Nation's Building News Online: April 2, 2007Print All Articles Text Version |
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Green Building to Become a $40-$50 Billion Market by 2010More than 1,000 housing industry professionals in St. Louis last week to attend the ninth annual NAHB Green Building Conference heard that sustainable building products and techniques are advancing quickly into the mainstream and that NAHB is moving aggressively to bring the movement to national prominence. Based on a survey of NAHB home builders conducted last year by McGraw-Hill Construction, up to 10% of the homes built in 2010 — a $40 billion to $50 billion market — are expected to be green, containing at least three of five green building elements. That represents a major upsurge of activity in the green market. Last year, according to McGraw-Hill estimates, an estimated 2% — or $7.4 billion — of the residential construction market was green. “It is interesting that people are really starting to commit to building green homes, moving away from just adding energy-efficient appliances,” said Harvey M. Bernstein, McGraw-Hill Construction’s vice president of industry analytics, alliances and strategic initiatives. “Though it’s still a small number, builders are already getting it when it comes to the value of green homes, and it appears home owners are too.” A new home buyer survey by the company has found a high degree of customer satisfaction with green homes. Sixty-three percent of the green home buyers in the poll said that their green purchases were motivated by the lower operating and maintenance costs that come with energy- and resource-efficient homes. Eighty-five percent of the green home buyers said they were more satisfied with their new green homes than with their previous, more traditionally built homes. The public interest in sustainability extends into the existing market, with the survey finding that about 40% of home owners who had recently completed remodeling or renovation work on their properties had used green products or materials. “We’re excited that green home owners are so happy, and that this new research quantifies this customer satisfaction. But we are certainly not surprised,” said Ray Tonjes, chairman of the NAHB Green Building Subcommittee and a home builder in Austin, Texas. “NAHB and its members have been leaders in the voluntary movement to increase the efficiency and quality of homes in America. This suggests we’ll maintain our market share and only continue to grow.” Ninety-two percent of the builder members participating in the McGraw-Hill research said that they are moving toward green building because it’s “the right thing to do.” “NAHB understands the importance of green building and the increasing prominence it plays on the national stage,” said Bob Jones, the association’s vice president and secretary. “Yet we are not resting on our laurels. We are committing new resources to green building. It’s time to step up and demonstrate what it means to be the leaders in the residential green building marketplace.” Jones said that he will be overseeing the association’s green building efforts and the activities of the NAHB Research Center throughout his five-year tenure as an NAHB Senior Officer, and he noted that the national movement to environmentally-sensitive construction will be hastened by the arrival of the first-ever green building standard now being developed by NAHB and the International Code Council. “This standard will be based on our Model Green Home Building Guidelines, which is the proven, rigorous yet very flexible document that has allowed builders to create green building programs and — more importantly — build green homes all over the country.” The NAHB Research Center received more than 270 applications from building industry representatives to sit on the ANSI National Green Building Standard Committee. The membership list has been posted on the green building standard Web page, and the first meeting is set for April 19-20 at the National Housing Center in Washington, D.C. The standard is on an expedited timetable, with an estimated publication date of early 2008. “It’s time for a standard for green building,” said Jones. “But it needs to be a very special standard. It needs to reflect the architecture, the geography and the weather and temperature patterns of the place where the home will be built. It needs to recognize the wide divergence of consumer tastes, preferences and local conditions. And it needs to avoid costly mandated practices that can cause housing to fly out of the reach of potential home buyers.” At its winter meeting in Orlando, Fla. in February, the NAHB Board of Directors adopted policy that will give further impetus to green building by encouraging market-driven improvements in new and existing housing that will help reduce greenhouse gasses. In the process of paving the way for mainstream green building, NAHB will be working to provide voluntary alternatives to the push for green building mandates now occurring around the country. “Those who want mandates may be well-meaning, but they are misguided,” said Jones. “A mandate based on LEED-H, which is the program that many of these initiatives reference, will not make a home any greener than one built to the NAHB guidelines of other successful green programs that predate our two-year-old guidelines. It will, however, make it less affordable.” Right now, NAHB staff members are beginning to survey local home builders association leaders on their thoughts on the formation of a national green building program. The board of directors called for a national program in its February resolution. McGraw Hill research on the size and other characteristics of the green building market also found that:
Extensive coverage of the NAHB National Green Building Conference will appear in the April 9 issue of Nation’s Building News.
Fed Chief Sees Uncertainty in Near-Term Housing OutlookMortgage interest rates remained low last week as housing analysts pondered mixed-signals about the direction of the industry and Federal Reserve Board Chairman Ben S. Bernanke warned the Joint Economic Committee of the Congress of the possibility that problems with subprime loans could make the current market correction worse than expected. “The near-term prospects for the housing market remain uncertain,” Bernanke testified. “Sales of new and existing homes were about flat, on balance, during the second half of the year. So far this year, sales of existing homes have held up, as have other indicators of demand such as mortgage applications for home purchase, and mortgage rates remain relatively low.” However, he noted that new-home sales have declined and the slowdown in production has still not worked down the unsold inventory to levels that will support a resurgence in activity. Existing home sales were up in February to a 6.69 million annual pace, their highest level since last April, but new-home sales faltered during the month, declining to a seasonally adjusted yearly rate of 848,000, which was the lowest point since June 2000. “Even if the demand for housing falls no further, weakness in residential construction is likely to remain a drag on economic growth for a time as home builders try to reduce their inventories of unsold homes to more normal levels,” Bernanke said. Turning to the sharply rising delinquencies in recent months on variable-interest-rate loans to subprime borrowers, Bernanke said that the implications are not entirely clear. “The ongoing tightening of lending standards, although an appropriate market response, will reduce somewhat the effective demand for housing, and foreclosed properties will add to the inventories of unsold homes,” he said. “At this juncture, however, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained. In particular, mortgages to prime borrowers and fixed-rate mortgages to all classes of borrowers continue to perform well, with low rates of delinquency. We will continue to monitor this situation closely,” Bernanke said. He also told Congress that it is likely that the U.S. economy will continue to expand at a moderate rate over coming quarters. “As the inventory of unsold new homes is worked off, the drag from residential investment should wane.” In the results of its Primary Mortgage Market Survey for the week ending on Thursday, March 29, Freddie Mac reported that the 30-year fixed-rate mortgage had remained unchanged from the prior week, averaging 6.16%, which was down from 6.35% for the same week one year earlier. One-year Treasury-indexed hybrid adjustable-rate mortgages averaged 5.88%, down from 5.91% during the previous week but up from 5.51% a year earlier. “Despite concerns about possible spillovers from the troubles in the subprime market, rates on 30-year fixed-rate mortgages remained stable,” said Frank Nothaft, chief economist for Freddie Mac. “The ample liquidity provided by Freddie Mac in the conventional conforming mortgage market has helped keep rates down, supporting affordability and aiding in the ultimate recovery of the housing market.” Meanwhile, NAHB Chief Economist David Seiders said that “the evolving mess in mortgage markets threatens home sales and housing production” for the balance of this year and possibly into 2008. “NAHB’s forecasts for both home sales and housing production have been trimmed recently, and we now expect single-family housing starts in 2007 to be the lowest since 1997,” Seiders said. “We’re still looking for some recovery in 2008, although our current forecast for housing starts is well below our estimate of the sustainable trend level of production. In these terms, the major ‘correction’ process that began in the fall of 2005 will extend at least through 2008.” For a more in-depth look at the latest developments in the housing market, click here to read Seiders’ “Eye on the Economy” reprinted in this issue of NBN.
