Nation's Building News Online: November 5, 2007

Print All Articles Text Version

FDIC Head, Diverse Groups Tackle Housing Affordability

As Congress and federal financial regulators pursue measures to prevent a recurrence of the problems besetting the secondary mortgage market, steps also need to be taken to ensure that homeownership opportunities remain for subprime borrowers, according to Sheila Bair, chairman of the Federal Deposit Insurance Corporation.

"Homeownership should be a vehicle for accumulating wealth, not stripping it," Bair said in an address before the 2007 Housing Affordability Symposium. Co-hosted by NAHB, the NAACP and the National Education Association, the Oct. 5-6 symposium is taking place on the campus of the George Washington University in Washington, D.C.

"Housing affordability is one of America's greatest social issues," Bair said, and a specific goal of her agency is "keeping people in homes they can afford." Making that job difficult in the current housing downturn are hybrid adjustable-rate loans that are readjusting at significantly higher interest rates after the second or third year of the loan.

Many subprime borrowers did not understand what their mortgages would cost once they were reset, she said, and lending standards were lacking.

Action needs to be taken to ensure that the subrime problem "does not become a drag on the economy," she said. "Kicking the can down the road will only prolong borrower distress and uncertainty. The ultimate solution is a national standard that covers all market participants."

While the predatory lending standards that led to a rapid increase in problem subprime loans needs to be addressed, "responsible subprime lending has an important role," she said, and can increase the benefits of homeownership for families and the communities in which they live.

The bottom line, she said, is that lenders need to ensure that borrowers can repay their loans.

Bair's address was the first of many designed to provoke further discussion of initiatives on several fronts to find remedies for the housing affordability problems that have been pricing out increasing numbers of families and preventing them from residing in the communities where they work.

Affordability is a critical issue that deserves the attention of all those who care about the stability of America’s families, said NAHB President Brian Catalde.

“This event is about getting people together for a focused conversation on how all of us, collectively, can work together to help more families find a home that meets their needs at a price they can afford,” Catalde said.

“Lots of organizations have conducted seminars and conferences on this issue,” Catalde said. “They have come up with many good ideas that ought to be implemented.

“It is my hope that this symposium is to go one step further, by creating a set of recommendations we can collectively embrace and forward to those institutions — public and private — that are best positioned to act on the ideas advanced during the symposium,” Catalde added.

The goal of the symposium is to develop a broad national coalition that understands and voices support for housing issues at the local level, and to compile a toolbox of techniques and programs to help a local coalition improve housing affordability.

Further coverage of the symposium will appear in the Nov. 12 issue of Nation's Building News.

For more information, e-mail Blake Smith at NAHB, or call him at 800-368-5242 x8583.

Photos by Morris Semiatin

Builders’ Show Registration Running Ahead of Last Year

Despite the country's slowing housing market, attendance registration for the International Builders' Show is up 15% over the same time last year, NAHB announced last week.

The housing industry's largest annual light construction trade show and exhibition, the IBS will be held Feb. 13-16 at the Orange County Convention Center in Orlando.

"Builders view the International Builders' Show as an indispensable business tool," said Ken Klein, chairman of the NAHB Convention & Meetings Committee and a builder and remodeler from Tulsa, Okla. "They come to the show to gain valuable knowledge on the industry, order the latest building products that will keep them competitive in their market and educate themselves on timely sales and marketing practices."

NAHB also reported that the number of dealer distributors registered to attend the show has jumped 37% year-to-date. This is particularly important to exhibitors for whom dealer distributors represent a larger source of prospective business.

"Does this mean the downturn is over? No. But builders and suppliers are aggressively positioning themselves to ride out the downturn and come back strong when the market improves," Klein added.

More than 100,000 people from 100 countries attended last year's show.

The 2008 IBS will feature more than 1,900 exhibitors representing more than 300 industry categories and displaying the latest in home and building products and services.

Reader Survey: Tell Us What Housing News Is Important to You

Because you regularly read Nation's Building News, we value your ideas and would like your help.

Please tell us what information in Nation's Building News is important to you — what you read and what you might like us to add — by answering our short online reader survey.

To take the survey, click here.

(Please note: If you have already answered the survey questions, thank you.)

Wildfire Fears Fuel Furor Over Housing

The specter of the disastrous Southern California wildfires haunts residents of Nedonna Beach, Ore., a 350-home coastal enclave north of Rockaway Beach where wooden homes nestle among trees and the only way in and out is at the south end, where a street crosses railroad tracks to join U.S. 101. In a turbulent meeting at Rockaway Beach’s City Hall, home owners pleaded against new development they said would crowd too many people into their community with only one escape route in a wildfire, tsunami or other emergency. But the planning commission, after its annoyed chairwoman ordered the public out of the room, approved a new 47-home addition called Nedonna Estates — only to have its action declared invalid in subsequent days and scheduled for rehearing. The dispute stands out because it reflects what wildfire experts say is a dangerous trend across the West of new development with too little regard for the flammable landscape around it. Some of Oregon’s worst wildfires have struck in dense coastal forests. State fire officials say a second emergency access route to Nedonna Beach should be a key element of community planning, but city officials said it would be far too expensive to build a new access at the other end of the community, because U.S. 101 runs mostly along a ridge high above the homes. They said the developer would provide the city a new public right of way that might allow a second road access — if Nedonna Beach residents all chip in to pave it. (www.oregonlive.com)
The Oregonian (11/5/07); Michael Milstein

Nation Must Adapt to Greater Wildfire Risk

Even though a firm link between one of the most intense California fire seasons in 50 years and global warming has yet to be made, planning for how to adapt to larger and more frequent wildfires is under way. It includes building homes with fire-resistant roofs and windows, and landscaping with fire-resistant plants. It also means planning new communities with streets wide enough to handle evacuation traffic even when the curbs are lined with fire trucks, and it means maintaining homes and property over time. People who live in flood plains or hurricane zones generally “understand the need to adapt and to build differently,” says James Smalley, who heads the wildfire-protection program at the National Fire Prevention Association in Quincy, Mass. “But people who live in natural settings don’t quite get it — that you can adapt, that you can still have a natural, beautiful setting. You have to understand that fire is part of the natural landscape. So you have to adapt.” The greatest increase in fire-hazard risk from climate change, some researchers say, is likely to come in the East and the Southeast U.S., not in the West. There, snowmelt and rainfall are unlikely to slake the increasing thirst of trees and shrubs as carbon dioxide spurs their growth during longer, warmer growing seasons. This could leave more of the eastern woodlands drier and more vulnerable to wildfires by summer’s end. Meanwhile, some of the densest mingling of homes and woods — what experts call the wildland-urban interface — can be found in the eastern U.S. On a related front, two years ago a team of forest ecologists at the University of Wisconsin found that 44.3 million homes in 2000 – nearly 39% of all the housing units in the lower 48 states — were built along the wildland-urban interface. (www.csmonitor.com)
Christian Science Monitor (11/1/07); Peter N. Spotts

Government to Push for Homes Built to Last 200 Years

In a project aimed at reducing the need for rebuilding homes, Japan’s Prime Minister Yasuo Fukuda will propose a law next year for more durable types of houses and condominiums that will last for 200 years, including tax incentives to build and buy them. According to the Construction and Transport Ministry, the average life span of Japanese residences from construction to demolition is about 30 years, compared with 77 years in Great Britain and 55 years in the United States. Among the proposed changes in residential construction and design standards: the size of posts and beams would be increased to strengthen earthquake resistance; and building foundations would be higher to improve airflow and durability. The plan would encourage regular maintenance of houses and condos and electronically store and manage records on their state of repair. In apartment buildings, the construction method will separate the structural skeleton of the building from the interior design and layout of individual units so residents can make changes to suit themselves. The proposal hopes to decrease housing-related industrial waste by 10 million tons a year and reduce housing costs by as much as one-third for building or acquiring homes and maintaining them. However, the construction cost of such buildings is expected to be 10% to 20% higher than an ordinary residence, the ministry said. (www.yomiuri.co.jp)
Daily Yomiuri Online, The Yomiuri Shimbun (10/20/07)

In Pursuit of a Downpayment: With Lenders Wanting More, Buyers Have to Dig Up New Sources of Money

Even for people who have money, coming up with a downpayment to buy a house has become a lot more challenging in recent months. After winning a bidding war on a 2,000-square-foot home in Takoma Park, Md. with an offer of $710,000, the hard part for Peter McGarvey was making enough of a downpayment to get a good rate on a loan and keep the monthly mortgage payments manageable. Because he had not yet sold the home he already owned, he had to put together a downpayment from other sources. “We have lots of equity in the house,” he said, “and we have money saved up. Unfortunately, most of it is in retirement funds and mutual fund investments. McCarvey and his wife came up with 10% down and the cash they needed for closing costs using $25,000 from the sale of mutual funds about a year ago, $25,000 from parents and another $50,000 from their Thrift Savings Plan, a retirement program for federal employees. Even a few months ago, borrowers did not have to go to such lengths and it was easy to get a mortgage that required little or no money down. The median downpayment for first-time buyers was 2% of the purchase price in 2005 and 2006, according to the National Association of Realtors®. While lenders are now looking for more down, that’s not to say they are requiring downpayments of 20% or more, which was the norm until the mid-1980s. FHA borrowers can get loans calling for 3% down; and veterans or members of the military still quality for 100% financing. On conforming loans up to $417,000 eligible to be purchased by Fannie Mae and Freddie Mac, 5% is now the minimum downpayment. Jumbo loans higher than $417,000 will probably require 10% down. Many employers will allow prospective home owners to borrow money from their 401(k) account; borrowers pay interest on the loan and repay it over a specified period of time with after-tax dollars. (www.washingtonpost.com)
Washington Post (11/3/07); Nancy Trejos

