Nation's Building News Online: September 8, 2008Print All Articles Text Version |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NAHB to Look at Restoring Home Finance System Health
In a statement issued shortly after the Treasury Department announced on Sunday, Sept. 7 that it was taking over the two mortgage industry giants, NAHB Executive Vice President and CEO Jerry Howard said: “At this critical turning point, it is essential that government regulators and all parties involved in the nation’s housing finance system work together to rebuild the nation’s secondary mortgage market — a move that is absolutely vital to provide affordable mortgages for America’s home buyers and to help spur an economic recovery. “In that regard, NAHB looks forward to working with the current policy makers and stakeholders, as well as the next Administration and Congress on their ongoing efforts to restore the financial health of Fannie Mae and Freddie Mac.” NAHB has established a high-level task force that will meet next week to discuss the long-term implications of the federal government’s decision to take over the two housing government-sponsored enterprises (GSEs). Moving forward, the task force will develop a series of policy recommendations on how to restore the health of the nation’s housing finance system. Treasury Secretary Henry Paulson and Federal Housing Finance Agency (FHFA) Director James Lockhart announced on Sept. 7 that FHFA was placing Fannie Mae and Freddie Mac into conservatorship and that the Treasury Department would provide financial support to the companies under authority established in the GSE portion of the Housing and Economic Recovery Act of 2008. Lockhart stated that the move was required because Fannie and Freddie had become unable to balance the pursuit of their housing mission with safe and sound operations. Paulson cited the risk to the financial system of Fannie’s and Freddie’s large portfolios and said that he would not have opened access to the government backstop without the safeguard of conservator oversight. Both officials said the immediate objective is to stabilize the mortgage and financial markets, improve affordable housing opportunities and speed a housing recovery. Conservatorship means that the companies will function temporarily under management appointed by FHFA to operate the firms on behalf of the agency. The idea is to shore up the firms during the conservatorship period so they can return to independent operations on sound footing. As Sec. Paulson stated on Sunday, Fannie Mae and Freddie Mac were open for business as usual on Monday. The current CEOs, Fannie Mae’s Daniel Mudd and Freddie Mac’s Richard Syron, have been dismissed from their positions (along with the companies’ boards of directors) but will stay on as advisors during a transition period. The conservator CEO for Fannie Mae is Herb Allison, who worked for decades at Merrill Lynch and most recently served as chairman and chief executive of TIAA-CREF. David Moffett, the new chief executive at Freddie Mac, is a former vice chair and chief financial officer of U.S. Bancorp. For more information, e-mail David Ledford at NAHB, or call him at 800-368-5242 x8265. Floor Plans: Ranch-Style Living for Active Empty Nesters
Home: Mountain Mist, Backcountry Collection
When Shea Homes created the Mountain Mist model for its Backcountry homes in the master-planned community of Highland Ranch, Colo., the builder targeted sophisticated, empty nester, active adult couples with a net worth of $500,000 or more. Designed for people who have the time and resources to take full advantage of their natural surroundings, the homes are just steps away from neighborhood parks, a 467-acre undeveloped wilderness area and 70 miles of hiking and biking trails. The Mountain Mist home also was designed to give potential home owners the flexibility to match their home to their lifestyle as well as incorporate many of their aging-in-place needs so it could be their home for years to come.
Dining room The ranch-style home comes with three bedrooms, two-and-a-half baths including a spa-like master retreat, an optional library or study, great room with fireplace and volume ceiling and separate mud and laundry rooms. Chic outdoor spaces include a spacious front entry with a courtyard and a covered outdoor dining terrace with a fireplace. The home also has a three-car tandem garage and an optional basement living area. The lower level has space for wine storage, a bar, billiards, chess, darts and a large screen TV as well as a bedroom and a home office.
A Touch of Tudor a Mile High The home’s interior design was inspired by its Tudor-style exterior. A brick facade wraps the arched entry to the dining room and a two-story fireplace in the great room. The warm colors used throughout the interior, coupled with ebony floors and granite counter tops, allow for seamless integration of heirloom furnishings and contemporary accents in the home. Highlands Ranch, located 12 miles from Denver, is a 22,000-acre community founded in 1981 that boasts a population of 93,477 in 29,040 single family homes and 3,305 apartments.
Builders Ask for Energy Code Changes to Be Cost-EffectiveAs NAHB members prepare for the International Code Council’s final hearings in Minneapolis later this month, builders are leading opposition to the so-called “30% solution,” a package of energy code changes promoted by a coalition of advocates, including window and insulation manufacturers. “We believe in energy efficiency, and we are concerned about the effects of climate change and the consequences of our continuing reliance on fossil fuels and what that means for the country we leave our children and grandchildren,” said NAHB President Sandy Dunn. “The country is looking for an answer, and the 30% solution advocates would like to think they have found it,” Dunn said. “Their argument is simple, catchy, and best of all, it claims to solve the problem. 'Vote for our side,' these advocates say, and the issue goes away. Too bad that it’s not true.” “The 30% solution raises more questions than it answers,” she said. “Many of its parts have no basis in building science or practice. It’s too expensive. And because its backers include only a small part of the building industry, the solution addresses only a small part of the challenges and opportunities presented by energy-efficient homes.” “The truth is that all of us — home buyers and home builders, environmentalists, elected officials and taxpayers — are in this together,” Dunn said. “We have at our disposal a wide variety of new technologies, knowledge, materials and skills. We won’t solve our nation’s energy efficiency problems by forcing home buyers to purchase and install only the proponents’ new products.” No Cost-Benefit Analysis Advocates have failed to provide any technological, performance or cost analysis in support of their proposal, saying it’s not necessary. “Cost-benefit analyses for energy-efficiency improvements provide relatively little value in evaluating proposals due to the myriad assumptions that must be made,” they wrote. Dunn also pointed out that improving the efficiency of the building envelope — the walls, foundation and attic, doors and windows — only partially addresses the energy consumed in a home. “Kitchen and laundry appliances account for about a third of home energy use, and they are not addressed by this proposal. Increasing the efficiency of the heating and air conditioning system or water heater reduces energy use — and that’s not fully addressed by this proposal,” she said. “Should homes have more insulation? To answer that, we have to consider the climate before deciding how much is appropriate, which the energy codes do now. But the 30% solution would require R-20 wall insulation everywhere, no matter what the climate. In Climate Zone 4, that would cost about $3,500, and the cost savings would only be $87 a year.” Regulating Consumer Choices and Home Costs “It’s disingenuous and misleading to make arguments that belittle the issue of affordability or that equate consumer choice with fire and life safety issues, which is what building codes are for,” Dunn said. New homes already are built to be considerably more energy-efficient than the homes of 20 years ago as the industry makes advances in building science — including technologically advanced heating and air-conditioning systems; new choices for siding, windows and insulation; and more efficient appliances and fixtures. “NAHB supports code change proposals that can make homes safer, healthier and more energy-efficient when the payback for the cost of these proposals is 10 years or less. We don’t think it’s fair for home owners to pay for more,” Dunn said. “In support of that, though, we would also like to see more research and development that would bring in technologies that can meet that cost threshold and be practically available throughout the country.” “We need balance, with breakthroughs in building science and innovative new techniques weighed carefully against their cost, efficacy, availability and ease of implementation. The so-called 30% solution is no solution at all,” she said. For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132. ‘Residential Performance Guidelines’ Available From BuilderBooks.com "Residential Construction Performance Guidelines," the industry's most widely-accepted reference on how homes should perform, is available from BuilderBooks.com. This fully revised and updated reference, with almost 300 guidelines in 12 major construction categories, including 50 new guidelines on cabinets, cement board siding, concrete, countertops, drainage, driveways, drywall, landscaping water infiltration and more, was created specially for builders and remodelers to help successfully manage customer expectations while delivering high-performance homes and protecting their bottom lines. The reference also includes new remodeling-specific content italicized throughout for easy identification. To view or purchase this publication online, click here, or call 800-223-2665. First Time Home Buyers … Celebrate!Builders such as Ivory Homes are trumpeting the $7,500 tax credit for first-time home buyers as one of the great reasons to buy a home today — others being reduced prices and historically low interest rates. “This is a huge help to someone who is struggling to afford a home,” said Clark Ivory, CEO of the Utah-based company. Ivory said he’s finding that “90% of the people out there haven’t heard about this. That’s why we’re really advertising this. We’re going to make a big deal out of this.” Ivory is part of an effort by the Salt Lake Chamber and the Utah Association of Realtors® to get the word out about the tax credit and how it could provide a big boost to the housing market locally. Radio advertisements touting the tax credit are part of the group’s campaign to increase awareness of the incentive. Ivory acknowledges that his company and others will benefit from increased sales. Several buyers who have recently purchased homes pointed to the credit as the motivating factor, he said. “This could mean an extra 100 sales that we will get before July 1 of next year that we otherwise may hot have had,” he said. Ivory expects to close 750 homes in the state this year. (www.sltrib.com)
A Housing Flip-Flop; Local Market Now Most ‘Undervalued’ in State, Study FindsSan Diego, which three years ago had one of the most overvalued housing markets in the country, is now the most undervalued in California, according to the economic and financial analysis company Global Insight. The market has improved because housing prices have fallen about 32% from their peak, while incomes have continued to increase. “A metro area like San Diego has, in a sense, fallen too much,” said James Diffley, who directs Global Insight’s regional services group. But he cautioned that prices could drop an additional 10% over the next year before they level out and start climbing again in 2010. He cited the continued influx of foreclosures on the market, the weak economy and tougher lending standards that will make it difficult for buyers to get mortgages. Drawing on data from National City Corp. in Cleveland, Global Insight said San Diego single-family resale housing, which had a median price of $349,300 in the second quarter, was 17.2% undervalued, based on household income and prices. In the second quarter of 2005, single-family housing, then with a median price of $505,900, was 39.1% overvalued, it estimated. In national terms, San Diego ranked as the 29th most-overvalued market in 2005 and, most recently, the 33rd most-undervalued in the ranking of 330 metro areas. (www.signonsandiego.com)
