Nation's Building News Online: November 13, 2006Print All Articles Text Version |
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Owners Expect the Value of Their Homes to Rise, Poll FindsAs builders across the country work to inform prospective home buyers about why this a good time to buy a home, recent findings from a new nationwide survey commissioned by NAHB confirm that confidence in the outlook for residential real estate remains unshaken by the current slowdown in the marketplace. Americans remain highly confident about the nation’s housing prospects, with more than four out of five home owners expecting the value of their home to appreciate over the next five years and nearly seven out of 10 calling it their most valuable investment, according to results from the survey of more than 2,000 households, including more than 1,750 registered voters. “The poll clearly debunks the more sensational media reports speculating on the demise of the housing market,” said NAHB President David Pressly. “It is interesting to note that other polls conducted by major news organizations have come up with similar results, indicating that despite the current housing market downturn, Americans resoundingly believe that buying a home is the best investment they can ever make.” Conducted by RT Strategies between Oct. 26 and 29, the polling found that 81% of home owners believe that the value of their homes will rise over the next five years. Only 13% felt their home would fall in value, while 4% expected no change and 3% were unsure. In addition, 69% of the respondents listed their home as their most valuable investment. By contrast, just 11% of those polled cited 401(k) and other retirement accounts as their top investment, a distant second to homes. Looking ahead, NAHB said the housing market is poised for solid and sustained growth in the future. “We are in the midst of an inevitable adjustment following the housing boom of 2004-2005 when housing market activity soared to unsustainable levels,” said NAHB Chief Economist David Seiders. “Housing demand should stabilize in short order, and the downward adjustment to housing production should run its course by mid-2007. The market that emerges from this correction will display good balance between supply and demand and move to a healthy and sustainable trend based on solid underlying fundamentals.” It's a Great Time to Buy Materials put at the disposal of NAHB members last week, “It’s a Great Time to Buy,” emphasize that home buyers have greater opportunities today than they have had for several years, with prices leveling off, mortgage interest rates remaining near historic lows and a relatively strong economy continuing to create job and income growth. Potential buyers who sit on the fence in the hopes of “timing the market” and making their purchase at the exact time when the downturn hits bottom could miss out, because the peaks and valleys of the housing cycle are just as difficult to predict with pin-point precision as the stock market, and conditions will vary by location. Those who purchased homes during the previous housing downturn in the early 1990s came out big winners. The median price of a new home in 1991 was $120,000. In 2005, it was $240,900 — just over double in price. Resources in the free, members-only buy-now package include:
For more information, e-mail Niki Clark at NAHB, or call her at 800-368-5242 x8061. Professional Remodeling Reduces Lead Levels, Study ShowsHiring a professional remodeler to do renovation work in older homes with lead-based paint does not create lead hazards, and in fact leaves the home with measurably lower lead levels than before, according to a new study funded by NAHB. Leaders on the NAHB Remodelors™ Council presented the results of the study on Nov. 8 to James B. Gulliford, the U.S. Environmental Protection Agency's assistant administrator for prevention, pesticides and toxic substances, during a meeting in his Washington office. “It was a very productive meeting,” said Council Chairman Vince Butler of Butler Brothers in Oakton, Va. “The study reinforces the importance of safe work practices, which, when it comes to remodeling, the majority of our members already employ.” In January, EPA unveiled its proposed rule for governing work practices in homes with lead-based paint. Targeting dust control and cleanup, the rule includes changes in work practices and training that NAHB members fear would drive up costs for professional remodelers and force consumers to either do the work themselves or hire a contractor not as conscientious about following the regulations. The problem with “DIY” remodeling, Butler pointed out, is that consumers tend to do the work over time, on weekends or during the evening. In cases where there is the possibility of exposure to lead, the extended work period increases the amount of time that residents can be exposed to the lead dust. And cheaper contractors who don't keep up with regulatory requirements are less likely to employ the federal government’s recommended safe work practices, especially for uncontrolled sanding, which can raise dust levels. “I believe we take steps to keep dust levels down anyway when we are working in our clients’ homes,” Butler pointed out. “Whether there is lead present or not, professional remodelers don’t like to leave a mess.” NAHB commissioned the $225,000 study a year ago in anticipation of the EPA proposal. Under the direction of an environmental consulting group, volunteer remodeling companies worked on typical activities — including wall and ceiling modification and removal, window replacement, sawing and sanding — in five homes around the country containing lead-based paint. Measuring the amount of lead dust on floors and window sills before and after the remodeling work, the consultants found that the work actually decreased the amount of lead present at all of the test sites — except where the remodeler sanded without following practices like misting the surface with water or connecting the sanders to vacuum cleaners with particulate filters. “The use of HEPA filter-equipped vacuum cleaners combined with either wet wiping or disposable mops during post-work clean-up showed the greatest effect on reducing lead loading in surface dust,” the study showed. NAHB submitted the study to a peer-review process to corroborate the data before releasing it to EPA. Last week, Butler sent an e-mail to all Remodelors™ Council members announcing the results of the study, emphasizing the importance of safe work practices and reminding members to provide clients with EPA information on lead-based paint in pre-1979 homes. Following up on the e-mail, a hard copy of the letter (a members-only link) will be mailed to the members’ businesses. The U.S. Department of Housing and Urban Development has developed a list of renovation and remodeling practices to be avoided, and most of those practices — like open-flame burning or torching and the use of volatile paint strippers in an enclosed space — are unusual for remodelers anyway. “We didn’t test those practices in our study because we already know to avoid them — it’s common sense,” Butler said. While council leaders are pleased with the results of the study, they continue to be concerned with the effects of the proposed rule on the industry. “The liability question is still a big worry,” Butler said. “The rule contains wording about a clearance test, and we have no control over the lead paint in parts of the home where we aren’t doing any work. We can’t be responsible for pre-existing conditions.” The letter to council members emphasizes the importance of providing clients with the EPA brochure, ”Protect Your Family from Lead in Your Home.” “The safety of our customers, especially customers’ children, is paramount,” Butler said. For additional information, e-mail Jim Lapides at NAHB, or call him at 800-368-5242 x8451. Reader Survey: Tell Us What Housing News Is Important to YouBecause you regularly read Nation's Building News, we value your ideas and would like your help. Please tell us what information in Nation's Building News is important to you — what you read and what you might like us to add — by answering our short online reader survey. To take the survey, click here. (Please note: If you have already answered the survey questions, thank you.) Play Builders' Free Online Pro Football. Don't Drop the Ball.Don't miss another weekend of NFL games — and your chance to win prizes from HGTVPro. Sign up and play in the Builders Football League (BFL) on HTGVpro.com — the free, online pro football "pick 'em" contest with a special league for NAHB members. Playing is free, fun and easy ― and participants have a chance to win weekly prizes or the grand prize — a Panasonic 61-inch high definition TV — at the end of the season. How to Join and Play
