Nation's Building News Online: April 13, 2009Print All Articles Text Version |
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NAHB Steps Up Efforts to End Severe AD&C Credit CrunchExpanding efforts this spring to restore the flow of credit that is needed for the production of housing, NAHB is seeking case studies from its members who have run into problems with their lenders. “Turmoil in the housing credit and broader financial markets is now affecting every corner of our nation’s economy, but the effect on financing for housing production is especially severe and is resulting in economic hardship in communities throughout the country,” 47 members of the U.S. Congress said in a March 27 letter to Treasury Secretary Timothy Geithner. “Home builders are experiencing an untenable constriction in terms and availability on land acquisition, land development and home construction (AD&C) loans and builders with outstanding loans are facing mounting challenges,” the letter said. Lawmakers were asked to send the letter by delegations of builders who made visits to Capitol Hill last month during the annual NAHB Legislative Conference. Stories from builders on their difficulties with lenders will provide documentation as the industry seeks relief from today’s severe AD&C credit crunch, which is a major impediment to the housing recovery that is needed to restore the health of the nation’s faltering economy. The stories will be used to convey the seriousness of the issue to regulators, legislators and others who are in a position to help resolve the current situation. Of particular interest to NAHB are stories coming from builders or developers in relatively stable markets that illustrate vividly the inappropriateness of specific regulatory actions. NAHB members are encouraged to share their financing experiences by filling out the online template located at: www.nahb.org/adccasestudy. “Lenders are now making demands on existing loans that appear unrelated to sensible regulatory requirements,” the letter to Sec. Geithner said. “These demands are increasingly impairing previously performing loans and, in some cases, forcing builders with viable projects into insolvency, and frustrating the purpose of the Troubled Asset Recovery Program (TARP), which was to allow lenders to extend credit to deserving borrowers and stabilize the economy.” The letter was forwarded to Sheila Bair, chairman of the Federal Deposit Insurance Corporation; John Dugan, comptroller of the currency; John Bowman, acting director, Office of Thrift Supervision; and Federal Reserve Chairman Ben Bernanke. NAHB has noted that while policy makers have correctly been expending the necessary resources to prevent banks from foreclosing on home owners, that same approach is not being taken on loans to home builders and developers. The small home building businesses that have disproportionately fallen victim to the cascading freeze in home building credit depend almost entirely upon commercial banks and thrifts for housing production credit. As it continues to meet with decision makers in Washington to resolve the crisis, NAHB will be recommending several solutions:
For information on the AD&C credit crunch and solutions to alleviate it, contact David Ledford, x8265. Foot Traffic Up as Home Buying Becomes More AffordableThanks to record low mortgage rates and declining home prices, 55 million families — or half of all U.S. households — can afford today's $200,000 median-priced new home, according to figures released by NAHB. "That's an increase of 17 million households from conditions just two years ago and the best housing affordability number we have seen in years," said NAHB Chairman Joe Robson. "We are now seeing the first signs that buyers are returning to the marketplace." Based on data from the U.S. Census Bureau comparing home prices, mortgage rates and the minimum income needed to purchase a median-priced home in February 2007 and February 2009, a typical family today can purchase a house with $20,000 less in household income and save nearly $500 per month on their principal, interest, taxes and insurance. About 55.4 million households can afford to purchase a home today, compared with 38.4 million two years ago, according to figures compiled by NAHB. "With affordability up dramatically, reports from our builders in the field indicate that foot traffic in new homes is on the rise and consumer interest is increasing with each passing day. These are encouraging signs that the housing market may be finally reaching a bottom," said Robson. Entering the crucial spring home buying season, there are other signs that buyers are starting to return to the market. Single-family permits were up 11% in February, new and existing home sales also posted gains and the huge inventory backlog is being slowly whittled down. In a survey for Century 21 Real Estate last month among prospective first-time home buyers who indicated they were likely to purchase a home in the next two years, a majority — 78% — said that now is a good time to buy a home. Of those responding to the online poll, 68% said that now is a better time to buy than six months ago. Another sign that consumers are considering jumping back into the housing market is the growing interest in the $8,000 first-time home buyer tax credit included in the recently enacted economic stimulus package. During February and March, 1.5 million visitors logged on to NAHB's consumer Web site, www.federalhousingtaxcredit.com, to learn more about the tax credit. Further, a new survey commissioned by Move, Inc. found that nearly 20% of those who plan to purchase a home this year are doing so to take advantage of the tax credit, which expires at the end of November. "With home values in many markets at the lowest level since 2003, an $8,000 tax credit available to first-time home buyers, fixed-rate mortgages under 5% and an outstanding selection of homes to choose from, buyers are starting to recognize that this has the makings for a one-time opportunity to break into the market," said Robson. Housing is a critical component of the U.S. economy, accounting for about 15 cents of every dollar spent in this country, so any upturn in the housing market should be viewed as good news for the overall economy, said Robson. Construction of an additional 500,000 single-family homes — the difference between today's anemic construction rate and one that would move closer to meeting the underlying demand for housing — would generate 734,000 jobs and $35 billion in wages in the construction industry and another 790,000 jobs and $37.7 billion wages in manufacturing, trade and service sector jobs, he noted. Additionally, another half-million housing starts would bolster the tax base for government, generating $45 billion in federal, state and local tax revenues. And the benefits go well beyond the completion of each home. Within the first year after buying a home, those half million households will spend about $2.5 billion more on appliances, furnishings and property alterations. "Clearly, housing will be central to any economic recovery we experience in the months ahead," said Robson. For more details on how lower prices and interest rates during the past two years have spurred a significant uptick in affordability, click here. Homeownership Tax Benefits a Big Selling Point for Prospective BuyersHome builders can use new research from NAHB economists as a source of information for their prospective customers on the tax benefits of homeownership. “Purchasing a home is typically the largest purchase and among the most important financial decisions a family makes,” said Robert Dietz, NAHB’s director of tax issues. “There are numerous factors that influence the home buying decision, and among the most important are the tax benefits that help offset some of the cost of homeownership.” A March 27 article by Dietz — “The Tax Benefits of Homeownership” — examines how the tax benefits reduce the cost of homeownership for individual home owners and buyers for certain mortgage amounts and income levels. Those benefits include deductions for mortgage interest and real estate taxes, the capital gain exclusion for the sale of a principal residence and the newly enacted $8,000 first-time home buyer tax credit. For example, a new home-buying married couple with an annual $80,000 income and initial mortgage of $250,000 can save more than $11,000 in the first five years of homeownership from their mortgage interest and real estate tax deductions. Assuming the couple resides in the home for 12 years, which is the average period of ownership, these tax savings grow to more than $25,000 for the period they have owned the home. Combined with the capital gains exclusion, the estimated total savings associated with homeownership exceed $52,000 over that span of time. The research findings have been summarized in an “Opportunity Knocks for Home Buyers” brochure that can be a useful selling tool for builders and marketing professionals in the real estate industry. Click here for further information on the NAHB Web site on the tax advantages of homeownership. Consumers can find comprehensive information on the $8,000 first-time home buyer tax credit — available for qualified purchases this year before Dec. 1 — at www.federalhousingtaxcredit.com. NAHB is looking for stories from home buyers who were motivated to become home owners this year because of the $8,000 tax credit. Builders are encouraged to reach out to their customers and see if they would be willing to share their stories at: www.nahb.org/taxcreditstory. First-Time Home Buyers Find Themselves CreditworthyYakima, Wash. Is among the nation’s top cities where bank loans to consumers actually grew last year, according to a recent study by Moody’s Economy.com and Equifax Inc. That means that banks here — unlike in many Nevada, Florida and California cities where the housing market collapsed — feel the local economy is safe enough to lend more money to people. For those looking to take out mortgages to buy homes, that’s good news. “We’re seeing an upswing,” said Nick Marquez, a real estate broker who credits Yakima’s agriculture-based economy for his increased clientele. “Being in a smaller community where people know people, you’re going to run into somebody you already know and have a lot more smart choices made.” The only places where consumer-loan growth was higher than in Yakima were Huntsville and Mobile, Ala.; and McAllen and Brownsville, Texas, according to the study of 207 cities. In Yakima, consumer loans grew by 10.69% in the fourth quarter last year from a year earlier, compared to just 2.65% nationwide. Yakima brokers, who recognize that the housing market tends to pick up in springtime, say homes between $75,000 and $175,000 are selling within weeks. An $8,000 federal tax credit for first-time home buyers included in this year’s stimulus package helps, too, said Marquez. (www.yakima-herald.com)
Ten Cities Where Americans Are RelocatingDespite the overall economic slowdown, some parts of the country keep on moving ahead, attracting more and more newcomers — even if it’s at a slower pace than in more sound economic times. These places still offer a semblance of stability, as well as great weather, cultural life and, in many cases, affordability. To determine the fastest growing metro areas in the country, 2008 population estimates for metropolitan statistical areas with a population over 1 million, released on March 19 by the U.S. Census Bureau, were compared on a percentage basis with data for the previous year. The top three areas are Raleigh, N.C., which jumped 4.29% to nearly 1.9 million; Austin, Texas, with a 3.77% increase to almost 1.7 million; and Charlotte, N.C., which moved up 3.36% to 1.7 million. All these areas’ increases were smaller in 2008 than they were in 2007. A slight slowdown is not necessarily a bad thing, according to William Frey, a demographer at the Brookings Institute. “Part of the story here is the rapid rise in growth in the middle of the decade,” he says. “That growth was unnatural.” The in-migration that happened in the middle of this decade had a lot to do with the housing boom. When that ended, so did crazy population balloons. Most of the top 10 growth cities are headquarters for a diverse range of companies. When it comes down to it, a buzzing business community is a metro area’s most important characteristic, says Sean Safford, a professor at the University of Chicago. “Perception is driven by the vibrancy of the companies in an area,” he said. (www.forbes.com)
