Nation's Building News Online: March 10, 2008Print All Articles Text Version |
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Congress Urged to Act Soon to Shore Up Housing, EconomyWith the negative drag of the housing downturn now spilling over into other sectors of the economy and threatening to immerse the nation in a full-fledged recession, in a March 4 teleconference, NAHB Executive Vice President and CEO Jerry Howard and David Seiders, the association’s chief economist, urged Congress to move quickly to enact legislation to shore up the housing market. “It is obvious to everybody that we are in the midst of a dramatic housing downswing, the deepest and most rapid since the Great Depression,” said Seiders, with a 10-month inventory of unsold new and existing homes clogging the marketplace. New-home sales and single-family housing starts already are down by more than 50% from their most recent cyclical peaks, Seiders said, and the decline is ongoing, with a 22% drop in sales and a 30% slump in single-family production projected for this year. “The key is seeking out some bottoms for 2008,” he said. If Congress and the Administration do what needs to be done to alleviate the current mortgage credit crunch and the tightening of lending for housing, he said, sales should stabilize by mid-year and starts by year’s end, setting the stage for industry growth in 2009. “It really is critical for the overall economy that housing forms this kind of a pattern,” Seiders said, because the income tax rebate going out to consumers in the next few months, while it may be enough to halt the current recessionary slide, will run out of steam by the end of this year. “If housing is not showing some improvement, growth could be set up for another major setback in early 2009,” he said. The decline in housing production was responsible for subtracting 1.25 percentage points from the gross domestic product in the fourth quarter, he said, when the economy was barely growing at a sluggish 0.6%. Do Something and Do It Soon “It seems incumbent upon policymakers to take some steps to ensure that as the impact of the stimulus law declines, the housing markets are sufficiently shored up,” said Howard. With the housing market continuing to decline, “it is incumbent upon them to do something and do something soon.” Howard indicated that legislation to reform the regulation of Fannie Mae and Freddie Mac was long overdue, and that if this effort had not “languished as long as it has” in Congress, housing’s government-sponsored enterprises would be in a better position today to respond aggressively to the housing slump. On another piece of vitally important legislation that has been bogged down on Capitol Hill — modernization of the Federal Housing Administration enabling it to provide further assistance to first-time and moderate-income home buyers — Howard cited the recent action of House Financial Services Committee Chairman Barney Frank (D-Mass.) to move the bill forward by dropping from it a provision to create an affordable housing trust fund. Frank indicated that he would look for other legislative vehicles to move the trust fund forward. “We hope others on Capitol Hill will recognize Chairman Frank’s efforts,” Howard said, and work to get the FHA bill signed into law as soon as possible. During a March 6 hearing on GSE reform, Senate Banking Committee Chairman Chris Dodd (D-Conn.) noted that significant progress had been made on achieving a final FHA modernization bill. With the bill in a House-Senate conference, Dodd said that only one issue remained to be resolved, and he expected the bill to emerge from conference as early as this week. Howard voiced disappointment that a provision in the Senate economic stimulus package to allow businesses to carry back net operating losses for five years failed to make it into the final legislation. The provision, he said, “in times like this would greatly help small business people stay in business. The viability of these businesses is a very real and tangible question. Anything that can be done to keep these people in business should be done.” Howard also called for a law to expand the use of mortgage revenue bonds by removing a provision that limits their use to first-time home buyers. Without that restriction, states could use them for refinancing. “The benefits are obvious,” he said. “It would keep people in their homes and not add to the oversupply of inventory.” And he said that Congress should consider a temporary tax credit for buyers of newly built homes modeled after the Ford Administration program that worked effectively during the recession of 1975 to 1976. The quick enactment of a credit “for the duration of this calendar year would go far in releasing pent-up demand for housing, reestablishing consumer confidence in the value of homeownership and diminishing the amount of inventory on the market,” he said. Several senators have introduced tax-credit legislation, including Sens. Johnny Isakson (R-Ga.) and Debbie Stabenow (D-Mich.). Howard also said that NAHB would like to see Senate Majority Leader Harry Reid's (D-Nev.) housing bill brought back to the floor without the controversial bankruptcy provision that was its undoing when its consideration was blocked two weeks ago. “The rest of that bill would have been very pro-housing,” he said. Floor Plans: California Project Proves Green Can Be Affordable
The Jamboree Housing Corporation’s Laurel Crest apartments in Lancaster, Calif. prove that it’s not only easy being green, it’s affordable as well. Laurel Crest represents the epitome of eco-friendly, affordable housing in Los Angeles County’s fastest growing city and the 10th fastest nationwide. Jamboree’s quality construction and innovative onsite resident services also address the city’s charter to reverse a pattern of deterioration, increase the vitality of its neighborhoods and rekindle a sense of community pride.
The property features two- and three-story craftsman-inspired buildings and incorporates Jamboree’s commitment to excellent design using the same high-quality finishes and materials found in market-rate communities. Laurel Crest also is within walking distance of a Metrolink light rail station as well as local schools, hospitals, parks and even a public library. Green and Affordable Is a Winning Combination
“All this underscores Jamboree’s responsibility to pursue increased sustainability of the community as part of the overall building industry,” Archuleta said. According to Jennifer Caspar, senior development officer for Enterprise Community Partners, a national nonprofit with 25 years of experience in community development and affordable housing, Laurel Crest was one of its first Green Communities grant recipients — a green initiative that helps to fund housing that is both affordable and sustainable. In addition, Jamboree was recently awarded an Energy Star 2008 Award For Excellence in Energy-Efficient Affordable Housing for Laurel Crest ― one of only two such awards granted in California. Laurel Crest’s transit-centric philosophy provides residents with cost-effective transportation and nurtures the environment by reducing automobile trips by a projected 50%. Built within walking distance of multiple mass-transit options, Jamboree was able to reduce parking spaces by 38% and provide more attractive, user-friendly pedestrian walkways and greenery at virtually no increase in costs. Greening Can Benefit Bottom Line
For projects with unusually high assessments and fees, reducing operating expenses can make the difference between a feasible and infeasible project. By leveraging cost-saving environmental efficiencies, Jamboree significantly reduced operating expenses at Laurel Crest. These savings also increased the property’s supportable debt, while decreasing the funding required from gap financing sources. In addition, Jamboree received 4% tax credits on its additional energy-related construction expenses. Many of the energy-saving elements simply required resourcefulness and creativity, not excessive expense. Archuleta says that Jamboree now incorporates a green design elements checklist at the outset of design engineering for each new project. “When we started planning for Laurel Crest a number of years ago, these types of green features were cutting-edge,” said Archuleta. “Now, more and more of our city partners expect that we will incorporate such features into our developments.”
