Nation's Building News Online: February 23, 2009

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Obama Foreclosure Plan to Help Resolve Housing Crisis

President Obama last week unveiled details of a $75 billion foreclosure prevention plan designed to help seven to nine million “responsible” home owners remain in their homes with affordable mortgage payments. The official rollout date for the program is March 4.

“We applaud the Obama Administration for unveiling its plan to stem the rising tide of foreclosures that is flooding the market with excess inventory and undermining overall home values,” said NAHB Chairman Joe Robson. “This is an important first step to address the acute supply problems confronting the housing market.”

The plan has three main components:

• A refinancing program for borrowers of mortgages held or guaranteed by Fannie Mae and Freddie Mac who are current on their mortgage payments but who have been unable to refinance because the value of their home has declined
  
  
• A mortgage modification program for borrowers in default, or at imminent risk of default, that builds on the model established by the Federal Deposit Insurance Corporation by expanding eligibility and establishing incentives for borrowers, mortgage holders and servicers
  
  
• Actions to bolster the financial stability and mortgage support capacity of Fannie Mae and Freddie Mac

Of particular interest to NAHB are provisions that relate to mortgage loan modifications for primary residences.

“We hope this will focus only on those mortgages responsible for the surge in defaults,” said Robson, adding that NAHB looks forward to working with the Administration and Congress to ensure that any legislative change is done in a careful manner that will have a positive impact on the marketplace.

The Administration believes its plan will enable Fannie Mae and Freddie Mac to refinance four million to five million home owners. Currently, these institutions have rules that make it difficult to refinance mortgages valued at more than 80% of the home’s worth.

For example, on a home valued at $300,000 with a mortgage of $270,000, a home owner might have trouble refinancing through Fannie Mae and Freddie Mac. The Administration will remove limitations on Fannie and Freddie so that they can refinance mortgages they already own or guarantee.

The plan would create new incentives for lenders to work with borrowers to modify the terms of loans at risk of default or foreclosure. This would require both borrowers and lenders to do their part. Lenders would be required to reduce payments to no more than 38% of a borrower’s income. The government would provide a subsidy to help further cut the borrower’s mortgage debt-to-income ratio to 31%. 

To encourage lender participation in the program, the plan provides them with additional financial incentives to modify loans prior to default.

The program also encourages borrowers to stay current on their payments. Those who participate will be required to make payments on time in return for this opportunity to reduce their monthly mortgage payments and stay in their homes. Home owners who remain current on their mortgage payments following loan modification will be eligible for an incentive of up to $1,000 a year from the government for five years. The bonus will be applied to the borrower’s mortgage to lower the principal balance. 

The mortgage modification program will also be available to home owners who are “underwater” and owe more on their mortgage than their home is worth.  

The plan seeks to shore up Fannie Mae and Freddie Mac to help keep mortgage rates low for millions of middle-class families looking to buy a new home or to refinance an existing one.

The Treasury Department will provide additional financial support for Fannie and Freddie and allow them to increase their portfolios, which is designed to help the broader mortgage finance market.

The Treasury and the Federal Reserve will also continue purchasing Fannie Mae and Freddie Mac mortgage-backed securities to lower mortgage rates and to maintain stability and liquidity in the marketplace. 

The foreclosure prevention package also calls on Fannie and Freddie to provide support to state housing finance agencies. These agencies are currently frozen out of the credit markets and are unable to provide much-needed support to first-time home buyers.

With Fannie and Freddie helping the state housing finance agencies to increase their liquidity, this will provide a ripple effect to strengthen the mortgage markets, said Robson. 

While the Administration’s plan is aimed at helping to ease excess capacity in the market due in large part to an unprecedented wave of foreclosures, Robson said that Congress still needs to take additional measures to stimulate housing demand to get the economy moving forward again.

“Until we move to resolve the housing crisis, we will not be able to pull the nation out of recession,” he said.

For more information, e-mail David Ledford at NAHB, or call him at 800-368-5242 x8265.

California Tax Credit Expected to Spur New Home Construction

In a move that will provide families in California with a significant incentive to return to the housing market, the state assembly last week passed SB 15XX by Sen. Roy Ashburn (R-Bakersfield), which established a tax credit of the lessor  of $10,000 or 5% of the purchase price of a newly built single-family (attached or detached) home sold on or after March 1 of this year and before March 1, 2010, up to $100 million in total state income tax credits.

In addition, first-time home buyers in California will be able to take advantage of both the $10,000 credit and the $8,000 tax credit provided in the federal stimulus package enacted earlier this month, for a combined $18,000 in reduced federal and state income tax.

The $8,000 federal tax credit is only available to first-time buyers, and to qualify they must close on a home, new or existing, between the start of this year and before Dec. 1.

Builders in California said that the $10,000 tax credit for purchasers of new homes will help rally their depressed industry, creating jobs and much-needed tax revenue for state and local governments.

“The tax credit will help push prospective buyers off the fence and will help jump-start the home building industry, which last year built the fewest homes and apartments since we began keeping records in the early 1950s,” said Robert Rivinius, president and CEO of the California Building Industry Association. “That will put people back to work, begin rebuilding the state’s economy and provide much-needed revenues to the state and to local governments."

Among the provisions of the state credit:

• The credit will be provided in equal amounts, up to $3,333 per year, over three successive tax years, beginning with the year in which the purchase is made.
  
  
• The credit is only for the purchase of a newly built single-family (attached or detached) home that has never been occupied.
  
  
• Taxpayers must repay the credit if they do not live in the home as their principal residence for at least two years.

A total of $100 million — the equivalent of 10,000 home purchases for $10,000 credits — has been allocated for the credit. Builders in the state are expecting the full amount to be exhausted this year and are advising prospective buyers to act quickly. Credit reservations will be allowed on a first-come, first-served basis.

A study coauthored by a former state finance director shows that, on average, a home built in California generates $16,000 in state revenues and another $3,000 in revenues to local governments. Under that assumption, the state stands to receive a net $6,000 in additional revenues for each $10,000 credit that is provided.

California has lost more than 300,000 home building-related jobs during the past two and a half years, which has been a major factor behind the current economic recession and the state’s rapidly rising unemployment rate.

“Economists agree that housing leads the nation out of recessions, and with this stimulus we believe the depressed California home building industry will begin to recover and help the state’s economy to rebound,” Rivinius said.

Tax Credit Web Site Looks at Opportunity of a Lifetime

Builders and other industry professionals can help spur home sales by referring prospective first-time home buyers to www.federalhousingtaxcredit.com. The NAHB Web site provides detailed information on the $8,000 federal tax credit for first-time home buyers included in the economic stimulus legislation signed into law by President Obama.

Consumers can use the Web site to find information on the tax credit — including a detailed question and answer section. It also includes information about other housing-related and small business measures in the legislation and a number of home-buying resources for consumers.

“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.”

Industry professionals are encouraged to highlight the tax credit Web site when marketing to their potential first-time home buyer market.

New Tax Credits Provoke Curiosity

People in the real estate, energy efficiency and home improvement businesses say approval of an $8,000 tax credit for first-time home buyers and a $1,500 credit for making existing homes more energy-efficient is certainly welcome in a tough economy. Still, plenty of questions remain. “People are wondering how it works, or if it’s retroactive, but at least people are curious,” said Lynn Raymond, who has worked in Springfield, Ill. real estate since 1984 and has seen difficult markets come and go. “This one is tough, though I don’t know if it’s as tough as it was in the 1980s,” said Raymond, referring to double-digit interest rates early in that decade. Reaction has been similar to the $1,500 tax credit for energy efficiency improvements. “We’re starting to hear about it (from customers), but we’re still looking at it from the standpoint of what exactly is in it,” said Bill Mills, manager of energy efficiency programs for City Water, Light & Power in Springfield. Mills said he believes the federal incentives will only add to the already strong demand for energy efficiency programs. CWLP has rebate programs intended to encourage customer use of energy-efficient heat pumps, water heaters and refrigerators, as well as energy audit assistance and other assistance. “People are hurting. I think everybody is waiting to see if the stimulus is big enough. It’s pretty complicated on how it gets down to the household level,” said Mike Johnson, executive director of the Illinois Solar Association. (www.sj-r.com)
Springfield State Journal-Register (2/23/09); Tim Landis