250 Square Feet Condos Target Young First-Time BuyersStarting at a price of $279,000, a San Francisco design and development firm has begun marketing 98 tiny condominiums — ranging from 250 to 350 square feet — at the Cubix Yerba Buena building in SoMa. Architect George Hauser is the first to say the studios are too small for many people, families in particular. He and local planning groups, however, believe the so-called micro units represent one means of providing more first-time home-buying opportunities in a city where most prices outstrip most incomes. The kitchen area includes a mini sink, two-burner electric cooktop, half fridge and microwave-convection oven. The appliances are stainless steel; the countertop synthetic brown stone. There isn’t room for a bed and a sofa, so each studio is staged with a sofa-bed. They come with a wardrobe, but no closets. The concrete-floored rooms have windows the height of the nearly 9-foot ceilings, and all but two have small balconies. The bathroom is fairly large, squared off with translucent glass walls and adorned with slate or quartz tile. The median price for all homes in San Francisco was $749,000 in July, according to MDA DataQuick of San Diego. Given the generally high cost, only 39.3% of city residents own their homes, the lowest level among the state’s counties. (www.sfgate.com)
Student’s Novel Idea for Housing Is Tiny HouseEstimating $14,000 in living expenses for two years in New Haven, Conn., while a graduate student at Yale University, Elizabeth Turnbull decided to live in an 8-foot by 18-foot “Tiny House” that was built atop a flatbed trailer. It has a tiny sleeping loft, a storage loft, a study nook, a kitchen area, a living area and a bathroom. The house is so compact, she expects to light it and power her cell phone and laptop computer with the energy generated from three solar panels that total about 18 square feet of surface. She’ll cook her meals and heat the house with propane, at an estimated maximum of $200 yearly. The house has a recyclable aluminum roof, uses recycled boat sails for ceilings, features insulation from a waste soy product and environmentally friendly paints. Many fixtures and building materials were donated by people who had lumber or hardware left over from a household renovation or expansion. Assuming it meshes with local regulations, she’ll have a composting toilet that recycles human waste. The bathroom — toilet and shower stall combined — measures 3 feet by 3-1/2 feet. She expects the house to cost about $11,000 when finished and furnished. (www.courant.com)
A New Way to Tap Home EquityThree companies with sophisticated capital market backers — REX, EquityKey and Grander Financial — are offering cash to owners who agree to cut them into some of the future appreciation of their properties. For example, REX offers $70,000 cash to the owner of a $900,000 house who is willing to share 30% of future appreciation. That rises to $117,000 in exchange for a 50% share. Existing equity in the home — and future value growth attributable to capital improvements — are not affected. There are no interest rates or monthly payments, and the timing of the end of the agreement usually is up to the property owner, although it’s generally tied to a sale. Unlike a reverse mortgage, where interest charges accrue and are added to the debt that must eventually be repaid, all of REX’s receivables are tied to the future growth — or decline — in the value of the real estate. REX makes its profit or takes its loss when the house is sold or the agreement otherwise ends. At that point, the owner repays the cash he was advanced. If values remain flat, the home owner repays that amount, without interest, out of the sales proceeds. If values go down, REX takes a loss equal to the value change it shared in the agreement, thus reducing but not eliminating the home owner’s loss. (www.washingtonpost.com)
Boom Times for Job Site ThievesAccording to professional home builders, law enforcement officials and insurers, larceny at residential construction sites across the country has increased significantly in the last two years because of soaring prices of building materials like copper, lumber and cement. NAHB estimates that the annual cost of theft to the industry has reached $5 billion. The problem has meant higher material and insurance costs for builders, who pass them along to buyers, sometimes to the tune of tens of thousands of dollars. In the end, that can add as much as 10% to the cost of a home, builders and developers said. A cottage industry of guard services, surveillance devises and private investigators has emerged to prevent theft as well as catch thieves in the act. Larceny is an issue at commercial sites, but residential projects are particular targets because they are often easier to access. The situation is worse in regions where home building remains relatively strong, like in parts of Texas, North Carolina, New York and Louisiana, and remains a problem in states where home construction has slackened, like Florida, Nevada, Michigan and Arizona. “Builders in Chapter 11 and lenders foreclosing on properties still under construction aren’t as diligent about security,” said Mark Ouimette, managing director at Beecher Carlson, an insurance company based in Atlanta that underwrites policies for home builders. Police from Tucson to Miami report that thieves often peruse foreclosure filings to find idle and unsupervised projects. Insurers like Beecher Carlson said that theft has forced them to increase home builders’ insurance rates by 10% to 15% in the last two years. But even builders who erect fences and install surveillance cameras are losing materials as thieves become bolder in a weakened economy. “They’ll take anything that’s not nailed down, and even stuff that is nailed down,” said Jeff Stokley, a developer who builds houses in the Wilmington and Cape Fear areas in North Carolina for $175,000 to $225,000. “They’ll rip copper wiring out from behind the Sheetrock.” (www.nytimes.com)
Housing Rally Draws Hundreds to State Capitol in AtlantaMore than 200 home builders, remodelers and Realtors® gathered on the steps of Georgia’s state capitol in Atlanta on Aug. 27 for a rally to demonstrate support for home buying provisions in the Housing and Economic Recovery Act enacted at the end of July in Washington, D.C. The event was organized by the Greater Atlanta Home Builders Association (GAHBA) in partnership with the Atlanta Board of Realtors®. “We had a super turnout,” said David Ellis, executive vice president of the HBA. “The rally was covered by the The Atlanta Journal Constitution and all the local television stations, and even a few radio stations came out and did on-the-spot interviews.” Invited speaker Sen. Johnny Isakson (R-Ga.) told the crowd that the legislation provides an unprecedented opportunity for home buyers and he explained how it will stimulate housing and restore confidence in the financial markets.
With a nearly 30-year background in real estate, Isakson was an enthusiastic sponsor of the housing bill. As a real estate agent during the housing slump of the early 1970s, he saw first-hand the positive impact of a tax credit for home buyers similar to the $7,500 incentive included in this summer’s stimulus package. Quoted in a front page story in the business section of The Atlanta Journal Consitution, Roger Tutterow, a professor of economics at Mercer University in Macon, Ga., told the housing supporters, “This is the kind of stimulus package that will jump-start the middle-income market.” To read the article, click here. Scott Simpson, Atlanta Board of Realtors® president, and Steve Palmer, president of the GAHBA, also spoke at the rally. Ellis said that the event provided a great return on the association’s investment. By partnering with the Realtors® and leveraging the relationships they’ve established with local media, local builders were able to convey a “buy now” message and information about the tax credit to a large population of potential home buyers for a relatively small cost. “What was really cool as well was that the members that attended loved it, and it showed them their association is out there doing something to help them,” he added. NAHB has created a set of resources to help members and affiliated home builders associations promote the tax credit to consumers. For more information on the Myth Buster tax credit resources, e-mail NAHB Public Affairs or call 800-368-5242 x8447. SLGA Conference Early-Bird Registration Ends Sept. 19Register for the 2008 State & Local Government Affairs conference in Memphis, Tenn. by Friday, Sept. 19 and save $100 off the registration fee. The conference will be held at the Peabody Memphis on Nov. 20-22. The SLGA Conference is the only NAHB event that focuses on advancing the goals of the building industry through improved state and local government relations. Education sessions and panel discussions will cover such topics as leveraging the economic stimulus package, advanced immigration case studies, the latest trends in inclusionary zoning, NAHB’s Green Building Standard, honing home builders association political operations, a 2009 legislative preview and lobbying fundamentals. This year’s conference will also offer numerous opportunities to network and share ideas with colleagues from around the country — during educational sessions, over lunch and at a welcome reception on Nov. 20 and happy hour on Nov. 21. To register and get the full details and an updated scheduled on this year’s conference, visit www.nahb.org/SLGAConference. For more information, e-mail Alex Strong at NAHB, or call him at 800-368-5242 x8279. New-Home Sales Rise in July and Inventories DeclineSales of newly built single-family homes rose 2.4% to a seasonally adjusted annual rate of 515,000 units in July, the Commerce Department reported, while the number of new homes for sale continued to contract as builders kept a tight rein on inventories. “With 15 consecutive months of reductions in the number of new homes for sale, builders are clearly doing a good job of chipping away at their inventories,” noted NAHB President Sandy Dunn. “Now that the government has also done its part by passing a much-needed housing stimulus package, we are looking forward to positive effects on new-home sales in the near future.” “While the improvement in new-home sales in July is definitely a favorable development, it comes on the heels of two consecutive months of significant downward revisions to sales numbers for May and June, so we have to keep the latest report in perspective,” said NAHB Chief Economist David Seiders. “Nevertheless, we are cautiously optimistic that home sales are approaching a bottom, and that the newly enacted first-time home buyer tax credit (which went into effect as part of the housing stimulus bill on July 30) will help stimulate sales and provide crucial support for a market turnaround,” he said. The Commerce report showed the inventory of new homes for sale declining for a 15th consecutive month in July to 416,000 units, the lowest number since April of 2007. This was a 10.1 months’ supply at the current sales pace, down from 10.7 months in June. On a regional basis, where Commerce sales figures are subject to large month-to-month variations, sales activity was mixed in July. Sales were up nearly 39% in the Northeast and 9.9% in the West; they declined 2.5% in the South and 8.2% in the Midwest. Every region registered a decline in the number of new homes available for sale in July. Attend the NAHB Construction Forecast Conference on Oct. 22 Don't miss NAHB's 2008 Fall Construction Forecast Conference and Webcast for the latest economic news about the housing industry. Join NAHB on Oct. 22 in Washington, D.C., where the country’s leading economists and finance experts will provide insight into the uncertainties of the housing market. To register for the conference or Webcast, and to see the full conference agenda, visit www.nahb.org/cfc.
