Nation's Building News Online: September 21, 2009Print All Articles Text Version |
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Housing Groups Agree on Need for Appraisal ReformsAddressing an issue with critical implications for the recovery of the nation’s housing market, NAHB on Sept. 21 brought federal regulatory agencies and the major housing and financial institution stakeholder and appraisal organizations to the National Housing Center in Washington, D.C. to discuss constructive solutions to appraisal problems. Among the problems discussed at the summit was the use by some appraisers of foreclosed or other distressed properties as comparables without making proper adjustments for the run-down conditions of these homes, which appraisers often can’t see just by looking at the exterior of the property. This trend has been driving down the sales prices of homes. Summit participants also addressed some of the unintended consequences from the implementation of the Home Valuation Code of Conduct (HVCC), which was designed to keep appraisers from being unduly influenced by those with a financial stake in the transaction. Confusion over HVCC requirements, some participants said, is impeding the ability to obtain appraisals of the quality required in today’s complex marketplace. As a result of this confusion over the requirements of the HVCC, they said, builders and Realtors® have been limited in providing appraisers with important information about the local housing market. Complaints were also heard that the HVCC has encouraged the use of inexperienced appraisers, many of whom are not familiar with the local markets in which they are working. The costs of appraisals have gone up for consumers, they said, at the same time that seasoned appraisers are being paid significantly less for their work and leaving the industry. There were also complaints that the turnaround times for appraisals have been shortened to unreasonable lengths, making it impossible for the appraiser to gather information on the condition of comparable sales.
An NAHB participant suggested that Fannie Mae, Freddie Mac and the Federal Housing Administration should give serious consideration to an appraisal appeals process adopted a few years ago by the Department of Veterans Affairs under its Tidewater Initiative. This process, which has worked well for the VA, requires an appraiser to contact the lender for additional information on comparables if it appears that the appraised value of a home will come in low. Participants at the summit also discussed the need for an effective enforcement process for improper appraisals or unqualified appraisers, as well as providing some guidance that would result in more consistency among the states in how they regulate appraisals. The appraisal crisis has become so bad that a recent NAHB survey of more than 500 builders found that 25% were losing sales because appraisals were coming in below the contract sales price. This is exerting unwarranted downward pressure on home prices at a time when housing and the economy are struggling to emerge from the worst downturn in decades. Following the meeting, the leadership of NAHB, the National Association of Realtors® (NAR) and the Mortgage Bankers Association were united in calling for immediate action to address their appraisal-related concerns, including clarifications with regard to the HVCC and the establishment of “best practices” for the appraisal process. The groups also urged the regulators to adopt and enforce clear, concise regulatory guidance on the use of distressed and/or foreclosed properties that will allow appraisers to develop realistic valuations based on sales that are truly comparable. “Appraisers generally are only required to inspect the exterior of a property that is being used as a comparable because they are normally unable to enter these homes and examine their interiors,” said NAHB Chairman Joe Robson. “But all too often, properties that have been subject to foreclosure or distress sales have issues related to deferred maintenance or internal damage that an external inspection simply cannot detect. You can’t compare these properties to new homes that are in market-ready condition. NAHB believes that it’s time for appraisers to have regulatory guidelines that acknowledge such realities.” As an example of how distressed properties can mislead appraisers, NAHB Immediate Past Chairman Sandy Dunn cited an ocean-front house in Corolla, N.C., with six bedrooms and five-and-a-half baths being sold by the bank for $715,000, marked down from $1.4 million. A close inspection of the home found that it would cost $200,000 to restore it to livable condition. Before they vacated, the former owners “took everything out of the house,” Dunn said, including the door knobs. For an appraiser taking a picture, it might have looked like a good comp, until they viewed the inside. “When an appraiser uses a distressed property, they should inspect the interior or talk to a sales agent,” she said. “NAR supports the independence of appraisers and the integrity of the appraisal process,” said NAR President Charles McMillan. “An accurate appraisal is an important part of any real estate transaction, and reforming the appraisal process is critical to the nation’s housing recovery. Quality appraisals are threatened by unintended HVCC consequences and an inconsistency among the various federal regulators. As the leading advocate for housing issues, NAR calls on the federal government to establish consistent appraisal rules for FHA and the GSEs.” “Ensuring that appraisals are fair and accurate is the lynchpin of our secured lending system,” said Robert E. Story, Jr, CMB, incoming chairman of the Mortgage Bankers Association. “As a lender, it is crucial that I can count on the fact that an appraisal is correct and that the appraiser has not been subject to pressure from any interested party to the transaction. We want to work with appraisers and regulators to ensure that every appraisal results in an honest, truthful evaluation of a property’s value.” There is an urgent need for an appraisal appeals process even in Tulsa, Okla., Robson said of his hometown, one of the relatively few markets in the country where housing prices have not depreciated. On one $1.3 million home in the area, he said, two different appraisals came in 30% apart. One builder was able to sell a new home without an appraisal problem, but when he moved the same property five miles away, the appraisal came in below cost, Robson said. Builders See Encouraging Results From Meetings With LawmakersThe Home Builders Association of Connecticut is among scores of HBAs around the country reporting successful results from meetings in late August and early September with members of the U.S. Congress who were home for their summer recess. Members from the Connecticut delegation met with Reps. Joe Courtney (D), Jim Himes (D) and Chris Murphy (D) to share their concerns about problems that could deal the housing industry a setback at a time when it is just beginning to show hopeful signs of a turnaround. They shared their personal experiences regarding the difficulty of obtaining financing, even among builders with good credit and performing loans; sales lost due to faulty appraisals; and the favorable impact of the $8,000 tax credit for first-time home buyers. They received encouraging assurances from Rep. Courtney that he supports extending the tax credit for an additional year and expanding it to all qualified buyers of principal homes. The latter would be especially helpful in Connecticut’s more expensive housing markets, the builders said, where prohibitively high prices for prospective first-time home buyers have limited the impact of the current credit.
In a telephone conversation with Bill Ethier, the CEO of the association, Sen. Christopher Dodd (D) said he supported expanding the tax credit. The Connecticut builders are setting up meetings with other lawmakers in the coming weeks — including Dodd, Sen. Joseph Lieberman (R) and Reps. Rosa DeLauro (D) and John Larson (D). In a recent development, Senate Majority Leader Harry Reid (D-Nev.) on Sept. 17 endorsed legislation that would extend the home buyer tax credit for six months. Following is a sampling of responses from meetings with U.S. representatives and senators, according to feedback from builders from around the country:
Housing Suffering Relapse Confronts Bernanke Credit ConundrumThe Obama Administration is studying whether to let a first-time home buyers’ tax credit expire as scheduled at the end of November. Fed Chairman Ben Bernanke and his colleagues may continue talking this week about how to wind down purchases of mortgage-backed securities, according to Peter Hooper, chief economist at Deutsche Bank Securities Inc. in New York. The two programs have helped stabilize real-estate demand, with new-house sales rising 9.6% in July from the prior month, the most since 2005. Ending these efforts may stifle the housing rebound by depressing sales and pushing up both mortgage-backed bond yields and interest rates on home loans, even in the face of the record-low zero to 0.25% short-term rates the Fed has engineered, said economist Thomas Lawler. A weaker housing market would likely dampen the economic recovery and undercut shares of builders. “Things could get ugly,” said Lawler, an independent consultant in Leesburg, Va., who spent 22 years at Fannie Mae. “We could be facing a triple whammy at the end of the year: the expiration of the tax credit, the end of the Fed mortgage-buying program and rising foreclosures.” Residential construction and home sales led the way out of the previous seven recessions going back to 1960, according to David Berson, chief economist of PMI Group, a mortgage insurer in Walnut Creek, Calif. Real-estate sales fuel consumer spending, which historically accounts for about 70% of gross domestic product, he said. “Housing has been the sector of the economy with the largest multiplier effect,” said Berson, former chief economist at Fannie Mae. “Whether buying new homes or existing homes, people tend to fill them up with things: new furniture, new appliances, new window coverings.” (www.bloomberg.com)
