Nation's Building News Online: September 14, 2009Print All Articles Text Version |
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Builders Fear Slower Housing Market as Tax Credit FadesIn an ongoing series of NAHB media teleconferences being held around the country to increase public awareness of the need for Congress to move quickly on stimulating housing and the nation’s economy, home builders last week indicated that their home sales are beginning to trail downward in the face of the Nov. 30 closing deadline for the first-time home buyer tax credit. The tax credit has become increasingly popular among younger members of the home-buying public, who have been providing testimonials on its importance in their decisions to become home owners at a time of affordable prices and interest rates. As the final weeks for using the credit wind down, traffic has remained brisk at NAHB’s Web site, www.FederalHousingTaxCredit.com, which contains links to more information on the credit on Facebook, Twitter and YouTube. “The only thing we’ve been getting any traction on so far this year has been this tax credit,” said Tom Walker, of Gateway Homes, a medium-sized builder in Houston. “Our sales have been sustainable — 20 in June and July — and the main reason is because we could start those houses and have them finished by the Nov. 30 deadline,” Walker said. “But in August, we had to cut that off and went to seven sales because we can no longer tell our buyers we can start that house in time to meet the deadline.” Of the roughly 150 homes his company has sold this year, 100 of those sales can be attributed to the availability of the $8,000 tax credit, he said. Wes Peoples, of WP Investments in Austin, Texas, and the immediate past president of the Home Builders Association of Greater Austin, noted that the tax credit was responsible for generating hundreds of housing starts this summer as builders worked to beat the clock and have homes available so that prospective first-time buyers could buy them in time to receive the tax credit. Housing activity has been down about 46% in the local market from its peak in 2006, Peoples said, "and the tax credit has been a huge boon to our business. When somebody buys a house, they buy appliances, furniture, yard maintenance equipment; it has a huge multiplier effect for the economy.” ‘Revive Housing, Restore America’ As part of a grassroots “Revive Housing, Restore America” campaign that began last month, builders have been urging their members of Congress to extend the tax credit for an additional year and expand it to all primary-home buyers with qualifying incomes, not just first-timers. Despite small but steady gains in recent months in single-family home sales and starts, builders are concerned that an additional push is needed to ensure a full-scale recovery in housing and the creation of jobs at a time when the U.S. employment rate is climbing and expected to surpass the 10% threshold. “The good news is being driven at the lower end of the marketplace by first-time buyers or investors,” said NAHB Chief Economist David Crowe. “But we are very concerned that the euphoria — the extra boost that has occurred in the marketplace — will start to disappear when the credit expires in November.” Crowe indicated that the housing industry needs more momentum “and a steam-building process to get the ball rolling.” If the credit is not extended and expanded, he worried that the fast-approaching end of the credit will start being reflected in housing starts and sales numbers for as early as last month. “Housing has not made the leap forward that everyone had hoped for by now.” Also in dire need of fixing is the appraisal process, which according to NAHB surveys is scuttling 25% of new-home sales with valuations coming in below the contract selling price because short sales and homes in foreclosure are being incorrectly used as comparables. The flow of credit to home builders to finish viable housing projects or to commence new ones has slowed to a trickle, Crowe added, and needs to be restored to enable housing to move forward and provide support to the economy, which also appears to be entering into a fragile and tenuous state of recovery following last autumn’s financial market collapse and the worst slump since World War II. In meetings and a slew of correspondence and calls to their U.S. senators and representatives, builders have been spreading the word that the crises in appraisals and acquisition, development and construction (AD&C) lending are due for major repairs before the health of the housing industry can be restored. To help building companies survive the downturn, builders are also asking Congress to expand the federal tax code’s Net Operating Loss (NOL) carryback provision for businesses. Tax Credit Window Closing With less than three months to go on the current tax credit, builders report that it is becoming increasingly difficult for prospective first-time home buying households to squeeze through the window of opportunity and find properties on which they can successfully close by Nov 30. The scramble is now on for existing properties or new homes that have already been built, and it is virtually too late to break ground on new housing. Early indications are that the tax credit has begun to have a dampening effect as it fades away, and other teleconference participants reported slowing conditions in the last several weeks of summer. Jeff Click, president of Jeff Click Homes in Edmond, Okla., and president of the Central Oklahoma Home Builders Association, said that he had observed a spike in housing production in his market in July but then a decline in August. With new homes taking four to six months to be completed, “the window of opportunity for the credit has now closed,” he said. In Montana, builders said that the tax credit has produced “a considerable uptick” in the market, but the incentive hadn’t really gained traction until fairly recently. “We didn’t see, here in Helena, the tax credit take hold with the buying public until the first part of July,” said Mike Hughes of Mike Hughes Construction. “We certainly hope we are able to convince our Congress how critical it is we keep this momentum moving to pull us out of this recession.” Greg McCall of McCall Development in Billings said that he had retooled his company to build less expensive homes at the same time as Congress passed the tax credit. “With that, we saw a huge surge in sales we hadn’t anticipated,” he said. McCall reported that the credit was used in 16 of the 30 new homes he has sold this year. “Without that, we would have been virtually dead in the water,” McCall said. The Commerce Department may provide some insight into the impact of the expiring tax credit nationwide when housing starts statistics for August are released this Thursday, Sept. 17. Appraisal Horror Stories On the appraisal front, teleconference participants reported a number of horror stories in which low-ball assessments had impeded new home sales. In Oklahoma City, Click said that builders are starting to see lost sales opportunities as the result of new regulatory restrictions on appraisals. “Stories of closings that didn’t happen because of appraisal issues” abound, he said. “Builders are doing the best to make ends meet, but if you get stuck with a house that you can’t sell, that can be the final straw.” In Houston, Walker said that one of his FHA homes — priced at $125,000, down from $135,000 — was appraised $17,000 low after a management company assigned an appraiser from Plano in the northern part of Texas. The appraiser used comparables from up to four miles away and also included foreclosures. As a result, Walker said he is having to “sit on the house for six months before the FHA will allow a new appraisal." In the meantime, the windows have been “busted out” and the home vandalized to the tune of $5,000 in damages. In Austin, Peoples cited an appraiser calling from California to ask if a master-planned community of 5,000 homes had paved roads and sewers; the appraisal came in $100,000 low. Bill Garrett, president of W.B. Garrett Inc. in Richmond, Va., complained of an appraisal on a home coming in recently too low to justify the price in the sales contract. The appraiser did not use as a comparable a similar home in the neighborhood that had closed within 30 days of the appraisal at a higher-per-square-foot cost than the sales price of the undervalued property. Creating Jobs Builders speaking at the teleconferences also emphasized the importance of adopting the four-pronged “Revive Housing, Restore America” initiative in order to spur job creation in their own businesses and throughout the economy in order to brighten an otherwise dim outlook for employment even if the economy succeeds in moving to higher ground. Garrett, whose company has focused on currently hard-to-sell homes in the $500,000 to $1 million price range, has whittled his crew down to himself and two employees, both of whom have now been cut back to a four-day weekly work schedule. Tom Farasy, president of Terra Verde Communities in Burtonsville, Md., and president of the Maryland National Capital Building Industry Association, said that the 24 member companies on the association’s board at its meeting this February reported laying off some 1,700 employees in the previous 12 months. A study by his group has found that each new home built generates 4.1 new jobs. In a preliminary survey, Farasy’s board members were asked how many new workers they had hired in the last 30 days and how many they intended to hire within the next 30 to 90 days. The answer was zero. “Nobody has indicated that they are hiring,” he said. “Until jobs return to the marketplace, we will not really have a recovery.” Research by economists at NAHB has found that extending the $8,000 tax credit and making it available to all income-eligible buyers would spur 383,000 additional homes sales — including 80,000 housing starts — and create nearly 350,000 jobs and an additional $16 billion in wages and salaries over the coming year. Approximately one-third of those jobs would be in the construction sector. Small business income would increase by $6.5 billion, while corporate profits would increase by $5.5 billion. For a related story in the Sept. 7 issue of NBN on the impact of the tax credit extension, click here. For a story on the economic impact of addressing appraisals