Housing Finance System Reform Needed to End Mortgage CrisisNAHB on March 6 called on Congress to move quickly to enact comprehensive regulatory reform for housing government sponsored enterprises (GSEs) Fannie Mae, Freddie Mac and the Federal Home Loan Banks to ensure their financial safety and soundness and allow them to vigorously pursue their housing mission. “At a time when the housing market needs them more than ever, Fannie Mae and Freddie Mac have failed to adequately respond to the mortgage crisis,” Jerry Howard, executive vice president and CEO of NAHB, told members of the Senate Banking Committee. “Rather than aggressively pursue market solutions, they are hunkering down to shore up financial results and shareholder returns — and are even taking steps that will further burden struggling mortgage borrowers.” Because their regulator, the Office of Federal Housing Enterprise Oversight (OFHEO), continues to impose a 30% capital surcharge on both companies, Fannie and Freddie are attempting to build their capital reserves by imposing higher fees that will raise mortgage borrowing costs at the worst possible time, Howard said. “OFHEO is constraining the ability of Fannie and Freddie to do all they can to promote affordable housing and to help strapped borrowers. At the same time, HUD’s mission oversight over the two GSEs is lacking. HUD should be requiring them to do more, not less, in the present dire mortgage market circumstances,” said Howard. “This just underscores why major reform of this flawed, bifurcated regulatory framework is long overdue and urgently needed.” During the hearing, senators noted that GSE reform alone would be insufficient to resolve the current housing crisis and sought input from panelists on other solutions to move housing and the economy forward. Several senators expressed interest in the tax policy recommendations put forth by NAHB and Chairman Chris Dodd (D-Conn.) specifically thanked Howard for offering the home builders' perspective on how to get housing moving again. H.R. 1427, the Federal Housing Finance Reform Act of 2007, which passed the House last May, would allow the GSEs to operate in a safe and sound manner while preserving the vitality of their government-sponsored status for the fulfillment of their vital housing mission. Howard outlined NAHB’s position on six key elements of GSE reform:
Photo by Herman Farrer 58 Members Honored for 50 Years of Service to NAHB
In addition to a round of applause from the board, the members received custom-designed commemorative pins and plaques acknowleging their long-term status as NAHB members. The recognition program was the first of its kind for NAHB. Fifty-year members Robert Friedrich, of the Ames Home Builders Association in Iowa, and Sam Sisisky, of the Builders Association of Eastern Connecticut, developed the program for their fellow members. The 50-year members, in alphabetical order, include:
NAHB ‘Weathering the Economic Storm’ Videos Now OnlineEight free videos on “Weathering the Economic Storm” — a discussion by housing industry veterans at last month's International Builders’ Show on how to respond to the current economic downturn ― are now available on the NAHB Web site for immediate viewing. On the seven- to eight-minute streaming videos, the seasoned professionals offer advice on marketing, building practices, financing and other key topics. Members can simply click on any or all of the video discussions to view them. The videos include:
To read a story in last week's Nation's Building News on the “Weathering the Storm” seminar, click here. Subprime Alternative: FHA Reform Deal CloseBoth Senate Banking Committee Chairman Christopher Dodd (D-Conn.) and House Financial Services Chairman Barney Frank (D-Mass.) said last week that differences between the Federal Housing Administration modernization bills in the House and the Senate could be resolved in short order. The legislation aims to provide safe loan alternatives to subprime mortgages, making homeownership more accessible. The FHA program is intended for mortgage borrowers with weak credit or little or no cash, who may not be able to get an affordable mortgage elsewhere. Among the changes on tap, home owners would no longer be required to have 3% equity or the cash equivalent to get an FHA-insured loan. The House bill would allow borrowers to get an FHA-insured loan with no money down if they can show they can afford the mortgage payments. The Senate bill requires 1.5%. The legislation would also permanently raise the program’s loan limits, which have not kept up with many housing markets. In 2005, there were roughly 5,000 FHA loans made, down from 109,000 in 2000. (www.cnnmoney.com)
A Silver Lining in Housing BluesLenders in California are predicting a flood of new loan applications and refinancing following the government announcing last week that it was raising the maximum limits on mortgages backed by the Federal Housing Administration and Fannie Mae and Freddie Mac. They cited the pent-up demand for credit and the fact that the new rules are set to expire by the end of 2008. One loan officer even said that, with all the layoffs in the industry since the subprime market implosion, he’s concerned that there won’t be enough lenders to meet the onslaught. “It’s definitely going to stimulate buyers to jump off the fence,” said Tom Cortesi, a loan officer at First Financial in West Los Angeles. “I’ve been getting lots of calls about it.” The new jumbo loans won’t come without some restrictions, though. Fannie and Freddie could tighten loan-to-value rules, for example, which would require larger downpayments. And interest rates on the new, larger loans may not be as low as they are on the smaller conforming loans. Lenders are expecting more details from the FHA soon. (www.pasadenastarnews.com)
100% More Difficult: First-Time Home Buyers Struggle to Find Downpayment MoneyFalling prices in many parts of the country have improved affordability for those interested in becoming home owners for the first time, but financing the purchase has become a bigger challenge. Lenders, in general, are requiring larger downpayments and higher credit scores, criteria that can trip up first-time buyers. According to the National Association of Realtors®, 45% of first-time home buyers opted for 100% financing between July 2006 and June 2007. The median percentage that first-time buyers financed was 98%. No-downpayment loans “are still happening, but with a lot more restrictions than before,” said Barton Pitts, president of Downers Grove, Ill.-based Professional Mortgage Partners. Borrowers today are going to have to verify their income and verify their financial assets to lenders, said Frank Nothaft, chief economist for Freddie Mac. A FICO credit score of 660 to 680 is now the minimum most lenders will consider to prove creditworthiness, he said. While there is no one-size-fits-all rule to mortgage requirements, experts say a first-time buyer will need about a 5% downpayment on a typical loan these days. Others are predicting heftier restrictions to entry. According to Guy Cecala, publisher of the industry newsletter Inside Mortgage Finance, a first-time buyer in many markets will soon need even more money down — perhaps 10%. “And I think before too long we’re going to see it up to 15% to 20%,” he added. (www.marketwatch.com)
