Nation's Building News Online: August 10, 2009Print All Articles Text Version |
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Builders Ask Congress to Extend Home Buyer Tax CreditAs members of Congress return home for the August congressional recess, NAHB’s more than 200,000 members are being urged to contact their lawmakers and ask them to help create jobs and set the stage for a strong recovery by extending the $8,000 first-time home buyer tax credit for an additional year and making it available to all eligible buyers of a principal residence. “If Congress acts to extend the tax credit program, it would spur 383,000 additional home sales, including 80,000 housing starts, creating nearly 350,000 jobs over the coming year,” said NAHB Chairman Joe Robson. “That’s good for the economy and good for America.” Although there have been some signs of economic stabilization in recent weeks, the unemployment rate is rapidly approaching double-digits. Without a concerted focus on the housing sector, which comprises more than 15% of the GDP, any hope for a recovery could fade. “At best, it looks like a jobless recovery once it gets underway,” said Robson. “This is why Congress needs to take bold, meaningful action now.” The NAHB Executive Board on Aug. 4 unanimously agreed to launch a major grassroots campaign to focus congressional attention on housing “in order to ensure that the first flickerings of recovery in the housing market and economy aren’t extinguished.” In addition to extending the tax credit, which is set to expire on Dec. 1, Robson said home builders will be meeting with their lawmakers in their home districts within the next few weeks and urging them to:
A legislative alert was sent to the NAHB membership on Aug. 5. To make it easy for members to get involved, NAHB has established a central site at www.nahb.org/revivehousingnow that contains information on the “Revive Housing, Restore America” campaign — starting with calling or e-mailing their members of Congress. For further information on supporting this effort, e-mail Molly Murray at NAHB, or call her at 800-368-5242 x8282. Many Sign Up Early for Hot IBS Deals on Housing, RegistrationAfter just the first week of online registration, many industry professionals already have registered for the 2010 International Builders’ Show (IBS) in Las Vegas on Jan. 19-22 — the single, most important and largest industry event of the year — so that they could take advantage of NAHB's red hot deals on housing and exhibit passes available to members who register early. Housing deals — featuring rooms for as little as $32 a night — are available through August with an accompanying IBS registration, and complimentary four-day exhibit hall passes are available to members who register by Dec. 11. Online registration deal details include:
Public Feedback Drives Growing Coverage of Key Housing IssuesAs reader and viewer feedback becomes an increasingly significant factor in editorial decisions on what news deserves to be reported, media coverage of faulty appraisals; the credit crunch for acquisition, development and construction (AD&C) financing; and the first-time home buyer tax credit has increased significantly over the past several months, based on news reports compiled by NAHB. Particularly gaining attention has been the issue of inappropriate new-home appraisals that are based on foreclosed or distressed-sale properties. As a growing number of builders were reporting appraisals coming in below the contract sales price, undermining their new home sales, the amount of media coverage on this issue tripled in July over the previous month. Credit problems for builders in financing existing or new projects was also very much in the news, with coverage doubling from June to July. News organizations have continued to feature the $8,000 tax credit for first-time buyers, driven by its popularity and anticipating the Nov. 30 deadline for the program. Reporters Look for Housing Industry Perspective With many media organizations now relying heavily on reader commentary and blogs to gauge interest in specific news items and come up with new ideas for content, readers can post comments and opinions at the end of articles. NAHB members are being strongly encouraged to actively engage in this type of feedback, which provides an opportunity for the industry’s perspective to be heard on these critical housing issues. Providing accounts of personal experiences can make an even stronger case for the housing industry, according to media analysts at NAHB. Reporters are paying attention to the comments posted at the end of their articles, and, among other things, are looking at the feedback for ideas and sources for follow-up stories. Click on the stories below for a sampling of recent news coverage on housing issues and reader commentary:
Stable Housing Market Seen as Key to U.S. Economic RecoveryMark Zandi, the chief economist at Moody’s Economy.com, says a healthy housing market is one of the leading indicators for an economic recovery. “I think it’s a necessary condition. I don’t think the financial system stabilizes nor does the economy gain traction unless the housing downturn comes to an end. And I think it is coming to an end,” he said. Zandi identifies the ongoing foreclosure crisis as “the most significant threat to the economy at this point." Unemployment, which is expected to peak next year, could complicate the recovery. “One of the reasons why we’re seeing such job losses is because businesses have really been fearful for their own survival,” he said. “And of course, investors, until recently [were] very nervous, very scared. It’s been that loss of faith in our economy that made this a very difficult and different time. But it also highlights something that I think is important and that is: confidence is a very fickle thing. It can turn. We can go from dark pessimism to something brighter than that relatively quickly.” (www.voanews.com)
Banks Clip Loan Levels, Developers Struggle as Federal Guidelines Make It Tough to RefinanceBanks are balking at extending loans to real estate developers because of federal regulatory pressure on financial institutions to contain the volume of their commercial lending. That’s forcing developers in search of refinancing to default on existing loans and, in turn, give the property to the banks. The problem stems from federal guidelines issued in 2006 that say banks should keep commercial real estate lending to less than 300% of their total capacity. To meet that threshold, banks are left with two alternatives in closing the gap: raise equity from private sources or use earnings to write off loans, according to attorney Ernie Panasci of Jones & Keller in Denver. “It’s putting bankers’ heads in a vise and in a posture where they basically have an inability to lend,” Panasci said. “The only thing bankers can do is get borrowers to pay off their loans and shrink the bank.” Although the initial 300% threshold was not adopted formally by any federal regulatory agency, banks and regulators are behaving as if it had been — more so now, after markets tumbled. An inability to renew its loans was a contributing factor in Village Homes’ bankruptcy filing last November, said Matt Osborn, its senior vice president of home building. “We’d been on two-year loans,” Osborn said. “We re-upped and renegotiated terms every two years, and then that time frame rapidly started to shrink until, finally, the banks would not extend any further without significant adjustments to the terms. We just couldn’t make it work at the time.” It’s nearly the same for Colorado Custom Homes CEO David Tschetter, who said he needs another $7 million to finish developing a 135-acre parcel in Windsor so he can start building homes. The parcel, for which he already owes $3.5 million, will have an appraised value of $17.6 million when infrastructure improvements are completed. That’s all well and good — if he can get the funding. “Unless the bank is prepared to move the project forward, they’ll end up owning it,” he said. “I don’t have a choice.” “Our members are really suffering,” said David Ledford, senior vice president for housing, finance and land development at NAHB. “We’re trying to help them, but progress is glacial at best.” (www.denverpost.com)
Austin Faces New-Home Shortage as Economy ReboundsA scarcity of new lots in the development pipeline, coupled with a continued slowdown in home building through 2009, will create a shortage of new homes in the near future for Central Texas and an increase in home prices, a local housing expert said. “The fact is that there are not enough new lots being developed,” Mark Sprague, the Austin partner for housing market tracker Residential Strategies Inc., said at the Home Builders Association of Greater Austin’s midyear housing forecast. Because it can take two years to get a subdivision approved and under construction, “this means that when the economy turns around, builders will not be able to get (lots) developed quickly enough to put inventory on the ground, leading to a shortage of new homes in the market,” Sprague said. And when the supply of homes is reduced, he said, “prices will start to trend upward.” Sprague told builders that D.R. Horton Inc. is making a smart gamble by planning to build 700 spec homes in its subdivisions in central Texas. Most of the houses under construction are priced less than $200,000, where D.R. Horton officials say there is a shortage of houses but strong demand. The luxury market will continue to feel the brunt of the pain, Sprague said, noting that starts are off 50% in the $300,000-plus range compared with a year ago. That segment began pulling back later in the downturn, and its recovery will lag as well, he said. (www.statesman.com)
