Nation's Building News Online: April 28, 2008Print All Articles Text Version |
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A Push in New-Home Sales Is Needed to Get to Better TimesThe outlook for housing and the economy should be gradually brightening within a few months, but before there can be any assurance that the worst of the downturn is over, there needs to be a pickup in home sales, according to panelists at NAHB’s Spring Construction Forecast Conference on April 24 in Washington, D.C. Residential production and sales this year have declined “more sharply than anticipated,” said NAHB Chief Economist David Seiders, and the situation for the U.S. economy “definitely has darkened,” with more than an even chance that it has lapsed into a “mild” and brief recession in the first and second quarters. Seiders said that he continues to believe that new single-family home sales will stabilize during the middle of this year, paving the way for an upturn in late 2008 and in 2009 and leading to improvements in housing starts next year. However, “the sales side has to be off the deck before starts stabilize and move up,” he said. And so far, he reported, there are few signs that new single-family sales are close to bottoming out, with the Commerce Department just announcing an 8.5% decline in March, to a seasonally adjusted annual rate of 575,000, a 17-year low, and increasing the unsold inventory to an 11-month supply at the March sales pace. Through March, Seiders said, NAHB surveys of 30 large builders accounting for 25% of sales nationwide, showed “no signs of stabilization, although the rate of the decline may be slowing.” Likewise, the NAHB/Wells Fargo Housing Market Index, which polls builders to gauge their opinion of current sales conditions and demand six months down the road, remains close to its record low recorded in December and “shows no recovery yet, implying further deterioration of sales.” “We need demand to revive to turn around the market,” Seiders said, and he suggested that a temporary tax credit for home buyers, an approach being considered in housing and economic stimulus legislation on Capitol Hill, could help provide the impetus to boost sales and end the downward spiral in home prices that is the biggest concern for the health of the nation’s economy. As home prices have declined, he said, “underwater” mortgages with balances exceeding the value of the home have been adding to the deterioration of loan quality that began in the subprime sector last summer. This is “bad for the financial markets,” he said, and could result in further tightening of lending standards, yet more foreclosures and even softer housing demand. Economists participating in the conference were fairly optimistic that the downward turn in housing prices, while substantial, will taper off before it takes a toll on the longer-range outlook for the economy, but nobody can know for sure, they said. Seiders also stressed that there are negative implications for the economy if housing does not move into positive territory next year. The tax rebate checks that households will soon begin receiving as part of February’s economic stimulus legislation should help revive the economy during the second half of this year, he said, but growth in housing will be needed to keep the economy on a positive course in 2009 as that stimulus fades. A Mild Recession, With a Double Dip Possible
However, the current recession, like the one that occurred in 2001, is far different from those preceding it in the 1970s and 1980s, which were precipitated by high inflation, tightening by the Federal Reserve and rising interest rates. In 2001, he said, “manufacturers were hammered, but housing was doing okay.” Today, just the opposite is happening, with U.S. export growth strong. Core inflation remains “reasonably stable” at 2.25% and looks headed back into the Federal Reserve’s 1% to 2% tolerance range. The financial crisis precipitated by the subprime meltdown last summer “is off the front pages,” he said, “and things are calming down a bit; the worst may be behind us.” The financial markets “woke up last August to the fact that there was a lot of toxic waste out there,” he said. Of the estimated $400 billion in global losses caused by the subprime problem, about $270 billion to $280 billion has already been declared, leaving about $100 billion in write-downs that the markets will have to face and probably be able to handle. Behravesh added that he is “a little skeptical” of talk about the U.S. today facing the worst financial crisis since the Great Depression. At the height of the S&L crisis 20 years ago, 2,700 financial institutions failed, he said, compared to “very few” so far today. Also, the Fed “has really cranked things up to calm the financial markets,” including its rescue of investment bank Bear Sterns and stimulative interest rate cuts, which most likely will include an additional one-half percentage point reduction in the federal funds rate before this summer. “I would have to give high marks to the Fed for crisis management,” he said. As opposed to banks, good corporations haven’t had too much trouble borrowing, their balance sheets remain healthy and their inventories are lean. “Wall Street has been squeezed, but Main Street has not been hurt so much,” he said. The volatility being displayed today in the stock market was more pronounced during the dot.com bubble crash, and overall the market “is not doing that badly.” Behravesh did, however, cite downside risks to his relatively upbeat forecast for the economy. Among signals that are “flashing yellow or red,” housing remains “a long way off from recovery,” consumer spending “has come to a halt” and will remain weak next year, and, most worrisome, the recovery will be “tepid” once it starts. Housing sales should start turning around during the second half of this year, he said, concurring with Seiders, and house prices will continue to decline in the next year or so even as housing production improves. Home Prices the ‘Elephant in the Room’
If the economy were really falling apart, he said, job layoffs would be accelerating to 500,000 to 600,000 a week; they recently have been in the mid-300,000 range. “The elephant in the room,” Glassman said, “is what’s going on with home prices,” which is still causing “a lot of stress in the financial markets.” Home prices are down about 12% since the height of the housing boom in 2005 and incomes have grown 14%, bringing “prices relative to income to about where they were in 2003” during this year’s first quarter, he said. “We have flushed out most of the excess.” Glassman said his guess is that home prices will decline 5% or so further, but gloomier forecasts foresee another 15% to 20% drop, and what will actually happen is probably somewhere in between those two views. “By fall, we will start to see that most of this is over,” he predicted, but he conceded that he wished he knew “where home prices would settle out.” Once the economy does show signs of stabilizing, Glassman said it would be a mistake for the Fed to quickly reverse course on interest rates, as some have suggested it should do, because the financial markets will be going through a difficult transition for some time, and this will require a “different monetary policy.” Last summer’s financial crisis was precipitated by investors discovering that they had assets with exposure to credit risks they hadn’t been thinking about, and this has challenged the concept of securitized finance that has taken hold, he said. It will take a decade to restructure the system and restore the confidence of investors and provide them with the transparency to see where the risks lie. In the meantime, “new credit will have to go back to bank balance sheets.” Glassman also said that prospective home owners will have to return to how their parents bought homes and start saving more money for a downpayment. “The customer you have known for the past 20 years is not the customer you will know in the next 10 years,” he said, as the economy transitions into a new era that “won’t feel like it has as much oomph.” The best news for the economy, he said, is that the emerging economies, largely in Asia, are doing fine and providing strong demand for U.S. exports and providing U.S. companies with “spectacular levels of profits.” “The world has never seen such great economic performance since the dinosaurs,” Glassman said, and as a result, the winds are shifting in favor of regions of the U.S. that rely heavily on exports, including Michigan. In NAHB’s latest housing forecast, new single-family home sales are projected to decline 21.8% this year, to 605,000, before climbing 18% in 2009 to 714,000. Total housing starts are forecast to decline 29.5% to 948,000 in 2008 and rise 10.8% to 1.05 million next year. Most of this year’s decline will be concentrated in single-family production, which is expected to drop by 37.1% to 653,000 homes. Photos by Morris Semiatin
Bill Webb, MIRM, in “Sweet Success in New Home Sales,” available through BuilderBooks.com, provides the most powerful techniques ever devised for selling more homes and making more money in lean times. This instructive guide lays out the proven approaches for crafting and delivering sales excellence. To view or purchase this publication online, click here, or call 800-223-2665. Congress Must Address Housing Crisis, Economists SayIn a sobering presentation on how the housing slowdown is playing out across the country, Mark Zandi, chief economist for Moody’s Economy.com, said that home price declines will remain significant in the once super-heated markets of California, Arizona, Nevada and Florida, as well as parts of the Eastern seaboard that include the Washington, D.C. and Boston metropolitan areas. “The only areas of price gain are in Texas, parts of the Southeast and the farm belt, which is benefiting from selling more corn oil for ethanol,” Zandi told the NAHB Spring Construction Forecast Conference in Washington on April 24.
