Nation's Building News Online: March 12, 2007Print All Articles Text Version |
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Study Sheds Light on Home Component Life ExpectancyA new study sponsored by Bank of America Home Equity and conducted by NAHB provides general guideline information on how many years of service a home owner can reasonably expect from the various components of a home, keeping in mind that numerous factors — including use, maintenance, climate, advances in technology and simple consumer preferences — can have a dramatic effect on the longevity of a product. The NAHB/Bank of America Home Equity "Study of the Life Expectancies of Home Components” was conducted in the summer of 2006. “By polling experts in a wide range of fields, we learned that many home components are expected to last for the life of the house,” said Gopal Ahluwalia, staff vice president for research and surveys in NAHB’s Economics Group. “Among them are toilets, wood floors, all types of insulation, and fiberglass, steel and wood exterior doors. “On the other hand” he said, “some components have a much shorter life expectancy. Wood decks should last about 20 years, depending on climate, and kitchen faucets should last about 15 years. Linoleum floors have a life expectancy of about 25 years, and furnaces can be expected to last 15 to 20 years.” “With Americans relying on the equity in their homes as an essential element of their life savings, Bank of America wants home owners to better understand how to preserve value in their most important financial asset,” said David Rupp, Bank of America Home Equity executive. Bank of America is the leading provider of home equity loans, with a portfolio of more than $88 billion. “It’s important to remember that the life expectancies for materials included in this study are averages,” said Ahluwalia. “Usage, weather and a number of other factors can influence life expectancy. Moreover, home owners often replace items long before the end of their expected life span due to personal preferences and changing trends. “For example,” he added, “the practical life expectancy of kitchen cabinets is about 50 years. However, many people buying a 15- or 20-year-old house would make installing new, updated kitchen cabinets a priority. Likewise, some home owners paint their homes every year or two, even though interior paint has a practical life expectancy of about 15 years.” Among the findings of the study:
For more information, e-mail Steve Melman at NAHB, or call him at 800-368-5242 x8245.
Apply for ‘Buy Now’ Advertising Assistance Grants From NAHBIf your local association is currently engaged in an ongoing advertising campaign in print, radio or television outlets, or if you are planning such a campaign, have your association apply for a “Buy Now” advertising assistance grant from NAHB. HBAs from around the country have already applied. To date, 26 local associations have applied for advertising assistance grants from the $1 million to be awarded during the first phase of the program. NAHB currently has approved 17 requests totalling $504,000. Another $2 million will be made available if the program is successful. NAHB launched the multi-million dollar grant program last month to assist local home builders associations in an effort to bolster home sales in markets hit hard by the current housing downturn and help offset the cost of local ad campaigns. The NAHB “buy now” ad assistance program will provide grants to qualifying HBAs in three different categories:
A total of $3 million was approved by the NAHB board. NAHB will evaluate the effectiveness of the program after the first $1 million in grants is put to work by local associations. If it is determined that the local ad campaigns have been successful, then the remaining $2 million will be made available in grants to qualifying HBAs. To learn more about the program, eligibility considerations and requirements, click here (www.nahb.org/buynowapplication), or call Niki Clark at 800-368-5242 x806l. Michigan Home Pointing the Way to Age-Conscious ConstructionA home being built in Traverse City, Mich. to illustrate the virtues of age-conscious construction will be open to the public and shown to U.S. state governors in the late spring and early summer as an example of how housing can accommodate the needs of aging Americans. Following the Certified Aging-in-Place Specialist (CAPS) philosophy of helping people to age with grace in their own home, the home’s builder, POM Associates, Inc., a small-volume, family-owned company, says the project is the culmination of years of paying attention to the various physical needs of its customers and a marketing focus on the retiree community. “It is our job, as home builders, remodelors and developers, to anticipate the needs of the population, and the evolving demographics of our nation, so we can meet the emerging housing demands and help people to be healthy, safe and content in their own home,” said Sally Erickson Bornschein, the builder who is leading the construction of the “Livable Lifestyles Home.” Created by NAHB Remodelers in collaboration with the NAHB Research Center, NAHB 50+ Housing Council and AARP, the CAPS program is aimed at addressing the growing number of consumers who will soon require modifications in their homes so they can continue living in them safely, independently and comfortably. While remodelers currently account for the majority of professionals holding the CAPS designation, their ranks are increasingly being joined by general contractors, designers, architects and health care consultants. “Visitability will be a focus of the adaptable, accessible and universal design in the house,” said Bornschein, who will be giving special attention to issues involving hearing and sight, which are the first things that begin to fade with aging. When the home opens its doors for tours during the Home Builders Association of the Grand Traverse Area Parade of Homes on June 16 to 24, Bornschein is hoping that local consumers come away with a new appreciation for the value of accessible construction techniques. In addition to helping the public to see these techniques, POM has also partnered with the Presbyterian Villages of Michigan, a nonprofit organization, and Philips Lifeline to exchange information between the for-profit and the not-for-profit sectors of this huge market. "There are so many technologies and solution options that the opportunity to work collaboratively will only enhance the lifestyles of Americans entering this age arena," said Bornschein. In her experience, aging households don’t know enough about these features and are often reluctant to ask for them. "This home will show many options to help consumers make their own homes user-friendly. People will see these solutions in real world applications and take some ideas and hopefully implement them in their own homes," she said.