Banks Foreclose on Builders With Perfect Records

Dave Brown, one of the best-known home builders in Tempe, Ariz., had kept his head above water through the housing downturn, not missing a single interest payment on his loans. So he was confounded a few months back when one of his banks, spooked by the decline in his company’s revenue, suddenly demanded millions of dollars in additional collateral to continue carrying loans on his projects. He was unable to come up with the money, and in October, JPMorgan Chase foreclosed on his developments. Shortly thereafter, Brown Family Communities, 33 years in the business, decided to shut its doors. “They treated me like a deadbeat who missed his car payment,” said Brown. “They wanted their money now.” As defaults and delinquencies rise, home builders, once prized banking customers, have become pariahs. Even builders up to date on their interest payments or still managing to sell houses are getting trampled. “They’re not distinguishing the track records of one borrower against another,” said John Fioramonti, a real-estate consultant in Scottsdale, Ariz. “If you’re a builder, you’re a bad risk.” With the pullback accelerating, complaints among builders of hardball tactics and shoddy treatment by banks are mounting, as is a general sense of betrayal. “The behavior of the banks is unprecedented,” said Mick Pattinson, a home builder from Carlsbad, Calif. who has organized a national coalition of builders to draw attention to what they regard as unreasonable treatment. “Yes, there was overleveraging in the industry. But the aftermath doesn’t need to have been as brutal as it has been.” (www.seattletimes.com)
Seattle Times (2/14/09); John Collins Rudolf, New York Times

Money to Fix Housing Is Coming

A wave of early stimulus money will soon be cleaning up and re-marketing abandoned and foreclosed homes in Albuquerque and elsewhere in New Mexico. About $19.6 million in federal money is available to buy up, rehabilitate and sell the homes to qualifying families. The money was allocated under a housing stimulus plan passed by Congress last summer. The city says it expects it can rehabilitate 42 homes and 20 rentals with the $7 million it expects to receive as its share of the funds. “A place that has previously been the site of crime can now elevate and improve the community,” said Mayor Martin Chavez. New Mexico Home Builders Association Executive Vice President Jim Folkman said that the rehabilitation program and new stimulus spending will be helpful. “Things are starting to move in the construction industry,” Folkman said. (www.abqjournal.com)
Albuquerque Journal (2/1/4/09); Sean Olson

Housing in Alaska Stable Amid National Woes

Alaska’s real estate markets are stable, although they are cooling from the go-go years from 2004 to 2007, according to the head of the Alaska Housing Finance Corp. “We’re not seeing anything that concerns us,” Dan Fauske, CEO of the housing corporation, told the House Special Committee on Economic Development, Trade and Tourism in Juneau on Feb. 17. “New housing construction is slow but contractors and subcontractors are busy with remodeling,” Fauske said. The state is pumping several hundred million dollars into the economy for weatherization and home conservation measures, and that is also helping, he said. Alaska isn’t alone among states that are in better shape, Fauske said. There are many areas in the South and Midwest where conditions are better. The problems are concentrated in a few places, such as the Southwest, he said. Luckily, only a few Alaska banks dabbled in subprime home mortgages and AHFC has none in its portfolio. “We were under a great deal of pressure to get involved in the subprime market and people actually got angry with us,” he said. “Now they look at us and wonder how we saw something they didn’t see.” Despite Alaska’s strengths, the problems of the national economy are having their effects. Banks in Alaska have money to lend but they are tightening credit for home buyers and home builders. New lending guidelines discourage speculative building or building on land a developer doesn’t own.  (www.juneauempire.com)
Alaska Journal of Commerce (2/23/09); Tim Bradner

Despite Housing Woes, Annual Valley Home Builders Association Tour Draws a Crowd

The health of the national economy may be in question but neither money worries nor crummy weather Saturday kept people away from the Valley Home Builders Association’s 2009 Winter Wonderland of Homes. Jenni and Tim Olson, of Darboy, Wis., and their children were among hundreds who braved snow and slippery roads to flock to opening day of the tours of 52 homes. The Olsons have purchased land and plan to build in two years, they said, and are content to wait out the current crisis. “We’re hoping the market rebounds by the time we are ready,” Jenni Olson said. Christine Shaefer, VHBA executive vice president, is not surprised at the strong interest. Turnout is expected to reach 7,000 by the tour’s end March 1. “The Fox Valley has really not seen the intense housing crisis experienced by other parts of the country,” Shaefer said. “We’re not as overbuilt as other parts of the country, and home buying and building makes very good sense with interest rates as low as they are right now.” She said she is hopeful the tax credit for first-time home buyers will attract more people into the housing market, and allow more existing home owners to sell and “move up to their next homes.” While some local builders have gone under because they were “leveraged too far and speculated too much,” said Brad Uecker, his family-owned firm, RUCON Construction, has been more conservative. “Most of our business has been word of mouth, and we believe that helps.” The last two years have been “two of RUCON’s best years ever,” he said. “This year won’t be our best, with the economy the way it is, but people are still buying.” (www.postcrescent.com)
Appleton Fox Cities Post-Crescent (2/22/09); Kathy Walsh Nufer

Sensors Help Keep the Elderly Safe, and at Home

Increasingly, many older people who live alone are not truly alone. They are being watched by a flurry of new technologies designed to enable them to live independently and avoid expensive trips to the emergency room or nursing homes. Bertha Branch, 78, discovered the power of a system called eNeighbor when she fell to the floor of her Philadelphia apartment late one night without her emergency alert pendant and could not phone for help. A wireless sensor under her bed detected that she had gotten up. Motion detectors in her bedroom and bathroom registered that she had not left the area in her usual pattern and relayed that information to a central monitoring system, prompting a call to her telephone to ask if she was alright. When she did not answer, that incited more calls — to a neighbor, to the building manger and finally to 911, which dispatched firefighters to break through her door. She had been on the floor less than an hour when they arrived. Technologies like eNeighhbor come with great promise of improved care at lower cost and the backing of large companies like Intel and General Electric. But the devices, which can be expensive, remain largely unproven and are not usually covered by the government or private insurance plans. (www.nytimes.com)
New York Times (2/13/09); John Leland

January Finds Housing Starts in Free Fall

In free fall, U.S. housing starts and permits hurtled downward in January,  the U.S. Commerce Department reported, to seasonally adjusted annual rates of 466,000 units and 521,000 units, respectively. Both represented new record lows in a downturn that has gone unbroken for seven straight months.

"Builders are continuing to exercise extreme caution in response to market conditions, particularly weak consumer demand and the large inventory of homes for sale that is being fueled by a constant flow of foreclosures," said NAHB Chairman Joe Robson.

"We are certainly optimistic that the newly signed economic stimulus package — and particularly the enhanced first-time home buyer tax credit — will help spark more consumer demand for homes going forward,” Robson said. “However, until that happens, builders have little choice but to put a hold on new construction."

"January's housing report was even weaker than most analysts expected," noted NAHB Chief Economist David Crowe. "Clearly, builders are waiting for consumers to return to the marketplace before putting their crews back to work, which is the prudent, though painful, thing to do at this time.”

Meanwhile, he said, “many qualified buyers are waiting for their employment outlook to become more secure before coming off the sidelines. Rising foreclosures and forced home sales continue to drive down house prices and provide further consumer hesitancy. Hopefully, the Administration's plan to address the foreclosure crisis will help keep many struggling owners from losing their homes.”

Single-family housing starts fell 12.2% in January to a record-low seasonally adjusted annual rate of 347,000 units, while multifamily starts plunged nearly 28% to a rate of 119,000 units — also a record low.

Regionally, starts plummeted nearly 43% in the Northeast and 29.3% in the Midwest. They were down 12.8% in the South and 6.4% in the West.

January permit issuance, which can be an indicator of future building activity, declined 8% to a seasonally adjusted annual rate of 335,000 units on the single-family side and 1.6% to a rate of 186,000 units on the multifamily side.

Regionally, permits were down 3.3% in the Northeast, 2.4% in the Midwest, 6.9% in the South and 1.8% in the West.

Tax Credit Web Site Looks at Opportunity of a Lifetime

Builders and other industry professionals can help spur home sales by referring prospective first-time home buyers to www.federalhousingtaxcredit.com. The NAHB Web site provides detailed information on the $8,000 federal tax credit for first-time home buyers included in the economic stimulus legislation signed into law by President Obama.

Consumers can use the Web site to find information on the tax credit – including a detailed question and answer section. It also includes information about other housing-related and small business measures in the legislation and a number of home-buying resources for consumers.

“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.”

Industry professionals are encouraged to highlight the tax credit Web site when marketing to their potential first-time home buyer market.

Plan to Attend Construction Forecast Conference

Plan to attend or watch the 2009 Spring NAHB Construction Forecast Conference & Webcast on Thursday, April 23 in Washington, D.C. to get the latest facts, insights and analysis of the housing industry.

Panels of nationally recognized experts at the day-long conference will discuss economic trends, government policies, developments in the housing industry and the results from NAHB's recent surveys.

For more information and to register, visit www.nahb.org/cfc.

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.

Housing Affordability Surges in Fourth Quarter of 2008

Housing affordability surged nationally at the end of 2008 to its highest level in at least five years, according to the NAHB/Wells Fargo Housing Opportunity Index (HOI) released on Feb 19.

The HOI indicated that 62.4% of all new and existing homes sold in the final quarter of 2008 were affordable to families earning the national median income of $61,500, up considerably from 56.1% in the previous quarter and 46.6% in the same quarter a year earlier.