Hemorrhaging Housing Market Threatens Latino WealthThe president of the National Council of La Raza testified before Congress late last month that the subprime mortgage crisis is on track to reverse the financial gains Latinos have achieved so far in this decade. Between 2001 and 2006, the percentage of middle-class Latino families grew to nearly 20% of their overall national population, and the national Hispanic homeownership rate set a record in 2007, when it reached an all-time high of 50%. For the average Hispanic home owner, equity in a residence represents about 88% of net worth. Anything that could eliminate some of that equity would, in turn, erase Latino wealth. And that’s what’s expected to happen this year and next as adjustable-rate mortgages are reset at a higher interest rate. About 1.8 million ARMs are scheduled to reset in 2008 and 2009, according to the U.S. Treasury Department, and many of those loans will then go into default. Two out of five Latino borrowers have these high-interest subprime loans, compared with one out of five white borrowers and one in two African-American borrowers, according to La Raza. (www.chron.com)
Housing Bust Dries Up Sawdust MarketThe price of sawdust has soared since 2006, up from about $25 a ton to more than $100 in some markets, and the housing slump is to blame. Fewer new homes mean fewer trees cut for use in construction, which leads to less sawdust and other wood waste, driving up the price. Sawdust may seem like a lowly commodity, but it is widely used in today’s economy to make bedding for farm animals, lightweight coverings for steering wheels and dashboards and for particleboard. The Pacific Northwest is expected to produce about 15 billion board feet of lumber this year, a decline of almost 3 million board feet since 2006, translating into a shortfall of 1.5 million tons of sawdust and shavings. One Montana company that manufactures compressed sawdust pellets for special stoves that produce lots of heat but little ash is dealing with the sawdust shortage by mining old houses that are being torn down for lumber that can be ground up and sold. The company has also opened a free wood dump for any construction crew that wants to drop off any two-by-four trimmings from a local site. (www.Charleston.net)
Springfield Housing Tops in MidwestHardly the prototype of the bustling, fast-growing and hugely desirable markets associated with housing booms, Springfield, the capital city of Illinois, looks better and better as it continues to see double-digit price increases for homes. With a gain last year of 14.4%, to a median price of $108,600, Springfield placed tops in the Midwest in the strength of its single-family housing market, according to the National Association of Realtors®. By contrast, Midwest prices overall fell 3.2% last year. In the Chicago area, including Naperville and Joliet, prices sank 2.6% to a median price of $261,000. “The key here is that housing is affordable,” said Fritz Pfister, a real estate broker in the city. “We are seeing people from Florida and Arizona who found those areas to be too crowded and expensive, and they are moving back to Springfield.” “The healthiest housing markets today generally are moderately priced and are experiencing job growth and often population growth,” said Lawrence Yun, chief economist for the Realtors®. Weaker markets, such as Detroit, where home prices fell 13.8% in 2007, to $133,300, are experiencing job losses and an exodus of residents, according to Yun. (www.chicagotribune.com)
Letter to the Editor: Bring Back First-Time BuyersDear Editor: The one point that needs to be hit home in a much bigger way than I have heard or read is this: in the cycle of events that takes place from beginning to end, before a person other than a first-time buyer can buy a house, they need to sell a house. If that person has a $300,000 house to sell, they need a $300,000 buyer. And that $300,000 buyer needs to sell their $225,000 house first in order to buy, and so on and so forth all the way down to the first-time home buyer. Therefore, creating an incentive for the first-time home buyer to purchase increases the likelihood that the person with the $300,000 house will be able to sell it. But here's the dilemma: the toughest person to get financed in most cases is the first-time home buyer. Until that changes, we are stuck right where we are. In resolving this issue, we need an incentive that doesn't repeat the past mistake of allowing too many unqualified people into the marketplace and ultimately overheating it. The person who comes up with a solution to this issue will be the hero of our industry. David Baulieu
Eco-Terrorism Against Street-of-Dreams Homes DenouncedNAHB moved swiftly last week to denounce arsonists who burned down three unoccupied luxury homes and damaged two others built as part of last year’s Seattle Street of Dreams in suburban Woodinville, Wash. Damage was initially estimated at more than $7 million. A banner left near the homes claiming responsibility for the destruction was signed “ELF,” the Earth Liberation Front, an organization that is considered a domestic terrorism group by the Federal Bureau of Investigation. The association said that it strongly condemned the criminal actions of the radical and violent group, which the FBI believes over recent years has been responsible for many millions of dollars worth of damage to new homes and communities. “ELF’s heinous crimes do nothing to further the cause of environmentally sensitive home building, and everything to degrade ELF’s own image in the public eye as a group of violent thugs who seek to damage and destroy property and put human lives in danger,” said NAHB President Sandy Dunn. “NAHB supports the continued efforts of both local and federal law enforcement in bringing these criminals to justice and putting an end to ELF’s unlawful and violent activities,” she said. Initiated in 1983, the Seattle Street of Dreams organizes an annual 37-day tour of homes to showcase the newest trends and most innovative ideas for luxury home building, architecture, interior design and landscaping all on one street. Those who attend vote for their favorites in a variety of categories, such as best kitchen, home technology and master suite, and the results are announced near the end of the show. Proceeds from the tours are used to support local charities serving children in need. “It’s sad, it’s just a shock. I don’t know what to tell you,” Greg Lundberg of CMI Homes, told a reporter from the Seattle Times, as he looked at the ruins of the Seattle Street of Dreams Best of Show award-winning home built by his company. Lundberg told the Times that he and other developers at the site had worked hard to build homes there were as environmentally friendly as possible, filled with such features as high-efficiency insulation and recycled materials. The "Urban Lodge" home was certified as a five-star Built Green Home under the Built Green program of King and Snohomish Counties, Wash. and the builder said it met the Gold Level of the NAHB Model Green Home Building Guidelines. The home received a gold Best in American Living Award at last month’s International Builders' Show in Orlando. NAHB has provided information for its members who are concerned about the potential of domestic terrorism on their own home sites. Members should always take appropriate measures and institute precautions as necessary to ensure security at their job sites, especially after regular work hours, NAHB advises. Suggested precautions include:
Florida Looks at Crackdown on Copper and Metal TheftsLegislators in Florida have announced that they will attempt to crack down on surging secondary thefts of metal from residents and businesses across the state, according to Gigi Bouraad, reporting for the Florida Home Builders Association. “This criminal trend is not only destructive, it is dangerous. I applaud our legislative leaders for their proactive stand against this issue,” said Attorney General Bill McCollum during a press conference with state Rep. Baxter Troutman (R-Winter Haven) and Sens. Victor Crist (R-Tampa) and Lee Constantine (R-Altamonte Springs). “These criminals are creating increased costs to consumers, home owners and businesses at a time when Floridians cannot endure or afford the expensive repairs associated with these crimes,” said Troutman. The legislation would require secondary metal dealers to keep records, including the name of the person from whom the goods were acquired, their address and workplace, their home and work phone numbers and a thumbprint. In addition, Rep. Sandra Adams (R-Oviedo) and Sen. Charles Dean (R-Inverness) have drafted a related bill that would make thefts of metals from communication or utility providers a first-degree felony. The legislative effort to stop the thefts is supported by the Florida Home Builders Association as part of a coalition of industry organizations that have formed Floridians for Copper and Metal Crime Prevention. As a direct result of the increase in worldwide demand and rising prices of metals, says Bouraas, more and more criminals are stealing copper wiring from construction sites, digging up underground telecommunication wires, cutting utility wires and even stealing beer kegs. Stolen copper and secondary metals can be sold quickly for cash to a scrap dealer, who will pay 85% to 90% of the market price. The price of copper has increased from $1 per pound in 2005 to $3 to $4 per pound last year, and business losses from metal theft hover around $1 billion. Government Affairs Awards Deadline Is March 21Applications for the NAHB advocacy program honoring builders, associations and public officials who have created more housing opportunities and strengthened the building industry are due Friday, March 21. The awards recognize outstanding achievement in the areas of federal, state, BUILD-PAC and grassroots advocacy. The awards will be presented on May 1 during the NAHB spring board of directors meeting in Washington D.C. Awards categories include:
Legislative Conference Coming at a Pivotal Time for HousingBuilders looking to send a message to Congress that it needs to take action to jump-start housing and the economy should mark their calendar now for the most important grassroots event of the year — the 2008 NAHB Legislative Conference — which will take place on Wednesday, April 30 in Washington, D.C. leading into the association’s spring board meeting. The timing of this year’s Legislative Conference — which will take place six weeks earlier than the 2007 conference — is particularly significant considering the precarious condition of the housing sector and overall economy. Builders are encouraged to travel to the nation’s capital and urge their representatives and senators to support policies that will stabilize the housing market, help reduce foreclosures, restore confidence in the credit markets and keep the economy moving forward. Specifically, NAHB is urging Congress to:
Especially in these challenging times, participation by NAHB members can make a huge difference as various interest groups compete to push their agendas in Washington. A strong builder turnout on April 30 will certainly send a powerful message to members of Congress that housing must remain a top national priority. For more information and to register for NAHB’s 2008 Legislative Conference, click here; or e-mail Molly Murray at NAHB, or call her at 800-368-5242 x8282. Conforming and FHA Loan Limits IncreasedThe Office of Federal Housing Enterprise Oversight (OFHEO) on March 6 released the Fannie Mae-Freddie Mac maximum conforming loan limits that will be in effect through year-end as a result of the economic stimulus legislation signed into law last month by President Bush. Seventy-one Metropolitan and Micropolitan Statistical Areas are affected, including 224 counties and cities not in counties. In addition, there are 21 counties outside of those areas where the limits have been increased, plus Guam and four municipalities in the Marianas Islands. The newly increased limits range from $417,500 in Greeley, Colo. to the highest of $793,750 in Honolulu. In the continental U.S., $729,750 is the maximum limit for a single-family home. The conforming loan limit has been set that high in eight markets in California, including Los Angeles and San Francisco. Three smaller markets in Colorado; two in Massachusetts; Key West, Fla.; Washington, D.C.; New York City and Salt Lake City also saw their limits raised to the maximum. Fannie Mae subsequently announced that it will begin purchasing fixed-rate mortgages at the higher limits effective April 1, and do the same for ARMs starting on May 1. Freddie Mac has not yet announced its effective dates. In a related development, the Department of Housing and Urban Development on March 5 raised the loan limits for homes insured by the Federal Housing Administration in 14 counties in California. The action was taken after Congress passed its economic stimulus package last month, which includes a temporary increase through year-end on FHA-backed loans, from $362,790 to as high as $729,750. In prepared remarks, HUD Secretary Alphonso Jackson said the new limits will make FHA-backed loans available to as many as 30,000 Californians and 250,000 home owners nationwide. The following day, HUD announced that it raised the limits in other counties across the nation as well. Overall, the change in loan limits will help provide economic stability to America's communities and give nearly 240,000 additional home owners and home buyers a safer, more affordable mortgage alternative, HUD said in announcing the new loan limits. For more on FHA loan limits in your home area, click here. For additional information, e-mail Bill Renner at NAHB, or call him at 800-368-5242 x8597.