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 FHA Single-Family Mortgage Insurance Premiums ChangingThe Federal Housing Administration FHA) recently announced a new mortgage insurance premium (MIP) structure, which will take effect on Oct. 1 for FHA-insured single-family loans. The up-front MIP for all home buyers will be set at 1.75%. The annual MIP remains at 55 basis points for 30-year loans having loan-to-value ratios (LTVs) greater than 95% and 50 basis points for 30-year loans with LTVs of 95% or less. The FHA has been operating with a system of risk-based MIPs since July 14. Under the risk-based structure, the up-front MIP ranges from 125 basis points for lower-risk borrowers (those with low LTVs and high credit scores) to 225 basis points for riskier borrowers (those with high LTVs and low credit scores). However, the Housing and Economic Recovery Act of 2008 placed a 12-month moratorium on risk-based premiums for FHA-insured loans. After this change, some lower-risk borrowers will face up-front MIPs that are 25 to 50 basis points higher, while the up-front MIP may decline for borrowers who have lower credit profiles. The up-front MIP for FHA-insured mortgage loans is typically rolled into the new mortgage. According to the FHA, loans that have FHA case numbers before Oct. 1 will be eligible for risk-based premiums. The MIP structure listed below will apply to loans with FHA case number on or after Oct 1. This structure will be in effect until Sept. 30, 2009, at which time the FHA will provide further guidance on its MIP structure. Up-front MIP Purchase Money Mortgages and Full Credit Refinances: 1.75%
Annual MIP Purchase Money Mortgages and All Refinances: Maturity Greater than 15 years: LTV less than or equal to 95%: 50 basis points
Maturity Less than 15 years: LTV less than or equal to 95%: no annual MIP
FHASecure: LTV less than or equal to 95%: 50 bps
For more information, e-mail Bill Renner at NAHB, or call him at 800-368-5242 x8597.
Attend the NAHB Construction Forecast Conference on Oct. 22 Don't miss NAHB's 2008 Fall Construction Forecast Conference and Webcast for the latest economic news about the housing industry. Join NAHB on Oct. 22 in Washington, D.C., where the country’s leading economists and finance experts will provide insight into the uncertainties of the housing market. To register for the conference or Webcast, and to see the full conference agenda, visit www.nahb.org/cfc.
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 Eye on the Economy: Home Sales Appear to Be StabilizingThe Commerce Department’s preliminary estimate of growth in real gross domestic product (GDP) for the second quarter came to a heady 3.3% annual rate, up from the 1.9% “advance” estimate and the strongest pace since the third quarter of last year. The large upward revision primarily reflected much stronger net exports — exports were revised up and imports were revised down — and much less inventory liquidation in the nonfarm business sector. The housing production component of GDP (residential fixed investment) was revised very little and still shows nearly 16% contraction (annual rate) in the second quarter. That was enough to knock off 0.62 percentage point from overall GDP growth, following much larger negatives in the previous three quarters. The surprisingly strong GDP report for the second quarter may very well overstate the economy’s true strength and most likely will be revised downward sometime in the future. For one thing, there’s a major discrepancy between GDP and gross domestic income (GDI), two concepts that are identical in principle, as GDI has shown a much weaker pattern during the past year. Furthermore, other key data systems, including the monthly employment reports, strongly suggest that the economy was not doing all that well in the second quarter, despite sizable support to consumer spending from the income tax rebates that were enacted into law early this year. The Economy Is Bound to Weaken in the Second Half Major sectors of the economy are bound to lose strength in the second half of this year and possibly in the early part of 2009 as well, despite recent declines in global oil prices. Consumer spending, which accounts for about 70% of GDP, actually started to weaken seriously in July and surely will continue to give way as the support from the income tax rebates first evaporates and then converts to a negative “payback” effect. Net exports, which contributed an immense 3.1 percentage points to the second-quarter GDP growth rate, simply will not be able to repeat that performance in coming quarters. The dollar has been regaining some ground, inevitably weighing on net exports, and the economies of some of our key export markets ― including Japan, the Euro area and the United Kingdom ― have been weakening lately. While our foreign trade deficit is likely to show some further improvement in coming quarters, the kick to GDP growth will be nothing like the extraordinary support provided in the second quarter of this year. Everything considered, the overall economy is bound to weaken in the third quarter and could slip into a negative growth mode by the final quarter of the year, keeping alive the possibility of an official recession “call” by the Business Cycle Dating Committee at the National Bureau of Economic Research. More Consumers Say It’s a Good Time to Buy Homes The University of Michigan’s monthly survey of consumer sentiment asks households to rate buying conditions for homes. The proportion giving a “good” rating started to give way in 2004, as house prices were climbing to unaffordable levels in many areas, and bottomed out in the summer of 2006 as house prices finally topped out at the national level. But the “good” proportion has been on the rise for about two years now, getting up to 71% in August — back to the mid-2005 level. Consumers’ ratings of home buying conditions have been driven largely by house price movements. In August, 65% of consumers cited “low prices” as the key reason for viewing home buying conditions as “good,” compared with only 10% at the end of 2005. Interest rates also can have a major impact on home buying conditions, of course, but rate shifts have had a relatively minor influence on consumers’ ratings during the past two years. Improving consumer views of home buying conditions obviously do not quickly translate into stronger home sales. But the systematic improvements in recent times are laying the groundwork for better sales volume a bit further down the line. House Price Declines Are Moderating The downswing in national average house prices started around mid-2006 and gathered downward momentum through the first quarter of this year. However, the rate of decline has slowed down recently, suggesting that the massive imbalance between demand and supply in the single-family housing market is being corrected to some degree. The S&P/Case-Shiller U.S. National Home Price Index for the second quarter of this year was down by 18% from the peak reached two years earlier. The seasonally adjusted annual rate of decline in the second quarter (from the first quarter) came to 11.5%, certainly a large rate of decline but much slower than the record 23.3% contraction registered in the first quarter of this year. Other price measures also show recent slowing in the rate of national house price decline, including the seasonally adjusted purchase-only version of the House Price Index produced by the Office of Federal Housing Enterprise Oversight (OFHEO). This OFHEO measure, based on home sales financed by mortgages held or securitized by Fannie Mae and Freddie Mac, contracted at an annualized rate of 5.4% in the second quarter, compared with a record 6.7% in the first quarter of the year. None of the available data systems captures the whole truth about house price movements in the U.S., but all the major national measures show recent moderation in the pace of decline, reflecting slower declines in some places and absolute price increases in others ― such as Boston, Denver and Dallas. This pattern should continue to develop in coming quarters, and we expect to see outright stabilization of national price measures during 2009. Home Sales Appear to Be Stabilizing Sales of new and existing single-family homes have fallen dramatically since the peaks in 2005, but recent data suggest that the long downslide is nearing an end. Improvements in affordability, due to price declines in many areas coupled with persistent growth of household income, appear to be the main supportive factor so far, and the new $7,500 tax credit for first-time home buyers is sure to support sales over the balance of this year and the early part of 2009 (i.e., during the window of opportunity). Existing-home sales rose by 3.1% in July and sales volume actually has been rattling around a fairly flat trend since late last year. A rising number of foreclosure sales certainly has been supporting overall sales volume in the existing-home market. Even so, recent sales data provide some reassuring signals on the demand side of the single-family housing market. New-home sales moved up by 2.4% in July and the cyclical low may very well have been reached in June. NAHB’s current short-term forecast shows stabilization of new-home sales during the second half of the year, not far below recent levels, followed by a systematic recovery process in 2009 and 2010. Housing Production Will Decline Somewhat Further Builders continue to cut back on new housing production, responding to weak demand and heavy supply in many parts of the country. Both total housing starts and the single-family component hit new lows for this cycle in July, dropping to the lowest levels since early 1991, and residential construction put-in-place naturally took another big step downward in July. The production cutbacks have been most pronounced in the condo component of multifamily starts and in the for-sale component of single-family starts (excluding homes built on owners’ lots). The cutback in starts of for-sale units, to levels below new-home sales, has systematically reduced the inventory overhang in the new-home market during the past year (by nearly 25%). However, the months’ supply still is running high (10.1) and the overhang of vacant units for sale (including those in the existing-home market) continued to run at a historically high level as of midyear. The supply overhang should delay the stabilization of housing production for at least a few quarters beyond the bottom for sales. NAHB’s current forecast shows a bottom for single-family housing starts in the first quarter of 2009, completing a peak-to-trough decline of about 68% — the largest contraction of the post-World War II period. The Growth Potential for Housing Is Tremendous The depth of the current housing contraction is creating tremendous growth potential that will be realized as the next housing expansion takes us back up toward sustainable trend levels of production. In this regard, we expect the rate of new housing production (including manufactured homes) to slip below 900,000 units at the trough early next year, and we’re estimating sustainable trend production at nearly 2 million units per year — based primarily on projections of household formations, housing replacement needs and growth of the second-home market. The exact shape of the ensuing housing expansion will depend on many factors, including conditions in financial markets and possible shifts in national housing policy under the next Administration, but the upward thrust is bound to be strong. Our current long-term forecast shows attainment of trend levels of production by the latter part of 2012, following nearly four years of solid growth. 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 Sept. 3 edition. To subscribe to “Eye on the Economy,” click here.
