Print-All Page: March 16, 2009

Home builders may be underestimating the mileage they can derive from the recently enacted $8,000 tax credit for first-time home buyers and should be doing whatever they can to actively promote it with their prospective buyers, according to residential marketing experts participating in an NAHB teleconference on March 16.

“Home builders and their sales and marketing teams can use the credit to clear off excess inventory,” NAHB President and CEO Jerry Howard told the more than 900 association members who called in for the presentation, which included a question and answer session on specifics of the provisions governing the use of the credit.

Suggesting that it is “the best kept secret in the world” in quarters of the housing industry where it can do the most good, Dan Levitan, MIRM, CMP, of Levitan and Associates in Fort Lauderdale, Fla., noted that “except for large and regional builders, we are not doing what we should to promote this tax credit.”

Big builders have placed major banners heralding the tax credit on their Web sites, Levitan said, and Lennar and Centex have added flash productions that enable visitors to click through to information explaining the credit and the availability of attractive mortgage interest rates. “This shows us how important this tax credit is to us today in getting the buyer motivated and giving us an excuse to get in contact with that prospect and get them excited,” he said.

While the marketplace has remained slow since the credit became available as part of the massive stimulus package signed into law on Feb. 17, Levitan said that production builders are reporting that they have sold homes based on the availability of the credit in tandem with other programs they have been running to attract reluctant buyers.

“We are using it as a tool to stay in contact with our customers and differentiate ourselves from others who aren’t promoting the credit,” Levitan said.

Educating consumers about the credit is key, and NAHB has created a detailed list of frequently asked questions that association members can deploy to provide information to the home-buying public at www.federalhousingtaxcredit.com. Members of the association can bolster their businesses with a range of promotional materials posted at www.nahb.org/economicstimulus.

Levitan said that home builders associations have been leading efforts to promote the credit. Among them, the Greater Birmingham Association of Home Builders, in partnership with the Birmingham Association of Realtors®, is highlighting the first-time buyer tax advantage in its “The Real Deal” campaign, a five-day event on April 16-20 that will push sales of new and resale homes listed by members of the associations.

The goal of the program, which can be franchised by other HBAs around the country, is geared to getting the local housing market moving again, and it is being publicized through a television, radio and print media blitz and sponsorships through leading area businesses.

“Get something like this going with your local home builders association,” Levitan advised teleconference participants. When “everyone is working together, we ought to be able to sell tens of thousands of houses this year using the tax credit.”

Gaye Orr, MIRM, CMP, of Coldwell Banker Advantage New Homes in Raleigh, N.C., said that builders need to educate their salespeople on the tax credit if they want their promotions to yield success. “We in the industry should really be up to speed on this. Your salespeople on the front line need to be comfortable with it,” she said. In the meantime, consumers are walking into sales offices “with more questions than they have answers for.”

Although it may take a tax professional to determine for prospective buyers how best to take advantage of the credit, letting people know just a few options — such as how to speed up receipt of the money from the credit — “can get people off the fence,” she said.

The credit also has significant relevance for households in the trade-up market, she said, who have to sell their departure residences first before they can move to a new home, suggesting that not only first-time buyer sales agents need to have expert knowledge on how the credit works.

Combined with the availability of the credit, teaming up with a local financing company to provide financing incentives and convincing the sellers of existing homes to reduce their prices will “help sell departure residences,” Orr said.

She also recommended holding home buyer seminars on the tax credit, an “old school” approach that is “tried and true,” nevertheless. “Mention the word stimulus and people’s eyes start to glaze over,” she said. “Offer past prospects the chance to come in and find out what this means for them.”

Rob Dietz, NAHB’s director of tax issues, said that the credit is “an important benefit,” with 35% to 40% of the home buying market consisting of first-time buyers. He stressed that buyers need to close on their principal residence on or after Jan. 1 of this year and before Dec. 1 to qualify.

To get the proceeds from the credit into the hands of buyers faster, filers can amend their 2008 tax returns to include 2009 home purchases. Although it is no “silver bullet” for monetizing the credit so that it can be used for a downpayment, prospective buyers who know that they will be completing settlement on a home within the eligible time period can adjust their payroll withholdings to save up money for the closing, he said.

State housing finance agencies in Missouri, Delaware and other states are looking at ways to advance the tax credit amount as a short-term loan.

For more information, e-mail Blake Smith at NAHB, or call him at 800-368-5242 x8583.

On Sales Tour, John Wieland Aims to ‘Get Housing Moving’

In a unique marketing campaign, Southeast home builder John Wieland, CEO and founder of John Wieland Homes, is touring his five markets in a distinctive green-ish Winnebago emblazoned with a “Get Housing Moving!” banner and is covering the basics to educate consumers about the good things that housing can do for their neighborhoods and communities.

Wieland hit the road on March 7 and says that he will continue his travels until he has sold 101 homes, a quota he hopes to reach within 40 days. Eight days into the promotion, he had driven 1,082 miles. He is spending each night on his own mattress in a completed home for sale in a John Wieland neighborhood.

To more easily navigate his neighborhoods, Wieland has also acquired a yellow scooter that will be raffled off as the days go by somewhere along the way.

Wieland’s itinerary includes Atlanta; Charlotte and Raleigh, N.C.; Charleston, S.C.; and Nashville. As part of its campaign, Wieland Homes is offering the lowest prices in the company’s 39-year history — with discounts of anywhere from 5% to 25% and mortgage interest rates as low as 4.5%.

At the start of the tour, there were 380 unsold John Wieland Homes in the company’s four-state area.

Wieland’s mission is not just to sell homes. On a person to person basis, he is also working to convey the message that housing is critical to staging an economic recovery and that now is an opportune time to buy with mortgage rates and prices running near all-time lows.

The veteran home builder is also providing a running commentary on his marketing adventure on a Get Housing Moving blog at www.gethousingmoving.com.

Highlights of the trip so far include meeting with a variety of real estate professionals at the Allen Tate convention in Charlotte, the largest group of Realtors® in the city. Its Builders Services, Inc. division (BSI) has handled sales for John Wieland Homes for nearly 20 years.

Along the way to the Queen City, the nation’s second largest banking headquarters, Wieland had the opportunity to meet with Pineville, N.C. Mayor George Fowler, who put on a Get Housing Moving T-shirt to demonstrate his support for the industry.

Wieland has used his blog so far to weigh in on a couple of important issues for the housing industry during these challenging times.

In a March 13 post, he notes that banks need to think twice about the impact of some of their actions on banking values.

“It is truly tragic to see what is happening to home values in some neighborhoods in Atlanta and Charlotte,” he writes. “Pricing has become basically irrational. Fortunately right now these situations are isolated.”

Wieland voices concern over banks selling foreclosed homes for less than the cost to build them, even if the developed lot is free. “This is creating a frenzy in terms of qualified purchasers who might otherwise be interested in a new home. Purchase offers are being made way below the inherent value of the home. Bank foreclosure pricing is being used as a rationale for the extremely low offers.”

Driving down home values to “absurdly low levels,” Wieland argues, is not in the best interest of lenders. By creating more homes whose value has sunk below the owner’s mortgage, banks are only contributing to conditions under which some households “may simply give up and mail in their keys, creating yet another foreclosure and another loss for the mortgage lender.”

With banks’ cost of money as low as it is today, and the relative low expense of holding onto the home, Wieland believes that lenders should wait until they can sell for a reasonable price. The bank comes out ahead and it helps prevent further erosion in the value of other homes.

“We presently have an out-of-control system that is feeding on itself and creating a massive disaster,” he writes. “It needs to be fixed.”

In a March 15 blog, Wieland tells prospective buyers why they should buy a new home when foreclosed homes are available at unusually low prices.

“Simply put, new is special,” he says. “Just like a brand new car, there’s a special smell, sense and feel to a brand new home. It’s a privileged feeling to know that this is your own home and no one else has lived there before you. No hand-me-down thoughts from someone else.”

Wieland also cites steady improvements in new home design, including higher ceilings, better performing appliances and the latest in cabinets and counter spaces. The new home buyer also avoids being stuck with the maintenance of the prior owner.

“The really good news is that a new home often costs little more than a used home,” Wieland writes. “When you figure in the greater warranty and the sheer pleasure of owning something that is brand new, a new home is usually the better value. Why settle for someone else’s leftover. A brand new home is special.”

Facebook and YouTube Spreading the Word on Tax Credit

NAHB is utilizing popular social networking technology to educate first-time home buyers — typically newly-married couples or recent college grads in their 20s and 30s — about the new $8,000 tax credit.

Social networking sites, such as Facebook and YouTube, are becoming the most popular way for people around the world to connect with each other and share information.

A page for the first-time home buyer tax credit has been created on Facebook, which currently has 175 million active users. People can “become a fan” of the page and access the latest information and resources on the tax credit, including a consumer-focused Q&A video and television public service announcement. Visitors can also link directly to NAHB’s Federal Housing Tax Credit Web site, which provides even more information for consumers.

NAHB has also set up its own channel on YouTube, which is the leader in online video and the premier destination worldwide to watch and share original videos with more than 200 million unique users each month. People can also see the videos referenced above and subscribe to NAHB’s video-sharing page.

NAHB is encouraging friends and family to join the Facebook group and visit the NAHB YouTube channel to help get more consumers off of the fence and into their first home.

For more information, e-mail Brooke Fishel at NAHB, or call her at 800-368-5242 x8061.

