Nation's Building News Online: May 7, 2007Print All Articles Text Version |
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Prefab Concrete Panels Enhance Green Dream HomeDovetailing with a surge in consumer interest in green building and energy-saving technologies, a 9,200-square-foot dream house built by two airline pilots on a stunning site in Prairie Grove, Ill. illustrates how prefabrication is becoming an increasingly popular and effective choice for boosting the performance of residential structures. In her new book, “Prefabulous — the House of Your Dreams Delivered Fresh From the Factory,” author Sheri Koones, describes how Steve and Jackie Smith's home used a concrete system called Solarcrete to provide a sustainable method of construction that at the same time allowed for modern interior design with a strong connection to the outdoors. Unlike in Europe, where concrete homes have been built for hundreds of years, concrete was rarely used for residential construction in this country until only recently, says Koones, although it has made significant advances over the last decade. In 1993, approximately 3% of the homes built in the U.S. used prefab concrete panels, she says. Today, about 16% of the nation’s homes are being built using some type of prefab concrete system. “Although concrete has typically been a more costly method of building,” writes Koones, “its popularity is growing because it is plentiful, easy to create in a variety of colors and in a multitude of forms, is virtually weatherproof and bugproof, and when reinforced with steel is strong enough to stand up to hurricanes, tornadoes and earthquakes.” She adds that concrete can also be a highly energy-efficient material for home construction because of the material’s thermal mass and airtight qualities. The prefabricated panels used in the Smith House consist of about 7 inches of expanded polystyrene insulation sandwiched between two parallel sheets of wire mesh or reinforcing bars and held together with ties. The pre-engineered panels are then transported to the site and attached to the foundation with steel dowels that have been precast into the foundation. “Spaces are cut out for the windows, doors and plumbing, and wires are snaked through the foam insulation before the panels are coated with about 3 inches of concrete sprayed onto each side,” says Koones. “After the concrete is applied, the surface is troweled to a smooth finish.” The roughly 12-inch wall created in the process provides an excellent insulating envelope and thermal mass to even out temperature fluctuations. The architects and home owners had to be diligent about planning to ensure that adequate electrical conduits and outlet boxes were installed before the panels were constructed, and more than required was used to meet future needs. Because the house was being built to withstand the elements for at least 100 years, “we wanted to make sure that it could meet the needs of other families many years from now,” said Jackie Smith.
The house was oriented on its lot to take advantage of the sun while minimizing east and west exposures. A long southern exposure collects more solar heat, and a garage and service area requiring less heat are located on the north side of the house. Sun shades extending over the upper windows were angled so that in the summer when the sun is high, windows are shaded, while in the winter when the sun is low, sun floods the rooms and provides extra warmth. Unlike most radiant floor systems, which only provide heat, the home’s Airfloor system is also used for cooling. A series of hollow, interlocking metal channels are placed on the subfloor and covered with concrete. When the system is activated, air is forced through the network of forms, creating a radiant floor and ventilating system. In the Smith House, the heated or cooled air from a geothermal heating system is pumped into the floor. The system is supplemented by electric heat. Koone’s book provides other examples, similar to the Smith House, of the most commonly used building systems, which, in addition to concrete, are modular, panelized, log, timber frame and steel frame. In general, she says, prefab building methods are conducive to making homes stronger, reducing construction waste, boosting energy efficiency and reducing material and labor resources — all objectives of the green building movement. While the prefab home industry focused on low-cost small houses rather than great design when it found its footing in the 1950s, she says, in the last decade or two “architects, builders and home owners have begun to take advantage of what is called, in the industry, systems-built homes. Along the way, good design has crept back into the process.” Koone cites the Portland Cement Association's Web site (cement.org) as a rich source of information on concrete, its uses and its properties. “Prefabulous” is available at local book stores, chains and Amazon.com. For more information on building systems resources available from NAHB or the NAHB Building Systems Councils, e-mail Cortney Klein at NAHB, or call her at 800-368-5242 x8357. Photos courtesy Farr Associates
Attend the BSC Modular and Panel Plant Tour Attend the 2007 Building Systems Councils Modular and Panel Plant Tour from May 20 to May 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 or to register, click here. Floor Plans: Green, Smart and Environmentally SoundChaleff House: Chaleff & Rogers Architects Bill Chaleff, of Chaleff & Rogers Architects in Water Mill, N.Y., designed and built his house after his first house burned down several years ago. As he does for most of his clients, Chaleff designed this new house using the most sustainable and energy-efficient practices available. Chaleff’s home is built with structural insulated panels (SIPs) and as many recycled and composite materials as possible; many passive solar engineering principles integrated into its design; and a smart in-floor heating system. The result is a home that is highly efficient, comfortable and uses minimal energy. In fact, with two photovoltaic solar panels on the roof to reduce his electric bills, Chaleff’s electric meter actually runs backwards when his home produces more electricity than it requires.
The view from the bedroom, overlooking the great room. SIPs, Engineered Beams and Steel Chaleff chose to build his house using SIPs because of their insulating properties, air infiltration resistance and recyclability — all traits that match his environmental sensitivities. He used engineered beams and trusses from a company that shuns toxic formaldehyde resins in the manufacturing process. And he used floor joists and wall studs made of light gauge steel because they were less expensive than wood and don’t warp, shrink or expand.
Two sets of solar panels make maximum use of the home's southern exposure. Solar Panels Provide Most of the Energy Two sets of solar panels provide most of the energy needed to run the house. In addition, Chaleff has integrated passive solar engineering principles into his home’s design. Most of his home’s southern façade is double-paned glass with a low-E coating of argon gas fill to minimize heat loss and take full advantage of the sun during daylight hours. Chaleff has installed a radiant heating system, but it uses heated air instead of water to deliver heat.