“Falling home prices and very favorable mortgage rates both contributed to the housing affordability gains we saw in the fourth quarter of 2008,” said NAHB Chairman Joe Robson.

However, Robson said, “at the same time, worsening economic conditions, historically low consumer confidence and uncertainty about future home prices kept many qualified buyers on the sidelines. Looking forward, we hope that the newly improved first-time home buyer tax credit, included in recently enacted economic stimulus legislation, will help spur buyer demand, and that government efforts to reduce foreclosures will put a floor under declining home values.”

The most affordable major housing market in the country during the fourth quarter was Indianapolis, Ind., which has now appeared at the top of the affordability list for 14 consecutive quarters. Just over 93% of all homes sold in that city during the fourth quarter of 2008 were affordable to households earning the area’s median family income of $65,100.

Also among the most affordable major metro housing markets were: Warren-Troy-Farmington Hills, Mich.; Youngstown-Warren-Boardman, Ohio-Pa.; Detroit-Livonia-Dearborn, Mich.; and Grand Rapids-Wyoming, Mich.

Several smaller housing markets were even more affordable than Indianapolis. Leading the pack, in Lansing-East Lansing, Mich., a full 95% of homes sold at the end of 2008 were affordable to middle-income earners. Other small housing markets ahead of Indianapolis on the affordability scale included Sandusky, Lima and Springfield, all in Ohio, as well as Bay City, Mich.

For the third consecutive quarter, the nation’s least affordable major housing market in the final three months of 2008 was New York-White Plains-Wayne, N.Y.-N.J., where just under 14% of all homes sold during the period were affordable to those earning the area median income of $63,000. Other major metros near the bottom of the chart included: San Francisco; Nassau-Suffolk, N.Y.; Los Angeles-Long Beach-Glendale, Calif.; and Miami.

Among smaller metro areas, San Luis Obispo-Paso Robles, Calif. was the least affordable market, along with Ocean City, N.J.; Santa Cruz-Watsonville, Calif.; Napa, Calif.; and Flagstaff, Ariz., respectively.

Visit www.nahb.org/hoi for tables, historic data and details.

Tax Credit Web Site Looks at Opportunity of a Lifetime

Builders and other industry professionals can help spur home sales by referring prospective first-time home buyers to www.federalhousingtaxcredit.com. The NAHB Web site provides detailed information on the $8,000 federal tax credit for first-time home buyers included in the economic stimulus legislation signed into law by President Obama.

Consumers can use the Web site to find information on the tax credit – including a detailed question and answer section. It also includes information about other housing-related and small business measures in the legislation and a number of home-buying resources for consumers.

“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.”

Industry professionals are encouraged to highlight the tax credit Web site when marketing to their potential first-time home buyer market.

Plan to Attend Construction Forecast Conference

Plan to attend or watch the 2009 Spring NAHB Construction Forecast Conference & Webcast on Thursday, April 23 in Washington, D.C. to get the latest facts, insights and analysis of the housing industry.

Panels of nationally recognized experts at the day-long conference will discuss economic trends, government policies, developments in the housing industry and the results from NAHB's recent surveys.

For more information and to register, visit www.nahb.org/cfc.

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.

Mortgage Rates Decline as Economic News Worsens

With the nation’s economy continuing to head down, mortgage interest rates last week declined across the board in Freddie Mac's Primary Mortgage Market Survey.

The 30-year fixed-rate mortgages averaged 5.04% for the week ending on Thursday, Feb. 19, Freddie Mac reported, down from 5.16% for the previous week and 6.04% one year earlier.

“Mortgage rates followed bond yields lower this week as recent economic reports suggest the economy is still slowing, which reduces the future threat of inflation,” said Frank Nothaft, Freddie Mac’s chief economist.

“And consumer sentiment fell in February for the first time in three months to near its lowest level since May 1980,” he said, “while industrial production slowed in January by more than the market consensus. In addition, the Federal Reserve lowered its growth forecasts for this year during its policy-setting meeting on Jan. 27-28, noting a deeper contraction in the economy as the credit crunch tightens.”

In a Feb. 18 address at the National Press Club, Fed Chairman Ben Bernanke said that “the recent economic statistics have been dismal.”

Beyond those statistics, Bernanke said, “we must never forget, are millions of people struggling with lost jobs, lost homes and lost confidence in their economic future. In examples that resonate with me personally, the unemployment rate in the small town in South Carolina where I grew up has risen to 14%, and I learned the other day that what had once been my family home was recently put through foreclosure.”

Nothaft noted that conditions in the housing industry have continued to deteriorate along with those in the general economy.

“Meanwhile, the housing market is not doing any better,” Nothaft said. “New housing construction slowed to an all-time record low of 466,000 homes (annualized) in January since records began in January 1959. And although home builder confidence ticked up in February from a record low, builder expectations of sales over the next six months hit a record low since it was published in January 1985.”

The 15-year fixed-rate mortgage averaged 4.68% last week, down from an average of 4.81% in the previous week and 5.64% a year earlier.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.04% last week, down from 5.23% the week before and 5.37% a year earlier.

One-year Treasury-indexed ARMs averaged 4.80%, down from 4.94% in the prior week and 4.98% a year earlier.

Tax Credit Web Site Looks at Opportunity of a Lifetime

Builders and other industry professionals can help spur home sales by referring prospective first-time home buyers to www.federalhousingtaxcredit.com. The NAHB Web site provides detailed information on the $8,000 federal tax credit for first-time home buyers included in the economic stimulus legislation signed into law by President Obama.

Consumers can use the Web site to find information on the tax credit – including a detailed question and answer section. It also includes information about other housing-related and small business measures in the legislation and a number of home-buying resources for consumers.

“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.”

Industry professionals are encouraged to highlight the tax credit Web site when marketing to their potential first-time home buyer market.

Plan to Attend Construction Forecast Conference

Plan to attend or watch the 2009 Spring NAHB Construction Forecast Conference & Webcast on Thursday, April 23 in Washington, D.C. to get the latest facts, insights and analysis of the housing industry.

Panels of nationally recognized experts at the day-long conference will discuss economic trends, government policies, developments in the housing industry and the results from NAHB's recent surveys.

For more information and to register, visit www.nahb.org/cfc.

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 Trends

The 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.

• U.S. Census Bureau Construction Price Indexes
  
  
• NAHB's Housing Forecast
  Housing starts, sales and interest rate projections through 2009.
  
  
• Latest Home Mortgage Interest Rates
  Contains current and historical data on fixed and adjustable mortgage rates. Updated weekly.
  
  
• Characteristics of New Housing
  Highlights the latest data on new-home characteristics released by the U.S. Census Department. Includes links to the complete Census report and other trends researched by NAHB.
  
  Additional breakouts of this data and other trends researched by NAHB are available at www.nahb.org/constructionstats under “Selected Characteristics of New Housing” (dated 4/3/2008).
  
  
• Housing Starts
  Updated monthly and based on a seasonally adjusted annual rate.
  
  
• New and Existing Home Sales
  Updated monthly and based on a seasonally adjusted annual rate.
  
  
• New and Existing Single-Family Median Home Prices
  Updated monthly.
  
  
• Home Price Index
  The index measures average home appreciation in more than 250 metropolitan markets. Updated quarterly.
  
  
• Metro Home Building Permits
  Local and state data on housing construction rates. Updated monthly.
  
  
• Employment Trends for Metro/State Markets
  Provides metro and state employment data nationwide. Updated monthly.
  
  
• Local Economic Impact of Housing
  Shows how building 100 homes benefits a typical metropolitan area.
  
  
• Home Building’s Direct Impact on the Economy
  
  
• Housing’s Contribution to Gross State Product
  Measures how much housing contributes to the economic output of each state.
  
  
• Housing Market Statistics from HousingEconomics.com
  Full array of statistical categories available to NAHB members, a limited number available to non-members.
  
  
• In-Depth Analysis from HousingEconomics.com
  Full array of analysis of factors affecting housing and the impact on the industry available to NAHB members, a limited number available to non-members.

Tax Credit Web Site Looks at Opportunity of a Lifetime

Builders and other industry professionals can help spur home sales by referring prospective first-time home buyers to www.federalhousingtaxcredit.com. The NAHB Web site provides detailed information on the $8,000 federal tax credit for first-time home buyers included in the economic stimulus legislation signed into law by President Obama.

Consumers can use the Web site to find information on the tax credit – including a detailed question and answer section. It also includes information about other housing-related and small business measures in the legislation and a number of home-buying resources for consumers.

“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.”

Industry professionals are encouraged to highlight the tax credit Web site when marketing to their potential first-time home buyer market.

Plan to Attend Construction Forecast Conference

Plan to attend or watch the 2009 Spring NAHB Construction Forecast Conference & Webcast on Thursday, April 23 in Washington, D.C. to get the latest facts, insights and analysis of the housing industry.

Panels of nationally recognized experts at the day-long conference will discuss economic trends, government policies, developments in the housing industry and the results from NAHB's recent surveys.