Urban Areas See Revival in Housing Construction

A new government study suggests that a substantial amount of housing built this decade has shifted from open fields on the edges of suburbia to dense central cities and their nearby suburbs. In more than half of the 50 most populous metropolitan areas in the U.S., communities at the urban core have captured a significantly larger share of their region’s new residential building permits since 2002 than in the first half of the 1990s, according to an analysis by the Environmental Protection Agency. Long-standing patterns remain: A large share of residential construction still takes place on farmland on remote fringes of metro areas. In most regions, new housing in urban core neighborhoods accounts for less than half. Nevertheless, there was a consistent increase in housing in urban centers from 2002 to 2007, and the trend could transform growth patterns in some places for decades to come. The battered economy presents challenges, with downtown housing struggling with vacancies just as exurban subdivisions are, says Joel Kotkin, a presidential fellow at Chapman University in Orange, Calif., who writes about urban history and trends. “You have to have an economy to sustain high-density housing,” he says, and most jobs are created in the suburbs. “Very few mayors focus on job creation.” (www.usatoday.com)
USA Today (3/10/09); Haya El Nasser

Young Entrepreneur Thriving in Housing Market

By taking the best of the bust and pretending he’s in a boom, Stewart Beal, the 25-year-old Eastern Michigan graduate who owns Beal Properties and Beal Inc., is finding opportunity in the midst of an economic meltdown. “The mistake I’ve seen people make is retrenching in tough times and I’m not that type of guy,” he says. “I’ll go forward…I’ll be more aggressive than the other guy. People will say, ‘You are going to get in trouble if you keep doing that,’ and I’ll say, ‘No, I’m not,’ and I’ll go and show them that I’m not.” With the deeds to 20 Ypsilanti buildings in its possession, Beal Properties rents out 120 apartments and saw its sales nearly triple from 2007 to 2008. Beal Inc. — a multifaceted company providing services from waste hauling to building maintenance to asbestos abatement — saw its sales almost double from $1.4 million in 2007 to $2.5 million in 2008. Beal bought his first property at 19 and watched the price tag of each successive building steadily drop over the past six years. His companies, he said, would be feeling more pressure if they hadn’t earned a good reputation for quality and competence before the real estate industry slid into oblivion. Beal’s companies are not entirely immune to economic conditions, however. Although 95% of his apartments are occupied, rents have stagnated. He has also had problems with Thompson Block, a derelict building he acquired through court proceedings from the city of Ypsilanti. He recognized the site’s potential and pursued it in late 2005 after receiving the loans to do so within five days. But the design process took a year and by that point the real estate market had turned. His $2.5 million loan was pulled out from underneath the project and plans, he said, were dead for about five months. “Bankers wouldn’t return my calls. It’s still too early to say, ‘Hey, we’re going to start construction soon,’ but I’m more confident than I have been.” Once construction does begin, one floor will house a music school and retailer, another a lounge, and 16 lofts will occupy the top two floors, of which eight were leased before the credit crunch killed the construction. (www.ypsilanticourier.com)
Ypsilanti Courier (3/12/09); Tom Perkins, Heritage Newspapers

Home Builders Get Creative to Survive

Jeremy Skogquist, vice president of NIH Homes in Elk River, Minn., said that business is brisk now after his company hit the skids in 2006. “We’re a family-owned business and we’re a custom builder. Well, there are a lot of them out there. We were looking for a new way to explain how we were different from all the other builders,” he said. The company sought out a sales consultant to find a way out of the slump, and the answer lay in a new marketing strategy that’s taking root with home building — they became what’s known as a “woman-centric” builder. NIH now aims its home design and marketing at women. A lot of the design features of their homes are deliberately aimed at women — a vanity that looks like it’s from a the beauty salon, little lights lining the bedroom ceiling, a spa and lots of storage. Despite these touches, the home is meant to be pleasant for the whole family. Skogquist’s sales approach now caters specifically to women, who tend to be the drivers of home purchases. Women can fill out an online survey to see which of four profiles — Margo, Elise, Claire and Maggie — fit them best and reflect their taste in homes. “When they sign the purchase agreement, I send a set of flowers to her work, saying that ‘Your new home’s going to be beautiful,’” Skogquist said. “So then all her coworkers see that, and ask who it came from.” Even if it’s formulaic, woman-centric building has brought NIH back to its peak home building levels, and Skogquist expects 2009 to be even better. (http://minnesota.publicradio.org)
Minnesota Public Radio (3/10/09); Annie Baxter

For Builders, Peace of Mind a Small Price to Pay

The nation’s largest home builders continue to tinker with numbers in hopes of jump-starting buyer demand. First it was price reductions. Then a number of additional design options were added at no cost. Then it was gas money to journey to their developments. More recently, a handful of builders began offering mortgage rates at least one percentage point below the prevailing, already attractive rates. There also is the economic stimulus plan’s $8,000 federal tax credit for first-time home buyers. The latest number they’re tossing out there is six — the number of months they’ll let a home owner go without making a mortgage payment if they lose their job. Within the past month, a number of builders — including Ryland Homes, Toll Brothers, Lennar and K. Hovnanian Cos. — all have introduced mortgage protection programs. In addition to rising unemployment, consumers are concerned about buying a house and seeing it start losing value and want to know where the bottom of the market is. “Given the decline in housing prices and the decline in interest rates, housing is much more affordable than a year ago and we still don’t see people rushing in to purchase,” said James Shilling, a real estate professor at DePaul University. “The price declines are affecting more of the mainstream” than potential job losses. Kira McCarron, Toll Brothers’ senior vice president and chief marketing officer, understands that reasoning but hopes buyers look past the market’s depreciation. “That certainly is an unknown but people who bought out of the last recession in ’91, ’92, if they were still in that property, they still would be very happy today with that purchase,” she said. “You have to take the long view. This is not a dress you buy for a season. It’s a home. That’s the core message we’re trying to put across.” (www.chicagotribune.com)
Chicago Tribune (3/13/09); Mary Ellen Podmolik

Stunned by Losses, Institutions Ask: What Now?

A new study by Greenwich Associates, a Stamford, Conn.-based consultant and research firm, finds that when it comes to future real estate investing, the news is good. Burned by the wild gyrations of publicly traded stocks, most institutional investors are rightfully pulling back from the equity markets. Less than half of institutions surveyed — 40% — say they plan to make significant changes in their allocations, and 20% of that group said they were planning to increase their investment in real estate. Of the 154 public funds making predictions, 25% said they expect to increase their real estate holdings by 2011. Only 3% said they would decrease their real estate allocations. Of the 192 corporate funds making predictions about their future portfolio mix, 17% expect to increase their real estate holdings by 2011 versus 4% planning a decrease. Those survey responses confirm what many advisors already know — real estate will continue to be an integral part of diversified portfolios. (www.nreionline.com)
National Real Estate Investor (3/9/09); Ben Johnson

Nearly 50% of Apartment Landlords Lower Rents

The deterioration in apartment asking rents reached unprecedented levels in the fourth quarter of last year, with almost half of multifamily properties in the U.S., or 48.6%, reporting declines, according to New York-based research firm Reis. If the rise in concessions were factored in, the percentage of properties decreasing rents would be well over 60%. “You’ve got a high vacancy rate of single-family homes. If the owner still owns it and it hasn’t been foreclosed, they’re renting it out,” says Victor Calanog, director of research for Reis. “You’ve got competitive property types like condos in South Florida. It’s the shadow inventory story. You’ve got an overall weakness in demand, plus the fact that there’s shadow inventory fighting with standard multifamily property now that’s really putting a lot of pressure on landlords.” Out of the 79 markets tracked by Reis, 58 are showing negative rent growth spread fairly evenly across property classes. For the fourth quarter, the top three markets with the largest effective rent declines were New York, at 1.9%; Miami, with a decline of 1.8%; and San Bernardino, Calif., down 1.4%. For the nation as a whole, the fourth-quarter decline in effective rents averaged a modest seeming 0.4%. For 2009, Reis projects a 1.7% decline, a number that it has never seen before. (www.nreionline.com)
National Real Estate Investor (2/24/09); Sibley Fleming

Mortgage, Financial Markets Slowing Housing, Builders Say

The nation’s home builders on March 11 told Congress that the housing sector is still being significantly affected by the upheaval in the financial and mortgage markets that started in 2007, and there is deep concern that these financial dislocations will increase the depth and length of the housing downturn.

Testifying before the House Financial Services Subcommittee on Financial Institutions and Consumer Credit, NAHB Chairman Joe Robson said that coordinated regulatory efforts among federal and state agencies are necessary to ensure prudent lending practices and effective consumer protections while facilitating efficient operation of the residential mortgage markets.

“NAHB supports efforts to ensure that mortgage lending occurs in a safe and sound manner and that abuses in lending practices are properly addressed,” said Robson. “However, it is imperative that any steps taken in this effort do not inadvertently or unnecessarily disrupt the mortgage lending process or consumer financing options, or increase the costs or reduce the availability of mortgage credit.”

NAHB urged Congress to implement a clear national framework for mortgage origination standards to replace the current patchwork of state and local laws, which often lead to unnecessary restrictions on mortgage credit.

“Specifically, Congress should establish a federal pre-emption statute creating essential uniformity in mortgage market standards,” said Robson.

NAHB also supports efforts to improve consumer education on financing and owning a home and believes it is important that efforts to ensure prudent mortgage lending and risk management practices as well as adequate consumer disclosures are comprehensive and uniform for all organizations involved in providing mortgage credit.

Single-family appraisal problems are an area of concern for home builders, and are contributing to the current housing and credit crisis. “Appraisers have often used sales of homes in foreclosure or other distressed property sales as comparables for appraisals of new homes without making the appropriate value adjustments,” said Robson.

At its most recent board of directors meeting, NAHB adopted policy expressing the following principles for mortgage lending:

The nation’s home builders also strongly support the use of alternative dispute resolution techniques, including binding arbitration, as the most rapid, fair and cost-effective means to resolving disputes.

“Invalidating binding arbitration provisions in contracts would undermine decades of jurisprudence strongly favoring arbitration of disputes where the parties have agreed to use the arbitration process,” Robson told lawmakers. “NAHB opposes any attempt to prohibit the use of pre-dispute arbitration in contracts.”

For more information, e-mail Scott Meyer at NAHB, or call him at 800-368-5242 x8144.

Builders and housing industry professionals should attend the 2009 NAHB Legislative Conference on Tuesday, March 24 in Washington, D.C. to tell members of Congress that housing deserves 100% of their ongoing attention so housing can once again lead the nation out of this troubled economy.

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 — especially considering the growing downward momentum in housing and the nation’s job market.

This year’s NAHB Legislative Conference on March 24 will take place earlier than the NAHB spring board of directors meeting because of the depth of the downturn and the need for a solution.

For more information and to register for the legislative conference, click here; or e-mail Molly Murray at NAHB or call her at 800-368-5242 x8282.

Mark-to-Market Issues Addressed at House Hearing

At a hearing last week on mark-to-market accounting issues by the Capital Markets Subcommittee of the House Financial Services Committee, Rep. Barney Frank (D-Mass.), chairman of the committee, and Rep. Paul Kanjorski (D-Pa.), chairman of the subcommittee, warned representatives of the Financial Accounting Standards Board (FASB) and the Securities and Exchange Commission that they must act quickly to revise the rule.

“If the regulators do not act now to improve the standards, then the Congress will have no other option than to act itself,” said Kanjorski.

Mark-to-market requires banks to value assets based on their current market price. It has been blamed by many in the financial and business community for exacerbating the current financial crisis by forcing lending institutions to write down the value of billions of dollars of their holdings — including illiquid mortgage securities — making it difficult for some of them to meet their regulatory capital requirements.

