Nation's Building News Online: August 11, 2008Print All Articles Text Version |
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Pulte, Builders Promoting Home Buying Tax CreditAlong with builders, large and small, Pulte Homes is focusing the attention of its prospective customers on the benefits of the first-time home buyer tax credit included in the landmark housing stimulus legislation signed by President Bush on July 30. Richard Dugas, president and CEO of Pulte Homes, and other participants in an NAHB teleconference on Aug. 4, said they expected the $7,500 tax credit to provide a major boost to slow markets around the country, but noted that it is imperative for builders to get the word out about its availability. “Today, many consumers are well-positioned to buy a home but lack the confidence or incentive to jump into the marketplace,” said NAHB President Sandy Dunn. “This tax credit will help get them off the fence.” The tax credit, Dunn said, “will increase housing demand, get home buyers back into the marketplace and fight falling housing prices, which threaten the economy as a whole.” Dunn said that economists at NAHB estimate that the credit will be claimed by more than 2 million taxpayers during the roughly 15-month period it is available; first-time buyers make up about 40% of the home buying market. The credit applies to the purchase of any principal residence with the closing occurring on or after April 9, 2008 and before July 1, 2009. “I believe that the new housing bill will make a difference in my marketplace,” said Ed Brady, president of Brady Homes, an Illinois builder whose homes range from $100,000 condominiums up to $400,000 single-family houses. In the five cities where he builds — Bourbonnais, Peoria, Bloomington, Champaign and Springfield — Brady said that the key problem is an inventory backlog of about 10 to 11 months; in a healthy market the housing supply typically runs at five to six months, or lower. Brady said that the tax credit is “tailor-made” for his customer base, 40% to 50% of which is comprised of first-time buyers with annual earnings of less than $60,000 to $70,000. “Getting more first-time buyers into the market will help to whittle down existing inventory both for new and used houses,” Brady said. He also noted that the law provides Federal Housing Administration insurance for a program geared to preventing families facing foreclosure from losing their homes, which “obviously means fewer homes will go back on the market,” further helping to reduce inventories. “In turn, this will restore consumer confidence, help firm up prices and send a signal we are near the bottom of the market.” Brady said his business would also receive a boost from the simplified requirements for condominium loans contained in the housing legislation, and that provisions to enable the FHA to insure more home loans “will definitely make a difference at the affordable end of the housing market.” “In the past two years, I’ve already seen a noticeable increase in the number of my buyers who use FHA loans — up from about 2% to close to 15%,” he said. Pulte’s Dugas said that the tax credit “is a very positive step toward stabilization of housing and the financial markets” and “a much-needed turnaround in housing.” Because the tax credit applies to both new and existing housing, Dugas predicted that it might be even more effective than the $2,000 temporary credit enacted in 1975 by the Ford Administration, which was for new homes only. Over a period of nine months, the earlier tax credit helped clear off a then-record number of unsold homes for sale. Resales represent 80% to 85% of the homes on today’s market, he said. The biggest challenge for prospective buyers in Pulte’s Del Webb communities for active adults is the inability to sell their current homes, Dugas said. The tax credit, he said, will help sell many of those homes, enabling older home owners to “purchase a home they have their eye on.” The active adult business accounted for 50% of Pulte’s closing volume last year, he said. To help generate excitement over the availability of the tax credit, Pulte on Aug. 5 announced a promotional effort in which it will match the $7,500 for any buyer of its homes through Sept. 15. “As the downturn has gone on, buyers are looking for a good buy, and in many cases that’s a promotion event or activity to help focus them,” Dugas said. “New home builders have lowered prices 15% to 30% in many communities, and interest rates are likely to be going up from here.” A combination of lower home prices, low interest rates and the tax credit is “a powerful stimulus,” he said. Rob Dietz, NAHB’s director of tax issues, said that “like most parts of the tax code, it is important for home buyers and other participants in the housing market to understand the details in order to make informed decisions." To review the specifics of the rules for the credit and how it works, he said that builders and consumers can consult a Web page created by NAHB: www.federalhousingtaxcredit.com. In its first five days, the site had received more than 50,000 hits from unique visitors, Dietz said. Listen to a full replay of the teleconference by calling 877-344-7529 and entering 422013 followed by the # sign when prompted for the account number. The replay will be available until 9:00 a.m. on Aug. 19. For a previous NBN story on the tax credit, click here. For more information on the credit, e-mail Rob Dietz, or call him at 800-368-5242 x8285; or contact NAHB Public Affairs, x8447. Floor Plans: Rustic Charm Meets High-Tech Luxury and Comfort
Builder:
High on a mountainside in northern Vermont sits a rustic-looking home loaded with 21st-century technologies. Real Log Homes crafted the luxury log estate using 10-inch diameter Swedish Cope-style logs that make it look as though it had been on the site for generations. The property ― an 11,600-square-foot, three-level, seven-bedroom home ― is outfitted with state-of-the-art, wireless connections and programmable lighting and HVAC that can be controlled remotely. The second floor features a 9-inch open web floor truss system that masks the tech-smart home’s wiring and ductwork.
Two-story great room The great room features a custom-built entertainment center and an efficient, radiant-heat fireplace. Exposed floor joists below the balcony enhance the home’s rustic charm, while the air-exchange system with heat recovery keeps the home energy-efficient. As with the rest of the home, the kitchen combines modern and traditional materials. Mahogany cabinets are offset by digital lighting and a home audio system. An iron and Brazilian cherry two-story spiral staircase leads to a cherry hardwood flooring-lined foyer on the home’s main living level. The home and garage feature radiant floor heating throughout.
Iron and Brazilian cherry two-story spiral staircase Luxuriously-Crafted Spaces, One-of-a-Kind Details Exposed log joists grace much of the main living area, while a local artisan created the dining room table. A second-floor catwalk connecting the master suite and two bedrooms offers dramatic views of the Vermont countryside. The master suite boasts rich wood cabinetry in its bathroom and a unique, inlaid wood wardrobe in the bedroom. Outside, Seven North Log Homes built a handcrafted custom porte-cochere to help the home owners brave the worst winter elements Vermont has to offer.
Aug. 12 Audio Seminar to Look at Getting Hesitant Boomers to BuyIn an hour-long audio seminar from 2:00-3:00 p.m. EDT on Tuesday, Aug. 12, experts on selling to the 50+ market will give tips on how to get fence-sitting boomers and others in the 50+ market to buy now. “Get Hesitant Boomers to Buy Now!” audio seminar participants will discuss how to motivate prospective 50+ home buyers to move forward despite today's market conditions. Seminar panelists will discuss:
For more information, visit www.nahb.org/boomersbuynow. Participants will earn one hour of continuing education credit for NAHB’s Certified Active Adult Specialist in Housing (CAASH) designation. To Register Registration is $79 per phone site. Companies, local home builders associations and local 50+ councils are encouraged to register and can participate with one site registration fee. Click here to register. For more information, or to submit questions to be answered during the audio conference, e-mail Jeff Jenkins at NAHB, or call him at 800-368-5242 x8292. Improve Your Focus on the 50+ Market With Publications From BuilderBooks.com The 50+ market provides some great opportunities for builders today. BuilderBooks.com brings together the essential resources for builders seeking to grow their businesses while bringing high-quality product to this demanding, often affluent consumer group that has planned well and is ready to build or buy. BuilderBooks.com also offers publications on customer service so builders can start building strong relationships before breaking ground and turn these experienced consumers into enthusiastic sales people. To view or purchase these and a wide variety of industry publications online, click here or call 800-223-2665. The Certified Active Adult Specialist in Housing (CAASH) designation gives housing professionals serving the rapidly burgeoning 50+ market the essential knowledge, tools and skills that will help them succeed — from conducting initial research to design considerations and features to serving the customer. Find upcoming CAASH classes by clicking here. For more information, call the Professional Designation Help Line at 800-368-5242 x8154 or e-mail CAASHinfo@nahb.com. Builders Hear Advice on Making Job Changes in Tough MarketHome building professionals who are waiting out the currently tough conditions in many of Florida’s housing markets heard from a panel of experts at the Southeast Building Conference (SEBC) in Orlando earlier this month on what they can do to remain gainfully employed and position themselves to reenter the business when better times return. Speakers emphasized the importance of networking during these hard times and using the resources available to members of local home builders associations. Where appropriate construction-related jobs are scarce, they suggested, housing professionals should take stock of their skills, which can be applied to jobs in other fields. “We have been hearing more scary stories than a week-long Stephen King film festival,” said William Nolan, president of the Affordable Housing Institute in Orlando and task force vice president of The New American Home, but even under adverse circumstances displaced workers can make a successful transition and find employers who will hire them. “Never lose sight of the fact that you are a product to be marketed and sold,” Nolan said. “You need contacts, and look for knowledge and expertise outside of the industry that can be applied” to a job search, he advised, including volunteer work, membership in various organizations and educational courses. “It helps to have all the experience in the world,” he said, “but you also need the contacts. Get to know the people at the local and state home builders association, and make certain they remember you.” “If you want knowledgeable people to help you get a job, you have to have a contact to give you an edge over the competition,” Nolan advised. “You have to have many dimensions. You have to be known and respected by the movers and shakers in your community.” Don’t Beat Yourself Up With a background in data communications and 10 years of experience in residential construction management, Alan Anderson told the SEBC audience that the housing slowdown has forced him to move out of the housing industry and into a position as a career administrator for the Manatee County School Board. He is still working with area home builders, he said, talking to employers in the industry who are still hiring and helping prepare students for residential construction careers. As a volunteer as a technical advisor for construction, the former local HBA president and current Florida Home Builders Association director was able to use contacts he had made with the school board. “Don’t beat yourself up if you’ve been downsized,” Anderson said. “You have to do a good evaluation of your skills and how they can be used to find opportunities that are out there. And you need a diversion; maybe go volunteer to do something else and meet new