Nation's Building News Online: April 14, 2008Print All Articles Text Version |
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Flurry of Housing Measures Aim at Jump-Starting EconomyHousing legislation approved last week by the full Senate and House Ways and Means Committee will help to address the housing crisis and economic slowdown, according to the nation’s home builders. “These bills are an important step in the process of enacting comprehensive housing legislation that will shore up housing and the economy,” said NAHB President Sandy Dunn. “We will continue to work on a bipartisan basis with lawmakers in both chambers and with the Bush Administration to produce the most effective legislation to help ailing home owners and restore consumer confidence.” By an overwhelming 84 to 12 margin, the Senate approved H.R. 3221, the Foreclosure Prevention Act of 2008. The measure would:
House Housing Bill Advances The House Ways and Means Committee, meanwhile, approved its version of the housing stimulus bill, H.R. 5720, the Housing Assistance Act of 2008. The measure would create a first-time home buyer tax credit up to $7,500 for the purchase of any home for those who earn less than $70,000 annually ($140,000 for married couples), after which it phases out. Purchases eligible for the credit would be those made between April 9, 2008 and April 9, 2009. Home buyers would be required to repay the credit to the government, without interest, within 15 years. The legislation would also make significant enhancements to the Low Income Housing Tax Credit (LIHTC) and tax-exempt housing bond programs, which would increase their effectiveness. Protecting LIHTC properties from volatile area median income calculations, allowing the tax credits to offset the Alternative Minimum Tax (AMT) and ensuring that interest on tax-exempt housing bonds is not subject to the AMT will greatly improve the development, delivery and sustainability of affordable housing, said Dunn. Like the Senate bill, the House legislation would also provide for a temporary increase in state mortgage revenue bond authority and provide tax relief for home owners who do not itemize their deductions. Also last week, House Financial Services Committee Chairman Barney Frank (D-Mass.) held a two-day hearing on his plan to allow the FHA to insure up to $300 billion worth of refinanced loans.
Frank’s plan would put more federal money into the program and is projected to help 1 million to 2 million home owners. It is anticipated that Frank’s foreclosure bill will be voted on in committee during the week of April 21. Meanwhile, Senate Banking Committee Chairman Chris Dodd (D-Conn.) who has offered a similar proposal to Frank’s, convened a hearing on his plan that would create a new initiative within the FHA to refinance mortgages of distressed home owners. While House floor action on the Ways and Means Committee bill is unclear, the tax portion could be combined with legislation that comes out of the House Financial Services Committee, perhaps by the end of the month. The next step in the legislative process would be for the House to finalize and pass its housing legislation and then it would need to be reconciled with the Senate-passed measure. As the legislative process advances, NAHB continues to work on a bipartisan basis with lawmakers to pass the best possible bill to help distressed home owners and to jump-start housing and the economy. To read legislation, click here and enter the bill number in the box at the center of the page. For more information, e-mail Greg Brown at NAHB or call him at 800-368-5242 x8421. Unsold Home Inventory Casts Shadow on ApartmentsLooking at the depth of the current housing slump, attendees at NAHB’s Multifamily Pillars of the Industry Conference in Colorado Springs, Colo. on April 1-3 heard that conditions in their sector were holding up relatively well — even as an oversupply of unsold inventory and a weak national economy are having some negative impact on demand. The multifamily industry has “a lot to struggle through but is doing better than single-family,” said Bernard Markstein, NAHB’s director of forecasting and senior economist. And the downturn, he said, is likely to last until housing prices stabilize and home mortgage lenders return in full force, which is “a problem for everyone.” While multifamily starts are experiencing some softening, it is not as bad as the sharp decline that occurred in the early 1990s following a period of overbuilding stimulated by tax benefits, he said. NAHB is currently forecasting 298,000 multifamily starts this year, down from 306,000 in 2007 and 338,000 in 2006 — with apartments for rent edging up as condominiums trail down. Next year’s forecast projects 315,000 units. Multifamily production “has been worse,” Markstein said. “This has been a pretty good period of stability, but too much high-end and too many condos were built. The problem is in the mix, not overbuilding.” At the height of the housing boom, condo starts rose to half of multifamily output, compared to a “normal” share of about 25%, he said. The share has now declined to roughly 30%. There is currently a 12-month supply of condos and coops on the market, compared to the five- to six-month average that is considered healthy. ‘Darker Before the Dawn’ Describing 2008 as a period that will be “darker before the dawn” for the multifamily industry, Ron Witten, president of Witten Advisors LLC in Dallas, said that “there are challenges before us, but they are not fatal.” The fundamentals for multifamily remain good, Witten reported. National occupancy rates averaged 94.4% in last year’s fourth quarter, almost unchanged from a 94.6% rate for the same period of 2006; and rent increases for 2007 averaged about 3% compared to just above 4% in 2006. The good news for the industry is that the homeownership rate has declined to pre-boom levels as mortgage lending standards have tightened significantly, generating more demand for rentals. However, “not everyone who rents, rents apartments,” he said: 45% are renting apartments but 30% are renting single-family homes. Consequently, the absorption of rental apartments has been weakening, and that trend is being exacerbated by sluggish job growth “that feels like zero.” Multifamily developers now find themselves competing with an oversupply of single-family housing that remains near cyclical highs, and “everyone outside of the rental apartment business has built too much housing,” Witten said. Of finished single-family homes now up for sale, 2.5% are sitting empty, compared to 1% in a healthy market; 10% of single-family rentals are vacant, compared to 5% normally; and 9% of the homes in 5+ condo buildings are empty. At the end of last year, there were 1.2 million unoccupied homes on the market, led by almost 700,000 single-family homes, and followed by 299,000 single-family rentals, 166,000 rentals in buildings with 2+ homes and 100,000 condos, “not a huge amount compared to single-family.” The inventories are being adjusted, with for-sale completions running at the annual rate of 1.2 million at the end of last year but skidding