Bernard Markstein, NAHB’s director of forecasting, offered a similar, though slightly more upbeat assessment, noting that quite a few housing markets are experiencing mild price declines and a few are actually posting modest gains. Between the fourth quarter of this year and the fourth quarter of 2009, Markstein said, housing starts should be up by more than 10% in nearly every state, with the notable exceptions of Florida and Nevada, which will still be in the red. He added that the gains will come on top of notably low levels of residential construction in the final quarter of 2008. Zandi expects housing to begin to rebound in the spring of 2009, and he said that “three-quarters of the nation’s housing market will have experienced a significant decline in price when all is said and done.” The problem, he said, is that the market is awash in inventory, with 2.25 million homes vacant or for sale, which is 1 million above normal market conditions. The situation could deteriorate even further, Zandi suggested, because stringent mortgage requirements continue to weigh heavily on demand and foreclosures have reached an all-time high of 2.2 million, adding more inventory to an already bloated marketplace. “Tighter lending standards have acted as a drag on the housing market,” agreed Markstein. The foreclosure problem, he added, has been primarily centered in the subprime adjustable-rate mortgage market. Foreclosures among prime loans have been showing little upward change, he said, and the subprime fixed-rate loans in foreclosure are actually lower than in past years.
Even more foreclosures are in the offing, Zandi said, although interest rate reductions by the Federal Reserve have helped to limit increases in monthly payments for the adjustable rate mortgages being reset this year. “The issue now is negative equity,” he said. “The ‘underwater’ value of mortgage debt is worth more than the house price. I estimate that 8.8 million home owners are in zero or negative equity positions.” Zandi said that a prolonged recession and additional home price declines beyond the 5% to 10% range would add challenges for the industry, perhaps delaying recovery even further than he expects. Also, he said that the annual pace of housing starts needs to slow to 900,000 units from 1 million currently. “This is a crisis. Policymakers should be more aggressive going forward,” he said. Zandi called for Congress and the Administration to act on a housing stimulus package containing a temporary tax credit to spur home sales and a voluntary mortgage write-down plan to help millions of home owners who need relief. Also needed is further action by the Treasury Department and Federal Reserve to inject liquidity into the securities market, he said. “In times of crisis, we should use the triple-A credit of the U.S. government to help. If we don’t, this will be a prolonged housing downturn that runs through the end of the decade,” said Zandi. Photos by Morris Semiatin Nation's Building News Will Not Be Published May 5Nation's Building News will not be published on May 5. Regular weekly publication will resume May 12. ‘Declining Markets’ and Self-Fulfilling PropheciesGrowing ranks of critics say that designations of Zip codes, metropolitan areas and entire states as “declining markets” could hinder a real estate recovery and hurt minority groups and moderate-income buyers disproportionately. Since late 2007, most lenders, insurers and mortgage investment firms have compiled lists of markets that they regard as higher risks because housing values are dropping. In those areas, borrowers are charged higher rates and loan fees and are required to make bigger downpayments. These costs can rise significantly when applicants have credit scores below designated minimum levels. In some cases, the extra fees can add more than two percentage points to the interest rate and require much more cash up front. At their extreme, declining-market designations remove entire categories of real estate from financing eligibility. Some private mortgage insurers won’t touch second homes or rental-home investments in large parts of Florida and California. The National Association of Hispanic Real Estate Professionals said that the current policies have the effect of cutting out or penalizing huge geographic areas that contain many smaller sub-markets where values are relatively stable or do not pose exceptional risks. The National Association of Realtors® recently sent letters to the executives of Fannie Mae and Freddie Mac asking them to “discontinue the policy of stigmatizing entire Zip codes” and metro areas as declining markets because they “typically include widely differing” neighborhood conditions. (www.washingtonpost.com)
They’re Just Walking Away From HomesAs home values fall and credit woes rise, more Central Florida consumers are walking away from homes — a process that lenders, credit counselors and foreclosure experts advise against. You Walk Away, a San Diego firm, helps people who don’t have much equity in their homes figure out how to leave their mortgages without doing too much damage to their credit ratings. Walking away is most attractive to people who live in places where housing prices rose most, such as California, Nevada and Florida. Business is booming and the company hopes to grow from 16 to 48 employees in the next three months. There can, however, be repercussions to letting a house go. Penalties can be frightening. Mortgage lenders Freddie Mac and Fannie Mae have said that home owners who walk away from their mortgages will have to wait several years before they can qualify again. And their credit ratings will be slashed. Robin Stout Migala, consumer-outreach manager at Freddie Mac, says she worries that troubled home owners can sometimes fall prey to scam artists and end up signing over their homes without receiving any help in return. (www.orlandosentinel.com)
Home Prices Aren’t Tanking EverywhereWhile housing sales have fallen somewhat, Randy Jeffers, chairman of the Texas Association of Realtors®, still regards his market of Amarillo as a seller’s market right now, with the median price of an existing single-family home up at an annual rate of 11% in the fourth quarter. He often finds that would-be buyers and sellers are surprised about what is going on locally. As the country’s collective housing ills land bold headlines, locals incorrectly extrapolate the information to their own markets, he said. The housing problems largely aren’t national but regional in nature, said Susan Wachter, a real estate professor at the University of Pennsylvania’s Wharton School. “The interesting thing is that there are parts of the country where housing prices are doing fine, thank you,” she said. In fact, only five states are in what she would consider a housing recession: California, Arizona, Nevada, Florida and Michigan. Areas in upstate New York, some Rocky Mountain states and the Carolinas are faring better than the rest of the country in terms of price appreciation these days, said Lawrence Yun, chief economist for the National Association of Realtors®. In metro areas — including San Francisco, Washington and New York — homes are typically retaining more of their value the closer they are to the city’s core, Wachter said. In fact, declining home values in an area’s suburbs are tending to drag down the average for the rest of the metropolitan area, she said. (www.marketwatch.com)
Housing Market Looking Up in ColliervilleRealtor® John Green is among those in his industry in Collierville, Tenn. who say the Memphis area housing market in general hasn’t suffered as much as some other parts of the country, and may rebound soon. The latest figures for March show the number of homes sold in Collierville down nearly 27% and in Germantown down 38% from the same month in 2007. However, the average sales prices for March climbed 7%, to $342,000, in Collierville and 5%, to $351,000, in Germantown. Gloomier figures for March were more common in some other Memphis areas. In South Memphis, for example, the average home sales price dropped by 51%. Still, positive developments in seven of the 17 markets making up the Memphis area, along with broader trends, point to good things to come for a market not prone to dramatic swings, says Tommie Criswell-Jones, broker manager for the Crye-Leike Realtors® office in Collierville. She said that low interest rates, government efforts to stimulate the economy and a return to a more normal housing market after two to three years of frenzy are additional reasons for optimism. (www.commercialappeal.com)
Federal Legislation Needed to Reduce Copper Theft Problem, Sheriffs SayDespite laws passed by the state legislature last year to help reduce the number of copper thefts in Arkansas, and new legislation recently enacted in Tennessee, some East Arkansas officials think that federal legislation may be the solution to the problem plaguing farmers, utility companies, contractors and business owners. Scrap metal dealers said that copper was being purchased for $3 to $3.50 a pound, depending on the quality. In December, thieves broke into an Entergy Arkansas substation in western Pulaski County, and ripped out and stole a large amount of copper ground wire, causing thousands of dollars in damage and leaving more than 2,000 of the utility’s customers without power for three hours. Local sheriffs said that copper thefts are out of control in eastern Arkansas because thieves find it easier to go into Tennessee and sell the copper. They said they hope Tennessee’s new law will make it harder for Arkansans to sell the copper in that state. Tennessee now requires scrap metal dealers to be registered and also requires people selling the copper and other metal to present identification and thumb print when selling. (www.stephensmedia.com)