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 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. National Sales Tax Would Be a Setback for HousingWhile replacing the current federal income tax system with a national sales tax would increase economic growth over the long run, that benefit for home builders would be far outweighed by the negative impact on for-sale and rental housing and residential remodeling, according to a recent paper by NAHB tax economist Robert Dietz. The paper examines the impact of the “Fair Tax” introduced by Rep. John Linder (R-Ga.), which would repeal almost all existing federal taxes and replace them with a 23% tax for all sales or exchanges of new goods from a business to an individual. The Internal Revenue Service would be abolished over a three-year period, although new or existing government agencies would be needed to administer the new tax system, and only existing federal excise taxes on products such as alcohol and tobacco would remain in place. “H.R. 25 would in general tax all sales transactions from a business to an individual,” says Dietz. “Individual to individual sales would be exempt. Note that this would exclude sales of existing homes. Sales from an individual to a business, such as labor, would generally be exempt from tax. Investment and payments to capital would be exempt. By not taxing investment and productive business activities, a national retail sales tax encourages economic growth.” However, he notes, the legislation “would be harmful to housing.” All new home sales would be taxable, including improvements and remodeling services. For multifamily rental property, all rental payments made by tenants to property owners would be subject to the sales tax. The service provided by a bank or other financial institution in making a loan would be taxed. On all but student loans, a portion of the interest payments would be taxed above a benchmark interest rate, most likely the rate on the 10-year Treasury bond. This means that a portion of every mortgage interest payment would be taxable. And other financial services — including fees from brokers, Realtors®, mutual fund managers and loan originators — would be subject to the Fair Tax, which “would thus increase the cost of selling or buying a home for both new and existing housing.” NAHB contracted Tax Policy Advisers (TPA) to analyze the complete set of Fair Tax impacts and also determine what tax rate would be required to keep the proposal revenue-neutral. The models at TPA found that the tax would need to be higher than the 23% rate specified in the legislation — in the range of 26.1% to 27.7%. Other economists have said that the rate would need to be even higher to avoid a loss in federal revenue, which would produce less economic growth and reduce the benefits offered by the tax reform proposal. On the economic side, TPA determined that the new tax would have these impacts, using the range it found would be revenue-neutral:
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 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. Eye on the Economy: Housing-Directed Stimulus Still NeededOn Feb. 28, David Seiders, chief economist at NAHB, gave an oral statement before the Senate Finance Committee on the need for a second round of fiscal stimulus, directed at the housing sector, to boost the housing market and shore up the economy. His statement follows: Good morning Chairman Baucus, Ranking Member Grassley and members of the committee. My name is David Seiders and I am the chief economist for the National Association of Home Builders. Thank you for the opportunity to testify today on the current condition of the housing market and on policy options to strengthen the economy through the housing sector. Housing Downswing Has Pushed Economy to Brink of Recession The U.S. housing market now is in the most pronounced downswing since the Great Depression and the bottom is not yet in sight. New home sales and single-family housing starts already are down by more than 50% from recent peaks and the month’s supply of new homes for sale is up to nearly 10 months with serious downside implications for future housing production. This dramatic housing contraction has exacted a heavy toll on economic growth and employment during the past two years and has pushed the economy to the brink of recession. In addition to the sharp declines in home sales and housing production, we’re also seeing falling home prices and serious declines in mortgage credit quality. These factors have taken a toll on household wealth and provoked a surge in mortgage foreclosures, a substantial decline in homeownership and serious damage to financial institutions holding mortgage assets. The pronounced decline in mortgage credit quality first became evident in the subprime mortgage sector last year and resulted in serious damage to major components of U.S. mortgage securities markets. Furthermore, bank lending standards for all types of conventional home mortgage loans have tightened substantially since last summer. These forces have combined to create a bona fide credit crunch in the housing sector. Aggressive Fed Actions Not Necessarily Reducing Mortgage Interest Rates The Federal Reserve has been easing monetary policy aggressively since last fall and will probably do more in the near future. These actions definitely have improved the functioning of short-term money markets; however, it is important to note that rate cuts by the Fed do not necessarily translate into lower mortgage interest rates. Long-term rates include an inflation component and if market expectations of inflation rise as the Fed eases monetary policy, then little or no benefit will be transmitted to mortgage rates. This problem highlights the importance of congressional action with respect to fiscal policy in the current environment. The recently enacted Economic Stimulus Act of 2008 may keep the economy out of recession this year, or at least limit the severity of recession, and NAHB applauds the work of the Congress on this bill. However, this short-term stimulus package does not address the deep problems posed by the housing contraction that’s at the root of today’s economic and financial market problems. Some argue that the best way to bring the housing market back into balance is to permit housing prices to fall quickly over a short period of time. However, this would most likely cause further substantial damage to the economy, to financial markets and to America’s home owners. Tax Policy Recommendations That Will Stimlulate Housing A second round of fiscal stimulus, directed squarely at the housing sector, is a far better path to take. With respect to options, NAHB has the following tax policy recommendations for the committee:
Thank you for the opportunity to testify. NAHB Chief Economist David Seiders analyzes the economy from the point of view of the housing market every other week in the free e-newsletter, “Eye on the Economy.” The preceding is a reissue of his March 5 edition. To subscribe to “Eye on the Economy,” click here.
