Nation's Building News Online: June 29, 2009

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Big Boost in Housing Demand Expected From Echo Boomers

Depicting the current housing downturn in sobering terms, the 2009 "State of the Nation’s Housing" report released by Harvard University’s Joint Center for Housing Studies on June 22 nevertheless gives home builders firm assurances of a resurgence in demand once the echo-boom generation gains a footing in the housing market.

Born from 1981-2000, members of the echo-boom generation, Harvard says, will boost annual average household growth to more than 1.25 million during the decade of 2010-2020 — even under the worst of circumstances.

“While the economic crisis has dampened household growth, the sheer size of the echo-boom generation will give a powerful boost to long-run housing demand,” the report says.

However, “a severe and prolonged recession,” according to the housing economists at Harvard, could reduce immigration, which is a key driver of household growth.

Two household growth projections were made for this year’s report: one based on the latest population projection from the Census Bureau in which annual net immigration increases from 1.1 million in 2005 to 1.5 million in 2020, and more than 2.0 million by 2050; and one in which these immigration assumptions are cut by half as the result of a worse than expected recession.

Even under the weaker scenario, in which there would be 2.3 million fewer household formations in 2010-2020, average annual household growth can be expected to be comparable to the growth experienced from 1995-2005 as members of the echo-boom move into the prime household formation and home buying ages of 25 to 44.

“The number of echo boomers aged 25 to 44 will eclipse the number of baby boomers when they were those same ages by more than 5.9 million,” according to the report.

“With the number of households in this age group projected to increase between 2.0 million and 3.4 million, the demand for rentals and starter homes will surge,” the Joint Center says. “Meanwhile, with their longer life spans and sheer numbers relative to the preceding generation, the baby boomers will add dramatically to the number of households over 65. This will lift demand for retirement communities as well as services and home improvements that help seniors age in place.”

Among other results related to household growth that will be felt in the home building industry:

  • The ethnic diversity of the echo-boomers will accelerate household growth among Hispanics and Asians. “Even under low immigration assumptions, Hispanic household growth will increase from 3.5 million in 1998-2008 to 4.5 million in 2010-2020, while Asian household growth will increase from 1.5 million to 2.5 million. White household growth, in contrast, will slow sharply from 4.3 million to 3.3 million, and black household growth will slip from 2.4 million to about 2.2. million.

  • Married couples without children — including empty-nesters — will be the fastest growing household type, followed closely by single-person households. “While the number of married couples with children will fall by nearly a million among whites, it will increase by more than a million among Asians and Hispanics.”

  • Housing now occupied by many older white baby boomers will be well suited to the needs of younger and generally larger minority households, although there is a question about whether minority households, with their lower incomes, will be able to afford these homes.

    “As the baby boomers and older generations begin to turn over their homes to younger households, adjustments to the existing stock are likely, both through remodeling and pricing,” the report says. “The first wave of change will occur in the inner suburbs of large metropolitan areas where people now in their 70s and 80s are concentrated, then fan out to the outer suburbs as the baby boomers start to downsize.”


“With the echo baby boom driving demand for starter homes and apartments and the baby boom powering demand for homes suited to older Americans,” the design professions will be called upon to deploy new technologies and designs to meet the aesthetic tastes and functional needs of a new, more diverse younger generation on the one hand and a generation in need of home modifications to help them age more safely and healthfully in place on the other,” said Mohsen Mostafavi, dean of the Harvard University Graduate School of Design.

Finding the Bottom

Housing analysts at the Joint Center were less optimistic about the near-term outlook for housing, with “withered” housing demand struggling to get out from under the weight of crushing job losses, house price deflation and tighter credit standards.

“The best that can be said of the market is that house price corrections and steep cuts in housing production are creating the conditions that will lead to an eventual recovery,” said Eric Belsky, executive director of the Joint Center. “For now, markets remain under considerable stress.”

On hand for the release of the report in New York, Gary Garczynski, president of NAHB in 2002, said that the association is “perhaps a tad more optimistic about the immediate outlook for housing” than the Joint Center.

“We believe that we are at or very near the bottom of the market,” Garczynski said. “Existing home sales are rising, new home sales have bottomed, the inventory of unsold homes is slowly being whittled down and the decline in home values appears to be moderating. Equally important, builders and consumers appear to be a little more confident than they were three to six months ago.”

He also cited the beneficial effects of a significant rise in housing affordability and the $8,000 federal tax credit for first-time home buyers, but voiced agreement with the Joint Center’s view that rebuilding the housing finance system and restoring the flow of credit to home builders is critical to turning around the housing market.

“The credit crunch for builders has seriously undercut the nation’s housing delivery system. Until we get credit flowing to builders for construction and development loans, it will be tough to revive this economy,” Garczynski said.

“Moreover, the nation’s housing finance system needs to be shored up. Today, nearly all new mortgage originations are government backed — flowing through Fannie Mae and Freddie Mac or insured or guaranteed by FHA and VA.” Also, “the private market for jumbo loans is virtually nonexistent....Private investors must regain their confidence and get back in the market before the jumbo loan market can turn around.”

Garczynski said that the recovery is likely to be slow and spotty, beginning in places that did not experience unsustainable increases in housing production during the boom years. “Generally speaking, housing markets closer to the urban core and job centers could be on the leading edge of the recovery. Outlying rings of metropolitan areas will recover later once the inventory of unsold units declines to more normal levels.”

He also noted that demand for infill and higher density development could increase markedly in the period ahead. “This will require a spirit of cooperation between builders and the local officials who control the zoning and development process,” he said. “Hopefully, this will lead to greater acceptance of the smart growth principles NAHB has been advocating since the beginning of this decade.”

Floor Plans: A Federal Farmhouse With Built-In Sustainability

Project:
Panelized Home

Manufacturer:
Connor Homes

Builder:
Columbia Country Historic Homes

About 30 miles from Albany, N.Y., on a hidden parcel of land in Chatham sits a new, “old” panelized construction-built farmhouse using sustainable green materials and systems and accented with salvaged lumber and other recycled materials. 

The home owners wanted to use both passive and solar energy to power the home, so they worked to design and site the farmhouse for maximum solar gain.

 

 

A solar grid on the south facing roof provides heat and hot water while passive solar heat is generated through the windows, doors and transoms.

To meet the home owners’ needs, Connor Homes, based in Middlebury, Vt., enlarged its custom-milled kit, the Emmaline Gabrielle Farmhouse, with a slightly larger mudroom and larger second floor master suite bathroom. The manufacturer also added an attached barn that serves as a two-car garage — with enough second-story space for a future loft studio. The location of the “barn” provides a courtyard feel toward the front door.

Federal-inspired detailing is found in the asymmetrical front entry and fireplace, generous overhangs, 12/12 window patterns and 10/12 roof pitch.

 

 

A louvered cupola sits atop the barn/garage finished with vertical board shiplap siding.

While the Emmaline Gabrielle Farmhouse plan with its wrap-around porch was the original  inspiration for the home, the porch for the Chatham home was only carried along the north side to protect the entry doors. On the other sides of the home, the glass and doors were exposed so they could take full advantage of the sun’s path.

Columbia County Historic Homes, a local, full-service general contractor, began excavation in November 2005 and the house was framed less than three months later. Since the home was being built during the winter months in upstate New York, Connor Homes built the walls in its factory as the home's ICF insulation foundation was being installed to ensure that the home could be erected quickly once the foundation was completed. 

Exterior trim finishes include energy-efficient Green Mountain Windows, insulated glass doors, vertical grain hemlock siding on the house and vertical board pine siding on the barn. A covered porch protects the main entrance and the mudroom door and a louvered Connor Homes cupola sits atop the barn.

 

 

The dining/living room space features ample southern exposure and salvaged heart pine flooring.

A mix of materials and furnishings accents the interior. The home owners found salvaged wood floors from Antique & Vintage Woods of America and placed reclaimed light fixtures — many of them family heirlooms — throughout the house. These and other reclaimed materials in the home helped to reduce the amount of construction waste that would otherwise have been shipped to the landfill.

The general contractor created the cherry kitchen cabinets and custom library by milling locally harvested cherry on site. Connor Homes provided the stairs, doors and interior trim.

The home owners chose several sustainable features when designing and building their home. They specified large, double hung windows and triple French doors, both with overhead transoms, to allow plenty of natural light and warmth to flood the house.

The home features two types of solar panels installed on its southern roof exposure to provide solar heating and domestic hot water.

The Energy Star-rated farmhouse also has grid-tied photovoltaics, a heat recovery ventilation system, radiant floor heating, a high-efficiency propane boiler, low-flow toilets, energy-efficient appliances, an insulated ICF foundation and Icynene foam wall insulation.

 

 

The kitchen was created using locally milled cherry.

 

Because the house was built to be so tight and energy-efficient, when finishing the interior, the home owners used only non-toxic and low-VOC finishes to maintian a healthy air quality.

Th finished house is the product of the home owners, manufacturer and general contractor working together to blend green technologies with classic New England design to create an energy-efficient and attractive one-of-a-kind home.

 

 

The living room features one of two fireplaces in the home. The other is in the study.

 

 

Reclaimed mushroom floors were installed in the entry hallway.

 

 

The screened porch is top with a tongue and groove ceiling.

 

 

First Floor
Click for larger image

 

 

Second floor
Click for larger image

Features and Specifications

  • Federal-style farmhouse with attached New England-style barn

  • 3,328 square-foot home with 624 square-foot barn, 624 square-foot studio and 324 square-foot screened porch

  • Durable wood siding, trim, windows and doors with standing seam roof

  • Green Mountain Window with simulated divided lites and argon-insulated Low-E windows

  • Reclaimed light fixtures with energy-efficient bulbs

  • Doors with reproduction glass knobs

  • Home Recovery Ventilator (HRV) whole house system to keep indoor air fresh

  • Solar hot water/thermal, solar photovoltaics

  • Passive solar heating featuring maximum southern exposure to French doors and triple window units with transoms

  • Energy Star-rated home

  • Reclaimed wood floors of mushroom wood, heart pine, larch and fir

  • Cork flooring in attic

  • Sprayed Icynene insulation

  • Radiant heating/ HVAC:  Munchkin boiler,  Lifebreath Heat Recovery Ventilation

  • Kitchen and library woodwork milled on site from native cherry harvested locally

  • Arxx ICF foundation

  • Minimal site disturbance — worked with natural contours, no clearing of trees

  • Low-VOC interior paint

  • Reclaimed landscaping stones


Manufactured by
Connor Homes, Middlebury, Vt.

 

More States Help First-Time Home Buyers Monetize Tax Credit

With the recent addition of Nebraska, Texas and Virginia, 13 states have now taken steps to monetize the $8,000 tax credit for first-time home buyers so that it can be used for downpayments and closing costs.