Job Migration to Suburbs: An Unstoppable Flow?It’s easy to find jobs moving to the suburbs in places like metropolitan Detroit, Los Angeles, Philadelphia, Dallas and Chicago. Employers, eager to establish leafy campuses in the suburbs in a bid to reduce commute times, are only adding to local traffic congestion, and the trend is probably immune to the ups and downs of the economy, concludes a study released on April 6 by the Brookings Institute — “Job Sprawl Revisited: The Changing Geography of Metropolitan Employment.“ Jobs leaving the cities include professions such as finance and insurance, which have long been concentrated in city centers. The report’s author, Elizabeth Kneebone, believes that states and cities should use some of the billions of dollars in federal stimulus money flowing their way to reverse some of these trends. “Instead of treating transportation decisions and housing as separate policy areas, leaders can start to link up these agendas because they really are related,” says Kneebone. But changing the job-sprawl trend will be difficult, she says, based on metro data she examined between 1998 and 2006 — a period that experienced a boom, a bust and then a slow recovery. “Throughout all these changing economic circumstances, these trends of jobs moving out of the urban core persisted,” she says. “Though we are facing job losses right now, what that might mean is it could slow these trends in some regions, but the current recession on its own is not likely to reverse the trends.” Of the 98 metro areas Kneebone studied, 95 saw some kind of job shift away from the urban core, though the number of jobs increased in all metro areas. Within the study, only 21% of employees worked within three miles of downtown, while 45% worked more than 10 miles from the city center. More than half of the major metro areas (53%) saw rapid job sprawl from 1998 to 2006. The largest increases in jobs outside of the central business district were Phoenix; Memphis, Tenn.; Jacksonville, Fla.; Orlando; and Austin, Texas. The top five metro areas for the share of jobs located at least 10 miles from the city center were: Detroit (77.4%), Chicago (68.7%), Dallas (66.9%), Los Angeles (65.6%) and Philadelphia (63.7%). (www.csmonitor.com)
Disclosing Energy EfficiencySecretary of Housing and Urban Development Shaun Donovan said his agency is in the early stages of discussions with federal energy officials to develop “a relatively simple scoring system for housing that would allow you to understand what you’re buying and at the same time allow lenders to underwrite that into their mortgage. Ultimately, if your energy bills are going to be lower, there ought to be some [mortgage] benefits to that.” The system might also factor in transportation costs to employment centers in some way, he said, because “most people don’t realize that the average American spends over 50% of their income on a combination of housing and transportation.” Even with lower prices for houses in the far-flung suburbs, “their transportation costs are huge,” he said, and metropolitan sprawl itself represents a massive energy-consumption inefficiency.” Mortgage terms — such as higher loan amounts for buyers to make energy-conserving improvements or lower mortgage rates for energy-efficient homes — “can be a very powerful tool” in residential energy conservation, he said, and the booming Federal Housing Administration insurance program would be a good place to start. “If in the long run there’s a cost of $5,000 to upgrade a house that will produce $10,000 in savings over time for utilities, the perfect tool to realize those savings is a mortgage,” he said. Although Fannie Mae, Freddie Mac and the FHA all have had versions of “energy-efficient mortgages” on the books for years, their programs have been poorly marketed and little used. Donovan wants to revive and improve the whole concept. (www.washingtonpost.com)
Reverse Mortgage Variation Is Aimed at Seniors Looking to DownsizeA form of federally insured reverse mortgage authorized in the Housing and Economic Recovery Act of 2008, the Home Equity Conversion Mortgage (HECM) for Purchase is aimed largely at persons 62 years or older who want to move down the housing ladder. The idea is to allow them to sell their current residence and use a reverse mortgage to buy a new one, all in a single transaction that eliminates the need for two sets of expensive closing costs. Under the loan, the lender pays an amount based on the age of the youngest borrower, the value and location of the home and current interest rates. The proceeds can be taken in a lump sum to pay for a new house; as a line of credit to be tapped as needed; in monthly installments; or in any combination of the three. Interest and mortgage-insurance premiums accrue on the borrowed amount, but no payments are necessary until the borrower sells the home, moves out or passes away. The borrower will never owe more than the value of the property. If the property is worth more than what is owed when the borrower leaves, they or their heirs will receive the difference. If it is worth less, the lender eats the difference. The home must be a primary residence, and cooperatives, second homes, vacation properties and some manufactured houses are not eligible. The amount that can be borrowed is limited to $625,500 until the end of this year, when it falls back to $417,000 unless Congress decides otherwise. (www.latimes.com)
AARP Study Looks at Benefits of Aging in PlaceAn AARP study comparing persons living in a universal design home with others in traditional settings found significant cost differences for health care. Those in universal design settings paid less than half the amount paid by those living in regular designs. The study pointed to savings by “undergoing less physical decline.” For example, by providing at least one no-step entry to homes, the likelihood of falls and injuries is reduced and there is a safer exit during a fire or other emergency. “Seniors and boomers are so active now that some of the activities are clearly putting stress on their bodies,” said Susan Mack, a California-based occupational therapist. “I’ve got people who are getting hip and knee replacements in their 60s and people in their 40s getting their knees scoped. This did not happen with previous generations because they didn’t live as long nor did they put this stress on their bones so soon. If you’ve got a sports injury, do you want to come home to a house that is fraught with hazards and barriers? These are not just designs and ideas for the frail elderly. We are also providing solutions for people who never thought they were going to get old — at least not this quickly.” (http://www.inman.com/)
HUD Warns Consumers of Foreclosure ScamsIn an effort to protect home owners from foreclosure scams, the U.S. Department of Housing and Urban Development last week began distributing a one-page flier providing information on how families struggling with their mortgage payments can access the Obama Administration’s Make Home Affordable Program. The program is designed to help up to nine million U.S. households refinance or modify their loans and reduce their monthly mortgage payment to a more affordable level. “Due to the overwhelming interest in the plan, home owners are increasingly becoming the target of scammers trying to take advantage of families with false promises and steep fees to provide foreclosure assistance,” the flier says. “With President Obama’s plan, a home owner NEVER has to pay to participate in the program. If you wish to obtain counseling assistance, HUD urges you to contact a local HUD-approved housing counseling agency to ensure you are receiving legitimate information,” the alert advises. HUD is advising home owners to turn to these sources of information and counseling:
“Unscrupulous financial institutions, brokers and others have broken their trust as lenders, cheating and lying to families fighting to make their way through this crisis,” said HUD Secretary Shaun Donovan. He noted that minority populations have been disproportionately impacted by the housing crisis, including foreclosure scams. “I will renew our commitment at HUD to fair housing enforcement, particularly for lending violations that target minority communities,” Donovan said. “As part of our broader effort to combat abuse and fraud, HUD is using new tools, including the SAFE Act and RESPA, to protect American families. We at HUD will ensure that all Americans, particularly those in areas previously victimized by unscrupulous practices, are protected and will enforce our laws against those who prey upon them.” Tax Credit Web Site Looks at Opportunity of a Lifetime Builders and other industry professionals can help spur home sales by referring prospective first-time home buyers to www.federalhousingtaxcredit.com. The NAHB Web site provides detailed information on the $8,000 federal tax credit for first-time home buyers included in the economic stimulus legislation signed into law by President Obama. Consumers can use the Web site to find information on the tax credit — including a detailed question and answer section. It also includes information about other housing-related and small business measures in the legislation and a number of home-buying resources for consumers. Spanish Version Also Online A Spanish version of this increasingly popular Web site is also available to provide detailed information on the tax credit to Spanish-speaking first-time home buyers. Industry professionals are encouraged to highlight either tax credit Web site when marketing to their potential first-time home buyer market. Plan to Attend Construction Forecast Conference Plan to attend or watch the 2009 Spring NAHB Construction Forecast Conference & Webcast on Thursday, April 23 in Washington, D.C. to get the latest facts, insights and analysis of the housing industry. Panels of nationally recognized experts at the day-long conference will discuss economic trends, government policies, developments in the housing industry and the results from NAHB's recent surveys. For more information and to register, visit www.nahb.org/cfc. Want to Know the Housing Starts Through 2017? Find out in HousingEconomics.com's Long-Term Forecast. Subscribe and get downloadable Excel tables that feature the housing starts forecast, gross domestic product (GDP), demographics and more. To learn more, visit www.housingeconomics.com. Pulte Homes and Centex to Merge, Becoming Biggest U.S. BuilderPulte Homes, Inc. and Centex Corporation announced on April 8 that their boards of directors had unanimously approved a merger. “Combining these two industry leaders with proud legacies into one company puts us in an excellent position to navigate through the current housing downturn, poised to accelerate our return to profitability,” said Pulte President and CEO Richard Dugas. “Centex’s significant presence in the entry level and move-up categories is complemented by Pulte’s strength in both the move-up and active adult segments, the latter through our popular Del Webb brand,” Dugas said. “Together we will have considerable presence in more than 59 markets across America. In addition, both organizations share an unwavering focus on delivering unparalleled customer satisfaction, maximizing the influence of strong brands and setting new standards of achievement in operational efficiency.” Dugas noted that Centex has sizable land holdings in both Texas and the Carolinas, “two areas that continue to exhibit strength in the face of today’s difficult housing market.” “We believe this is the right combination at the right time in the business cycle,” said Centex Chairman and CEO Timothy Eller. “By acting decisively now, we’re creating unrivaled firepower to capitalize on the opportunities in home building that are now becoming visible on the horizon,” Eller said. “We will have a deeper and more expanded presence that we are confident will allow us to begin realizing the benefits of our combined scale immediately.” In calendar year 2008, Pulte and Centex delivered more than 39,000 closings, with combined pro forma revenues of $11.6 billion. The combined company will have more than $3.4 billion in cash, the most of any builder in the country. The combined company expects to retire more than $1 billion of debt maturities before the end of this year and realize cost savings of about $350 million annually.
Tax Credit Web Site Looks at Opportunity of a Lifetime Builders and other industry professionals can help spur home sales by referring prospective first-time home buyers to www.federalhousingtaxcredit.com. The NAHB Web site provides detailed information on the $8,000 federal tax credit for first-time home buyers included in the economic stimulus legislation signed into law by President Obama. Consumers can use the Web site to find information on the tax credit — including a detailed question and answer section. It also includes information about other housing-related and small business measures in the legislation and a number of home-buying resources for consumers. Spanish Version Also Online A Spanish version of this increasingly popular Web site is also available to provide detailed information on the tax credit to Spanish-speaking first-time home buyers. Industry professionals are encouraged to highlight either tax credit Web site when marketing to their potential first-time home buyer market.
Plan to Attend Construction Forecast Conference Plan to attend or watch the 2009 Spring NAHB Construction Forecast Conference & Webcast on Thursday, April 23 in Washington, D.C. to get the latest facts, insights and analysis of the housing industry. Panels of nationally recognized experts at the day-long conference will discuss economic trends, government policies, developments in the housing industry and the results from NAHB's recent surveys. For more information and to register, visit www.nahb.org/cfc.