people. Work those contacts.” Attending conferences such as SEBC is “a good way to run into people,” he said. “Keep your license up if you aren’t working on a steady basis” in home building, he added. “With businesses cutting back to stay solvent, you have to be ready to do other things, and networking will help you stay in the industry or stay connected to the industry until things come back,” Anderson said. “Talk to people in home builders associations all the time; they all reach out for you.” Moving to Texas Mary McDermott, of SCORE in Orlando, said that housing professionals who are going through a career change need to gather information and put a plan in place. For example, hot job lists for central Florida for the 2007 to 2015 period suggest construction opportunities for hospitals and nursing homes and healthy demand for repair and maintenance. Among Web site resources recommended by McDermott: acinet.org; bls.gov.oco/; bls.gov/LAU/; and online.onetcenter.org. The Web site for her own organization — score.org — provides resources geared to starting and running small businesses. By looking at geographical job data, builders who are discouraged by conditions in Florida may be able to find opportunities in other markets. In Florida, “there were 500 construction jobs in the last two weeks,” she said, “but that many in Houston alone,” and more than that many in Austin and Dallas combined. Or workers can consider the jobs that are growing in the construction field, McDermott said, such as surveyors and inspectors. “You might have to get a different skills set,” she said, but training resources are available through organizations such as associations and state career centers. Going into another industry is another alternative, she said, where builders can find demand for their abilities and experience in such areas as problem solving and cost management. “Get to know a person doing that job,” she suggested, “and ask them what it’s like.” The Perfect Job Candidate “Look at a job search as a full-time job,” said Anthony Martin, of Opus South in Orlando. “You should treat it just like you were employed. Set a plan for the day, execute it and review it at the end of the day.” Martin provided information on writing a resume that will be the one out of 200 that makes the cut and on making a favorable impression during a job interview. Resources are available from the Rockport Institute and Career Services at the University of Wisconsin at River Falls. “Put yourself in the employer’s shoes,” Martin advised. “What would make the perfect candidate? The best, most qualified person probably does not get the job. It goes to the person who markets themselves the best.” Kalamazoo Builders School Home Buyers on Tax CreditWith preparation the key for the Home Builders Association of Greater Kalamazoo (HBAGK) in Michigan, when President Bush signed the Housing and Economic Recovery Act of 2008 on Wednesday, July 30 the association already had the tools to get the word out to its local market on the financial benefits of the home buyer tax credit. “We put a lot of effort and time into the planning and execution of our public relations efforts in regards to the housing stimulus bill,” said Dale Shugars, executive vice president of the HBAGK. “We wanted to be ready to hit the ground running as soon as it was signed.” Multiple press releases were sent to the local media in the days before the signing urging the Administration to act quickly on the legislation, and a final release lauded the legislation when it became law. Because association staff members had spent a lot of time and effort on preparations to promote the tax credit to their local market, they were already prepared to hold a press conference the day after the bill was signed. Television, radio and print press attended, resulting in extensive coverage in the local media market. Examples of the media coverage included the Kalamazoo Gazette article, "Area builders welcome housing-rescue package,“ and WKZO AM 980’s report, “Housing Stimulus Package Headed for Domino Effect?” The local CBS-affiliate WWMT, Channel 3 featured information on the bill in “Housing Help,” which also promoted the press conference HBAGK was holding. "We received a great number of calls from the community after the press conference," said Faith Cervin, marketing director for the HBAGK. "We knew we had to educate potential home buyers on the credit, so we decided to hold a Home Buyer Workshop." A panel of local housing industry experts was convened on the afternoon of Aug. 6 to discuss the tax credit and answer attendees’ questions. The panel included Shugars, HBAGK President Jeffrey Smith, Greater Kalamazoo Association of Realtors® President Gary Brown, two mortgage lenders and a tax professional. The event was a success and the association is planning to do another one during evening hours to provide more opportunity for public participation. To help with their public relations effort on the stimulus bill, the HBA took advantage of the tax credit resources available in the Myth Buster section of NAHB’s Web site. “The resources were amazing and helped us get the word out about the tax credit to our local community,” said Shugars. “With these resources we can quickly address questions and demystify the tax credit for people in our community. We have become the go-to organization locally for people to get the information they need on the new tax-credit. This is a prime example on why it pays to be a member of NAHB.” NAHB members can use the tax credit resources — talking points, print ads, a consumer handout, an op-ed column, radio spots and banner ads — to promote consumer awareness of the credit in their own markets. A new consumer Web site, www.federalhousingtaxcredit.com, outlines the details of the tax credit and includes a set of comprehensive questions and answers about how the credit works and how consumers can take advantage of it. For more information on the Myth Buster tax credit resources, e-mail Gwyn Donohue at NAHB, or call her at 800-368-5242 x8447. Tax Benefits Make Now a Great Time to Buy a HomeLane Beattie, president and CEO of the Salt Lake Chamber of Commerce, calls the $7,500 tax credit to first-time home buyers in the new housing stimulus legislation an example of “trickle-up” economics. “As first-time home buyers enter the market, armed with an extra $7,500, they increase the demand for homes and in the process help stabilize the market value of homes,” he says. “As they purchase their first home, they free those who are selling their first homes to move up in the market to more expensive homes. Those who had $200,000 homes now buy houses in the $300,000 range. That allows more home owners to sell and move up in the market as well as allowing empty nesters and recent retirees an opportunity to downsize. Mortgage brokers, Realtors® and home builders receive critical new clients and the benefits don’t stop there. Sales of furniture, electronics, household items, landscaping supplies and home improvement items also increase. An escalation in sales also boosts manufacturing and shipping. The process profits the broader community because all these transactions infuse tax revenue into the system, benefiting the community in a variety of ways.” Beattie applauds Congress for providing this tax incentive for home buyers. “Now it is up to the American consumer to realize this is a great time to buy a home,” he says. “With interest rates between 6% and 7%, tax rebates and credits from the federal government and a buyer’s market, it’s a great time to make the American Dream a reality.” (www.sltrib.com)
‘Occupied to Sell’ Is Latest in StagingThom Scott, whose Nashville-based firm, Showhomes, fills vacant houses with furniture and people to live in them, says his business is booming. It’s generally accepted in real estate that vacant homes take longer to sell and fetch less than furnished ones. Showhomes stages and occupies pricier properties, and it, along with its clients, is changing with the times. “Upscale” homes depend on the locale, starting at $400,000 and going up from there, he says. The company, which is working with 20 to 25 properties in the Chicago market, finds “home managers” who move in and maintain the house for as long as it takes to get it sold. These days, that tends to be five to six months, Scott says. The resident manager pays a monthly fee to Showhomes, which Scott says averages $1,200 — a bargain, he says, for a grand home that might rent for $5,000 or $6,000. The furniture of the manager must pass muster and befit an upper-bracket home, although the company will buy additional pieces for those who don’t have enough. Also, the managers must pass a criminal background check and agree to keep the place immaculate so it’s ready to be shown at any time. “We’ve never had trouble finding managers — everybody wants to live in a $2 million or $3 million home,” he says. Home sellers pay the company one-quarter of 1% of the listing price for its services, and a “success fee” of one-quarter to three-quarters of 1% when the house sells. The company currently operates in 34 markets. (www.chicagotribune.com)
U.S. Realtors Use Tech to Weather Slowing Real EstateFour speakers at the Bloggers Connect Program at the Real Estate Connect conference in San Francisco said they use their blogs to target the right real estate clients and close sales, finding that they sometimes perform better than a Web site. As David Gibbons, director of community relations for Zillow.com, explained, “Own your blog as home content. Participate in as many online communities as possible and link them back to your blog. If there is a consumer asking a question, answer it. Be proactive.” Helping those who are making the effort are a host of smaller sites and services that allow Realtors® to connect to more consumers and get better noticed. If you need information feeds for your blog related to Boston, for example, outside.in tracks news, views and conversations in 11,860 towns and neighborhoods. It also consolidates the most active blogs in the neighborhood. Friendfeed.com allows you to track what friends are posting. No Realtor® in the U.S. who has begun to use the Net to push business needs to work alone anymore. Their business is the business of at least a hundred online companies that are constantly evolving services to make their business function better. (www.economictimes.indiatimes.com)
International Real Estate Investors Choose U.S. PropertiesWhile discouraging for American home owners, the weakening U.S. dollar and declining home prices are presenting opportunities for international real estate investors. The National Association of Realtors® estimates that between 150,000 and 190,000 homes were sold to foreign nationals from May 2007 to May 2008. The most popular states were Florida, California and Texas, but Arizona, New York, Washington and Nevada were also popular. Nearly half of all properties purchased by foreign buyers were located in the South; 25.4% of the sales occurred in Florida alone. The typical foreign buyer bought a single-family home at $297,400, intended for use as a vacation home, where the buyer stays for two months of the year, according to survey findings from the Realtors®. Forty percent of foreign buyers made the purchase in cash, compared to just 7% of domestic home buyers who do so. This represented a 12% increase from the 28% of foreign buyers who paid in cash during the previous year. Foreigners buy more expensive properties than domestic real estate investors; 14% of the homes they buy cost more than $750,000. Investors from China were the most likely to purchase properties at $1 million and more, with 14% of them doing so. The median price paid by real estate investors from China was $450,000, the highest median of any location in the report. (www.nuwireinvestor.com)