A Sense of Place in Senior HousingA company in Norwell, Mass., in the senior healthcare business for 60 years is building what it calls “a new generation” in senior housing amid the shops and houses of a new Marshfield neighborhood. Despite the poor business conditions that have stymied construction throughout the region, Welch Healthcare is still on the way to completing a 150-unit project offering a “continuum of care.” Slated to open in March, the new $40 million housing development consists of three residential components — independent living apartments, assisted-living units and memory-care units, which are for seniors who need full-time nursing care because of conditions such as dementia or Alzheimer’s disease. “Continuum of care means people can age in place,” said Paul Casale, the company’s vice president. “They don’t have to worry about another move.” The “new conveniences” offered at Proprietors Green emphasize technical advances such as WiFi, a community movie theater, ongoing education alternatives and luxury apartment features such as granite counter tops. Other features include a pub, café, business center, bank, meeting room, country store and a health and fitness center. (www.boston.com)
Vacancies Suppress Southern California RecoveryWhile real estate is in a funk across the U.S., Southern California’s economy is more reliant on construction than many other places. So until its hundreds of vacant buildings fill up, the prospects for a rebound in construction and the broader economy here are bleak. At its peak four years ago, construction was the fourth-largest employer in the Inland Empire counties of San Bernardino and Riverside, according to Jack Kyser, chief economist at Los Angeles Economic Development Corp., a nonprofit research group. The housing industry contributed more than $24 billion in revenue to the Southern California economy in 2008, or more than double the U.S. gross revenue from Hollywood movies, according to the Building Industry Association of Southern California. Much has changed. “New construction is now literally stopped,” said Katherine Aguilar Perez, executive director of the Urban Land Institute’s office in Los Angeles. The industry has shed jobs as new building starts have plummeted. A high level of office and retail vacancies suggests builders in those markets may have the toughest time in coming months. Until now, home builders have shouldered the brunt of the construction fall. Since 2007, the BIA of Southern California has seen its membership fall 33% as a result of bankruptcies and other factors, said spokeswoman Julie Senter. The builders who have survived have done so largely by cutting staff as much as 90%. “The builders have had to scramble like mad to keep their doors open,” said Mark Knorringa, chief executive of the BIA of Riverside County. One midsize builder, Jennings Pierce Jr., said he cut his work force from 85 in 2005 — when he built 405 homes in the Inland Empire — to 15 this year. He now expects to construct fewer than 50 homes in 2009. (www.wsj.com)
Drop in Homeownership Likely to ContinueThe rate of homeownership is forecast to keep tumbling in the next decade to lows not seen since the 1980s, a trend that could redefine a key element of the American dream even after the housing market recovers. The percentage of households that own homes hit a peak of almost 70% in 2004 and 2005. By the second quarter of this year, that slipped to 67.4%, according to the Census Bureau. Now, a University of Utah analysis projects it’ll drop to about 63.5% by 2020 — the lowest since 1985. Homeownership has long been viewed as a key to building stable communities and middle-class families. Federal policy has encouraged it with tax credits and government-backed mortgages. Now, demographic changes, strict mortgage rules, energy-saving policies and lessons learned in the housing crisis are driving more people to rent. About 57% of the 30.3 million housing units added from 2005 to 2020 will be rentals, predicts Arthur C. Nelson, director of the university’s Metropolitan Research Center. “We’re returning more to what was normal in the 1960s,” says Dowell Myers, housing demographer at the University of Southern California. “People didn’t buy homes then as an investment. They bought them to raise families.” (www.usatoday.com)
Eye on the Economy: Drumbeat of Bad News Starts to FadeInstead of singing, “Happy Days Are Here Again,” Franklin Delano Roosevelt’s campaign song when the country was in the throes of the Great Depression, maybe a more appropriate song today would be, “Less Painful Days Are Here Again,” as the drumbeat of bad news that has pounded the economy begins to fade. Real (inflation-adjusted) gross domestic product (GDP) fell sharply — 5.4% — in the fourth quarter of 2008, was down 6.4% in the first quarter of this year, but only fell 1.0% in the second quarter. The most recent reading marks the fourth consecutive quarterly decline in real GDP — the first time this has occurred in the post-World War II period. However, it also marks a slowdown in the rate of decline. NAHB forecasts that the economy will register growth in the current and the fourth quarters of this year. The decline in employment appears to be slowing. After job losses peaked in January of this year, monthly losses through July were trending smaller — with some violatility on a monthly basis as the figures are revised. Quarterly averages eliminate some of the volatility and “noise” found in the monthly data, and the second quarter’s average monthly job loss (at a seasonally adjusted annual rate) of 436,000 shows a lessening of job losses from the first quarter’s average monthly loss of 691,000. Since employment, as a lagging indicator, is always last to respond, job losses are likely to continue through the end of this year — though we hope the losses will prove to be smaller and smaller as the year progresses. The unemployment rate is now at 9.4% and likely to head higher, reaching 10% by late this year or early next year. Not Only Is the Pain Lessening, Housing Is Showing Improvement Housing has clearly been one sector where the economic news has been a little happier. Single-family housing permits now have increased for the third consecutive month and starts have increased for four months in a row. The NAHB/Wells Fargo Housing Market Index (HMI), after bumping along at historic lows in single digits for five months beginning late last year, has been in double digits for the past four months. The July reading of 17 was up from 15 in June. Both new and existing home sales also have been up in each of the last three months and builders continue to make good progress in reducing their inventories of new homes. As of June, inventories of new single-family homes for sale stood at 281,000, their lowest level in 11 years. Meanwhile, the months’ supply — answering the question, “How long would it take to sell the current inventory of homes based on this month’s sales rate?” — fell from 10.2 months in May to 8.8 months in June. The seasonally adjusted S&P/Case-Shiller 20-City and 10-City Home Price Indices were down in May over April, but the decrease was miniscule compared to past double-digit declines. Home prices for eight of the 20 cities were up for the month — though again, all cities’ home prices were down from the previous year. This is an indication that supply and demand have come, or are coming, into balance and that demand for housing is improving. Several factors have contributed to the improvement in housing. The first-time home buyer tax credit seems to have taken hold, encouraging many to take the plunge and purchase a house. This tax credit of up to $8,000 is available to first-time home buyers — individuals who have not owned a home in the previous three years — who close on a new or existing home no later than Nov. 30 of this year, subject to income restrictions (visit www.federalhousingtaxcredit.com/2009/index.html for more information on the tax credit). Interest rates remain at historically low levels, improving the affordability of houses. Lower house prices have also improved affordability. Many measures of affordability, including the NAHB/Wells Fargo Housing Opportunity Index (HOI), indicate that housing is at or near the most affordable level it has been since the inception of each index. Every Silver Lining Has a Cloud Behind It — And Challenges Remain Lest the prospect of less pain lull us into a sense of complacency, it is worth noting that even as things improve (or, more properly, deteriorate more slowly) concerns remain, especially for housing. Clearly the financial markets and the various financial institutions that lend to businesses and consumers are on the mend. Nonetheless, they are often reticent