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Aging Boomers Want More Modest Homes and Easy LivingThe current housing downturn has taken some steam out of housing demand from the 55+ population, but a “55+ Housing: Builders, Buyers and Beyond” survey conducted in February by NAHB and the MetLife Mature Market Institute identifies significant opportunities in this market for both builders and remodelers at a time when a weak economy has forced households across the age spectrum to reassess how much housing they can afford. The research was conducted largely to determine how well builders were meeting the preferences of this age demographic, and the results found that the industry was largely on the same wavelength as its potential customers. The 1,500 consumers participating in the survey showed a strong preference for single-family detached homes in a suburban setting. Despite recent housing price declines, members of this group have retained considerable amounts of equity or other financial assets, giving them the wherewithal to purchase the relatively modest-sized homes that are shaping up as the mainstay of this market. Low-maintenance and the availability of various services emerged as key concerns for 55+ households, and unlike their counterparts from just a few years ago, these consumers exhibited a strong desire for technology-driven amenities, particularly high-speed Internet access. Compared with survey responses from 254 builders who specialize in the 55+ market, consumers were not as aware of many universal housing features as they should be. And like the general population, they started losing some of their enthusiasm for green building principles when it came time to start paying for products that are priced at a premium. Builders, the survey found, will have to lead and educate 55+ prospects in both of these areas. At a Sept. 23 “55+ Housing by the Numbers — Part II” webinar focusing on the newly released survey findings, NAHB Chief Economist David Crowe noted that the market has gained some ground since the polling was conducted early this year, when consumers were watching their savings dwindle and builders were seeing sales grinding to a halt. “But the study does reflect the very latest in the changing perceptions of what is most important in housing for this age cohort,” Crowe said. A ‘McMansion Revolt’ From a builder’s perspective, a viable 55+ market is taking shape, according to Steve Bomberger, president of Benchmark Builders in Wilmington, Del. “We are seeing purchasers looking for smaller or more modestly sized homes than in the past,” Bomberger said. Previously, it was common for the husband to come into the sales office and complain that the homes were too small. “We don’t hear that anymore,” he said. “Most 55+ households are not looking for the grandiose styles of the past; there is a McMansion revolt in the 55+ market.” Survey results confirmed that most 55+ consumers are not interested in buying a larger home. Although preferences for size tend to increase with household income, the current home of those surveyed measures a median 1,886 square feet, close to their preferred median home size of 1,903 square feet. However, Bomberger observed that it will be “a little tough” to include everything these buyers want in this sized home. More than half (51%) of the respondents preferred three bedrooms, and another 18% four bedrooms or more. They also wanted two baths and a two-car garage. Bomberger said that his customers “are spending less on luxury.” They typically are looking at ceiling fans, sun room additions and finished basements — “an opportunity to get more space for the buck,” he said. “It’s all about technology,” he added. “Today’s buyers are techno-charged,” and they are asking for computer niches, structured wiring, multiple television jacks, mounted flat TV screens, programmable thermostats and advanced security systems that include smoke detectors and fire alarms. “They are not afraid of gadgets that have a lot of buttons and a lot of lights,” he said. “Today’s buyer is computer savvy, a big change from 10 years ago.” Prospective buyers have at least some knowledge of universal design, Bomberger noted, and he said he focuses on applying these features to the overwhelming desire in this age group for single-level living. A single-family home was preferred by 79% of the consumer respondents, and of the 15% who indicated a desire for two stories, about three-quarters said they wanted the master bedroom to be located on the first floor. Bomberger said he tries to minimize steps at the entryways into the home, although that is not easily accomplished with most garages. As many roll-ups as possible are used for slab-on-grade construction, “and we do our best to minimize steps” into garages and basements, he said. However, he advised, “don’t put it in their face to remind them of future disabilities they may have.” For example, too many grab bars, which can be installed later as they are needed, can be a definite turnoff to these buyers. “Having everything taken care of is the most important thing” in the minds of these buyers, Bomberger said. They don’t want to have to worry about raking the leaves, shoveling the sidewalks or cutting the grass. He said that it is important for the builder to know what services their buyers are looking for and then determine what they can and cannot deliver. “We have a high preponderance who would like in-home maintenance and remodeling. This is not our expertise, so we try to refer them to a contractor.” In a look at services and amenities, the survey found that twice as many consumers want transportation services and minor or major home repairs as those who currently have them; three times as many want van service and partial housekeeping and four times as many want home-delivered meals and personal care services. The survey reported that builders, in choosing a site, focus on proximity to a shopping center (70%), walking/jogging trails (58%), a hospital or doctor’s office (55%) and churches (53%). In the meantime, 55+ consumers said they considered the following home features as most important: a kitchen open to the family room (73%), a washer and dryer (rated 4.5 on a five-point scale), ample storage space (4.3 out of 5), windows that open easily (4.2 out of 5) and easy-to-use climate controls (4.2 out of 5). Survey research has found that 90% of 55+ home buyers are moving either within the same general area or from a different part of the same state. And their primary reason for making the move, cited by 63%, is to be able to realize a maintenance-free lifestyle. Forty-six percent said their motivation for moving was to be closer to family or friends, and 32% said they were attempting to lower their living costs. Hunkering Down for Tough Economic Times As virtually every segment of the nation’s housing industry, 55+ housing has seen demand significantly dampened by the current housinig downturn. 55+ households have been stymied in their ability to sell their existing homes by a lack of available buyers. There has also been reluctance to sell at the rock-bottom prices it can take to be competitive in the current marketplace. A sharp decline in 401(k) and other investment retirement plans last fall was further discouraging news for these prospective home buyers.
Sixty-three percent of the 55+ consumers who were surveyed by NAHB and MetLife said they were planning to age in place in their current home and 26% weren’t sure, leaving roughly 12% who said that they would be purchasing another home. Of those who indicated that they would be eventually moving, 8% said they planned to buy a home within three years and another 4% said they would start looking after three years. About 56% of 55+ households currently live in communities where there is no predominant age group, the consumer survey found. Only 9% of the respondents live in an active adult, age-restricted community; 7% live in a community where there are no age restrictions but most buyers are 55+; and 28% reside in an independent living community. The data indicated, however, that many in the 55+ age group would consider other options. Twenty-two percent of the respondents said they would consider moving to an age-restricted active adult community and 27% would consider a community where 55+ households predominate with no age restrictions. Another 28% would consider moving to an independent living community. Survey responses found that there is some discrepancy between the cost of the 55+ product being built and the amount that the market will bear. Consumers said they were willing to pay just under a median $190,000 for their home, but builders reported they were producing homes with a median value of $287,000. Unsurprisingly, not too many 55+ buyers appear to be in the mood for climbing further up the housing ladder. Forty-six percent of the builders surveyed said their customers were purchasing homes at the same value as those they were selling and 31% said they were buying less expensive homes than they formerly owned. Preferences for financing were similarly conservative in this group. A 30-year fixed-rate mortgage was preferred by 41% and a 15-year fixed was the choice of 38%. Five percent indicated interest in a reverse mortgage. However, 55+ home buyers are largely prepared to plow some of their wealth into their home purchase to scale down mortgage debt. Twenty-three percent said they would pay for their home in cash and 60% responded that they would make a high downpayment of 30% or more. Sixty-nine percent identified equity from their current home as the source of their downpayment; 28% said it would be drawn from investments. Forty-one percent of the builders reported using price discounts last year as incentives to promote 55+ housing sales, 35% offered upgrade packages and 22% kicked in a free option, such as a third bedroom. However, 41% offered no special inducements at all. Leading the Way on Universal Design Survey findings indicated that builders will have to lead the way on universal design and green building, according to John Migliaccio, director of research for the MetLife Mature Market Institute, although 55+ households can be expected to become progressively more familiar with these concepts.