Forty Percent of California’s First-Time Home Buyers Significantly Influenced by Tax CreditNearly 40% of first-time home buyers said they would not have purchased a home if the federal tax credit for first-time home buyers was not offered, according to the California Association of Realtors® “2009 First-time Home Buyers Tax Credit Survey." Nearly 70% of those surveyed said that the federal tax credit was either “very important” or “most important” in their decision to purchase a home. When ranking the importance of the tax credit, those who planned to use the credit gave it a 4.5 on a scale of one to five, with five being “most important.” That rank was tied with low home prices. In California, home prices have declined 59% from the peak to the current low in this cycle — contrasting with the national picture where the prices have declined by 28%. “While affordability has improved in California over the past two years, it is still lower than affordability nationally,” said James Liptak, president of the California Realtors®. “As a result, the tax credit is an even bigger factor in California compared with elsewhere in the country. Going forward, the credit will be even more important to the housing recovery.” (www.realestatechannel.com)
Despite National Upswing, Florida Home Builders WorriedThe road to recovery for South Florida’s housing market will be longer — and bumpier — than that of the rest of the nation. “It is clear that our situation in South Florida is very different from the national situation,” said builder Venny Torre, principal of TorreMackle Group of Coral Gables. With new home construction virtually dead in the region, TorreMackle is focusing on completing distressed residential projects. “Getting out of the problems we have will take longer here,” Torre said. “South Florida was so overbuilt. Until we sell more existing homes and sort out the troubled assets, we will be behind the national average.” If local building permit figures are any indication, future construction in South Florida will be centered on single-family homes. All but seven permits issued in the tri-county area in July were for single-family projects. Single-family homes in the region are likely being built by individual property owners with the resources to take advantage of lower-than-normal construction costs, Torre said. Major home building companies are not currently getting involved. The oversupply problem in South Florida might dampen new-home construction until late 2010, said Ashley Bosch, president of the Builders Association of South Florida and managing director of Miami-based Blok Development Group. Many more homes are expected to end up in the hands of lenders as the cost of adjustable-rate mortgages soars in the next few months, Bosch said. Home buyers who obtained adjustable-rate mortgages between 2004 and 2006 are starting to see the higher rates kick in. “What we’re expecting now is quite a few people defaulting and a greater influx of foreclosures,” he said. “When you have that much product on the plate, it is difficult to get starts and permits going. It is not a good business decision to be starting new homes right now.” (www.dailybusinessreview.com)
Good Credit Scores, Deadbeat ChoicesExperian, one of the three national credit bureaus, teamed with the consulting company Oliver Wyman to identify the characteristics and debt-management behavior of the growing number of home owners who bail out of their mortgages with none of the expected early warning signs, such as nonpayments or late payments on other personal debt. With foreclosures, delinquencies and loan losses at record levels, strategic defaults and walkaways are among the hottest subjects in residential real estate finance. Unlike in earlier, academic studies, Experian and Wyman had the ability to tap into credit files over extended periods of time to identify patterns associated with strategic defaults. Among their findings, there were 588,000 strategic defaults during 2008, more than double the total in 2007 and far beyond most industry estimates. They represented 18% of all serious delinquencies that extended for more than 60 days during the fourth quarter of last year. In contrast with most mortgage delinquencies in which borrowers are trying to save their houses, not dump them, strategic defaulters often go from perfect payment histories to no mortgage payments at all. They just suddenly stop paying. Strategic defaults are heavily concentrated in negative-equity markets, where home values zoomed during the boom and have cratered since 2006. In California last year, the total number of strategic defaults was 68 times as high as it was in 2005. In Florida, it was 46 times as high. In most parts of the country, these defaults were about nine times as high in 2008 than in 2005. Home owners with large mortgage balances generally are more likely to pull the plug than those with lower balances, and defaulters generally understand that their credit scores will be severely depressed by their decision. (www.washingtonpost.com)
Groundbreaking Way to Heat, Cool Homes, Geothermal Energy Systems Are Aided by Midwest ClimateSt. Louis’ temperate climate makes the region ideal for geothermal heating and cooling systems that drastically slash home energy costs, experts say. Among the growing number of users in the area is Gary Pedersen, a retired Bayer Corp. policy analyst, who says the utility costs at his two-year-old home in Kirkwood, Mo., are half those at his nearly identical former home in Eureka, which had a conventional forced-air system. Experts say the St. Louis region is especially geothermal friendly because its infrequent triple-digit temperature swings over a given year mean the ground temperature just a few feet below the surface is a constant 60 degrees or so. As a result, heating and cooling demands on a geothermal system are low. Yunsheng “Shawn” Xu, an associate professor of engineering at the University of Missouri, is designing a geothermal system to drop energy costs to zero in the 2,600-square-foot home he plans to start building next month on a 15-acre semirural site where he can make the best use of the sun’s effects. He said the geothermal system’s cost — roughly double that of a conventional heating and cooling system — helps push his three-bedroom home’s construction budget to about $400,000. At about $154 per square feet, the cost remains solidly in the range of custom-built homes in the St. Louis area. He plans to recoup 30% of the system’s cost through the federal tax credit that applies to geothermal systems as well as solar panels, solar water heaters, small wind energy systems and fuel cells. (www.stltoday.com)
Upgrading Bathrooms Without Taking a BathBathrooms used to be an afterthought. Before 1900, most houses didn’t even have one inside. Now, 80% of new single-family homes have two. They occupy 12% of total floor area, almost 300 square feet, according to NAHB. An NAHB study says, “when the number of bathrooms is approximately equal to the number of bedrooms, an additional half-bath adds about 10% to the home’s value, and one additional bath adds 19%.” But the study notes that bath additions are expensive, almost $50,000 for an upscale master-bath project. Its conclusion: A mid-range bathroom remodeling job is a better investment. For a national average cost of $10,500, the home owner can expect to get back at least 100% of the outlay at sale time. It’s nice to dream about space for saunas and sunken tubs, but when grand plans are tempered by a budget, the owner can often gain enough room to make a dramatic difference without gutting the space and moving all the walls. For instance, if the bath is next to a closet, expansion is simple. Or the exterior wall can always be pushed out, leaving the others alone. If a few feet are needed, a contractor can probably cantilever extra floor joists beyond the existing foundation — a bump-out addition. This saves the work and expense of building a foundation. (www.chicagotribune.com)
Ad Campaign Asks Congress to Keep Housing Upturn Going
In a full page advertisement running in inside-the-Beltway publications Roll Call, Politico and The Hill, NAHB last week stepped up its efforts to urge Congress to extend and expand the $8,000 first-time home buyer tax credit. Under the advertising campaign, launched jointly with the National Association of Realtors® and the Mortgage Bankers Association, ads will also run in CQ Weekly and the National Journal this week. The ad notes that the tax credit, which is due to expire on Nov. 30, is helping to move housing and the economy forward by increasing home sales and reducing the inventory of foreclosures that are sitting on the market and depressing prices. NAHB is urging Congress to extend the tax credit for an additional year and make it available to all buyers of a principal home, within certain income limitations. Adopting this proposal would increase new and existing home sales by 383,000 and home starts by 82,000, according to economists at NAHB. It would create more than 347,000 jobs and generate more than $16 billion in wages and $12 billion in business income, yielding $8 billion in federal taxes and $3 billion for states and localities. The cost to the federal government would be about $30 billion. According to the Internal Revenue Service, more than 1.4 million tax payers have claimed a first-time home buyer tax credit since it became available in February. That number does not include sales by existing home owners who were able to sell their home to a tax-credit buyer, which in turn enabled them to buy another home. With only 75 days left as of Sept. 17 until the current credit expires, builders have been advising prospective buyers that there still may be enough time to qualify, but time is of the essence. Click here for NAHB resources geared to helping association members and home builders associations understand and promote the tax credit — including fact sheets, Web site ads, consumer brochures and more. NAHB has also been coordinating an ongoing series of local media teleconferences around the country aimed at increasing public awareness of the need for Congress to move quickly on stimulating housing and the nation’s economy. To learn how they can participate in the “Revive Housing, Restore America” campaign, NAHB members should visit www.nahb.org/ReviveHousingNow. Members of the general public can go to www.ReviveHousingNow.com to find information on how to contact their lawmakers and ask them to extend the tax credit. Baucus Unveils Long-Awaited Health PlanSenate Finance Committee Chairman Max Baucus (D-Mont.) on Sept. 16 introduced his much-anticipated health care reform plan that would require nearly all Americans to carry health insurance and prohibit insurance companies from discriminating against people based on their health status or denying coverage because of preexisting conditions. The plan would also establish consumer-owned insurance cooperatives in lieu of a government-run “public option” to compete with private insurers, with the goal of lowering costs and improving quality. Under the Baucus plan, new Web-based insurance exchanges would be established to allow consumers to shop for and compare insurance plans. The package would also expand Medicaid and place caps on patients' annual health care costs. It would be paid for with $349 billion in new taxes and fees and $507 billion in cuts to government health programs.