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. NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. Official Says Bad Data Fueled Rate Cuts, Housing SpeculationRichard Fisher, the president of the Federal Reserve Bank of Dallas, said in remarks to the New York Association for Business Economics that the Federal Reserve under its former chairman Alan Greenspan kept interest rates too low from 2003 to 2004, thereby fueling speculative housing activity, because of faulty inflation data. From 2002 to 2003, he said, inflation as measured by the price index of personal consumption expenditures (PCE) excluding food and energy, was running below 1%, suggesting that a serious shock to the economy could turn inflation to deflation and make it difficult for the Fed to boost growth by engineering deeply negative interest rates. To reduce the risk of falling prices, the Fed lowered the Fed funds rate to 1% in June 2003 and held it there until mid-2004. Fisher noted that subsequent revisions of the PCE showed that inflation was actually a half a percentage point higher than originally estimated. “In retrospect, the real Fed funds rate turned out to be lower than what was deemed appropriate at the time and was held lower longer than it should have been,” Fisher said. “In this case, poor data led to a policy action that amplified speculative activity in the housing and other markets. Today…the housing market is undergoing a substantial correction and inflicting real costs to millions of home owners across the country. It is complicating the [Fed’s] task of achieving…sustainable noninflationary growth.” (www.realestatejournal.com)
Some Builders Hopeful for a Late 2007 Housing ReboundBeazer Homes USA Chief Executive Ian McCarthy said that he is hopeful that the deteriorating housing market will turn around by the end of 2007, at least in the markets where his company builds homes. He said that there may still be some pockets where there’s overhang, such as Miami and San Diego, which saw huge price run-ups and speculative buyers, but, for the most part, he believes the industry will be rebounding. “The demographic support for the housing market is so strong that this (slowdown) is an aberration, he said. “It’s not something that will last three or four years.” Elliot Eisenberg, housing policy economist with NAHB, said it’s “eminently reasonable” to assume that 2007 will be the turnaround year for housing. “The economy is still doing nicely in terms of job creation, job growth and low unemployment numbers, and interest rates are still at good levels,” which work in the industry’s favor, he said. He noted that many builders are taking steps to reduce the overhang by pulling back on new construction and offering incentives and discounts to sell existing homes. Builders have also been taking write-downs related to land and land options, and many are introducing new product lines that offer lower-cost homes with fewer amenities for price-sensitive buyers. He said Wall Street is forcing the builders to act with discipline in this environment, which can only help speed up the rebound. “There’s a realization things have changed and they’re acting accordingly,” he said. “So we shouldn’t see the prolonged pain” that occurred in the recession of the late 1980s and early 1990s, he said. (www.dowjones.com)
The Vanishing Class — Middle-Income Neighborhoods Are Disappearing From CitiesArchitect Alexander Gorlin was hired by the Nehemiah Housing Development Fund — a nonprofit developer established by the East Brooklyn Congregations in New York City that has built several thousand low-cost, mostly single-family homes in the neighborhood since the 1980s — to give a new row house development a more sophisticated look. Gorlin created a color palette from the available shades of Hardiplank, a cement-board siding popular in affordable housing — such as Evening Blue and subdued Countrylane Red. “We just made them as bold as possible,” he said of the facades. He threw in some easy urbanistic tweaks — like moving the parking spaces from the front yard, where Nehemiah has been putting them for years, to a real alley. “This is more like Siedlungen,” he says, referring to the German workers’ houses built in the first decade of the 20th century. “Or Brooklyn brownstones. Or Queens, where I grew up.” The much-coveted houses will be sold by lottery. Fifty percent of them must go to those who already live in the neighborhood; 5% are reserved for uniformed officers of the NYPD. About 12,000 requests have been received for the 637 available houses. They will be mostly two-story, 1,600-square-foot, three-bedroom homes costing $204,000 with a $46,000 subsidy from the city. A handful of two-family homes, priced at an unsubsidized $357,000 and three-family homes, at $488,000, will also be built. The maximum income for a one- or two-person household is $85,080 and for a three-person household is $99,000. (www.metropolismag.com)
Florida Foreclosures Increase Again in OctoberFlorida’s foreclosure rate increased by 21% last month, according to Default Research, leading some expects to say that the time to buy real estate in the state is now. “The holiday season is coming up and south Florida condominiums could be the bargain of the season,” said Serdar Bankaci, president and chief executive officer of Default Research. “There were a lot of condos bought for investment purposes, and with the downturn in the real estate economy, many investors are being forced to sell their condos for much cheaper than what they paid for them.” The highest increases in the foreclosure rate came in Clay County (40%) and Lee County (38%). Foreclosures were up 26% in Palm Beach County, 25% in Miami and 23% in Broward. Bankaci does not see this trend slowing down anytime soon. “The large inventory of homes creates an excellent opportunity for investors to buy homes below value, specifically condos,” said Bankaci. “South Florida, in the long run, will be home to many baby boomers looking for retirement residences or families looking for seasonal housing.” (www.rismedia.com)
Vegas Developers Draw Wild Card: Spiraling CostsHarrah’s Entertainment Inc, MGM Mirage, Wynn Resorts Ltd. and Boyd Gaming Corp. all have massive redevelopment projects in the works in Las Vegas that, if completed, promise to remake parts of the Vegas Strip over the next decade. The companies are vying to build self-contained empires with so many lodging, shopping and eating options that guests won’t be tempted to venture outside. But rising materials and construction costs are in almost every case either driving up the price tag substantially or prompting the developers to hedge their bets and scale back. Harrah’s has spent nearly $1 billion over the past year buying up 350 acres on and around the Strip, but the company hasn’t revealed exactly what it plans to do, and one reason for the silence, in addition to the rising building costs, is a shortage of steel, concrete, window glass and other materials. Huge developments underway in China, the Middle East, Europe and the U.S. have helped create the shortages. Some contractors working in Las Vegas have placed staff members in China to work directly with factories to lock up supplies. “China went out and bought 50% of the world’s scrap steel and ore 18 months ago,” says Tony Marnell, chief executive of Marnell Correo, which built many of the most famous Las Vegas casinos, including the Bellagio and the Wynn. “We’ve had a man in China for two years making contracts to buy things direct.” (www.realestatejournal.com)
Wind-Driven Blaze Levels Fontana Lumberyard, Threatens HomesSanta Ana winds gusting up to 50 mph turned a small brush fire into a 640-acre blaze last Monday morning, leveling a lumberyard and threatening hundreds of homes in Fontana and Rialto, Calif. before it was contained by San Bernardino County firefighters. The fire began near an onramp to Interstate 15, where a welder was working on a bridge. Sparks and melted metal fell into vegetation along the wash, and winds quickly carried the fire south. The damage was estimated at more than $1.2 million. Sam Reveles, who owns San Gabriel Valley Lumber Co., which was destroyed by the fire, said he saw black smoke billowing up from the fire’s origin when he arrived at work. After watching the fire move south in a narrow band along the Rialto-Fontana border, Reveles told his 20 employees to leave immediately. “With this wind, I just knew it was going to be upon us so quickly,” he said. (www.latimes.com)