The other 10 states with programs are: Colorado, Delaware, Idaho, Kentucky, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania and Tennessee.

Among the provisions of the latest state initiatives:

  • According to the Nebraska Investment Finance Authority’s Web site, first-time home buyers can get a second mortgage loan in an amount up to 85% of their expected federal first-time home buyer tax credit (not to exceed $6,800). The loan will be structured as a second mortgage, with the expectation that it will be paid by the borrower from their tax credit refund. If the second mortgage loan is repaid within 120 days of loan closing, the interest rate and monthly payment amount on the first mortgage will be reduced by a pre-determined amount.

  • The Texas Department of Housing and Community Affairs provides two options for first-time home buyers: the 90-Day Down Payment Assistance Program and the Mortgage Advantage Program. While they both provide assistance of up to 5% on the first lien mortgage, the 90-Day program maxes out at $7,000 and the Mortgage Advantage Program’s limit is $6,000. Repayment times also vary for the two programs, at 90 days and 120 days, respectively.

  • In Virginia, home buyers have up to a year to pay back the interest-free second mortgage provided by the Virginia Housing Development Authority (VHDA) based on a home buyer’s qualification for the first-time home buyer tax credit. The loan is up to 5% of the sales price and to qualify the home buyer must have a minimum credit score of 620 and participate in a free VHDA homeownership education class prior to loan approval.


The National Council of State Housing Agencies (NCSHA) has established an information clearinghouse on tax credit monetization programs for consumers and other state agencies. To read up-to-date information on these programs, click here.

For more information, e-mail Brooke Fishel at NAHB, or call her at 800-368-5242 x8061; or contact Robert Dietz, x8285.

Nation's Building News Will Not Be Published on July 6

Nation's Building News will not be published on July 6. Regular weekly publication will resume July 13.

Happy Fourth of July.

New Appraisal Rules Blamed for Killing Some Sales

Real estate agents and mortgage brokers say home appraisals are coming in lower than agreed-on prices and disrupting sales because of new appraisal rules put into effect by Fannie Mae and Freddie Mac on May 1. At the heart of the new code is a rule prohibiting mortgage brokers from ordering an appraisal directly from the appraiser. They now have to go through the lender, and increasingly lenders are using third-party appraisal management companies to parcel the work out to individual appraisers. The idea is to insulate the appraiser from pressure to inflate home values, but critics say the appraisal management companies have boosted fees to consumers by about 40% while drastically cutting the amount paid to the appraisers doing the actual work, and pocketing the difference. Inexperienced appraisers, often from out of town but willing to work cheaply, are rushing through jobs and making costly mistakes, they say. Donna Evers, president of Evers & Co. in Washington, D.C., said: “Yes, we are having trouble with appraisals….Lenders are pulling back too much (like the pendulum swinging too far in the opposite direction) and the appraisers are under-appraising like mad.” Sue Goodhart, a McEnearney agent in Alexandria, Va., said, “I think it will be less of an issue as we get into the next few months” when there will be higher recent sales prices to back up appraisals. (www.washingtonpost.com)
Washington Post (6/27/09); Elizabeth Razzi, with Emma L. Carew

Home-Price Recovery May Be Undermined by Appraisals

Flawed appraisals are derailing real estate sales and depressing values across the U.S., the National Association of Realtors® said as it reported that existing home prices declined 17% in May from a year earlier. “It’s pointing to thousands of delayed or canceled transactions,” Lawrence Yun, the association’s chief economist, said in an interview. “We’ve had a massive inundation from members saying this is a big problem.” Low appraisals have become a focus of the California Office of Real Estate Appraisers, which oversees licensed appraisers in the state. Investigations by the Sacramento-based agency rose 36% to 418 at the end of May from the same period last year, said Bob Clark, director of the office. The probes are looking into allegations including flawed valuations and use of comparable sales too far from the subject property, he said. California real estate investor Bruce Norris renovated a three-bedroom home in the Riverside-San Bernardino, Calif., metropolitan area in January and found two buyers willing to pay $165,000. An appraiser put the value 15% lower. The prospective purchasers walked away and now he’s renting the house instead. “Low appraisals that lead to a sale reduce comparable prices in a neighborhood and make it impossible for another group of people to refinance,” Norris said. “Just as the lack of careful regulation led to inflated prices, the return to regulation is reinforcing the downturn,” said Susan Wachter, a real estate professor at the University of Pennsylvania’s Wharton School in Philadelphia. “It’s making the cycle worse.” (www.bloomberg.com)
Bloomberg.com (6/24/09); Dan Levy

Economy Can Strengthen Only When Housing Prices Do

The U.S. economy won’t regain its strength until the price of housing stops falling, and that day hasn’t yet arrived. “The crisis cannot end fully until home prices in the U.S. are at least stabilizing,” says Alan Greenspan, who continues to dissect housing data with as much interest as he did when he was Federal Reserve chairman. Last August, Greenspan was predicting that home prices would “likely start to stabilize or touch bottom sometime in the first half of 2009.” He now says that day will arrive about three to six months later than he anticipated. For one thing, fewer new households were formed than he expected, which meant less demand for housing. Lawrence Meyer, the seasoned economic forecaster and former Fed governor, says one of the most important differences between “people who are bearish on the economic outlook and those who are less bearish” is their prediction about home prices. In the less-bearish camp, he sees a slowdown in the pace of home-price declines and expects the U.S. economy to be growing at better than a 2% pace by the fourth quarter, faster than many other forecasters. (www.wsj.com)
Wall Street Journal (6/24/09); David Wessel

Lumber Market Need Not Fear Inflation Talk

Fears that a housing recovery and support for lumber markets could be cut short by Federal Reserve belt-tightening may be overblown, or at least premature. Some analysts and economists who advise lumber market investors contend that the federal packages designed to stimulate the economy could backfire, causing so much inflation that the Fed would have to raise interest rates. Such a move could curb the housing market and delay a lasting recovery in the lumber industry, they said. July lumber futures prices recently moved higher, bounding off near-record lows a month ago and moving to 6-1/2 month highs. Traders and market analysts, however, said it was fueled by short covering as continued losses force more and more cash-strapped mills to close. A lasting recovery in lumber markets would need a stronger demand base from a growing housing market, analysts said. Fortunately for the lumber industry, the feared scenario of rising rates could be a long way off — if it happens at all. “Anyone who says that doesn’t know what they’re talking about,” said NAHB economist Robert Denk. The key is unemployment, Denk said. Currently, the rate is above 9%, and there is anxiety of it moving above 10%. As long as this is going on, there are no inflation fears, he said. The concern for now actually is deflation as illustrated by a weak consumer price index. (www.djnewswires.com)
Dow Jones Newswires (6/23/09); Lester Aldrich

For Sale, Still: Grand Homes in Gracious Neighborhoods

While entry-level homes are getting snapped up by bargain hunters across the Washington, D.C. region, pricey ones are languishing. This excess supply is a setback for some pockets of the area where single-family homes listed for $1 million or more make up a sizable chunk of the offerings — about 85% in Cleveland Park, 73% in Great Falls and 55% in Potomac, according to research firm Delta Associates. Even in the best of times, high-end homes take longer to sell because there’s thinner demand for them; this down market has exacerbated matters. That’s because pricey homes are the province of move-up buyers, many of whom have watched their home values decline, their financing options shrink and their net worths erode as the economy soured. For trade-up buyers, the $1 million-plus homes that were within reach a few years ago are no longer an option. In the Washington area, nearly 16% of single-family homes listed for $1 million or more were under contract recently, compared with 44% of homes listed for less than $1 million, according to Delta Associates. Financial issues are also in play. Real estate agents say that lenders are imposing stringent requirements even on credit-worthy borrowers looking to buy high-end homes. Locally, mortgages exceeding $729,750, or “jumbos,” carry higher interest rates than smaller loans and require heftier downpayments — typically 30%. Once the loan amount gets past $1.5 million, the downpayment requirements can go up to 40% or more. “They may also need eight to 12 months worth of mortgage payments in reserve to qualify for the best rate,” said Steve Calem, president of Capital Funding Group, a mortgage consulting and advisory firm. “It’s a market for cash buyers right now, and that’s really impacted the sale of bigger houses.” (www.washingtonpost.com)
Washington Post (6/27/09); Dina ElBoghdady

Living Large in Downsized Housing

The generation that vowed to never grow old has begun to influence the housing market to fit its active lifestyle. Throughout the nation, and in Albany, N.Y.’s Capital Region, housing developments catering to those aged 55 and older are springing up. They are designed to satisfy the demands of a mature generation that has grown tired of mowing lawns and clearing snow, and now wants to enjoy freedom from home chores as they downsize. Most boomers choose to “age in place,” according to a recent report on the 55+ market by NAHB and the MetLife Mature Market Institute, but more than 1.2 million households are moving to age-restricted communities. By next year, boomers will represent a quarter of the U.S. population — “a group that will greatly impact the choices available in the housing market,” according to the study. Jeff Thomas, the developer of Brandlee Meadows, said he got the idea for that project seven to eight years ago while renovating a Victorian building. People called looking to downsize and wanted to know if he had seniors in mind for the renovated space. He didn’t because it had narrow hallways and a lot of stairs. Around the same time, he got a call from a church group in the Altamont, N.Y. area asking about a development for active seniors. “They got me interested,” Thomas said. He held focus groups and eventually “agreed to design something for them.” The complex, which opened last summer, has 72 units in nine buildings and amenities that include community gardens. Units are priced from $209,900. “It’s an empty-nester’s dream,” said Thomas, who has been in the construction business for 25 years. “They don’t do anything but worry about what they’re going to wear to the pool that day or the clubhouse.”  (www.timesunion.com)
Albany Times Union (6/28/09); Carol DeMare

House Votes to Preempt National Building Code Process

By a vote of 219 to 212, the House on June 26 narrowly approved climate change legislation that would establish a “cap and trade” market for buying and selling pollution allowances and create mandatory national energy code requirements for all homes and buildings.

Prior to consideration of  the American Clean Energy and Security Act, NAHB sent a letter to House members expressing concern that federal preemption of the states’ rights to determine building codes would needlessly increase the cost of housing in America and fail to achieve its aim by focusing solely on new homes.

“We are troubled that this legislation contains provisions that will establish a national energy efficiency code, impair housing affordability for lower-income families, undermine green building and sustainability programs for new construction and increase already onerous federal permitting requirements,” the letter said. “Because of its negative impact on housing, NAHB has designated opposition to H.R. 2454 as a key vote.”

The bill number was subsequently changed to H.R. 2998.

By only targeting new homes and failing to pursue an integrated strategy that addresses existing homes, equipment efficiency and consumer behavior, the bill will fall far short of its mark of increasing energy efficiency in the residential sector, according to NAHB Chairman Joe Robson.