to lend. Potential home buyers need large downpayments and excellent credit scores to obtain a mortgage. Home builders are facing increasing demands on the loans they have and new loans they seek. Requirements for obtaining new AD&C (acquisition, development and construction) loans have grown increasingly restrictive. Some lenders are requiring increased equity and/or accelerated payments on outstanding loans. In some cases, this is turning a performing loan into a non-performing loan. Even as builders of single-family houses have made some progress against the strong headwinds of stringent loan conditions, multifamily builders have found it more and more difficult to find financing. As a result, multifamily housing starts have slowed to a snail’s pace. Multifamily starts varied roughly between 325,000 and 350,000 from 1996 through 2006 on an annual basis. Quarterly averages have fluctuated over a wider range during this same period — between 290,000 and 390,000. However, in the last three quarters, multifamily starts have fallen below 200,000. In the second quarter of this year, they fell to 118,000, the lowest quarter on record since the Census Bureau started collecting these data in 1959. No significant improvement for the multifamily sector is on the horizon. Another drag on the housing market has been low appraisals. Excessive caution by some appraisers and lack of experience with the local real estate conditions by others has led to many cases of appraisals significantly below the agreed upon sales price, in some instances even below the builder’s cost of construction. A July NAHB survey found that one-quarter of builders reported losing a sale because the appraisal was below the selling price. Some appraisers are using short sales (sales below the amount of the outstanding debt on a house) and sales of foreclosed properties as comparables without making an adjustment for the quality of these properties that may not have been properly maintained and may be in need of significant repairs. Regardless, foreclosures will continue to weigh on the housing market over the next several months. Finally, although we are hopeful the first-time home buyer tax credit has primed the pump and we will see home sales continue to rise into 2010 and beyond, it is not a foregone conclusion. In order to take advantage of the tax credit, qualifying first-time home buyers must to close on their home purchase by Nov. 30. To have a new home ready for sale and occupancy by that deadline, most construction must have been started by now. Thus, the economic and job stimulus from this measure will begin to abate over the next month or so. To the extent that other home purchasers step forward and fill the gap after the tax credit expires, home sales and residential construction should continue to rise. But an extension or expansion of the expiring program will help move housing to firmer ground. NAHB Chief Economist David Crowe analyzes the economy from the point of view of the housing market every other week in the free e-newsletter, “Eye on the Economy.” The preceding is a reissue of his Aug. 5 edition. To subscribe to “Eye on the Economy,” click here. Tax Credit Web Site Looks at Opportunity of a Lifetime Builders and other industry professionals can help spur home sales by referring prospective first-time home buyers to www.federalhousingtaxcredit.com. The NAHB Web site provides detailed information on the $8,000 federal tax credit for first-time home buyers included in the economic stimulus legislation signed into law by President Obama. Consumers can use the Web site to find information on the tax credit — including a detailed question and answer section. It also includes information about other housing-related and small business measures in the legislation and a number of home-buying resources for consumers. Spanish Version Also 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. Plan to Attend Construction Forecast Conference Plan to attend or watch the 2009 Fall NAHB Construction Forecast Conference & Webcast on Oct. 21 in Washington, D.C. to get the latest facts, insights and analysis of the housing industry. Panels of nationally recognized experts at the day-long conference will discuss economic trends, government policies, developments in the housing industry and the results from NAHB's recent surveys. For more information and to register, visit www.nahb.org/cfc. Register for Fall Construction Forecast ConferenceRegister online for the 2009 Fall NAHB Construction Forecast Conference and webcast on Wednesday, Oct. 21 in Washington, D.C.,- where nationally-recognized housing and economics experts will provide answers to the most critical questions facing the industry today. Panelists at the conference will discuss key questions including:
The panels include:
To Register Online registration is available through Friday, Sept. 11. To register and learn more, visit www.nahb.org/CFC. Can't Attend in Person? Webcast of Conference Also Available For webcast information, visit www.nahb.org/CFC. The purchase price includes unlimited access to the webcast archive for three months and electronic copies of the presentation materials. 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 TrendsThe following are links to useful information from government agencies and NAHB that will enable you to monitor the housing market. To access the latest information available, simply click the links.
Tax Credit Web Site Looks at Opportunity of a Lifetime Builders and other industry professionals can help spur home sales by referring prospective first-time home buyers to www.federalhousingtaxcredit.com. The NAHB Web site provides detailed information on the $8,000 federal tax credit for first-time home buyers included in the economic stimulus legislation signed into law by President Obama. Consumers can use the Web site to find information on the tax credit — including a detailed question and answer section. It also includes information about other housing-related and small business measures in the legislation and a number of home-buying resources for consumers. Spanish Version Also Available Online A Spanish version of this increasingly popular Web site is also available to provide detailed information on the tax credit to Spanish-speaking first-time home buyers. Industry professionals are encouraged to highlight either tax credit Web site when marketing to their potential first-time home buyer market.
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.
Plan to attend or watch the 2009 Fall NAHB Construction Forecast Conference & Webcast on Oct. 21 in Washington, D.C. to get the latest facts, insights and analysis of the housing industry. Panels of nationally recognized experts at the day-long conference will discuss economic trends, government policies, developments in the housing industry and the results from NAHB's recent surveys. For more information and to register, visit www.nahb.org/cfc. Builders’ Tip: Make Your Stiff, Leather Gloves Fit Like a GloveFor many years, I have worn leather gloves for heavy construction work and have found that the inexpensive, stiff gloves I used lasted just as long as the more expensive, soft and pliable ones. Rather than spend more money for gloves, I have found a simple way to make the less expensive ones fit me more comfortably — while also helping heal my rough hands. Here’s my solution:
— Bill Rutledge, via e-mail Tips & Techniques provided by Fine Homebuilding.
To contact Fine Homebuilding, e-mail Christina Glennon.
Tax Credit Web Site Looks at Opportunity of a Lifetime Builders and other industry professionals can help spur home sales by referring prospective first-time home buyers to www.federalhousingtaxcredit.com. The NAHB Web site provides detailed information on the $8,000 federal tax credit for first-time home buyers included in the economic stimulus legislation signed into law by President Obama. Consumers can use the Web site to find information on the tax credit — including a detailed question and answer section. It also includes information about other housing-related and small business measures in the legislation and a number of home-buying resources for consumers. Spanish Version Also Available Online A Spanish version of this increasingly popular Web site is also available to provide detailed information on the tax credit to Spanish-speaking first-time home buyers. Industry professionals are encouraged to highlight either tax credit Web site when marketing to their potential first-time home buyer market.
Set Yourself Apart With CGB Designation Join the ranks of the nation’s top building industry professionals with the Certified Graduate Builder (CGB) designation. The “Builder Assessment Review” (BAR) is your first step towards obtaining the CGB. This comprehensive assessment measures your expertise in the four key areas of the building industry: building technology, business and finance, project management and sales and marketing. Your results will show the areas where your knowledge is strongest and weakest and will help determine the courses required for you to obtain your CGB. To learn where the next BAR will be held, visit NAHB’s education listings, or call the Professional Designation Help Line at 800-368-5242 x8154.