Chaleff used engineered beams from a manufacturer that does not use toxic formaldehyde resins. Using Highly-Renewable, Highly-Recycled Materials Chaleff built the home using as many renewable and recycled materials as possible. He used fiber-cement siding, for example, because it is ecologically friendly — concrete is highly renewable and the wood fiber in the siding is from fast-growing trees farmed specifically for that purpose. On the roof, Chaleff used asphalt-impregnated cellulose, which has a high-recycled content. The house has an open feel, very much in keeping with its environmentally-sensitive use of materials.
Photos courtesy Phillip Jensen-Carter The home is featured in “Prefabulous — the House of Your Dreams Delivered Fresh From the Factory,” by Sheri Koones. Designed by Bill Chaleff: Chaleff & Rogers Architects, Water Mill, N.Y. Floor plans illustrations © The Taunton Press 425 HBAs Now Signed Up for Membership Day on May 22This year, membership analysts predict that NAHB’s upcoming National Membership Day on Tuesday, May 22 could bring in more than 10,000 new members. During the day, more prizes will be awarded to successful recruiters than ever before, thanks to Whirlpool, NAHB’s exclusive membership sponsor. All the action that day can be seen live on the National Membership Day Webcast from 2:00 p.m. to 5:00 p.m. Members of participating local home builders associations that participate are eligible to win a Chill and Grill Travel Cooler, receive double Spike credits during the month of May and become eligible to rank in national membership competitions for recruitment, retention and participation. To be eligible for these incentives, members must belong to a local association that:
To determine if your HBA is registered and you are eligible for extra credits and prizes, visit the “Commit to Call” tracker link, which is maintained and updated regularly by the NAHB Membership Team. Register for National Membership Day Webcast The theme this year, “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. Members can register and view the Webcast by clicking here. Whirlpool Provides Top Prizes for National Membership Day The Chillerator — the only Energy Star®-rated refrigerator designed to handle the temperature extremes of the garage environment — is the top recruiter prize. New this year, all members who earn six retention credits in May will be automatically entered into a drawing for one of two KitchenAid Stand Mixers. Prizes Available
The Chillerator, from Whirlpool, is the top recruiter prize for National Membership Day.
Two KitchenAid Stand Mixers are prizes for members who earn retention credits.
For more information, visit www.nahb.org/membershipday, or call 800-368-5242 x8440. $2 Million Just Released: Apply Now for ‘Buy Now’ Ad GrantsOn April 27 the NAHB Executive Board approved the release of the remaining $2 million of the NAHB “Buy Now” Advertising Assistance Program. Launched in February, the program provides $3 million to assist local associations in an effort to bolster home sales in markets hit hard by the current housing downturn. The initial $1 million was quickly disbursed in grants to 51 HBAs. Following the release, NAHB immediately began processing 35 additional applications — worth more than $600,000 — that had been approved and were awaiting funds from the program’s second phase. In total, 86 local associations in 29 states have now applied for and have received, or been approved to receive, nearly $1.7 million in advertising assistance. Including the matching funds that the HBAs contributed, the total value of their advertising campaigns is $5.3 million. To see a list of the HBAs and the grant levels, click here. With $1.3 million in funds still available, NAHB encourages HBAs that have not yet applied for advertising assistance to apply today. The NAHB “Buy Now” Advertising Assistance Program provides grants to qualifying HBAs in three categories:
HBAs that applied and were eligible for the first phase, but did not receive grants from the initial $1 million, are currently being contacted by NAHB regarding their application and eligibility for the second phase. Associations that have already received matching grant money are not eligible for the second phase. NAHB is encouraging associations that have received grants to promote their grant to their membership through HBA publications and newsletters and on their Web sites. 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 next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. Home Market Took a Costly Subprime AdvanceThe subprime mortgage industry rushed so many buyers into the housing market that it opened an ownership gap, pulling in people who likely would have bought a home only years later, and that gap is stalling the recovery in the housing sector, according to housing analysts. Subprime loans sped up and burned a class of future home owners, said Freddie Mac Chief Economist Frank Nothaft. “If they had delayed their initial decision to buy, they would have had a higher likelihood of transitioning,” he said. “Now they’ve had a taste of (homeownership) and are back in the tenant pool — maybe forever,” referring to subprime buyers who have recently been driven to foreclosure as their low, early loan rates spiked and became unaffordable. The low interest rates during the boom were also irresistible. “That did pull housing demand from the future into the present,” said NAHB Chief Econoist David Seiders. “When all that demand supply pressure started to push prices up, the whole thing died under its own weight.” In 1996, 18% of home owners were younger than 25, according to the Census Bureau. In 2006, that share grew to 24.8%. (www.reuters.com)
All Balanced on the Housing Market Front“The market that we’re now in is much more balanced,” said Steve De La Peńa, vice president of Oahu operations for Century 21 All Islands. “Buyers have the time to look around and make choices. They have less pressure to jump on something right away. It makes it easier on everybody.” De La Peńa said that Hawaii’s heady market began to mellow around the middle of last year, but that today’s level of activity remains healthy. “It’s still a great market,” he said. “Stepping down from the best market in the history of Hawaii real estate — that’s okay.” The number of Oahu single-family home and condominium sales peaked in 2005 at 12,607. Sales dropped 17% to 10,421 last year, and have continued to decline this year at a slower pace. Inventory, which dropped to roughly 1,700 units in mid-2005, has been around 4,000 this year, and the median price for a single-family home was up just 1% for the 12 months through April to $630,000. The year-to-date median condo price was $322,000, up almost 6%, compared with a 15% rise last year. Angie Pasion, an agent with Aloha Hawaii Realty, said one of the bigger recent challenges has been dealing with tighter lending standards as a result of the fallout of several mainland lenders struggling with defaults on exotic mortgages. “It has a tremendous effect,” she said. “I find that more challenging than selling. I have the product, but it’s the mortgage companies now providing the pressure.” (www.honoluluadvertiser.com)
