers on the Federal Open Market Committee (on which Moskow is not a voting member) saw a “substantial risk” that inflation may not recede as expected. “My current assessment is that the risk of inflation remaining too high is greater than the risk of growth being too low,” Moskow said, although he did acknowledge that weakness in the housing sector is “the most notable” factor restraining economic activity and “there is uncertainty about how important this factor will be for overall growth.” David Seiders, chief economist of NAHB, said he expects the U.S. housing market to slide for the rest of the year, subtracting about one percentage point from second-half economic growth. (www.bloomberg.com)
It’s Been a Bumper Crop of Bad News for SalinasThe agricultural city of Salinas, Calif., the largest in Monterey County, is still reeling over last month’s spinach scare, with a local grower last week voluntarily recalling 8,200 cartons of lettuce that may have been irrigated with water contaminated with E. coli, but housing affordability is a more stubborn problem. Only 3.5% of the city’s households can afford the area’s median-priced $610,000 home, according to a survey conducted by Wells Fargo Bank and NAHB, making Salinas the least affordable city with a population of less than 500,000 in the U.S. Real estate broker Rafael Ramos, who advertises in Spanish that he can “open the door to your dreams,” sells Salinas’ pricey homes primarily to a shrinking pool of agribusiness managers, corrections officials from nearby prisons and even workers from the Silicon Valley, which is more than an hour away. But about 30% of the homes he sells go to two or even three families cramming in together. “They just can’t make it here,” says Ramos, a native of Mexico who used to work in the lettuce fields and peddle CDs at flea markets. Tom Carvey, head of a pro-growth group called Common Ground, says that Salinas, whose 155,000 population is 70% Latino, has been hemmed in by county land-use policies advocated by the wealthier, predominantly white residents of the Monterey peninsula. (www.latimes.com)
Nightmare on Wall StreetWith Halloween approaching, financial experts have been looking for five factors that could frighten the markets even as the Dow hits all-time highs, and the housing market is one of them. An unexpectedly sharp slowdown could be a downside risk for the market, analysts say. “There is still likely more pain and suffering to come before we can close the books on this housing cycle,” said Liz Ann Sonders, chief investment strategist at Charles Schwab, in a Sept. 21 report. “And the harder housing falls, the harder it will be for the economy to land softly.” Still, some see the weakness confined to housing, while other maintain the worst could be over. "Gains in nonresidential and public construction spending have offset the drop in residential construction,” according to Ed Yardeni, chief investment strategist at Oak Associates. “Will the housing market lead to an economy-wide recession?” he asks in an Oct. 10 note. “Not in our forecasts.” In another scary area, some investors are already looking forward to the possibility that the Fed will cut interest rates sometime next year to spur economic growth. The market will begin to price in this prospect during the fourth quarter, says Jeff Kleintop, chief investment strategist for PNC Advisors. However, there’s a risk that the Fed will not cut rates as soon as investors hope, other analysts say. No rate cut by early 2007 is a serious possibility, and it would hurt stocks and bonds, according to David Rosenberg, North American economist at Merrill Lynch. (www.businessweek.com)
Analysis: The Region Can Relax About Housing ‘Bust’After unprecedented growth from 2003 to 2005, the current real estate correction shouldn’t last too long in the Greater Washington region as jobs continue to grow and the local economy remains strong, according to Greg Leisch, CEO of Delta Associates, a real estate research firm based in Alexandria, Va. “Is there a housing bust? I think not,” Leisch says. “It’s a return to normal. We don’t have two key prerequisites for a bust — and that’s an overproduction of housing and a trauma to the economy.” Condo conversions have dropped off considerably and Delta Associates projects that condo sales will drop from 13,500 in 2005 to 8,000 to 8,500 this year. However, with some projects getting canceled or flipped to apartments, and with more than 4,000 condo units removed from the area’s three-year pipeline in the third quarter, the slower growth in supply should bring the condo market back to normal. In the meantime, apartment properties are enjoying a surge in popularity as buyers temporarily shy away from condos. At 491,000 units, the Washington apartment market is the third-largest in the nation, behind New York and Los Angeles, but even with all those units the local market had a miniscule 1.4% vacancy rate in the third quarter. Doug Firstenberg, a principal of Bethesda, Md.-based Stonebridge Associates, which has a pair of residential developments under construction in the District and is planning a 250-unit condo and retail complex in Bethesda, is counting on job growth. “Clearly, things have slowed a bit,” he said, “but the market will always correct itself. By some estimates, this area is going to generate at least 55,000 jobs a year for 2007 and 2008, and that’s a conservative estimate. If you look at it from that perspective, we’ll continue to have an influx of people who want to live here.” (www.washington.bizjournals.com)