As President Obama pushes for legislation to overhaul the health care system, details are still being negotiated in Congress. Any final health care bill would have to meld proposals from those that have emerged from various House and Senate committees. To view a comparison of the health care bills taking shape in the House and Senate, click here. For more information, e-mail Jenna Hamilton at NAHB, or call her at 800-368-5242 x8407. Senate Passes HUD Appropriations BillThe Senate last week completed consideration of its fiscal 2010 Transportation and Housing and Urban Development (HUD) Appropriations bill, approving the measure by a vote of 73 to 25. The House passed its version of the legislation in July. With the new fiscal year beginning on Oct. 1, it remains unlikely that the House and Senate will be able to reconcile and complete consideration of a conference report prior to the annual deadline; however, lawmakers remain optimistic that the HUD bill will be signed into law by mid- to late-October, avoiding a lengthy continuing resolution for these two federal departments. Of interest to NAHB members are funding levels for some key federal programs, including:
House Approves Two Important Housing BillsThe House last week passed two NAHB-supported housing bills by voice vote, sending them to the Senate for further debate and consideration. The first bill, H.R. 3146, the 21st Century FHA Housing Act of 2009, would help to modernize the Federal Housing Administration (FHA) by providing much-needed resources to improve its ability to insure safe and affordable mortgage products for millions of Americans. With FHA’s market share increasing dramatically in the last two years, the infrastructure has not kept up. H.R. 3146 would provide the authority and funding needed for the FHA to hire qualified staff and to upgrade decades-old technology systems in addition to providing a number of legislative tweaks to allow the agency to make its mortgage insurance programs fully operational. The second bill, H.R. 3527, the FHA Multifamily Loan Limit Adjustment Act of 2009, would allow the HUD secretary to increase the mortgage loan limits for elevator buildings by up to 50% of the amounts specified for non-elevator units. The bill would also give the HUD secretary the authority to designate other “extremely high cost areas” in addition to Alaska, Hawaii, Guam and the Virgin Islands. In short, H.R. 3527 addresses the fact that current FHA multifamily loan limits are severely restricting the ability to use FHA insurance programs to finance rental housing in many urban areas. NAHB will continue to support these two important housing bills as they make their way through the legislative process in the coming months. To view the legislation, click here and type the bill number in the box in the upper center of the screen. For additional information, e-mail Scott Meyer at NAHB, or call him at 800-368-5242 x8144. Single-Family Starts Fall as Tax Credit Deadline LoomsProduction of new single-family homes slowed in August as the expiration date for an important buyer incentive drew nearer, according to figures released by the U.S. Commerce Department on Sept. 17. While overall housing starts rose 1.5% to a seasonally adjusted annual rate of 598,000 units for the month, single-family starts declined 3% to a rate of 479,000 units, ending what had been a five-month run of improvements. "With the $8,000 first-time home buyer tax credit set to expire at the end of November, the window is now basically closed for being able to start a new home that can be completed in time for purchasers to take advantage of that," said NAHB Chairman Joe Robson. “Builders are therefore pulling back on new construction at this time. Clearly Congress must act now to extend the tax credit if we are to keep the market moving toward a recovery." "The tax credit has been helping buoy demand for new homes since its passage in February, but builders are concerned about what happens after it is gone," said NAHB Chief Economist David Crowe. "On top of the credit's impending expiration, builders continue to grapple with a severe lack of credit for housing production loans and inappropriately low appraisals that are tied to the use of distressed properties as comps — both of which blunted the tax credit's positive effect,” Crowe said. “Together, these three challenges threaten to completely stifle the upward momentum we've seen in the first half of 2009." NAHB is calling on Congress to extend the first-time home buyer tax credit for another year and to offer it to all income-eligible buyers of primary residences. In addition, NAHB is urging Congress to help eliminate the credit crunch, correct faulty appraisal practices and expand Net Operating Loss tax provisions that can help avoid more layoffs. A 3% decline in single-family housing starts for August essentially erased the previous month's gain, bringing production back to a 479,000-unit annual rate. Single-family permits also edged downward in August, by two-tenths of a percent to a seasonally adjusted annual rate of 462,000 units, ending what had been a four-month run of gains. Meanwhile, multifamily housing starts, which tend to display greater volatility on a month-to-month basis, rose 25.3% from an extremely low level in the previous month, to a seasonally adjusted annual rate of 119,000. Multifamily permit issuance rose 16% from an all-time low in July, to a 117,000-unit rate. Regionally, combined single-family and multifamily housing starts were mixed, with gains of 23.8% and 0.9% in the Northeast and Midwest, respectively, a 2.4% decline in the South and no change in the West. Regional combined permits were also mixed, with gains of 14.3% and 7.2% in the Northeast and South, respectively, and declines of 5.7% and 5.6% in the Midwest and West. Tax Credit Web Site Looks at Opportunity of a Lifetime Builders and other industry professionals can help spur home sales by referring prospective first-time home buyers to www.federalhousingtaxcredit.com. The NAHB Web site provides detailed information on the $8,000 federal tax credit for first-time home buyers included in the economic stimulus legislation signed into law by President Obama. Consumers can use the Web site to find information on the tax credit — including a detailed question and answer section. It also includes information about other housing-related and small business measures in the legislation and a number of home-buying resources for consumers. Spanish Version Also Available Online A Spanish version of this increasingly popular Web site is also available to provide detailed information on the tax credit to Spanish-speaking first-time home buyers. Industry professionals are encouraged to highlight either tax credit Web site when marketing to their potential first-time home buyer market. Want to Know the Housing Starts Through 2017? Find out in HousingEconomics.com's Long-Term Forecast. Subscribe and get downloadable Excel tables that feature the housing starts forecast, gross domestic product (GDP), demographics and more. To learn more, visit www.housingeconomics.com. Plan to Attend Construction Forecast Conference Plan to attend or watch the 2009 Fall NAHB Construction Forecast Conference & Webcast on Oct. 21 in Washington, D.C. to get the latest facts, insights and analysis of the housing industry. Panels of nationally recognized experts at the day-long conference will discuss economic trends, government policies, developments in the housing industry and the results from NAHB's recent surveys. For more information and to register, visit www.nahb.org/cfc. Builder Confidence Rises for the Third Straight MonthBuilder confidence in the market for newly built, single-family homes edged higher for a third consecutive month in September, reaching a level of 19, the highest since May of 2008, according to the latest NAHB/Wells Fargo Housing Market Index (HMI). "Builders are seeing some improvement in buyer demand as a result of the first-time home buyer tax credit, and low mortgage rates and strong housing affordability have also helped to revive some optimism," noted NAHB Chairman Joe Robson. "However, the window is now basically closed for being able to start a new home that can be completed in time for buyers to take advantage of the tax credit before it expires at the end of November, and builders are concerned about what will keep the market moving once the credit is gone,” Robson said. “Congress needs to act now to keep the credit from expiring just as its intended effect on buyer demand is starting to materialize." "The report for this month indicates that builders are starting to see some glimmers of light at the end of the tunnel in terms of improving sales activity," said NAHB Chief Economist David Crowe. “However, the fact that the HMI component gauging sales expectations for the next six months slipped backward this month is a sign of their awareness that this is a very fragile recovery period and several major hurdles remain that could stifle the positive momentum,” Crowe said. “Those hurdles include the impending expiration of the $8,000 tax credit as well as the critical lack of credit for housing production loans and continuing problems with low appraisals that are sinking one quarter of all new-home sales. These concerns need to be addressed if we are to embark on a sustained housing recovery that will help bolster economic growth." Derived from a monthly survey that NAHB has been conducting for more than 20 years, the HMI gauges builder perceptions of current single-family home sales, sales expectations for the next six months and the traffic of prospective buyers. Any number over 50 indicates that more builders view sales conditions as good than poor. Two out of three of the HMI's component indexes recorded gains in September. The index gauging current sales conditions rose two points, to 18, and the index gauging traffic of prospective buyers rose one point, to 17. Sales expectations for the next six months, meanwhile, declined one point, to 29. All four regions posted gains in their HMI readings for September. The biggest improvement was registered in the Midwest, where a three-point gain lifted its HMI to 19, the highest level since July of 2007. Two-point gains brought the index to 24 and 19 in the Northeast and South, respectively, and the West reached 18 after gaining one point. Tax Credit Web Site Looks at Opportunity of a Lifetime Builders and other industry professionals can help spur home sales by referring prospective first-time home buyers to www.federalhousingtaxcredit.com. The NAHB Web site provides detailed information on the $8,000 federal tax credit for first-time home buyers included in the economic stimulus legislation signed into law by President Obama. Consumers can use the Web site to find information on the tax credit — including a detailed question and answer section. It also includes information about other housing-related and small business measures in the legislation and a number of home-buying resources for consumers. Spanish Version Also Available Online A Spanish version of this increasingly popular Web site is also available to provide detailed information on the tax credit to Spanish-speaking first-time home buyers. Industry professionals are encouraged to highlight either tax credit Web site when marketing to their potential first-time home buyer market. Want to Know the Housing Starts Through 2017? Find out in HousingEconomics.com's Long-Term Forecast. Subscribe and get downloadable Excel tables that feature the housing starts forecast, gross domestic product (GDP), demographics and more. To learn more, visit www.housingeconomics.com. Plan to Attend Construction Forecast Conference Plan to attend or watch the 2009 Fall NAHB Construction Forecast Conference & Webcast on Oct. 21 in Washington, D.C. to get the latest facts, insights and analysis of the housing industry. Panels of nationally recognized experts at the day-long conference will discuss economic trends, government policies, developments in the housing industry and the results from NAHB's recent surveys. For more information and to register, visit www.nahb.org/cfc. Eye on the Economy: The Financial Markets Still Need Time to HealThe financial markets have come a long way since their near collapse a year ago. Some components are functioning close to normal while others need more time and a healthier economy to heal. The permanent mortgage market is functioning, thanks to the federal government, but underwriting standards are tighter and fewer households can qualify for a mortgage. Financial institutions are still failing. The vicious cycle of foreclosures continues to threaten stability in home prices. Acquisition, development and construction (AD&C) loans remain out of reach for most builders. The measures the government has taken that have brought us to this point have caused concerns of their own that may last even longer. Market Distress Peaked in October 2008 One way of measuring the distress in financial market is to look at the spread or difference in interest rates