Nation's Building News Online: May 31, 2010Print All Articles Text Version |
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Green Homes Said to Sell Faster, But Appraisals Remain a Sticking PointWhile official statistics may be lacking, many builders attending the NAHB National Green Building Conference in Raleigh, N.C., on May 16-18 said that they have been able to sell sustainably built homes considerably faster than the traditionally built new homes that have been languishing in today’s tough market. Green builders, however, have little immunity from the tight financial conditions that have been plaguing the housing market and imposing difficulties for both home buyers and sellers. And the widespread problem of low appraisals — driven largely by a glut of foreclosed properties and a slow market — has been doubly frustrating for green builders because the vast majority of appraisers are unable to recognize the value that green features add to the home. Energy efficiency, according to speakers at the conference, remains the most salient aspect of the industry’s move to sustainability, and is the one benefit that’s most easily recognized by consumers. Unfortunately, the prospect of sharp reductions in monthly utility bills has not gained much attention from the lending community, and mortgages recognizing those savings remain mostly an idea whose potential has been largely unrealized. Another ongoing challenge is that the concept of green housing is not well understood by the general public, conference panelists said, and a significant share of prospective buyers are actually turned off by it. Green builders were advised to market the specific benefits of their homes rather than selling green, and to avoid providing too much technical information, which can quickly go over the heads of buyers and discourage sales. While builders have found that there are buyers who are willing to pay a premium for green features, speakers at this year’s conference emphasized that the price gap between green and standard housing is closing, helped along by tax and other incentives. In general, however, home buyers may be reluctant to pay more for certain items unless they can be shown how these will pay for themselves through lower operating and maintenance costs over a reasonable period of time. Several builders were on hand in Raleigh to discuss how they have been successful in moving sustainable construction principles into affordable housing. Those attending the conference also heard how green is being incorporated into the multifamily sector and factory-built housing, the latter profiting from a manufacturing process that inherently provides greater precision and holds construction waste to a minimum. Industry professionals attending the show seemed to feel fairly optimistic about their business prospects and expected green to give them even more of an edge as this segment of the marketplace becomes further established during the full-scale housing recovery that will emerge in the next couple of years. But the mortgage market isn’t geared up to do an effective job of providing financing for those green homes, they were told, a complaint that hit an especially raw nerve at the conference. Green Homes Face a Red Light “Green homes face a red light,” said Dave Porter, CAPS, CGA, CGP, CMP, MIRM, of PorterWorks. “Appraisers don’t understand costs and buyers can’t get the full financing they need.” In a show of hands from the audience at Porter’s breakout session on the latest in appraising and lending on green building, only a few said that one of their customers had ever been offered an energy efficient mortgage (EEM) or energy improvement mortgage (EIM) or that an appraiser had solicited information on the energy features of one of their homes. Citing Fannie Mae guidelines advising lenders not to assume that an appraiser is competent, Porter told builders, “You have every right to say I want a competent appraiser. You do not need to roll over on this. If they have not seen or appraised a green home, ask for an appraiser who has appraised one of these homes or has knowledge in energy efficiency.” Builders have the misperception that they are not even allowed to talk to appraisers these days, said Porter, but as long as they are not unduly trying to influence the valuation, they can voice their concerns through the lender and Appraisal Management Company. The Appraisal Institute has initiated a one-day seminar on green building and it is presenting webinars, he said, “but I don’t know if this is enough.” Only about 25% of the nation’s roughly 105,000 appraisers are even a member of an organization, “so they are nomads.” In the meantime, underwriters are “tinkering” with appraisals. As part of the third-party verification process, Porter said that builder should be sure to obtain a residential energy report form from the HERS (Home Energy Rating Systems) rater and provide copies to the lender and appraiser, as documentation that the home is qualified for an EEM or EIM. Porter also said that Fannie Mae’s Uniform Residential Appraisal Form (Form 1004) should have a box at the top for information such as the HERS rating and its certification. In the version of the form that exists today, towards the bottom of the front page there is one line provided for additional green features, such as special energy-efficient items. To make appraisers and lenders more knowledgeable about the value of green, Porter said that builders should also be handing out or referring them to “Marshall & Swift Green Building Costs.” Selling for $98.95, the publication includes the costs of the most common green items for new construction and retrofits, including labor and other factors. About 1,500 items were recently added to the list. Comps a Sacred Cow Porter said that taking the cost approach is “a start” to moving away from appraisals based on comparable sales made nearby and recently. Finding suitable comps has been difficult enough for traditionally constructed homes in a down market, but even more problematic for innovative homes with features that are not commonplace. “Who made comps the sacred cow?” Porter asked. Moving to a different approach, he suggested, and compiling market information at the national level might be able to substantiate such claims as "green homes sell faster." The good news in this regard is that Multiple Listing Services have begun to include information on green features, and a Green MLS Tool Kit is now available to educate Realtors® about gathering data on green homes so that comparables will be possible. The bad news, he said, is that only an estimated 20 to 40 of the 850 MLSs in the U.S. have started tracking green so far. Also, a disproportionate number of new green homes are not listed because they are custom built. “The answer is to build some specs,” he said. Also, lenders need to factor in utility and maintenance costs to the calculations they use to qualify buyers for mortgages, he suggested. “What happens to the $400 differential” between a house built in the 1960s with an average monthly expenditure of $500 for energy and an Energy Star house that costs $89 a month? Lenders, he said, “are not looking at the full cost of ownership.” Demanding Energy Efficient Mortgages In effect, the energy efficient mortgage treats savings on energy as an addition to the borrower’s income. While these loans exist mostly in theory, “you need to start demanding these,” he said. Although it has been hardly used, Porter said that the Federal Housing Administration’s 203(k) is “the loan right now to get a home green and energy-efficient” and the answer to the energy retrofit that most existing homes need. The loan enables cost-effective energy-saving measures to be financed as part of the mortgage and enables the buyer to qualify for a larger loan amount by considering the monthly savings on energy and allowing higher qualifying ratios. The actual amounts are based on the HERS report. While no one to date has systematically estimated the actual value green adds to a home, Porter (along with at least one other speaker at the conference) referenced early research calculating that every $1 in annual energy savings brings roughly $20 in additional value. Finding enough data to reach such a conclusion is one problem, and further complicating things is that fact that the bottom line on how much energy is saved ultimately depends on the behavior of the occupants of the home. Conducted by Rick Nevin and Gregory Watson and published in 1998 by The Appraisal Journal, beyond making calculations, the research concludes that: “The implication for appraisers is that cost-effective energy efficiency investments do appear to be reflected in residential housing market values. Therefore, the appraised value of energy-efficient homes could understate their actual