NAHB has joined a recently formed coalition that includes the Mortgage Bankers Association, Independent Community Bankers of America, U.S. Chamber of Commerce, Financial Services Roundtable, several of the Federal Home Loan Banks and others to seek solutions to the mark-to-market accounting problems that will allow for greater flexibility in applying the rules. These efforts are aimed at ending the unnecessary practice of writing down illiquid but economically viable securities, which would strengthen bank capital and provide a strong incentive to make credit more widely available.

The coalition has met with several members of Congress and submitted a letter to the Financial Crisis Advisory Group, which was established by the FASB and the International Accounting Standards Board. A letter has also been submitted to the Public Company Accounting Oversight Board, a corporation that oversees the auditors of public companies and is responsible for providing them with guidance on the application and use of mark-to-market rules.

The coalition’s efforts seem to be making significant headway. At the congressional hearing, FASB Chairman Robert Herz told lawmakers that his organization would expedite guidance on the application of mark-to-market rules within three weeks.

NAHB will continue to work with the coalition on the mark-to-market issue, but changes in this area will not directly address problems builders are experiencing with their acquisition, development and construction (AD&C) financing such as lenders requiring additional equity for outstanding credit and balking at loan extensions. These actions are largely due to the enforcement of bank regulatory real estate lending rules based on excessively low appraisals, which are applied independently of mark-to-market accounting rules.

Tackling the broader issue of AD&C lending head on, NAHB is urging regulators and lenders to give leeway to residential construction borrowers who have loans in good standing by providing flexibility on re-appraisals, loan modifications and perhaps forbearance on loans to give builders time to complete and sell their inventory.

The AD&C issue will be a major part of the upcoming Legislative Conference on March 24, where members of Congress will be asked to urge banking regulators to provide this flexibility. In addition, NAHB will seek an allocation from the financial “bailout” funds to allow banks to avoid excessive equity calls and other adverse actions on performing loans.

For more information on this issue, e-mail Scott Meyer at NAHB, or call him at 800-368-5242 x8144; or contact John Dimitri x8529.

This year’s NAHB Legislative Conference on March 24 will take place earlier than the NAHB spring board of directors meeting because of the depth of the downturn and the need for a solution.

For more information and to register for the legislative conference, click here; or e-mail Molly Murray at NAHB or call her at 800-368-5242 x8282.

Card Check Unionization Law Introduced in House and Senate

House and Senate lawmakers finally introduced the long-awaited, and confusingly-named, Employee Free Choice Act (EFCA) on March 10, officially kicking off what will be an extremely contentious debate over the future of the workplace secret ballot.

EFCA would allow labor unions to organize a workplace without holding a secret ballot vote. Instead, workers would be able to organize themselves into a union by collecting the signatures of at least half of a workplace's employees. The process, referred to as “card check,” requires publicly posting the names of everyone who signs the cards, allowing union officials, employers and coworkers to know who signed the card and who didn’t.

The employer community and many employees who have gone through a card check process oppose the effort to eliminate the current secret ballot requirements under the National Labor Relations Board (NLRB) provisions.

Employers and workers have argued that allowing unions to simply organize following a card check process would encourage unions to coerce, intimidate and harass workers to sign the cards. In Senate testimony last week, Larry Getts, an employee of the Dana Corporation in Fort Wayne, Ind., shared his experiences. “Union organizers waited for us in the break room, sat with us at lunch whether we wanted them to or not and walked us to our cars at the end of the day. The entire time they were constantly badgering us to sign the cards," he said.

Under current law, unions conduct card check campaigns in workplaces. Once they have obtained 50% of the workers’ signatures, the process then moves to a secret ballot, where workers make a final decision whether to unionize. While employers may not be aware that a card check collection is proceeding, they have the opportunity to address the issue with workers after the collected cards are submitted to the NLRB and before the secret ballot election takes place.

In addition to eliminating the secret ballot requirement, EFCA would create a mandatory arbitration requirement on first contracts if workers and employers are unable to settle their differences within 90 days of commencing negotiations.

The EFCA House bill — H.R. 1409 — was introduced with 223 cosponsors. The Senate companion legislation — S. 560 — was introduced with 40 cosponsors.

It is not yet clear when the legislation will head to the House or Senate floors, although rumors continue to circulate that the Senate will consider the legislation first, with many House lawmakers unwilling to vote on the legislation until the Senate can “prove” that it can pass it.

NAHB will continue to oppose enactment of EFCA, and the card check issue will be one of the priorities considered at the NAHB Legislative Conference on March 24.

To view the legislation, click here and type the bill number in the box in the center of the page.

For more information, e-mail Jenna Hamilton at NAHB, or call her at 800-368-5242 x8407.

This year’s NAHB Legislative Conference on March 24 will take place earlier than the NAHB spring board of directors meeting because of the depth of the downturn and the need for a solution.

For more information and to register for the legislative conference, click here; or e-mail Molly Murray at NAHB or call her at 800-368-5242 x8282.

Attend Crucial Legislative Conference on Tuesday, March 24

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.

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 as Glum in March as They Were in February

Builder confidence in the market for newly built single-family homes remained unchanged in March as economic woes continued to take their toll on potential buyers, according to the latest NAHB/Wells Fargo Housing Market Index (HMI), which was released on March 16. The HMI held steady at 9 for March, marking the fifth consecutive month that the index has languished in the single-digits.

“Home builders are hopeful that the recent economic stimulus package, and particularly the first-time home buyer tax credit that it included, will have a positive impact on consumer behavior and home sales as the prime home-buying season gets underway,” said NAHB Chairman Joe Robson. “But it’s still too soon to tell how much of an impact that will be, especially as builders find potential buyers are reluctant because of uncertainty about their future job security and the overall economic outlook.”

“The economy continues to be the main drag on home sales activity right now, in terms of consumer confidence across most of the country,” acknowledged NAHB Chief Economist David Crowe. “What’s more, home builders report that tight credit conditions are posing a further hurdle, especially for potential first-time buyers, while potential trade-up buyers are finding it very tough to sell their existing homes so they can make a move.”

Derived from a monthly survey that NAHB has been conducting for more than 20 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales, sales expectations for the next six months and the traffic of prospective buyers. Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

Two of the three HMI component indexes were unchanged in March, with the index gauging current sales conditions holding at 7 and the index on sales expectations in the next six months holding at a record low of 15. The index gauging prospective-buyer traffic dropped two points to 9.

Three of the four regions of the country saw no change in their HMI reading in March. The Midwest, South and West each held at near-record lows of 8, 12 and 5, respectively. The Northeast rose a single point from a record low of 8 in February to 9 in March.

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.

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.

Subscribe and get downloadable Excel tables that feature the housing starts forecast, gross domestic product (GDP), demographics and more.

Eye on the Economy: Home Sales Should Stabilize Soon

As we expected, growth of real gross domestic product (GDP) for the final quarter of 2008 has been revised down substantially by the Commerce Department — from an annual rate of -3.8% in the “advance” report to -6.2% in the “preliminary” report. The revised number is the sharpest quarterly contraction since the depths of the 1982 recession.

The downward revision for the fourth quarter reflected weaker numbers for many components of GDP, including consumer spending, business inventory investment, net exports and nonresidential fixed investment — including production of nonresidential structures.

The housing production component of GDP (residential fixed investment) was revised only slightly, showing a 22.2% rate of contraction that knocked 0.78 of a percentage point off the overall GDP growth rate for the fourth quarter.

That’s quite a large drag from a relatively small component of the economy (about 3%) that’s been falling for three full years.

The stock market apparently had hit bottom early last November, and the market managed to stage a modest recovery over the balance of 2008.

But then the equity market took another major leg downward, carving another $2 trillion from household net worth and decimating the attitudes of consumers, businesses and financial market participants alike.

The market has rallied in recent days, on the backs of financial companies of all things, but the market remains deeply in bear territory and the durability of the recent rally is highly in doubt.

Available evidence on economic activity for the early part of 2009 points toward contraction of all major components of real final sales (inflation adjusted) other than spending by the federal government on national defense.

Another major decline in GDP definitely is in the cards for the first quarter — we’re currently estimating -5.5% — even if the stock market continues to improve over the balance of this month.

With respect to housing production, we’re expecting residential fixed investment to contract at an annual rate of about 40% in the first quarter, the largest quarterly contraction of the entire downswing. This is virtually inevitable in the wake of a massive downshift in housing starts late last year and early 2009 that’s taking residential construction put-in-place down sharply at this time.

The current recession began at the end of 2007 when the job market started to lose ground, and the labor market has been deteriorating rapidly through February. According to the latest figures, nonfarm payroll employment has declined by 4.4 million since the recession began, and more than half of that decline, 2.6 million, has occurred during the last four months.

Residential construction (builders and specialty trade contractors) continues to be an important part of the deteriorating employment story, shedding 911,000 jobs since its peak in February 2006 and losing 226,000 during the last four months alone.

The unemployment rate has been moving up substantially from the cyclical low of 4.4% in 2007 and major increases have been recorded in recent months.

Indeed, the civilian unemployment rate jumped from 7.6% in January to 8.1% in February, the highest reading since 1983. The Labor Department’s broadest measure of labor “underutilization,” including discouraged workers and those working only part time for economic reasons, soared to a lofty 14.8% in February — up by more than five percentage points over the past year.

Further deterioration of the labor market is inevitable, for both the housing sector and the overall economy. We expect large payroll job losses to persist through the second quarter and we expect the unemployment rate to peak out above 9% around the end of the year.

Large cumulative declines in home prices in many areas, combined with attractive interest rates on prime conventional conforming fixed-rate mortgages (salable to Fannie Mae or Freddie Mac) and an FHA/VA loans, have generated substantial improvements in housing affordability measures even as the deepening recession has taken a toll on median household income.

Surveys of consumer sentiment (University of Michigan) showed relatively large proportions of households saying in both January and February that it was a “good time” to buy a house, primarily because of low prices and low interest rates.

Improving sentiment has not yet shown through in official home sales data. Sales of new homes, as reported by the Commerce Department, and “pending” sales of existing homes reported by the National Association of Realtors® (both based on contract signings) declined substantially in January, reaching new cyclical lows.

NAHB’s proprietary survey of large single-family builders, available through February, is providing some tentative encouraging signs.

Seasonally adjusted gross sales (new orders) have been essentially flat since last November, and seasonally adjusted net sales showed a modest recovery over that period as sales cancellations continued to move downward in absolute terms.