Don't miss NAHB's 2008 Fall Construction Forecast Conference and Webcast for the latest economic news about the housing industry. Join NAHB on Oct. 22 in Washington, D.C., where the country’s leading economists and finance experts will provide insight into the uncertainties of the housing market. To register for the conference or Webcast, and to see the full conference agenda, visit www.nahb.org/cfc.
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.
Don't miss NAHB's 2008 Fall Construction Forecast Conference and Webcast for the latest economic news about the housing industry. Join NAHB on Oct. 22 in Washington, D.C., where the country’s leading economists and finance experts will provide insight into the uncertainties of the housing market. To register for the conference or Webcast, and to see the full conference agenda, visit www.nahb.org/cfc.
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: Removing Nails Easily From Old Lumber
But removing nails from old boards can be a problem and often is. Pounding the nails through from the back side of the lumber often causes the nails to bend and weaken. So I have figured out a simple and relatively quick way to remove the nails ― using wire cutters and a hammer (see accompanying drawing).
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. Hone Your Warranty Service to Boost ReferralsBy Tracey Gundersen, CEO, Warranty Management Technologies To ensure that your last impression is a good one ― one that can generate referrals ― follow these 12 simple steps to keep your customers happy and saying only good things about you.
Tracey Gundersen is the founder and CEO of Warranty Management Technologies, LLC, of Burnsville, Minn. The firm provides warranty process management software, consulting services and fully outsourced customer service to new home builders. For more information, e-mail Gundersen, call her at 952-707-0725 or visit www.homsoft.com.
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.
Learn How to Maintain Positive Customer Relationships With ‘Beyond Warranty’ “Beyond Warranty: Building Your Referral Business” by Carol Smith, available at BuilderBooks.com, provides practical tips and tools for builders and their sales and warranty staffs to understand and plan for the customer service that follows the sale of a house, especially warranty service. “Beyond Warranty” takes builders step-by-step through the complicated but essential process of creating a home warranty program that can improve housing quality and earn satisfied customers and referral business. To view or order this publication online, click here, or call 800-223-2665. Home Entertainment Products Are Moving OutdoorsBy Matt Christensen, Planar
According to a 2006 study by the Portland, Ore.-based research firm, Quixel Research, sales of weatherproof outdoor display entertainment is expected to quadruple between 2007 and next year, with the market growing to as much as $150 million by the end of 2009. This exploding demand is especially evident in the affluent segment of the home owning market, the study found. Builders can leverage this trend and increase their profit opportunities by offering a wider array of outdoor entertainment products. But they also will have to overcome different challenges when installing all-weather outdoor televisions and entertainment technologies. To do that, they will have to gain a better understanding of the technologies involved. What to Consider When Choosing Outdoor Technology Products One of the biggest product development challenges with outdoor televisions is how to effectively package a functional, weatherproof display screen that is aesthetically pleasing. After all, consumers want their TVs in a weatherproof enclosure that suits their stylish sense of outdoor living space. This poses a problem not only for the builder and installer, but for the product manufacturer, as well. Televisions made for indoor home use need open air to cool them or they overheat. No amount of engineering a waterproof outdoor display area can overcome this problem. Luckily, manufacturers have solved that problem. When creating an outdoor entertainment area, choose only televisions and other electronic technologies that were made specifically for outdoor use. The manufacturers have already performed the necessary engineering to ensure that the products are properly cooled ― and water resistant — for use in an outdoor environment. Other weather-related issues facing builders, electronic systems contractors (ESCs) and other early adopters of outdoor entertainment areas are cabling and wiring, how sunlight can affect viewing and how direct sunlight can cause excessive heat build-up on the TV panels. Builders and ESCs can overcome these obstacles if they truly understand the needs of their consumers and how they intend to use the space. They must factor in this information when planning and designing the outdoor space so they can choose the right equipment to achieve peak performance. Installers also must fully understand the limitations of the products they use outdoors. Many products are rated for outdoor use, but if they are installed incorrectly or in an inappropriate space ― for instance, in direct sunlight, near exhaust fans or under trees that lose their branches — the customer experience will diminish. What to Look for in All-Weather TVs From a consumer’s perspective, let’s quickly examine some differences in outdoor wide-screen TVs. There are several key differences between all-weather LCD TVs and typical high-definition flat panel TVs that builders and ESCs should be aware of. One of the more obvious differences is how ambient light affects the display in an outdoor setting. Screen brightness is vital when watching TV outdoors. So is reducing glare. Plasma TVs, because they use glass screens, often suffer from high glare. LCD TVs are not as susceptible to glare and, in addition, many LCD manufacturers have developed high-brightness LCDs specifically for outdoor use. Builders and ESCs can look to industry standards as a guide when choosing outdoor technologies. Products that comply with International Electrotechnical Commission (IEC) Ingress Protection IP56 weatherproof standards provide both the installer and customer with peace of mind that the display is safe from virtually all weather conditions. Under this standard, the enclosure must protect the unit from snow, sleet, ice and heat while maintaining a cool enough temperature to operate. Outdoor technology is on the forefront of home and architectural design trends, particularly in the luxury segment of the market. Builders and installers who understand and thoroughly prepare for the challenges of creating entertainment centers in outdoor environments will create a successful experience for their home owners ― and stronger business opportunities for themselves. Matt Christensen is the senior manager in product marketing with Planar, a global manufacturer of specialty display technology based in Beaverton, Ore. Planar manufactures such items as desktop monitors, medical displays, touchscreen monitors, home theater displays and 3-D/stereo displays. For more information, call Christensen 503-748-8940, or visit the Planar Web site at www.planar.com. Information About Home Technology Available From HTA The Home Technology Alliance (HTA) is a partnership between NAHB and the Custom Electronic Design Installation Association (CEDIA) that was formed to position the housing industry to effectively meet the growing home buyer demand for home technology and provide maximum return on investment in the new home building and remodeling process. For more information, visit www.nahb.org/HTA. CEDIA: A Source for Experienced ESCs The Custom Electronic Design Installation Association (CEDIA) is a founding sponsor in the Home Technology Alliance and an international trade association of companies that specialize in designing and installing electronic systems for the home. CEDIA members are established and insured businesses with bona fide qualifications and experience in this field. CEDIA serves as a source for Electronic Systems Contractors (ESCs). For more information on CEDIA, visit the association’s Web site at www.cedia.org. To find an ESC, click here. The Custom Electronic Design Installation Association (CEDIA) is a founding sponsor in the Home Technology Alliance and an international trade association of companies that specialize in designing and installing electronic systems for the home. CEDIA members are established and insured businesses with bona fide qualifications and experience in this field. CEDIA serves as a source for Electronic Systems Contractors (ESCs). For more information on CEDIA, visit the association’s Web site at www.cedia.org. To find an ESC, click here. 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.{{MORE}} 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. Multifamily Builders Report They Are Going GreenMore of the nation’s apartments and condos are going green as multifamily builders and developers respond to growing consumer interest in sustainable building practices, according to a recent survey by NAHB. “Apartments and condos are inherently green, because they offer more compact development to begin with,” says Steve Patterson, chairman of NAHB’s Multifamily Leadership Board and an apartment and condo developer from Orlando. “With today’s heightened consumer interest in green, multifamily builders are embracing more green and recyclable products, and are more willing to invest in energy efficiency.” While a majority of the survey respondents — 74% — said that buyers and renters are willing to pay more for green amenities, the median additional amount they are willing to pay is only about 2%. In the NAHB survey, which polled multifamily builders and developers nationwide on their green building practices, 89% of respondents reported that they are installing energy-efficient appliances and lighting in their multifamily communities. The survey also found that:
For more information on the National Green Building Standard, which is soon to be a rating system in the NAHB National Green Building Program, e-mail Calli Schmidt, or call her at 800-368-5242 x8132. For more information on the survey, contact Ann Marie Moriarty, x8350.
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.
‘Profit from Green Building’ Available at BuilderBooks.com “Profit from Building Green — Award-Winning Tips to Build Energy Efficient Homes,” available through BuilderBooks.com, showcases what energy conscious award-winning builders are doing, provides innovative energy-efficient features and covers successful techniques for building this niche market. To view or purchase this publication online, click here, or call 800-223-2665. Seminar Looks at Investing in Affordable HousingA live Web and telephone seminar on opportunities for banks that invest in projects funded through Low-Income Housing Tax Credits (LIHTC) will be held by the Office of the Comptroller of the Currency's (OCC) Community Affairs Department this Wednesday, Sept. 10, from 2:00-3:30 p.m. (EDT). The OCC charters, regulates and supervises all national banks, and it monitors their compliance with consumer banking laws, including the Community Reinvestment Act (CRA). The OCC’s Community Affairs Department helps banks develop innovative ways to meet their community development responsibilities. Builders can use department resources to help educate their lenders on the variety of activities that are CRA-eligible, including the development of affordable housing. Barry Wides, the deputy comptroller of the currency for community affairs, recently met with NAHB to discuss what the OCC does and to encourage NAHB members to talk to their lenders about CRA activities. The OCC is particularly interested in encouraging banks to invest in Low Income Housing Tax Credit projects. This week’s seminar will help bankers understand how the LIHTC program works and the current market conditions affecting pricing. The seminar also will focus on underwriting LIHTC funds; financial, tax and accounting benefits; and what to look for in a good fund manager. Examples of successful fund investments will be provided. Participants will have an opportunity to ask panelists questions during the seminar, either online or by telephone. Panelists include: Wides; Dana Boole, president and CEO, Community Affordable Housing Equity Corporation; and Richard Floreani, senior manager, Tax Credit Investment Advisory Services, Ernst & Young. The seminar will include a welcome from Comptroller of the Currency John C. Dugan. The seminar is part of the OCC’s educational outreach efforts to enable members from the banking community across the country to listen to agency experts and industry professionals. The seminar costs $115 for national banks and $150 for others. For more information and to register, visit www.occ.gov/up_event.htm, or call 800-775-7654. Enter Pillars of Industry Marketing, Design AwardsEntries are open for the 2009 Pillars of the Industry Awards competition honoring excellence in apartment and condominium design and development — including the best mixed-use community — as well as leadership in marketing and property management. Apartment owners and developers, property managers, architects, interior designers and others involved in the multifamily housing industry are invited to enter. The application deadline is Nov. 7. Entry notebooks are due Nov. 21. The Pillars of the Industry Awards program is the largest and most prestigious of its kind, and both housing professionals and the media look to the awards as a showcase of future trends and innovation. The awards recognize superior achievement in three areas: building, marketing and individual excellence, including “Multifamily Development Firm of the Year” and “Best Multifamily Community of the Year.”