Most Banks Have Cushion of CapitalAlthough U.S. banks probably will continue to face tough times because of the weak economy and housing losses, they are in much better shape overall today than they were during the savings and loan debacle of the late 1980s and early 1990s, industry experts say. That’s because most banks, which are coming off several strong-profit years, are sitting on a lot of capital — money that is available to provide a cushion against losses. “The core of the banking industry is fairly sound, and the reason is that it comes into this, buy and large, with a fairly large capital position,” said Bert Ely, a banking industry consultant based in Alexandria, Va. “We will see more bank failures, but they will be mostly small banks that got too concentrated in certain types of risk — home mortgages, home equity loans, lending to builders, that sort of thing.” The main problem for banks is that home prices continue to plunge in the wake of mounting foreclosures, said David Ely, a banking professor at San Diego State University. So it’s hard to say just when a bank’s mortgage losses will end. Even though they’re facing trouble with mortgages, big banks today are diversified with several lines of business outside of housing, Ely said. They also operate in many regions across the country, and they continue to be able to raise additional capital if they need to. (www.signonsandiego.com)
Contractors Hit Roads After Housing SlumpThe slowdown in the housing market has pushed Ground Zero Construction, a road building company in West Siloam Springs, Okla., to look elsewhere for its next job, and it’s helped cities get more competitive bids for road projects. Dozens of small companies like Ground Zero, which rode the highs of subdivision construction over the past several years, are increasingly looking for work provided by cities. “The subdivision builders have shifted over,” said John Suskie, executive director of the Arkansas Asphalt Pavement Association. “They are versatile and can do that, but you are seeing that all over the country where the housing market has suffered. It’s not just Northwest Arkansas.” (www.nwanews.com)
Housing Collapse Ahead? Not According to the DataBy Charles W. Calomiris, Stanley D. Longhofer and William Miles Only four states — Arizona, California, Florida and Nevada — have had declines of more than 4% in home prices over the past year, according to the house price index of the Office of Federal Housing Enterprise Oversight. Some worry that OFHEO's index may be missing the full extent of the crisis because it doesn't include very high-priced homes with "jumbo" mortgages or homes bought with subprime loans — the ones being hit hardest. While one could argue that the index would be more representative if it included these transactions, the properties it does include represent more than three-quarters of U.S. homes. The OFHEO index provides broad coverage of large and small markets across the country, and each home is weighted equally. Furthermore, excluding subprime mortgages has an advantage — doing so makes the index a more representative measure of the homes owned by middle-class families. Fire-sale prices from distressed sales of subprime mortgages exaggerate the declines that patient sellers are likely to experience. This spring, it was much reported that the Standard & Poor's/Case-Shiller housing price index recorded a 14.1% decline from March 2007 to March 2008, and there is every indication that the index's June results will also be down significantly. But this is a poor measure of what is happening to the value of most homes. The Case-Shiller index includes no data from 13 states (representing 11% of the U.S. housing stock) and offers only partial coverage of 29 others (with 79% of U.S. housing). Homes in the areas omitted or incompletely covered appreciated at a slower pace during the housing boom, and their values have been more resilient over the past two years, so the data behind the index are biased toward the markets most susceptible to dramatic swings. Also, the Case-Shiller index weights transactions by value. For example, it gives eight times as much weight to the sale of an $800,000 home as it does to a $100,000 home, meaning it is particularly sensitive to what is happening with high-priced homes in the largest, most expensive markets. But even if price declines have been small so far, how can one gauge whether the increase in foreclosures will lead to accelerating decline? In our own research, we use quarterly historical (1981-2007) state-level data on the OFHEO price index, foreclosures, home sales, permits and employment to explore how foreclosure shocks affect future home prices. We conclude that declines in house prices are highly likely to remain small. Our analysis reveals, unsurprisingly, that foreclosures and home prices have negative effects on each other over time, but this does not imply a vicious cycle of collapsing prices. Our models predict that as foreclosures continue to climb in many states, house prices will remain flat or decline in those states — but will not collapse. One reason for this is that the effect of foreclosure shocks on house prices is small. Furthermore, other fundamental factors (such as employment growth and a slowing of the growth of the housing supply over the past year and a half) will cushion the impact of foreclosures. We constructed several forecasting models. Even under an extreme worst-case scenario for foreclosures, our conclusion was that U.S. house prices just aren't going to fall by very much in the next two years. In our worst-case scenario, the average cumulative decline is about 5%, and only 12 states experience declines greater than 6% by the end of 2009. The fact that home prices will remain stable does not imply that the housing downturn has been trivial. Indeed, the price stickiness has been reflected in the lower sales volumes and declining housing starts that we have witnessed for over a year. These factors have already slowed GDP growth. Many developers and financial institutions have been badly hurt. And some home owners who had the misfortune to buy in the hottest markets have experienced significant declines in value and will experience further declines. But fears of a huge loss in home values for most home owners — and especially for middle-income home owners — across the United States, and fears of the devastating losses by financial institutions that would accompany them, are greatly overblown. Charles W. Calomiris is Henry Kaufman professor of financial institutions at Columbia University and a visiting research fellow at the American Enterprise Institute. Stanley D. Longhofer directs the Center for Real Estate at Wichita State University's business school. William Miles is an associate professor of economics and Barton fellow at Wichita State. This article originally appeared in the Aug. 4, 2008 Washington Post. Reprinted with permission from the authors Housing Suppliers Help Push Housing Bill Into LawBuilding product manufacturers, suppliers and distributors played an integral role in helping to shepherd a landmark housing bill through Congress last month, according to NAHB President Sandy Dunn. “Getting the housing bill through Congress and enacted into law took a real team effort,” said Dunn. “We are especially grateful for the contributions of the Suppliers for Housing Group, a coalition of 13 U.S. manufacturers and distributors, who met with their lawmakers and ran full-page advertisements in Capitol Hill newspapers on the need to pass legislation to get housing and the economy back on their feet. Their efforts helped to push the legislation across the finish line.” H.R. 3221, the Housing and Economic Recovery Act of 2008, contains several provisions to stimulate the economy, save jobs and restore confidence. These include:
The Suppliers for Housing Group consists of the following companies: Whirlpool, ProBuild, USP Structural Connectors, Sherwin-Williams, Heat & Glo, Eaton, RUUD, Atrium Windows and Doors, Rheem, Heatilator, Sea Gull Lighting, MasterBrand Cabinets and Stock Building Supply. Together, these firms employ more than 150,000 American workers. To read the legislation, click here and enter H.R. 3221 in the box at the center of the page. For more information, e-mail Michael Strauss at NAHB, or call him at 800-368-5242 x8252. Housing Bill Bans FHA Seller Downpayment AssistanceThe landmark housing bill signed into law by President Bush last month (H.R. 3221) prohibits any of the funds for the downpayment on a single-family mortgage insured by the Federal Housing Administration from being provided by the seller or any other person or entity that benefits financially from the transaction, or any third party or entity that is reimbursed, directly or indirectly, by the seller or other party to the transaction. NAHB opposed this change and will be working with the Department of Housing and Urban Development and Congress to remove the ban on seller-funded downpayment assistance. Under Section 2113 of the housing bill, family members are allowed to loan downpayment funds to a relative who is purchasing a home, but the loan is required to be secured by a lien that is subordinate to the FHA-insured mortgage. Even though it is not specifically addressed in the new law, the FHA has confirmed that outright gifts from family members will still be permitted. There have already been efforts in the Congress to restore seller assistance for FHA downpayments. A bill introduced on July 31 by Reps. Al Green (D-Texas) and Gary Miller (R-Calif.), H.R. 6694, would repeal the ban on seller-funded downpayment assistance for certain FHA-insured mortgages. The bill also would overturn the 12-month moratorium on risk-based mortgage insurance premiums that were established under Section 2133 of the housing bill. If enacted, H.R. 6694 would require more stringent underwriting — including higher credit scores and counseling — for home buyers to obtain seller-funded downpayment assistance. The bill also would require higher risk-based mortgage insurance premiums for these loans based upon a borrower’s credit score. The FHA has interpreted “credit approval” as follows:
For more information, e-mail William Renner at NAHB, or call him at 800-368-5242 x8597.
Want to Know the Housing Forecast for the Top 100 Metros? Find out in HousingEconomic.com’s 2008 to 2009 Metro Forecast (free preview). Get the metro forecast with in-depth analysis, overviews and downloadable Excel tables. To learn more, visit www.HousingEconomics.com.
Free NAHB Kit Gives Builders Back-to-Basics Tips to Navigate the Slowdown What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn. To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. New Law Alters FHLBank Director Appointment ProcessThe process for becoming a Federal Home Loan Bank (FHLBank) public interest director has been changed by the housing stimulus legislation (H.R. 3221) signed into law last month. The legislation has replaced the Federal Housing Finance Board (FHFB) with the Federal Housing Finance Agency (FHFA), which has regulatory oversight over Fannie Mae and Freddie Mac as well as the Federal Home Loan Bank System. Previously, FHLBank boards both elected and appointed directors — who were officers or directors of member banks within an FHLBank’s district — apportioned among the states in the district. For appointed directors, each board was responsible for conducting a preliminary assessment of the candidates in its district and forwarding those it found most qualified to the FHFB for its consideration. The FHFB could appoint or reject any of the recommended candidates and could also call for the submission of additional candidates. Under the new process initiated by the housing bill, all directors are elected by FHLBank members. There is a requirement for some of the directors not to have ties to member institutions, and some of these must represent the public interest. However, the new regulator has no role in selecting directors. The FHLBanks will now nominate qualified candidates, and member banks within the district will elect directors from the list of qualified candidates. Candidates will continue to be required to submit a standardized eligibility form directly to the FHLBanks for consideration. All of the details in the new process are not yet known, but NAHB understands that sitting appointed directors will be able to serve out their terms. Among the provisions in the new law:
To read H.R. 3221, click here and enter the bill number in the box at the center of the page. For more information, e-mail John Dimitri at NAHB, or call him at 800-368-5242 x8529.
Want to Know the Housing Forecast for the Top 100 Metros? Find out in HousingEconomic.com’s 2008 to 2009 Metro Forecast (free preview). Get the metro forecast with in-depth analysis, overviews and downloadable Excel tables. To learn more, visit www.HousingEconomics.com.