Lenders Swamped by Delinquent MortgagesSeven out of 10 troubled mortgage borrowers remain without a plan to work out their loans despite increased industry efforts to help them, according to a new report from a coalition of state attorneys general and banking regulators. The findings were not all grim. The coalition reported that the number of late borrowers working with their lenders to prevent foreclosure has increased and that the measures taken by lenders to help them have become more aggressive. Instead of rescheduling missed payments, more lenders reduced the overall burden by modifying loan terms. They lowered interest rates or extended the term of the loan to cut payments. Less often, they forgave part of the principal. But the lenders are failing to make headway because they can’t keep up with the number of delinquent loans. About 50,000 more loans were modified in January than in October, said Mark E. Pearce, North Carolina’s deputy commissioner of banks. But 90,000 additional loans became delinquent during that time. The coalition, which represents 11 attorney generals, two state banking departments and the Conference of State Bank Supervisors, said the lending industry will not make a dent in the foreclosure crisis if it continues to address the problems on a case-by-case basis. Instead, it needs to change the system so that borrowers with similar problems are automatically handled the same way, the coalition said. (www.washingtonpost.com)
A Message on Myth Buster ResourcesDear Housing Industry Professionals: Our industry is facing many challenges during the current market downturn. As a builder myself, I understand how frustrating it can be when the news media reports as if there is one national housing market. I know how that can hurt consumer confidence, since one of the places buyers get their information is the news. The NAHB Public Affairs staff has put together a comprehensive set of materials — the Myth Buster resources — to help NAHB members and locals fight inaccurate media reports and get the facts about housing out to buyers. HBAs around the country are using these resources, and it is working. Markets that have not been so severely impacted by the downturn — such as Albany, Atlanta, Kansas City and Salt Lake City — have gotten local media to change their coverage and report an accurate picture of their local housing market. You can read some of their stories here. If you are an NAHB member, you can work with your public relations committee and HBA to use these resources and make the same sort of impact in your market. The Myth Buster section on NAHB.org, which is accessible only to NAHB members, puts all the tools you need at your fingertips. Resources include market profile statistics for 360 individual markets nationwide, analyses of key economic reports, template press releases, talking points, customizable print and televisions ads, and more. The NAHB Public Affairs team is available to help members get the maximum benefit from these resources. E-mail Gwyn Donohue or call her at 800-368-5242 x8447 if you have any questions about the Myth Buster resources, or would like help crafting an individual solution to the PR issues you face in your local market. Rick Judson
White House Opposes Frank Foreclosure PlanThe House Financial Services Committee last week considered plans to provide foreclosure relief for strapped borrowers. On April 23, the panel voted 38 to 26 to approve a measure that would provide $15 billion in loans and grants that local governments could use to house low-income families and to purchase and rehabilitate homes in foreclosure. The following day, the committee began debate on legislation (H.R. 5830) put forth by Chairman Barney Frank (D-Mass.) that would allow the Federal Housing Administration to insure up to $300 billion in refinanced mortgages — but only after lenders cut down the size of the loans first to make them more affordable to borrowers. While the committee is expected to complete consideration of H.R. 5830 on April 30, the Administration has already come out in opposition to the measure. Roy Bernardi, Housing and Urban Development deputy secretary, sent a letter to Frank warning that the Administration “strongly opposes” the bill. “This legislation may come at a cost to taxpayers who are not participating in the new program,” Bernardi wrote. “An attempt to shift costs to taxpayers would constitute a bailout.” Nevertheless, Frank has expressed hope that the House will act next month on his plan — either as a stand-alone bill or part of a broader housing package. Meanwhile, Senate Banking Committee Chairman Chris Dodd (D-Conn.) plans to hold a markup on May 6 to consider his HOPE for Homeownership proposal, legislation similar to Frank’s that would create a new initiative within the FHA to refinance mortgages of distressed home owners. Dodd has also indicated that he would like to consider a GSE reform package on the same day. At this point, no Senate legislation on the overhaul of Fannie Mae and Freddie Mac has been introduced. Outcome Uncertain The situation remains fluid and it is still unclear whether these bills will move forward individually or be merged into a giant housing package. The Senate on April 10 approved a housing stimulus bill (H.R. 3221) that would provide a temporary tax credit for purchasers of foreclosed properties; modernize the FHA and permanently raise the maximum loan amount that the agency could insure to $550,000; allow businesses to carry back net operating losses for four years; and expand the mortgage revenue bond program. The House Ways and Means Committee approved its own housing stimulus legislation at about the same time the Senate acted. The House legislation would create a first-time home buyer credit of up to $7,500 for the purchase of any home within the next 12 months. The credit would be available for married couples making up to $140,000 annually ($70,000 for singles). And it would significantly enhance the Low Income Housing Tax Credit and tax-exempt housing bond programs. Builder to Deliver Urgent Message to Capitol Hill NAHB is monitoring developments closely and continues to push House members to move quickly to bring a final bill to the House floor. More than 1,200 builders are expected to assemble on Capitol Hill on April 30 during NAHB’s Legislative Conference and urge their members of Congress to move quickly to pass housing stimulus legislation that will jump-start housing and the economy. For those builders who cannot attend, NAHB’s grassroots is setting up an 800 phone number so that members can contact their lawmakers on April 30 and advocate for housing issues. In conjunction with the Legislative Conference, NAHB is running ads in CQ Weekly, Roll Call, Politico, CQ Today and CongressDaily with the message that Congress can avert an economic crisis, save jobs and restore confidence in the housing and financial markets, if it listens to the urgent message that home builders will be delivering on April 30. As the House stimulus bill moves forward and is reconciled with the Senate version, NAHB will continue to work with Congress to produce the best legislation possible. To view legislation, click here and type the bill number in the box at the center of the page. For more information, e-mail Scott Meyer at NAHB, or call him at 800-368-5242 x8144.
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:
Congress Told Builders Lead on Energy-Efficient HousingCalling green building “the next evolution in residential construction,” NAHB told Congress on April 24 that the best way to help small home builders promote residential energy efficiency and sustainability technology in home construction is by extending tax incentives for new energy-efficient homes. Testifying before the House Small Business Committee, Michael Hodgson, president of the Stockton, Calif.-based energy consulting firm ConSol, said that these incentives dovetail with the normal supply and demand for home construction. “A tax credit program leaves important production decisions in the hands of builders, buyers and home owners and does not require expensive administrative oversight that is usually associated with a mandate,” he said. Under current law, builders who construct a home certified to achieve a 50% reduction in energy use are eligible to receive a $2,000 tax credit. That credit is set to expire at the end of this year, and although pending legislation in the House and Senate would extend it, there is still no agreement between the two chambers over the appropriate budgetary offsets. “Unless Congress can end the political debate and extend this credit soon — with or without offsets — it will be a tremendous loss for my business and will eliminate the only federal incentive for efficiency in new homes,” said Hodgson. He also urged Congress to increase the dollar amount of the credit, because achieving the 50% threshold required by statute is costly, especially for small builders. Hodgson said that the housing industry is committed to the advancement of green building techniques that reduce energy consumption, improve indoor and outdoor air quality and conserve water and natural resources in both new and existing homes — all hallmarks of the NAHB National Green Building Program. “NAHB members are leaders in the green building movement and were active on this effort long before the recent media interest in climate change and global warming,” he said. “In fact, NAHB will be hosting its 10th annual National Green Building Conference in New Orleans next month and has consistently been ahead of the curve in promoting and developing energy-efficient and environmentally friendly construction techniques for the mainstream home builder.” NAHB and the International Code Council are awaiting final approval by the American National Standards Institute for the National Green Building Standard. The goal is to offer local jurisdictions an “off-the-shelf” green building program for all new homes and remodeling projects that is consensus-based and truly green, but flexible, said Hodgson. “Green building means making intentional decisions that positively impact energy efficiency, resource conservation and indoor environmental quality throughout the entire design and construction process,” said Hodgson. “Green means doing the right thing for the builder, the home owner, and, most importantly, the environment.” With the economy teetering on the edge of recession, Hodgson also called on Congress to move quickly to enact a housing stimulus package that will jump-start housing, save jobs and restore consumer confidence. NAHB is urging Congress to include the following tax initiatives in the bill:
‘National Green Building Standard’ Available in Mid-May From BuilderBooks.com The “National Green Building Standard” from the International Code Council® and NAHB, the first ANSI consensus standard on green building, will be available from BuilderBooks.com in mid-May. For multifamily, home remodeling and additions, site development and single-family housing, the standard covers lot design; resource, energy and water efficiency; indoor environment quality; and owner education. Visit BuilderBooks.com for availability in mid-May.