resale value if the comparables used in the appraisal do not reflect the value of a cost-effective energy efficiency investment.” As an additional resource, Porter mentioned www.dsireusa.org, which is a compendium of available incentives for features that promote renewable energy and energy efficiency. “Lenders and appraisers need to know about them,” he said. For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132. Builders Work With Lawmakers to Address Housing Production Credit CrisisNAHB’s work with members of Congress to address the housing production credit crisis led to the introduction of legislation on May 26 by Rep. Brad Miller (N.C.) and original co-sponsors Carolyn Maloney (D-N.Y.) and Joe Baca (D-Calif.) that would help alleviate the severe lack of financing for acquisition, development and construction (AD&C) financing. H.R. 5409, the Residential Construction Lending Act, would create a new residential construction loan guarantee program within the Department of Treasury to encourage and support lending to builders with viable construction projects. Designed to unfreeze credit for small home building firms, the measure would expand the flow of credit to residential builders on competitive terms. Under intense pressure from bank examiners to reduce their exposure to development and construction loans to builders and curtail their outstanding portfolios of real estate loans, many lenders have been refusing to make loans for viable new housing projects and have been cutting off the funding for performing loans, or calling them. This is causing unnecessary foreclosures and losses on these loans. Performing loans are also being reappraised, reducing the value of the collateral and forcing borrowers to come up with large amounts of cash to keep their loans current. Moving on several fronts, NAHB is urging Congress to act quickly to advance this bill:
To view the legislation, click here and type the bill number in the box at the upper center of the page. For more information, e-mail Scott Meyer at NAHB, or call him at 800-368-5242 x8144. Standing Apart in Tough Industry Times: BALA Smart Growth, Community Winners and Photos
The winners of the 2009 Best In American Living Awards (BALA) Smart Growth Neighborhood awards do just that — in urban and suburban neighborhoods throughout the country. Each winner profiled — infill townhomes and apartments in Washington, D.C.; a residential preserve nestled along the banks of South Carolina’s Saluda River; art deco loft living in downtown San Antonio; high density with a touch of Spanish and Mexican flair within walking distance of Houston's largest employment center; a small community respecting the historic arts and crafts roots of its village neighbors outside of Philadelphia; and others — brings elements of the surrounding environment to the fore, while also being resident- and pedestrian-friendly. The urban communities, for instance, all are positioned near employment centers and city services and take advantage of city transportation. The suburban communities were created to preserve their natural surroundings while also providing easy access to nearby city employment opportunities. Examples of the 2009 BALA Smart Growth Neighborhood winners include:
Capitol Quarter, Washington, D.C.
Capitol Quarter, developed by EYA of Bethesda, Md., is a mixed-income residential component of a major redevelopment effort in Washington D.C.’s growing Southeast neighborhood that includes the Washington Nationals baseball stadium, office space, retail, apartments, condominiums and townhomes.
Rather than displace the neighborhood’s lower income residents, Capitol Quarter, on the site of a former public housing project, features a mix of 77 market-rate townhouses, 42 subsidized workforce housing townhouses and 39 public housing apartments. All the units incorporate green technology, including Energy Star appliances and HVAC systems.
The homes reflect the traditional Washington, D.C. row house architecture found in the community’s adjacent Capitol Hill neighborhood. Capitol Quarter is also located several blocks from shops and cafes in the trendy “Barracks Row” commercial and entertainment district and a quarter mile from Washington, D.C.’s Navy Yard Metro Station.
Saluda River Club, Lexington, S.C.
Saluda River Club, nestled within the foothills of the Appalachian Mountains near Columbia, S.C., is a 278-unit, 210-acre residential community along the banks of the Saluda River that is surrounded by acres of preserved hardwood forest and offers residents a choice of townhomes and single-family homes. Jogging trails and pedestrian-friendly streets encourage residents to walk and jog from their homes to the community’s village center — which includes a neighborhood club house and provides other community services.
The Chickawa Outdoor Center, also part of the community, educates residents and visitors on the Saluda River and woodland ecosystem that is meticulously preserved on site.
Developed by Lifestone Communities of Lexington, Saluda River Club offers 135 large-lot single-family homes, 116 small-lot bungalow-style homes and 27 townhouses — ranging in price from mid-range to high-end for the region. The architecture throughout the community reflects a “craftsman bungalow” style that is characteristic of the region.
Sajo Farm, Virginia Beach, Va.
Sajo Farm in rapidly growing Virginia Beach, Va., features 82 duplex units near the shores of the area’s Lake Lawson, 78 single-family homes arranged around a Traditional Neighborhood Design-style village green and 135 single-family estate homes.
Created as a joint venture between Hampton Roads, Va., builders Terry Peterson Companies and Napolitano Homes and in response to community concerns over the loss of the region’s open space, Sajo Farm incorporates and preserves Lake Lawson onsite in its natural state. The preserved lake and adjacent shoreline woodland system serve as an amenity to Sajo Farm residents as well as the wider community.
The architecture of the homes incorporates the traditional plantation and Georgian architecture of the region, which reflects the area’s long, rich history of settlement.
Caceres, Houston
Situated on an eight-acre infill site within walking distance of Houston’s largest employment center, the Central Business District, Caceres provides is a mix of custom homes, villas and townhomes at a density of almost 15 units per acre, which is high density for the area.
When creating Caceres, developer and builder Rohe and Wright Builders of Houston and land planner Preston Wood and Associates replicated the experience of a Spanish hill town while recognizing Texan roots in Mexican and Spanish culture and heritage. For example, the site’s density enables the community’s streets to double as paved “paseos” — essentially replicating the function of a village green — and provide residents with public gathering space. European-styled string lights add to the festive ambiance of the community.
Caceres features 118 townhouses, a community pool and a central lawn. The townhomes have private gardens and terraces that efficiently use the limited space on site. Terraces provide residents with urban views of the downtown Houston skyline and encourage outdoor living and dining. Cacares also is within walking distance of Houston’s METRO rail line.
Traymore, Rose Valley, Pa.
Located near Philadelphia in historic Rose Valley, Pa., late 19th-century experimental artistic community, the Traymore was designed to respect the borough’s Arts and Crafts tradition through its community and residential architecture. Traymore’s 42 home sites were meticulously located within the wooded tract to preserve as much of the Eastern hardwood forest as possible. In addition, low-impact development techniques — such as minimized street widths — were utilized to minimize the impact of storm water.
The Vistana, San Antonio
Located in the heart of San Antonio, the Vistana provides 196 downtown residences close to transit while revitalizing a forgotten corner of downtown, adjacent to historic Milam Park and the Christus Santa Rosa Medical Center, a major employer. Developed by C.F. Jordan Construction Services, the mixed-use building also includes 30,000 square feet of retail space. To blend into its historic downtown surroundings, the art deco-designed Vistana incorporates terra cotta trim and yellow brick materials used on many of San Antonio’s most prominent buildings and skyscrapers from the 1920s and 1930s. The architects also incorporated several green features into the structure — including low emissivity windows and “cool roof” technology that reduces radiant heat and cooling costs. A vertical garden was placed on the side of the parking garage. All are environmentally-friendly techniques respective of San Antonio’s hot climate.
Lane Woods, Menlo Park, Calif.