“The hard truth is that we can’t build our way out of this problem,” said Robson. “We need to look at our utilities and how they transmit power. We need to make our existing housing stock more energy-efficient. We need to look at how we can reduce our ‘plug load’ — home appliances, televisions and computers — and make these products more energy-efficient. The bill’s focus on new home construction won’t get us far at all.”

The sweeping legislation would require new homes to be 30% more energy-efficient than mandated in the 2006 International Energy Conservation Code (IECC). By Jan. 1, 2014, the target would rise to 50% above the 2006 IECC. Between years 2017 and 2029, the code target increases 5% every three years until it reaches 75% over the 2006 IECC by 2029.

“That’s simply too far, too fast,” Robson said. “The market is not geared up to supply the necessary materials and equipment, and that’s going to drive up costs. The result will be fewer working-class families in these new energy-efficient homes. They’ll be relegated to older, less efficient housing stock and face ever higher utility bills.”

According to the U.S. Department of Energy, homes are responsible for about 21% of the energy consumed each year. “Forcing more regulation on a fraction of those homes just won’t move the needle,” Robson said.

States that fail to certify within one year after the date of enactment that they have adopted and will enforce the new code targets will be subject to federal penalties for non-compliance by the U.S. Department of Energy. At that point, if the DOE doesn't have a certification from a state that its code meets the targets, then the national energy code automatically becomes the applicable building code for that state or locality.

“The mandates in H.R. 2998 will undercut the new programs created in the GREEN Act, which are explicitly designed to preserve housing affordability while delivering sustainability through incentives for green building and energy efficiency,” said Robson.

Usurping states’ rights to determine appropriate building efficiency for homes and buildings within their jurisdiction would result in ineffective application of efficiency standards to address varying climate zones and specific needs, he added.

H.R. 2998 would also create the Natural Resources Adaptation Strategy, which directs federal agencies with jurisdiction over natural resources — including agencies considering permits under the Clean Water Act, the Clean Air Act, the Endangered Species Act and other environmental laws — to consider the "impacts of climate change and ocean acidification on natural resources.”

This new requirement would raise significant obstacles in the federal permitting process, said Robson.

There is no companion climate bill in the Senate, and it is uncertain when that chamber will move forward with its energy legislation, which differs markedly from the House bill. NAHB will continue to monitor the situation closely and work to derail the onerous provisions in H.R. 2998 as the legislative process advances.

To read the legislation, click here and enter H.R. 2998 in the box at the center of the page.

For more information, e-mail Elizabeth Odina at NAHB, or call her at 800-368-5242 x8570.

Panel Nears Agreement on $1 Trillion Health Care Plan

Progress was made on the health care front last week, with Senate Finance Committee members reporting they were near agreement on a fully funded $1 trillion health care plan.

Committee Chairman Max Baucus (D-Mont.) said that the cost of the 10-year bill would be partly offset by taxing some employer-sponsored health benefits and by cutting Medicare and Medicaid spending.

However, several critical issues remain unresolved, including whether to provide a government-run public plan or consumer-owned cooperative health plan. Senators are also weighing a mandate on businesses to provide health insurance.

The Senate Finance Committee is scheduled to resume work on its health plan after Congress returns from its week-long recess on July 6.

The Senate Health, Education, Labor and Pensions (HELP) Committee will also resume work on drafting its alternate health care measure at that time. Committee members spent last week working on their health care overhaul proposal, but the bill remains unfinished, primarily because senators have not received a price tag on several long-term provisions in the bill.

HELP members have still not clarified such key issues as a public plan and requiring employers to offer coverage or pay a penalty.

In the House, the Ways and Means, Energy and Commerce and Education and Labor committees held a slew of hearings last week as lawmakers set the stage for a legislative markup following the July 4 recess. Committee staff members are encouraging input to their current draft bill and NAHB is submitting written comments.

As details of the legislation unfold, NAHB will stand firm against employer mandates as well as changes to the current tax code that would impact the housing community.

For more information, e-mail Erin Tario at NAHB, or call her at 800-368-5242 x8413. 

New-Home Sales Flat in May, Decline in the South

Sales of newly built, single-family homes in May held virtually even with the previous month, declining less than one percentage point to a seasonally adjusted annual rate of 342,000 units, according to data released by the U.S. Commerce Department on June 24.

“In the midst of the prime home buying season, builders report that a number of factors are limiting new-home sales. These include consumer concerns about job security, potential buyers’ inability to sell their existing homes and problems with appraisals coming in too low,” said NAHB Chairman Joe Robson. “The latter issue is directly related to the use of distressed properties (foreclosures and short sales) as comps, which disproportionately impacts the assessed values of nearby homes.”

“Today’s report provides further evidence that the recovery is going to be a slow one as the housing market continues to bump along, trying to find a bottom,” added NAHB Chief Economist David Crowe. “The good news is that, even as the sales pace leveled in May, inventories of unsold new homes continued to shrink for a 25th consecutive month — a trend that is helping bring supply and demand into better alignment and thereby setting the stage for an eventual market recovery.”

New-home sales declined 0.6% to a seasonally adjusted annual pace of 342,000 units in May. Meanwhile, the number of new homes for sale fell 2.3% to 292,000, which is a 10.2-month supply at the current sales pace.

Regionally, the decline in new-home sales occurred entirely in the South, where sales fell 8.5% for the month. Sales were up 1.3% in the West, 28.6% in the Northeast and 18.6%  in the Midwest.



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.



Want to Know the Housing Starts Through 2017?

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Young Workers Waiting for a Stronger Economy

With unemployment especially high among the young, more people are going back to school, and that suggests a new niche market for builders and developers in college housing, Sam Chandan, president and chief economist of Real Estate Economics LLC, told a PCBC audience in San Francisco on June 17.

Today’s dismal job market is pointing up the financial advantages of a college education, he said, with a 4% unemployment rate among workers holding a bachelors degree compared to 15% among those who don’t have a high school diploma.

“People who can’t find work are going back to school,” Chandan said. At the same time, “colleges won’t be able to provide housing themselves” because of tight budgets and state and local government cutbacks, creating an opportunity for builders in the private sector.

While the young constituents of Generation Y will eventually breathe new life into the nation’s housing market, for now their presence is being felt primarily in the rental sector. A full three-fourths of Americans in their early to mid-20s are renters, Chandan said; 15% of the members of this age group have moved back home and that is likely to increase to 20% by year’s end.

While unemployment for more experienced workers in their mid-30s and older is generally in the 5% to 6.5% range, he said, “no new jobs are being created for young people. Opportunities for young people are not opening up.”

Affordable home prices and tax credits have helped stimulate demand among first-time buyers, he suggested, and the recent climb in mortgage rates above 5% has motivated some to hop off the fence, “but downpayment constraints have returned” for many attempting to attain homeownership. “People can be paying as much in rent as they would be for owning,” Chandan said, “but they can’t enter” the ranks of the nation’s home owners.

Credit Woes

And while the Federal Reserve's efforts to ensure the availability of low-priced mortgages has helped home buyers in some parts of the country, it is “not sustainable for the government to support homeownership” this way because it will eventually run into limitations in its ability to bring more credit into the market, he said.

“We do need Fannie Mae and Freddie Mac to remain extremely active six months from now, because banks won’t be in the position to take over their role; they will continue to remain supporters of housing,” he said.

Still struggling with foreclosures, banks are also beginning to see a surge in problems with their commercial loans. “Banks will have a difficult time relieving themselves of toxic assets,” Chandan said.

In the meantime, investment in housing is on the increase, “driven by the sense that pricing has reached rock-bottom relative to where prices will eventually stabilize,” he said, and by the perception that home values have been driven “below the underlying fundamentals of these assets.”

Chandan said he expects to see the economy begin to slowly pull out of the recession by the end of this year or in early 2010, and he predicted there will be greater stability in housing markets where unemployment is stabilizing.

Household growth will be needed to absorb all of the excess housing stock, and “at the end of the day that is a function of job creation.” Ft. Meyers in Florida “will take a decade” to absorb its empty housing units, he said, and “other parts of the country will be relatively quick.”

Chandan noted that the increase in household savings rates since the debacle in the financial markets last September will constrain spending in the short run, but it will put consumers in a stronger position two to three years down the road. And he voiced concern about the possible resurgence of inflation and interest rates in light of the current magnitude of government expenditures.

Coming Back Faster Than Expected

Looking on the brighter side, Fareed Zakaria, author of “The Post American World,” told PCBC attendees that he expected the U.S. to respond positively to the need to reduce its debt and he said it would apply its world dominance in technology to achieve “genuine growth from productivity.”

He called the current recession a “wake-up call” that the nation needs to work off its debt over the next 25 years. “We do not have to solve the problem tomorrow. We need to be turning the arrow to the right trajectory.”

“This recession is not all a consequence of evil doing and failure,” he added, “but of success.”

Zakaria reminded his audience of how Fed Chairman Paul Volker gave the economy “a painful dose of medicine” to unwind the inflation of the late 1970s around the world. “Today, Zimbabwe is the only country with hyperinflation,” and “enormous economic stability” has resulted. “Inflation is more disruptive than unemployment; it destroys savings, what you already have,” and is especially damaging to the middle class, he said.

Zakaria also cited the transformation in the middle of this decade of non-Western parts of the world that has brought one to two billion people into the global economy. “We have never had the expansion of capitalism like today. It is a good news story, giving people the opportunity to contribute.”

However, challenges do remain for the U.S. government, he said, which will be required to resolve its inability to impose “short-term pain for long-term gains” and raise taxes to pay for its rising expenditures.

In the meantime, “this is not the end of the world. We will come back faster than you realize,” he predicted.

“The collective response of what people are doing to recover, that is what changes society….We are far more resilient than people realize,” he said.



Tax Credit Web Site Looks at Opportunity of a Lifetime

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

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

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.



Want to Know the Housing Starts Through 2017?

Find out in HousingEconomics.com's Long-Term Forecast.

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

To learn more, visit www.housingeconomics.com.

Useful Links to Monitor Economic and Housing Trends

The following are links to useful information from government agencies and NAHB that will enable you to monitor the housing market.

To access the latest information available, simply click the links.




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.



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.

Emerging Market Represents a New Departure for Housing

Looking beyond current housing market doldrums, speakers at PCBC in San Francisco on June 17 pointed to demographic forces taking shape now that will transform housing demand within the next few years, presenting encouraging new opportunities for builders who are ready to respond to fast-changing consumer preferences.

The most notable force in the emerging marketplace will be members of the echo boom, or Gen Y, who are roughly in their teens and 20s and largely the children of the 75 million Americans born during the post-World War II baby boom. Although the parameters of this age cohort vary a bit according to who is defining it (the generation’s birth years are 1981 to 2000, according to Harvard’s Joint Center for Housing Studies), there is a consensus that it outnumbers boomers by at least a few million, accounting for a full 30% of the U.S. population.