Free NAHB Kit Gives Builders Back-to-Basics Tips to Navigate the Slowdown What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn. To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. Eye on the Economy: Housing Downswing Approaching a BottomThe U.S. economy is being whipsawed by a wide range of influences at home and abroad. These influences include wild fluctuations in energy prices, extreme volatility in national and global financial markets, a deepening housing contraction and important charges to economic policy. The government now says that growth of real gross domestic product (GDP) actually dipped slightly into the negative zone late last year, bolstering the case for a recession “call” by the Business Cycle Dating Committee at the National Bureau of Economic Research (NBER). On the other hand, GDP regained some footing during the first half of this year, particularly in the second quarter. The second-quarter pickup was due largely to support for consumer spending provided by rebates of personal income taxes under the Fiscal Stimulus Act of 2008. The trade sector also contributed mightily to second-quarter growth and federal defense spending provided solid support as well. These positives easily outweighed another sizable hit from housing as well as a major cutback in business inventory investment, leaving the “advance” estimate of annualized growth in real GDP at 1.9%. The Threat of Major Economic Reversal Still Lies in Front of Us The economic roadway promises to be even rougher in the second half of the year. For one thing, support to consumer spending from the income tax rebates will lose some strength in the third quarter and actually will convert to a negative “payback” effect late this year and in the early part of 2009. The incentives for business investment contained in the Fiscal Stimulus Act most likely will provide only minor support to the economy late this year. Ongoing deterioration of the labor market inevitably will weigh on both consumer and business spending as we move ahead, as will near-record energy costs. The drag from housing may very well ease off later this year, although significant positive GDP growth contributions from this sector are not likely before the second half of 2009. NAHB’s baseline (most probable) forecast shows a pronounced slowing of GDP growth during the second half of this year, with a virtual stall in the fourth quarter, followed by a gradual recovery pattern during 2009. This pattern, if achieved, presumably would not provoke an official recession “call” at the NBER. But it must also be stressed that our current baseline forecast is subject to substantial downside risk. The Labor Market Is Weakening on Cue The subpar pattern of GDP growth since the third quarter of last year, along with ongoing growth in labor productivity (output per hour), have produced systematic losses of payroll employment and increases in the unemployment rate. The weakening process has not yet reached typical recession proportions, but there’s certainly more to come. Non-farm payroll employment has been falling since the end of last year, and the cumulative decline (through July) comes to 463,000 ― an average monthly loss of 66,000 jobs. The civilian unemployment rate hit 5.7% in July, up by a full percentage point over the past year and the highest since March 2004. Broader measures of labor “underutilization,” including so-called discouraged workers and those limited to part-time work for economic reasons, look even more serious. Indeed, the U.S. Department of Labor’s broadest measure of underutilization (U-6) shows an increase of two percentage points over the past year to the highest level since September 2003. NAHB’s forecast shows continuation of moderate declines in payroll employment though the first quarter of 2009, and we expect the unemployment rate to top out at 6.1% in the second quarter of next year. Generation of slack in labor markets is a positive factor on the inflation front, of course, holding down growth of labor compensation and putting a lid on unit labor costs — good news for the Fed. The Fed Holds Steady and Worries Less About Inflation The Fed held short-term interest rates steady at the Aug. 5 meeting of the Federal Open Market Committee (FOMC), maintaining a 2% federal funds rate target and a 2.25% discount rate. This decision came on the heels of a July 30 announcement that extended the terms and conditions for the special liquidity facilities that the Fed had introduced earlier in response to severe inter-bank and investment bank funding pressures. The Fed has also made the discount window available to Fannie Mae and Freddie Mac, as part of a Fed-Treasury effort to restore market confidence in these government sponsored enterprises. The Aug. 5 FOMC statement noted that tight credit conditions, ongoing housing contraction and elevated energy prices “are likely to weigh on economic growth over the next few quarters.” The statement also noted that “inflation has been high…and some indicators of inflation expectations have been elevated.” But unlike the rather hawkish June 25 FOMC statement, the Aug. 5 statement suggested that the Fed views downside risks to growth and upside risks to inflation to be about in balance. This judgment was shared by 10 voting members of the FOMC, with only one member dissenting and voting in favor of a rate increase. The Fed expects a near-term slowdown in real economic growth and a slowdown in inflation at the same time (similar to NAHB’s forecast). In that environment, the Fed presumably will maintain a stimulative monetary policy stance that keeps the “real” federal funds rate in the negative zone for some time. NAHB’s forecast assumes the Fed will keep the nominal funds rate at 2% until the second quarter of 2009, followed by a series of increases that will move monetary policy back toward a neutral position. The Housing Downswing Is Still ‘Ongoing’ Recent housing market data support the Fed’s judgment that the stunning housing downswing extended through the middle of the year, at least on a national average basis, and that there’s still downward momentum in the housing market. Sales of new and existing homes continued to lose ground in June and house prices continued to fall in many areas of the country. The inventory of homes on the market remained quite high at mid-year, particularly on a months’ supply basis, and the supplies of vacant units for-sale and for-rent remained close to record levels. Faced with daunting imbalances between housing demand and supply, builders continued to cut housing starts and issuance of building permits in June, particularly in the single-family sector. Furthermore, NAHB’s single-family Housing Market Index hit a record low in July as builders’ assessments of current sales, buyer traffic and future sales all continued to decline. New Housing Bill Will Help Stem the Housing Contraction The Housing and Economic Recovery Act of 2008, signed into law by the President on July 30, contains a broad range of measures designed to help stabilize the housing and mortgage markets in the short term and to provide longer-term support as well. The most important short-term measures address the serious supply-demand imbalance in housing markets and strengthen the government-related sources of credit that now dominate the home mortgage markets. To help stimulate home buying in the short term, the bill provides a temporary $7,500 refundable tax credit for first-time home buyers ― details can be found at www.federalhousingtaxcredit.com. To help stem the flow of homes onto the for-sale market, the bill contains a temporary “Hope for Homeowners” program that engages the Federal Housing Administration (FHA) to enable strapped home owners with underwater mortgages to avoid foreclosure. Furthermore, state housing finance agencies are given temporary authority to utilize an expanded volume of mortgage revenue bond proceeds to refinance subprime ARMs that are generating serious payment shock. The bill provides support to home mortgage markets primarily by enhancing Treasury support to the embattled secondary-market GSEs on a temporary basis and by increasing loan-size limits for both the GSEs and FHA/VA on a permanent basis. It’s noteworthy that the bill eliminated use of seller-funded downpayment assistance for home purchases financed by FHA-insured mortgages and also increased the minimum downpayment required on FHA mortgages from 3.0% to 3.5%. These “negatives” for housing were enacted as part of an elaborate series of compromises and tradeoffs in the policy-making process. The net short-term effects of the new housing bill on housing and mortgage markets promise to be significantly positive. The provision of greatly expanded Treasury support to the GSEs, along with GSE assess to the Federal Reserve discount window, has quelled a budding financial market crisis and should compress the spreads between conventional conforming mortgage rates and yields on comparable-maturity Treasury securities ― federal backing went from implicit to explicit. The permanently higher size limits for loans purchased by the GSEs or insured/guaranteed by FHA/VA are big positives in mortgage markets that still are preoccupied with credit quality issues. The combination of the temporary tax credit for first-time home buyers and the “Hope for Homeowners” foreclosure prevention program is bound to reduce the supply-demand imbalance in the housing market and help stem the decline in house prices (everything else equal), and this process will be facilitated by the enhancements to the government-related components of the home mortgage market. The Housing Downswing Is Approaching a Bottom The current housing contraction already qualifies as the most serious of the post-World War II period, and there’s still downward momentum in many markets across the country. But the combination of income growth and house price declines has revived housing affordability, and growing proportions of consumers describe home buying conditions as “good.” It appears that large numbers of Americans now are seriously considering home purchases and we expect the temporary tax credit for first-time buyers to energize home sales over the balance of this year and the first half of 2009. We expect sales of new and existing homes to bottom out in the current quarter and embark on a gradual recovery process beyond that point. The inventory overhang most likely will stretch out the declines in housing starts and permit issuance into the early part of 2009, and we do not expect the housing production component of GDP (residential fixed investment) to turn up before the second half of next year. NAHB Chief Economist David Seiders analyzes the economy from the point of view of the housing market every other week in the free e-newsletter, “Eye on the Economy.” The preceding is a reissue of his Aug. 6 edition. To subscribe to “Eye on the Economy,” click here.
Want to Know the Housing Forecast for the Top 100 Metros? Find out in HousingEconomic.com’s 2008 to 2009 Metro Forecast (free preview). Get the metro forecast with in-depth analysis, overviews and downloadable Excel tables. To learn more, visit www.HousingEconomics.com.
Free NAHB Kit Gives Builders Back-to-Basics Tips to Navigate the Slowdown What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn. To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. Useful Links to Monitor Economic and Housing TrendsThe following are links to useful information from government agencies and NAHB that will enable you to monitor the housing market. To access the latest information available, simply click the links.
Want to Know the Housing Forecast for the Top 100 Metros? Find out in HousingEconomic.com’s 2008 to 2009 Metro Forecast (free preview). Get the metro forecast with in-depth analysis, overviews and downloadable Excel tables. To learn more, visit www.HousingEconomics.com.
Free NAHB Kit Gives Builders Back-to-Basics Tips to Navigate the Slowdown What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn. To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. Builders’ Tip: How to Fix Warped Cabinet Doors
My approach takes a couple of hours and $5 in materials. I make a U-shaped spring, or torsion bar, out of music wire and insert it into the door (see accompanying drawing). Music wire is commonly available in hardware stores and is much stiffer than regular mild-steel rods.