between the three-month LIBOR — a market rate determined by borrowing and lending between large banks in London that is used as an index for short-term commercial loans — and the three-month Treasury bill. In normal times, that spread hovers somewhere in the neighborhood of a half-percent. During times of distress, the spread widens. For example, during the 1990-1991 recession the monthly average spread peaked at 1.3% in November 1990. In the current recession, the monthly average spread peaked at 3.37% in October 2008. On a daily basis, that spread peaked on Oct. 10, 2008 at an astounding 4.57%. Clearly, the problems in the subprime mortgage market had spread to virtually every nook and cranny of the financial markets. The Feds to the Rescue Facing the prospect of a financial market collapse, the Federal Reserve and the Treasury Department worked feverishly to provide liquidity to the financial markets in order to prop up those entities that needed rescuing and to reassure the public. The Federal Reserve has been purchasing mortgages and mortgage-backed securities since January 2009. To date, Fed purchases have totaled $836 billion, and it may end up purchasing as much as $1.25 trillion in mortgages and securities. Although that volume of purchases may have replaced other purchasers, it has kept prime mortgage rates below 5.5% since November 2008. While the Federal Reserve originally indicated that purchases would last through the end of 2009, that decision is open to change and we expect the Fed to stretch its purchases beyond the first of the year. One frequently raised concern is that the large amount of liquidity the Federal Reserve has pumped into the financial system — and is still in the system — greatly increases the risk of future inflation. However, this line of reasoning ignores the significant reduction in lending that occurred in the financial system during the past two years. If the Fed had not partially offset this deleveraging by adding liquidity to the system, the economy would have fallen into an even deeper recession, almost certainly producing significant deflation. However, the Fed’s liquidity injection did not lead to increased borrowing because most of it only partially replaced existing borrowing. Further, because there has been no new net borrowing, the Fed’s action did not spur an increase in spending. In fact, spending fell, producing our current recession. The added liquidity did keep spending from declining further than it did, preventing an even sharper drop in economic growth than we have experienced. As long as there is significant slack in the economy, there is little danger from inflationary forces. As of August, inflation as measured by the Consumer Price Index (CPI) fell 1.5% on a year-over-year basis while core inflation (the CPI excluding volatile food and energy prices) rose a modest 1.4% — the smallest increase for that measure in more than five years. Certainly as the financial markets continue to improve and lending eventually moves towards some form of normalcy, there will be a need to withdraw some of the liquidity the Fed injected into the market. To some extent this is already happening naturally as the emergency loans that provided liquidity to the market are being re-paid. At this point, the danger is greater that the Fed, in reaction to this type of criticism, will withdraw too much liquidity too fast, pushing the economy into another downward slide. That is exactly what happened during the 1930s when the economy began to revive and fears of inflation — in the midst of massive deflation nonetheless — led the Fed into serious monetary error. This is not a mistake that Federal Reserve Chairman Ben Bernanke and members of the Federal Reserve Board are likely to make. It may well take the financial markets several years to return to what many will consider normal. Along the way, there will be ample time for the Federal Reserve to reverse the actions it has taken to add liquidity to the financial markets. Further, the Fed has numerous powerful tools — from buying and selling financial securities to determining the percentage of financial institutions’ deposits that have to be held as reserves — to reduce the amount of liquidity in the U.S. financial markets. Financing for Housing Faces Major Hurdles For about three years now, builders have faced increasing difficulty in obtaining AD&C loans. Not only have builders found it increasingly difficult to obtain these loans, but in many cases they have faced significant adverse changes to existing loans — including reductions in lines of credit, demands for increased equity for outstanding loans and, in some cases, demands for full repayment of outstanding loans. These types of increased requirements have transformed many performing loans into non-performing loans. In the Federal Reserve’s third quarter survey of senior loan officers of large regional banks conducted in July, 46% of the 54 banks responding said that over the previous three months they had tightened credit standards for commercial real estate loans, which include residential AD&C loans. That marked more than three years of continually tightening lending standards for commercial real estate loans. The one positive is that the net percentage of banks tightening these loan standards has fallen each of the last three quarters. These results were reflected in NAHB’s second quarter builders’ survey regarding AD&C lending, where 64% of builders said that credit conditions for acquisition debt were worsening, down from more than 80% reported in the last several surveys. Similarly, 63% of builders said that the availability of loans for single-family construction was worse, but that was down from the more than 70% who reported in previous surveys that availability was worse. While the percentage of builders saying availability is worse remains high, it is at least down from the peaks reported in late 2008 and early 2009. Meanwhile, the mortgage market has not fared much better. In the Fed’s July senior loan officer survey, 22% of the banks responding said that, over the previous three months, they had tightened credit standards for prime mortgage loans to consumers — while none indicated that they had loosened their requirements. For non-traditional mortgage loans (“Alt-A” loans or loans above subprime in quality, but below the standards to qualify as prime loans), nearly half of the 24 banks responding said they had tightened standards. Again, none said that they had loosened standards on those loans. If there is any positive to be garnered from the survey, it is that most of these banks are no longer tightening their mortgage lending standards. Most of the tightening still occurring appears to be minor and around the edges. Nonetheless, this survey now represents two-and-a-half years of tightening credit standards to approve mortgage loans. That is not an auspicious lending environment for potential home buyers. Is the Recession Over? A number of commentators have been arguing recently that the current recession is over or that it is rapidly drawing to an end. Even Bernanke has joined the chorus. There is definitely improvement in the economy — and even in housing. However, as we have pointed out previously, the improvement is surfacing in an extraordinarily low level of activity. Although improvement is certainly better than the alternative, it still leaves us with a long struggle ahead — and the prospect of backsliding into trouble again still exists. Some of this “improvement” is actually a slowing in the deterioration of some economic measures — a necessary step to recovery, but still painful. A prime example is the August employment report. Non-farm payroll employment fell by 216,000, the smallest decline in a year and less than a third of the January decline. Still, nearly seven million jobs have disappeared from the economy since employment peaked in December 2007. More than a million residential construction jobs have been lost since industry employment peaked in February 2006. Over the last 12 months, almost half a million of the nearly six million jobs lost overall were in residential construction. During the same 12 months, the overall unemployment rate rose from 6.1% to 9.7% and the unemployment rate in construction (both residential and non-residential) rose from 8.2% to 16.5%. The economy and housing still face many challenges. Any backsliding in the financial markets presents a threat to a recovery and the housing market. Although there has been improvement in the financial markets, obtaining a mortgage is still very difficult. Foreclosures continue to hang over several local markets, putting downward pressure on home prices. Improper use of foreclosure sales in appraisals have added to the difficulty in obtaining a mortgage and completing a home purchase. The $8,000 first-time home buyer tax credit expiring at the end of November is another possible blow to housing. To date the tax credit has helped motivate many potential first-time home buyers to enter the housing market. However, that push is already abating as the time to purchase a home and qualify for the tax credit is rapidly drawing to a close. Housing Continues to Struggle Most of the news from the housing sector of late has been good, but it must be kept in perspective. While August total housing starts of 598,000 (at a seasonally adjusted annual rate) — up 1.5% from July’s 589,000 — sound good, starts were down 30% from August 2008 and were just a third of the nation’s long-term trend needs of roughly 1.8 million starts a year. Further, the August increase was concentrated in the multifamily sector, which is notoriously volatile on a month-to-month basis. Multifamily housing starts, which were down to 95,000 in July — the second lowest multifamily starts number on record — have been bouncing around at roughly 110,000. Single-family starts, which normally account for about 80% of overall starts, fell 3.0% in August, to 479,000, down from 494,000 in the previous month. The decline undoubtedly reflects the winding down of the first-time home buyer tax credit and August represents the last month in which a home builder could hope to start construction on a house that could be completed in time for settlement by Nov. 30, the end date to qualify for the first-time home buyer tax credit. Even then, adhering to this timetable will be a stretch for most builders and buyers attempting to meet the deadline. Many of the starts may well have represented builders moving to replace their inventory of lower priced houses that had been sold under the tax credit. This view is reinforced by builders’ sentiment reflected in the September NAHB/Wells Fargo Housing Market Index (HMI), which inched up a point to 19 in August. This positive news is tempered by the fact that, although the measure has been trending up from its lows of 8 and 9 in the latter part of last year and early this year, it still remains at a very low level relative to its history. A reading of 50 is considered neutral. Of even more concern is that the two underlying indexes that drove the HMI higher were current sales relative to past sales and current traffic relative to past traffic. The one forward-looking measure, builders’ expectations for the next six months, was down. The current sales and current traffic measures were undoubtedly driven by the first-time home buyer tax credit, while sales expectations were likely driven by concern over expiration of that tax credit. NAHB Chief Economist David Crowe analyzes the economy from the point of view of the housing market every other week in the free e-newsletter, “Eye on the Economy.” The preceding is a reissue of his Sept. 18 edition. To subscribe to “Eye on the Economy,” click here. Tax Credit Web Site Looks at Opportunity of a Lifetime Builders and other industry professionals can help spur home sales by referring prospective first-time home buyers to www.federalhousingtaxcredit.com. The NAHB Web site provides detailed information on the $8,000 federal tax credit for first-time home buyers included in the economic stimulus legislation signed into law by President Obama. Consumers can use the Web site to find information on the tax credit — including a detailed question and answer section. It also includes information about other housing-related and small business measures in the legislation and a number of home-buying resources for consumers. Spanish Version Also Available Online A Spanish version of this increasingly popular Web site is also available to provide detailed information on the tax credit to Spanish-speaking first-time home buyers. Industry professionals are encouraged to highlight either tax credit Web site when marketing to their potential first-time home buyer market. Want to Know the Housing Starts Through 2017? Find out in HousingEconomics.com's Long-Term Forecast. Subscribe and get downloadable Excel tables that feature the housing starts forecast, gross domestic product (GDP), demographics and more. To learn more, visit www.housingeconomics.com. Plan to Attend Construction Forecast Conference Plan to attend or watch the 2009 Fall NAHB Construction Forecast Conference & Webcast on Oct. 21 in Washington, D.C. to get the latest facts, insights and analysis of the housing industry. Panels of nationally recognized experts at the day-long conference will discuss economic trends, government policies, developments in the housing industry and the results from NAHB's recent surveys. For more information and to register, visit www.nahb.org/cfc. Register for Fall Construction Forecast ConferenceRegister online for the 2009 Fall NAHB Construction Forecast Conference and webcast on Wednesday, Oct. 21 in Washington, D.C.,- where nationally-recognized housing and economics experts will provide answers to the most critical questions facing the industry today. Panelists at the conference will discuss key questions including:
The panels include:
To Register Online registration is available through Friday, Oct. 9. 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. Twitter Basics, Best Practices for Promoting New HomesThis is the latest in a series on social networking and marketing new homes. The elections in Iran. The death of Michael Jackson. Ashton Kutcher. The three don’t have much in common — except that much of what is known about them first came to light on Twitter, the social media outlet that has captured the imaginations of millions around the world. Twitter was used to push information out of Iran when other forms of communication were shut down by the Iranian government. When Michael Jackson died, Twitter practically broke the story, sending fans to online news sites — and slowing the Internet to a crawl. And with 3.6 million followers, Ashton Kutcher’s every inane utterance is broadcast instantly to a group that’s almost as large as the population of Los Angeles. Such is the potential, the power and the puffery of Twitter. Described as a “microblogging” service, Twitter enables users to create accounts and post 140-character updates on whatever they see fit — from what they ate for breakfast to where the next protest against an unjust regime will take place. Messages can be sent and received via the Web, through cell phone text messages or through specialized software created for smartphones and desktop use. Like Facebook and YouTube, Twitter is considered a social media site — but it has its own unique virtues. “I think the major benefit of Twitter is that the conversations are in public and anyone can choose to spread your comment, message or link whether they are connected to you or not,” said Mike Lyon, a consultant and speaker on social media and a blogger on DoYouConvert.com. “Facebook, for example, is a closed network. Only friends can comment and repost. However, on any social media site, the goals should be similar — build a community and develop relationships over time. There are short-term goals like a retweet and targeting followers, but ultimately, Twitter needs to be about building a community,” Lyon said. According to comScore, which measures and analyzes digital and online activity, worldwide Twitter usage approached 10 million users in February, a more than 700% increase from the year before. From a sales and marketing perspective, this is a massive audience that can be tapped into using a high-impact, low-cost tool. “Twitter is real-time micro communication,” said Allison Buffum, online marketing manager for SummerHill Homes, a home builder in the San Francisco Bay Area and Silicon Valley. “It enables a marketing team to share interesting articles or quick snap-shots that might not otherwise be shared.” “I've seen a trend in some other industries, such as travel, that are doing away with e-mail marketing and only sending promotions on Twitter. I don't think we're at that point yet, but it will be interesting to see how Twitter continues to change how we market,” Buffum added. Social Media and Twitter: Marketing Tools That Connect From a consumer perspective, Twitter and other social media sites like Facebook and YouTube offer opportunities to connect with friends and communicate with those who share similar interests. Marketers see Twitter as a tool to connect and communicate, too, one that can achieve the goals of their marketing campaigns — whether they involve media outreach, building Realtor® relationships, attracting home buyers or all of the above. Twitter can serve as its own method of distributing information and content, but it can also help promote activities on other social media outlets. “A company’s Twitter presence should have its own communication points, whether it simply reflects what’s on your mind or links to relevant articles,” said Buffum. “It should also feed to other social media campaigns, such as, ‘Did you hear what happened this weekend? Read our latest blog,’ or ‘Have you checked out the newest photos on our Facebook page?’” “We tweet interesting articles, but we also try to be mindful to tweet links to our blog or Facebook pages. We’re looking forward to our followers on Twitter or fans on Facebook sharing information about SummerHill with their friends. Referrals are very important in home building, and social media enhances referrals tremendously,” she said. “The biggest value that we have seen from social media is primarily through media and Realtor® relations,” said Steve Shoemaker, director of marketing for Ideal Homes in Oklahoma. Secondary to that, Shoemaker added, is connecting to current home owners followed by connecting to people in order to drive physical traffic into his company's model homes. “At the end of the day, that’s what it’s all about; I don’t care if it’s Twitter or old-school print advertising. At the end of the day, it's getting that traffic through the door that will drive the sale of homes,” Shoemaker said. As with any marketing campaign, tracking response and return on investment (ROI) is an important component of measuring effectiveness and adjusting strategy. While simply having a large number of followers doesn’t guarantee a high response, your number of followers does give a good idea of the potential audience your message is reaching through social media. With search.twitter.com, you can not only search all tweets system-wide for mentions of your brand or community, you can also create an RSS feed, a Web-based format used to transmit frequent updates, that will send you tweets that mention specific terms as they happen. This is a great way to monitor the conversation for discussions that you can participate in, or even just to find users who may be worth following. Sites such as Twendz.com offer a more robust search functionality that adds additional statistics to a simple query and can provide additional background detail on the conversation surrounding your key topics. “Tracking ROI isn’t going to be any different than tracking response from a newspaper ad,” said Jim Adams, CEO for NewHomesDirectory.com. “It’s all about how many connections you make and how many of those connections lead to business.” Getting Started — The Basics Starting a Twitter account is deceptively simple. Just visit www.twitter.com and click on the big “Get Started — Join!” button in the center of the page. You’ll be asked to offer your Twitter screen name, which you can change at any time. If you’re setting up a personal account, you may want to use your real name or part of it. For a business account, you might find it more appropriate and beneficial to use a brand name or company name in your screen handle. Once you have an account, learn the basics of Twitter-ese:
If you’d like your post to appear as part of a larger conversation, use a “hashtag” (or # symbol) to help it appear in the Twitter search for other items on that topic. To start your Twitter community, announce the new account on the Web pages and e-mail lists that serve the groups you’d like to reach — a new community’s e-mail marketing list, for example. Follow people who live in the geographic area you hope to cover — make sure that you use search.twitter.com to find Realtors® and media that serve the region you’re trying to reach. And it may seem a bit sneaky, but using the Follower list of your competition is an easy way to find people who will also be interested in your content. Believe it or not, signing up and learning the rules are the easy part; it’s what follows that requires forethought and strategy. Without a plan, any social media campaign, whether it’s conducted using Twitter, Facebook or YouTube, can only accomplish so much. “The greatest challenge is to define your objectives,” said Adams, of NewHomesDirectory.com. “What is it you want to accomplish? Start by asking yourself, ‘Who do I want to have listening to me?’ Then ask, ‘How can I entice those people to listen to me? What information would those people who I want to follow me want to hear?’ When you can clearly answer those questions, it’s easy from there.” The Year of Tweeting Dangerously While it’s best to get started with Twitter by jumping in and starting an account, it’s also important to move slowly at first until you understand the site’s unique rhythm. Follow a number of accounts and spend a day or two just reading. Don’t attempt to read every message that everyone in your follow list posts; you can never stay caught up. Twitter is more about the immediate conversation, not interactions that happened 12 hours ago. The only exceptions to that rule are “@” replies, which you should respond to whenever they happen, and direct messages. To maximize the effectiveness of Twitter, be prepared to invest time in creating the account, building a following, posting content and engaging in the conversation. This is where portable applications can be invaluable, such as TwitterBerry for BlackBerry smartphones or Tweetie for the iPhone. Monitoring your Twitter account via smartphone enables you to integrate the process into your daily life — checking tweets while you’re waiting in line at a checkout counter and posting responses in the evening during a TV commercial, for example. You can stay engaged in the conversation without having to remain shackled to the computer. Like any marketing tool, Twitter will only pay off with an investment of time and effort. As the site’s influence grows and more users participate, the potential for reaching home buyers, Realtors® and media through Twitter only increases. “What does the future hold for Twitter? Ask me in three months,” said blogger Lyon, of DoYouConvert.com. “The answer might be different. The bottom line is that it’s not going away.” Carol Ruiz is vice president of public relations for red rocket LA, a marketing and public relations firm based in Culver City, Calif., that delivers targeted and integrated communications for clients ranging from small businesses to Fortune 500 companies. Ruiz has nearly 20 years experience in real estate-related public relations. For more information, e-mail the company, call 310-841-0994, or visit www.redrocketla.com. Awards Bring Credibility, Help Generate Sales
In a year when most of us are still slugging it out for survival and are completely consumed by challenging market conditions, internal morale and overall uncertainty, a discussion about the value of awards may seem a little trivial. But with entries for the 2010 The Nationals — the National Sales and Marketing Awards, the largest and most prestigious competition for new-home sales and marketing professionals and communities, due by Oct. 28, it seemed appropriate to find out if awards help business and have an impact in the marketplace. To find out, I talked with several 2009 Nationals Gold winners. Adrienne Albert is the CEO of The Marketing Directors, Inc., a marketer and exclusive sales agent for residential property since 1980. Through her firm, Albert has been responsible for the marketing and sales of more than $29 billion in properties. She is also the first woman to be designated a Legend of Residential Marketing through the awards program. Gaining Respect, Inspiring Others
She said that displaying the awards in her office brought respect and confidence from prospective clients who had not worked with the company before. Being honored as a Legend also helped her stand out in the industry — individually and as a woman. “I always thought I flew below the radar, allowing my projects and my people to garner the accolades. To be inducted into the NSMC’s Hall of Fame as a Legend of Residential Marketing is the ultimate — a really powerful, impressive confirmation of our work and then some,” Albert said. “I have seen those who know what this award is and what it represents take me more seriously and respect my opinion more readily than before.” Before being honored with the Legend award, Albert said she never paid attention to gender issues, aside from serving as a mentor and role model to young women in residential sales and marketing. “I have tried to conduct myself as someone who everyone can admire and a woman could say, ‘I want to be like her.’ Now, perhaps, in my capacity of Legend, I can continue to inspire and forge a place for women in our industry.” Can a Marketing Strategy Be Built on Winning Awards?