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 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. Useful Links to Monitor Economic and Housing TrendsThe following are links to useful information from government agencies and NAHB that will enable you to monitor the housing market. To access the latest information available, simply click the links.
Want to Know the Housing 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 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. Builders’ Tip: Fine-Tuning an Aerosol Insulation Nozzle
The accompanying drawing shows how I modify the tube to get it to fit in tight places.
Tips & Techniques provided by Fine Homebuilding.
To request a reprint of this feature, e-mail Christina Glennon at Fine Homebuilding.
Set Yourself Apart With CGB Designation Join the ranks of the nation’s top building industry professionals with the Certified Graduate Builder (CGB) designation. The “Builder Assessment Review” (BAR) is your first step towards obtaining the CGB. This comprehensive assessment measures your expertise in the four key areas of the building industry: building technology, business and finance, project management and sales and marketing. Your results will show the areas where your knowledge is strongest and weakest and will help determine the courses required for you to obtain your CGB. To learn where the next BAR will be held, visit NAHB’s education listings, or call the Professional Designation Help Line at 800-368-5242 x8154.
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. Builders Told to Work With Lenders to Resolve ProblemsWith builders reporting an adverse shift in land acquisition, land development and home construction (AD&C) loan terms and availability, and as challenges mount for builders with outstanding loans, NAHB has added a “Builder’s Guide to Working With Lenders to Resolve AD&C Problems” to its "Back to Basics" Toolkit for association members. “Lenders are receiving current appraisals reflecting lower values on lots and homes, as well as market studies significantly scaling back absorption estimates,” the guide says. “As a result, lenders are seeking additional equity for outstanding credits and balking at loan extensions. “Defaults on AD&C loans are rising. The bank regulators have issued more restrictive guidance on real estate lending and are reviewing the methodology utilized by banks in determining loan loss reserves and levels of delinquent and non-accrual loans for AD&C commitments. In this environment, banks are actively reducing exposure levels to home building credit.” The article strongly advises builders not to ignore calls or other forms of communication from their lenders. And the consistent message from banking experts and experienced builders to builders who are having problems with outstanding loans is that they should take immediate steps to talk to their lender. “Timely communication and good faith negotiations can minimize the pain from the credit crunch,” the article says. “If a lender is aware the builder is on top of the situation and seeking solutions, the institution will be more likely to engage in positive dialogue. More often than not, it is in the lender’s best interest to work with a builder on a loan to achieve the best outcome rather than to foreclose. “The lender should be inclined to assist the builder in resolving factors impeding the timely construction, delivery and settlement of homes. The lender and the builder have a mutual interest in ensuring housing production is converted to revenues for the repayment of project debt.” Included in the guide’s advice to builders on working with lenders to resolve AD&C problems:
Builders Get ‘Hands-On’ Software Knowledge at IBSBuilders and associates gained some “hands-on” knowledge about how IT solutions can benefit their businesses at several computer labs hosted by NAHB’s Business Management and Information Technology Committee at the International Builders’ Show (IBS) in Orlando last month. “I think the labs are a wonderful outlet to get a hands-on feel for the software to see exactly what these vendors offer,” said Michael Watanabe of JW Incorporated in Honolulu. “It’s hard to get that experience on the show floor, so this way you can get a small group together in one place.” The committee sponsored 17 computer labs on Feb. 13-15 at IBS. Each 90-minute session was interactive with instructors walking attendees through key aspects of the software being sampled. “I learned a lot of new applications and functions for the software we already have,” said Kerry Stanley, of Morrison Homes in Calgary, Alberta, Canada. “This show is a lot more than I expected and it gives us a good handle on where the market is going.” Stanley worked on Sage Software estimating software, a software tool for budgets, proposals and schedules. “This is my seventh lab,” said instructor Mark Reich of Sage, “and this year was one of the best. I commend the IT people involved.” “Educating the industry on quality software applications is why we participate in events like the computer labs,” said Tom Gebes, president of BuilderMT, a financial and operations software. “The builders do not know what they do not know if we do not host these types of venues at the Builders' Show.” Other computer labs at IBS included:
NAHB Has Nearly 300 Resources to Help You Run Your Business More Profitably Go to NAHB's Business Management Tools Web pages (available to members only) for instant access to nearly 300 timesaving, moneymaking and cost-cutting business resources to help you run your business more profitably. Get guidance on accounting and financial management, business strategy, computers and information technology, customer service, human resources and more. Resources are added weekly, so bookmark www.nahb.org/biztools to go directly to these vital business management resources. Local and state home builders associations can link directly to www.nahb.org/biztools from their Web site and give their members instant access to these resources. It will make your HBA's Web site the place to go for the information and guidance that members need to succeed.
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. Improve Business Operations With ‘Cost of Doing Business Study’
The study analyzes several operational business categories ― including volume, operation type and land vs. no land costs ― and enables builders to identify their strengths and weaknesses, increase efficiency, set realistic budget targets and improve business practices. About 300 NAHB builder members participated in the study by providing data about their operations. The 2008 study is the latest of 15 such studies conducted by NAHB since 1970. In addition to using the study’s findings to help improve their businesses, builders can also use them in discussions with potential lenders when negotiating more favorable loan terms or interest rates. To view or order the “Cost of Doing Business Study” online, click here, or call 800-223-2665.