— Gregg Roos, San Francisco 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. Weak Dollar Spurs U.S. Home Sales to British BuyersNAHB’s International Department is advising association members of opportunities to market their homes to potential buyers in Great Britain. With the British pound remaining strong against the U.S. dollar and U.S. house prices softening, “many British buyers agree that now could be the perfect time to snap up a bargain in the states,” said Justin Figgins, director of Rightmore Overseas. “We have recently taken on listings from more U.S. developers and Realtors®, all keen to exploit Brits’ growing interest in the American market, and they have been delighted with the response and leads generated so far,” he said. “There is a real perception in the U.K. that as far as U.S. real estate is concerned, it is a buyer’s market.” RightmoveOverseas.co.uk is the United Kingdom’s leading international real estate portal. It is a division of Rightmove.co.uk, the U.K.’s leading property portal and its seventh most frequently viewed Web site. During the first half of this year, searches by buyers in the U.K. for real estate in the U.S. have risen by 50%, to a monthly average of 190,000, according to Rightmove. The statistics also show that the U.S. is now the third most popular country for Britons buying international real estate, just behind the traditional second home destinations of France and Spain. As well as vacation homes, buy-to-rent opportunities in the U.S. are also popular with British investors, and Rightmove Overseas recently assisted a British couple looking to purchase such a property. “The fundamentals were all good,” said Figgins. “The price had recently been reduced by 20%; a rental yield of more than 7.5% was achievable; and the property was located close to the airport and downtown offices, so it attracted good tenants,” he said. “The couple was also able to obtain a 70% LTV mortgage, which made the potential investment gains over a five-year period very attractive,” he said. “Another important factor in the couple’s purchase decision was the reasonable closing costs at around 3%; this compares very favorable with closing costs in Europe, which can be as high as 10%,” according to Figgins. For information on marketing real estate to British buyers on Rightmove Overseas, call Tom Whale at +44 (0) 1908 308 546, or send an e-mail. For information on international resources available from NAHB, e-mail Susanna Connaughton, or call her at 800-368-5242 x8415. What to Do When Money Is TightThrough your cash flow projections, you can see it coming. But despite your best efforts, there’s not enough cash to pay all your bills. What do you do now? Addressing a cash shortfall should be done early — and honestly. Almost all businesses experience a cash crisis. How you manage the crisis is the key. The steps you take — or don’t take — will affect your reputation and that of your business. They will affect your relationships with your employees, vendors and bankers. Ultimately, your decisions will determine if your business will survive. All this may sound dire, but it becomes so only if you ignore the situation. The following are several steps you can take to improve your cash situation quickly:
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.
Improve Business Operations With ‘Cost of Doing Business Study’ The “Cost of Doing Business Study, 2008 Edition,” available through BuilderBooks.com, enables home builders to compare their business operations with like-sized builders across the country so they can fine-tune their businesses and boost profits. The study analyzes several operational business categories ― including volume, operation type and land vs. no land costs ― and enables builders to identify their strengths and weaknesses, increase efficiency, set realistic budget targets and improve business practices. The categories have been analyzed, where applicable, by average and by the top and bottom 25% of performers by net profitability. Builders can use the the study to develop proven strategies to succeed in an increasingly competitive market. To view or order the “Cost of Doing Business Study” online, click here, or call 800-223-2665.
Missing a deadline can seriously damage your bottom line. The "Scheduling" course from The NAHB University of Housing shows building professionals how to set workable schedules and use various time-management tools. The course teaches the benefits of scheduling and integrating scheduling with other management activities and will help builders, remodelers and site managers deal with those days when nothing goes according to plan. Find upcoming Scheduling courses here, or call 800-368-5242 x8154 for 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. Aug. 21 Online Panel to Discuss Coping in Tough Times. FreeA builder, restructuring specialist, banker and bankruptcy attorney will give recommendations on how to cope with the current state of the industry during a free, 90-minute online discussion beginning 1:00 p.m. EDT, Thursday, Aug. 21. “Coping With Financial Distress” online panelists will provide tips on how to cope and survive, communicate and work with bankers, deal with bankruptcy, survive financial restructuring and protect company assets. Panelists include moderator Ron Robichaud, of Robichaud Financial Services in Laconia, N.H.; bankruptcy attorney Harley Riedel, of Stichter, Riedel, Blain and Prosser, P.A. in Tampa, Fla.; restructuring expert Troy Taylor, of Algon Group in Atlanta; and builder Randy Noel, of Reve, Inc. in New Orleans. The free conference is provided by Constellation HomeBuilder Systems and supported by NAHB’s Business Management & Information Technology Committee. Participation is limited to the first 200 registrants. For more information and to register, click here, or e-mail ckotsopoulos@constellationhb.com.
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. Learn More About Advantage of Systems-Built HomesIn an effort to expand industry knowledge about systems-built construction — including modular homes, building with panels, log homes and concrete construction — the NAHB Building Systems Councils is broadening circulation of its monthly e-newsletter, the Systems-Built Advantage, to enable any industry professional interested in learning more about the systems-built industry to subscribe. Available free, the Systems-Build Advantage includes:
For more information, e-mail Tony Gacek at NAHB, or call him at 800-368-5242 x8357.
Data shows that 25% to 30% of all new housing in the U.S. now uses systems-built technology. NAHB’s Building Systems Councils SHOWCASE ’08 on Nov. 16-19 in Memphis, Tenn. is the only conference focused on ways to advance and promote building systems — especially in today’s housing market. Network with industry leaders, connect with suppliers and attend education sessions tailored for systems-built housing. For more information, visit www.nahb.org/SHOWCASE. Enter Building Systems Councils Excellence Awards by Sept. 17
The entry deadline is Sept. 17. The awards are open to all BSC member manufacturers — concrete, log, modular and panelized — and associates and any NAHB builder member who uses building systems Awards categories in multifamily and green building for concrete, log, modular and panel construction have been added this year. As in the past, all winners will be featured in the January/February 2009 issue of Building Systems Magazine, in Nation’s Building News, on the NAHB Web site and through national and local press releases. Winners will be recognized and honored during a ceremony at the Building Systems Councils' SHOWCASE in Memphis, Tenn. on Nov. 16-19. Award winners also will be recognized during the 2009 International Builders’ Show in Las Vegas in January. To Apply Entry guidelines and submission forms are available online by visiting www.nahb.org/showcase and clicking the “Special Events” tab. For details specific to the marketing awards, visit BSC Excellence in Marketing Awards. Mail entries to: NAHB/Building Systems Councils
Early-bird entry fees, due Sept. 10, are $65. Regular entry fees, due Sept. 17, are $75. For more information, e-mail John Scott at NAHB, or call him at 800-368-5242 x8676.
Lean About Solutions That Build Your Business Data shows that 25% to 30% of all new housing in the U.S. now uses systems-built technology. NAHB’s Building Systems Councils SHOWCASE ’08 on Nov. 16-19 in Memphis, Tenn. is the only conference focused on ways to advance and promote building systems — especially in today’s housing market. Network with industry leaders, connect with suppliers and attend education sessions tailored for systems-built housing. For more information, visit www.nahb.org/SHOWCASE. How to Market Homes Using Social Networking SitesBy Edwin Scruggs and Steve Cox Computers and the Internet give us incredible new social networking opportunities to pursue sales leads that were unheard of as little as 10 years ago. Modern sales tools such as social networking sites, video hosting sites and Web blogs can increase your online exposure and credibility — giving you a form of virtual signage that will blow away those competitors who haven’t yet figured out that it’s a whole new century. Rule Number One: It’s Not the Technology, It’s the People Don’t let the technology throw you. Concentrate on the people aspects. From a sales perspective, the most important thing you need to know about the Internet is that it is rapidly becoming a more sociable medium. What started as a sea of interconnected computers to share technical information has grown into the world’s largest social community. The techno-gurus call this phenomena “Web 2.0” and, as always, where people gather to interact socially, there exists great opportunity for generating sales prospects. Social networking is certainly not a new technique to anyone involved in any type of sales. Community and professional organizations have generated valuable leads since the dawn of civilization. Applying essentially the same social techniques that work in face-to-face sales to the Internet allows you to extend your reach to potentially millions of prospective customers with virtually the same amount of effort that it used to take to do a single mailing. Regardless of your approach (or combination of approaches), the basic objective remains the same — to have the customer make that all important initial contact with you when it is time to buy. Produce Content People Want A big key to drawing visitors into any Web marketing strategy is to produce content that people will want to read and share with others. As a home building or realty professional, you can draw on a wealth of expertise and insight when creating original articles for their Web presence. These can dramatically increase site traffic and, in turn, enhance your credibility as an authority in your profession. Keep in mind one note of caution before you proceed. The Web strategies you employ can work against you if you use them improperly. If you are not willing to invest the time to produce original, compelling content, then don’t attempt these, or any other, Web marketing strategies. A poorly designed campaign will not only be an ineffective waste of your efforts, it can actually harm you in the long run. There is a saying among the technically inclined, “What’s published on the Web stays on the Web” ― and there’s a lot of truth to that adage. Unlike yesterday’s newspaper, which lasts for a day or two then winds up in the trash, the Internet tends to have a very long memory. For example, most Web users are familiar with the Google search engine and its Web cache features, but there are also other sites, such as Archive.org’s “Way-Back Machine,” that serve as a permanent archive of the Internet. Can you think of a better reason to put only your best foot forward on the Web at all times? Choose the Right Tools There are literally hundreds of effective Web marketing strategies. We will present a brief overview of a few of them. The terminology can be a bit off-putting at first, but a little research will help you learn how to quickly use these tools to your advantage. Your in-house Webmaster, if you have one, can often be incredibly helpful in identifying some of these opportunities and helping you to wade through the techno-babble. Social Networking Sites; Ready and Waiting to Be Mined If you’re not familiar with them, social networking sites such as MySpace and Facebook probably conjure up images of teenagers posting pictures and swapping gossip. Indeed, that’s how they started not too many years ago. But things have changed dramatically since then. Don’t be surprised to learn that a majority of your present customers may already be visiting and posting on these sites. According to comScore.com, more than half of the visitors to MySpace are now 25 or older. BusinessWeek reports that 41% of the visitors to FaceBook are over 35. There are literally millions of prospective clients out there on those two sites alone, and the numbers keep doubling every few months. How many of these could be your future customers? That depends on your strategy for reaching them. Establishing an account on these social networking sites sets up a business presence that allows visitors to preview content you have provided as a sample to entice them to your main Web site. Blog and announcement features on these sites allow you to maintain an active presence that gets you more noticed. Virtually