Reprieve for the ‘Piggybackers’: Still No Credit-Score Crackdown

Despite industry pledges to do so at the end of the summer, “piggyback” credit-score-inflation schemes for mortgage applicants haven’t been reined in. As a result, lenders continue to be misled into treating loan applicants with poor credit as prime-credit candidates, worsening already critical delinquency problems in the mortgage market. The piggyback problem involves Internet-based firms that “rent” high-quality credit account histories to people with bad credit. Web sites claim to be able to raise consumers’ scores by 100 to 200 points, or more, in 30 to 90 days. They do this by paying credit card holders with excellent payment histories to open their accounts to authorized users, who are charged, sometimes $1,000 to $2,000, for the privilege. Once listed as an authorized user  even with no physical access to the Visa or MasterCard itself — the positive credit history of the cardholder flows through to the credit files of the piggybacker. Consumers with FICO scores in the mid-500s can add multiple authorized-user accounts to their files, promoters claim, and boost their scores into the mid-700s. (www.washingtonpost.com)
Washington Post (11/3/07); Kenneth R. Harney

Housing Woes Sting Region’s Retailers

The worst housing market in 16 years has dinged everything from banks to car dealers to staffing companies, and now it might prove to be the lump of coal in the Christmas stocking. Retail sales in Florida have been declining since the start of the year but now are reaching levels that are starting to alarm economists. “Every month this year through September, sales are down over the same month prior year,” said Frank Williams, an economist with the state demographic research office. “That’s true for most categories. In real terms, if you adjust for rising prices, they’d all be negative.” Part of the reason Florida has been hit so hard is that the state’s retail sales had been in overdrive for so long, pushed upward by a strong stock market followed by a hot real estate market, he said. Thirty-eight percent of Floridians say that the spiraling costs of insurance and taxes have affected their spending habits, says retail analyst Britt Beemer, who founded America’s Research Group. Couple that with the impact of resetting adjustable-rate mortgages taken out during the housing boom, and there is a huge drawdown, he said. “Some people are seeing mortgages that are up $200 and $300 a month,” Beemer said. “If you take $200 or $300 out of a marketplace, that’s a lot of dollars. There’s less disposable income and that’s why we have a problem in Florida.” (www.heraldtribune.com)
Sarasota Herald-Tribune (11/4/07); Toni Whitt

Carried Interest in Cross Hairs of House AMT Tax Relief

The House Ways and Means Committee on Nov. 1 marked up and approved H.R. 3996, the Temporary Tax Relief Act of 2007. The primary focus of the bill is to extend short-term relief from the Alternative Minimum Tax (AMT) for another year, which would prevent an additional 20 million Americans from being captured under the tax.

The bill would also extend a number of expiring tax provisions of interest to NAHB such as brownfields expensing, New Market Tax Credits and leasehold improvements.

Earlier this year, the House passed “pay-as-you-go” rules that require offsets for all tax cuts to make them revenue neutral. One of the primary revenue offsets for the one-year AMT patch is changing the taxation of carried interest from the current 15% capital gains rate to ordinary income tax rates that can run as high as 35%.

NAHB opposes this proposal and has been lobbying heavily against it during the past four months because it would disrupt the relationship between investors and developers, particularly multifamily and commercial builders.

Finally, the committee also included in the bill the full text of H.R. 3648, the Mortgage Debt Forgiveness Relief Act of 2007, legislation supported by NAHB because of its critical importance to resolving the subprime mortgage crisis. The bill was passed by the House of Representatives in early October.

This bill was most likely included in H.R. 3996 because the AMT patch legislation is considered a “must-pass” item and is the best vehicle for getting the mortgage debt forgiveness enacted this year. This is also likely an attempt to push the Senate to include the mortgage debt forgiveness provisions in its AMT relief bill.

NAHB sent a letter to the House Ways and Means Committee immediately prior to the markup acknowledging the importance of AMT relief and mortgage debt forgiveness but still expressing significant concerns over the carried interest proposal. 

H.R. 3996 was approved by the panel without any changes to the carried interest provision. However, Chairman Charles Rangel (D-N.Y.) and Ranking Member Jim McCrery (R-La.) agreed to work with other members of the panel who expressed support for protecting real estate and perhaps other industries that are true "job creators and engines of the economy" from this tax. Realistically, it could be difficult for them to simply carve out specific industries from the carried interest proposal because there are few other avenues available to raise this revenue.

In the Senate, Finance Committee Chairman Max Baucus (D-Mont.) and several other Democratic members of the committee have expressed discomfort with the carried interest proposal in the House, and Senate Majority Leader Harry Reid (D-Nev.) has even stated that no stand-alone legislation on carried interest will pass the Senate this year. 

The Senate has shown more willingness to passing temporary AMT relief without any revenue offsets. 

Last week’s House action will not be the final word in this legislative process and even Rangel has predicted a “calamity” over revenue offsets when the House and Senate try to work out the AMT legislation. The AMT patch could ultimately be passed into law without a revenue offset. 

NAHB continues to weigh in with both the House and Senate on carried interest as well as gaining swift passage of mortgage debt forgiveness legislation.

To view the legislation, click here and type the bill number in the box at the center of the page.

For more information, e-mail Greg Brown at NAHB or call him 800-368-5242 x8470.

Florida Sees Relief on Property Tax, Workers’ Comp Rates

Florida home owners who in recent years have been hammered by high property taxes and insurance costs will have the opportunity to give themselves some tax relief through a proposed constitutional amendment that will appear on the state’s presidential primary ballot on Jan. 29, the Florida Home Builders Association (FHBA) reported last week.

After intense wrangling, the Florida Legislature passed a $12 billion property tax relief plan late on Oct. 29 that lawmakers say will gain public support and help jump-start the state’s economy.

The measure will allow primary home owners to transfer benefits from a “Save Our Homes” 3% assessment cap on their properties when they move; double the existing $25,000 homestead exemption for homes valued at more than $50,000; and set a 10% annual assessment cap for properties such as businesses and second homes.

While the plan is not as strong as the Florida House had pushed for, David Hart, vice president of legislative affairs for the Florida builders, said that the members of his association should be encouraged that they will have an opportunity to vote on needed property tax relief at the start of next year. “However, this package is only a first step toward real reform and our industry recognizes that much more work is needed,” he said.

$700 Million Savings in Workers’ Comp Costs

Florida builders also received some good news last week from the Florida Insurance Commissioner, who ordered the National Council on Compensation Insurance to reduce workers’ compensation rates by 18.4%, FHBA reported. The rate reduction should provide a $700 million savings to the state’s employers.

“Prior to legislative reforms, Florida consistently ranked No. 1 or No. 2 in the country for the highest workers’ compensation rates,” said FHBA President Robert Parrish. “However, with workers’ compensation reforms — which FHBA was instrumental in helping to achieve — Florida has dropped out of the top 10 rankings. The latest reduction could drop Florida into the mid-20s, depending on rate changes in other states.”

The 18.4% rate reduction will be the fifth consecutive drop since the legislature passed workers’ compensation reforms, Parrish said, and will lead to a cumulative overall statewide average rate decrease of more than 50% since 2003.

Useful Links to Monitor Economic and Housing Trends

The following are links to useful information from government agencies and NAHB that will enable you to monitor the housing market.

To access the latest information available, simply click the links.




Want to Know the Housing Forecast for the Top 100 Metros? 

Find out in HousingEconomic.com’s 2008 to 2009 Metro Forecast (free preview).

Get the metro forecast with in-depth analysis, overviews and downloadable Excel tables.

To learn more, visit www.HousingEconomics.com.



Free NAHB Kit Gives Builders Back-to-Basics Tips in Navigate the Slowdown

What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn.

To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here.

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: Create Clean Edges With Painter's Tape Plus

 

 

 

 

Click for larger image.

Just about every painter knows that paint and frustration lurks when a painted surface must butt up against an unpainted surface such as a part of a cabinet, stairs or wood trim.

Easy-release painter's tape alone won’t keep the paint off the unpainted surface, not completely. The paint will flow into the minute irregularities beneath the tape’s edge — leaving a fuzzy line when the tape is peeled away.

Yes, some painters have a steady hand and are skilled enough to do this job freehand, but for most of us, the task is rarely successful.