Land Development magazine named Lane Woods — an infill community within walking distance of Menlo Park and Palo Alto. Calif. — as the BALA Best Community of the Year. While not competing in BALA smart growth categories, Lane Woods, by SummerHill Homes, is a 32-home community on a section of the former Sunset Publishing Corporation’s Menlo Park campus. The architecture of the homes reflects styles found throughout the Santa Clara Valley. Lane Woods is also near two CalTrans commuter rail stations. For more information, e-mail Ed Tombari at NAHB, or call him800-368-5242 x8309. NAHB National Membership Day Brings in Almost 4,400 New MembersFederation members and local associations were undeterred by the tough housing market and recruited 4,379 new members and council members during NAHB’s National Membership day on May 25. “Membership is the lifeblood of this organization and this day is like our annual transfusion,” said Ann Garvey, chair of the NAHB Membership Committee. “It’s a big boost, something the locals are drawn to and push in their own regions. It’s the cornerstone of our recruiting efforts.” Membership Day, the capstone event of a month-long nationwide campaign by HBAs and members and supported at the state and national levels, is NAHB’s single most important annual activity to spur membership growth. North Carolina and Tennessee — with 448 and 341 new members, respectively — were the two most productive states during the recruitment drive. South Carolina and Virginia rounded out the top four. The highest-recruiting local HBAs were the Hilton Head Area Home Builders Association in South Carolina, which added 125 new members, and the Memphis Area Home Builders Association, Tenn., which recruited 113 members. “This is the fourth time I have volunteered on Membership Day, and it’s always great — our membership drive is extremely important,” said NAHB Chairman Bob Jones. “We are happy to get calls from locals with many new members. But we are equally pleased if someone called even with a single new member. It all added up to a great day during tough times.” “I never know what to expect from year to year, the themes they come up with are amazing,” said NAHB Immediate Past Chairman Joe Robson. “Calls are coming in from around the country, whole membership committees are calling in on conference calls and the enthusiasm is outstanding.” New Member Breakdown The top performing state associations were, according to preliminary pledge results:
Top Performing Local Associations The top performing local HBAs were, according to preliminary pledge results:
Top Performing Councils The top performing NAHB councils were, according to preliminary pledge results:
Builders Tell Buyers: Let’s Make a Deal; Developers Try to Keep Sales RollingAlthough the home buyer tax credits have expired, builders and developers in the Chicago area are dangling generous incentives and price cuts to get buyers in the door. Steve Melman, NAHB’s director of economic services, said incentives are “fairly widespread” to keep the momentum going after the tax credits. “Many builders are offering upgrades that quickly begin to approach that value of the $8,000 first-time home buyer tax credit,” he said. “Or it could be a combination. They will upgrade appliances and help out with closing costs. That quickly begins to approximate the value of the $8,000 tax credit.” Bearing names like “a-MAY-zing Savings Sale” and “Trade in Your Home” program, Chicago-area deals offer sizable discounts on single-family homes, condominiums and town homes. In some cases, the availability of FHA mortgages with only 3.5% down sweetens the deal. “It’s a matter of giving people a reason to buy new,” said Paul Bertsche, vice president and general counsel at Chicago’s CA Development. “The competition is short sales and foreclosures.” Optima Old Orchard Woods in Skokie, Ill., which features 656 condominiums in three interconnected residential towers, is touting a “Better Than a Tax Credit” program with a $9,000 credit off the price of a condo. The credit can also be used toward closing costs, an interest rate buy-down, a combination of the two, or be applied to upgraded finishes, said sales manager Tara Hovey. “This was a way for buyers to feel they can still move forward days after the credit program ended, and feel they got a great deal,” she said. (www.chicagotribune.com)
Slump Cuts Cost of Building Dream HomeLike other builders and contractors, Gary Rochman, owner of Rochman Design-Build in Ann Arbor, Mich., reports his business is picking up a bit as customers feel a little more confident about the future, or at least not as fearful as they once were. It helps, too, that labor and construction materials costs are still relatively low. Home owners can often build custom homes and major add-ons for 10% to 20% below pre-slump levels. The housing crisis sidelined many skilled laborers. Eager to work, they’re willing to negotiate on fees. It’s the same with architects, designers and builders. “It makes a lot of sense right now,” said Stephen Melman, NAHB’s director of economic services. “People are available to do the work. They are going to bid competitively, so I’m sure that will drive the price down.” But the low-cost building and remodeling climate may not last too much longer. “Costs are still down but they’re starting to move up, so the window for taking advantage of lower prices is starting to narrow,” said Josh Baker, president of BOWA, a design and construction firm that focuses on large-scale add-ons and luxury renovations in the Washington, D.C., area. Once subcontractors start getting more work, labor rates will go up too, builders say. “The moment they get busier, the negotiating factor goes away. It happens very quickly,” said Luis Jauregui, an architect and builder in Austin, Texas. Rochman hasn’t raised his fees yet, but he recently hired back an architect he had laid off and this summer hopes to rehire two carpenters dismissed during the recession. Like most remodelers and custom home builders, Rochman reduced his overhead as business slowed in the housing downturn. To help win bids from a smaller pool of customers, he cut fees and reduced markups by about 10%. Clients are still enjoying discounts, including deals on land — for now. (www.investors.com)
Take Me Home, Country Roads; Bright Lights? Big City? Who Needs ’em? Calmer Rural Lifestyle BeckonsIt’s getting harder to find the words “rural” and “new home” in the same sentence as the Chicago suburbs gobble up land within a 40-mile sweep of the Loop and “New Urbanism” becomes the rallying call for land developers. But it is possible and, for many buyers, preferable. “We’re living our ‘happily ever after,’” says Al Flammini, who bought a house in KLM Builders’ Sunset Ridge Estates in Richmond in 2009 with his wife, Kim. “We have quiet and are away from traffic,” he says. “But we can go shopping or to Lake Geneva in 10 minutes. I can spend my time biking and kayaking.” Living away from Chicago is not a downside for the Flamminis, who traded their older Lindenhurst house for their new two-story house in Richmond. “It takes about 25 minutes now to get to our daughter’s house, but otherwise we have all we need out here,” says Flammini, who bought a model, in part because he liked the decorating. Country living isn’t for everyone, says NAHB, although Midwesterners crave it more than people from other regions (Pacific Coast folks are least likely to go rural.) “Nationally, 28% of buyers want ‘rural,’” reports Steve Melman, NAHB’s director of economic services. Caucasians are far more likely than are African-Americans, Hispanics and Asians to reject city life. Their reasons, says Melman, include solitude, lower-cost housing and open space. Thanks to wireless devices and home offices, he adds, many workers no longer need to report to their city offices daily. Age doesn’t matter, says Melman. About one-third of Midwesterners of all ages long for rural roots. But household income does separate city from rural; those with incomes in the highest brackets are less likely to want to head for the country. (www.chicagotribune.com)
Builder Shifting GearsScott Shimberg is used to taking a year or longer to build a custom house. It’s the way his family’s company has done business for more than 50 years. Now, he says, his homes will be popping up on Tampa Bay, Fla.’s vacant lots in as few as three days because most of the home won’t be constructed there. The well-known Shimberg family has always built custom homes the old-fashioned way. Now, the company, Hyde Park Builders Inc., is changing gears. The modular part of the business is going by Scott Shimberg Homes and has teamed up with another builder to construct 80% of a home off-site — in another state even. Customers will meet with the local builder and pick out design elements in South Tampa. Each time a section of the house is complete, it will be shipped to the home site. The entire house could be finished in as little as three months. “I kept wondering if there was a better way,” said Shimberg, who is president and chief executive officer of the company. “This way I can build a home in three months and avoid vandalism, theft and weather delays. Customers can sit in lawn chairs across the street and watch. At the end of the day, they will have a house.” This construction method, he said, will slash building costs up to 30%. With the sluggish economy and rising construction costs, Shimberg said this “helps make the numbers work.” Modular building is not new, said Steve Melman, NAHB’s director of economic services, but it is different to see a custom builder construct homes this way. Many builders, Melman said, are trying to cut costs by building some aspect of the home off-site. Some are simply dropping in constructed showers instead of tiling them on-site. Others, he said, are adding whole rooms. But Melman said he’s not aware of a builder like Shimberg completely changing its building method. “If this works, other companies will follow,” Melman said. “But it takes time for people to accept it. Home owners have to feel comfortable.”