BuilderBooks.com Offers More Than 250 Books That Help You Build Your Business BuilderBooks.com is your source for training and education products for the building industry. The official bookstore for NAHB, BuilderBooks.com offers award-winning publications, software, brochures and more available in both English and Spanish. To view these publications online, click here, or call 800-223-2665. How to Use Social Networking When Marketing New Homes
The first in a series on social networking and marketing new homes. Social media is quickly becoming a mainstay in modern marketing plans. It’s fast, it’s direct, it’s inexpensive and it’s catching on. According to the “Social Media Marketing Industry Report” by Michael Stelzner, who writes and blogs about marketing and other business-related topics, 88% of marketers surveyed for the study use social media in their overall marketing strategies. And of those surveyed, 72% indicated they only started using social media in their marketing recently. For new home builders who are considering joining this trend, social media is simply using Internet-based networking tools to engage with online communities in order to generate exposure and sales opportunities. But what builders need to understand is that using social media when marketing new homes will not necessarily generate direct sales. Social media is a different marketing tool than a builder’s sales center and even his Web site. Social media is versatile, offering builders opportunities ranging from finding interested and targeted prospects to generating public relations and providing immediate customer service. It’s all about building relationships and conversation, but it is not necessarily about closing the sale. “Home builders are asking us if social media works,” says Dana Forrest, sales and marketing director at Simmons Homes in Tulsa, Okla. They want to know if a sale can be tracked to social media, she says. “For us, this question seems a little short-sighted. We look at our social media and networking efforts as a way to build long-term relationships and powerful communities. We know this won’t result in immediate sales, but that doesn’t mean we shouldn’t invest our time and effort,” Forrest says. “We know a strong relationship is not built overnight.” Since social media requires a different approach to new homes sales and marketing than what builders traditionally use, to give builders a better understanding of social media and its capabilities, Nation’s Building News will feature a series of articles about social media in upcoming issues. The articles, written by social media experts who work in the building industry, will discuss several of the most popular social media sites — such as Facebook, LinkedIn, YouTube, Twitter and blogs — and point out how they can be used effectively. The series will culminate with case studies providing building industry examples of how these social media sites can be incorporated into an effective social media campaign. To begin the series and familiarize builders with the most popular social media sites and tools, the following is a quick overview of the sites that will be discussed in the series: Facebook — A Social Site for Making Connections If you have a teenage son or daughter, you’re probably familiar with Facebook because the site is almost certainly their social media site of choice. Like its cousin, Myspace, just about anyone with an e-mail address can establish an online social network by first creating a profile and then making connections by inviting friends to join. The idea behind the site is that friends can update friends on what they are doing and what they find interesting. It’s simply a way of keeping in touch and you can see how this might appeal to teens who want to stay in touch with their friends. What you may not see, however, is the potential Facebook has for networking and relationship building for builders. “Facebook is a very powerful tool for creating communities,” explains Forrest. “Not only are most of our employees active Facebook users, but most of our customers are active, too, as are many of our Realtors®.” Forrest says that her company does not use Facebook to “promote” particular products. Instead, she says, the site is used “for building long-term relationships and social communities.” As NAHB and some of its affiliates have learned, Facebook is also an effective way to inform particular or targeted constituencies. For example, NAHB has created a Facebook network to update and inform potential consumers about the federal first-time home buyer tax credit that is now in effect. “Several times a week, we receive feedback from a ‘fan’ — a Facebook subscriber who visits our site and supports our issue — who is able to claim the federal housing tax credit based on information that was provided to them from NAHB,” says NAHB's Brooke Fishel, who monitors and maintains the federation’s Facebook tax credit site. “The immediate feedback we get shows us how people react to the tax credit news and information that we are providing, and it enables us to adjust our focus and messaging accordingly.” When creating a Facebook site, builders must remember that, first and foremost, Facebook is a social site. Too much focus on business can be boring — and get your site revoked. “I use Facebook to promote my professional services and to offer value to my followers,” says Paul Montelongo of San Antonio-based Paul Montelongo International, a speaker, syndicated columnist and entrepreneurial consultant. “My formula is 90/10. Ninety percent of my Facebook site is devoted to my professional presence with 10% is targeted to add personality to my presence.” Kimberly Mackey, of Creative Sales Solutions in Tampa, Fla., warns that Facebook is not the place to focus solely on your company’s message. “One company I know who is adopting a ‘do-it-yourself’ approach rather than hiring a social media manager [to maintain Facebook guidelines]. Mackey said they actually had their Facebook accounts revoked several times because they only posted business-related information rather than social networking aspects to their site. “You have to thoroughly understand the rules and the culture of each site so that you work within the spirit of that site,” Mackey said. LinkedIn — Geared Toward Business Professionals As many in the business world know, LinkedIn is, essentially, a professional version of Facebook. The site is geared specifically toward making work-related connections with colleagues and other professionals. It is designed to enable business professionals to network — without the awkward silences that can crop up in many happy hour networking conversations. “We use LinkedIn because we’ve found it to be the most business-oriented site,” says Kim Beales, marketing manager for Motivational Systems, Inc., which specializes in design, marketing and other services for residential and commercial builders and developers. “We’ve experimented with the other social media sites, but haven’t found them to be as good of a fit.” Like Facebook, builders can create a profile, join groups and post links. An added bonus is that you can ask your “connections” to introduce you to one of their connections — a feature that can help uncover potential business opportunities and expand your reach, all from the comfort of your desk. The group feature is especially handy for common professional interests or organizations, such as NAHB’s National Sales and Marketing Council (NSMC). “LinkedIn allows me to update NSMC members who are on LinkedIn that a new story has been added to NSMC’s online Sales and Marketing Channel,” says Anne Ladewig, NSMC’s marketing manager. “LinkedIn puts this in their newsfeeds, and members can add it to their professional-reading list.” For business-to-business marketing, LinkedIn also provides a forum that enables business professionals to establish relationships. “LinkedIn works because of the business nature of LinkedIn and the common interests of the people in LinkedIn groups,” says Beales. “It’s important to build your network on LinkedIn and teach your sales team how to use it as a networking opportunity. Think of LinkedIn as a virtual cocktail party where you can spend 15 minutes each day networking with other professionals in the industry.” YouTube — Connecting Through Videos When you think of YouTube, odds are you also think of the latest video everyone is forwarding across the Internet. But despite its often recreational appeal, don’t underestimate YouTube’s potential to help your business. “We are a highly visual society and anytime a salesperson can display a product and add the element of their personality to the video, it is only good for their business,” says Montelongo. “A bona fide salesperson should be posting YouTube videos at least once a week about some element of their product or service.” To post videos, make sure you have an account set up and a video camera that can easily upload to your computer. “Interestingly enough, the video doesn’t have to be of the highest artistic quality,” says Montelongo. “You just have to have good information presented in an authentic manner.” Even NAHB has a YouTube account (www.YouTube.com/NAHBTV). Through it, NAHB features information critical to the home building industry ranging from tax credit materials, to building concrete homes and green building, just to name a few. Montelongo recommends that those in the home building industry post videos of their projects — works in progress, before and after transformations, explaining warranties, etc.