Builder Members, the Future Is in Your HandsOver the past four years I have had the opportunity to travel all over my state of North Carolina and meet incredible folks from all parts of our industry. I have shared meals, discussions, bright ideas, dumb ideas, agreements and disagreements with builder members, associate members, suppliers, trades, local home builders association staffs, state HBA staffs and the NAHB staff. Although the topics have been extremely diverse, there is always one consistent and all-too-familiar concern expressed at almost every occasion and that is — and I will stress “in general” — that builder members are not as involved as they should be. Now before you flush this article into cyberspace, let me just say that I am not just throwing stones here. I am a builder member, and like many of you, one who is involved and has found value in my membership and my participation. But here are some of the truths I have hit upon, and I am exploring them in the hope that more builder members will become engaged in the business of our industry:
When it comes to participation, there is a tremendous amount of “room for improvement” for most builder members. For the relatively few who are active, please bear with me. To the rest of the builder members in this association, I say get involved and do it now. I’m not saying you have to serve on a national committee, a state leadership position or on a local association board — although you would soon see the benefit from this level of participation. All I am asking is for you to start participating at the basic level — by attending your local association meeting maybe three times a year and by mentoring a new member while you’re at it, by talking to associates and perhaps beginning a new business relationship. Make yourself accessible. I don’t believe for one moment that anyone in our industry is so busy that they can’t dedicate three nights out of an entire year to what’s good for their association and good for this industry. It starts and stops with us, the builder members. Our participation can make the difference between sweet success and bitter failure. If an admonishment applies to you, maybe it’s time to be honest with yourself and resolve to do better. It’s your choice. Dave Stormont is president of the North Carolina Home Builders Association. He is chairman of the NAHB Custom Home Builders Committee and a member of the Single Family Small Volume Builder Committee. Builders Prepare to Work With New Democrat-Led CongressAs the 109th Congress reconvenes this week in a post-election, lame-duck session to complete unfinished business on several spending bills to fund government programs in fiscal year 2007, lawmakers are already looking ahead to the start of the 110th Congress in January, when Democrats will take the reins in both the House and Senate for the first time since 1994. Needing to capture a minimum of 218 House seats to gain control of the chamber, Democrats on Nov. 7 won at least 229 seats, a net gain of 29, with 10 races remaining to be decided as this issue of Nation’s Building News went to press. Republicans currently hold 196 seats. By a narrow 51-49 margin, Senate Democrats returned to power by picking up six Republican-held seats in Missouri, Montana, Ohio, Pennsylvania, Rhode Island and Virginia. The official tally is 49 Democrats and 49 Republicans, with Independents Joe Lieberman (Conn.) and Bernie Sanders (Vt.) aligning themselves with the Democratic caucus. Democrats also posted gains in the 36 gubernatorial elections, picking up six statehouse seats for a 28-22 majority. The 109th Congress is expected to resume work on Nov. 14 and it is unclear how long the outgoing Republican leadership will continue the lame duck session now that they have to turn over control of both chambers in January. With only two of the 12 fiscal 2007 appropriations bills completed, lawmakers may decide to craft an omnibus measure if they don’t have enough time to complete work on the outstanding individual spending bills. While highly unlikely, it is also possible that a continuing resolution will be approved to fund the government until early next year when Congress returns — thus enabling the new Democratic leadership to finalize fiscal 2007 funding. Additionally, with the resignation of Defense Secretary Donald Rumsfeld, Senate Republicans are likely to remain in Washington long enough to confirm his potential successor, former CIA Director Robert Gates. The First 100 Hours When the 110th Congress convenes in January, Rep. Nancy Pelosi (D-Calif.), the front-runner for the House Speakership, has stated that she intends to rush a packed agenda through during the first 100 hours. House Democrats will seek to implement all the 9/11 commission recommendations on national security, raise the federal minimum wage to $7.25, eliminate corporate subsidies for oil companies, allow the government to negotiate Medicare drug prices, impose new restrictions on lobbyists, cut interest rates on college loans and support embryonic stem-cell research. Presumptive Senate Majority Leader Harry Reid (D-Nev.) has stated that he will try to take up issues outlined by Pelosi as quickly as possible. However, he also noted that the Senate must move slower in pursuing these measures because of the 60-vote threshold that any legislation in the Senate must overcome in order to avoid a filibuster. Separately, Senator Reid has said he wants to convene a bipartisan summit on Iraq, continue Republican efforts to increase transparency in the Appropriations process and open House-Senate conference committee meetings to the public. In the aftermath of the elections, President Bush and Democratic leaders expressed a desire for bipartisan cooperation. And with the Democrats holding a razor-thin Senate majority and a modest advantage in the House, building bipartisan support will continue to be essential as NAHB works to achieve its legislative goals in the coming year. BUILD-PAC, NAHB’s political action committee, contributed to 30 Senate races, winning 20 of them for a 67% success rate. In the House of Representatives, BUILD-PAC-supported candidates won 321 of 348 races for a winning percentage of 92%. BUILD-PAC is also involved in 12 races that are still too close to call. Overall, BUILD-PAC won 341 of 378 decisive races, for a 90% success rate. In January, Democrats will assume the helm of all congressional committees, including several that deal with key housing matters. A brief synopsis of these panels, their areas of jurisdiction and their projected leaders are as follows: Appropriations Committees The House and Senate Appropriations Committees are important because they make decisions that involve funding for NAHB’s pro-housing agenda and appropriations for the NAHB Research Center. These powerful members control the federal government’s purse strings. In the House, Rep. David Obey (D-Wis.) will take the helm as chairman of the full Appropriations Committee, with Rep. Jerry Lewis (R-Calif.) moving to ranking member. Rep. John Olver (D-Mass.) will lead the Transportation, Treasury, Housing and Urban Development Subcommittee (T-THUD) and, while the chairman’s gavel for the Labor/HHS/Education Appropriations Subcommittee technically passes to Rep. David Obey (D-Wis.), he is not expected to assume this role. Instead, it is expected that either Rep. Nita Lowey (D-N.Y.), or Rep. Rosa DeLauro (D-Conn.) will vie for the chair. Sen. Robert Byrd (D-W.Va)., fresh from another Senate re-election victory, will assume the chairmanship of the full Senate Appropriations Committee, with Sen. Thad Cochran (R-Miss.) moving to ranking member. It is widely expected that Sen. Patty Murray (D-Wash.) will assume the gavel on the T-THUD Subcommittee, and that Sen. Christopher “Kit” Bond (R-Mo.) will become its ranking member. Sen. Tom Harkin (D-Iowa) is expected at this point to head the Labor/HHS/Education Appropriations Subcommittee, with Sen. Arlen Specter (R-Pa.) moving to ranking member. With Democrat control of the House and Senate Appropriations Committees, it is anticipated there will be a renewed commitment on domestic spending, and several NAHB priority programs may receive increased funding, including