Want to Know the Housing Starts Through 2017? Find out in HousingEconomics.com's Long-Term Forecast. Subscribe and get downloadable Excel tables that feature the housing starts forecast, gross domestic product (GDP), demographics and more. Eye on the Economy: Consumer Confidence Remains in DoldrumsThe contraction in real gross domestic product (GDP) for the fourth quarter of 2008 now stands at an annualized rate of 6.3%, according to the “final” estimate released by the Commerce Department on March 26. This represents a major downshift of 0.5% from the third quarter and is the sharpest decline since the depths of the 1982 recession. The housing production component of GDP (residential fixed investment) contracted at a 22.8% annual rate in the fourth quarter and knocked 0.8 of a percentage point from the overall GDP growth rate — quite a negative contribution from a component that now accounts for less than 3% of total GDP. Consumer spending, which now accounts for 71% of the total, contracted at a 4.3% annual rate in the fourth quarter and registered a negative growth “contribution” of -3.0 percentage points — an extremely large drag from this part of the economy. Consumer spending rarely goes negative. Consumer spending apparently stopped falling in the early part of this year, but serious weakness in other sectors of the economy figures to keep GDP in free-fall during the first quarter. We’re estimating -5.2%. Residential fixed investment should contract at nearly a 40% pace, we’re looking for a major downshift in nonresidential fixed investment — structures as well as capital equipment and software — and we expect businesses to cut inventory positions considerably. Spending by state and local governments also should lose a good bit of ground in the first quarter. The Labor Market Also Is Reeling The sharp declines in spending and economic output naturally are battering the labor market. Payroll employment fell by 3.72 million during the last two quarters — an average monthly loss of 620,000 jobs. The average monthly loss for the first quarter of this year came to a whopping 685,000 jobs. The civilian unemployment rate has moved up from 6.2% last September to 8.5% in March of this year — the highest rate in 25 years. The Labor Department’s broadest measure of labor underutilization, including discouraged workers that have stopped looking for work as well as those working only part-time for economic reasons, has soared by more than five percentage points during the last two quarters — reaching 15.6% by March. The housing sector began to lose jobs around the beginning of 2006, nearly two years before the national recession began, and the losses continue to be substantial. The cumulative loss of employment in residential construction (builders and specialty trade contractors) was 973,000 by March of this year, a 28% decline, and 171,000 jobs were lost in the first quarter of this year alone. There naturally have been sizable job losses in industries closely related to housing production. The housing finance system has lost a large percentage of workers employed during the earlier boom period, and mortgage loan brokers have been particularly hard-hit. House Price Performance Was ‘Mixed’ Early This Year Widely different signals are being thrown off by available measures of house prices for the early part of this year. Indeed, some of the reported price changes really challenge credibility, particularly the purchase-only repeat-sales National House Price Index (HPI) produced by the new Federal Housing Finance Agency (formerly OFHEO). The FHFA’s HPI showed a 22% rate of increase (seasonally adjusted annual rate) from December to January — a reading that makes little sense in a housing market with weak demand, a lot of excess supply and a lot of foreclosures. In fact, FHFA attributed most of the measured price surge to a sizable change in the geographic mix of homes sold and financed with loans salable to Fannie Mae or Freddie Mac. FHFA also cited low sales volume in January and suggested that significant revisions to the HPI for that month are quite likely. Another prominent repeat-sales measure of house price change, the S&P/Case-Shiller 20-City Composite Home Price Index, showed a 23% rate of contraction (seasonally adjusted annual rate) in January, as all 20 cities posted month-to-month declines. This rate of decline is one of the largest on record and suggests that the contraction in house prices still was picking up steam as this year began. It’s important to note, however, that the S&P/C-S index measures price change for repeat-sale transactions occurring in the three-month period ending in January. There was a surge in foreclosure sales in many areas of the country in the last few months of 2008 and the first month of 2009, and the S&P/C-S measure for January most likely was driven down by this pattern of sales at deeply discounted prices. It’s difficult to forecast house price change. However, it’s noteworthy that recent declines in both house prices and mortgage rates have driven up measures of housing affordability to record highs, that starts of new homes for-sale are down to rock bottom levels and that some indicators of housing demand (including NAHB survey measures) have shown improvement recently. If these trends continue, it’s entirely possible that key national measures of house prices will be stabilizing by the end of this year as the national economic recession runs its course. Consumer Confidence and Sentiment Remain in the Doldrums Key measures of consumer confidence by the Conference Board and consumer sentiment by the University of Michigan remained at or below their respective record lows in March — primarily because of the extremely weak labor market conditions prevailing at that time as well as a weak outlook among consumers for income over the next six months. The University of Michigan regularly asks consumers whether they think it’s a good or bad time to buy a house. The proportion saying “good” has been around 70% in recent months, including March, well up from the cyclical lows posted back in 2006. The rebound in perceptions of home buying conditions has been driven primarily by lower house prices, but also by lower mortgage rates. Weak assessments of general economic conditions obviously have been holding back prospective buyers who view house prices and interest rates as favorable. In March, none of the consumers who rated home buying conditions as “good” cited “good times” as a reason, while a significant number of those saying it was a bad time to buy a house listed “bad times ahead” as a factor. History shows, however, that spending by consumers often picks up well before the job market improves and consumer confidence recovers. Home sales ordinarily start up well before both employment and confidence rise, generally because low mortgage rates and enhanced affordability encourage some pent-up demand to come onto the market. Policy Stimulus Is Accumulating Despite some rough spots in its design and implementation, it’s fair to say that the multi-faceted policy blitz enacted in 2008 and 2009 will limit the depth and duration of the national and global economic recessions and support the housing sector in the process. The American Recovery and Reinvestment Act, including the temporary $8,000 first-time home buyer tax credit, already has begun to provide some support to housing and the economy. The other two legs of President Obama’s policy stool — the Financial Stability Plan and the Homeowner Affordability and Stability Plan — are gearing up and will bear some fruit before long. The Federal Reserve has been pulling out the stops as the economic and financial market crisis has broadened and deepened. The Fed recently pushed traditional monetary policy to the limit and has invoked emergency powers to deploy unconventional balance-sheet policies to bolster faltering credit markets — including the home mortgage market. The Fed also is partnering with the Treasury to jump-start various asset-backed securities (ABS) markets, including those for consumer and small-business loans. Both the Fed and the FDIC will be involved in portions of the Treasury’s new Public-Private Investment Program, which is designed to get troubled “legacy” assets off the balance sheets of financial institutions. Even the independent Financial Accounting Standards Board is helping on that front by relaxing mark-to-market accounting rules to some degree. The Shape of Things to Come Although uncertainties abound, particularly in the financial system, it’s likely that the combination of corrective market forces and the unprecedented policy blitz will arrest the economic free-fall in the near term, paving the way for stabilization in the latter part of this year and for the early stages of recovery in 2010. Stabilization and recovery of the housing sector is essential to our economic scenario for the balance of this year and in 2010. We believe that home sales bottomed out in the first quarter of this year, we expect single-family housing starts to bottom-out in the second quarter and we expect the real value of residential fixed investment — including multifamily and manufactured home production as well as improvements to residential structures — to bottom-out by year-end as the national economic recession comes to an end. 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 April 8 edition. To subscribe to “Eye on the Economy,” click here. Tax Credit Web Site Looks at Opportunity of a Lifetime Builders and other industry professionals can help spur home sales by referring prospective first-time home buyers to www.federalhousingtaxcredit.com. The NAHB Web site provides detailed information on the $8,000 federal tax credit for first-time home buyers included in the economic stimulus legislation signed into law by President Obama. Consumers can use the Web site to find information on the tax credit — including a detailed question and answer section. It also includes information about other housing-related and small business measures in the legislation and a number of home-buying resources for consumers. Spanish Version Also Online A Spanish version of this increasingly popular Web site is also available to provide detailed information on the tax credit to Spanish-speaking first-time home buyers. Industry professionals are encouraged to highlight either tax credit Web site when marketing to their potential first-time home buyer market. Plan to Attend Construction Forecast Conference Plan to attend or watch the 2009 Spring NAHB Construction Forecast Conference & Webcast on Thursday, April 23 in Washington, D.C. to get the latest facts, insights and analysis of the housing industry. Panels of nationally recognized experts at the day-long conference will discuss economic trends, government policies, developments in the housing industry and the results from NAHB's recent surveys. For more information and to register, visit www.nahb.org/cfc. Want to Know the Housing Starts Through 2017? Find out in HousingEconomics.com's Long-Term Forecast. Subscribe and get downloadable Excel tables that feature the housing starts forecast, gross domestic product (GDP), demographics and more. To learn more, visit www.housingeconomics.com. Register Online for NAHB Spring Construction Forecast ConferenceRegister 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. Panelists at the conference will discuss key questions including:
The panels include:
To Register Online registration is available through Friday, April 17. To register and learn more, visit www.nahb.org/CFC. Can't Attend in Person? Webcast of Conference Also Available 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. For information on the conference, e-mail Christabelle Smith at NAHB, or call her at 800-368-5242 x8416.
Tax Credit Web Site Looks at Opportunity of a Lifetime Builders and other industry professionals can help spur home sales by referring prospective first-time home buyers to www.federalhousingtaxcredit.com. The NAHB Web site provides detailed information on the $8,000 federal tax credit for first-time home buyers included in the economic stimulus legislation signed into law by President Obama. Consumers can use the Web site to find information on the tax credit — including a detailed question and answer section. It also includes information about other housing-related and small business measures in the legislation and a number of home-buying resources for consumers. Spanish Version Also Available Online A Spanish version of this increasingly popular Web site is also available to provide detailed information on the tax credit to Spanish-speaking first-time home buyers. Industry professionals are encouraged to highlight either tax credit Web site when marketing to their potential first-time home buyer market. Useful Links to Monitor Economic and Housing TrendsThe following are links to useful information from government agencies and NAHB that will enable you to monitor the housing market. To access the latest information available, simply click the links.
Tax Credit Web Site Looks at Opportunity of a Lifetime Builders and other industry professionals can help spur home sales by referring prospective first-time home buyers to www.federalhousingtaxcredit.com. The NAHB Web site provides detailed information on the $8,000 federal tax credit for first-time home buyers included in the economic stimulus legislation signed into law by President Obama. Consumers can use the Web site to find information on the tax credit — including a detailed question and answer section. It also includes information about other housing-related and small business measures in the legislation and a number of home-buying resources for consumers. Spanish Version Also Available Online A Spanish version of this increasingly popular Web site is also available to provide detailed information on the tax credit to Spanish-speaking first-time home buyers. Industry professionals are encouraged to highlight either tax credit Web site when marketing to their potential first-time home buyer market.
Plan to Attend Construction Forecast Conference and Webcast Plan to attend or watch the 2009 Spring NAHB Construction Forecast Conference & Webcast on Thursday, April 23 in Washington, D.C. to get the latest facts, insights and analysis of the housing industry. Panels of nationally recognized experts at the day-long conference will discuss economic trends, government policies, developments in the housing industry and the results from NAHB's recent surveys. For more information and to register, visit www.nahb.org/cfc.
Want to Know the Housing Starts Through 2017? Find out in HousingEconomics.com's Long-Term Forecast. Subscribe and get downloadable Excel tables that feature the housing starts forecast, gross domestic product (GDP), demographics and more. To learn more, visit www.housingeconomics.com.