“We have never built a home for someone who was in a wheelchair,” she said, “but I do go back to many of our clients’ homes and help them with additional aging-in-place needs as they are required.” Grab bars have been the most frequent request, but even residents who rely on canes and walkers to get around often resist assistance. “Recently we revisited a home of a gal who is 92 and took a spill in her garage carrying two bags of groceries into her home,” said Bornschein. “Our first recommendation was of course that she carry one bag instead of two. In addition, we are adding some grab bars in a rather unconventional way so she can continue to age in place.” The “Livable Lifestyles Home” will include grab bars, and blocking to add more grab bars as they are needed. Accessible bathroom features include a roll-in tile shower and radiant flooring on the entry level and non-slip tiles and comfort-height toilets. Bamboo flooring will be used on the entire entry level. The house has been designed to eliminate glare and provide good lighting and color contrasts, and it will contain Energy Star appliances and construction techniques and low-maintenance vinyl siding and windows. Wide doors are used throughout and a zero-step entry leads to the front door. Among high-tech options being considered are motion detectors and cameras to provide security and monitor the health of the residents. When the National Governors Association meets in Traverse City from July 18 to 22, AARP plans to use the house as a platform to help the governors see how good design can be used to create livable housing and communities for the nation’s aging population. The house is being built in the Signature Ridge development, which is located on the 15th fairway of the Bear golf course that is on the grounds of the Grand Traverse Resort where the governors will be staying. “It is important for the marketplace to read our customers and to offer real-world solutions for their lifestyle,” said Bornschein. “After all, homeownership is still the goal of most Americans, and the most important thing in the homes we build are the people.” Plan to attend 2007 50+ Housing Symposium Mark May 30-June 1, 2007 on your calendar and plan to attend the 50+ Housing Symposium. The seniors housing symposium is the premier educational and networking event for industry professionals who serve the burgeoning 50+ market. Visit www.nahb.org/build4boomers for more information. CAPS Designation Focuses on Accessibility at Any Age Developed by the NAHB Remodelers in collaboration with AARP, the NAHB Research Center and NAHB's 50+ Housing Council, the Certified Aging-in-Place Specialist (CAPS) program provides comprehensive, practical, market-specific information about working with older and maturing adults to remodel their homes for aging-in-place. For more information, e-mail CAPSinfo@nahb.org, or visit www.nahb.org/CAPSinfo. 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 the 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. An End to Easy Money: Subprime Mortgage Lenders RetreatIt came as a shock to two house hunters when the nontraditional loan they thought they had been prequalified for was yanked away from them just as the seller accepted their contract for a four-bedroom $300,000 house. More would-be home buyers with blemished credit histories may soon be shut out of the housing market now that lenders are curtailing the number of loans to risky, or subprime borrowers. A spike in delinquencies and defaults among subprime borrowers has forced more than two dozen lenders to close, sell themselves to larger firms or report staggering financial losses. Some have chosen to get pickier about borrowers — a course encouraged by federal regulators. General Electric’s U.S. mortgage arm has laid off a fifth of its workers because of a jump in defaults and has stopped making some risky loans. New Century Financial, one of the nation’s largest lenders to subprime borrowers, said last week that it has stopped accepting new loan applications under pressure from its creditors. One hundred percent loans and loans that do not require borrowers to document their income have been the first ones dropped by some lenders because of their risk. (www.washingtonpost.com)
Home Builders Find Contractor They Want in ThemselvesPart of a growing home-building trend, a Clarksville, Tenn. mother of four whose husband is in Iraq estimates that she will save her family almost $40,000 on their $265,000 home by being her own contractor for two hours a day. Since breaking ground on the home in July after meeting with Nashville’s division of the Owner/Builder Network, no major disasters have been encountered, and the home is on track for completion in April. As a result of the savings, “I can afford better quality things,” she says. “I can get Corian countertops instead of laminate, ceramic tile instead of linoleum.” According to NAHB, the average general contractor sees about a 21% gross profit margin and 8% net margin on each new house. “If you build four houses this way, your fifth home is free,” says Carl Heldmann, author of “Be Your Own House Contractor,” published in 1982 and now in its fifth edition. Several books on the trend have been published recently, including “The Owner-Builder Book,” “Build Your Own Home on a Shoestring” and “How to Plan, Contract and Build Your Own Home." The Owner/Builder Network charges clients $2.95 per framed square foot for helping them to manage their projects from start to finish, shepherding them through everything from selecting property to picking out tile. The company provides a tried-and-true subcontractor list to its customers, as well as services such as an independent building inspection of each construction stage before the codes inspector arrives. A similar company, UBuiltIt, charges owner-builders in the range of 5% to 8% of the home’s total cost. (www.tennessean.com)
Entrepreneur Is Right at Home Developing Floor PlansAble to work out of her home and keep tabs on her two boys, a Vail, Colo. entrepreneur with an associate degree in drafting has become a self-employed home designer, growing her business exclusively through referrals from former clients and acquaintances. Wendy Elena Counes said she has the self-discipline and motivation to generate floor plans steadily, as well as to do some civil drafting such as maps, bridges and roadways. Helping people create their dream house in a cost-effective way is something she enjoys, she added. Typically, those who seek her services — instead of those of an architect — aim to keep down the cost of building a house. Without a degree in architecture, Counes has some limitations in her work. She is not able to perform a structural analysis that meets safety standards when a house is built. That doesn’t usually pose a problem because most of the homes she designs are basic floor plans that adhere to existing building codes, she said. Counes noted that she has the ability to draw plans that incorporate more complex designs, such as a wall of glass instead of standard windows. But such a feature would require clients to also hire a structural engineer, she noted. (www.dailystar.com)
Numbers Don’t Lie, But They Do ConfuseConflicting reports on housing prices and the direction of the market from the National Association of Realtors® and the Office of Federal Housing Enterprise Oversight (OFHEO) can raise questions among consumers about what is really going on out there. However, some conclusions can be drawn, according to columnist Kenneth Harney. “If you own or are buying property in any of the dozens of metropolitan areas that boomed from 2002 to 2005, you can be fairly certain that property values are either giving back some of those fat gains or are flat for the time being. For example, in 21 of 26 major California markets in the latest OFHEO study, there was price deflation in the final quarter of 2006.” However, in most of the high-flying areas such as Washington, D.C., southwest Florida, Nevada, Arizona and California, the fallback is relatively small, in the 1% to 4% range from the peak. Buyers in an area where employment growth is strong and there was no hyperinflation during the boom years are probably seeing excellent growth in home values. Jobs in Seattle and Portland, Ore., for example, have been growing at twice the national average, according to Freddie Mac Chief Economist Frank Nothaft, and home values there are up by double-digit rates. “The truly sobering pictures are in the industrial Midwest and parts of New England, where the population and number of new jobs have been flat or have fallen,” writes Harney. “Prices there aren’t likely to get out of negative territory until employment turns around and people start moving in.” (www.washingtonpost.com)
Harvard Communities Makes Solar the Standard in StapletonSemi-custom home builder Harvard Communities in Colorado announced that all of its Architect Collection homes in the Stapleton redevelopment will now come with photovoltaic (PV) solar power as a standard feature. The panels will provide approximately 30% of the homes’ electrical power needs and will be integrated seamlessly with the homes' electrical service so that any excess power that is produced can be sold back to the utility company. Combined with energy-efficient home building measures already being incorporated, the solar system will result in the reduction of more than 7,000 pounds of excess carbon dioxide, or 3.5 tons, per home annually. The panels being installed are much leaner than their predecessors — just 1.81 inches thick. These homes will include state-of-the-art triangular panels that conform closely to the roofline, creating a sleek, elegant aesthetic. “Harvard is the first home owner in the state to announce the use of solar PV as a standard feature and, we believe, this bold decision will create the consumer demand that inspires other builders to follow our lead,” said John Keith, president of the company. (www.businesswire.com)