IRS Kicks Home Owners While They Are DownHome owners who are seriously delinquent on their mortgages and reach an agreement with their lender to modify their loan and have some of their debt forgiven could find that they owe federal income tax on the amount forgiven. According to the Internal Revenue Service, when personal debts are canceled by a creditor, the amount forgiven is treated as ordinary income under the tax code, except in some situations such as insolvency, and the lender is required by law to report the canceled amount to the IRS. Introduced in mid-April, the Mortgage Cancellation Tax Relief Act of 2007 would amend the tax code to exclude debt forgiveness on principal home mortgages from treatment as income. The legislation could assist many home owners in financial trouble who negotiate pre-foreclosure “short sales” or deeds in lieu of foreclosure, or those whose foreclosure proceeds are insufficient to pay off their mortgage debt. Short sales are increasingly commonplace for home owners who are seriously behind on their mortgage payments and can’t solve their problem with a loan modification or rate reduction. As an alternative to foreclosure, the lender might suggest a quick sale of the house, often to an investor who will buy it at a discounted price. If the short sale proceeds are $10,000 less than the outstanding mortgage balance and the lender agrees to forgive that amount, the legislation would allow the relief to be obtained tax-free. (www.washingtonpost.com)
Other Reasons Borrowers FalterAccording to a recent study by Freddie Mac, even people with good jobs and good credit are struggling to keep pace with their mortgages. In an analysis of 2006 figures, Freddie Mac found that among borrowers with good credit, rising health-care costs and personal debts were the reasons behind a growing number of mortgage delinquencies and that far fewer delinquencies were tied to job losses or pay cuts. At the end of 2006, job losses or pay cuts caused 36% of delinquencies, compared with 43% for each year between 2001 and 2005, Freddie Mac found. Meanwhile, delinquencies caused by too much personal debt, including insurance premiums, rose to nearly 14%, up from 11%, while delinquencies ascribed to health care and illness rose to about 21%, from about 19%. According to a study last year by the Kaiser Family Foundation and Hewitt Associates, health-care premiums have jumped 87% since 2000 and the percentage of workers covered by an employer’s health plan dropped by three percentage points. Those who are still covered are bearing a greater share of that burden, the foundation said. In the Northeast, for instance, they paid $2,765 for family coverage last year, up from $1,499 in 2001. Rising property taxes are also a hidden cost as counties jack up tax rates to compensate for a slowdown in home values. (www.nytimes.com)
Celebrity Playgrounds Sometimes a Hard SellFrom Miami to San Francisco, the U.S. real estate market is glutted with the splashy homes of professional athletes. Salaries and signing bonuses have soared and even some first-year players are living in gigantic homes. At the same time, however, trades and free-agency deals have continued at a rapid rate, resulting in more of these properties being put up for sale every year. Over-the-top, customized amenities such as eight-foot doorways, wrought-iron gates emblazoned with uniform numbers and basketball courts with stadium seating aren’t hitting home with prospective buyers. Many of these properties are sitting on the market for a year or more, and if they finally do sell, it’s often at substantially discounted prices. Red Sox slugger Manny Ramirez has yet to sell his 4,500-square-foot condo in Boston. The $6.9 million penthouse in the Ritz Carlton Towers was listed in 2005, when Mr. Ramirez put it up for sale amid postseason rumors that he wanted to be traded. He wound up staying with the team and recently took the apartment off the market, but local agents say it’s still available. The price may be too high for the area, agents say. But potential buyers may also be having trouble seeing themselves in an apartment that has a bedroom decked out like Fenway Park, including a mural of the field with the trademark Citgo sign in the background and twin beds made to look like the Green Monster outfield wall, with authentic painting and netting. (www.wsj.com)
Need It or Want It?Consumers want things in their homes to last a long time, but they junk their cabinets, faucets and all sorts of appliances long before they wear out because their tastes, desires and lifestyles change and manufacturers are forever catering to and encouraging those changes as they try to improve their sales. For instance, based on comments from about a dozen faucet manufacturers, an NAHB study of the life expectancy of a home’s components concluded that kitchen faucets should last an average of 15 years. Yet only about 30% of residential faucets sold each year replace ones that are broken or worn, said Jack Suvak, marketing research director at Moen. The rest are split between newly built homes and remodeling projects, wherein people typically start replacing their fixtures a couple of years after moving in. “Most home owners are not comfortable with what they inherited,” Suvak said. “They want to make it their own.” Given that people typically don’t remodel piecemeal, lots of fixtures and appliances get replaced simply to match the new fixtures and appliances around them, said David Pringle, chief executive of Broan-NuTone. That’s why the company offers 40 new styles of medicine cabinets each year, Pringle said. Medicine cabinets should last more than 30 years, the builder’s study found, but manufacturers do not want consumers to hang on to them for nearly that long. (www.washingtonpost.com)
FHA Single-Family Reform Headed for House FloorBy a strong bipartisan margin of 45 to 19, the House Financial Services Committee on May 3 approved legislation that would reform and revitalize the Federal Housing Administration’s single-family mortgage insurance programs. H.R. 1852, the Expanding American Homeownership Act of 2007, would give the FHA greater flexibility to respond to the needs of borrowers, enable more working families to become home owners and provide a viable alternative to the volatile subprime market. Testifying on FHA reform before the Housing and Community Opportunity Subcommittee last month, Bill Killmer, NAHB’s group vice president for advocacy, championed several recommendations that were ultimately approved last week by the full committee. Specifically, H.R. 1852 would:
The bill is expected to go to the House floor in the coming weeks. 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 day-long conference is on Wednesday, June 6 and coincides with the NAHB spring board meeting in Washington, D.C. Attending the 2007 Legislative Conference offers NAHB members an unparalleled opportunity to:
Bill Aims at Helping Subprime Borrowers Avoid ForeclosureSen. Charles Schumer (D-N.Y.) introduced legislation last week to deal with foreclosures on subprime mortgages now plaguing the housing market. The bill proposes $300 million in federal funds to help community non-profit counseling groups boost refinancing programs to help home owners avoid foreclosure. The second part of the legislation would regulate mortgage brokers and originators under the Truth in Lending Act by establishing on behalf of consumers a fiduciary duty and other standards of care. In addition, the bill outlines standards for brokers and originators to assess a borrower’s ability to repay a mortgage and holds lenders accountable for brokers and appraisers. Schumer’s bill represents the first federal legislative proposal on subprime lending and NAHB is expecting extended congressional discussion of the issue this year. It remains uncertain at this point whether Senate Banking Committee Chairman Chris Dodd (D-Conn.) will also pursue a legislative solution or continue urging mortgage industry lenders to outline ways to help keep troubled borrowers in their homes, while simultaneously urging federal regulators to use current regulatory authority to curb harmful lending practices. In the coming weeks and months, NAHB will continue to keep a close watch on the legislative, regulatory and industry response to the subprime lending situation. For more information, e-mail Scott Meyer at NAHB, or call him at 800-368-5242 x8144.