— as well as interview testimonials of happy customers, demonstrations of processes such as filling out a contract and sending “thank you's.” These videos are opportunities to establish personal relationships with your target audience, he says. Matt Morrow, CEO of the Home Builders Association of Greater Springfield in Missouri, is able to connect directly to his members — who are constantly on their cell phones — with just a few videos. “YouTube has been great for sharing original video on things like home tours for our parade of homes event and also for re-publishing video — with permission, of course — from local news stories that feature the HBA and/or HBA members,” says Morrow. “We can embed that on our site and e-mail it to members and consumers.” Twitter — Encouraging Two-Way Conversations “Tweeting” may seem like a foreign language, but Twitter is emerging as one of the most useful tools in your social media arsenal. This site only allows 140 characters per update — which may be an obstacle for some wordy marketers — but is also a great conduit for encouraging immediate two-way communication. “A great aspect of Twitter is the real-time conversations that occur, and the ability to solve potential customers’ problems within seconds of inquiry,” says Frank O’Brien-Bernini, chief sustainability officer for Owens Corning. “We have experienced new business as a result of being ‘first to respond’ to problems posed on Twitter.” Another difference between Twitter and other sites is how you are connected to others. “Following” someone means that you will get all of their updates on your feed, but for your updates to show up on their feed, that person has to choose to follow you. Twitter does not have the automatic reciprocity that exists on Facebook and LinkedIn, which means it is necessary to work hard at keeping your tweets relevant and interesting to attract and retain your followers. “The challenge is getting your message down to the 140-word restriction while still getting your message across,” says NAHB’s Fishel. “However, by linking to something from the ‘tweet,’ we are able to drive followers to wherever we want them to go, whether it is to the first-time home buyer Facebook page, the NAHB Web site or some other resource on the tax credit.” This challenge can also be an advantage, especially in reaching those who frequent the Web via their cell phones, like Morrow’s members. “Twitter seems to me to be the ideal fit for sharing information with HBA members. It is short and can be set up to come to and from their cell phones via text messaging,” says Morrow. “We’ve only been utilizing Twitter for a few months, but it matches up well with our members. They live and die by their cell phones, and they want their information short and sweet.” Blogging — Adding Credibility and Expertise to Your Web Site If you don’t already have one attached to your Web site, you should consider getting your own blog. A “blog,” short for weblog, is an interactive online journal, making it a great forum for alerting customers and colleagues to your company’s news and events, as well as for positioning yourself as an expert in your field. You can easily set up a blog on free blogging sites such as wordpress.com, tumblr.com or blogger.com. Blogs are also great for strengthening your Web presence by helping your company stand out in a search. “When blogs are properly constructed and have great SEO (search engine optimization), they are amazing at attracting the search engines,” says Carol Flammer of Flammer Public Relations and mRelevance. Having an effective SEO means that your blog could be one of the first links to pop up when someone searches the Web for new homes in your area. Blogging can do more than create a strong position for you on the Web; it can also position yourself as a leader in your field. “Blogging allows you to post videos, photos, articles and resources to position yourself as a bona fide expert in your industry,” says Montelongo. “It is a direct resource for you to point prospects and customers to for specific answers to their buying questions.” This form of social media also provides customers with a way to reach out to you directly, by commenting on posts or even using your blog to refer friends and family. What Will Work for You? Each of these components has a place in an overall social media marketing campaign. Depending on your marketing strategy, you may not want to use all of these sites, but you should definitely consider incorporating at least a few of them into your marketing strategy. Many marketers using social media are new to the game, but the more you know about it, the more you will get out of it. Learn all you can before you dive in head-first. Next week: Facebook Webinar to Explore Selling to 50+ Buyers in a Down EconomyA webinar beginning at 2:00 p.m. EDT on Tuesday, Aug. 18 will explore how to sell to 50+ buyers under today’s challenging market conditions. Sponsored by the NAHB 50+ Housing Council and the National Sales and Marketing Council, “Selling to 50+ Buyers in a Down Economy” is free to all 50+ Housing Council and NSMC members and affiliated local councils. The fee is $69 for other NAHB members and $100 for non-members. Webinar participants will learn how to evaluate their sales staff and teach them effective selling techniques; refine their sales processes so they can succeed in the 50+ market; improve their sales team’s follow-up; and learn how to overcome buyer objections, including how to sell their buyer’s current home. Participants also will receive an overview of mortgage products and the options that apply to the 50+ market. In addition, panelists will learn how to:
To Register To register for the webinar or to view past 50+ Housing Council E-Learning presentations, click here. For more information, e-mail Jeff Jenkins at NAHB, or call him at 800-368-5242 x8292. Free Aug. 17 Webinar to Discuss Land Development OpportunitiesWith banks hesitant to finance developments, equity investors seeking higher and quicker returns, municipalities hurting financially and developers still laboring under project agreements that were hastily entitled at the height of the market, NAHB’s Land Development Committee is hosting a free webinar on Aug. 17 beginning at 2:00 p.m. EDT that will explore opportunities in land development that are beginning to emerge in today’s uncertain environment. “Repositioning Development Agreements and Project Financing to Address New Market Realities” will include an overview of the current status of the development landscape, financing issues, how large-scale developments are faring and new home design trends. In addition, webinar panelists will discuss lot banking, fire sale land purchases, competing with foreclosures and renegotiating existing development agreements. Panelists include Carter Froelich and Eric Brown, of DPFG Consultants, which focuses on helping land developers and builder clients navigate the development and construction process in a timely and cost-efficient manner. William Sanderson, of Forest City Land Group based in Cleveland and a member of NAHB’s Land Development Committee, will serve as the moderator. To Register To register for this free webinar, click here. The presentation is the third in a series of webinars on development issues that is being provided by the NAHB Land Development Committee. Two additional webinars are planned. Previous Webinars Available Online Free recordings of the previous webinars in the series are available online. To view "Top Trends in Impact Fees," an examination of the latest trends in impact fees to help developers shift the public conversation to other financing mechanisms, is available by clicking here. To view the presentation, enter the password, LandPlan1. A recording of the second webinar in the series, "How to Get Through the Storm Water Regulatory Maze: Understanding the Alphabet Soup of BMPs, LID, TMDLs and SWPPP Processes," will be available beginning Wednesday, July 29. Coming in September The fourth webinar in the series, “Understanding Infrastructure Finance Tools That Are Successful Alternatives to Impact Fees,” will be held on Sept. 24 and will feature a panel of national experts who will dissect the use of special district financing tools and explore the variations and potential of these tools on local projects. For more information on the webinar series, e-mail Jennifer Jones at NAHB, or call at 800-368-5242 x8469.