housing programs such as Community Development Block Grants, Section 8 and HOME. Additionally, programs under the jurisdiction of the Department of Labor, such as Job Corps, are likely to see increases. Democrats can also be expected to look at increases in Occupational Safety and Health Administration (OSHA) regulatory and enforcement line-items. House Education and the Workforce Committee/Senate Health, Education, Labor and Pensions Committee The House Education and the Workforce Committee and the Senate Health, Education, Labor and Pensions Committee have jurisdiction over measures governing labor and education, including, but not limited to, workforce incentive programs, vocational rehabilitation, wages and hours of labor, and labor standards and statistics. Organized labor has traditionally had a significant influence over the committee’s Democrats, while the Republicans have traditionally been opponents of organized labor. Consequently, votes in this committee are usually along party lines. Rep. George Miller (D-Calif.) will take over the committee as Democrats re-focus their priorities. One of the first topics likely to be considered is an increase in the federal minimum wage, followed by several education-related bills: working to reauthorize the Higher Education Act, looking at the status of the Federal Direct Student Loan program, expanding Pell grants and working with the House Ways & Means Committee to weigh the benefits of allowing taxpayers to deduct the cost of college tuition. The committee also is expected to hold oversight hearings on the status and quality of OSHA’s workplace enforcement program, and also may look into several delayed OSHA rulemakings. Additionally, with the likely failure of the Congress to complete the reauthorization of the Workforce Investment Act (WIA) — a priority for the Home Builders Institute and many local home builders associations that engage in workforce training — WIA will likely be an early priority for the committee. In the Senate, the leadership positions on the Health, Education, Labor and Pensions Committee will switch, with Sen. Edward Kennedy (D-Mass.) becoming chairman and Sen. Mike Enzi (R-Wyo.) the ranking member. House Energy and Commerce Committee/Senate Energy and Natural Resources Committee In the House, Rep. John Dingell (D-Mich.) will take over the chairmanship in the 110th Congress, returning to the post he held before Republicans took control. Rep. Rick Boucher (D-Va.) will likely be the new chair of the Energy and Air Quality Subcommittee, which is of special interest to NAHB. Rep. Dingell’s energy agenda includes reducing America’s dependence on fossil fuels and foreign oil, expanding the use of alternative energy technologies and increasing the use of bio-based fuels such as those used to run hybrid vehicles. Climate change legislation is also likely to become a key issue this session as a follow-up to state initiatives, like California, that have set caps on greenhouse gas emissions. Extending the energy efficiency tax credits for home building that passed as part of the Energy Policy Act of 2005 will fall solely under the jurisdiction of the House Ways and Means Committee moving forward. Sen. Jeff Bingaman (D-N.M.), a long-time supporter of caps on greenhouse gas emissions and measures to reduce dependence on foreign oil and fossil fuels, will become chairman of the Senate Energy and Natural Resources Committee. In the 109th Congress, he supported green building legislation that incorporated a mandate for Leadership in Energy and Environmental Design for Homes (LEED), a position that runs counter to NAHB’s support for voluntary and market-driven green building programs. However, Bingaman is a supporter of tax credits for energy efficiency in home building and also sits on the Senate Finance Committee, which has jurisdiction over legislation to extend the provisions for tax credits for energy efficiency in new homes that passed as part of the Energy Policy Act of 2005.
The House Financial Services Committee and the Senate Banking Committee have jurisdiction over federal housing programs and mortgage finance and financial services providers, including the Government Sponsored Enterprises (GSEs) Fannie Mae, Freddie Mac and the Federal Home Loan Banks. After serving several years as the ranking member of the House Financial Services Committee, Rep. Barney Frank (D-Mass.) will become the panel’s new chairman. Current Financial Services Committee Chairman Michael Oxley (R-Ohio) is retiring at the end of the year, and either current Capital Markets Subcommittee Chairman Richard Baker (R-La.) or current Financial Institutions Subcommittee Chairman Spencer Bachus (R-Ala.) is expected to become the ranking member. Rep. Frank has said that his top priority for the panel will be affordable housing. He has already talked to Rep. Charles Rangel (D-N.Y.), the incoming chairman of the House tax writing committee, about beefing up tax credits for low-income housing. Frank has also stated his support for getting the federal government back into the business of building subsidized housing. With Sen. Paul Sarbanes (D-Md.) retiring, Sen. Christopher Dodd (D-Conn.) is expected to become the new chairman of the Senate Banking Committee, and current chairman Richard Shelby (R-Ala.) is likely to become the ranking member. Should GSE reform legislation stall in the 109th Congress lame-duck session, the committees will take the lead on any GSE regulatory reform measures introduced in the 110th Congress and decide whether to extend the Terrorism Risk Insurance Act, which is set to expire at the end of 2007. Frank has indicated that he wants to enact a GSE reform bill similar to H.R. 1461, legislation passed in the 109th Congress and supported by NAHB, suggesting that a Democrat-written bill in the 110th Congress wouldn’t cap the amount of mortgage-backed securities each GSE could hold in their portfolios and would include a similar affordable housing fund to the one passed by the House in the 109th Congress. In addition, Sen. Dodd has said publicly that he approved of the House-passed GSE reform bill in the 109th Congress and will try to pass a similar measure next year. A Dodd-written bill in the 110th Congress wouldn’t cap the amount of mortgage-backed securities each GSE could hold in their portfolios and would include a significant affordable housing fund component — a significant departure from the bill passed by the Senate Banking Committee in 2005 and opposed by NAHB. Federal housing programs also fall under the auspices of the Housing and Community Opportunity Subcommittee of the House Financial Services Committee and the Housing and Transportation Subcommittee of the Senate Banking Committee. Maxine Waters (D-Calif.) is expected to chair the House panel and Sen. Jack Reed (D-R.I.) is expected to wield the gavel in the Senate. The subcommittees will likely examine several housing issues, including boosting affordable housing programs, expanding Federal Housing Administration mortgage insurance and cracking down on predatory lending. Judiciary Committees The Senate and House Judiciary Committees have jurisdiction over private property rights, tort reform and immigration issues. Further, all federal judicial appointments must go before the Senate Judiciary Committee for confirmation, which can be highly contentious politically. Generally, controversial issues have been decided along partisan lines. In the House, Rep. John Conyers (D-Mich.), who has long served as the ranking member of the committee, will take over as chairman next year. He is a staunch opponent of NAHB’s private property rights legislation, and in the current Congress he authored legislation that would set exposure limits and federal building standards for mold. Conyers is expected to reintroduce this legislation in the 110th Congress, and as chairman, he would be able to advance that bill, which would be a significant concern for NAHB. Further efforts on legal reform are unlikely. However, NAHB may be able to partner with Conyers to examine how the Fair Housing Act can be better used to promote the construction of affordable and entry-level housing. It is also likely that NAHB will be able to work with Conyers on more comprehensive immigration reform legislation similar to the bill passed by the Senate in the 109th Congress. With the Democrats taking control of the Senate, Sen. Patrick Leahy (D-Vt.) will take over the reins of the Judiciary Committee. Leahy is likely to focus on consumer