and AD&C lending and expanding the NOL carryback period, click here. Recovering Lost Ground Builders also stressed that they have considerable ground to recover before they will be back to business as usual. “Growing up in the building business, you always know it is a cyclical business with highs and lows, but no one expected the apocalyptic events of the past two years, which have been even worse than the early ’80s when interest rates were up to 18%,” said J.D. Stricklen, president of Stricklen Properties in Charleston, W.Va., which was started by his father in 1953. In his market, households who are transferring to the area are renting homes, he said, because “they can’t sell the house they have in another city.” A weak economy and the loss of household income in 401(k)’s and other investments, aren’t helping, he said. “People are scared to death.” “We are trying to convey what has happened in the marketplace,” said Stricklen. “It’s the quality of life for the citizens of this country. The housing stock is getting old in the Appalachian region. People are living in houses that should not be occupied in terms of energy-efficiency and human safety.” Joining the Campaign With Congress back in session and focused on health-care reform, NAHB is encouraging its members to visit, call, write and e-mail their U.S. senators and representatives. “Our job is to keep sounding the call for housing in order to be ready for when lawmakers start working on new tax legislation this fall,” said NAHB Chairman Joe Robson. To get involved, NAHB members should visit www.nahb.org/ReviveHousingNow. This one-stop site contains information on calling or e-mailing members of Congress, talking points, banners for Web pages, print ads, op-ed letters that HBA presidents can send to their local newspapers, and more. Members of the general public can go to www.revivehousingnow.com, where they will find information on contacting their lawmakers and asking them to extend the home buyer tax credit. For more information on the campaign, e-mail Molly Murray at NAHB, or call her at 800-368-5242 x8282. Impact Fee Alternatives Being Used by Cities to Finance InfrastructureIn the face of the current housing downturn and dwindling economic resources, communities across the nation are lowering or suspending impact fees and looking at other available financing mechanisms such as public improvement districts and tax increment financing to raise revenues for needed public facilities. To assist home builder associations with changing the conversation from impact fees to these alternative financing mechanisms, the NAHB Land Development Committee is hosting a free webinar on Sept. 24 beginning at 2:00 p.m. EDT that will provide an in-depth analysis on this issue. The third in a series of NAHB webinars on critical land development issues, “Understanding Infrastructure Finance Tools That Are Successful Alternatives to Impact Fees” will feature national experts who will dissect the use of special district financing tools and explore how they can be used on various local projects.
As an example of successful alternative financing, the City of Austin has used Tax Increment Financing (TIF) to create a mixed-use village on the former site of the Mueller Airport. Located only three miles from Austin’s downtown, this new neighborhood will ultimately consist of 4,600 residences and 650,000 square feet of retail space valued at $1.3 billion. A TIF enables an increase in value over time to be captured to finance current improvements, with public projects pushing up the property values of the surrounding real estate. This alternative financing tool lets communities improve an area without burdening existing tax payers and increase the tax base over the longer term. One of the most highly used tools for addressing today’s infrastructure challenges, special assessment districts can improve an area while lessening the upfront costs to the developer, builder and consumer. Today, 49 states and the District of Columbia, have special district financing programs. These districts can go by many names — public improvement district, community development district, municipal utility district — but they typically result in an annual assessment to property owners in a defined area that is included along with their tax bill. The advantage of these districts is that the infrastructure is paid for over time and does not affect the affordability of the new construction. With a reduction in impact fees enough to determine the viability of a new development, NAHB is encouraging HBAs to approach their local jurisdictions to get them to consider alternative methods of financing infrastructure. To access NAHB resources on this issue, including the webinar series on infrastructure, NAHB members can go to www.nahb.org/infrastructurefinance. To register for and attend the Sept. 24 webinar on "Understanding Infrastructure Finance Tools That Are Successful Alternatives to Impact Fees," click here. For further information on infrastructure financing, e-mail Thais Austin at NAHB, or call her at 800-368-5242 x8343. New Real Estate Appraisal Rules Rankle Some Home Owners, AgentsJim Couture sold his three-bedroom colonial in Methuen, Mass., last spring in 10 days, for a sum within 1% of his asking price. Still, Couture is mad about new appraisal rules that are supposed to protect consumers. Couture’s sale required two $400 appraisals, the first of which took weeks to schedule and relied on suspect comparable sales, he says, to arrive at a value roughly $30,000 less than his selling price. The second came closer to the mark, but only after blown deadlines nearly derailed the contract. “I can’t relay how stressful the whole ordeal was,” he said. Although the new Home Valuation Code of Conduct rules were designed by regulators to protect appraisers from undue pressure from interested parties, complaints abound about higher costs, lower quality and long wait times. (www.chicagotribune.com)
Recession May Forge a Housing Shift in CaliforniaDuring the housing boom, home owners in the Los Angeles area had no qualms about spending money to commute to distant suburbs carved out of the hinterlands, according to economist Edward Leamer, director of the UCLA Anderson Forecast. But frugal home buyers, he said, will be more inclined to look first at homes that are closer to their jobs. “We’re going to see more multifamily-dwelling units,” Leamer said. “We’ll probably be seeing a trend toward smaller, greener, less-costly-to-maintain houses,” said Walter Maloney, a spokesman for the National Association of Realtors®. It’s “a return to basics.” But not everyone is buying it. Eventually, when the economy regains steam and housing prices rebound, Southern Californians will again stretch to buy a house they cannot really afford, some believe. “People have short memories and just look a couple years ahead,” said San Fernando Valley real estate agent Gary Rapoport, who represents clients generally looking for properties in the $400,000 range. “They just want to buy whether they qualify or not.” Matt Rodriguez, a 30-year-old parade float builder, may exemplify the new, cautious Californian. Although he and his wife, a community college teacher, together earn more than $100,000 annually, the tanking real estate market persuaded them to put an indefinite hold on buying a starter home in the San Gabriel Valley. Friends’ horror stories — in this instance, the tale of a contractor buddy whose fixer-upper is now $250,000 underwater — further darkened Rodriguez’s long-term perspective. “We’ve scrambled. We’ve refigured,” Rodriguez said, “It makes no sense to own now. We’re moving on,” by which he means that they’re staying put in their $1,150-a-month un-air-conditioned Pasadena rental, saving money by growing their own vegetables and shopping for bargains wherever they can. (www.latimes.com)
Seven New Rules for the First-Time Home BuyerAs the one-year anniversary of the nation’s near financial collapse arrives, first-time home buyers are reexamining the long-standing real estate maxim that you should always stretch financially when buying your first home. Economists and financial planners who recently spoke with a New York Times writer were almost unanimous in their rejection of it. Put 20% down so you have less of a chance of owing more than your home is worth if prices fall again, they advise. Get a fixed-rate mortgage, so the biggest part of your monthly housing bill remains stable. If you’re determined to be truly conservative, don’t spend more than about 35% of your pretax income on mortgage, property tax and home insurance payments. Bank of America, which adheres to the guidelines that Fannie Mae and Freddie Mac set, will let your total debt (including student and other loans) hit 45% of your pretax income, but no more. The best case for stretching for a first house is that first-time home buyers in their 20s and 30s will probably see their incomes grow more quickly than older people buying their second or third home. Harvey S. Rosen, a Princeton economist, finds in a forthcoming Journal of Finance article that he co-wrote with two Federal Reserve Bank economists, Kristopher Gerardi and Paul S. Willen, that the size of a house that someone buys tends to be a good indicator of what their income will be later. “People can, on average, make reasonably good predictions of their future incomes and act on them in sensible ways by buying bigger houses,” Rosen said. Indeed, much of the mess in the mortgage market has been because of people borrowing money with loans that they didn’t understand — or betting that housing prices would continue to rise enough that they would be able to refinance their loans before the payments rose. Income overconfidence may have had something to do with it (and high unemployment worsened the problems), but it’s probably not the primary cause. (www.nytimes.com)