For more information and to register, visit www.nahb.org/cfc.

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.

Free NAHB Conference to Offer Business Survival Strategies

NAHB and Hanley Wood are offering a free, half-day conference that will provide housing professionals with tips and survival strategies to navigate through the housing downturn and keep their businesses afloat.

“Weathering the Storm: Survival Strategies in a Down Market” will be held from 1:00-5:00 p.m. on April 22 at the National Housing Center in Washington, D.C.

For builders, remodelers, developers, contractors, sales consultants and other industry professionals, the conference will feature advice from fellow industry professionals on such topics as: generating sales; restructuring your company; operational excellence; ways to work with your bank; and legal issues confronting builders and others within the industry.

Conference Schedule

• Projects That Are Generating Sales
  1:00-2:00 p.m.
  
  Presenters will discuss the projects that are outselling the competition and why.
  
  
• Restructure Your Company to Survive
  2:00 -2:30 p.m.
  
  Survival advice will include how to generate cash from operations, close down subdivisions, optimize staff and find new sources of equity.
  
  
• After the Fall: The Rebirth of Operations
  2:30-3:00 p.m.
  
  The presentation will focus on the need for and how to achieve it.
  
  
• Ways to Work With Your Banks
  3:00-4:00 p.m.
  
  Presenters will discuss how to unfreeze credit, renegotiate terms and restructure, as well as credit rights and workouts.
  
  
• Legal Issues Forum
  4:00-5:00 p.m.
  
  This session will examine solutions to issues confronting builders and others in the residential construction industry as a result of the current economic and housing downturn.

The conference is free, but attendees must register in advance.

To Register

For more information or to register, visit www.nahb.org/survival, e-mail Christabelle Smith at NAHB, or call her at 800-568-5242 x8416.

Tax Credit Web Site Looks at Opportunity of a Lifetime

Builders and other industry professionals can help spur home sales by referring prospective first-time home buyers to www.federalhousingtaxcredit.com. The NAHB Web site provides detailed information on the $8,000 federal tax credit for first-time home buyers included in the economic stimulus legislation signed into law by President Obama.

Consumers can use the Web site to find information on the tax credit – including a detailed question and answer section. It also includes information about other housing-related and small business measures in the legislation and a number of home-buying resources for consumers.

“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.”

Industry professionals are encouraged to highlight the tax credit Web site when marketing to their potential first-time home buyer market.

Plan to Attend Construction Forecast Conference

Plan to attend or watch the 2009 Spring NAHB Construction Forecast Conference & Webcast on Thursday, April 23 in Washington, D.C. to get the latest facts, insights and analysis of the housing industry.

Panels of nationally recognized experts at the day-long conference will discuss economic trends, government policies, developments in the housing industry and the results from NAHB's recent surveys.

For more information and to register, visit www.nahb.org/cfc.

NAHB Members Can Get Free Business Survival Tips Online

Now 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

• Bankruptcy, reorganizations, out-of-court workouts, restructuring, foreclosures, deficiency judgments

Business Structures

• Director/officer issues, partnership issues, personal guarantees, business divorces

Operational

• Liens, developer disputes, subcontractor disputes

Available to NAHB members only, the information will be available at www.nahb.org/legalconsultation.

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.

Tax Credit Web Site Looks at Opportunity of a Lifetime

Builders and other industry professionals can help spur home sales by referring prospective first-time home buyers to www.federalhousingtaxcredit.com. The NAHB Web site provides detailed information on the $8,000 federal tax credit for first-time home buyers included in the economic stimulus legislation signed into law by President Obama.

Consumers can use the Web site to find information on the tax credit – including a detailed question and answer section. It also includes information about other housing-related and small business measures in the legislation and a number of home-buying resources for consumers.

“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.”

Industry professionals are encouraged to highlight the tax credit Web site when marketing to their potential first-time home buyer market.

Legislative Conference Comes at Crucial Time for Economy

Builders looking to send a message to Congress that housing deserves 100% of their ongoing attention to lead the nation’s troubled economy back to higher ground should mark their calendar now for the most important grassroots event of the year — the 2009 NAHB Legislative Conference — which will take place on Tuesday, March 24  in Washington, D.C.

The timing of this year’s Legislative Conference — which, for the first time will take place independently from the NAHB spring board meeting — is particularly significant considering the growing downward momentum in housing and the nation’s job market.

With policymakers in Washington confronting the most difficult financial crisis since the 1930s, attending this year’s conference could be one of the most important decisions that builders make this year.

Builders are encouraged to travel to the nation’s capital and to urge their representatives and senators to support policies that will stabilize home values, mitigate foreclosures, bolster consumer confidence and get the economy moving forward.

The annual NAHB conference provides an ideal opportunity for association members to share their concerns on housing-related issues with lawmakers on Capitol Hill.

Especially in these challenging times, participation by NAHB members can make a huge difference as various interest groups compete to push their agendas in Washington.

A strong builder turnout on March 24 will send a powerful message to members of Congress that housing must remain a top national priority.

For more information and to register for NAHB’s 2009 Legislative Conference, click here; or e-mail Molly Murray at NAHB or call her at 800-368-5242 x8282.

Builders’ Tip: How to Secure a Log for Log Work

	Click for larger image.

Anyone who has ever done log work knows the problems that come with peeling and cleaning logs.

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:

• On each sawhorse, I affix a pair of beveled blocks.
  
  
• The blocks are 5-1/2 inches long and are made from a 6x6 ripped down the middle at a 45° angle.
  
  
• The pointy end of a 3-inch screw protrudes about 1/2 inch from the face of each block.
  
  
• The screw points are just enough to grab a log and hold it where you want it until you’re ready to spin the log into its next position.

— Jon Sherman, Steamboat, Colo.

Tips & Techniques provided by Fine Homebuilding.
©2008 The Taunton Press

To contact Fine Homebuilding, e-mail Christina Glennon.

Set Yourself Apart With CGB Designation

Join the ranks of the nation’s top building industry professionals with the Certified Graduate Builder (CGB) designation. The “Builder Assessment Review” (BAR) is your first step towards obtaining the CGB.

This comprehensive assessment measures your expertise in the four key areas of the building industry: building technology, business and finance, project management and sales and marketing.

Your results will show the areas where your knowledge is strongest and weakest and will help determine the courses required for you to obtain your CGB.

To learn where the next BAR will be held, visit NAHB’s education listings, or call the Professional Designation Help Line at 800-368-5242 x8154.

BuilderBooks.com Offers More Than 250 Books That Help You Build Your Business

BuilderBooks.com is your source for training and education products for the building industry. The official bookstore for NAHB, BuilderBooks.com offers award-winning publications, software, brochures and more available in both English and Spanish.

To view these publications online, click here, or call 800-223-2665.

Free NAHB Kit Gives Builders Back-to-Basics Tips to Navigate the Slowdown

What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn.

To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here.

To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar.

For assistance, call the NAHB Member Service Center at 800-368-5242.

Buyers With a Home to Sell Should Be Handled With Care

In today’s down market, builders need to adopt strategies to sell homes to prospective trade-up buyers who are reluctant to move forward with a purchase because they are having trouble selling their existing home, according to panelists at last month’s International Builders’ Show in Las Vegas.

When a person wanders into a sales office and says they would like to buy a new home but have to sell the one they’re in now first, the initial reaction of the sales person “makes all the difference,” said Kerry Mulcrone, president of Mulcrone and Associates in Hudson, Wis.

The sales person’s response should be, “‘No problem, we’re glad you have a house to sell,’” said Mulcrone. “‘We both have a home to sell and we’re going to figure this out together.’ This pulls them off the street and away from the competition.”

Mulcrone said that sales personnel should use role playing to practice and rehearse a “script” that enables them to establish from the start that they are willing to work with the buyer as an advocate. Buyers who are concerned that their home has lost value need to be reassured that they will be able to make up for the loss by buying a new home for less than it would have cost during the housing boom.

Instead of providing a monetary discount, builders should consider packaging and bundling the sales of the departure home and the new home, she said.

Under this approach, the sales person visits the departure home, looks it over and then tells the prospective buyer what they can do to increase its appeal. “Send a painter or a handyman into the house to fix it up,” Mulcrone said. “They need you to help them make their old home look new.”

In addition to employing the services of trades people and venders, the sales staff should also establish a good working relationship with other professionals — such as lenders who can explain to potential buyers how the sales process works and the financing products that are available and Realtors® who can help them sell their home.

“It is a journey that goes on for a while,” said Mulcrone. “Understand the reality” of customers who face the contingency of having to sell their existing home first, she said. “Understand their reality, don’t blow it off.”

Working With Realtors

“Everything sells, it’s just a matter of price and time,” said Fafie Moore, CRP, a broker owner for Realty Executives of Nevada in Henderson, Nev. “Good relationships with builders are a key to success for Realtors®. They want to feel connected, that they have something special over everybody else.”