Women Builders Bring Their Own Strengths and PerspectivesBuilder Mary-Dolph Simpson said she learned early on that treading territory in a traditionally male-dominated field could be a challenge. But after many years in the business, she said that she’s seen change in the perception that a woman couldn’t possibly know as much as a man about building a home. “From the male builder’s perspective, they take the plan and want to build what they see,” Simpson explained. “Being the female side, I hear what the woman needs” regarding space, storage and overall home-life design. “I can envision pretty much anything,” she said, adding that often she visits a family’s current home to better understand their lifestyle needs and preferences. She also assists greatly in the materials-selection process. The number of reported female-owned construction firms nationwide exceeded 201,000 in the U.S. Census Bureau’s 2002 Survey of Business Owners. According to NAHB, more women than ever are leading construction companies. “I think women builders can certainly relate with what people really want in a new home,” said Mark Edwards, senior vice president/broker of East West Realty in Suffolk, Va. “Research shows that women influence the purchase decision 86% of the time in the purchase of today’s consumer goods,” he said, “and it certainly holds true in the purchase of new homes. Women builders can bring a unique perspective that many of the builders that have been in the business for many, many years might not. Of course, there are excellent male builders. In fact, most of the ones we work with are predominantly ‘male-owned’ building companies. But if you take a closer look, they have someone female in the decision-making process or serving a very important role in their company.” (www.pilotonline.com)
Housing Starts Up as 51st Annual Spring Parade of Homes in Grand Rapids Area Is About to BeginThe number of new homes in the Grand Rapids, Mich., Annual Spring Parade of homes grew this year, the first time since 2005 when the popular event reached 212 new homes, just shy of the 1993 record high of 228. The growth is slight — up to 45 from last year’s 42 — but it is growth nonetheless and a sign that builders are seeing more confidence in the marketplace. “People need to have confidence before they buy a house — more than any other purchase — and we believe confidence has quit eroding,” said Mick McGraw, president of Eastbrook Homes, one of the area’s largest builders. Six of the homes in this year’s parade are green-built, three have universal designs and prices span from $100,000 to nearly $1 million. “Right now, you’re really seeing people investing n affordable homes,” said Danielle Latack of the Home & Building Association of Greater Grand Rapids, which sponsors the event. Rich Kogelschatz, owner of Heartland Builders and president of the association, said people can see the market improving by driving through developments, where homes are under construction by a variety of builders. His company is among them, including a green-built, barrier-free home. “We’re breaking ground next week on a house, and we just finished two,” he said. “Overall, there is a sense of optimism. Not just myself, but in the public as well. But, pointing to stubbornly high unemployment numbers, he said the turnaround will be slow. In March, the Grand Rapids area had a 12.8% unemployment rate, higher than in February and March 2009. (www.mlive.com)
House Passes Tax Extender Bill, But Would Change Carried Interest Taxation to Pay for ItOn May 28, the House narrowly passed a package extending numerous expiring tax credits and other programs. H.R. 4213, the American Jobs and Closing Tax Loopholes Act of 2010, contains a number of provisions supported by NAHB, including an “exchange” provision for the Low Income Housing Tax Credit (LIHTC) program allowing state housing finance agencies to trade in a portion of their tax credit allocation for grant dollars to support local affordable housing. The bill also includes an extension of the New Energy Efficient Home Tax Credit (45L credit) and the National Flood Insurance Program. H.R. 4213 was passed by the House by a vote of 215 to 204. The House struggled last week to garner the necessary votes to pass the legislation. Encountering strong resistance when many fiscally conservative Democrats objected to the overall cost of the bill, the House leadership was forced to scale it back, ultimately splitting it into two parts. The second part — which also passed the House on May 28 — contains a fix for a Medicare reimbursement issue for doctors. While NAHB strongly supports several of the programs that would be extended in the bill, it vehemently opposes changing the taxation of “carried interest” as the central revenue offset to pay for the bill. Under present law, income generated by carried interest in a partnership is taxed as capital gains. Under the House plan, for 2011 and 2012, carried interest would be taxed as 50% capital gains and 50% ordinary income; this would increase in 2013 to 75% ordinary income and 25% capital gains. (For more about this issue, click here and read the final section of "Eye on the Economy.") NAHB sent a letter to House and Senate leaders warning that this plan would significantly harm real estate development, including multifamily housing, and that thousands of real estate construction jobs would be lost. The House originally planned to pass H.R. 4213 on Tuesday, May 25, giving the Senate adequate time to debate and pass the bill, sending it to the President before Memorial Day. The Senate will now take up the bill after it returns from its Memorial Day recess on June 7. While the Senate is expected to address H.R. 4213 as one of its first orders of business when it returns, it remains unclear if there is enough support to pass the bill. Senate Republicans are expected to filibuster the bill, which would require 60 votes to overcome. In the Senate, both the bill’s overall cost — but also the change in the tax treatment of carried interest to pay for it — remain major hurdles. Ultimately, the Senate may be forced to further modify the bill to garner the needed 60 votes. If so, the House will have to approve those changes. To read legislation, click here and enter the bill number in the upper center of the page. For more information, e-mail J.P. Delmore at NAHB, or call him at 800-368-5242 x8412. Rural Housing Program Funding Moves Forward in CongressWith funding for a key rural housing program exhausted, Congress last week moved legislation forward to ensure that home buyers in rural areas have continued access to affordable mortgages through the U.S. Department of Agriculture (USDA) 502 loan guarantee program. With NAHB’s full support, the House passed H.R. 5017, the Rural Housing Preservation and Stabilization Act of 2010, sponsored by Reps. Paul Kanjorski (D-Pa.) and Shelley Moore Capito (R-W.V.). The legislation would give the USDA the authority to increase the upfront premium for 502 guarantees, making the program self-sustaining and providing families in rural communities with a vital source of mortgage credit. Companion legislation was then introduced in the Senate by Sen. Michael Bennet (D-Colo.), with similar provisions subsequently included in the Senate-passed Emergency Supplemental Appropriations bill, H.R. 4899. While H.R. 4899 passed the full Senate last week, the House will not take action on the legislation until it returns from its Memorial Day recess on June 7, leaving the 502 program without much-needed funding. At the urging of key members of Congress, the USDA issued guidance last week indicating that it has authorized the issuance of conditional commitments for the Section 502 Single Family Housing Guaranteed Loan Program beginning immediately and continuing until $2.5 billion in total loan guarantees are exhausted. The plan is to allow these commitments to bridge the gap until Congress finalizes the legislative fixes needed to put the program back on a solid financial footing. NAHB will continue to advocate on behalf of this important rural housing program until this critical funding situation is addressed. To read legislatiion, click here and enter the bill number in the upper center of the page. For more information, e-mail Scott Meyer at NAHB, or call him at 800-368-5242 x8144.