Home Building Helped in Anaheim Stimulus PackageThe city of Anaheim, Calif. recently enacted a comprehensive economic stimulus package that included several major actions — impact fee payments, first-time home buyer assistance, green building assistance, the development of affordable housing units and the authorization of a directional sign program designed to direct potential residents to new home developments — aimed at reviving residential construction. The Building Industry Association of Southern California, Orange County Chapter (BIA/OC) supported the efforts led by Anaheim Mayor Curt Pringle and the city council. “Given the tremendous amount of progress that the city of Anaheim has been able to accomplish over the last several years, many of the largest private investors in the city are residential and commercial developers,” said Kristine Thalman, CEO of the BIA/OC. “BIA/OC is proud to partner with progressive city leaders that understand the broader economic picture to find common sense solutions to some of the pressures that our industry is facing,” she said. Mayor Pringle championed the proposal — the most comprehensive approved stimulus package in Southern California, and perhaps, statewide ― to set an example to other cities. “This economic stimulus plan is going to allow Anaheim to get moving, to create many new neighborhoods and continue with the redevelopment of the Platinum Triangle,” he said. Equally important to the scope of the stimulus proposal is its timing. Because of the downturn, new construction in Anaheim has slowed considerably, which has had a ripple effect on everything from the furniture industry to the auto industry and countless local small businesses. For his role in championing the stimulus package, Pringle will be honored as the 2008 local government official of the year at NAHB’s Government Affairs Recognition Awards breakfast during the spring board meeting in Washington, D.C. this week.
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:
Attend the 2008 NAHB Legislative Conference on April 30
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:
Attend Government Affairs Recognition Breakfast on May 1Public officials, home builders associations and home builders who have advanced the needs and principles of the building industry and created more opportunities for the industry will be honored at a Government Affairs Recognition Awards breakfast during NAHB’s spring board meetings in Washington, D.C. The program will recognize federal, state and local officials for their support of the industry, as well as members and HBAs involved in BUILD-PAC and grassroots advocacy. The awards breakfast will be from 8:00-9:30 a.m., Thursday, May 1 at the National Housing Center. To purchase tickets, click here. Honorees include:
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:
Banks Tightening on Prime and Subprime MortgagesAlthough subprime adjustable rate mortgages are responsible for a disproportionate share of today’s foreclosures and for the losses that rattled the financial markets last summer, lenders are now tightening up on underwriting standards for all types
And while there are signs that the credit crunch for home buyers may be improving in high-cost markets — thanks largely to provisions in the economic stimulus bill passed in February temporarily increasing mortgage amount ceilings for Fannie Mae, Freddie Mac and the Federal Housing Administration — economists at the conference said that it will take time for investor confidence in mortgage-backed securities to be restored. “Banks in every category of mortgage lending have now tightened standards,” said Doug Duncan, chief economist for Fannie Mae, including their requirements for prime ARMs. In last year’s fourth quarter, roughly half of all banks participating in the Federal Reserve Senior Loan Officer Survey reported that they had tightened on prime residential mortgages, compared to more than 70% on subprime lending and 80% on nontraditional loans. Less than 5% of prime ARMS were delinquent for 90 days or longer in a Mortgage Bankers Association (MBA) survey for last year’s fourth quarter, Duncan said, compared to more than 40% of subprime ARMs. The share of prime fixed-rate loans during the quarter held fairly steady, in the range of less than 1%. Accounting for 6% of loans outstanding, subprime ARMs were responsible for a 42% share of foreclosure starts in the last three months of last year, he said. Prime fixed-rate mortgages were 63% of loans and accounted for 17% of the foreclosures started in the fourth quarter, and prime ARMs were 15% of all outstanding loans and 20% of foreclosure starts. Seven states in the fourth quarter accounted for almost half of all foreclosures though only about one-third of all outstanding loans, Duncan said. Constituting the hot markets where prices accelerated the fastest during the housing boom, California, Arizona, Florida and Nevada represented 24.7% of loans outstanding and 34.6% of foreclosures. States in the Midwest whose economies have been battered by a deep manufacturing slowdown — Ohio, Michigan and Indiana — had 8.6% of outstanding mortgages and were responsible for 11.9% of foreclosure starts, Duncan said.
The spread between 30-year fixed jumbo and conforming mortgage rates is at a record high — at 134 basis points, he said. A normal spread between the two would be 25 to less than 50 basis points. However, with Freddie Mac recently announcing that it has started to buy jumbo loans from big banks, Nothaft said that he has seen the spread start to narrow. In the meantime, private-label mortgage backed securities for the subprime, Alt-A and jumbo loans that fueled the housing boom have become non-existent, he said. In March of 2007, they were being issued at a rate of $100 billion a month, or more than $1 trillion a year. In March 2007, a total of $191 billion in mortgage-backed securities were issued. Fannie Mae and Freddie Mac now account for all mortgage loan securitization, with about $95 billion issued in March 2008. The spread between commercial mortgage backed securities and 10-year Treasuries has also reached record high levels, Nothaft said, because of “a dearth of investors.” “The price of credit risk has gone up substantially,” he said. But the cost will go down eventually “as liquidity is gradually restored to housing and market and investor confidence are restored.” Slower sales and refinancings will result in a 16% drop in mortgage originations this year, Nothaft forecast. 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. Big Builders Must Change or Face ‘Hyper-Competition,’ Analysts SayThe large, public builders will have to consolidate operations and focus more on construction than land development or risk facing “hyper-competition” with each other that could prolong the downturn, Wall Street analysts said at NAHB’s Spring Construction Forecast Conference in Washington, D.C. last week.
The big builders currently operate in 78 metro markets. Ten or more big builders are competing against each other in 19 of the markets and at least six big builders are competing in nearly half the metro markets. Reichardt said the top public builders have increased their liquidity during the downturn and are beginning to reduce their “store” count — the number of communities where they operate. But he added that they still risked remaining in a price-based competition with each other that would “mute the recovery” and “compound the cyclical excesses” largely because most of the big builders based their run-up during the boom times on land and are in too many markets. Goldberg said the public builders have “cut prices pretty drastically” to reduce their inventories, but that during the boom years most of the builders got more involved in development and buying raw land. “The industry must change,” Reichardt said. "Right now, the home building industry is a land-based business.” The large builders, he said, must “shift back to their core markets” and core competencies of “building and contracting.”