For complete details, including eligibility requirements and application forms, go to www.nahb.org/pillarsawards, e-mail multifamily@nahb.com or call 800-368-5242 x8215. Apply for NAHB SAFE Award by Oct. 13Applications for the 2008 NAHB Safety Award For Excellence (SAFE), which provides recognition for home builders who develop outstanding work-site safety programs, are now available. For information, requirements and an online application, click here (nahb.org/SAFE). Applications are due by Oct. 13. The award honors the achievements of builders and trade contractors who have developed and implemented high-quality construction safety programs, as well as those government officials and NAHB-affiliated associations who have made successful efforts to advance safety in the home building industry. Last year, 14 companies were cited for their safety achievements. Read about them here. “The home builders and housing industry professionals who have received SAFE awards during the past two programs are an outstanding representation of the commitment to safe behavior and safety education practiced by NAHB members across the country,” said Buck Roberts, president of A.B. Roberts Construction Company in Anderson, S.C. and chairman of NAHB’s Construction Safety and Health Committee. “We look forward to recognizing many more safety best practices in Las Vegas in January in the 2008 SAFE awards.” NAHB member companies in good standing that build residential homes or town homes using light construction methods can apply for a SAFE award. Specialty trade contractors, remodelers and light commercial and multifamily builders, as well as NAHB-affiliated associations and federal or state Occupational Safety and Health Administration (OSHA) officials who have been nominated by an NAHB member or association, are also welcome to apply. Awards will be made in a variety of categories; for a detailed listing, click here. Award winners will be recognized during a breakfast ceremony on Jan. 20 during the 2009 International Builders’ Show in Las Vegas. Winners will receive an award and coverage in this publication. NAHB is seeking companies to become sponsors for this safety awards program. For sponsorship information, click here, e-mail Andy Flank at NAHB, or call him at 800-368-5242 x8059. NAHB provides members and others in the residential construction industry — including non-English and limited English-speaking employees and trade contractors — with information, guidance and access to training resources to help them protect employees' health and safety. A variety of safety resources and guidebooks, including the NAHB-OSHA Jobsite Safety Handbook: English-Spanish Edition, are available for purchase through www.builderbooks.com. For more information on the SAFE Awards Program, click here; or e-mail Lindsay Cather at NAHB, or call her at 800-368-5242 x8163.
Boost Job Site Safety With Fall Protection Training Products In an effort to increase job site safety and reduce the chance of job related accidents, NAHB has produced the “Fall Protection Video, English-Spanish” and “NAHB-OSHA Fall Protection Handbook, English-Spanish.” Both are available through BuilderBooks.com. The 30-minute “Fall Protection Video, English-Spanish” can be used by builders to train workers to use safe work practices that eliminate fall hazards and comply with OSHA fall-protection standards. The “NAHB-OSHA Fall Protection Handbook, English-Spanish” provides guidelines for creating a written fall-protection plan and identifying safe work practices that can prevent costly accidents and injuries. Written with clear text, photographs and illustrations, the book serves as a user-friendly resource for promoting safety on any job site. To purchase the handbook and video online, click here, or call 800-223-2665.
Four common hazards cause 90% of the injuries and fatalities on residential construction job sites. The “Recognizing the Big-Four Safety Hazards for the Home Building Industry” course from The NAHB University of Housing shows how to comply with OSHA regulations and to recognize and minimize those hazards most likely to cause accidents. The course teaches builders to protect their workers from harm and themselves from liability. This course is also available in Spanish. To find out where upcoming courses are being held, click here, or call 800-368-5242 x8154 for more information.
Home Builders Institute Offers New Program to Teach Hispanic Adults English Sed de Saber™-Construction Edition is an easy-to-use, take-home learning tool created exclusively for the construction industry by the Home Builders Institute to improve communication, quality and safety on the job site. The product, now available at www.seddesaberconstruction.com, uses proven LeapFrog technology to allow workers to listen, record and play back their pronunciation of more than 500 vocabulary words and 340 phrases. Participants who practice 30 minutes each day will complete the program in just four months. Learning at home, on their own time, also eliminates scheduling conflicts. Sed de Saber™-Construction Edition was developed by a team of subject matter experts assembled through HBI — including superintendents, craft skills experts, remodelers and builders — to ensure that the information is relevant to today’s home building workforce. To address worker safety issues related to the language barrier, HBI created a seventh book based entirely on the NAHB-OSHA Job Site Safety Handbook. NAHB members can purchase the learning system, all seven books and a skills assessment to chart employee progress for $395 per kit. The non-member price is $495. Order today and empower your workers to learn English at www.seddesaberconstruction.com. Disabled Veterans Housing Program Boosts Grant LimitsThe landmark housing stimulus legislation that provides tax incentives for first-time home buyers and was signed by President Bush in July also has increased the grant limits for a U.S. Department of Veterans Affairs (VA) program to help builders and remodelers better accommodate the housing needs and improve the lives of the nation's severely-disabled veterans. The ceilings on the two grants available through the VA’s Specially Adapted Housing (SAH) program, which went into effect in 2006, were increased a combined $12,000 so that the extensive changes needed to enable severely wounded veterans to live independently could better meet the costs those renovations entailed. One SAH grant is available to disabled service members to adapt their homes because of a loss of mobility. The ceiling for that grant was raised from $50,000 to $60,000. A second grant, available to service members because of blindness, was increased $2,000 to a ceiling of $12,000 in the stimulus bill. “Since these grants first became available, some of our members have put them to great use in helping severely-injured veterans remodel their homes,” said Lonny Rutherford, CGR, CAPS, chairman of NAHB Remodelers and president of Legacy Construction in Farmington, N.M. “The increase passed this year will help them make the extensive renovations needed so they can live as independently as possible.” NAHB has been urging an increase in grant limits since the SAH program began. In testimony before the Subcommittee on Economic Opportunity of the House Committee on Veterans' Affairs last year, NAHB Past President Brian Catalde called for a higher ceiling on the limits and other program improvements In addition to increasing the ceilings for the two grants, changes to the SAH program also include new criteria for eligibility and streamlined the paperwork. To learn more about the VA’s Specially Adapted Housing program, click here. For more information, e-mail Kelly Mack at NAHB, or call her at 800-368-5242 x8451. Use Marketing Best Practices to Help Get Through the DownturnIn an economy and industry beleaguered by a credit crunch, sky-high fuel costs and rising material costs, a well-thought-out marketing plan can mean the difference between having a pipeline full of opportunities and, well, you know. Keep in mind that a marketing plan is much more comprehensive — and effective ― than just a pretty print advertisement or beautiful company brochure. Your starting point should be a cohesive, compelling marketing message that can differentiate you from the pack. “Promises Made, Promises Kept” is the marketing message used by Brothers Strong of Houston. Notice the absence of any words regarding craftsmanship or skills. A cursory review of customer satisfaction surveys in the remodeling industry reveals that most complaints are based on lack of communication and follow-through rather than craftsmanship. “Promises Made, Promises Kept” directly addresses both these aspects of customer satisfaction — and taps into the emotions of prospective customers. Our clients buy on emotion. They may rationalize their decision-making with facts and figures, but they buy because they want a new, well-appointed kitchen or bath, or because they can no longer live comfortably in their old space. Set Your Parameters ― and Stick With Them Just as important as knowing what kind of work you are willing to do is acknowledging that there are certain kinds of projects that you won’t tackle ― a particular price range of homes or projects that don’t match with your business strategy, for instance. For example, if your average kitchen remodel is in the $75,000 range, it doesn’t make sense to market to a subdivision near your office for first-time home buyers. Chances are few, if any, that home owners there are willing to invest that much in a kitchen remodel. Similarly, if your bread-and-butter jobs are room additions in the $75,000 to $200,000 range, why chase leads on sheetrock repairs and other handyman projects? Be true to your strategic direction. Decide what you want to do and stick to it. Do not stray from your core competencies because you are worried about cash flow. Focus on Your Target Client You can define your target client in geographic or demographic terms ― by income, type of home, zip code area, occupation, age of housing stock, architectural style of the home and by any and all combinations of these. As with accepting only jobs that fit your core competencies, aim your marketing at your defined target client. Getting the Word Out Once your message has been crafted and your target audience has been defined, you must decide what type of marketing activities will effectively reach your audience. A variety of vehicles have proven successful, but not all will work in a given locale. The following suggestions are not all-inclusive, but they can be used as a starting point:
Some of the metrics to track include the number of raw leads per source or activity, conversion ratios, percentage of total sales volume, percentage of total projects, cost per program, cost per exposure and cost per sale. Diligent tracking is vital and will provide key benchmarks ― such as the number of leads needed to generate a particular sales volume and the number of proposals needed per month and quarter. Zero in on a particular set of metrics and corresponding decision data that are applicable to your company, but get started. Budgeting Your Marketing Program Recent surveys of remodelers found that the average remodeler spends about 2.6% of his sales on marketing. For newer firms, this can be as high as 4% of sales — until referrals start kicking in. The investment in a sound marketing plan will help fill your pipeline ― doing wonders for your attitude and posture with clients. Jeff Hunt, CGR, GMB, CAPS, CGP, is president of Heritage Construction Services, a professional design-build remodeling firm serving the greater Houston area. Hunt was the National CGR of the Year in 2006 and the Houston Remodeler of the Year in 2006 and 2007. He is the vice chair of the CGR Board of Governors and teaches industry courses through The NAHB University of Housing. For more information, e-mail Hunt or visit the Heritage Construction Services Web site.