The simultaneous Webcast of the Construction Forecast Conference — Spring 2007 held in Washington, D.C. on April 26 is available for purchase for the next three months. Those interested can purchase the conference Webcast, which includes panels of nationally recognized experts discussing economic trends, government policies, developments in the housing industry and the results from NAHB's recent surveys. Purchasers will receive unlimited access to the Webcast archive for three months, as well as electronic copies of the conference handouts and presentation material. Purchasers can watch at their own pace, rewind, fast forward and review important sections. To Purchase the Webcast To purchase the Webcast, visit www.nahb.org/cfcwebcast.
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 day-long conference is on Wednesday, June 6 and coincides with the NAHB spring board meeting in Washington, D.C. Attending the 2007 Legislative Conference offers NAHB members an unparalleled opportunity to:
Gulf Coast Provisions Caught in War Funding VetoPresident Bush last week vetoed a $124.2 billion supplemental appropriations bill to fund the military and the war in Iraq. Before the bill was even approved, Bush vowed to veto the legislation because it contained language specifying a timetable for withdrawal of U.S. military forces from Iraq. The bill also included $4.8 billion in small business tax provisions meant to offset the impacts of an increase in the federal minimum wage. Of special importance to home builders, the measure would increase the amount of investment that may be immediately and fully deducted by small businesses from $100,00 to $125,000. Also, tax-writers included key provisions for the repair and reconstruction of affordable housing in the GO Zone, Gulf Coast areas that were hit particularly hard by Hurricanes Katrina, Wilma and Rita. Specifically, the legislation does the following:
House Ways and Means Committee Chairman Charlie Rangel (D-N.Y.) stated last week that the tax provisions from the first supplemental would be included in the next version. If this does not occur, tax-writers are committed to moving a small-business tax bill separately. For more information, e-mail Greg Brown at NAHB or call him at 800-368-5242 x8421. Advocates of No Growth Continue Assault in FloridaLocalized measures to limit zoning and planning changes continue to surface in Florida, and a Hometown Democracy amendment that would require voter approval for every proposed change to a county’s comprehensive plan may appear on the state’s November 2008 ballot despite a recent defeat of an anti-growth measure in the City of Lake Worth. On March 13, Lake Worth residents rejected an amendment that would have required four out of five commissioners to approve any change to the city’s comprehensive plan, effectively shutting down all building and redevelopment in the city. The amendment’s architect was Lesley Blackner, the well-known founder of the statewide Hometown Democracy effort who has been hoping for local anti-growth victories to spur passage of her proposed amendment to the state constitution. Blackner used paid signature gatherers and the help of interest groups such as ACORN, the Sierra Club and the Green Party to get her super-majority amendment on the ballot. Despite a local environment that has been hostile toward the building and business communities, the measure was defeated by 188 votes out of more than 3,700 cast. More than 600,000 valid signatures are needed by Feb 1, 2008 to get the Hometown Democracy amendment on the ballot. Third parties report the current tally to be around 150,000 signatures, but insiders say they allegedly have more than 300,000 signatures in hand. If that amendment were in effect, voters in Palm Beach County in 2003 to 2004 would have had to vote on 1,500 changes to their local comprehensive plan, bringing a halt to development and ringing up a loss of thousands of jobs. In the meantime, more local anti-growth measures are likely in coming months. For more information on the Lake Worth Super-majority amendment, e-mail Wayne Berstch with the Florida Home Builders Association. For information on NAHB’s political operations, e-mail Gideon Lett, or call him at 800-368-5242 x8585. HUD Summit Aims at Cutting Subprime Loan ForeclosuresA free half-day “Homeownership Security” Summit sponsored by the Department of Housing and Urban Development will examine what can be done to prevent home owners from defaulting on their mortgages. HUD Secretary Alphonso Jackson and Brian Montgomery, assistant secretary for housing, federal housing commissioner, will participate in the summit, which is scheduled for the morning of May 14 at the Mandarin Oriental Hotel, near the department’s headquarters in Washington, D.C. An opening panel will examine how nonprofit, government, financial and mortgage groups can strengthen their communications with borrowers who need mortgage assistance. Research indicates that more than 50% of mortgage borrowers in default and in danger of foreclosure never contact the lender for help, for a variety of reasons. A second panel will look at what steps lenders are taking to help their customers who are in or approaching foreclosure. The panel will also discuss recent efforts of participants in the secondary market to examine the best way to help families with subprime loans that have been securitized and are more challenging to restructure. The panel will also highlight refinance programs that are being created across the country to address the escalating foreclosure crisis. For more information and to register for the summit, call 866-357-2638.
The simultaneous Webcast of the Construction Forecast Conference — Spring 2007 held in Washington, D.C. on April 26 is available for purchase for the next three months. Those interested can purchase the conference Webcast, which includes panels of nationally recognized experts discussing economic trends, government policies, developments in the housing industry and the results from NAHB's recent surveys. Purchasers will receive unlimited access to the Webcast archive for three months, as well as electronic copies of the conference handouts and presentation material. Purchasers can watch at their own pace, rewind, fast forward and review important sections. To Purchase the Webcast To purchase the Webcast, visit www.nahb.org/cfcwebcast. 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.