“The home building industry is really a manufacturing industry,” Reichardt said, adding that he hoped the big builders would “reinvent themselves by focusing on processes and efficiencies.” Going forward, Reichardt and Goldberg said that land development might eventually be conducted by developers partnering with “land finders” — people with enough money to invest in land development. Both said there were enough land investors waiting for the market to turn. In the near term, Goldberg said the public builders would have to get inventories under control and supply more in balance with demand. He estimated that there was an excess supply of 1.3 million homes on the market today, either for sale or for rent, and predicted that a million or more homes will end up in foreclosure as a result of the downturn. Goldberg said the tighter lending standards now in effect will drive less liquid builders out of the industry, but that the public builders will be able to survive. Reichardt said the downturn is pushing the big builders and the home building industry into a period of slower long-term growth and lower returns. "The growth phase will be much slower,” he said. In the short run, Goldberg and Reichardt both expect the big builder share of the market to shrink, but they said that, over time, their share would begin to increase again. Photos by Morris Semiatin 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. Strong Housing Demand to Return Following DownturnThe current housing downturn “is shaping up to be the worst in a generation,” Eric Belsky, executive director of the Harvard University Joint Center for Housing Studies, told NAHB’s Spring Construction Forecast Conference in Washington, D.C. on April 24.
The difficulty, Belsky said, is in “seeing beyond the pothole to the road ahead.” The view of a return to better times is currently being obscured by “ballooning” vacant units and dropping home equity and homeownership rates. Home owners lost 6.5% of their equity last year, he said, and home prices continue to decline. The housing boom was rooted in unusually low mortgage interest rates and tight markets where the local entitlement process made it difficult for supply to keep up with demand, he said. The homeownership rate actually peaked in 2004 before the surge in subprime lending, he pointed out, and has eroded because of rising interest rates and the rapid run-up in home prices compared to household income. Exacerbating the current housing downturn, Belsky said that first-time buyers entered the market at the peak of the cycle when home prices were over-inflated and financed their purchases with subprime mortgages that many are now having difficulty repaying, resulting in high foreclosures. The wildcard in Harvard’s housing forecast is immigration, he said. Going forward, the U.S. Census Bureau has predicted a 30% reduction in the annual pace of immigration, which has recently been about 1.2 million annually. Assuming that the recent rate of immigration continued, an estimated 14.5 million new households would be created between 2010 and 2020, he said. He noted that the Census Bureau has consistently underestimated immigration, and although its assumptions on immigration would reduce net household growth for the 2010-to-2020 period to about 13 million, that number would still exceed the household growth of the late 1990s. Belsky said that the impact of foreign-born and minority households on housing demand should not be underestimated in the period ahead. These households, along with those headed by persons under 35, have recently seen the largest growth in their homeownership rates and are a growing share of households. Photos by Morris Semiatin 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. IRS Withdraws Rules Harmful to Secondary Mortgage MarketIn a victory for home buyers and the nation’s housing industry, the Internal Revenue Service on April 22 withdrew harmful proposed tax regulations that would have impaired the operation of the secondary mortgage market. In late 2006, NAHB urged the Department of the Treasury and the IRS to withdraw the proposed regulations. Under the new rules, mortgages sold on the secondary market would have been treated as capital assets for tax purposes and losses on them could only have been deducted against capital gain income instead of ordinary business income. This would have reduced the demand for mortgage debt on the secondary market, ultimately increasing the financing costs of buying a home. More fundamentally, the proposed regulations would have interfered with the mission of the housing government sponsored enterprises of providing liquidity to the mortgage market. “The proposed regulations run counter to congressional intent and numerous tax court decisions and overturn decades of established practice concerning the tax treatment of assets sold in the ordinary course of a taxpayer’s trade of business,” NAHB wrote to the Treasury and IRS when the rules were proposed. For more information, e-mail Robert Dietz at NAHB, or call him at 800-368-5242 x8285. Want to Know the Housing Forecast for the Top 100 Metros? Find out in HousingEconomic.com’s 2008 to 2009 Metro Forecast (free preview). Get the metro forecast with in-depth analysis, overviews and downloadable Excel tables. To learn more, visit www.HousingEconomics.com. Free NAHB Kit Gives Builders Back-to-Basics Tips to Navigate the Slowdown What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn. To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. Useful Links to Monitor Economic and Housing TrendsThe following are links to useful information from government agencies and NAHB that will enable you to monitor the housing market. To access the latest information available, simply click the links.
Want to Know the Housing Forecast for the Top 100 Metros? Find out in HousingEconomic.com’s 2008 to 2009 Metro Forecast (free preview). Get the metro forecast with in-depth analysis, overviews and downloadable Excel tables. To learn more, visit www.HousingEconomics.com.
Free NAHB Kit Gives Builders Back-to-Basics Tips to Navigate the Slowdown What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn. To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. Builders' Tip: An Efficient, Less Frustrating Way to Paint Doors
Here is a simple way to take some of the frustration out of painting doors. As shown in the accompanying drawing:
— Charles P. McCausland, Hall, N.Y. 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. Market to Realtors Effectively With Online TechnologyOne additional Realtor®-based sale per community per month can have a dramatic impact on a builder’s gross profits. In today’s market, that’s reason enough to work closely with Realtors®. Realtors® play a significant role in 30% to 50% of a builder’s closings, yet many builders don’t include Realtors® in their overall marketing and outreach. Part of the reason may be because Realtor® sales are so fragmented. As many as 100 Realtors® may sell a builder’s homes, but only five or 10 of them are involved in more than one sale. In the past, building an effective Realtor® program to identify Realtors® and nurture and build their loyalty was time-consuming, costly and inefficient. Today, builders can successfully enhance relationships with Realtors®, both strategically and cost-effectively, by leveraging their Web sites and interactive marketing. Here are four marketing tips to help improve Realtor® relationships ― and stimulate Realtor® sales. Welcome Realtors® on Your Web Site Welcome Realtors® on the home page of your Web site and then direct them to Realtor®-specific pages ― this will show them that you are serious about building productive relationships. You don’t have to spell out your Realtor® policy and incentive structure on these pages, just make it clear that your company values their participation and collaboration. To see an example of how to welcome Realtors® on the Web, visit the David Weekley Homes Web site by clicking here and then scroll to and activate the Realtor® tab and pages. The welcome pages include Realtor® industry news, Realtor® testimonials and a “Realtor® Sign-up” section where they can get the latest news about new listings, grand openings and other events.
