Nation's Building News Online: February 16, 2009Print All Articles Text Version |
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Stimulus Provisions to Help Put Housing on the Right TrackThe $787 billion economic stimulus package signed into law on Feb. 17 by President Barack Obama contains elements that will bolster housing and the economy, according to NAHB. “While we believe that including a more enhanced home buyer tax credit in the final legislation would have been the best way to spur housing demand and move the economy forward, the new law does include several provisions that should help to put housing and the economy on the right track,” said NAHB Chairman Joe Robson. Chief among these is an $8,000 first-time home buyer tax credit for qualified home purchases in 2009. To encourage prospective home buyers to get off the fence, the tax credit:
Other important components in the American Recovery and Reinvestment Act of 2009 will help small businesses and bolster the housing market. The legislation will:
The housing sector still faces significant challenges, said Robson, including a severe credit crunch, particularly for acquisition, development and construction lending; skyrocketing foreclosures; and stimulating demand for home buying to stabilize housing markets. “We look forward to working with Congress and the Administration to build upon the provisions of the new economic stimulus law to address these pressing needs and, ultimately, lead the nation’s economic recovery,” said Robson. For more information on the stimulus legislation, e-mail Greg Brown at NAHB or call him at 800-368-5242 x8421. Expanded Energy Tax Credit to Boost Demand for Renovation JobsBeefed-up tax credits for energy-efficient home improvements in the new economic stimulus package are expected to help increase demand for green renovation projects this year and next. The Internal Revenue Code Section 25C for existing homes, which had expired at the end of 2007, was reinstated as part of the economic rescue package passed by the Bush Administration last fall. Installing energy-efficient windows, doors, roofing and insulation as well as furnaces, air conditioners and heat pumps all qualified for the credit. But remodelers found that the terms of the 25C credit — equal to only 10% of the cost of each product and with a lifetime cap of $500 — weren’t quite strong enough to get enough home owners off the fence and into a contract. Under the stimulus legislation signed by President Obama, the percentage of the cost and lifetime cap have been tripled to 30% and $1,500, respectively; the list of eligible improvements has been expanded and the deadline for installing them has been extended through the end of 2010. The newly expanded tax credit also is in alignment with industry research showing that remodeling and retrofitting the nation’s older homes will have a far more significant impact on reducing residential energy consumption than meeting even the most aggressive efficiency goals for new homes, according to Greg Miedema, CGR, CGB, CAPS, chairman of NAHB Remodelers. “These new tax credits are another way that the home building industry can combat the potential effects of global climate change by encouraging home owners to make energy-efficient improvements to their homes,” said Miedema. A 2008 California study showed that homes built before 1983 were responsible for 70% of the greenhouse gas emissions related to single-family envelope energy consumption. The study also found that spending $10,000 to retrofit a 1960s home could save 8.5 tons of carbon at a cost of $588 to $1,176 per ton, depending on existing tax credits and incentives. By comparison, increasing the energy efficiency of a new home 35% over current state requirements would cost about $5,000 and would reduce emissions by 1.1 tons at a cost of $4,545 per ton. The bottom line is that retrofitting existing homes with energy-efficient features is four to eight times more carbon- and cost-efficient than adding further energy-efficiency requirements to new housing, the study showed. Tax Credit How-to Details on qualifying improvements are expected to be available soon on the Energy Star Web site. Remodelers should familiarize themselves with the model types and products that qualify for the tax credit so they can advise their customers. However, they do not need to give their clients the product sales receipts to verify the claim. Certification statements in the manufacturer's product information may suffice. Home owners can claim the 25C credit on Form 5695 when they prepare their income tax returns. They should also retain records that include:
Builders Launch Tax Credit Web SiteNAHB has launched a newly-designed Web site that provides detailed information on the $8,000 tax credit for first-time home buyers, a key provision in the sweeping economic stimulus legislation signed into law by President Barack Obama. “The new tax credit provides a great opportunity for first-time home buyers,” said NAHB Chairman Joe Robson. “Combined with today’s near record low interest rates, the large selection of homes on the market and very competitive pricing, the tax credit should provide the extra incentive needed to get prospective buyers who have been sitting on the fence into the market.” In addition to being limited to first-time home buyers, the tax credit:
From Fannie and Freddie, Here Come the Fee IncreasesAs of April 1, Fannie Mae and Freddie Mac are increasing the delivery fees they charge lenders based on FICO scores, downpayment amounts and other loan characteristics. Most major lenders already are pricing in these higher fees, effectively raising costs to borrowers immediately. Lenders can pass these fees on to the consumer in the form of higher interest rates rather than as an upfront charge. Under the new guidelines, even applicants who assumed that their FICO credit scores would get them favorable rates will be charged more unless they can come up with downpayments of 30% or more. For example, a buyer with a 699 FICO score who brings a sizable downpayment of about 25% to the table will be hit with a 1.5% delivery fee at closing under the new guidelines. A buyer with a FICO score between 700 and 720 will pay an extra three-quarters of a point. Even someone with a 739 FICO — once considered a platinum guarantee of the best rates available — will get dinged with a quarter-point add-on. Condominium buyers who cannot come up with a 25% downpayment will be hit with a three-quarter point add-on penalty, no matter how high their credit score — simply because they are not purchasing a traditional detached, stand-alone house. Without congressional intervention or new marching orders from the companies’ regulator, the add-on fees are here to stay. But there’s an alternative available for just about anyone who wants to avoid the fees: Federal Housing Administration mortgages, where downpayments go as low as 3.5% and credit scores are not an issue for most applicants. (www.washingtonpost.com)
Fannie Eases Its InvestorLoan RulesFannie Mae has told lenders that starting next month it will buy or guarantee home loans made to borrowers that have mortgaged as many as nine other properties. Currently, it will not touch a loan if the borrower has financed more than three other homes. The change is meant “to bring added liquidity to the investor segment of the market and help hasten the recovery," Fannie said. However, the GSE, which said it wants to make more loans available to “high-credit quality, bona fide…experienced investors,” is tightening other requirements for this type of borrower. Starting in June, an investor will have to hold six months of payments in reserve, rather than two months, to get a single-family loan approved by Fannie’s automated system. Since they were downsized by the government last year, Fannie and Freddie Mac have been directed to put more emphasis on supporting the housing market; like other prospective home buyers, investors have been dissuaded from making purchases by tightened underwriting standards and forecasts that prices will keep tumbling. “Investors are often the first sign of a stabilizing market,” said Joe Garrett, a principal at Garrett, Watts & Co., a consulting firm in Berkeley, Calif. “One of the things that leads the economy out of a housing crisis is when prices get cheap enough that investors start moving in and buying things....Then the owner-occupants see that prices have stopped falling — they see how cheap prices have gotten, and they start to jump in.” (www.americanbanker.com)
Looking to Build on the FutureKatherine Renn takes the reins of the Peninsula Housing and Builders Association in Virginia with residential building permits in the Hampton Roads area at their lowest level in at least 28 years. But the way she sees it, the market has hit bottom, so there must be good times ahead. “I think we’re on the way up,” said Renn, the association’s 2009 president. “That might be because I’m an optimist, and I really want to believe that.” Builders in the local market are adapting to the new-home slowdown by moving into remodeling or commercial projects. “It’s a little scary stepping outside what you normally do, but they’re holding on until the economy gets better,” she said. Renn’s business, the Kicotan Co., which usually works on custom-built homes, is branching out into the multifamily market. Not only are the number of new homes down in the area, the size of homes is dropping, too. Buyers are looking for homes in the 2,500- to 2,800-square-foot range — down from the 5,000-square-foot homes that popped up during the recent boom, Renn said. They’re looking for a streamlined design with more functional space. “You’re probably cutting out rooms you’d never use,” she said. Buyers still want the perks — the granite counter tops, the hardwood floors, the lavish fixtures, the heated bathroom floor, the spacious master suites and bathrooms — that came along with those big homes, she said. They also want nice outdoor spaces, such as patios and stamped concrete. “They’re not really cutting back on those things,” she said. “As soon as everybody gains a little more confidence, sales are going to start,” Renn said. “We’re already seeing some of that.” (www.dailypress.com)
Paying $1,299 for a Washer in Order to Save $90 a YearAppliance makers are pushing a new wave of energy-efficient products this year. But instead of simply marketing them as “green,” companies are now pushing their products’ potential cost savings, in an attempt to attract penny-pinching consumers during the economic downturn. At the International Builders’ Show last month, manufacturers advertised long-term cost-savings estimates for a host of new appliances. General Electric, for instance, says its hybrid electric water heater to be released this year will save consumers about $250 annually. Kohler says that switching to its latest models of water-conserving shower heads, toilets and faucets saves a family of four between $90 and $200 a year. Whirlpool Corp. says its new top-load Cabrio HE washer (which retails for $1,199 or $1,299) can save up to $900 in lifetime water and energy costs (or $90 a year, since the company assumes the machine’s lifetime is 10 years.) Appliance manufacturers are pushing the financial savings because their eco-friendly green appeal alone may otherwise be a hard sell in a recession. But energy-efficient products are also becoming more attractive because the price difference between them and traditional devices is narrowing. Kohler, for instance, says it doesn’t charge extra for its products that met efficiency standards for the federal WaterSense designation. Whirlpool now offers Energy Star-rated models of its Classic washers and dryers, which are priced between $549 and $679 and are generally cheaper than its other lines. (www.wsj.com)