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: Building Trust and Personal ConnectionsThe 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.
Kat O’Brien
As a contractor sales representative at Crescent Lighting in Fife, Wash., Kat O’Brien knows first-hand the importance of building personal connections. She has worked in the residential lighting industry for four years and joined the Master Builders Association of Pierce County in 2006 in order to help her local remodeling industry and to connect with colleagues. O’Brien’s experiences as a new HBA member and as membership committee chair taught her the fine points of member recruitment as well as the benefits that can be gained through volunteering, networking and being active in the association. “The best compliment one of my contractors can give me is that they trust me to work directly with their clients,” O’Brien said. One of her favorite roles is helping those clients realize their vision by recommending options that might not have occurred to them. “I want them to be able to look at their finished project and love it when they say, ‘I picked out that chandelier’ or ‘I chose that wall sconce’ — with a little help from me,” O’Brien said. Developing New Skills During O’Brien’s first year with the HBA, networking was her biggest challenge. The members she met “all had known each other for 10 or 20 years and it was hard to break the ice,” she said. Not only that, most of her work until then had been as an inside sales representative where customers came to her, so she rarely had to network professionally. “I was fortunate to have several excellent networking mentors at the HBA who helped me improve my skills,” she said. “I also decided to recruit my own bunch of friends as members. Before long, the established members started taking notice and it was a lot easier for me to speak with them.” Today, O’Brien serves as the vice chair of the association’s membership committee. It’s a role she relishes. It not only enabled her to recruit new members, it gives her the opportunity to get involved and bond with all the members of the Pierce County HBA. “I like to say that by regularly coming to meetings, you demonstrate to others that you have consistency and follow-through, which is good. But to really benefit, you need to take it to the next level by striking up relationships and network,” she said. Playing Nice O’Brien said she thinks “everybody probably starts out afraid of networking. Some just hide it better.” And, as one of her mentors once told her, networking “works much better if you don’t think of it as networking” but instead think of it as “just making friends and playing nice.” She also stressed that to for networking to be effective, people should not look at it as a means to achieve short-term objectives like picking up an order or a project. Networking, she said, is all about building long-term relationships ― and trust. “People want to do business with people they know and trust and I can help them use their builders association membership to do just that,” O’Brien said.
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. NAHB Remodelers Meetings and Events at Fall BoardThe following are NAHB Remodelers meetings, events and activities at the NAHB fall board meeting in San Diego on Sept. 23-26 Wednesday, Sept. 24
In New York: Prefab Houses Seen as Works of Art
The evolution of prefabricated housing, from its beginning in 1833 to concepts for the present and future, is on display at the Museum of Modern Art (MoMA) in New York and online through Oct. 20. “Home Delivery: Fabricating the Modern Dwelling” chronologically examines the historical significance and contemporary role that systems-built technologies play in the world of architecture. Home Delivery also includes five contemporary factory-built homes — including one made of cellophane and one for Hurricane Katrina victims in New Orleans — that were built on the museum grounds. The show was organized by Barry Bergdoll, MoMA's chief curator of architecture. The First Steps: A Prefabricated Wall System The first prefabricated construction system is attributed to Chicago builder Augustine Taylor, who developed his “balloon frame” system in 1833 in answer to the young city’s housing shortage. The system used a wood frame built from two-by-fours and two-by-sixes set closely together with studs, cross members and sheathing placed within and over the frame ― with all of it held together by manufactured cut-iron nails. The system eliminated the need for highly-crafted mortised beam fittings and the skilled craftsman who made them. It enabled an entire wall to be built off-site and reduced construction time.
The First Replicated Kit Home: Headed for Australia The first documented example of a replicated building system kit home was the Manning Portable Colonial Cottage for Emigrants, created in the 1830s by London carpenter H. Manning for his son, who was emigrating to Australia and who found a market for the homes there, according to the exhibit. The components of the kit home were precut so they could be stored easily in the hull of a ship and sent to Australia. Manning sold dozens of his home to Australians during the next few years. Homes Built by Ford, Thomas Edison and Sears and Roebuck By 1882, N.R. Good had patented a portable summer home, which may have been the precursor to the U.S. Army tents used by Mobile Army Surgical Hospital (M.A.S.H.) units during the Korean War. The exhibit also includes archival newsreel-type footage from 1919 by the Ford Motor Company portraying the popularity of assembly-line manufacturing and how a “ready-made home” can be built in a factory and delivered on site. The “Home Made” newsreel does over-promise a bit by showing the house being built in little more than a week — leaving out all the construction detail after the framing is erected. Wood was not the only prefabricated solution being invented at that time. In 1917, Thomas Edison developed the “Single Pour Concrete System” to build a different type of prefabricated home. He sold about 100 of these homes to New Jersey residents. Less than 15 years later, another inventor, Walter Gropius, created an insulated Copper House.
A Glimpse Into the Future The five contemporary or future prefabricated homes built on the museum grounds for “Home Delivery” seek “to advance current research into new materials and applications of digital fabrication to create diverse housing types from vacation homes to replacement houses for populations at risk,” according to the final blog entry of the exhibit process. The homes include a five-story, steel-frame townhouse wrapped in cellophane; a 76-square-foot micro compact home with only enough room for a small coffee mug and cooking utentils; a one-room, digitally fabricated “shotgun house” created as a disaster relief solution for areas like New Orleans; a modular System3 home made of modular 570 square-foot components that enable the home to grow as the owner’s family grows; and an almost completely computer-designed Burst*008 home that enables the architect and client to visualize the new home almost instantly. “Home Delivery” features a total of 84 architectural projects, spanning 180 years of prefabrication. It includes film, architectural models, original drawings and blueprints, photographs and patents that demonstrate the significance and impact of systems-built technologies in the home building industry through the years. To view the exhibit online, visit www.moma.org/homedelivery.
BSC's SHOWCASE: Solutions in a Challenging MarketSales and marketing, business management and green building seminars that can help companies survive, or even thrive, in the current housing downturn will be featured at the 2008 Building Systems Councils’ SHOWCASE in Memphis, Tenn. on Nov. 16-19. SHOWCASE 2008, by NAHB’s Building Systems Councils (BSC), will also feature breakout sessions on the growing influence of green building, sales and marketing techniques, business management tools and liability that emphasize the benefits systems-built technologies and strategies and how building systems can expand market share. In addition, NAHB Chief Economist David Seiders will present NAHB’s latest economic and housing forecast and Doug Duncan, chief economist for Fannie Mae will discuss housing financing in “The Past, Present, and Future of Housing Finance ― How the Credit Crunch Has Changed the Guidelines.”
Green building sessions include:
The networking gala will be from 7:00-10:00 p.m. Thursday, Nov. 18 at B.B. King’s Blues Club. Apply for BSC Marketing and Design Awards Entries are being accepted for the 2009 Excellence in Marketing and Home Design Awards, the BSC’s annual competition recognizing the builders and manufacturers responsible for the finest marketing materials and home designs in the concrete, log, modular and panelized home building industry. Awards categories added this year include multifamily and green building for concrete, log, modular and panel construction. The entry deadline is Wednesday, Sept. 17. The early-bird deadline is Wednesday, Sept. 10. Winners will be honored during a ceremony at SHOWCASE. Winners also will be recognized during the 2009 International Builders’ Show in Las Vegas in January. All winners will be featured in the January/February 2009 issue of Building Systems Magazine, Nation’s Building News, on the NAHB Web site and through national and local press releases. To apply, visit www.nahb.org/showcase and click on the “Special Events” tab. To Register for SHOWCASE To register online for SHOWCASE, or for more information, visit www.nahb.org/showcase. Exhibit and Sponsorship Opportunities at SHOWCASE NAHB is seeking vendors and suppliers of the systems-built industry to exhibit on the trade floor or sponsor activities and events at SHOWCASE. For more information, e-mail Andy Flank at NAHB, call him at 800-368-5242 x8059 or visit www.nahb.org/showcase and click on the “Sponsorships and Advertising” tab at the top of the page. Custom Builder Symposium Can Help Navigate DownturnThe 2008 Custom Builder Symposium on Oct. 24-26 in Austin, Texas is offering a wide range of educational courses that can help custom home builders navigate through the industry downturn. Courses at NAHB's premier educational and networking event for custom builders feature the latest in home technology, business management, design and green building. “Every educational course will help provide an idea, a concept or new excitement for improving your own home building company,” said Brad Simons, NAHB Custom Home Builders Committee chairman. “In today’s home building environment, only the best will be successful. Investing in making your company the best is now more important than ever before.” In addition, the symposium features a home tour, pre-show designation courses and several networking opportunities. The symposium will be at the Hilton Austin. General business management and technology courses include:
Home Tour Highlights Emerging Trends Design trends that incorporate green initiatives and building techniques and technology that are unique to the Texas home building market will be part of the one-day symposium tour of premier custom homes in Austin and the surrounding area. “Austin is a unique venue,” said symposium chairman Randy Rinehart. “We’re going to see infill within the city, refreshing contemporary architecture along with the green/energy movement and we will see good examples of Western architecture. Those who attend will be very impressed.” 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 Wedneday, Sept. 10. 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. Earn CGP Designation at Custom Builder SymposiumCustom builders and other industry professionals interested in earning the Certified Green Professional (CGP) designation can take both required courses at the Custom Builder Symposium in Austin, Texas. “Green Building for Building Professionals” and “Business Management for Building Professionals” will be offered as pre-show courses at the annual conference from Oct. 24-26 at the Hilton Austin.