every business with a commercial domain and Web site could benefit from this approach. Each social networking site on which you establish a presence is like a free full-page ad that runs forever. What a bargain. Online Ads Still Work, Too If you wanted to reach these social networking sites through more traditional means, direct advertising on these sites is fairly reasonably priced. Video Hosting Sites The video hosting site YouTube is taking the Internet by storm, frequently receiving more page views per day than that other monster, Google. It’s never been easier to upload and share video content with the world. Putting your video on YouTube will drive viewers to your main Web site — while also helping to improve your site’s ranking in the search engines. What kind of videos should you post on YouTube? You and your associates can offer home buying tips or neighborhood points of interest. You can offer home tours and neighborhood tours. Simple drive-through videos of area neighborhoods can be especially useful to those looking to relocate. Your video doesn’t have to be a slick production, either. But if you don’t feel comfortable displaying an in-house production, there are undoubtedly several independent videographers in your area who would produce videos for you at reasonable rates. YouTube is only one of dozens of sites on the Web that provide video content hosting for free, but its traffic is more than most of the others combined. You can post your videos on those sites as well, but keep in mind that once you upload the video it will run at no cost to you and, for all practical purposes, in perpetuity. Have you read about a bigger advertising bargain lately? Always Give Them Something For Free One thing about the Internet hasn’t changed ― it’s the best way to distribute information that has ever been invented. Use this to your advantage, and provide informative content to prospective buyers that they will find valuable. This includes information about your community― such as schools and commercial resources ― specific and general buyers’ tips, and insights on the current state of the real estate in your area. By giving your prospective customers information that is valuable to them, you create a bond that assists your sales efforts before you even talk to them. Plus, by being positioned as a “regional authority” in your profession, many prospective buyers will seek you out simply based upon your perceived credibility. Do not underestimate the power of this simple, yet effective technique. As with all techniques, the more time you put into it, the more sales leads you will get out of it. The Pitfalls of Being Pushy The power of social networking is that it’s social. People quickly form a connection with you, especially if you go about it casually and informatively. Don’t become overly aggressive in your presentations or it will turn off the very prospects you’re trying to reach. The moment your presentation starts to feel like an unsolicited infomercial pitch, most prospective customers will change the channel. Don’t Stop There. In addition to everything we’ve just discussed, there are dozens of other proven methods to help you increase your exposure on the Web. This article can’t even begin to scratch the surface on the possibilities available to you. Concepts such as podcasting, blogging, social bookmarking and incorporating RSS feeds on your Web site would also be well worth your time to investigate and utilize. It is vitally important to understand the need to make a commitment and start your Internet campaign with as many of these tools as your resources will allow. After all, that’s exactly what your competitors are doing. Edwin Scruggs, of Tennessee-based Leader Realty, has been involved in multi-faceted marketing promotions for more than 30 years, including his role as director of sales for several leading builders in the South, taking each company to the top in sales for its region. He is also a professional business coach and consultant with a proven track record in team building and sales training. For more information, e-mail Scruggs, or call him at 901-212-8257. Steve Cox (http://stevecox.com) is a technology consultant and Web designer for Fortune 500 companies and regional businesses. He is an author and instructor of educational and motivational classes for major corporations, including FedEx. Steve has been an engineer with Compaq Computer Corporation and host of the WMC-AM79 Memphis radio show “Internet Talk.” For more information, e-mail Cox, or call him at 901-458-6977. This article was originally published in NAHB's Sales + Marketing Ideas magazine.
For additional cutting-edge sales and marketing information, subscribe to NAHB’s Sales + Marketing Ideas magazine (www.smimagazine.com). Click here to learn about membership benefits of the National Sales and Marketing Council and the Institute of Residential Marketing. Builder Confidence in Condo Market Continues to ShrinkBuilder confidence in the market for condominiums continued to fall during this year’s second quarter, according to NAHB’s Multifamily Condo Market Index (MCMI), which was released on Aug. 8, leaving two of its three components at their lowest levels since the index was created in 2002. "Like the market for single-family homes, the housing slump and the recent turmoil in the financial markets are also distressing the condo market," said NAHB Chief Economist David Seiders. "The hope now is that the housing stimulus bill signed into law last by the President will support a much-needed turnaround in all sectors of the housing market, including condos." The milestone legislation is expected to bring a substantial boost to the housing industry in the form of a temporary tax credit for first-time home and condo buyers, as well as much-needed measures that will improve mortgage liquidity, foster refinancing of troubled loans and expand the supply of affordable rental housing. The newly enacted legislation offers first-time home and condo buyers a tax credit of up to $7,500 for closings on purchases from April 9, 2008 and before July 1, 2009. The MCMI is derived from a quarterly survey of multifamily builders and developers, and the index is rated on a scale of 0 to 100, with a rating of 50 generally indicating that the number of positive and negative responses are about the same. Condo developers reported that traffic of prospective condo buyers declined in the second quarter, pushing the MCMI component that tracks demand down to 28.1, nearly nine points below the 36.8 level for the same period a year earlier. The component of the index tracking supply fell to a record low of 10, down from 18 during the second quarter of 2007. Builder expectations for the next six months slid to 21.0, down from 26.3 during the same time a year ago. For more information, e-mail Ann Marie Moriarty at NAHB, or call her at 800-368-5242 x8350. Celebrate Remodeling at 2008 NAHB Remodelers Gala
During the gala, winners of the council's CADRE awards for achievements by local councils, Remodeler of the Year, Remodelers Hall of Fame and Homes for Life honoring excellence in aging-in-place will be named. The evening will include a cocktail reception followed by the awards presentation, dinner and dancing. The fee is $85 for NAHB members and $95 for non-members.
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. Member Profile: Putting Education, Helping People FirstThe latest in a series that profiles members of local NAHB Remodelers who are strengthening their local councils through networking and recruiting new members. The grassroots champions who are being highlighted in this series have collectively recruited more than 400 new members for the NAHB Remodelers to date. Greg Theis, CGR, CAPS
Greg Theis, owner of Greg E. Theis Remodeling, credits his business success for the last 23 years with being able to continually move in directions where he thought he would find new business or increased job satisfaction. Part of that journey led him from new-home building to remodeling. Along the way, he has actively pursued professional designations as a way of distinguishing himself in his marketplace — and to better meet his clients’ needs. Theis says he was the first contractor in St. Cloud area to earn the CAPS and CGR designations and he sees his own ongoing education as central to running a successful business. “Take the interest in green building that’s sweeping the country,” he says. “We all need to learn about it and see what parts of it we can use in our business to benefit our customers ― and take our businesses up a notch. “There’s always something out there that people should be learning to advance their business,” Theis adds. Using Learning and Employee Feedback to Keep His Business Strong He also believes education and leadership opportunities for his employees are central to his business success, as well. “Of course, I make sure my guys understand that our ultimate goal is building quality products,” he says, “but I’m fine with letting them develop their own ways to get there. I had a great coach who taught me to stop being the answer and start being the question.” “When there’s a problem on a job site, I might say, ‘Well, give me three solutions and let’s pick the best one,’” he points out. Not only does Theis encourage feedback from his employees, he has them regularly attend industry events and ongoing education sessions. “Some people are surprised when I bring my guys to trade shows and pay for their training,” Theis says, while noting that some of those same people have warned him about his employees someday walking away with all that knowledge. “It may be a little expensive, but I believe that when they come back from a show and get out in the field, I get it back 10-fold,” Theis says. “And if one of them does end up leaving, well at least I’ll have a smart competitor,” he adds with a laugh. Staying Connected Theis has been active in the Central Minnesota Builders Association (CMBA) since 1988. He has served as the HBA’s president and is currently chair of the CMBA Remodelers. He’s also a national director representing CMBA and is a trustee on both the NAHB Remodelors and CGR Board of Governors. Theis believes his Spike designation is due in part to his focus on selling the benefits of involvement, rather than membership for its own sake. He also encourages younger members to think of their membership strategically. “I tell them there’s no better way to meet the other trades people you can team up with or hire in the future,” he says. A Commitment to Helping People Theis has five full-time employees, including one who has been with him for 16 years. “My wife also works full-time in the business with me,” he explains, “and all together, we do between $1.2 million and $1.5 million in revenue a year,” he says. Theis says he spends more of his time behind a desk than he’d sometimes like. He prefers the building and problem-solving parts of the business. He also feels a commitment to helping his people grow so that they can provide the same level of creative thinking and attention to detail that he does. Theis often sees his company’s remodeling work — specifically, that which involves helping older individuals stay in homes — as more than just a business. “I really enjoy helping older people make their homes safe and comfortable,” Theis says. “It’s not only a revenue generator for me, it’s a way I can help my community.”
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. Earn Designation Credits at the Remodeling ShowNAHB Remodelers who want to learn more about green building, estimating, risk management and the latest technical skills and business practices, as well as earn designation credits, should attend NAHB pre-show education courses at the upcoming Remodeling Show in Baltimore. Pre-show courses will be held Sept. 7-9, followed by the Remodeling Show on Sept. 10-12. In addition, The NAHB University of Housing is offering two “PREP: The Professional Remodeler Experience Profile” assessments, the first step in the process of becoming a Certified Graduate Remodeler (CGR) before and after the show. The pre-show courses include: Sunday, Sept. 7
Attendance will be capped at 50 registrants per course. To register, visit the Remodeling Show Web site at www.theremodelingshow.com. 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. Blaze a Trail to Success at the Custom Builder Symposium Attend NAHB’s Custom Builder Symposium, October 24-26 in Austin, Texas and get the knowledge to make the most of the current market. Advanced education sessions and new tracks on design and technology provide tactics to help identify and capitalize on trends and areas of growth. Also, learn how to market your business to capitalize on the growing demand for green. Learn More About New Lead Paint Rule at Free NAHB SeminarsThe NAHB Remodelers will host several seminars at the upcoming Remodeling Show in Baltimore on the U.S. Environmental Protection Agency's recently-published rule governing the work of professional remodelers in homes where there is lead-based paint. A panel of experts from the industry and the EPA will give an overview of the new rule, Lead: Renovation, Repair and Painting, and answer questions about training, lead-safe work practices, cleaning verification and other practices specified in the rule. The seminars will be held at 1:00 p.m. on Wednesday and Thursday, Sept. 10 and 11, in Room 328 of the Baltimore Convention Center.