While the older members of this group are currently renters for the most part, they will soon be shopping for a home to buy, said Terrye Underwood, senior principal for RCLCO, and “a phenomenal wave is about to hit us” by around 2012.

Members of Gen Y are the most connected generation in history; they’re productive and highly efficient; they don’t compartmentalize work; and they are known to be civic-minded, said Underwood. Survey research finds that 60% of them feel personally responsible for making a difference in the world and 80% were volunteers during the past year.

Gen Y households will be looking for authentic values in marketing, she advised, but even more importantly they will have new attitudes about housing and the places they choose to live, she said:

  • Forty-one percent say they expect to start out renting for a few years.

  • Close-in neighborhoods are the choice location for Gen Y households; that’s followed by the city, especially for those in the South, but not so much for those in the Northeast.

  • A community where they can reach work, shopping and entertainment on foot is important to two-thirds of those surveyed, and one-third said they would be willing to accept less space in exchange for that kind of proximity.

  • Seventy percent said they do not believe they will have to move to the suburbs to accommodate the needs of their children once they have them, and only half believe that children need to live in a single-family home. Improving schools is given the highest priority.

  • Diversity is key for members of Gen Y; they are the most culturally diverse group in the nation’s history.

  • Green features are important to half of those surveyed, whether renting or owning.

  • Thirty-five percent said they preferred a single-family detached home on a small lot, 31% a single-family home on a larger lot, 11% a condominium unit and 10% a townhouse. About 34% overall expressed a preference for attached housing.

  • These young families are willing to sacrifice yard size to get what they want, but not the quality of the home.

  • Members of Gen Y are looking for an environment that supports fluidity between home and work and “portable careers” in which they are able to complete a multitude of tasks.

  • Libraries, restaurants, a Main Street village and recycling and fitness centers are all desirable amenities for this demographic.


The product that Gen Y households will buy, said Underwood, will be smaller but will make up for what it doesn’t offer in size with innovative, affordable design. The existing suburbs will need to evolve, she added, with the development of more walkable areas and town centers.

Looking for Like-Minded Active Adults

Toward the other end of the generational spectrum, Ken Warner Johnson, vice president of strategic marketing for Pulte Homes, said that builders can expect to see some vigorous signs of life in the 55+ housing market five years from now.

Prospective customers have largely put their dream of retiring to active adult communities on hold, Johnson said, because of falling home prices, the inability to sell their current home, vanishing retirement savings and weak consumer confidence. With these home purchases postponed, however, builders can expect to see growing signs of pent-up demand as today’s hard times start to brighten, he said.

And “some are taking advantage of weak prices to buy retirement homes now,” said Johnson.

While 71% of 55+ households currently live in the general population, and 29% live in communities where most of the people are 55+, Johnson said that living amongst like-minded people is a strong motivational force.

“The desire to affiliate with unfamiliar people decreases with age,” he said, and as they age, many members of this group tend to want to flee from diversity. “There is a comfort in familiarity,” he said. Their attitude, he said, is “I enjoy not having to explain myself to another generation.”

About 50% of the residents of Sun City Anthem in the Las Vegas area are currently working full- or part-time, he said, up from about 42% 10 years earlier, and their median age last year was 63, up from 60. “They are working longer, but they don’t have dull lifestyles,” said Johnson, with 100 different clubs or activities to join at a Del Webb active adult community.

Homes that sell to the 55+ market have space for a home office and a dual master suite, he said, and they are sustainable, especially when it comes to energy efficiency and recycling.

There is an increased preference for age-qualified product, he said, that fulfills the desire of being surrounded by people like themselves. Health and wellness, proximity to family and friends, life-long learning opportunities and the ability to volunteer and provide legacy leadership to share experiences and solve problems for the younger generation are all considered desirable in the community that 55+ residents are seeking.

SBA Stimulus Program to Help Builders, Suppliers Pay Their Bills

A new, short-term program offered by the Small Business Administration (SBA) may provide some temporary relief to thousands of small businesses — including home builders and suppliers — by offering interest-free loans to help them pay their bills.

The America’s Recovery Capital (ARC) loan program, which began on June 15, offers small businesses guaranteed deferred-payment, interest-free loans of up to $35,000 that they can use to pay principal and interest on existing loans; qualifying small business debt, including mortgages; term and revolving lines of credit; capital leases; credit card obligations; and notes payable to vendors, suppliers and utilities.

The SBA $255 million program will continue through Sept. 30, 2010 or until the funding is exhausted.

SBA-approved lenders, who are being encouraged to make the loans, will disburse each loan over a six-month period. Borrowers will not be required to begin repaying the loans until 12 months after final disbursement and will have five years to repay the loan.

While the loans are available interest-free to small businesses, SBA will pay the lenders the prime rate plus 2% for the loans.

SBA classifies companies as small businesses based on their annual revenue thresholds or their number of employees. Home builders are considered a small business if their annual revenues do not exceed $37.5 million, while the annual revenues of contractors are capped at $14 million. Manufacturers, such as those who make components used in home construction, are limited to 500 or fewer employees, while wholesalers may employ up to 100 persons.

NAHB members can begin the loan process by first contacting local banks. Because the program is new, many lenders may not be aware of it.

For more information, including frequently asked questions, visit www.sba.gov/recovery/arcloanprogram.

Strong Sales Require Hiring a Strong Sales Manager

Most profitable companies invest in the very best sales managerd they can recruit, give them the tools — including all staffing decisions — to be effective and hold them accountable for quantifiable results.

Unfortunately, many in our industry don’t focus on objectively hiring sales managers. In many cases, when a change is needed, they decide to “promote” their highest-producing salesperson to the sales manager position — often with mediocre and sometimes disastrous results.

Selling and Sales Management — Two Entirely Different Disciplines

Managing a high-energy, highly productive sales staff is a bit like herding cats because the best of the best salespeople are always, by nature, slightly out of control.

Effective sales professionals do not accept defeat, especially in today’s market. They do all the right things to match a buyer to your product. They are committed to delivering concierge-level service to every buyer. As a result, you have a happy customer for life and they receive high numbers of referrals, which helps trim your marketing costs.

Managing these professionals in today’s tough market should not involve threats or intimidation, which can occur when pressures mount. Rather, sales managers should be constantly teaching their salespeople what to do, showing them how to do it and then holding them accountable for results.

Some very successful sales managers have likened managing their sales staff to “adult babysitting.”

How to Find the Best Sales Managers

As with any executive-level position, timing is a key factor in successfully recruiting exceptional people.

When beginning your search, be aware of whose sales managers have the greatest respect from their salespeople in your market and don’t overlook excellent candidates from other industries. Their experiences may bring a fresh perspective and innovation to your company.

To begin your recruiting activity, first post your opening on NAHB’s National Sales and Marketing Council’s ProNet Job Board, which serves sales managers who have professional designations such as MIRM (Member, Institute of Residential Marketing) and CMP (Certified Marketing Professional) and who, in most cases, have completed CSP (Certified Professional Salesperson) training.

Hiring designation holders is similar to buying insurance against failure. They have had many hours of specialized training in sales management and understand the importance of working with the marketing department to drive qualified traffic to the sales office where buyers will be met by a highly-trained professional salesperson.

Also, don’t worry about keeping your search discreet because you fear losing your sales manager before you find a replacement. You are searching for a replacement because your current sales manager is ineffective. Keeping him or her in place may do your company more harm than good.

By now, your salespeople probably don’t like or don’t respond to your current sales manager’s style of management. They might even be wondering why you haven’t taken any action, yet. So why delay the inevitable?

Terminate your ineffective sales manager and then call your salespeople together, tell them how important they are, how much you appreciate the good job they are doing and let them know you are seeking a sales manager who will provide them with the backup and tools they need to sell homes.

Let them know that you are posting the job to give them the opportunity to interview for it, but be sure to tell them that they will be evaluated using the same criteria as any outside candidate.

Network

Posting the job description in-house first also gives all employees the opportunity to recommend any person they feel would be a good candidate. Your employees are familiar with your company’s culture and will not knowingly recommend anyone who would not integrate easily with your other employees.

If one of their candidates is brought on board, give the referring employee a bonus after the new hire successfully completes his or her 90-day probation period.

After you have publicized the opportunity internally, let your trade partners know of the job posting. One way to do this is with a payment insert asking for their assistance in identifying potential candidates. Not only does it spread the word, the insert serves as a reminder to them that the more homes you sell, the more of their products and services you will be purchasing.

Next, tell your home owners about the open position. Who better than a home owner to help you locate potential candidates? Consider offering a gift certificate to a hardware store to any home owner who recommends the candidate that is ultimately hired.

Don’t forget to turn to the “big guns” — your Realtors® — for spreading the word and networking. Professional real estate agents are the backbone of our industry. They produce more than half of new home sales and are master mass networkers. Offer them an incentive if their candidate is subsequently hired.

Finally, remember to utilize social and business networking sites such as Plaxo, LinkedIn, Facebook, Active Rain, Twitter, CareerBuilder, The Ladders and any search engines that are frequented by exceptional sales managers.

The bottom line is that, in addition to staying aware of who is the most respected sales manager in your marketplace, you have to network.

Exceptional sales teams are crucial to surviving and thriving, but they don’t happen without a little effort. If you do the legwork, you will find a great sales manager who can help keep your sales team in line and on top.

Roger Fiehn, Fellow, MIRM, CMP, MCSP, CSP, is president and CEO of Roger Fiehn & Associates, Inc., a team of sales, marketing and business management strategists assisting builders, developers and suppliers in North America, Latin America and the Caribbean. For more information, e-mail Fiehn, call him at  281-481-0831 x1 or visit his Web site at  www.rfiehn.com.

This article originally appeared on the NAHB Sales and Marketing Channel.



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.



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.

Builders’ Tip: Putting New Windows in an Old Brownstone

 

 

 

Click for larger image.

In Brooklyn, N.Y. where turn-of-the-century brownstones and bricks are the norm, replacing a window often calls for some ingenuity.

I have used brick-to-brick replacement windows by two manufacturers in my renovation projects. Both units are custom-made to be 1/4-inch narrower than the brick opening, with a brick molding already attached.

In theory, they are installed by simply putting the new windows into the opening and then strapping them to the interior wall framing with vendor-supplied galvanized straps. After that, the brick moldings are caulked to the bricks and you’re done.

But because Brooklyn’s brownstones have solid-brick walls, there’s no interior wall framing to strap the replacement windows to once the old windows are removed. The area that hid the sash weights is just a large void.

Rather than build unstable framing to fill the void and support the windows, I improved the manufacturers’ strap idea.

  • As shown in the accompanying drawing, I screw 2-inch-wide strips of 3/4-inch plywood to the sides, bottom and top of the window.

  • Then I attach the plywood strips to the stud wall — shimming as necessary to square to the window.

  • Then I cut the strips flush with the studs.