NAHB Has Nearly 300 Resources to Help You Run Your Business More Profitably Go to NAHB's Business Management Tools Web pages (available to members only) for instant access to nearly 300 timesaving, moneymaking and cost-cutting business resources to help you run your business more profitably. Get guidance on accounting and financial management, business strategy, computers and information technology, customer service, human resources and more. Resources are added weekly, so bookmark www.nahb.org/biztools to go directly to these vital business management resources. Local and state home builders associations can link directly to www.nahb.org/biztools from their Web site and give their members instant access to these resources. It will make your HBA's Web site the place to go for the information and guidance that members need to succeed.
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. Submit Comments by June 1 to Update ‘Performance Guidelines’
Builders and contractors are encouraged to submit comments by June 1 to update the “Residential Construction Performance Guidelines” (RCPG) — the industry's most widely accepted reference on how homes should perform. The current RCPG, available through BuilderBooks.com, contains more than 300 guidelines in 12 major construction categories, including cabinets, cement board siding, concrete, countertops, drainage, driveways, drywall, landscaping, water infiltration and more. It was created for builders and remodelers to help them successfully manage customer expectations — and protect the bottom line — while delivering high-performance homes. It is also popular among consumers. The RCPG work group, part of the Business Management and Information Technology Committee, is overseeing the development of the new edition of the guidelines. Members of various NAHB committees and councils were chosen to serve on the work group. To Submit Comments NAHB members can submit comments for the updated guidelines through the NAHB Web site. A comment form is available at www.nahb.org/rcpgcomments. The new edition of the RCPG is slated for publication in 2010. For more information about the RCPG review process, e-mail Joshua Nester at NAHB, or call him at 800-368-5242 x8461.
NAHB Has Nearly 300 Resources to Help You Run Your Business More Profitably Go to NAHB's Business Management Tools Web pages (available to members only) for instant access to nearly 300 timesaving, moneymaking and cost-cutting business resources to help you run your business more profitably. Get guidance on accounting and financial management, business strategy, computers and information technology, customer service, human resources and more. Resources are added weekly, so bookmark www.nahb.org/biztools to go directly to these vital business management resources. Local and state home builders associations can link directly to www.nahb.org/biztools from their Web site and give their members instant access to these resources. It will make your HBA's Web site the place to go for the information and guidance that members need to succeed.
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. Asking for the Sale the Key to Successful SellingWhen it comes to selling homes, the sale is yours for the asking, according to panelists at last month’s International Builders’ Show in Orlando discussing the art of closing new home sales. “If there is just one piece of advice I can dispense, it is always, always ask for the sale,” said Roland Nairnsey, vice president of training and development for Bob Schultz and The New Home Specialists in Boca Raton, Fla. Myers Barnes, president of Myers Barnes Associates Inc. in Kitty Hawk, N.C., reiterated that point. “For those of you who are hesitant to ask for fear of appearing like a hard-sell, high-pressure salesperson, you must bear in mind that asking is the fundamental quality of the top sales professionals,” said Barnes. “So the critical closing instruction is to ask for the sale. Ask enthusiastically. Ask confidently. And continue to ask until your invitation to own is accepted.” Using a biblical analogy, Barnes added: “Ask and you shall receive. This doesn’t mean to register the prospect and call back later.” Noting that selling is a numbers games, Barnes said that home sales people need to become “happy losers.” “A batter that hits 300 means you get a hit three out of 10 times. You lose seven out of 10 times. These guys are happy losers,” he said. “If you are a 10% closer, you are a 90% loser. But if you do that, you will be rich,” Barnes said. To further emphasize this point, Barnes quoted hockey great Wayne Gretzky: “You miss 100% of the shots you do not take.” It is important to make customers believe that they will lose out if they don’t buy now, said Nairnsey. To create a sense of urgency, sales offices should shows signs of activity, with “sold” signs prominently displayed on lots and maps marked up with sold sites. “Perception is reality. Make people think homes are selling and they will jump in,” he said. A Smart Time to Buy “People buy because other people buy,” echoed John Palumbo, marketing director of The Sterling Group in Jacksonville, Fla. “You need to give buyers a sense of urgency — other people will take the home if they don’t buy it.” Nairnsey also said that while there is no better time to buy than now, sales personnel need to convey that this is also a smart time to buy. With mortgage rates hovering not far from record lows, Nairnsey said builders should show their customers how much money they would lose over a seven-year period if they waited to buy and interest rates increased by one percentage point. “Show them that a modest 3% appreciation rate on a $400,000 homes means they will gain $90,000 over seven years,” he added. Part of the selling process is negotiating, but builders need to be able to negotiate on their own terms, while also making buyers feel like “they have won.” When Negotiating — Don’t Focus on Price “Negotiating is a buying signal,” said Nairnsey. “Customers negotiate out of a sense of emotion and pride. They want to win. Create a win-win situation by making them feel like they have won something.” If you must negotiate on price, Nairnsey said that it is important to start out high and to stay high. “If you are asking $300,000 and the buyer counters with a $250,000 offer, come down to $299,000,” he said. “There’s no reason to meet them half way. And if they see you are not budging, they will come up quickly.” Rather than focusing on price, builders should be willing to negotiate on other selling points, such as amenities. It is important to find out if customers are pre-approved for financing, because this can be used in the negotiating process. “This can be another negotiating tool,” Nairnsey said. “Tell them, if you can close sooner, we’ll offer X amount, or if you can make it a non-contingent sale, we can offer Y amount.” Obtain Referrals Finally, once the sale is made, Barnes said that builders need to go through a process that will enable them to obtain referrals. “This is what separates professionals from amateurs,” he said. “When customers offer a referral, they are in essence conveying two messages: first, I like the way you do business. Please treat my friends the same way you treated me. Second, I’m going to loan you my reputation.” If a sale is going to fall apart, it is apt to be within the first 24 hours, Barnes said. To anticipate a cancellation, he said a builder should contact a buyer twice within 24 hours after the paperwork is signed and tell them how they operate and explain their commitment to customer care. After the first call, tell the buyer you will call them later that day to see if they have any questions regarding the sale. If the home will take weeks or months to finish, the builder should schedule a weekly customer service phone call to provide regular updates to the customer and take bi-weekly digital photos of their home in progress. On the day of the move-in, deliver lunch to the buyer and give a gift subscription to the local daily newspaper. All of these steps will help build a solid relationship with the customer, and lead to a successful referral process, said Barnes.