How Deep Is the Housing Correction? Attend Construction Forecast Conference Will housing demand outweigh affordability hurdles, inventory overhangs and the retreat of investors? Where are home prices headed? Get the answers 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 in Person? Webcast of Conference Also Available The conference is also available via Webcast. For Webcast information, visit www.nahb.org/cfcwebcast.
Want to Know Your State’s Starts Forecast for 2008? Find out in HousingEconomic.com’s State Starts Forecast (sample). The starts forecast includes downloadable Excel tables of total, single-family and multifamily starts by region and state. To learn more, visit www.housingeconomics.com.
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. ‘Buy Now’ Advertising Assistance Nears $1 Million. Apply Now.If 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” matching advertising assistance grant from NAHB. HBAs from around the country have already applied and have begun to receive their assistance funds. To date, 38 local associations have applied for advertising assistance grants from the $1 million to be awarded during the first phase of the program, and $932,429 has been approved. The total cost of the campaigns is $3.5 million. Another $2 million will be made available if the program is successful, and HBAs are encouraged to apply now. 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:
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. 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. Housing’s Impact on Jobs Seen SpreadingFalling home prices in some markets and rising defaults on subprime mortgages have raised concerns that housing problems may spread to mainstream lenders, hurt consumer confidence and affect the broader economy. Job cuts in real estate and construction rose in the first two months of the year compared with a year ago, according to the outplacement firm Challenger, Gray & Christmas. U.S. construction companies announced 10,000 job cuts in January and February, more than in all of 2005 and 2006 combined. About 45,000 jobs were lost last month among specialty contractors, according to the Bureau of Labor Statistics, which attributed part of the drop to winter weather. Bernard Markstein, NAHB’s director of forecasting, said that layoffs don’t immediately follow slumps, since many builders try to hold on to their skilled workers, or shift them to nonresidential sites, where prospects are brighter. The full impact hasn’t been seen yet, he said. “We expect further declines in employment within the construction industry because nonresidential construction and remodeling is not going to pick up all of the reduction.” (www.reuters.com)
Effects of Slow Housing Market Are WidespreadEconomists in South Florida are talking about a new cost-consciousness among consumers who had relied heavily upon their houses for their net worth and are now watching the housing market slow down. That new consumer psychology is rippling through the region’s economy and is already hurting some of its biggest companies, including industries as varied as car dealerships, cruise lines and shippers. In February, although prices remained relatively flat, sales of existing single-family homes were down 31% in Miami-Dade and 20% in Broward compared to a year ago, according to the Florida Association of Realtors®. The condo numbers were worse, and inventory has nearly doubled. Until now, City Furniture President Keith Koenig had never seen a decrease in business year-over-year since he and his brother founded the chain in 1994. “This is the best market in the country, but it’s down a little this year, and that is the first time I have ever said that,” said Koenig. The South Florida-based furniture retailer’s 19 stores saw about 10% slower sales in January and February compared to last year. “The consumer is being careful with the dollar.” Last year, 16% of the new car purchases in Florida were made with home equity loans, said Art Spinella, president of Oregon-based market research firm CNW Research. That compares to 9% in 2000. Florida and California have been hurt the most in terms of auto sales, said Spinella, and the No. 1 reason for the decline in auto sales in California is its housing market. In Florida, it’s “in large part” due to housing. (www.miamiherald.com)
Average Seattle Worker Can’t Afford to Live HereMany in Seattle agree that the time has come to do something about the fact that those with decent jobs can’t afford homes here. Last year, the typical single person in Seattle earned enough to buy a home just under $200,000, while the typical family of four had enough to pay just over $280,000, according to the U.S. Department of Housing and Urban Development. The median prices, on the other hand, were about $450,000 for a house and $290,000 for a condo. While rents are more affordable, many median-income workers choose to buy and commute rather than rent. Just 49% of people who work in Seattle live in the city. The percentage is highest among those with the lowest incomes, who qualify for housing help and are unlikely to afford to buy in or outside the city. Employers agree that housing costs are becoming an issue when hiring. Companies have a harder time attracting and keeping workers and may even move where employees can afford homes. “Jobs follow workers,” John McIlwain, a senior Urban Land Institute fellow, warned recently. (www.seattlepi.nwsource.com)
Atlanta Housing Market Remains PositiveEven in the midst of a worrisome national slump in home sales, metro Atlanta’s relatively dynamic housing market makes the city a mecca for home builders, who are finding a good supply of first-time buyers, inexpensive land and affordable homes — something of an anomaly. Unlike most metro areas around the country, Atlanta supports a panoply of home builders who jockey aggressively for buyers of starter homes under $250,000, which account for a majority of home sales here. David Ellis, executive vice president of the Greater Atlanta Home Builders Association, said the top 10 builders in metro Atlanta control about 18% of the new-home market, compared to other cities where the market share of top companies is much higher. In Orlando, Fla., the top 10 builders command almost 50% of the market and the top builder controls almost 12%, according to the latest figures from NAHB. Atlanta-based Beazer homes, the nation’s ninth largest public home builder, doesn’t even appear on the list of the metro area’s top 10 builders, while regional companies such as John Wieland and Neighborhoods and McCar Homes do. Steve Palm of Smart Numbers, a database that provides information to home builders, called Atlanta’s home market “extremely fragmented,” with the builder with the top market share having only about 3%. The bulk of metro Atlanta’s new single-family, detached homes sold for $250,000 or less in 2006. Of about 40,000 such houses built last year, about 23,500 fell into the starter-home price range. However, demand has fallen behind in the market and the backlog of unsold houses now averages more than eight months. (www.ajc.com)