issues — prescription drug pricing, gas pricing — as well as major national issues such as the surveillance and interrogation of terrorists. Further efforts to reform the legal system are unlikely, although he may attempt to revive an effort to establish a multi-billion-dollar trust fund to compensate victims of asbestos exposure. In the short-term, it remains unclear whether the committee will seek to take up property rights legislation during the lame duck session. Two property rights bills have been passed by the House, one dealing with the Kelo eminent domain case, the second concerning access to federal courts, which is supported by NAHB. If the Senate panel is unable to move forward on access to federal courts legislation in the lame duck session, the issue is not expected to be revived next year because of strong opposition from Leahy, who will be in a position to block its movement. However, NAHB may find in Sen. Leahy an ally to help examine how the Fair Housing Act can be better used to promote the construction of affordable and entry-level housing. Additionally, Sen. Leahy is likely to work closely with fellow Judiciary Committee member Sen. Ted Kennedy to push comprehensive immigration reform legislation again in the 110th Congress. That effort is likely to be met with strong support from Democrat leadership in the Senate. House Resources Committee The House Resources Committee has jurisdiction over the Endangered Species Act (ESA), the Magnunson-Stevens Fisheries Act (MSFA), domestic timber supply issues, federal land designations and water supply issues. Rep. Nick Rahall (D-W. Va.) will take over the chair of the committee from Rep. Richard Pombo (R-Calif.), who did not win reelection. In past Congresses, Rep. Rahall has opposed NAHB-supported Endangered Species Act (ESA) reform legislation championed by Pombo. Rep. Rahall supported NAHB’s private property rights legislation in the 109th Congress. House Transportation and Infrastructure Committee This committee has jurisdiction over all modes of transportation, water quality, infrastructure and brownfields. Rep. Jim Oberstar (D-Minn.) will replace Rep. Don Young (R-Alaska) as chairman of this important House committee. The panel deals with smart growth and air quality and water quality issues. NAHB’s storm water legislation is also under the jurisdiction of this committee. During the 109th Congress, NAHB was unable to win the support of Oberstar on the storm water legislation, which dims the prospects of movement in the 110th Congress. Rep. Jimmy Duncan (R-Tenn.), the champion of NAHB’s storm water legislation, is being replaced as chairman of the Water Resources Subcommittee by Rep. Eddie Bernice Johnson (D-Texas). Her subcommittee will have jurisdiction over wetlands and water infrastructure, including storm water. NAHB was unable to secure Rep. Johnson as a cosponsor of the storm water bill. Senate Environment and Public Works Committee Sen. Barbara Boxer (D-Calif.) will chair the powerful Environment and Public Works Committee, which has jurisdiction over the Clean Water Act, ESA, the Clean Air Act and transportation. This committee will legislate on wetlands jurisdiction, storm water legislation, ESA reform and smart growth. Under the leadership of former Chairman Jim Inhofe (R-Okla.), the committee had a difficult time passing major environmental legislation, such as ESA reform and Clean Air Act amendments, because Sen. Lincoln Chafee (R-R.I.) routinely sided with Democrats to block Chairman Inhofe's legislation. With Chafee's defeat, the Republican side of the dais will be more united, but as the minority party, they will face an uphill battle when trying to stop any Democrat initiatives. While the panel is not expected to support many of NAHB’s initiatives, the association will work with panel members to show how excessive environmental regulations continue to affect housing affordability. Tax Writing Committees The Senate Finance Committee and the House Ways and Means Committee have jurisdiction over tax issues, health care, Social Security, trade and revenue measures. Max Baucus (D-Mont.) becomes chairman and Charles Grassley (R-Iowa) moves to ranking member. Both support housing and housing incentives in the tax code, share many common concerns on tax issues and have a good working relationship. One specific example is tax reform, where both senators support some type of reform of the code. On other tax issues, Sen. Baucus is not likely to support extending all of the President’s 2001 and 2003 tax cuts past 2010. He, however, could be a strong ally on NAHB’s affordable housing initiatives on the Low Income Housing Tax Credit (LIHTC), homeownership tax credit and exit tax relief. Both the chairman and ranking member have supported NAHB on establishing a homeownership tax credit and we will work with them on this issue again in the 110th Congress. The House Ways & Means Committee will see significant change in the 110th Congress under its new chairman, Rep. Charles Rangel (D-N.Y.). He will assuredly be a strong ally and partner on affordable housing issues, especially modernizing the Low Income Housing Tax Credit, establishing a homeownership tax credit and providing exit tax relief. However, he does not support repeal of the estate tax or renewing all of the 2001 and 2003 tax cuts. In the area of tax reform, Rep. Rangel has called for a “simpler, fairer and more responsible” tax code, leaving the specifics unclear. On the Republican side of the committee, it is still not known who will serve as the ranking member. Following the announced retirement of current chairman Bill Thomas (R-Calif.) in early 2006, Reps Jim McCrery (R-La.), Clay Shaw (R-Fla.) and Nancy Johnson (R-Conn.) all campaigned for the chairmanship, assuming continued Republican control in the new Congress. However, Reps. Shaw and Johnson both lost their reelection bids and it remains to be seen if Rep. McCrery wants the job of ranking member under a Democrat-controlled committee. For his part, Rep. McCrery is strong on NAHB issues and has expressed support in the past for housing incentives in the tax code. For more information, e-mail Michael Strauss at NAHB, or call him at 800-368-5242 x8252. Voters in 10 States Limit Eminent Domain PowersVoters in 10 of 12 states passed eminent domain ballot initiatives that restricted the government’s powers to force the sale of private property for economic development and other reasons. Voters in Arizona passed initiatives allowing property owners to file claims against the government for loss of property value due to “regulatory takings.” Arizona, California, Idaho and Washington considered eminent domain and regulatory takings in tandem. The eminent domain restrictions are a direct result of the U. S. Supreme Court’s Kelo v. New London decision in late June of 2005 when the Court upheld eminent domain for economic development as a “public use,” but also allowed individual states to place further restrictions on its exercise of the takings power. The results of the eminent domian ballot initiatives include:
Recourse for Regulatory Takings Passes in Arizona, Oregon Voters in Arizona passed measures to enable land and property owners to file a claim for government compensation resulting from regulatory takings that reduced the value of their property. Three other states also took up regulatory takings initiatives, but those did not pass. The results of the regulatory takings initiatives include:
Floridians Raise the Bar Against Costly and Unnecessary Amendments Florida voters passed Amendment 3, an initiative preventing the Florida Constitution from being littered with costly and unnecessary amendments by increasing the threshold of passage from 50% plus 1 to 60%. The amendment’s passage help ensure that Florida's housing industry has greater protections in place from future amendments that might negatively impact the industry. The Florida Home Builders Association and NAHB worked toward passage of the amendment. It gained approval by 57.9% of the voters. State Election Tallies Before the Nov. 7 elections, Republicans held the governorships and both chambers of the state legislatures in 12 states. Democrats held complete political control in eight states. The election tally results by party are: Governorships
Attorneys General
Legislatures
Pre Election Democratic Republican Split Control Unicameral 19 20 10 1 Post Election Democratic Republican Split Control Unicameral 23 15 9 1 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.