Free NAHB Kit Gives Builders Back-to-Basics Tips to Navigate the Slowdown What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn. To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. HBAs Promote Tax Credit, Generate Interest and TrafficState and local home builders associations across the county are using NAHB resources to help promote the $8,000 tax credit for first-time purchasers — part of the federal government’s massive economic stimulus package — in order to help generate home buyer interest and foot traffic for their members. HBAs have incorporated marketing tools created by NAHB — including a Federal Housing Tax Credit Web site, a video explanation of the tax credit on YouTube, print ads for consumer and member audiences that can be customized with the member’s or association’s contact information, a public service TV announcement, a consumer flyer, radio spot scripts and Web banner ads — on their Web sites and in their marketing to help revitalize their slumping markets. The $8,000 tax credit for first-time home buyers will “provide an overall shot in the arm to the market,” said Nick Tennyson, executive vice president of the Home Builders Association of Durham, Orange and Chatham Counties in North Carolina. His association is promoting the YouTube tax credit video on its Web site. In addition, he is encouraging his members to spread the word on the tax credit, which also is available to people who have owned a home in the past but no longer do. “Anyone who has not owned a home in the last three years may be qualified for the tax credit,” said Tennyson. “At first reading, you would think that a person who has ever owned a home is out of luck. There will be more people meeting this test than might be presumed.” The association also created copies of the public service announcement and distributed them to area television stations. The stations, he said, “promised to air it.” The Home Builders Association of St. Louis and Eastern Missouri posted the YouTube video on its Web site in order to get information quickly out to people who wanted more details about the tax credit, said Pat Sullivan, the HBA’s executive vice president. “It appears that the Web site material provided by NAHB is answering a lot of questions,” he said. NAHB-provided information is also posted on the Web site of the Home Builders Association of Louisville in Kentucky. In addition, the HBA is working to increase the incentive for first-time purchasers by trying to get the state to pass an additional $5,000 state tax credit. If the state stimulus is approved, Chuck Kavanaugh, EO of the Louisville HBA, said the association will be able to market a larger tax incentive for potential buyers. These and similar marketing efforts are beginning to pay off, according to several EOs. Kavanaugh said his members are seeing increased traffic in their homes and models. In St. Louis, Sullivan, said the tax credit was a strong enough incentive to lure two first-time buyers off the fence and to the closing table for two of his members. Building Partnerships to Market the Tax Credit In the Northwest, Jon Chandler, executive director of the Oregon Home Builders Association, said his state association is planning to partner with area Realtors® and bankers to “jointly market the tax credit through their respective networks.” In Alabama, the Greater Birmingham Association of Home Builders has partnered with the Birmingham Association of Realtors® to co-sponsor “The Real Deal,” a five-day sales event starting this week that was created to stimulate sales of new homes and resales. “The objective of ‘The Real Deal’ is to create a sense of urgency and excitement and to help motivate buyers to purchase a home because of the current cost savings, possible upgrades and federal tax relief available,” said Lurenda Avery, the HBA’s public relations director. The special offers, lowest prices of the year and added incentives that will only be available during “The Real Deal” from April 16-20 will encourage buyers who are on the fence to buy now, added Bart Fletcher, Birmingham EO. Incentives are being offered on more than 350 new and resale homes as part of “The Real Deal,” with half of the homes new construction. “Any house that sells because of the program will benefit the builder by getting inventory off the market,” Fletcher said. Marketing Energy Efficiency and Green In addition to the first-time buyer benefits, members are marketing tax credits available through energy-efficiency home improvements and green building. Dave Dunlap, of Consolidated Construction Group in St. Louis, said the tax credits for energy-efficiency improvements are beginning to stir interest. “We have found that our clients become interested in energy-efficient products when they can see a reasonable return on their investment,” Dunlap said. “Tax rebates and tax credits can be a strong incentive.” Oregon’s Chandler agrees and said that more of his members are “applying their skills to remodeling, particularly ‘green’ remodeling. The expanded tax credits for energy efficiency and renewable energy are going to make this area of the building industry one of the few growth areas in 2009.” In North Carolina, one of the members in Tennyson’s HBA, Dale Giera, of Hampton Green Homes in Carrboro, recently entered into a partnership to open Solar Tech South, which sells and installs a line of German-engineered solar photovoltaic and solar thermal systems. “The increased tax credits available for that type of product were very helpful to their efforts,” said Tennyson, adding that HBAs and members should take advantage of the tax credits available to promote home building and remodeling. “Every opportunity for exposure has to be seized.” NAHB resources to help promote the tax credit are available at www.nahb.org/taxcreditmaterials. For more information, or to share success stories about marketing the tax credit, e-mail Brooke Fishel at NAHB, call her at 800-368-5242 x8061 or visit www.nahb.org/taxcreditstory.
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. Spanish Version Also Available Online A Spanish version of this increasingly popular Web site is also available to provide detailed information on the tax credit to Spanish-speaking first-time home buyers. Industry professionals are encouraged to highlight either tax credit Web site when marketing to their potential first-time home buyer market. ‘ValueMatch Selling for Home Builders’ Available at BuilderBooks.com “ValueMatch Selling for Home Builders,” available through BuilderBooks.com, presents a selling process that focuses on selling feelings and appealing to prospective buyers’ emotional need to buy a new home in today’s market rather than product. Learn how to build rapport with prospective home buyers, meet their needs, make powerful presentations that are focused on their values and go for the close. To view or purchase this publication online, click here, or call 800-223-2665. How to Survive Till Next Week: One Builder’s PerspectiveBy Randy Noel, Reve, Inc. It’s easy to keep cash flowing and your business running when times are good, but what about during a downturn when cash is low and credit is hard to come by? How do you decide who to pay and how much to pay them? Be Extra Careful With the Cash on Hand When cash is short, builders have to be careful and judicious with the cash they have on hand. This means, not only saving where they can, but also making some payments and renegotiating others so they don’t send out signals of dire distress. Here are a few judicious guidelines on how to keep the cash flowing:
How you pay will vary depending upon your circumstances. If your situation is dire, you could find yourself with no choice but to put out the largest fires as quickly as you can. When paying your bills, however, your immediate goal should be to appear as normal as possible. As soon as the community believes a builder is in trouble, rumors begin and labor and suppliers intensify their collections or refuse to work or ship. And when that happens, the builder is finished. Tips on How to Slow the Cash Flowing From Your Business In addition to determining who to pay and when, you also can limit or slow the flow of cash from your business. Here are a few tips: First, seek extended terms with your major suppliers. They may allow 45-day terms, but rarely will go past your state’s lien period provision, if such a provision exists. Next, when signing personal guarantees, limit them to one year. This will require the supplier to seek a renewal every year and enable you to keep on top of the amount of personal guarantees in his market. Be sure to always sign every delivery, purchase agreement, listing agreement, tax report and other documents as the corporation or as its employee so that you aren’t personally liable for anything. Also, stop handing out checks at the office and either deliver them to the job site or mail them. Once you’ve established this policy, put every invoice on a week-from-invoice-to-payment schedule. This will give you more time to evaluate your invoices and slow the flow of cash out your door. Never pay for incomplete work. Now is not the time to extend credit to subcontractors. Try to negotiate prices before they begin their work. They are hurting, too, and they may try to make up for lost work by raising their prices. Never write checks without the money in the bank. Bounced checks are like a cancer to a home builder. They lead to rumors, and once the rumors begin, you can begin to lose credit with your lender — and a death spiral begins. You will be much better off if you do not issue a check for incomplete or substandard work than to release a check and have it bounce. Finally, look at the list above again and prioritize who should get paid first. When I did this for my father’s company, I always paid starting with those who were least able to withstand the financial crunch and ending with those who were likely to withstand it. Above all, run your business like a business and continue to remember that it is a business. When you do, everyone else will believe it, too. Randy Noel, president of Reve, Inc., is a custom home builder in the New Orleans area. He is also a member of the NAHB Business Management and Information Technology Committee.
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. Free Webinar on April 29 Looks at Negotiating With LendersA free, hour-long webinar on how to negotiate with lenders will be held on Wednesday, April 29, beginning at 2:00 p.m. A panel of home builders, a financial expert and an attorney will discuss how to do business with lenders under the current economic and credit crisis. The webinar is sponsored by the NAHB Business Management and Information Technology Committee and Builders CoPilot, creators of residential builder-oriented customer relationship management (CRM) software. During the webinar, panelists will discuss:
The webinar is free. Space is limited to the first 1,000 registrants. To register, click here. If unable to register, e-mail Amitesh Sinha. For more information, e-mail Cathy Judson. Learn How to Get a Green Edge at Audio Seminar on April 16Learn how builders, remodelers and other industry professionals are using green building to their advantage in today’s tough market during the hour-long NAHB audio seminar, “Seeing Green in a Red Market,” beginning 2:00 p.m. EDT on Thursday, April 16. Speakers will discuss their real-life experiences with green and the tools that have helped them achieve success during the downturn. Participants will learn:
NAHB audio seminars are a cost-effective way for members and their employees to learn. One registration fee per phone site enables as many people as can fit in a room to participate. The registration fee for “Seeing Green in a Red Market” is $79. To register, visit www.nahb.org/SeeingGreen. Registrants also will receive free online access to the archived seminar after April 16.
Learn More at National Green Building Conference in Dallas Kick off green building education with the seminar on April 16 and then fortify that education at the 2009 NAHB National Green Building Conference on May 8-10 in Dallas. Learn more about the critical paths to green building, articipate in interactive sessions and become part of the driving force for the green building and remodeling markets. For more information and to register, visit www.nahb.org/GreenBuildingConference.
‘National Green Building Standard’ Available at BuilderBooks.com “The National Green Building Standard,” available through BuilderBooks.com, provides “green” practices that can be incorporated into multifamily and single-family new home construction, home remodeling and additions and site development. The standard covers lot design, resource, energy and water efficiency; indoor environment quality; and owner education. Currently the first and only ANSI-approved green building rating system, the National Green Building Standard is the benchmark for green homes. To view or purchase this publication online, click here.
‘Building Greener Neighborhoods’ Available at BuilderBooks.com “Building Greener Neighborhoods,” available through Digital Delivery at BuilderBooks.com, shows those involved in building new communities the advantages and rewards of saving, planting and transplanting more trees in their developments. The examples are drawn from decades of experience of land developers, home builders and urban foresters. To download this publication in a PDF format, click here, or call 800-223-2665.
‘Profit from Building Green’ Available at BuilderBooks.com “Profit from Building Green — Award-Winning Tips to Build Energy Efficient Homes,” available through BuilderBooks.com, showcases what energy conscious award-winning builders are doing, provides innovative energy-efficient features and covers successful techniques for building this niche market. To view or purchase this publication online, click here, or call 800-223-2665. Free Online Business Survival Tips Available Till April 17Now 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: Bankruptcy/Reorganization
Members whose questions are not answered on the Web site posting will be able to call or e-mail the law firm for more information. For further information on this program, e-mail David Jaffe at NAHB.
Builders 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. Spanish Version Also Available Online A Spanish version of this increasingly popular Web site is also available to provide detailed information on the tax credit to Spanish-speaking first-time home buyers. Industry professionals are encouraged to highlight either tax credit Web site when marketing to their potential first-time home buyer market. Audio Seminar Looks at Commercial Opportunities in Stimulus PackageDuring an hour-long NAHB audio seminar next month, developers, remodelers and single-family and multifamily builders can learn how to use the economic stimulus package to diversify into commercial construction. “Stimulus Opportunities for Builders: Exploring Commercial Opportunities in the Stimulus Package” will begin at 2:00 p.m. EDT on Thursday, May 14. Sponsored by the National Commercial Builders Council (NCBC) and The University of Housing, the seminar will help participants on:
“This audio seminar will provide knowledge that individual companies do not have the time, resources or direct access to the government to attain on their own,” said Fred Hoppe, NCBC chair and scheduled seminar speaker. “This is the benefit of NAHB and council membership in today’s tough market. They will help do the homework necessary to run your business.” Hoppe, a partner at Hoppe & Harner, LLC in Lincoln, Neb., specializes in contract law in construction, commercial real estate, business, landlord/tenant and banking. He is also president of Hoppe Homes, Inc., a real estate ownership, operation and development company. Audio seminar participants will learn about a variety of government-contracted construction projects listed in the stimulus package and what they need to know to bid on — and win — government contracts. The seminar will also include information about connecting with federal contractors to work as subcontractors on commercial construction jobs. “Our members need to learn how to get in on these projects.” said Carl Harris, vice president and general manager of the Carl Harris Company in Wichita, Kan. and NCBC vice chair and moderator of the seminar. Harris said that government project money is available for schools, fire stations, public works, water treatment plants and even pseudo-government projects like hospitals. “Now that the stimulus package has passed and project money is being allotted and will be spent on these types of projects, NAHB members should be actively going after it,” said Harris. To Register The registration fee for the audio seminar is $79. The seminar will include a panel discussion as well as questions from the audience. Questions can be submitted in advance through Friday, May 8 to commercialbuilders@nahb.com. To register online, visit www.nahb.org/stimulusopportunities. For more information, e-mail Kisha DeSandies at NAHB, or call her at 800-368-5242 x8455. Free NAHB Webinar to Discuss Impact Fee Alternatives on April 21With more communities turning to impact fees to address such problems as aging infrastructure, traffic congestion, overcrowded schools and inadequate water and sewer capacity, NAHB is holding a free webinar on April 21 to give members the tools they need to shift community discussions and solutions to alternative financing mechanisms that will solve infrastructure problems in an ailing economy. The webinar, by NAHB’s Land Development Committee with support from NAHB Multifamily, will introduce builders, developers, home builders associations and land development professionals to the resources available from NAHB. Participants will also learn about strategies to press the case for impact fee rollbacks and alternative solutions. In addition, participants will learn:
To register for this free webinar, click here. The webinar is the first in a series on development issues that will be provided by the NAHB Land Development Committee. For more information, e-mail Jennifer Jones at NAHB, or call her at 800-368-5242 x8469. Builders’ Tip: Two Strategies for Storing Parts and ToolsKeeping track of small parts and tools can be a bit of a challenge when you need them in a hurry, but I’ve come up with two simple solutions that make things easy-to-find and keep them clean.