NAHB’s broad-based single-family Housing Market Index also was essentially flat during the November-February period, albeit at or near the record low for the series, and preliminary tabulations point toward more of the same in March.

NAHB’s baseline forecast shows a bottoming-out of sales of both new and existing homes in the first quarter of this year, aided and abetted by key provisions of the economic stimulus bill that was signed into law on Feb. 17 — the $8,000 refundable, but not repayable, tax credit for first-time buyers and the boosting of loan limits for both the government-sponsored enterprises (GSEs) and FHA back to 2008 levels.

The economy recently has gone from bad to worse, despite a variety of economic policy supports put in place late last year.

The fate of the economy and the housing sector now depend very heavily on the strength of President Obama’s three-legged policy stool, along with complementary monetary policy support from the Federal Reserve. Policy actions by foreign governments also will be part of the policy puzzle.

Regarding the credit markets, the recently launched Term Asset-Backed Securities Loan Facility (TALF), a cooperative venture involving the Fed and Treasury, holds out promise for selected consumer and small-business asset-backed security (ABS) markets — and possibly for commercial as well as private-label mortgage-backed securities markets.

But it’s too early to tell how much difference the much-heralded TALF will make.

The resolve and skill of economic policymakers will determine the length and depth of the current recession and the dimensions of the ensuing recovery and expansion.

It does appear that policymakers have agreed, explicitly and implicitly, to prevent more “systemically important” major financial institutions from going belly-up. (Lehman Brothers was an unmitigated disaster for the markets.)

If that’s the case, and if a decent measure of financial stability is restored in reasonably short order, then the recent judgment by Fed Chairman Ben Bernanke that, “…there is a reasonable prospect that the current recession will end in 2009 and that 2010 will be a year of recovery,” looks like a good bet.

That’s the guts of NAHB’s current baseline forecast, although the range of risk remains unusually wide.

NAHB analyzes the economy from the point of view of the housing market every other week in the free e-newsletter, “Eye on the Economy.” The preceding is a reissue of the March 11 edition. To subscribe to “Eye on the Economy,” click here.

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

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.

Subscribe and get downloadable Excel tables that feature the housing starts forecast, gross domestic product (GDP), demographics and more.

Register online for the 2009 Spring NAHB Construction Forecast Conference and webcast on Thursday, April 23 in Washington, D.C. where nationally-recognized housing and economics experts will provide answers to the most critical questions facing the industry today.

Experts will discuss regional and national trends, the state of the mortgage finance industry and housing prices.

In response to today's economy, NAHB is lowering registration fees by $75. For more detailed information and the latest agenda, visit www.nahb.org/CFC.

Online registration is available through Friday, April 17. To register and learn more, visit www.nahb.org/CFC.

For webcast information, visit www.nahb.org/CFC. The purchase price includes unlimited access to the webcast archive for three months and electronic copies of the presentation materials.

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.

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

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.

Subscribe and get downloadable Excel tables that feature the housing starts forecast, gross domestic product (GDP), demographics and more.

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.

Attend Free Webinar on Strategic Planning on April 7

The webinar will provide step-by-step guidelines on how to efficiently implement a strategic business plan with an efficient “One-Page Strategic Plan.”

For more information, e-mail Casey Keller, CEDIA director of curriculum and learning, or call 317-328-4336.

The Custom Electronic Design & Installation Association is an international trade association of companies that specialize in planning and installing electronic systems for the home. These systems include home networking, home automation and communication systems; media rooms, single- or multi-room entertainment systems; and integrated whole-house subsystems providing lighting control, security and HVAC systems.

Free Business Survival Tips Extended: Now Online Till April 17

Now through Friday, April 17, 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:

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.

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

What to Do When Money Is Tight

Almost all businesses will have a cash crisis at some time or another. How you manage that crisis is key.

The steps you take — or don’t take — will affect your reputation and that of your business. It will affect your relationships with employees, vendors and bankers. And, ultimately your decisions will determine if your business will survive.

While this may sound dire, there are several steps you can take to improve your cash crisis quickly:

Jennifer Elder is a CPA, certified management accountant (CMA) and the chief financial officer for Tiffany Construction and Development Corp. in Melbourne, Fla. For more information, call Elder at 321-259-5001 x110.

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.

Builders’ Tip: A Coping Table for Crafting Molding



	Click for larger image.

As much as I appreciate the delicate craft of coping moldings by hand, a jigsaw does make the work go much more smoothly.

However, even with a jigsaw, it can be difficult to hold the foot of the saw in plane with the 45-degree bevel on the end of the work piece while following the lines of a complicated, narrow molding profile.

The coping table illustrated in the accompanying drawing solves that problem for me.

The box’s dimensions allow ample hand room for holding the work steady, and my fingers remain clear of the blade. During a cut, the saw rides on the angled side of the coping table.

Because I made the table out of the sink cutout of a plastic-laminate countertop, the saw glides easily over the plastic surface.

I use a Bosch 1581 variable-speed jigsaw with a T119BO coping blade for this work, but any jigsaw with a roller guide and a fine-tooth, scroll-cutting blade should work well.

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

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.

Go Back to Basics: Take the Time to Relearn Your Market

Most of us don’t think about the basics anymore. We passed the basics years ago and have moved on.

We know the markets we work in and what to do to make our communities successful. We operate in our “comfort zone.”

But what would happen if we went back to the basics every time we started a new project.

For each new project, you have to conduct research like you have never been in the area before.

I am not talking about statistics. Everyone knows you have to know your competition, what floor plans they are building, their pricing, any incentives, etc.

If you have been in this business for any length of time and you have not been doing market research, you have been very lucky. I am talking about determining what marketing opportunities are out there and finding out what works.

Researching the population is one of the first things you need to do when you go to a new area.

It sounds simple, but I would bet most of the marketing people, once they’ve worked in an area for awhile, research the market again to see what might have changed.

Who are your buyers, where are they coming from, are they local or transferring? Who are the major employers and where are they located? Has there been a shift in the ethnic make-up of the community?

The answers to these questions are important in order to effectively target the right buyer for the communities you are marketing. And, over time, the answers to these questions have probably changed.

Think about it. If your market is shifting from a transferee market to more local, move-up buyers, what is your resale market like?

The local buyers most likely will have a house to sell before they can buy in your community. Is there anything you can do to help them move their existing home?

A lot of times when large companies “downsize,” those people go out and start up smaller companies. We have seen a lot of that in the Research Triangle area of North Carolina where I work.

Many areas are seeing a shift in the ethnicity of their communities. If that is the case, finding out how to reach these new groups is very important.

My challenge when starting a program for a small regional builder from another market was how to reach what was fast becoming a purely military market of buyers.

As a group, these prospects have very specific spending habits and patterns, so much so that the merchants and real estate agents in the area do their heaviest advertising around military paydays.

Also, the choice of a big purchase by this buying group boiled down to either a car or a house. My challenge was to convince these prospects to buy a house. It also helped that the builder had a relationship with a local real estate company and worked with them to create a referral program for move-up buyers in that market.

Just about every real estate agent knows which publications work best in their market, but have you looked at them lately?

Do you know their distribution rates? Who are their other advertisers? What additional opportunities are available through the Internet? What are other builders in the market doing — and is it working?

As we all know, the Internet has become an integral part of any successful marketing campaign. Research has told us that the majority of buyers start their home search on the Internet. They don’t tend to buy through the Internet, but they do use the Web as part of their elimination process.

Even with the impact of the Internet growing in real estate, don’t overlook your traditional print publications. Just make sure you have their current readership statistics.

The publications look at them regularly, just like we look at traffic counts. So ask for them, study them and compare them.

Wouldn’t it be helpful to know which of the major publications in your area has the highest distribution to the human resources departments of the major employers? You may not be able to reach the people individually, but you could advertise in the publication handed out to potential employees moving to the area.

Likewise, if your market has a growing Hispanic population, you will need to know the best Hispanic publications in your area.

Another thing to look into is additional opportunities for Internet advertising. Most publications also have Web sites. If you are advertising in the publication, do you have an opportunity to advertise on the Web site? Again, you will want to know the statistics on the site.

Finally, for my project, when looking at how to reach my military audience, I found a company that sold advertising on delivery trucks that made 90% of their deliveries on base. I was able to put information, including our Web site, on the two side panels and on the back of these delivery trucks.

Like it or not, no matter where you are, your market has changed and new home sales and marketing have changed with it.

Take the time to relearn your market. The more knowledgeable you are, the more successful you can be.

I also believe everyone should step out of their comfort zones if given the opportunity.

I had a great learning experience by taking a risk and trying something new when I started a sales program for a regional builder.

Not only do you give yourself the chance to build on what you know, you may gain knowledge and learn new methods. And if you’re not careful, you may learn something about yourself in the process.

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 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.

CRM Can Help Salespeople Become More Productive

By Steve Lewkowitz, CDC Software
With builders needing a bigger share of a smaller pie just to keep afloat, customer relationship management (CRM) applications that automate and integrate sales and marketing processes are tools that can help builders pull in more leads at lower costs, while also helping sales agents prioritize follow-ups more effectively and make more sales.

Robust CRM applications that have both marketing and sales modules can help ensure that the right leads are generated and delivered to the right salesperson at the right time according to predefined criteria.

A good, integrated CRM system enables builders to determine the quality and urgency of the leads generated, as well as embeds the sales steps and stages into the system to ensure that every salesperson is following approved processes in order to close the sale. It essentially takes the guesswork out of home sales — which can be especially important with less experienced sales agents — and ensures that the sales team is following best practices.

Such a system should be flexible enough to allow individual builders to determine the details of these steps and processes — so that they can apply their knowledge of the market, incorporate their corporate culture and even integrate the proven processes of their company’s top sales performers within the system.

CRM systems enable salespeople to develop clear action plans for interacting with prospects, and because the system is also a central repository of prospect information, sales agents can tailor these action plans to individual prospects based upon demographics and preferences, including how they prefer to be contacted.

These systems foster smarter, more strategic selling and, ultimately, higher sales conversions and happier home owners.

For example, a CRM system can prompt a sales agent to invite potential “active adult” buyers to a weekday barbeque, because that’s when the prospects may be amenable and available to visit the community for such an event.

On the other hand, the system can also prompt other sales agents to call busy, young professionals in the evening or on weekends about another community, not because the community is different, but because the information about these prospects indicates that phone calls take less of their time and that’s how they want to stay informed.

While the quality of a sales team’s strategic approach is indispensable to increase sales, sales performance can still boil down to basic productivity. No matter how hard they work, there’s still a limit to the number of activities a salesperson can fit into a day.