Want to Know the Housing Starts Through 2015? 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. NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. Builder's Tip: Coping With Mini-Grinders
Instead of using the backing pad, I put a pair of sanding disks back-to-back so I can cope the whole profile of a molding without turning over the grinder. I can cut to the left or right and the dust keeps heading away from me.
Another use for the top disk is removing extra material from the bottoms of casings so that flooring will slide under. — Gregg Roos, San Francisco 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. Free NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar on the NAHB Web site. For assistance, call the NAHB Member Service Center at 800-368-5242. Six Tips for Getting the Most From Your BusinessFinding and securing that choice piece of property is central to any home builder’s success, but when it comes to
At NAHB’s Custom Builder Symposium last month, Jim Weber, CPA, of Weber-O’Brien Ltd., an accounting firm in Sylvania, Ohio, offered builders six tips to improve profitability and, as he put it, “make it out alive.” They included: Find a Partner Find that person who may be as good or better than you at running a home building business and “replace yourself,” advises Weber, who had a heart attack after trying to do the work of several people for too long. Once he found a partner at his CPA firm, he was able to grow the firm to 50 associates. Employees and partners should sign non-compete and non-solicitation agreements as well as promise — in writing — that they will not take documents with them when they leave, Weber advised. If you don’t have, or don’t want a partner, Weber suggests that, at the very least, you should secure a written agreement from a friendly competitor that they will complete your inventory if you become disabled or incapacitated in the middle of a project or projects. Invest in Your People End-of-year bonuses have become a popular way to share the wealth with workers when times are flush. But what if some of them are saving their bonuses to start their own home building company? Weber suggests that you consider “golden handcuffs” — a deferred compensation program that will keep your best employees on board and help build a healthy retirement nest egg for yourself. “Your best employees will leave unless there is something to make them stay,” Weber warns. Another way to invest in your people, Weber suggests, is to pay your children to work in your business, even if they are not part of your succession plan. Your children can use the money they earn to pay their college expenses. Build a Nest Egg Weber says that a couple who wants to retire at age 65 on an income of $10,000 a month will need $2.3 million to do so. He recommends that the best place to invest that money is in a retirement account because it is the last untouchable in a bankruptcy proceeding. “It’s not all about buying land,” Weber says. “You can go bankrupt and the last item you’ll have standing is your retirement account." People who are considering that $10,000-a-month level of retirement should be putting $60,000 a year in their retirement accounts, he adds. They should also have an updated power of attorney, living will and life insurance and long-term care insurance policies. Fire Your Advisers The last place you want complacency, Weber says, is among those handling your life-or-death matters — your health, tax, income and legal issues. Consequently, he recommends that you fire your advisers every decade or so ― and find new ones. Look hard at your doctor, lawyer and accountant and be sure that they are worthy of your trust — and your money. Scrutinize your business advisers, he says. Do they know your business? Do they walk your job sites with you? Does your CPA even know you? Don’t wait a year to meet with your CFO, Weber warns. If you do, you may find out too late that your investment strategy is off the mark, or that you’ve missed out on an important deadline for a tax deduction, such as the new section 199 deduction for domestic manufacturing or the energy-efficient home credit. Once you have trusted advisers, Weber says, listen to what they tell you. After all, that is what you hired them for. Invest in Business Systems Businesses need reporting systems that allow owners to monitor performance month by month, week by week. Accurate, functional reporting systems let you know how well your business is performing. For instances, Weber says they can tell you your current cycle time, determine how much gross profit you are making, and help you understand the value of all of your assets and how to depreciate them. “Invest in systems — in things that help you manage day to day,” Weber stresses. “Invest in things that give you information.” Protect Your Assets Most builders understand that holding land in your building company can put a significant asset at risk in the event that the comany is sued and hold their land in a different company. Along the same principle, Weber suggests that builders can form other companies to hold heavy equipment, buildings and other necessities. Weber consults regularly with NAHB Builder 20 Clubs and says fraud has been detected in nearly all of the companies he has worked with. “Almost half of you have fraud in your companies and you’re not aware of that,” he says. Bonding your employees is an inexpensive way to protect your company. Jim Weber is a CPA with Weber-O’Brien Ltd., based in Sylvania, Ohio. For more information, e-mail Weber, call him at 419-885-8338, or visit the Weber-O’Brien Web site at www.weberobrien.com. NAHB Has Nearly 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 nearly 300 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 Kit Gives Builders Back-to-Basics Tips in Cooling Market With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. 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.