Job Gains Key as Housing Makes Progress on Road to RecoveryThe housing market is on the road to recovery, but several factors could contribute to a bumpy ride in the coming months, according to participants in a May 19 NAHB webinar on the construction forecast. "Home buyer tax credits clearly did their job and got people back into the marketplace," said NAHB Chief Economist David Crowe. With the expiration of the tax credits in April, Crowe said the housing momentum is being carried forward by low interest rates, pent-up household formations, stabilizing prices and budding employment growth.{{MORE}} However, many factors continue to put a drag on housing activity at this time — including a critical shortage of credit for new and existing projects, competition from short sales and foreclosures and regional economic disparities. The availability of acquisition, development and construction (AD&C) financing remains a major concern as the industry moves forward, Crowe said. "Builders still tell us that credit is extremely tight. Banks are saying not so much. That gap is an indication that something is broken, at least when it comes to residential construction." NAHB is forecasting 552,000 single-family starts in 2010, up 25% from last year's 445,000 level, which was the lowest annual output since 1959 when the government began collecting this data. Suffering from an acute shortage of available financing and a significant shadow inventory of homes lost to foreclosure that are competing against normal inventory, Crowe said that multifamily housing starts are expected to lose further ground this year, falling 18% to 93,000 units, before rebounding to 150,000 units in 2011. Crowe anticipates that nationwide home prices will remain flat this year and post a modest increase in 2011 and that mortgage interest rates will continue to stay low, barely breaking 6% by the end of this year, and not rising much above that level through 2011. The road back to normal levels of residential construction will be longer for some states than others, he said. By the end of 2011, production levels will be back to normal in Texas, Oklahoma, Montana, Wyoming, Tennessee, Louisiana, Mississippi, Alabama, Arkansas and Kansas. The big housing boom states of California, Arizona, Florida and Nevada — along with the Great Lake states of Michigan, Indiana, Ohio, Illinois and Wisconsin, which have been afflicted by deep cuts in auto production and manufacturing — will be the last to recover. Housing Demand Reflects Job Growth Like his co-panelists, Mark Zandi, chief economist of Moody's Analytics, said that housing will improve in tandem with the job market. He forecast that the economy will average monthly job gains of 125,000 this year, 250,000 in 2011 and 300,000 in 2012. Mirroring anticipated employment growth, Zandi expects the gross domestic product to rise 3% this year, approximately 4% in 2011 and closer to 5% in 2012. The key factor driving housing demand is jobs, said Zandi. "We're not going to get home sales unless we have jobs. Here the prospect is good. Business balance sheets are in good shape and improving rapidly. These are pre-conditions for better job growth and we should see the job market steadily gain traction." Zandi forecast that overall housing starts will total 700,000 units this year, close to one million in 2011 and about 1.7 million by 2012, which he describes as close to trend and consistent with demographics in a normally functioning economy. Driven largely by the high foreclosure rate, Zandi expects home prices to continue to fall in 2010, although modestly, by about 5% on a national average. He calculates that it will take until the end of 2011 to work off an excess inventory of approximately 1.25 million units. "The good news," he said, is that "as the job market improves, so will household formations and demand. So I anticipate we will work off the excess inventory more quickly than the two-year period." He added that most of the housing surplus is concentrated in Florida, around Atlanta, along the South Carolina coast, in Las Vegas, Phoenix and Tucson and in the central valley of California. Consumers Fuel Recovery Taking the most bullish view of the ongoing recovery, Chris Varvares, president of Macroeconomic Advisers, LLC, forecast that GDP will rise 3.7% this year and that housing starts will total 750,000, well above the Blue Chip Economic Indicators consensus of 690,000. "Personal consumption expenditures are making a very solid recovery," said Varvares. "Residential investment is going from a drag to a contributor. The difference between our forecast and the consensus is the strength in personal consumption and housing." Although the huge number of foreclosures on the market is reducing starts by about 300,000 to 400,000, Varvares said the fundamentals still point to a solid trajectory for housing. "With prices stabilizing, demand is picking up and we expect builders to respond. By the end of 2011, we expect about 1.2 million housing starts. This suggests we can have recovery in starts this strong while simultaneously working down excess housing inventory." The panelists were in unanimous agreement that the Federal Reserve will likely continue to keep interest rates near rock-bottom levels at least through the end of the year; the chance of a double dip recession is extremely slim; and policymakers will need to take action within the next two years to increase revenues and cut spending to rein in the burgeoning structural U.S. deficit. The 2010 NAHB Spring Construction Forecast Conference was presented in a new online format designed to make the program more accessible to a wider audience. Previously, the conference was an all-day, in-person event with a webcast option. NAHB's biannual construction forecast conference has provided in-depth housing and economic analysis for 40 years. Tax Credit Boosts Sales of New Single-Family Homes in AprilSales of newly built, single-family homes surged 14.8% to a seasonally adjusted annual rate of 504,000 units in April as consumers rushed to beat the deadline for expiring home buyer tax credits, according to data released by the U.S. Commerce Department on May 26. This was the strongest level of new-home buying activity since May of 2008. “Clearly the home buyer tax credit program, which concluded at the end of April, was successful in getting the housing market moving again by helping many families achieve the dream of homeownership,” said NAHB Chairman Bob Jones. “Now that the program is over, other great buying incentives continue — including exceptionally favorable mortgage rates, very attractive home prices and the steadily improving economy — so there is good reason to expect the positive momentum to continue,” Jones said. “The surge of buying activity we have seen in the final two months of the tax credit program has been very encouraging, and has helped builders work down their standing inventories to near historic lows,” said NAHB Chief Economist David Crowe. “It stands to reason