Nation's Building News Online: April 7, 2008

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Senate Focuses on Housing Fix to Jump Start the Economy

NAHB’s intensive long-term lobbying efforts paid dividends when the Senate last week unveiled its bipartisan blueprint for housing legislation that includes several association priorities:

  1. FHA modernization. The maximum Federal Housing Administration-insured loan would increase to 110% of a region’s median home price, up to a maximum of $550,000, with a minimum downpayment of 3.5%, up from 3% currently. When a temporary limit in the economic stimulus package of $729,000 for high-cost areas expires at the end of this year, the FHA limit is set to return to 95% of the regional median home price, up to $362,000.

  2. Home-buying tax credit. Home buyers would receive a $7,000 tax credit spread out over two years for purchasing homes in foreclosure or when foreclosure proceedings have begun.

  3. Net operating loss (NOL) carryback. Businesses that lose money in 2008 and 2009 would be able to use those losses to offset taxes they paid for the previous four years, compared with the two-year carryback allowed under current law.

  4. Mortgage revenue bonds. States would be provided new authority to issue $10 billion in bonds to be used to refinance subprime loans, mortgages for first-time home buyers and multifamily rental housing.


The legislation, entitled the Foreclosure Prevention Act of 2008, would also:

  • Provide local governments with $4 billion in Community Development Block Grants, which could be used to purchase and rehabilitate foreclosed properties.

  • Allow home owners who do not itemize their taxes to deduct up to $500 ($1,000 for married couples filing jointly) worth of property taxes.

  • Provide $100 million in additional funding for housing counseling for mortgage borrowers at risk of default.

  • Give soldiers returning from service more time before lenders can start foreclosure proceedings; it would also increases the VA loan guarantee amount.


This bill is an important first step in the process of enacting comprehensive housing legislation that will shore up the nation’s housing industry and the economy. It is anticipated that the Senate could hold a final vote on this measure as early as this week.

Meanwhile, House leaders are signaling tentative signs of support for the Senate measure but also indicating that changes will have to be made as they work to prepare their own housing solution. For example, House Financial Services Committee Chairman Barney Frank (D-Mass.) has said that he wants to go further to overhaul the FHA and plans to hold hearings on his foreclosure bill this week.

The House Ways and Means Committee is also expected to unveil housing-related tax legislation this week. NAHB is working closely with the House to ensure that NAHB's priorities are included in the bill.

“The Senate is to be commended for efforts undertaken on a bipartisan basis to advance a much-needed housing bill,” said NAHB President Sandy Dunn. “As the legislative process moves forward, NAHB will continue to work with Democratic and Republican lawmakers in both chambers with the goal of enacting the best possible legislation for housing and the economy — including a more robust home buyer tax credit with broader applications.”

After the Senate bill was introduced, NAHB sent a letter to Majority Leader Harry Reid (D-Nev.) and Minority Leader Mitch McConnell (R-Ky.) praising the Senate for moving forward on this carefully crafted compromise.

NAHB urged Senators to oppose amendments that could unravel the bipartisan agreement, such as a proposal put forth by Sen. Richard Durbin (D-Ill.) that would alter how primary residency mortgages are treated during bankruptcy. A follow-up letter was sent to every Senator opposing the Durbin amendment and designating it as a “key vote” because of the potential of this amendment to cause renewed turmoil in the credit markets. In a victory for NAHB, the Durbin amendment was subsequently tabled on a 58 to 36 vote.

NAHB is currently tracking several amendments that are expected to come up for a vote this week in the Senate. Of particular interest are amendments to expand the home buyer tax credit, attach the House-passed GSE reform bill and strike the NOL provisions.

A letter was also sent to the Senate leadership refuting accusations by the Laborers International Union of North America (LiUNA) that the net operating loss carryback provision was a bailout for the housing industry.

LiUNA had distributed a document on Capitol Hill entitled “A Multi-billion Dollar Bailout for Those at Fault: Corporate Homebuilders, the Housing Crash and the Mortgage Crisis.” NAHB noted that NOL is a “well-accepted economic stimulus proposal for responding to economic crises and is critical to helping home builders of all sizes to weather this economic storm.” The NAHB letter went on to rebut point-by-point every allegation made in the LiUNA document.
 
On the Public Affairs front, NAHB CEO Jerry Howard embarked on a financial news media tour in New York earlier last week to discuss the association’s housing priorities and policy initiatives being debated on Capitol Hill. Howard did a live studio interview on CNBC’s Closing Bell with Maria Bartiromo and was also interviewed by the LA Times, CQ, AP, Bloomberg, CNN Money and Politico.

After the Senate plan was unveiled, Howard provided NAHB’s perspective on the legislation in interviews with Bloomberg TV, CNN, AP, Roll Call, Nightly Business Report, CNN Money and Builder magazine. In addition, NAHB Chief Economist Dave Seiders discussed the Senate housing bill on CNBC’s Closing Bell.

Continuing its ongoing ad campaign calling on Congress to move quickly to jump-start housing and the economy, NAHB ran an ad in the March 29 and April 5 editions of the National Journal urging lawmakers to “act now to break the downward spiral in the housing market before it is too late.”

For more information on the Senate housing bill, e-mail Greg Brown at NAHB, or call him at 800-368-5242 x8421. To learn more about the Durbin bankruptcy bill, contact J.P. Delmore, x8412.

Albany Builders Put Strength of Their Market in the News

Media coverage of the national housing downturn was having a negative impact on the Capital Region Builders & Remodelers Association’s (CRBRA) market.

But in reality, the region — which consists of the New York communities of Troy, Schenectady, Albany and Saratoga County — is attracting new high-tech businesses and has weathered the downturn much better than other areas of the country. Home prices, payroll employment and population all rose in the past year.

“We avoided the big run-up in prices and the flood of speculators and investors in the formerly super-heated markets,” said Todd Stewart of Stewart Construction Inc., president of the CRBRA.

The association’s public relations committee decided to create a campaign to reach out to the community with facts and information. "Building Momentum in the Capital Region" was launched on March 18 with a “Real Estate Reality” symposium for builders, Realtors®, business leaders, local government officials and the media.

The invitation-only symposium sold out in three days.

“The 500 attendees were impressed and invigorated about the Cap Region growing strong,” said Pam Krison, executive officer for the CRBRA. “In fact, we ran out of space and had approximately 200 people on a waiting list.”

Panelists included representatives from Rensselaer Technology Park, the Center for Economic Growth and the Luther Forest Technology Campus, who spoke about favorable growth indicators such as General Electric’s construction of a $165 million facility and another tech company’s proposal to build a multi-billion-dollar chip manufacturing plant.

The Albany Times Union and the Schenectady Gazette covered the symposium with headlines including “Builders Make a Pitch for Hope” and “Builders Bullish on Region’s Prospects.”

Members funded the $30,000 needed to implement the campaign and were deeply involved in every aspect of the campaign’s development.

“One of the secrets to this success is a dynamic, talented and committed committee,” said Krison. “Over the past three to four months they have devoted many hours each week to make every facet of this campaign the best possible with our limited funds.”

The next phase of the campaign will consist of television and Internet advertising and a special section in the Times Union.

Krison said that the local press now reaches out to them to get the local story. “We are getting tremendously positive press almost on a daily basis now,” she said.

Another benefit of the campaign and symposium has been a stronger collaborative relationship with the local Realtors® association. “And our members see and appreciate the positive results,” added Krison, “which is most valuable during these economic times.”

Members and local associations finding themselves in a similar situation as the builders in Albany can turn the situation around by employing information and resources from NAHB to combat negative media stories and restore the confidence of hesitant buyers.