Moore said that Realtors® are looking to forge alliances with builders who make them look good. “Make me feel important,” she advised, “especially if I’ve got a client with me.”

Cultivating that relationship is well worthwhile, she said, in a market where it is commonly assumed that nothing is selling. Realtors® “have some great strategies you may not know about “ that can keep the prospective buyer with a home to sell coming back.

Builders should provide Realtors® with something about their properties that can be disseminated electronically, Moore said.  Also, “Realtors® need to understand the value of your product. You have to educate them and let them know what makes you different and special.”

As for dealing with the prospective buyer with a house to sell, “focus on the value of the new property versus the loss on the existing property...Explain how much they are getting in new housing. In many cases, they are selling for lower than what you can build them for.”

Buyers also need to be reassured that the REO market will eventually fade away, and that homes will once again begin increasing in value once these homes have been absorbed, Moore said.

In today’s slow market, there are a couple of other facts that builders need to keep in mind: roughly 40% of prospects are looking for a first home and aren’t encumbered with a home to sell and 35% of home owners have paid off their mortgages. “Don’t assume that someone who has a home to sell isn’t free and clear. They may actually have some equity,” she said.

Working With a Tax Accountant

Tax expert Heidi Pope, of RSM McGladrey, Inc. in Bloomington, Minn., presented calculations showing how holding onto a current residence as a second home, converting it to an investment property or renting it out until the market returns can be feasible options for prospective buyers who are unable or unwilling to sell their home in a weak market.

Pope’s prototypical home buyer — “Ingrid” — located her dream home and purchased it at the start of the year with a $300,000 mortgage. Mortgage interest on the home will be $18,000 annually and property taxes will be $8,000.

Ingrid’s existing home was purchased four years ago for $300,000 and has declined in value to $270,000, with the land accounting for $50,000 of the property’s value. The home has been her principal residence for each of the four years. $200,000 of the purchase price was financed with a 30-year loan with a 6% interest rate.

Ingrid’s only income consists of a $75,000 salary and interest income of $25,000. She pays a flat tax rate of 28% with no personal exemption and has the financial ability to hold both properties.

Pope ran numbers for four possible scenarios available to Ingrid:

• If she sells her current residence at a $30,000 loss just before purchasing her new home, at the end of a five-year period her total cash flow is more than $271,000.
  
  
• If she converts it into a second home and uses it for a total of three months a year for vacation purposes and sells it on Dec. 31 five-years later for $310,000, her total cash flow is more than $267,000.
  
  
• If she converts the old residence into an investment property and doesn’t use it at all until selling it five years later for $310,000, her total cash flow is almost $275,000.
  
  
• If she converts the home to a rental property and sells it five years later for $310,000, her five-year cash flow totals almost $369,000.

Conversion to an investment or rental property makes sense for Ingrid, Pope says, if the real property appreciates by at least 3% annually, she is able to locate good tenants and, for tax purposes, she does not plan on utilizing the property for personal purposes.

Tax Credit Web Site Looks at Opportunity of a Lifetime

Builders and other industry professionals can help spur home sales by referring prospective first-time home buyers to www.federalhousingtaxcredit.com. The NAHB Web site provides detailed information on the $8,000 federal tax credit for first-time home buyers included in the economic stimulus legislation signed into law by President Obama.

Consumers can use the Web site to find information on the tax credit – including a detailed question and answer section. It also includes information about other housing-related and small business measures in the legislation and a number of home-buying resources for consumers.

“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.”

Industry professionals are encouraged to highlight the tax credit Web site when marketing to their potential first-time home buyer market.

‘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.

Get the Marketing Edge With IRM

Meet the current market’s sales and marketing challenges fearlessly when you take Institute of Residential Marketing (IRM) classes.

Courses include "The Challenge of New Home Sales Management,” “Understanding Housing Markets and Consumers,” “Marketing Strategies, Plans and Budgets” and more.

The courses are part of the credits needed to earn the MIRM designation, the top-level achievement for professionals in new home marketing. Find upcoming IRM classes here.

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.

How to Profit From Effective Cash Flow Management

By Steve Maltzman, SMA Consulting
Cash flow forecasting is one of the key components of a home builder’s financial success. If builders don’t properly manage their cash flow — if they constantly find themselves taking cash from their current job to cover the sins of a previous job — they will never have a positive bottom line.

To break out of this predicament, builders should absolutely make long-term and short-term cash flow planning an integral part of their budgeting process. They should also look at their cash sources and requirements on a monthly basis.

In addition, I also recommend that builders examine their weekly cash inflows and outflows when developing their cash flow planning, and that they incorporate a six- to eight-week rolling schedule.

To Begin, Accurately Detail Your Planned Monthly Expenses

Many builders can lose sight of the details needed for accurate cash flow forecasting when they sit down to develop their annual and monthly operating budgets because they simply identify their annual expenditures and then divide them by 12.

This method of forecast planning won’t provide a true picture of monthly operations.

A more accurate way to plan your monthly operations budget would be to try to identify the month or months you anticipate incurring specific expenses, for example, advertising.

You don’t spend the same amount on advertising each and every month of the year, so when planning for advertising, try to identify when you plan on running your ads and put those planned expenditures in the appropriate months’ projections. If you are planning to have a Yellow Pages ad, for instance, budget for the cost of the ad in the month that the actual expenditure is expected to be made.
 
Once you have identified your anticipated monthly operating expenses, you then need to adjust you total expenses for other cash flow items.

Deduct items such as depreciation, since this is a non-cash expense, and add such non-expense related cash items as note payments — the interest portion should be considered as an expense while the principal payments affect cash flow — cash payments of other liabilities, cash purchases for equipment and cash payments for federal and state income taxes.

After completing this process, you will have accurately identified the amount of cash you will need each month to operate your company.
 
Next, Examine Cash Flow From Your Jobs

The next step in developing your annual cash forecast is to look at the cash flow from your jobs. Depending upon the number of units you build, this budget can be prepared by unit or by subdivision.

You will need these four elements to accurately develop your job cash flow:

• Draw schedule — whether from your bank or from your customer
• Construction schedule
• Payment terms for your subcontractors and suppliers
• Job estimate

With all of these in hand, you should easily be able to predict cash inflows and outflows for your jobs.
 
Once you combine the cash flow calculations from your jobs with your cash outflows, you now will be able to identify the months in which you anticipate excess cash and cash shortfalls.

With this projection, you will be able to accurately make strategic decisions for the year, such as, whether you should develop a line of credit to smooth out your cash flow; whether you should start a spec home to provide cash flow from your construction loan; and whether you should renegotiate payment terms on a note coming due.
 
Regularly Update Your Monthly Cash Flow Projections

Just as you do with your other financial reports, your monthly cash flow projection should be reviewed and updated regularly.

In addition to your monthly forecast, if you have tight cash needs, you also should prepare a more detailed weekly cash flow projection that includes information on which subcontractors and suppliers are to be paid on a job-by-job basis, as well as your weekly cash inflows, including draws and collections of receivables.

Also, be sure to update this forecast each week. It will help you identify any weekly cash problems and give you the ammunition you need to discuss new payment plans with your vendors, if necessary.
 
Cash Management Tips

Developing a cash flow forecast will assist you in planning for your cash inflows and outflows. Following are some tips on managing your cash flow and how to profit from it:

• One of the advantages of the custom building business compared to spec building is that you can use the customer’s money to pay off your trades and suppliers rather than using internal funds or construction loans. You should try to always be ahead of the customer and maximize the use of your client’s funds by taking a deposit and front-loading your draw.
  
  
• If you are front loading your draws, it is imperative that you manage your books on a percentage-of-completion basis. This will enable you to understand and account for overbillings on your jobs. By using percentage-of-completion accounting, you will always know when you are ahead on a job.
  
  
• Try to set up benchmarks for payments that correlate to the start of a phase rather than its completion.
  
  
• Take advantage of vendor discounts. A 2% discount for paying in 10 days is comparable to saving as much as 72% during the year. Since the vendor would have to be paid in another 20 days anyway, where else could you be earning that great a return?
  
  
• Likewise, ask your subcontractors to take a discount if you pay them earlier than the scheduled payment date.
  
  
• Set up specific days for paying your bills (e.g. the 10th and 25th of the month) and keep “hand checks,” those checks issued outside your specific payment days, to a minimum. You may also want to consider mailing checks on a Thursday in order to take advantage of the “float” over the weekend.
  
  
• Set up a sweep account with your bank so that you can earn interest on your excess cash. With a sweep account, your bank will automatically move any amount in your checking account that is above the specified balance needed to avoid bank fees into an interest bearing account. Many banks also will allow you to sweep excess funds into a money market or higher interest bearing account, rather than a normal savings account.
  
  I also have found that, with many banks, a builder who has an average daily balance greater than $35,000 can earn interest income that is enough to offset any bank fees related to having a sweep account.
  
  
• Time your larger draws so that you can get money into the bank before the close of business on Friday to take advantage of earning interest over the weekend.
  