Accordingly, a builder can serve his sales force more effectively by providing tools that will save the team time and increase its productivity.

A sufficiently robust CRM system can become a central resource to salespeople, making home buyer information quick and easy to access at any time. It can also become the engine that drives the sales process — so the more sales productivity tools the system has, the better.

Some systems, for example, offer personalized dashboards that list top contact information, pending activities, new leads in order of priority and deadlines (such as mortgage and contract contingencies and deposits due) — all in a single screen that usear can set as their home page.

In addition, systems that link to users’ computer-based calendars can integrate appointments and other scheduled activities for easy reference on the same screen, without switching programs. These time-saving features keep salespeople productive and organized.

Administrative tasks, while important to company operations, take away from selling time. Good technology support helps salespeople cut the time they spend on paperwork, reporting and communications and frees up their time for more sales-oriented tasks.

For example, because CRM systems can track sales steps and details, managers can monitor sales progress accurately through the system and save the meeting time for discussions about sales techniques, role playing and other ways to boost sales.

Also, some systems can interface with support companies like mortgage companies and design centers in order to share timely information that will enable the sales process to move forward quickly. Two-way links to options selection features and design centers from the CRM system also can streamline and simplify the home-configuration process.

Generating quotes and contracts and obtaining management approvals can be another impediment to an efficient sales cycle. CRM workflows and tools can help deals flow through the quote-to-contract process more quickly by automating the assignment of steps to the appropriate stakeholder and notifying managers of needed approvals without any effort from the salesperson.

Each of these CRM productivity tools and process-support features is capable of increasing the ease and efficiency of the sales process.

Together, they add up to a significantly smoother and faster sales cycle — and increased sales productivity.

While, a CRM-supported sales process is smarter and more strategic, the increased efficiency does not cut corners in customer service or sacrifice the customer experience.

In fact, this type of robust CRM system does just the opposite. It infuses the sales process with a more personalized tone and approach that creates a higher chance of sales success and can increase the sales conversion rate.

Steve Lewkowitz is the professional services director at CDC Software, providers of Pivotal CRM for home building and real estate. For more information, e-mail Lewkowitz, or call him at 732-297-4060.

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

With the Right Approach, 50+ Holding Up as a Good Market

Even in today’s tough marketplace, active adult housing represents a good opportunity for builders, especially those who invest in models, top quality sales professionals and a club house, according to Janis Ehlers, president of The Ehlers Group, and Margaret Wylde, president of ProMatura Group, who spoke at the International Builders’ Show in Las Vegas in January.

The two shared ProMatura telephone survey results from those who had purchased a home in the last two years in 135 active adult communities around the nation. The surveys were conducted in January.

The survey found that 39% learned about the community in which they bought through word-of-mouth referrals, slightly higher than the 37% who responded to marketing efforts by the community. That finding provides clear evidence, both Ehlers and Wylde agreed, of the importance of customer service and establishing satisfied customers among members of the 50+ age group.

“Communities where there is one-on-one contact with the builder offer an excellent opportunity to forge friendships with customers,” said Ehlers. “Key in on the customer relationships,” she said.

Of those 50+ buyers who discovered their new community by being told about it, 56% were directed to the place they bought by children and other family members and 38% were sent by friends; by comparison, only 6% were led there by Realtors®.

Of those buyers who learned about the community from marketing, newspaper ads and a Web site on the Internet were the most effective approaches, cited by 37.2% and 20.9% of the survey respondents, respectively.

But Ehlers recommended revising marketing plans to better utilize a variety of advertising, publicity and promotional efforts. Additionally, she said, e-marketing techniques offer opportunities to stay connected with prospective 50+ buyers — including e-blasts, e-newsletters and e-correspondence.

Sales representatives strongly influence the purchase decisions of the active adult customer, both Ehlers and Wylde emphasized, and they cited the value of cultivating an expert in-house sales team that receives ongoing training in the skills they need to sell to this market.

On average, in their search for a new home active-adult buyers shopped 4.6 communities and visited the place they eventually bought 3.8 times, the survey showed.

It took an average of 7.8 months for them to make a final decision, with half taking less than six months and half taking longer.

“Builders need to look at their communities through the eyes of their customers,” said Wylde. “Especially when sales are slow, refreshing and rejuvenating signage, landscaping and exteriors can bring new life to a community.”

According to Wylde, keeping current with market conditions is especially important in today’s uncertain economy. Builders need to keep on top of what their prospective customers are willing to pay and gauge the need for incentives. In the survey, 49% said an incentive was offered, and Wylde said that incentives need to be significant in order to be effective, perhaps equivalent to more than 10% of the selling price.

“When prospective buyers may take up to eight months to make their buying decision,” added Ehlers, “marketing strategies need to adapt to their timeframe. Keeping buyers engaged and returning to the community takes a creative commitment.”

Among the attributes that influenced purchase decisions, according to the survey, were:

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

Award-Winning Universal Home Has Personality to Spare


	Universal design and personality go hand-in-hand at the Freedom home in Tampa, Fla.

The Freedom home by New Millennial Homes of Tampa, Fla. is a pioneering, life-enhancing, turnkey home perfectly suited for disabled returning veterans, older adults and people with special needs.

The home, which brims with personality and architectural details that blend with its accessible features, was one of four recipients of the 2008 Livable Communities Awards, sponsored by AARP and NAHB. New Millennial Homes received the award in the category of Builder Up to 2,500 Square Feet.

AARP and NAHB are accepting entries for the third annual Livable Communities Awards, which honor forward-looking housing industry professionals who have designed, built or remodeled creative and unique homes and communities that improve the daily comfort, ease of use and safety of residents. The deadline for applications is June 5.

The Freedom model features slip-resistant interior and exterior surfaces, extra-wide doorways, ADA-compliant plumbing and kitchen appliances, adjustable shelves and many other features that make this home easy to navigate and live in for the long term.

In the kitchen, for instance, the cabinets and drawers have full-extension hardware and pullout shelves for easy access. All the appliances are ADA-compliant and all have been incorporated into a 34-inch cabinet height for ease-of-use. The kitchen’s island was cleverly designed to conceal the view of the open space below the sink that is needed for wheelchair access.

The kitchen also features a continuous countertop and a strategically located pullout work surface that is concealed behind a cabinet door when not in use. For added convenience, there is a pot-filler above the smooth top stove as well as strategically located switches for the hood vent, stove light and under-cabinet lighting.


	The master suite features its own no-step entry and a closet with a pull-down closet rod and adjustable shelves.

There is an accessible no-step entrance/exit in the master suite as well as a closet in the master bedroom with a pull-down closet rod and adjustable shelves.

The fully-accessible master bath has an accessible toilet and plenty of room to maneuver a wheelchair. The bath also features a no-threshold shower with a fold-down seat, an adjustable-height showerhead, multiple grab bars for convenience and transfer options and dual shower curtain tracks that offer the user multiple privacy options.

All the electrical switches are rocker-type switches in contrasting colors that are located no more than 48 inches above the finished floor for easy access and ease-of-use. Likewise all outlets and phone and cable jacks are located 18 inches above the floor. An additional phone jack is also appropriately located in the master bath.

To keep long-term utility costs affordable for its occupants, New Millennial Homes loaded the Freedom model with EnergyStar appliances, energy-wise light bulbs and ceiling fans and state-of-the-art insulation.

The home also features low-maintenance landscaping that accents the accessible passageways to the home.

With an eye toward future use, the builder also included additional electrical wiring in the walls that will enable future home owners to reposition switches and jacks to better fit their specific needs.

The Livable Communities Awards this year have added new categories to recognize architects and planners for home and community design. The awards previously just recognized builders, remodelers and developers.

For more information about the Livable Communities Awards, or to apply, visit www.NAHB.org/livablecommunities or e-mail Blake Smith at NAHB, or call him at 800-368-5242 x8583.


	The no-threshold shower features a fold-down seat, multiple grab bars and an adjustable showerhead.

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.

Reposition Your Company to Work Through the Downturn


	Mark Richardson

Big remodeling projects are no longer high priorities for most home owners during these difficult economic times so, to get through the downturn, remodelers must reposition their companies to meet home owners’ changing needs.

Mark Richardson, CR, president of Case Handyman and Remodeling based in Bethesda, Md., has been down this road before.

During the last several decades, Richardson, a 2008 inductee into the NAHB Remodelers National Remodeling Hall of Fame, has changed his business to adapt to economic times — both good and bad — and he’s done so successfully.

He knows this year will be even more challenging, but he is making more business adjustments based on lessons learned last year and expects 2009 to be a growth year for his company.

“We look at our business like an investment portfolio with diversified business assets,” he says. “The proper blend of the portfolio helps to get you through bumpy markets. A lot of remodelers don’t have this balance, which puts them at high risk.”

During the last 30 years, Case adjusted and diversified its business assets to address several different market segments. In the 1980s, Case focused on design and build work. The company launched its handyman services in the 1990s, as well as a specialized bath division late in the decade. The company also began a national franchise operation.

The company recently launched a training division, the Case Institute of Remodeling, and created such licensed products as Case Handyman in a Box, a module for instructing remodelers on how to add handyman services to their business.

Repositioning a company to a changing market requires focusing business resources on your potential customers’ needs, Richardson says. Case has stepped up marketing and positioning its handyman division because more home owners are interested in smaller, fix-it jobs than larger remodeling projects.

The company has also begun using the Internet to reach more potential customers.

Almost all the company’s printed marketing materials now drive potential clients to the Case Web site — a more powerful marketing tool that has information about all the company’s services, plus sample projects, information that won’t fit in any single, printed marketing piece, Richardson says.

To drive potential customers to the Web site, Case print materials now direct consumers to the Web site for design ideas, suggestions about remodeling projects, scheduling appointments and more. To help them navigate all the information, the Web site also features several videos and interactive tools.

Another sales strategy Case is using in this time of scarce leads is team selling. Using this approach, two people visit a house, examine it and propose solutions to improve it. A team approach, Richardson says, enables Case to leverage its expertise and match employees' skills to the anticipated needs of the home visited so they can present appropriate solutions.

With team selling, Case is able to show the depth of its expertise during a sales call, while customers have a better chance of getting the services they want.

Not only has team selling enabled Case to set itself apart from its competition, it has helped the company improve its close rate. To view a Case video about team selling, click here.

Richardson says that remodelers do have to work harder to find and keep clients, but even in tough economic times, “remodeling does go on.”

“Home owners still need professional services and help in maintaining their home,” he says.