The strips also serve as support for jamb extensions or drywall, but before I install the drywall, I stuff the sash-weight voids with insulation.

— Matt Hausmann, Brooklyn, N.Y.

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

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.

Deadline Nears for AARP-NAHB Livable Communities Awards

Entries in NAHB and AARP’s third annual Livable Communities Awards are due by Thursday, July 23.

The award recognizes builders, remodelers and developers for creative and unique homes and community projects that improve the daily comfort, ease and safety of their residents and highlight the critical elements needed for a livable community.

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

Winning entries will be honored for:

  • Design elements that accommodate the needs of all residents with all levels of physical ability from children through grandparents

  • Easy access to community services and features such as retail, restaurants, medical, social and cultural activities, as well as viable transportation options

  • Improved energy efficiency that reduces long-term utility costs

  • Enhanced site design that enables residents of a neighborhood to commute easily to the broader community


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

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

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


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

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

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



Find Out What the 45+ Housing Market Wants

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

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

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

FHA Condo Announcement Brings Good News and Bad

Although “site condo” builders and their home buyers received some good news in FHA Mortgagee Letter 2009-19 released on June 12, other aspects of the announcement have raised concerns. Chief among them is a 30% limit on the number of units in new FHA-approved condo projects that can be financed using FHA-insured mortgage loans. NAHB is working with the agency to change this provision before it is implemented on Oct. 1.

A similar requirement has been in place for years for units in non-approved buildings, but applying the 30% limit to FHA-approved projects would have an extremely negative impact on the condominium market.

On the positive side, the letter immediately eliminated the requirement for developers to seek approval for projects that are being developed as “site condos.” It has been common practice for years in Michigan, and to a lesser degree elsewhere, to develop single-family subdivisions as site condominiums.

In the past, developers often did not seek the FHA’s approval for these projects, primarily for technical reasons, and the lack of FHA approval did not become an issue until turmoil in the mortgage markets in 2007 made it more difficult for home buyers to obtain conventional financing.

Changes in the housing laws in 2008 opened the door for the FHA to treat site condo developments the same as other single-family developments, which have not required FHA approval for many years. NAHB had been pressing the FHA to make this change since the site condo issue began to surface early last year.

Additional Changes

The mortgagee letter makes a number of other changes, many of which will be positive for condo developers. For example, beginning on Oct. 1, a building permit and certificate of occupancy from a jurisdiction that performs at least three construction inspections will eliminate the need for the condo units to be covered by a 10-year warranty. For other jurisdictions, the warranty requirements will be waived if a lender issues an “early start” letter and the property has been inspected by an FHA-approved inspector.

FHA’s announcement also confirmed that 50% of the units must be owner-occupied and that 50% of the units in a project or in a phase of a project must be sold before loans can be closed. While this hurdle may present challenges in many of today’s markets, it is easier to comply with than Fannie Mae’s and Freddie Mac’s presale requirements, which can be as high as 70%.

Another significant policy shift is an option that grants project approval authority to approved lenders who warrant that the project conforms to FHA’s requirements. Some industry experts have expressed concern that subsequent lenders who are considering making loans to individuals to purchase units in a previously lender-approved project would have to either rely on the approving lender’s representations or persuade the approving lender to share the project review file.

For more information, e-mail Bill Renner at NAHB, or call him at 800-368-5242 x8597.

July 8 Webinar to Discuss Costs, Benefits of Going Green

NAHB Multifamily is hosting a webinar that will help market-rate and affordable apartment developers determine how to incorporate green features into their properties without breaking their budgets. The webinar begins at 2:00 p.m. EST on Wednesday, July 8.

Green Building: A Cost/Benefit Analysis” is free to NAHB Multifamily members; $100 for NAHB members; and $125 for non-NAHB members.

Speakers Sanford Steinberg, of Steinberg Design Collaborative, LLP, and Patrick Dennis, of Wood Partners, will discuss energy-saving technologies, sustainable building and the various green rating systems and certifications, as well as provide a cost/benefit analysis to help guide participants through going green cost-effectively.

To Register

For more information and to register, click here, or e-mail Carmel McGuire at NAHB, or call her at 800-368-5242 x8207.

Attend and Save 20% on Related BuilderBooks

Webinar participants can receive a 20% discount from BuilderBooks.com on the “National Green Building Standard,” the first green building rating system to be approved by ANSI, and "Build Green and Save: Protecting the Earth and Your Bottom Line," an insider’s guide to residential green building.

Simply enter discount code AUDSM20 on the checkout page at BuilderBooks.com. The discount is available through Aug. 31 and good only on Web orders. It cannot be combined with any other discount or promotion and is not good on prior purchases.

Explore FHA Financing at NAHB Webinar on July 22

With more multifamily developers turning to the Federal Housing Administration (FHA) for financing options, NAHB Multifamily is sponsoring the second in a series of webinars that will explore FHA programs for new construction, rehabilitation and acquisition and financing relevant to the multifamily industry.

The webinar, “FHA — A Detailed Look at Financing in Today's Multifamily Market,” begins at 2:00 p.m. EST on Wednesday, July 22. It is free to NAHB Multifamily members, $100 for NAHB members and $125 for non-members.

A panel of experts will provide an in-depth overview of:

  • The FHA Section 221 (d)(4) program for new construction/substantial rehabilitation
  • Section 223(f) programs for acquisition and refinancing


The panel includes: Tom Booher, of PNC Multifamily Capital, and Hank Williams, of Wells Fargo Multifamily Capital. David Reznick, of the Reznick Group, P.C., will be the moderator.

For more information and to register, click here; or e-mail Lawrence McFadden at NAHB, or call him at 800-368-5242 x8550.

EPA Warns Remodelers About Vermiculite Insulation

 

 

Typical vermiculite insulation.

Remodelers working in homes with vermiculite insulation should assume this material may be contaminated with asbestos and be aware of steps they can take to protect themselves from exposure, according to recent guidance issued by the U.S. Environmental Protection Agency.

The EPA recommends that remodelers working in homes with vermiculite insulation should leave the insulation in the walls undisturbed whenever possible. If the renovation project requires that the insulation must be removed, the EPA recommends that a professional asbestos contractor should be brought in to do the work.

The guidance was issued earlier this month when the EPA launched a renewed public awareness campaign to notify the industry and public about vermiculite insulation and its potential to be contaminated with asbestos fibers.

Vermiculite, a naturally-occurring mineral composed of shiny flakes that resembles mica, expands as much as eight to 30 times its original size when heated. The expanded vermiculite is a light-weight, fire-resistant and odorless material that has been used in attic and wall insulation.

The majority of vermiculite used in insulation was mined near Libby, Mont., and sold under the brand name Zonolite. The Libby site was added to EPA's National Priorities List in October 2002.

Under the latest guidance, EPA is warning remodelers and home owners to:

  • Leave vermiculite insulation undisturbed in attics or in walls.
  • Do not store boxes or other items in an attic with vermiculite insulation.
  • Do not allow children to play in an attic with vermiculite insulation.
  • Do not attempt to remove the insulation yourself.
  • Hire a professional asbestos contractor if planning to remodel or renovate areas that would disturb the vermiculite in attics or walls to make sure the material is safely handled and removed.


Remodelers and home owners can download the free guidance document, "Protect Your Family From Asbestos-Contaminated Vermiculite Insulation," which includes health, worker safety and product information about vermiculite insulation.

EPA also has additional information on its Web site, including a Spanish-language version of the guidance document, at www.epa.gov/asbestos/pubs/verm.html.  

For information, e-mail Tom Simons of the EPA’s National Program Chemicals Division, or call him at 202-566-0517.

Members, Listen Free to Audio Seminar Recording on Lead Paint

NAHB members can listen to an online recording of NAHB’s audio seminar on the requirements of the new lead paint rule for free by logging in to www.nahb.org/leadpaintaudio.

In the seminar, a panel of experts examines the new lead paint rule governing the work of professional remodelers where lead paint is involved.

Presented by NAHB Remodelers and The NAHB University of Housing last fall, “The EPA’s New Lead Paint Rule: What it Means for You” is an hour-long seminar that explains in detail what the new rule covers, what remodelers must do to be in compliance and where they can find additional information.

The rule, which will take effect on April 23, 2010, addresses remodeling and renovation projects disturbing more than six square feet of potentially contaminated painted surfaces for all residential and multifamily structures built prior to 1978 that are inhabited or frequented by pregnant women and children under the age of six.

NAHB members can listen to the streaming audio file of the original broadcast through Oct. 28, one year after the seminar was held. They can also receive handout material and a marketing bonus.

The seminar recording includes comments by:

  • Brindley ByrdCGRCAPS, of QX2 Contracting in Lansing, Mich., an advocate for the remodeling industry and an active member of the NAHB Remodelers Lead Based Paint Task Force.

  • Bob Hanbury, CGR, of House of Hanbury in Newington, Conn., a member of the Connecticut Department of Public Safety State Codes and Standards Committee who has represented the remodeling industry during discussions and presentations on lead paint with HUD and the EPA.

  • Matt Watkins, NAHB environmental policy analyst, who has been integral in writing several comment letters about the rule to the EPA.


To Purchase

The fee for non-members is $79. 

For more information on purchasing the audio seminar — or to recieve it free as an NAHB member — click here.

For general information about the rule and what NAHB Remodelers are doing to help its members comply with it, visit www.nahb.org/LeadPaint

Modular Industry Leaders to Share Concerns at SHOWCASE

The two leading trade associations representing the modular home industry — NAHB’s Building Systems Councils (BSC) and the Pennsylvania-based Modular Building Systems Association (MBSA) — will meet in open forum during the BSC’s 25th annual SHOWCASE conference and trade show this fall to identify industry issues and strategize solutions.

Online registration is now available for SHOWCASE, which will be help on Oct. 25-28 at the Marco Island Marriott in Marco Island, Fla.

“Inviting the MBSA members is a tremendous step in advancing the interests of the systems-built industry,” said Michael H. Weber, the 2009 BSC chairman. “Getting industry leaders together to strategize best practices and position the industry for success is beneficial to builders and buyers in the housing market.”

“We are excited to participate in the SHOWCASE,” said Chad C. Harvey, MBSA executive director. “We share many members with the BSC, which means that we also share similar concerns on many issues. By coming together in this forum, we have provided a tremendous opportunity for the entire industry to meet and work together.”

The BSC’s strength is in promoting modular homes as a housing solution for builders and buyers across the country while the MBSA specializes in advancing the regulatory and legislative interests of the modular industry at the state and local level. The associations have worked together for years addressing issues concerning the modular industry.

SHOWCASE, a conference for manufacturers, suppliers and builders of concrete, log, modular and panelized building systems, offers networking opportunities, education sessions and exhibitors showcasing the latest in building systems products and services. Education sessions this year will cover green building, energy codes, economic updates, sales and marketing strategies and more.