  
• Time your loan draws to only take them when you are ready to disburse the cash. If you are borrowing money to build a house, you can minimize your construction loan interest by taking down the funds only when you need them.
  
  
• Explore the possibility of obtaining a line of credit even though you may not need it at the moment. It is easier to establish a credit line when you really don’t need the funds. A credit line will also provide you with flexibility in taking advantage of discounts.
  
  
• When setting up credit lines or construction loans, don’t be afraid to ask for better rates. In most markets, if you have a good set of financial statements, points and rates are negotiable.

Over the years, I have seen more and more builders add worthwhile amounts of interest income, discounts earned and reduced interest expenses to their bottom line through proper cash flow forecasting and management.

Steve Maltzman is a CPA and president of SMA Consulting, with offices in Redlands, Calif. and Orlando. SMA Consulting provides financial and business management services for builders and remodelers. For more information, e-mail Maltzman in the Redlands office, call him at 909-335-9100 or visit the SMA Consulting Web site at www.smaconsulting.net.

Take Control of Your Finances

“Accounting & Financial Management for Residential Construction,” available through BuilderBooks.com, is a sold resource for builders, remodelers, developers and contractors that provides detailed information on how an accounting system operates and the basic principles for processing financial data.

Set Your Company Apart with Exceptional Customer Service

Take the “Profitable Business through Quality Practices” course from The NAHB University of Housing and learn key strategies for providing a quality building/remodeling experience for your home owners.

Topics include meeting the quality challenge with customers, with competitors and within your company. This is a “must” for the builder or remodeler who is ready to take his or her company to the next level.

Find out where upcoming courses are being held here, or call 800-368-5242 x8154 for more information.

NAHB Has Nearly 300 Resources to Help You Run Your Business More Profitably

Go to NAHB's Business Management Tools Web pages (available to members only) for instant access to nearly 300 timesaving, moneymaking and cost-cutting business resources to help you run your business more profitably. Get guidance on accounting and financial management, business strategy, computers and information technology, customer service, human resources and more.

Resources are added weekly, so bookmark www.nahb.org/Biztools to go directly to these vital business management resources.

55+ Market Down in Index But Preparing to Lead Recovery

Although the 55+ housing market holds the potential to lead a resurgence in home building from today’s devastating downturn, this sector of the industry has also fallen on hard times, according to the inaugural results of NAHB’s new 55+ Housing Market Index (HMI) , which were announced during last month’s International Builders’ Show in Las Vegas.

“What’s happening now, people have just stopped,” said Joanne (Jo) Theunissen, immediate past chair of the NAHB 50+ Housing Council and a builder from Michigan.

“Our customers are usually in a good position to buy homes because they have spent years accumulating wealth — building up the equity in their current homes and establishing good credit,” Theunissen said. “But in the current market, they can’t find buyers for their existing homes and many are delaying their retirements altogether.”

With the aging of the post-World War II baby boom, this segment of the housing industry has increasingly gained the attention of builders in recent years, she said, and the 55+ population is expected to swell by more than 85 million people by 2014.

Modeled after the NAHB/Wells Fargo Housing Market Index that NAHB has been conducting for more than 20 years to gauge builder perceptions of market conditions in the single-family housing market, the new 55+ HMI tracks the confidence levels of builders serving the 55+ buyer. For the fourth quarter of 2008, the 55+ HMI debuted with a reading of 18.

All three components of the index for the final three months of last year fell well below the level of 50, which generally indicates that the number of positive and negative responses are the same.

“In December, NAHB’s HMI for the overall single-family home market was at an all-time low of 9, so the 55+ market is holding up slightly better than the market in general, but that is little consolation,” said NAHB Chief Economist David Crowe. “Consumers across the country are suffering, and every sector of the housing industry is being impacted by the current economic and financial crisis.”

The three primary components of the index track builder sentiment on present sales conditions, expectations for the next six months and the traffic of prospective single-family home buyers in the 55+ market. Those components stood at 17, 24 and 9, respectively, for the fourth quarter of 2008. Separate components of the index track builder sentiment on age-restricted condos and rentals.

Although both builders and buyers are currently having trouble selling homes and getting credit, 55+ buyers — who hold more than 50% of the nation’s home owner equity — are in a better position than the general population to take advantage of the low interest rates, affordable prices and wide selection of homes now available, said Pat Kelley, chairman of NAHB’s 50+ Housing Council and a builder from St. Louis. “This is a perfect time to buy,” he said, and those who do “will certainly improve their investment.”

In the meantime, builders serving the 55+ market are working to identify strategies that will succeed in appealing to these buyers, said Theunissen.

“Builders are being careful about the choice of the product they offer,” she said. “It has to be better than what 55+ buyers currently have, as well as smaller, more comfortable, in a better neighborhood, green and energy-efficient.”

For information on 50+ resources available from NAHB, e-mail Ann Marie Moriarty or call her at 800-368-5242 x8350.

Find Out What the 45+ Housing Market Wants

“Right House, Right Place, Right Time: Community and Lifestyle Preferences of the 45+ Housing Market,” available through BuilderBooks.com, will help determine the right design, home features and amenities to attract boomer home buyers in your market.

Author, Margaret A. Wylde guides readers through the latest survey results on this important consumer group and explains what their responses mean for today’s and tomorrow’s home building industry.

To view or purchase this publication online, click here, or call 800-223-2665.

Enter the AARP-NAHB Livable Communities Awards

Entries are now open for NAHB and AARP’s third annual Livable Communities Awards recognizing builders, remodelers and developers for creative and unique homes and community projects that improve the daily comfort, ease and safety of their residents and highlight the critical elements needed for a livable community.

New categories have been added this year to recognize architects and planners for home and community design, as well.

Winning entries will be honored for:

• Design elements that accommodate the needs of all residents with all levels of physical ability from children through grandparents
  
  
• Easy access to community services and features such as retail, restaurants, medical, social and cultural activities, as well as viable transportation options
  
  
• Improved energy efficiency that reduces long-term utility costs
  
  
• Enhanced site design that enables residents of a neighborhood to commute easily to the broader community

A panel selected by NAHB and AARP will review the applications and select the finalists.

Judging criteria vary from category to category, but points will be awarded based on:

• Universal design features
• Ease of maintenance and energy efficiency
• Exterior design and landscaping/site design
• Incorporation of Livable Community design features
• Stakeholder involvement 

Four projects were selected by judges as winners of the award in 2008:

• Builder, up to 2,500 square feet
  New Millennial Homes
  Tampa, Fla.
  
  
• Remodeler, more than $75,000
  Interior Design Details
  Los Angeles
  
  

• Developer, up to 250 Units
  The Winery LLC
  Bainbridge Island, Wash.
  
  

• Developer, more than 250 Units
  HallKeen, the Braverman Company and New Boston Fund
  Winooski, Vt.

Applications are due June 5.

For more information on the awards or to apply online, visit www.nahb.org/livablecommunities.

Winners will be notified by NAHB and AARP no later than Nov. 1. Winning entries will be recognized at an awards program in December or January.

Find Out What the 45+ Housing Market Wants

“Right House, Right Place, Right Time: Community and Lifestyle Preferences of the 45+ Housing Market,” available through BuilderBooks.com, will help determine the right design, home features and amenities to attract boomer home buyers in your market.

Author, Margaret A. Wylde guides readers through the latest survey results on this important consumer group and explains what their responses mean for today’s and tomorrow’s home building industry.

To view or purchase this publication online, click here, or call 800-223-2665.

CAASH in on Active Adults at 50+ Housing Symposium

Three 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:

• “Designing for the Active Adult”
  Friday, April 24
  9:00 a.m.- 5:00 p.m.
  
  This one-day course provides an overview of design considerations to take into account when planning single-family and multifamily housing for active adults. Participants will learn how to meet the needs of this diverse and growing market — estimated to reach 85 million people by 2014 — and provide them with the housing options they demand.
  
  
• “Selling to Active Adults”
  Saturday, April 25
  9:00 a.m.- 5:00 p.m.
  
  This course will help participants improve their sales success with the active adult home buyer by helping them develop sales strategies specific to this market. The course is designed to provide techniques to more effectively communicate with, qualify, handle objections from and close sales with potential active adult home buyers.
  
  
• “Trends and Research Methods to Define the Active Adult Lifestyle”
  Sunday, April 26
  9:00 a.m.- 5:00 p.m.
  
  This course will help builders, developers and other housing professionals gain a greater and more in-depth understanding of planning for the active adult community and the importance of market research before development begins. Participants learn how to better identify and serve the diverse needs of active adults.

Course Fees:

• 50+ Housing Council Member — $170
• NAHB Member — $195
• Non-NAHB Member — $245

Each course also offers continuing education credit for CAPS, CGA, CGB, CGR, GMB, Master CSP, CSP, CMP and MIRM and designation credit for CAASH.

For a complete schedule of symposium events, visit www.nahb.org/Build4Boomers.  