About 10 years ago, a branding specialist explained to them that if they wanted to be able to say they built the best home in Denver, they would have to prove it. The best way to do that, they were told, was to win the Home of the Year award every year. “That was 1999,” Schmergel said. “Our company was one year old. We won Home of the Year that very year, and we won it seven more times over the last 10 years.” The company also won several Gold Nugget Awards and several Nationals Gold awards, including 2009’s Best Single-Family Detached Home in the $400,000-$600,000 range. “That statement from the branding guru was what helped us define our niche in this market,” Schmergel said. “Today we are sought after by developers, unlike the early years when we were chasing them.” “The awards have defined us as a builder. We own the bragging rights for creating award-winning homes. Our lenders have reason to be confident in our brand and our execution,” he said. “We have survived this brutal market because we offer something that is so non-generic, buyers seek it out.” They have reaped one other major benefit from the awards. “We have a reputation and a following of referral business that allows us to spend significantly fewer dollars in advertising,” Schmergel said. “The sense of pride and work ethic we have is reflected in the extensive display of statues and awards adorning our conference room. Consumers Have an Eye for Awards — And the Credibility They Bring
Builders choose different business strategies for different reasons. Many say they don’t care about awards or don’t see any value in them. But one thing is certain, award-winning builders are viewed differently by consumers as well as business associates. Winning awards creates distinctions in the market and provides a competitive advantage for sales people to leverage throughout the selling process, especially when the sale is product focused. That’s where superior architecture, floor plans and merchandising come in. Architect Michael Woodley, of Woodley Architectural Group based in Highlands Ranch, Colo., and winner of four 2009 Gold Nationals, says the importance of awards, especially during difficult times, should not be discounted. “Today’s buyers are confused and insecure about whom they can trust,” Woodley said. “Being named the best on a national level lends instant credibility.” “The positive impact on their potential buyers is huge,” Woodley continued. “Everybody wants recognition; builders want to say they build an award-winning home and buyers enjoy being able to boast that they just bought a home that won an award. Everyone loves being a winner, and nothing says ‘winner’ better than a bright, shiny trophy.” Award Winning Work Stands Out in Crowded, Oversaturated Market
In 2009, Miles Strategic DNA won five Gold Nationals, including one for one of my all-time favorite campaigns for 1010 Midtown, a high-rise residential tower in midtown Atlanta. We created a series of images that represent the midtown lifestyle — everything from a martini glass and shaker to a piano to a black corset — and then embedded a portion of the tower architecture into each image. The result was a strikingly elegant, sexy campaign that caused a major buzz in the market. It even garnered free advertising from magazines that wanted the ads to run in their publications because the campaign matched the stylish demographics they attracted. At the end of the day, the real value awards offer is a celebration of excellence. That’s more important than ever in an economic environment focused on cutting back, consolidating and compromise. It’s also worth noting that you can’t set out to win awards. Believe me, I’ve tried. Winning is the gravy, not the purpose. The magic occurs during the planning and execution phases. When it all comes together something remarkable happens. Enter The Nationals By Oct. 28 Enter your best in new home sales, marketing and design for the 2010 The Nationals — the National Sales and Marketing Awards, the prestigious award competition for new-home sales and marketing professionals and communities. The deadline for entries is Oct. 28. Sponsored by NAHB’s National Sales and Marketing Council, The Nationals honors the best in architectural achievement, product and community design, advertising and promotion, interior merchandising, Web site design, individual and team sales achievement and more. David Miles is president of Miles Strategic DNA, a real estate branding company based in Denver. Named as one of the 50 most influential people in the home building industry by Builder magazine in 2004 and 2006, Miles has earned numerous local, state, national and international creative awards, including 86 Gold awards and more than 400 Silver awards from The Nationals, NAHB’s annual sales and marketing awards program. He is a frequent speaker at NAHB conferences and for the Urban Land Institute, the Seaside Institute and PCBC. For more information, e-mail Miles, call him at 303-586-6709 or visit his Web site at www.milesdna.com. This article originally appeared on the NAHB Sales and Marketing Channel. 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. Free Sept. 24 Webinar Explores Alternatives to Impact FeesWith 49 states and the District of Columbia now using special district financing programs, such as tax increment finance (TIF), to finance infrastructure, NAHB’s Land Development Committee is hosting a free webinar on Sept. 24 beginning at 2:00 p.m. EDT to discuss the various tools and alternatives to impact fees available to jurisdictions. “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 the variations and potential of these tools on local projects. Panelists include Toby Rittner, of the Council of Development Finance Agencies (CDFA), a national association dedicated to the advancement of development finance concerns and interests; and Ken Powell, of Stone & Youngberg, LLC, a nationally recognized financial services firm. Michael Noonan, of Rottlund Homes and chairman of the Land Development Committee, will serve as the moderator. To Register To register for this free webinar, click here. The webinar is the fourth in a series on development issues that is being provided by the NAHB Land Development Committee. Two additional webinars are planned. Previous Webinars Available Online Previous webinars are available for review and free online. “Top Trends in Impact Fees,” "How to Get Through the Stormwater Regulatory Maze: Understanding the Alphabet Soup of BMPs, LID, TMDLs and SWPPP Processes" and "Repositioning Development Agreements and Project Financing to Address New Market Realities” are available at www.nahb.org/ldelearning. The remaining webinars — “Myths and Facts About Climate Change and Green Building” and “Workforce Housing that Works: Non-Federal Solutions to Housing Affordability” — will be scheduled soon and available at www.nahb.org/ldelearning. For more information, e-mail Jennifer Jones at NAHB, or call her at 800-368-5242 x8469. Builders’ Tip: A Jig to Make Accurate Diagonal Tile Cuts
The challenge was to cut the white tiles in half at a 45-degree angle as accurately as possible. Any error would create an installation nightmare — and plenty of wasted tiles — because any error in cutting a tile would double the damage. If, for instance, my cut was just 1/16-inch off-center, there would be a 1/8-inch difference between the sizes of the two “halves.” So, to cut the tile precisely and efficiently, I rigged the jig shown in the accompanying drawing.
— John Carroll Durham, N.C. 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. Sept. 29 Webinar: 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.
Market Multifamily Housing Using Integrated Marketing Strategies “Marketing Multifamily Housing with Integrated Marketing Strategies,” available through BuilderBooks.com, provides strategies that blend communication, marketing, promotional and environmental tools to create a highly effective multifamily marketing plan. To view or purchase this publication online, click here, or call 800-223-2665.
Oct. 22 Webinar to Explore Multifamily MarketingParticipants in the webinar, “Multifamily Marketing in Today's Complex Environment,” will learn how to increase occupancy and retain customers in apartment and condominium communities by reinvigorating accelerated and conventional marketing strategies. NAHB Multifamily is sponsoring the webinar beginning at 2:00 p.m. Thursday, on Oct. 22. The webinar is free to members of NAHB Multifamily and local NAHB Multifamily councils. The fee is $100 for other NAHB members and $125 for non-members. During the webinar, marketing professionals will:
Garry Benson, president of Garrison Partners Consulting, which provides real estate consulting services, will serve as the moderator. Attendees may receive continuing education credit for all NAHB professional designations. To Submit Questions For more information, or to submit webinar questions for the panelists, e-mail Sheronda Carr at NAHB, or call her at 800-368-5242 x8168. Webinar questions must be received by Oct. 19. To Register To register, click here. For a list of upcoming NAHB Multifamily webinars, visit www.nahb.org/mfwebseminar. Market Multifamily Housing Using Integrated Marketing Strategies “Marketing Multifamily Housing with Integrated Marketing Strategies,” available through BuilderBooks.com, provides strategies that blend communication, marketing, promotional and environmental tools to create a highly effective multifamily marketing plan. To view or purchase this publication online, click here, or call 800-223-2665. NAHB Urges EPA to Accredit More Lead-Paint Rule TrainersIn an effort to ease the challenge of obtaining the training required when a new U.S. Environmental Protection Agency rule governing the work of professional remodelers in homes where there is lead-based paint goes into effect on April 22, NAHB remodelers urged the EPA during a meeting last week to quickly increase the number of accredited trainers available and to find ways to support remodelers who are making a “good faith” effort to comply with the new regulation. There are an estimated 200,000 remodelers nationwide and, to date, the EPA has only accredited about 50 firms to provide training for its Lead: Renovation, Repair and Painting rule, which is intended to reduce childhood lead poisoning. The rule addresses all aspects of remodeling and renovation projects disturbing more than six square feet of potentially contaminated painted surfaces in homes, apartments and condominiums built prior to 1978. NAHB Remodelers representatives met last week with Steve Owens, the assistant administrator with EPA’s Office of Pollution Prevention and Toxics, to discuss the need for additional accredited trainers, flexibility when implementing the rule and the need for greater consumer awareness to discourage home owners from remodeling their homes themselves without regard to the regulation or from relying on unscrupulous contractors. Greg Miedema, CGR, GMB, CAPS, CGP, of Dakota Builders of Tucson, Ariz., and NAHB Remodelers chairman, told Owens that the NAHB Remodelers has been keeping its members informed of the progress of the EPA’s lead paint rule since the 1990s, and that working with the federation represented the agency’s best hope for successfully rolling out the new regulation. While the EPA is developing guidelines for the online training required to comply with the rule, Brindley Byrd, CAPS, CGR, of QX2 Contracting in Lansing, Mich., noted that the EPA had not certified enough training facilities in the Midwest or Northeast — where demand for training is expected to be higher because of the older housing stock in those regions — to meet the hands-on training requirements for remodelers to become certified to work under the rule. EPA to Increase Consumer Awareness Mike Nagel, CGR, CAPS, of Remodel One in Roselle, Ill., said there was a lack of consumer demand or willingness by consumers to pay for the increased costs for remodeling under the rule. He said that without an effort to educate consumers about the risks involved, many consumers might attempt to remodel their homes themselves or hire contractors who would perform work without regard to the rule. He also said remodelers were concerned that unless consumers were more aware of the rule and its implications, remodelers might not have enough customers warrant the expense of training and certification. Owens said the EPA was working with a marketing agency and the Ad Council, which provides public service announcements, to educate consumers about the dangers of lead paint and the risks of using a fly-by-night contractors or doing the work themselves. Owens also asked NAHB for advice on how to enforce the rule when unscrupulous or uncertified contractors are performing the remodeling. A Call for Flexibility and Future Rule Makings Citing confusion among remodelers because of an EPA plan to propose additional rules that might change the lead paint regulation, Bob Hanbury, CGR, of House of Hanbury in Newington, Conn., called for continued flexibility from the EPA when implementing and enforcing the rule. He also asked the EPA to provide transitional support to remodelers who are making a good-faith effort to comply with the rule. NAHB Remodelers will continue to work with the EPA on the rule’s implementation. For information about the lead-paint rule — including how to become a certified trainer or certified renovator and how to find training courses — visit www.nahb.org/leadpaint. For more information, e-mail Kelly Mack at NAHB, or call her at 800-368-5242 x8451. 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
Learn How to Run a Successful Remodeling Company “The Paper Trail: Systems and Forms for a Well-Run Remodeling Company,” available through BuilderBooks.com, shows how to use proven management systems to run a successful remodeling company. The publication includes a CD containing 160 essential forms and documents — culled from successful remodelers across the country — that you can customize to suit your business needs. To view or purchase this publication online, click here, or call 800-223-2665. '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.