Click here to be linked to Myth Buster Resources.

Click here to read stories about other HBAs that have successfully combated negative media. 

For more information on the Myth Buster Resources, e-mail Gwyn Donohue at NAHB, or call her at 800-368-5242 x8447.

EPA Releases Lead Paint Rule

The U.S. Environmental Protection Agency's Lead: Renovation, Repair and Painting rule governing professional remodelers doing work in homes where there is lead-based paint was signed by EPA Administrator Stephen Johnson last week and will take effect in April 2010.

The rule addresses remodeling and renovation projects disturbing more than six square feet of potentially contaminated painted surfaces for all residential and multifamily structures built prior to 1978 that are inhabited or frequented by pregnant women and children under the age of six.

“The rule is a positive step after so many years of delay,” said Lonny Rutherford, CGR, CAPS, the NAHB Remodelers chairman and owner of Legacy Construction in Farmington, N.M. “We all need to work together to help reduce the incidence of lead-based paint exposure to young children.”

The rule requires a cleaning inspection after the work is completed and grants the remodeler flexibility in determining the size of the work area, which can reduce the size of the area subject to containment.

The EPA rule also lists prohibited work practices ― including open-torch burning and using high-heat guns and high-speed equipment such as grinders and sanders unless equipped with a HEPA filter.

Additionally, the rule establishes required lead-safe work practices, including posting warning signs for occupants and visitors; using disposable plastic drop cloths; cleaning the work area with HEPA vacuuming and wet washing; and individual certification through a training course.

A 2006 NAHB study on lead-safe work practices showed that a home was better off after a remodel than before, as long as the work was performed by trained remodelers who clean the work area with HEPA-equipped vacuums, wet washing and disposable drop cloths.

“NAHB Remodelers supports lead-safe work practices and training,” said Rutherford. “We need to make sure that the cost of compliance is not so high as to discourage home owners from hiring a trained and certified remodeler. Otherwise, the rule creates a reverse incentive for consumers to do the work themselves and risk lead-paint exposure.”

NAHB Remodelers currently is looking at the training requirements and investigating the development of a lead-safe work practices training course for members, he added

Prior to being signed by the EPA administrator last week, the rule underwent final review by the White House Office of Management and Budget (OMB). At that time, NAHB members met with OMB staff to outline the association’s concerns about the rule and cautioned regulators against imposing inappropriate and costly regulatory burdens on remodelers that would make it cost-prohibitive for consumers to hire trained professionals, or that could lead to further proliferation of potentially harmful do-it-yourself projects.

For more information on EPA's lead program in English and Spanish, and to obtain copies of the rule and information on how to comply, visit: www.epa.gov/lead.

For copies of the educational brochures on the program, call the EPA’s National Lead Information Center at 800-424-LEAD (5323).

NAHB Remodelers and NAHB staff will continue to examine the rule and provide more detailed information on it and how to comply in the coming weeks.

For more information, e-mail Matt Watkins at NAHB, or call him at 800-368-5242 x8327.

Up With the Downpayment

Sen. John McCain of Arizona, the presumptive Republican nominee, proposed something that no other major presidential candidate has advocated in decades: raising minimum downpayment levels for home mortgages. Even the 3% minimum required by the FHA would be raised under his plan. McCain also said the giants of the mortgage industry, Fannie Mae and Freddie Mac, “should never insure loans when the home owner clearly does not have skin in the game.” His rationale for tightening up downpayments is that he thinks a key contributing factor to the national mortgage crisis was the tiny, or nonexistent, equity contributions required by lenders during the boom years. Whatever politicians decide to do, the private marketplace is heading back to more traditional standards, where equity up front was the rule. (www.washingtonpost.com)
Washington Post (4/5/08); Kenneth R. Harney

A Road Not Taken by Lenders

According to a report on mortgage fraud released by the Financial Crimes Enforcement Network, a unit of the Treasury Department, only 31% of suspected fraud was detected before loan disbursements in the 12 months ended March 31, 2007. On stated income loans, only 19% of the cases of suspected fraud were detected before the loans were financed, versus 33.5% on more fully documented loans. Yet 43% of the case samples in the study involved misrepresentation of income, assets or debts. The degree to which mortgage lenders and Wall Street looked the other way on borrowers’ incomes, a sin of commission given the ease with which they could have been checked, raises an intriguing question. Can investors stuck with losses on these loans sue to recover their investments based on this due-diligence failure? After all, mortgage originators made representations and warranties to investors that the quality of these loans was good when it clearly was not. And they made these representations knowing that they had not bothered to conduct quick and easy borrower-income checks. (www.nytimes.com)
New York Times (4/6/08); Gretchen Morgenson

Lenders Retreat as Housing Market Plummets

In thousands of ways big and small, across the San Francisco Bay Area and the nation, lenders are retreating after booking losses in the mortgage market. Households and businesses are suffering the consequences as money becomes tougher to get and more expensive to borrow, in turn spelling bad news for the economy. By 2004, Americans were taking out $180.5 billion in home equity loans, according to the Federal Reserve. Much of that cash was pumped right back into the economy, buying cars and furniture, renovated bathrooms and kitchens, airline tickets and hotel rooms. But as home prices started to sink, home owners had less equity to draw on. Lenders including Bank of America, Washington Mutual and Countrywide Financial cut back on home equity loans to reduce their exposure to the housing market. By the last three months of 2007, home equity borrowing dropped to an annual rate of $26 billion, the Fed calculates, and it has undoubtedly fallen further in 2008. Warren Leiber, a landscaping contractor, estimates that 80% of his clients used home equity loans or mortgage refinancings to pay for his services in which a typical job costs $30,000 to $40,000. Now, with that tap choked off, his strapped clients are backing off, knocking $10,000 or $20,000 off their work orders, if they go ahead at all. (www.sfgate.com)
San Francisco Gate (4/6/08); Sam Zuckerman

Housing Troubles Immobilize U.S. Labor

When housing is not an obstacle, more than five million Americans, nearly 4% of the U.S. workforce, move annually from one place to another. Now this mobility is increasingly restricted. Unable to sell their homes easily and move on, tens of thousands of people are making the labor force less flexible just as a weakening economy puts pressure on workers to move to wherever companies are still hiring. No government agency counts those who move for jobs, either across state lines or just from one town to another. The Census Bureau, however, calculates how many people move across state lines for all reasons, and that number fell by 27% last year, after climbing by almost that percentage for each of the previous three years. With homes changing hands easily in a booming market, interstate migration reached 2.2 million people in 2006, excluding moves that followed Hurricane Katrina. As the U.S. economy and home prices began to unravel in 2007, however, interstate migration plunged to 1.6 million people. Mark Zandi, chief economist at Moody’s Economy.com, said he would not be surprised to see record low domestic migration this year. (www.iht.com)
International Herald Tribune (4/3/08); Louis Uchitelle

Developer Defies the Downturn

Long-time home builder Jeff Blandford is opening his 717-acre, 1,200-home master-planned community of Mountain Bridge in northeast Mesa, Ariz. as headlines call attention to rising home foreclosures and personal bankruptcies. “The goal is to get a momentum going, and the market will eventually correct itself,” he said. The $75.2 million he paid to acquire the desert parcel was too much, he said, “but it will be worth it five years from now.” The developer can afford the wait, he said, and is offering the first customers homes in the mid-$200,000 range, a reduced price that is surprising for the type of development and its 304 acres of open space. “We’re not one of those builders in a big hurry,” he said. “We’re not leveraged. If we chose to be highly leveraged, this wouldn’t happen.” Realtor® Carol Schwan said that customers aren’t breaking down the doors, but property is moving well at Fulton Ranch, a similar community in the area. “A year ago this month, we opened the Island, a gated community of custom-home sites, and we have sold and closed on 23 lots,” she said. “That’s more than a third of the total number of these half-acre lots for multimillion-dollar homes.” Sales of production homes, with prices ranging from $539,400 to $690,400, are averaging about two per month, Schwan said. (www.azcentral.com)
Arizona Republic (4/6/08); Art Thomason

Judges Agree: Roommates.com Is a Very Discriminating Service. Maybe Too Discriminating ...