Reports of Condo Market’s Demise Greatly ExaggeratedThe average price per square foot of apartments in Manhattan set a record $1,028 in the third quarter and was 6% higher than a year ago, according to Gregory Heym, chief economist for Brown Harris Stevens. According to a report by Jonathan Miller of Miller Samuel, the average sales price of a Manhattan apartment fell to $1.29 million in the third quarter from a record high in the second quarter, but the average sales price was still 12.1% higher than a year ago. “The press has been looking for a story for some time to herald the demise of the residential real estate market, and, as the saying goes, those reports have been greatly exaggerated,” said Robert Ivanhoe, the chairman of the national real estate practice of Greenberg Traurig LP. Clearly, however, Manhattan’s condo boom of the past few years reached its peak about 12 months ago, has cooled and the bloom is off the rose. “New York City remains a very desirable place to live,” said William McCahill, a partner at Apollo Real Estate Advisors. “Once the market perceives that prices have hit the floor, demand will return, stronger than most expect. Right now the market sees a falling knife which no one wants to grasp because of fear of injury. Once the knife hits the floor, the fear will be gone.” (www.nysun.com)
U.S. Builders Seek to Open Up Lumber Trade With RussiaAddressing the International Forestry Forum in St. Petersburg, Russia on Oct. 11, U.S. home builders offered to share their technology with their Russian hosts and encouraged them to boost exports of softwood lumber and other wood products to America. "We support opening up competition in the U.S. lumber market because we know that it will be beneficial for those families in our country who want to buy homes," said Jerry Howard, NAHB’s executive vice president and CEO. “We also appreciate the benefit it will bring to our home builders, who are seeking a steady supply of affordably priced lumber." Howard and NAHB Immediate Past President David Wilson, a home builder from Ketchum, Idaho, represented NAHB and the International Housing Association (IHA) at the conference. NAHB serves as the secretariat of the IHA, which was established in 1984 to provide a forum for home builders and related industry groups around the world to share information and discuss issues related to the housing industry. As a result of environmental and regulatory policies that have greatly reduced timber harvests from public lands, the U.S. today does not have the domestic capacity to meet its demand for lumber. Last year, more than 38% of the lumber used in the U.S. was imported, with Canada supplying the bulk of that amount. However, a new softwood lumber accord between the U.S. and Canada that took effect on Oct. 12 will create a complex system of border taxes and quotas that will artificially raise lumber prices during periods of normal or slow demand, and thereby harm housing affordability. The pact is also expected to cause new uncertainties for U.S. builders over the availability and price of Canadian lumber. "Access to a reliable, steady supply of lumber is the lifeline for any American home builder," said Wilson, who provided conference participants with an overview of light-frame wood construction techniques in the U.S. housing industry. "We believe that lumber trade barriers impose an unreasonable burden on U.S. home buyers and on the industries that depend on adequate, affordable supplies of lumber to provide the housing and other vital goods and services America needs." While Howard noted that the new trade pact is a misfortune for Canada, he said it represents an opportunity for Russia and the rest of Europe to increase lumber exports to the U.S. over the long term. "Today, the U.S. is overly reliant on Canadian imports to meet its lumber needs," said Howard. "We are reaching out to you to correct this problem and we are looking to Russia to add equilibrium to our market for this essential commodity for the home building industry.” "The Joint Center for Housing Studies of Harvard University projects 14.6 million household formations over the next 10 years," he added. "In the next 10 years, we conservatively estimate that we will need to construct 18 million new homes. We want to work with you to open up this new trading opportunity." During their week-long visit to Russia, Howard and Wilson also held productive talks with representatives of the Builders Association of Russia, the Union of Timber Manufacturers and Exporters of Russia, Ilim Pulp Enterprise, BaltRoss, Slavyansky DSK and the Association of Wood Housing. The meetings came one week after Howard visited Stockholm to discuss with Swedish trade and industry officials ways to secure new import sources of softwood lumber and other wood products and to export American building systems and log homes technology. NAHB's European visits to seek additional sources of softwood lumber follow the association's September board meeting in Salt Lake City, where policy was approved to address the pending U.S/Canada trade pact. The board resolved (a members-only link) that NAHB should work with the governments and industry of other countries to facilitate softwood lumber imports and encourage the use of alternative building materials wherever practical in order to protect the interests of American home builders and consumers. Earlier NAHB policy urges the U.S. government to open up additional forest lands for logging. For more information, e-mail Michael Strauss at NAHB, or call him at 800-368-5242 x8252. Attend the NAHB Construction Forecast Conference in Person or on the Web 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. If you can't attend in person, sign-up for the Webcast. To register for either, visit www.nahb.org/cfc. Want to Know the Housing Starts Through 2014? Find out in HousingEconomics.com’s Long-Term Forecast. HousingEconomics.com includes downloadable Excel tables featuring the housing starts forecast, GDP, demographics and more. To learn more, visit www.housingeconomics.com. Builders Can Earn Income From Settlement Service ReferralsAs long as they comply with Section 8 of the Real Estate Settlement Procedures Act (RESPA), home builders have the opportunity to earn extra income by referring their customers to an affiliate settlement service provider, according to Phillip Schulman, Esq., a partner in the Washington, D.C. office of Kirkpatrick & Lockhart Nicholson Graham LLP. “Home builders are in a position to refer their customers to a number of settlement service providers,” says Schulman, “including mortgage companies, title insurance agencies and closing attorneys, to name a few. Thus, builders often enter into affiliated business arrangements (AfBAs) with these settlement service providers to create joint venture mortgage companies or AfBA title insurance agencies.” Builders tend to be merely investors in the AfBAs, he says, but “recent RESPA enforcement cases have targeted AfBAs and the builders who own them, making it imperative that these entities comply with the law’s requirements.” To permit builders and other settlement service providers to receive a portion of the income generated from AfBAs, Congress in 1983 determined that dividend payments made in connection with AfBAs owned by builders and other providers do not violate the law as long as three requirements are met:
HUD’s concern is that an affiliated entity could refer business to another affiliated entity, such as the AfBA, and accept referral fees masked as returns on its ownership interest. Section 8 of RESPA notably prohibits the giving or receiving of anything of value in exchange for the referral of settlement service business, which includes any services performed in connection with the sale of a house. (For more information, click here to read “Builders Beware — You Could Be a RESPA Target,” which appeared in the Sept. 11, 2006 issue of NBN.) HUD’s criteria for ensuring that an AfBA that meets Congress’s three-part safe-harbor test is a bona fide arrangement include:
However, Schulman advises builders to also consider their resources and business objectives before they decide to create an AfBA:
“As RESPA permits payments in return for actual services provided, a builder still can explore other avenues for ancillary income without the expense of an AfBA or the risk of violating RESPA,” he says. For more information on RESPA and whether an affiliated business arrangement is right for your business and complies with RESPA, e-mail Bill Renner at NAHB, or call him at 800-368-5242 x8597. Or contact Phillip Schulman, 202-778-9027. Attend the NAHB Construction Forecast Conference in Person or on the Web 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. If you can't attend in person, sign-up for the Webcast. To register for either, visit www.nahb.org/cfc. Want to Know the Housing Starts Through 2014? Find out in HousingEconomics.com’s Long-Term Forecast. HousingEconomics.com includes downloadable Excel tables featuring the housing starts forecast, GDP, demographics and more. To learn more, visit www.housingeconomics.com. More Home Softening Noted in Report to Federal ReserveWith the nation’s housing market continuing to soften through the start of this month, home builders may have to travel to North Dakota to find truly “robust” market conditions, according to the Federal Reserve's Oct. 12 “Beige Book” report summarizing economic conditions in the 12 Fed districts. While commercial real estate was strong virtually everywhere, with some mixed reports in areas like Chicago and St. Louis, “nearly all districts reported that housing market conditions continued to soften, though several noted that activity increased in some markets,” the report said. “Most districts reported higher home inventories, and several said that home builders and sellers continued to offer incentives to attract buyers.” The report also noted that demand for residential mortgages slowed in the districts of New York; Philadelphia; Cleveland; Richmond, Va.; Atlanta; Chicago; Dallas and San Francisco. And conditions in the labor market, a source of inflationary concerns for the Fed, remained “taut,” the report noted. Labor markets in Boston, Philadelphia, Richmond, Minneapolis and Dallas were characterized as “generally tight,” especially for skilled workers, while the remaining districts noted that job growth was steady to stronger over the preceding period reviewed in the Beige Book. Mortgage Rates Up for the Week Although the Fed appeared to have ended its interest rate hikes this summer, leaving its federal funds rate unchanged at 8.25% at its last two policy-setting meetings, members of the board have indicated that inflationary pressures have still not been reduced to optimal levels, and inflationary concerns helped nudge up mortgage rates last week. The average rate on a 30-year fixed-rate mortgage rose to 6.37% for the week ending on Thursday, Oct. 12, up from 6.30% the prior week, according to Freddie Mac's Primary Mortgage Market Survey. The average rate on a one-year Treasury-indexed ARM climbed from 5.46% to 5.56%. “Renewed concern that inflation is still an issue put some upward pressure on bond yields, which generally translates into higher interest and mortgage rates,” said Frank Nothaft, Freddie Mac’s chief economist. “ARM rates especially felt the weight of increased inflation fears, narrowing the gap between ARMs and fixed-rate mortgage rates. Thus, ARMs may become less desirable.” Here’s how the Beige Book portrayed housing market conditions before Oct. 2 in the Fed regions where specific comments on this segment of the economy were provided:
Attend the NAHB Construction Forecast Conference in Person or on the Web 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. If you can't attend in person, sign-up for the Webcast. To register for either, visit www.nahb.org/cfc. Want to Know the Housing Starts Through 2014? Find out in HousingEconomics.com’s Long-Term Forecast. HousingEconomics.com includes downloadable Excel tables featuring the housing starts forecast, GDP, demographics and more. To learn more, visit www.housingeconomics.com. Useful Links to Monitor Economic and Housing TrendsThe following are links to useful information from government agencies and NAHB that will enable you to monitor the housing market. To access the latest information available, simply click the links.
Attend the NAHB Construction Forecast Conference in Person or on the Web 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. If you can't attend in person, sign-up for the Webcast. To register for either, visit www.nahb.org/cfc.