Home Buyers Go Green to Cut BillsIn an attempt to boost sales in a dismal market, home builders are turning to what has been one of the most overlooked aspects of a house: improving the way it uses energy. While the sales results are mixed so far, industry experts say the move could eventually boost business as more cost-conscious consumers seek to save on rising power bills by having a more efficient home. Already, builder Kevin Enyeart, in Lee Springs, Mo., says he has picked up two contracts and possibly a third over the past six months to sell homes to buyers who specifically requested energy-saving features, such as better insulation and tighter-fitting windows. That’s rare good news in a market Enyeart says is so bad that he has had to cut the number of homes he builds to about 20 a year from 40. “I used to be a pessimist about going green, but not anymore,” he says. Energy efficiency, in particular, has emerged as a top priority for consumers because power bills have more than doubled in many markets. When asked to list their top 12 influences in buying a home, consumers responding to an NAHB survey last year put energy efficiency at No. 2, behind quality of living space. Five years ago, energy didn’t even make the same survey. (www.wsj.com)
Mexican Developers Target Aging Americans With Inexpensive Senior HousingWith the average monthly rent for an American assisted living unit approaching $6,000 and nursing home rents topping $8,000, senior communities in some quaint Mexican cities are choosing to offer these facilities for as little as $1,100 a month. There are more than a million aging Americans and Canadians who have already retired in Mexico, and many of them, like the estimated 76 million of their baby boomer peers in the states, will increasingly require greater levels of care. Inevitably, as rents for U.S. senior facilities continue to skyrocket, many will discover that their depleted retirement funds won’t cover the costs. And some far-sighted Mexican developers are already taking notice. As Eduardo Alvarado, chief executive officer of La Moreleja, a residential development in San Luis Potosi, a bustling northern Mexican city with a population of nearly 700,000, observes, “Senior housing is not going to be a niche market. It’s going to be an entire industry. We already have the pioneers here, but what we are seeing is that many people will come, perhaps not because they want to, but out of necessity.” Mexico, he claims, is far more modern and much safer than Americans imagine. So far, however, assisted living facilities are unregulated in Mexico. They’re so new — with only about a half-dozen in the country — that laws are yet to be adopted to cover them. The Mexican Association of Retirement Communities is seeking regulations similar to those governing U.S. senior housing properties. (www.newsfornatives.com)
Builder Confidence Languishes at Historic LowsReleased on Feb. 17, the NAHB/Wells Fargo Housing Market Index (HMI) for February remained in the single digits for a fourth consecutive month, rising a single point to 9. Virtually unchanged from an all-time record low in January, the HMI indicated that home builders have seen essentially no improvement in the marketplace. “Clearly, the market for new single-family homes remains very weak at this time,” said NAHB Chairman Joe Robson. “However, looking forward, we are certainly hopeful that the newly passed economic stimulus bill, which includes some favorable elements for first-time home buyers and small businesses, will have a positive impact that will help get housing and the economy back on track.” Provisions within the overall stimulus package that should help stimulate demand for housing and otherwise bolster the housing sector include a new and improved, $8,000 first-time home buyer tax credit; an extension of 2008 FHA, Fannie Mae and Freddie Mac loan limits through the end of this year; an expansion of the net operating loss carry-back period from two years to five for small businesses; and other tax elements relating to energy-efficient and low-income housing programs.
Derived from a monthly survey that NAHB has been conducting for more than 20 years, the HMI gauges builder perceptions of current single-family home sales, sales expectations for the next six months and the traffic of prospective buyers. Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view sales conditions as good than poor. Two out of three of the HMI’s component indexes gained some ground in February, with the index gauging current sales conditions rising a single point to 7 and the index on traffic of prospective buyers rising three points to 11. Meanwhile, the index gauging sales expectations in the next six months fell two points to a new record low of 15. Regionally, the HMI rose a single point in both the South and West, to 12 and 5, respectively, in February. The Midwest posted a two-point gain, to 8, and the Northeast registered a one-point decline, to 9.
Find out in HousingEconomics.com's Long-Term Forecast. Subscribe and get downloadable Excel tables that feature the housing starts forecast, gross domestic product (GDP), demographics and more. To learn more, visit www.housingeconomics.com. Eye on the Economy: Economic Growth Weaker Than It LooksReal gross domestic product (GDP) contracted at an annual rate of 3.8% in the final quarter of 2008, according to the “advance” report released by the Commerce Department on Jan. 30. This was the weakest performance since 1982, although the decline was smaller than generally expected (we had estimated a 5.5% decline). The major components of domestic final demand contracted rapidly in the fourth quarter, including consumer spending, nonresidential fixed investment and residential investment. Indeed, housing production contracted at a 23.6% annual rate and subtracted 0.85 of a percentage point from the overall GDP growth rate (that’s a lot). Two surprises limited the fourth-quarter GDP contraction in the face of the retrenchment of domestic final demand. First, business inventory investment added 1.3 percentage points to the change in GDP and, second, net exports were a neutral force rather than a drag on growth. Both performances were unsustainable, and the inventory buildup definitely has negative implications for the early part of this year. The buildup obviously was unintended, and firms undoubtedly will make strong efforts to cut stocks in the near term. We’re currently projecting a 5.2% annualized rate of contraction in real GDP for the first quarter of 2009, the sharpest setback since the second quarter of 1982. We expect most major components of GDP to contribute to this decline, including inventories and trade, and the contraction in housing production will once again be a big part of the story. Downward economic momentum most likely will extend into the second quarter of this year ― we expect a 1.5% decline in real GDP ― even though an impressive combination of economic policies should be coming together by then. We expect policy support to gain sway during the second half of 2009, pushing GDP growth modestly positive and paving the way for stronger growth in 2010. The Labor Market Is in Free-Fall The current recession began in December 2007 as payroll employment topped out, and the contraction in employment has been accelerating dramatically ever since. The cumulative loss of jobs through January now comes to about 3.6 million. Half that loss occurred during the last three months alone, and the January loss of 598,000 jobs was the worst since December 1974. Furthermore, the job losses have been broad-based, including large ongoing losses in residential construction ― 61,000 in January. Only education and health care have shown recent gains. The unemployment rate naturally has been moving up as employment has fallen, rising by 2.8 percentage points since the beginning of the recession to a level of 7.6% in January. The unemployment rate has literally shot up since last September, registering a 1.4 percentage point increase over the course of four months — the type of increase not seen since the 1980 recession. The Labor Department’s most comprehensive measure of underemployment, including so-called discouraged workers and those working part time who would rather be working full time, shows an even more dire picture than the standard unemployment rate. This rate (U6) has now risen to 13.9% and is up by five percentage points over the past year, driven mainly by increases in involuntary part-time work. The near-term outlook for the labor market is quite serious, and job losses similar to those of recent months are in the cards for at least a few more months. Indeed, net job losses are likely to persist throughout the year, even if GDP growth picks up in the second half. The unemployment rate may very well rise into the early part of 2010, approaching 9% in the process. Bank Lending Policies Still Are Tightening Efforts by the Federal Reserve, the Treasury, Congress and the White House to improve the functioning of financial markets have shown some success, particularly in interbank and short-term securities markets, and huge quality spreads have narrowed a bit in some components of bond and mortgage markets. But little or no success has been seen in the banking system, despite large injections of capital under the Troubled Asset Relief Plan (TARP) as well as massive injections of reserves by the Federal Reserve. Banks are leaning hard on many outstanding loans and are severely restricting the supply of credit for new loans. The Fed’s most recent quarterly Senior Loan Officer Opinion Survey on Bank Lending Practices, conducted in January, documented continuation of the tightening process that began in earnest early last year. The Fed report noted that “the net fractions of respondents that reported having tightened their lending policies on all major loan categories over the previous three months stayed very elevated.” The tightening process continued to show up in the mortgage lending arena, where about half the banks had tightened their lending standards on both prime and “nontraditional” mortgages — on top of even broader rounds of tightening in previous quarters. Only a few banks reported making any subprime mortgages late last year. The tightening of bank lending policies now is hitting the markets for land acquisition, land development and construction loans (the AD&C credit markets) very hard. Nearly 80% of banks in the Fed survey had tightened standards for such loans during the final quarter of 2008, and no bank had eased standards. Tightening in the AD&C market has most commonly taken the form of lower loan sizes, lower loan-to-value ratios, higher debt-service coverage ratios and wider spreads of loan rates over banks’ cost of funds. Interest rate floors in floating-rate contracts also have proliferated. Housing Affordability Measures Surge, But Demand Weakens Further The large cumulative decline in national average home prices, historically low