The 9th U.S. Circuit Court of Appeals decided that a Web site may be found liable for violating fair housing laws by matching roommates according to gender, sexual orientation and parenthood. The judges said a site called Roommates.com may be brought to trial for possibly violating anti-discrimination laws because it requires users to provide information about gender, sexual orientation and whether they have children, and then uses the information to screen people for matches. “A real estate broker may not inquire as to the race of a prospective buyer, and an employer may not inquire as to the religion of a prospective employer,” Chief Judge Alex Kozinski wrote for the majority. “If such questions are unlawful when posed face-to-face by telephone, they don’t magically become lawful when asked electronically online.” (www.laist.com)
Laist (4/4/08); Ross A. Lincoln

Health of Home Building Industry Key to Our Economy

 

 

By
Sen. Kay Bailey Hutchison
(R-Texas)

 

 

As home sales and asset prices have declined across the country, many home builders are operating at a financial loss and, without help, some will collapse within the year. We cannot accept that result because the economic ramifications would be severe.

In Congress, we are closely monitoring the economy and considering a prescription for our economic ills. We need to be careful that the economic medicine that we prescribe does not make things worse. The Senate is debating legislation that addresses the housing industry and offers aid to home owners. As we consider this legislation, I strongly believe we must extend the ability for home builders to carry back their losses over a greater number of years.

The economic stimulus package passed by Congress earlier this year did not address the home building industry with bonus depreciation or small business expensing provisions.

While home builders can carry forward their losses, this allowance will not provide immediate assistance during the current difficult period. Additionally, present law only allows business losses to be deducted from taxes paid from the previous two years.

This combination provides little relief for struggling home builders and is perilous not only for this industry, but also for our national economy.

We should provide incentives for investment and encourage business decisions that will strengthen the economy.

Without this prudent accounting change in the timing of tax assistance, home builders will feel pressure to sell properties in an already oversaturated market to generate revenue to offset losses on their balance sheets. This can cause the value of every home in the area to plummet, causing a ripple effect in the economy.

Passing a net operating loss carry-back provision would provide immediate relief for companies as a rebate on taxes paid in previous years and provide needed access to cash in a down period, which will spur growth.

Further, the benefit to claim these losses is already allowed on a carry forward basis.  Changing the timing of this benefit to help home builders at a time when they need it most is sound tax policy, and one I strongly endorse.

Kay Bailey Hutchison is the chairman of the Republican Policy Committee and the senior senator from Texas.

 

‘No Match’ Rule Reissued While Injunction Remains in Place

The controversial federal no-match rule — which would compel employers to fire workers who are unable after 93 days to resolve a mismatch between their name and Social Security number in the Social Security Administration's (SSA) data base — is back in the news.

Touted by the Department of Homeland Security (DHS) as a means of uncovering illegal immigration status, the original rule was scheduled to go into effect last September, but was blocked by a coalition of civil rights organizations, businesses, labor groups and the U.S Chamber of Commerce, with support from NAHB.

The rule’s opponents cited rampant inaccuracies in the SSA records, a failure to consider its cost to businesses and its potentially disastrous impact on legal workers who could be fired. A federal judge agreed, and issued a nationwide preliminary injunction barring the rule from taking effect and also preventing SSA from mailing “no-match” letters to employers.

DHS responded by withdrawing the original no-match rule, promising to reissue it after making revisions designed to address the concerns raised by the federal court, including conducting an analysis of the regulatory costs to small businesses.

However, when the department reissued the rule in a March 26 proposal in the Federal Register, the content was the same as in the original, although it was accompanied by some “clarifications.” DHS is in the process of analyzing the regulatory burden of the rule, and preliminary data estimates that the annual cost to businesses will range from $3,000 to $33,000, depending on the number of employees.

Although promised revisions were not made in the "supplemental proposed rule," the proposal is subject to a complete "start from scratch" rule-making process, including an opportunity to submit comments.

NAHB members are encouraged to submit comments by April 25 on the rule and its impact on their business.

To submit comments, click here to go to The Federal eRulemaking Portal. Follow the online instructions for submitting comments.

Or mail a letter to: Marissa Hernandez, U.S. Immigration and Customs Enforcement, 425 I St., NW, Suite 1000, Washington, D.C. 20536. To ensure proper handling, reference DHS Docket No. ICEB– 2006–0004 on the correspondence.

For assistance in submitting comments, e-mail A.J. Holliday at NAHB, or call him at 800-368-5242 x 8305.

The rule-making process will take many months to complete. However, comments must be filed very soon. Meanwhile, the federal injunction barring implementation of the original rule and the mailing of no-match letters remains in effect. (For a detailed explanation of the original no-match rule’s requirements, click here.)

For more information, e-mail David Crump at NAHB, or call him at 800-368-5242 x8491.



Mark Your Calendar for the 2008 NAHB Legislative Conference

The 2008 NAHB Legislative Conference provides a unique opportunity for builders to meet with their members of Congress, discuss the issues that affect their business and bottom line and establish a lasting relationship with their elected federal officials.

The day-long conference on Wednesday, April 30 coincides with the NAHB spring board meeting in Washington, D.C.

Builders are encouraged to travel to the nation’s capital to urge their representatives and senators to support policies that stabilize housing, restore confidence in the credit markets and bolster the nation’s economy.

Members of Congress are being urged to:

  • Support a temporary home buyer tax credit to boost sales, reduce excess inventory in housing markets and halt the dangerous erosion of house prices

  • Enact Federal Housing Administration modernization to assist first-time and moderate-income home buyers and alleviate the mortgage credit crunch

  • Adopt comprehensive reform legislation for Fannie Mae and Freddie Mac to enable these financial institutions to provide badly needed liquidity to the mortgage market

  • Expand the mortgage revenue bond program to help strapped borrowers refinance existing loans

  • Allow businesses to carry back net operating losses for five years to save jobs and help them weather the economic storm


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.

Plan to Attend the 2008 NAHB Legislative Conference


The 2008 NAHB Legislative Conference provides a unique opportunity for builders to meet with their members of Congress, discuss the issues that affect their business and bottom line and establish a lasting relationship with their elected federal officials.

The day-long conference on Wednesday, April 30 coincides with the NAHB spring board meeting in Washington, D.C.

Builders are encouraged to travel to the nation’s capital to urge their representatives and senators to support policies that stabilize housing, restore confidence in the credit markets and bolster the nation’s economy.

Members of Congress are being urged to:

  • Support a temporary home buyer tax credit to boost sales, reduce excess inventory in housing markets and halt the dangerous erosion of house prices

  • Enact Federal Housing Administration modernization to assist first-time and moderate-income home buyers and alleviate the mortgage credit crunch

  • Adopt comprehensive reform legislation for Fannie Mae and Freddie Mac to enable these financial institutions to provide badly needed liquidity to the mortgage market

  • Expand the mortgage revenue bond program to help strapped borrowers refinance existing loans

  • Allow businesses to carry back net operating losses for five years to save jobs and help them weather the economic storm


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.