Builder’s Tip: Using a Tape Measure as Fish TapeI needed to pull wire in a wall to hook up some speakers on my porch. I thought about buying a fish tape, but the cheapest one I could find was $17 — too much for a one-time-use tool. Thinking about the problem on the ride home from the store, I hit on the idea of using my 25-foot tape measure instead. Pulling the tape all the way out, I found that its inner end has a slot that hooks to the rewind spring. Here is what I did:
— Jeff Van Dine, Gold Bar, Wash. Tips & Techniques provided by Fine Homebuilding.
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. To view these publications online, click here, or call 800-223-2665. Log In and Explore www.nahb.org Explore the latest housing industry news and information on www.nahb.org — the official public and members-only Web site of NAHB. With an expansive "For Consumers" section, www.nahb.org provides a credible source of information on home building and remodeling for your customers. The Web site also provides a wealth of member discount programs and business resources developed for you. Plus, to make it easy to get what you need, the Web site has built in time-saving features like My NAHB to customize the site to your interests, My Favorites so you can select specific links to appear on your www.nahb.org Home page and online Staff Directories so you can find NAHB housing industry experts quickly and easily. Use www.nahb.org to stay on top of the latest housing industry news, access your council and committee materials, register for courses and events and stay abreast of NAHB’s efforts to promote housing. Log in today to start taking advantage of this free NAHB member benefit. SBA Puts Federal Compliance Resources on One Web SiteBusinesses with fewer than 20 employees spend an average of $7,647 per employee to comply with government regulations — 45% more than larger firms with 500 or more employees, according to the U.S. Small Business Administration (SBA) Office of Advocacy. To help small businesses navigate the myriad federal government rules and regulations ― but not necessarily ease compliance ― the SBA launched a Web site earlier this month that consolidates compliance resources from a number of federal agencies so small businesses, including small and mid-sized builders, can find them online in one place. The Web site, www.Business.gov, includes more than 5,400 forms pertaining to environmental, health and safety, and tax compliance, among other areas. It also includes sections organized by industry, such as housing and real estate, and construction and facilities. “This is new, to have small business compliance resources in one place,” said Nancy Sternberg, project manager for the SBA’s Business Gateway Project. “One of the greatest challenges businesses face in dealing with the federal government is the large number of different agencies they must work with, each with its own set of regulations and each with its compliance information organized differently.” The government has more than 192,000 government regulations that address different aspects of small business, according to the National Federation of Independent Business. The Business.gov Web site provides one Internet source for businesses seeking information on how to comply with government regulations. It includes contacts on compliance; SBA advice on starting, financing and managing a business; resources on state-level regulation; and a business resource library. Some housing-related compliance information includes environmental compliance, physical inspection documents and guidance, real estate regulatory programs, Real Estate Settlement Procedures Act (RESPA), single-family housing FAQs and more.
NAHB Has More Than 250 Resources to Help You Run Your Business More Profitably Go to NAHB's Business Management Tools Web pages (available to members only) for instant access to more than 250 timesaving, moneymaking and cost-cutting business resources to help you run your business more profitably. Get guidance on accounting and financial management, business strategy, computers and information technology, customer service, human resources and more. Resources are added weekly, so bookmark www.nahb.org/biztools to go directly to these vital business management resources. Local and state home builders associations can link directly to www.nahb.org/biztools from their Web site and give their members instant access to these resources. It will make your HBA's Web site the place to go for the information and guidance that members need to succeed. Subscribe to NAHB’s Business of Building e/Source NAHB’s Business of Building e/Source is your monthly electronic guide to the hot issues and emerging trends in home building business management. You’ll find practical advice, tricks of the trade and sound business guidance — all delivered monthly, straight to your desktop, in a quick and easy-to-read format. Business of Building e/Source is available free to NAHB members and their employees. To subscribe, visit www.nahb.org/BoB on the Members Only side of the NAHB Web site. NAHB Technology Solutions Directory Now Online 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. 'How to Thrive in Changing Market' at Custom Builder Symposium
Industry veterans who have been there will discuss how to thrive in a changing market at the 2006 Custom Builder Symposium Oct. 27-29 in the Hyatt Regency Lake Las Vegas Resort, Nev. Onsite Registration Is Available Beginning Oct. 26 Advanced registration is closed. Onsite registration is available beginning 3:00 p.m. Thursday, Oct. 26, in the North Lobby of Hyatt Regency Lake Las Vegas Resort. Custom builders Tom Stephani, Mike Holmes and Paul Montelongo will lead the interactive discussion during a luncheon session on Saturday, Oct. 28, continuing it during roundtables later that day. The symposium features 17 world-class education sessions; a practical take-home workbook packed with tips on marketing, management and customer service; and plenty of networking opportunities. NAHB Custom Builder of the Year to Be Named This year, NAHB's first Custom Home Builder of the Year will be named during a dinner and awards ceremony at the symposium. “This award is the first of its kind,” said Mary Schroeder, chair of the symposium subcommittee. “What makes the award so special is that it will be presented to an outstanding custom home builder by his or her peers.” The celebration will showcase the winner's achievements in constructing one-of-a-kind homes as well as recognize the recipient's leadership in the profession, industry and his community. To register for the dinner, e-mail Marcia Childs at NAHB, or call her at 800-368-5242 x8388. Top-Notch Presenters The symposium will include an impressive lineup of top-notch presenters on topics that matter now, including:
Symposium accomodations at the Hyatt Regency Lake Las Vegas Resort are sold out. Additional hotel accomodations are available at the MonteLago Village Resort, which is less than three minutes away from the Hyatt Regency, and also along the shores of Lake Las Vegas. A free shuttle bus will be available between the MonteLago and symposium activities. To reserve a room at the $189 a night conference rate, call the hotel at 866-787-1945 and reference NAHB or Code 1034WA. To learn more about the Custom Builder Symposium, go to www.nahb.org/custom.