Housing Crisis Knocks Loudly in MichiganWithin a square mile of Janet Laitis’ house in the Detroit bedroom community of Dearborn Heights, Mich. more than half the 96 homes on the market are foreclosed properties, a common situation in pockets of the industrial Midwest, where a record number of people are missing their mortgage payments and losing their homes. While lax lending policies have been blamed for the unfolding home-mortgage crisis across the country, the distress in the Midwest has been exacerbated by a severe drop in manufacturing jobs as the U.S. automobile industry shrinks. Michigan has lost 305,000 jobs since 2001. Economists estimate that 40% of the cuts came from automakers and their suppliers. About 65,000 people moved out of Michigan from July 2005 to July 2006, the U.S. Census Bureau reported. In the last three months of 2006, Michigan was the only state in the nation where home prices fell, dropping 0.4% from the same time in 2005. For most of the past year, Michigan has ranked among the three states with the highest percentage of late mortgage payments and foreclosures, surveys by the Mortgage Bankers Association show. In the fourth quarter, it came in third, behind Ohio and Indiana, with 2.39% of its loans in foreclosure. (www.washingtonpost.com)
Smart Houses Get Slow GradesAccording to focus-group research released last month by the NAHB Research Center, technology-enabled houses appeal to very few builders because they believe smart houses are too complicated, too expansive and cause more problems than they are worth. Perhaps that’s why only one in three builders offers “structured wiring” as a standard feature or an option, according to NAHB. Based on eight focus-group sessions in September in Dallas and Chicago, including production as well as customer builders, researchers found that the term “smart” meant different things to different participants. Some thought it meant houses with alarm systems and home theaters. Others believed it meant homes where everything is possible, and some said they were houses that “control and befuddle residents.” For the most part, they maintained that wholly integrated, technologically intelligent houses cost substantially more than traditional houses. And some were concerned about the reliability of whole-house technology or that it was too involved and would lead to more “callbacks” from buyers experiencing problems. (www.chicagotribune.com)
Improved GSE Reform Bill Heading to the House FloorBy a solid bipartisan vote of 45 to 19, the House Financial Services Committee last week approved legislation that would create a strong independent regulator with oversight of the housing government-sponsored enterprises (GSEs) Fannie Mae, Freddie Mac and the Federal Home Loan Banks. H.R. 1427, the Federal Housing Finance Reform Act of 2007, would strengthen and safeguard the financial health of the GSEs while supporting their ability to fulfill their vital housing mission. Financial Services Committee Chairman Barney Frank (D-Mass.) has indicated that he would like to move the bill to the House floor before the Memorial Day recess. Introduced on March 9, the bill was crafted with input from the Treasury Department in order to receive bipartisan support from the Administration and members of Congress. NAHB Executive Vice President and CEO Jerry Howard testified before the committee on March 15, outlining the association’s position on several key elements of GSE reform, including GSE portfolio limits, minimum capital requirements and a potential bias against for-profit developers in the allocation of funds for the new Affordable Housing Fund established by the bill. As the House panel considered the measure last week, dozens of amendments were offered to address lawmakers’ concerns over specific provisions in the bill and to improve the overall legislation. After two days of deliberations, the House Financial Services Committee last week approved several amendments that NAHB believes will enhance the bill. These include:
To view the House bill, click here and type H.R. 1427 in the box in the center screen. For more information, e-mail Scott Meyer at NAHB or contact him at 800-368-5242 x8144. Mark Your Calendar for the 2007 NAHB Legislative Conference The 2007 NAHB Legislative Conference provides a unique opportunity for builders to speak directly with their members of Congress and to take a stand on the issues that affect their businesses and bottom line. The conference is on Wednesday, June 6 and is a day-long event that coincides with the NAHB spring board meeting in Washington, D.C. Attending the 2007 Legislative Conference offers NAHB members an unparalleled opportunity to:
House Moves to Strengthen Flood Insurance ProgramIn an effort to update and reform the National Flood Insurance Program (NFIP), Reps. Barney Frank (D-Mass.) and Judy Biggert on March 26 introduced H.R. 1682, the Flood Insurance Reform and Modernization (FIRM) Act of 2007. The measure would allow the NFIP to borrow up to $21.5 billion from the U.S. Treasury for insurance claims from the devastating 2005 hurricane season. Established in 1968, the NFIP offers affordable flood insurance to home owners and businesses in flood plains and other low-lying areas that otherwise might not be able to obtain coverage. Throughout its 39-year history, the program has been largely self-funding through policyholder premiums, but it sustained a multi-billion dollar deficit from claims following Hurricanes Katrina and Rita. The FIRM Act would:
NAHB will closely monitor the bill as it moves through the legislative process and work with lawmakers to ensure that federally-backed flood insurance remains available and affordable and that the program is financially healthy. To read the House legislation, click here and enter H.R. 1682 in the box at the center of the page. For more information, e-mail Scott Meyer at NAHB, or call him at 800-368-5242 x8144. Mark Your Calendar for the 2007 NAHB Legislative Conference The 2007 NAHB Legislative Conference provides a unique opportunity for builders to speak directly with their members of Congress and to take a stand on the issues that affect their businesses and bottom line. The conference is on Wednesday, June 6 and is a day-long event that coincides with the NAHB spring board meeting in Washington, D.C. Attending the 2007 Legislative Conference offers NAHB members an unparalleled opportunity to:
House Passes Tax Relief Bill to Help Rebuild Gulf CoastThe House on March 26 approved bipartisan legislation introduced by House Ways and Means Committee Chairman Charlie Rangel (D-N.Y.) and ranking member Jim McCrery (R-La.) that would help spur the redevelopment of affordable rental housing in the Gulf Coast. H.R. 1562, the Katrina Housing Tax Relief Act of 2007, would facilitate the rebuilding by changing and broadening the eligibility requirements for low-income housing tax credits and tax-exempt mortgages. NAHB has been weighing in on these issues for several months and submitted testimony in support of the bill. Builders who are using Low Income Housing Tax Credits allocated as part of the Gulf Opportunity Zone Act of 2005 to repair and construct affordable units would receive a two-year extension through the end of 2010 to complete that work and find qualified occupants. The legislation also clarifies that low-income housing tax credit properties that are partially financed through emergency Community Development Block Grant (CDBG) dollars allocated to the Gulf Coast as part of the hurricane recovery effort will not have to reduce their credit basis. On the single-family side, H.R. 1562 would allow more home owners to use tax-exempt mortgage revenue bonds for major renovations and to refinance existing residential mortgage loans. Under the House-passed bill, proceeds from mortgage revenue bonds can be used to repair homes that sustained more than 25% damage in the storms. To view the bill, click here and enter H.R. 1562 in the box in the center screen. For more information, e-mail Greg Brown or call him at 800-368-5242 x8421. Housing Slump Adds Urgency to Upcoming Legislative ConferenceMembers of the building industry who are concerned about the legislative process and its impact on the health of their business and the nation’s housing sector will want to mark their calendar for Wednesday, June 6. This is the date of the association’s most important grassroots event of the year — the NAHB Legislative Conference, which leads into the association’s spring board meeting in Washington, D.C. The annual NAHB conference provides an ideal opportunity for association members to share their concerns on housing-related issues with lawmakers on Capitol Hill and to urge their representatives and senators to support policies that will keep the economy moving forward and get the housing industry back on track. The timing of the conference is of particular significance this year, with the current shakeout in the subprime mortgage market posing unknown repercussions for the economy, financial markets and the housing sector. Decisions that affect a builder’s business are being made every day in the halls of Congress. Tax policy, environmental regulations, soaring health care costs and many other issues can add thousands of dollars to a firm’s annual operating budget, and Congress weighs in on each and every one of them. Diana Symbol, owner of Professional Services Unlimited in Wasilla, Alaska, recalls that her participation in last year’s legislative conference was an invaluable experience. Wasilla and about 30 other builders met with their entire state congressional delegation and reported progress in a number of areas. “Our meetings were very successful,” she said. “We received a personal commitment from our lawmakers to work with us on storm water and tax issues.” “It’s important as builders, and as members of NAHB, that we visit with our lawmakers and share the concerns of our industry,” said Bob Ross, owner of G&R Construction Services, a residential remodeling, single-family custom home and commercial building firm in Austin, Texas. “This was a productive day for the cause of housing.” Your participation can make a difference. In these challenging times — when other interest groups are clamoring to push their agenda in Washington — a strong builder turnout on June 6 will send a powerful message to members of Congress the housing must remain a national priority. Come to Washington and show your members of Congress the great work you do back home in building your communities. Urge your lawmakers to adopt sensible policies to enable your business to thrive and allow the nation’s home builders to fulfill their mission of providing safe, decent, affordable housing to all Americans. For more information and to register for NAHB’s 2007 Legislative Conference, click here; or e-mail Jessica Boyce, or call her at 800-368-5242 x8334. Eye on the Economy: Subprime Mess Threatens Home SalesThe dramatic housing market correction has been a major factor in the evolving macroeconomic picture since early last year — exerting strong drags on growth of both real GDP and payroll employment while putting strong upward pressure on measures of core consumer price inflation through the imputed “owners’ equivalent rent” components. Federal Reserve estimates show that the pronounced slowdown in house price inflation during the past year is taking a toll on household balance sheets. In this regard, holding gains on homes slowed sharply as 2006 drew to a close and losses presumably are not far down the line. At the same time, maintenance of strong growth in mortgage debt has impinged on home owner equity positions, and the Fed’s financial obligations ratios for home owners now are at record highs. Mortgage Credit Problems Have Moved Center Stage The slowdown in national house price appreciation, already involving absolute declines in some metro markets, is helping to expose lax mortgage underwriting standards that developed during the earlier housing boom. The “subprime” mortgage sector has been in turmoil during the past month, and the “Alt-A” market — that financed a lot of investors/speculators during the boom — also is under substantial stress. Mortgage credit quality deteriorated badly as 2006 drew to a close, particularly in the subprime ARM market, and further increases in delinquency and default rates are inevitable. Lending standards already have tightened up quite a bit in subprime and Alt-A markets, and Federal Reserve surveys suggest that a broad-based firming of mortgage lending standards is underway at commercial banks. The evolving mess in mortgage markets threatens home sales and housing production through two major channels: reductions in gross and net sales due to tighter mortgage lending standards, and increases in unsold inventories due to a rising tide of mortgage foreclosures. Furthermore, both factors will put additional downward pressure on house prices, pointing toward further deterioration of household sector balance sheets — with sobering implications for residential remodeling and consumer spending. The Fed Changes Its Tune on Housing — Again As widely expected, the Fed held monetary policy steady at the March 20-21 meeting of the Federal Open Market Committee (FOMC). The FOMC statement recognized recent mixed signals on the economy and noted that “the adjustment in the housing sector is ongoing” — in sharp contrast to the “stabilization” judgment expressed in the Jan. 31 FOMC statement. While the March statement continued to highlight inflation risks, it’s clear that the Fed’s confidence in the ongoing economic expansion has eroded and our central bank now apparently views the risks to growth and inflation as essentially balanced. In this regard, we’re still expecting a quarter-point rate cut at mid-year, assuming that core inflation recedes about as expected by the Fed, and more cuts may be in the cards. Fed Chairman Ben Bernanke testified last week on “The Economic Outlook” before the Joint Economic Committee of the Congress. He