“Builders do get the message about the importance of universal design,” Migliaccio told the webinar audience, and they are already providing the basic universal amenities, including: lever-handle doorknobs (80%), wider doorways (77%), wider hallways (72%) and separate showers and baths (65%). But consumers clearly underestimate the value of these features, he said, rating them quite low compared to builders. Only 30% said they would be eager to get their hands on a lever-handle doorknob and less than half saw much purpose in wider doorways (48%), wider hallways (45%) and a separate shower and bath (48%). The universal design features rated by consumers as somewhat to very important included: bigger bathrooms (64%), a full bath on the entry level (61%), extra lighting (56%) and non-slip floors (52%). Rated low were: lower electrical switches (15%), seating in the bathroom (22%), a shower without doors (23%) and higher electrical outlets (25%). Migliaccio said that builders should keep in mind that most consumers are typically not living in a home or community designed for 55+ residents and may not have had the opportunity to experience universal design features. As they become increasingly more familiar with them, universal design features will eventually become as popular as cell phones and computers, he predicted. Going Green On the green home building front, many environmental features curried favor with the 55+ consumers surveyed, he said, including: energy-efficient appliances (79%), solar heating (63%), a water filtering system (58%) and allergen- and chemical-free building materials (42%). But 55+ respondents revealed a disconnect in their willingness to pay for green amenities. About three-fourths said they would be willing to pay for high-efficiency heating, ventilation and air conditioning equipment, low E-glass, energy-efficient appliances and sealed joints. But far fewer were interested in paying for the preservation of open space (46%), low VOC paints (37%) and alternative building materials such as oriented strand board and engineered wood (37%). Ninety-four percent of the builders reported that their buyers want more energy-efficient new homes; 55% said buyers specifically want Energy-Star rated homes. The research in “55+ Housing: Builders, Buyers and Beyond” is the second part of a series. Released in April, the first-part, “Housing for the 55+ Market: Trends and Insights on Boomers and Beyond,” includes an in-depth profile of the 55+ market based on figures from the U.S. Census Bureau’s American Housing Survey from 2001 through 2007. For further information, e-mail Ann Marie Moriarty at NAHB, or call her at 800-368-5242 x8350. Survey Shows Credit Woes Threaten Housing RecoveryNearly two-thirds of single-family home builders are reporting a severe lack of credit for housing production, threatening the fragile housing recovery before it has time to take hold, according to a new builder survey of acquisition, development and construction (AD&C) financing conducted by NAHB and released on Sept. 28. “Across the country, home builders and developers are reporting a deterioration in credit availability and intensifying pressure on borrowers with outstanding loans,” said NAHB Chairman Joe Robson. “Lenders are cutting off loans for viable new housing projects and producing unnecessary foreclosures and losses on AD&C loans,” Robson said. “With the pending expiration of the $8,000 first-time home buyer tax credit, these challenges threaten to halt any positive developments we have seen in the housing market in recent months.” In their ongoing “Revive Housing, Restore America” grassroots campaign, NAHB members are asking their members of Congress to improve housing credit conditions as one of four crucial steps to support housing as the framework for creating jobs and pulling the nation’s economy out of recession. In the latest NAHB survey of AD&C financing conditions, 63% of builders stated that the availability of credit for single-family construction loans worsened in the second quarter of 2009.
While federal banking regulators continue to maintain that they are not instructing institutions to stop making loans or to indiscriminately liquidate outstanding loans, builders responding to the survey said the top reason that lenders have given them for restricting the availability of new loans or for tightening the terms of outstanding loans is that “regulators are forcing lenders to do it.” NAHB believes that regulators and lenders should provide leeway to residential construction borrowers who have loans in good standing by providing flexibility on re-appraisals, loan modifications and perhaps forbearance on loans to give builders time to complete and sell their inventory. “There can be no meaningful economic recovery until the flow of credit is restored to housing,” said Robson. 'Revive Housing' Campaign Enters Second Month In its push to focus congressional attention on housing, NAHB is also asking for the extension of the current $8,000 first-time home buyer tax credit for an additional year when it expires at the end of November and its expansion to all buyers of a principal home with a qualifying income. Builders have urged Congress to assist in correcting problems with the appraisal process, and they have asked for expanding the tax code’s net operating loss (NOL) carryback provision for businesses. NAHB has developed some key resources to help association members communicate with their lawmakers; they are available at www.nahb.org/ReviveHousingNow. This one-stop site contains information to call or e-mail your members of Congress, talking points, banners for Web pages, print ads, op-ed letters that HBA presidents can send to their local newspapers, and more. Visit the Newly Redesigned NAHB Web Site, www.nahb.orgThe newly redesigned NAHB Web site, www.nahb.org, is now online. The Web site has a new look, is easier to navigate and search, incorporates the new NAHB logo and offers NAHB members and friends of the housing industry more industry insights, networking opportunities and information on what's currently happening in the home building industry. Some features of the new www.nahb.org include:
These additions are just the beginning of what www.nahb.org will offer; so be sure to log in now, come back often and see what's new. New information is posted daily.
Nation's Building News Will Not Be Published Oct. 5Nation's Building News will not be published on Oct. 5. Regular weekly publication will resume on Oct. 12. Lenders Hold the Keys to Housing RecoveryChristian Redfearn, an associate professor of policy and development at the University of Southern California and a faculty member at the Lusk Center for Real Estate, says that a healthy banking sector and a couple more months with no more price declines are needed to spur housing sales and home building. “Right now, banks are looking around and seeing too many vacancies, too much uncertainty about price levels. They are in no position to lend….Until lending returns to rational levels, we won’t have a robust housing market recovery.” Redfearn also notes a sharp distinction between activity at the low end of the market, where financing is available, and at the high end, where it is more difficult. “I’d argue that the pricing models used by banks to value higher-end homes are based on aggregate indexes that are comprised heavily of low-end homes.” Banks using these aggregates, he says, “may undervalue homes and provide too little credit for buyers to reach prices at which owners are willing to sell.” Redfearn says he has seen several friends get back into the market, “realizing what gains they could in their current homes and moving up in the market. These are households with solid credit, savings and good incomes. And they are using all of them to get into markets they never thought they’d be able to just two years ago.” For other households still standing on the sidelines, “the risk that they might miss an opportunity to buy a ‘dream house’ has become greater than the chance house prices could decline further,” he says. “Of course, they could, but these households aren’t speculators and won’t want or need to sell soon, nor will they for many years — when prices are certain to have risen in nominal terms. My sense is that there are lots of households like these, but in many cases, they lack enough remaining capital gains, enough savings or access to enough credit.” He says the credit markets need to improve in order to bring them back into the market. “This is particularly true of California, where so much of the stock requires a jumbo mortgage. So long as this part of the mortgage finance industry is impaired, so long as downpayment requirements are 30%, so long as spreads are high, it’s likely to be a quiet marketplace.” (www.ocregister.com)
HUD Secretary: Housing Crisis Improving, Not OverThe head of the federal agency working to stabilize the nation’s slumping housing market says more homes are being saved from foreclosure as lenders rework mortgages, but cautioned that the crisis is not over yet. U.S. Housing and Urban Development Secretary Shaun Donovan said on Sept. 21 that there are other signs of an improving housing market, such as the slowing decline in prices. He estimated that more than 500,000 homes will be saved from foreclosure this year. Donovan was testifying at a field hearing of the U.S. Senate Housing Subcommittee in northern New Jersey, where residents have been hit hard by job losses and home foreclosures. The number of New Jersey homes returned to lenders in August increased 17% to 877 from the same period a year ago. That compares to 16% at the national level, according to RealtyTrac. Inc. (www.philly.com)
Housing Market May Be Stabilizing, Lennar Chief SaysThough home builder Lennar Corp. had a rough third quarter, its executives seem to be seeing the light at the end of the tunnel for the company and for the housing market. “We’re gaining confidence that we’re getting much closer to the end of this housing-led downturn,” said Lennar Chief Executive Stuart Miller. “A combination of low prices, lower interest rates and government incentives have worked to pique the interest of primary buyers and dispel the taboo about home purchases that has deterred so many from the market.” Lennar divisions have seen an increase in traffic and general consumer confidence as the sales and pricing plunge has slowed or stabilized, Miller said. But, he said, the future is still murky. Ongoing foreclosures continue adding to inventory, mortgage rates are fluctuating and tax credit programs are potentially nearing their end. Upswings in unemployment and gas prices continue to pose downside risk. “By no means would I suggest that housing is out of the woods and recovered,” he said. “To the contrary, many headwinds remain.” (www.latimes.com)