NAHB Has More Than 250 Resources to Help You Run Your Business More Profitably Go to NAHB's Business Management Tools Web pages (available to members only) for instant access to more than 250 timesaving, moneymaking and cost-cutting business resources to help you run your business more profitably. Get guidance on accounting and financial management, business strategy, computers and information technology, customer service, human resources and more. Resources are added weekly, so bookmark www.nahb.org/biztools to go directly to these vital business management resources. Local and state home builders associations can link directly to www.nahb.org/biztools from their Web site and give their members instant access to these resources. It will make your HBA's Web site the place to go for the information and guidance that members need to succeed.
Subscribe to NAHB’s Business of Building e/Source NAHB’s Business of Building e/Source is your monthly electronic guide to the hot issues and emerging trends in home building business management. You’ll find practical advice, tricks of the trade and sound business guidance — all delivered monthly, straight to your desktop, in a quick and easy-to-read format. Business of Building e/Source is available free to NAHB members and their employees. To subscribe, visit www.nahb.org/BoB on the Members Only side of the NAHB Web site. Bill Webb, MIRM, shows you how in “Sweet Success in New Home Sales,” available through BuilderBooks.com. This book provides powerful techniques for selling more homes and making more money in leaner times. This book lays out the proven approaches for crafting and delivering sales excellence. To view or purchase this publication online, click here, or call 800-223-2665.
NAHB Technology Solutions Directory Now Online 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. 55+ Population to Head 40% of U.S. Households by 2012Americans 55 and older will head 40% of the nation’s households by the year 2012, according to new research from NAHB’s 50+ Housing Council discussed during an Oct. 11 teleconference held in conjunction with National Aging in Place Week (October 8-14). “There is no question that the 55+ segment is a large and growing share of the housing market,” said Paul Emrath, a housing policy analyst for NAHB, and the council’s latest research findings, based on the American Housing Survey, have major implications for the nation’s housing industry in the decade ahead. Among those findings:
Cohen, a Georgia-based builder, said that his company designs homes that make it easier for people to age in place. Bathrooms in his homes are designed with showers instead of tubs, which can be difficult for older people to get in and out of, and the company puts backing around the shower and commode so that residents can install grab bars if they are needed. At least one entryway into each home is “stepless” to make it accessible, he added. Older people who don’t want to move can make modifications to their existing homes so that their various needs can be accommodated as they age. According to the latest Remodeling Market Index, 75% of professional remodelers surveyed said that they have observed an increase in requests for aging-in-place modifications. “The strong sentiment is that these clients are preparing for future needs,” said Bill Owens, chairman of NAHB’s CAPS (Certified Aging in Place Specialist) Board of Governors. “Half said they were modifying because they’re living with older people.” According to Owens, common aging-in-place modifications include stepless entries, replacing doorknobs with lever handles, low- or no-maintenance exteriors, open floor plans and improved lighting design. For more information, e-mail Elizabeth Landry at NAHB, or call her at 800-368-5242 x8680. Enter Pillars to Be 'Best of the Best' in Multifamily
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 on April 11-13 at the Westin Diplomat Resort and Spa in Hollywood, Fla. 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. Save the Date for the Multifamily Pillars of the Industry Conference Attend the Multifamily Pillars of the Industry Conference, the premier industry event for the multifamily industry, on April 11-13 at the Westin Diplomat Resort and Spa in Hollywood, Fla. Visit www.nahb.org/pillars for more information. Design, Trends, Codes Are Hot Topics at BSC SHOWCASEBalancing 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.