Eye on the Economy: Policy Support for Housing Needed

Available data suggest that gross domestic product (GDP) growth will be only slightly positive in the first quarter of this year — we’re estimating 0.3% ― following the “final” estimate of 0.6% growth for the final quarter of 2007.

This pattern of growth, which most likely will extend into the second quarter, is consistent with moderate declines in payroll employment as well as increases in the unemployment rate during the first half of this year.

Whether or not the business cycle dating committee at the National Bureau of Economic Research will eventually identify an economic recession in 2008 is an open question.

We continue to say “no,” but it’s a very close call. The ultimate outcome will depend heavily on the effectiveness of the recently enacted economic stimulus legislation, dominated by more than $100 billion in personal income tax rebates that will begin in May.

The chances for recession rise dramatically if consumers simply sit on the money, and recent deterioration in measures of consumer confidence and sentiment suggest that the impact of the tax rebates may be quite muted.

Consumer Confidence and Sentiment Continue to Weaken

The Conference Board’s measures of consumer confidence and the University of Michigan’s consumer sentiment index both weakened in March, particularly the components dealing with expectations for future economic conditions.

Falling prices for homes and equities, record-high energy costs, a weakening job market and a drumbeat of bad economic news in the media obviously are sapping the spirits of the American consumer.

The fate of the current economic expansion depends critically on personal consumption expenditures (PCE), which account for about 70% of total GDP. PCE growth was robust during the 2004-to-2006 period and even in the early part of 2007, but growth has been tapering down since then. Indeed, real PCE growth was slightly negative in January and dead flat in February.

The data through February point toward roughly 1% growth in real PCE for the first quarter as a whole, probably enough to keep the economy out of recession, but the confidence and sentiment measures suggest that PCE could contract seriously in March.

Key Inflation Measures Recede, Much to the Fed’s Liking

The weakening economy is having some beneficial effects on the inflation front. The core consumer price index (excluding food and direct energy prices) decelerated in February to a 2.3% pace (year-over-year), falling back within the Fed’s apparent tolerance range for this measure.

The Fed’s favorite inflation gauge, the core price index for personal consumption expenditures, slipped to a 2.0% pace (year-over-year) in both January and February, returning to the upper end of the Fed’s apparent comfort zone for this key measure.

The Fed has been projecting a slowdown in core PCE inflation in 2008, and that pattern apparently is materializing despite inevitable leakage into the core from high food and energy costs and despite some inflationary impulse from the weakening dollar through rising import prices.

At least for now, the inflation picture clears the way for further easing of monetary policy to counter the weakening economy and ongoing strains in credit markets.

We continue to expect half-point cuts in both the federal funds and discount rates at the conclusion of the next meeting of the Federal Open Market Committee (FOMC) on April 30.

Home Prices Are Falling Faster and in More Places

The decline in national average house prices has been gaining momentum, and price declines are showing up in more and more places as the national downswing deepens.

The S&P/Case-Shiller Home Price Index for 20 large metro areas showed a year-over-year decline of 10.7% in January. On a seasonally-adjusted basis, this measure was down by 11.7% from the peak in mid-2006 and the annualized rate of decline for January came to nearly 24%. Furthermore, 19 of 20 areas have been contracting systematically since last September and all areas are down since last November.

The monthly national house price index produced by the Office of Federal Housing Enterprise Oversight, based on purchase transactions financed by mortgages held or securitized by Fannie Mae and Freddie Mac, fell by 3.0% on a year-over-year basis in January and declined at a seasonally adjusted annual rate of 13% for the month.

This data system essentially covers the national “conforming” mortgage market and excludes jumbo mortgages as well as most subprime mortgages.

The median price of existing single-family homes sold in February was down by 8.7% on a year-over-year basis, according to the National Association of Realtors®. The median sales price was up slightly in the Northeast region but down in all other regions of the country — paced by a 13.8% setback in the West.

A Mixed and Confusing Pattern of Home Sales

Sales of new homes continued to trail down in February, falling by 1.8% to a level that’s 30% below a year earlier and 58% below the peak in mid-2005. On the other hand, sales of existing single-family homes moved up by 2.8% in February, following a slight increase in January. The February level was only 23% below a year earlier and 30% below the peak in 2005.

There are some definitional differences between the data series for new and existing home sales (contracts signed vs. closings), but that shouldn’t account for the different patterns of movement during the contraction.

The more rapid decline in new-home sales from the 2005 peak, as well as the more rapid increase in new-home sales during the earlier expansion phase of the cycle, may simply reflect heavier involvement of investors/speculators in the new-home market during the boom and their rapid exodus during the bust.

With respect to the most recent divergence in movement between new and existing homes sales, the relative strength of existing home sales may simply reflect resales of homes taken by lenders during the rising wave of foreclosures — hardly a sign of market vitality.

Homes sold through auctions apparently fall through cracks in the data systems, but foreclosed homes that are listed for sale apparently are counted in the existing-home sales figures.

Housing Affordability and Home Buying Conditions Improve, But…

The housing affordability index (HAI) by the Realtors® has been on a steady climb since last August, and in February the HAI got back to the level that had prevailed in early 2004 — just prior to the massive downslide in this measure. Recent improvements have been driven by large declines in median home prices and mortgage interest rates as well as by growth in median family income.

The University of Michigan’s home buying conditions index (HCI), based on the monthly surveys of consumer sentiment, also has climbed off the deck since last summer, although this measure remains well below the highs of 2002 to 2004.

More than half of consumers saying that home buying conditions were “good” in February cited lower house prices, and about one-fourth cited low interest rates.

The major rebound in the HAI and the lesser rebound in the HCI have not yet been reflected in actual home sales. One key reason is a dramatic tightening of mortgage lending standards, as reflected in higher downpayment requirements, lower allowable debt payment-to-income ratios and higher required credit scores.

The HAI simply cannot capture shifts in these conditions, and it’s likely that most consumers who are rating home buying conditions for the University of Michigan are not fully aware of what’s happened to mortgage lending standards.

Bernanke Stresses Seriousness of Housing Contraction

Testifying before the Congress’ Joint Economic Committee on “The Economic Outlook” last week, Fed Chairman Ben Bernanke said that the near-term economic outlook has weakened, relative to projections released by the FOMC at the end of January and conceded that financial markets remain under considerable stress despite recent Fed actions to inject liquidity and stabilize the situation.

In response to a question at the hearing, Bernanke said that “recession is possible” in 2008, although the Fed’s baseline forecast has little or no growth in the first half of this year, stronger growth in the second half ― largely due to stimulative monetary and fiscal policy — and essentially trend growth in 2009. This pattern is similar to NAHB’s baseline (most probable) forecast.

Bernanke stressed that the housing contraction is the biggest issue facing the economy and the financial markets, and he added that the timing of the housing market recovery will largely determine the timing of the pickup in overall economic activity.

With respect to the ongoing turmoil in financial markets, Bernanke fingered the ongoing deterioration of mortgage credit quality and associated write-downs of mortgage-related portfolios at large financial institutions. On this front, he noted that falling house prices are the main culprit and he suggested that the key to stabilization of credit market conditions is stabilization of house prices. In this regard, he failed to offer a forecast of house prices.

In response to questions about the housing contraction, Bernanke stressed that Congress should take steps to support new lending and home buying as well as to help limit preventable foreclosures on outstanding mortgages. On the latter front, he has supported write-downs of underwater mortgages by investors/servicers and the use of FHA to insure replacement mortgages.