For more information on the CAASH designation, visit www.nahb.org/CAASHinfo.

Find Out What the 45+ Housing Market Wants

“Right House, Right Place, Right Time: Community and Lifestyle Preferences of the 45+ Housing Market,” available through BuilderBooks.com, will help determine the right design, home features and amenities to attract boomer home buyers in your market.

Author, Margaret A. Wylde guides readers through the latest survey results on this important consumer group and explains what their responses mean for today’s and tomorrow’s home building industry.

To view or purchase this publication online, click here, or call 800-223-2665.

Attend Multifamily Pillars Conference in San Diego

Attend the 2009 Multifamily Pillars of the Industry Conference & Awards Gala in San Diego on March 17-18 and find out what’s next in the rapidly changing multifamily market from top economists and multifamily market experts.

Network with the top professionals in the field and find out how they’re navigating the current market. Walk away with new contacts and fresh perspectives.

For more information, visit www.nahb.org/PillarsConference.

Councils Recognized for Growing Membership

During ceremonies by the NAHB Remodelers at the International Builders’ Show in Las Vegas earlier this year, nine local remodelers councils were honored for growing their membership in 2008. In addition, the NAHB Remodelers also recognized the establishment of eight new councils.

The NAHB Remodelers conduct an annual Local Council Growth Competition, with local councils competing in three size categories.

The winning councils included:

Small Councils (1-50 members)                                                               

Council	2007	2008	Net Gain	Place
Home Builders Association of Greater New Orleans	53	100	47	1st
Home Builders Association of Craven & Pamlico Counties, N.C.	8	29	21	2nd
Charleston Trident Home Builders Association, S.C.	17	32	15	3rd

Medium Councils (51-100 members) 

Council	2007	2008	Net Gain	Place
Home Builders Association of Lexington, Ky.	95	182	87	1st
Home Builders Association of Metro Orlando	61	94	33	2nd
Greater Atlanta Home Builders Association	96	124	28	3rd

Large Councils (More than 100 members)

Council	2007	2008	Net Gain	Place
Greater Houston Builders Association	226	298	72	1st
Master Builders Association of Pierce County, Wash.	120	162	42	2nd
Home Builders Association of Lincoln, Neb.	126	141	15	3rd

The eight new remodelers councils founded in 2008 included:

• Asheville Home Builders, N.C.
• Quad Cities Home Builders and Remodelers Association, Iowa
• Builders Association of Western Nevada
• Shore Builders Association of Central New Jersey
• Remodelers of Central Illinois
• Permian Basin Home Builders Association, Texas
• Lawrence Home Builders Association, Kan.
• Treasure Coast Builders Association, Fla.

The councils honored were each presented with plaques at the NAHB Remodelers Chairman's Dinner, held during IBS.

For more information, e-mail Abbey Cameron at NAHB, or call her at 800-368-5242 x8217.

Capitalize on Your Experience

The ultimate symbol of the building professional, the Graduate Master Builder (GMB) designation, is for experienced veterans only.

The GMB provides advanced knowledge of the building business, covering topics such as risk management, land acquisition and financial management.

Before beginning the GMB designation process, you must have the Certified Graduate Builder (CGB) designation or the Certified Graduate Remodeler (CGR) designation with five years of building experience, or 10 years of building experience and have completed three CGB/CGR courses.

For more information, visit www.nahb.org/GMBInfo, or call The Professional Designation Help Line at 800-368-5242 x8154.

Education Calendar

March 17-18	Pillars of the Industry Conference and Awards Gala	San Diego, Calif.
April 22	Weathering the Storm: Survival Strategies in a Down Market	Washington, D.C.
April 23	Construction Forecast Conference	Washington, D.C.
April 27-29	Building for Boomers and Beyond: 50+ Housing Symposium	Philadelphia, Pa.
April 28	Best of 50+ Housing Awards	Philadelphia, Pa.
April 28	50+ Icons of the Industry Award	Philadelphia, Pa.
May 8-10	National Green Building Conference	Dallas, Texas
May 8	National Green Building Awards	Dallas, Texas
Aug. 11-15	Executive Officers Council Seminar	Louisville, Ky.
Aug. 12	EOC Association Excellence Awards	Louisville, Ky.
Oct. 25-28	Building Systems Councils SHOWCASE	Marco Island, Fla.
Oct. 27-30	Remodeling Show	Indianapolis, Ind.
Oct. 29	NAHB Remodeler of the Year Award	Indianapolis, Ind.
Oct. 29	National Remodeling Hall of Fame Award	Indianapolis, Ind.
Oct. 29	Homes for Life Award	Indianapolis, Ind.
Nov. 6-8	Custom Builders Symposium	San Diego, Calif.
Nov. 6-9	National Conference on Membership	New Orleans, La.
2010
March 29-31	Log Home Council President's Tour	Boise, Idaho

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.

NHC Tools Address Housing Needs, Foreclosure Crisis

As part of their efforts to provide “solutions-focused” tools and resources for housing practitioners and policymakers, the National Housing Conference (NHC) and its research affiliate, the Center for Housing Policy, last week released three research briefs in a new series entitled “Insights From Housing Policy Research.”

The studies were:

• “‘Don’t Put It Here!’ Do Subsidized Housing Developments Cause Property Values to Decline” — With a special focus on work by Ingrid Ellen — associate professor of public policy and urban planning and co-director of the New York University Furman Center for Real Estate and Urban Policy — the research shows that affordable housing on the whole does not usually have an adverse impact on the value of neighboring properties and may actually improve them in some cases. Key factors that are associated with stable or increased property values include an attractive design that blends with the surrounding neighborhood and strong property management.
  
  
• “Taking Stock: The Role of ‘Preservation Inventories’ in Preserving Affordable Rental Housing” — This brief examines how states and localities — including Cook County, Ill., Florida, New York City, New Jersey and Washington, D.C. — are using data analysis to preserve the stock of affordable rental housing. “Preservation inventories” collect available data on the existing affordable rental housing stock, making it easier for communities to identify properties that are at risk of being lost as a result of physical deterioration or the expiration of affordability limits.
  
  
• “The Well-Being of Low-Income Children: Does Affordable Housing Matter?” — The report profiles the research program of Sandra J. Newman — professor of policy studies at Johns Hopkins University, chair of the Graduate Program in Public Policy and director of the Johns Hopkins Institute for Policy Studies — examining how affordable housing affects children and families. As discussed in the brief, a recent Newman research project found that children in unaffordable housing markets may not fare any worse than children living in affordable housing markets. This is perhaps because they benefit from living in communities that have better schools and neighborhood amenities. However, Newman stresses that more research is needed to better understand these findings.

Online Guide Focuses on Foreclosure Prevention

In addition, in partnership with KnowledgePlex, the Local Initiatives Support Corporation and the Urban Institute, the center for Housing Policy launched ForeclosureResponse.org, a new online guide to foreclosure prevention and neighborhood stabilization, geared to helping communities address pressing housing needs.

“Getting Started” answers questions about foreclosure prevention and neighborhood stabilization such as “What types of loans are most at risk of foreclosure?” and “Who is responsible for maintaining foreclosed properties?”

The “Policy Guide” presents high-impact solutions that can help states and localities prevent and respond to foreclosures.

And the “Maps and Data” section of the site allows users to create maps identifying which areas have a high-priority need for foreclosure prevention or neighborhood stabilization assistance, as well as indicating the relative strength of the housing market in the areas.

The Center for Housing Policy last week also announced the launch of HousingPolicy.org Discussion Forum, an online tool to help users quickly and easily share ideas, innovations and questions about housing policy. The forum is available through both HousingPolicy.org — the center’s online guide to state and local housing solutions — and its new sister site, ForeclosureResponse.org.

Job Corps Students at IBS Showcase Their Trade Skills

Student Ambassadors from the Home Builders Institute’s (HBI) Job Corps programs demonstrated their trade skills to attendees at last month’s International Builders’ Show (IBS) in Las Vegas.

At the outset of the show, students joined with HBI instructors and staff to build the Job Corps Skills and Employment booth, where they showcased throughout the week their expertise in residential construction.

The students who worked at the booth were:  Njoki Campbell, carpentry, Cassadaga Job Corps Center; Temira Hines, painting, Brunswick Job Corps Center; Kris Poola, plumbing, Fred G. Acosta Job Corps Center; Zachary Schmidtke, brick masonry, Weber Basin Job Corps Center; Jamal Tyler, electrical, Keystone Job Corps Center; Bowdry Welsh, brick masonry, Weber Basin Job Corps Center; and Eric Willis, facilities maintenance, Atlanta Job Corps Center.

A highlight of student activities at the IBS was the fourth annual Job Corps Jeopardy! Championship on Jan. 20. Sponsored by the NAHB Student Chapters, the competition gave participants the opportunity to compete head to head in displaying their home building knowledge.

Emerging as the winner in a hard-fought contest was Temira Hines, who received a $100 gift card from Lowe’s Home Improvement.