Subscribe to Sales + Marketing Ideas Magazine for Cutting-Edge Information For additional cutting-edge sales and marketing information, subscribe to NAHB’s Sales + Marketing Ideas Magazine (www.smimagazine.com). Click here to learn about membership benefits of the National Sales and Marketing Council and the Institute of Residential Marketing.
Reach New Heights at the Sales + Marketing Exchange Attend the first annual Sales + Marketing Exchange conference Oct. 5-7 at The Arizona Grand Resort in Phoenix. Presented by the award-winning Sales + Marketing Ideas magazine, the Sales + Marketing Exchange offers education sessions featuring nationally-acclaimed speakers, networking opportunities, pre-conference courses leading to one of the Institute of Residential Marketing designations and interactive discussions of current sales and marketing issues. For more information, visit www.nahb.org/Exchange.
'Sales and Marketing Checklists' Covers the Ins and Outs of New Home Sales “Sales and Marketing Checklists for Profit-Driven Home Builders,” available through BuilderBooks.com, covers the major steps involved in successful new home sales. Learn the ins and outs of the comprehensive contract, the move-in, warranty service, asking for referrals and a great close. This expanded second edition also includes a new chapter on utilizing technology in your marketing and a more extensive chapter on multicultural sales. To view or purchase this publication online, click here, or call 800-223-2665. Newer Employees More Likely to Suffer Fatal Injuries
An additional 25% of the fatalities involved workers who had been with their companies between one and five years. “The fact that two-thirds of residential construction workplace fatalities happen to workers with less than five years with their current employer shows how critical it is for companies to spend the time to provide comprehensive safety training to their new employees,” said Buck Roberts, president of A.B. Roberts Construction Company in Anderson, S.C. and chairman of NAHB’s Construction Safety and Health Committee. Falls, which accounted for 45% of the industry’s reported deaths, were the most common cause of home building fatalities, according to the study. Workers most often fell from roofs, ladders and scaffolding. The fatally-injured workers were most often installing, building or assembling items such as siding, roofing, decking, walls, windows and scaffolding at the time of the fall, the study found. In addition, more than half of the fall-related fatalities were workers who were 45 or older. “Even if your new employees come to you having worked many years in residential construction, they may not be familiar with safety practices on your site,” said Roberts. “Thorough and job-specific safety training is essential regardless of the employee’s age or experience level.” The study evaluated the 1,385 work-related deaths that were reported in residential construction from 2003 to 2006. Data was collected from the U.S. Department of Labor’s Bureau of Labor Statistics’ (BLS) Census of Fatal Occupational Injuries as well as employment estimates from the U.S. Census Bureau American Community Survey and the BLS Quarterly Census of Employment and Wages. Study Available Free From NAHB The study, available free from NAHB, is the most comprehensive analysis of home building industry fatalities to date. To download a free copy of the full study or its executive summary from the NAHB Web site, go to: www.nahb.org/fatalitystudy. NAHB Working With OSHA to Improve Worker Safety NAHB is working with the Occupational Safety and Health Administration (OSHA) to provide the latest safety information, guidance and access to training resources to help members protect employees' health and safety. “NAHB’s comprehensive set of resources — ranging from 10-minute Toolbox Safety Talks that can be held while the workers are eating lunch to daylong training seminars — are geared towards helping companies improve the safety awareness and practices of their employees,” said Robert Matuga, NAHB assistant staff vice president of labor, safety and health. The fall protection training seminar from NAHB and the NAHB Research Center is held in locations around the country for builders, trade contractors, supervisors and workers. It focuses on identifying fall hazards in residential construction and understanding OSHA fall protection regulations and safe work practices in order to prevent fall-related injuries and deaths. To learn more about the fall protection training program ― and to see a list of scheduled seminar locations for 2008 ― visit www.nahb.org/fallprotectiontraining. To purchase safety publications, videos and other resources online from BuilderBooks.com, visit www.builderbooks.com/safety. For more information on NAHB safety training programs, e-mail Lindsay Cather at NAHB, or call her at 800-368-5242 x8163.
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. 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.
Four common hazards cause 90% of the injuries and fatalities on residential construction job sites. The “Recognizing the Big-Four Safety Hazards for the Home Building Industry” course from The NAHB University of Housing shows how to comply with OSHA regulations and to recognize and minimize those hazards most likely to cause accidents. The course teaches builders to protect their workers from harm and themselves from liability. This course is also available in Spanish. To find out where upcoming courses are being held, click here, or call 800-368-5242 x8154 for more information. Integrating Green Home Technologies Grows MarginsBy Lisa G. Matthews, CTS, Total Audio Video Systems Builder, electronics systems contractors (ESCs), new home owners and the environment all win with integrated green home technologies because a properly designed and integrated home technology system can generate additional profits for builders and ESCs, provide long-term savings for home owners and reduce waste and increase energy conservation for the environment. Many in the industry see the move to green as an oppor |