to a 700,000 pace in 2009, “adding less to the problem,” he said, and enabling the market to work through the excess inventory more rapidly. Demand Returning in 2009 For the short haul, Witten voiced pessimism about home prices, which he predicted will tumble 27% from the peak to the trough of the housing cycle. Prices are about halfway there already, he said, and will keep falling in 2008 although at a slower pace by year’s end. “What house prices are doing correlates to how much you can raise your rents,” he said, and “home buying is quickly becoming more affordable.” Rental increases should now be dipping closer to 2%, he said. Witten said that multifamily rental starts are down to an annual pace of about 175,000 today, compared to a peak of 275,000 to 280,000 in the late 1990s. On the plus side for new production, hard construction costs, including land, are now rising at a 3% annual rate, down from 12% to 15% during boom times, Witten said, and he calculated that land values have dropped an average 20% in the last 12 months. On the negative side, 80% of banks have tightened up on construction lending, compared to about 60% of them during the credit crunch of the early 1990s. Looking at net completions, Witten said that only 100,000 units are being added a year to a stock of 20 million units. And when demand comes back in mid-2009, it won’t take long to catch up with supply, exceeding it by the end of the year. For the 12 months ending through the fourth quarter of 2007, rents in 42 markets tracked by Witten Advisors increased most rapidly in: San Jose, Calif., 9.3%; San Francisco, 9.1%; Seattle, 8.7%; Salt Lake City, 8.6%; Portland, Ore., 6.3%; Oakland, Calif., 5.7%; Austin, Texas, 4.8%; Los Angeles, 4.5%; and Raleigh, N.C., 4.1%. Rent increases were smallest, and actually declined, in: Detroit, down 0.1%; Fort Lauderdale, Fla., 0.5%; Orlando, 1.3%; West Palm Beach, Fla., 1.4%; and Tampa, Fla., 1.8%. Noting that “the housing oversupply is not evenly spread across the country,” Witten’s research found that in the fourth quarter of 2007 Detroit alone was responsible for 7% of it; followed by Houston and Atlanta, each above 5%; Chicago and Tampa, each a bit above 4%; Riverside and Sacramento, Calif. and Orlando, above 3%; and San Diego and San Antonio, between 2% and 3%. Florida accounted for 13% of the nation’s excess housing supply; California, 12%; and Texas 10%. Production Is Down Participating in a panel discussion of market trends and their strategies for today’s changing environment moderated by Leonard Wood, founder of Wood Partners, executives from the for-rent and for-sale segments of the industry indicated that they were primarily lying low during the current period, easing up on production, getting back to basics and aiming at remaining as profitable as possible. “I haven’t talked to anyone that hasn’t talked about doing away with a proposed deal in one market or another,” said Steve Patterson, president of ZOM, a merchant builder largely in markets in Washington, D.C., Florida and Texas. While it remains more affordable to rent than to own, he said, “if prices do fall 30%, then the differential goes away.” Patterson said that he had expected the gap to be closed by rent increases, which haven’t turned out to be substantial enough. Rent and occupancy rates are down in every major market in Florida, he said, because of the “shadow market” of unsold inventory and, as a result, state residents are “getting more space and amenities at a lower price.” Condo and home owners are on the losing side of that proposition and “may ultimately have to take a 30% hit on price.” Patterson said that his company has sold aggressively to extricate itself from deals gone sour, “but we didn’t sell deals below replacement costs,” especially on high-rise building with a shelf life of 100 years, a strategy other panelists reported taking as well. In favorable developments for the market, Patterson said he expected land prices to go down and underlying demographic demand to go up, especially among members of Generation Y, who are in their 20s, pointing to a return to good times by 2010. Not Much Turnover Constance Moore, president and CEO of BRE Properties, whose portfolio includes 25,000 units worth $1.6 billion primarily in California, noted that the mortgage credit crunch and unaffordable housing prices are helping her business on the operational side. During the boom, 12% to 17% of her residents were moving out to buy homes, but today that isn’t a factor and there isn’t much turnover. Moore also observed sharp market differences on the West Coast, with the San Francisco Bay area and Seattle “on fire,” but Phoenix and Orange County and the Inland Empire in California “trailing,” because they are most affected by the single-family glut. “With costs outstripping rents, we have to be careful about what we start,” she said. Her company is “saying no” to a lot of new deals and she expects hard-hit markets to be “still treading water” next year. Challenging Capital Markets Bryce Blair, chairman and CEO of AvalonBay Communities, also blamed the unsold housing inventory for disappointing conditions across the country in general, with some markets doing noticeably better, or worse, than others. “We’ll start $1 billion this year,” Blair said, “but we could have started $1.5 billion; because of capital availability concerns [we won't]." The capital markets pose the biggest uncertainty for his business this year, he said, with an impact on values and the ability to sell assets. At a time when “you have to think about when to pull the trigger on construction starts,” Blair said he has purchased five “busted” condo deals in recent months, and with the economy weak and production down, “it’s a good time to look at opportunities.” Construction borrowing, per se, has not been a problem, Blair reported, but banks have been “rationing” capital in their lines of credit, capital is being cut back and it is becoming more expensive. W. Dean Henry, president of Legacy Partners, said that he has $800 million in deals under construction for 2008-2009, but “the pipeline looks empty in 2010-2011,” and that is when he anticipates seeing less production. Where production isn’t getting financed, equity sources, in some cases, are the problem. He said that he has had no problem with banks. Henry said that his company bought five sites on Wilshire Boulevard in Los Angeles five years ago, with an eye on getting back in the condo business, and then decided to sell them at three to five times what they cost, without ever building anything on them. Business on properties converted to condos has slowed dramatically, he said. Townhouses selling for $500,000 in a golf course community in the Bay Area were bringing out 150 people a week he said. Now weekly traffic is down to 20, and only eight units have been sold in the past six months. “Fortunately, the debt has been paid off, so we are waiting to get equity and looking to just get the money back,” he said. Even in today’s bearish market, however, Henry voiced enthusiasm for condo hotels, which have been an instant hit in San Francisco and other