More Policy Support Needed for Housing

The Federal Reserve and the regulators of the three housing government sponsored enterprises (GSEs) recently took a number of important steps to shore up the U.S. housing finance system. These steps were necessary to buoy mortgage-backed securities markets and to encourage the GSEs to channel more funds into housing finance.

However, it’s increasingly obviously that neither the Fed nor the GSE regulators have the power to solve the core housing problem in the U.S. — a heavy overhang of supply and a dangerous downslide of house prices.

Congress and the Administration need to get in the game, taking prompt action to spur home buying and halt the upswing in foreclosures.

A temporary program of tax credits for home buyers definitely would spur buyer demand in short order.

Write-downs of mortgage principal for underwater loans, combined with FHA financing of replacement mortgages and some type of recapture arrangement, also are being discussed in policy circles and could be effective on the foreclosure front.

This measure would complement existing efforts (HOPE NOW and FHA-Secure) to deal with payment shock on subprime adjustable-rate mortgages.

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 April 2 edition. To subscribe to “Eye on the Economy,” click here.



Attend the Spring Construction Forecast Conference in April

Plan to attend NAHB's Spring Construction Forecast Conference on Thursday, April 24 at the National Housing Center in Washington, D.C. The conference brings together the nation's premier housing economists and finance experts for an in-depth examination of the economic outlook for the housing industry.

Can't attend? Watch the conference webcast live.

For more information, or to register for the conference or webcast, visit www.nahb.org/cfc.



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 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.




Attend the Spring Construction Forecast Conference in April

Plan to attend NAHB's Spring Construction Forecast Conference on Thursday, April 24 at the National Housing Center in Washington, D.C. The conference brings together the nation's premier housing economists and finance experts for an in-depth examination of the economic outlook for the housing industry.

Can't attend? Watch the conference webcast live.

For more information, or to register for the conference or webcast, visit www.nahb.org/cfc.



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.

Builder’s Tip: A Tangle-Free Way to Unroll Electric Cable

 

 

 

Click for larger image.

If you’ve ever pulled electric cable out of its coil in a random manner, you know how the wire loops can get curlier than Shirley Temple’s hair.

There is a better way to store and unroll the cable ― using a simple, handmade plywood spool.

  • As shown in the accompanying drawing, I made the spool a little larger in diameter than the coil — about 14 inches.

  • I sanded the edges of the plywood to avoid cuts and splinters and then drilled it for a length of sturdy dowel.

  • I made a space like the one shown in the drawing out of 1x stock to go between the disks.

  • I then screwed plywood blocks from opposite sides to the axle to unite the spool.


To use the spool, I hang the dowel from adjacent studs and unroll the cable. Or, I simply  tack the wire to the floor and then, with a good shove, roll the spool across the floor.

Either way, the wire is nice and straight.

— Michael A. Meredith, Springfield, Va.

Tips & Techniques provided by Fine Homebuilding.
©2008 The Taunton Press

To contact Fine Homebuilding, e-mail Christina Glennon.



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.

Four Simple Steps on How to Deal With Abusive Customers

By Tracey Gundersen, CEO, Warranty Management Technologies
Abusive clients are, unfortunately, a part of the new home customer service process, a tiny part, but a part nonetheless.

Establishing a procedure on how personnel should deal with abusive clients nurtures better long-term customer relationships. Look at a situation involving an upset and enraged customer as a chance to improve your product and service.

A written procedure guides your staff, reduces stress and may keep you out of legal hot water. After all, one enraged customer can drag down your entire warranty service department. Left unchecked, an irate customer can turn vengeful and destroy a company. 

When encountering abusive clients, Carol Smith, author of numerous best-selling new-home customer service books including “Meetings With Clients: A Self-Study Manual for a Builder's Frontline Personnel,” recommends the following four steps in order to avoid stressful situations:

  • Always conduct yourself in a business like manner.
    Instead of sarcasm, respond with healthy detachment. Avoid engaging in an argument and provide a realistic outlook. Don’t yell, use self control.

  • Establish boundaries and empathize with your client.
    Tell them in a normal tone of voice, “I understand that you're angry. I'm here to help. I do have limits on how we communicate. If you will stop (using that language, threatening me, intimidating, etc.), we can continue talking. Otherwise, I'll end this conversation and will call you tomorrow.”

  • If the client continues, end the conversation by calmly leaving the meeting or gently hanging up the phone.

  • Document the call on an incident report.
    Make sure to date and time the incident. Mark your calendar for a follow-up call.


Defusing a potentially nasty situation allows everyone to get their emotions under control and think rationally. We're here to solve problems, not compound them.

Now, doesn't that feel better than a swollen vein on your head?

Tracey Gundersen is the founder and CEO of Warranty Management Technologies, LLC, of Burnsville, Minn. The firm provides warranty process management software, consulting services and fully-outsourced customer service to new home builders. For more information, e-mail Gundersen, call her at 952-707-0725 or visit www.homsoft.com.



‘Meetings With Clients’ Tackles Issues Confronting Front-Line Personnel

Meetings With Clients: A Self-Study Manual for a Builder's Frontline Personnel,” available at BuilderBooks.com, covers four major issues confronting a builder’s front-line personnel: pre-construction meeting, frame stage tour, new home buyer orientation and warranty service.

Master each of these issues with step-by-step instructions on policies, procedures, predictable situations and how to handle problems that arise during orientation.

“Meetings With Clients” also serves as the self-study guide for candidates of certification as a customer relations professional.

To view or purchase this publication 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.

 


 

Enhance Customer Service With Publications From BuilderBooks.com

In trying economic times, strong customer service can be one of the best business-building strategies. BuilderBooks.com offers several publications on customer service so builders can start building strong relationships before breaking ground and turn customers into enthusiastic sales people.

Titles are available from authors such as Carol Smith, who intimately knows the industry and is a major participant in educational programs at the International Builders’ Show every year.

To view or purchase 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.

Submit Comments by June 1 to Update ‘Performance Guidelines’

 

 

 

Members are encouraged to submit comments by June 1 to update the "Residential Construction 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.

Home Automation Is a Smart Path to Going Green

With “green” now such a big buzz word in the industry and home owners becoming more interested in improving home efficiency, builders and remodelers should consider home automation features for their customers, if they haven’t already.

Home automation companies and systems have been making homes greener, almost by accident, for nearly a decade.

Builders and remodelers should talk to electronic systems contractors (ESCs) and integrators about home automation systems and energy management. You will be surprised at just how much money you could save your customers and how much convenience you can add to their lifestyle by offering home technologies and automated systems.

Energy Savings of 25% or More

Controlling the lights, HVAC systems, water heaters and even drapes and blinds can save home owners as much as 25% or more in electricity consumption. There are several ways to achieve this savings.

First, by controlling two of the largest energy consumers in the home — HVAC and water heaters ― you can cut usage by 15% to 20% (sometimes more).

 

 

Electronic Systems Contractor installing structured wiring.

HVAC Systems. Many new homes have two or more HVAC systems, each designed to heat and condition different zones in the house. While some home owners with these systems save energy by only controlling when the systems are on or off, additional energy savings can be achieved by comfortably cooling or heating those zones that are occupied and maintaining energy-saving conditions in the unoccupied zones like second-floor guest room areas, for instance.

Water Heaters. Electric water heaters are also major energy users (unlike on-demand and gas water heaters, which are more efficient).

Electric water heaters can be switched off for days when homes are unoccupied, but they require too much time and energy to reheat the water, so turning them on and off during the day is not energy-efficient.

Solar water heaters are a no-brainer today. These systems have no fuel costs at all, and home owners may be able to recoup the cost of the systems in as little as three years. These costs are also in line with on-demand and gas systems.