We recently solved this problem in an entertainment-center project that my company built.

As shown in the accompanying illustration, the cabinetry has painted uprights and lacquered shelves.

To get the clean line we were looking for, we first applied a strip of easy-release painters tape to the shelf.

Then we ran a thin bead of latex painter’s caulk to the intersection and wiped it with a moistened finger a couple of times to remove virtually all the caulk. We weren’t concerned about leaving a bit of caulk on the parts to be painted, only on sealing the edge of the tape.

After we were done painting the uprights, we carefully removed the tape while the caulk and paint were still wet.

The result ― A clean paint line without a master’s hand.

One word of caution, however: If the caulk and the paint are dry by the time you remove the masking tape, run a sharp utility knife down the intersection first.

— Chuck Green, Ashland, Mass.

Tips & Techniques provided by Fine Homebuilding.
©2005 The Taunton Press

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 to Navigate the Slowdown

What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn.

To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here.

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.

Awards Cited for Promoting Energy-Efficient Construction

Celebrating its 25th anniversary, the Energy & Environmental Building Association (EEBA) has recognized the NAHB Research Center’s EnergyValue Housing Award (EVHA) for making one of the 25 most significant contributions to the promotion and development of building performance related to the science of new home construction over the past 25 years.

The Legacy Awards were presented during the association's annual Excellence in Building Conference on Oct. 10 in St. Paul, Minn.

The Research Center’s EVHA program was cited for its long history of energy education outreach and its instrumental role in publicizing the impact of energy-efficient construction.

“The Legacy Awards are the first of their kind to recognize the significant work done by the pioneers in building science,” said Kathleen Guidera, executive director of EEBA. “Their passion for better building performance has provided all of us with a higher building standard that can be applied to homes across the country.”

Legacy Award categories included design, production, application, testing, technology, education, awareness, health, safety, educational resources, publications and legislative.

Supported by an alliance of educational and technical organizations, EEBA provides the industry with educational programs and resources for environmentally responsible design and improved building performance.

The EnergyValue Housing Award program was created in 1996 to help educate the home building industry and the public about successful approaches to energy-efficient construction that can be implemented by mainstream builders. The awards are now in their 13th year.

The 2008 EVHA will be presented at the International Builders’ Show in Orlando on Feb. 13.

NACo Senior Officers Tour NAHB Research Center

The NAHB Research Center once again was the focus of attention on Oct. 24 as senior officers from the National Association of Counties (NACo) toured the new state-of-the-art laboratory and market research facility in Upper Marlboro, Md.

NAHB Vice President/Secretary Bob Jones hosted the tour in conjunction with NAHB Research Center President Mike Luzier.

The afternoon briefing and tour stemmed from the fifth annual NAHB & NACo Leadership Summit in Long Beach, Calif. in August, where NACo leaders expressed interest in learning more about the Research Center’s quality assurance program for builders and how it might better benefit their counties.

The tour provided another opportunity for Bob Jones to discuss the NAHB Green Building Program, which will be unveiled on Feb. 14, as well as other steps the association is taking to promote voluntary, incentive-based, green-building programs to state and local governments.

NACo senior officers taking the tour were Eric Coleman, NACo president and commissioner, Oakland County, Mich.; Valerie Brown, NACo first vice president and supervisor, Sonoma County, Calif.; Colleen Landkamer, NACo immediate past president and commissioner, Blue Earth County, Minn.; and Don Stapley, NACo president-elect and supervisor, Maricopa County, Ariz.

NACo represents 2,256 counties or 74% of the nation’s counties and 82% of its population.

NAHB is an active member of NACo’s Economic & Development Committee as well as a member of its Green Government Initiative. NACo will be hosting the 2008 NAHB & NACo Leadership Summit.

For more information, e-mail Brooke Ransom at NAHB, or call her at 800-368-5242 x8584.

Homes That Excite 50+ Buyers Just as Important as Lifestyle

Most active adult builders believe that lifestyle is the primary selling point for age-qualified communities. Housing comes second.

As long as they offer the lifestyle bells and whistles, all they need to provide is a variety of single-level housing products and buyers will come.

I am the first to admit that lifestyle has been — and will continue to be — a key factor of a successful age-qualified community. But housing remains a critical part of the equation. It is not enough to offer only a handful of models and maintenance-free living.

Because most customers have lived in their homes for 20 to 30 years, builders must give them a real incentive to move.

Product Diversification Is Key

Today, the Chicago metropolitan area is a hotbed for age-qualified active adult communities. Surprisingly, less than 10% of the homes in these communities are multifamily, while attached housing accounts for 40% of total new housing starts.

A significant benefit of Cambridge Homes’ Carillon communities, our company’s active adult brand, is that 40% of the new homes we build for this market are attached housing. This gives us an edge over the competition, which primarily offers single-family homes.

Active adult buyers are as diverse in their needs and wealth as other market segments. Many still work, others have second homes in warmer climates and the ratio of couples to singles is often negligible.

Product diversification makes sense, especially with large active adult communities, because having a broad range of housing for a varied buyer composition will optimize absorption.

Product diversification also enhances a community’s overall appearance. Building distinctive neighborhoods of single family and multifamily homes creates streetscapes with a village-like feeling that many active adult buyers who often move from well-established neighborhoods will find appealing.

Urban Areas a Built-In Market for Attached Homes

The Chicago area is not an easy place to spend winters, which explains why nearly half of Carillon residents either own or rent second homes in warmer climates — and why attached housing is popular.

As a rule, these “snowbirds” favor attached housing because of the comparatively lower price points and the benefits of maintenance-free living. Snow removal and lawn service is provided to all Carillon Homes residents ― single-family and multifamily owners — but Carillon’s attached home owners are given exterior home maintenance services as well. These buyers appreciate not having to clean their own gutters or maintain their siding, especially when they are away for extended periods of time.

Multifamily housing remains a popular choice among active adults who are single, too, especially those who are divorced or widowed, for many of these same reasons.

In addition, many live on fixed incomes, don’t have second homes, are more price-conscious and want to maximize the home they have. The lower base price for an attached home makes it possible for them to invest in upgrades.

Security is another selling point, particularly for single residents who may feel vulnerable. Having neighbors close by provides a more secure feeling.

Buyers, Builders Benefit From Higher Densities

In the Chicago suburbs, land is becoming scarce in close-in communities where people want to live. The smaller infill parcels dictate multifamily housing and higher density. This enables buyers to find new housing in a convenient location, while builders get enough volume to make it worth the effort.

Many builders might question whether municipalities will allow attached housing in the first place. Generally, this is a concern for standard communities since, more than ever, municipalities are trending toward larger lot sizes.

However, active adult age-qualified communities are generally welcome because they have virtually no impact on school or park districts.

Another builder benefit is flexibility, if attached homes are designed properly. For example, in our Carillon quad product, all house plans are compatible with every other plan in the quad. All four units in one building can be the same plan, each can be different or there can be a combination.

This gives the sales staff greater flexibility and eliminates the “problem floor plan” scenario stemming from the need to spec out two or more units in many cases.

Avoiding Potential Pitfalls

Three years ago, Cambridge Homes conducted focus groups in with prospective active adult buyers who lived in single-family homes. They voiced a few concerns about attached housing — and a few possible solutions:

  • Loss of privacy. 
    The most effective way to overcome this objection is to focus on the community’s lifestyle and social attributes. Design homes to minimize this concern. For example, Cambridge Homes’ Getaway series town homes (built in U-shaped configurations) include separate entries and individual outdoor spaces for more privacy. The Bayside series quads are designed as end units featuring private entrances at the corners and limited unit-to-unit attachment since homes are primarily attached at the garages.

  • No longer able to garden.
    Town homes can be designed to accommodate outside gardens closer to the homes. This was one of the special features in the Getaway series. Additionally, builders can allocate space for community gardens or “victory” gardens. In Carillon Lakes, buyers can lease a portion of the victory garden for personal use. Residents also can join a community gardening club.

  • Lack of storage.
    The Getaway series homes are designed with plenty of interior storage space, even for buyers who don’t opt for basements. Oversized two-car garages provide extra storage space.

  • Too small to entertain. 
    Although attached homes generally are smaller than their detached counterparts, builders can maximize areas commonly designated for entertaining. An example is the great room concept in which the dining and living areas are combined into one large, open space. Builders also can sell, as upgrades, expandable flex spaces such as sunrooms, enlarged family rooms and basements that can be finished for an additional level of living space.


Focus group participants also were concerned that kitchens and bedrooms would be too small.

Builders must understand their buyers’ priorities and how to design homes to meet their needs. Conduct focus groups early in the process before the site plan and product development processes get underway. Incorporate your buyers’ wants and needs to ensure they get what they want, rather than what you think they want.

Other Product Considerations

Active adults in the focus groups also discussed why they wanted to move from their existing homes. Common reasons included:

  • The house and yard are too big and hard to maintain
  • Loss of a spouse
  • Health issues or concerns about future health issues
  • Desire to trade a two-story home for a single-level home
  • Desire to move back from the Sun Belt to be closer to children and grandchildren
  • Need for a more secure living environment
  • Most of their friends are gone and current neighbors have young kids that they cannot connect with
  • And snow removal (“my back is killing me!”)