Tips & Techniques provided by Fine Homebuilding.
To contact Fine Homebuilding, e-mail Christina Glennon.
Tax Credit Web Site Looks at Opportunity of a Lifetime Builders and other industry professionals can help spur home sales by referring prospective first-time home buyers to www.federalhousingtaxcredit.com. The NAHB Web site provides detailed information on the $8,000 federal tax credit for first-time home buyers included in the economic stimulus legislation signed into law by President Obama. Consumers can use the Web site to find information on the tax credit — including a detailed question and answer section. It also includes information about other housing-related and small business measures in the legislation and a number of home-buying resources for consumers. Spanish Version Also Available Online A Spanish version of this increasingly popular Web site is also available to provide detailed information on the tax credit to Spanish-speaking first-time home buyers. Industry professionals are encouraged to highlight either tax credit Web site when marketing to their potential first-time home buyer market.
Set Yourself Apart With CGB Designation Join the ranks of the nation’s top building industry professionals with the Certified Graduate Builder (CGB) designation. The “Builder Assessment Review” (BAR) is your first step towards obtaining the CGB. This comprehensive assessment measures your expertise in the four key areas of the building industry: building technology, business and finance, project management and sales and marketing. Your results will show the areas where your knowledge is strongest and weakest and will help determine the courses required for you to obtain your CGB. To learn where the next BAR will be held, visit NAHB’s education listings, or call the Professional Designation Help Line at 800-368-5242 x8154.
BuilderBooks.com Offers More Than 250 Books That Help You Build Your Business BuilderBooks.com is your source for training and education products for the building industry. The official bookstore for NAHB, BuilderBooks.com offers award-winning publications, software, brochures and more available in both English and Spanish. To view these publications online, click here, or call 800-223-2665. Builder Outsells Competition by Focusing on Green StandardWith this year’s NAHB National Green Building Conference on May 8-10 focusing on “The Green of Green,” Virginia home builder Arjay West said that he is heading to Dallas next month to learn more about incorporating green building into his business plan and using sustainable building techniques to help gain a local market advantage over his competition. “I have actually outsold my competition lately in custom homes in Northern Virginia by using a strategy that focuses on the National Green Building Standard and my Certified Green Professional (CGP) designation,” said West, principal of West Properties, LLC in Falls Church. “As corporate policy, we have all of our homes certified through the NAHB National Green Building Program,” West said, “and we will only take on projects where the customers agree to the certification and to specifications designed to yield a minimum score of Silver.” Under the standard, homes can reach the Bronze, Silver, Gold or Emerald level, depending on their scores in six categories — energy, water and resource efficiency; lot and site development; indoor environmental quality; and home owner education and home maintenance. Requirements in each category increase by level. For example, homes at the Bronze level must be 15% more energy efficient than the 2006 International Energy Conservation Code, while homes at the Emerald level must achieve a 60% increase — in addition to meeting more stringent requirements in the other categories. “We build the cost of the certification into the sales price,” said West. “I have sold three custom homes in the last six months using this very strategy, and we have actually been able to up-sell two of the homes to Gold because the customers really get into the process and see the value of a higher score.” West said that he has won bids over other builders who were not CGPs, had no knowledge of the standard or were reluctant or unwilling to go through the certification process. “We have really embraced the opportunity to put our homes up against those of our competitors in what we like to call the first true test of performance and sustainability,” he said. West added that he is always careful not to set up unreasonable expectations. “We are careful not to overpromise and guarantee a particular level, and the customers recognize that the final score is in their hands to a large degree, as their product selections impact the final score,” he said. “What we do require is all of the mandatory elements, and then we price in other elements that we feel are most important to the ultimate performance of the home. So far, we are working on two Golds and a Silver. One of the Golds is very close to achieving a total NAHBGreen score of 700 points, is carbon neutral and has a 4-kilowatt photovoltaic system that might make the house zero-energy, depending on light fixtures selections and family usage. “The Green Building Standard, the NAHBGreen Web site and the online scoring tool are amazing tools for builders and are true testaments to those who worked tirelessly to create them. It is only a matter of time until this standard becomes the green home standard of record for homes,” West said. Registration information for the conference is available at www.nahb.org/greenbuildingconference.
“The National Green Building Standard,” available through BuilderBooks.com, provides “green” practices that can be incorporated into multifamily and single-family new home construction, home remodeling and additions and site development. The standard covers lot design, resource, energy and water efficiency; indoor environment quality; and owner education. Currently the first and only ANSI-approved green building rating system, the National Green Building Standard is the benchmark for green homes. To view or purchase this publication online, click here.
The Certified Green Professional (CGP) designation teaches builders, remodelers and other industry professionals techniques for incorporating green building principles into homes using cost-effective and affordable options. Earning the CGP demonstrates to clients and peers your commitment to the best and latest in green building practices and techniques. More than 1,000 people have earned the CGPdesignation to date. For more information, visit www.nahb.org/CGPinfo.
“Building Greener Neighborhoods,” available through Digital Delivery at BuilderBooks.com, shows those involved in building new communities the advantages and rewards of saving, planting and transplanting more trees in their developments. The examples are drawn from decades of experience of land developers, home builders and urban foresters. To download this publication in a PDF format, click here, or call 800-223-2665.
“Profit from Building Green — Award-Winning Tips to Build Energy Efficient Homes,” available through BuilderBooks.com, showcases what energy conscious award-winning builders are doing, provides innovative energy-efficient features and covers successful techniques for building this niche market. To view or purchase this publication online, click here, or call 800-223-2665. My Builder Filed for Bankruptcy, What Should I Do?Your builder has filed for a Chapter 11 bankruptcy, but worse yet, you heard it first from a prospective home buyer and were caught completely off guard. Let’s hope that a prospective home buyer is not the one who breaks news of this nature to you. It’s extremely important for the company owner to share every detail of these kinds of financial matters firsthand — before going public with such news. Briefing and educating company staff members is the only way to ensure that everybody can get on board with the strategies that I’m about to discuss. But even if you did hear the news from a prospect first, there’s no reason to panic. The first thing you must do is gather the facts. Determine the Damage After hearing the news, the first thing a salesperson must do is understand exactly what bankruptcy is and which type the company is filing. There are three types of bankruptcy:
Now the Good News Unfortunately, in today’s market, some builders will be forced to file for Chapter 7 bankruptcy and total liquidation. On the other hand, builders who choose to file Chapter 11 make a crystal clear statement to the community that they want to honor all of their debts and existing customers by utilizing this form of reorganization to allow them to manage their debt loads and continue to take care of customers during their temporary financial setbacks. A builder who files for Chapter 11 says he wants to do the right thing and intends to continue operating as usual. While it is natural for anyone to be skeptical of buying from a company that is in some form of bankruptcy, it’s equally important that potential customers understand the integrity that the builder is demonstrating at this stage of business. Delta Airlines continued to sell tickets and fly during its restructuring — providing on-time arrivals and outstanding customer service as usual for its customers. Delta emerged from bankruptcy stronger and better positioned to compete in the market. Your home builder can do the same. If You Believe, Get on Board As a sales professional, you have a tough decision to make. First, do you understand how the reorganization plan works and how this will affect customers now and in the future? Also, are you comfortable with your company’s direction and the fact that it is moving forward? If you aren’t comfortable with the Chapter 11 filing and what it means, you need to leave the company. If you understand it and agree with the builder’s intentions, you need to get on board 110% — and bring your best selling skills ever to the table so your company has its best chance at emerging successfully from the reorganization. Sales are the most important part of the entire reorganization plan because they are the lifeblood of the company. Each sales professional becomes a lifeline for the next few months as the company goes through this restructuring. Restructuring a company’s business, especially during this downturn, can be a real opportunity for everyone involved. However, sales professionals need to understand how important their role is in securing a positive outcome. If you are in, get all the way in, and help your company monetize its success in this economic environment. John A. Palumbo is CEO of The Sales DNA Institute, an idea studio and research laboratory for sales and marketing management. He has given hundreds of speeches and presented at seminars internationally on the science of sales and influence. He has been instrumental in restructuring the Sales DNA for thousands of individuals from small, family-run companies to large-scale developers such as Trump Grande International. For more information, e-mail Palumbo, call him at 904-448-1100 or visit www.SellingOnStage.com. This column cannot be reprinted without permission from the author. Tax Credit Web Site Looks at Opportunity of a Lifetime Builders and other industry professionals can help spur home sales by referring prospective first-time home buyers to www.federalhousingtaxcredit.com. The NAHB Web site provides detailed information on the $8,000 federal tax credit for first-time home buyers included in the economic stimulus legislation signed into law by President Obama. Consumers can use the Web site to find information on the tax credit – including a detailed question and answer section. It also includes information about other housing-related and small business measures in the legislation and a number of home-buying resources for consumers. Spanish Version Also Available Online A Spanish version of this increasingly popular Web site is also available to provide detailed information on the tax credit to Spanish-speaking first-time home buyers. Industry professionals are encouraged to highlight either tax credit Web site when marketing to their potential first-time home buyer market. ‘ValueMatch Selling for Home Builders’ Available at BuilderBooks.com “ValueMatch Selling for Home Builders,” available through BuilderBooks.com, presents a selling process that focuses on selling feelings and appealing to prospective buyers’ emotional need to buy a new home in today’s market rather than product. Learn how to build rapport with prospective home buyers, meet their needs, make powerful presentations that are focused on their values and go for the close. To view or purchase this publication online, click here, or call 800-223-2665. Subscribe to Sales + Marketing Ideas Magazine for Cutting-Edge Information For additional cutting-edge sales and marketing information, subscribe to NAHB’s Sales + Marketing Ideas magazine (www.smimagazine.com). Click here to learn about membership benefits of the National Sales and Marketing Council and the Institute of Residential Marketing. Promote ‘New Homes Month’ This Month With Free Online Resources
April is New Homes Month and NAHB has free resources — including marketing materials on the $8,000 first-time home buyer tax credit — available to members so they can highlight the benefits of homeownership and, in particular, buying a new home, throughout the month. New homes today are better than ever before, with numerous features and amenities to accommodate today’s discerning home buyers and their busy lifestyles. New technologies, more efficient square footage and improved layouts make today’s new homes more comfortable and livable than at any time in the past. New homes are also more energy-efficient. In fact, new homes built today are about twice as energy-efficient as new homes were just 20 years ago. {{MORE}} To help you take full advantage of New Homes Month, NAHB has developed a free, online promotional toolkit packed with resources and materials for builders and local associations to use throughout the month. The promotional toolkit — available to members only — includes a series of articles, advertisements, consumer flyers and other resources to help maximize New Homes Month. You also will find resources to promote the first-time home buyer tax credit, which is a great way to motivate potential customers to check out your new-home inventory now before they miss out on this unbeatable opportunity. These materials can be used to promote spring home shows or parades of homes and other special events you may be planning in April. To view the resources available in the New Homes Month promotional toolkit, click here. For more information, e-mail Brooke Fishel at NAHB, or call her at 800-368-5242 x8061. How to Develop and Work an Effective Job-Search StrategyBy Alan Kerschen, ConstructionJobs.com The key to succeeding is to lay out a comprehensive strategy. By defining your approach, you’ll be more effective — and feel less frustrated. Use the following tactics to make the most of your search efforts:
Alan Kerschen is a sales manager at ConstructionJobs.com, which powers the NAHB Career Center. For more information, e-mail Kerschen, or call him at 828-251-1344 x205. NAHB Has Nearly 300 Resources to Help You Run Your Business More Profitably Go to NAHB's Business Management Tools Web pages (available to members only) for instant access to nearly 300 timesaving, moneymaking and cost-cutting business resources to help you run your business more profitably. Get guidance on accounting and financial management, business strategy, computers and information technology, customer service, human resources and more. Resources are added weekly, so bookmark www.nahb.org/Biztools to go directly to these vital business management resources. Free ‘Remodeling Month’ Materials Available From NAHBWith “National Remodeling Month” less than three weeks away, NAHB has free promotional materials available to remodeler members, home builders associations and local remodelers councils to increase remodeling awareness and help them boost their marketing. The materials, developed by the NAHB Remodelers, are available on the NAHB Web site www.nahb.org/remodelingmonth, and more materials will be added in the coming weeks. The material is available by logging onto the NAHB Web site. The information available now includes easily customizable press releases, articles and plenty of marketing ideas to help promote remodeling throughout May. In addition, the information provides a step-by-step guide to lead remodelers and HBAs through a campaign. A sample of the materials available includes:
NAHB Remodelers also has a toolkit available on how to start a local remodelers council. For more information about National Remodeling Month materials, e-mail Kelly Mack at NAHB, or call her at 800-368-5242 x8451. One-Day Passes Available for NAHB’s Spring ConferencesThe NAHB University of Housing is offering economical one-day passes for two of its spring conferences — Building for Boomers & Beyond: 50+ Housing Symposium in Philadelphia and The National Green Building Conference in Dallas. The passes are being offered to help builders and other housing professionals get the most out of the conferences while maximizing their time and financial resources. They are available for specific days at each conference. Building for Boomers & Beyond The one-day pass for the 50+ Housing Symposium is available for Tuesday, April 28. The fee is $295. Activities available on April 28 include:
The conference will be held from April 27-29. For more information and all the 50+ Symposium registration options, visit www.nahb.org/Build4Boomers. Advance registration has ended, but full registration and one-day passes can be purchased onsite at the symposium.