New Superintendents' Course Focuses on Log Home BasicsThe Home Builders Institute (HBI), the workforce development arm of NAHB, and the Log Homes Council have developed a course to teach superintendents about the fundamentals of log home construction and provide an overview of the growing log home niche market. “The Log and Timber Home Construction Overview,” the first log home-specific course offered by HBI, will introduce superintendents new to log home construction to the market and enable them to grasp the construction intricacies needed to produce log homes. The course is offered as part of HBI’s Residential Construction Superintendent Series of training and designations courses. “Log homes hold a distinguished role in the history of residential construction,” said Jim Young, 2009 Log Homes Council president and president of PrecisionCraft Log and Timber Homes in Meridian, Idaho. “There is pent-up demand for this style of housing and that’s why the LHC and HBI partnered to created this course.” Young said that much of the growth in the log home market can be attributed to baby boomers who have a romantic attachment to log homes. “It’s a dream for many buyers,” he said. “Log and timber construction continues to evolve and now more and more people are realizing the American dream of owning a log home.” “HBI is rolling out the course through local home builders associations,” said HBI Chairman M.M. “Mike” Weiss, CAPS, CGB, CGR, GMB. “This new course educates superintendents on how log home construction differs from conventional stick building, as well as on the many opportunities that exist in this strong niche market.” The four-hour course will provide:
The safeguards the council provides its members include:
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. Consumers Reluctant to Pay More for Green FeaturesEven though prospective home buyers want the benefits of new, more efficient homes, they are unwilling to pay much of a premium for a “green” home, according to a recent survey of NAHB members. “Although we are seeing significant interest in green building, cost effectiveness is clearly a key concern among home buyers,” said NAHB Chairman Joe Robson. “Builders said that among buyers who are willing to pay more for green features, more than half — 57% — are unlikely to pay more than an additional 2%.” The August survey coincides with news that the NAHB National Green Building Program continues to grow. More than 400 homes, developments and remodeling projects have been certified by the NAHB Research Center, which administers the program and trains and accredits local project verifiers. Of those projects, 43 have been certified to the National Green Building Standard, which was approved earlier this year by the American National Standards Institute. Preferences for specific green building techniques are decidedly regional, with builders in the West reporting much more interest in water efficiency than builders in other areas. Interest in homes built with recycled materials is particularly high in the Northeast (the region where the fewest new homes are built) and low in the South (the region with the highest number of housing starts). Only 11% of builders nationwide indicated that their customers ask about environmentally friendly features, according to the survey. “Fortunately, our members are increasingly taking the initiative to educate the home-buying public about the benefits of green construction,” Robson said. Overall, energy efficiency continues to be the primary factor driving the green building movement, squaring with results from previous NAHB surveys in which home builders were asked about buyer preferences. “More and more, our members are able to convince their clients of the benefits of a home built with efficiency and sustainability in mind,” Robson said. “However, when buyers prepare to sign on the dotted line, cost-effectiveness clearly drives their decisions,” he said. “We need to make sure that our energy policies reflect that reality so that builders have the flexibility to use lot and site design, high-efficiency heating and cooling equipment and other features to achieve the desired results at the right price.” “Whenever Congress considers how to encourage more energy-efficient construction, it must keep affordability in mind — and look for ways to incentivize these changes not only in new homes, but even more importantly in the nation’s much more substantial and inefficient existing housing stock,” Robson said. For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132.
‘National Green Building Standard’ Available at BuilderBooks.com “The National Green Building Standard,” available through BuilderBooks.com, provides “green” practices that can be incorporated into multifamily and single-family new home construction, home remodeling and additions and site development. The standard covers lot design, resource, energy and water efficiency; indoor environment quality; and owner education. Currently the first and only ANSI-approved green building rating system, the National Green Building Standard is the benchmark for green homes. To view or purchase this publication online, click here.
The Future of Residential Construction Is Green The Certified Green Professional (CGP) designation teaches builders, remodelers and other industry professionals techniques for incorporating green building principles into homes using cost-effective and affordable options. Earning the CGP demonstrates to clients and peers your commitment to the best and latest in green building practices and techniques. More than 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. Affordable Home in Richmond, Va., Earns Green CertificationA new “workforce housing” home built by First Richmond Associates is the first home in the Richmond, Va., metro area to achieve certification under the National Green Building Standard. The home was also inspected by an NAHB Research Center-approved verifier and awarded Bronze certification as part of the NAHB Green Building Program. The 1,452-square-foot, $200,000 single-family-home in the Vaughan Heights subdivision met the program’s benchmarks by including the following features:
Additional information on the NAHB National Green Building Program is available at www.nahbgreen.org.
‘National Green Building Standard’ Available at BuilderBooks.com “The National Green Building Standard,” available through BuilderBooks.com, provides “green” practices that can be incorporated into multifamily and single-family new home construction, home remodeling and additions and site development. The standard covers lot design, resource, energy and water efficiency; indoor environment quality; and owner education. Currently the first and only ANSI-approved green building rating system, the National Green Building Standard is the benchmark for green homes. To view or purchase this publication online, click here.
The Future of Residential Construction Is Green The Certified Green Professional (CGP) designation teaches builders, remodelers and other industry professionals techniques for incorporating green building principles into homes using cost-effective and affordable options. Earning the CGP demonstrates to clients and peers your commitment to the best and latest in green building practices and techniques. More than 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. Connecticut Home Showcases Value of Green BuildingThe Builders Association of Eastern Connecticut is offering tours of a showcase home one Saturday each month to educate local home buyers about the benefits of green building — and the value of the National Green Building Standard. Builder and NAHB Research Center-accredited verifier Peter Fusaro was recently completing the certification paperwork for the home, which he expected would reach the ultra-green Emerald level of the standard when it finishes the National Green Building Certification process. If successful, the single-family home will be only the second project in the nation to achieve that level. Built by Certified Green Professional Jim Pepitone of Ark Ventures, the show home is located at The Homes at Greenbrier, a 14-lot subdivision in Montville that includes a 12-acre wildlife habitat refuge and that also achieved green certification under the standard, which can be used to score communities as well as new homes and remodeling projects.
To reach the Emerald level, a new home must be at least 60% more energy-efficient than a home built under the 2006 International Residential Code and achieve similarly stringent benchmarks in water and resource efficiency, indoor environmental quality, site development and home-owner education materials. The show home is extremely well insulated, with an R-60 roof, R-40 walls and an R-20 basement with two inches of foam under the slab. A dual-fuel, 18-SEER hybrid air source heat pump for heating and cooling is rated at 98% efficiency and right-sized to take into account the home’s insulation and low-E, Krypton-gas-filled, triple-glazed windows. The windows, as well as the doors and appliances, are Energy Star-rated. The tankless water heater is located next to the kitchen in the powder room and right below the upstairs baths so less heat is lost as the water goes through the pipes, and the recycled garage doors are filled with foam insulation.