mortgage interest rates and surprisingly resilient median family income have combined to push up standard measures of housing affordability in recent times. The national Housing Affordability Index produced by the National Association of Realtors® hit a record high in December ― the series goes back to 1971. Furthermore, NAHB’s Housing Opportunity Index surged in the final quarter of 2008 following a systematic rise from the cyclical low in mid-2006. But housing demand has been weakening rather than strengthening, particularly in the new-home market and the owner-occupied portion of the existing-home market (abstracting from foreclosure-related sales to investors). In fact, NAHB’s single-family Housing Market Index hit a record low in January and preliminary tabulations suggest little change in February. The disconnect between affordability measures and housing demand points to the inherent deficiencies of the affordability measures as forecasting devices. In the current circumstances, improvements in these measures are being overwhelmed by tightening mortgage lending standards, expectations of further house price declines and consumer concerns about the darkening economic environment. The restoration of measured affordability bodes well for housing down the line, but it’s obvious that special measures now are needed to spur home buying and arrest the downward spiral in house prices. Vacancies Still Are Excessive in Home Owner and Rental Housing Markets The weakness of housing demand and the persistent upswing in mortgage foreclosures are keeping vacancies in the housing stock at historically high levels despite massive cutbacks in new housing production. And an economically induced slowdown in household formations is only exacerbating a bad situation. The home owner vacancy rate moved up to a record-high 2.9% in the final quarter of 2008, equivalent to the rate in the first quarter of the year, and the rental vacancy rate moved up to 10.1% in the fourth quarter — also equaling its first-quarter high. There were about 6.4 million vacant year-round housing units on the market (for-rent or for-sale) at the end of 2008, nearly 5% of the total housing stock. Furthermore, an unusually large number of vacant units were held off the market, suggesting that the “shadow” inventory still is running high. Excessive housing vacancies are putting persistent downward pressure on house prices, wiping out household wealth and further weakening mortgage credit quality. Policy measures to spur home buyer demand and limit foreclosures are urgently needed to stimulate demand, limit supply and stabilize prices, and policymakers are now on the job. The Fed Must Pull Out the Rest of the Stops The Fed now has the target federal funds rate at its effective floor ― at or close to zero. Furthermore, our central bank has aggressively provided short-term liquidity to sound financial institutions, including primary securities dealers, through creative use of the discount window. The Fed has also developed a second set of policy tools that involve the provision of liquidity directly to borrowers and investors in key credit markets, including the high-grade commercial paper market. A third set of tools involves the purchase of longer-term securities for the Fed’s portfolio, including the debt and guaranteed mortgage-backed securities of the housing government sponsored enterprises (GSEs). The Fed has additional measures under consideration or on the drawing board, and hopefully these will be implemented in the immediate future. A new Term Asset-Backed Securities Lending Facility (TALF) has been promised for some time, and a beefed-up version is part of the Treasury’s Financial Stability Plan that was unveiled by Treasury Secretary Tim Geithner. This facility will be capitalized by the Treasury and the Fed will lend to investors against high-grade asset-backed securities collateralized by various consumer and small-business loans and possibly commercial as well as private-label residential mortgage-backed securities. The Fed also has been talking about buying more aggressively into the long end of the Treasury yield curve, in effect “pegging” long-term Treasury rates at some desired level. The Fed should stand ready to implement this policy as the prospect of burgeoning Treasury issues and the possibility of falling demand from overseas combine to raise Treasury rates and drag up associated long-term private interest rates (such as home mortgage rates) in the process. Treasury’s ‘Financial Stability Plan’ Disappoints Financial Markets On Feb. 10, Treasury Secretary Geithner unveiled the Administration’s eagerly awaited “Financial Stability Plan,” characterized as “Deploying our Full Arsenal to Attack the Credit Crisis on all Fronts.” Unfortunately, the financial markets expressed a good deal of skepticism about the plan as the stock market fell sharply and investors sought out the security of the Treasury market The negative reactions apparently were provoked partly by a glaring lack of concrete details behind a series of complicated concepts contained in a Treasury “Fact Sheet.” The markets were looking for quick and decisive government support to the credit system but came away with major uncertainties about the structure and feasibility of the plan outlined by Secretary Geithner. The markets also appeared to be concerned about heavy emphasis on the need for private capital, and comparatively light emphasis on the potential need for more public funding to “cleanse” the balance sheets of stressed financial institutions. In general, the package was far less bank-friendly than the markets had hoped for. The Financial Stability Plan promised that a comprehensive plan for “Housing Support and Foreclosure Prevention” would be developed “soon.” The broad outline mentioned expansion of Federal Reserve efforts to drive down mortgage rates and the use of $50 billion of the remaining TARP funds “to prevent avoidable foreclosures of owner-occupied middle-class homes.” But no further details were presented on the foreclosure relief front. Perhaps the Financial Stability Plan just wasn’t quite ready for prime time, and implementation of a fleshed-out plan might turn out to be quite constructive. But the announcement was a stunning downer for the markets and there’s a lot of skepticism about the eventual success of the plan outlined by the Treasury secretary — not exactly what the markets and the economy need at this juncture. The Outlook Remains Uncertain While Policies Are in Flux President Obama has talked about a three-legged policy stool that must be assembled if the U.S. economy is to avoid a protracted recession that could degenerate into a deflationary depression. The three legs are fiscal stimulus, financial stability and foreclosure relief, and these measures should be coupled with maximum complementary efforts by the Federal Reserve. At this point, fiscal stimulus is moving well in Congress but the Treasury’s Financial Stability Plan is getting stern reviews from the markets and there’s no concrete plan in view to deal with the daunting foreclosure issue. On the Fed front, our central bank has run out of traditional monetary policy ammunition and is attempting to improve credit flows via use of its practically unlimited balance sheet capacity — unconventional measures with uncertain impacts. This all adds up to substantial uncertainty about the economic outlook. It seems likely that economic growth will be able to solidify by the second half of this year and that the labor market will start to recover early next year — that’s our forecast. But even this pattern would leave a huge gap between actual and potential output as well as a tremendous degree of slack in labor markets. This scenario brings outright price deflation onto the radar screen, a potentially destructive condition that would create daunting challenges for policymakers here and abroad. Stay tuned. NAHB 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 the Feb. 11 edition. To subscribe to “Eye on the Economy,” click here. Want to Know the Housing Starts Through 2017? Find out in HousingEconomics.com's Long-Term Forecast. Subscribe and get downloadable Excel tables that feature the housing starts forecast, gross domestic product (GDP), demographics and more. To learn more, visit www.housingeconomics.com. Useful Links to Monitor Economic and Housing TrendsThe following are links to useful information from government agencies and NAHB that will enable you to monitor the housing market. To access the latest information available, simply click the links.
Want to Know the Housing Starts Through 2017? Find out in HousingEconomics.com's Long-Term Forecast. Subscribe and get downloadable Excel tables that feature the housing starts forecast, gross domestic product (GDP), demographics and more. 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. NAHB Members Can Get Free Business Survival TipsNow through March 13, NAHB members can get free business survival information on such issues as bankruptcy, reorganization, liens, subcontractor disputes, partnership issues and more that will help them survive the downturn. The information, prepared by the Texas-based international law firm Gardere Wynne Sewell LLP, will be available on the NAHB Web site in a "Frequently Asked Questions" format that will address a variety of topics, including: Bankruptcy/Reorganization
Members whose questions are not answered on the Web site posting will be able to call or e-mail the law firm for more information. For further information on this program, e-mail David Jaffe at NAHB. Builders’ Tip: How to Secure a Log for Log Work
They are round and, when not properly secured, tend to roll off a pair of sawhorses. The accompanying drawing shows my setup for securing a log while I work on it:
Tips & Techniques provided by Fine Homebuilding.
To contact Fine Homebuilding, e-mail Christina Glennon.
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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. Effectively Manage Business With Free, New Biztools Guides
The guides provide members tips on technology, business planning, ensuring the financial health of their businesses and more. Each guide includes member-written articles that offer tips and advice on how to improve business — especially in tough times. Produced by NAHB's Business Management and Information Technology Committee, and found in the business management resources section of the NAHB Web site — www.nahb.org/Biztools — the new 2009 Biztools Builder Business Guides include:
For electronic versions, go to www.nahb.org/bbg. To order free hard copies, not including shipping, visit www.nahb.org/materialsordering. Free 2007 and 2008 Biztools Business Guides Available The 2007 and 2008 Biztools builder business guides are also available free to NAHB members and can be downloaded from the NAHB Web site in a PDF format only. To view or download the 2007 and 2008 guides, click here. Free Biztools Flyer on Resources Also Available A free Biztools Flyer indicating all the business-oriented resources available at BuilderBooks.com and NAHB’s Business Management Department is also available to members. Packed with resources that can help keep businesses afloat, the flyer introduces members and HBAs to the many resources available through membership. To order free copies, not including shipping, visit www.nahb.org/materialsordering.