'Land Development, 10th Edition' Available at BuilderBooks.com "Land Development, 10th Edition," available through BuilderBooks.com, is the comprehensive resource for land developers. Author Daisey Linda Kone helps readers acquire a complete knowledge of the interrelated factors that contribute to a successful land development project. The 10th edition contains the latest details concerning major environmental regulations that affect land development, emerging demographics for targeted marketing and new innovations in housing types. To view or purchase this publication online, click here, or call 800-223-2665. FHA Extends Apartment Building Refinancing WaiverResponding to concerns voiced by NAHB, the Department of Housing and Urban Development announced on July 29 that it was extending for six months a waiver enabling multifamily developers to use the Federal Housing Administration’s Section 223(f) program to finance properties that have been operating for less than three years. The program is usually only available to finance properties that have been operating for at least three years. HUD’s Mortgagee Letter 2009-22 said that the waiver was being extended for the purpose of “providing liquidity to recently constructed or substantially rehabilitated, self-sustaining properties that are unable to secure permanent long-term financing due to the freeze in the capital markets.” Recognizing the need to provide liquidity to the multifamily marketplace, HUD initiated the waiver of the Section 223(f) three-year rule in February. HUD previously waived the three-year rule from June 1974 through the end of 1975 when the industry was experiencing a credit-crunch similar to today’s and otherwise sound projects were unable to obtain permanent financing. “Our members indicate that the current situation is actually much worse and will require special action extending [the waiver] for at least 18 months, if not more,” NAHB told then-FHA Commissioner Brian Montgomery just after the three-year waiver was temporarily authorized early this year. In its recent announcement, HUD said that it will evaluate the effectiveness of the waiver and might elect to extend it. HUD also responded to NAHB’s concern that some of the requirements and restrictions contained in the February waiver notice that are not normally required of Section 223(f) loans posed unnecessary obstacles to participation in the program. Of note, in its extension of the waiver HUD eliminated a prohibition against the participation of projects that had previously applied for mortgage insurance under other HUD programs and then had withdrawn their application. Properties with a certificate of occupancy less than three years prior to the date of application for a firm commitment are eligible for the waiver. For more information, e-mail Claudia Kedda at NAHB, or call her at 800-368-5242 x8352. Attend Aug. 20 Webinar on Multifamily Design TrendsAttendees will explore the latest multifamily design trends and learn innovative strategies that have proven to be successful in the marketplace for condominiums and apartments during the NAHB Multifamily webinar, “Multifamily Design Trends: Innovative Strategies to Success,” from 2:00-3:00 p.m. EDT on Thursday, Aug. 20. Nationally recognized architects and designers will illustrate how to design more efficiently and cost-effectively to create quality, value-added spaces for affordable, market-rate and for-sale communities. The panel will highlight trends through recent winners in NAHB Multifamily’s Pillars of the Industry Awards. Panelists include Niles Bolton, AIA, of Niles Bolton Associates; Mark Humphreys, AIA, of Humphreys & Partners Architects, L.P.; and David Senden, of KTGY Group. Rick Mercer, of Wood Partners, will moderate the discussion. During the webinar, panelists will:
Click here to register, or to view past presentations or webinar replays on the NAHB Multifamily E-Learning page. For more information on the webinar, contact Sheronda Carr at NAHB, or call her at 800-368-5242 x8168. Remodelers Modestly More Optimistic in Second QuarterOptimism among remodelers about the state of the nation’s remodeling market grew modestly in this year’s second quarter, according to the NAHB Remodeling Market Index (RMI), with their perceptions of current market conditions rising to 38.1, from 34.5 in the first quarter, and future expectations climbing from 30 to 34.2. The RMI has been running below 50 since the final quarter of 2005, reflecting a diminishing volume of remodeling expenditures. Any number over 50 indicates that the majority of remodelers view market conditions as improving. “With more calls from home owners and more projects under way, remodelers are seeing better activity in their businesses,” said NAHB Remodelers Chairman Greg Miedema, CGR, CGB, CAPS, CGP, a remodeler from Tucson, Ariz. “Although remodeling jobs are still harder to find, home owners are showing more interest in remodeling spending.” Indicators for current remodeling market conditions improved across all regions from April through June. They rose from 35.7 to 36.9 in the Northeast, from 36.1 to 38.3 in the Midwest, from 34.3 to 39.7 in the South and from 32.8 to 40.5 in the West. Responsible for a good share of the market improvement were major additions and alterations costing $25,000 of more, which rose on the index from 32.7 in the first three months of the year to 38.2 in the second quarter. Remodelers indicated less growth in minor additions and alterations costing less than $25,000, which rose from 39.1 to 41.5, and maintenance and repair, increasing from 30.4 to 33.6. All measures for future expectations in the remodeling market increased significantly. Calls for bids registered 38.8 on the index, up from 34.2 in the first quarter; the backlog of remodeling jobs stood at 34.4, up from 28.5; and appointments for proposals were at 40.3, up from 35.3. “While remodelers remain cautious, they report business is looking a little better after several challenging quarters,” said NAHB Chief Economist David Crowe. “Conditions for this quarter have returned to nearly the levels of this time last year. The uptick in the expectations component suggests this trend will continue as the entire housing market begins its recovery.” For information on remodeling resources available from NAHB, visit www.nahb.org/remodel. For further information, e-mail Kelly Mack, or call her at 800-368-5242 x8451. Homes for Life/CAPS Design Award Applications Due Aug. 21Applications for the NAHB Remodelers Homes for Life award recognizing the best in creativity, problem solving and great design are due Friday, Aug. 21. Now in its third year, awards program categories include single space remodel — kitchen, bathroom, sunroom, etc.; and major space remodel — whole house or multi-room. Winning projects recognize creative, attractive design that is seamlessly integrated into a client's projects, bringing them a new opportunity to truly enjoy their home. Award sponsor Best Bath will judge applications and present the award on Oct. 29 at the NAHB Remodelers Gala at the Remodeling Show in Indianapolis. "The Home for Life award dovetails perfectly with our Lifetime Shower Systems program," said Andy Hedden-Nicely of Best Bath. “We are dedicated to the CAPS program and safe bathing for consumers who desire to stay at home with remodeled showers and walk-in bathtubs." For the award application and information about prior winners, visit www.nahb.org/homesforlife. Courses Debut at Combined Custom Builder, Design ShowA new course in home technology and a revised green building course will be offered as part of the pre-show course schedule at the 2009 Custom Builder Symposium + Design Institute, held Nov. 6-8 at the Hilton San Diego Bayfront in San Diego. The courses include:
Early bird registration for the conference ends Friday, Aug. 21. For complete details and to register, visit www.nahb.org/Custom, or call the Office of the Registrar at 800-368-5242 x8338. Enter NCBC 2010 Awards of Excellence by Aug. 31
Entries for the National Commercial Builders Council (NCBC) 2010 Awards of Excellence program recognizing the best in light commercial construction are due by Aug. 31. The program recognizes achievements for design, market appeal, overall aesthetics, the challenges faced during building and overall success of projects that are either built or renovated. The awards program is open to architects, builders, contractors, designers, developers, engineers, owners and others who want to highlight their projects. NCBC sponsors the Awards of Excellence program to bring recognition to commercial building projects that range in size from less than 5,000 to more than 100,000 square feet. Projects must have been completed after Dec. 31, 2006 and may be entered in commercial, industrial, institutional, medical, mixed-use commercial/retail, recreational, retail and green building categories. Applicants can enter one or more projects in the competition. Projects may be submitted by the builder, developer, architect or contractor of the project. The six divisions in which a project can be entered include:
Winners will be notified by mail no later than Nov. 1 and featured in Commercial Builder Online Magazine. For more information, e-mail Kisha DeSandies at NAHB, call her at 800-368-5242 x8455, or download a brochure and application from the NAHB Web site. Education Calendar
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. Wider Focus Needed to Clean Up Cheasapeake BayWashington, D.C. area home builder Marty Mitchell advised a Senate panel last week that more onerous regulations for new development won’t clean up the Chesapeake Bay, but that paying closer attention to the storm water runoff from the existing infrastructure and from agriculture could have a substantial, positive impact. Mitchell, also a member of NAHB’s Environmental Issues Committee and a longtime volunteer for the Maryland-National Capital Building Industry Association, spoke on behalf of his family’s home building company, Mitchell & Best. At the Aug. 3 hearing, the Water and Wildlife Subcommittee of the Senate Environment and Public Works Committee focused on reauthorization of the Chesapeake Bay Program. Leaders of the program have acknowledged that they will miss the 2010 deadline for significantly reducing pollution in the bay. The cleanup efforts are being watched closely by environmentalists and regulators concerned about the nation’s other significant water bodies — and who propose stiffer penalties on new development. Emphasis on new development has led to the Chesapeake Bay Program’s failure, Mitchell told Senate leaders. “If progress is to be made, all pollutant sources must play a role in making reductions,” he said. “For example, runoff from existing urban areas and agricultural runoff must be addressed if the restoration efforts are to meet their goals.” Because of innovative new practices and storm water management regulations initiated to comply with the U.S. Clean Water Act, construction practices today play a negligible role in introducing pollution into the estuary, Mitchell pointed out. He also stressed that more often than not, retrofitting an existing development, instead of forcing new construction projects to comply with almost impossibly high standards, provides a greater benefit to the bay and its associated waters. Mitchell cautioned legislators and regulators to maintain the flexibility of existing programs. Low-impact development — including the creation of swales and rain gardens — is an excellent solution for many areas but does not work in some regions. He cited the example of one of his projects in Maryland that struggled to meet Low Impact Development (LID) requirements that were incompatible with the area’s soil and vegetation. Mitchell also made suggestions for improving the water quality of the bay, including:
'Work Boots Tour' Educates Indiana Brokers, Home BuyersA day of behind-the scenes tours of green homes for real estate agents, subcontractors and potential home buyers garnered excellent results for The Porter County Builders Association, the NAHBGreen affiliate in Northwestern Indiana. The Work Boots Tour of six homes under construction at The Village in Burns Harbor, the first development to be certified under the National Green Building Standard, provided education, networking and good visibility for its participants. These outcomes together made it "a very great experience," said Sarah Oudman, the education chair for the PCBA Green Parade committee, organizer of the tour. It also gave the HBA a role to spotlight its Certified Green Professional members, who acted as tour leaders and helped explain the green products and construction methods demonstrated on the tour. PCBA partnered with the Greater Northwestern Indiana Association of Realtors® for the event, and participation earned attendees credit hours both for broker and CGP continuing education requirements. After a morning session called "Going Green in Real Estate" and a networking lunch for the 120 real estate agents, vendors and builders who signed up for the July 17 event, attendees broke into 10 groups for a "shotgun start" — each group beginning at one of the 10 tour stations placed around the Burns Harbor community. Each stop focused on hands-on demonstrations and exhibits tied to various aspects of the standard, with a 10-minute presentation on the topic and time for participant questions. For example, the "energy efficiency" tour stop took place at a house under construction by Pickering Homes, where tour attendees could examine spray foam insulation, learn about high-efficiency furnaces and gain an understanding of the concept of "right sizing" HVAC equipment to take into account the home's insulation and square footage. Village Builders hosted a water efficiency and indoor environmental quality tour stop with a look at low-volume faucets, radon mitigation techniques and paints and sealants with low- or no VOCs, or volatile organic compounds. Visitors could watch a blower door demonstration at a home built by Coolman Communities and learn about onsite construction waste management in front of a set of dumpsters, where the Burns Harbor builders also separate wood, drywall and carboard for recycling. Attendees also learned more about the National Green Building Certification and verification process from Energy Diagnostics and Chris Schwartzkopf, CGP, an NAHB Research Center-accredited verifier. Christine Livingston, the watershed program director for local environmental group Save the Dunes, gave tour attendees an up-close look at a rain garden and various techniques to manage storm water on the construction site and after the home is finished. The participation by Save the Dunes is another example of how green building initiatives show home buyers, environmentalists and government officials that home builders are a big part of the solution to responsible environmental development techniques, Oudman said. A Work Boots Tour-style event would be a great tool for a group of green home builders or HBA green building committee looking to raise awareness of the value of green homes, she added. The tour "can help real estate agents understand how construction practices and products should influence the market value of a home, instead of using the standard square footage benchmarks," Oudman said. As a bonus, Jeff and Jerry Thatcher of Energy Diagnostics also provided a projected Home Energy Rating certificate for each home so attendees could see how the homes and their features compared. "We were able to share the differences in energy savings from different construction techniques as well as the projected payback periods" for insulated concrete form foundations, different kinds of insulation and framing, Oudman said. In a slightly less technical and more consumer-focused version of the event, the HBA conducted a second tour later in the afternoon for area residents and prospective home buyers. Treasure Homes, The Given Group and Accent Homes also featured homes on the Work Boots Tour, which was sponsored by Sherwin-Williams, Demilec and Indiana Spray Foam. Treasure Homes plans to keep its demo home in the pre-drywall stage for the Sept. 18-27 Green Homes on Parade Tour, which will be the nation's first single-site green parade of homes. "We want to continue our educational efforts with parade attendees," Oudman said. For information on green building resources available from NAHB, e-mail Calli Schmidt, or call her at 800-368-5242 x8132. ‘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 3,800 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. Zero Energy Homes Draw Traffic in Tucson Despite Sales SlumpSupported by monitoring data from the NAHB Research Center, seasoned green builder and long-time NAHB member John Wesley Miller has proven that zero energy homes (ZEHs) are possible in the hot, dry climate of Tucson, Ariz., and he has found that they are marketable even in tough times. Even “ordinary” homes in the Armory Park del Sol neighborhood of downtown Tucson, although modestly sized, are extraordinary. Each is designed to use slightly more than half the energy of an identical home built in the mid-1990s, generate hot water from the sun and produce 15% to 20% of its own electricity from solar energy. But two ZEHs in the subdivision — designed to produce as much energy as they generate in a year — take energy performance to another level. The first ZEH, occupied since 2003, has been monitored by the NAHB Research Center under the Department of Energy’s Building America program. During the first two years, detailed performance data was collected and used to evaluate performance and periodically troubleshoot glitches. After working out the kinks, the house has generated 88% of its own energy over the past two years with help from home owners who have been thoughtful about their energy habits. In the second ZEH (ZEH2), Miller opted out of the solar hot water space heating system used in the first ZEH and installed a bigger photovoltaic system to offset consumption. He also splurged on other aspects of the house. Situated on two lots, it is the largest home in the neighborhood and has a four-car garage, separate garage/office, rainwater harvesting system and comprehensive native landscaping. “It had a lot of extras, but we made money on it,” says Miller. Last December, ZEH2 was bought by two retired librarians who are “very into” the zero energy concept, according to Miller. Since home owner habits can have a huge effect on energy consumption, it’s not entirely surprising that the home has produced 153% of the energy it has used so far this year. Under a net-metering arrangement with Tucson Electric Power, the home owners receive a check for the excess electricity. According to Miller, ZEH2 received a considerable amount of traffic even during a severe slump in local home sales. In addition to the ultimate buyers, he said, several other serious prospective buyers were “enthralled with the net zero energy concept” and the idea of never having to pay a utility bill. On top of that, “they got a cash-back rebate from Tucson Electric Power,” which Miller said was an added incentive. Miller says he will definitely build another ZEH, but will continue to make adjustments based on the lessons he’s learned with the first two homes. “I’m not sold yet on the solar water heating storage tank when you look at the expense and payback versus the passive batch-type system,” he said. “Plus, there are the space constraints of having a storage tank” in the slab-on-grade homes. But, if performance is any indication, Miller already has the right formula for success. The NAHB Research Center will be updating results and information on the zero energy homes later this year To find out more about the monitoring that has occurred to date, visit the Research Center’s technical ToolBase Services Web site. For more information about energy efficiency, ZEHs or joining the NAHB Research Center's Building America team, go to “Contact Us” online, 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 3,800 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. Presentation Proposals Sought for Green Building ConferenceExperts in business management, sales, design and all aspects of building science are invited to submit proposals for presentations at the 2010 NAHB National Green Building Conference. The conference will be held in Raleigh, N.C., on May 16-18. The NAHB National Green Building Conference is the only national conference of its kind targeted to the mainstream residential building industry. Presenters can expect their address to be attended by builders, remodelers, land developers, engineers, architects, planners, public officials and environmental advocates. Prospective speakers should describe their proficiency with industry professionals in areas such as energy efficiency, water conservation, indoor air quality, waste management, design and site development. All proposals will be evaluated based on their relevance to green building, the timeliness of the topic, their practical application and speaker qualifications. Proposals without specific learning outcomes will not be considered. To submit a proposal, visit the NAHB ISIS page. Submissions must be received by Sept. 15. For additional information, e-mail ibsedu@nahb.com. The 2010 conference takes place at the brand-new Raleigh Convention Center, and discounted hotel space has been reserved at the adjoining Raleigh Marriott City Center and the Sheraton Raleigh. Click here to be notified when conference registration is open. ‘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 3,800 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. Project CRAFT Hammers Away at Southeast Building Show
Students joined with HBI instructors and staff to build the HBI booth at the conference, where they demonstrated their expertise in residential construction over the course of SEBC and hosted a competition in which show attendees tested their nail driving skills. Since it began operating in Florida in 1994, Project CRAFT has provided thousands of skilled pre-apprentice employees to builders and NAHB members in the state.