New York Appraisals Get ShortchangedPrices have dropped by as much as 30% in the last year in New York City, but agents, mortgage brokers and even some appraisers there say they suspect that some appraisals are mistakenly low. Among the reasons they cite: First, with sales volume having dropped by nearly 50% at the beginning of the year and only recently having reached more normal levels, appraisers are often hard pressed to find the comparable sales that allow them to come up with accurate appraisals. Second, at a time when local expertise is crucial, recent changes in national lending practices have resulted in the assignment of many appraisers who are not familiar with local markets, brokers and appraisers say. Subtleties like the inherently higher value of a second full bathroom in a two-bedroom than in a one-bedroom, or the difference between addresses on Lexington Avenue and First Avenue, can be lost on someone who doesn’t know Manhattan. And without a stockpile of comparable sales for reference, “you have to really know the local market, so you can go beyond the raw sales data and use all the subjective factors you can to really tell the story about a property,” said Jonathan J. Miller, the president of Manhattan appraisal firm Miller Samuel. Dean Feldman, an executive vice president at Halstead Property, said that he recently met with an out-of-town appraiser for a two-bedroom apartment that had been combined from a studio and a one-bedroom. “This person did not understand what a combined apartment was, and he kept asking me if there were two deeds for it,” Feldman said. “I had to explain that this was a co-op and it was a legal combination. It turned out fine, but I basically had to teach him.” (www.nytimes.com)
Huff and Puff-Proof Your Home’s ExteriorAlthough NAHB says that the majority of new houses in the Midwest are still clad with brick, wood or vinyl siding, the “other” category is gaining on these favorites. Two forces are at work here, says Stephen Melman, director of economic services for NAHB. “One, home buyers want their houses to be low-maintenance,” he says. “Two, they want environmentally friendly and energy-efficient materials.” So, while brick holds its own among buyers who can afford its steep price tag, other earth-friendly choices such as fiber-cement siding increase their market share. Although it didn’t appear in NAHB statistics until 2005, fiber-cement siding had 8% of the market in the Midwest by 2008. It appeals to wood lovers because it resembled wood, but doesn’t require repainting. Made of cement, recycled fly ash and wood fiber, it is a green product and has warranties as long as 50 years. While vinyl siding is not new, it has entered a second generation, reports Melman. “Used to be, it was pretty noisy inside a vinyl house when it rained,” he recalls. “But the product improved in strength, sound-proofing and energy efficiency.” At the same time, vinyl siding manufacturers added colors to their formerly drab lines of beiges and grays. At the high end of the housing price ladder, stone still rules, at least as an accent. In NAHB’s 2007 Home of the Future report, home builders predicted that stone would be in upscale homes for the next 10 years. (www.chicagotribune.com)
Designer’s Retrofits Assist Residents in NeedAfflicted with post polio syndrome and confined to a wheelchair, North Port, Fla., resident Dan Smith had his home remodeled to make it easier for him to maneuver. Carole Ponzio, who owns Design Solutions! of Southwest Florida, designed the retrofit, which required Smith to live elsewhere for months during the process. “It’s much better,” said Smith, who lived in the home 14 years before the changes were made. “It looks more livable.” Ponzio and medical experts, notably therapists, report seeing a steady need to improve living quarters for the disabled, geriatric and multigenerational households. The NAHB Remodelors Council, Research Center and Seniors Housing Council and the American Association of Retired Persons developed the Certified Aging-in-Place Specialist national designation program. “I think it’s more to the forefront here in Charlotte County,” said Ponzio, who is CAPS-certified and serves on the Charlotte-DeSoto Building Industry Association’s board of directors. She said she started thinking about designs for home owners with limitations after visiting an acquaintance whose husband was in a wheelchair. The home’s layout made her envision ways to improve residences. “Her home was just so open and airy,” Posio said. “That made me want to look into it more.” The remodels have become special to her. “It challenges me to figure out ways to help people get around easier,” she said. “You kind of have to figure out how this particular person can use this home. Every job you go into is totally different. It’s really appealing to me. It really feels good for me to do something special.” (www.floridaweekly.com)
Letter to the Editor: Working With Your LenderDear Editor: We recently submitted an article to Nation’s Building News (“Five Deadly Sins of Financially Distressed Builders”) that was prepared for an audience facing a multitude of circumstances when trying to resolve loan problems with their lenders. There has been substantial feedback from NBN’s readers, and we would like to further clarify our thoughts. Our intent at The Algon Group clearly was to provide home builders with some constructive information at a time when the housing industry and financial system are struggling with the most challenging conditions in generations. Unfortunately, the article may have given some the impression that builders and their banks invariably will become locked into an adversarial position when they sit down to resolve credit problems. Quite the contrary, Algon believes the best outcome for lenders and builders is a fully consensual workout where both parties have realistic expectations. We commend the many banks and builders who have adopted this approach. Builders and developers should be aware that banks are under enormous pressure from regulators and others and they are providing credit subject to these new parameters. The bottom line is that builders need to know their lenders, assess their own situation thoroughly and address loan problems with a well-thought-out and documented plan. Every case is different. We apologize to anyone who was offended by our article. Obviously, resolving the current AD&C credit crisis is a major concern of the housing industry. We are interested in hearing more from all NBN readers who realize this is a serious issue in these trying times, and responses sent to me or this publication are welcome. Troy T. Taylor, President
(Letters to Nation’s Building News can be send to editor@nationsbuildingnews.com.) Builders Encourage Home Buyer Tax Credit InitiativesNAHB sent letters to the House and Senate last week thanking members for introducing legislation that would extend the $8,000 first-time home buyer tax credit, which is due to expire on Nov. 30. House Ways and Means Committee Chairman Charles Rangel (D-N.Y.) recently introduced H.R. 3590, the Service Members Home Ownership Tax Act of 2009. The legislation would extend the credit for one year for qualifying service members. Additionally, it waives the recapture requirement for service members if they are forced to sell their home within three years because of a change in duty station. In a letter supporting Rangel’s effort to ensure that the home buyer tax credit is fully available to all of the men and women in service to their country, NAHB Chief Lobbyist Joseph Stanton said “we look forward to working with you to extend the credit, so it can continue to provide a much-needed boost to the economy.” Meanwhile, Sen. Ben Cardin (D-Md.) introduced S. 1678, a bill to extend the home buyer tax credit for six months. The bipartisan measure has six co-sponsors, including Senate Majority Leader Harry Reid (D-Nev.) and Sens. Saxby Chambliss (R-Ga.), Kirsten Gillibrand (D-N.Y.), Jon Ensign (R-Nev.), Johnny Isakson (R-Ga.) and Debbie Stabenow (D-Mich.). NAHB on Sept. 22 sent a letter to Sen. Cardin stating that S. 1678 is an “important first step in ensuring that this powerful economic incentive does not lapse as the Nov. 30, 2009 expiration date approaches. However, NAHB believes that the tax credit must be extended for an additional year and made available to all purchasers of a principal residence.” The message on the tax credit conveyed the same points that NAHB is issuing as part of its “Revive Housing, Restore America” campaign, which also seeks congressional action to resolve the credit crunch, correct a faulty appraisal process and expand the tax code’s net operating loss carryback provision for businesses to help prevent further layoffs. An extension of the tax credit for a full year and an expansion to all purchasers of a principal residence would spur more than 383,000 additional home sales and help mitigate the resurgent foreclosure crisis, the NAHB letter to Cardin said. “Extending and expanding the credit would also create nearly 350,000 desperately-needed jobs during the coming year in many industries, including manufacturing, retail and real estate-related industries.” There are a number of bills pending in the House and Senate that seek to extend and enhance the home buyer tax credit and NAHB is continuing its advocacy efforts on all fronts to let Congress know that prompt action is needed to help create jobs and move housing and the economy to higher ground. For example, NAHB President and CEO Jerry Howard discussed these same points last week in interviews with CNN/Money, Congressional Quarterly and the Los Angeles Times. To view the tax credit legislation, click here and type the bill numbers in the box in the upper center screen. For more information, e-mail Greg Brown at NAHB, or call him at 800-368-5242 x8421. Participate in 'Revive Housing' Campaign 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. 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. Alternative Infrastructure Finance Spurs DevelopmentTargeted development tools such as special assessment district financing and tax increment financing can put investment in motion and transform real estate values within a community, according to two development finance experts who spoke last week during the latest in a series of webinars on infrastructure being presented by NAHB’s Land Development Department. The webinar, “Understanding Infrastructure Finance Tools That Are Successful Alternatives to Impact Fees,” was co-sponsored by NAHB and the Council of Development Finance Agencies (CDFA). “The goal of targeted financing tools is to catalyze investment and transform the real estate values of a geographic area,” said Toby Rittner, president and CEO of CDFA. Rittner noted that special assessment district financing and tax increment financing often overlap and can work in conjunction with each other as layered financing mechanisms. In a special assessment district, he said, special tax assessments can be provided to enable business, industry, commercial districts and governments to generate financing. Tax increment finance (TIF), on the other hand, captures the future tax benefits of real estate improvements to pay for the present cost of those improvements. It is used to channel investment for improvements to distressed or undeveloped areas where development would not otherwise occur.TIF is often used to address blight, promote neighborhoods, inspire transit oriented development and transform communities. “TIF generally has focused on industrial development, commercial/office development and — in some states — retail development,” Rittner said. “Mixed-use projects have become particularly popular.” Developers and property owners who use TIF must be aware of three elements critical to the success of TIF districts, he said:
Among the examples was the Farms of New Kent in New Kent County, Va., about 30 miles east of Richmond, where the developers established a special assessment district to fund roughly $85 million in public infrastructure improvements — including road, water and wastewater improvements. The development includes:
The developers used incremental tax revenues (including real property, sales, meals and amusement taxes), special retail assessment, special property tax and back-up special assessment to finance $92 million in improvements. They included public road, water and wastewater improvements; landscaping; a parking structure; sidewalks; parks and acquisition of land. The project transformed an auto-focused mall into a pedestrian-friendly retail center with open space, sidewalks and extensive landscaping. The effort helped the City of Hampton retain its largest source of tax revenues. To view the webinar, click here. Click here for a PDF of the webinar on www.nahb.org/infrastructurefinance. For more information, e-mail Thais Austin at NAHB, or call her at 800-368-5242 x8583. New-Home Sales Rise Only Marginally in AugustFollowing four months of solid gains, sales of newly built, single-family homes edged up by less than 1% in August as the window for using the first-time home buyer tax credit began to close. Sales posted a meager 0.7% gain to a seasonally adjusted, annual rate of 429,000 units for the month, according to data released by the U.S. Commerce Department on Sept. 25. "With the $8,000 home buyer tax credit set to expire at the end of November, prospects for being able to purchase a newly built home and have that transaction completed in time to take advantage of the credit dimmed considerably as of August," said NAHB Chairman Joe Robson. "Congress must take immediate action to extend the tax credit if the positive momentum in home sales is to continue so that a sustained housing and economic recovery can take hold." "One very positive aspect of the August report was the continued decline in the inventory of new homes for sale," noted NAHB Chief Economist David Crowe. "The inventory declined for a 28th consecutive month in August, to 262,000 units, bringing us down to a seven-month supply at the current sales pace,” he said. However, he said, “the fact that builders are not adding to their standing inventory indicates their concerns about what happens to buyer demand once the tax credit expires, and it is also directly tied to the extreme lack of housing production credit that continues to weigh down the industry and stifle its potential as an engine of economic growth." NAHB is calling on Congress to extend the first-time buyer tax credit for another year and to offer it to all income-eligible buyers of primary residences. NAHB is also urging Congress to help eliminate the credit crunch, correct faulty appraisal practices and expand Net Operating Loss tax provisions to help businesses avoid having to make more layoffs. On a regional basis, new-home sales were somewhat mixed in August. A 12% gain in the West was entirely responsible for the increase in the overall number. The South posted no change from the previous month and the Northeast and Midwest each recorded declines, of 16.3% and 5.8%, respectively. Register for Fall Construction Forecast Conference and WebcastRegister 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. Blogging Can Boost Visibility, Drive Visitors to Your Web SiteThis is the latest in a series on social networking and marketing new homes. Blogging is no longer just the preserve of activists, political junkies and struggling writers. In fact, many home builders today blog as part of their Web marketing in order to expand their online presence. Home builders have started blogging generally for two key reasons. First, they blog because they discovered that blogging is an excellent way to improve their corporate Web site’s organic search engine positioning. Links from a blog to a corporate Web site are considered relevant, high-quality links — the type of links to Web sites that search engines favor when ranking Web sites. So blogging will move your Web site higher up the search engine list, making it easier for prospective buyers to find you. Home builders also blog because blogging provides an additional online “street” to drive traffic to your corporate Web site — another path that leads prospective buyers to you and your homes. Search engines today tend to rank blogs high in the organic search results — even ahead of corporate Web sites. So, potential home buyers searching the Internet may find your blog before they find your Web site. If your blog is well done, interesting and professional, they will click over from your blog to your corporate site. Other great online “streets” that drive traffic to your corporate Web site are social networking tools like Facebook, LinkedIn and Twitter. But you don’t have to use them all. Instead, choose the networking tools that best fit your target audience and are intuitive to you. It’s considerably better to use one or two of the social networking sites consistently then to try to do all of them poorly. Whichever social networking sites you choose, a blog will serve you well as the hub of your social media marketing and campaigns because it will enable you and your prospects to generate fun, compelling content. You should use the other social media sites to drive traffic to your hub. There also are several other great reasons to blog, including giving prospective buyers a chance to interact with you through a different format than face-to-face meetings, phone calls and the like. In addition, the viral nature of blogging lends itself well to building your brand online. Carol Flammer, MIRM, is a managing partner at mRELEVANCE, a public relations and Internet marketing agency that builds and moderates home builder and industry blogs. mRELEVANCE created a blog for Bowen Family Homes, an Atlanta-based builder. “A well-built blog should be one of your main Web site’s top referral sources. The Bowen Family Homes blog was one of their Web site’s top five referral sources within 20 days of launch — and the content on the site continues to attract browsers who might not reach them through other avenues,” said Flammer. “Your properly built blog serves as the foundation for a successful social media strategy and plan,” she continued, adding that two of the top 10 referral sites to the Bowen Family Homes Web site are blogs — the builder’s own blog and the Atlanta-area’s most popular real estate blog, www.atlantarealestateforum.com. Factors to Consider When Getting Started Builders considering establishing — and maintaining — a blog should consider several factors before getting started. These include;
Are you confused by blogs that invite you to “subscribe in a reader” or “subscribe by e-mail”? In the blogging world, visitors subscribe to a blog to be proactively notified of a new post. If visitors don’t subscribe to the blog, the onus is on the visitor to constantly check the blog for new posts. Many blogs that enable visitors to subscribe in a reader have a bright orange icon, as pictured, denoting the blog’s RSS (Really Simple Syndication) feed address. Visitors can then bookmark the blog and visit it through their Internet browser, or they can access the blog through a “reader.” A reader is a Web site that provides and aggregates all of your blog subscriptions into one account and brings the latest postings from these blogs to your desktop. To use it, simply log onto your reader account and you’ll be able to see the latest postings on the multiple blogs you have subscribed to on your desktop. Using an Internet browser or a reader to alert you to new posts and aggregate the posts is a lot faster than going to each blog individually to see if something new has been posted. A third blog subscription option, and probably the easiest one to understand, is to subscribe to a blog via e-mail and receive an e-mail every time there is a new blog post. When you create a blog, be sure that your blog has an RSS feed and an e-mail signup form so you can build a following and keep visitors informed. Place the icon and the signup form as high as possible in your blog’s sidebar and promote the blog on your corporate Web site and in your e-mail campaigns. Track Visitors to Be Sure Your Blog Is Working? The beauty of Web marketing is that it is easily tracked and measured. If you have a free template blog, the blog platform generally has free basic-level tracking available that enables you to monitor the number of visitors, what sites refer traffic to your blog and what posts are the most popular. If you have a paid customized blog, you can install more advanced tracking like Google Analytics to give you an in-depth review of the blog’s performance. Review your reports on a monthly basis and adjust your blog as necessary. There is an art and science to blogging. The blogosphere has its own language and culture, and perhaps the best way to get started is to subscribe to several great blogs — and then read, watch and learn. The worst thing you can do is start a blog and be perceived to be out of touch with what bloggers consider to be cool and blog worthy. Once you monitor a few blogs for a while, the next step is to start posting comments on those blogs. After you get comfortable posting comments and interacting, you will be ready to start strategizing who will manage your blog, what type of blog will work best for you and what type of content you will want to blog about. Once you start, however, don’t stop. Post consistently and frequently and, above all, have some fun and don’t sell too hard. Entering the blogosphere with your own ride is sure to be an incredibly educational and worthwhile ride. Meredith Oliver, MIRM, MCSP is the president and founder of Meredith Communications, a sales training and e-marketing consulting company based in Orlando that delivers marketing services to builders and developers nationwide. For more information, e-mail Oliver, call her at 321-285-1660 or visit her Web site, www.CreatingWow.com.