Construction Forecast Conference Now Available on the Internet The simultaneous Webcast of the Construction Forecast Conference — Spring 2007 held in Washington, D.C. on April 26 is available for purchase for the next three months. Those interested can purchase the conference Webcast, which includes panels of nationally recognized experts discussing economic trends, government policies, developments in the housing industry and the results from NAHB's recent surveys. Purchasers will receive unlimited access to the Webcast archive for three months, as well as electronic copies of the conference handouts and presentation material. Purchasers can watch at their own pace, rewind, fast forward and review important sections. To Purchase the Webcast To purchase the Webcast, visit www.nahb.org/cfcwebcast.
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 next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. Builders’ Tip: A Light-Duty Outfeed Table for Ripping Trim
I was just about to consult my supplier’s catalog when it occurred to me that a simple modification could solve my problem.
As noted on the drawing, I rounded the leading edge of the melamine to keep rippings from hanging up on it. — Norman Nemec, Manhasset, 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 next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar on the NAHB Web site. For assistance, call the NAHB Member Service Center at 800-368-5242.
Post-Completion Evaluation Improves Product, Bottom LineBy Gretchen Palmer, Palmer Homes We all understand that teamwork is the essence of creating a successful home building company. But what, exactly, is the team’s work in the day-to-day operations of our companies? For Palmer Homes, a crucial part of that work is a post-completion evaluation of the processes, noting problems, successes, unusual conditions and specific reasons for variances from budgets and purchase orders. By constantly evaluating processes, we can not only improve our home building process, but also our product and bottom line. The post-completion evaluation takes place 30 days after each home is completed and includes:
More importantly, the timing gives purchasing and accounting 21 days to do a “cost-to-complete” review and establish the correct accrual for open costs. We ask that a member of nearly every department participate in the completed home evaluation, including:
Gretchen Palmer, of Palmer Homes based in Central Oregon, has earned numerous awards for design and value, including Energy Star®’s Large Oregon Home Builder of the Year 2007 award for the company’s commitment to building Energy Star-certified homes. Palmer Homes neighborhoods are certified Energy Star, Earth Advantage and Water Wise, creating sustainable homes in livable neighborhoods. Palmer is currently the vice president and treasurer of the Oregon Home Builders Association and a member of the NAHB Single Family Production Builders Committee. For more information, visit the Palmer Homes Web site at www.palmerhomes.com.
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. Low Maintenance, Italian-Style for Young Professionals
The rear courtyard outdoor living space of Villa Cortena draws in potential buyers with its fireplace and extraordinary views. The latest in a series on the secrets of The Nationals model home merchandising winners. By Jan Mitchell The Gold model home winners in the 2006 Nationals Awards have secrets to share about the different aspects of model home merchandising. Whether it’s use of materials or colors, the scale of the project or just breaking the rules, all of them reveal hot trends that are emerging today.
Because La Bellezza at Peregrine is nestled in a setting not unlike the hills of Tuscany, Keller Homes chose old-world, Italian-style architecture for its courtyard villas in Colorado Springs, Colo. The Gold award-winning model, Villa Cortena, is 3,505 square feet with entry and rear courtyards. The kitchen offers views off the spacious rear courtyard, which ColorDesignArt of California merchandised with an outdoor grill and a fireplace for chilly nights. One of the biggest challenges for the community was to present it so it appeals to a variety of age groups. Merchandisers met the challenge by tailoring three models to appeal to slightly different lifestyles. “We had one home with a Tuscan interior, another with a tailored, Ralph Lauren direction, and Villa Cortena, the Gold winner, had a cleaner, more textural, contemporary look,” said Yolanda Landrum, of ColorDesignArt. She said that Villa Cortena was targeted to appeal to a couple with two teenaged children. One bedroom was merchandised for a music-loving son; another sat ready to welcome a daughter home from college. Keller Homes’ marketing has worked. A mix of young professionals and empty nesters, none too keen on high maintenance, have purchased half of the 45 villas at La Bellezza at Peregrine since the community opened in May 2006. Many of the buyers are Keller Homes repeat customers, said Pam Keller, executive vice president of sales and marketing for the builder. La Bellezza at Peregrine also won the National Gold Award for Best Detached Community of the Year over $500,000. Jan Mitchell is the senior editor of NAHB’s Sales + Marketing Ideas magazine. She also writes about model merchandising, interior design, architecture and consumer trends for other industry and consumer publications, including Professional Builder magazine and its online counterpart, Housingzone.com. Her bestselling book, “Sales and Marketing Checklists for Profit-Driven Builders,” is available through BuilderBooks.com. She has served as a judge for regional and national builder marketing competitions and is a member of the National Association of Real Estate Editors. For more information, e-mail Mitchell at mitchell.jan@comcast.net.