that this activity will level off over the next few months, as sales that would have occurred during that time were likely pulled forward to meet the April deadline. That said, today’s favorable home buying conditions, the recovering job market and reviving consumer confidence should help take the place of tax incentives to generate buyer demand.” Three out of four regions posted substantial gains in new-home sales in April — with increases of 31.6% in the Midwest, 10.8% in the South and 21.7% in the West. Sales activity remained virtually unchanged from the previous month in the Northeast. The nationwide inventory of new homes on the market fell 5.8% to 212,000 units in April, its lowest level since October of 1968. Meanwhile, the month’s supply at the current sales pace declined from 6.2 in March to a modest 5.0 in April, the lowest since November of 2005. Housing Starts Rise in April as Builders Look Beyond Tax CreditNationwide housing starts rose 5.8% to a seasonally adjusted annual rate of 672,000 units in April as the deadline for an important home buyer tax incentive arrived, according to figures released on May 18 by the U.S. Commerce Department. "While some of the starts activity noted in the April report reflected homes for which buyers had just signed a contract at the tail-end of the tax credit program, the rest was probably tied to builders replenishing their inventories in preparation for the post-tax credit era," said NAHB Chairman Bob Jones. "That said, builders are maintaining a cautious attitude with regard to new building as the economy and housing markets slowly recover." "The government's latest numbers indicate that production of new single-family homes got a substantial boost in April as the tax credit program wrapped up and builders worked to resupply their depleted inventories," agreed NAHB Chief Economist David Crowe. "As our latest surveys have indicated, builders are anticipating that factors such as low mortgage rates, attractive prices and the recovering employment market will replace the tax credit as incentives to buy,” Crowe said. “Meanwhile, the drop-off in building permits in April indicates that builders are working down the inventory of permits pulled in the previous month and taking care not to get ahead of the market. Builders also continue facing difficulty in obtaining project financing, which will limit the pace of a housing recovery." Single-family housing starts surged 10.2% to a seasonally adjusted annual rate of 593,000 units in April, the strongest rate since August of 2008. Meanwhile, multifamily starts posted an 18.6% decline to a 79,000-unit rate, offsetting a big gain posted by that sector in the previous month. Permit issuance, which can be an indicator of future building activity, declined 11.5% overall to a seasonally adjusted annual rate of 606,000 units in April. This included a 10.7% decline to a 484,000-unit rate on the single-family side and a 14.7% decline to a yearly pace of 122,000-unit in multifamily permits. Three out of four regions posted solid gains in new housing production in April. Combined single-family and multifamily starts rose 23.9% in the Northeast, 16.7% in the Midwest and 7% in the South. The West registered a 13.3% decline. Conversely, permit issuance was down in three out of four regions in April, with declines of 7.4% in the Northeast, 14.3% in the South and 16% in the West. Permit issuance remained unchanged from the previous month in the Midwest. Nation’s Housing Remains Highly Affordable for Fifth Consecutive QuarterBolstered by favorable mortgage rates and low house prices, housing in the U.S. remained at highly affordable levels during this year’s first quarter, according to the NAHB/Wells Fargo Housing Opportunity Index (HOI). Released on May 20, the first-quarter index found housing affordability hovering for the fifth consecutive quarter near its highest level since the series was first compiled 19 years ago. The HOI showed that 72.2% of all new and existing homes sold in the first quarter of 2010 were affordable to families earning the national median income of $63,800, slightly higher than the previous quarter and near the record-high 72.5% set during the first quarter a year ago. "The latest report is very encouraging because it indicates that homeownership continues its more than year-long trend of remaining within the reach of more households than it has for almost two decades," said NAHB Chairman Bob Jones. "With interest rates remaining at low levels, companies starting to hire new employees and the economy beginning to rebound, this should encourage more home buyers to enter the market and help further stabilize housing and the economy." Indianapolis-Carmel and Youngstown-Warren-Boardman, Ohio-Pa., were the most affordable major housing markets in the country. In Indianapolis, which has held top ranking for nearly five years, almost 95% of all homes sold were affordable to households earning the area's median family income of $68,700. In Youngstown, the same percentage of homes was affordable to households earning a median $53,500. Also near the top of the list of the most affordable major metro housing markets were Syracuse, N.Y.; Dayton, Ohio; and Grand Rapids-Wyoming, Mich. Five smaller housing markets posted even higher affordability scores than Indianapolis and Youngstown. Among them, Bay City, Mich. — where 98.7% of homes sold during the first quarter were affordable to median-income earners — was the most affordable market in the country. Other smaller housing markets near the top of the index included Kokomo, Ind.; Davenport-Moline-Rock Island, Iowa-Ill.; Sandusky, Ohio; and Elkhart-Goshen, Ind., respectively. For the eighth consecutive quarter, New York-White Plains-Wayne, N.Y.-N.J., was the nation’s least affordable major housing market, with slightly less than 21% of all homes sold there during the first quarter affordable to those earning the area's median income of $65,600. The other major metro areas at the bottom of the affordability scale included San Francisco; Honolulu; Santa Ana-Anaheim-Irvine, Calif.; and Los Angeles-Long Beach-Redwood City, Calif. San Luis Obispo-Paso Robles, Calif., was the least affordable of the smaller metro housing markets in the country during the first quarter. Others at the bottom of the chart included Ocean City, N.J; Santa Cruz-Watsonville, Calif.; Napa, Calif.; and Flagstaff, Ariz. Eye on the Economy: Good News Tempered With Caution for Single-Family Construction
A combination of improving economic conditions and an expiring home buyer tax credit produced promising housing reports in April. Housing starts for the month rose to a seasonally adjusted annual rate of 672,000 units, up 5.8% from March and the highest level since October 2008. The lift came entirely from single-family starts, which jumped 10.2% to 593,000, their strongest showing since August 2008. Total starts were up 40.9% and single-family starts 53.6% from a year earlier, when total housing production was at an all-time low.