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. Auctions Creating Sense of Urgency and Moving InventoryAuctions are one of the more successful ways to move inventory in today’s down markets and create a sense of urgency among potential home buyers. “The business is a counter-cyclical one and, therefore, is busy when the real estate market is down,” said Sue Hawkes, president and CEO of The Collaborative Companies, which runs its own auction division, Velocity Marketing. “Auction programs are a terrific complement to a real estate marketing company, since many of the same principles apply.” “An auction establishes ‘the bottom’ — the number a buyer or multiple buyers are willing to pay,” says Hawkes. “Rather than weekly price reductions that create distrust in the marketplace and subsequent paralysis, an auction gives the market the opportunity to establish the value.” Tom Vetter, West Coast president for Accelerated Marketing Partners — a real estate marketing and consulting firm that offers auction campaigns among its services — says that preparations for a typical real estate auction can start about two months prior to the live auction date. During the first month, the company putting on the auction develops and produces materials — such as brochures, advertising, e-mail blasts and press releases — to attract potential buyers. The preparations also include securing media coverage of the property, conducting open house tours and answering the questions of potential buyers. The auction company usually has its staff working with the builder’s marketing and sales teams anywhere from four weeks to seven days before the auction takes place, depending on the marketing campaign. In this reverse sales process, the auction company and the property’s sales team are there to explain and inform, not sign. This takes the pressure off of the staff and the buyers. “Basically, one year's worth of traffic visits the site in a four-week period, clearly speeding up the process, creating urgency and a ‘date certain’ for performance,” explains Hawkes. Live auctions also provide an easier financial process. Since the buyers do their due diligence beforehand, the builder and lender can discover any credit issues ahead of time, before the buyer has even put in a bid. This process can cut escrow time down to as little as 20 minutes. The benefits of the auction can also extend to homes that don’t sell during the live auction. “The ultimate value for a seller who does not sell out at auction is to sell the remaining units in a strategically positioned program, ‘post-auction,’” explains Hawkes. “This combination provides the ultimate sales package, maximizes the return to the seller and controls and minimizes the risk that a straight, conventional auction cannot.” Auctions clearly provide great benefits to both builder and buyer, but what about all the foreclosures now on the market? Vetter says that the new home auctions yield buyers a better deal because buying a foreclosure usually means facing the cost of repair or remodeling. Many foreclosures have been damaged by previous occupants or by simply sitting vacant for months. Many homes can shrink without climate control and can experience problems after the utilities are turned back on again. New homes, on the other hand, still have their builder warranties to assure bidders of quality and to protect buyers from any unexpected problems. Online auctions are another alternative some buyers have turned to. However, Vetter says that it is much harder to create the sense of urgency of a live auction, even with streaming video. “Nothing replaces the excitement and opportunity of a live auction,” agrees Hawkes. “Much of the success of an auction depends on the synergy created in the auction environment.” While live real estate auctions can provide a good solution for builders who want to move inventory, as with any consultant, builders should be sure to get references when hiring a company to stage an auction. Some have been involved in lawsuits, so it is important to do the homework. For information on sales and marketing resources available from NAHB, e-mail Tamsin Ayre, or call her at 800-368-5242 x8673. ‘ValueMatch Selling for Home Builders’ Available at BuilderBooks.com “ValueMatch Selling for Home Builders,” available through BuilderBooks.com, presents a selling process that focuses on selling feelings and appealing to prospective buyers’ emotional need to buy a new home in today’s market rather than product. Learn how to build rapport with prospective home buyers, meet their needs, make powerful presentations that are focused on their values and go for the close. To view or purchase this publication online, click here, or call 800-223-2665. Subscribe to Sales + Marketing Ideas Magazine for Cutting-Edge Information For additional cutting-edge sales and marketing information, subscribe to NAHB’s Sales + Marketing Ideas magazine (www.smimagazine.com). Click here to learn about membership benefits of the National Sales and Marketing Council and the Institute of Residential Marketing. Job Losses, Tight Credit Erode Confidence in ApartmentsThe deepening recession and ongoing credit crunch continue to drag down builder confidence in the multifamily housing market, according to the latest results of NAHB’s Multifamily Rental Market Index (MRMI) and Multifamily Condo Market Index (MCMI), which were released on Feb. 11. "Job losses and tightening credit continue to depress current and future multifamily construction," said David Crowe, NAHB's chief economist. "Without job growth as a demand driver for rental apartments, new construction is declining. And without access to credit, the pipeline for future construction is running dry." The component of the MRMI that gauges supply conditions sank dramatically in the fourth quarter of 2008 to 22.4 for affordable apartments and 18.6 for market-rate apartments, compared to 45.3 and 40.00, respectively, for the same period a year earlier. On the condo side, the supply component fell 11 points from the fourth quarter of 2007, hitting a new record low of 7.8. NAHB's Multifamily Market Indexes are derived from quarterly surveys of multifamily builders and developers. The index is on a scale of 0 to 100, with a rating of 50 generally indicating that the number of positive responses is about the same as the number of negative responses. Looking ahead six months, builders and developers in last year’s fourth quarter were only slightly less pessimistic. The MRMI component tracking builder expectations for the supply of affordable rentals was at 28.6, down from 48.9 in the fourth quarter of 2007. Confidence in future market-rate rentals was less than half its year-earlier level — falling from 50 to 22.5. On the MCMI, the index gauging expectations for condo supply dropped from 29.2 in the final quarter of 2007 to a lowly 13 for the final three months of 2008. On the demand side, the components of the MRMI tracking current conditions for every class of rental apartment — affordable, moderately priced and luxury market-rate — all fell below 50 for the fourth quarter of 2008. The index for Class A apartments declined 19.9 points from fourth quarter to fourth quarter, to 23.5. Demand for moderately priced and affordable apartments fared only slightly better, slipping 11.6 points and 15.9 points respectively to 37.1 and 42.4. Other indicators also remained weak at the end of last year. Traffic among potential renters and condo buyers was down, vacancy rates for apartments were up and asking rents were on the decline. For the fourth quarter of 2008, asking rents were at 41 on the index, their lowest level since the inception of the series in 2003. According to NAHB Chief Economist David Crowe, the excess inventory of unsold single-family houses and condos is casting a shadow over every sector of the housing market. For more information about this survey, e-mail Ann Marie Moriarty, or call her at 800-368-5242 x8350. Green Standard Scoring Tool Now Available for Multifamily BuildingsThe National Green Building Standard scoring tool for new multifamily buildings is now available and online at www.nahbgreen.org, the home of NAHBGreen, the NAHB National Green Building Program. The multifamily tool is the second part of the standard to be made available for scoring projects online. The single-family standard tool was launched on Feb. 3. Tools for remodelers and developers will go online in the coming weeks. The NAHB Research Center, the certifying body for the National Green Building Standard as a rating system of NAHBGreen, has set a fee of $200 for a green multifamily building plus an additional $20 per unit in the building. Verification services are negotiated between builders and verifiers directly and will vary based on the region and types of services provided. National Green Building Certification must be used to certify an entire multifamily building; individual units within the building are not eligible on their own unless all the other units in the building are certified. Builders interested in certification through NAHBGreen can find a Research Center-accredited local verifier on the “Find a Verifier” page at www.nahbgreen.org. The builder can work with the verifier to review the score sheet, schedule a rough-in inspection and then schedule a second inspection when the project is finished so the building can be submitted for national certification. All accredited verifiers listed at www.nahbgreen.org are being given additional mandatory training so that they are ready to verify a multifamily building to the new standard. This training will be completed by March 31. For additional information, call the National Green Building Program Hotline at 877-NAHB-GRN, or click here for the "Contact Us" page at www.nahbgreen.org.
‘National Green Building Standard’ Available at BuilderBooks.com “The National Green Building Standard,” available through BuilderBooks.com, provides “green” practices that can be incorporated into multifamily and single-family new home construction, home remodeling and additions and site development. The standard covers lot design, resource, energy and water efficiency; indoor environment quality; and owner education. Currently the first and only ANSI-approved green building rating system, the National Green Building Standard is the benchmark for green homes. To view or purchase this publication online, click here.
Attend the National Green Building Conference in Dallas Attend the 2009 National Green Building Conference in Dallas on May 10-13 to learn more about the critical paths to green building, and to participate in interactive sessions and be part of the driving force for the green building and remodeling markets. For more information and to sign up to be notified when registration opens, visit www.nahb.org/GreenBuildingConference. Home Remodelers Lower Their Market ExpectationsRemodelers perceived weakening demand for current and future residential remodeling jobs in last year’s final quarter, according to the latest NAHB Remodeling Market Index (RMI). The RMI’s current market conditions indicator slid to 27.7, down from 33.5 in the third quarter, while future expectations plummeted from 27.7 to 19.6. Both readings were historic lows for the index, which was started in 2001. Any number over 50 indicates that the majority of remodelers view market conditions as improving. The RMI has been running below 50 since the final quarter of 2005. “During the last quarter many remodelers were wondering if their phones were still working because they received virtually no calls for work,” said NAHB Remodelers Chairman Greg Miedema, CGR, CGB, CAPS, a remodeler from Tucson, Ariz. “The jobs we are getting are for smaller projects and necessary home maintenance.” Compared to the previous quarter, the 2008 fourth quarter RMI showed market conditions for major additions and alterations declining from 29.4 to 20.2, while conditions for minor additions and alterations dropped from 38.5 to 33.5. Maintenance and repair fell from 30.9 to 27.6. Overall, major additions and other large remodeling jobs have experienced a greater decline than smaller remodels and maintenance. “Remodelers suggest that the huge decline in consumer confidence, volatility in the stock market and uncertainty about the future of the economy have resulted in home owners delaying remodeling decisions,” said NAHB Chief Economist David Crowe. “Consumers are waiting to see conditions improve before committing to home improvement spending.” All the RMI measures of future expectations in the