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. Home Buyers Drive Process of Adding ‘Smart’ FeaturesHome buyers — not builders — drive the process of adding “smart” features to their homes, according to builder observations about what home buyers want in home electronics and how builders and other professionals can more effectively and profitably collaborate with residential electronic systems contractors (ESCs). Home buyers generally asked builders about adding alarm systems and home theaters to their homes, and many owners added the systems after the home was built, according to the research Builders participating in the research indicated that they were somewhat leery of the reliability, obsolescence and programming of smart technologies. They also clearly indicated that they did not want “call-backs” related to smart features and felt “overwhelmed” by the additional support they believed smart homes might require. The additional costs of using ESCs to install smart features in new homes also concerned the participating builders. The research was conducted by the Institute of Residential Marketing (IRM), the Custom Electronic Design & Installation Association (CEDIA) and the NAHB Research Center as part of a 2006 IRM research project and involved eight focus group sessions of builders held in Dallas and Chicago last September. During each session, builders were asked about their experiences with home technology installation, what kinds of home technology needs and wishes their buyers said they wanted and what support they needed from ESCs. Because focus groups were used to develop the builder insights, the results represent the qualitative findings of those who participated in the research and are not a statistical representation of the industry at large that survey findings can yield. Home Buyer Demand a Mixed Bag Most builders involved in the research indicated that the home buyers who were interested in smart homes were busy, affluent and often had families. Home buyers also told builders that they were interested in smart systems that were easy to program and easy to maintain. Home buyers also were “fearful of losing control” because of the smart technology available, yet they imagined a wide array of uses and benefits stemming from the technology. The builders said that they listened to home buyers in order to determine whether they would be interested in adding smart technology such as security systems, automated sprinklers, home theaters or other separate systems to their homes. Is Being Smart Too Complex for Builders? Most of the builders participating in the focus groups found smart homes “too involved and too complex.” “You know how many problems you have at home just with the VCR, TV and cable box,” said a Chicago custom builder. “Multiply that by 50.” Builders also reported that some buyers' requests went beyond their comfort zone. However, most builders said that they did offer their home buyers smart modules or individual systems such as alarm systems or home theaters. The builders indicated that their homes were often pre-wired for smart technology, but that pre-wiring was not designed or installed by one supplier or contractor. Builders also believed that ESCs and smart homes were best configured just prior to or after occupancy in order to prevent damage to the smart equipment and technology. More Information, Confidence Needed to Sell Smart Features The builders, in general, said that they knew about many different aspects of smart homes and have sold smart homes in the past. They also said that consumers are able to envision many desirable aspects of living in a smart home. However, before builders take a more active role in product selection and purchases, the respondents agreed that they needed more information about smart technologies and they needed to work with trusted subcontractors or ESCs in order to confidently sell the technology to home owners. “I’m not going to try to install it,” said a Chicago production builder. “But if I know more about it, we can integrate it with other trades.” The builder also said that with a trusted trade, he would be able to “answer some questions from the home owner in some instances.” “We don’t trust the ‘smart home’ yet,” said a Dallas builder. “We trust a person who understands and who can tell us what’s going on. Over time, maybe we’ll trust the ‘smart home,’” the builder added. For Complete IRM Research Results For complete results of the IRM research, click here. For more information about the IRM research project, visit www.nahb.org/mirm. Speakers to Discuss the Future of Boomer HousingHow boomers and seniors are transforming housing, the “not so big” approach to residential architecture and the long-term opportunities and challenges facing building professionals today will be addressed by key speakers at the upcoming Building for Boomers & Beyond: 50+ Housing Symposium in Denver. Hosted by the NAHB 50+ Housing Council, the symposium will be held at the Hyatt Regency Denver at the Colorado Convention Center from May 30 to June 1, with post-conference courses available June 2-3.
To Register To register for the symposium, or for more information, visit www.nahb.org/build4boomers. Advance registration ends Friday, May 11. After that, attendees may register on site.
“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. Pillar-Winning Met Lofts Help Transform Downtown L.A.Met Lofts, the first loft community every built from the ground up in Los Angeles, won a 2007 NAHB Pillars of the Industry award this year for the Best New Loft. Built on a block of parking lots in the middle of a largely ignored downtown that is now being transformed into “the entertainment district,” the development is a mixed-use, market-rate rental community with a 20% affordable component. Its exterior is contemporary — a little bit industrial, a little bit edgy — and its 264 residences have everything a loft should have: high ceilings, large windows and great views of the city, perched atop 11,000 square feet of ground-level retail . The community’s owners, Forest City Residential, have catered to young urban pioneer residents with a finely attuned appreciation for the unusual. The loft-style construction delivers a seriously industrial interior look, but does so with all the features that its residents demand: on-site, direct-access parking; a fitness center and lap pool; an interior courtyard and entertainment area; a lounge and game room; and — it being L.A. — a private “screening room.” The Met Lofts mascot is a dog named Lili, and prospective renters are given two customized maps of the area — one for humans and one for pets. And to fulfill L.A.’s 1% public art requirement, the owners commissioned an interactive electronic art display that gives the building an unmistakable presence at night. The mix of good design, good market research and a lot of creativity has worked incredibly well, with the building 96% leased and stabilized after 14 months, commanding some of the highest rents in town, with no rent concessions. For information on resources available from NAHB Multifamily, e-mail Ann Marie Moriarty, or call her at 800-368-5242 x8350. Decorating on a Budget a Top Priority for RentersInterior design and home décor is a hot topic for renters, according to a recent survey conducted by Chicago-based Apartments.com. According to the survey, 90% of renters will decorate when moving to a new apartment; and of those, 81% of them will decorate within the first three months of moving in. The biggest decorating challenge for 38% of the survey respondents is staying within a budget. Other decorating challenges for the renters polled include: not having enough space (23%), needing help with organization (12%) and uncertainty about what colors to use (12%). Sixty-five percent of the renters said they planned to spend $500 or less on redecorating and 18% put their decorating budget in the $500 to $1,000 range. Decorating does not have to break the bank, Apartment.com tells renters, and it passes along this advice from Eva the Shopping Diva, a shopping expert and blogger from ShopLocal:
For information on resources available from NAHB Multifamily, e-mail Ann Marie Moriarty, or call her at 800-368-5242 x8350. Home Owners Encouraged to Go Green on RemodelingDuring Home Remodeling Month this May, NAHB Remodelers is encouraging home owners to go green with their remodeling projects — conserving natural resources and improving indoor air quality while saving money on their utility costs. “It’s not just feeling good about the environment, but feeling good in your pocketbook,” said NAHB Remodelers Chair Mike Nagel, CGR, CAPS, a remodeler from Chicago. “Green remodeling offers tangible benefits for consumers, including significant savings on utility bills.” According to the U.S. Department of Energy, home owners can save $600 or more per year on utility bills by upgrading appliances, windows and insulation to Energy Star®-rated products. Home owners can also save money on their water bills by retrofitting their homes with water-efficient fixtures — saving up to $175 annually, according to the Environmental Protection Agency's WaterSense program. Examples include aerators for faucets, tankless water heaters and low-flow or dual-flush toilets. “In some older homes, the costs for these upgrades can be completely offset by the savings on the utility bill. It’s that big,” Nagel said. The federal government also offers a $500 tax credit for energy-efficient windows, doors, insulation, HVAC and other upgrades. The credit expires at the end of 2007. NAHB Remodelers offers some simple additional tips for minimizing a home’s energy use:
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 qaulify:
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. Deadline for Remodeling Hall of Fame Nominations NearsCreated to honor those with lasting contributions to the remodeling industry, the Remodeling Hall of Fame seeks nominations for the next class of honorees. The deadline is Wednesday, July 11. For more information, click here.