For more information, including a schedule of events and registration information, visit www.nahb.org/showcase.

Education Calendar

  

Aug. 11-15

Executive Officers Council Seminar

Louisville, Ky.

Aug. 12

EOC Association Excellence Awards

Louisville, Ky.

Sept. 30

Train the Trainer

Chicago, Ill.

Oct. 21

Construction Forecast Conference

Washington, D.C.

Oct. 25-28

Building Systems Councils SHOWCASE

Marco Island, Fla.

Oct. 25-27

CGR and CAPS courses

Indianapolis, Ind.

Oct. 27-30

Remodeling Show

Indianapolis, Ind.

Oct. 29

NAHB Remodeler of the Year Award

Indianapolis, Ind.

Oct. 29

National Remodeling Hall of Fame Award

Indianapolis, Ind.

Oct. 29

CADRE Awards

Indianapolis, Ind.

Oct. 29

Homes for Life Award

Indianapolis, Ind.

Nov. 5-6

Leadership Training Conference

New Orleans, La.

Nov. 6-8

Custom Builders Symposium

San Diego, Calif.

Nov. 6-9

National Conference on Membership

New Orleans, La.

2010

 

 

Jan. 15-18

2010 IBS Pre-Show Courses

Las Vegas, Nev.

Jan. 19-22

2010 International Builder's Show

Las Vegas, Nev.

March 29-31

Log Home Council President's Tour

Boise, Idaho

May 16-18

National Green Building Conference

Raleigh, N.C.

Learn More About 2009 Professional Development Offerings

See the variety of professional development offerings available through NAHB and its local associations in this interactive brochure

Or, search for specific course offerings and check out upcoming conferences.



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.

Summer Heat Can Cause Safety, Health Risks

The heat of summer poses additional health risks to workers in the construction industry, who often work outdoors or perform physically demanding tasks throughout the day.

The obvious risk is from heat-related illnesses, which range from a heat rash that is simply uncomfortable to a potentially fatal heat stroke. Workers’ safety can also be compromised as they handle equipment or tools with sweaty palms, or windows or safety goggles fog up in humid conditions, or through burns from contact with hot surfaces.

The National Weather Service reports that in an average year about 175 Americans die from the effects of summer heat. In the home building industry, environmental heat was the cause of 2% of deaths from 2003-2006, according to an NAHB study on residential construction industry fatalities. To see the full study, click here.

Some people are at an even higher risk of suffering health problems from extreme heat, including those who are 65 years of age or older, overweight, have heart disease or high blood pressure, or are taking certain medications.

Workers and employers alike should know how to recognize and take appropriate action to treat heat-related illnesses.

The Occupational Safety and Health Administration (OSHA) provides free information and resources to help employers and their workers prevent heat-related deaths and injuries.

OSHA’s “Protecting Workers From the Effects of Heat” fact sheet describes the causes and recommends treatment of some common heat-related illnesses, such as:

Heat stroke

Symptoms:

  • Dry, hot skin with no sweating
  • Mental confusion or irrational behavior
  • Losing consciousness
  • Seizures or convulsions


Treatment:

  • Heat stroke is life-threatening — call 911 immediately.
  • Place victim in shade, remove outer clothing.
  • Douse victim in cool water and fan them.


Heat exhaustion

Symptoms:

  • Headaches, dizziness, lightheadedness or fainting
  • Weakness
  • Mood changes such as giddiness
  • Fainting


Treatment:

  • Remove victim from hot environment.
  • Provide fluid replacement.
  • Apply ice packs.


It is important to remember that how individuals respond to hot temperatures will depend upon factors including age, weight, fitness and medical condition.

OSHA’s “Working Outdoors in Warm Climates” fact sheet offers heat protection tips. Employers should make sure their employees take precautions including:

  • Drink small amounts of water frequently.
  • Wear light-colored, loose-fitting, breathable clothing.
  • Take frequent short breaks in cool shade.
  • Eat smaller meals before work activity.
  • Avoid caffeine and alcohol or large amounts of sugar.
  • Work in the shade.


Other OSHA resources on the topic of heat include the “Protecting Yourself in the Sun” pocket card and the “Heat Stress Quick Card,” which can be ordered in a laminated version or downloaded as a PDF in English and Spanish for distribution to workers.

NAHB works with OSHA to provide the residential construction industry with information, guidance and access to training resources to help protect employees' health and safety.

Through BuilderBooks, NAHB offers a comprehensive set of resources geared towards helping companies improve the safety awareness and practices of their employees. To see all of NAHB’s safety resources available through BuilderBooks, go to: www.builderbooks.com/safety.

For more information on NAHB safety resources, e-mail Lindsay Cather or call her at 800-368-5242 x8163.



Protect Your Workers and Your Profits

Jobsite Safety Video, available through BuilderBooks.com, is the first-ever job-site safety video for home builders. The video provides an overview of the key safety issues residential builders and workers need to focus on to reduce accidents and injuries.

Based on the "NAHB-OSHA Jobsite Safety Handbook," this DVD is intended to be used as part of an essential residential construction safety-training program. It includes two 20-minute videos on one DVD.

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

DEWALT Recalls Two Framing Nailer Models

On June 25, the U.S. Consumer Product Safety Commission in cooperation with DEWALT Industrial Tool Company, based in Towson, Md., issued a voluntary safety recall notice of the DEWALT D51825 and D51850 Framing Nailer tools.

The notice advises consumers to stop using these nailer models immediately.

According to the notice, the bump action trigger on the framing nailers could have been incorrectly assembled during production, which would allow the nailer to eject a fastener unexpectedly or cause the trigger lock-off not to function.

While no injuries have been reported, this can pose a serious injury hazard to the user or bystander.

The recall includes the DEWALT Clipped Head Framing Nailer model number D51825 with date codes 20080249-20082749 and the DEWALT Full Round Head Framing Nailer model number D51850 with date codes 20080249-20082749.

The recall affects about 9,000 nailers that were sold at wholesale distributors and retailers nationwide from January 2008 through September 2008 for a retail price of about $280 each.

Owners of these models should contact DEWALT’s recall hotline at 877-437-7181 between 8:00 a.m. and 5:00 p.m. ET Monday through Friday for instructions on receiving a free replacement bump action trigger.

Nail Gun Safety

The U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) offers a free Quick Card™ in both English and Spanish featuring safety tips for using pneumatic nail guns.

The cards describe the potential hazards of nail gun use, explain safe work practices and recommend personal protective equipment (PPE) to wear while using a nail gun.

Download the cards from the OSHA Web site here.

NAHB offers a “Toolbox Safety Talks” manual through BuilderBooks.com that contains guidelines for 15-minute educational sessions on 52 different safety topics, including nail gun safety.

Go to www.BuilderBooks.com/safety to see all the printed, video and onsite training resources from NAHB to help employers and their workers learn about workplace safety.

For more information on this item, e-mail Rob Matuga at NAHB, or call him at 800-368-5242 x8507.



Boost Job Site Safety With Fall Protection Training Products

In an effort to increase job site safety and reduce the chance of job related accidents, NAHB has produced the “Fall Protection Video, English-Spanish and “NAHB-OSHA Fall Protection Handbook, English-Spanish.”

Both are available through BuilderBooks.com.

The 30-minute “Fall Protection Video, English-Spanish” can be used by builders to train workers to use safe work practices that eliminate fall hazards and comply with OSHA fall-protection standards.

The “NAHB-OSHA Fall Protection Handbook, English-Spanish” provides guidelines for creating a written fall-protection plan and identifying safe work practices that can prevent costly accidents and injuries. Written with clear text, photographs and illustrations, the book serves as a user-friendly resource for promoting safety on any job site.

To purchase the handbook and video online, click here, or call 800-223-2665.

EVHA Winners Provide Tips on Energy-Efficient Building

Winners of the EnergyValue Housing Award (EVHA) have shared some tips that can be helpful to builders who have decided to improve the energy efficiency of the homes they build.

In the opinion of one EVHA winner, a good builder is one who knows there is always something new to learn and possibly a better way of doing things. No matter how well a builder builds, there is probably room for improvement. Many high performance builders are motivated to continually improve their homes by the desire to see how low can they get their HERS Index, infiltration, energy loads, etc. — and to find the innovative ideas and products that will help them get there.

Following are some of the suggestions EVHA winners have made on how to begin and continue the process of continual improvement toward the highest performing homes that can be achieved:

  • Embrace the concept of energy efficiency. You have to believe in what you’re doing before you can convince others to carry the torch. Being enthusiastic about improving your homes will be contagious and will have a greater effect on others.

  • Motivate your team. Building an energy-efficient home means that every person working on that home should understand how their contribution affects the entire project.

  • Develop a plan. Start by looking at your typical home and determining what needs to be changed. This can be done in a variety of ways — including having an energy rater evaluate one or a few of your projects to identify areas that need improvement; convening a meeting of crew members to discuss their observations and ideas; and working with a design professional familiar with energy efficiency techniques to tweak plans and review current practices.

  • Educate your staff and contractors. Clearly articulate your expectations and provide training to ensure that your team knows how to implement the details and applications critical to achieving energy efficiency. Because energy efficiency depends on the sum of the parts, be sure that all the players become familiar with the impact their work has on others in the process. For example, mechanical contractors should have a basic understanding of air sealing and insulation so they don’t compromise the integrity of those elements when installing lines and ducts. They should also know how to resolve a potential problem if it arises.

  • Self examination. Create or obtain detailed scopes of work for all disciplines, and periodically check to make sure they are up-to-date and are being followed. This review can be done by a project manager, foreman, team leader or any other person who has enough knowledge and experience to assess the quality of the work being performed and to take corrective actions if needed.

  • Seek help and advice. Don’t try reinventing the wheel if you don’t need to. There is a wealth of information and advice available from local home builders associations, product manufacturers, NAHB, Building America teams, architects, utility companies and other contractors that can ease the transition into building a more efficient building. Use all available resources, suggestions and even walk-through visual assessments to accumulate the information and guidance you need to decide how best to proceed.

  • Understand the bottom line. While it can sometimes cost more up-front to build efficiently, remember that this added expense can be offset by savings in material costs, man-hours, call-back reductions, increased customer satisfaction (good word-of-mouth publicity), tax credits, grants or other incentives. A more efficient home may also be more valuable to a buyer, allowing you to recoup some of your first costs in the sales price. The 2008 New-Home Builder Customer Satisfaction Study by J.D. Power and Associates showed that home buyers are willing to pay more for a home that is built to be environmentally friendly and that can also save them money on energy costs down the road.

  • Marketing. Training your staff and Realtors® to market energy improvements is the best strategy for attracting buyers who are willing to pay extra for your houses. Everyone in your organization who has contact with potential buyers should have a thorough knowledge of the energy-efficient features of your homes and the ability to discuss and explain them in understandable terms.