Making It Official: Some Municipalities Push Contractors to Recycle Construction WasteNorth Texas planners hope to increasingly curb the left-over wood, metal, concrete and paper trash from construction and demolition sites going into landfills. The task isn’t easy. Many contractors say recycling debris is a hassle and would add cost to a job. To recycle, contractors must keep materials clean, dry and separated, and recyclers must be conveniently located. The city of Plano adopted a 40% reduction goal and began in November 2004 to work toward it and is now at a diversion rate of 20%. Frisco, which has been a leader on this issue, began in 2000 to require contractors on commercial buildings to recycle all debris possible. The bigger challenge is what to do about the waste from the roughly 3,000 new homes sprouting in the area annually. Each new home generates about six tons of debris, about 50% of which could be reasonably reused. Along with other cities, Frisco is struggling to develop a comprehensive program that would be cost-effective for builders. The difficulty is that residential job sites are smaller, with less space for multiple recycling bins. There’s less waste than a commercial building and the volume of contractors and job sites is vast. (www.bizjournals.com/dallas)
Bill Would Streamline Section 8 Voucher Unit InspectionsDraft legislation that would streamline several aspects of the existing Section 8 housing voucher program received a favorable response last week from the nation’s home builders. In written testimony to the House Financial Services Subcommittee on Housing and Community Opportunity, NAHB voiced support for the Section 8 Housing Voucher Reform Act (SEVRA), legislation that would streamline inspection and income verification requirements for the Section 8 Housing Choice Voucher program. “NAHB greatly appreciates that SEVRA addresses the problem of duplicative unit inspections, while ensuring that housing quality standards are maintained,” the NAHB statement said. The Section 8 Housing Choice Voucher program provides rental subsidies to approximately 2 million very-low income households who obtain housing in the private rental market. The basis of the program, which is to broaden the range of housing choices for families seeking affordable housing, has proven to be effective in helping low-income families find decent, safe and affordable housing. While the current SEVRA draft includes provisions intended to streamline the current housing inspection process, NAHB urged lawmakers to incorporate elements included in H.R. 5433, the Section 8 Voucher Reform Act of 2006, which was introduced in the 109th Congress. This would “best accomplish the goals of streamlining the unit inspection process by eliminating duplicative inspections and unit turnover delays, while ensuring that units continue to meet housing quality standards,” NAHB said. For example, NAHB supports a provision in H.R. 5433 that would significantly streamline the process for inspecting units for compliance with Housing Quality Standards (HQS). Units being vacated by a voucher family would not have to be re-inspected before the next eligible family could move in if the unit had been found to meet the HQS standards during an inspection within the previous 12 months. The same would apply for previous inspections within 12 months under another federal, state or local housing assistance program. NAHB also supports the provision in the current SEVRA draft bill that would allow public housing authorities to inspect properties every two years instead of annually. However, NAHB also suggests that properties with 15 units or less be inspected at least annually. For more information, e-mail Scott Meyer at NAHB or call him at 800-368-5242 x8144. Bill Would Provide Affordable Housing for Hurricane VictimsWith NAHB’s support, the House Financial Services Committee on March 7 passed H.R. 1227, the Gulf Coast Hurricane Housing Recovery Act, legislation that would help provide affordable housing for low-income residents displaced by the Gulf Coast hurricanes that occurred in 2005. Prior to consideration of the bill, NAHB sent a letter to the full committee highlighting the association’s support language extending the Disaster Voucher Program until Jan. 1, 2008. Due to the magnitude of the destruction caused by the hurricanes, which decimated entire communities, many families have not yet found permanent housing or jobs and continue to need this vital assistance. NAHB also indicated support for provisions in the bill that would prevent the expiration or termination of housing assistance payment contracts for multifamily housing properties assisted under Sections 8, 202, 811 and 236 that were damaged or destroyed by Hurricanes Katrina and Rita. The bill directs the Department of Housing and Urban Development to promptly review and approve all feasible proposals made by owners of such properties to resume the assistance after the damage has been repaired, or, in the case of interest reduction payments, transfer the remaining budget authority to another multifamily housing project. Alternatively, the housing assistance would be transferred to another appropriate and habitable project or a project to be constructed, with the same or different owner. In the case of interest reduction payments contracts, any remaining budget authority could be used to reduce financing costs for units in other habitable projects without such assistance. NAHB will continue to monitor this legislation as it moves forward and provide input to key members of Congress. House Financial Services Committee Chairman Barney Frank (D-Mass.) has stated that the bill will reach the House floor before the April spring recess. To read the legislation, click here and enter H.R. 1227 in the box at the center fo the page. For more information, e-mail Scott Meyer at NAHB or call him at 800-368-5242 x8144. Attend the Housing Credit Group Issues Forum Mark your calendar and plan to attend the Housing Credit Group Issues Forum in Seattle, Wash. on Sept. 5. The forum will focus on breaking down common barriers to affordable housing. For more information on the Housing Credit Group, click here.
Toll Says Unsold Housing Inventory Could Burn Off SoonWith inventories “burning off” in many of the nation’s housing markets and home buying incentives on the decline, it could be only a matter of months before the housing industry is in the position to start moving out of the downturn that commenced in late 2005 and early 2006, Robert Toll, chairman and chief executive officer of Toll Brothers, told Citigroup’s Global Industrial Manufacturing Conference in New York on March 8. “When will the inventory burn off? I don’t know,” Toll said. “We’re running at half the pace of inventory of three months ago,” and it could be “another four or five months before you burn off inventory in most of the markets.” In some markets, however, it appears that it “will take a lot longer.” In the last five weeks, Toll said, his company’s sales cancellation rate has declined to 16%, down from a recent high of 36%, but it’s still “horrible because our average cancellation rate is about 7% since being in business.” Tracking the inventory of unsold homes that materialized from the high levels of speculation at the height of the boom market “is key to the analysis of where home builders are,” he said. Market conditions suggest that the duration of the current major housing downturn could come in a bit shorter than the last recession in the early 1990s. “We will be back,” Toll predicted. From the tail end of 1987 through 1991, his luxury home building company saw net profits dwindle from $28 million to a low point of about $5 million. It took about two years to return to the previous high, he said, “and then we kept right on going.” The current down cycle has reduced total profits from roughly $800 million to a mid-range forecast for fiscal 2007 of about $270 million, he said. Surprisingly, Toll said, “we still have speculative investment going on in the market today and we’ve done everything we can to stop it.” That includes having buyers sign multiple documents testifying to the fact that they intend to live in the home and are not investors, and going so far as to check county records to ensure that the buyer doesn’t already own two or more properties in the jurisdiction, in which case “something is not right.” Among markets where Toll may already be on the comeback trail, he said, are the east coast of Florida, Northern Virginia and California. The west coast of Florida, on the other hand, “went so deep into the hole we don’t know if we’ll ever drag ourselves out." In New England, and Massachusetts specifically, things are still getting worse rather than better, he added. Turning With a Vengeance “As soon as the market turns, we think it will turn with a vengeance,” Toll said, and he noted that in markets where builders have been able to reduce home buying incentives or even raise prices there is a big boost in the confidence level of prospective buyers. In the past couple of weeks, he said, Toll had raised prices in 15 communities. Toll cited several trends from which he derives confidence in the outlook for his housing business:
“Once you get through the overhang in the market of speculative housing, price rises will be pretty significant,” he said, predicting that the U.S. is on track to repeat the experience of England and other parts of Europe in the past few years, where half of household income goes to housing, “leaving very little for going to the movies or out to dinner.” Toll said that housing shortages will be felt “much more rapidly as we come out of this downturn, because much less is being fed into the entitlement grinder.” In Westchester County, N.Y., it can take three years to get housing into production once the land is obtained. “In New Jersey, you are lucky to get production in six years. This will be a serious factor during the rebound.” Toll added that he hasn’t noticed a significant decline in the price of land, although it has become easier to negotiate better terms for acquiring it. The crackdown on subprime lending has so far not had any major fallout for his company, he said, but it could pose more of a challenge for the first-time buyer market. Exaggerated news media reports about deteriorating conditions in the housing market continue to erode consumer confidence, he said. “The New York Times every four or five days writes an article on how stupid you’ve got to be to buy a home, which has an impact on confidence in the market.” But “what can hurt us the most” and “what keeps me up at night” are developments in the big economic picture, he said, such as the stock market jitters that occurred in the past two weeks. There’s nothing builders can do about that, he said, but in the meantime economic conditions still remain “decent.” Is the Housing Correction Over? Attend Construction Forecast Conference Will housing demand outweigh affordability hurdles, inventory overhangs and the retreat of investors? Where are home prices headed? Get the answer to these and other questions at the Construction Forecast Conference — Spring 2007 on April 26 in Washington, D.C. Panels of nationally recognized experts will discuss economic trends, government policies, developments in the housing industry and the results from NAHB's recent surveys at the day-long conference. For more information and to register, click here. Can't Attend? Webcast of Conference Also Available The conference is also available via Webcast. For Webcast information, visit www.nahb.org/cfcwebcast. 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 the 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. Mortgage Rates Fall to Lowest Levels of the YearMortgage rates edged down to their lowest levels of the year last week, according to Freddie Mac's Primary Mortgage Market Survey, reflecting recent concerns about the future course of the U.S. economy. The 30-year fixed-rate mortgage was down to 6.14% for the week ending on Thursday, March 8, down from 6.18% for the prior week and 6.37% one year earlier. One-year Treasury-indexed ARMs averaged 5.47%, down from 5.49% in the previous week, but up from 5.45% a year ago. Frank Nothaft, chief economist for Freddie Mac, attributed the recent slide in mortgage rates to “volatility in overseas markets” leading to “questions about implications for the U.S. economy.” “Uncertainties about the strength of the economy dominated the effects of other indicators, such as January’s personal income growth and core inflation rate measured through the personal consumption report,” he said. “Both increased at rates faster than had been expected, and potentially would have put upward pressure on interest rates. But the flight to quality due to the stock market’s fall pushed bond yields down instead.” Nothaft predicted that growth of the Gross Domestic Product would accelerate in the first half of this year to 2.6% and average 3% for the year, “as excess business inventories are worked off and the drag from residential investment diminishes.” Even so, “we do not foresee significant movements in mortgage rates,” he said, “with rates on 30-year fixed-rate mortgages averaging between 6.3% and 6.4% for the remainder of the year.” In the Federal Reserve’s Beige Book released on March 7, reports from business and other contacts around the country indicated ongoing weakness in the housing market, but signs of stabilization in several Fed districts. Contacts for the report noted construction flattening out in Cleveland and Atlanta. San Francisco noted a slowdown in deteriorating conditions, but also cited price declines in some areas. Builders in New Jersey reported some stabilization in the new home market and demand for multifamily units remained strong in New York City. Is the Housing Correction Over? Attend Construction Forecast Conference Will housing demand outweigh affordability hurdles, inventory overhangs and the retreat of investors? Where are home prices headed? Get the answer to these and other questions at the Construction Forecast Conference — Spring 2007 on April 26 in Washington, D.C. Panels of nationally recognized experts will discuss economic trends, government policies, developments in the housing industry and the results from NAHB's recent surveys at the day-long conference. For more information and to register, click here. Can't Attend? Webcast of Conference Also Available The conference is also available via Webcast. For Webcast information, visit www.nahb.org/cfcwebcast. 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. 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.
Is the Housing Correction Over? Attend Construction Forecast Conference Will housing demand outweigh affordability hurdles, inventory overhangs and the retreat of investors? Where are home prices headed? Get the answer to these and other questions at the Construction Forecast Conference — Spring 2007 on April 26 in Washington, D.C. Panels of nationally recognized experts will discuss economic trends, government policies, developments in the housing industry and the results from NAHB's recent surveys at the day-long conference. For more information and to register, click here. The conference is also available via Webcast. For Webcast information, visit www.nahb.org/cfcwebcast. 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 the 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. Building Pros Expect to See Business Improve in 2007Building professionals polled during last month’s International Builders’ Show in Orlando, Fla. aren’t in agreement about the current strength of the nation’s housing industry, but most expect to see their businesses perform better this year than last. Almost 1,300 convention-goers participated in the brief survey, which was conducted on the exhibition floor by KL Communications’ DirectConnect Division. Asked if they agreed that “the building industry is very strong right now,” on a scale of 1 to 5, with 5 indicating complete agreement and 1 total disagreement, 15% of those polled gave the statement a 5 and 30% said 4. About one-fourth were neutral and one-third did not agree. Asked if they expected to see a substantial improvement in their business in 2007 over 2006, 31% completely agreed and 29% agreed, indicated 60% overall concurrence with the statement. Twenty-two percent expressed uncertainty and 18% disagreed. Particularly optimistic about their prospects this year, indicating agreement at the 4 or 5 level, were:
Dealers, distributors and manufacturers were more likely to be involved in green building projects (46%) than other businesses, and those involved in national and international markets were more likely than regional players to be going green (52%). More than half of those participating in the survey were the senior persons in their firm and three-fourths were decision-makers. The respondents represented a wide range of business activities, with custom builders (22%), single-family residential builders (12%) and building/material dealer/distributors (11%) accounting for the largest shares of the participants. Fifty-seven percent of those polled were based in the South, the region of the country that in general has been holding up the best during the current slowdown. The survey also found that those who expect their own business to improve are more optimistic about the current state of the industry (55%). Subscribe to Sales + Marketing Ideas Magazine for Cutting-Edge Information For additional cutting-edge sales and marketing information, subscribe to NAHB’s Sales + Marketing Ideas magazine (www.smimagazine.com). Click here to learn about membership benefits of the National Sales and Marketing Council and the Institute of Residential Marketing. 'Sales and Marketing Checklists' Covers the Ins and Outs of New Home Sales “Sales and Marketing Checklists for Profit-Driven Home Builders,” available through BuilderBooks.com, covers the major steps involved in successful new home sales. Learn the ins and outs of the comprehensive contract, the move-in, warranty service, asking for referrals and a great close. This expanded second edition also includes a new chapter on utilizing technology in your marketing and a more extensive chapter on multicultural sales. To view or purchase this publication online, click here, or call 800-223-2665. Builders’ Tip: Easing Your Load With a Simple Roof-Rack Roller
I use a lot of ladders and planks on my carpentry rounds, but getting them on and off the roof of my van by myself was a hassle. So I developed a very simple solution using PVC pipe to ease my load. To help get ladders and planks on and off the roof of my van, I created a simple roller by slipping a 30-inch long section of 2-inch diameter PVC pipe over the rack’s rear crossbar. That's it. Now, all I have to do is put one end of the load on the PVC pipe and the load slides easily onto the roof rack. Plus, with the roller on only the rear rack, I can leave the width adjuster on the front rack. — George Hennigan, Baldwin, N.Y. 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 the 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. Gender Miscommunication at Root of Job Site ConflictsEven though more women work in the home building industry than ever before, gender-related ignorance, miscommunication, conflict and subtle and not-so-subtle forms of harassment remain unwelcome aspects of their jobs, affecting not only their personal performance, but also workplace and job site productivity and company profitability. Women today make up about 12% of the construction industry workforce, a share that has been rising steadily since 2003, according to the Bureau of Labor Statistics. Yet, while gender miscommunication and conflict affects the entire industry, as a group, women in the industry believe that the burden of overcoming these challenges rests more on their shoulders than their male counterparts. At an NAHB Women’s Council-sponsored seminar, “Building on Mars and Venus — Coping Tips for Women in Building Industry,” held at the International Builders’ Show in Orlando, Fla. earlier this year, construction industry women dissected some of the gender-related challenges they faced and discussed strategies about how to deal with them more effectively. Differing male and female perspectives and perceptions about work are at the root of the conflict, according to the panelists. They also all agreed that women had to be smarter and work smarter than their male co-workers or employees just to be treated as equals and maintain respect on the job. At a very basic level, the panelists said, men and women have differing views about their work, how to get the job done and what motivates them. Women working in this male-dominated industry have to understand these differences in order to communicate better and be more effective, they said.