The home is also prewired for installation of photovoltaic panels — and with a HERS rating expected to be very low, the panels are likely to make it close to a zero-energy home if they are installed, Fusaro said. Built largely with products donated by HBA associate members, the home is serving as an educational tool for builders and for buyers, Fusaro said. The HBA is planning an extensive radio campaign to draw consumers to the open house. “We need these sorts of projects so home buyers can actually see green building, not just read about it,” he said. For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-8132.
‘National Green Building Standard’ Available at BuilderBooks.com “The National Green Building Standard,” available through BuilderBooks.com, provides “green” practices that can be incorporated into multifamily and single-family new home construction, home remodeling and additions and site development. The standard covers lot design, resource, energy and water efficiency; indoor environment quality; and owner education. Currently the first and only ANSI-approved green building rating system, the National Green Building Standard is the benchmark for green homes. To view or purchase this publication online, click here.
The Future of Residential Construction Is Green The Certified Green Professional (CGP) designation teaches builders, remodelers and other industry professionals techniques for incorporating green building principles into homes using cost-effective and affordable options. Earning the CGP demonstrates to clients and peers your commitment to the best and latest in green building practices and techniques. More than 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. Education Proposals for Green Building Conference Due Oct. 1Experts 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. The deadline to submit proposals is 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. More than 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. Corps Complicates Wetlands Delineation ProcessIn a move that NAHB says is complicating the process of delineating wetlands and making more land subject to the federal permitting process, the U.S. Army Corps of Engineers has requested comments on the latest of a series of supplemental delineation manuals. NAHB last week submitted comments on the Corps’ “Draft Eastern Mountains and Piedmont Regional Supplement to the 1987 Wetland Delineation Manual” (Corps Action ID #: 2009-00993), questioning the reasoning behind some of the agency’s decisions and requesting more consistency in the methodology “to benefit both delineators and reviewers of delineations alike.” The supplement increases the number of indicators used to determine whether a piece of property contains a wetland, and “each of these new indicators provides an opportunity to qualify an area as a wetland in an instance where, prior to the creation of the new indicator, the wetland would not have qualified,” the comments said. “This change in methodology is premised on the ‘try, try again’ philosophy that seems to assert that if you ask enough questions, one of the answers will eventually be ‘yes.’ Such an approach is wrong, as it ignores basic scientific principles and blatantly pushes regulators to include more areas as wetlands,” the comments said. For example, the new delineation method says that the presence of vegetation — including loblolly pine or Japanese honeysuckle — is an indication that the land in question is a wetland; in 2004 the U.S. Fish and Wildlife Service told NAHB that certain vegetation was being used to determine the classification of wetlands “because some experts told us to,” the NAHB comments said. “This response, which indicates the level of technical review that was considered, fails to acknowledge that several of the ‘experts’ that were consulted opposed the changes [and] the Corps inappropriately is now making a back-door attempt to reach the same end point,” the comments said. “The federal wetlands program needs to be based on sound science, yet no technical basis has been provided to justify these new changes to the wetlands methodology as detailed in the new supplement. The supplement also represents a significant increase in the complexity of methods used in the delineation process. This complexity will translate to additional costs to private industry, which will ultimately be borne by the consumer,” the comments said. NAHB also asked for a copy of the peer review the Corps is arranging for the new supplement. For additional information, e-mail Glynn Rountree at NAHB, or call him at 800-368-5242 x8662. EPA Says It Is Reconsidering Its Ozone StandardsThe U.S. Environmental Protection Agency will reconsider its 2008 decision to set National Ambient Air Quality Standards (NAAQS) for ozone, according to papers filed with the U.S. District Court of Appeals in Washington, D.C. last week. It is unclear how the EPA will manage to satisfy the Clean Air Act’s NAAQS-setting process in the very short time frame it has — or whether the decision was based on new scientific information the agency has uncovered, with some analysts speculating that political considerations were involved. In May 2008, NAHB joined 15 states, industry groups and environmental advocates in a consolidated lawsuit, Mississippi vs. EPA, challenging the federal agency on the new standards. In March 2009, the EPA asked the court to postpone litigation for six months to allow the Obama Administration to review the ozone NAAQS and determine how it wanted to proceed. As it was ordered to do, on Sept. 16 the EPA notified the circuit court that it would reconsider its rulemaking. The 2008 NAAQS changed the standard to 0.075 parts per million from 0.08 ppm, which was set in the mid 1990s. The tighter standard affects 18 of the top 20 housing markets. Four of these markets are now classified as "non-attainment" areas, while the other 14 will have to create additional regulations to ensure that they meet the 0.075 ppm standard. The EPA estimates that an addition 241 counties will be in non-attainment under the new standard. Regulations in non-attainment areas might include limits on hours of construction and new requirements for building materials. NAHB, along with a number of industry groups and states, filed a petition for review that challenged the ozone NAAQS as impermissibly stringent and unfounded by sound science. In a statement, the EPA said it has concerns over whether the 2008 revisions satisfy the requirements of the Clean Air Act and indicated that it will write a new rule for notice and comment by Dec. 21 and then sign the final action by Aug. 31, 2010. NAHB Staff Counsel Amy Chai said it’s unclear why the EPA is taking this step. “If something in the science has changed from 18 months ago that they need to reconsider this decision, it would be helpful to know what that is,” she said. “The EPA, to date, hasn’t made that clear at all.” Once the EPA sets the NAAQS, it will determine whether states are in attainment with them. To satisfy the NAAQS, states found not to be in attainment must impose additional regulations on the residential construction industry and other entities to reduce their emissions. “State Implementation Plans,” or SIPs, for achieving attainment are then submitted to the EPA. “If the NAAQS is set at a level that is so low that even natural occurrences of ground-level ozone can’t meet the standard, no amount of regulation imposed on any industry will be able to satisfy the NAAQS, and industry will be unfairly burdened with the cost of trying to comply with a standard that cannot be achieved,” Chai said. “NAHB is concerned that lowering the ozone NAAQS below 0.08, much less to the 0.075 level in the current 2008 NAAQS, will do just that,” she added. For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132. Broan-NuTone Cites Efforts to Keep Jobs in U.S.Responding to the nation’s rising unemployment rate, Broan-NuTone last month noted that it is contributing to efforts to increase jobs and strengthen the economy by concentrating the majority of its ventilation fan manufacturing in the U.S. The company says that more than 80% of its products are designed, engineered and manufactured in this country from parts made in the U.S. and abroad. In addition, Broan-NuTone says that the carbon footprint required to make products available to home owners is less than many of its competitors coming from overseas. Energy Star-qualified fans from Broan and NuTone use less than 10 kilowatt hours annually — or about one dollar per year in electricity. With three facilities in Ohio, Wisconsin and Texas and 969 associates in the U.S., Broan-NuTone employees take pride in their jobs whether they are on the manufacturing line or behind a desk, the company says. “I’m proud to be an American and a Broan-NuTone employee,” says Jerry Vincent, who works on the company’s range hood automation line. “For 40 years, I have taken great pride in doing the best job I can so we can build America’s best products.”
The manufacturer notes that many of its products satisfy ventilation requirements for the National Green Building Standard, providing confidence among builders and home owners that installing a Broan-NuTone fan is a smart step toward creating a healthy home. Broan-NuTone calculates that 80% of the homes in the U.S. have a Broan or NuTone fan and more than 150 million of its fans have been installed all across America. Headquartered in Hartford, Wis., Broan-NuTone 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. Submissions for Lee S. Evans Scholarships Due Oct. 30
The scholarships award graduates and undergraduates pursuing degrees in residential construction management in two- and four-year colleges and universities up to $5,000 each year. High school students are not eligible. “Lee and Virginia Evans started this scholarship to provide the most outstanding students studying construction management with industry recognition for their hard work and academic achievements,” said Bruno Pasquinelli, chair of the Lee Evans scholarship committee. “This scholarship has come to mean so much to the recipients, many of whom would not be able to pursue their educations without such financial assistance.” Sixteen students were awarded $58,000 in scholarships for the 2009 academic year. Since the Lee Evans scholarship fund was founded in 1993, 170 students have been awarded more than $475,000. The Lee Evans scholarship recipients for the 2010-2011 academic year will be announced in January at the 2010 International Builders' Show in Las Vegas. The National Housing Endowment, the philanthropic arm of NAHB, administers 10 scholarship programs and annually awards more than $350,000 to students pursuing careers in residential construction and related fields. For more information and to download scholarship applications, 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. 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 receive 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 Now Much 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
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. 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. FTD Offers 15% Discount to NAHB MembersNAHB members can get a 15% discount on all flowers, gifts and gift baskets from FTD, the world’s oldest and one of the best known brands in the floral business. Members can choose from gorgeous red roses, Vera Wang exclusive floral designs, spa sets, chocolates, wine baskets and more. They can also take advantage of FTD’s “Good as Gold” seven-day satisfaction guarantee of receiving beautiful, floral arrangements and plants that are guaranteed to last at least seven days. Plus, FTD's same-day delivery and guaranteed satisfaction are also available with "Say It Your Way" bouquets that are delivered with your own personal audio greeting. With 15,000 retail florists and 45,000 international affiliates, FTD can provide same-day floral service to nearly 100% of the U.S. population. FTD owned and operated U.S. call centers also offer 24/7 availability, including all major holidays. To use the NAHB Member Advantage 15% discount, visit www.ftd.com/nahb, or call 800-SEND-FTD (800-736-3383) and mention code 17421. Other Member Advantage Discounts For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to www.nahb.org/MA. 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. |