The EPA lead paint 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 will take effect in April 2010. 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 not equipped with a HEPA filter. The 2008 Remodeling Show will be held Sept. 10-12. For more information about the free seminars, e-mail Kelly Mack at NAHB, call her at 800-368-5242 x8451, or visit the NAHB Remodelers booth #2609 at the Remodeling Show. NAHB has prepared a free, lead paint resource document, “Lead Paint: EPA’s Final Rule on Remodeling and Renovation” to help remodelers understand and prepare for the rule. To review or download NAHB’s lead paint resource document, click here. Register for the 2009 Builders' Show in Las VegasRegistration for the 2009 International Builders’ Show (IBS) in Las Vegas on Jan. 20-23 — the single, most important and largest industry event of the year — is now open. This year, IBS will feature:
Full registration provides attendees with access to four days of exhibits on one million net square feet of exhibit space, all the educational sessions and new, daily-featured speakers. Full registration is $295 for members through Nov. 7 and $425 thereafter. Full registration for non-members is $475 and $575, respectively. Exhibits-Only Registration Exhibits-only registration is $50 for members through Nov. 7 and $100 after and $50 for their spouses. Exhibits-only registration for non-members is $100 through Nov. 7 and $200 after and $70 for their spouses. Education Session Tickets Exhibits-only registered attendees can purchase tickets to individual IBS education sessions. Individual tickets are $50 for members and $70 for non-members. Registrants can purchase packages of four tickets and get one free or seven tickets and get three free. (Attendees who purchase full registrations do not have to purchases education session tickets or exhibits-only registration.) To Register For registration information, click here. For hotel information, click here. To register online, click here. For the latest IBS information — including floor plans, renderings and construction photos of The New American Home — visit the 2009 International Builders’ Show Web site at www.BuildersShow.com. Register for Custom Builder Symposium in Austin, TexasRegister for the 2008 Custom Builder Symposium, NAHB's premier educational and networking event for custom builders. The symposium will be held Oct. 24-26 at the Hilton Austin in Austin, Texas. Blazing a Trail to Success This year's program, "Blazing a Trail to Success," includes education sessions, keynote and general session speakers and resources that will enable participants to improve their businesses and enhance their networking opportunities. NAHB Custom Home Builder of the Year Award The NAHB Custom Home Builder of the Year Award call for entries is now open. The award recognizes a custom builder for his or her outstanding leadership and business practices, as well as craftsmanship in building one-of-a-kind custom homes. To apply, visit www.nahb.org/customaward. The entry deadline is Friday, Aug. 8. The award will be presented at the symposium on Oct. 25. To Register for the Symposium Online registration is now open. For more information and to register, go to www.nahb.org/custom. For more information, e-mail Marcia Childs at NAHB, or call her at 800-368-5242 x8388. Strengthen Leadership Skills at Upcoming ConferencesExecutive Officers and home builders association staff members and volunteer leaders can strengthen their leadership skills and develop new approaches to management at one of two National Leadership Training Conferences to be held this fall. The first leadership training conference takes place immediately prior to The National Conference on Membership, Oct. 2-3 at the Iowa Events Center in Des Moines. The second is scheduled for Nov. 6-7 at the Intercontinental Hotel Buckhead in Atlanta. Strong association leadership requires continual learning and professional development. Participants will engage in high-level sessions on team planning, organization building, leadership development for association volunteers and ways to create a more dynamic organization — skills that will help them make membership more valuable to current and prospective members. Session highlights include:
Attendees also will have opportunities to network and share ideas and challenges with their association colleagues. To Register To register online for either conference and for more information, click here. Register for The National Conference on Membership and one of the leadership conferences and receive a combined discount. For more information, visit www.nahb.org/LeadershipTraining. 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. Indiana Gets Its First Certified NAHB Green HomeDavid Killion from Gentry Estates Construction in Bloomington, Ind. has built the first NAHB Green-certified home in his state. The company was the first in the area to jump on board the green home building movement a few years ago with homes certified by Energy Star and Environments for Living. As Gentry Construction started putting both of those green programs in its advertising, other builders quickly became interested. Gentry became a green builder to reduce the energy consumption and global impact of its homes, Killion says; and the NAHB National Green Building Program was selected to rate those homes because it includes criteria, verification and a third-party evaluation to back up the green claim. When people visited Gentry’s green entry in Bloomington’s Parade of Homes and didn’t find the solar panels they expected, they said, “Well, this doesn’t look green to me,” according to Killion. Specifications in the NAHB Green evaluation show otherwise. Following the NAHB Green rating system was easy because Gentry Construction was already using green elements in its homes, Killion says. Scoring its standard houses to see how they rated, the builder found several features in common with NAHB’s green program and identified new areas for improvement. “It wasn’t so far out of our way to do new practices and procedures,” he said. The most difficult part of the certification, Killion says, was getting the process started, seeing how it worked, putting the documentation together and getting it to the verifier, who was helpful in showing how to get the ball rolling. Gentry’s NAHB Green home scored 311 points, enough to qualify for certification at the Silver level. Getting more traction on the green designation with customers will take time, he says, because features that make the home special aren’t always readily apparent and need to be explained. But he is confident that the marketability potential is there and that green homes will draw more interest among buyers than those that are traditionally built. Among the features distinguishing Gentry’s green home building efforts:
Killion calculates that the additional cost of building the Silver-level house over a traditional home was about $6,000 and he says that Bronze-level homes are now the standard for Gentry Estates Construction. For more information, e-mail Betsy Schroeder, or call her at 800-368-5242 x8068.
The Future of Residential Construction Is Green 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. Earning the CGP demonstrates to clients and peers your commitment to the best and latest in green building practices and techniques. More than 500 people have earned the CGPdesignation to date. For more information, visit www.nahb.org/CGPinfo. Conference Promotes Trees in Public SpacesThe National Arbor Day Foundation is working with the Home Depot Foundation on a new national conference promoting the increased use of trees in public spaces. NAHB representatives will attend the “Partners in Community Forestry” conference, which is set for Nov. 18-20 at the Sheraton Atlanta Hotel. Included in the conference schedule is a presentation on the Building With Trees program, a joint project of NAHB and the National Arbor Day Foundation. Joining NAHB land use planner Ed Tombari will be two past Building With Trees Awards winners, Frank Steward, CEO of Northland Development in Burlington, Mass.; and Kirk Bone of Parker Development in El Dorado Hills, Calif. The awards program recognizes builders and developers who have taken special efforts to retain existing trees and plant new ones while constructing homes and creating new subdivisions. The session will focus on Building With Trees case studies and the home building industry’s contribution to tree preservation and development in new communities. Registration forms and additional information is available at the conference Web site. For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132. Water Efficiency Leader Awards Deadline Aug. 29Apply for the U.S. Environmental Protection Agency (EPA) Water Efficiency Leader Awards.