remodeling market — calls for bids, amount of work committed for next three months, backlog of remodeling jobs and appointments for proposals — were down in the final three months of last year. Expectations for the remodeling market slipped in all regions of the country during the fourth quarter — from 32.9 to 24.9 in the Northeast, from 31.5 to 30.7 in the South, from 36.2 to 28.0 in the Midwest and from 36.1 to 25.0 in the West. For more information about remodeling resources available from NAHB, e-mail Kelly Mack, or call her at 800-368-8451. Arizona Remodeler Selected as NAHB Remodelers ChairGreg Miedema, CGR, CGB, CAPS, president of Dakota Builders, was appointed the 2009 Chairman of NAHB Remodelers last month during the International Builders’ Show in Las Vegas. As chair of the leading professional organization for residential remodeling, Miedema represents the more than 14,000 remodeling industry members of NAHB. “NAHB Remodelers leads the industry for professionalism and excellence,” said Miedema. “I’m honored to lead the charge for strengthening the industry and seeing our members through this economically challenging time. With our creativity and cunning, remodelers continue to improve homes and enhance the lifestyle of home owners.” Miedema established his professional remodeling firm in 1987. He has earned accolades for his remodeling work, including being named “Remodeler of the Year” five times by the Southern Arizona Home Builders Association in Tucson. Miedema founded and serves as chairman of his local remodelers council, served as a local director and held national NAHB leadership positions. Miedema was also one of the developers of the Certified Aging in Place Specialist designation for educating remodelers about home improvements to enhance accessibility and livability for senior home owners. For many years, Miedema has produced high-quality home remodels, including additions, energy-efficiency improvements and aging-in-place projects. His professionalism and industry accomplishments have been recognized by NAHB’s national Remodeler of the Month award, Professional Remodeler magazine and others. Catch Up With NAHB Remodelers Updates at IBS Association members who missed the NAHB Remodelers meetings during the IBS can catch the highlights by visiting www.nahb.org/nahbrwinterboard. The Web site includes meeting materials, reports, minutes and highlights from the NAHB Remodelers General Session. For more information, e-mail Kelly Mack, or call her at 800-368-5242 x8451. Prefab Systems Can Help Solve Freddie Mac Appraisal IssueBuilding systems that expedite the construction process can help home builders deal with a new appraisal policy from Freddie Mac on one-time close loans that combine construction financing and a permanent mortgage, housing industry experts said at a press conference at last month’s International Builders’ Show in Las Vegas. In a Nov. 24, 2008 bulletin, Freddie Mac reminded lenders that an appraisal must be completed within 120 days of the permanent financing of the home for mortgages with settlement dates on or after Jan. 2, 2009. If the effective date of the appraisal is more than 120 days before the effective date of the permanent financing, then the seller must provide an appraisal update. Building systems can help builders complete their homes within the 120-day period and avoid the need for a new appraisal, participants at the press conference said, and modular homes are a prime example. “While the builder is working on site to complete the foundation, the various modules are being framed and finished,” said Charles Bevier, editor of Building Systems Magazine. “Sometimes manufacturers will even install cabinets and floor coverings in the factory. This leaves minimal work for a set crew to finish on site.” Even large, custom modular homes can be completed in less than 120 days from the start of construction, Bevier said. Panelized homes, concrete homes and log homes include some amount of prefabrication, according to participants at the press conference. These building system techniques save builders time and money, and in the case of the new Freddie Mac lending requirement, the time saved can make an important difference. However, there will be occasions in which not even the speediest of systems can produce a house in such a short time frame. “That does not mean that the builder is out of luck,” said Tracy Keyser, a vice president of M&T Bank. “A re-appraisal or official confirmation of the original appraisal will keep the loan intact and the project moving forward.” For more information on building systems resources available from NAHB, e-mail Tony Gacek at NAHB, or call him at 800-368-5242 x8357. ‘Leading From the Front’ a Secret of SuccessIndustry experts who have received the National Housing Quality Award from the NAHB Research Center, the highest recognition for quality achievement in home building, shared the secrets to their success at an educational seminar at last month’s International Builders’ Show in Las Vegas. K. Hovnanian, Northern California, received an honorable mention in the 2008 National Housing Quality Awards for customer satisfaction, and division president Larry Young attributes the honor to “leading from the front.” “Tell your managers to lead from the front. Be a zealot. Julius Caesar was never defeated on the battlefield because he led from the front. We spend time out in the field, show up for walk-throughs and have face-to-face interactions with our customers,” said Young. Digging down further, Young said another critical ingredient for success is an emphasis on employee training and job satisfaction. “Associate satisfaction equals customer satisfaction,” he said. “If they are not satisfied with the company, the customer will not be either.” The philosophy at K. Hovnanian is to ensure that employee training is consistent and ongoing and covers a wide gamut. For example, employees who frequently interact with consumers — such as warranty, construction and sales people — are taught what to say to customers as well as what not to say. An online program is focused on the technical aspects of building on-site, and supervisors shadow train by observing their associates on the job to make sure they are performing their work efficiently and interacting with their customers in the proper manner. Becoming More Efficient in Lean Times Like other home building firms, K. Hovnanian has been affected by layoffs and has had to learn how to be more efficient and responsive in lean times. Young said the firm has instituted an aggressive cross-training program where coworkers from different departments — such as construction and warranty — learn how to do each other’s jobs. “This breaks down the walls between departments in the company,” he said. “As times get tough and we need to reduce staff, this has helped people perform multiple functions and make the transition to a smaller staff easier.” To make employees feel responsible for customer satisfaction, K. Hovnanian created customer satisfaction goals for its warranty, construction and sales teams that link satisfaction to compensation. Employees who achieve their goals can be awarded a bonus upwards of 20% of their salary. “The more employees are engaged in the process, the closer we are to achieving our goals,” said Young. Another NHQ winner, the K. Hovnanian Virginia Division, received a silver award in 2009 for trade partnering. Establishing Trade Partner Councils Chip Merlin, vice president of operations for the Landover Group, K. Hovnanian Homes in the MidAtlantic and Carolinas, said that establishing a trade partner council with your trades is beneficial to both parties because it increases collaboration, facilitates communication and leverages talent. Partnering requires a team approach and developing trust between the builder and trade partner, he said. “You should run your trade partner council like a business,” said Merlin. “Develop a charter that outlines the council’s goals and defines the roles and responsibilities of the participants.” The advantage for his trade partners is that it gets them closer to the firm and gives them a leg up on the competition. K. Hovnanian benefits by knowing that it will have quality contractors working on its homes. “We want the best trade partners and crews,” said Merlin. “We deliver the most satisfaction to them in terms of overall value. We are their builder of choice. And our customers know that we are building high performing homes with high performing people.” Working Better Together Fireside Hearth and Homes, Manassas, Va., received a silver NHQ award in 2008 for the same category. Dave Scott, vice president of sales, said that trade partners are taking ownership of their product. “They are an untapped resource,” he said. “Before, I was never able to talk to contractors and laborers to see how we can work better together. All of us are smarter than any one of us. It’s an opportunity to get my eyes and ears into another part of the business.” Scott said his business is 20% the size of what it was in 2006 and that his staff has been reduced by two-thirds, but his firm still sees opportunities through trade partner involvement. “It’s all about inclusion and collaboration,” said Scott. “Trade partners seek to reduce the cost of doing business with each other. The results of collaboration are increased quality, higher customer satisfaction, committed trade partners and increased profitability.” Effective Leadership Needed T.W. Lewis Co., based in Tempe, Ariz., received an NHQ 2009 Gold Award for leadership. The firm builds 2,800- to 5,000-square-foot homes priced from $500,000 to more than $1 million. Kevin Egan, president and chief operations officer of the firm, said that leadership is the ability to inspire people to turn a vision into reality. He cited several elements of effective leadership. The first is to establish clear expectations for employees. T.W. Lewis requires new associates to perform a 30-day orientation check list. “They must take the responsibility for learning about their job skills and responsibilities,” said Egan. “If they are not taking the initiative to educate themselves after 30 days, they won’t stick with us for the long term.” Effective training is absolutely essential to produce a winning product, said Egan. This includes: leadership and service training to improve coaching and interpersonal skills; skill training that focuses on policies and procedures and service processes; and a management development program targeted to top performing associates. The two-year program includes strategic business planning, operation management and financial reporting. To promote feedback on strengths and weaknesses, T.W. Egan encourages creating avenues for associate participation, such as an Intranet suggestion box for all its associates. During bi-annual performance reviews, employees also have the opportunity to offer suggestions to their managers to make them more efficient and successful. The company also publishes a monthly newsletter that recognizes top employees in their respective areas. With upper management leading by example, Egan said that the goal is to create an environment that allows people to succeed. “You demonstrate the culture you expect and live the values you have defined,” he said. CAASH in on Active Adults at 50+ Housing SymposiumThree pre-conference classes will provide detailed knowledge about active adult home buyers — as well as enable participants to earn credit towards the Certified Active Adult Specialist in Housing CAASH designation — at the 2009 Building for Boomers & Beyond: 50+ Housing Symposium in April. The conference is hosted by the NAHB 50+ Housing Council. The symposium, which will be held on April 27-29 in Philadelphia, will also feature two active adult community bus tours, additional education sessions, the Best of 50+ Housing Awards gala and a keynote session featuring an economic forecast from NAHB Chief Economist David Crowe. The pre-symposium courses include:
For a complete schedule of symposium events, visit www.nahb.org/Build4Boomers. For more information on the CAASH designation, visit www.nahb.org/CAASHinfo. New Consumer Brochures Tout Value of Designations
New consumer brochures from NAHB tout the benefits of hiring a Certified Aging-in-Place Specialist (CAPS), Certified Graduate Builder, Graduate Master Builder, Certified Graduate Remodeler or Graduate Master Remodeler and can be used to help NAHB designation holders increase their recognition and set themselves apart from their competition.