Begin Planning Now So You Can Reap Business Success LaterHome builders and other industry professionals who want to be in a position to take advantage of new opportunities when the market returns need to reevaluate every aspect of their business and begin instituting new ways of conducting their business, said panelists at a recent audio seminar on how to position businesses for the next economic upswing. If business owners don’t take these steps now, said Manny Schatz, MIRM, CAASH, CGP, CMP, of Professional Builder Services in Danville, Calif., “you will revert to your old business habits when our markets come back.” “To survive and do well in the future, you will need a fresh approach to your business practices starting today,” he said. Speaking at NAHB’s National Sales and Marketing Council-sponsored seminar, “Beyond the Best Case Scenario,” on Sept. 17, Schatz, along with panelist Ross Robbins, MIRM, CMP, CSP, of Lee Evans Group and Shinn Consulting of Littleton, Colo., outlined a three-step strategic process that can help guide business owners through the planning process needed to reposition their companies. Much of the process, they told participants, had to do with changing their outlook and attitude on the current down cycle. Change Attitudes and Learn From History Robbins said that business owners trying to survive the downturn will have to accept what they cannot change before being able to move forward. Asking questions such as, “How bad will it get?” or, “When will it get better?” as well as placing blame or guessing when the turnaround will happen is wasted effort, he said. The key to finding success now is to focus on who is buying homes, now on who is not. “People still need homes, but they will probably be different from the homes we built in the last cycle,” said Robbins. “Understanding what your real buyers want and, more importantly, what they will pay for, is the most important thing you can be doing as the housing spring comes.” Being able to deliver to those buyers will depend upon how prepared your business is today, Schatz said. “You probably think we are crazy to suggest that now is the time to be looking at focusing on your business future — when you are in the midst of survival,” he said. But he stressed that business owners won’t be successful when the good times return if they don’t take the time now to prepare. One way to prepare, Robbins said, is to examine and compare patterns in housing cycles of the past. He noted that housing did bounce back after a five-year continual decline from 1978 to 1982 that cut housing starts almost in half by the time it ended, and that housing is following a similar pattern in the current downturn. While the current decline is much more drastic, Robbins reminded participants that the building industry is cyclical, and accepting that there will be some slow years ahead will help business-owners better plan for their future. Even if the market comes back quicker or slower than anticipated, he said, builders will find it much easier to adjust a plan that’s already in place instead of scrambling to react to changing circumstances. Map Out a Vision for Your Company Robbins and Schatz advised participants not to give up, let things happen or ignore the control that they don have over their businesses. Instead, they recommended that business owners should make a plan that addresses all the things that they can control, and begin with their vision and mission statement. “With a vision and clarity of purpose, you can develop a realistic plan to achieve your goals,” said Schatz. “We call the plan to achieve our vision, our mission. However, the vision must come first. You cannot plan an effective route until the destination is clear.” The first task to map out your business path is to create a vision statement. This statement should achieve the following:
“All processes should have their own procedural information listed and clearly defined,” said Schatz. “This way, everyone on your team will have a clear understanding of what they are expected to do, when and how they are expected to do their tasks and what result they are looking for upon completion. In short, they will understand how to do their job as part of your team and your organization.” Robbins also suggested that builders should make sure they recognize their most valuable assets — their employees. Showing your appreciation is important to keep your employees invested in your business, he said. By doing such things as creating and updating position descriptions and providing training, you keep your employees invested in your business. Watch for Cues, Develop Strategies and Put Your Plan in Action Robbins said most builders miss the peaks and bottoms of cycles “because we are herd animals. When the herd starts moving, it is well after the best opportunities have already passed.” To break from the herd and be in the best position to take advantage of new opportunities, he said builders should identify trends in their local markets, develop strategies and plans to take advantage of those trends and, finally, put those plans into action. He said builders should establish their own predictor trend charts — based on leading predictors — so that they can identify trends. These predictors should include:
“You wouldn’t think of building a home without a set of blueprints,” Schatz said, “so how can you consider building a company without a comparable blueprint?” The business blueprint should contain all aspects of building and maintaining a viable business, including:
They advised listeners to determine where on the trend chart their plans and strategies will fit in order to achieve maximum effectiveness. They also stressed that their listeners should, of course, adjust those plans according to circumstances. If people are not buying during a certain period, they said, you will want to use strategies and tactics that differ from what you would use when they are buying, they said. Seminar Recording Available Soon A recording of the audio seminar, “Beyond the Best Case Scenario,” will be available for purchase soon from The NAHB University of Housing. For more information and updates, visit the university’s eLearning page. 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. Rock Band, Styx, to Headline Spike Party at Buiders' Show
The Spike party, free to all eligible Spikes, will be from 7:00-10:30 p.m. on Wednesday, Jan. 20 at The Joint at the Hard Rock Hotel & Casino. Spawned in a suburban Chicago basement in the early 1970s, Styx would eventually be transformed into the virtual arena rock prototype by the early 1980s. From its breakthrough hit “Lady” to the classic rock radio standards "Come Sail Away," "Renegade," "Blue Collar Man" and "Fooling Yourself” and the concept albums “Paradise Theater” and “Kilroy Was Here,” Styx has dominated the rock landscape throughout its career and was the first band in the history of rock to release four consecutive triple-platinum albums. Since 1999, Styx — Tommy Shaw, James “JY” Young, Lawrence Gowan, Todd Sucherman and Ricky Phillips along with the occasional appearance by original bassist Chuck Panozzo — has performed live more often than it did in its previous history. Recent performances include two Super Bowl appearances as well as Pollstar Box Office chart-topping tours with Def Leppard, Journey, Boston, REO Speedwagon, Bad Company and others. To Attend Tickets for the Spike party are required and can be picked up onsite, with photo ID, at the Spike Party Booth in the Central Concourse of the Las Vegas Convention Center. Eligible Spikes must have a minimum of six credits and must have earned one new member recruitment credit between Jan. 1 and Oct. 31, 2009. The one new member recruitment credit can be a full credit for a new builder or associate member, or two 1/2 credits for new affiliate or council members. For more information, e-mail membership@nahb.com. Hard Rock Hotel Added to NAHB Hotel Block at IBS The Hard Rock Hotel and Casino is now part of the official hotel block for the International Builders’ Show. Rates for the Hard Rock start at $109 for a standard room and $159 for a suite. A limited number of rooms and suites are available at these rates. In addition, most of the discounted hotel room rates offered in August with registration to IBS are still valid. Rooms at most of the Las Vegas hotels in the NAHB convention hotel block are still available from $32 to $199 a night, with the price depending upon the hotel, for members who register for the show and their hotel. These rates are only guaranteed to attendees who register for IBS early. Room deposits for registrations made early will not be charged until December. These rates are only available online. Click here for more information. For more informationa about IBS, visit www.BuildersShow.com. Exclusive Telecommunication Agreements BannedExclusive telecommunication marketing agreements are no longer an option for multifamily housing projects and certain other housing communities. Concerned that these types of arrangements could impede competition and hurt consumers, the Federal Communications Commission (FCC) has banned the use of exclusivity clauses for the provision of video services to multiple dwelling units (MDUs) or other real estate developments. In addition, the FCC has proposed a rulemaking banning exclusive marketing agreements by cable companies and certain housing communities. Concerned about the effect of this ban on its members, the NAHB Board of Directors at its meeting during the 2008 International Builders’ Show approved a resolution opposing FCC efforts to ban bulk billing and exclusive marketing agreements and limit access contracts. In comments in February and March 2008 opposing the FCC proposed rulemaking, NAHB argued