The ‘Hero Factor’ Vs. ‘Rally the Troops’ “Men tend to stick to their responsibilities and don’t want to take on a task that is someone else’s responsibility,” said Joanne Theunissen, president of the small-volume custom builder, Howling Hammers Builders, of Mt. Pleasant, Mich. Women, she said, will take on the extra work needed in order to get the task done. She also said that men, in general, prefer to work on their own and will “shoot from the hip” when solving a problem. Women, on the other hand, generally will attack a problem by working collaboratively and use checklists to think and work their way through it, Theunissen said. Because men generally are invested in their work, they respond well to what Theunissen described as “hero factor” motivation — praise that complements their work and how they accomplish specific tasks. Women respond better to “rally the troops” motivation and “what’s good for the team” praising, she said. Finally, men prefer to receive criticism in short, succinct doses, Theunissen said. When stressed, they tend to seek “cave time.” Women, on the other hand, generally respond better to criticism when it not only includes what they need to correct, but also what they have done well, what Theusnissen called the “Oreo cookie effect.” Women also tend to manage their stress by listening. Creating a Harmonious Environment Creating a harmonious work environment — with these male-female tendencies working against each other — is one of the most difficult jobs that managers of both sexes have, said Karen Dry, of Garrett Interiors, an interior design firm based in Westlake Village, Calif. Reducing stressful communication problems, she added, can cut employee absences, terminations and resignations by more than 50%.
A painter, she said, will balk at being told to repair drywall damage caused by the plumber before moving on to the next job site. But the painter can be convinced to take on the added work. “Women do have a certain ability to communicate that differs from men, and they can be very effective on the job,” countered Julie Fielek, of Fielek Builders, a custom builder and land developer based in South Lyon, Mich., whose son and daughter work for her. Of course, being the boss also has its advantages. “If you are the boss and you’re having trouble with a trade, they’re not working for you anymore,” Fielek said. Proper Scheduling Can Reduce Gender Conflicts, Earn Women Respect All three women on the panel agreed that scheduling and good organization “are absolutely critical” to reducing gender conflicts. Proper scheduling enables everyone on the job, men and women, to understand what needs to be done — and when. Effective scheduling also helps women overcome their general tendency to avoid delegating and doing the work themselves instead. “A woman may stay on the job longer just to get the job done,” Theunissen said. “With all tasks clearly laid out in a schedule, everybody knows their obligations.” Scheduling also sets job expectations that, when met, will go a long way toward helping women earn the respect of the men on the job. “When the job is done, you want all the guys on the job to see you as the person who gets the job done,” said Fielek.
Like it or not, the panelists all acknowledged, perception in a testosterone-driven industry can trump reality. Women, they said, are often judged not by their actions on the job site or within their company, but by how they dress and talk, and on what they know. “You will never see me on a job site in high heels,” said Theunissen. “I’m often seen at a closing in blue jeans and a blazer. I always have a blazer in the back seat because my job takes me all over at all times.” “My language, how I react when I’m angry, is different than my male counterparts,” Theunissen added. Beyond dressing and carrying themselves appropriately, women also have to maintain a high level of professionalism, the panelists agreed. “Ask the women in your company. They know they have to go above and beyond,” said Dry. Education, Education, Education “You have to maintain a professional attitude,” added Fielek. “The key for women going into construction is that when you show up on a job, you have to know what you are talking about. Educate yourself. Take every opportunity to learn.” “The more you know, the more you will be taken seriously by the men you work with, and the more they will learn to respect you,” she said. Sexual Harassment — Policy and On-the-Job Reality The panelists all agreed that there was no room for sexual harassment in the industry. “We have a zero tolerance policy at all my jobs,” said Fielek. “One goof-up and you’re out of there.” However, they also cautioned that women in the industry recognize gender-related ignorance and miscommunication for what it is and treat it as such. “Not every experience is sexual harassment,” Theunissen said. “You need to be cognizant of other people’s communication styles.” As the same time, they also said that men also have to change with the changing workforce environment. “Right now, if you’re not issuing men their paychecks, they’re sizing you up as soon as you get on the job site,” said Dry. “Their perceptions need to change.” Ultimately, Dry said women need to improve their communication skills so that the men on the job know exactly what they mean and what is expected.
50+ Housing Symposium Features Three Housing ToursThree housing tours showcasing different market segments of the 50+ housing industry — active adult communities, service-enriched communities and transit oriented development (TOD) — will be offered at the upcoming Building for Boomers & Beyond: 50+ Housing Symposium 2007 in Denver. The symposium will be held at the Hyatt Regency Denver at the Colorado Convention Center from May 30-June 1. Each of the three community tours will be held Wednesday, May 30, from 8:00 a.m. to 4:00 p.m.
The cost for each tour is $95 per person and includes transportation and lunch. (Note: Tour fees are in addition to symposium registration fees.) To Register for the Symposium Register online for Building for Boomers & Beyond: 50+ Housing Symposium 2007 by clicking here. Register online by March 30 and save $100 off the registration fee. The housing tours fill up fast, so register early. “Boomers on the Horizon: Housing Preferences of the 55+ Market,” available through BuilderBooks.com, can help you better build and market homes to this age group. Capitalize on the niches, needs and opportunities of this rapidly growing market by learning their preferences. To view or purchase this publication online, click here, or call 800-223-2665 Rental Apartments on the Mend as Condos RecedeFueled by increased household demand for rental units and a depleted supply from the earlier conversion of rental apartment buildings to condominium ownership, the rental apartment market is on the rebound, with builder expectations for market-rate rental starts surging to 69.5, a nearly 18-point increase, in NAHB’s Multifamily Rental Market Index (MRMI) for the fourth quarter of 2006. “We are forecasting that the rental and for-sale sectors of the multifamily market will rebalance during the next two years, with about one-third of multifamily starts representing condos and nearly two-thirds representing rentals by the end of 2007,” said David Seiders, NAHB’s chief economist. “Last year, the for-sale market had grown to represent nearly half of all multifamily starts, a record share, and a correction now is under way.” Builders also are expecting a slightly higher level of low-rent starts as well, perhaps reflecting the improved congressional climate for funding affordable housing. The production level of subsidized apartments held steady throughout the recent housing boom. The MRMI is on a scale from 0 to 100, with 50 generally indicating that the number of positive and negative responses is about the same. The occupancy components of the MRMI are still strong — standing at 59.2 during the fourth quarter for luxury (Class A) apartments, 55.1 for moderately-priced (Class B) and 58.6 for lower-rent (Class C) apartments. The occupancy components for better-quality apartments were down slightly on a year-over-year basis, possibly reflecting increases in supply, due to recent conversions to rental from the condo market. Respondents in the survey on which the index is based reported that their rental vacancy rates are up, rental units are remaining empty for longer periods of time and rents have dropped slightly since late 2005. When asked about their expectations for rental occupancy over the next six months, multifamily builders and developers expressed optimism, posting MRMI index numbers of 68.4, 64.1, and 65.3 for Class A, Class B, and Class C apartments, respectively. The volume of calls from prospective renters rose from a level of 54.0 in the fourth quarter of 2005 to 58.8 in the final three months of last year. For more information, e-mail Ann Marie Moriarty at NAHB, or call her at 800-368-5242 x8350.