Drape and Blind Controls. Combining drape and blind controls with HVAC control — especially in homes with many windows or east and southeast facing windows ― can significantly reduce unwanted heat gain and HVAC cycling in “hot zones” of the house caused by sun exposure. Minimizing heat this way decreases HVAC usage and maximizes savings for the home owner.

Lighting. Lighting generally accounts for 10% to 20% of the home’s total electrical usage, but controlling lighting in large homes, or homes that have many lighting fixtures, can save a substantial amount of energy.

Typically, a lighting control system (including many dimmer systems) can turn on and off at preset dim levels.

Dimming lights can result in energy savings of nearly one-to–one. Dimming a light by 50%, for instance, saves roughly 40% of the wattage. The remaining 10% is wasted heat. So home owners with a houseful of 60- to 100-watt light bulbs can achieve substantial savings with a dimming system.

Once our customers have used their dimmer systems, they rarely turn their lights on to full illumination.

LED lighting that uses only 5% of the energy of normal bulbs can also bring home owners substantial energy savings. These systems have been improved to the point where they are achieving the quality, quantity and color of lighting that most home owners want.

 

 

A lving room with automated shades.

Now, all these systems may seem like they are complicated to set up, install and program ― and to those who don’t work with these systems daily, they can be. So, those tasks are best left to ESCs to handle.

Once these systems are properly in place, however, they are easy and intuitive to use, and mostly automatic — enabling home owners to realize substantial energy savings without having to become familiar with the intricacies of energy management.

Builders also should consider arranging for ESCs to have separate service contracts with their customers. Because ESCs have the knowledge and experience to answer customers’ questions and meet their needs, such an alliance should lessen technology service worries for builders and improve customer service.

Achieving Second-Home Energy Savings Remotely

One final point. Home automation systems can help second home buyers reduce and control their energy consumption and enhance their lifestyle comfort remotely — not a bad selling point for the systems or the homes.

With these systems, home owners can turn on water heaters and HVAC systems, have the house shutters and shades opened, the lights on and the house ready for their arrival by activating them by cell phone or computer. The home can be ready and waiting, as if they never left.  

None of this technology is new. Companies like mine have been connecting and installing these “green” features for nearly 15 years.

Dan Fulmer is president and founder of FulTech Solutions, a home technology installation firm headquartered in Jacksonville, Fla., and the College of Smart, a dealer licensing and training program. A nationally recognized expert and speaker in home automation, his company was awarded two 2006 CEA Mark of Excellence awards, the 2007 NAHB Innovative Housing Award and CEPro magazine’s Best of the Best Dealers. An NAHB member, Fulmer serves on the Home Technology Alliance. For more information, e-mail Fulmer at FulTech Solutions or call him at 904-992-6624; or visit www.fultechsolutions.com.

© Dan Fulmer, 2008. FulTech Solutions, Inc. All Rights Reserved.



Information About Home Technology Available From HTA

The Home Technology Alliance (HTA) is a partnership between NAHB and the Custom Electronic Design Installation Association (CEDIA) that was formed to position the housing industry to effectively meet the growing home buyer demand for home technology and provide maximum return on investment in the new home building and remodeling process.

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



CEDIA: A Source for Experienced ESCs

The Custom Electronic Design Installation Association (CEDIA) is a founding sponsor in the Home Technology Alliance and an international trade association of companies that specialize in designing and installing electronic systems for the home.

CEDIA members are established and insured businesses with bona fide qualifications and experience in this field. CEDIA serves as a source for Electronic Systems Contractors (ESCs).

For more information on CEDIA, visit the association’s Web site at www.cedia.org. To find an ESC, click here.



Attend the Green Building Conference in New Orleans

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.



‘Green Roof — A Case Study’ Delves Into Green Roof Construction

A green roof that combines aesthetics and mechanics has become the goal of many landscape architects. In “Green Roof — A Case Study,” available at BuilderBooks.com, author Christian Werthmann explains the history, methodology and design process of green roof garden construction ― providing a rich source of inspiration and technical knowledge in the process for anybody interested in this solution to many of the environmental challenges faced today.

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

Language Barriers Could Contribute to Job Site Fatalities

Foreign-born workers accounted for 29% of the fatalities in the residential construction industry, according to “Residential Construction Industry Fatalities 2003-2006,” a recently-released study commissioned by NAHB.

The study also found that workers of Hispanic origin accounted for 28% of the fatalities.

Foreign-born and Hispanic workers have significantly higher representation in the construction industry than in the population at large.

2006 Census Bureau figures show that 11% of people living in the U.S. were born in other countries, while Department of Labor figures indicate that 28% of construction workers are non-native. The proportion of Hispanic workers in the construction trades — 28% — is also higher than in the general U.S. population (14.8%).

“Without safety training, residential construction sites can be very dangerous for any worker, regardless of their language skills or assigned task,” said Buck Roberts, president of A.B. Roberts Construction Company in Anderson, S.C. and chairman of NAHB’s Construction Safety and Health Committee.

“Since more than a quarter of the workers in our industry may not speak English as their first language, NAHB is creating many safety training resources in English-Spanish language formats for our members and their workers,” he said.

The safety 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.

The study also found that falls, which accounted for 45% of the industry’s reported deaths, were the most common cause of home building fatalities.

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.

Spanish-Language Safety Resources Available From NAHB

NAHB offers its members and affiliated home builders associations Spanish-language resources in a variety of formats, including books, videos, onsite training programs and Sed de Saber™-Construction Edition, a learn-at-home program from the Home Builders Institute (HBI) that teaches English to Spanish-speaking adults in the construction industry. HBI is the workforce development arm of NAHB.

BuilderBooks.com offers several safety-oriented Spanish-language instructional books and videos, including “Fall Protection Video, English-Spanish,” which includes identical 30-minute training videos in each language. 

NAHB and the NAHB Research Center also conduct fall protection training seminars in locations around the country for builders, trade contractors, supervisors and workers. The seminars are offered in both English and Spanish.

To learn more about the fall protection training program, and to see a list of scheduled seminar locations for 2008, go to 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.



Create a Safer Job Site

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.



Home Builders Institute Offers New Program to Teach Hispanic Adults English

Sed de Saber™-Construction Edition is an easy-to-use, take-home learning tool created exclusively for the construction industry by the Home Builders Institute to improve communication, quality and safety on the job site.

The product, now available at www.seddesaberconstruction.com, uses proven LeapFrog technology to allow workers to listen, record and play back their pronunciation of more than 500 vocabulary words and 340 phrases. Participants who practice 30 minutes each day will complete the program in just four months. Learning at home, on their own time, also eliminates scheduling conflicts.

Sed de Saber™-Construction Edition was developed by a team of subject matter experts assembled through HBI — including superintendents, craft skills experts, remodelers and builders — to ensure that the information is relevant to today’s home building workforce. To address worker safety issues related to the language barrier, HBI created a seventh book based entirely on the NAHB-OSHA Job Site Safety Handbook.

NAHB members can purchase the learning system, all seven books and a skills assessment to chart employee progress for $395 per kit. The non-member price is $495. Order today and empower your workers to learn English at www.seddesaberconstruction.com.

'EasyLiving Home' Program Appeals to 50+ Home Buyers

 

 

Wendt Bulders award-winning "EasyLiving Home" in Olde Town Grayson, Ga.

"EasyLiving Home" — a voluntary certification program for building, marketing and selling accessible homes ― is helping participating Georgia builders meet the needs of the fast-growing 50+ consumer market.