Builders Keep Homes Under $200,000For Ron Terry Construction Inc., which for 15 years has been building affordable homes priced at less than $200,000 in Flathead Valley, Mont., building homes is constantly a learning process. The company upgraded to more advanced framing techniques, is refining its floor plans and is looking for affordable ways to build green. “We make sure we can include green features in our homes but still keep them affordable,” said Merna Terry, who recently was certified as a green professional by NAHB. “We’ve moved our heating in our homes to all-electric. We use windows with low-e coating. The windows are more energy-efficient.” Low-emissivity coating works like an invisible mirror to reflect light back out from the house, keeping it cooler. The Terrys also use energy heel trusses, which allow for more insulation between wood studs. “We’re always looking at what’s helpful to a home owner’s energy consumption.” Recently, the company was offering credits toward its homes to get the market moving. When the bottom of the housing industry fell out, the Terrys, like many others, felt the shift. “We went five months this winter without a sale, and we were used to 40 to 50 sales a year,” Merna said. “That was really scary. But it feels like the bottom’s been hit and we’re starting to pick up. Things have really turned around for us this summer. We sold seven homes in June, one of our best months ever. I sold two homes [Tuesday].” In April, the Terrys offered an $8,000 credit toward a new home. Each month, the company offers a different special. In August, it had a completed townhouse for sale and was offering a $2,000 allowance for extra appliances, window blinds, sod for the yard and a Culligan water softener system free for a year. “Our profit margin is the same percentage as bigger homes, but they cost less money, so [the profit] is less,” Merna said. “It’s the small things that make a difference in whether we have a good profit with a home.” By having their own employees rather than subcontractors do most of the work on their houses, and having home sites ideally suited to the homes and set options, the Terrys keep costs from going up. But the recession has made it difficult in 2009. (www.dailyinterlake.com)
Birmingham-Area Home Builders Hope for UptickIn metro Birmingham, Ala., there are pockets of renewed activity, as builders benefit from the interest sparked by a new $8,000 tax credit for first-time home buyers, said Bart Fletcher, executive vice president of the Greater Birmingham Association of Home Builders. “There’s a little bit of excitement and enthusiasm in the industry that we haven’t seen in several months,” he said. “Summer always brings an increase in activity, but it’s been positive compared to what we’ve seen recently.” Fletcher said he expects the activity to continue through the end of November, when the tax credit expires. And if Congress decides to reauthorize the program, there’s a good change the momentum will continue, he said. The coming months will be the true test of a potential recovery for the home building industry, said Darin White, associate professor of marketing at Samford University’s Brock School of Business. The first-time home buyer tax credit, which some economists say is driving as much as 50% of current home sales, is set to expire Nov. 30, White said. Then the industry will be left without an artificial stimulant. “That will be really interesting to see if these green shoots will go ahead and bloom on out or if they will wither,” he said. (www.bhamnews.com)
Condos Forced Into Creative Action Amid Foreclosure CrisisCondo associations, developers and lenders across the nation are trying innovative tactics to save themselves from financial disaster amid the foreclosure crisis. The association at Shoreline Towers, a 378-unit Chicago condominium, plans to use reserve funds to buy foreclosed units, rent them, then resell them when the market improves. The move prevents foreclosed units from being sold far below market value and allows the association to recoup some unpaid assessments. Last month, a judge in Seminole County, Fla., appointed a receiver to collect rents at the request of a condo association at a condo where more than half the owners were delinquent and unpaid fees topped $700,000. The rental income will be used to pay the overdue assessments of condo owners who rented their units, then stopped paying. (www.usatoday.com)
Letter to Bernanke: Losing Hope in the Banking SystemThe following letter was sent earlier this summer to Federal Reserve Board Chairman Ben Bernanke: Dear Mr. Chairman: On July 16, a group of home builders from the National Association of Home Builders met with you to discuss issues of concern affecting our industry. Due to the limited time we had for our meeting, I was not able to share some comments with you regarding banking issues that are affecting my business and my livelihood. I immigrated to the United States when I was eight years old. The one thing I love about this great country is that this really is the land of opportunity. Opportunity does not care whether you are black or white, male or female, young or old, foreign-born or U.S.-born. Opportunity is available to all willing to work hard, take risks and be persistent. I have modeled my business around this central theme of opportunity. I go where the opportunity is. Sometimes it is in building a tract of homes, sometimes it is in building custom homes and sometimes it is in buying foreclosed properties from banks, remodeling them and then renting or reselling these refurbished homes. I have always had a tremendous amount of hope knowing that my destiny is in my own hands and that through careful planning and taking advantage of the opportunities that were available to me I would succeed and hopefully contribute to society. Regrettably, I must inform you that I am losing hope. I fear that the economic situation is deteriorating to a level that, no matter what I do, doors that were once wide open are now being slammed in my face. I have three tract home developments that are at a standstill. The largest is a 163-unit townhome development in a gated community. After 18 months of trying, I was able to get a two-year land loan extension from the bank that took over the original bank that failed. It took a tremendous effort to get this loan extension, including cross collateralizing the project with my home and three other properties I own. Right now this large, shovel-ready development is sitting on the shelf because no one is making construction loans. I could almost write a book regarding my efforts to secure financing. There is no money available for development. The banks are hoarding their money and refusing to lend to builders like me. Imagine how many people I would employ and how much my project would contribute to the local economy if I could somehow secure the necessary financing. Since I cannot obtain financing for my tract home developments, I went to another area of opportunity — building custom homes. One of these projects is an old home in a great neighborhood that I remodeled into a high-end, custom residence. This home should have sold for about $1.7 million. Unfortunately, the market went against me and I had to lease the home. I am losing about $4,200 per month on this home but I refuse to walk away and let it go into foreclosure. The bank lent me the money in good faith and I will repay them; after all, a deal is a deal. I have tried to refinance the home to get a lower interest rate so I can reduce my negative cash flow, but the super jumbo market is difficult at best. The appraisals come in so far below actual market value and the loan-to-values are so low that a refinance is out of the question. So, as you can see, this second area of opportunity is no longer viable because banks are making it virtually impossible to secure financing. Since the opportunities in building tract homes and custom homes have dried up, I turned once again to buying foreclosed properties from banks. These are inexpensive homes and apartments in San Bernardino County, Calif. I am told that we have the second highest unemployment rate in this country behind Detroit. I currently have six properties totaling 13 units that we are remodeling and then renting to low-income families. It has taken everything I have at great personal risk to buy these properties for cash and then pay for the remodeling. Now I find myself in the very uncomfortable position of not being able to find a lender that will refinance any of these properties. I own other rental property and have mortgages on these apartments. My bank, which has received TARP funds, will not lend to anyone having more than four mortgages, as they sell their loans to Freddie Mac. Fannie Mae has somewhat higher limits on how many mortgages a borrower may have, but I also exceed their limits. I am very troubled. I am performing a valued community service by buying these boarded-up, vandalized and dilapidated homes. I am providing work for not only my own employees but to countless subcontractors. I am buying building materials. I am paying sales taxes on these materials. I am providing much needed housing for low-income families. I am now at a standstill and will not be buying any more properties, as I cannot refinance any of the homes that have been rebuilt and rented. Soon I will be dismissing all my employees. These are good people with families that depend on me. This is a heavy burden that I bear and I dread the day that I tell them that I no longer have any work for them. This third area of opportunity is no longer viable for me because of the dreadful situation in our banking system. Banks were given TARP funds so they could lend money to stimulate the economy. Where is this money? We are certainly not seeing any of it out here. Chairman Bernanke, I started this letter by telling you that I love this great country because of the opportunities available to all of us. I fear that this opportunity is drying up even for people like me who actually look for opportunity, are creditworthy and risk everything to provide a better future for our families. This is not the America that I grew up in. People are losing hope and sadly I must tell you I am one of those people. I have always been an optimist, and right now it is extremely difficult to have any hope. I believe that when hope is lost, civilizations decline. A friend of mine once told me this quote: “Great leaders rally people to a better future.” Chairman Bernanke, after meeting you I believe that you are that great leader who can rally people to a better future. You can do that by using your power and influence to convince banks to once again start lending to creditworthy customers. You can rally our industry to a better future by using some of the returned TARP funds for acquisition, development and construction loans to help builders start building again and putting families into homes of their own. You can rally us to a better future by relaxing the stifling lending standards at Fannie and Freddie and relaxing the onerous appraisal standards. Let’s get America back to work again. Please help us to restore hope and opportunity to this great land once again. Rafael “Ray” Fernandez