The one-day pass for The National Green Building Conference can be purchased any day of the conference, which will be held from May 8-10. The fee for the one-day pass is $300. Activities available each day include:
For more information and to see all the National Green Building Conference registration options, including a schedule to determine the best one-day pass to purchase, visit www.nahb.org/GreenBuildingConference. Advance registration ends Friday, April 17. After that, full registration and one-day passes may be purchased onsite at the conference. General Conference Information For more information on The NAHB University of Housing conferences, visit www.nahb.org/Conferences, call the Office of the Registrar at 800-368-5242 x8338,or e-mail registrar@nahb.com.
“Right House, Right Place, Right Time: Community and Lifestyle Preferences of the 45+ Housing Market,” available through BuilderBooks.com, will help determine the right design, home features and amenities to attract boomer home buyers in your market. Author Margaret A. Wylde guides readers through the latest survey results on this important consumer group and explains what their responses mean for today’s and tomorrow’s home building industry. To view or purchase this publication online, click here, or call 800-223-2665.
“The National Green Building Standard,” available through BuilderBooks.com, provides “green” practices that can be incorporated into multifamily and single-family new home construction, home remodeling and additions and site development. The standard covers lot design, resource, energy and water efficiency; indoor environment quality; and owner education. Currently the first and only ANSI-approved green building rating system, the National Green Building Standard is the benchmark for green homes. To view or purchase this publication online, click here. Education Calendar
Learn More About Upcoming Conferences and Designations Interested in attending a University of Housing conference or learning more about NAHB designation programs? Visit www.nahb.org/notifyme, and sign up to receive more information.
Free NAHB Kit Gives Builders Back-to-Basics Tips to Navigate the Slowdown What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn. To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. Flood Hazard Maps Going From Paper to Digital Distribution
Users of paper maps should start planning to make a transition to digital flood maps and related flood insurance study reports now, FEMA said. The conversion from paper to digital, the agency said, will enable it to spent more on the maps rather than paper and provide users with better, more flexible information. The new digital tools are available to builders for a nominal fee at FEMA's Map Service Center. The simplest digital maps to use are digital pictures of FEMA’s paper maps. The agency’s entire inventory of current and historical maps is available as FIRM Scans — or pictures of an entire map — that can be downloaded; they are also available on CDs and DVDs. A specialized large-format printer is needed to create a paper copy of the whole sheet map provided as a FIRM Scan. However, for those who print on smaller paper sizes, tools are being provided to enable users to create an individualized flood map called a “FIRMette,” which is a portion of a FIRM Scan image formatted to fit on printers commonly found in offices. FEMA is also publishing other map data and tools that users with experience in computer mapping systems can use to create custom maps or use with their own map data. These range from online map viewers that will be familiar to those who use Internet mapping sites, to data and services used with specialized Geographic Information System software. Since it first started efforts in 2003 to modernize its map distribution system through online delivery of scanned maps, revisions and amendments, FEMA said that it has decreased the use of paper maps by 75% and increased new map panel production by more than 300%. For more information, e-mail Ken Ford at NAHB, or call him at 800-368-5242 x8228. New WaterSense Certification Open for BusinessThe U.S. Environmental Protection Agency announced last week that the new WaterSense certification system for water-efficient products, materials and appliances has been finalized. The new certification system outlines the procedures necessary for independent third-party product certification — the keystone for all products bearing the WaterSense label.
EPA requires all products bearing the WaterSense label to be independently certified. This certification provides consumers with confidence in both the water efficiency and performance of WaterSense labeled products. To be considered for a label, products must also:
The new system, which became effective on April 1, is replacing an interim certification process released last year. “The result will be an even more robust and transparent process for assessing the water efficiency and performance of WaterSense labeled products,” according to the EPA.
“The National Green Building Standard,” available through BuilderBooks.com, provides “green” practices that can be incorporated into multifamily and single-family new home construction, home remodeling and additions and site development. The standard covers lot design, resource, energy and water efficiency; indoor environment quality; and owner education. Currently the first and only ANSI-approved green building rating system, the National Green Building Standard is the benchmark for green homes. To view or purchase this publication online, click here.
The Certified Green Professional (CGP) designation teaches builders, remodelers and other industry professionals techniques for incorporating green building principles into homes using cost-effective and affordable options. Earning the CGP demonstrates to clients and peers your commitment to the best and latest in green building practices and techniques. More than 1,000 people have earned the CGPdesignation to date. For more information, visit www.nahb.org/CGPinfo.
“Building Greener Neighborhoods,” available through Digital Delivery at BuilderBooks.com, shows those involved in building new communities the advantages and rewards of saving, planting and transplanting more trees in their developments. The examples are drawn from decades of experience of land developers, home builders and urban foresters. To download this publication in a PDF format, click here, or call 800-223-2665.
“Profit from Building Green — Award-Winning Tips to Build Energy Efficient Homes,” available through BuilderBooks.com, showcases what energy conscious award-winning builders are doing, provides innovative energy-efficient features and covers successful techniques for building this niche market. To view or purchase this publication online, click here, or call 800-223-2665. Indiana Community Earns Green Land Development CertificationA neo-traditional community in Northwest Indiana is the first in the country to earn land development certification under the National Green Building Standard, NAHB announced last week. The 60-acre parcel was assembled from unused farm fields and old commercial sites in the town of Burns Harbor, a once-dying steel town an hour from Chicago by train. The successful — and documented — focus on environmental stewardship earned the development its certification. Approved by the American National Standards Institute (ANSI) in January, the ICC-700-2008 National Green Building Standard sets benchmarks and a verification protocol for single-family homes, apartments and condominiums; remodeling; lot and site development; and all kinds of residential construction. Already, more than 1,000 new homes, renovation projects and subdivisions are in the scoring process for the standard at www.nahbgreen.org, the online home of the NAHB National Green Building Program. “That is indicative of explosive growth in the two months since the standard was approved,” said NAHB Chairman Joe Robson. “It’s another demonstration of how NAHB is leading the green building movement to the benefit of the environment and American home buyers.” In laying out the Village in Burns Harbor, developer T. Clifford Fleming protected environmentally sensitive areas, preserving existing vegetation and the natural water and drainage features on the site while adding more plants native to the Upper Midwest. The high-density residential areas are connected by sidewalk to the town center, and two South Side railroad line stations are within five miles of the development, providing easy access for commuting. Interstate 94 also runs alongside the development. When completed, the community will include a mix of 265 single-family, semi-detached and multifamily homes and a town center with retail, residential and commercial development. Sixty homes have already been completed, including two single-family homes built by Coolman Communities that were certified earlier this year by the NAHB National Green Building Program. For homes to be certified, builders must address a range of factors, including energy, resource and water efficiency; lot design and preparation; indoor environmental quality; and education for the home owner on the operation and maintenance of the green home. The National Green Building Standard is the result of the efforts of 42 individuals, including builders, architects, regulators, code officials, product manufacturers and environmental experts who conducted four public hearings and read through more than 2,000 comments. “The certification of the Village in Burns Harbor is another great step forward as NAHB continues to move green building practices into the mainstream,” said Robson. “I congratulate Mr. Fleming, the Porter County Home Builders Association, the verifying firm of Energy Diagnostics and the home owners in Burns Harbor for leading the way,” he said. For more information, e-mail Blake Smith at NAHB, or call him at 800-368-5242 x8583.
“The National Green Building Standard,” available through BuilderBooks.com, provides “green” practices that can be incorporated into multifamily and single-family new home construction, home remodeling and additions and site development. The standard covers lot design, resource, energy and water efficiency; indoor environment quality; and owner education. Currently the first and only ANSI-approved green building rating system, the National Green Building Standard is the benchmark for green homes. To view or purchase this publication online, click here.
The Certified Green Professional (CGP) designation teaches builders, remodelers and other industry professionals techniques for incorporating green building principles into homes using cost-effective and affordable options. Earning the CGP demonstrates to clients and peers your commitment to the best and latest in green building practices and techniques. More than 1,000 people have earned the CGPdesignation to date. For more information, visit www.nahb.org/CGPinfo.