It is conceivable that some of the increase in starts in April came from builders rushing to begin and ultimately complete modest homes in time to qualify for the home buyer tax credit. However, completing these homes by the closing deadline at the end of June requires a tight construction schedule of less than three months, compared to an average five-month process for building a new home. This would suggest that most of the increase was attributable to rebuilding inventory depleted as a result of the tax credit stimulus. The building permit data suggest a flattening in construction activity in the near-term. Single-family permits dropped 10.7% from 542,000 in March to 484,000 in April. While this was the first significant decline in a little over a year, it followed a month in which builders were stocking up in preparation for the tax credit expiration. The monthly average of single-family permits for March and April were roughly equal to the January-February average and were 16% above the average for all of 2009. As the economy continues to gain traction and employment grows, housing demand will improve and permits will resume their march upward. Builders’ optimism continued to advance in April as measured by the May NAHB/Wells Fargo Housing Market Index (HMI), which rose three points from 19 to 22, its second monthly increase in a row. Most heartening was that all three components of the index — current traffic, current sales and expected sales — were also up for the second consecutive month. An NAHB survey of large builders reported similar findings for seasonally adjusted net sales. Multifamily Construction Continues to Struggle
Multifamily starts on the other hand were down 18.6% to 79,000 units in April, close to February’s 78,000 starts and down 13.2% from a year earlier. Although month-to-month multifamily starts are subject to statistical anomalies, quarterly averages have shown a continuous decline since mid-2008 and the April figure was 14% below the monthly average for the first quarter 2010. Multifamily construction continues to struggle against double-digit vacancy rates, high levels of unemployment and the scarcity of financing. Multifamily permits declined 14.7% from 143,000 in March to 122,000 in April, leaving them roughly in line with January and February permits. Although NAHB is forecasting a slow, but steady revival in multifamily starts over the next several quarters, shortages of both apartments and condos could emerge over the next three to five years, along with higher rents and higher prices, as demand rebounds. Expiring Tax Credit Pushed New Home Sales in April
The expiring home buyer tax credit pushed new home sales up 14.8% in April to a seasonally adjusted annual rate of 504,000. This was up from a sales pace of 439,000 in March (revised from 411,000), and represented the best sales in almost two years. In the process of meeting a rise in housing demand, builders drew down their inventories to 211,000 units, a level not seen since October 1968. Lower inventories together with the higher sales rate reduced the months’ supply of homes for sale from 6.2 months to 5.0 months. Sales in March and April motivated by the tax credit did undoubtedly steal some demand from future months and some fallback is expected in June and July, and possibly August. However, the countervailing forces of rising employment, low mortgage rates, pent-up housing demand and the apparent bottoming out of housing prices will allow sales to plateau and prevent them from falling significantly. Existing home sales in April experienced a similar tax credit induced boost — climbing 7.4% to 5.05 million and reaching their highest level since November — when the 2009 tax credit was scheduled to expire. Existing home sales will continue to benefit from the tax credit through June, when the deadline for closing arrives. House Price Reports Suggest Price Stability
Although various house price measures have been sending somewhat conflicting signals, it appears that house prices nationwide have generally stabilized. The S&P/Case–Shiller report for March showed a seasonally adjusted price increase for the 10-city index and an increase for nine of the 20 metro areas surveyed; the 10-metro index also showed prices higher than last March. The 10-city, 20-city and national C-S indexes increased 2% to 3% from their lows one year earlier. The Federal Housing Finance Agency (FHFA) monthly index also indicated improvement, with prices increasing from February to March at an annual rate of 3%. On the negative side, the 20-city Case-Shiller index fell at a seasonally adjusted annual rate of 0.6% in March and prices in five cities — Atlanta, Chicago, Detroit, Minneapolis and Charlotte, N.C. — fell at an annualized rate in the double digits. The C-S March index is based on an average of three months when demand did flag during the transition from the 2009 home buyer tax credit to the 2010 version. The upturn in demand during March and April should show up in improved house price reports in the coming months. Adding to inconclusive signals from the price reports, the March FHFA index was down 2.9% from a year earlier. April median new home prices fell 9.5% from a year earlier, ending three months of year-over-year increases — $198,400 versus $ 219,200. The drop reflects a compositional change in the homes that were sold, with more sales at the lower end of the price spectrum; the share of homes sold in April for less than $200,000 rose to 51% from 42% a year earlier. Meanwhile, despite foreclosed home sales and short sales, April median existing home prices increased 4.5% from a year earlier — $173,400 versus $166,000 — the first year-over-year rise in those prices since July 2006. Taken together, the various house price measures portray a segmented market that is undergoing adjustment. The conflicting signals are likely to persist over the next few months, but overall, prices appear to have stabilized. General Inflation Continues to Be Mild
Inflation as measured by the Consumer Price Index (CPI) remains tame. For the first time in over a year, the April seasonally adjusted monthly CPI fell, by 0.1%, though it was up 2.2% from a year earlier. Meanwhile, core inflation — excluding food and energy prices — rose a quite modest 0.9% from a year earlier. The recent generally upward pressure on the prices of building materials continued in April. Prices for both single-family and multifamily construction rose 0.9% from March, the sixth monthly increase in a row, and 3.9% and 4.1%, respectively, from a year earlier. Some near-term price relief is likely at hand, with lumber prices recently retreating from their rapid increases and poised for further declines over the next few weeks. Harmful Tax Policy Change for Multifamily and Commercial Developers
As if multifamily construction didn’t face enough challenges, a proposal moving through Congress would have significant negative effects on the multifamily and commercial real estate sectors. Under present law, “carried interest” (sometimes known as "promoted interest") from the sale of a capital asset, such as an apartment building or commercial development, is treated as a capital gain and taxed at a 15% rate (20% in 2011). Carried interest involves an investment structure in which the general partner — typically a developer or home builder — contributes a smaller share of equity to the partnership than the share of capital gain it is due as income. (For example, for a builder who has 10% of equity in the partnership but is due 50% of the gain, the 40 percentage point difference is the carried or promoted interest). Carried interest arrangements are common in real estate, energy, venture capital, private equity and other enterprises in which the general partner has cash constraints. This is, therefore, an ideal way of allocating risk and reward from the enterprise, while attracting more risk-sensitive limited partners. Under the congressional proposal, the carry would lose a part of its capital gain character and instead be taxed as ordinary income, with rates up to 35% (39.6% in 2011), plus payroll taxes if they apply. Under the current proposal, in 2011 and 2012 such income would be treated as 50% ordinary income and 50% capital gain. In 2013 and thereafter, capital gain due to a carry would be treated as 75% ordinary income and 25% capital gain. The proposal would thus result in a significant tax increase for multifamily and commercial developments. Depending on its final form, the new tax rule could reduce annual multifamily construction activity by thousands of starts. Click here to read a previous NAHB report on the details of this proposal. The proposal is part of the” tax extenders” legislation (H.R. 4213, which also includes one year extensions of the LIHTC exchange program and the $2,000 new energy efficient home tax credit), which is expected to be subject to a vote in the House on May 28 and receive consideration in the Senate after the Memorial Day Congressional recess. Votes in both chambers are expected to be close. NAHB Chief Economist David Crowe analyzes the economy from the point of view of the housing market every other week in the free e-newsletter, “Eye on the Economy.” The preceding is a reissue of his May 28 edition. To subscribe to “Eye on the Economy,” click here. 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.
Builder’s Tip: Shop-Made Miter Box Comes in Handy on Scaffold
If you’ve ever lugged a chop saw onto a scaffold 20 feet off the ground to cut narrow 1x moldings, you’ll appreciate this tool. With some scrap pieces of 3/4-inch plywood or pine, you can build a simple miter box that will guide precise cuts. Here’s how:
This rig isn’t limited to outdoor work, either. With a fine-toothed saw blade, you can make precise cuts in all kinds of moldings. Cutting mitered returns for window stools or head casings is tricky with a powered miter box because the short pieces want to fly all over the place. This miter box will handle that task with ease. — Robert Goodfellow, Clinton, Conn. Tips & Techniques provided by Fine Homebuilding.