markets and have shown rapid price appreciation. Media, Mayors Support ‘Buy Now’ Campaign in ArkansasThe Northwest Arkansas Home Builders Association knew getting the “Buy Now” message out to buyers and the media would be a challenge for just one organization. So they recruited the Board of Realtors®, the Mortgage Bankers Association of Arkansas and even three local mayors to come together to create and launch the “Buy NWA Now!” public relations campaign. “We set up a public relations committee that met every week and was composed of representatives from each of the organizations,” said Bob Musson, national director of the HBA. The group created a campaign featuring television and radio advertising, print brochures and a new consumer Web site: buynwanow.com, and used some less-traditional tactics as well, such as having a local mayor appear in their TV spots. The media was invited to the kickoff event in mid-February, and the local ABC, CBS and NBC affiliates all covered it. Clips of the news segments — in which every housing industry professional interviewed gives a consistent “Buy Now” message and supporting information — can be viewed on the site. Click here to view one of them. Musson said that care was taken not to refer to individual organizations, but rather to recognize the three trade federations on the Web site. “We wanted buyers to see it as a source for accurate information that answers the questions they may have about buying a home in today’s market, and not as a sales pitch,” he said. The association took advantage of the resources NAHB provides to HBAs and members, and used many of the articles and information from www.nahb.org on buynwanow.com. Following up on the inaugural event, more than 7,000 consumers attending the late February NWAHBA Home & Garden Show were given campaign brochures promoting the benefits of buying a home. Two local talk radio stations held panel interviews featuring representatives from the builders, mortgage lenders and Realtors®. One unique element of the campaign is a speakers’ board. “We’re training spokespersons, giving them a PowerPoint we used at the home show, and sending them out to speak to civic organizations, professional groups — basically anyone who will listen to us,” he said. On April 1, the HBA held a media event where the mayors of Fayetteville, Springdale, and Rogers signed a proclamation designating the week as "Buy NWA Now Week.” Steve Womack, the mayor of Rogers, is also appearing in the campaign’s television commercials. Initial feedback shows that the campaign is working. “The mortgage bankers and Realtors® on the committee are reporting that they’re seeing an increase in new home applications and requests for home showings,” Musson said. The Myth Buster resources were developed by NAHB to help members and local associations communicate accurate information about their local housing market and reassure hesitant consumers. For more information on the Myth Buster Resources, or to tell us about your Myth Buster success story, e-mail Gwyn Donohue at NAHB, or call her at 800-368-5242 x8447. The Big Hunt Sets Its Sights On National Membership DayNational Membership Day — the federation-wide membership drive — is set for Tuesday, May 20, and across the country NAHB members and membership chairmen have donned their bush jackets and pith helmets to help grow and revitalize their local builders associations during the NAHB annual event. This year’s drive, themed “The Big Hunt,” helps HBAs energize their members, creates excitement, builds momentum and even pits associations in a few friendly cross-state, cross-country or member-to-member rivalries. “Over the years, National Membership Day has become a key part of our culture,” says Vince Butler, NAHB membership chairman. “It’s always an exciting event.” The Momentum Grows In Florida, Alan Baggett, membership director of the Florida Home Builders Association, began drumming up excitement for the membership drive late last year. He proposed creative incentive packages for the members and began making weekly, statewide membership phone calls and training volunteers at each of the state’s 29 local associations. “I asked members across the state to donate goods and services — restaurant coupons, gift baskets, even television sets — to distribute as rewards to top recruiters,” Baggett said. “The response has been great.” Baggett said the Florida HBAs brought a little movie magic to the membership drive theme by calling their state’s big hunt “The Quest for the Golden Spike” ― mixing a little Harrison Ford-Indiana Jones with NAHB’s member-recruitment Spike program. In Oregon, Diane Sparks, membership director for the Home Builders Association of Metropolitan Portland, is deep into the HBA’s “L-C-C-C” campaign. “That stands for letters, calls, cocktails and closing,” Sparks said. Starting with letters to builders and other targeted industry professionals, members follow up a few weeks later with phone calls. After that, members meet with prospects for one-on-one orientation sessions, often over drinks. Sparks said the HBA has three separate initiatives that target particular building industry groups ― current members, lapsed members and affiliate members. “Former members are often astounded that their membership has lapsed,” she said. “So it’s really worth the effort to tap into that audience.” “The core message of our campaign is that we know this is a tough time for many businesses, but this is also the time that we can really help by stepping up and providing support,” Sparks said. “We are facing some challenging economic times, but now, more than ever, membership in NAHB is important,” NAHB’s Butler agreed. “With such a wide range of tangible benefits and so many levels of support, membership offers just a tremendous value.” Membership Day Webcast “The Big Hunt” membership day webcast will be broadcast from 2:00 p.m. to 5:00 p.m. EST Tuesday, May 20. HBAs should be prepared to call NAHB at 800-899-6242 during the webcast to have May membership projections officially recorded and posted during the membership day event. For more information about the 2008 “The Big Hunt” campaign, visit www.nahb.org/membershipday, or call the NAHB Membership Team at 800-368-5242 x8440. For membership day resources, visit www.nahb.org/BigHunt08. Walking Out of a Mortgage and Into Years of HurtOn March 31, Fannie Mae sent out new guidelines to lenders prohibiting foreclosed borrowers from getting another mortgage through it for five years unless there are “documented extenuating circumstances,” in which case the mortgage prohibition is for three years. Even after five years, a borrower with a foreclosure in his file will be required to make at least a 10% downpayment and will need a FICO credit score of at least 680. And Freddie Mac, which counts foreclosures as major credit blots for seven years, is now aggressively pursuing some walkaway borrowers “to pursue our deficiency rights” where permitted under state law. A growing walkaway trend is particularly noteworthy in former boom markets such as California, Florida and Nevada, where many home owners find themselves owing more than the current market value of their houses. If they invested little or nothing in downpayments, some owners reason, continuing to make payments, even if they can afford to, may be throwing good money after bad, so they stop making payments and months later send the house keys back to their lender. (www.washingtonpost.com)