Active adult buyers like open floor plans with plenty of light. Because visual abilities decrease by 24% by age 60, this is a real concern, but a solution can be achieved by designing attached housing with this in mind.

For example, four-unit buildings featuring all end units are ideally suited for bringing light into the homes. Cambridge Homes designs end units with many windows and the interior units include double skylights to bring in more light.

The focus groups also mentioned the need for a double-master bedroom option ― when snoring is a problem.

Next-door noise is another objection with attached housing. Builders can overcome this problem with extra insulation, including a shaft liner, between common walls that can virtually eliminate sound transfer between units. The shaft liner panels also impede fire transfer between units by two hours. The system we use is referenced by the Underwriters Laboratories as design number U336.

Energy Star-rated homes, though not mentioned by our focus groups, can be a tremendous selling point as well. Whatever combinations of energy-saving components you use to achieve an Energy Star rating, active adult buyers will appreciate lower utility bills and a more comfortable living environment.

A Good Site Plan Will Motivate Prospects, Too

While it is important to have good attached product, it is just as pivotal to excite and motivate your prospects with a site plan where the design and amenities complement the environment.

For instance, Carillon Lakes’ amenities were designed to take advantage of open space around the lakes and natural conservation areas. All residents can enjoy the “premium” space, instead of only the few that can afford to back up to an open space or lake.

 A three-hole golf facility also adds to a community’s open feel and the builder can offer a small golf course without burdening the entire community with the cost of maintaining a nine- or 18-hole course.

Attached housing for age-qualified communities not only promotes a more enriched, diversified community setting, it is an easier sell with buyers who want maintenance-free living with a smaller price tag. It’s a win-win situation for active adult buyers and builders alike.  

David Smith is vice president of marketing and product development with Cambridge Homes, a Chicago-area builder and division of D.R. Horton, Inc. Under Smith’s guidance, Cambridge introduced a number of innovative new home features and programs, including Energy Star certification. He is also credited with standardizing Cambridge’s vast product lines for optimum efficiencies and for positioning the company as a leader in consumer and market research. Smith currently serves on the education committee of the NAHB 50+ Housing Council. For more information, e-mail Smith, or call him at 847-362-9100.

This article first appeared in 50+ Housing Magazine.



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 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.



Tour Top 50+ Communities in New Orleans

Sign up for the active adult housing tour at the 2008 Boomers and Beyond: 50+ Housing Symposium in New Orleans, May 19-21.

The symposium will also feature the most innovative new community designs during the Best of 50+ Housing Awards gala.

Click here to be notified when registration opens.

 


 

Help Rebuild New Orleans at 50+ Housing Symposium

Building for Boomers & Beyond: 50+ Housing Symposium is partnering with Rebuilding Together New Orleans on a special two-day community service project so symposium attendees can help rehabilitate homes in New Orleans that were severely damaged by Hurricane Katrina.

Two pre-conference days have been reserved for this event. Attendees are encouraged to volunteer for this special rebuilding project.

PATH Releases Top 10 Energy-Efficient Remodeling Projects

 

 

PATH
, a public-private partnership for advancing housing technology, recently released its annual recommendations on the top remodeling technologies to make existing homes more durable, stronger and more resource efficient.

Each of the PATH Remodeling Top 10 technologies chosen is rated on affordability, energy efficiency, ease of installation, quality and durability, environmental performance and safety.

The top 10 technologies include:

  1. Air Sealing — Four alternatives to conventional fiberglass insulation — non-fiberglass batts, sprayed foam insulation, sprayed fiber insulation and blown or foamed through a membrane — are recommended because they improve the thermal resistance of exterior walls.

  2. Smartvent Ventilation/Ventilation Control System — This new mechanical ventilator provides an excellent compromise for deciding whether or not crawlspace should be ventilated, especially in humid climates. The system measures the moisture content of outdoor and crawlspace air and only provides ventilation when the outdoor air is drier than crawlspace air. The system prevents moisture from being added to the crawlspace due to ventilation.

  3. HVAC Sizing ― Right-Sized HVAC — The Air Conditioning Contractors of America (ACCA) guidelines for sizing HVAC equipment, “ACCA Manual J Residential Load Calculation,” enables contractors to estimate heating and air conditioning loads more accurately so they can install properly-sized HVAC systems that ensure energy efficiency and optimum performance.

  4. High Efficiency Toilets — Designed for water conservation, high efficiency toilets have been defined by the plumbing industry and the Environmental Protection Agency as those that use an average of 20% less water per flush than the industry standard of 1.6 gallons.

    A high efficiency unit toilet can save up to 8,760 gallons of water each year for a family of four with 24 average daily flushes. Types of high-efficiency toilets include gravity-fed, single-flush; dual-flush; pressure-assist; and power-assist toilets.

  5. Compact Fluorescent Lighting — Compact fluorescent lamps (CFL), simply miniature versions of full-size fluorescent lights, are up to four times more efficient (using 50% to 80% less energy) and last up to 10 times longer than incandescent bulbs. A 22-watt CFL has about the same light output as a 100-watt incandescent. In addition, the warm tones of newer compact fluorescent lighting make it almost indistinguishable from incandescent lighting.

    To optimize the value of CFLs, it is best to use them in areas that are lit for relatively extended periods of time (15 minutes or longer). This could include outdoor fixtures, the kitchen, family room and bedroom.

  6. High Performance Windows/Storm Windows — Window technology has evolved over the years to the point where windows can be selected not only for their aesthetic qualities, but also for their performance abilities. Windows can be made from laminated glass that resists impact from flying debris in hurricanes, have special coatings that control the amount of heat gain and loss, or can prevent water spots and dirt accumulation.

  7. Wireless Lighting, Thermostats and Other Controls — Derived from commercial construction but now available in homes, these controls can be set on timers or using a variety of sensors — temperature, occupancy, light detection and more ― with wireless systems to increase home efficiency without sacrificing home owner comfort.

  8. Solar Hot Water — Solar water heaters come in a variety of configurations to meet domestic hot water needs. Each differs in design, cost, performance and level of complexity. Most systems have back-up water heating such as electricity or gas.

    There are two main types of systems — passive and forced circulation — and within each type there are several configurations.

    Solar water heaters can help save on water heating costs by reducing the amount of gas and electricity needed to heat water. By using sunlight to heat water instead of a combustible source or power plant-produced electricity, less pollution is being introduced into the environment.

  9. Recycled/Renewable Flooring — Two types of environmentally-conscious flooring lead the market ― recycled flooring from old structures and renewable flooring from fast-growing trees, such as bamboo.

    Recycled wood flooring is typically very durable due to its tight grain. Creating wood floors from old lumber diverts the valuable wood from landfills and reduces the need for fabricating new wood flooring products.

    Properly installed and maintained floors made of sustainable species, which grow more quickly than hardwoods and softwoods, will last as long as hardwood flooring and can be as cost competitive.

  10. Tubular Skylights — Tubular skylights use the sun for lighting interiors without the drawbacks associated with conventional skylights. They are generally easier to install than typical skylights and, from the home's interior, resemble conventional lighting fixtures.

    Tubular skylights have a roof-mounted light collector typically consisting of an acrylic lens set in a metal frame. Most have a reflective sun scoop in the rooftop assembly that directs sunlight into a metal or plastic tube that has a highly reflective interior coating.

    Some of the systems available cost less than conventional lighting and most cost less than conventional skylights.


For more information, visit the PATH Web site.

Few Boomers, Communities Prepared for Aging

Less than half the nation’s communities are prepared for the more than 72 million seniors who will be living in the United States by 2030 and who will be healthier, wealthier and more active than their predecessors, according to panelists at the Remodeling Show in Las Vegas last  month.

In addition, the panelists said, only about 16% of the home owners in this aging population group have made the home modifications needed to allow them to age in place. 

Panelists from AARP, NAHB Remodelers and the American Occupational Therapists Association (AOTA), a partnership formed to help this population age, discussed livable communities and aging in place.

Seniors want independence, choice and access to public services and public spaces that promote independence, said Michael O’Neal, of AARP’s Livable Communities program.

“Livable communities offers affordable and appropriate housing, supportive services and adequate mobility options,” said O’Neal. “Together, these will facilitate personal independence and the engagement of residents in social and civic life.”

As people age, their medical conditions change and they undergo psychosocial changes as well — such as loss of control or privacy and fear of falling, said Dr. Carla Chase, of the occupational therapy college department at Western Michigan University.

Changes in the environment, through remodeling, can help seniors cope with a variety of issues and make their community more livable, she said.

“Aging-in-place clients are looking for great design and safe and comfortable surroundings,” said Bill Owens, CGR, CAPS, from Owens Construction in Powell, Ohio. “It is a hot topic and it can be profitable.”

For remodelers, the partnership between AARP, NAHB Remodelers and AOTA was formed to:

  • Create consumer demand for remodelers who understand aging-in-place concepts.