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. Build Buyer Interest, Generate Leads With Videos on YouTubeThis is the latest in a series on social networking and marketing new homes. Social media marketing has become, quite frankly, an essential way to do business and one of the premier sites the home building industry should use is YouTube. We in the industry work with prospective buyers who are savvier than ever — due in large part to the information they glean from the Internet. However, no matter how savvy the buyer, they still seek the most fundamental of all sales concepts — they want to trust the salesperson and company they are working with. After they have gathered all their information, they want to be validated. They want to work with real people with real insights. This is where a vehicle like YouTube can be your most influential tool. Videos bridge static information and the visual. They give your prospective buyers a view into your product and your personality. In addition, they function as a lead generator as well as a lead qualifier. YouTube Is Simple to Use With YouTube, you can shoot a short video and upload it to the site within minutes. YouTube then provides you a link that you can copy and paste into an e-mail to your prospects, or post on your Web site, blog or other social sites you may have, such as Facebook or Twitter. All you need is a video camera and an idea. The video camera can be as simple as the video feature on your cell phone or hand-held Flip Cam, which generally retails for less than $250. YouTube technology is easy to use. But in case you’re a technophobe, don’t worry. Someone in your office, or just about any high school student, will be able to upload a video for you. What you will probably find more challenging will be creating and developing the ideas for videos that will distinguish you and elevate you above your competition. The following are a few tips on what to do when making your video — and what to avoid doing. Video Do’s
Keep in mind that, as with most other forms of marketing, video marketing is a work-in-progress. The more you work with it, the more it will work for you. Paul Montelongo, CSP, CGR, is a nationally recognized speaker, author, syndicated columnist, entrepreneurial consultant and an international authority on sales motivation. He works with businesses and organizations around the country to build team responsibility and personal morale. Visit www.youtube.com/plmontelongo for video evidence and his blog at www.paulmontelongo.com/housingblog for social media marketing proof. For more information, e-mail Montelongo, visit Paul Montelongo International, based in San Antonio, or call 210-541-5553. How to Operate Lean in a Down MarketThis is the first in a series created by the NAHB Women’s Council Communications Committee about doing business in a down market. During these trying economic times, business professionals need to ask themselves: How lean are we running our businesses? As the building industry rebounds, business owners should examine their bottom line and implement new strategies for success. Here are some practical ideas to help you operate your business leaner and more efficiently: Identify Key Markets Make sure you stay informed on the latest building industry news, national and local statistics and emerging markets. Consider whether certain segments of your market are more — or less —susceptible to the economic conditions and then focus on the segment least impacted. Also, diversify your customer base to balance your portfolio. Improve Your Value Proposition During challenging times, companies often are more willing to change suppliers and consultants in order to attain cost savings or get comprehensive services. Use this opportunity to grow your customer base and sales by achieving a better value proposition than your competitor — and communicating it to your customers. Cut Costs The following are several cost cutting techniques you can employ:
Identify and understand the true costs for specific jobs. Without accurate job cost data, you cannot choose the most profitable customers and job types. Therefore, take the time to measure, track and record direct labor and materials for each job, then allocate indirect materials and overhead proportionately. Once you’ve built a history of different job types and the relative costs and margins, you can make more informed choices regarding the best kinds of customers and jobs for your business. I recommended a review period of at least one year to properly compare costing. Staffing Instead of more layoffs, you might want to consider reducing your employees’ hours in order to keep more of them employed. By rotating days off, you can cut expenses while maintaining coverage for tasks. Most employees today would rather work fewer hours than have no job at all. This solution may also boost morale a little and ease the tension of working in an environment rife with the fear of layoffs. Don’t Be Afraid to Ask for Help Talk to business colleagues and find out if there are joint projects you can work on together for shared profits. Pooling financial and other resources with businesses that have complementary skills can be a smart way to keep businesses operating without incurring too many expenses. Also, if you don’t know what to do, ask someone who may have more experience. Most business colleagues are willing to generously share experiences and suggestions. And don’t be afraid to try new things. Newness is always a risk, but an even bigger risk is sitting in despair expecting positive changes. Allison Tabor is CEO of TEAC Structural Engineering, a San Ramon, Calif.-based firm that provides structural engineering services for commercial, residential and industrial projects ranging from single-family and multifamily units to mixed-use, retail, office, hotels and solar. For more information, e-mail Tabor, call her at 925-275-0110 or visit the TEAC Structural Engineering Web site at www.teaceingineers.com. Get to Know Your Customers Because Your Customers KnowCustomers represent a company's best advisors — and its final authority. Their observations and insights are invaluable; their feedback is critical. But all too often, the only time a business gathers information about its customers is when they switch to a competitor. Too many companies don’t have a follow-up customer service system that routinely asks its customers, “How did we do, and how could we do it better?” Following are strategies you can use to reconnect with your customers and begin reaping the benefit of their wisdom. Embrace the Belief That Customers Possess Good Ideas Customers have fresh eyes and provide a unique perspective. You spend a third of your life at your business, your customers don’t. Because of all your day-to-day business routines, you’ve probably developed a few blind spots. Not so with your customers. Their antennae are out. They are sizing you up, evaluating, assessing and judging. You shouldn’t be too surprised. You do the same thing when you’re a customer. Your clients know what they like and dislike about doing business with you and, if you ask them, they’ll probably tell you. Gather Customer Feedback at Every Opportunity Give customers multiple opportunities to let you know how you are doing. Avoid the trap of thinking that your customers are too busy to provide insights into your business. If they are too busy, they’ll politely decline your request. Ask for Help Generally, people are open and willing to help, especially if asked. So, ask past or current customers if they'd be willing to help you by answering a few questions. Actively Solicit Positive and Negative Feedback When asking customers about what your company did that worked, also be sure to ask them for suggestions on how you might improve your process, product or service. Protect Your Resources You don’t have to devote too much time or spend too much money to obtain useful feedback from your customers. Just ask them, be consistent and listen. Make It Easy for Customers to Provide Feedback Make it convenient for your customers, not for you, to provide feedback. For example, several hours after eating my favorite home-delivery pizza, the restaurant sent me a fax asking for my feedback. The company asked just five simple questions. To respond, all I had to do was check the appropriate box in the survey and fax it back. The entire transaction took about three minutes. Once You Have Customer Feedback, Act on It It’s tough to keep your eye on the ball if you spend your days with your nose to the grindstone. Your customers can direct your efforts toward constant improvement, increased revenues and more profit. When you gather your customers' feedback, use it to promote innovative change in your company. Dennis DuRoff is a business coach, speaker and author whose clients include builders and remodelers. He also offers a low-cost, turnkey newsletter program that helps builders and remodelers stay in touch with prospective customers and past clients and maximize referrals and increase sales. For more information, e-mail DuRoff, call him at 206-722-6067 or visit www.thebuildersnewsletter.com. NAHB Has Nearly 300 Resources to Help You Run Your Business More Profitably Go to NAHB's Business Management Tools Web pages (available to members only) for instant access to nearly 300 timesaving, moneymaking and cost-cutting business resources to help you run your business more profitably. Get guidance on accounting and financial management, business strategy, computers and information technology, customer service, human resources and more. Resources are added weekly, so bookmark www.nahb.org/Biztools to go directly to these vital business management resources. ‘Customer Service for Home Builders’ Available at BuilderBooks.com “Customer Service for Home Builders,” available through BuilderBooks.com, provides the tools need to add new life to a customer service program. The publication includes forms, checklists, documents and a resource guide. To view or purchase this publication online, click here, or call 800-223-2665.