noted that “the principal source of the slowdown in economic growth that began last spring has been the substantial correction in the housing market.” Bernanke also said that “the near-term prospects for the housing market remain uncertain,” that “developments in subprime mortgage markets raise some additional questions about the housing sector,” and that “the correction in the housing market could turn out to be more severe than we currently expect.” Indeed, he fingered housing as the key downside risk to the Fed’s forecast of moderate economic growth over coming quarters. There Are Partial Offsets in Mortgage Markets to the Subprime Mess The subprime mortgage mess naturally has helped generate a flight to quality in financial markets, and this phenomenon has put some downward pressure on the Treasury yield curve. Prime mortgage rates — fixed and adjustable — also have come down in the process as spreads to Treasury rates have held firm. Consequently, we have trimmed our forecasts of rates on long-term Treasury securities as well as prime fixed-rate home mortgages across the 2007-2008 forecast horizon. The Federal Housing Administration (FHA) mortgage insurance program, which lost a lot of market share to subprime during the 2003-2006 period, apparently is helping to fill the financing gap created by the abrupt withdrawal of subprime lenders. Furthermore, Congress may very well “reform” the FHA program to help refinance distressed home owners and bolster the flow of credit to higher-risk buyers — by lowering downpayment requirements, raising loan-size limits and creating a risk-based premium structure that would allow FHA to dip deeper into the credit risk pool. But the Net Impacts of Mortgage Market Developments Definitely Are Negative The net impacts on home sales from subprime-related tightening of mortgage credit conditions and offsetting benefits in prime and FHA mortgage markets definitely will be negative for the balance of 2007 and possibly in 2008 as well. NAHB’s forecasts for both home sales and housing production have been trimmed recently, and we now expect single-family housing starts for 2007 to be the lowest since 1997. We’re still looking for some recovery in 2008, although our current forecast for housing starts is well below our estimate of the sustainable trend level of production. In these terms, the major “correction” process that began in the fall of 2005 will extend at least through 2008. And Forecast Risks Now Are Formidable The ranges of uncertainty around our recently-revised baseline (most probable) forecasts for home sales and housing production are extremely wide because of the subprime debacle and related effects in mortgage markets. Indeed, the key downside risks to the overall economic outlook now reside in the mortgage and housing markets — a point made last week by Fed Chairman Bernanke. NAHB Chief Economist David Seiders analyzes the economy from the point of view of the housing market every other week in the free e-newsletter, “Eye on the Economy.” The preceding is a reissue of his March 28 edition. To subscribe to “Eye on the Economy,” click here. How Deep Is the Housing Correction? Attend Construction Forecast Conference Will housing demand outweigh affordability hurdles, inventory overhangs and the retreat of investors? Where are home prices headed? Get the answers 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 in Person? Webcast of Conference Also Available The conference is also available via Webcast. For Webcast information, visit www.nahb.org/cfcwebcast. Want to Know Your State’s Starts Forecast for 2008? Find out in HousingEconomic.com’s State Starts Forecast (sample). The starts forecast includes downloadable Excel tables of total, single-family and multifamily starts by region and state. To learn more, visit www.housingeconomics.com. 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. 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.
How Deep Is the Housing Correction? Attend Construction Forecast Conference on April 26 Will housing demand outweigh affordability hurdles, inventory overhangs and the retreat of investors? Where are home prices headed? Get the answers to these and other questions at the Construction Forecast Conference — Spring 2007 on Thursday, 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 in Person? Webcast of Conference Also Available The conference is also available via Webcast. For Webcast information, visit www.nahb.org/cfcwebcast. Want to Know Your State’s Starts Forecast for 2008? Find out in HousingEconomic.com’s State Starts Forecast (sample). The starts forecast includes downloadable Excel tables of total, single-family and multifamily starts by region and state. To learn more, visit www.housingeconomics.com. 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. Builders’ Tip: Fabricating Better Garage-Door Weatherstripping
Frustrated at not being able to keep cold Minnesota winds out of the garages and shops I was building, I decided to modify this rubber strip and use it around the entire door. The results were so good that I’ve stopped using any other type of weatherstripping. Door-bottom edge stripping is usually shaped like a flattened-out U with one long leg and one short leg. As the drawing illustrates:
— Gary E. Carlson, St. Paul, Minn. 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. You Are Probably Due a Federal Telephone Tax RefundNAHB members and others in the industry are most likely due a tax refund on the long-distance calls they make for business as part of a federal excise tax refund announced by the Treasury Department last May. At that time, Treasury indicated it would stop collecting the on long-distance telephone service as of Aug. 1, 2006, and provide refunds for taxes billed after Feb. 28, 2003. Businesses and tax-exempt organizations can figure their refund amounts by comparing two telephone bills from 2006 — one from with a statement date in April 2006, the other with a statement date in September 2006 — to determine the percentage of their telephone expenses attributable to the long-distance excise tax. Businesses can first determine the telephone tax as a percentage of their April 2006 telephone bills, which included the excise tax for both local and long-distance service. Then they can determine the percentage of the September 2006 bills. These only included the tax on local service. The difference between these two percentages should then be applied to the quarterly or annual telephone expenses to determine the amount of their refunds. NAHB members can learn more online at www.nahb.org/taxes. The page, provided by NAHB’s Business Management Department and the Business Management and Information Technology Committee, provides regularly updated information relevant to small businesses and home building businesses. Business management information on the NAHB Web site is available to NAHB members only.
NAHB Has More Than 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 more than 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.