Panelized Construction Can Help Builders Trim Overhead


	Incorporating panelized building systems and components potentially can help builders survive the downturn by operating with a smaller staff and reducing their overhead.

A new, free NAHB video by the Panelized Building Systems Council and Building Systems Councils shows how traditional home builders can incorporate panelized building systems or components into their home building operations, a transition that potentially can help them survive the downturn by enabling them to operate with a smaller staff and reduce their overhead.

The video, available at www.nahb.org/panelizedvideo, shows builders how panelized manufacturing techniques, essentially outsourcing the creation of walls and trusses in a controlled factory environment, enable builders to focus on revenue-generating sales rather than more labor-intensive onsite construction.

“Panelized construction is something I think builders should strongly consider because, in today’s volatile housing market, adopting components or whole house packages can save a builder’s business,” said Tom Mason, president of the Panelized Building Systems Councils and the sales manager of Wausau Homes, a panelized and modular home manufacturer based in Wisconsin.

He said panel manufacturers offer highly customizable homes and can create any home more quickly and efficiently than traditional site-built techniques. “The benefits add up quickly.”

“Panelization saves a builder time and money during the building process by expediting the construction timeline, reducing or eliminating material exposure to the weather and reducing material theft on the job site,” he said.

Panelization also helps on the financing side, according to Mason. The quicker a home is built, the less a builder pays in carrying costs and construction loans.

When considering green building, Mason said panelized homes are a natural fit because most of the components of a home’s construction are monitored and controlled in a factory environment. Panelized construction techniques are recognized by NAHB’s National Green Building Standard for their efficient use of building materials.

“I am involved in a number of industry groups and I always hear builders’ concerns about the construction process,” said Mason. “It amazes me how so many of those concerns can be addressed and solved by incorporating panelized home construction strategies.”

Members who want to learn more about the systems-built industry can subscribe to the NAHB Building Systems Councils free e-newsletter, the Systems-Built Advantage.

Earn Professional Designations at NAHB Spring Conferences

Members attending the 50+ Housing Symposium on April 27-29 at the Marriott Philadelphia can take the three required courses for the Certified Active Adult Specialist in Housing (CAASH) designation. The CAASH designation gives housing professionals the essential knowledge, tools and skills to serve the rapidly burgeoning 50+ market.

In addition to the pre-conference courses, the symposium offers a wide range of education sessions and two active adult community bus tours.

To register for the conference, visit www.nahb.org/Build4Boomers. Advance registration ends Friday, April 3.

Members attending the National Green Building Conference on May 8-10 at the Hilton Anatole in Dallas can take pre- and post-conference courses required for NAHB’s fastest growing designation, Certified Green Professional (CGP).

The CGP designation teaches builders, remodelers and other industry professionals techniques for incorporating green building principles into homes using cost-effective and affordable options.

A graduation ceremony for the 2009 class of Certified Green Professionals will also be held during the conference.

In addition to the CGP courses, the conference will hold more than 30 education sessions.

Education Calendar

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.

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.

Cutting-Edge Award Winner a Stop on Green Home Tour

Attendees at the NAHB National Green Building Conference in Dallas on May 8-10 will have the opportunity to tour a state-of-the-art sustainable home three years after it was built and see how it continues to measure up for the architect/owner who designed it.

The home received the EnergyValue Housing Award (EVHA) in 2006, a program co-sponsored by the NAHB Research Center and the U.S. Department of Energy. It was built by Don Ferrier, a green builder for 25 years whose projects have racked up numerous awards and accolades testifying to the company’s expertise and forward-thinking business practices.

The house is one of six homes and remodeling projects in various stages of construction that will be included in a tour of green homes on Friday, May 8.

“The design represents a consciously integrated, holistic approach to energy efficiency and sustainability,” the architect/owner said in his application for the EVHA. “All aspects of the design interplay with interior functions, the movement of the sun and the variability of the seasons. The intent was to create a home design that would be sensitive to the old-growth natural setting, optimize energy efficiency, provide a high level of comfort with natural daylighting and natural ventilation, and be virtually maintenance-free. All materials chosen were selected based on the principles of sustainability, low-toxic emissions and environmental impacts.”

The home was built on a site surrounded by mature cottonwood and pecan trees — old growth that Ferrier wanted to disturb as little as possible. Then, the home was oriented to take advantage of southern exposure that maximizes this combination of natural light and solar heat gain in the winter while allowing windows to be shaded by the tree canopy in the summer.

A seasonal creek bed, its sides eroded, meandered through the site. During site development, the creek was improved to help it maintain rainwater and a new water feature — which now attracts frogs, toads and other bug-eating creatures — constructed near the home.

There’s also a crawl space under the home — an unusual feature in the Dallas area, where most homes are slab on grade. The crawl space is sealed and conditioned, acting as a heat sink in the summer and providing radiant heat in the winter. The crawl space is also pressurized and takes the place of ducts.

The driveway is made with permeable material road base with decomposed granite for topping.

The bedrooms have an eastern exposure, while the rooms that don’t require as much lighting and don’t have windows — closets, laundry and mudroom, and general storage — are on the west side. The living areas and kitchen are in the middle.

The prototype air conditioning system features a small water-tower chiller in which a heat pump chills water to cool a forced-air system. Spraying water on the coils while drawing air across them greatly increases the cooling effect. Additives in the water keep away mold. “It’s a neat system,” he said.

A member of the Structural Insulated Panel Association for 15 years, Ferrier is a firm believer in the resource- and energy-efficiency of SIPS construction. The first floor of the tour home is constructed of insulated concrete forms while the second floor and roof are made of SIPS. “The SIP industry and the ICF industry have teamed up to get an International Code Council detail for connecting a SIP roof to a ICF wall,” creating a super-insulated, extremely air tight shell, Ferrier said.

The home is topped with an aluminum-zinc alloy standing-seam roof (Galvalume) that reflects about 75% of the sun’s heat, “a great radiant roof” for the Dallas-Fort Worth area, he said.

Four years after Ferrier Custom Homes started the project, Ferrier said he’s happy with how the home turned out. The owner has added decks and a storage shed under the carport and is working on other improvements, including a rainwater collection system to improve the home’s water efficiency. The original two-sided Rumford fireplace between the great room and dining room has since been closed up on one side after the owner realized that two sides were not as efficient.

For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132.

“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.

The Certified Green Professional (CGP) designation teaches builders, remodelers and other industry professionals techniques for incorporating green building principles into homes using cost-effective and affordable options.

Earning the CGP demonstrates to clients and peers your commitment to the best and latest in green building practices and techniques. More than 1,000 people have earned the CGPdesignation to date.

Attend the 2009 National Green Building Conference in Dallas on May 10-13 to learn more about the critical paths to green building, and to participate in interactive sessions and be part of the driving force for the green building and remodeling markets.

The examples are drawn from decades of experience of land developers, home builders and urban foresters.

Recycling Construction Waste a Success for St. Louis Builder

With a little advance planning and the assistance of a St. Louis-area recycling company, Matt Belcher of Belcher Homes in Wildwood, Mo., last year diverted from area landfills almost 400 tons of concrete, masonry, framing and other demolition debris from his new home construction and renovation jobs.

And he expects to increase that volume. “Each time, we try to get a little more. Practice makes perfect,” he said.

As a green builder, when Belcher wanted to explore the feasibility of deconstructing homes on infill lots rather than razing them, he went for advice to a friend who was employed by Eco Recycling. That company started out primarily as a concrete crushing business, working with road construction crews on local highway renovation projects, but has since expanded its business into residential recycling.

“Whenever we were going to take a home down I would call him, and he would meet me at the site and advise me on what we could try to recycle,” Belcher recalled.

In his first project, Belcher was able to recycle 30% of the demolished building. In his latest home, he saved 80% — aided by the expanded list of materials that Eco Recycling is able to accept for recycling and resale — and the fact that the company can do most of it onsite.

They’ve got it down to a system now, Belcher explained. First, Belcher’s crews remove the appliances, pipes, doors and cabinetry and other materials that can be salvaged for other uses or sold for scrap. For the latest project, Belcher wanted to reuse as many of the doors in the old house as possible for the new house he was building for the existing property’s owners — partly to honor the wishes of the owners’ little girl, who was nervous about the idea of her home being demolished, he said.

“The biggest thing was their daughter — she was a little apprehensive about tearing the house down, and she wanted her old bedroom door on her new bedroom,” Belcher said. “We took it off and wrapped it in bubble wrap to protect it while it was in storage.”

The cabinets were also saved to be used as storage in the garage of the new house, Belcher said.

Then, using a bulldozer with an articulated thumb on the bucket, Belcher crushed the remainder of the home into the foundation and loaded the contents into dumpsters, which were transported to Eco Recycle to be separated for future use.

“The concrete gets crushed and is used for aggregate or fill,” he said. “In fact, I haven’t bought a load of aggregate for a couple years now.” Instead, Belcher said he uses the recycled material from his job sites. Masonry and brickwork are also crushed and sold, while unusable framing is shredded for mulch and old window glass crushed and recycled.

Now that Belcher has experience in reusing and recycling, the costs involved in taking the time to remove salvageable materials “is about exactly the same,” as hiring a demolition company, he said. “There is no increase to the client’s budget.”

However, there is added customer satisfaction, Belcher said. “Our terrific clients allow us to continually improve the way we do business,” he said.

For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132.

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.

Earning the CGP demonstrates to clients and peers your commitment to the best and latest in green building practices and techniques. More than 1,000 people have earned the CGPdesignation to date.

The examples are drawn from decades of experience of land developers, home builders and urban foresters.

New Designation Educates Brokers on Green

The National Association of Realtors® has seen an enthusiastic response to its new “Green Designation” program tailored to the needs of real estate brokers.

Seeking to attract home buyers interested in the potential cost savings and health benefits of green homes, brokers were among the first in the housing industry to embrace the NAHB Certified Green Professional educational designation.

Under the new Realtors® program, designees are trained to become a “a positive force for creating sustainable and energy-efficient communities,” according to the NAR Green REsource Council, which administers the designation.

“Promoting green practices among Realtors® brings our industry one step closer to transforming the market for green and increasing consumer awareness,” said NAHB Green Building Subcommittee Chairman Eric Borsting, a builder in California.

Designees are encouraged to work with Certified Green Professional builders when possible. Since its introduction four months ago, more than 500 Realtors® have achieved the Green Designation. There are now more than 2,500 Certified Green Professionals.

“The NAHB community now has a team member that truly adds value to a green home project: the NAR Green Designee,” said Al Medina, director of NAR's Green Designation. “Builders should feel confident that NAR Green Designees have the necessary resources and green industry relationships — coupled with a strong understanding of the green and non-green consumer — to effectively market your next green project.”