that telecommunication marketing agreements promote competition and expand access because they provide an incentive for new companies to enter a market and can offer residents specific products designed for a particular community or neighborhood. Several outside groups challenged the FCC’s rulemaking in court, claiming that the commission lacked the authority to regulate real estate issues. However, in a late May 2009 opinion, the D.C. Circuit Court of Appeals upheld the FCC’s authority. NAHB was not involved in that litigation. None of the parties appealed the court’s ruling and it became effective in Juy. As a result, multifamily builders and those building in gated communities and other real estate developments with centralized management cannot enforce any existing exclusive telecommunication marketing agreements. Going forward, no new agreements can be signed. The rule could also apply to active adult communities. It excludes time-share arrangements and probably does not apply to resorts. For more information, e-mail Felicia Watson at NAHB, or call her at 800-368-5242 x8229. New Regs Ease Up Some on Commercial Lending PracticesFinal regulations (T.D. 9463) issued by the Department of the Treasury will make it easier for lenders to restructure commercial real estate loans without triggering tax penalties. The final regulations cover certain technical requirements, including collateral guarantees. As a result, investors in Real Estate Mortgage Investment Conduits (REMICs) will not be subject to tax penalties when attempting to restructure or refinance certain real estate loans. Under the old rules, the tax benefits offered by REMICs were penalized if the loans were significantly altered. These new regulations will improve the conditions for securitization of mortgages in REMICs or at least remove certain tax obstacles as lenders and market participants seek to work out loans before they become troubled. The final regulations went into effect on Sept.16. The regulations do not apply to Real Estate Investment Trusts (REITs), although the Internal Revenue Service may expand the new rules to such investment vehicles in the future according to IRS Notice 2009-17. For more information, e-mail Rob Dietz at NAHB, or call him at 800-638-5242 x8285. Maximizing Cash Flow More Crucial Than EverMaximizing your cash flow is extremely important no matter what shape the housing industry is in. Now, however, it’s more crucial than ever. First, don’t confuse profits with cash. When times are tough, cash actually is more important than profit because, if you are to survive, you need cash to continue your operations. Toward that end, there are a number of simple ways to increase the flow of cash through your business without having to take out bank loans or borrow from relatives or friends. Let’s look at some of those options: Adjust Your Contract Payment Schedules The simplest thing that you can do is pay closer attention to the details of your contract payment schedules, assuming you have jobs in progress. Try to get larger deposits on your jobs. Twenty percent on additions should be acceptable; you might be able to get 50% or more on kitchens and 70% on window work. Many people only ask their clients for 10% down and don’t try to stay ahead of the client with a reasonable payment schedule as the job progresses. This is a mistake in any market — and can be critical to your survival in a bad market. Instead, schedule payments ahead of project costs and establish payment triggers for special orders and job progress. Use Specific Terms in Your Contract for Payments Due From now on, if you don’t already, write your contracts using terms such as “when delivered” or “when ready for” to trigger payments. You also want to avoid using terms such as “after installed” or “completed” because, while they appear to be specific enough, they really can be left open to discussion and sometimes result in arguments with clients about the completeness of some small portion of the project or a perceived defect. Avoid using “fully complete” in your contract. I can’t stress this enough. The term you should use to trigger your final payment instead should be “substantial completion” — which is loosely defined as suitable for the intended use. For example, if your client is using the kitchen but hasn’t made the final payment for your work, he would be in violation of the contract because he is using the kitchen for its intended purpose. Also, hold back three times the value your client may place on any missing or broken items and be sure to set a specific date for warranty coverage to begin. You should also front load your client payment schedule so that you are able to receive larger payments earlier in the schedule and limit the final payment to about 5% or 10% of the total invoice for smaller jobs. Your goal would be have as small a payment for “substantial completion” as possible. Too much flexibility in the payment schedule gives clients too much leverage. If they have the flexibility and run out of cash, you could find yourself too far ahead of their payments to recoup what you put into the job. Some clients will argue for more flexibility and against a front-loaded payment schedule, but it protects your business and cash flow. We rarely back down on our payments schedules, maybe changing about 5% to 10% of them. Take Advantage of Change Orders Attempt to get the costs of change orders paid “in full” at signing. If you can't, then try to secure at least 50% at signing and the balance at the next milestone. Some remodelers even charge for the time to prepare their change orders so that, if they are not acted upon, the contractor at least gets paid for the time needed to prepare those wild goose chases the client sends you on in search of that perfect look. It’s also not a bad idea to charge an administrative fee to perform a change order. Be sure to include the time lost by deviating from the job schedule and ask for the fees to cover the other subs and suppliers needed to work out a new schedule. Face it, change orders are usually not your idea, they’re disruptive to your schedule and they do take time to prepare, so change orders represent one of the few chances to recoup everything you put into preparing and completing them. This is not, and should not be considered, ripping off your client; it’s accounting for everything that happens along the way. So don’t discount your change orders. Your client can always say, “No,” and get someone else to do the work. But be sure to keep everything in proper perspective for your client. List as "No Charge" all the free things you have done for your client that were not in the contract but are still part of the job. This will show them that your change orders are not a one-way street. Use Payment Discounts From Suppliers and Other Businesses Take advantage of all discounts for payments available to you on materials, services and other business expenses. Cumulatively, these discounts will save you money. For instance, a 2% discount for a payment made by the 10th of the month is comparable to about a 72% annualized return. Restructure Your Debt Move short-term debt into long-term loans so you can pay off your debt over a longer period of time with smaller monthly payments. Strategize You Bill Payments Pay your bills at the last minute possible, but before there is an interest charge or penalty, so you have more cash on hand. Also, don’t be afraid to ask for an extension of the time to pay a bill, but if you get an extension, be sure to follow through and pay it when promised. Work With Insurers Many insurance products will allow you to borrow against any cash value in your life insurance or use your dividends to help pay for the premiums for life, disability or other forms of insurance. Many insurers also offer discounts when you use the same carrier to insure multiple types of insurance products, such as auto insurance combined with liability insurance, an umbrella or even workers compensation. Negotiate With Suppliers’ Competitors If your regular supplier has stopped working with you on a better payment plan, try to open an account at one of its competitors and negotiate a payment period of 30 days or more instead of the COD your current supplier is demanding. Shop With Coupons, Be Smart With Your Spending Shop the specials, buy in bulk and be smart with your spending. I am always looking at flyers for coupon deals on office supplies, inks, caulking, insulating foams — anything that I know I will have to buy eventually, but can get 20% or more off if I buy it now. Coupons are even available online, if you know where to look. Get the Check in Hand Don’t use the mail to receive payments, but do use it for paying your bills. Telling someone to leave you a check or that you will be by to pick one up, is much more reliable than, “The check is in the mail.” Charge More for Your Services Raise your prices. That’s right, even in a recession. If you didn’t make money during the most recent raging bull market, the one that lasted 10 years, then you obviously weren’t charging enough. You might as well practice selling your services at higher prices while your sales skills are their sharpest and your best employees are the only ones you still have on staff. Clean House Sell all your underutilized assets, tools, equipment, trucks, cars and trailers to get them off the books and tax rolls — and clean up your yard or garage. While you probably won’t get too much cash for these items, the next time you need one of them you’ll realize that you can rent it for less than the cost of use divided by your annual cost of ownership. Rent Instead of Own Lease instead of buy to lessen the downpayment and obligation to fully pay for the asset, assuming you are going to keep it.