“Building Greener Neighborhoods,” available through Digital Delivery at BuilderBooks.com, shows those involved in building new communities the advantages and rewards of saving, planting and transplanting more trees in their developments. The examples are drawn from decades of experience of land developers, home builders and urban foresters. To download this publication in a PDF format, click here, or call 800-223-2665.
“Profit from Building Green — Award-Winning Tips to Build Energy Efficient Homes,” available through BuilderBooks.com, showcases what energy conscious award-winning builders are doing, provides innovative energy-efficient features and covers successful techniques for building this niche market. To view or purchase this publication online, click here, or call 800-223-2665. Impact of Review of New ESA Rules Raises Builder Concerns
On March 3, President Obama directed the secretaries of the Interior and Commerce to review Dec. 16, 2008 regulations by the Bush Administration aimed at improving the application of Section 7 of the ESA, which requires all federal agencies to consult with the U.S. Fish and Wildlife Service to ensure that their actions do not jeopardize listed species or destroy or adversely modify critical habitat. The Bush amendments — the first regulatory changes to the ESA in more than 25 years — were widely supported by the regulated community, including NAHB. The Obama White House has asked for a review of December’s amendments to the ESA — which streamline Section 7 and limit mandatory consultations — to determine if a new rulemaking is needed. In the meantime, the incoming Administration has asked officials to “exercise their discretion” to follow consultation and concurrence practices that were in place before the latest rules were announced. Also, the omnibus appropriations bill signed by the President on March 12 gives the Commerce and Interior secretaries the opportunity to unilaterally revoke the Dec. 16 ESA amendments — without public notice or comment. “In the wake of these two events, it is unclear how or when the Administration will move forward in making its decisions or how current ESA consultations will be completed,” Howard said. “These answers are critical to ensuring the uninterrupted implementation of the ESA.” Increased Costs and Long Delays Howard indicated that ESA regulation has serious implications for the nation’s home builders. “NAHB members, and by extension members of the public who are seeking to purchase a new home, are often directly impacted by the consequences of the ESA Section 7 consultation process through various permitting restrictions and terms placed on residential construction projects that limit the number of housing units, increase costs and result in project delays,” Howard said. NAHB members whose land development projects occur in areas believed to be inhabited by an endangered species are affected by the ESA consultation requirements when their proposed land development activity triggers the need for a federal permit, such as a wetlands permit. During the consultation process, developers and builders often are required to modify their projects by eliminating buildable lots and paying expensive offsite habitat mitigation fees to federal agencies; they can even have their project rejected. A 2003 report to Congress by the Government Accountability Office found dozens of examples where the permitting process delayed even routine residential projects by more than two years. A Timeframe, Limits and Clarification Needed In his letter, Howard urged the secretaries of the Interior and Commerce to “identify the timeframe during which the review will occur, limit their review to the consultation requirements [and not a wholesale review of the ESA] and clarify how current projects that have or are undergoing consultation will proceed.” “Due to both the uncertainties associated with the consultation process and the need to provide continued protection for federally listed species,” Howard said, “the agencies are urged to identify target dates for the completion of their review and any subsequent rulemaking, should one be deemed necessary.” Howard’s letter also voiced concern that President Obama’s amendment was silent on how the agencies are to treat projects that are currently undergoing consultation. For example, consultations under the new Bush rules were completed on Feb. 19 for two highway infrastructure projects in Portland, Ore., but uncertainties on the validity of permits raised by the Obama memorandum could potentially bring this and other projects to a halt, until clarification is made. Howard also voiced opposition to the Interior and Commerce departments revoking the Dec. 16 rule under language inserted by Congress into the funding bill. “NAHB does not believe revoking legally issued rules without providing an opportunity for public notice and comment is prudent or consistent with either the President’s memo or his pledge to conduct the business of the American people in an open and transparent manner,” he said. “If the results of the presidentially initiated review of the Dec. 16 rule indicate that it should be repealed, the agencies are strongly urged to follow the same rulemaking protocols and processes to rescind the rule as were followed to enact the rule, including public participation,” Howard said. For more information on the Endangered Species Act, e-mail Michael Mittelholzer at NAHB, or call him at 800-368-5242 x8660. 2010 Energy Value Housing Awards Now UnderwayThe Energy Value Housing Award program for innovative energy-efficient homes is now accepting applications for the 2010 honors. Entry forms are due on June 30. Administered by the NAHB Research Center with the support of the U.S. Department of Energy, the National Renewable Energy Laboratory and NAHB, the award honors builders who elevate the standards for high-performance home building by voluntarily incorporating energy efficiency into all aspects of new home construction. Winners are selected from among applicants who compete from three climate regions (cold, moderate, hot) and in five categories (affordable, custom, factory-built, production and multifamily). EVHA winners are announced and honored at the EVHA Banquet held during the International Builders’ Show. New this year, homes that are part of the Department of Energy’s Builders Challenge program will receive special consideration during the judging process. These homes must have a HERS Index of no more than 70 and any items that are required as part of the Builders Challenge Quality Criteria must be documented as indicated throughout the EVHA application. These applicants must also be registered as Builders Challenge Partners before submitting their forms for EVHA. All interested builders must complete the EVHA Application Form and attach supporting documentation — including test reports, photographs, videos, drawings, product literature, testimonials, awards, marketing pieces and other supporting materials that illustrate features or describe details. Winners receive a plaque, publicity materials for local marketing, copies of the EVHA Winners publication, recognition on the NAHB Research Center Web site and national recognition through news releases, Web sites and a link from the Research Center to each winner’s Web site. For more Energy Value Housing Award information and to download an application for 2010, visit www.nahbrc.org/evha. Desiderio Named Research Center’s Green Building Director
“We are excited to add Michelle to our green building team,” said Michael Luzier, president of the NAHB Research Center. “She is a seasoned industry professional with a wealth of experience in the environmental arena,” Luzier said. “She is exactly the right person to have at the helm of our National Green Building Certification program, especially now as so many opportunities have been created for builder, remodeler, developer and manufacturer participation with the ANSI approval earlier this year of the National Green Building Standard.” Just prior to joining the NAHB Research Center, Desiderio was a planner with the National Capital Planning Commission, where her efforts led to the collaboration of more than 100 federal and local leaders at a two-day forum to develop comprehensive flood mitigation measures for downtown Washington, D.C. Desiderio previously managed Fannie Mae's Housing and Environment Initiative, which promoted housing affordability through energy- and location-efficient homes. At Fannie Mae, she developed the Smart Commute Mortgage and revamped the Energy Efficient Mortgage to promote green housing homeownership. In addition, she developed a patent-winning methodology to calculate the emissions reductions from energy-efficient homes so they could be sold as energy credits on emerging carbon markets. As assistant staff vice president for NAHB, Desiderio represented the home building industry on legislative and regulatory policy issues regarding endangered species, air quality and solid waste management. She also wrote “The Developer’s Guide to Endangered Species Regulation,” which remains a definitive resource on ESA policy and regulation for the residential development industry. Since February 2008, the NAHB Research Center has been administering the National Green Building Certification, using the NAHB Model Green Home Building Guidelines as its scoring platform. The option to have a project scored to the National Green Building Standard became available when the standard was approved by ANSI this January. For more information on National Green Building Certification and the National Green Building Standard, visit the NAHBGreen Web site. Project CRAFT Grad Earns Scholarship, Turns Life Around
Similar to HBI’s Herman and Patsy Smith Fund for Excellence in the Trades, the Eckerd Foundation provides scholarships to juvenile ex-offenders to help them make the transition from the justice system back into society. From a young age, Holmes was in the Tampa, Fla.-area foster care system and bounced around from family to family. By the age of 14, he was entrenched in the Florida Department of Juvenile Justice (DJJ) system and he faced a bleak future. In January 2008, Holmes enrolled in Project CRAFT while at the Avon Park Youth Academy and began to see gradual changes in his attitude, work ethic and outlook on life. He excelled in HBI instructor Rick Miller’s plumbing class, earning his industry-sponsored Pre Apprenticeship Certificate Training (PACT) and his GED, making him a viable candidate for the Eckerd award. Demonstrating his commitment to turning his life around, Holmes also completed all DJJ restitution requirements — including paying fines and writing letters of apology to those he harmed. Many students do not complete this step, waiting instead until they turn 18 and DJJ’s statute of limitations expires. Holmes used the award money to secure an apartment with enough space for his two children to come visit. He has been employed by Hillsborough Citrus in Tampa for the past five months and works as a freelance plumber on the weekends to help support his family. “Jonathan’s story is heartening,” said HBI trustee and Florida builder Bill Paul. “Here’s a young man who made a conscious decision to change and did not waver from that path. Project CRAFT gave him the skills to succeed in the workplace, but more importantly Jonathan gained the confidence to persevere when things were tough. Jonathan is a courageous young man with a bright future. Everyone at HBI is proud of him.” Funding for Avon Park and Florida’s four other Project CRAFT sites at Tampa, Red Road, Dozier and Orlando was recently renewed by the Florida Department of Juvenile Justice. Project CRAFT trains more than 500 youths annually in Florida; more than 90% of its graduates are placed in industry jobs, the military or school. As part of their PACT training, each year CRAFT students spend approximately 30,000 hours working on community service projects. For more information on Project CRAFT, e-mail Dennis Torbett at HBI, or call him at 800-795-7955 x8908. Garbage Disposals Included in Green Building StandardThe installation of food waste disposers from InSinkErator, a division of St. Louis-based Emerson Electric Co., and other specified manufacturers will now contribute one point towards a building’s achievement of certification under the National Green Building Standard, the nation’s first and only American National Standards Institute (ANSI)-approved residential green building rating system. The standard defines what green practices can be incorporated into residential development and construction and how home owners can operate and maintain green homes. A minimum number of points is required for each of seven guiding principles in the standard, at various levels, to ensure that all aspects of green building are addressed when constructing an environmentally friendly house. “The decision to assign one certification point to builders for installing disposers signifies an important step in educating builders and consumers — nationally and internationally — that food waste disposers play a beneficial role in environmental responsibility,” said David McNair, vice president of marketing at InSinkErator. “It’s a very rewarding accomplishment for us, and we’re very excited to be associated with the National Green Building Standard.” Because food waste is 70% water, it is best treated by grinding it in a disposer and sending it down a drain to be processed in municipal wastewater treatment plants. Many large municipal treatment plants capture the methane that’s a byproduct of treatment and convert it into renewable energy. Wastewater treatment plants can also recycle the biosolids, turning them into compost-free fertilizer. Using a disposer helps reduce biodegradable waste put into the trash, in turn reducing the waste sent to landfills. More than two dozen independent studies confirm that disposers can play an essential and compelling role in solving the waste management challenge, according to InSinkErator. Disposers, the manufacturer says, leave a modest environmental footprint, using less than 1% of a household’s water consumption, and cost less than 50 cents a year in electricity to operate. Composed primarily of metal, they can be recycled at the end of their useful life. The InSinkErator Evolution Excel food waste disposer features advanced grind and noise-reduction technologies, handling more volume and more types of food waste while making 60% less noise than standard disposers. For more information, click here. Headquartered in Racine, Wis., InSinkErator is a member of the National Council of the Housing Industry — The Leading Suppliers of NAHB. This feature is solely for educational and informational purposes. Nothing on this page should be construed as policy, an endorsement, warranty or guaranty by the National Association of Home Builders of the featured product or the product manufacturer. The National Association of Home Builders expressly disclaims any responsibility for any damages arising from the use, application or reliance on any information contained on this page. NAHB-Produced Programs on DIY, Fine Living and HGTVThe NAHB Production Group produces weekly television shows on DIY, Fine Living and HGTV for consumers. The following is the latest lineup: "Rock Solid" on DIY
"I Want That" on Fine Living
HGTV Seeking ‘Dream Home’ Builder/Architect Teams HGTV is seeking developers, builders and architects to create the 2010 HGTV Dream Home, the grand prize in the network's annual sweepstakes. To learn more, click here. About the NAHB Production Group The NAHB Production Group is a full-service, self-contained, media production unit creating programming for cable television, broadcast television, non-profit, museum and corporate clients. Productions range from magazine format shows for general audiences to museum-installation videos for specialized use. The production group includes award winning journalists, writers and photographers with experience in broadcast, documentary and corporate television.