Include an ‘I’m Interested’ Section As part of the Realtors® section ― and to build the foundation of your interactive marketing — provide Realtors® with an opportunity to sign up for news about community openings and other events on the Web site through an “I’m Interested” section. Your onsite sales teams should also register key Realtors® who visit your jobs for this online communications. In both cases, be sure to let Realtors® know about the benefits of being on your distribution list. Be explicit about what they will be receiving — and when — and give them the chance to sign up for any other “special notification” lists you may have. The events and information you provide can range from special sales seminars and motivational talks with noted speakers that you are offering to details about your Realtor® co-op program and special promotions. To view an example of co-op program details that Centex Homes posts on its Web site for each of its marketing regions ― this one for the Washington, D.C. metropolitan region — click here. Once Realtors® sign on to your “I’m Interested” list, be sure to keep your electronic communications to them separate from those you send to your home buyer prospects. The message to each audience should be different, even if only slightly, and you don’t want to get the messages and information mixed up. Stay in Touch With E-mail Newsletters Consistent contact is far better than constant contact. When sending them a Realtors®-specific e-newsletter, make sure it contains information they want to read and that’s of value to them and will help them make money. Also, update the information regularly. For example, include information about your inventory and any discounts you offer that are tied to inventory units. (For their convenience, you may also want to add a link in your e-newsletter that goes directly to the inventory listings on you Web site.) Include Realtor® incentives, consumer incentives and other information that they may want to know. The key is to give your top Realtors® content they need to know — so they can better serve their clients. Always include a link to the Realtor® registration page within your e-mail, too, and encourage Realtors® to forward your e-mail to colleagues. This will help you grow your Realtors® list and cost-effectively broaden your marketing outreach. Create a Realtor® Loyalty Program There’s nothing better than recognition for a job well done, so create an incentive program to reward the top Realtors® who sell your homes and communities. You should also build loyalty among Realtors® who may not have sold many of your homes but who are willing to receive more detailed information from you in order to sell more. This is an important group to pursue. Make these Realtors® part of your “Realtor® Insiders Club,” and reward them for their loyalty with special access. They’re invested in their success. Let them know through your program that you’re invested in their success, as well. For example, e-mail these club members first about special closeout incentives. You can also be selective when e-mailing your Realtors® about individual lot specials. Most will welcome the information. Don’t Forget In-Person Outreach Of course, there is no substitute for in-person outreach. The Greater San Antonio Builders Association and the San Antonio Board of Realtors® have partnered together to create the online San Antonio Builder Guide (www.sabuilderguide.com) ― a marketing outreach to maintain “long-term, tactical and strategic relationships” between local builders and the real estate community. In the end, there’s no denying that Realtors® and builders have a symbiotic relationship. It simply makes good sense to work together. Blair Kuhnen is vice president and general manager of the consumer business unit of Builder Homesite, Inc.. Headquartered in Austin, Texas, HBI operates Web sites, including www.newhomesource.com and www.nhsprofessional.com, for a consortium of 36 of the nation’s largest home builders. For more information, call Kuhnen at 512-289-7370. 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.
NAHB Directory Provides Easy-to-Find Technology ServicesNAHB’s Technology Solutions Directory (TSD) is an easy-to-use directory that enables builders, remodelers, contractors and other industry professionals to find information on software, IT solutions and services for their businesses. The directory ― an online, 24-hour resource — will help building professionals find software providers for everything from construction-based accounting and budgeting to Computer Aided Drafting and Design (CADD), as well as companies that provide such services as Web management, IT consulting, financial control and more. To search the directory, log on to the NAHB Web site (www.nahb.org) and click Online Directories under the Resources tab. The directory is free to use, and NAHB members can post a standard listing for free. Software and technology solutions providers interested in being listed can sign up for:
For more information, e-mail Agustin Cruz at NAHB, or call him at 800-368-5242 x8472. The Technology Solutions Directory is solely for educational and informational purposes. Nothing in the directory should be construed as policy, an endorsement, warranty or guaranty by NAHB of the listed software, IT service or the software/IT vendor. NAHB expressly disclaims any responsibility for any damages arising from the use, application or reliance on any information contained in this directory. 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. Buyers Want Technology, Let Them See It in Model HomesBy Andrea Reiner, InnerSpace Electronics, Inc. Consumer demand for everything from faster Internet connections and monitored home security systems to flat screen TVs, iPods and other electronic devises has helped increase the consumer electronics market from $149 billion in 2006 to an expected $171 billion this year. To help potential home buyers better understand the technology options available to them, builders need to feature technological enhancements — the electronic amenities that will help turn a house into a home — prominently in their models where buyers will notice them. What Builders Are Installing According to the CEA’s sixth annual State of the Builder Technology Market Study, a supplement to NAHB’s Annual Builder Practices Survey, the top six technologies builders are installing include structured wiring, monitored security, multi-room audio, home theater, automated lighting controls and home automation. Many builders believe that home technologies make a significant difference in the marketing of their new homes, according to the study. About one-third of the builders reported that technology in the home helped them increase their revenue. Technology Benefits to Buyers Builders also need to promote the benefits these and other high-tech products bring to their home buyers. The primary benefits include control, savings, value, comfort and flexibility.
Like the times, technology is changing at a rapid pace. What was cutting-edge last year may not even be on the radar screen today. Keeping pace with technology can be a challenge for builders. Technology is ever-changing. Fortunately, builders don’t have to be technological experts to integrate the latest innovations into their homes. The key is to create close relationships with electronic systems contractors (ESCs). These professionals have the latest information in their field, and they are familiar with the building industry. They can effectively advise builders on the newest technology trends and how they can be implemented to benefit their customers. The Custom Electronic Design and Installation Association (CEDIA) — a partner with NAHB in the Home Technology Alliance (HTA) initiative to provide industry professionals a resource on electronic integration and home technology products and services ― has an online Finder Service at www.cedia.org to help builders and home owners locate a certified ESC partner. Andrea Reiner is an owner and co-founder of InnerSpace Electronics, Inc., a custom integration company for high-end clients based in Port Chester, N.Y. IEI designs and installs home theater, multi-room audio/video, lighting control, home automation, automated window treatments, acoustical design, soundproofing, telephone/intercom systems, computer networks and boardrooms. For more information, visit the IEI Web site at www.innerspaceelectronics.com. 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. Duplex Transformed Into Home for a LifetimeRecognizing the development, construction and marketing of livable homes and communities that improve the daily comfort, ease of use and safety for residents, NAHB and AARP honored five builders, remodelers and developers with the 2007 Livable Communities Awards at the International Builders’ Show in Orlando in February. Quality Design and Construction, a remodeler based in Raleigh, N.C., was one of the winners Guidelines and applications for the 2008 Livable Communities Awards are available online. The application deadline is June 6.
From top to bottom, Ann’s Ridge Road Dream was remodeled to become a home for a lifetime. Originally a duplex, the innovative project is the result of attention to detail and a dynamic working relationship between the home owner and the remodeler ― Quality Design and Construction of Raleigh, N.C. Peggy and David Mackowski, owners of the remodeling firm, won a Livable Communities Award from AARP and NAHB for the remodel. The awards recognize builders, remodelers and developers who have built creative and unique homes and communities with design features that improve comfort, ease of use and safety for their residents. At first, the home owner was only considering removing the wall separating the two units, but as the project evolved, it became a leading example of accessibility and aging-in-place design with many energy-efficiency features as well. A zero-step, street-side entrance leads into the house. Inside, the home has no hallways on the main level and each door is three feet wide or wider to maximize accessibility and sight lines.
The home owner controls the home’s zoned recessed lighting and task lighting with rocker panel light switches. The kitchen’s base cabinets feature pullouts or drawers with oversized handles for easy access. The laundry room feature tile flooring with epoxy grout for easy maneuverability and for low maintenance. There is a curbless shower stall with an integral seat and a hand-held shower on an adjustable slide bar off the owner’s bedroom. Though no grab bars have been installed, the shower was built so grab bars could be added in the future, if desired. In addition, anticipating that the home owner may one day face mobility challenges and possibly need a wheelchair, the bathroom was designed and built with ample turnaround space in front of the shower and multilevel countertops. Low-E windows are used throughout the home, which also has Therma-Tru front door. Apply for 2008 Livable Community Awards AARP and NAHB are now accepting applications for the 2008 awards program. Applications are due by June 6. For more information about the Livable Communities Award, e-mail Blake Smith at NAHB, or call him at 800-368-5242 x8583.
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. EPA Lead Paint Rule Published on Earth Day, April 22The U.S. Environmental Protection Agency's Lead: Renovation, Repair and Painting rule governing the work of professional remodelers in homes where there is lead-based paint was published in the Federal Register on Earth Day, April 22. The rule 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. It 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. The full rule and brochures for consumers and renovators can be downloaded from the EPA’s Web site. 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 Lonny Rutherford, CGR, CAPS, the NAHB Remodelers chairman and owner of Legacy Construction in Farmington, N.M. “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 For more information, e-mail Matt Watkins at NAHB, or call him at 800-368-5242 x8327. 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.