The brochures highlight the rigorous training and knowledge required to earn an NAHB designation. Publicizing designations can be an effective way for builders and remodelers to differentiate themselves in a crowded marketplace, particularly in the current business climate.The brochures are available for purchase. For more information and to order the brochures, e-mail Starsha Valentine at NAHB, or call her at 800-368-5242 x8155. Boost Business, Skills During National Designation MonthNAHB members and other building industry professionals can jump-start or complete their designations during National Designation Month this month, now in its seventh year and sponsored by The NAHB University of Housing. The designation coursework enables members to hone their business and professional skills and convey to their clients the superior training, practical experience and in-depth knowledge that come with earning an NAHB designation. NAHB offers 16 professional designations covering industry basics such as business management and marketing, as well as specialized classes including aging-in-place programs, green building, property management and more. Designations for industry niche areas ― such as remodeling, multifamily and sales and marketing ―are offered in addition to the Certified Graduate Associate (CGA), a designation for suppliers, service providers and other people who work with builders. Click here to view a complete list of designations. Take Advantage of Networking Designation holders can take advantage of valuable networking opportunities throughout their enrollment, working closely with expert instructors and other professionals both within their field and outside their specific areas of expertise. Recognition events are held annually for designees at the International Builders’ Show. Local home builders associations that offer education often hold special events and promotions during National Designation Month. Members should check with their local HBA. For more information on National Designation Month, visit www.nahb.org/ndm, or call the Professional Designation Help Line at 800-368-5242 x8154. 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. Major Role Seen for New ANSI Green Building StandardHome builders and remodelers are beginning to use the nation’s first consensus-driven standard for residential green building, which was approved by the American National Standards Institute (ANSI) on Jan. 29. The ICC 700-2008 National Green Building Standard provides a flexible and robust third-party rating system for residential green project certification, which will be used for the NAHB National Green Building Program, or NAHBGreen. “Builders and home buyers who have been confused by the many characterizations of green building in the marketplace now have clear, flexible, bona fide criteria defined under the new standard,” said Michael Luzier, president of the NAHB Research Center. “Under the standard, there are options for Bronze, Silver, Gold or Emerald levels of certification that provide builders and remodelers with the flexibility to choose the certification level appropriate for their market and their customers.” At a teleconference in early February introducing the new standard to the press, International Code Council Chief Operating Officer Dominic Sims emphasized the important role the standard will play as builders and code officials try to reconcile green building practices with existing code requirements. “Coordination is key,” Sims said, adding that the standard adds predictability and consistency to above-code practices, such as green building, while retaining the flexibility that builders and home buyers are seeking. The standard also serves as an excellent educational tool, said Texas green builder Don Ferrier during the teleconference. The process of going through the standard checklist with a home-buying client, he said, can “facilitate a more knowledgeable approach” to attaining the results the client wants. The NAHB Research Center is the third-party certifying body for National Green Building Certification under NAHBGreen. As an ANSI-Approved Standards Writing organization, the Research Center also played a pivotal role as secretariat, or administrator, in the development process for the standard. Before the standard was approved, NAHBGreen certification was based on the NAHB Model Green Home Building Guidelines, which applied only to new single-family homes. With the new option of certification to the standard, developments, multifamily dwellings, remodeling projects and additions can also receive National Green Building Certification from the Research Center. Using the interactive Green Scoring Tool available on the NAHBGreen Web site, builders, designers, remodelers and home buyers can compile information about the practices and products that make a home green. The tool specifies points that are awarded per the criteria of either the Guidelines (Lot Design, Resource Efficiency, Energy Efficiency, Water Efficiency, Indoor Environmental Quality, Home Owner Education and Global Impact) or the Standard (Lot Design, Preparation and Development; Resource Efficiency; Energy Efficiency; Water Efficiency; Indoor Environmental Quality; and Operation, Maintenance and Building Owner Education). The NAHB Research Center Green Certified mark means a project has been inspected at least twice by an independent, third-party verifier to confirm that every green point claimed in the design has been included and is installed correctly. Additional information about the National Green Building Program — including the Green Scoring Tool, verification and green project certification — is available from www.nahbgreen.org or from the National Green Building Hotline at 877-NAHB-GRN (877-624-2476). ‘National Green Building Standard’ Available at BuilderBooks.com “The National Green Building Standard,” available through BuilderBooks.com, provides “green” practices that can be incorporated into multifamily and single-family new home construction, home remodeling and additions and site development. The standard covers lot design, resource, energy and water efficiency; indoor environment quality; and owner education. Currently the first and only ANSI-approved green building rating system, the National Green Building Standard is the benchmark for green homes. To view or purchase this publication online, click here. 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. Attend the National Green Building Conference in Dallas Attend the 2009 National Green Building Conference in Dallas on May 10-13 to learn more about the critical paths to green building, and to participate in interactive sessions and be part of the driving force for the green building and remodeling markets. For more information and to sign up to be notified when registration opens, visit www.nahb.org/GreenBuildingConference. ‘Building Greener Neighborhoods’ Available at BuilderBooks.com “Building Greener Neighborhoods,” available through Digital Delivery at BuilderBooks.com, shows those involved in building new communities the advantages and rewards of saving, planting and transplanting more trees in their developments. The examples are drawn from decades of experience of land developers, home builders and urban foresters. To download this publication in a PDF format, click here, or call 800-223-2665. ‘Profit from Building Green’ 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. Perceived Higher Cost a Barrier for Introducing Green ProductsBuilders who are seeking at least $1 million in funding from venture capitalists to help them bring new green products to the marketplace need to come to the table with a professional business proposal and be prepared to show how their respective products or services stand out from those from their competitors, said panelists at last month’s International Builders’ Show in Las Vegas. “When writing a proposal to venture capitalists, you must be able to specify in great detail the description of your technology, why it’s better than imitators and who are your customers and competition,” said Randy Cantrell, manager of innovation research at the NAHB Research Center. “You should be prepared to show a comprehensive financing plan and present professional-level market research.” Noting that venture capitalists review more than 1,000 products annually while funding only approximately 10% of the submissions, Cantrell said that the best way to impress potential investors is to show how your new technology offers a huge market potential, to demonstrate an understanding of your customers’ needs and that you have already attained initial sales with your new product or technology. Venture capitalists want “to see that your show is up and running but you need money to expand the business,” said Cantrell. He also cautioned that those who are fortunate enough to receive funding from venture capitalists will need to “play by their rules.” Venture capitalists, Cantrell said, can be expected to recruit an executive management and sales team and other industry experts to join a business and seek up to a 50% ownership in the business venture. Their goal is to build sizable, valuable, healthy and profitable companies. The biggest barrier to bringing a new green product to market is the perceived cost, according to Dr. Annie Pearce, assistant professor in the Myers-Lawson School of Construction at Virginia Tech. In a 2006 study conducted by Virginia Tech, more than 60% of the respondents believed that building green would result in higher costs versus conventional building. The actual costs were much more on par, she said. “There is a misconception. Green is not really more expensive,” said Pearce. On the certification front, Tim Smith, associate professor and director of the Center for Sustainable Enterprise Development at the University of Minnesota, said there is a plethora of green building certifications in the marketplace. “Independent certifications may be adding to market confusion by competing with each other in some areas,” he said. The apparent gold standard, according to Smith, is the American National Standards Institute (ANSI), an accreditor of consensus standards, which announced last month its approval of the National Green Building Standard. For information on green home building resources from NAHB, e-mail Kevin Morrow, or call him at 800-368-5242 x8375. ‘National Green Building Standard’ Available at BuilderBooks.com “The National Green Building Standard,” available through BuilderBooks.com, provides “green” practices that can be incorporated into multifamily and single-family new home construction, home remodeling and additions and site development. The standard covers lot design, resource, energy and water efficiency; indoor environment quality; and owner education. Currently the first and only ANSI-approved green building rating system, the National Green Building Standard is the benchmark for green homes. To view or purchase this publication online, click here. 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. Attend the National Green Building Conference in Dallas Attend the 2009 National Green Building Conference in Dallas on May 10-13 to learn more about the critical paths to green building, and to participate in interactive sessions and be part of the driving force for the green building and remodeling markets. For more information and to sign up to be notified when registration opens, visit www.nahb.org/GreenBuildingConference. ‘Building Greener Neighborhoods’ Available at BuilderBooks.com “Building Greener Neighborhoods,” available through Digital Delivery at BuilderBooks.com, shows those involved in building new communities the advantages and rewards of saving, planting and transplanting more trees in their developments. The examples are drawn from decades of experience of land developers, home builders and urban foresters. To download this publication in a PDF format, click here, or call 800-223-2665. ‘Profit from Building Green’ 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. Green Gives Builders the Sales Edge in Tight Florida MarketsSeeking a competitive advantage in today’s tight marketplace, Florida builders who are building high-performance energy-efficient homes that meet the U.S. Department of Energy’s Builders Challenge are reporting higher sales and profits. “The Building America process is not easy and requires a fundamental change in the ways homes are designed and built,” Subrato Chandra, director of the Building America program at the Florida Solar Energy Center, said during a seminar at last month’s International Builders’ Show in Las Vegas. “But those that do are rewarded with higher rates of market penetration, very high levels of customer satisfaction and quicker sales,” he said. “This all translates into more profits.” The Department of Energy has developed a Home Energy Rating System (HERS) to evaluate the overall energy performance of a home, awarding an energy rating score of between one and 100. The lower the score, the higher the energy rating. Typical new homes are built with an energy score of about 100 and the Builders Challenge encourages homes to be 30% more efficient, or have a rating of 70 or lower. Walt Staheli, director of construction for G.W. Robinson Builders, Inc. based in Gainesville, Fla., said that now is the time for builders to start considering building high-performance green homes. “First, I want to dispel the myth that the process is cost-prohibitive. It isn’t,” Staheli said. Staheli added that green does not sell itself and that his firm focused on location, lifestyle, design and pricing when it first delved into construction of energy-efficient homes. “We had to figure out, ‘Is green high performance marketable? How much will it cost customers?’” G.W. Robinson Builders began by implementing green elements that brought the firm the greatest benefit with the least cost and perfected these fundamentals before moving on to other areas. “One of the hardest things you will do is to establish the right working relationship with the energy rater in your area,” said Staheli. “Their job is to give you options. Your job is to decide which options are cost-effective and what you can implement.” G.W. Robinson Builders began to work closely with its trade contractors to outline the changes they needed to build green. “We wrote down what we wanted our subcontractors to do and got their price. We got our vendors and suppliers together to get the products we needed and price it right so that we could sell to our customers. It cost a bit more, but it was manageable,” said Staheli. To date, G.W. Robinson Builders has built 79 homes with an average HERS rating of 60, which is 40% more energy-efficient than comparable homes on the market. “Our job is to make the buying public fully aware of what the HERS rating means and how a lower number saves them in energy costs,” said Staheli. “Does the added cost allow our homes to be marketable in today’s market? Absolutely.” Todd Louis, director of marketing for Tommy Williams Homes headquartered in Gainesville, concurs. “My experience is that having a green home allows you to sell more homes than your competition,” he said. Louis said he is able to compare apples to apples because Tommy Williams Homes shares a subdivision with a competitor who does not offer energy-efficient homes. In the two years before he began offering green homes, Louis reported that his competitor outsold his firm, 46 homes to 26. In the past two years, with Tommy Williams Homes building homes to the Department of Energy’s Building Challenge standards, the company has sold nearly twice as many homes as its competitor — 42 to 22. “And our homes on average sell for $20 more per square foot,” said Louis. To sell consumers on the added benefits and value, Louis said it is important to describe the energy savings aspects as benefits rather than features. For example, to stand out from the crowd, Tommy Williams Homes has run an ad that shows a couple lounging on the beach under the headline, “The money we save on energy costs pays for our baby sitter for a week!” Another ad features a mother holding her baby, saying how glad she is that her baby’s room is comfortably cool in the summer and toasty warm in the winter. The benefit is a narrative scenario, explained Louis. It tells a story by focusing on emotions, which is a powerful motivator. “In today’s market, buyers are taking more time to make decisions,” he said. “That only helps us. The more we can get them to look at the benefits, the better.” For information on NAHB’s green home building resources, e-mail Kevin Morrow, or call him at 800-368-5242 x8375.