Register Now for the Multifamily Pillars of the Industry Conference Attend the 2007 Multifamily Pillars of the Industry Conference and Awards Gala, the premier industry event for the multifamily industry, on April 11-13 at the Westin Diplomat Resort and Spa in Hollywood, Fla. For more information, click here. To register online, click here. The advanced registration deadline is Friday, March 23. Remodeling Holds Steady Despite Housing SlumpRemodeling activity remained steady in the fourth quarter of 2006, according to the NAHB Remodeling Market Index (RMI), with the component measuring industry perceptions of current market conditions rising slightly from 47.8 to 48.2 on a seasonally adjusted basis and future expectations climbing to 46.0 from 45.4. “Remodeling retained strength across most of the country compared to late last year,” said NAHB Remodelers Chairman Mike Nagel, CGR, CAPS, a remodeler from Chicago, Ill. “Certainly regional economies and housing markets play an important role, but overall we see maintenance of high levels of remodeling activity and solid future prospects.” The RMI component for the rental market registered a strong increase in activity in the forth quarter, with current conditions increasing from 38.8 to 44.1 and future expectations rising from 37.1 to 42.4. By comparison, current remodeling market conditions for owner-occupied units dropped from 51.4 to 49.7, while future expectations for this sector edged up from 45.0 to 45.6. “Though the substantial reductions in home sales and new housing production have had an impact on the remodeling market to some degree, we feel that remodeling of both owner-occupied and rental housing will remain strong compared to other areas of the industry,” said NAHB Chief Economist Dave Seiders. “With record levels of home-owner equity and the constant need to upgrade the older housing stock, the remodeling outlook appears quite good for years to come.” Regionally, the South reported the most growth, with current conditions increasing to 52.8 and future expectations moving up to 51.1. The current conditions in the West grew to 52.4 but future expectations fell to 51.3. In the Northeast, current conditions moved down to 45.7 while future expectations increased to 50.1. Only the Midwest showed declines in both indexes, with current conditions decreasing to 44.4 and future expectations dropping to 35.7. In a special section of the survey on which the index is based, remodelers were asked about subcontracting. Approximately one-third of a remodeling company’s work by dollar volume was subcontracted out, according to the responses. The median value of a general contractor’s subcontracted work in 2006 was $289,500 (with an average of $572,323), against a median dollar volume of $848,214 for general contractors last year. Only 17% of the remodelers who were surveyed reported acting as a subcontractor for other firms, and among all remodelers, work as a subcontractor accounted for only 2% of their dollar receipts. For more information, e-mail Jim Lapides at NAHB, or call him at 800-368-5242 x8451. How Does Your Remodeling Business Measure Up? The “Remodelers’ Cost of Doing Business Study,” available through BuilderBooks.com, is a comprehensive assessment of the growth and viability of the remodeling industry that enables remodelers to see how their business stacks up against the competition. Conducted by the NAHB Economics Group and the NAHB Remodelers, the study provides a statistically accurate analysis of the remodeling industry in terms of size, profitability, time in the business, business organization and staffing. The study allows remodelers to compare key business statistics, such as gross and net profit margins, against results from the most successful remodelers. To order the “Remodelers’ Cost of Doing Business Study” online, click here, or call 800-223-2665. N.C. Panelizer William Dudley Named 2007 Chair of BSC
A second generation home builder, Dudley is president of Carolina Model Home Corporation (CMH), which was founded in 1957 to create affordable, quality built homes. CMH opened its panel manufacturing facility in 1969 for the express purpose of offering high-quality building components, efficient and cost-effective construction processes and state-of-the-art engineering methods. “The diverse applications of today’s systems building represent an increasing segment of the home building market, and one which I believe will continue to grow and evolve for many years to come,” said Dudley. As chairman, Dudley will oversee six sub-councils and supporting committees. Dudley will also represent the councils’ interests throughout the industry and the NAHB federation. “In my 10 years with the Building Systems Councils, I have discovered that the BSC members are a unique group of manufacturers and builders — all with a strong entrepreneurial spirit — who have volunteered to work together to grow our industry. I am honored to be chosen as chairman of such a dedicated group,” Dudley added. Mark Your Calendar for the BSC Modular and Panel Plant Tour Save the date for the 2007 Building Systems Councils Modular and Panel Plant Tour from May 20-22 in Roanoke, Va. The tour will provide interested builders the chance to go behind the scenes of the fastest growing segment of the residential construction industry with visits to up to four manufacturing facilities in just two days. Builders on the tour will see the quality and efficiency of modular and panelized homes and have the chance to meet and network with building systems professionals from across the country. For more information, click here. Concrete Tour Mixes Latest Trends, Networking, Plant VisitsThe latest advances in concrete construction, production, materials and design will be showcased at the 2007 Concrete Home Building Council Concrete Technologies Tour in Minneapolis on May 6-8. The tour will feature educational programs, networking and behind-the-scenes tours of six cement-based building materials and manufacturing facilities. Plants on Tour The plants on the tour include:
To Register Early bird registration rates are available until Monday, March 19. For more information and to register, visit www.nahb.org/concretetour. ‘Concrete at Home’ Available at BuilderBooks.com “Concrete at Home,” available through BuilderBooks.com, offers tips on incorporating concrete architectural elements such as counters, sinks, columns and water pieces into a project. To view or purchase this publication online, click here, or call 800-223-2665.