Sept. 17 Audio Seminar to Discuss Taking Advantage of DownturnWhen the dust of the housing shakeup settles, the builders and housing industry professionals left standing will be those who made plans for the future. To help builders, remodelers, architects, planners, designers, sales and marketing professionals, contractors and other industry professionals position their companies to take advantage of the downturn, NAHB's National Sales and Marketing Council is sponsoring an audio seminar, “Beyond the Best-Case Scenario,” beginning 2:00 p.m. EDT on Thursday, Sept. 17. During the seminar, building industry management and sales consultants Ross Robbins, CMP, CSP, MIRM, of Lee Evans Group/Shinn Consulting, Inc.; and Manny Schatz, CAASH, CGP, CMP, MIRM, of PBS, Inc., will discuss a three-step strategic process that can help guide business owners to realistically plan and prepare for the future. The strategic process presented will help put business owners in the driver’s seat, explaining how owners can be more realistic about their options by making decisions deliberately instead of desperately. The panelists also will explain how business owners can effectively use their resources to develop a vision for the future while staying focused on their day-to-day needs. Registrants will receive:
The fee is $39 per phone site for NAHB members, $59 for non-members. For information or to register, visit www.nahb.org/BestCaseAudio.
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.
In Today’s Market, 'Think Sold!' With Help From BuilderBooks “Think Sold! Creating Home Sales in Any Market,” available at BuilderBooks.com, is a practical, how-to guide for developing the self-awareness, knowledge and skills needed to succeed in the competitive field of new home sales. The book covers everything from the home buying process and new home financing to strategies for making better sales presentations and sizing up the competition. It teaches readers how to overcome customers’ concerns and provides specific examples of how to explain the benefits of new home features in customer-friendly language. “Think Sold” provides insights on how to approach sales and life from a position of optimism that will create successful outcomes; how to improve upon potential customer prospecting and follow-up skills; and how to communicate effectively with various types of buyers and learn how to adjust communication strategies to increase rapport and alignment with buyers’ motives. To view or purchase this publication online, click here, or call 800-223-2665.
Subscribe to Sales + Marketing Ideas Magazine for Cutting-Edge Information For additional cutting-edge sales and marketing information, subscribe to NAHB’s Sales + Marketing Ideas magazine (www.smimagazine.com). Click here to learn about membership benefits of the National Sales and Marketing Council and the Institute of Residential Marketing. Sept. 23 Webinar Analyzes What Boomers Want ResearchThe home and community preferences of baby boomers and their older cohorts will be discussed during a webinar presented by NAHB’s 50+ Housing Council beginning at 1:00 p.m. EDT on Wednesday, Sept. 23. The webinar, “55+ Housing by the Numbers (Part 2),” will examine the most recent research conducted by NAHB and the MetLife Mature Market Institute (MMI). The webinar is free to members of the 50+ Housing Council. The fee is $69 for other NAHB members and $100 for non-members. Based on 2009 consumer and builder surveys to examine emerging industry trends, the research examines what 55+ consumers are looking for in the future — including design features, amenities and home finance. The research also looks at the mature market's acceptance of green building and aging in place/universal design. In addition, experts also break down the similarities and differences between consumers and builders today. The information will give industry professionals a better understanding of the 55+ market and the tools to build and design homes and communities that appeal to the next wave of boomers. Panelists include NAHB Chief Economist David Crowe; John Migliaccio, director of research for the MetLife Mature Market Institute; and Steven Bomberger, president of Benchmark Builders a residential and active adult builder based in Wilmington, Del. Sharon Dworkin Bell, senior vice president for NAHB’s Multifamily and 50+ Housing areas, will serve as the moderator. During the webinar, the panelists will:
For more information and to register, click here, call the NAHB Office of the Registrar at 800-368-5242 x8338 or e-mail registrar@nahb.com. The webinar is part of series of NAHB 50+ Housing E-Learning sessions being held through October. For information about the upcoming webinars, visit www.nahb.org/50pluswebseminar. 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 50+ housing professionals determine the right design, home features and amenities to attract boomer home buyers in their market. Margaret 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. Low Hotel Rates at IBS Still Offered With Early RegistrationMost of the discounted hotel room rates offered last month with registration to the 2010 International Builders’ Show (IBS) in Las Vegas are still valid, though a few hotel room rates have increased. Industry professionals who register for IBS, which will be held Jan. 19-22, can take advantage of NAHB's red hot deals on housing featuring rooms still as low as $32 a night at certain hotels. IBS, the largest building industry tradeshow in the country with more than 175 educational sessions, is the single, most important industry event of the year. Early registrants can also take advantage of other NAHB deals, including complimentary four-day exhibit hall passes that are available to members who register by Dec. 11. Online registration deal details include:
Register Online for Spokesperson Training at IBSOnline registration is now available for NAHB Spokesperson Training sessions at the upcoming 2010 International Builders’ Show in Las Vegas in January. Members can now register securely online with a credit card for one or both of the Spokesperson Training sessions — Interview Skills and Presentation Skills — on the NAHB Web site. In the Interview Skills session, NAHB members will learn how to give clear, concise answers while in a high-pressure, spur-of-the moment interview. The training also will help participants master strategies for broadcast and print interviews, including message development. Members attending the Presentation Skills session will learn how to confidently prepare and deliver dynamic presentations to any audience. The session focuses on how to organize and deliver a speech and presentation with accompanying question and answer sessions. International Builders’ Show Session Schedules:
The fee for each session is $495 per person. For more information and to register, click here. Each session is led by professional communication consultants who have more than 30 years of experience training NAHB members on the critical issues they face every day. More than 15,000 NAHB leaders have taken Spokesperson Training since the program began in 1979. For more information, e-mail Brooke Fishel at NAHB, or call her at 800-368-5242 x8061. Builders’ Tip: Golf Ball a Gimme for Coping Crown Molding
Because of the angles and intricacy involved, coping crown molding with an electric jigsaw requires a steady hand and a steady eye. One way to make the job easier is to attach a rounded auxiliary base to the jigsaw’s standard flat base in order to maneuver the saw properly. But I was stumped about how to actually make the necessary modification — until I decided to make a jig using a spare golf ball. As shown in the accompanying drawing:
I also have found that longer blades can be used for cutting larger pieces of crown molding, and that different jig configurations can be fabricated by cutting the ball into a variety of segment sizes. — Jim Delvin Des Moines, Wash. 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. OSHA to Step Up Job Site Safety InspectionsThe Occupational Safety and Health Administration (OSHA) intends to increase its enforcement inspections, and home building and other construction job sites are a primary target, U.S. Labor Secretary Hilda L. Solis announced on Aug. 20 in response to a new Bureau of Labor Statistics report showing that fatal occupational injuries decreased to 5,071 in 2008, down from 5,657 in 2007. "While the decrease in the number of fatal work injuries represents change in the right direction, it does not lessen the need for strong enforcement to ensure that safety is a top priority in every workplace,” Solis said. “In fact, today's report prompts us to step up our vigilance, particularly as the economy regains momentum.” In the residential construction industry, the average fatality rate is 8.35 deaths per 100,000 full-time employees, according to NAHB’s study, “Residential Construction Industry Fatalities 2003-2006.” The rate for all construction is 11.59 deaths per 100,000. Builders can mitigate the risk of employee injuries or fatalities by recognizing and addressing potential job site hazards, being knowledgeable about applicable requirements and regulations and implementing a comprehensive safety and health plan. The NAHB publication and companion CD, ”Home Builders’ Safety Program,” provide an overview of job-site safety and a model safety program that builders can use to develop their plan. To help its members understand why OSHA may initiate an inspection and what happens during and following an inspection, including tips on how to respond during an inspection, NAHB has developed a document on “The OSHA Inspection Process.” Among the many reasons why OSHA may inspect a workplace:
To see all of NAHB’s safety resources available through BuilderBooks, go to: www.builderbooks.com/safety.