More than 1,000 builders, remodelers and other members of the home building industry have earned the Certified Green Professional educational designation since it was introduced early this year by NAHB. To register for pre-show courses at The Remodeling Show, visit www.nahb.org/custom. For complete CGP requirements, go to www.nahb.org/CGPinfo. ‘Profit from Green Building’ Available at BuilderBooks.com “Profit from Building Green — Award-Winning Tips to Build Energy Efficient Homes,” available through BuilderBooks.com, showcases what energy conscious award-winning builders are doing, provides innovative energy-efficient features and covers successful techniques for building this niche market. To view or purchase this publication online, click here, or call 800-223-2665. 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. Builders in Texas Avoid Storm Water FinesTexas environmental officials joined leaders of the Texas Association of Builders earlier this summer at a signing ceremony for a storm water management agreement that is the first of its kind in the nation. Under the agreement, the Texas Commission on Environmental Quality (TCEQ) and U.S. Environmental Protection Agency will be working in cooperation with the state’s home builders to prevent storm water pollution, which in residential construction usually involves sediment runoff from job sites. The three partners will work together on a pilot program to more fully educate, inform and assist home builders with meeting federal and state storm water regulations. “Small changes in the way builders do business can make a big difference when it comes to keeping pollution out of storm water,” EPA Regional Administrator Richard E. Greene said at the ceremony. “This project is another great example of how innovative partnerships between EPA, states and businesses can lead to better ways to protect one of our most valuable liquid assets.” “It is gratifying to see government and industry working together voluntarily to protect the environment,” said TCEQ Chairman Buddy Garcia. “This agreement will mean better compliance, and that means better protection of our precious water resources.” More than 1,300 Texas builders have received storm water compliance training through initiatives developed by the state home builders association, TCEQ and EPA in 2005 and 2007. The association was honored for its training programs as part of the NAHB Executive Officers Council Association Excellence Awards. Under the new agreement, association members who complete the training and a self-assessment checklist can display a “Storm Water Self-Certified” sticker on construction permits. Sites that display the certification sticker will be a lower priority for routine inspections. “Our membership has worked diligently to comply with state and federal storm water regulations, and we are honored that our successful training partnership with the EPA and TCEQ has resulted in this historic agreement,” said Ron Connally, first vice president of the Texas Association of Builders. “Our association is committed to providing continuing education to Texas builders to help further reduce storm water runoff and protect the environment.” For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132.
'Storm Water Permitting: A Guide for Builders and Developers' Available at BuilderBooks.com “Storm Water Permitting: A Guide for Builders and Developers,” available through BuilderBooks.com, provides a starting point for builders and developers to use in locating and understanding storm water permitting requirements. The publication has been prepared to help builders comply with the U.S. Environmental Protection Agency's storm water requirements, and includes information on state permitting programs and more than 50 of the most commonly used best management practices. Also included are tips on compliance, including how to handle visits from inspectors. To view or purchase this guide online, click here, or call 800-223-2665. Improvements Suggested for New EPA Water Efficiency DesignationIn public comments submitted last week to the U.S. Environmental Protection Agency, NAHB has made a number of suggestions to improve a draft of the agency’s Water-Efficient Single-Family New Home Specification, which will be used to designate “WaterSense” homes. Introduced two years ago, WaterSense is a counterpart to Energy Star, a joint program of the EPA and the U.S. Department of Energy. While Energy Star issues voluntary guidelines and rates products for energy efficiency, WaterSense rates products for water efficiency. Builder members of NAHB are participating in a pilot program based on the EPA’s draft specification for water efficiency. The association supports resource efficiency programs that are voluntary, affordable and cost-effective and that take consumer preferences into account, NAHB said in its comments. “Therefore, first and foremost, NAHB and its members believe that the WaterSense label must be clearly defined and recognized as an above-code and voluntary program,” NAHB said in its letter to the EPA. “While the program can provide important incentives for builders to install water-saving devices in the homes they build,” NAHB said, “product availability, cost considerations, the availability of WaterSense partners and verifiers, and consumer demand will ultimately dictate participation. Furthermore, product performance, both individually and as a system, must meet the needs and expectations of consumers if the program is to be successful.” NAHB outlined a number of concerns with the draft program:
“NAHB looks forward to the release of a second draft and the possibilities it may provide to those innovative builders who volunteer the time and resources to ensure the start of a successful program. However, failure to provide flexibility and clear definition on key program specifics will limit participation until such issues are appropriately addressed,” the letter said. For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132. Green Building Awards Nominations Now OpenThe 2009 NAHB National Green Building Awards will honor excellence in green residential design and construction practices and outstanding green advocacy efforts. “Home builders and housing industry professionals are instrumental in the adoption of sustainable building practices that benefit home owners, the environment and the economy,” said Ray Tonjes, chairman of the NAHB Green Subcommittee and a green remodeler and builder in Austin, Texas. “We look forward to honoring their commitment to green building, and sharing their innovative best practices with the residential construction industry.” Awards will be given in several categories: Advocate of the Year (Builder, Remodelor, Individual, Group); Green Project of the Year (Single-family, Remodel, Multifamily); Green Development of the Year; HBA Green Building Program of the Year; and Outstanding Green Marketing. A new category — the Local Government Award — has been established to recognize a government body nominated by a local home builders association for its work to allow and encourage green practices. All award applications, supporting documentation and photographs must be submitted via e-mail or on a compact disk. Entry forms can be downloaded at www.nahb.org/greenbuildingawards. No paper applications will be accepted. To be eligible, projects must have been started after June 2007 and substantially completed by December 2008. Additional entry requirements and an online application are available at www.nahb.org/greenbuildingawards. Entries must be postmarked by Jan. 31, 2009. Award winners will be recognized at a gala dinner in Dallas on May 8, 2009 during the 11th annual NAHB National Green Building Conference. In the 2008 awards program at the 10th Annual NAHB National Green Building Conference in New Orleans, 17 building industry professionals were honored for excellence and innovation in green home building. For more information, e-mail Chad Riedy at NAHB, or call him at 800-368-5242 x8225.
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 1,000 people have earned the CGPdesignation to date. For more information, visit www.nahb.org/CGPinfo.
‘Profit from Green Building’ Available at BuilderBooks.com “Profit from Building Green — Award-Winning Tips to Build Energy Efficient Homes,” available through BuilderBooks.com, showcases what energy conscious award-winning builders are doing, provides innovative energy-efficient features and covers successful techniques for building this niche market. To view or purchase this publication online, click here, or call 800-223-2665. 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).
Eliminate Risks, Protect Against Liability With Well-Written Contracts “Contracts and Liability,” available through BuilderBooks.com, provides illustrative cases, sample language, and guidelines for potential clauses of a contract between a builder and buyer or remodeler and home owner. Reduce or eliminate litigation costs by learning how to write better contracts from the start. To view or purchase this publication online, click here, or call 800-223-2665. Sen. Wicker Visits Gulf Coast Reconstruction ProgramJust days ahead of Hurricane Gustav making landfall in Louisiana, Sen. Roger Wicker (R-Miss.) joined NAHB Past President Bobby Rayburn, Home Builders Institute (HBI) trustee Annette Rayburn and several representatives from the building industry on an Aug. 28 tour of the training facility of HBI’s Operation Reconstruct program in Gulfport, Miss. With the latest storm barreling down on the area, the importance of organized disaster relief efforts to susceptible Gulf Coast communities was immediately apparent to the visitors. Operation Reconstruct was founded by HBI, the workforce development arm of NAHB, and The Paxen Group in New Orleans following Hurricane Katrina. The program was later replicated in Gulfport and Jackson to train eligible workers under the Workforce Investment Act in residential construction trades. Funding for the Gulfport and Jackson initiatives is being provided by the Mississippi Department of Employment Security. Operation Reconstruct’s dual mission of addressing both displaced residents and displaced workers is key to its effectiveness in facilitating rebuilding efforts. The program’s free 10-week work-readiness and Pre-Apprenticeship Certificate Training (PACT) provides job placement assistance in the home building industry. As part of their training, students enrolled in Operation Reconstruct divide 35 hours each week between class time, on-site job training and community service, becoming increasingly employable in the housing industry though their participation in local rebuilding projects. Sen. Wicker was introduced to the program through the Gulf Coast Workforce Development Initiative (GCWDI), which has joined Operation Reconstruct as a partner in the program’s second year. Wicker spent about an hour meeting with HBI employees and learning about Operation Reconstruct’s efforts to rebuild the Gulfport community. The Rayburns were instrumental in establishing Operation Reconstruct in their home state of Mississippi. “It’s unfortunate, but hurricanes are a reality of living on the Mississippi Coast,” said Annette Rayburn. “It’s important that we are prepared for the challenges and that we address them immediately. I am proud of Operation Reconstruct for standing out as a leader in rebuilding efforts, and we are all grateful that Sen. Wicker could visit our facility.” “Sen. Wicker’s visit was a home run. He had a great time and we made a new friend,” said Operation Reconstruct Project Coordinator Eddie Collins. For more information on Operation Reconstruct, e-mail Dennis Torbett at HBI, or call him at 800-795-7955 x8908.