Get Investors Sell part of the business to your employees — for cash of course — or to a silent investor who understands the potential when we come out of today's market correction. Alan Hanbury, CGR, CAPS, CGP, of House of Hanbury Builders based in Newington, Conn., provides remodeling and handyman services. A longtime leader and past chairman of the NAHB Remodelers, Hanbury is a sought-after lecturer and writer on the remodeling industry and its professionalism. For more information, e-mail Hanbury, call him at 860-666-1537 or visit www.houseofhanbury.com. 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. Systems Building Grows, New Englanders, Canadians ToldThe nation’s weak economy and the growing popularity of green home building have given a significant boost to systems-built residential construction, which is likely to gain in importance on the other side of the housing recovery that now appears to be entering its early stages, Jeremy Bertrand, executive director of the NAHB Building Systems Councils, told the 33rd Annual Conference of New England Governors and Eastern Canadian Premiers earlier this month in Saint John, New Brunswick. A graduate of the University of New Brunswick with a degree in forestry, Bertrand appeared at the conference on behalf of NAHB’s International Department. Looking at the future of the U.S. housing market, Bertrand noted that the average square footage of new homes appears to be leveling off following the steady increases of the last eight to nine years, a trend that is likely to continue into the middle of the next decade. The weakest U.S. economy since World War II and a collapse in the housing market has forced builders to reinvent themselves as a matter of survival, he said. Smaller homes for first-time buyers have accounted for the bulk of the improvement in sales in recent months, and in the period ahead consumers are expected to return to basics, scaling back the demand for more luxurious and ever bigger houses that predominated during the housing boom. Utilizing systems-built construction allows builders to construct a home more efficiently and quickly, Bertrand said, and enables them to keep tighter control on the entire process, delivering a product with many green attributes, including a reduction in construction site waste. “Home owners expect quality construction in any home they purchase,” he said. “The quality assurance common with any prefabricated structure is a sure way to get there.” On the green home building front, he added, “A growing number of experts argue that to truly go green, especially as the codes get ramped up, you must incorporate building systems into the home. Resource efficiency and durability have long been staples of systems-built construction. Using any type of system — whether it be concrete, modular, panelized or log/pre-cut — can now be directly applied to meeting the National Green Building Standard.” Bertrand also discussed opportunities within NAHB, including the International Builders’ Show, international membership within the association and the International Housing Association, of which NAHB is secretariat. The majority of NAHB’s international members are from Canada. Among speakers at the housing presentations in which Bertrand participated was Bob Tortorice of Building Aleternatives, an NAHB member from New Hampshire. The annual conference advances the interests of 11 jurisdictions in New England and Eastern Canada by providing a forum for sharing ideas, building on historic ties and collaborating with the private sector. Over the years, the conference has addressed topics that have included the environment, economic development, tourism, energy, fisheries, trade and agriculture. For more information on international resources available at NAHB, e-mail Susanna Connaughton, or call her at 800-368-5242 x8415. For information on building systems, contact Jeremy Bertrand, x8353. Go for The Nationals Gold — Entries Due Oct. 28Enter your best in new home sales, marketing and design 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. The deadline for entries is Oct. 28. Sponsored by NAHB’s National Sales and Marketing Council, The Nationals honor the best in architectural achievement, product and community design, advertising and promotion, interior merchandising, Web site design, individual and team sales achievement and more. The awards — which recognize innovation and excellence in 53 categories — are open to individual sales and marketing professionals, home builders, associates and sales and marketing councils. “With everything that has been going on in our industry right now, The Nationals are a great reminder of why we do what we do,” said Sheri Jackson, MIRM, of Fonville Morisey & Barefoot, a Raleigh, N.C.-based new home sales and marketing firm, and chair of the 2010 Nationals. “These awards celebrate the achievements of the best new home sales and marketing professionals and I am thrilled to be a part of it.” New residential projects with homes available for sale between Sept. 1, 2008 and Sept. 1, 2009, along with individual categories and local sales and marketing council categories covering the same time period, are eligible to enter. New award categories for 2010 include:
For complete entry guidelines and entry forms, visit www.thenationals.com. Winning entries will be honored at the 2010 International Builders' Show during ceremonies at Caesars Palace in Las Vegas on Jan. 19. To find out how The Nationals can boost your business, learn how some 2009 Nationals winners have used their awards to gain business and credibility to last them for years to come. For more information, e-mail Lisa Parrish, or call her at 800-658-2751. Nonresidential Construction Dips 3% in AugustThe volume of nonresidential building construction declined 3% in August to an annual rate of $163.6 billion as the effects of the residential market slump continue to impact commercial construction, according to McGraw-Hill Construction. On an unadjusted basis, total nonresidential building constructed was down 37% from January to August 2009, with the commercial construction segment down 52% year-to-date, institutional construction down 17% and manufacturing construction plummeting 74%. “The positive development is that the rate of descent has eased from the severe declines witnessed in late 2008 and early 2009,” said Robert Murray, vice president of economic affairs at McGraw-Hill Construction. In the commercial construction categories, warehouse construction declined 7% in August. Hotel construction was up 1% and retail store construction climbed 15%, though the level of activity in both categories continues to be depressed. “Nonresidential building still faces considerable constraints, such as mounting vacancies, tight bank lending standards and eroding state fiscal health,” Murray said. August declines in institutional building construction included public buildings, down 20%; churches, down 24%; and amusement-related projects, down 35%. Educational building construction was up 9% for the month. Commercial builders trying track to gauge when the industry will improve should monitor a a combination of general economic statistics — the financial market, jobs and consumer confidence — but focus primarily on local markets, said Bernie Markstein, NAHB vice president of forecasting and analysis. “It’s so localized at this point. Don’t get dragged down by all the headline economic news,” he said. “You can monitor the gross domestic product (GDP) rate, but know that it is a backward looking indicator. It tells you what happened last quarter,” he said. “Follow the local residential market and how commercial projects are getting financed. That will give you a better idea on where you’ll be in next few months. Right now, obtaining financing is critical for any project. Securing that financing has become 10 times harder than in the past, despite low interest rates.” Markstein said that while the commercial sector follows residential construction trends by one to three years, its rebound in certain areas is not solely dependent on a housing revival. In contrast to the residential market, commercial construction did not become overbuilt or involve an abundance of questionable loans — aside from retail projects. “In the really hard hit states there are other factors to look at,” said Markstein. “For example in Phoenix, even if the housing market hasn’t turned around, it’s still a good place to do business. So, if there’s a need for office space, they’ll still build offices and then house people in existing homes.” States with traditionally strong travel markets, such as Florida, may also see commercial pick up ahead of residential construction, Markstein said. 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, or click here for a comprehensive listing. Also view upcoming conferences. Case Study Examines Pluses and Minuses of OVE FramingA new publication from the NAHB Research Center — ”Advanced Framing: Its Practical Use in Residential Construction” — tells why optimum value engineered (OVE) framing has never really caught on despite its ability to cut costs and reduce energy consumption. The publication presents an unvarnished case study by the NAHB Research Center — the original developer of OVE practices — of one particular job site in which OVE practices were applied for the first time. An alternative to standard technical how-to guides, the study prioritizes OVE techniques based on how easily they can be implemented and their impact on material and energy savings. It was funded by the Department of Housing and Urban Development and the Department of Energy. For the case study, the Research Center’s Building America team tallied wood use and estimated material savings for a home built by vocational high school students in Lancaster, Pa. Student framers applied advanced framing techniques including 24-inch on center in-line framing, single top plates, header hangers, right-sized headers, ladder blocking at partition walls, and two-stud corners. Not all of the techniques were fully implemented and some were subsequently modified. For example, 1-inch nailers were added to two-stud corners to provide a nailing surface for siding and to aid the screeding process for cellulose wall insulation. All told, advanced framing resulted in material savings of 14.2% for wall framing (20.4% savings compared to standard 2x6 framing) and 8.4% for floor framing over conventional framing practices. Construction supervisor Mike Dodson said he learned a lot about advanced framing while working on building his first OVE home. Based on the experience, there are some facets of advanced framing that the school will adopt as standard practice, but others it will likely avoid. “In line framing is pretty simple, makes the design process easier and takes some of the guesswork out of the framing job, since we simply put the details on the plans,” said Dodson. On the other hand, he said he found fastening the exterior trim to the header hangers complicated and will not be using them on the next house. “There’s a lot going on there with the metal plates and the pan flashing,” he said. “They were a bit of a struggle.” Other techniques that won’t become part of the crew’s standard practice, according to Dodson, include single top plates and 2x4 framing. Single top plates, when combined with 92.5-inch pre-cut studs, created the need for trimming every piece of drywall. Using free student labor, “it’s just a time issue for us, but it would be a big cost issue on a regular job site,” says Dodson. Researchers also discovered the power of perceptions, whether well-founded or not. For example, the school installed 16-inch on center floor framing under kitchens and baths based on the advice of its tile installers, despite the availability of industry-approved guidelines for tile installation over 24-inch on center joists. Regardless of the hurdles encountered during this first green project, the builder is eager to begin its second green home, which will employ many OVE framing practices — such as in-line framing, ladder blocking and two-stud corners—and be rated according to the National Green Building Standard. To learn more about the student-built project, visit the Research Center’s technical ToolBase Services Web site. For more information about energy efficiency, zero energy homes or joining the NAHB Research Center's Building America team, contact The Research Center online or call 800-638-8556. 