NAHB Has Free Materials Available for 'National Remodeling Month'The NAHB Remodelers has consumer brochures, advertisments, fact sheets, press releases and other tools available online to help remodelers promote their business during “National Home Remodeling Month” in May. Next month, the council will also launch a year-long "Remodel Now" companion campaign so remodelers, local councils and home builders associations can educate home owners about the benefits of remodeling. The "Remodel Now" campaign materials — which can be easily adapted — 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.
OSHA Begins Teen Summer Job Safety Campaign
“The Teen Summer Job Safety Campaign educates teenagers on the importance of workplace safety and health habits that will help protect them and their coworkers at work,” said U.S. Secretary of Labor Elaine Chao at the kickoff event on the “Today” show in New York City. As part of the campaign, OSHA will host and participate in career fairs, youth programs, expos and training seminars around the country to teach safety to the summer job seekers. Teens also can get more information on jobs in residential construction on a special OSHA Web site for teen workers. The site provides safety working tips, information on appropriate jobs, on-the-job hazards and career choices. According to the National Institute for Occupational Safety and Health (NIOSH), teens 18 or younger were treated for 54,800 work-related injuries and illnesses in hospital emergency rooms in 2003. Since only about a third of work-related injuries are seen in emergency rooms, NIOSH projected that 160,000 teens are hurt on the job each year. “NAHB works closely with OSHA to ensure the safety of workers of all ages on residential construction sites, but we have a particular interest in young workers as they are the future of our industry,” said Frederick Humphreys, president and CEO of the Home Builders Institute and a featured speaker at the kick-off safety event in New York. Know the Law Before Hiring Teens Home builders who are thinking about hiring teens for summer work need to know the laws governing the employment of minors. For example, under the Fair Labor Standards Act (FLSA), minors are not allowed to work in excavation, manufacturing explosives and mining; cannot operate many types of power-driven equipment; and cannot participate in any other occupation that is considered hazardous. There are exemptions for certain ages and functions, for family members and for 16- and 17-year-old apprentices and student learners, so builders need to carefully review the regulations. To download the Department of Labor’s (DOL) reference guide, the “Construction Employers Quick Guide to Teen Workers Rules,” click here for the English and Spanish versions. For information on the DOL Web site about hiring teens, click here. More DOL child labor resources are available at www.youthrules.dol.gov. Potential employers also can call 866-487-9243. NAHB-OSHA Alliance Support More than 800,000 home builders, their employees and contractors have received safety training over the past six years from on-site sessions, print and video materials or Web-based resources through the NAHB-OSHA Alliance. For more information, e-mail Gwyn Donohue at NAHB, or call her at 800-368-5242 x8447.
Boost Job Site Safety With Fall Protection Training Products In an effort to increase job site safety and reduce the chance of job related accidents, NAHB has produced the “Fall Protection Video, English-Spanish” and “NAHB-OSHA Fall Protection Handbook, English-Spanish.” Both are available through BuilderBooks.com. The 30-minute “Fall Protection Video, English-Spanish” can be used by builders to train workers to use safe work practices that eliminate fall hazards and comply with OSHA fall-protection standards. The “NAHB-OSHA Fall Protection Handbook, English-Spanish” provides guidelines for creating a written fall-protection plan and identifying safe work practices that can prevent costly accidents and injuries. Written with clear text, photographs and illustrations, the book serves as a user-friendly resource for promoting safety on any job site. To purchase the handbook and video online, click here, or call 800-223-2665.
Four common hazards cause 90% of the injuries and fatalities on residential construction job sites. The “Recognizing the Big-Four Safety Hazards for the Home Building Industry” course from The NAHB University of Housing shows how to comply with OSHA regulations and to recognize and minimize those hazards most likely to cause accidents. The course teaches builders to protect their workers from harm and themselves from liability. This course is also available in Spanish. To find out where upcoming courses are being held, click here, or call 800-368-5242 x8154 for more information.
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. 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. Katrina Relief Training Program Opening in Jackson, Miss.Expanding its relief program for displaced workers in the Gulf Region to a third location, Home Builders Institute (HBA), the workforce development arm of NAHB, announced that on May 12 it will begin providing Operation Reconstruct mentorship and on-site learning for 40 students in Jackson, Miss. Students who complete the program over the next year will receive the industry recognized Pre-Apprenticeship Training Certificate (PACT) as well as job placement support. Funded by Mississippi’s Department of Employment Security, the Jackson program will provide young people ages 18 to 21 with trades training, employability skills and academic studies. The Home Builders Association of Jackson and the state HBA of Mississippi will participate. Two years ago, HBI and partner The Paxen Group Inc. launched Operation Reconstruct to train New Orleans residents to assist in the city’s rebuilding efforts. In its first year, the program trained 145 students and successfully placed 75% of them in residential construction jobs. That success led to its replication in Gulfport, Mississippi in 2007. When Operation Reconstruct was first established, the Home Builders of Association (HBA) of Greater New Orleans played an instrumental role in the training process. Local builder members worked with students on community service activities and as part of their on-site training. “Operation Reconstruct has proved to be an effective solution for communities in the Gulf Region,” said HBI trustee and Mississippi native Annette Rayburn. “Many people in Mississippi are still putting their lives back together piece by piece. This program gives these young people an opportunity to gain valuable skills, practice their trade while still enrolled in class and know their training will also help others rebuild their communities and their lives.” For more information on Operation Reconstruct, e-mail Dennis Torbett at HBI, or call him at 800-795-7955 x8908.
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. Anti-Microbial Health Claims for Copper Alloys ApprovedThe U.S. Environmental Protection Agency has approved the registration of antimicrobial copper, brass and bronze with public health claims that they are capable of killing harmful, potentially deadly bacteria. Copper is the first solid surface material to receive this type of EPA registration, which is supported by extensive testing, the Copper Development Association (CDA) said last month. Independent tests found that copper and copper alloys have the ability to kill specific disease-causing bacteria, including Staphylococcus aureus, which is one of the most virulent strains of antibiotic-resistant bacteria and a common cause of hospital- and community-acquired infections. One study showed that on copper alloy surfaces, more than 99.9% of these bacterial “superbugs” were killed within two hours at room temperature. The EPA registration points out that the use of a copper alloy surface is not a substitute for standard infection control practices, including those related to cleaning and disinfecting environmental surfaces. “The copper alloy surface material has been shown to reduce microbial contamination, but it does not necessarily prevent cross contamination,” the registration says. “The use of copper alloys for frequently touched surfaces, as a supplement to existing CDC (Centers for Disease Control and Prevention)-prescribed hand-washing and disinfection regiments, has far-reaching implications,” CDA said. “Potential uses — that include door and furniture hardware, bed rails, intravenous (IV) stands, dispensers, faucets, sinks and work stations — can help reduce the amount of disease-causing bacteria in patient rooms.” Widely publicized statistics from the CDC estimate that infections acquired in U.S. hospitals affect two million individuals every year, resulting in nearly 100,000 deaths. Unlike coatings for other materials treatments, the antibacterial effectiveness of copper metals doesn’t wear away, offering “solid, long-term protection,” according to the association. There are ongoing discussions with major hospital equipment manufacturers about developing appropriate copper-based products. Copper in the Home On its Web site, (copper.org), CDA includes a Home Planning Series that features a set of articles specifically developed to provide useful information on various applications for copper and areas where it can be used. The information is presented in a clear and easy-to-use format, free of industry jargon or technical lingo, to answer specific questions consumers might have as they build a new home or make changes or upgrades to their existing home. Headquartered in New York City, the Copper Development Association is a member of the National Council of the Housing Industry — The Leading Suppliers of NAHB. This feature is solely for educational and informational purposes. Nothing on this page should be construed as policy, an endorsement, warranty or guaranty by the National Association of Home Builders of the featured product or the product manufacturer. The National Association of Home Builders expressly disclaims any responsibility for any damages arising from the use, application or reliance on any information contained on this page. NAHB-Produced Programs on DIY, Fine Living and HGTVThe NAHB Production Group produces weekly television shows on DIY, Fine Living and HGTV for consumers. The following is the latest lineup: "Rock Solid" on DIY
"I Want That" on Fine Living
HGTV Seeking ‘Dream Home’ Builder/Architect Teams HGTV is seeking developers, builders and architects to create dream homes for the network’s Dream Home Sweepstakes. To learn more, click here. About the NAHB Production Group The NAHB Production Group is a full-service, self-contained, media production unit creating programming for cable television, broadcast television, non-profit, museum and corporate clients. Productions range from magazine format shows for general audiences to museum-installation videos for specialized use. The production group includes award winning journalists, writers and photographers with experience in broadcast, documentary and corporate television.