“The increasing rate of green-based codes and building regulations, coupled with strong consumer interest in green buildings and homes, will certainly translate to a future where sustainable design considerations play a role in most real estate transactions,” NAR said in a press release.

“The National Association of Realtors'® Green Designation provides vital training, support and information to Realtors®. By working with an NAR Green Designee on your next green project, you will ensure proper representation of your green features and gain a team member articulate in green building speak,” according to the release.

Designees must complete a rigorous 18-hour program on current issues and innovative research related to green real estate. NAR supports them through referrals, networking, additional training and other resources.

With almost 300 courses already scheduled across the U.S. and Canada in 2009, NAR anticipates designating almost 2,500 Realtors® by the end of this year.

For more information, e-mail Chad Riedy at NAHB, or call him at 800-368-5242 x8225.

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.

The examples are drawn from decades of experience of land developers, home builders and urban foresters.

Enter 2009 Best in American Living Design Competition


	2008 BALA Home of the Year

Entries are being accepted for the 2009 Best in American Living Awards (BALA), the foremost residential design competition in the country. Builders, interior designers, architects, land planners, developers and marketing and real estate professionals are invited to enter.

Co-sponsored by Professional Builder magazine and NAHB, the competition includes 37 categories — from single-family attached and detached homes in a variety of sizes to rental developments and custom homes, plus categories for interior design, communities and neighborhoods, affordable housing, smart growth and new this year — certified green homes.

A panel of design professionals judge entries on design appearance and curb appeal, interior floor plans, how the project relates to its own local market and the construction techniques and materials used.

Homes that were completed or that had their first model opened between Jan. 1, 2008 and July 15, 2009 are eligible for this year’s competition.

Winning entries also will be posted on the Professional Builder Web site (probuilder.com) for up to one year after the announcement.

Impact on Children Growing Concern in Foreclosure Crisis

In the latest in a series of monthly forums by Chapin Hall at the University of Chicago and the Urban Institute to discuss public policy issues related to children, their families and the community, participants on a March 12 panel in Washington, D.C. said that people are really starting to worry about the harmful consequences of the foreclosure crisis for children.

“The foreclosure crisis is forcing families to move in unplanned and stressful ways,” said Olivia Golden, an Urban Institute fellow, with ill-effects on children that can be long-term, outlasting the actual period of disruption.

While the scale of the current housing crisis is opening up new territory and research in this area is in short supply, Golden said that it has been generally found that the disruption from foreclosures undermines educational achievement and increases absenteeism at school. Children also feel the repercussions of the instability and parental stress and lose ties to friends, relatives, health care and the community, she said.

“A record volume of foreclosures is expected this year," noted Ingrid Gould Ellen, associate professor of public policy and urban planning at New York University and codirector of its Furman Center for Real Estate and Urban Policy. Foreclosures could total eight million over the next four years without intervention, she said, and there are an estimated eight million children living in those at-risk homes, or 10% of all the children in the U.S.

Ellen said that there has been a 35% spike in homelessness in New York City over the past year, much of it stemming directly from owners and renters losing their housing through foreclosures.

Foreclosures, she said, are very concentrated in a few states, and within those states they are concentrated in specific neighborhoods, raising safety issues for children living in families that have not lost their homes but find themselves in the midst of boarded-up properties that provide a breeding ground for crime.

Ellen voiced optimism that the efforts of the Obama Administration to reduce foreclosures, help communities stabilize neighborhoods and provide assistance to help vulnerable families avoid becoming homeless will succeed in addressing the problem to a significant extent. However, she added that foreclosures will happen nevertheless, requiring policy makers to address their impact on children.

Mobility, she said, is detrimental to children in school, particularly moves that happen at odd points in the year. Among possible solutions, she said, local school systems should consider allowing children to stay in a school when their families move out of the school district.

Thomas Perez, secretary of the Maryland Department of Labor, Licensing and Regulation, said that he believes the state has addressed the foreclosure problem prospectively through a package of reforms, among the farthest-reaching in the nation, that strengthen lending and licensing standards for mortgage professionals and ban prepayment penalties and other defective loan features.

The state, he said, also ended fast tracking in which the foreclosure process could be completed in as little as 15 days. What people facing foreclosure need most, he said, are “time, money and free legal advice” so that they can work with their lenders to stay in their homes or pursue other alternative solutions to find housing.

Also, when entities decide to pursue foreclosure, notices are now required to be sent to the state government as well as the home owner in order to prevent the delinquent borrowers from being victimized by scam artists. The mastermind behind the Metropolitan Money Store case, the largest mortgage foreclosure scam in the country, was a stripper before she became a loan originator, he said.

In its efforts to prevent in the future a recurrence of the problems besetting many Maryland home owners today, Perez said that the state learned that minority home owners were disproportionately offered subprime loans with higher interest rates — 54% of African American home buyers in the state and 47% of Hispanics, compared with 18% of whites.

Even before loan adjustments to higher payments, these loans “were set to fail to begin with” and they represented a case of “brokers steering borrowers to bad loan products,” he said.

Perez said that Maryland has reached agreements with six mortgage services to provide meaningful loss mitigation to its home-owning residents who have run into trouble and has brought on 750 pro-bono lawyers for an outreach effort to get borrowers out of toxic loans.

Opening up lines of communication with families who can benefit from these efforts, however, has been a major hurdle. “Fifty percent of people in foreclosure have had no meaningful contact with their servicer,” he said. Falling behind on mortgage payments is “a shameful event” and those who start receiving delinquency notices “put the letters in a drawer and pray things get better.”

One approach to ensure that people don’t bury their heads in the sand when they are having payment problems, he said, is to form partnerships with the faith community. “We have to make house calls here. We have to get in people’s comfort zones.”

Delinquent borrowers are also more likely to open an envelope when it comes from the state itself, according to Perez. Maryland has sent out 85,000 pieces of mail, including information on housing counselors who experience shows improve the outcomes for these households.

Lewis Smith, a mortgage counselor and reverse mortgage specialist with Manna Mortgage in Washington, D.C., said that it isn’t easy getting low- and moderate-income borrowers out of bad loans and into good ones, especially if they took out an option adjustable rate mortgage, “the worst product on the market.”

In one case, the mother of two children with a $70,000-a-year job ran into serious problems after she refinanced in 2007 to reduce monthly payments on a home she had purchased in 2006 with 100% financing. With the negative amortization on her new $365,000 option ARM, she now has increased her principal to $417,000 and if she continues to pay the loan for another 13 months, the principal will grow to $438,000.

The home owner now owes the lender about $20,000 in past payments and penalties, and the home is only worth $309,000.

It is highly unlikely that she will be able to get her loan modified, Smith said. “She gets deeper in debt as she stays in the loan, until it explodes. Her only option is to walk away and find a rental.”

The situation is “more dire” than people know, said Malcolm Bush, a research fellow at Chapin Hall. The foreclosure situation and the housing market need to be stabilized, he said, to prevent other properties from losing value. However, he questioned whether the Obama Administration’s loan modification and refinancing effort will accomplish this mission.

Loan servicers are already overwhelmed, he said, and it will be challenging for qualified home owners to get somebody on the line “who knows what they are doing” and will agree to participate in the loan modification.

The refinancing component of the plan “should work better,” he said, but “the home owner has to take the first step. How many know about Fannie Mae or Freddie Mac or if their note is owner or guaranteed by them?”

How many of them will pick up the phone, he wondered, and of those who do, how many will be discouraged by a busy signal?

Bush cited a more radical proposal that would enable anyone who owns a home in a zip code where there has been a 20% decline in prices to have their loan rewritten so that the principal is reduced to their current market value.

Forum to Present Fort Bliss Housing Job Opportunities

The event will present housing development opportunities to support an expected increase of 21,000 troops and their 27,000 to 33,000 family members in the area.

Included will be expert panel discussions, bus tours of the installation and selected areas of El Paso, networking opportunities and a review of the Army’s housing requirements in the area for the next several years.

The all-day conference is scheduled from 8:00 a.m.-5:00 p.m. at the Wyndham El Paso Airport Hotel. Registration and continental breakfast are free. A selection of light lunches will be available for $11, with online prepayment required before April 1.

HBI and AmeriCorps Team Up to Rebuild Gulfport Homes


	AmeriCorps volunteers and Operation Reconstruct students renovated the home of Gaston Point resident John Dean, center.

Despite ongoing rebuilding efforts, three years after Hurricane Katrina devastated the Gulf Coast many area residents still live in damaged houses or have been displaced from their homes altogether. The Gaston Point community in Gulfport, Miss. responded by establishing the Gaston Point Community Development Corporation (GPCDC) as an organizational leader in residential rebuilding efforts.

Last month, the GPCDC began a community beautification project, enlisting the help of like-minded organizations to assist with home construction and remodeling. Among them was the Home Builders Institute’s (HBI) Operation Reconstruct, which joined AmeriCorps to remodel the home of 93-year-old John Dean.

Dean had been living in a severely damaged home since Katrina but did not have the resources to pay for improvements. Operation Reconstruct’s facilities maintenance students replaced about 75% of the siding on the house, while other Operation Reconstruct students worked with AmeriCorps volunteers to paint, landscape and clean the yard.

“Being at Mr. Dean’s home for a month, it was easy to see that our students and the AmeriCorps volunteers were proud to be doing this work,” said Operation Reconstruct Project Coordinator Eddie Collins. “We couldn’t have found a more deserving person to work for.”

“It was a wonderful surprise,” said Dean. “I never thought this would ever happen to me.”

This year, more than 1,100 individuals working with AmeriCorps will provide intensive, results-driven service to meet education, environmental, public safety and other pressing needs in communities across Mississippi.

The AmeriCorps crew sent a thank you letter to Operation Reconstruct expressing its gratitude for their help on the Dean home. HBI continues to work with AmeriCorps on GPCDC projects, including the complete demolition and rebuilding of the home of James DeLouch; the project is expected to be completed in April.

Founded in 2007 to assist in community rebuilding efforts in the aftermath of Hurricanes Katrina and Rita, Operation Reconstruct trains unemployed residents in need of skills for employment in residential construction. It is funded by the Mississippi Department of Employment Security.

For more information on Operation Reconstruct, e-mail Dennis Torbett at HBI, or call him at 800-795-7955 x8908.

Danze Pull-Out Faucet Features Three-Function Technology

Unique in pull-out faucets, Danze’s new Fairmont 3-Function Pull Out Kitchen Faucet features enhanced functionality in the one room of the home that needs to perform like no other space.