For First-Time Buyers, a Falling Market Has Opened a Window of OpportunityFamilies buying their first home are among the few, happy beneficiaries of a housing slump that has sliced 11% off the median price of single-family homes in the Boston area since September 2005. Others finding a silver lining in the gloom are those for whom a house had seemed simply out of reach — often single mothers living off one paycheck — and those once limited to condominiums who now find that houses have dropped back into their price range. While the Boston-area housing market remains among the most expensive in the country, it is now relatively more affordable than it was earlier in the decade. Median home prices fell to $398,970 in 2007. That’s 4.2 times the median family income for the area of $94,169 — the lowest that this ratio, a common measure of housing affordability, has been since 2001, according to Moody’s Economy.com. Housing economists consider prices affordable at three times income. The current national average is 3.5 times income. (www.boston.com)
No-Downpayment Mortgages Gone for Good?While Fannie Mae and Freddie Mac still have products that allow borrowers to finance 100% of their home purchases, at a higher cost, the major private mortgage insurance companies have recently backed off insuring these loans, said Bruce Brown, a certified mortgage planning specialist with First Security Mortgage Co., in Kansas City, Mo. Mortgage Guaranty Insurance Corp., for example, has changed its guidelines to exclude coverage of 100% mortgages. At a minimum, borrowers need a 3% downpayment and a credit score of at least 680 to be eligible for coverage. In selected markets, where home prices are declining, a 5% downpayment is the minimum. The conventional no-downpayments may have disappeared, but there are still ways to buy a home without a downpayment, said A.W. Pickel, CEO of LeaderOne Financial in Overland Park, Kan. A gift from a family member or a community grant can take the place of a downpayment, for example, he said. And downpayment assistance programs are available to those seeking loans backed by the FHA, he added. “You will see more unique products coming out,” he said, as companies get more creative and come up with solutions. (www.marketwatch.com)
Studies Show Housing Crisis Disproportionately Affects WomenMany thousands of single women in recent years have been home buyers in their own names. They have, on average, less income than single men, but they take greater financial risks, according to a study by Rachel Drew, research analyst at the Joint Center for Housing Studies at Harvard University. “They tend to buy smaller homes and condos, but they tend to stretch their incomes to do so,” she said. About 43% of single women were using more than 30% of their income each month on housing payments, she said, compared to just 30% of unmarried men and 25% of married couples. Moreover, a disproportionate number of the women received risky loans, said economist Eileen Applebaum of Rutgers University. “Women at every income level are a lot more likely than men to end up with subprime mortgages. In 2005, just before the housing boom crested, women received 37% of the higher-cost subprime loans, and just 28% of the prime loans, according to the National Community Reinvestment Coalition, a nonprofit community development organization. Women overall were 32% more likely to receive a subprime mortgage than men, according to a report by the Consumer Federation of America. (www.ajc.com)
Sinking Housing Market Maroons Home Owners in Unfinished or Empty ProjectsThe two dozen or so residents of the New Jersey Shore development of Seapine Estates, near Atlantic City, are concerned because the community’s Pennsylvania developer went bankrupt last summer and halted work, leaving open foundations, unfinished homes and empty streets that have invited outsiders to dump trash, spray graffiti and race cars. Ken Bachman, 37, who lives on a half-empty street in Seapine, feels trapped. When he leaves the house every day, he has to look at an unsightly, unfinished home across the street. More than 200 houses had been planned in the development with prices starting around $300,000, but residents say it is only about one-fifth occupied. One-third of more than 200 cities surveyed have seen an increase in abandoned or vacant properties in their communities as well as other forms of blight, according to a report by the National League of Cities. Nearly 60% said that lenders have not offered to help cities deal with the fallout from foreclosures and other housing problems. “In most cases, cities are picking up the slack by maintaining the homes, mowing the lawns and making sure that neighborhoods with abandoned housing are safe,” said Christina McFarland, research manager at the league’s Center for Policy and Research. “It’s a strain on resources.” (www.iht.com)
The Big Risk in the Foreclosure FixIt’s not clear whether the Federal Housing Administration is up to the task of rescuing the battered housing markets. The agency currently backs $385 billion in mortgage loans, but that figure could double in the coming year if some of the leading proposals in the White House and Congress go through. “We are asking a lot of an agency, that prior to this year, had seen its market share shrink to almost nothing,” said Jaret Seiberg, senior vice president at the Stnaford Group, a Washington policy research firm. “Now we’re asking it to fill the gap left by not only subprime lenders, but to be the first choice [for many borrowers.] That is an enormous challenge.” Even FHA officials concede they don’t know if the agency can handle the increased role. The FHA has been a small lifeboat helping a select group of home buyers, but it could be overwhelmed by the rush of new borrowers trying to climb aboard. “That’s a pretty good analogy,” said Bill Glavin, special assistant to the FHA commissioner. “It’s pretty much uncharted water. We’ve never been asked to do these things before. We were already facing a lot of uncertainty, to be honest. It’s going to be a whole new FHA, and there are going to be risks that go with it.” (www.cnnmoney.com)
Small Business Health Insurance Bill IntroducedA bipartisan group of U.S. senators — including Majority Whip Dick Durbin (D-Ill.), Olympia Snowe (R-Maine), Blanche Lincoln (D-Ark.) and Norm Coleman (R-Minn.) — earlier this month proposed legislation designed to make insurance more available and affordable for the 47.1 million employees of the nation’s 5.8 million small businesses. The bill, S. 2795, would address the high cost of providing health care for employees, a vexing problem for many small businesses and the self-employed. The legislation would:
For more information, e-mail Erin Tario at NAHB, or call her at 800-368-5242 x8413.