Water-efficient products and technologies used within larger products are eligible. Candidates from anywhere in the U.S. may apply. The application deadline is Aug. 29, and the award winners will be announced late this fall. For more information, visit www.epa.gov/water/wel. Arizona Builders Dispute Santa Cruz River DecisionNAHB has joined home builders associations in Central and Southern Arizona to protest a U.S. Army Corps of Engineers determination that the Santa Cruz River, fed mostly by wastewater from treatment plants, should be classified as “traditional navigable waters” protected under the U.S. Clean Water Act. The controversial finding was based on misleading historical documents, the home builders say, including a 19th-century promotional land sales brochure showing “ocean-going steamships moored at a busy Santa Cruz River wharf.” The Corps’ recent decision can have a profound impact on the home building industry and where new housing can be built in Arizona. While the Clean Water Act should protect more than just traditional navigable waters, NAHB said, agreeing with the 2006 Rapanos ruling by the Supreme Court, there needs to be a consistent way to define these waterways. “It’s not whether the Santa Cruz River may be regulated under the Clean Water Act,” said NAHB Duane Desiderio, NAHB’s staff vice president for legal affairs. “It’s whether it really is a traditional navigable waterway,” a question that has a bearing on its tributaries and the lands surrounding them and could have consequences for future decisions on other questionable waterways, he said. Connie Wilhelm, president and executive director of the Home Builders Association of Central Arizona, and Ed Taczanowski, president of the Southern Arizona Home Builders Association, joined NAHB in signing a July 25 letter to the assistant secretary of the U.S. Army spelling out why they disagree with the determination from the Corps’ Los Angeles District office that parts of the river in southern Arizona are navigable waters. Posted earlier on the Corps’ Web site, the decision has now been removed pending further policy review. The 13-page letter cites a 2006 decision by the Arizona Navigable Stream Adjudication Commission, which researched historical records to determine that “the Santa Cruz Valley has served as an overland trade route since prehistoric times, but there is no documented record of any trade or travel on the river.” Instead, commerce in the area has been “accomplished by horseback, wagon, pack mule, trains and later automobiles as the road system improved.” The occasional flow of water in the Santa Cruz River has been used to irrigate nearby farms and provide some domestic water supply, but never for boating or shipping, the records show. Among other documentation used by the Corps to decide that the river once was navigable is a group of boaters’ humorous newspaper account of floating down the river in a canoe after a flooding rainfall in 1993. The trip lasted for three miles. “Even more troubling is the failure to acknowledge the role that sewage effluent plays in maintaining minimum flows,” the home builders’ letter said. The U.S. Geological Survey has determined that the base flow for part of the Santa Cruz River is regulated by a Rio Rico sewage treatment plant and that there is no natural flow for the river during most of the year, NAHB said. It’s unclear whether the Corps will respond to the concerns voiced by home builders because the agency is not required to accept public comment in making or in changing its determinations, Desiderio said, but builders are hoping that the decision will be reevaluated. “It’s frustrating, because this determination has serious implications and there were no public hearings or formal opportunities for comment,” he said. For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132. Register for Construction Law Seminar on Sept. 11-12
David Jaffe, NAHB staff vice president for construction liability and legal research, will participate in a Sept. 11 panel discussion on “Today’s Legal Challenges in Representing the Home Builder.” Other panelists include Jeffrey Berger, general council and secretary for the home building operations of St. Louis-based McBride & Son Enterprises, and Jeffrey Masters, partner in the litigation department for Cox, Castle and Nicholson, LLP of Los Angeles. In addition to the home builder-specific panel, the two-day seminar will also include topics such as right to repair statutes; the business and legal risks associated with building green; destroying or defending construction witnesses with technology in the courtroom; and more. The seminar will even feature a hands-on construction session that will enable participants to build a construction component. The seminar is open to coverage attorneys, in-house counsel for construction or engineering firms, class action coordinating counsel, construction litigators, claims professionals, home builders and product manufacturers. The seminar is being conducted by DRI, the Chicago-based national organization of defense trial lawyers and corporate counsel. To Register For more information and to register, click here, or call 312-795-1101. To read the seminar brochure online and download a faxable registration form, click here (in PDF format). Dozier Academy Sees First HBI/Project CRAFT GraduatesContinuing its efforts to prepare Florida youths for careers in the home building industry, the Home Builders Institute has graduated 57 young people this summer from its award-winning program for adjudicated youth — Project CRAFT (Community, Restitution, Apprenticeship-Focused Training). Ten students were members of the program's first graduating class from the Arthur G. Dozier School for Boys in Marianna, where HBI operates Project CRAFT in partnership with the Florida Department of Juvenile Justice and Washington County Schools.
While enrolled in the program, the students completed a variety of educational projects in preparation for jobs in residential construction. Much of their training took place at the Dozier School, where rehabilitation projects keep students busy pouring sidewalks, expanding a training center and applying carpentry and landscaping skills to campus beautification efforts. Students also pursued their education off-campus, completing a number of community projects — from building park benches and signs to working with Habitat for Humanity. Bill Paul, a Tampa area builder/developer and HBI's immeidate past chairman, made the trip to the state's panhandle to attend the event. "Graduations are important to our Project CRAFT programs. They give all the people involved a sense of accomplishment, and our guests can see the strides that each one of these young people has made," said Paul. “This graduation was a particularly emotional event as some of the students shared their stories with the audience. Many said they changed their entire outlook on life over the course of their training, and it’s inspiring.” Paul has been instrumental to the success of Project CRAFT in Florida, working tirelessly with local legislators to highlight the program’s lengthy list of benefits to its students and the community at large. The day after the ceremony, Ethan was the first graduate to officially leave the school. He is working in the maintenance department at Mandarin Pine Apartments in Jacksonville, earning $12 an hour. In October, he will be eligible for benefits and an apartment in the complex, at a reduced rent. HBI, the workforce development arm of NAHB, operates Project CRAFT training programs at nine sites in Connecticut, Florida and Tennessee. The program has been recognized by members of the U.S. Congress as a model intervention for adjudicated youths, with graduates averaging an 85% job placement rate. For more information on Project CRAFT, e-mail Dennis Torbett at HBI, or call him at 800-795-7955 x8908. Home Builders Institute Offers New Program to Teach English to Spanish Speakers Sed de Saber™-Construction Edition is an easy-to-use, take-home learning tool created by Home Builders Institute (HBI) to improve job site communication, construction quality and safety by teaching English to Spanish-speaking workers, who make up 25% of today’s construction industry workforce. Sponsored by Lowe’s Commercial Services, Sed de Saber™-Construction Edition was developed by a team of subject matter experts — including superintendents, craft skills experts, remodelers and builders — to ensure that its contents was relevant to today’s home building workforce. HBI also created a seventh book based entirely on the NAHB-OSHA Job Site Safety Handbook to address job site safety issues related to the language barrier. Sed de Saber™-Construction Edition uses proven LeapFrog technology to allow learners 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 about five months. Learning at home, on their own time, also eliminates scheduling conflicts. NAHB members can purchase the learning system, all seven books and a skills assessment to chart progress for $395 per kit. The non-member price is $495. Order today at www.seddesaberconstruction.com or at www.lowesforpros.com. NuTone Ironing Centers Increase Storage SpaceAmong the new products exhibited at PCBC earlier this summer, NuTone’s Ironing Centers provide increased storage space, installation flexibility, high-quality ventilated metal construction and many options and accessories. The Deluxe and Standard models feature shielded lighting, automatic power controls, a safety switch that automatically shuts off electricity when the door closes, a silent timer that controls the power supply, a power-indicator light and a convenient built-in outlet. The Deluxe model also includes a 180-degree swivel board to accommodate small spaces and can be adjusted to different heights to provide maximum comfort for the user. “These innovative features give consumers what they have asked for — silent timers, improved lighting, space for irons (even while they are hot) and extra shelf space for spray bottles and other accessories — needs that are not currently being met by other products on the market,” said Karen Formico, marketing manager, ironing centers, Broan-NuTone. All the Ironing Centers are available without a door, allowing home owners to choose a custom door — unfinished oak raised panel, unfinished birch flat panel, white raised panel or beveled panel — or create a door to match their own woodwork. The Basic and Standard Ironing Centers are also available with white raised panel or simulated oak raised panel doors as a complete package. All doors include a magnetic catch to keep them safely closed when they are not in use. With the option of recessed- or surface-mounted installation and the ability to mount the doors on the right or left, NuTone Ironing Centers give home owners the flexibility to place the unit where it is most convenient — master bedroom, laundry room, kitchen or family room — saving time and space without compromising their décor. All units include a cover pad and door hinge kit and come pre-assembled and ready to install. Optional accessories include a sleeve board and surface mount collar. Replacement cover pads and hinge kits also are available. Door dimensions are 16 and 1/16 inches wide by 50 inches high, and the unit requires a rough opening of 14 and 1/8 inches wide by 49 and 1/4 inches high by 3 and 7/8 inches deep. Headquartered in Hartford, Wis., Broan-NuTone 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. Herman J. Smith Scholarship Award Winners Announced
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. This year, 12 students were awarded $2,000 scholarships each:
“The local Fort Worth, Texas scholarship committee is inspired every year when we review the biographies, academics and future plans of students in housing related careers who apply for the Herman J. Smith/National Housing Endowment Scholarship,” said Patsy Smith, who established the scholarship in her husband’s memory. “We are happy to serve in making an impact for the future of housing in America.” The Smith scholarship committee also awarded a $10,000 grant to the Home Builders Institute Fund for Excellence in the Trades, an HBI administered grant that supports students who are training in the various home building related trades. “We are pleased to present these scholarships in honor of the memory of Herman Smith. The students that these scholarships support are a testament to the legacy that Herman has left the housing industry,” said Gary Garczynski, endowment chair and 2002 NAHB president. Since its inception, the Smith scholarship fund has awarded more than $150,000 to 100 students. More Endowment Scholarship Programs The endowment administers 12 scholarships and awards more than $350,000 each year to students pursuing careers in residential construction and related fields. For more information, visit the endowment's Web site at www.nationalhousingendowment.org. Bust Media Myths Confidently With Spokesperson TrainingNAHB Public Affairs has created a comprehensive set of materials — Myth Buster resources — to help NAHB members and local home builders associations fight inaccurate media reports and get the facts about their particular housing markets out to buyers. Armed with these resources ― including market profile statistics for 360 individual markets, analyses of key economic reports, template press releases, talking points and more ― members and HBAs can contact their local media to explain how well their market is doing compared to national statistics. HBAs have successfully convinced their local media of the viability of their home markets in California, Georgia, New Jersey, Kansas, Connecticut, Florida, Oklahoma and other markets across the country by using Myth Buster resources. Leaders of local and state home builders associations and their members can build confidence and learn the latest interviewing and presentation techniques to bust myths in their markets through NAHB’s “Spokesperson Training” program during the association's fall board of directors meeting in San Diego in September. Time is running out. Both sessions were sold out at the spring board of directors meeting and few spaces remain for the fall sessions. Sessions are limited to 12 participants each day
The program includes two different one-day seminars:
Interview Skills and Presentation Skills cost $495 per person for each one-day seminar. More than 15,000 NAHB leaders have taken Spokesperson Training since the program began in 1979. For more information or to register, e-mail Brooke Fishel in NAHB Public Affairs, or call her at 800-368-5242 x8061. 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. Save $25 on Hertz ‘Green,’ ‘Fun’ or ‘Prestige’ Weekly RentalsNAHB members can save $25 on weekly rentals of Hertz “Green,” “Fun” or “Prestige” collection vehicles in the U.S. No blackout dates apply. All collection vehicles can be reserved by make and model. Fun vehicles include SIRIUS Satellite Radio. Green Collection vehicles are fuel-efficient and environmentally-friendly. Prestige vehicles include NeverLost® in-car satellite navigation. For information about this offer and Hertz collection vehicles, click here. This $25 offer is valid through Dec. 31, 2008. For information on special NAHB member savings with how NAHB members can join Hertz #1 Club Gold® with the fee waived for the first year (a $60 value), click here. 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 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. 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. 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.- |