The application deadline for the 2010 EnergyValue Housing Award is June 30, but there’s plenty of time to plan for next year’s award using these steps to help plan your transition to building more energy-efficient homes. More tips from EVHA winners will appear in future issues of NBN.

Builders who are already building high performance homes may be interested in participating in Department of Energy programs like Building America and Builders Challenge. For further information on these programs, e-mail the NAHB Research Center or call 800-638-8556.



‘National Green Building Standard’ Available at BuilderBooks.com

The National Green Building Standard,” available through BuilderBooks.com, provides “green” practices that can be incorporated into multifamily and single-family new home construction, home remodeling and additions and site development.

The standard covers lot design, resource, energy and water efficiency; indoor environment quality; and owner education.

Currently the first and only ANSI-approved green building rating system, the National Green Building Standard is the benchmark for green homes.

To view or purchase this publication online, click here.



The Future of Residential Construction Is Green

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

Earning the CGP demonstrates to clients and peers your commitment to the best and latest in green building practices and techniques. More than 3,500 people have earned the CGPdesignation to date.

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



‘Build Green and Save’ Available at BuilderBooks.com

Build Green and Save: Protecting the Earth and Your Bottom Line,” available through BuilderBooks.com, is a comprehensive, easy-to-read reference that shows builders how to identify and select green building materials; implement green construction techniques; explain the benefits of green housing and offer affordable green building solutions to consumers; and use resources wisely and reduce water and energy consumption.

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

EPA Greenhouse Gas Finding Could Raise Cost of Housing

NAHB has submitted comments that call in to question whether the U.S. Environmental Protection Agency (EPA) fully considered its proposed endangerment finding for greenhouse gases under the Clean Air Act.

A positive finding, NAHB said in its comment letter, will affect whether home builders can “provide safe, affordable housing for a growing population.”

The proposed endangerment finding states that greenhouse gases — mainly carbon dioxide — are a threat to public health and welfare and that emissions from cars and light-duty trucks are a cause of this dangerous pollution.

While an endangerment finding enables the EPA to establish emission standards for vehicles, it can also eventually lead to the agency’s regulation of other sources, including so-called stationary sources, which include homes.

“NAHB has concerns that subsequent regulations will subject our members to constraints on the use of construction equipment, delays and costs in new permitting requirements, availability of construction materials and increased cost of energy, all of which affect accessibility to affordable housing,” the comments said.

The agency should “defer any final endangerment determination until both EPA and the regulated industry are prepared for the full consequences of the final decision,” the letter said.

The endangerment finding will have a direct effect on many of the industries that supply home builders with the raw materials used in construction — and the additional costs of those materials now subject to new permitting and other requirements.

A 2008 NAHB study on the embodied energy of a typical home — the greenhouse gas emissions generated from the production, installation, maintenance and disposal of products used during construction — amounted to 55.42 metric tons of carbon dioxide.

If the carbon dioxide emissions on these materials are calculated at $156 a metric ton — a figure used in a recent congressional proposal — the end result is an additional $11,340 average increase in the price of a home, which would price out more than 2 million potential buyers, NAHB has determined.

Meanwhile, the endangerment finding is not designed to address the greatest source of energy inefficiency in the residential sector — namely, older, less-efficient homes. Renovating these homes with better insulation, more efficient heating and air conditioning equipment and other improvements would result in a more significant impact on emissions.

NAHB urged the EPA to revisit the proposal and take a closer look at “the unavoidable, adverse direct and indirect impacts on all sectors of the economy . . .and address the full consequences  . . . including any inadvertent consequences that cascade from an endangerment finding.”

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

NAHB, Supreme Court Like-Minded in Wetlands Decision

In its final environmental decision of the term, the U.S. Supreme Court issued a decision on June 22 that helped to clarify the permitting process for the Clean Water Act, rejecting changes that would have made it even more time-consuming for builders and developers.

In Coeur Alaska v. Southeast Alaska Conservation Council, the court made clear that a single discharge of pollutants does not require two permits under the Clean Water Act, an opinion mirroring NAHB’s position in its friend of the court brief.

Justice Anthony Kennedy wrote the decision for a six to three majority.

Builders and developers need to obtain federal permits when they work on property that is recognized as a federally protected wetland. In the case of the construction industry, the “discharge of pollutants” includes moving earth contained on the wetland or adding fill dirt to support homes and infrastructure.

Environmental groups had sought a ruling that would have required land owners to obtain permits from both the U.S. Environmental Protection Agency — or a state delegated with permitting authority — and the U.S. Army Corps of Engineers, for a single addition of fill material.

The court also made clear that effluent limitation guidelines (ELGs) — technologies to control pollutant discharges that are conditions in EPA and state Section 402 permits for storm water management — have no application to a Section 404 permit issued by the Corps for the discharge of fill.

This is a critically important point, because the EPA is currently in the process of developing an ELG for construction activities and is expected to issue that new regulation by the end of this year.

In light of the court’s decision, any construction ELG from the EPA will only apply to storm water management — not also to a Corps Section 404 permit for construction activities in regulated wetlands.

As Justice Kennedy wrote for the majority, a “two-permit regime would cause confusion, delay, expense and uncertainty in the permitting process.”

“While it remains time-consuming and expensive to obtain Clean Water Act permits, a contrary decision would have made it far more difficult to navigate the already burdensome and costly Corps and EPA bureaucracies,” said Duane Desiderio, NAHB vice president for legal affairs.

Coeur Alaska concludes a highly successful Supreme Court term for NAHB. In the four environmental cases reviewed on their merits, NAHB’s amicus briefs tracked the high court’s majority opinions every time.

For more information, e-mail Duane Desiderio, or call him at 800-368-5242 x8146.

N.J. Court Limits Exactions for Recreation, Open Space

Municipalities in New Jersey do not have the authority under the state’s Municipal Land Use Law to exact certain on-site and off-site improvements from developers, according to a June 25 ruling by the New Jersey Supreme Court.

In its ruling, the court consolidated the appeals of the Builders League of South Jersey v. Egg Harbor Township and New Jersey Shore Builders Association v. Jackson Township, which raised the issue of a municipality’s authority to adopt ordinances that require developers to provide open space or recreation set asides within a community, or payment in lieu of them, as a condition of development approval.

“This is a tremendous victory for residents of New Jersey — particularly for those who are about to or those who may be considering buying a new home — in that it rejected the ability of municipalities to impose recreation and open space requirements on traditional subdivisions and site plans. Before today, these requirements were added to the cost of a home,” said Michael Paparone, president of the Builders League of South Jersey.

“The home buyers of today should not bear the costs of providing open space and recreation for the entire community,” Paparone added. “Every ordinance that raises the cost of building a new home negatively impacts the housing affordability.”

The price of obtaining approvals and permits to construct a typical new home in New Jersey is quickly approaching $100,000, he said.

“This decision is important, because it serves to halt a growing trend in local land use ordinances to exact increasing amounts of contributions from developers, which affected both on-site and off-site improvements,” Paparone said.

“This case was not about a municipality’s authority to take land for open space and recreation, but rather a municipality’s belief that it can enact land use ordinances to take that land for free,” he said. “We asked the New Jersey Supreme Court to reject them.”

To view the decision on New Jersey’s judiciary Web site, click here.

The court’s decision followed the lead of another decision it handed down last year in Toll Bros., Inc vs. Board of Chosen Freeholders of Burlington County, 194 N.J. 223 (2008) that concluded that New Jersey developers cannot be held responsible for general community impacts beyond the narrow categories of improvements set forth in Section 42 of the Municipal Land Use Law.

HBI Steps Up Assistance to YouthBuild Programs

Home Builders Institute (HBI), the educational arm of NAHB, will provide industry-sponsored vocational training in residential construction at four additional YouthBuild sites in the upcoming fiscal year, according to an announcement last month.

YouthBuild said it will be operating 108 programs with $66.5 million in traditional funding and an additional 75 programs with more than $47 million in support from the American Recovery and Reinvestment Act.

HBI currently operates one training program with Youth Build in Sioux City, Iowa. However, through a grant from the Department of Housing and Urban Development it has provided technical assistance to Youth Build programs across the country since 2006.

HBI’s new YouthBuild programs will be located in Tampa, Fla., in partnership with the Tampa Housing Authority; Lewisburg, Pa., with the Central Pennsylvania Workforce Development Corporation; Bridgeport, Conn., with The WorkPlace, Inc.; and West Burlington, Iowa, with Southeastern Community College.

The scope of HBI’s technical assistance to YouthBuild has increased significantly over the past three years. There are now 67 YouthBuild programs employing staff designated to teach HBI’s Pre-Apprenticeship Certificate Training (PACT) curriculum.

Like NAHB and HBI, YouthBuild is incorporating green building practices, in line with National Green Building Standard, into its training curriculum. Three YouthBuild employees recently met at HBI with green subject matter experts from across the country — including HBI Chairman M.M. “Mike” Weiss — to discuss “greening” all HBI training curricula, including the PACT.

Participating on June 10 in the group’s week-long deliberations were NAHB First Vice Chairman Bob Jones and Chris Nichols from the Department of Labor’s Office of Youth Services.

“HBI continues to work towards greening all of its training curricula, including the Job Corps, Workforce Training and Employment (WTE) and Residential Construction Academy (RCA) programs,” said Weiss. “We are proud to have so many experts in the green field invested in HBI training. The outcomes of this meeting will provide great benefits to HBI students in YouthBuild, as well as all of our programs nationwide.”

For more information on YouthBuild, e-mail Steve Cousins or call him at 800-795-7955 x8939.

Overhead Door Corporation RSX Operator Featured at PCBC

Among hundreds of exhibitors displaying their new and innovative products at PCBC earlier this month in San Francisco, the Overhead Door Corporation featured its newly introduced RSX Standard Duty Commercial Operator.

The RSX provides new state-of-the-art performance features that improve operation — making installation, maintenance and adjustments faster and easier.

The unique features of the RSX garage door operator include:

  • Voltamatic — Offers all, or multiple, voltage combinations in single, three-phase and separate 575 three-phase voltage units.

  • Einstein Logic — Presents easy installation and troubleshooting through expanded self-diagnostics and a simplified instruction manual.

  • Limit Lock — Features a patent-pending electro-mechanical design that sets limits through the control panel that are maintainable even through a power outage.

  • Super Belt — Consists of an auto-tensioning poly-V flex belt that adjusts itself and is stronger than a traditional belt.


“We are always looking for ways to enhance the quality and operation of our doors and operators, which is evident in our RSX operator that simplifies operations and maintenance through its advanced technology and design,” said Karen Cohen, senior product manager of commercial products for Overhead Door Corporation.