CAASH in at the 50+ Housing SymposiumSeveral opportunities to earn continuing education credit, as well as the chance to earn the new Certified Active Adult Specialist in Housing (CAASH) designation, are available at the Building for Boomers & Beyond: 50+ Housing Symposium 2007 in Denver in May. The conference is hosted by the NAHB 50+ Housing Council. Post-conference courses for the CAASH designation will be offered June 2-3 at the Hyatt Regency Denver at the Colorado Convention Center, where the symposium takes place. The CAASH designation is an NAHB education program that gives housing professionals serving the rapidly burgeoning 50+ market the essential knowledge, tools and skills that will help them succeed — from conducting initial research to design considerations and features to closing the sale and servicing the customer. Three CAASH designation courses will be offered at the symposium:
In addition, the symposium offers educational breakout sessions on topics ranging from addressing lifestyle diversity to kitchen and master suite design and building a boomer-friendly home. To Register For a full schedule of courses, or to register for the post-conference courses, visit www.nahb.org/build4boomers. To learn more about the CAASH designation, visit www.nahb.org/CAASHinfo. To register for courses held at the 50+ Housing Symposium, go to www.nahb.org/build4boomers, or contact the Office of the Registrar at 800-368-5242 x8338. * Note: Attendance of all post-conference courses will be capped at 50 registrants per course. Each registrant will receive an e-mail confirmation from NAHB’s Office of the Registrar. Find Out What the 55+ Market Wants “Boomers on the Horizon: Housing Preferences of the 55+ Market,” available through BuilderBooks.com, can help you better build and market homes to the 55+ 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 Market Realities, Trends Highlight Pillars Conference
The changing market realities, emerging trends, best practices and cutting-edge information needed to stay ahead of the curve in the multifamily market will be discussed at the 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. The market realities and trends to be discussed include:
For more information about these sessions and more, visit www.nahb.org/pillarsconference. Online registration has closed. Onsite registration is available during the conference. ‘Residential Property Management’ Available at BuilderBooks.com “Residential Property Management,” available through BuilderBooks.com, is the savvy property management guide to success. This comprehensive reference tool is the core text of the Registered Apartment Manager (RAM) program. To view or purchase this publication online, click here, or call 800-223-2665. Guidelines for Landing That First Light Commercial Job
Home builders who are considering diversifying into the booming commercial market need to understand what they are getting into in order to avoid any missteps when attempting to land that first commercial project. There are factors, guidelines and vernacular that differ from home building, and understanding them can mean the difference between achieving success in light commercial construction and the inability to pursue or land that first commercial job. “Commercial construction may be a great opportunity to diversify for the local home builder and may provide counter-cyclical opportunities,” said Wichita, Kan. builder Carl Harris of The Carl Harris Company and a member of NAHB’s National Commercial Builders Council (NCBC), “but you need to be aware of the rules that may be different in the commercial market.” The First Consideration: Know Your Strengths Most home builders who have entered the commercial market say that identifying your strengths as a builder should be your first consideration. This includes analyzing licenses, access to land and connections to the market, as well as understanding the strengths and weaknesses of all subcontractors and partners. “If the builder is short in any of these areas, he may want to develop a plan for strengthening them before taking the leap,” Harris said Reaching the Market: Two Tips Experienced commercial builders are continually doing their homework and legwork to come up with creative ways to reach the market. Newcomers to commercial building should be no less diligent. “One of the first things I do each month is put together a solicitation letter to all the commercial Realtor® agents and architects in my area,” said John Piazza, Sr. of Piazza Construction, Inc. in Mount Vernon, Wash. and an NCBC member. He keeps his message simple and focused. “In my letter, I simply ask if they or their clients have a commercial project that is stalled for financial reasons and could use a builder or partner to join their deal, please call me,” said Piazza. This type of solicitation, Piazza said, generally yields from three to five deals to review a month. “I don’t even try to go after all the deals referred to me this way,” said Piazza. “I just go after the really good ones and only the ones where I can retain a high percentage of ownership.” Another way to enter the light commercial construction market is to buy some commercial property and "option" it by leasing it to a tenant before the property is built, Piazza said. “That way, you can get a loan from the bank using the tenant as your springboard. It works great and I’ve done it many times in the past.” Three Market Sectors of Commercial Construction to Consider There are primarily three different market sectors of commercial construction that home builders need to consider when planning to enter commercial construction. Each of the sectors is distinct, and each has its own advantages and drawbacks, experienced builders say. The three sectors include:
There are many operational differences between home building and commercial construction that home builders need to learn — including a different construction language. For example, blueprints are referred to as “contract documents” in commercial construction vernacular. Likewise, commercial builders are generally referred to as “contractors” rather than as “builders.” According to most experienced commercial contractors, those two terms — contract documents and contractors — and what they mean are vital to understanding the business. “We have a lot of contracts that we have to deal with on the commercial side,” Harris said. “For instance, the contract between the owner and contractor is overseen by the contract between the owner and architect, not to mention the contracts between the contractor and each of his subcontractors and trade partners.” Because so many different contracts are at stake in commercial building, Harris offered a word of caution: “Know the contract and what you are agreeing to do,” he said. “Many contracts try to shift responsibility whenever they can to those below them.” “Be careful of contracts requiring additional insurance, indemnity and costs that you may not wish to take on,” he added. NAHB National Commercial Builders Council Has Resources Available Diversifying into commercial construction and landing that first commercial project can seem like a daunting task, but it can prove to be a smart and profitable move and NAHB has resources available through the National Commercial Builders Council to help with the transition. NCBC helps ease the transition for home builders who diversifying into the light commercial arena by providing and promoting an exchange of industry-related information. NCBC also addresses the regulatory and legislative issues surrounding light commercial construction. “It’s important to note that the NCBC can be a resource for any builder looking to move into light commercial construction,” said Harris. “Whether it’s by contacting one of our trustees for advice or purchasing our manual, 'Light Commercial Construction for Home Builders,' we can answer any questions you might have. The NCBC continues to provide the tools its members need to make a smoother transition into this market and to aid in their successes.” For more information, or to join NCBC, visit www.nahb.org/ncbc. NCBC members also have access to the exclusive NAHB Select Commercial Builders Web Channel which contains information on a wide range of topics, including improving your bottom line, workplace safety and incorporating green building into light commercial projects. 'How-to' Manual About Light Commercial Construction Available Through NCBC “Light Commercial Construction for Home Builders: A How-to Manual for Diversifying Your Business,” available through The National Commercial Builders Council (NCBC), can help residential builders who are considering diversifying into light commercial construction. The manual identifies three key areas for home builders who are diversifying into the industry:
For more information about the manual or the NCBC, e-mail Nick Lashinsky at NAHB, or call him at 800-368-5242 x8455. Apply for the NAHB Remodeler of the Month AwardThrough the Remodeler of the Month award, the NAHB Remodelers are honoring remodelers who demonstrate strong business practices, community service or industry involvement through the Remodeler of the Month award. Winners will be featured in Qualified Remodeler magazine and in Nation’s Building News. To qualify:
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. 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. Sign Up for Free Storm Water Compliance Audio Seminar
Storm water remains on the EPA’s priority list for permit enforcement, and noncompliance can result in costly fines or stop-work orders. To familiarize NAHB members with permit requirements, The NAHB University of Housing is offering a free audio conference, “60 Minutes to Storm Water Permit Compliance,” featuring compliance experts including an EPA inspector. The conference is free to NAHB members and their employees. The conference will be held beginning 3:00 p.m. EDT, Wednesday, May 23. Conference participants include:
To Register For information or to register for the free audio conference, "60 Minutes to Storm Water Permit Compliance," click here. Members must register by Friday, May 18, to participate. For additional information, or to submit questions to the panel, e-mail Parson at NAHB, or call her 800-368-5242 x8147. Continuing Education Designation Credits CGA, CGB, CGR and GMB professional designation holders will receive continuing education credit for the conference. For more information, call the Designation Hotline at 800-368-5242 x8154. 'Storm Water Permitting: A Guide for Builders and Developers' Available at BuilderBooks.com — 10% Discount If Ordered by May 31 “Storm Water Permitting: A Guide for Builders and Developers,” available through BuilderBooks.com, provides a starting point for builders and developers to use in locating and understanding storm water permitting requirements. The publication has been prepared to help builders comply with the U.S. Environmental Protection Agency's storm water requirements, and includes information on state permitting programs and more than 50 of the most commonly used Best Management Practices. Also included are tips on compliance, including how to handle visits from inspectors. To view or purchase this guide online, click here, or call 800-223-2665. Purchase by May 31 and Get 10% Discount Order online by May 31 and receive a 10% discount. Simply enter promotion code SWP10 on the check-out page. Trustees Visit Training Centers, Plan HBI StrategyTrustees of the Home Builders Institute (HBI) visiting St. Petersburg, Fla. last week for their annual planning meeting got a first-hand look at two HBI construction trades training programs and the future site of the Pinellas Job Corps Center. HBI’s Workforce Training and Employment (WTE) operates two training programs in the greater St. Petersburg area — Project TRADE (Training, Restitution, Apprenticeship, Development and Education) at the Pinellas County Sheriff’s Office, for detained women; and Project CRAFT (Community, Restitution, Apprenticeship Focused Training) for adjudicated youth on two sites.
During their visit, the trustees were able to interact with program staff, instructors and students. The trustees gained some insight into the postive impact of HBI training as they listened to the students discuss their future plans and how the new skills they learned through the program had provided them with opportunities to succeed in their lives and careers. “All of the trustees are extremely proud of the work HBI is doing,” said HBI Chairman Bill Paul. “Many of our students have had a difficult time, but we are offering the best training possible to help them get back into the world and earn an honest living.” WTE operates nine programs in four states training adjudicated youth, offenders and people with disabilities for entry-level jobs in the residential construction industry. Another focus of the gathering was the continued implementation of Sed de Saber™-Construction Edition, an English-as-a-Second-Language (ESL) training console for Spanish speaking workers. Board members also discussed strategies for HBI to advance effective communication and safety on the job site. “Sed de Saber™-Construction Edition is part of the natural evolution of services offered by HBI. We have always been concerned about safety on the job site, in particular when communication is hindered by language barriers. Sed de Saber™- Construction Edition helps to close the communication gap, makes the job site increasingly safe and allows builders to operate at maximum efficiency,” said Paul. For more information, e-mail Maria McIntyre at HBI, or call her at 800-795-7955 x8912. Three-Dimensional Models of Building Products Availableaa McGraw Hill Construction has announced the availability of three-dimensional models of building products for architects and engineers in the Google 3D Warehouse. By making 3D models available in an organized collection, architects will be able to integrate specific building products early in the conceptual design process, making it easier to convey their full vision for the project to their clients. The Sweets 3D Collection in the Google 3D Warehouse has been launched with 3D models from Assa Abloy Door Security Solutions, CENTRIA Architectural Systems, DuPont Building Innovations, Nystrom, PPG Industries, Sloan Valve Company, ThyssenKrupp Elevator and Whirlpool Corporation. Searching for products in the Sweets 3D collection will be consistent with industry standards, based on Sweets CSI indexing, keyword and company names — reflecting the way that architects, engineers and contractors think and seek out information. From Google’s 3D Warehouse, architects and engineers are able to link directly to the product’s Web page in sweets.com to get more detailed information, including product catalogs, CAD details and three-part specifications. “SketchUp is an absolutely wonderful 3D tool that enables me to be re-involved in the design process — even on the road,” says Peter Moriarty AIA, CEO of 600-person A/E firm Burt Hill. “Best of all, it has revived the fun I used to have when I was on the drawing board. I often work with it in my hotel room, after a client meeting, in order to develop my thoughts on the design direction, which I then e-mail to a design team in one of our offices. “Typically, they advance my concepts in SketchUp, then export the model to a more sophisticated CAD or BIM tool for final design. Knowing that I can extract actual building products from the Sweets Collection for SketchUp in the Google 3D Warehouse to insert into the model, I am more confident that the initial concept will work without requiring major resizing or reconfiguration.” SketchUp is compatible with CAD products such as Graphisoft®, Archicad 10, MicroStation® V8, Autodesk® AutoCAD®, Revit® Series Systems Plus, VectorWorks® Architect, DataCAD, Nemetschek, Rhinoceros® and Softech. Building Product Manufacturers who would like additional information on participating in Sweets3D can call 800-221-0088. The McGraw-Hill Companies is a member of the National Council of the Housing Industry — The Supplier 100 of NAHB. This feature is solely for educational and informational purposes. Nothing on this page should be construed as policy, an endorsement, warranty or guaranty by the National Association of Home Builders of the featured product or the product manufacturer. The National Association of Home Builders expressly disclaims any responsibility for any damages arising from the use, application or reliance on any information contained on this page. NAHB-Produced Programs on HGTV and DIY This WeekThe NAHB Production Group produces weekly television shows on HGTV and DIY for consumers. The following is the latest lineup: "Rock Solid" on DIY
"Assembly Required" on DIY
HGTV Seeking ‘Dream Home’ Builder/Architect Teams HGTV is seeking developers, builders and architects to create the 2008 and 2009 dream homes for the network’s Dream Home Sweepstakes. To learn more, click here. About the NAHB Production Group The NAHB Production Group is a full-service, self-contained, media production unit creating programming for cable television, broadcast television, non-profit, museum and corporate clients. Productions range from magazine format shows for general audiences to museum-installation videos for specialized use. The production group includes award winning journalists, writers and photographers with experience in broadcast, documentary and corporate television. 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 of the NAHB Web site. For assistance, call the NAHB Member Service Center at 800-368-5242. Arbor South Honored for Doing Good South of the Border
For its efforts, Arbor South Architecture/Construction was awarded the 2006 Honorable Mention National Housing Endowment Builder Achievement Award for Outstanding Community Service — which includes a $1,000 donation to be directed to the charity of its choice — during the 2007 International Builders’ Show in Orlando, Fla. Arbor South Architecture/Construction is giving the donation to St. Vincent De Paul of Lane County, an international organization that provides food, clothing, shelter and other forms of assistance to people in need.