  • Understand the benefits of partnering with occupational therapists to better meet the needs of home owners who want to age in place.

  • Learn the marketing language that resonates with seniors who are considering aging-in-place remodeling.

  • Learn the importance of “individualized” customization in the aging-in-place market.


More information about aging-in-place, CAPS remodelers and slides from the discussion are available online.



Get the Advantage at IBS

Take advantage of the pre-show courses offered Feb. 9-12 at the 2008 International Builders’ Show in Orlando.

Pre-show courses are intensive, day-long or multiple-day programs designed to provide in-depth knowledge of a particular topic. Some of the courses may count towards an NAHB designation.

Courses for 2008 include “Green Building for Building Professionals,” “Business Accounting and Job Cost” and more.

For more information on pre-show courses, contact The NAHB University of Housing’s Office of the Registrar at 800-368-5242 x8338, or e-mail pre-showeducation@nahb.com.

NAHB Helps OSHA Understand Home Building, Safety Hazards

 

 

OSHA's Edwin Foulke, Jr., left, and John Rose of NVHomes

Key labor and safety officials from the Occupational Safety and Health Administration (OSHA) met with NAHB staff members during an NAHB training session in Laurel, Md. last week to discuss construction safety issues that impact home builders and to view work practices used on residential construction job sites..

The Nov. 1 site visit by Edwin Foulke, Jr., OSHA assistant secretary of labor for occupational safety and health, and Steve Witt, the OSHA director of construction, was part of the “Building a House” training that was developed under the NAHB-OSHA Alliance agreement.

The one-day program provides OSHA staff members with basic knowledge of the home building process and the safety hazards found in residential construction.

Maryland Occupational Safety and Health (MOSH) staff participated in the training, which was held at the MOSH Training & Education Center and at a Ryan Homes/NV Homes community construction site. 

Host a Free Fall Protection Training Seminar

NAHB and the NAHB Research Center have developed a fall protection training seminar for builders, trade contractors, supervisors and workers that is available free to NAHB members and their companies.

The program focuses on identifying fall hazards in residential construction, and provides student attendees with an understanding of OSHA fall protection regulations and safe work practices to prevent fall-related injuries and deaths.

Training is conducted in English. Training in Spanish is available upon request.

Each participant receives a copy of the NAHB-OSHA Fall Protection Handbook, English-Spanish and the NAHB Fall Protection Video, English-Spanish.

Both resources are also be purchased from BuilderBooks.com at www.builderbooks.com/safety.

NAHB members can apply to host a Fall Protection Training Seminar. To find out more about hosting a seminar, click here.

For more information about NAHB’s Fall Protection Training Seminars, e-mail Lindsay Cather at NAHB, call her at 800-368-5242 x8163 or visit the NAHB Web site: www.nahb.org/fallprotectiontraining.

 

 

Edwin Foulke, Jr., left



Boost Job Site Safety With Fall Protection Training Products

In an effort to increase job site safety and reduce the chance of job-related accidents, NAHB has produced the “Fall Protection Video, English-Spanish and “NAHB-OSHA Fall Protection Handbook, English-Spanish.”

Both are available through BuilderBooks.com.

The 30-minute “Fall Protection Video, English-Spanish” can be used by builders to train workers to use safe work practices that eliminate fall hazards and comply with OSHA fall-protection standards in either English or Spanish.

The “NAHB-OSHA Fall Protection Handbook, English-Spanish” provides guidelines for creating a written fall-protection plan and identifying safe work practices that can prevent costly accidents and injuries. Written with clear text, photographs and illustrations, the book serves as a user-friendly resource for promoting safety on any job site.

To purchase the handbook and video online, click here, or call 800-223-2665.

Tickets Now Available for The Nationals 2008 Gala at IBS

Tickets are available for The Nationals 2008 gala, the housing industry’s largest and most prestigious competition honoring new-home sales and marketing professionals and communities.

Hosted by the National Sales and Marketing Council (NSMC), the gala will be held at the Rosen Shingle Creek Resort in Orlando on Feb. 13 during the 2008 International Builders’ Show.  

"The Nationals celebrates innovation, creativity and drive," said Ross Robbins, MIRM, CMP, a Colorado-based consultant and chairman of The Nationals 2008. "NAHB's dedication to honoring the achievements of new home sales and marketing professionals has created a legacy of excellence that we can be proud of.”

Begun in 1982 as the Institute of Residential Marketing (MIRM) Awards, this year The Nationals will honor excellence in 57 categories of residential design, marketing, interior merchandising, advertising, Web site design and individual and team sales achievement. In addition, The Nationals honor the top local sales and marketing councils across the country.

More than 1,300 entries are being considered for this year’s competition. Gold Award winners in each category will be announced at the gala, which is expected to have more than 1,000 attendees.

To Purchase Tickets

Individual tickets are $175 each for NSMC members and $195 for non-members. Tables of 10 also are available for $1,750 and $1,950, respectively.

Individual and group tickets may be purchased online by clicking here; e-mailing Lisa Parrish or calling her at 800-658-2751; or by visiting The Nationals Web site at www.thenationals.com.



Sharpen Your Sales Skills

Earning the Certified New Home Sales Professional (CSP) designation can give you the edge you need in today’s market.

Ask current CSPs how the designation has benefited their careers on the "Ask a CSP" page. These graduates have volunteered to answer questions, provide guidance and help navigate the CSP program.

For more information about NAHB designations, visit www.nahb.org/designations.

Register for Free Sales and Marketing Audio Conference

Industry veterans who have been through market shifts in their careers will discuss what sales and marketing changes should be made in order to thrive in today’s market during an upcoming audio conference that is free to NAHB members.

The hour-long teleconference, “Ramp Up Your Sales & Marketing in a Changing Market,” will begin at 2 p.m. Wednesday, Dec. 12.

A panel of sales and marketing experts will discuss successful techniques that are working for them.

The teleconference will include a 40-minute presentation by the panel, followed by a 20-minute question-and-answer session.

Members are encouraged to e-mail questions to the panel in advance to Michael Copp at NAHB.

Teleconference topics include the following:

  • Minimizing objections: Understanding buyer needs, wants, abilities and fears
  • Being innovative and offering incentives to buyers and employees
  • Assessing your sales team
  • Strategizing product mix — shopping the competition
  • Reducing inventory
  • Cutting costs
  • Exploring legal means of collections
  • Renegotiating credit
  • Mortgage credit options for buyers
  • Contingency contracts
  • Financing tips
  • Maximizing vendor, lender and supplier relationships


Speakers include Bonnie Alfriend Fellow, MIRM, Alfriend and Associates, Pebble Beach, Calif.; Daniel Levitan Fellow, MIRM, Levitan & Associates, Fort Lauderdale, Fla.; and Ross Robbins, MIRM, Lee Evans Group/Shinn Consulting, Inc., Littleton, Colo.

To Register

Free online registration is available by clicking here. For more information, read the teleconference flyer by clicking here.

HBAs and local sales and marketing councils are encouraged to host the audio conference call at their HBA.

For more information, e-mail Michael Copp at NAHB, or call him at 800-368-5242 x8340.

The conference is co-hosted by the National Sales and Marketing Council and Biztools™, NAHB's business management comprehensive resource on the NAHB Web site.



Survive Changing Markets

Bill Webb, MIRM, shows you how in “Sweet Success in New Home Sales,” available through BuilderBooks.com.

This book provides powerful techniques for selling more homes and making more money in leaner times. "Sweet Success in New Home Sales" lays out the proven approaches for crafting and delivering sales excellence.

To view or purchase this publication online, click here, or call 800-223-2665.

 



Get the Marketing Edge With IRM

Meet the current market’s sales and marketing challenges with Institute of Residential Marketing (IRM) classes.

Courses include “The Challenge of New Home Sales Management,” “Understanding Housing Markets and Consumers,” “Marketing Strategies, Plans and Budgets” and more. The courses are part of the credits needed to earn the MIRM designation, the top-level achievement for professionals in new home marketing. 

Find upcoming IRM classes by clicking here.

Five Ways to Stand Apart From Other Custom Builders

Prospective home buyers need to understand what makes you better than and different from other builders. When they ask, “Why should I build with you?” you and your staff need to be ready to provide the correct 10-second answer.

If you can’t answer quickly, or if your answer is, “We deliver a good value” or “We have a great reputation,” then you missed your opportunity to stand above the rest.

Successful builders are able to convey what differentiates them from their competition in all their initial customer contacts. This includes their marketing materials, phone calls and face-to-face meetings.

With all these contacts, you should be providing your prospective home buyers with tangible evidence of why building with you will be better suited to meet their needs.

Following are five important ways to differentiate your business:

  1. Clearly communicate what kind of builder you are.
    Custom home builders should clearly specify whether they offer floor plan options, clients bring their own floor plans or the buyer and builder work on blueprints together.

    Prospects need to understand your selection process ― whether it is simplified to options, customizable to the home buyer wishes or a combination of recommended options and custom features.