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:
States Act to Limit Home ForeclosuresAs the U.S. Congress continues to make headway in enacting housing legislation aimed at stabilizing the housing market and restoring the health of the nation’s economy, states have been busy approving legislation to help limit foreclosures. Maryland lawmakers passed some of the nation's most ambitious legislation to control the housing crisis by toughening oversight of the mortgage-lending industry and establishing pre-emptive measures to help people at risk of foreclosure. Other states have proposed their own solutions, including:
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:
Slumping Economy, Higher Costs Blow Holes in State BudgetsLike an American tourist in Europe, states are finding that their dollars just don’t go as far as they used to, reports Pamela M. Prah, from the National Conference of State Legislatures, in the April 8 issue of NAHB’s State & Local Reporter. Not only was the amount of tax revenue states collected during the fourth quarter of 2007 the weakest in almost five years, but for the first time since the 1990s, inflation for state and local governments grew substantially faster than for the economy as a whole, according to new data released from the Nelson Rockefeller Institute of Government, the public policy research arm of the State University of New York. “States are experiencing a classic nutcracker effect,” Robert B. Ward, the institute’s deputy director, said. “Costs are rising sharply just as revenues falter,” he said. “The result may be a squeeze on states’ ability to fund services,” he said.
Both personal income-tax and sales-tax revenue continued to lag, with the slowest growth rates since the second quarter of 2003, the report said. Meanwhile, states’ corporate income taxes showed their weakest performance since the first quarter of 2002. Tax revenue growth was strongest in the Rocky Mountain regions, with 8.4% growth, while the southeast states saw the weakest with 5.7%.
Oregon’s revenue dropped partly because it enacted a large tax rebate that took effect in late 2007.
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:
Plan to Attend the 2008 NAHB Legislative Conference
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:
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.
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. Builders’ Tip: An Easy-to-Fabricate Lockset Drill Guide
Here is another version of a hole-saw guide for drilling lockset holes in a door stile. I think it is simpler and more versatile than other versions I’ve come across because the screw that holds it to the edge of the door also locates the center of the latch hole.
— Will Hesch, Atascadero, Calif. Tips & Techniques provided by Fine Homebuilding.
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. New Industry Accounting Book Indispensable in Tough TimesEmma Shinn’s “Accounting and Financial Management for Residential Construction, 5th Edition,” available at BuilderBooks.com, provides detailed information for single- and multifamily builders, remodelers, developers and contractors on how an accounting system operates and the basic principles of processing financial data. It’s an indispensable business tool for industry professional in good times and tough times. This edition includes the updated NAHB Chart of Accounts that can easily be adapted to the reader’s own business. In it, Shinn takes readers through the financial process in a methodical manner, building concept upon concept so that even the most complex accounting functions can be easily understood. “Accounting and Financial Management” includes and explains:
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. 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. Attend 50+ Symposium in New Orleans on May 19-21Many builders in the 55+ market have reported little or no change in sales and traffic since the downturn, with 55+ households accounting for 21% of new home sales and 18% of the total new home buying market. Learn more about this growing market at 2008 Building for Boomers & Beyond: 50+ Housing Symposium at the Sheraton New Orleans Hotel in New Orleans from May 19-21. In addition to learning more about the relative stability of and opportunity in the 55+ market, the following are more reasons to attend the symposium:
Among the featured sessions are:
For more information, see the symposium brochure on the NAHB Web site, or e-mail The NAHB University of Housing’s Office of the Registrar at registrar@nahb.com, or call 800-368-5242 x8338.