Protect Your Profits Through Defensive Estimating “Defensive Estimating: Protecting Your Profits,” available through BuilderBooks.com, shows builders and remodelers how to estimate based on fiscal goals and protecting the company’s bottom line. This approach to estimating gives readers user-friendly systems to improve the process and provides hundreds of ideas and simple suggestions. To view or purchase this publication online, click here, or call 800-223-2665. 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. Changing Market Gives Urban Builders an EdgeWith market fundamentals significantly changed from the housing boom of the last four years, and consumers receiving a scare from rising energy prices, builders in urban locations are in a good position to get a leg up over their suburban competition, Sam Sherman, vice president of the Building Industry Association of Philadelphia, writes in the current issue of BIA Voice, the association’s official newsletter. “By its very nature, urban living allows home owners to rely less on driving because of higher levels of density and the ability to take care of many daily errands within walking distance of residences,” Sherman says. “There is also better access to mass transit, which is an obvious alternative to driving.” Among the ways he says that urban developers can appeal to potential home buyers:
NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. NAHB Has Nearly 300 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 nearly 300 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. Learn How to Get Started in Active Adult Housing at IBSThe 50+ Housing Council is offering an all-day, seven-part introductory series, “How to Get Started in Active Adult Housing,” to building professionals considering plunging into the market. The series will be held Thursday, Feb. 8 during the 2007 International Builders’ Show in Orlando, Fla. The comprehensive series examines:
Other Sessions Other 50+ Housing Council education programs include: "This Isn't Your Father's Active Adult Market...Use Online Marketing," "Financing the Lifestyle Community," "Fair Housing for the Active Adult Builder" and more. For the full schedule of 50+ educational programs at the builders' show, click here, or call 800-368-5242 x8220 for more details. To register for the 2007 International Builders’ Show, visit www.buildersshow.com. Register by Friday, Nov. 17 to take advantage of the early registration and housing deadline. Hone Your Sales and Marketing Skills at Free TeleconferenceIndustry experts will provide timely, practical tips to improve your marketing and sales strategy in a changing market during a free, one-hour teleconference on Jan. 9. The teleconference is available to NAHB members. Co-hosted by NAHB’s National Sales and Marketing Council and Biztools, NAHB’s business management comprehensive resource on the NAHB Web site, the teleconference call will include 40 minutes of presentations by a builder and sales and marketing professionals followed by 20 minutes of questions from the audience. Topics will include:
Teleconference materials will be e-mailed to participants before it begins. For more information, view the Toolkit for a Changing Environment (available to NAHB members only). NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. NAHB Has Nearly 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 nearly 300 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. 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. Register for 2007 Builders' Show by Nov. 17 and SaveRegister for the 2007 International Builders' Show (IBS) by Friday, Nov. 17 and save money on show registration. Early registration will also enable NAHB members to request a room in their state hotel room block. Last year, more than 105,000 housing professionals attended the builders’ show. IBS, from Feb. 7-10 in Orlando, Fla., will feature two showcase homes for the first time ― one “new” and one “remodeled” — that reflect the challenges and advantages of the “re-gentrification” movement with in-city housing. In addition, Ted Koppel, former anchor of ABC’s “Nightline” and a 42-year veteran of ABC News, will be the keynote speaker. IBS also will feature more than 1,800 exhibitors, 450 of them on exhibit for the first time, and more than 200 education sessions covering every facet of the home building industry. For more information, or to register early, visit www.buildersshow.com. 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. NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar on the NAHB Web site. For assistance, call the NAHB Member Service Center at 800-368-5242. First Student-Built ‘Green’ Home Follows NAHB ModelThe NAHB Research Center has partnered with the Lancaster County Career and Technology Center (LCCTC) in Pennsylvania to develop one of the first homes rated under the new NAHB Model Green Home Building Guidelines as a field evaluation project for the Partnership for Advancing Technology in Housing. The project aims to successfully combine the PATH goal of accelerating knowledge of advanced technologies to improve home performance with the school’s goals of creating a technologically advanced workforce, new markets and resources in the local economy; and meeting academic science standards. Each year, students enrolled in the school’s building and construction program build a home as an applied learning project, and complete 90% of the trade work. Sustainable advanced building products and processes are being added to the curriculum this year. Construction of the green home was kicked off in early October with a groundbreaking ceremony at the school’s Mount Joy campus. The Research Center began the first phase of the project in March, working with LCCTC staff and members of the local home building industry to develop the home’s green and energy-efficient design. Submitted by a local builder, the base home design that was selected for the project already had some energy-efficient features, such as sealed ductwork and Energy Star® appliances. Working groups examined each of the home’s systems for ways to make them greener and ramp up the efficiency. During the process, each section of the NAHB Model Green Home Building Guidelines was considered; including lot design, preparation and development, resource efficiency, energy efficiency, water efficiency, indoor air quality, operation, management and home owner education and environmental impact. While the home’s basic design and layout were not altered, several green and performance-enhancing modifications were added such as rainwater harvesting, optimum value engineering, xeriscaping, whole-house ventilation, recycled metal roofing, a home-run PEX plumbing system, fiber cement siding, geothermal heat pump, passive solar, low-flow faucets and fixtures and stormwater management using low-impact development techniques. When evaluating technologies for the home, working groups also considered factors such as green benefits, first and lifecycle costs and ease of installation to ensure that the processes could be easily adopted by other builders. The finished design for the home scores a Gold rating under NAHB’s model guidelines, with a rating of 400. As construction of the home progresses, Research Center experts will provide ongoing technical support and training on advanced products and practices for faculty and students. Local builders, trade contractors, suppliers and architects will also be invited to participate in training sessions, with the goal of generating local advocates of sustainable building. The home, the first of four in the project, is scheduled for completion in 2007 and will be open for tours during the Building Industry Association of Lancaster County's Parade of Homes in the spring. The Lancaster County Green Building Community Education Project is being supported through grants from the National Housing Endowment, the BIA of Lancaster County, the Lancaster County Building Industry Foundation and the Lancaster County Commissioners' Office. For more information, e-mail Kimberly Warren at the Research Center, or call her at 800-638-8556. 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. Market for Zero Energy Homes Seen as Early as 2012Although Zero Energy Homes (ZEH) have yet to make much of a dent in the new home marketplace because of their cost, market penetration of high-efficiency homes with solar energy systems has already begun and will continue in certain areas where financial incentives are provided, Thomas Kenney, vice president of contract research for the NAHB Research Center, said last month. Addressing members of the Construction Marketing Research Council, Kenney reported on the driving forces behind the anticipated proliferation of highly-efficient ZEH through the year 2050, drawing on research in the center’s special report on “The Potential Impact of Zero Energy Homes.” Kenney said that many ZEH homes exist today, proving that they are technically feasible. Connected to the utility grid, the homes combine highly energy-efficient design and technology with solar electric and thermal systems to produce as much energy as they use on an annual basis, resulting in net zero energy consumption and a dramatic reduction in greenhouse gas emissions.