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. NAHB Reviewing 2,400 Proposed ICC Code ChangesThe more than 2,400 code change proposals submitted for developing the 2012 editions of the International Code Council's (ICC’s) family of model building codes are now being reviewed by NAHB members and staff. While provisions on residential fire sprinklers, energy efficiency and wall bracing tend to generate the most interest, the volunteer members of NAHB’s Provisions Oversight Groups (POG) are likely to decide to support or oppose as many as half of the proposals submitted. POG members will be meeting Sept. 21-23 at the National Housing Center in Washington, D.C. to review the staff recommendations and develop the NAHB-supported positions on the proposals. Public hearings on the proposals will take place Oct. 24-Nov. 11 in Baltimore. NAHB will be represented at the hearings by 20 members on 12 ICC code committees and two code councils. NAHB has long supported the International Code Council, whose members create, and then vote on, the model building codes that set minimum standards for construction and fire-safety. Among the issues to watch:
For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132. ‘Home Builders’ Jobsite Codes’ Available at BuilderBooks.com “Home Builders’ Jobsite Codes,” available at BuilderBooks.com, provides easy access to the information you need. A quick reference to the 2006 International Residential Code, the guide provides easy-to-read code requirements for every aspect of residential construction. The user-friendly field guild is packed with illustrations, tables, figures and a glossary to facilitate your understanding of the codes. To view or purchase this publication online, click here, or call 800-223-2665. Low Confidence Suggests Apartments Slower to RecoverWhile single-family housing has been showing recent signs of rebounding, the apartment sector is on a slower trajectory for recovery, according to NAHB’s latest Multifamily Market Index (MMI), which was released late last month. The MMI for this year’s second quarter indicated a downward movement across the rental market. Market-rate apartment starts registered 16.7 on the index — roughly the same level as the past three quarters but less than half the level of the same quarter of last year. Lower-rent apartments fell to 21.3 — a dozen points lower than the year-earlier level. Expectations for lower-rent apartment starts over the next six months showed some improvement, rising to 38.2 in this year’s second quarter, up from 33.3 in the same quarter of 2008. The condo index, which was at a record low of 10 for the second quarter of last year, rose to 15 during this year’s April-to-June period. Expectations for condo starts over the coming six months rose modestly to a level of 27.1, up from 21.0 in the second quarter of 2008. “The continued contraction in multifamily starts is exacerbated by the ‘shadow market’ of empty foreclosed single-family homes and condos that are being rented at below-market rates by investor-owners,” said NAHB Chief Economist David Crowe. “Lenders see the high apartment vacancy rates and vacant condo inventory, and step away from backing any new production.” Increased vacancies and slower absorptions confirm the current market assessment of the builders and developers who were surveyed for the index. The second quarter apartment vacancy rate of 8.1% was 1.3 percentage points higher than a year earlier. Only 36% of new units were reported being rented within 60 days in this year’s second quarter, compared to 54% for the same period of 2008. Demand for apartments fell in the second quarter along with household formations and job creation. For higher-end apartments, second-quarter demand slipped seven points from a year earlier, to 27.1 For full survey results, click here. NAHB’s Multifamily Market Indexes are derived from quarterly surveys of multifamily builders and developers whose responses are reported on a scale of 0 to 100, with any number over 50 indicating more positive than negative responses. The latest survey also included a series of special questions on condo sales. Among the findings:
For further information, e-mail Ann Marie Moriarty at NAHB, or call her at 800-368-5242 x8350. Big Spaces, Luxury on Back Burner of Multifamily DesignIn a recent NAHB Multifamily Web seminar moderated by Rick Mercer, a director at Wood Partners, a panel of expert architects explored how changes in the business climate have affected what’s being built. Among their observations:
For more information about listening to a rebroadcast of the "Innovative Stratgies to Success" webinar, e-mail Sheronda Carr at NAHB or call her at 800-368-5242 x8168. Sept. 29 Webinar to Discuss Key Strategies for LIHTC PropertiesStrategies for repositioning, marketing and foreclosure proceedings for Low Income Housing Tax Credit (LIHTC) properties will be discussed during the “Strategies for Troubled Assets Before and After the LIHTC Compliance Period” webinar, on Tuesday, Sept. 29 beginning at 2:00 p.m. EDT. Panelists will answer questions, including”
To Register The webinar is free to active HCCPs and HCG members. The fee is $59 for NAHB members and $89 for non-members. To register, visit www.nahb.org/HCGWebinar. Registration ends Friday, Sept. 25. NAHB Remodelers Meetings and Events at Fall BoardThe following is the schedule of NAHB Remodelers meetings, events and activities during the NAHB Fall Board of Directors meeting in Chicago on Oct. 1-2. Thursday, Oct. 1
'How to Find a Professional Remodeler' Brochures Available at BuilderBooks.com "How to Find a Professional Remodeler," available at BuilderBooks.com, promotes the professionalism of your remodeling business by offering a wealth of valuable advice to customers on the process of selecting a remodeler. The newly updated brochure highlights the before and after photos of the most frequently remolded rooms in the house. To view or purchase this publication online, click here, or call 800-223-2665.
Attend NAHB Remodelers Events at Remodeling Show in IndianapolisNAHB Remodelers who want to learn about the latest technical skills and business practices should plan to attend the 2009 Remodeling Show on Oct. 27-30 in Indianapolis. The NAHB Remodelers will host several events, pre-show education, an exhibit booth and more. NAHB Remodelers events at the show include: Thursday, Oct. 29
'How to Find a Professional Remodeler' Brochures Available at BuilderBooks.com "How to Find a Professional Remodeler," available at BuilderBooks.com, promotes the professionalism of your remodeling business by offering a wealth of valuable advice to customers on the process of selecting a remodeler. The newly updated brochure highlights the before and after photos of the most frequently remolded rooms in the house. To view or purchase this publication online, click here, or call 800-223-2665.