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. Online registration is closed, but onsite registration is available beginning Nov. 5 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:
Ten Ways to Cope with Housing Market ChangesLet’s face it, we live in a housing industry that is cyclical in nature and always changing. It is often one of the first industries to get hit with a slowdown — but it’s also one of the first to move the economy out of the doldrums. There is no single, cure-all response to market change. You must first develop an attitude that makes it work. You need to be sensitive to what buyers want and will pay for, not what you as a builder think they need. In a tough housing economy, the major objective is not to worry about market share or profitability, but to think “cash flow turnover,” become flexible and maintain liquidity. The following are 10 marketing management guidelines that you can use in today’s challenging marketplace:
Hispanics Less Likely to Respond to Internet Banner AdvertisingWhile Hispanics are more likely to switch to and use the high-speed Internet than other consumer users of broadband, they are less likely to click on Web advertisements, according to a study by Arbitron/Edison Media Research. The study focused on Internet broadcast consumers — known as “Streamies” and considered the ultra-core users of the Internet. Streamies, research has found, are more eager to try new products and services than other Internet users. According to the study, Hispanics showed the highest percentage growth in their use of broadband, but they are less likely to respond to traditional Internet advertising than Streamie users overall. Other findings of the study:
Diversifying? Some Basics About Light ConstructionLight commercial construction is a competitive $50 billion–a–year industry, according to NAHB’s National Commercial Builders Council (NCBC). It can offer home builders an option to buttress their businesses when the residential market is in a slowdown, or when the residential component of a new community has been completed but commercial development is just getting underway. Light commercial projects can range in size from less than 7,500 square feet to more than 100,000 square feet. These include banks, community centers, schools, houses of worship, restaurants, movie theaters, small shopping centers, self-storage facilities and office buildings. Before diversifying into light commercial construction, however, home builders should understand the opportunities available, as well as the key differences between residential and commercial building. Easing Into Commercial Construction Diversifying into commercial construction is much easier for small- and medium-sized home builders who have some basic knowledge of light commercial construction and are willing to apply their talents, resources and skills to smaller projects. Many builders begin diversifying into light commercial by building self-storage facilities. These are easy-to-build, self-contained structures that, like houses, are often wood-framed. Unlike houses, however, they are generally steel-sided. Strip malls and small shopping centers can also provide home builders with a reasonable introduction into light commercial construction. Strip malls are generally easy-to-build, single-story construction. Shopping center construction generally uses structural steel. As builders gain confidence and knowledge with these one-story projects, they can progress to more two-, three- and four-story office buildings. Note the Differences Between Commercial and Residential Customers The differences between customers in residential and light commercial construction are quite striking. In residential construction, customers usually have little or no knowledge of home construction. In commercial work, customers tend to be familiar with construction projects. Either they have already built a light commercial project or they have experience working with one. Either way, these costumers tend to be well-informed of construction practices. When a problem or crisis does occur, the commercial customer is less likely to panic than the residential customer. Commercial customers are aware that problems can occur and tend to be much more patient than residential customers under similar circumstances, although they also expect more from their builder. About three–fourths of the NCBC members began their careers in residential construction. Adding a light commercial construction component is a process that involves hard work, but more importantly, planning. The NCBC provides a variety of useful services to assist residential builders who are interested in diversifying into light commercial construction or expanding into new commercial areas. These include networking, publications, industry information, education, recognition and advocacy. For more information, visit the NCBC section of the NAHB Web site. To become a member of the council, click here (link available to NAHB members only). 'How-to' Manual About Light Commercial Construction Available Through NCBC “Light Commercial Construction for Home Builders: A How-to Manual for Diversifying Your Business,” available through The National Commercial Builders Council (NCBC), can help residential builders who are considering diversifying into light commercial construction. The manual identifies three key areas for home builders who are diversifying into the industry:
For more information about the manual or the NCBC, e-mail Nick Lashinsky at NAHB, or call him at 800-368-5242 x8455. ‘Moving to Commercial Construction’ Available at BuilderBooks.com “Moving to Commercial Construction,” available through BuilderBooks.com, offers the general contractor, subcontractor and designer several step-by-step methods that will make the move from residential to commercial building a successful one. To view or purchase this publication online, click here, or call 800-223-2665. Want to Know More About Designations? Ask an ExpertThe NAHB University of Housing recently implemented “Ask an Expert,” a new service on the NAHB Web site for members seeking or earning designations. "Ask an Expert" allows members to e-mail designation program graduates with questions that will help then earn their CSP, Master CSP, CMP or MIRM designations. The graduates will field questions and concerns ranging from course content, to the designation process, to how the designation has benefited them. So, if you're thinking about enrolling in the CSP, Master CSP, CMP or MIRM designation programs or have already started the necessary course work and have questions or concerns, visit “Ask an Expert” on the NAHB Web site. A variety of designation holders will provide you with guidance and help you navigate the ins and outs of the program. Learn More About The NAHB University of Housing Whether you’re new to the industry, hope to make your next career move or want to improve your company’s bottom line, The NAHB University of Housing can assist you in your educational pursuits. Visit www.nahb.org/education for a comprehensive listing of courses throughout the country. Be sure to visit often in order to view the most up-to-date information in your area. Log In and Discover www.nahb.org The NAHB Web site, www.nahb.org, gives you access to nearly 5,000 pages of housing industry information and exclusive members-only resources 24 hours a day, seven days a week. Access is fast, easy and free to NAHB members. To take full advantage of the exclusive NAHB members-only resources on www.nahb.org, however, you must log in. To create your login:
By logging onto the NAHB Web site, you will have access to twice as much information as non-members — information that will help you stay ahead of your competition. You will be able to view and read entire sections of content developed just for members, and you will be able to personalize the site to your specific interests. To learn more, log in and visit the "How to Use" www.nahb.org section in My NAHB. For questions or help logging in, call 800-368-5242 x0; or e-mail your name, company name, state and phone number to login@nahb.org. Education Calendar
Learn More About The NAHB University of Housing Whether you’re new to the industry, hope to make your next career move or want to improve your company’s bottom line, The NAHB University of Housing can assist you in your educational pursuits. Visit www.nahb.org/education for a comprehensive listing of courses throughout the country. Be sure to visit often in order to view the most up-to-date information in your area.