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. GE and GAF Materials Join to Advance Solar EnergyGE Energy and GAF Materials Corporation (GAF), two companies with more than 100 years of experience in the energy and roofing industries respectively, announced earlier this summer at PCBC in San Francisco that they have formed a new strategic alliance to market and ultimately develop solar and roofing systems for commercial and residential customers. GE Energy and GAF are now offering their customers one-stop shopping for new roofs and solar electric systems. "Combining the expertise and experience of two companies who are leaders in their business sectors, this agreement will help to further advance the use of solar energy technology in both residential and commercial applications across North America," said Victor Abate, vice president of renewables for GE Energy. "It underscores GE's continuing commitment to increase the role that renewable resources such as wind and solar can play to meet our nation's future energy needs." “Solar is a natural fit for our WeatherStopper® roofing systems, which are designed to give property owners their best and safest choice in roofing,” added Dave Harrison, senior vice president and chief marketing officer of GAF. “This strategic alliance with GE Energy will ultimately provide the entire industry with a powerful solution for designing and constructing properties for both new construction and property improvement projects that address today’s fast-evolving, environmentally conscious consumer values, including energy efficiency.” The NAHB National Green Building Program awards from eight to 12 Energy Efficiency points for including a photovoltaic energy system, depending on the number of kilowatt hours a system is capable of producing annually. GAF is North America’s largest manufacturer of residential and commercial roofing, with a network of more than 12,000 contractors, distributors and roofing installers nationwide. Worldwide demand for reliable, affordable and renewable energy has fueled the solar industry’s 40% growth rate since 2005, according to the Solar Energy Industries Association. Strong growth is expected to continue, putting solar among the fastest growing renewable energy segments in the global power industry. Further expanding its commitment to the solar energy industry, GE Energy recently increased its equity share in PrimeStar Inc., an emerging solar thin-film technology and manufacturing company. GE Energy is a global leader in supplying technology and services for renewable energy, which will be an integral part of the world energy mix throughout the 21st century. In addition to solar energy, GE’s renewable energy portfolio also includes wind power and biomass. GE and GAF Materials Corporation are both members 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. Applications for Endowment IBS Scholarships Due Oct. 31
Applications for students to attend the 2009 International Builders’ Show (IBS) in Las Vegas are now available and due by Oct. 31. The scholarships ― sponsored by the National Housing Endowment in conjunction with the Home Builders Institute ― enable NAHB Student Chapter members to offset some or all of their travel and attendance expenses at IBS. Providing funding to students has proven to be instrumental in helping them learn outside the classroom and prepare careers in the home building industry. The IBS scholarship program also helps give young NAHB members the tools to enter into the federation as graduates and to become future leaders. The endowment has allocated $100,000 for scholarships in this, the second year of the program. “IBS is something that everyone who intends to enter into residential construction should see,” said one student scholarship winner last year. “The National Housing Endowment is proud to continue this scholarship program for NAHB’s student chapter members,” said Gary Garczynski, endowment chair and 2002 NAHB President. “The endowment is working to increase the number of college graduates entering residential construction and this scholarship, along with other programs we sponsor, is leading the effort to reward and encourage the best and brightest to choose a rewarding career in residential construction.” To be considered for funding, a student must meet the following qualifications:
State and local home builders associations can apply for up to $2,500 in matching funds to distribute to their local NAHB Student Chapter. Students can apply for up to $500 in non-matched funds. Individual NAHB Student Chapters can apply for up to $2,500 in non-matched funds. Preference will be given to chapters represented by a Residential Construction Management Competition team at the IBS. To apply online, visit www.NAHB.org/2009IBSscholarship. Recipients will be notified by Nov. 21 and funds will be distributed in mid-December. 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. NAHB Fall Board Meeting Set for San Diego Sept. 23-26OFFICIAL MEETING NOTICE OF
The following schedule of events is a partial listing provided as a notice for the upcoming NAHB Fall Board of Directors Meeting to be held in San Diego on Sept. 26, 2008 and other associated NAHB meetings to be held on Sept. 23-26. Meetings will be held at the San Diego Marriott Hotel and Marina. The fall board program will identify the exact time and place of each cheduled meeting. Tuesday, Sept. 23
National Vice Presidents
Thursday, Sept. 25
Committee Meetings
Friday, Sept. 26
Presentation Skills Sold Out; Few Spots Remain for Interview SkillsThe “Presentation Skills” session has already sold out and only a few spots remain for the “Interview Skills” session of Spokesperson Training at NAHB's upcoming fall board of directors meeting in San Diego. NAHB members and leaders of state and local home builders associations can now register securely online with a credit card for the remaining open "Interview Skills" sessions. In the “Interviewing Skills” session of the Spokesperson Training Program, NAHB members will learn how to give clear, concise answers in a high-pressure, spur-of-the moment interview. The "Interview Skills" course has been scheduled for one day and registration is limited to 12 participants. Registration is on a first-come, first-served basis. Spring Board Spokesperson Sessions:
For more information and to register, click here. Each seminar is led by professional communication consultants who have more than 30 years of experience training NAHB members on the critical issues they face every day. More than 15,000 NAHB leaders have taken Spokesperson Training since the program began in 1979. For more information, e-mail Brooke Fishel at NAHB, or call her at 800-368-5242 x8061. EOs, Apply for Leadership Training Scholarships by Sept. 17Scholarship applications for executive officers seeking assistance to attend the Leadership Training Conference (LTC) in Atlanta on Nov. 6-7 must apply online by close of business, Wednesday, Sept. 17. The conference will be held at the Intercontinental Hotel Buckhead. The scholarships are available through the EOC Scholarship Program, which helps offset travel expenses to NAHB events and strengthen the federation by allowing state and local association executives to become more knowledgeable and successful managers. 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. Attendees also will have opportunities to network and share ideas and challenges with their association colleagues. To Register To register online to conference, click here. For more information, e-mail Mary Alice Hewitt at NAHB or call her at 800-368-5242 x8176, or Donna Oliver, x8332. Dell Offering Double Discounts in SeptemberDell is offering double discounts to NAHB members from Sept. 1 through Sept. 30 on an array of products designed to meet the technology needs of your company. That means Dell’s normal discounts of 3% to 5% to NAHB members will double to 6% to 10% on essential small business technology, including business-class desktops and cutting-edge notebooks. Dell not only has the technology to make your home building business run more efficiently — it also offers NAHB members a more efficient way of doing business. To Get Your Discount Visit www.dell.com/nahb for complete details and to make your selection. To Maximize Your Dell Member Advantage Discount After you have made your selections and are ready to purchase, call your dedicated Dell sales representative at 888-577-3355, Monday through Friday, 7:00 a.m. to 8:00 p.m. (CST) and Saturday, 8:00 a.m. to 5:00 p.m. (CST). Mention link ID# 115762620. Your sales representative will apply your NAHB member discount to your order. NAHB members who have previously ordered from Dell also receive a monthly catalog, which includes this double discount offer. The Dell Double Member Discount* offer is valid Sept. 1 through Sept. 30, 2008. * Double discounts do not apply to the preconfigured systems that are already priced at up to 20% off. Other Member Advantage Discounts For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to the Member Advantage main page on the NAHB Web site.
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 Combined With GM Employee Discount Till Sept. 30Now through Sept. 30, NAHB members can combine the GM $500 Offer with the GM Employee Discount for Everyone. 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. Fix Credit Card Processing Rates for Two Years With SolverasSolveras Payment Systems offers members and home builders associations the opportunity to fix their credit card processing rates for the next two years if they sign up with Solveras by Monday, Sept. 15. Solveras sales consultants are available to review current credit card processing rates and other payment costs. They can help save members money or determine if their existing rates are good. For more information or to sign up for this free service, call 800-613-0148, or e-mail info.1@solveras.com. To learn more about Solveras’ Complete Payment Processing and Virtual Terminal Pro, visit www.solveras.com/nahb. 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. 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. Office Depot: $10 Off First $100 for New Member CustomersOffice Depot is offering $10 off any delivery order of $100 or more (excluding technology) for NAHB members who register for the first time as new customers through Sept. 30. This offer includes home builders associations who also sign up as new customers. The one-time $10 off is in addition to the everyday 10% Office Depot discount available to NAHB members who have signed up for the program. The one-time offer will be applied to purchases made during the entire month of September. To register, new customers should call 800-274-753 and mention coupon code 35235365 to receive the additional $10 off a $100 order. Other Member Advantage Discounts For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to www.nahb.org/MA.
Free NAHB Kit Gives Builders Back-to-Basics Tips to Navigate the Slowdown What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn. To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. Calendar of Events
Learn More About Upcoming Conferences and Designations Interested in attending a University of Housing conference or learning more about NAHB designation programs? Visit www.nahb.org/notifyme, and sign up to receive more information.
Free NAHB Kit Gives Builders Back-to-Basics Tips to Navigate the Slowdown What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn. To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242.- |