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. It’s Hard Sledding for Condo Sales, But They Are SellingIt’s neither the best of times nor the worst of times for the residential condominium market, according to panelists at the NAHB Multifamily Pillars of the Industry Conference in Colorado Springs, Colo. earlier this month. While condo sales have fallen far below the frenetic pace of just a couple of years ago in the hot markets, builders and developers for the most part are getting by without having to resort to auctions or extreme measures to sell off their existing inventory, they said. And those who are watching properties still in the pipeline reported that they aren’t too worried about buyers with signed contracts dropping out when their homes become available — although financing has now become more difficult to find at favorable terms and in some of the most overheated markets values have dropped below the original selling price. “I don’t think now is the time to go out and build a whole new round of these buildings,” said James Borders, chief executive officer and president of Novare Group Holdings. Of the markets in which his company has been delivering high-rise buildings with big glass windows — Austin; Atlanta; Charlotte, N.C.; Nashville; and Tampa, Fla. — Austin may be the lone exception, he said, because it is a location “where everybody wants to be downtown.” Borders said that all of the 430 units in a project currently being built in Austin are under contract, and 130 prospects are on the waiting list and available to fill in as soon as someone with a sales contract waivers. Borders’ company is providing incentives for buyers to close early, such as a 2% to 3% price reduction or a free fireplace, and the results have been good. It is possible that 25% of those who have signed contracts could fall out of the deal, he said, but “people don’t want to walk away from their earnest money, not really, if we have sold to the right person and not an investor,” he said. Business on two projects in the 400-unit range in Florida is not so brisk, he reported. In one of them, 84% of the apartments have been closed, but the remaining properties are going slowly, at the pace of two to three a week, although that’s relatively strong for the local market. On a project that will be delivered next year, Borders said that he will need to be selling at a rate of five a week. Demand for the product is still strong, he said, but the increase in construction costs that occurred during the boom has made it impossible to sell in the $250-a-square-foot range, which would easily draw more buyers, and has pushed the price roughly $75 higher. David Nielsen, vice president and national condominium sales manager for Wells Fargo Mortgage, pegged second- and third-tier markets that didn’t experience “blow-out prices” during the boom as the best places for condos today. Examples of these are Birmingham, Ala.; and Memphis and Nashville, Ky., although Borders said of the latter that it can’t stand too much more product. Working With Lenders Nielsen noted the departure from today’s market of “the one-trick pony and one super-fantastic mortgage product” that turned mortgage bankers into vendors during the boom, when capital market funds lost focus on proper risk mitigation. “People were getting approved left and right and as we are finding out right now probably shouldn’t have been.” However, he said, lenders can work with developers to identify strategies to boost condo sales, starting with educating consumers about the availability of financing. “If you listened to the media today, you would think that no [mortgage] loan could ever, ever be made again,” he said, “but they can be.” The temporary increase in the FHA mortgage ceiling and the loans that Fannie Mae and Freddie Mac are allowed to buy has helped ease up lending in California and some other high-priced markets, he said, with banks knowing that they can make loans at higher price points and sell the loans. However, citing “HUD policies that are crazy and don’t make sense,” Nielsen said FHA overhaul legislation is definitely needed to make it easier for high-rise buildings to participate in this program. Builders should also be looking at becoming more creative with how they use mortgage products to mitigate some of the fallout from the credit crunch, he said. Interest-rate buy-downs and rate-locks can be particularly effective, he said. For instance, to keep a buyer from backing out of a contract signed today on a product that’s 24 months out, the builder can lock in the rate for 24 months, including a provision to allow the buyer to move to a better rate if interest has declined by the closing time. Converting to Rentals Not Always an Option Where sales have been especially hard-hit by the housing downturn, shutting down sales and converting to a rental project may not always be a viable exit strategy, Nielsen and other speakers said. In a building where only a small percentage of the units have been sold, the developer would be challenged with having to take the entire deal back because Fannie Mae and Freddie Mac only allow one entity to own 10% of a particular project, Nielsen explained. Those who had purchased a home would have a hard time selling it under these circumstances, because prospective buyers would find it difficult to line up financing. It was also noted that it can be difficult for large or luxury condos to be turned into rentals, because the rents they would command would be too low to support their actual cost. Jerry Durkin, director of Wood Partners, suggested that the best strategy for developers of multifamily projects is to start out financing them as rentals. “Then you have no problem down the road,” he said, and they can always be converted if demand for condos arises. Costs went up so much during the housing boom, Durkin said, that it is difficult to turn condos into rentals. If ground has not yet been broken on land that was purchased for a premium at the height of the boom, selling off the land and repaying the bank could be an alternative, he suggested. Durkin said that there is still traction for condo sales in Atlanta, although “it’s hard sledding.” Higher-density projects in that market located “where the buyer really wants to be” will slowly be absorbed, he said. However, there is no market for new condo projects and it is impossible to do presales. And Durkin’s company converted one large building to rental “when it was crystal clear that’s what should be done.” In Palm Beach, Fla., Wood Partners is having to deal with one property where those who signed contracts bought at $300 a square foot and the appraisals are now coming in at $250. “The deposit becomes insufficient,” Durkin said, “and if they had the money to increase the deposit, they feel like they’re just further under water.” The solution for those who want to close is to find the right appraiser, he said. Gen Y Provides Hot Prospects for Urban-Styled ApartmentsThere’s something more than a little different about the 20-somethings of Generation Y who are lined up to generate the biggest burst of housing demand since members of the post-World War II baby boom generation, according to two market researchers and an architect appearing at the NAHB Multifamily Pillars of the Industry Conference on April 1-3 in Colorado Springs, Colo. Stressing the difference of those in this bulging population group with even their most recent predecessors, James Chung, president of Reach Advisors, noted that “a 28-year-old today is dramatically different from how a 31-year-old today was three years ago.” “Your staff needs to be tuned into this market,” Chung told an audience of professionals in the multifamily industry. His research finds that Generation Y can be distinguished in several ways:
Gen Y’ers, he said, believe that things are always going to get better and that the spotlight should be on them. They prize their emotional well-being and expect great things and top quality everywhere. “The property that makes them feel better will win out,” Kennedy said. Developers need to look broadly at the criteria Y’ers will use to reach a conclusion on how they feel about a place, he said, including the design, the lobby and the personnel. They are looking for places that “tell a story” and that are “buzz-worthy.” Customization and the ability to craft a product are important to members of this generation, Kennedy said, so developers should “present them with a piece of the canvas being blank.” The place where they live needs to be a “hub” where they can connect with people, technology and events, “or they’re not interested in it.” Based on questions related to their life agenda Gen Y’ers will consider when looking for a place to live, a desirable home needs to be “fun,” reflect good over evil, be flexible and help them tell their story. “They are the stars, everything else is a prop in their story,” Kennedy said. Amenity Center Is 'Number One' Architect Sanford Steinberg, principal, Steinberg Design Collaborative, discussed how his company is applying research on Gen Y members to design multifamily housing for them, primarily in markets in Texas. Floor plans, he said, are geared to residents who spend more time out of their unit than in it, and they are getting smaller and more open. The living room, dining room and kitchen typically constitute one room, the kitchen island is gone, and the bedroom is separated from the room by a wall, but not a door, reflecting the influence of loft design. Ceilings should be higher and there is no need for details like crown moldings. Steinberg said he allows residents to customize their units by choosing the color for one wall. A building with 70% of the units one-bedroom and in the 650-square-foot range is a good mix for members of this generation. “Get funky,” he advised, and “put in angles in the units.” Floor materials can include concrete, simulated wood or vinyl plank. Gen Y’ers “can close on the first visit,” Steinberg said, “so get them the second they pull up in that driveway." A porte cochere can create a sense of arrival, and developers should borrow other ideas from hotels, such as a lobby that looks like it belongs in a hotel, a receptionist and resort-style outdoor amenities. The amenity center is “number one” in selling to Y’ers, Steinberg said, and it should be flexible and open. All of the amenities should be in one room where everyone can be seen. “Make it look like Starbucks,” he suggested, and design it so that it can be easily opened to the outdoors. Also, a communal kitchen with a pizza oven will help convey the feeling of “one big gathering space.” In one of his buildings, the amenity room is 6,500 square feet, including 1,500 square feet for the exercise room, which is separated by glass. A minimum of 200 to 220 units is needed to support something on this scale, he said. Outdoor amenities are also important, with, for example, trellised areas leading into the pool, quiet outside spaces and places where residents can cook. Outdoor heaters can be used to extend the use of these areas in cold climates. Gen Y’ers also want pets, Steinberg said, and “a dog-wash off to the side” can be provided to accommodate them. Architecturally, he said that Gen Y is looking for a contemporary, urban style with lots of colors, even in the suburbs, and developers should consider a visual icon — “huge clocks, freaky weather vanes” — to help brand the property. Seattle High-Rise Named Multifamily Community of the Year
The award, sponsored by Wells Fargo Home Mortgage, is one of the top honors in NAHB’s prestigious Pillars of the Industry Awards program, which annually recognizes excellence in multifamily housing development, design, marketing and management. Jim Bodoia, of Mithun, accepted the award on April 2 on behalf of the company at a gala celebration hosted by NAHB in Colorado Springs, Colo., in conjunction with its annual conference for apartment and condo developers. The winning community is a 150-unit tower located in downtown Seattle’s historic Belltown district, and features loft condominiums ranging from 500 to 2,000 square feet for flats and townhouses. All units have floor-to ceiling windows and open floor plans, for great views. Community amenities within the building include a green roof terrace, library, art gallery and café. Mosler Lofts, developed by The Schuster Group, was the the fastest-selling condominium complex in Seattle’s highly competitive marketplace in 2006. During its weekend opening, 42 out of 150 units were sold, and the property reached 90% occupancy within six months. As an epicenter for downtown Seattle’s urban professionals, the condo project additionally received the top award in the Best High-Rise Condominium Community category, sponsored by Whirlpool. The Pillars of the Industry Awards judging panel described Mosler Lofts as elegantly designed with simple unit plans balancing the architectural interest. They also noted that aside from the aesthetic appeal and urban lifestyle setting, the project provides sustainability inside and out, while supplying the demand for environmentally responsible living. Click here for the full list of winners posted on NAHB’s Web site.
Group Remodels in Houston for a Special Caregiver
The Remodelers’ Council of the Greater Houston Builders Association took on the project as part of its regular charitable efforts on behalf of neighbors in the community. Their goal was to make the home more accessible for the children. The remodelers enlisted the aid of many of their suppliers and vendors, as well as other members of the Houston HBA, and together they donated $100,000 in materials and 2,000 hours of labor.