During the show, Lowe’s presented a $50,000 check to HBI, renewing its commitment to the HBI/Lowe’s Building Careers Scholarship fund for a sixth year.

Coming in second place in the Jeopardy challenge was Jamal Tyler, a December 2008 graduate from the Keystone Job Corps Center. While at Job Corps, he took additional courses at Luzerne County Community College in Nanticoke, Pa. Tyler is in his second year of an associate’s degree program in electrical construction technology and earned a 4.0 grade point average last semester.

“Even though Jamal had already graduated from my program, I wanted him to attend the Builders’ Show so a larger audience could see what a model Job Corps student he is,” said HBI instructor Marty Stronko. “Jamal is one of those students who are an inspiration to others. Even now, the entire Keystone Job Corps Center is buzzing about the success he’s having in college.”

“These students are impressive,” said former HBI Chairman Bill Paul. “They always put on a good show during the Jeopardy competition and represent HBI well. It’s great that NAHB members have a chance to interact with some of the brightest young trades people in the industry.”

For more information or for a complete roster of HBI events at IBS, e-mail Maria McIntyre at HBI, or call her at 800-795-7955 x8912.

Dryvit Outsulation Shows Its Stuff in Adverse Weather

Dryvit’s Outsulation Rapidry DM proved its mettle last December in a home built in Voluntown, Conn. under challenging weather conditions for the Feb. 8 broadcast of the "Extreme Makeover, Home Edition" television program.

The conditions under which more than 2,500 square feet of an Outsulation RMD system was installed in less than 48 hours “really demonstrated the unique advantages that Dryvit’s Rapidry DM 35-50 and 50-75 products offer in accelerating drying times that allow you to work much faster and more efficiently in colder temperatures,” said Al Zabbo, Dryvit’s field service manager who oversaw the installation.

Because Rapidry significantly reduces curing times in colder weather, the product allows contractors to complete two installation steps — either insulation board installation and rasping or base coat and finish application — in a single work day, when proper tenting and heating are used. The result is significantly faster installation of the overall Outsulation system.

That benefit was put to the test in Voluntown. An unexpectedly cold early December frost — with wind chills in the single digits — met the team Zabbo assembled when they arrived at the job site at 3 a.m. on the first day. Not even several delays, and the addition of a cold, driving rain later in the construction, did anything to diminish the enthusiasm of the Dryvit applicators, or the speed of the application.

“The tenting and heating held up well under these extreme conditions, and we got the job done,” said Zabbo.

Dryvit Systems, Inc. is the nation’s leading manufacturer of highly energy-efficient exterior cladding systems that are more energy-efficient and produce a smaller carbon footprint than other common claddings like brick, wood, vinyl and stucco.

Outsulation RMD systems are highly energy-efficient through the placement of the insulation on the exterior of the home’s wall, which independent testing by the Oak Ridge National Laboratory and the Canadian Mortgage & Housing Corporation has revealed to be the most effective insulation method.

Outsulation can be used for new home projects, but it can also be used when renovating a property, regardless of what is currently on the exterior.

Home owners report savings of more than 20% on their energy bills after their homes have been renovated with Dryvit Outsulation RMD, according to the manufacturer.

Headquartered in West Warwick, R.I., Dryvit is a member of the National Council of the Housing Industry — The Leading Suppliers of NAHB.

This feature is solely for educational and informational purposes. Nothing on this page should be construed as policy, an endorsement, warranty or guaranty by the National Association of Home Builders of the featured product or the product manufacturer. The National Association of Home Builders expressly disclaims any responsibility for any damages arising from the use, application or reliance on any information contained on this page.

‘Strategies for Success’ Applications Due March 14

The NAHB Women’s Council and the National Housing Endowment, the philanthropic arm of NAHB, are offering “Strategies for Success” scholarships for full-time students pursuing building-related courses of study for the 2009/2010 academic year. Applications are due March 14.

The “Strategies for Success” Scholarship Fund encourages students to further their education in such industry-related fields as construction management, construction technology, civil engineering, architecture, design or any of the trade specialties at the college or university they are attending.

Preference is given to women students with financial needs and those who are active NAHB Student Chapter members at their university or college.

Applicants interested in applying for the scholarship funds must be registered as a full-time student this coming fall and either be a senior in high school planning to enroll in a two- or four-year college or university/vocational program following graduation, or have at least one full academic year of course work remaining after the scholarship is received at a two- or four-year college or university/vocational program. 

The scholarship can be used for tuition, fees and/or books.

To Apply

Scholarship applications can be downloaded from the “Strategies for Success” scholarship page of the National Housing Endowment Web site, www.nationalhousingendowment.org. Applications are available in Word and PDF formats.

The “Strategies for Success” scholarships were established in 2001 by Deborah Ferland, past national president of the NAHB Women’s Council, and Austin Ferland. To date, more than $8,000 has been awarded. 

The endowment administers 12 scholarship programs and awards more than $300,000 each year to students pursuing careers in residential construction and related fields.

For more information, visit the endowment Web site at www.nationalhousingendowment.org.

Free Webcast Explains ANSI Green Building Standard

Students, faculty, home builders, remodelers and other industry professionals can log in to a free webcast that will enable them to gain an insider's understanding of the new American National Standards Institute (ANSI) green building standard.

The webcast, first aired on Feb. 3, is presented by the National Housing Endowment and East Carolina University and can be viewed at www.rcmseries.ecu.edu.

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, “Growing Green: A Sustainable Approach to Residential Construction,” examines how to effectively incorporate the new ANSI standard to build and remodel more sustainable communities and homes and how to use the standard.

During the webcast, Ed Sutton, of NAHB’s Construction, Codes & Standards, and Michael Luzier, president of the NAHB Research Center, discuss 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. Mark Tipton, 1991 NAHB president, serves as the moderator.

The webcast was the third in the “Building Communities Residential Construction Management Seminar Series” presented by the endowment and East Carolina University. The series provides students pursuing careers in residential construction with cutting-edge information and real-world solutions to real-world construction problems.

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 Initiative

The 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 Services

NAHB members can receive valuable discounts of up to 29%* on select FedEx shipping services:

• FedEx Express^® —  from 19% to 29% on select services
• FedEx Ground^® — from 5% to 20% on select services

Click here and enter passcode HVCSP8 to start saving on shipping.

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.

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 Offer

NAHB 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.

• Seven GM nameplates are included in the offer — Chevrolet, Pontiac, Buick, Cadillac, GMC, Saab and HUMMER.
  
  
• Vehicles excluded from this offer include Cadillac CTS-V, Chevrolet Corvette ZR1, HUMMER H1 and Saturn vehicles. Medium duty trucks are also excluded.
  
  
• The $500 exclusive offer can be combined with most retail national and regional incentives in effect at the time of delivery.
  
  
• There is no limit to the number of vehicles members can purchase.  
  
  
• Customers must take delivery by Jan. 4, 2010.

To receive the discount, members must present the GM authorization ID number to their dealer. Members can receive their ID number at www.gmfleet.com/nahb or by calling the GM call center at 866-760-7070. One authorization ID number is required per vehicle. 

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.

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.

Calendar of Events

March 17-18	Pillars of the Industry Conference and Awards Gala	San Diego, Calif.
March 18	Pillars of the Industry Awards	San Diego, Calif.
March 24	Legislative Conference	Washington, D.C.
April 22	Weathering the Storm: Survival Strategies in a Down Market	Washington, D.C.
April 23	Construction Forecast Conference	Washington, D.C.
April 27-29	Building for Boomers and Beyond: 50+ Housing Symposium	Philadelphia, Pa.
April 28	Best of 50+ Housing Awards	Philadelphia, Pa.
April 28	50+ Icons of the Industry Award	Philadelphia, Pa.
May 8-10	National Green Building Conference	Dallas, Texas
May 8	National Green Building Awards	Dallas, Texas
May 24	2009 Government Affairs Recognition Awards	Washington, D.C.
May 25-31	Spring NAHB Board of Directors Meeting	Washington, D.C.
Aug. 11-15	Executive Officers Council Seminar	Louisville, Ky.
Aug. 12	EOC Association Excellence Awards	Louisville, Ky.
Sept. 30-Oct. 4	Fall NAHB Board of DirectorsMeeting	Chicago, Ill.
Oct. 25-28	Building Systems Councils SHOWCASE	Marco Island, Fla.
Oct. 27-30	Remodeling Show	Indianapolic, Ind.
Oct. 29	NAHB Remodeler of the Year Award	Indianapolis, Ind.
Oct. 29	National Remodeling Hall of Fame Award	Indianapolis, Ind.
Oct. 29	Homes for Life Award	Indianapolis, Ind.
Nov. 6-8	Custom Builders Symposium	San Diego, Calif.
Nov. 6-9	National Conference on Membership	New Orleans, La.
2010
March 29-31	Log Home Council President's Tour	Boise, Idaho

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.