Free NAHB Kit Gives Builders Back-to-Basics Tips to Navigate the Slowdown What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn. To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. HBAs: Challenge/Build/Grow Proposals Due April 17Applications by state and local home builders associations for the Challenge/Build/Grow (CBG) matching funds initiative are due by Friday, April 17. Under the program by the National Housing Endowment, the philanthropic arm of NAHB, 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. For Applications and Guidelines Applications and guidelines can be downloaded from the endowment Web site by clicking here. Completed proposals can be e-mailed to the endowment at nhe@nahb.com. HBAs requesting grants are encouraged to seek advice on their proposals from the endowment staff well in advance of the deadline. Since the program was launched in 2001, more than $175,000 has been awarded to state and local HBAs throughout the country. For more information about grant opportunities, or to download funding guidelines, visit www.nationalhousingendowment.org. Apply for Herman J. Smith Scholarships by May 4
The Herman J. Smith Scholarship Fund, honoring 1981 NAHB President Herman J. Smith, provides assistance to graduate and undergraduate students studying construction management, mortgage finance and related fields. Last year, 12 students were awarded scholarships totalling $24,000. “We are so proud to work with the National Housing Endowment to provide educational opportunities for worthy students,” said Patsy Smith, who serves as a life trustee for the endowment. “Herman’s favorite motto was ‘always leave the woodpile higher than you found it.’ I believe this scholarship is a testament to his philanthropic work and to his great love of this industry.” Since its inception, the Smith scholarship has awarded more than $164,000 to exemplary students. Applicants interested in applying for the scholarship funds must be in a housing-related program such as construction management, construction technology, civil engineering, architecture, design or any of the trade specialties at a college or university. Preference is given to students who are residents of Texas or who are attending a Texas college or university, and who are active members in the NAHB Student Chapter at their college. To Apply Smith scholarship applications and instructions can be downloaded from the National Housing Endowment Web site by clicking here. Applications are available in Word and PDF formats. About Endowment Scholarship Programs The endowment administers 12 scholarship programs and awards more than $300,000 each year to students pursuing careers in residential construction and related fields. For more information, visit the endowment Web site at www.nationalhousingendowment.org. Nation's Oldest HBA Celebrates 100 Years of ServiceThe Master Builders Association of King and Snohomish Counties (Master Builders) is performing 100 community service projects this year in celebration of its 2009 centennial. The association is the oldest and largest of NAHB’s more than 800 local home builders associations. “The home building industry has been a vital force in the economic health of King and Snohomish counties and Washington State for a century,” said John Day, president of the Master Builders. “We are proud to celebrate our 100th year of building and remodeling homes by performing community service and projects in King and Snohomish counties. This is a once-in-a-lifetime opportunity to recognize our longevity and contributions of our members in making this region one of the envies of the world.” The association has established a long-standing record of community service — including such projects as building free access ramps for disabled home owners, building and maintaining shelters for homeless individuals and families and educating young people about career opportunities in the construction industry. Working with Centex, Master Builders and its Master Builders Care Foundation completed the first of its 100 projects on Jan. 15 with the dedication of three new apartments and a community center at Vision House, a new transitional housing facility in Renton. The new building that was completed provides transitional housing and support services, primarily to children and homeless mothers. Association volunteers gave their time and materials to make it happen. This was the third homeless shelter dedicated by the Master Builders Care Foundation in only nine months. At the end of this week, on April 17, staff members of the association will join EarthCorps, City Year and the Seattle Parks Department in support of a Green Seattle Partnership project in the West Duwamish Greenbelt, which is the largest greenbelt in the city of Seattle. Comprised of nearly 182 acres, the greenbelt is home to fox, red-legged frogs, hawks, bald eagles and an abundance of native plant life. Master Builder staff members will work on restoration efforts in the upland forest habitat by removing invasive plant species, grubbing out invasive blackberry roots, spreading mulch and maintaining past restoration sites. The largest of the association’s 100 centennial projects will be the construction of a laboratory and education space at the Mercer Slough Environmental Center in Bellevue that will enable students to participate in hands-on environmental experiments. The center hosts environmental educational programs for more than 150,000 children a year. Other projects include service to local shelters on the last Friday of each month, food drives at general membership dinners, a clothing drive at the 2009 Northwest Builders Show in December and special projects on Memorial Day and Earth Day. In addition to its 100 Community Service Projects, the association is celebrating its centennial with a picnic for all its members in July, a black-tie gala in December and the publication of a definitive history of the association and the role it has played in the development of the region. Following two decades of rapid and unchecked rebuilding from the Great Seattle Fire of 1889, Master Builders was started in August 1909 by five builders who came together to create standards, solid business practices and well-built homes for consumers. By June 1916, the association had more than 70 members, who soon began to realize the power of helping each other to become more successful and to expand opportunities to serve and improve the community. During World War I and World War II, the association led the local effort to build wartime workforce housing. During World War I, association members built 2,000 homes in two months, ensuring that the Seattle area could keep its lucrative government wartime contracts. In the midst of a cyclical downturn in residential construction that has made association resources more important than ever, the local home building industry currently employs more than an estimated 50,000 workers. “While celebrating our centennial, it is important to remain focused on helping members sustain their businesses,” said Samuel L. Anderson, executive officer of the Master Builders. “Our association is as committed now as it has ever been to improving the lives of our members during this difficult economy.” The association consistently delivers critical services to its members — including health and other insurance, cutting-edge educational classes through its MBA University, a variety of employee benefit programs, and marketing and network activities. The Master Builders Association is currently the largest purchaser of Regence Blue Shield health insurance in the state, and it insures more than 50,000 men, women and children. 'Struggling' HBAs, Apply for NAHB Assistance Grants by April 24As part of a federation-wide assistance program recently created to strengthen state and local home builders associations during the downturn, NAHB is offering grants of up to $25,000 to up to 139 struggling HBAs that have not been able to achieve specific membership and retention thresholds. Applications will be reviewed at each NAHB Board of Directors meeting and HBAs should be prepared to present their proposals to an NAHB task force either in person or via teleconference. Under the program, these identified HBAs are eligible to apply for grants from a one-time fund of $500,000 to fund membership recruitment, retention and other core revenue-generating member programs and consulting services available through NAHB. To be considered at the spring board meeting, applications must be submitted by Friday, April 24. For more information about the grant program, to determine grant eligibility or to apply, e-mail William "Rusty" Deiss at NAHB, call him at 800-368-5242 x8231, or visit www.nahb.org/hbasupport. Discounted Association Management Services Available for All HBAs In addition to the assistance grants, discounted NAHB State and Local Support Services now are available to all state and local HBAs. Participating HBAs will receive a 50% discount on the vital cutting-edge programs and services — such as strategic planning, membership recruitment and leadership training — offered by the NAHB Affiliate Services department. The programs and services, given by NAHB’s association management consultants, provide HBAs the planning and evaluative assistance they need to make tough choices in today’s challenging market. For more information, e-mail Jared Mathis at NAHB, call him at 800-368-5242 x8169, or visit www.nahb.org/nahbsupportservices. The NAHB grant assistance and discounted services program, approved by the NAHB Executive Board at its meeting in Washington, D.C. last month, was created to help state and local HBAs operate effectively during the downturn and be in position to thrive and help their members prosper when the housing market eventually returns. Office Depot Offers Members 14 Deals Under $5For a limited time, Office Depot is offering NAHB members 14 hot deals on office essentials, all for under $5. This offer is in addition to the everyday 10% Office Depot discount available to NAHB members and home builders associations that have signed up for the Office Depot Member Advantage program. As part of the program, Office Depot also offers free shipping on orders of $50 or more. To learn more, click here. Other Member Advantage Discounts For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to www.nahb.org/MA.
Free NAHB Kit Gives Builders Back-to-Basics Tips to Navigate the Slowdown What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn. To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. FTD Offers 15% Discount to NAHB MembersNAHB members can get a 15% discount on all flowers, gifts and gift baskets from FTD, the newest NAHB Member Advantage participating company and the world’s oldest and one of the best known brands in the floral business. Members can choose from gorgeous red roses, Vera Wang exclusive floral designs, spa sets, chocolates, wine baskets and more. They can also take advantage of FTD’s “Good as Gold” seven-day satisfaction guarantee of receiving beautiful, floral arrangements and plants that are guaranteed to last at least seven days. Plus, FTD's same-day delivery and guaranteed satisfaction are also available with "Say It Your Way" bouquets that are delivered with your own personal audio greeting. With 15,000 retail florists and 45,000 international affiliates, FTD can provide same-day floral service to nearly 100% of the U.S. population. FTD owned and operated U.S. call centers also offer 24/7 availability, including all major holidays. To use the NAHB Member Advantage 15% discount, visit www.ftd.com/nahb , or call 800-SEND-FTD (800-736-3383) and mention code 17421. Other Member Advantage Discounts For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to www.nahb.org/MA.
Free NAHB Kit Gives Builders Back-to-Basics Tips to Navigate the Slowdown What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn. To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. Avoid Visa/Master Card Hikes in Processing With SolverasEven 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 more information, call 800-613-0148, or request request a free analysis online. Other Member Advantage Discounts For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to www.nahb.org/MA.
What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn. To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. Spring Board Last Chance for Spokesperson Training in 2009Register online or the NAHB Spokesperson Training one-day sessions — “Interview Skills” and “Presentation Skills” — at the upcoming NAHB spring board of directors meeting in Washington D.C. in May. These sessions will not be offered during the fall board of directors meeting in Chicago, so the spring sessions will be the last opportunity for NAHB members to receive this valuable training this year. 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. Spring Board Spokesperson Sessions:
The fee for each seminar is $495 per person. For more information and to register, click here. Each seminar is led by professional communication consultants who have more than 30 years of experience training NAHB members on the critical issues they face every day. More than 15,000 NAHB leaders have taken Spokesperson Training since the program began in 1979. For more information, e-mail Brooke Fishel at NAHB, or call her at 800-368-5242 x8061. Pitney Bowes Postage Meters Offer Convenience, SavingsPitney 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.
Free NAHB Kit Gives Builders Back-to-Basics Tips to Navigate the Slowdown What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn. To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. Calendar of Events
Learn More About Upcoming Conferences and Designations Interested in attending a University of Housing conference or learning more about NAHB designation programs? Visit www.nahb.org/notifyme, and sign up to receive more information.
Free NAHB Kit Gives Builders Back-to-Basics Tips to Navigate the Slowdown What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn. To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. |