Presenters Wanted for 2007 Custom Builder Symposium
NAHB is seeking presenters for the 2007 Custom Builder Symposium, the association’s premier event for custom builders. The symposium will be held Oct. 26-29 at the Naples Grande Resort & Club in Naples, Fla. Presentation submissions are due by Thursday, April 5 and must be submitted online. NAHB seeks presenters who have proven ideas for building more productive relationships with architects and trade partners, improving marketing, smoothing the selections process, taking control of customer service and warranty, new design ideas or any other area of the custom home building process. Symposium Features Tours, Education, Golf and More The symposium will include:
To learn more about the Custom Builder Symposium, go to www.nahb.org/custom. To read more about presenting at the symposium, or to submit a proposal, click here. 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 the 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. Springfield Builders Launch Voluntary Green ProgramThe Home Builders Association of Greater Springfield, Mo. is the latest HBA to launch a residential green building certification program for its members. And to drive home the extent of its commitment, the association is launching the program in time for the dedication of its new headquarters, which has been built green. The new building “will work out really well as the launching point for our green building initiative,” said the association’s executive officer, Matt Morrow. The Springfield certification program is based on NAHB’s Model Green Home Building Guidelines, which are now being reworked in a cooperative effort with the International Code Council to become the first-ever residential green building standard. The program is the 16th state or local program to be based on the national model. Springfield builders are relying on the expertise and experience of the St. Louis and Eastern Missouri green building program, which was launched two years ago and now has more than 100 homes going through its green certification process. And for Springfield home builders, it’s the right time to go green, Morrow said. Association leaders made the commitment to a green building program after completing their latest strategic plan in September. “For us, the reason is we want to own this issue,” Morrow said. “It’s an important one that’s going to affect our industry for years to come, and we want to get our marker down early.” By launching its own program, the association can help define green building for the community and make sure it encompasses issues of importance to the industry, specifically affordability, Morrow said. “Launching this program shows that we are responsible, and it allows us to paint an accurate, positive image for our members in the community. It all comes down to how the whole home building industry embraces its opportunity to lead.” The association has a willing partner in its local utility company, City Utilities of Springfield, as well, he said. The HBA supported efforts to build a new power plant with more capacity — running a campaign that won approval by a 59% to 41% margin. City Utilities supports green building because increasing home energy efficiency will help extend the useful life of the new plant when it’s built. Morrow credits builder Sam Bradley for his green leadership. “It happened that we had outgrown our last building and sold it in October, and that of course coincided with the new strategic plan at that time,” Morrow said. “Sam was selected to be the contractor for our office project and he recommended using our building as a demonstration project of sorts — to use green building techniques and products with a practical residential application, even though it’s a commercial building. Sam has excellent vision. He pitched it to our board and they jumped all over it.” Bradley himself said that the project has been a cooperative effort. “We bought a condo shell, a wood structure with a composition roof and brick exterior pretty much equal to the homes being built in our area, so we wanted to do things that can easily be translated into residential building,” he said. That meant specifying low-VOC paints, carpets made of recycled materials, water-conserving toilets, water heaters with timers, a sealed attic to provide conditioned space for the ductwork and similar green, resource- and energy-efficient features, he said. “It just dawned on me that if we could incorporate green building practices in our offices, it would be an awesome thing,” Bradley said. The association’s leadership is already having an impact on an initiative to mandate green building that was being promoted by the local chapter of the U.S. Green Building Council. Now, the HBA has “a seat at the table” in discussing those green building mandates, “and if you don’t have a seat at the table, you’re probably the meal.” Bradley said. USGBC’s LEED certification is too expensive and if mandated would drive up the cost of housing, Bradley said. “We could have received their certification easily, and even at the discounted rate it was going to run us between $13,000 and $15,000 to do that,” Bradley said. “We have better things to do with our money, so we passed on that.” For more information on NAHB’s green building resources, e-mail Calli Schmidt, or call her at 800-368-5242 x8132. Free NAHB Environmental Stewardship Brochure Available “Stewardship: The NAHB Environmental Issues Committee at Work” is a new, free brochure available from NAHB that outlines the environmental issues the committee — working with NAHB’s environmental, regulatory and legal staff — has faced and what the committee did to help preserve needed environmental balance. The committee’s work is central to the NAHB mission as federal, state and local agencies enact myriad rules and regulations that erode housing affordability while providing dubious benefit. By developing, implementing and completing research strategies, NAHB has created and reinforced its role of advising and directing regulators’ activities and pursuing reform. Bulk copies of the brochure are available free to environmental committees and others interested in learning more about the home building industry's environmental stewardship efforts. Click here to view the brochure. To order free copies, e-mail Delecia Jenkins at NAHB, or call her at 800-368-5242 x8163. Download Green Building Intelligence Today From BuilderBooks.com “Residential Green Building SmartMarket Report,” which addresses the growing trends and opportunities in green home building, is available and can be quickly downloaded through BuilderBooks.com’s Digital Delivery service. Available through Digital Delivery only, the report provides the results of market research conducted by McGraw-Hill Construction and NAHB about green building in home construction. To download this publication from BuilderBooks.com, click here. Attend the 2007 National Green Building Conference Attend the 2007 National Green Building Conference in St. Louis on March 25-27. The conference includes educational sessions on construction, the environment, conservation, energy, recycling, finance and marketing — with real world applications. In addition, there will be a green building/technology tour of green building projects in the St. Louis area. Onsite registration is available. Click here for conference information, or visit www.nahb.org/greenbuilding on the NAHB Web site to learn more about green building. Green Standard Process Begins With April MeetingThe first meeting of the Green Building Standard Committee will be held April 19–20 at the National Housing Center, 1201 15th Street, NW. in Washington, D.C. The committee of industry professionals headed by NAHB and the International Code Council is charged with creating the first-ever consensus-based residential green building standard. The standard will be based on NAHB’s Model Green Home Building Guidelines. The Research Center — an American National Standards Institute (ANSI) accredited standards developer — is serving as secretariat of the standard development process. Applications for the consensus committee were due last week, and the committee will be finalized by March 28. The preliminary agenda for the first meeting is posted at www.nahbrc.org/gbstandard, where additional information about the standards process is also available. While the meeting is open to the public, those wishing to attend must send an e-mail to standards@nahbrc.org.
Attend the 2007 National Green Building Conference Attend the 2007 National Green Building Conference in St. Louis on March 25-27. The conference includes educational sessions on construction, the environment, conservation, energy, recycling, finance and marketing — with real world applications. In addition, there will be a green building/technology tour of green building projects in the St. Louis area. Onsite registration is available. Click here for conference information, or visit www.nahb.org/greenbuilding on the NAHB Web site to learn more about green building. Design Matters. Register Now for the Design InstituteIn a competitive market, design can be a difference. At the NAHB/BALA Design Institute for Builders, the only design conference specifically for building industry professionals, you'll learn the latest in residential housing design trends from the industry's top professionals, tour beautiful award-winning homes and communities that display the best in cutting-edge architectural design, and learn how to profitably apply these design ideas to the homes you build. The Design Institute will be held June 25-77 in Bellevue, Wash. (near Seattle) To register and for more information, visit www.nahb.org/designinstitute. Builders to Continue to Slog Through Wetlands ProcessThe U.S. Army Corps of Engineers published changes for the next five-year Nationwide Permit (NWP) cycle last week, almost two months past its deadline, assuring that builders will experience delays in obtaining wetlands permits. Meanwhile, there does not seem to be adequate justification for the changes the Corps has proposed, nor incentives that would encourage builders to apply for nationwide permits rather than individual permits, said NAHB Director of Water and Wetlands Marolyn Parson. “Once again, the Corps has lowered the threshold requirements and broadened jurisdiction to include ephemeral waters, requiring permits for a wider variety of projects,” Parson said. “That doesn’t do much to streamline the process, even though that was the intention of these permits.” The federal Clean Water Act requires the Corps to reauthorize the NWPs every five years, and the current permits expire on March 19. The final NWP regulation must be published at least 60 days before its effective date so that Corps district offices have time to finalize so-called Regional Conditions, and states and tribes have time to issue local Water Quality Certifications and Conditions. This delay, in addition to stalling new projects, also may affect ongoing building and development projects if the Corps does not come up with interim guidance to cover the period between March 12, when the Corps issued its permit, and May 9. NAHB continues to monitor the Federal Register and will notify members if it appears, she said. While threshold requirements have been lowered, the Corps' proposed replacement permits contain few significant changes from the existing NWP program, Parson said. Regulators still have not issued guidance on the "significant nexus" issue raised in the Rapanos and Carabel U.S. Supreme Court decisions last June, in which justices urged the federal Environmental Protection Agency and the Corps to come up with clearer rules on when wetlands are considered jurisdictional and permits are necessary under the Clean Water Act. In the meantime, developers can still take action:
Holding Pond Not Subject to Clean Water Act, Court RulesHome builders seeking clarity on Clean Water Act regulations got one step closer on March 8 when the Ninth Circuit U.S. Court of Appeals reversed a lower court ruling in San Francisco Baykeeper v. Cargill Salt Division, deciding that a pond is not covered by the law. NAHB filed a friend-of-the-court brief in this case. “These regulatory burdens translate into expenses that increase the price of homes,” said NAHB President Brian Catalde. “We need to stop this bureaucratic expansion on behalf of our home buyers.”