Several prominent NAHB members stopped by the booth to talk with HBI students and learn more about the program — including NAHB First Vice Chairman Bob Jones, Immediate Past Chairman and HBI’s oversight officer Sandy Dunn, former HBI Chairman Tom Woods and Paul.
Project CRAFT trains more than 500 youths annually in Florida; more than 90% of its graduates find placement in industry jobs, the military or school.
Florida Project CRAFT sites at Avon Park, Red Road, Dozier, Orlando and Tampa were recently renewed by the Florida Department of Juvenile Justice. They will operate under $2.2 million annual grants from the department through 2011. For more information on Project CRAFT, e-mail Dennis Torbett at HBI, or call him at 800-795-7955 x8908. Home Depot and Habitat Expand Green Building ProgramThe Home Depot Foundation and Habitat for Humanity International on Aug. 4 announced that they have expanded their "Partners in Sustainable Building" program. The $30 million green building program will provide funds and resources over a five-year period to help Habitat affiliates build 5,000 homes that meet Energy Star guidelines or a nationally recognized green building standard such as NAHB’s. “The Home Depot Foundation believes green building techniques are not a luxury — they aren’t exotic or expensive,” said Kelly Caffarelli, the foundation’s president. “By embracing the practical principles of green building, our partnership with Habitat for Humanity International is demonstrating that these techniques can actually make homes more affordable to own, maintain and live in from day one and for the long-term,” he said. “With health and economic concerns at an all-time high, this issue is more important than ever for the families who will purchase these homes.” More than 120 Habitat affiliates across 45 states were selected to participate in the first year of the national rollout that will begin at the end of this month. The affiliates will be granted $3,000 for each home built to Energy Star standards and up to $5,000 for each home built to a higher green standard. Nearly 1,500 sustainable homes will be built in 2009 and 2010 alone. The grant process is annual, which gives other Habitat affiliates the opportunity to participate in the program as well. "Partners in Sustainable Building" was established last year through a pilot program with 30 Habitat affiliates across a variety of climates in rural and urban areas throughout the U.S. During the pilot program, Habitat built more than 260 sustainable homes that met a green building standard. “The introduction of the 'Partners in Sustainable Building' program has created excitement about the benefits of green building with Habitat for Humanity,” said Jonathan Reckford, CEO of Habitat for Humanity International. “With the support of The Home Depot Foundation, we have a great opportunity to bring the economic benefits of sustainable building to our home owners and to show our volunteers how easily and affordably they can make their own homes greener as well.” Headquartered in Atlanta, The Home Depot 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 NetworkThe NAHB Production Group produces weekly television shows for consumers on the DIY network. The following is the latest lineup: "Rock Solid" on DIY
"Indoors Out" on DIY
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. HBAs: Apply for NAHB/NOD Disability Initiative AwardState and local home builders assocations are invited to enter the 2009 NAHB/NOD Disability Initiative Recognition Awards program. The award, conducted in partnership with the National Organization on Disability (NOD) and the National Housing Endowment, recognizes outstanding examples of programs, projects and activities conducted by HBAs that further the goal of full participation of people with disabilities in community life. Entries are due by Sept. 11. The winner will be announced at the 2010 International Builders' Show in Las Vegas in January. The winning HBA will receive $1,000. Projects must demonstrate an awareness of disability issues as an organization; the positive impact it has on people with disabilities; and outreach to persons with disabilities. Ideas for qualifying projects include:
For more information and an application, click here, or e-mail Ariel Moyer at NAHB or call her 800-368-5242 x8595. For more information about the National Orgranization on Disabilities, visit www.nod.org. For more information about the National Housing Endowment, visit www.nationalhousingendowment.org. Members Can Save Big on FedEx Shipping ServicesNAHB members can save up to 29% on select FedEx shipping services and can also save big on FedEx Freight and FedEx National LTL services. Other savings through FedEx shipping include:
To enroll, or for more information, visit www.1800members.com/NAHB or call 1-800-MEMBERS (800-636-2377) between 8:00 a.m. and 6:00 p.m. EDT Mondays through Fridays to speak to a dedicated member service representative. 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. Members, Continue to Drive Away With a Shiny New $500 GM OfferNAHB members can continue to receive $500 towards the purchase or lease of most new GM passenger cars, light-duty trucks, vans and SUVs — whether for business or personal use.
The program runs through Jan. 4, 2010. For more information, e-mail Tiffany Lindsley at NAHB, or call her at 800-368-5242 x8273. Other Member Advantage Discounts For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to www.nahb.org/MA. Save Big on Summer Essentials at Omaha SteaksWith summer grilling in full swing, 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. NAHB Committee, Council Appointment Process UnderwayNAHB’s committee and council appointment process for 2010 is now well underway. Members of the association who are interested in serving on a committee or council board of trustees next year can review appointment criteria and complete the application at www.nahb.org/committeeform. The deadline for all applications is Oct. 11. All current committee and council members who would like to serve again next year must apply for re-appointment to their respective committees at this time. Appointments are made for only one year. The NAHB Senior Officers are strongly encouraging members to participate in the leadership of the association. For more information on the committee appointment process, e-mail Cyndi McKinley, or call her at 800-368-5242 x8346. Calendar of Events
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. |