Log In and Discover www.nahb.org The NAHB Web site, www.nahb.org, gives you access to nearly 5,000 pages of housing industry information and exclusive members-only resources 24 hours a day, seven days a week. Access is fast, easy and free to NAHB members. To take full advantage of the exclusive NAHB members-only resources on www.nahb.org, however, you must log in. To create your login:
By logging onto the NAHB Web site, you will have access to twice as much information as non-members — information that will help you stay ahead of your competition. You will be able to view and read entire sections of content developed just for members, and you will be able to personalize the site to your specific interests. To learn more, log in and visit the "How to Use" www.nahb.org section in My NAHB. For questions or help logging in, call 800-368-5242 x0; or e-mail your name, company name, state and phone number to login@nahb.org. Clean Water Permit Confusion Stalling Building ProjectsAfter watching builders endure almost four months of federal inaction following the June Rapanos and Carabell decisions by the U.S. Supreme Court, NAHB is pressing the U.S. Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers to make good on their commitment to provide regulatory guidance on which waters are under federal jurisdiction under the Clean Water Act and to come up a new regulatory rule in response to the court's ruling. After the justices directed the agencies to identify where they did have jurisdiction under the Clean Water Act and provide consistent policy, the Corps told its district offices that it would be providing this guidance by late July. As of early October, no guidance had been provided. Home builders and developers are receiving conflicting advice from regulators, with some offices refusing to grant permits until the guidance is announced, stalling building projects that might otherwise be approved. “Due to the difficulties in the current permitting process caused by the lack of consistency in the determination of the limits of the Corps’s jurisdiction, our members have a keen interest in the development of immediate, interim guidance and formal guidance promulgated via a rulemaking, to make the permitting process operate more smoothly,” said NAHB Executive Vice President and CEO Jerry Howard in letters to John Paul Woodley, Jr., assistant secretary of the Army, and Stephen Johnson, administrator of the EPA. “Given the opinion that the Corps cannot assert jurisdiction solely on the basis that water might flow into a traditional navigable water, immediate guidance is clearly needed so that field staff can apply a consistent policy when making jurisdictional determinations,” the letters said. The letters also called on Corps officials to continue to issue permits in cases where they have clear jurisdiction, as a July 5 memo from headquarters to district offices instructed them. Since early summer, however, officials have stopped issuing permits in these cases while awaiting guidance. “Permittees should be given the choice of waiting for the guidance or acquiescing to jurisdiction now, with the understanding that it may be reconsidered if it is too aggressive under the guidance ultimately adopted. Such an approach is necessary for the regulated community so that their projects may move forward, as well as for the Corps’ permit writers, to ensure there is no unmanageable backlog in jurisdictional and permitting decisions,” Howard wrote. In his letters, Howard said that the current state of confusion is comparable to the situation faced by builders and developers following a 2001 Supreme Court decision favoring the Solid Waste Authority of Northern Cook County (SWANCC) in its lawsuit against the Corps. Despite the court’s decision that the Corps’ authority did not extend to isolated wetlands, regulators continued to assert jurisdiction in some cases, leading NAHB members ”to experience a tremendous amount of delay and confusion while attempting to determine whether or not their proposed activities are even subject to the [Clean Water Act] Section 404 permitting process,” the letters said. “NAHB strongly supports joint agency efforts to develop both immediate interim guidance and a rulemaking to clarify the agencies’ scope of jurisdiction after Rapanos and SWANCC,” Howard told the two agencies. For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132. Tech Set Lists Features to Make Kitchens GreenA new tech set from the Partnership for Advancing Housing Technology (PATH) provides information on improving the energy-performance of kitchens that can be used for new construction or remodeling. Lighting, refrigeration and cooking account for 41.5% of a home’s energy consumption, according to estimates from the U.S. Department of Energy, and energy is also used in the kitchen for water heating and space heating and cooling. Following are features that are included in PATH’s “Green Kitchen Remodel Tech Set”:
Attend the Green Building Conference in St. Louis Mark your calendar for March 25-27 for NAHB's National Green Building Conference in St. Louis. In addition to education sessions, the conference will feature a property tour of green built homes in the area, the green building awards dinner and a new designation course on green building for builders and remodelers. For more information, visit, www.nahb.org/greenbuilding. Entry Period Underway for Green Building Awards Entries 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. 