    Also, prospects need to know if they will be primarily dealing with you, the owner or specialized staff members.

  2. Build unique homes.
    Prospects want a builder who builds the home they envision.

    If someone wants a rustic or log home, then they will pick a builder who specializes in that style of home.

    Ensure that your prospects know your specialty, whether it is cottage, stone modern or any other type.

  3. Provide evidence of an enjoyable home buyer experience.
    Claiming a great experience is not enough. You need to provide real proof.

    Offer literature or documentation that clearly explains home buyer involvement and your construction process.

    Clearly show home buyers how they will be making selections — whether it is with a designer, at a design center or online.

  4. Provide proof of being on time and within budget.
    Being on time and within budget is extremely important to your home buyers.

    The first step to assuring them that this is how you will build their home is to create a process of communicating this information to them at pre-defined times throughout the building process.

    The second step is to outline how you will keep them informed. For example, providing schedule and budget information every Monday via e-mail or online will set you above others your prospect may consider.

  5. Provide additional, value-added resources.
    Beyond just building a home, there are services you can provide that help your home buyers.

    For example, include a Realtor® listing of their prior home, purchase their prior home if it isn't sold within six months or supply a relocation package.

    Assisting home buyers with financing is another great service that can be as simple as working closely with a mortgage professional, or more detailed like providing in-house financing plans.


Being like everybody else is crowded. Set yourself apart to succeed.

Andy Elsbury is the founder of Indianapolis-based SelectionWare, which provides consulting services and solutions for home builders to improve the building process. For more information, e-mail Elsbury, call him at 866-585-9222, or visit the SelectionWare Web site at www.SelectionWare.com.

 


 

Deliver Exceptional Customer Service

Take the "Profitable Business Through Quality Practices" course from The NAHB University of Housing and learn key strategies for providing a quality building/remodeling experience for home owners.

Topics include meeting the quality challenge with customers, with competitors and within your company.

To find upcoming courses, click here, or call 800-368-5242 x8154 for more information

 

Enter Pillars of Industry Awards Competition by Nov. 9

 

 

The Setai, a Miami Beach condo-hotel, was named "Best Mixed-Use Community" — and "Project of the Year" — in the 2006 Pillars of the Industry Awards competition.

Entries are open for the 2008 Pillars of the Industry Awards competition honoring excellence in apartment and condominium design and development — including the best mixed-use community — as well as leadership in marketing and property management.

Apartment owners and developers, property managers, architects, interior designers and others involved in the multifamily housing industry are invited to enter.

The application deadline is Nov. 9. Entry notebooks are due Dec. 7.

The Pillars of the Industry Awards program is the largest and most prestigious of its kind, and both housing professionals and the media look to the awards as a showcase of future trends and innovation.

The awards recognize superior achievement in three areas: building, marketing and individual excellence, including “Multifamily Development Firm of the Year” and “Best Multifamily Community of the Year.”

Award recipients will be honored at a gala ceremony during NAHB Multifamily’s Pillars of the Industry Conference at the Broadmoor Colorado Springs, Colo. on April 2. The conference is the premier educational and networking event for multifamily developers, owners, managers and lenders.

For complete details, including eligibility requirements and application forms, go to www.nahb.org/pillarsawards, e-mail multifamily@nahb.com, or call 800-368-5242 x8215.

To see a list of last year's winners, available on the NAHB Web site, click here.



Get Informed, Make Connections at Pillars Conference

Attend the 2008 Multifamily Pillars of the Industry Conference & Awards Gala, April 1-3, and find out what’s next in the rapidly changing multifamily market from top economists and multifamily market experts.

Network with the top professionals in the field and find out how they’re navigating the current market. Walk away with new contacts and fresh perspectives.

For more information, visit www.nahb.org/pillarsconference.

Education Calendar

Nov. 8-10

State and Local Government Affairs Conference

Austin, Texas

Dec. 11

Northwest Builders Show

Bellevue, Wash.

2008

 

 

Feb. 13-16

International Builders' Show

Orlando, Fla.

April 6-9

Log Home Council President's Tour

Appleton, Wis.

May 11-13

National Green Building Conference

New Orleans, La.

May 19-21

Building for Boomers & Beyond: 50+ Housing Symposium

New Orleans, La.

Learn More About Upcoming Conferences and Designations

Interested in attending a University of Housing conference or learning more about NAHB designation programs? Visit www.nahb.org/notifyme, and sign up to receive more information.



Free NAHB Kit Gives Builders Back-to-Basics Tips in Navigate the Slowdown

What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn.

To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here.

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.

New LEED Certification for Development Found Wanting

As NAHB and the International Code Council near completion of the nation’s first consensus-based standard for residential development, home construction and remodeling, the U.S. Green Building Council (USGBC), the Congress for the New Urbanism and the Natural Resources Defense Council are preparing new neighborhood certification based on green building, new urbanism and smart growth principles.

Unfortunately, according to an analysis by NAHB Land Development, the rating system’s complex application process and its bias against suburban and exurban development will make it difficult for home builders to receive the certification.

Now available as a pilot program, “LEED for Neighborhood Development” (LEED-ND) will use a rating system similar to those used for other USGB green building certification.

LEED-ND emphasizes smart growth while still incorporating the most important green development practices as defined by USGBC. Its scope was guided by the Smart Growth Network's 10 principles of smart growth, including density, proximity to transit, mixed use, mixed housing type and pedestrian- and bicycle-friendly design.

Certification criteria are categorized under Smart Location and Linkage, Neighborhood Pattern and Design, Green Construction and Technology, and Innovation and Design Process. Three of these groups are further broken down into nine prerequisites that a project must meet even to be considered for scoring, the NAHB study found.

Fifty-six credits are awarded in the four main groups through which the bulk of the projects are scored overall. For instance, the Smart Location and Linkage group includes six prerequisites applicants must meet and provides 11 possible credits, including credits for “Steep Slope Protection” and “Bicycle Network.”

Each of the 56 credit areas requires multiple submissions in three stages, an extremely elaborate submittal process that takes 168 steps to complete the application, not counting the dozen of steps needed to certify that the applicants meet the prerequisites.

“It is safe to say that most applicants in most instances would have to go through more than 200 steps to complete the certification application process,” said NAHB land use planner Edward Tombari.

A project that scores 50 points overall would receive a silver rating, 60 points would rate a gold and 80 would rate a platinum.

Based on NAHB’s experience with smart growth and new urbanism design principles, a majority of the projects being built by developers today that incorporate Traditional Neighborhood Design (TND) principles might be able to achieve some lower-level LEED recognition, Tombari said.

However, while the number of communities using TND principles is rising, the vast majority do not because TND favors higher density and most new development occurs in suburban and exurban greenfield locations, he pointed out.

“While this excludes much new development from being eligible to meet the criteria being established by LEED-ND, NAHB believes new development affords many opportunities for implementing green development principles,” Tombari said.

Of the 56 credits in LEED-ND, criteria for 18 may not be realistic, he said, including penalties for cul-de-sacs and promoting an unproven connection between health and “walkability.”

Additionally, he said, requirements in several categories don’t have much relevance to environmentalism, smart growth or urban design — such as penalizing an applicant for developing a gated community. “Over all, LEED-ND appears to be making some sociological judgments, and it is questionable whether these belong in a rating system,” he said.

NAHB standards, by comparison, have been designed to be relatively simple, with one chapter covering site planning and a second dealing with individual lot development.

The NAHB standards will provide builders and developers the flexibility needed to ensure wide-scale implementation of green development measures in all kinds of communities: conventional, TND-based and more.

“With the consensus-based approach, these standards will also reflect the values and needs of a wide spectrum of industries and agencies invested with the responsibility of building and maintaining the built environment,” Tombari said.

For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132. 



Take the Lead on Green Building

Register now for The 2008 National Green Building Conference, held May 11-13 in New Orleans. Get contacts, tools and ideas that are good for both the environment and your bottom line.

The National Green Building Conference is the only national conference targeted to green building for the mainstream residential building industry. Network with designers and suppliers, attend exceptional education sessions and develop the skills you need for profitable green building. 

For information and to register, visit www.nahb.org/greenbuildingconference, call 800-368-5242 x8338, or e-mail registrar@nahb.com.



‘Building Greener Neighborhoods’ Available at BuilderBooks.com

Building Greener Neighborhoods,” available through Digital Delivery at BuilderBooks.com, shows those involved in building new communities the advantages and rewards of saving, planting and transplanting more trees in their developments.

The examples are drawn from decades of experience of land developers, home builders and urban foresters. 

To download this publication in a PDF format, click here, or call 800-223-2665.

Connecticut Green Builder Seeks to Keep Costs Low

State political leaders attended the groundbreaking last Thursday for a new green home in Torrington built by T & M Construction and NAHB Connecticut State Representative Greg Ugalde.

The home will be rated using the online scoring tool now being piloted by the NAHB National Green Building Program. The program debuts Feb. 14 at the International Builders’ Show in Orlando.