‘National Green Building Standard’ Available at BuilderBooks.com “The National Green Building Standard,” available through BuilderBooks.com, provides “green” practices that can be incorporated into multifamily and single-family new home construction, home remodeling and additions and site development. The standard covers lot design, resource, energy and water efficiency; indoor environment quality; and owner education. Currently the first and only ANSI-approved green building rating system, the National Green Building Standard is the benchmark for green homes. To view or purchase this publication online, click here.
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.
Attend the National Green Building Conference in Dallas Attend the 2009 National Green Building Conference in Dallas on May 10-13 to learn more about the critical paths to green building, and to participate in interactive sessions and be part of the driving force for the green building and remodeling markets. For more information and to sign up to be notified when registration opens, visit www.nahb.org/GreenBuildingConference.
‘Building Greener Neighborhoods’ Available at BuilderBooks.com “Building Greener Neighborhoods,” available through Digital Delivery at BuilderBooks.com, shows those involved in building new communities the advantages and rewards of saving, planting and transplanting more trees in their developments. The examples are drawn from decades of experience of land developers, home builders and urban foresters. To download this publication in a PDF format, click here, or call 800-223-2665.
‘Profit from Building Green’ 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. 35 Local Green Home Building Programs Join NAHBGreenThe NAHBGreen network almost tripled in size when the NAHB National Green Building Program at the start of this month welcomed 35 new state and local home builders associations and their green certification and education programs. NAHBGreen continues to gain momentum across the U.S. as home builders incorporate more sustainable features in new homes in response to consumer demand, said NAHB Chairman Joe Robson. “NAHBGreen provides home buyers with the assurance that their new home has been built to a national benchmark for sustainable, environmentally-friendly construction with features that are also designed to save them money throughout the life of their home,” Robson said. “I’m proud to welcome these state and local affiliates to this growing network.” The new affiliates include longstanding green building programs such as Build Green of King and Snohomish Counties in Washington, which has certified more than 13,000 homes since its founding in 1997, and new programs such as the green council formed by the Carbon Builders Association in Northeastern Pennsylvania. In addition to serving as a conduit for home builders or buyers seeking National Green Building Certification, NAHBGreen affiliates also educate their members and provide special green events for consumers, such as expos or parades of homes highlighting green construction. “By providing a nationally recognized third-party inspection and certification program, educational resources and industry recognition, NAHBGreen delivers value to our builders and their buyers,” Robson said. Green building is more dynamic and more responsive to consumers’ needs when it is voluntary, flexible and regionally appropriate, he pointed out. “NAHBGreen is a market-driven program,” Robson said. “Five of the top 10 home features most frequently rated as ‘desirable or essential/must have’ in NAHB’s latest Consumer Preference Survey were energy-related. These included a high level of insulation, equipment-based energy saving measures and Energy-Star-rated windows, among others.” NAHBGreen also includes the Certified Green Professional educational designation, which has been earned by more than 2,000 builders, remodelers and other industry members; education and networking opportunities like the NAHB National Green Building Conference, which will celebrate its 11th anniversary May 8-10 in Dallas; and National Green Building Certification and verifier training from the NAHB Research Center. In addition to the Washington program, among the new affiliates are five long-established residential green building programs, including:
‘National Green Building Standard’ Available at BuilderBooks.com “The National Green Building Standard,” available through BuilderBooks.com, provides “green” practices that can be incorporated into multifamily and single-family new home construction, home remodeling and additions and site development. The standard covers lot design, resource, energy and water efficiency; indoor environment quality; and owner education. Currently the first and only ANSI-approved green building rating system, the National Green Building Standard is the benchmark for green homes. To view or purchase this publication online, click here.
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.
Attend the National Green Building Conference in Dallas Attend the 2009 National Green Building Conference in Dallas on May 10-13 to learn more about the critical paths to green building, and to participate in interactive sessions and be part of the driving force for the green building and remodeling markets. For more information and to sign up to be notified when registration opens, visit www.nahb.org/GreenBuildingConference.
‘Building Greener Neighborhoods’ Available at BuilderBooks.com “Building Greener Neighborhoods,” available through Digital Delivery at BuilderBooks.com, shows those involved in building new communities the advantages and rewards of saving, planting and transplanting more trees in their developments. The examples are drawn from decades of experience of land developers, home builders and urban foresters. To download this publication in a PDF format, click here, or call 800-223-2665.
‘Profit from Building Green’ 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. Conference to Look at Business Advantages of Building GreenRegistration is now open for the 11th annual NAHB National Green Building Conference, set for May 8-10 at the Dallas Hilton Anatole hotel. To help new and experienced green builders and remodelers thrive in today's uncertain economy, this year's conference is focused on the "green" of green — how the home building industry can adjust its business practices, revamp marketing plans and refigure budget planning with a new emphasis on appealing to mainstream buyers. Headlining this year's event is Joel Makower, executive editor of GreenBiz.com and author of “Strategies of the Green Economy” and other books relating to green business and sustainability. Makower will give the keynote presentation on Saturday, May 9. More than 30 other educational sessions that run the gamut from market research results to the latest in green building science are also scheduled, including a detailed presentation on the National Green Building Standard, which was approved by the American National Standards Institute last month. A highlight of the conference is the annual Tour of Green Homes, which this year features single-family homes, remodeling projects and a subdivision scored to the National Green Building Standard. Coordinated by Green Built North Texas, the green building program for the Home Builders Association of Greater Dallas, the tour takes place on Friday, May 8 and will be followed that evening by the NAHB National Green Building Awards dinner and honors. This year's Master of Ceremonies is Fort Worth builder Don Ferrier, who was named the NAHB Green Building Advocate of the Year in 2007. Industry members seeking the Certified Green Professional educational designation can arrive early to take the two-day Green Building for Building Professionals course and may want to stay until Monday, May 12 for the Business Management for Building Professionals course, which is required for individuals who do not already hold an NAHB designation. A limited number of booths for exhibitors are still available; for information, e-mail Chris Hood at NAHB, or call him at 800-368-5242 x8684. Some sponsorship opportunities also remain; contact NAHB Julie Mines at 800-368-5242 x8053 to secure a slot. Last year's conference in New Orleans attracted more than 1,600 participants, making the NAHB National Green Building Conference the largest and most comprehensive event of its kind catering to the residential construction industry. This year's Corporate Sponsors include McGraw-Hill Construction, Stock Building Supply, the Propane Education & Research Council, Wells Fargo Home Mortgage and Whirlpool Corporation. To register for the conference, click here. ‘National Green Building Standard’ Available at BuilderBooks.com “The National Green Building Standard,” available through BuilderBooks.com, provides “green” practices that can be incorporated into multifamily and single-family new home construction, home remodeling and additions and site development. The standard covers lot design, resource, energy and water efficiency; indoor environment quality; and owner education. Currently the first and only ANSI-approved green building rating system, the National Green Building Standard is the benchmark for green homes. To view or purchase this publication online, click here. 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. ‘Building Greener Neighborhoods’ Available at BuilderBooks.com “Building Greener Neighborhoods,” available through Digital Delivery at BuilderBooks.com, shows those involved in building new communities the advantages and rewards of saving, planting and transplanting more trees in their developments. The examples are drawn from decades of experience of land developers, home builders and urban foresters. To download this publication in a PDF format, click here, or call 800-223-2665. ‘Profit from Building Green’ 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. Inaugural BALA Hall of Fame Inducted at Las Vegas GalaTen leaders in residential design were inducted into the inaugural Best in American Living Awards (BALA) Hall of Fame last month during the International Builders’ Show in Las Vegas. The BALA Hall of Fame was created by the NAHB Design Committee and Professional Builder magazine. The inaugural class of the BALA Hall of Fame includes the visionary individuals who participated in the creation of BALA. Inductees also include some of the most innovative and well respected leaders in the industry — builders, architects and interior designers — that have brought intelligence and dignity to their disciplines. Members of the initial group named to the BALA Hall of Fame have received almost 300 BALA awards since the program’s inception, demonstrating the commitment of these individuals and companies to new ideas and quality that will withstand the test of time. The inductees, who will each be profiled in Professional Builder, are:
Support for Project CRAFT Renewed in FloridaFlorida's Department of Juvenile Justice (DJJ) has renewed for another three years its support for the Home Builders Institute’s Project CRAFT (Community, Restitution, Apprenticeship Focused Training). “HBI has made a commitment to this program now going on 11 years,” said HBI 2009 Chairman M.M. "Mike" Weiss. “We feel fortunate to be given this responsibility by the department and will continue to provide top-level trade and life skills training to every student under our care.” The state’s five Project CRAFT sites — in Avon Park, Red Road, Dozier, Orlando and Tampa — will operate under $2.2 million annual grants from the department through 2011. William Paul, an HBI trustee and a builder/developer in Tampa, has worked closely with Florida legislators to make them aware of Project CRAFT’s benefits to the community and the youths participating in the program. As part of that effort, Paul met regularly with state representative Frank Peterman, who visited a Project CRAFT site to see its effectiveness first-hand shortly after he was appointed in 2007 by Florida Gov. Charlie Crist to head DJJ. Peterman helped to establish that agency while a member of the House Juvenile Justice Committee. “Secretary Peterman has proved throughout his political career that he genuinely cares about Florida’s young people, and the program’s renewal serves to further illustrate this dedication,” said Paul. “In today’s economic climate where funding decisions are more difficult than ever, I am pleased that DJJ saw Project CRAFT as a program the state could not afford to do without.” Project CRAFT trains more than 500 youths annually in Florida and over 90% of its graduates are placed in industry jobs, the military or school. As part of their Pre-Apprenticeship Certificate Training (PACT), each year CRAFT students spend approximately 30,000 hours working on community service projects throughout the state. For more information on Project CRAFT, e-mail Dennis Torbett at HBI, or call him at 800-795-7955 x8908. Whirlpool Unveils its Most Energy-Efficient Kitchen EverWhirlpool featured its most energy-efficient kitchen ever at last month’s International Builders’ Show in Las Vegas. According to the U.S. Department of Energy, lighting, refrigeration and cooking are responsible for 41.5% of a home's energy consumption. “The Eco Kitchen provides the most energy-efficient options in food preservation, cleaning and cooking for Whirlpool brand, making it easy for home owners to minimize their energy and water consumption,” said Tracy Frye, senior contract marketing manager at Whirlpool Corporation. Among the energy-efficient features in the showcase kitchen were:
The company markets Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Brastemp, Bauknecht and other major brand names to consumers in nearly every country around the world. For nearly six decades, Whirlpool has contributed significantly to NAHB programs and initiatives. It has exhibited at the International Builders’ Show for 57 years and helped establish the National Council of the Housing Industry (NCHI) — The Leading Suppliers of NAHB 44 years ago. It has also been involved with The New American Home throughout the 26-year history of the program. Headquartered in Benton Harbor, Whirlpool Corporation is a member of NCHI. 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. Webcast Touts Benefits of New ANSI Green Building StandardStudents, faculty, home builders, remodelers and other industry professionals gained an insider's understanding of the new American National Standards Institute (ANSI) green building standard during a webcast by the National Housing Endowment and East Carolina University presented earlier this month. The new ANSI standard — the ICC 700-2008 National Green Building Standard — provides a flexible and robust third-party rating system for residential green project certification. It will be used as part of the NAHB National Green Building Program. The webcast, which aired on Feb. 3, was the latest installment in the endowment’s and university’s “Building Communities Residential Construction Management Seminar Series.” The series provides students pursuing careers in residential construction with cutting-edge information and real-world solutions to real-world construction problems. The Feb. 3 webcast, “Growing Green: A Sustainable Approach to Residential Construction,” examined how to effectively incorporate the new ANSI standard to build and remodel more sustainable communities and homes and how to use the standard. Ed Sutton, of NAHB’s Construction, Codes & Standards, and Michael Luzier, president of the NAHB Research Center, led the discussion. Mark Tipton, 1991 NAHB president, served as the moderator. They discussed key components of the new points system of the ANSI Green Building Standard and how incorporating the standard can give builders and remodelers an edge as consumer demand increases for more energy-efficient and environmentally-friendly homes. The webcast was the third in the series presented by the endowment and East Carolina University. Students, faculty and industry representatives from around the country are encouraged to log in to view the webcast at www.rcmseries.ecu.edu/seminar. All three of the seminars in the series can be viewed at www.rcmseries.ecu.edu. ‘National Green Building Standard’ Available at BuilderBooks.com “The National Green Building Standard,” available through BuilderBooks.com, provides “green” practices that can be incorporated into multifamily and single-family new home construction, home remodeling and additions and site development. The standard covers lot design, resource, energy and water efficiency; indoor environment quality; and owner education. Currently the first and only ANSI-approved green building rating system, the National Green Building Standard is the benchmark for green homes. To view or purchase this publication online, click here. Wanted: HBA Proposals for Challenge/Build/Grow InitiativeThe National Housing Endowment, the philanthropic arm of NAHB, is seeking proposals from state and local home builders associations through its Challenge/Build/Grow (CBG) matching funds initiative. Under the program, HBAs are encouraged to find opportunities to build new partnerships in their communities to assist local programs targeting issues of importance to the industry — including job training, image building and labor shortage, educational and scholarship support. The endowment will award HBAs a total of $25,000 through the grant initiative, with each applicant eligible for a matching challenge grant of up to $5,000. HBA Proposals Must Be Received by April 7 Applications and guidelines can be downloaded from the endowment Web site by clicking here. Completed proposals can be e-mailed to the endowment at nhe@nahb.com. HBAs requesting grants are encouraged to seek advice on their proposals from the endowment staff well in advance of the deadline. Since the program was launched in 2001, more than $175,000 has been awarded to state and local HBAs throughout the country. For more information about grant opportunities, or to download funding guidelines, visit www.nationalhousingendowment.org. NAHB Members Can Save Big on FedEx Shipping ServicesNAHB members can receive valuable discounts of up to 29%* on select FedEx shipping services:
For questions or additional information, call 1-800-MEMBERS (800-636-2377) between 8:00 a.m. and 6:00 p.m. EST Mondays through Fridays to speak to a dedicated member service representative. *FedEx shipping discounts are off standard list rates and cannot be combined with other offers or discounts. Shipping discounts are exclusive of any FedEx surcharges, premiums or special handling fees and are not available to package consolidators. Eligibility for discounts subject to FedEx credit approval. Eligible services subject to change. Base discounts on FedEx Express® are 19-24%. An additional 5% discount is available for eligible FedEx Express shipments when you ship online at fedex.com. Discounts are subject to change. Other Member Advantage Discounts For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to www.nahb.org/MA.
What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn. To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. NAHB Members Can Get 10% Off Stays With Wyndham Hotel Group
NAHB members can get 10% off the “best available unrestricted rate"* at all participating Wyndham Hotel Group (WHG) hotels — Wyndham Hotels and Resorts, Wingate by Wyndham, Super 8, Days Inn, Ramada Worldwide, Travelodge, Howard Johnson, Baymont Inn & Suites, Knights Inn and AmeriHost Inn. The Wyndham Hotel Group represents nearly 6,500 hotels and more than 535,000 hotel rooms on six continents. Through the NAHB Member Advantage program, NAHB members can get a 10% discount off the hotel chain’s best rate, its brand Internet rate. To Register To use the program by phone, call 877-670-7088 and give the agent the NAHB discount ID number 20090. The NAHB discount will be applied at the time the reservation is made. To book rooms online, visit the Wyndham Hotel Group page of the Member Advantage discount pages on the NAHB Web site by clicking here and follow the simple steps to make your reservation. The Web pages also enable you to review key hotel amenities, hotel descriptions and directions. *“Best Available Rate” is defined as the best, non-qualified, publicly available rate on the Internet for the hotel, date and accommodations requested. The discount for International properties may be less than or equal to 10% off Best Available Rate. Certain restrictions apply. To redeem this offer, click our URL link on Organization’s website or call the hotel brand phone number above and give ID at the time of reservation. Offer not valid if hotel is called directly, caller must use toll free numbers listed provided. Advanced reservations are required. Offer is subject to availability at participating locations and some blackout dates may apply. Offer cannot be combined with any other discounts, offers, or special promotions. Discounts vary by location and time of year. Offer is void where prohibited by law and has no cash value 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. Drive Away With a Shiny New $500 GM OfferNAHB members can receive $500 towards the purchase or lease of most new GM passenger cars, light-duty trucks, vans and SUVs — whether for business or personal use.
For complete details, visit www.gmfleet.com/nahb. The program runs through Jan. 4, 2010. For more information, e-mail Tiffany Lindsley at NAHB, or call her at 800-368-5242 x8273. 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. |