The program began about 10 years ago when Georgia builders were looking to develop a more cooperative relationship with regulators, advocates for the disabled and other stakeholders, according to Ed Phillips, executive vice president of the Home Builders Association of Georgia.

At that time, the advocates were pushing for legislation that would require all new one- and two-family homes to be accessible.

“We had an extremely adverse relationship with the disability advocacy folks,” Phillips said. “We sat down with them and said, ‘Let’s see if we can start building some trust.’”

“We all came to the table not knowing much about the other perspective,” Phillips said. “We learned a lot about their perspective and they learned a lot about our builders.”

“They began to recognize that our builders put a lot of money on the table when they build a home. They learned that, if builders spend money on some feature in a new home, then they need to have a reasonable expectation that consumers will be interested in that feature,” he said.

The home builders offered the idea of a voluntary program. The disability advocates suggested that the program be simple and easy to follow so that more home builders would participate. They found common ground and started the "EasyLiving Home" program.

Today, more than 40 Georgia builders participate, with 4,000 new "EasyLiving" homes planned for this year. In addition, the program has expanded to New Hampshire and Texas and builders in at least nine other states are actively considering it.

'EasyLiving' Design Features

To be certified under the "EasyLiving Home" program, homes must include what Phillips said are three simple design features that can make a big difference for home buyers:

  • Easy Access ― a step-free entrance into the central living area of the home from a driveway, sidewalk or firm route into the main floor.

  • Easy Passage — ample room to pass through doorways on the main floor.

  • Easy Use ― a bedroom, kitchen, entertainment area and a full bathroom with sufficient maneuvering space for a wheelchair. These rooms all must be located on the main floor and accessible via the step-free entrance.


The fast-growing 50+ market is leading more builders to look at the program and its simple requirements, Phillips said.

One of the winners of the 2007 Livable Communities Award, co-sponsored by AARP and NAHB, was an  "EasyLiving Home" in Grayson, Ga., built by Wendt Builders. The winning home was featured in Nation’s Building News earlier this year.

But the program and homes appeal to the larger market as well.

“Some of the people who have chosen to buy an "EasyLiving" home are younger families with children,” said Rebecca Stahr, president and CEO of LifeSpring Environs Inc., a marketing and design consulting firm in Atlanta. “The features of these homes touch everybody. When we opened the first "EasyLiving" homes, the movers were really struck by the convenience.”

Many buyers like the homes built under the program because they recognize that it will enable them to stay in the home as they get older, Phillips said.

“Once builders get involved, they will see that the "EasyLiving Home" is just the beginning of what they can do and what they can offer, at very little cost, to build a  home that will meet the needs of any age group,” said Stahr, who is active in NAHB’s 50+ Housing Council.

Builders like the fact that the program is voluntary, Phillips said. Even more important, with good planning, the cost to meet the program’s design requirements “can be negligible. These changes are a win for everybody.”

“Our guys who are building these homes now have some differentiation from the house next door, and that makes a difference in this market,” Phillips said. “It’s petty cool to be able to set yourself apart when your cost is negligible.”

Phillips said he believes that the more builders look at the program, the better they will understand its value.

“We have a lot of states that want to replicate this program. Once the market says, ‘This is what we want,’ then the builders will no longer feel that they are risking their capital on something new and unproven,” Phillips said.

“For any home builders association that may be considering this program, I would recommend that they talk to the builders who have tried it,” he said. “Those builders see it as a paradigm shift.”

Stahr said that not enough homes on the market today offer the key features of "EasyLiving" homes — no-step entries, wider doorways and hallways and a master bedroom suite on the main floor. The homes that offer these features will have a competitive advantage, she said.



Attend 50+ Housing Symposium in New Orleans, May 19-21

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 register, or for more information.



Earn CAASH Credits at Building for Boomers & Beyond

The three required courses for the Certified Active Adult Specialist in Housing (CAASH) designation will be held Saturday, May 17 and Sunday, May 18 at the 2008 Building for Boomers & Beyond: 50+ Housing Symposium in New Orleans.

The CAASH designation gives housing professionals serving this rapidly burgeoning market the essential knowledge, tools and skills that will help them succeed.

To learn more about CAASH, visit www.nahb.org/CAASHinfo.



Find Out What the 45+ Housing Market Wants

Right House, Right Place, Right Time: Community and Lifestyle Preferences of the 45+ Housing Market,” available through BuilderBooks.com, will help 50+ housing professionals determine the right design, home features and amenities to attract boomer home buyers in their market.

Margaret Wylde guides readers through the latest survey results on this important consumer group and explains what their responses mean for today’s and tomorrow’s home building industry. 

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

Women Remodelers Honored for Community Contributions

 

 

Toni Wendel

Ilone “Toni” Wendel, president of Olde World Builders and Remodelers, did not expect to be named one of New Orleans’ “Women of the Year” recently by New Orleans CityBusiness, the region’s business newspaper.

“I was totally blown away,” said Wendel, after being honored, along with other several other New Orleans business women, for her success in business and her contributions to the community.

Wendel became president of her husband’s company and got a general contractor license of her own when he became ill many years ago. After joining NAHB, she served as chairperson of the Remodelers Council of the Home Builders Association of Greater New Orleans, was a member of the council’s board of trustees and, two years ago, was elected president of the New Orleans HBA, only the second woman to serve in that office. 

Since Hurricane Katrina, Wendel has been active in all aspects of rebuilding New Orleans — from volunteering and taking part in rebuilding projects to ensuring that the rebuilding is being conducted correctly.

Among her rebuilding projects, Wendel worked on behalf of HomeAid to renovate the 4,000-square-foot, 24-bed women’s shelter at the historic New Orleans Rescue Mission, which was badly damaged by the hurricane. Several hundred volunteers were involved in the rebuilding effort, including college students who assembled furniture and adult volunteers from all over the country who helped with the carpentry.

Sitting on the Louisiana State Licensing Board for Contractors, Wendel has also been monitoring the remodeling industry and protecting New Orleans residents from shady contractors.

She also serves on a task force to improve the energy efficiency of rebuilt properties and is an advocate of increasing the availability of affordable housing.

 

 

Jan Williams

"New Orleans is coming back," Wendel said.

Williams Honored in New Jersey

Jan Williams, CGR, of williams-Builder in Robinsonville, N. J. also recently earned local community recognition when she was named one of Packet Publications’ “Outstanding Women.” Packet Publications published the Princeton Packet.

Williams joined her husband’s remodeling firm in the 1960s and rose to prominence in the industry.

She served as chairperson of the Remodelers Council of the Shore Builders Association of Central New Jersey, was named the “National Remodeler of the Year” by Remodeling magazine and was named a life director of both the NAHB Remodelers Council and the New Jersey Builders Association.



Increase Your Professional Credibility

The Certified Graduate Remodeler (CGR) designation emphasizes business management skills as the key to a professional remodeling operation.

Remodelers who earn the CGR become members of an exclusive national program and gain recognition as industry leaders.

To learn more about the CGR designation, visit www.nahb.org/CGRinfo, or call The Professional Designation Help Line at 800-368-5242 x8154.



'How to Find a Professional Remodeler' Available at BuilderBooks.com

"How to Find a Professional Remodeler," available at BuilderBooks.com, promotes the professionalism of your remodeling business by offering valuable advice to your customers on the process of selecting a remodeler.

The brochure guides consumers from the dream to the reality of having their homes remodeled by skilled and trained professionals. Sections include what to look for in a professional remodeler and what questions to ask.

To view or puchase this publication online, click here, or call 800-223-2665 to order.