Armed with shovels, Torrington Mayor Ryan Bingham, State Senator Andrew Roraback, leaders from the local association of Realtors® and officials from the local and state home builders associations joined Ugalde in breaking ground on the first green home in the 20-unit subdivision.

Ugalde said he was delighted with the interest being shown in the project and with the new NAHB National Green Building Program, especially as his state works to create a balance between environmental responsibility and the rising cost of housing.

“We are having some very in-depth talks about affordability and workforce housing, and we have to find a way, as builders and developers, to make it mesh with green building, or the costs are going to get out of control,” he said.

“That’s why we have the Realtors® involved in this conversation — we need their experience to help us find the balance — to talk to purchasers and understand what they would like to see in their homes and what they would be willing to pay for,” Ugalde said.

“The online certification tool should help us keep our costs low,” he continued.  “Before we even get started with building, we have permit fees and sewer fees — we need to avoid too many administrative costs so we can put more money into the green products themselves.”

The 2,555-square-foot home is sited to take advantage of passive solar heating and daylighting, with multiple windows on the south side and fewer on the north. Tubular skylights will also help the home owner use less electric lights in the daytime.

Ugalde will use low-VOC paints to improve indoor air quality and install bamboo flooring, Energy Star®-rated appliances and lighting, tankless water heaters and a high-efficiency HVAC system with direct-vent heating. The energy-efficient windows are framed with recycled vinyl.

Representatives from some of the companies supplying the products also participated in the groundbreaking, which attracted a crowd of neighbors and members of the media to the worksite, which was dotted with bright green balloons.

The pilot programs are the start of a great new green movement for the home building industry, Ugalde said.

“We hope to help perfect this online certification system,” he said. “A lot of people in this state will come to rely on it.”

For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132.



Take the Lead on Green Building

Register now for The 2008 National Green Building Conference, held May 11-13 in New Orleans. Get contacts, tools and ideas that are good for both the environment and your bottom line.

The National Green Building Conference is the only national conference targeted to green building for the mainstream residential building industry. Network with designers and suppliers, attend exceptional education sessions and develop the skills you need for profitable green building. 

For information and to register, visit www.nahb.org/greenbuildingconference, call 800-368-5242 x8338, or e-mail registrar@nahb.com.



‘Building Greener Neighborhoods’ Available at BuilderBooks.com

Building Greener Neighborhoods,” available through Digital Delivery at BuilderBooks.com, shows those involved in building new communities the advantages and rewards of saving, planting and transplanting more trees in their developments.

The examples are drawn from decades of experience of land developers, home builders and urban foresters. 

To download this publication in a PDF format, click here, or call 800-223-2665.

Energy-Efficiency Concerns Drive Demand for Green Homes

A new NAHB survey confirms that a desire for greater energy efficiency is driving consumers to choose green-built homes.

"Green building is the home buyer's best defense against soaring energy costs," said NAHB President Brian Catalde. "But it's up to the nation's home builders to make sure the cure is not more expensive than the problem itself. The NAHB National Green Building Program paves the way for authentic yet cost-effective green building," he said.

The voluntary program, based on the three-year-old NAHB Model Green Home Building Guidelines, is set to be launched on Feb. 14 at the International Builders' Show in Orlando.

"New technologies, advances in building science and materials for insulation, windows and other components mean that homes are significantly more energy-efficient than they used to be," Catalde said.  "Still, it's time to take that next step. The NAHB National Green Building Program does that — and more."

The survey was conducted during the week of Oct. 15 by national polling firm Public Opinion Strategies.

When 800 registered voters were given a list of motives for either purchasing a new green home or remodeling their current home to make it greener, nearly two-thirds (64%) identified "reduced energy costs" as an important factor, followed by "because it would be healthier,” 55% and it's "the right thing to do for the environment," 49%.

"That's a pretty strong showing for altruism," said Neil Newhouse, partner with Public Opinion Strategies. "But cost is the overriding concern. That's something that all green players — builders, regulators and advocates — need to keep topmost in their minds."

"A big reason why home buyers choose energy efficiency as a motivator is because heating and air conditioning bills can really empty our wallets," said Catalde. "For the same reason, affordability is a prime motivation for the NAHB National Green Building Program. Our builders want to provide credible, cost-effective green building, so more home buyers' money can go to green features, not green program fees."

The NAHB National Green Building program is being launched in cooperation with the NAHB Research Center, the industry's leading building science technology testing institution working to make homes more durable, efficient and affordable.

To be certified under the NAHB program, homes must meet energy-efficiency levels that are at least equivalent to Energy Star®, the federal Environmental Protection Agency program that has enjoyed great success in the marketplace. Since 2000, 750,000 homes have earned the Energy Star label, indicating that they are at least 15% more efficient than required by current energy codes.

However, said Catalde, energy use is not the whole picture. "We need to think about water efficiency, resource efficiency and indoor environmental quality. We need to build green."

"When a green home doesn't look or feel significantly different from one built using more traditional construction methods, when builders have the tools and resources to build them without significant materials or labor cost increases and when consumers readily accept the finished product, then green has arrived — and that's why the NAHB National Green Building Program will bring green to the mainstream," Catalde said.

The NAHB National Green Building program will link dozens of successful state and local voluntary green building programs with a national online scoring tool for builders and verifiers and extensive educational resources.

"A flexible, regionally appropriate approach is preferable to a unilateral approach that does not take into account local issues, architecture or geographic differences," Catalde said. "This program opens up the opportunity for all our membership to build green."

For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132.



Take the Lead on Green Building

Register now for The 2008 National Green Building Conference, held May 11-13 in New Orleans. Get contacts, tools and ideas that are good for both the environment and your bottom line.

The National Green Building Conference is the only national conference targeted to green building for the mainstream residential building industry. Network with designers and suppliers, attend exceptional education sessions and develop the skills you need for profitable green building. 

For information and to register, visit www.nahb.org/greenbuildingconference, call 800-368-5242 x8338, or e-mail registrar@nahb.com.



‘Building Greener Neighborhoods’ Available at BuilderBooks.com

Building Greener Neighborhoods,” available through Digital Delivery at BuilderBooks.com, shows those involved in building new communities the advantages and rewards of saving, planting and transplanting more trees in their developments.

The examples are drawn from decades of experience of land developers, home builders and urban foresters. 

To download this publication in a PDF format, click here, or call 800-223-2665.

Entries Sought for High-Performance Building Awards

The Sustainable Building Industry Council (SBIC) is now soliciting entries for its 2007 Beyond Green™ High Performance Building Awards.

Entering into their seventh year, the awards recognize initiatives that shape, inform and catalyze the high-performance building market and the real-world application of high performance construction practices.

Open to all, the program offers two entry categories: “High Performance Buildings,” including institutional, commercial, government and residential buildings constructed within the last three years; and “High Performance Initiatives,” which can include policy/program initiatives, research, product development and educational or consumer awareness efforts.

Appropriate applicants for the competition include trade associations, researchers, architects, engineers, consultants, universities and educators, builders, public and private building owners, product manufacturers and suppliers, marketing and media experts and utilities.

Entries must be submitted no later than Nov. 30, and entry fees range from $200 to $400.

The top award winners will be invited to speak at the National Building Museum in Washington, D.C. on Jan. 16 in conjunction with a lecture series sponsored by the U.S. Department of Energy. The day’s activities will include an awards presentation ceremony and reception.

Winners will be announced in SBIC’s member newsletter, Buildings Inside & Out, and their projects will be published as case studies on the SBIC Web site and on the Whole Building Design Guide Web site.

SBIC has been a national leader in defining the whole building approach to design since its inception in 1980. This approach, which results in high-performance buildings, emphasizes sustainability as a prominent design objective.

Sponsors for the awards program include BASF, Skanska, BOMA, CertainTeed, eco-structure magazine and the Whole Building Design Guide.



Take the Lead on Green Building

Register now for The 2008 National Green Building Conference, held May 11-13 in New Orleans. Get contacts, tools and ideas that are good for both the environment and your bottom line.

The National Green Building Conference is the only national conference targeted to green building for the mainstream residential building industry. Network with designers and suppliers, attend exceptional education sessions and develop the skills you need for profitable green building. 

For information and to register, visit www.nahb.org/greenbuildingconference, call 800-368-5242 x8338, or e-mail registrar@nahb.com.



‘Building Greener Neighborhoods’ Available at BuilderBooks.com

Building Greener Neighborhoods,” available through Digital Delivery at BuilderBooks.com, shows those involved in building new communities the advantages and rewards of saving, planting and transplanting more trees in their developments.

The examples are drawn from decades of experience of land developers, home builders and urban foresters. 

To download this publication in a PDF format, click here, or call 800-223-2665.

California HBAs Help Fire-Damaged Communities

The home builders associations in Southern California have already begun providing aid and services to the victims of the wildfires that swept the region, displaced hundreds of thousands of residents, caused more than $1 billion in property damage and destroyed more than 1,600 homes last month.

Within days of the fires, the Building Industry Association of San Diego County posted a list of rebuilding services and related information available from its membership on its Web site at www.biasandiego.org.