According to Kenney, rising energy costs will drive further increases in the already growing number of energy efficiency improvements in home appliances, building envelopes, windows and mechanical systems. Continued development of these energy-saving technologies, he said, combined with state and federal tax incentives for renewable energy systems will help create a favorable economic environment and lead to home buyer interest in ZEH in the coming years. With continued federal research and development programs to lower the cost of advanced energy-efficient building technologies and solar thermal and electric equipment, the ZEH concept will begin to spread into the U.S. housing market as early as 2012, he said. This would potentially reverse the upward trend in energy use and ultimately lower energy consumption of the entire U.S. housing stock even as the cumulative number of homes continues to increase. The Research Center’s ZEH report was developed in collaboration with the U.S. Department of Energy and the National Renewable Energy Lab. Contracts With Trades Should Include Six Key ClausesThe most important outcome for a quality-focused builder is to deliver a home that is consistent with the sales contract and meets the buyer's expectations, according to Quality Matters, the e-newsletter of the NAHB Research Center 's National Housing Quality Program. Achieving this result requires clearly established guidelines and effective communication between the builder and the many trade contractors who actually construct the new home — up front. According to the National Housing Quality (NHQ) program, there are six key clauses that should be included in a trade's contract in order to deliver a quality home.
The information contained in this article does not constitute legal advice. Be sure to consult your lawyer for advice regarding the wording of your contract forms or the terms of particular contracts. For more information on the NHQ Program, visit www.nahbrc.org/quality. Home Builder Contracts and Management Forms Available at BuilderBooks.com “Home Builder Contracts & Construction Management Forms, 2nd Edition,” available through BuilderBooks.com, provides help for developing contracts with the trades. The publication includes a CD of 95 of the most useful business forms and contracts that can be easily adapted for your business. To view or purchase this publication online, click here, or call 800-223-2665. Broadband Effort, Park Impact Fee Draw Fire From BuildersAt the fall board meeting in Salt Lake City, the NAHB Legal Action Committee approved financial support for cases involving a broadband installation requirement, an impact fee for parks and the denial of a builder’s zoning permit. The Legal Action Fund supports litigation by state and local home builders associations and builders in cases involving matters of common importance or national significance to the home building industry. The committee reviews applications three times a year during NAHB board meetings. Funding was approved for three cases on:
For information on submitting an application to the Legal Action Fund, NAHB members can click here. For more information on the three cases receiving the grants, e-mail Mary Lynn Pickel at NAHB, or call her at 800-368-5242 x8485. For further information on submitting an application, e-mail Felicia Watson, or call her at x8229. Awards Honor News Coverage of Affordable Housing CrisisEntries are being accepted for the first annual Cushing Niles Dolbeare Media Awards, designed to honor print journalists who do an exemplary job of illuminating the nation’s affordable housing crisis. The awards draw attention to the plight of low-income individuals who cannot find safe and affordable homes while honoring those who have made efforts to bring this issue to the attention of the American people. The awards are named in honor of Dolbeare, the founder of the National Low Income Housing Coalition, who passed away in 2005. Three first-prize winners of $2,500 in two categories and honorable mention winners will be presented with the awards by the coalition and Affordable Housing Finance magazine in Washington, D.C. The awards are funded by a grant from Andre Shashaty, the magazine’s editor. Entries must be stories published between Jan. 1 and Dec. 31, 2006 and postmarked by Jan. 15, 2007. The news coverage must focus on the issue of a national shortage of safe, affordable housing or the inability or struggle to attain it, and on the impact of this problem on communities as a whole and not simply on individual families. For information on entering, click here. For further information, e-mail Nicole Letourneau, communications director at the National Low Income Housing Coalition, or call 202-662-1530 x227. Apply for 2006 Workforce Housing Awards by Nov. 17NAHB is accepting entries for the Innovations in Workforce Housing Awards (IWHA), which recognize outstanding examples of communities across the nation that provide decent and affordable homes for nurses, police officers, schoolteachers, retail workers and others near areas in which they work. Entries must be postmarked by Friday, Nov. 17. The awards serve to increase awareness of the workforce housing challenge and the ground-breaking solutions implemented by the housing industry, while encouraging builders, developers and related professionals to incorporate such innovative solutions into their own projects. “These awards bring national attention to the workforce housing problem and to the creative ways in which builders and developers are increasing the supply of housing that is affordable to working families,” said NAHB President David Pressly. IWHA is open to builders, architects, designers, developers and land planners nationwide. Communities that have been completed, or in which the first model has been opened or the first unit has been occupied between Jan. 1, 2004 and Oct. 27, 2006, are eligible to enter. Winning entries will be selected by a panel of builders, multifamily and land development experts and other industry professionals. Winners will be announced at the 2007 International Builders’ Show in Orlando, Fla. in February. Winners will receive a glass award and award logo to use in marketing materials. They also will be featured in a press release and in articles in Nation's Building News Online and other NAHB member publications. For specific entry guidelines and an entry form, click here. For more information on the awards, click here; or e-mail Blake Smith at NAHB, or call him at 800-368-5242 x8583. Student Chapter Members Visit National Housing CenterWith the 2006 fall semester comfortably underway, NAHB Student Chapters members are seeking opportunities to enhance their coursework with valuable real life experience. On Oct. 27, 15 NAHB student members from Pennsylvania State University and the Pennsylvania College of Technology (PCT) traveled to NAHB’s National Housing Center in Washington D.C. to get a better understanding of the organization, its resources and benefits. A lunchtime meeting gave students a chance to ask NAHB professionals questions about home building-related legislation, the housing market, internships and future job prospects. The young members also learned about the importance of Home Builders Institute (HBI) and the National Housing Endowment to the association’s Student Chapters. HBI is chiefly responsible for administering and promoting the program, recruiting and maintaining members and informing students of the career opportunities in the home building industry. The National Housing Endowment offers financial support to the Student Chapter programs and members through a variety of scholarships and grants. Following their visit to the Housing Center, the students toured the NAHB Research Center in Upper Marlboro, Md. for an inside look at the advanced home building technologies and how these products are tested. “I think all of us gained a better perspective of new opportunities that are available for us on a personal and national level in the industry,” said Ben Copenhaver, a construction management major at PCT. Both Penn State and PCT chapters will continue to enhance their education through extracurricular activities as they prepare for the 2007 Residential Construction Competition at the International Builders’ Show in Orlando, Fla. on Feb. 7 to 9. NAHB Student Chapters Administered by the Home Builders Institute and funded by NAHB, corporate partners and student member dues, the NAHB Student Chapters program helps to enrich the educational experience of more than 4,000 students enrolled in construction-related studies. High schools, vocational and technical schools, community colleges (two-year programs), universities (four-year programs) and Job Corps centers across the country all have chapters. For more information on NAHB Student Chapters or the Residential Construction Competitions, e-mail Page Browning at HBI, o | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||