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. Register for the Modular and Panel Plant Tour on May 20-22The 2007 Modular and Panel Plant Tour, a behind-the-scenes look at modular and panelized home building industries, will be held May 20 to May 22 in Roanoke, Va. The tour, by NAHB's Bulding Systems Council, will feature educational programs, networking and tours of eight plants. Plants on Tour The plants on the tour include:
To Register For more information, or to register, visit www.nahb.org/PlantTour. Read The Education Insider to Maximize HBA Education
Education is high on the list when members are asked why they joined their local home builders association. Now that the industry is facing a challenging correction, education is more important than ever and continuing education can help home building professionals distinguish themselves from their competition and favorably impress their clients. To support local HBAs as they begin or continue their educational programs, The NAHB University of Housing offers The Education Insider, a quarterly e-newsletter featuring articles about education news, course updates, trends in education, tips for minimizing costs and maximizing revenue, and other important issues. To receive a copy of the latest edition of The Education Insider, e-mail Drew Williams at NAHB, or call him 800-368-5242 x8196. 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. 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 next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar on the NAHB Web site. For assistance, call the NAHB Member Service Center at 800-368-5242.
U.S. Forests Being Renewed, Although Challenges RemainAny loss of forestland during the 20th century due to urban and suburban growth was generally offset by replanting and reforestation efforts as well as natural forest re-growth on abandoned agricultural lands, and there is good reason to believe those trends will continue, says a new study released by the Society of American Foresters. The U.S. is covered by 750 million acres of forestland, and that amount has remained essentially unchanged for 100 years, although the nation’s forests have increased by more than 10 million acres over the last 20 years, according to “The State of America’s Forests.” Helping regenerate forests are technological advances that have made farming more efficient, vastly reducing the amount of land needed to produce food, the study says. “There is much good news to be shared about America’s forests, particularly in regard to their abundance, the ecological services and recreational services they offer, the raw materials they provide and the successful initiatives to sustain them,” Dale Bosworth, former forest chief for the U.S. Department of Agriculture, writes in the report’s introduction. The report is based on data from a wide range of sources, including the U.S. Forest Service and the U.S. Fish and Wildlife Service, and it reaches a similar conclusion to a Food and Agriculture Organization of the United Nations report in March finding that the U.S. had annual increases in forest area in the 1990s through 2005. The U.S. National Academy of Sciences last November also reported a widespread pattern of reforestation in the U.S. and said that it was a world leader in forestland re-growth. “Our nation should be proud of the state of our forests,” said Rob Lowman, president of the Abundant Forests Alliance (AFA), a coalition of wood and paper products companies formed to share information about how the industry is helping to ensure abundant forests. While the report notes that America’s forests face significant challenges — such as fire, insects and disease, invasive weeds, unmanaged recreation and land conversions — it documents a number of reasons to be optimistic:
312-Point Quality Checklist Makes for Happy CustomersDelivering about 550 units last year, Veridian Homes, recipient of the 2007 EnergyValue Housing Award for Builder of the Year, is demonstrating how a quality control process can achieve top levels of customer satisfaction. As a National Housing Quality (NHQ) Certified Builder and the winner of a 2006 Gold National Housing Quality Award, Veridian’s quality assurance program has withstood rigorous scrutiny by housing quality experts. Its energy-efficient homes have received stellar customer approval ratings consistently in the range of 95%. The company manages and clearly defines the expectations of everybody involved in the construction of each home — including the home owner — and addresses potential problems early through a 312-point quality checklist, according to the NAHB Research Center. That proactive approach virtually eliminates rework and dramatically reduces callbacks, saving money and producing happy customers. Veridian’s literature for home owners describes each step of the construction process, outlines the responsibilities of each party and answers many predictable questions about change orders (including a chart showing when various changes are allowed), allowances, product options, walk-throughs (six are planned for each customer), post-construction clean-up, the expected length of time for each phase of construction, contact information for utilities and community services and how to initiate warranty service. David Simon, the company’s president of operations, attributes Veridian’s happy customers to its ability to “deliver homes on time and on budget every time.” “Our ‘even flow’ production scheduling methodology is key to ensuring on-time delivery at each stage of home construction and to efficiently coordinating trade partners,” said Simon. “Detailed trade partner scopes of work help ensure that the proper methods and materials are used consistently on every home. Weekly meetings with trade partners are critical for assuring good communication, providing trading opportunities and seeking better ways of getting the job done.” Also, rather than resting on its laurels, the company uses a continuous NHQ improvement process designed to identify its strengths and weaknesses. “Company-wide self assessments evaluate all aspects of our organization and identify key opportunities for improvement,” Simon said. Veridian uses the management systems of the NHQ Builder Certification program to identify key opportunities for improvement, he said. Participation in the EnergyValue Housing Award process has also been instrumental in Veridian’s benchmarking and networking and its evaluation of the best energy-efficient design, construction and marketing processes, Simon said. Applications are now being accepted for the 2008 EnergyValue Housing Awards. To learn more and to apply, click here (nahbrc.org/evha). Application Period Open for EnergyValue Housing AwardsThe NAHB Research Center has announced the start of the application period for the 2008 EnergyValue Housing Award (EVHA) program. Over the past 12 years, the EVHA has honored home builders who voluntarily integrate energy efficiency into the design, construction and marketing of new homes. In addition to opening up marketing opportunities for the winners, the awards provide applicants with access to the panel of energy-efficiency experts who judge the program each year. The EVHA ceremony will be held during the 2008 International Builders’ Show (IBS) in Orlando, Fla. Awards will be presented in the affordable, custom, factory-built, production