“We offered to coordinate these services on behalf of community resource groups that have been inundated with contractor inquiries and needed to focus on the immediate recovery tasks prior to rebuilding concerns,” said the association’s CEO, Paul Tryon.

The companies on the list have indicated their desire to help and are geared towards the type of construction and services needed at this time, he said.

“The response has been huge, nearly 80 companies registered on the site in one day,” said Donna Morafcik, the HBA’s staff vice president of communications. “We fully expect hundreds more to register over the next few weeks.”

On the site, the association also provides a step-by-step “Rebuilding Guide,” advice on avoiding scam contractors, relevant California laws on rebuilding after disasters and a statement from the California Building Industry Association on the wildfires.

Donations are being accepted through the association’s Web site to its Builders Helping Neighbors Fund, which was established following wildfires in 2003. Proceeds raised will be donated to the community resource centers in the affected communities.

Members Donate Time, Services

Members of the Building Industry Association of Orange County have already contributed building plan approvals, residential architectural and electrical help, and entitlement consulting after the BIA issued a critical “call to action” to its members, asking them to assist families in rebuilding their homes with donations of time, services or products.

The association also posted a message to fire victims along with links to government and non-profit organizations that are helping fire victims on its Web site.  

NAHB Disaster Relief Fund

NAHB is working with associations in the affected areas with disaster recovery and public relations assistance.

To make a donation to NAHB’s Home Building Industry Disaster Relief Fund, which directs contributions made to the fund to recognized charities that are helping with shelter, healthcare and education, click here.

For more information on the NAHB fund, e-mail Jessica Lynch at NAHB, or call her at 800-368-5242 x8401.

N.Y. City Looking For Post-Hurricane Housing Designs

With the odds growing that New York City, with a population of more than eight million and 578 miles of waterfront, could be hit by a destructive hurricane, the New York City Office of Emergency Management (OEM) is sponsoring a design competition to enhance the city’s ability to provide provisional housing for people who lose their homes.

The "What If New York City..." competition is receiving financial support from the Rockefeller Foundation and is being held in consultation with Architecture for Humanity-New York.

The contest, according to Joseph Bruno, OEM commissioner “is a call for innovation and an opportunity for designers and policy-makers to collaborate on one of the biggest challenges facing densely settled urban areas: how do we keep people safely and comfortably housed while reconstruction proceeds?”

A jury of experts in the fields of architecture, design, urbanism and government will chose 10 entrants who will be awarded $10,000 each and technical support to develop their proposals into workable solutions.

“This design competition will rely on a fictional but realistic New York City neighborhood devastated by a hypothetical Category 3 hurricane,” said Bruno. “How will residents resume their lives? How can they be provided safe, comfortable living space? How can this housing be quickly deployed and adapted to different site conditions? How can it be reused in subsequent emergencies, be environmentally sustainable and cost-effective?”

The deadline for registering for the competition is Nov. 23. Submissions are due by Dec. 14 and the winners will be announced on Jan. 15.

The project development period for the winners will end on May 15, when the designs will be released along with an exhibition, catalog of solutions and report of the competition’s Technical Advisory Committee.

To visit the competition Web site for further information, click here.

Workshop to Provide Guidance on Clean Water Act Rules

NAHB, the National Mining Association and  Hunton & Williams, LLP on Nov. 14 in Atlanta again will host a workshop on recently published guidance from the federal Environmental Protection Agency and U. S. Army Corps of Engineers.

The so-called Rapanos guidance discusses jurisdictional issues in the Clean Water Act that were revised after the U.S. Supreme Court decision in Rapanos v. Carabell last year.

The workshop is the next in a series of events planned for representatives of mining companies, home builders and developers and other businesses affected by wetlands permitting issues. The three groups held a similar session in Arizona last month.

Speakers will include:

  • Mark Sudol, U.S. Army Corps of Engineers, Chief, Regulatory Branch
  • Craig Hooks, EPA, Director of Wetlands, Oceans & Watersheds
  • Kevin Minoli, EPA, Office of General Counsel
  • Tom Welborn, EPA, Region 4, Wetlands, Coastal and Watersheds Branch Chief
  • Mike Wylie, EPA, enforcement expert


To reserve a space, e-mail Lindsay Cather at NAHB, or call her at 800-368-5242 x8163.

The workshop will be held at the Westin Atlanta Airport, and hotel reservations can be made online or by calling 404-762-7676.

Delaware Builder Honored for Affordable Homeownership

A blighted public housing development in Wilmington, Del. that once saw high rates of violent crime and drug abuse has been revitalized through an innovative public-private partnership. The effort recently earned Leon N. Weiner & Associates, Inc., which redeveloped the property, a Readers Choice Award for “Best Affordable Homeownership” from Affordable Housing Finance magazine.

The original Eastlake public housing development of 267 brick rental units had become dilapidated despite the best efforts of the Wilmington Housing Authority. Violent crime and drug abuse grew to exceed some of the worst per capita crime rates in the nation, and Eastlake became known locally as “the Bucket.”

All of that changed when the developer and the housing authority formed a public-private partnership to revitalize the community.

“This citation is a testament to our firm’s dedication to the development, preservation and management of quality, affordable housing for all citizens,” said Kevin Kelly of Leon N. Weiner & Associates, Inc. “We are proud to carry on our namesake’s legacy to provide lower-cost housing opportunities that surpass both quality and cost expectations.”

Kelly and David Curtis, co-managing partners of the company, accepted the award during a ceremony in Chicago on Oct. 26.

“By working with the Wilmington Housing Authority as co-developers, we’ve ensured that we can successfully make a difference,” Curtis said. “We dramatically improved this community by razing all of the former public housing units and securing financing to rebuild 70 rental homes, a community center and 90 homeownership units, the majority of which are oriented toward parks and public, green space.”

Both the rental and homeownership units share a unified design using an array of roof profiles and exterior materials — a marked change from the monotonous lines of brick walls that stigmatized the former Eastlake as a low-income housing project.

“In addition to the housing itself, we also wanted to provide a variety of social services to the home owners and renters at the new Village of Eastlake,” Curtis said.

Free computer and karate classes are taught by volunteers two nights a week, and in the summer, management holds a free lunch program and arts and crafts programs that are open to Eastlake residents. Also in the summer, the Delaware Division of Parks and Recreation conducts tutorial programs for the children.

The homeownership units at Eastlake have already had a positive impact on the community, Curtis said. The affordable nature of the homes, combined with the handsome overall design, has led to a diverse and dynamic influx of residents into the community, spawning a neighborhood resurgence. Two nearby subdivisions with a combined total of more than 100 for-sale homes are already underway.

For more information about Leon N. Weiner & Associates, Inc., click here.

To read the article about the award-winning Village of Eastlake in Affordable Housing Finance magazine, click here.

Maryland Students Spend a Day at Pulte Homes Job Site

Through a new program designed to give students a first-hand look at possible careers for a diversity of workers in the home building industry, Pulte Homes and the NAHB Student Chapters on Oct. 15 invited students from the University of Maryland-Eastern Shore to experience “A Day at the Job Site.”

Twenty-six Construction Management Technology (CMT) students and faculty members saw numerous amenities and toured homes in various stages of construction at Chesapeake, a Del Webb community, Pulte’s active adult division, which is now building the last phase of the development near historic St. Michael’s, Md. Pulte Homes executives were on hand to discuss topics ranging from land development to sales and marketing to the 55+ market.

Students also participated in a scavenger hunt and were awarded prizes. Representatives from the Eastern Shore Building Industry Association, including executive officer Jill Barbon and president John Capozzi of Capozzi Construction, also participated in the day’s activities.

“This event was a success for all the students who attended,” said Malachi Astwood, president of the school’s NAHB Student Chapter. “It was both educational and entertaining. There was valuable information given to us from the Pulte Homes team.”

“The event was well planned and I was very impressed by the technical content,” said faculty member Joseph Arumala. “The balanced combination of social events and professional development activities was very satisfying.”

CMT educator Carlos Salgado called “A Day at the Job Site” a wonderful idea. “Pulte Homes should be commended for providing such an informative and educational day for our students,” he said. “They created a learning experience that not only exposed the students to the various stages of home construction, but also provided them the opportunity to interact with Pulte professionals.”

Discussions between Pulte Homes and CMT are now in the works to conduct a soil class on the job site.

Additional “A Day at the Job Site” events will take place in the coming months in Arizona, Texas and Florida. All of the participating students are members of NAHB through the NAHB Student Chapters program, which is administered by Home Builders Institute, the workforce development arm of NAHB.

For more information, e-mail Page Browning at HBI, or call her at 800-795-7955 x8918.

TruStile Doors Provide Superior Sound Performance

TruStile Door’s solid MDF and wood stile and rail doors enable builders to achieve superior levels of sound proofing.

Doors have traditionally been one of the weakest links in sound insulation, according to the manufacturer, with typical value-engineered hollow-core doors and “solid” doors with low density and straw cores offering little sound protection.

Sound results from vibrations that