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. Dan Rawls Co. Honored for McDonald House Rehab
“All you need to do is go to the children’s part of the hospital and see that little child with an IV in her arm — a little, bald child,” said Rawls, president of the Piedmont, S.C.-based Dan Rawls Company. “It breaks your heart.” Rawls’ annual holiday ritual represents only a fraction of what the home builder has done for seriously ill children and premature babies and their families in the Greenville area. He’s been instrumental in rehabilitating and maintaining Greenville’s Ronald McDonald House, which provides a home away from home for families of the children being treated by Greenville’s three hospital systems. For its work with the Ronald McDonald House, the Dan Rawls Company received honorable mention in the 2007 Builder Achievement Award for Outstanding Community Service from the National Housing Endowment, which was presented at the International Builder’s Show in Orlando in February.
But through the years and all the wear — Sorochak estimates that the Ronald McDonald House hosted 4,000 “family night stays” just last year — the volunteer help just wasn’t enough. So Sorochak went to Rawls for help. “When Bill Rawls says he’s going to do it, it’s a foregone conclusion that it’s going to get done,” Sorochak said. “The house was deteriorating,” said Rawls. “The paint was fading. The window seals were rotting.” Using labor and materials that were largely donated, Rawls renovated the entire house ― inside and out. Outside, he refaced the siding, installed new windows and a new roof and repainted. He also added two gardens. Inside, Rawls and his company remodeled the living suites — Greenville’s house is one of the few in the system that provides private living areas with bathrooms, televisions and telephones for its families. He also installed new appliances and added game and play rooms. Rawls’ generosity did not end when the renovation was finished. He and his company maintain the facility, and he’s been the prime mover behind efforts to double its size ― from serving 12 families a night now to 24 ― as well as to build an adjacent community center that could be converted into rooms for another dozen families. Yet, even if the capacity of the house were tripled today, Sorochak said that the facility would barely meet demand. The house currently turns away between 35 and 50 families a month, he said. Without the house, many families would not be able to stay near their sick children. Special rates at area hotels run about $89. While the house requests a donation of $8 a night, only about 30% of families who stay there are able to pay that nominal fee. Some families are in such dire financial circumstances that they arrive at the house without the money to pay for gas for the trip home, Sorochak said. Funding a future expansion will take a strong, local grassroots effort. “A lot of people have the misconception that McDonald’s funds the house,” said Rawls. “They don’t. We’re a 501(c)3 nonprofit organization.” Sorochak said Rawls knows how to get more bang for the buck. “He’s been able to stretch those dollars to give us things we’ve never had,” he said, adding that, after years of patchwork maintenance, the roof was a dream come true. “Dan is not shy about asking for anything.” As part of its award, Dan Rawls Company received a $1,000 donation from the endowment, which it gave to the Ronald McDonald House. Seven other builders were honored with 2007 Builder Achievement Awards for Outstanding Community Service during the presentation at the Builders' Show. The awards were established through a grant to the endowment by Isaac Heimbinder, chairman of Rockville, Md.-based BuildTopia, a provider of Web-based construction management software for home builders, and his wife, Sheila. For more information about the awards, e-mail Gwyn Donohue at NAHB, or call her at 800-368-5242 x8447. Apply for Herman J. Smith Scholarships by May 5
The Herman J. Smith Scholarship Fund, honoring 1981 NAHB President Herman J. Smith, provides assistance to graduate and undergraduate students studying construction management, mortgage finance and related fields. Last year, 10 students were awarded scholarships totalling $20,000. “We are so proud to work with the National Housing Endowment to provide educational opportunities for worthy students,” said Patsy Smith, who serves as a life trustee for the endowment. “Herman’s favorite motto was ‘always leave the woodpile higher than you found it.’ I believe this scholarship is a testament to his philanthropic work and to his great love of this industry.” Since its inception, the Smith scholarship has awarded more than $140,000 to exemplary students. Applicants interested in applying for the scholarship funds must be in a housing-related program such as construction management, construction technology, civil engineering, architecture, design or any of the trade specialties at a college or university. Preference is given to students who are residents of Texas or who are attending a Texas college or university, and who are active members in the NAHB Student Chapter at their college. To Apply Scholarship applications can be downloaded from the scholarship page of the National Housing Endowment Web site, www.nationalhousingendowment.org. Applications are available in Word format. About Endowment Scholarship Programs The endowment administers 12 scholarship programs and awards more than $400,000 each year to students pursuing careers in residential construction and related fields. For more information, visit the endowment Web site at www.nationalhousingendowment.org. Avoid Credit Card Processing Rate Increases With SolverasSolveras Payment Systems offers members and home builders associations the chance to avoid the Visa and MasterCard processing rate increase that the credit card companies recently announced. Solveras Payment Systems has negotiated a special deal for NAHB members that will allow them to avoid upcoming increases by Visa and MasterCard by contacting Solveras no later than Wednesday, April 30 and lock in pre-increase processing. Solveras’ free savings analysis shows in writing how this offer and NAHB’s benefit program can be a real money-saver. Solveras has provided thousands of analyses and consistently uncovers savings for two out of three businesses. Add that to the Solveras’ regular discounts on credit card processing, simplified monthly billing and an easy-to-read account statement, and you’ll find an excellent opportunity to keep more profit on every credit card sale. For more information, call 800-619-5301 or visit www.solveras.com/nahb. Be sure to mention NAHB when requesting a free savings analysis. Other Member Advantage Discounts For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to www.nahb.org/MA.
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. GM $500 Private Offer: Easy as 1-2-3Receiving $500 towards the purchase or lease of most new GM vehicles, whether for business or personal use, is now as easy as one, two, three. Follow these simple steps to get your GM authorization number and turn it in at your GM dealer for your $500 discount. The $500 NAHB private offer may be combined with most current GM incentives: One: Create a username and password.
Other Member Advantage Discounts For information on the Member Advantage discount program and all its participating companies, go to www.nahb.org/MA.
Free NAHB Kit Gives Builders Back-to-Basics Tips in Navigate the Slowdown What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn. To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. UPS Offers Up to 30% Discount to NAHB Members on ShippingNAHB and UPS, the world’s largest package delivery company, have joined forces to offer NAHB members discounts of up to 30% on shipping. The NAHB shipping discounts include domestic air and ground, international export and international import. Association members can also take advantage of hassle-free on-line shipping, 24/7 access and advanced package tracking at your fingertips. NAHB members are eligible for discounts up to 30% to help manage costs with no catch — and no minimums. The shipping discounts — which increase the more packages or letters the user sends — will be applied once enrollment is complete. The enrollment process is fast and easy and is available to NAHB members through the Web site: www.savewithups.com/nahb. For more information on UPS savings and the complete Member Advantage program, visit www.nahb.org/MA.
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. Calendar of Events
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. |