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, to search for specific course offerings in your area, visit www.nahb.org/courses. Also view upcoming conferences. Energy-Efficient Housing Starts With Building a TeamWhile encouraging cooperation among employees is an essential element of success in business and is so critical that an entire industry is devoted to providing team-building options, winners of the 2009 EnergyValue Housing Award (EVHA) emphasize the importance of their personal involvement in building and motivating teams that are dedicated to producing energy-efficient housing. Simply sharing his enthusiasm for doing a job well and letting that enthusiasm spread is an approach that works for Ted Clifton, president of EVHA winner Clifton View Homes. Clifton doesn’t sugarcoat or try to minimize the team-building process. “It’s a long process that starts with the general contractor,” he says. “You need to clearly understand what you are doing, and why, so that you can make your case to trade contractors. There will be some resistance at first, and you need to take it one step at a time, but with confidence and enthusiasm, everyone is going to follow.” This team-building approach is also important when builders go beyond energy efficiency to construct green homes. The creation of a green planning and management team is an important component when building a home to the National Green Building Standard. Clifton stresses the need to introduce ideas systematically, not all at once, so that trades can comfortably add each new process or product to their repertoires. Carl Seville of Seville Consulting, another EVHA winner, takes a blunter approach to building a consensus. “Don’t offer alternatives,” he says. “You have to set the rules. Set high standards and stick to them by holding trade contractors accountable.” Seville cautions that while it is important to show individual contractors on the job site how to achieve energy-efficient or green goals, it is essential to get the contracting company owner’s buy-in. He also stresses the importance of inspecting work, especially when there is employee turnover within any of the trade companies. While Seville has developed his own set of job site specifications, and currently helps other builders do the same, Clifton takes advantage of the local green building program’s trade contractor “cheat sheets” to inform trades of their responsibilities. According to Clifton, “It is critical to supply contractors with the right information they need to do the job. We tell them what they need to do and when they need to get involved” via contractual documents that are signed each year. For Clifton’s company “going green” was a fundamental change that affected the entire job-site culture. “Once you have trade contractors thinking about the job they’re doing and how it relates to the entire project, they start looking for better products or more efficient ways to use existing products.” Clifton notes with pride that fuel-efficient vehicles are becoming the norm on his job sites, alongside his Honda Civic hatchback that he loads with an eight-foot ladder and tools. Both Seville and Clifton recommend training for builders who are getting started with energy efficiency and green home building. “But that’s just the beginning of your education,” says Seville. Beyond that, he recommends working with a mentor or consultant who can help write specifications. Some existing tools for setting high performance home standards include the Energy Star ”Thermal Bypass Checklist” for insulation and air sealing and the four initial Building America High Performance Scopes of Work that cover excavation and backfill, poured concrete foundations, framing and HVAC installation. More high performance scopes of work from Building America will appear in coming months on the NAHB Research Center’s ToolBase Services Web site. The 2010 EnergyValue Housing Award competition is officially closed, and entries are being judged at the NAHB Research Center this month. Once the judging is complete, members of the public can vote for their favorite EVHA finalist for the People’s Choice Award, or learn more about the competition, by visiting the EVHA Web site. For more information on high-performance home building and related programs, contact the NAHB Research Center. ‘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. Nearly 4,000 people have earned the CGP designation 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. Submit Education Proposals for NAHB Green Building ConferenceExperts in business management, sales, design and all aspects of building science are invited to submit proposals for a series of advanced educational sessions planned for the 2010 NAHB National Green Building Conference. To accommodate increased interest in next year’s conference, the deadline to submit proposals has been extended to Oct.1. 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 to talk to 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 relevance to green building, timeliness of the topic, practical application and speaker qualifications. Proposals without specific learning outcomes will not be considered. To submit a proposal, visit the NAHB ISIS page. For additional information, e-mail ibsedu@nahb.com. The 2010 conference takes place at the Raleigh Convention Center. Discounted hotel space has been reserved at the adjoining Raleigh Marriott City Center and the Sheraton Raleigh nearby. 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. Nearly 4,000 people have earned the CGP designation 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. Flexible Development Policies Urged in Bay Clean-Up PlanNAHB has submitted suggestions on storm water management regulations and “smart growth” principles to the U.S. Environmental Protection Agency as regulators begin to implement an executive order to help restore the Chesapeake Bay. The suggestions are part of NAHB’s continuing effort to ease what are seen as inevitable restrictions on home building and development as a result of the federal government’s new initiatives to protect the vast watershed, which encompasses seven states and the District of Columbia. Regulators should not unfairly target home builders, said NAHB, and should instead address “all sources of pollution contributing to the bay’s deterioration,” with the greatest emphasis on the biggest sources of pollution, primarily agriculture and runoff from urban areas. At a Sept. 10 press conference with EPA Administrator Lisa Jackson, Department of the Interior Secretary Ken Salazar and Department of Agriculture Secretary Tom Vilsack, Administration officials said that the executive order marks a “historic opportunity” to clean up the bay. The officials released seven draft reports, including initiatives designed to increase the accountability of regulators and expand their authority, to target the most fragile areas and to employ more innovative methods to keep the bay clean. The report emphasizes agricultural operations and discusses how their nutrient discharges are affecting the health of the bay. Vilsak announced that his agency is preparing to offer more than $600 million to help feedlot operations and other farm businesses comply with the more stringent enforcement plans. A Common-Sense Storm Water Management Approach “In many cases it is more beneficial to the environment to retrofit an existing structure to better prevent runoff into the bay rather than hold new construction projects to higher standards which may be technically excessive and even impossible to meet in urban environments,” NAHB said. NAHB also suggested that the EPA play closer attention to interstate water quality trading programs, which use economic incentives to improve water quality. This approach allows one source to meet its regulatory obligations by using pollutant reductions from another source that has lower pollution control costs. Encouraging these kinds of programs will “lessen the overall costs of reducing pollutants to the bay while ensuring that agriculture is included as a major player in the reduction program,” NAHB said. “The EPA Office of Water should be provided with assistance to develop language that can be included in federal storm water management permits as they get revised, to enable and to encourage states and localities to consider appropriate water quality trading in their areas. The federal Construction General Permit will be revised in 2010 and that affords the perfect opportunity to include water quality trading language in a federal permit,” NAHB said. NAHB also asked the EPA for a more evenhanded approach to the rulemaking process that would allow not only environmental groups but also the regulated community to provide opinions before new rules and regulations are proposed. Low-impact development techniques (LIDs), in particular, it said, do not work in every application and should not be mandated. “Had the industry been consulted, the agency would know that LID failures and related issues are now surfacing in locations struggling to comply with new LID mandates,” NAHB said. “Unfortunately, the EPA has not replied to industry requests to meet. NAHB again requests a meeting with the EPA to discuss this vision of no-discharge development and how best to utilize LID for storm water management in the bay’s watershed.” Smart Growth Is Smart for the Bay, Too NAHB urged the EPA to consider residential site development principles designed to reduce the amount of impervious surfaces, conserve natural areas, prevent storm water pollution from new development and enhance a community’s value and quality of life as advocated by the Center for Watershed Protection, including:
Federal Contractors Required to E-Verify EmployeesEmployers awarded federal contracts after Sept. 8, 2009 that are subject to Federal Acquisition Regulation (FAR) are now required to enroll in the Internet-based E-Verify program, and to electronically check the identity and work authorization of all new hires, as well as existing employees who will work on the contract. The final rule requires federal contractors to enroll in the E-Verify program within 30 days from the date of the federal contract, and to complete verification within 90 days of enrollment. The rule is intended to deter the employment of unauthorized aliens on federal contracts. It is anticipated that 169,000 employers and approximately 3.8 million employees will be subject to the E-Verify participation requirement. Among the conditions of the new rule:
For more information, e-mail David Crump at NAHB, or call him at 800-368-5242 x8491. Road Show Looks at Exporting Green Building to EuropeThe U.S. Commercial Service will show manufacturers and suppliers of green building products and services how to tap lucrative opportunities in Europe’s sustainable construction market through the Green Build Road Show to five U.S. cities this November. The European market for green building products and services is ripe for competitive U.S. firms, according to the U.S. Department of Commerce, with the top five European Union (EU) construction markets alone worth an estimated $975 billion. Europe’s already strong demand for green building is growing thanks to the high cost of energy coupled with stricter EU regulations, stimulus money, tax incentives and public funding. Moreover, highly favorable exchange rates, strong protection of intellectual property rights and numerous large-scale “shovel-ready” projects make now the time for U.S. firms to expand their green sales in Europe. Decision makers from U.S. companies offering sustainable products and services can sign up for the Green Build Road Show at one of its following stops: Pittsburgh (Nov. 2), Denver (Nov. 4), San Jose, Calif. (Nov. 6), San Francisco (Nov. 9) and Phoenix (Nov. 10). The show will provide in-depth briefings from U.S. Commercial Service officers on the five biggest EU markets, with one-on-one counseling sessions available on certification and standards issues and market entry strategies. For more information, visit the official Green Building Road Show Web site at www.export.gov/greentechnologies. Student Chapters Competition, Communications Go GreenPreparing for students going back to school this fall, Home Builders Institute (HBI) spent this summer incorporating green practices in its communications with the 5,000 members of the NAHB Student Chapters program, which it administers. HBI will now keep in touch with chapter members through Web resources and telecommunications, eliminating the use of paper. That has extended to the Residential Construction Management Competitions (RCMC). Held annually during the International Builders’ Show (IBS), the RCMC is the highlight of the NAHB Student Chapters calendar. In addition to using a new green process for entering the competition and corresponding with staff, judges and committee members, this year’s RCMC contenders will be required to incorporate green into their building project, based on the National Green Building Standard and the NAHB Model Green Home Building Guidelines. Participation in the RCMC has continued to increase, fielding a record 65 teams at the most recent IBS in three divisions: four-year universities, two-year colleges and secondary schools IBS Scholarships The National Housing Endowment encourages students to attend the IBS by offering scholarships to defray travel and attendance costs. For IBS 2010, the endowment has earmarked $100,000 in scholarships and each NAHB Student Chapter may receive up to $2,500 in unmatched funds to assist with its expenses. Sponsoring home builders associations often match these contributions from the endowment. Applications for students to attend the 2010 IBS in Las Vegas in January are now available and due by Oct. 30. The endowment offers several additional scholarships for NAHB’s student members. For more information and to apply online, visit www.NAHB.org/IBSscholarship. While transferring all its correspondence to the online forum, the NAHB Student Chapters has also launched an online store for e-commerce in hats, t-shirts, backpacks and sweatshirts. NAHB Student Chapters instructors seeking industry-sponsored certification can also go to the site to purchase 16 course models, which are administered by The Ohio State University.