With the simple push of a botton located on the pull-out wand, users can select from three function choices — spray, bubble or pause.

The pause function, in particular, is a convenient alternative that enables users to direct and control the water for in-sink and out-of-sink tasks such as watering a plant or filling a pot. Danze has also engineered this faucet so that the wand can be pulled over 30 inches from the base.

Danze’s Fairmont Collection is styled in the American traditional motif that has proven popular with home owners throughout the years. The new Fairmont pull-out spout kitchen faucet is being introduced in chrome and stainless steel finishes, with additional popular finishes to be available by the middle of the year.

“Convenience and function, seamlessly integrated with on-trend design themes, continue to drive our new product introductions for the kitchen,” said Michael Wurth, Danze’s director of design. “We’re thrilled that we could bring together this three-function technology with our beautifully styled Fairmont design. The combination is sure to elevate any hard-working kitchen seeking a traditional design.”

Like all Danze faucets, the Fairmont pull-out kitchen faucet is constructed of high-quality components, including ceramic disc valves, ensuring some of the best reliability and durability available on the market today, the manufacturer notes.

Added to the brand’s wide array of kitchen and bath faucets, specialty faucets, showerheads and bath accessories, Danze’s product line was recently expanded to include beautifully styled Power Room Collections that feature toilets, bidets, pedestal sinks, premium vanities, vessel sinks and matching mirrors.

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

NAHB-Produced Programs on DIY, Fine Living and HGTV

The NAHB Production Group produces weekly television shows on DIY, Fine Living and HGTV for consumers. The following is the latest lineup:

HGTV is seeking developers, builders and architects to create dream homes for the network’s Dream Home Sweepstakes. To learn more, click here.

The NAHB Production Group is a full-service, self-contained, media production unit creating programming for cable television, broadcast television, non-profit, museum and corporate clients. Productions range from magazine format shows for general audiences to museum-installation videos for specialized use.

The production group includes award winning journalists, writers and photographers with experience in broadcast, documentary and corporate television.

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.

Endowment Awards HELP Grants to Five Universities

The grants were announced at the NAHB Student Chapter Award Ceremony at the International Builders’ Show in Las Vegas earlier this year.

“Through the HELP grants, the National Housing Endowment works to help the residential construction industry develop more advanced and effective approaches to home building as well as to ensure that the industry has an ample, well-trained supply of future workers and leaders,” said Gary Garczynski, endowment chairman and 2002 NAHB president.

Established in 2006, the endowment created the HELP initiative to bolster or start residential construction programs in leading two- and four-year colleges and universities around the country and to triple the number of graduates entering the home building industry. To date, the endowment has awarded more than $1 million in HELP grants to educational institutions.

Applications for Centex ‘Build Your Future’ Scholarships Due April 6

Applications for the Centex "Build Your Future" scholarships to undergraduate students pursuing careers in the residential construction industry for the 2009-2010 academic year are due on April 6.

The Centex "Build Your Future" scholarship program 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 students who are active NAHB Student Chapter members at their university or college and who maintain a 2.5 GPA on a 4.0 scale in all course work and a 3.0 in their core curriculum courses.

Scholarship applications are reviewed and awarded by a small group of Centex employees.

Established in 2000 by Centex Homes with a $1 million pledge, this scholarship was created to help address the pressing need for educating and training managers. Since then, Centex has awarded more than $250,000 to students attending residential construction programs across the country. The scholarships provide students with tuition assistance.

Applicants must be pursuing study in a housing- related program such as construction management, building, construction technology, civil engineering, architecture, design or any of the trade specialties at the college or university they attend.

Applicants interested in applying for the scholarship funds must be pursuing study in a housing-related program, be registered as a full-time student this coming fall, be a rising sophomore in a two- or four-year college or university and have at least one full academic year of course work remaining after the scholarship is received.

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

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

Challenge/Build/Grow Initiative Proposals Due April 7

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.

Applications and guidelines can be downloaded from the endowment Web site by clicking here.

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.

Avoid Visa/Master Card Hikes in Processing With Solveras

Even in this economy Visa and MasterCard are implementing processing rate increases this month.

NAHB members and home builders associations can avoid these increases by switching processing providers to NAHB Member Advantage participating company, Solveras Payment Systems by April 15.

By switching by the deadline, Solveras will guarantee 2008 processing rates for one year, and members and HBAs will be able to keep more of their profit on every sale.

For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to www.nahb.org/MA .

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

With NAHB's new faster and more convenient registration process, members can register securely with a credit card for one or both of the Spokesperson Training sessions.

In "Interview Skills," NAHB members will learn how to give clear, concise answers in a high-pressure, spur-of-the moment interview. “Interview Sills” will help participants master strategies for broadcast and print interviews, including message development.

Members who attend "Presentation Skills" will learn how to confidently prepare and deliver dynamic presentations to any audience. "Presentation Skills" focuses on how to organize and deliver a speech and presentation with accompanying question and answer sessions.

Both one-day sessions are from 9:00 a.m.-4:00 p.m. Registration is limited to 12 participants.

Each seminar is led by professional communication consultants who have more than 30 years of experience training NAHB members on the critical issues they face every day.

More than 15,000 NAHB leaders have taken Spokesperson Training since the program began in 1979.

For more information, e-mail Brooke Fishel at NAHB, or call her at 800-368-5242 x8061.

Pitney Bowes Postage Meters Offer Convenience, Savings

Pitney Bowes small business postage meters and scales offer the convenience, savings and increased productivity of having your own post office. Pitney Bowes is an NAHB Member Advantage participating company.

Convenience

Pitney Bowes postage meters enable member to have postage available 24/7 and avoid the hassle and time needed to go to the post office.

Save Money on Postage

Pitney Bowes meters and scales let business owners know exactly how much postage is required so they can eliminate overstamping. Small businesses that use postage meters can save up to 20% a year in postage.

Postage Tailored to Your Needs

With several postage meter and scale options, members can tailor a solution to their business based on the amount of mail they send.

Flexible, Trackable

Several employees or departments can use the same meter, but each postage expense can be tracked by user or department.

Be Prepared for Postal Rate Change

Pitney Bowes will notify business owners of new postal regulations and rate changes. Rate changes can be downloaded into Pitney Bowes meters within minutes.

For more information, click here, or call 800-376-7047. Be sure to refer to order number 999991198.

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.

Members Can Save 10% on Vacation Rentals Worldwide

NAHB members can get 10% off the “best available rate" at Endless Vacation Rentals by Wyndham Worldwide, one of the world's largest global marketers of vacation rental properties and part of NAHB’s Member Advantage discount program.

Endless Vacation Rentals represents approximately 60,000 vacation properties worldwide* — ranging from studio and one-bedroom accommodations to multiple-bedroom units throughout the U.S., Canada, Mexico and the Caribbean to villas, apartments, cottages and homes in Italy, France and the United Kingdom.

Available during specified periods, these unique vacation rentals offer more space, flexibility, privacy and “comforts-of-home” conveniences to make vacation stays more enjoyable.

To use the program, visit www.evrentals.com/nahb, or 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.

The Web site also enables members to review key resort amenities, descriptions and directions.

*Destinations and travel times are subject to availability and confirmed on a first-come, first-served basis. Offers include accommodations only and specifically exclude travel costs and other expenses that may be incurred. Promotional discounts and offers may not apply to all properties. Other restrictions may apply. Offer void where prohibited by law. Additional taxes and conditions may apply. Visit www.EVRentals.com for terms, conditions and additional disclosures.

The inventory is made available by Resort Rental, LLC (operating as Holiday Rentals, LLC in Maryland and Texas) an Indiana-licensed limited liability company.

Other Member Advantage Discounts

For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to www.nahb.org/MA.

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

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.

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 more information, e-mail Tiffany Lindsley at NAHB, or call her at 800-368-5242 x8273.

For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to www.nahb.org/MA.

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

Calendar of Events

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.

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.

Nation's Building News Online: March 16, 2009

Tax Credit Key to Selling Homes, Marketing Experts Say

On Sales Tour, John Wieland Aims to ‘Get Housing Moving’

Facebook and YouTube Spreading the Word on Tax Credit

Urban Areas See Revival in Housing Construction

Young Entrepreneur Thriving in Housing Market

Home Builders Get Creative to Survive

For Builders, Peace of Mind a Small Price to Pay

Stunned by Losses, Institutions Ask: What Now?

Nearly 50% of Apartment Landlords Lower Rents

Mortgage, Financial Markets Slowing Housing, Builders Say

Mark-to-Market Issues Addressed at House Hearing

Card Check Unionization Law Introduced in House and Senate

Attend Crucial Legislative Conference on Tuesday, March 24

Builders as Glum in March as They Were in February

Eye on the Economy: Home Sales Should Stabilize Soon

Register Online for NAHB Spring Construction Forecast Conference

Useful Links to Monitor Economic and Housing Trends

Attend Free Webinar on Strategic Planning on April 7

Free Business Survival Tips Extended: Now Online Till April 17

What to Do When Money Is Tight

Builders’ Tip: A Coping Table for Crafting Molding

Go Back to Basics: Take the Time to Relearn Your Market

CRM Can Help Salespeople Become More Productive

With the Right Approach, 50+ Holding Up as a Good Market

Award-Winning Universal Home Has Personality to Spare

Reposition Your Company to Work Through the Downturn

Panelized Construction Can Help Builders Trim Overhead

Earn Professional Designations at NAHB Spring Conferences

Education Calendar

Cutting-Edge Award Winner a Stop on Green Home Tour

Recycling Construction Waste a Success for St. Louis Builder

New Designation Educates Brokers on Green

Enter 2009 Best in American Living Design Competition

Impact on Children Growing Concern in Foreclosure Crisis

Forum to Present Fort Bliss Housing Job Opportunities

HBI and AmeriCorps Team Up to Rebuild Gulfport Homes

Danze Pull-Out Faucet Features Three-Function Technology

NAHB-Produced Programs on DIY, Fine Living and HGTV

Endowment Awards HELP Grants to Five Universities

Applications for Centex ‘Build Your Future’ Scholarships Due April 6

Challenge/Build/Grow Initiative Proposals Due April 7

Avoid Visa/Master Card Hikes in Processing With Solveras

Register Online for Spring Spokesperson Training

Pitney Bowes Postage Meters Offer Convenience, Savings

Members Can Save 10% on Vacation Rentals Worldwide

Drive Away With a Shiny New $500 GM Offer

Calendar of Events