“We typically look for two projects a year to get involved with as a council,” explained Jeff Hunt, CGR, GMB, CAPS, of Heritage Construction. Remodeling Casey’s home was a compelling project to undertake, said Dennis Haws, CGR, of All Star Construction. Haws serves as the council’s charitable projects chairman. He finds the projects for the council and then organizes the details. HomeAid Houston contacted Haws about Casey last year and asked if the remodelers could help. Haws then met with Casey in December to hear her story himself. Casey said she had been a foster parent for many years and lived in a home with few accessible modifications. She has been caring for three children who use wheelchairs and a 14-year-old with mental disabilities. As the children have grown, Casey told Haws, caring for them in an inaccessible home was becoming increasingly difficult. “When I first met Cora,” Haws said, “she told me what a blessing her children were to her. When she talked about them, her eyes lit up.” “At that moment, I knew we were going to help her,” he said. “All that remained were the details.” Members, vendors and suppliers donated lumber, plumbing supplies, paint, tankless water heaters, a clothes dryer and a 30 KW stand-by diesel generator valued at $15,000 needed to maintain electrical power for the children's ventilators if the grid goes down. For the project, the remodelers put their CAPS skills to work improving the accessibility of the first floor and installing two new bathrooms with wheelchair accessible roll-in showers and commodes. The volunteers also upgraded the wiring, plumbing and finishing, landscaped the backyard and installed a swing set for the children. Hunt said that Casey and the children were overjoyed with the project, and that their gratitude was reward enough for the job. Projects like this “help to build camaraderie” among the council members and help integrate new members into the group, Hunt said. “You really get the warm fuzzies.”
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. ‘Warranties for Builders and Remodelers’ Available at BuilderBooks.com “Warranties for Builders and Remodelers,” available through BuilderBooks.com, provides vital knowledge concerning the basic elements of a warranty. This second edition addresses the changes to state statues of repose applicable to construction and changes and additions to the mandatory notice provisions in states that have these laws. To view or purchase this publication online, click here, or call 800-223-2665. '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.
'Remodel Now' Campaign Materials Are AvailableIn May, as part of “National Home Remodeling Month” observations, NAHB Remodelers will be launching their year-long "Remodel Now" campaign. For the campaign, NAHB has developed resources — such as articles, press releases, advertising and other tools — that local councils and home builders associations can adapt for their market to educate home owners about the benefits of remodeling. The "Remodel Now" campaign materials include:
For more information, e-mail Kelly Mack at NAHB, or call her at 800-368-5242 x8451; or visit www.nahb.org/remodelingmonth. 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. ‘Warranties for Builders and Remodelers’ Available at BuilderBooks.com “Warranties for Builders and Remodelers,” available through BuilderBooks.com, provides vital knowledge concerning the basic elements of a warranty. This second edition addresses the changes to state statues of repose applicable to construction and changes and additions to the mandatory notice provisions in states that have these laws. To view or purchase this publication online, click here, or call 800-223-2665.
'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.
Enter the Best in American Living Awards Competition
Entries are being accepted for the 2008 Best in American Living Awards (BALA), the foremost residential design competition in the country. Builders, interior designers, architects, land planners, developers and marketing and real estate professionals are invited to enter. The competition includes 36 categories — from single-family attached and detached homes in a variety of sizes to rental developments and custom homes, plus categories for interior design, communities and neighborhoods, affordable housing, smart growth and others. A panel of design professionals judge entries on design appearance and curb appeal, interior floor plans, how the project relates to its own local market and the construction techniques and materials used. Homes were completed or that had their first model opened between May 1, 2007 and July 15, 2008 are eligible for this year’s competition. Entry Dates:
Winning entries also will be posted on the Professional Builder Web site for up to one year after the announcement. For additional information and to download a BALA entry form, click here, go to www.probuilder.com/bala, or contact Judy Brociek, Professional Builder, at 630-288-8184 or Jennifer Jones at NAHB, at 800-368-5242 x8343. Earn Designations at NAHB Conferences in New OrleansNAHB 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. 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:
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:
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
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. Attend the Green Building Conference in New OrleansRecord attendance is expected at the 10th annual NAHB National Green Building Conference in New Orleans on May 11-13. 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 NAHB National Green Building Program. They also will be able to work towards earning the new Certified Green Professional (CGP) designation. To date, more than 200 people have earned the CGP designation, which was introduced at the International Builders’ Show in February. A graduation reception is planned for Saturday evening, May 10. "Green building is no longer a niche market, it is the present and the future of the building industry,” said Ray Tonjes, Green Building Subcommittee chairman and president of Ray Tonjes Builder, Inc. in Austin, Texas. “This conference really demonstrates how far we have come." "With all the opportunities at this year’s 10th annual event — excellent education sessions, speakers and green exhibits, home tours and networking opportunities — it’s a show that builders and remodelers can’t afford to miss,” he added. Speakers at the conference include Michael Todman, president of Whirlpool North America; Dane Parker, Dell Global's environmental director; and Patrick Moore, a nationally regarded proponent of green consensus-building, chairman and chief scientist of Greenspirit Strategies Ltd. and former president of Greenpeace International. For more information, or to register, visit www.nahb.org/greenbuildingconference. Help Rebuild New Orleans The conference is partnering with Rebuilding Together New Orleans and the Building for Boomers & Beyond: 50+ Housing Symposium on a special community service project in which symposium attendees can help rehabilitate homes in New Orleans that were severely damaged by Hurricane Katrina. Saturday, May 10, has been reserved for the rebuilding project and symposium attendees are encouraged to volunteer. Attendees of the 50+ conference will work on the home May 17-18.
'Building Greener Neighborhoods’ Available at BuilderBooks.com “Building Greener Neighborhoods,” available through Digital Delivery at BuilderBooks.com, shows those involved in building new communities the advantages and rewards of saving, planting and transplanting more trees in their developments. The examples are drawn from decades of experience of land developers, home builders and urban foresters. To download this publication in a PDF format, click here, or call 800-223-2665.
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. Job Corps Skills Blossom at Minot Home and Garden ShowThe annual Home and Garden Show of the Minot Association of Builders recently provided an opportunity for Home Builders Institute (HBI) instructor Mike Frank and his facilities maintenance students at Quentin Burdick Job Corps Cente |