 

 

Remodelers’ Spring Board Preview

NAHB Remodelers’ committee meetings will be held on Thursday, May 1 during NAHB's spring board meeting at the Hilton Washington Hotel in Washington, D.C.

The NAHB Remodelers Board of Trustees meetings and general sessions will be on Friday, May 2.

To download the NAHB Remodelers schedule at the spring board meeting, click here.

For information about the board of trustee meetings, click here.

For more information, e-mail remodel@nahb.com, or call 800-268-8451 x8216.

Join the Fun of Remodelers Night Out at Buffalo Billiards on May 1

Remodelers Night Out ― where remodelers can relax and network between meetings during NAHB’s upcoming spring board of directors meeting — will be 5:30-8:30 p.m. Thursday, May 1 at Buffalo Billiards in Washington, D.C.

Buffalo Billiards features pool tables, shuffle board, darts and 26 televisions for watching sporting events.

The fee for the evening is $40 per person and includes appetizers, beer, wine, soda and rail drinks.

To register for Remodelers Night Out, visit www.nahb.org/RNO.

Reservations must be received by April 24. Buffalo Billiards is at 1330 19th Street NW.



Earn NAHB’s New Green Designation at the National Green Building Conference

The Certified Green Professional (CGP) designation teaches builders, remodelers and other industry professionals techniques for incorporating green building principles into homes using cost-effective and affordable options.

Both required courses for the CGP will be held at the National Green Building Conference, May 11-13 in New Orleans.

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



Increase Your Professional Credibility

The Certified Graduate Remodeler (CGR) designation emphasizes business management skills as the key to a professional remodeling operation.

Remodelers who earn the CGR become members of an exclusive national program and gain recognition as industry leaders.

To learn more about the CGR designation, visit www.nahb.org/CGRinfo, or call The Professional Designation Help Line at 800-368-5242 x8154.



'How to Find a Professional Remodeler' Available at BuilderBooks.com

"How to Find a Professional Remodeler," available at BuilderBooks.com, promotes the professionalism of your remodeling business by offering valuable advice to your customers on the process of selecting a remodeler.

The brochure guides consumers from the dream to the reality of having their homes remodeled by skilled and trained professionals. Sections include what to look for in a professional remodeler and what questions to ask.

To view or puchase this publication online, click here, or call 800-223-2665 to order.

 

 

Learn to Design for Today’s Market at Design Institute

The 2008 NAHB/BALA Design Institute, held at the Green Valley Ranch Resort in Las Vegas on June 6-11, brings together builders and the industry’s top design professionals to explore the latest techniques and trends and see practical examples of design solutions for today’s market.

The design institute features learning through interactive design charettes, case studies and individualized breakout sessions.

This year’s sessions are designed to address the critical needs of builders and designers in today’s housing market:

  • Lessons in Design: How to Design Yourself Out of This Economic Downturn — This session will teach creative and practical single-family residential design solutions that will help participants differentiate themselves from the competition.

  • Interactive Design Charette — The charette gives builders the opportunity to participate in the design process from the earliest stages. Participants receive a market-specific program and are asked to create a single-family home design solution with the hands-on assistance of architects and interior designers.

  • Product Design Solutions: Design Breakout Sessions — Award-winning architects and interior designers will teach design solutions for target markets, design appeal for specific buyers and how design elements can make the sale.


Featured speakers include Paul Campbell, AIA, president of KEPHART Community • Planning • Architecture; Heather McCune, director of marketing for Bassenian/Lagoni Architects; and Paul Deffenbaugh, editorial director of Professional Builder magazine.

For more information or to register, visit www.nahb.org/DesignInstitute.

Register by Friday, April 11 to save $100 and be entered into a drawing to win a $200 gift certificate to any of Green Valley Ranch Resort’s nine restaurants.

Earn Designations at NAHB Conferences in New Orleans

NAHB members can earn credits toward valuable designations by taking required courses at two conferences in New Orleans in May hosted by The NAHB University of Housing.

Certified Green Professional

Members attending the National Green Building Conference on May 11-13 at the Sheraton New Orleans can take pre- and post-conference courses required for NAHB’s newest designation, Certified Green Professional (CGP).

The CGP designation teaches builders, remodelers and other industry professionals techniques for incorporating green building principles into homes using cost-effective and affordable options.

The courses available at the National Green Building Conference include:


A graduation ceremony for the inaugural class of Certified Green Professionals will also be held during the conference.

Additional CGP requirements can be found at www.nahb.org/CGPinfo.

In addition to the CGP courses, the conference will hold more than 40 education sessions, including several on the various aspects of the NAHB Green Building Program.

To register for the conference, visit www.nahb.org/GreenBuildingConference. Advance registration ends Friday, April 18.

Certified Active Adult Specialist in Housing (CAASH)

Members attending the Building for Boomers & Beyond: 50+ Housing Symposium on May 19-21, also at the Sheraton New Orleans, can take the three required courses for the Certified Active Adult Specialist in Housing (CAASH) designation, which gives housing professionals serving this rapidly burgeoning market the essential knowledge, tools and skills that will help them succeed.

The three pre-conference courses include:


Complete CAASH designation requirements can be found at www.nahb.org/CAASHinfo.

In addition to the pre-conference courses, the symposium offers a wide range of education sessions under six tracks ― design, development and operations, trends, sales and marketing, service enriched and, new this year, technology.

To register for the conference, visit www.nahb.org/Build4Boomers. Advance registration ends Friday, May 2.

For more information on all of NAHB’s 2008 conferences, visit www.nahb.org/Conferences.

Education Calendar

April 24

Spring Construction Forecast Conference

Washington, D.C.

April 29

Train the Trainer

Washington, D.C.

May 9-10

Green Building for Building Professionals

New Orleans, La.

May 11-13

National Green Building Conference

New Orleans, La.

May 14

Business Management for Building Professionals

New Orleans, La.

May 17

Selling to Active Adults

New Orleans, La.

May 18

Designing for the Active Adult

New Orleans, La.

May 18

Trends and Research Methods to Define the Active Adult Lifestyle

New Orleans, La.

May 18-20

Building Systems Councils Modular and Panel Plant Tour

Harrisburg, Pa.

May 19-21

Building for Boomers & Beyond: 50+ Housing Symposium

New Orleans, La.

June 1-3

Concrete Technologies Tour

Charlotte, N.C.

June 8-11

Design Institute

Las Vegas, Nev.

Aug. 5-9

Executive Officers Council Seminar

Providence, R.I

Sept. 3

Housing Credit Group Issues Forum

San Diego, Calif.

Oct. 3-5

National Conference on Membership

Des Moines, Iowa

Oct. 5-7

Sales and Marketing Exchange

Phoenix, Ariz.

Oct. 24-26

Custom Builder Symposium

Austin, Texas

Nov. 16-19

Building Systems Councils SHOWCASE

Memphis, Tenn.

Nov. 20-22

State and Local Government Affairs Conference

Memphis, Tenn.

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 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.

Record Crowd Expected at New Orleans Green Conference

 

Record attendance is expected at the 10th annual NAHB National Green Building Conference in New Orleans on May 10-13.

The conference features cutting-edge education sessions, tours and presentations on the latest advancements and trends in sustainable home building as well as the 10th Annual National Green Building Awards honoring the best in green building.

More than 60 education sessions will be offered on topics ranging from green remodeling and green building trends to building science, indoor air quality, marketing and local green building considerations.

The tour will provide a look at some of the latest green products and building techniques and a unique opportunity to learn about the ongoing rebuilding efforts in the area and the challenges faced by local builders.

Building professionals at the conference will learn about the new ANSI National Green Building Standard and how to get involved in the <