Most of the volunteers on the project are high school and college students, most of whom have never held a hammer. But Hill recruits the help of several local builders who travel with him to Mexico. In addition, he gives his employees the option of taking time off from work so they can join him. Most take him up on the offer. “It’s a life-changing experience for the people who go,” said Hill, who encourages professionals in the industry to always give back. “Give because your heart is in the right place, and be passionate about what you’re giving to.” Hill is “an individual who keeps the positive energy high while always raising the bar a little higher,” said Ed McMahon, president of the Lane County Home Builders Association. “The National Housing Endowment is proud to honor the tremendous charity of Arbor South Architecture/Construction and of Daniel Hill,” said Gary Garczynski, endowment chairman and 2002 NAHB president. “This company’s leadership is not only a source of inspiration to our membership and industry, it’s an inspiration for the next generation of home builders, too — those high school and college students who travel with Daniel to Mexico each year. The program clearly shows these young people that home builders not only build homes, they build communities.”
Twelve other builders were honored with gold, silver, bronze and honorable mention Builder Achievement awards during the presentation at the builders’ show. For the complete list of the winners and a description of their projects, click here. The awards were established through a grant to the endowment by Isaac Heimbinder, chairman of Potomac, Md.-based BuildTopia, a provider of Web-based construction management software for home builders. Endowment Announces Evans Scholarship Award RecipientsThe National Housing Endowment, the philanthropic arm of NAHB, has announced the recipients of the 2007-2008 Lee S. Evans/National Housing Endowment Scholarship, which is awarded to exemplary students who major in construction-related fields. The Lee S. Evans Scholarship Committee awarded $48,000 to 14 worthy students. The scholarship recipients include:
“Lee and Virginia Evans started this scholarship to provide the most outstanding students studying construction management industry recognition for their hard work and academic achievements,” said Bruno Pasquinelli, Evans committee chair and CEO of Pasquinelli Construction Co. “This scholarship has come to mean so much to the recipients, many of whom would not be able to pursue their educations without such financial assistance. I and the Lee Evans Scholarship Committee are proud to serve as stewards of Lee and Virginia’s vision.” The scholarship determinations were made by the Evans Scholarship Committee. Committee members included Pasquinelli; Brenda Eid, founder of bj Eid Associates; J. Roger Glunt, president of Glunt Development Co., Inc.; Robert Jones, president of Robert R. Jones Associates; Mark Lee Levine, director and professor of the Burns School of Real Estate and Construction Management at the University of Denver; Roger Pastore, founder of RCP Financial Group and former president and CEO of Pulte Home Mortgage; Roger Reinhardt, executive vice president of the Home Builders Association of Metropolitan Denver; and Chuck Shinn, of Shinn Associates. More Endowment Scholarship Programs The endowment administers 12 scholarships and awards more than $300,000 each year to students pursuing careers in residential construction and related fields. For more information, visit the endowment Web site at www.nationalhousingendowment.org. Challenge/Build/Grow Initiative Proposals Due by April 16The National Housing Endowment, the philanthropic arm of NAHB, is seeking proposals from state and local home builders associations through its Challenge/Build/Grow matching funds initiative. Through the program, state and local associations are eligible for matching challenge grants up to $5,000. HBA proposals must be received by Monday, April 16. Since the program was launched in 2001, more than $150,000 has been awarded to associations to support local initiatives on education, land use, labor shortage/worker training and more, and to help build new partnerships at the state and local level. HBAs are encouraged to find opportunities for new partnerships in their communities to assist local programs targeting issues of importance to the industry — including job training, image building and educational and scholarship support. To Apply Proposals can be e-mailed to the edowment at nhe@nahb.com. HBAs requesting grants are encouraged to seek advice on their proposals from endowment staff well in advance of the deadline. For more information about grant opportunities, or to download funding guidelines, visit www.nationalhousingendowment.org. Gear Up for National Membership Day...May 22
NAHB’s upcoming annual membership drive — National Membership Day on Tuesday, May 22 — is shaping up to be another record-breaker, according to membership analysts. Last year, local associations recruited 9,550 new members, far above any previous National Membership Day drive. This year, analysts predict the drive could top 10,000 new members. “I’ve heard of several very well-integrated recruitment strategies around National Membership Day this year,” said Emily Fitzsimmons, assistant staff vice president of membership at NAHB. “Local associations nationwide are really leveraging their resources and conducting well thought out campaigns.” “We thought recruiting almost 10,000 new members last year was an anomaly, but based on what I’ve heard from some of our local associations this year, we may just do it again,” she said. This year’s theme, “Leaders of the Pack,” evokes motorcycle-oriented excitement and will be a prominent part of the day’s Webcast, which will be broadcast live from the National Housing Center in Washington, D.C. from 2:00-5:00 p.m. EST. Members can access the Webcast on the NAHB Web site, www.nahb.org.
Successful recruiters have a chance to win a Chill and Grill Travel Cooler. “I chose our theme this year because I think it’ll encourage members to have fun and get involved with Membership Day,” said Duane Bickett, a home builder in Sioux Falls, S.D. and the NAHB membership chair. “We’ll really be able to have a good time with it on the Web cast.” Recruiting Local or At-Large Council Members Count This year, local and at-large council members count toward Spike credits and, as always, Sprike credits are doubled in May. New Recruitment Combinations for Spike Credit and Chance to Win Several new recruitment combinations are available to members for Spike credit and a chance to win the travel cooler. They include:
National Membership Day is sponsor |