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. For more information, e-mail Emily English at NAHB, or call her at 800-368-5242 x8366. Get Green Building Intelligence Today at BuilderBooks.com “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. Commuting Costs Outweigh Savings From Remote HousingFor low- and moderate-income families, the money that’s saved by moving further from work can be equaled or exceeded by the extra money that needs to be spent on transportation, according to a new study from the Center for Housing Policy, the research affiliate of the National Housing Conference. The combined cost of housing and transportation for working families averaged 57% of annual income and was fairly consistent across the 28 metropolitan areas that were studied, according to the report, “A Heavy Loan — The Combined Housing and Transportation Burdens of Working Families.” Nationally, the study found that for every dollar a family saves on housing by moving further out, it spends 77 cents more on transportation. “Working families are increasingly moving further from their jobs to find affordable housing,” said Jeffrey Lubell, executive director of the research group. “Yet, we found that many of these families end up spending more on transportation costs than they save on housing. Ultimately, these findings emphasize the importance of coordinating the development of housing and transportation policy, as well as expanding the supply of affordable housing close to both central city and suburban job centers, improving public transit in areas with lower housing costs and reducing the costs of commuting by car for working families.” In 17 of the metro areas studied, the average transportation expenses for families with annual incomes from $20,000 to $50,000 are actually higher than their housing costs, the study found. Overall, working families spend an average of 28%, or $9,700, of their incomes on housing and nearly 30%, or $10,400, on transportation. The transportation costs include auto ownership, auto use and public transportation, and take into account the cost of commuting as well as traveling for school, errands and other daily routines. The combined costs of housing and transportation ranged from a low of 54% of income in Pittsburgh to a high of 63% in San Francisco, but 25 of the 28 areas were within three percentage points of the average combined burden of 57%. The report found that the vast majority of the working-family commuters — more than 85% — drive to work in private vehicles. Where public transit alternatives are most prevalent, higher shares of workers use them: 31% in New York, 14% in Chicago and 13% in Washington, D.C. An average of 12% of commuters are riding public transportation to work in Boston, Honolulu, Philadelphia and San Francisco. Among trends identified in the study:
Workforce Housing Built on Site of Former Training SchoolRecognizing ingenuity in the development, construction and marketing of affordable workforce housing, NAHB honored five communities with its Innovation in Workforce Housing Awards at the International Builders’ Show in Orlando, Fla. in January. In an effort to bring attention to outstanding examples of workforce housing, Nation’s Building News is showcasing the winners of the award in a series of articles. The third development in the series is East Village in Lansing, Mich. Applications for the 2006 awards are available and the deadline is Oct. 27. For the award guidelines and an entry form, click here. Being developed by Abbey Homes in conjunction with Burton Katzman, East Village is a redevelopment project on a 25-acre site that had sat vacant for three decades where there was once a boys’ training school. The $28 million project was financed through private investment and $2.1 million in brownfield redevelopment funds coming from tax increments financing (TIF) and brownfield revenue bonds issued by the Lansing Brownfields Redevelopment Authority. When completed, the community will consist of:
“We are very pleased that we could provide affordable housing and create a community that fits perfectly within the existing neighborhood,” said Scott Auvenshine, chief operating officer of Abbey Homes. “East Village is the largest new housing development in Lansing in the last 30 years, but it blends very well with the existing architecture of the surrounding area.” “We could not have done this without the help and support of the City of Lansing,” Auvenshine said. Looking to redevelop the site, the city has been an active partner in the workforce housing development. “I am very pleased to recognize this year’s award winners,” said Bobby Lunceford, who won a workforce housing award a year ago for his work with Cobb Housing Inc. in Atlanta. “I know from first-hand experience the challenges of providing housing for America’s hard-working men and women.” “Land costs are high, the regulatory hurdles are significant and the time to market can be long and arduous,” he added. “But this is important work. We’ve got to meet the housing needs of our police officers, our teachers, firefighters, nurses and the millions of people across the country in the retail and service industries.” For more information, e-mail Blake Smith at NAHB, or call him at 800-368-5242 x8583. Housing Endowment Wins Award for Service to YouthIn recognition of its generous support for the NAHB Student Chapters and its sponsorship of a number of student scholarships, the National Housing Endowment (NHE) has been selected to receive the Distinguished Service Award. The award is presented annually by the NAHB Student Chapters Advisory Board to recognize support of the association’s student members and educational programs promoting the home building industry. A key mission of the endowment is promoting the success of young people who are embarking on careers in the industry and, as the philanthropic arm of NAHB, it has provided continued funding for several Student Chapters programs. Hundreds of NAHB student members have received financial support for pursuing their home building-related studies through the endowment’s Lee S. Evans Scholarship, Herman J. Smith Scholarship, “Strategies for Success” (co-sponsored by the NAHB Women’s Council) and “Build Your Future” (co-sponsored by Centex Homes). For the past two years, the National Housing Endowment has sponsored the Past President’s Matching Funds Program to support student attendance at the International Builder’s Show (IBS) by matching contributions from local and state home builders associations. In addition to student scholarships, the endowment has just begun an effort to support the growth of construction-related education at colleges and universities around the country. The Homebuilding Education Leadership Program (HELP), the endowment’s new flagship grant-making effort, is working to establish closer relationships with institutions of higher education for the benefit of residential construction. Initial major contributions have helped establish new courses in residential construction management at East Carolina University's Department of Construction Management and the University of Maryland Eastern Shore and a master’s program in that field at the |