BASF Offers Online Course on Efficient Roofing InsulationBASF, the Chemical Company, is offering a new course called “Sustainable Design: Eco-Efficiency of Roofing Insulation Systems” in its virtual classroom, the Online Campus for High-Performance Construction. The one-hour interactive online course covers several popular roofing insulation systems, including: expanded polystyrene (EPS), polyisocyanurate (Polyiso) extruded polystyrene (XPS) and sprayed polyurethane foam (SPF), discussing the influences each has on sustainable design. The course is divided into three sections and addresses sustainable development, insulation systems, and technical, environmental and economic aspects. It compares different plastic insulation systems, providing some technical points on each system. It also explains the use of eco-efficiency analysis. “We created the Online Campus for High-Performance Construction to help industry professionals more quickly adopt proven solutions that make construction more sustainable,” said Jack Armstrong, Leader Construction Markets for BASF in North America. “To BASF, that means increasing energy efficiency, speed of construction and project durability that can translate directly into more profit for the builder and more value for the owner through lower utility and maintenance costs.” Other courses that have been posted on the BASF campus are:
Headquartered in Florham Park, N.J., BASF 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 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. Centex Awards 40 ‘Build Your Future’ ScholarshipsCentex Homes and the National Housing Endowment, the philanthropic arm of NAHB, recently announced the 40 winners of the 2009-2010 “Build Your Future” scholarships. Founded in 1999, the scholarship program provides tuition assistance to students pursuing careers in residential construction. This year, each of the recipients was awarded $1,250. The scholarship winners are:
The Centex "Build Your Future" scholarship program encourages students to further their education in such industry-related fields as construction management, construction technology, civil engineering, architecture, design or any of the trade specialties at the college or university they are attending. Preference is given to students who are active NAHB Student Chapter members at their university or college and who maintain a 2.5 GPA on a 4.0 scale in all course work and a 3.0 in their core curriculum courses. Since its founding, the Centex /National Housing Endowment Scholarship has awarded more than $250,000 to 155 exemplary students attending residential construction programs across the country. About Endowment Scholarship Programs The endowment administers 10 scholarship programs and awards more than $350,000 each year to students pursuing careers in residential construction and related fields. For more information, visit the endowment Web site at www.nationalhousingendowment.org.
Applications for Endowment IBS Scholarships Due Oct. 30Applications for students to attend the 2010 International Builders’ Show (IBS) in Las Vegas are now available and due by Oct. 30. The scholarships ― sponsored by the National Housing Endowment in conjunction with the Home Builders Institute ― enable NAHB Student Chapter members to offset some or all of their travel and attendance expenses at IBS. Providing funding to students has proven to be instrumental in helping them learn outside the classroom and prepare careers in the home building industry. The IBS scholarship program also helps give young NAHB members the tools to enter into the federation as graduates and to become future leaders. This year, the endowment has allocated up to $100,000 for scholarships for the program. To be considered for funding, a student must meet the following qualifications:
State and local home builders associations can apply for up to $2,500 in matching funds to distribute to their local NAHB Student Chapter. Individual NAHB Student Chapters can apply for up to $2,500 in non-matched funds. Preference will be given to chapters represented by a Residential Construction Management Competition team at the IBS. For more information and to apply online, visit www.NAHB.org/IBSscholarship. Recipients will be notified by Nov. 26 and funds will be distributed in mid-December. More Endowment Scholarship Programs The endowment administers 10 scholarship programs and awards more than $350,000 each year to students pursuing careers in residential construction and related fields. For more information, visit the endowment's Web site at www.nationalhousingendowment.org. SMA Consulting Founder Steven Maltzman Dies at 54Steve Maltzman, founder and co-owner of SMA Consulting, based in Orlando, for 20 years and a respected business resource for small builders and remodelers across the country, passed away from a heart attack at his home in Redlands, Calif., on Aug. 14. He was 54. Maltzman also was instrumental to the success of NAHB's Builder 20 program and was a guiding force for NAHB's Executive Committee, Business Management and Information Technology Committee, Education and Information Systems Committee and NAHB Remodelers. Known throughout the industry for his sound advice, incredible work ethic and genial personality, he expanded his counsel by authoring several industry-related books that are sold through BuilderBooks.com. SMA Consulting partner Bob Whitten reported that, in honor of Maltzman, the accounting firm he founded will change its name back to Steve Maltzman & Associates. In addition, a scholarship fund is being established in Maltzman's name to help students majoring in accounting or construction management. Born in Brooklyn, N.Y., Maltzman is survived by his wife, Sheri Maltzman; two daughters, Sara Maltzman and Daniele Maltzman; sister, Wendy Kohn; and mother, Frances Maltzman. Members, Save on HP Business Products and MoreNAHB members can enjoy special pricing on HP business products and accessories, free U.S. ground shipping*, a specially-trained sales team to help them choose the right technology and award-winning support. For example, pricing for the HP Mini 5101, HP’s smallest and lightest mobile solution, starts at just $399 — after $125 instant savings. Designed for mobile professionals who want a lightweight solution, the HP Mini 5101 features a durable, all-metal case with magnesium base that protects your notebook from the rigors of work on the go. Accidental damage protection can be added for $49. To learn more about the HP Mini 5101, click here. HP offers valuable services, tips and tools, like easy financing, drivers and downloads, free online classes, support and recycling. For more information, visit www.hp.com/go/nahb, or call 888-402-4465 and mention code NAHB. *All orders must be billed and shipped to a US address. Some weight restrictions apply. Save Big — at Least 60% — on Selected FedEx ShippingNow through Nov. 15, NAHB members are eligible for discounts of at least 60%* on select FedEx shipping services:
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. 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. Authorization Process for GM’s $500 Offer Just Got EasierThe authorization process for NAHB members 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 —just got easier. Members who want to purchase or lease a new 2008, 2009 or 2010 model year Chevrolet, Buick, Pontiac, GMC or Cadillac passenger car and light-duty truck, van or SUV can simply go to the NAHB Web site to for the authorization information needed to participate in GM’s $500 exclusive offer The GM offer can be combined with most retail national and regional incentives in effect at the time of delivery. The offer excludes Cadillac CTS-V, Chevrolet Camaro, Chevrolet Corvette ZR1 and Hummer, Saab and Saturn vehicles, and medium-duty trucks are also excluded. Quick Steps to Get Authorization
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 at NAHB, or call her at 800-368-5242 x8346. NAHB Board Meeting Set for Oct. 3 in ChicagoOFFICIAL MEETING NOTICE OF
The following schedule of events is a partial listing provided as a notice for the upcoming NAHB Fall Board of Directors Meeting to be held in Chicago on Oct. 3, 2009 and other associated NAHB meetings to be held on Sept. 30-Oct. 3, 2009. Meetings will be held at the Sheraton Chicago Hotel and Tower. The fall board program will identify the exact time and place of each scheduled meeting. Wednesday, Sept. 30
Thursday, Oct. 1
Friday, Oct. 2
Saturday, Oct. 3
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. |