and multifamily categories for hot, moderate and cold climate regions. Entries are evaluated based on the homes’ energy value, design, construction methods and processes, marketing and customer relations efforts, and participation in voluntary energy programs. All professional U.S. home builders whose primary occupation is constructing homes or developing real estate are eligible to participate. Although previous winning projects are ineligible, previous winners may submit new or different homes for consideration. The homes must have been completed after January 2005 and before the application is submitted. The official EVHA application must be postmarked by July 27. Companies may submit only one application per category, for a maximum of five applications. The EVHA is coordinated by the NAHB Research Center in partnership with the National Renewable Energy Laboratory of the U.S. Department of Energy and NAHB. To obtain an EVHA application or for more information, click here (nahbrc.org/evha) or e-mail evha@nahbrc.org. Showcase Home Being Built to Resist MoldThe Partnership for Advancing Technology in Housing announced earlier this month that three of its manufacturing partners — CertainTeed, Georgia-Pacific and Typar — are collaborating on a Mold Safe Model Home that will incorporate mold-resistant building practices and materials. The 3,000-square-foot two-story home will be constructed by PATH builder partner Courtlan Construction on the shores of Spofford Lake in Chesterfield, N.H. and is expected to be completed in July. The home will be a showcase for building designers, architects, planners and product manufacturers concerned about preventing mold growth in construction. The project will focus on risk management efforts designed around the development of a new mold prevention protocol focusing on smart building practices, PATH said. The protocol includes the use of mold-resistant building materials and a thorough inspection process that begins during the design stage and proceeds through the construction cycle and occupancy. The energy efficiency and durability of the building products going into the home have also been taken into consideration. “Until recently, the idea of creating a Mold Safe Model Home was simply not feasible,” said Charles Perry, principal of Environmental Assurance Group, a lending and real estate consulting firm that is spearheading the project. “We are partnering with many manufacturers, designers, architects and the financial community to keep mold infestation out of our most important asset — our home.” Location and climate are tied to the effectiveness of mold-resistance strategies, PATH said, and materials chosen for the home will have to be able to stand up to New England’s wide extremes in weather, with summers capable of reaching almost 100 degrees and winters hitting 20 degrees below zero or colder. The structure is also expected to be subject to heavy amounts of moisture because of its lakeside location. The installation of the products will be closely monitored. Additional project sponsors include: American Mold Guard, Benjamin Obdyke Residential Roof and Wall Programs, Bonneville Windows and Doors, Bosch Appliances, Tamaccio Architects; Wastewater Alternatives and the Western Red Cedar Lumber Association. Quality Assurance Can Reduce Liability Insurance CostsBuilders, trade contractors and design professionals are adopting quality assurance plans to help ease the burden of the rising cost and declining availability of general liability insurance, according to Quality Matters, the e-newsletter of the National Housing Quality Program. A copy of a documented quality assurance plan can show an insurance carrier the steps that a builder has taken to reduce risk. The plan should demonstrate exactly how each aspect of the system operates, and how the company minimizes the risk of defect lawsuits and claims of poor workmanship and improperly installed products, materials and equipment. “Document everything,” advises Mike McMichael, senior risk consultant for Zurich Services Corporation, one of the largest construction industry insurance brokers in the country. “Particularly for smaller builders, documentation is one of the most important things that can be used down the road to demonstrate consistency, sophistication, responsibility and a proactive approach to quality,” he says. Insurance carriers look closely at management practices to assess risk, and according to McMichael, a company’s quality assurance program, or its failure to have one, is a telling indicator of how the business is managed. When discussing their plans with insurance carriers, builders should keep in mind that quality control is not the same as quality assurance. Insurance carriers are looking for consistency, and quality control can be perceived as a reactive and inconsistent method for delivering results. To present a compelling argument for lower insurance rates, builders should bring the following talking points to the negotiating table in their discussion of their quality assurance system:
Objective, third-party verification of quality management practices is another compelling selling point for reduced premiums. Builders who don’t have a fully-documented, systematic program for quality assurance in place should consider participating in third-party certification such as the National Housing Quality (NHQ) program. For more information and a list of companies offering discounted construction general libability insurance to builders who meet specific criteria, e-mail Don Carr, NHQ Certified Builder program manager at the NAHB Research Center. Bush Declares Major Disaster From Kansas TornadoesParts of Kiowa County, Kan. struck by severe storms, tornadoes and flooding on May 4 have been declared major disaster areas by President Bush, making federal funding available for affected individuals. Coordinated by the Federal Emergency Management Agency (FEMA), the assistance can include grants to help pay for temporary housing, home repairs and other serious disaster-related expenses. Low-interest loans from the U.S. Small Business Administration also will be available to cover residential and businesses losses not fully compensated by insurance. Additional housing assistance will be offered by the Department of Housing and Urban Development and the Department of Agriculture. As state and local first responders, volunteers and search and rescue crews arrived on the scene to sort through the devastation, FEMA was deploying critical emergency equipment, food supplies and disaster assistance personnel to support the recovery effort in Kansas. FEMA has moved critical supplies into the affected area, including 15,000 gallons of water for approximately 5,000 people and 21,000 meals to feed 10,000. To assist home builders associations working in their communities to help both local consumers and building industry members in times of disaster, NAHB has compiled resources such as general talking points, government assistance links and information from FEMA, the Red Cross and the Small Business Administration on disaster recovery. To access these resources, click here (nahb.org/disasterresources). NAHB also has a series of column service articles on natural disaster that can be localized. To access the articles, NAHB members can click here. For information abo |