In Baykeeper, the district court ruled last year that a holding pond used to deposit waste saltwater from Cargill’s salt-making business was subject to regulation under the act because it is next to Mowry Slough, a navigable tributary of the San Francisco Bay.
However, Judge William C. Canby Jr. pointed out in last week’s decision, an earthen berm separates the pond from the slough. “We conclude that mere adjacency provides a basis for [Clean Water Act jurisdiction] only when the relevant waterbody is a ‘wetland,’ ” he said.
Thursday’s decision is particularly striking because it came from the Ninth Circuit, said Randy Lee, chair of the NAHB Legal Action Committee and a lawyer and developer in New York City. “This is the most environmentally-oriented court in the country, yet it has limited the scope of the Clean Water Act in a very important way. The Ninth Circuit has recognized that both Congress and the U.S. Supreme Court do not allow federal regulation over any and all water in the United States. The court made it crystal clear that there are limits on what the federal government can regulate. This is a great victory for NAHB's members.”
Arguments on both sides of the case also focused on whether the pond had a “significant nexus” to the slough, the test created by Supreme Court Justice Anthony M. Kennedy in last year’s Rapanos and Carabell decision, in which NAHB also submitted an amicus brief. Judge Canady said that test only applies to “wetlands with a significant nexus to a navigable-in-fact waterway” — and not to ponds or other non-wetland waters.
And even if the test were applicable, there was not enough evidence to find that the pond had a significant nexus to the slough, the court said, a point that NAHB made clear in its brief.
The Clean Water Act was originally written to cover “navigable waters of the United States,” but since then jurisdiction has stretched in some cases to cover roadside ditches, curbs and gutters and ephemeral desert washes — sparking a wave of lawsuits.
And almost a year after the Rapanos decision, the Corps has yet to act on its stated intention to issue clearer guidance to builders, leaving home building projects on hold or in limbo, driving up costs and eventually impairing housing affordability.
In its Baykeeper decision, the circuit court said that the lower court was incorrect when it found that “‘the same characteristics that justify protection of adjacent wetlands …apply to adjacent ponds.’ This analysis was improper.”
“We should all want the same thing: protection for the nation’s water supply. But the rules about how to achieve that need to be clear, for the sake of all of us,” said Catalde.
“Let’s keep our environmental regulations strong, but make them sensible. Make them consistent. Our nation’s home builders — and our nation’s home buyers — deserve no less,” he said.
For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132.
Job Corps Electrician Earns NAHB President’s AwardIn recognition of his ability to overcome adversity and achieve success in the home building industry, Franqee Higgins, 32, an electrical inspector working for the City of Wylie, Texas, has won the NAHB President’s Award. The award was presented to Higgins on Feb. 8, during the NAHB board meeting at the International Builders’ Show in Orlando, Fla. In his presentation of the award, 2006 NAHB President David Pressly remarked that Higgins had used “grit and determination” to accomplish his goals. “He reached deep inside and found the resolve within that would take him to where he is today,” he said. Higgins graduated from HBI’s electrical program at the Guthrie Job Corps Center in 1998 and began working at several projects in the Dallas area, including the construction of American Airlines Center — home of the Dallas Mavericks — before starting out on his own. While working, Higgins continued to further his education, adding a professional inspector’s license to his license as a Texas journeyman. Shortly after, he opened his own business and today makes $70,000 a year working for Wylie. Dallas builder and Home Builders Association of Greater Dallas President T.W. Bailey congratulated Higgins on his accomplishment and mentioned that he had a project awaiting his inspection upon his return to Texas. Higgins’ former Job Corps instructor Phillip Orr was also on hand at the Orlando awards ceremonies to offer his praise. “In the 20 years I have been teaching the electrical trade, Franqee is probably the most exceptional student I’ve ever trained,” said Orr. “He was just a real pleasure to have in the classroom, always eager to learn, and the other students had a lot of respect for him. I’m very proud of what he accomplished in Job Corps and of the man that he has become today.” A National Public Radio interview with Higgins aired on March 12. To download the interview from the broadcaster’s Web site (npr.org), click here. For more information, e-mail Maria McIntyre at HBI, or call her at 800-795-7955 x8912. Wiseman Award Recognizes Electrician’s Exceptional PromiseSabrina Turner, 29, was presented with the Shirley McVay Wiseman Award for Exceptional Promise during last month’s International Builders’ Show (IBS) in Orlando, Fla. Named after the former NAHB president and HBI trustee, the award is presented annually to a female Job Corps graduate who has overcome significant challenges to demonstrate the potential for outstanding success in the residential construction industry. Wiseman, who presented the award and a $1,000 check from 2-10 Home Buyers Warranty Company, called Turner “living proof” of the effectiveness of Job Corps. “She wanted to make a better life for her children and put her trust in Job Corps and HBI to help her do it,” Wiseman said. As a student at the Golconda Job Corps Center in Illinois, Turner excelled in John Gaddis’ electrical class and was active in extra-curricular Job Corps activities as captain of the softball team and a volunteer for the Special Olympics. She soon became a mentor to other students and served as a staff assistant. For her efforts, Turner was named the HBI Student of the Month, as well as the overall Student of the Month for Golconda’s Vocational Department. After graduation, Turner started an electrical apprenticeship at the International Brotherhood of Electrical Workers (IBEW) and became a journeyman electrician earning $33.75 an hour. Working in the industry, Turner gained the confidence to go out on her own and in 2005 established Chicago-based Turner Installations. Enjoying early success, Turner was able to hire employees to work with her and is in the process of starting a branch of her company in Ohio. “From the beginning, Sabrina excelled in her trade and from then on she rose to every challenge I presented her,” said HBI electrical instructor John Gaddis. “She has overcome many obstacles to achieve her goals and is most worthy of this award.” For more information, e-mail Maria McIntyre at HBI, or call her at 800-795-7955 x8912. Stone Enhances Selling Points of Outdoor Living AreasIn today’s slower housing market, Owens-Corning is providing builders with products designed to boost sales by responding to growing consumer interest in energy-efficiency, outdoor living spaces and indoor comfort. “Some total — comfortable, quieter, more energy-efficien |