Supplementary features are also included in Overhead Door’s latest commercial operator:

  • The RSX Advanced Radio Receiver System provides extra security by storing up to 250 CodeDodger transmitters — including new commercial dual frequency cycling versions. By viewing which transmitters have been operated, the owner can identify unknown users when there is a theft or the door is damaged.

  • Einstein Logic includes run code and error messages that are immediately visible if the operator is not functioning correctly.

  • An anti-lock style braking system and operating sensing devices such as the Safe-T-Beam and the Bottom Sensing Edge are options included with the RSX operator.

  • The RSX Standard Duty Commercial Operator has undergone rigorous quality control and reliability testing as well as field testing to ensure it provides the highest possible quality in an operator. The RSX exceeded testing requirements in cycle, environmental, electrical and mechanical programs.


The RSX operator is available through Overhead Door’s nationwide network of Ribbon distributors.

Based in Dallas, Overhead Door Corporation 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 the DIY Network

The NAHB Production Group produces weekly television shows for consumers on the DIY network. The following is the latest lineup:

"Rock Solid" on DIY

Episode: "Dry-Stack Fieldstone Wall With Granite Steps"

• July 1, 5:00 p.m. EST

 

Home owner Johnny Zompanti has a problem. His nephew started a dry-stack stone wall in his backyard but never finished it. DIY's expert stone masons and hosts Dean Marsico and Derek Stearns arrive to save the day and in the process demonstrate the proper way to install an old-fashioned-looking dry-stack wall using new palletized fieldstone. From the quarry to the job site, they provide insider tips on how to organize stone and build a solid wall that will last forever. They also incorporate three granite steps into the wall and demonstrate how to measure steps and cut the granite for proper installation.

"Indoors Out" on DIY

Episode: "Swedish Sauna"

• July 2, 9:00 p.m. EST

 

The Askew family is in a bind — they have very little living space inside and a yard dominated by a standalone Japanese koi pond. So hosts Dean Marsico and Derek Stearns create a Japanese-themed living room around the pond to help them out. They build a floating deck and bridge up against the pond, hide ugly filters with bamboo and add beautiful Asian-inspired plantings and accents. When they're done, the Askews will enjoy family time and the fish pond they've worked so hard to create.

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.

Student Competitions Boost Grades, Salaries, Study Finds

 

 

Students like these from the University of Nebraska at Lincoln who competed in the Residential Construction Management Competiton at IBS in January can expect to start their constructon careers with higher salaries than students who don't compete, according to a study at Colorado State University.

Undergraduates studying construction management who participate in competitions — such as the NAHB Student Chapter Residential Construction Management Competition held annually at the International Builders’ Show — average higher starting salaries and grade point averages (GPAs) than their counterparts who don’t enter construction competitions, according to a pilot study at Colorado State University.

The study, conducted by Colorado State PhD candidate Ben Bigelow, found that construction management students at the university who were involved in residential construction competitions averaged starting salaries and GPAs that were $3,500 and 0.3 higher, respectively, than students who did not compete. Bigelow is pursuing an interdisciplinary doctorate in education and construction management.

Mostafa Khattab, head of the Colorado State's department of construction management, said that construction management competitions were beneficial to students because they provide the students with a holistic education and "give them the opportunity to apply the knowledge gained in the classroom to solve real world problems in the workplace.” 

Bigelow was recently awarded a $4,294 grant from the National Housing Endowment to expand the study and test his findings nationally.

“Since my first exposure to the competition, I've been amazed at the benefits it has for participants educationally and in their careers,” said Bigelow, who has competed in residential construction competitions as well as recruited and coached teams.

“I'm excited about the grant because it will enable me to look further into the subject and gather data from around the country,” Bigelow said. “We will now be able to find out if students nationally are experiencing the same benefits from the construction competitions.”

Bigelow will extend his study to include students at eight schools that have received endowment Homebuilding Education Leadership Program (HELP) grants and participate in similar residential construction competitions. The HELP program awards seed funding to colleges and universities to help them create, expand or enhance existing residential construction management programs or develop new programs in the area.

“The results of this research will be beneficial to students, university construction management programs and the future of the construction industry,” Khattab said.

“The National Housing Endowment is proud to support this work that will formally measure the value of participating in home building industry-related competitions,” said Gary Garczynski, endowment chairman and 2002 NAHB president. “Through grants such as this, the endowment works to help the residential construction industry develop more effective approaches to home building and to ensure there is an ample and well-trained supply of future workers and leaders.”

Bigelow expects to begin the study this summer and complete it in about a year. He will submit the results to the NAHB Student Chapters Advisory Committee as well as to construction management academic journals.

Save Big on 4th of July Essentials at Omaha Steaks

Just in time for the Fourth of July, NAHB members can save 10% on all Omaha Steaks food and specialty items when they shop online at the Omaha Steaks special NAHB Member Advantage Web page.

Omaha Steaks, a leader in the incentive industry for more than 40 years, has a first-class reputation and a variety of gourmet entrees and items available to members, including beef, pork, poultry, pasta, salmon, tuna, seafood, appetizers, side dishes and desserts.

Members ordering Omaha Steaks discounts ― which also include specialty selections, blockbuster combos, family value combos, soups, snacks, breads, coffee and monthly specials — can use them as gifts for their customers, clients, friends, family and staff members.

The 10% discount can be combined with any special found on the Omaha Steaks special NAHB Member Advantage Web page. 

To order online and receive the Omaha Steaks 10% discount, 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.

Members Can Save 10% on Vacation Rentals Worldwide

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

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

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

To Register

To use the program, visit www.evrentals.com/nahb, or call 877-670-7088 and give the agent the NAHB discount ID number 20090. The NAHB discount will be applied at the time the reservation is made.

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

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

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

Other Member Advantage Discounts

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



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

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

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

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

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

Save More With Hertz Off-Airport Locations

With more than 1,700 off-airport locations around the country, finding a Hertz Local Edition close to home or your travel destination is convenient.

NAHB members also can take advantage of Hertz local pick-up and return service and NAHB discounts for their business and personal travel.

Some of the benefits found at Hertz Local Edition (HLE) locations include:

  • Unlimited mileage
  • Clean, good quality, low-mileage vehicles with many features
  • Guaranteed availability
  • One-way rentals
  • Convenient customer pick-up and return service available within 15 minutes of the HLE location
  • Affordable leisure and replacement rates
  • Pick-up in your neighborhood and drop-off at the airport


To check rates, make a reservation and receive other, special NAHB Member Advantage discounts from Hertz, visit the Hertz page on the NAHB Web site. Be sure to use NAHB Discount CDP# 51046 when making reservations.

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 in Navigate the Slowdown

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

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

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

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

Members Can Save Big on FedEx Shipping Services Beginning July 1

Beginning July 1, FedEx will be the exclusive provider of small-parcel shipping services for NAHB and members will be eligible for discounts of up to 29%* on select FedEx shipping services:

  • FedEx Express®   up to 29% on select services
  • FedEx Express® international services —  up to 25% on select services  
  • FedEx Ground® — up to 20% on select services
  • FedEx Home Delivery® — up to 10% on select services


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

Members who are current FedEx customers only have to enter the passcode to recieve their savings. They do not have to open a new account. 

For questions or additional information, call 1-800-MEMBERS (800-636-2377) between 8:00 a.m. and 6:00 p.m. EST Mondays through Fridays to speak to a dedicated member service representative.

*FedEx shipping discounts are off standard list rates and cannot be combined with other offers or discounts. Shipping discounts are exclusive of any FedEx surcharges, premiums or special handling fees and are not available to package consolidators. Eligibility for discounts subject to FedEx credit approval. Eligible services subject to change. Base discounts on FedEx Express® are 19-24%. An additional 5% discount is available for eligible FedEx Express shipments when you ship online at fedex.com. Discounts are subject to change.

Other Member Advantage Discounts

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



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

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

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

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

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

ConstructionJobs.com Named a Top 100 Job Board

ConstructionJobs.com, which powers the NAHB Career Center, was recently named one of the top 100 online employment sites by WEDDLE’s LLC, the world’s largest publisher of print guides to the 100,000+ job boards now operating on the Internet.

WEDDLE’s released its selections in conjunction with the publication of its “2009/10 Guide to Employment Sites on the Internet.”

 “Our Top 100 employment sites are the elite of the job board industry,” says WEDDLE’s publisher Peter Weddle. “They have the strongest brands, the best services and the most distinguished track records of the sites we’ve seen on the Web.”

“ConstructionJobs.com is honored in being selected as one of the elite in the job board industry. All of the employees at ConstructionJobs.com take pride in our job board and strive to make our site an effective and efficient resource for our clients and job seekers,” said Charlie Kimmel, president of ConstructionJobs.com.

The site selection methodology included a comprehensive review of information submitted by the sites describing their features, services and fees as well as information provided by job seekers, employers and recruiters who have used the site.

In addition, each site was visited to assess its user experience and level of maintenance.

NAHB launched its online building industry-oriented career center in 2006 to provide members with a cost-effective recruiting solution that makes locating qualified candidates and advertising open positions faster and easier. 

Calendar of Events

Aug. 11-15

Executive Officers Council Seminar

Louisville, Ky.

Aug. 12

EOC Association Excellence Awards

Louisville, Ky.

Sept. 30-Oct. 4

Fall NAHB Board of DirectorsMeeting

Chicago, Ill.

Sept. 30

Train the Trainer

Chicago, Ill.

Oct. 21

Construction Forecast Conference

Washington, D.C.

Oct. 25-28

Building Systems Councils SHOWCASE

Marco Island, Fla.

Oct. 25-27

CGR and CAPS courses

Indianapolis, Inc.

Oct. 27-30

Remodeling Show

Indianapolis, Ind.

Oct. 29

NAHB Remodeler of the Year Award

Indianapolis, Ind.

Oct. 29

National Remodeling Hall of Fame Award

Indianapolis, Ind.

Oct. 29

CADRE Awards

Indianapolis, Ind.

Oct. 29

Homes for Life Award

Indianapolis, Ind.

Nov. 5-6

Leadership Training Conference

New Orleans, La.

Nov. 6-8

Custom Builders Symposium

San Diego, Calif.

Nov. 6-9

National Conference on Membership

New Orleans, La.

2010

 

 

Jan. 15-18

2010 IBS Pre-Show Courses

Las Vegas, Nev.

Jan. 18

Best in American Living Awards (BALA)

Las Vegas, Nev.

Jan. 19-22

2010 International Builder's Show

Las Vegas, Nev.

Jan. 19

Safety Award for Excellence (SAFE) Awards 

Las Vegas, Nev.

March 29-31

Log Home Council President's Tour

Boise, Idaho

May 16-18

National Green Building Conference

Raleigh, N.C.

Learn More About 2009 NAHB Professional Development Offerings

See the variety of professional development offerings available through NAHB and its local associations in this interactive brochure

Or, search for specific course offerings and check out upcoming conferences.



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.