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. EPA Asked to Improve Storm Water Management RegulationAs the U.S. Environmental Protection Agency seeks to step up enforcement of the Clean Water Act, NAHB has provided recommendations to the agency to ensure that its increased focus on the home building industry leads to improved compliance with regulations that are consistent, clear and reasonable. “By refocusing on providing assistance” to home builders and developers trying to manage storm water discharge from construction sites, “the agency will make more headway than through enforcement alone,” the NAHB comments said. The EPA first needs to establish a baseline of how many home building sites there are and how many of them are in compliance, NAHB noted. This will make it easier to put industry compliance into perspective and to determine the effectiveness of new enforcement policies. NAHB also asked for clarification on the rules themselves — especially on the kinds of water bodies that can be regulated, and why. Ditches and storm water management facilities are not waters of the U.S., nor are wet spots that are temporarily created during the construction process, the comments said. The comments emphasized the importance of education — both for the industry and for regulators. Too often, inspectors are not familiar with the home building process, hindering their ability to logically enforce the program, NAHB said. NAHB should also be notified of enforcement actions so the association can use them to help educate members who are seeking information on how to comply. “Details on types of violations can be used to target training and education efforts,” the comments said. The EPA should also consider forming more partnerships, like one developed between the Texas Association of Builders and EPA Region 6 to focus on compliance issues in that state. As a result of this initiative, home builders worked with the federal agency as well as the Texas Commission on Environmental Quality to provide a series of well-attended compliance classes for builders and developers, the comments noted. Improving the administration of the program would also help compliance efforts, according to NAHB. A checklist, streamlined processes, better collaboration with other agencies and with state and local officials and clear guidance would “reduce confusion and uncertainties,” the comments said. Innovative solutions and flexibility should be encouraged as well. For example, low-impact development techniques — such as the creation of rain gardens for storm water runoff — can be a good management solution in areas with certain soils. NAHB is hopeful that the EPA will consider the recommendations to help the home building industry comply with regulations that probably shouldn’t even be in the Clean Water Act, NAHB commented. “Storm water from construction sites is treated as a point source — an end of pipe discharge — but in reality, discharge from these sites is non-point pollution,” the association said. Finally, “many mandates are getting ahead of the science. All requirements must be based on sound science and demonstrated environmental and economic efficiency,” NAHB said. For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132. Job Corps Center Develops Partnership with Local CollegeStudents at the Fred G. Acosta Job Corps Center in Tucson, Ariz., participating in the Home Builders Institute's (HBI’s) Job Corps curriculum are earning academic credits from the Pima Community College (PCCC) under an articulation agreement worked out between the two institutions over the past year. HBI instructors John Gallagher, Gerry Ortiz and Michael Flores — who provide plumbing, electrical and facilities maintenance training, respectively — were able to expand on a previous agreement to enable their students to now earn up to nine college credit hours for their Job Corps trades training. The earlier partnership between Fred G. Acosta JCC and PCCC was part of HBI’s “Building Today’s Workforce for Tomorrow” grant, which also included several Tucson public schools, workforce development boards and the Southern Arizona Home Builders Association. On June 29, the three instructors submitted their first student reports to administrators at PCCC. A total of 29 students received the full nine credits. Fred G. Acosta JCC’s Advanced Career Training (ACT), which is offered at the center, allows students who have completed some college credits to remain housed at the Job Corps dorms while they transition to college full time. This semester, seven HBI graduates will be starting as full-time college students. Five of the students will remain on the Job Corps campus through the ACT program, and the remaining two will live at home. "I am proud to see these young people excited about pursuing a college degree," said Gallagher. “Our partnership with Pima Community College has really brought continuing education opportunities to the forefront and our students are eagerly taking advantage of them.” “Innovative partnerships have been the lifeblood of HBI for decades and we are excited to see another example of our instructors giving their students further access to education,” said HBI Chairman M. M. “Mike” Weiss.
For more information on HBI’s Job Corps programs, e-mail Keith Albright at HBI, or call him at 800-795-7955 x8911. BaySystems Insulation Used in Affordable Dallas Area HomesIn celebration of its 60th anniversary, History Maker Homes in Dallas/Fort Worth this summer offered 60 new homes with the EnergyWise guaranteed energy-cost saving system. BaySystems spray polyurethane foam insulation was included as standard in the promotion homes. The Energywise program uses a systems approach to residential insulation applications. It was developed out of collaboration between BaySystems’ spray polyurethane foam insulation business and EnergyWise Structures, one of the nation’s leading thermal engineering firms. Thermacote Systems, a certified Energywide contractor, applied the Bayseal foam. “To History Maker Homes, energy efficiency and affordability go hand in hand,” said Nelson Michell, president of the home building company. “We were looking for a vendor that could provide a product for our homes that would make them affordable over the long run. Thermacote’s guaranteed energy-cost savings really got our attention.” While polyurethane foam insulation systems are more expensive to install than traditional insulation materials, Thermacote offers the Energywise guarantee that home owners will have monthly energy bills that don’t exceed a specified amount for two years. “First and foremost, we want to offer our customers homes that they can afford,” said Mitchell. “Our homes are priced under $200,000, and we’re the only builder to offer polyurethane foam insulation within that price range.” Spray polyurethane foam offers several advantages over traditional fiberglass batt insulation, including:
Using proprietary software to create a detailed energy analysis report from each building plan, the EnergyWise program accurately projects the annual heating and cooling consumption, comparative savings and optimal heating and cooling systems sizing. BaySystems North America is the polyurethane systems business of Bayer MaterialScience, headquartered in Pittsburgh, and 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. Housing Visionary Kevork S. Hovnanian Dies at 86Kevork S. Hovnanian, founder and chairman of Hovnanian Enterprises, Inc., died Sept. 24 of congestive heart failure at the New York Presbyterian Hospital. He was 86 years old. After immigrating to America from Iraq, Hovnanian and his three brothers started the company in 1959 with $20,000. Last year, it was the sixth-largest builder of homes in the country based on revenue. A publicly-traded company, Hovnanian Enterprises today builds homes in 18 states. From the inception of the company until 1987, Hovnanian served as its president, and then remained on as CEO of the company until 1997 before turning over the position to his son, Ara. A member of both the New Jersey Builders Association (NJBA) and NAHB, Hovnanian was known for building quality, affordable homes for first-time home buyers. He also excelled in the active-adult market. NJBA President Michael Karmatz called Kevork Hovnanian "an industry vanguard and true visionary who has left an indelible impression on our association, our industry, within New Jersey and far beyond." Hovnanian received many honors and awards, including Harvard University's Dively Award for Leadership in Corporate Public Initiatives, being named one of Rutgers University’s "25 Top New Jersey Business Leaders of the Century," recognition on Forbes’ Platinum list and the Fortune 500 list, and the NAHB Research Center’s National Housing Quality Award, among others. His philanthropic contributions and outreach were also numerous, including the establishment of the K. Hovnanian Children's Hospital at Jersey Shore University Medical Center, the Alton A. Hovnanian Emergency Care Center at Riverview Medical Center and the cardiology floor at the New York Presbyterian Hospital in New York City. Hovnanian is survived by his wife of more than 60 years, Sirwart, five children and 13 grandchildren. 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. 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. 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
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. |