To contact Fine Homebuilding, e-mail Christina Glennon.
The NAHB 2010 Publications Catalog from NAHB BuilderBooks is now available online. Presented in a virtual format as part of the NAHB BuilderBooks effort to go green and streamline delivery, the catalog includes publications and products to help building industry professionals ramp up for a successful year as the industry and the economy begin to recover. The materials in the catalog, written by industry leaders in various fields of residential construction, feature publications and products about accounting, estimating, business management, green building, sales and marketing, safety, construction codes, 50+ housing, multifamily housing, construction management remodeling and more. Some of the newest publications in the catalog include “Social Media for Home Builders,” the “National Green Building Standard Commentary” and “Paper Trail: Systems and Forms for a Well-Run Remodeling Company, Second Edition.” To view the virtual catalog, click here. Affordable Care Act Gives Small Businesses Health Care Tools and BenefitsKaren Mills, administrator of the U.S. Small Business Administration, has written an open letter to small business owners across the country advising them of a number of new tools and benefits under the Affordable Care Act aimed at helping them provide health coverage for their employees. “The most immediate benefit you should know about is the tax credit to help you pay for up to 35% of your employee premiums starting this tax year,” writes Mills. “An estimated four million small businesses may qualify for these tax credits, totaling about $40 billion over the next 10 years.” Small employers with fewer than 25 full-time equivalent employees and average annual wages of less than $50,000 that purchase health insurance for employees are eligible for the tax credit. The maximum credit will be available to employers with 10 or fewer full-time equivalent employees and average annual wages of less than $25,000. To be eligible for a tax credit, the employer must contribute at least 50% of the total premium cost. Links in the letter also provide information on state-based Small Business Health Options Program (SHOP) Exchanges that will be available starting in 2014 to small businesses with up to 100 employees. These exchanges will include web portals that provide standardized, easy-to-understand information that makes comparing and purchasing health care coverage easier for small business employees, and they are geared to reducing the administrative hassle that small businesses currently face in offering plans. Starting in 2017, businesses with more than 100 employees will be able to purchase coverage in these exchanges. For a related story that appeared previously in NBN, click here.
Three New Biztools Business Guides Available Free to Members Three new Biztools builder business guides ― created to help NAHB members manage their businesses more effectively and increase their profits — are now available free to members through the NAHB Web site. The guides offer members tips on technology, business planning, how to ensure the financial health of their businesses and more. Produced by NAHB's Business Management and Information Technology Committee and found in the business management resources section of the NAHB Web site, the new 2010 Biztools builder business guides include:
All three concise guides ― which include lists of other valuable NAHB Biztools resources ― are written by experts in the field and can be downloaded by members for free at www.nahb.org/bbg. Free Earlier Edition Biztools Business Guides Also Available The 2006, 2007, 2008 and 2009 Biztools builder business guides are all available free to NAHB members and can be downloaded from the NAHB Web site in a PDF format only. To view or download these guides, click here.
Improve Business Operations With ‘Cost of Doing Business Study’ The “Cost of Doing Business Study, 2010 Edition,” available through NAHB BuilderBooks, enables home builders to compare their business operations with like-sized builders across the country so they can fine-tune their businesses and boost profits. The study analyzes several operational business categories ― including volume, operation type and land vs. no land costs ― and enables builders to identify their strengths and weaknesses, increase efficiency, set realistic budget targets and improve business practices. The categories have been analyzed, where applicable, by average and by the top and bottom 25% of performers by net profitability. Builders can use the study to develop proven strategies to succeed in an increasingly competitive market. To view or order the “Cost of Doing Business Study” online, click here, or call 800-223-2665.
NAHB Technology Solutions Directory Offers Easy-to-Find Technology Services NAHB’s Technology Solutions Directory is an easy-to-use comprehensive directory of technology vendors that enables builders, remodelers, contractors and other industry professionals to find information on software, IT solutions and technology services for their businesses. Listings on the directory, sponsored by the Business Management & Information Technology Committee, are now available at lower prices. Software and technology solutions providers interested in being listed can sign up for:
For more information, e-mail Agustin Cruz at NAHB, or call him at 800-368-5242 x8472. The Technology Solutions Directory is solely for educational and informational purposes. Nothing in the directory should be construed as policy, an endorsement, warranty or guaranty by the National Association of Home Builders of the listed software, IT service or the software/IT vendor. The National Association of Home Builders expressly disclaims any responsibility for any damages arising from the use, application or reliance on any information contained in this directory. Integrating Marketing Campaigns Will Garner the Best Traffic From Old, New Media
“New and improved” marketing techniques have emerged with the maturation of online media. To guarantee optimal results, an online marketing campaign builds on the tenets of traditional marketing campaigns. The “improved” part comes with increased ability to track results and the ability to reach larger audiences cost effectively. Some marketing experts suggest that home builders follow a different maxim — “out with the old, in with the new.” It’s true that the new age of technology and communication have put traditional advertising and marketing in the back seat while social networking, blogging and Internet advertising seem to be driving most campaigns. Many marketers have been drawn to social media marketing as they continue to look for ways to get the most bang from their stretched-thin marketing budgets. However, if the lessons learned from years of managing traditional advertising campaigns are abandoned, home builder marketing campaigns may be headed the way of the new and improved debacle of the 1980s, New Coke — down the proverbial drain. When marketing new homes, it’s better to integrate traditional means of planning, message formation and distribution into a digital campaign to make campaigns smarter, more effective and trackable. Improving the Basics Integrated campaigns actually take marketing experts back to the basics — identifying the target market, defining messages and finding the right media mix to deliver those messages. Weaving traditional marketing into an online media campaign works to strengthen the overall marketing effort and creates a plan that can be tracked through website analytics and immediately tweaked based on results. This malleable quality — the ability to measure and react quickly as consumers respond to marketing messages and media — is perhaps the most important aspect of the improvements introduced by online marketing. Marketing experts used to say "50% of your marketing budget is wasted, if we only knew which 50%." The great news today is that all advertising can now be tracked, including traditional sources. For a few years, builders have placed unique 1-800 phone numbers and URLs on billboards. This makes it easier to gauge the effectiveness of those placements by measuring website traffic and phone calls. Now Facebook pages and Twitter handles are appearing in specialty magazine ads and other printed publications, with the goal of increasing the builder’s fans and followers on those social networking sites. Even targeting direct mail pieces with a special incentive or coupon to a specific landing page of a builder’s blog or website helps focus efforts and identify both the effectiveness of a mail piece and the stickiness of a blog. Connecting the Dots Of course, the new ways of measuring effectiveness rest on the oldest marketing basic in the book — planning. Creating a strategy with specific goals to achieve and specific messages to communicate to target audiences is instrumental in tracking and analyzing campaign effectiveness. Tracking key performance indicators on a monthly basis will show the success of each source of advertising specific to each marketing campaign. How will all this tracking help? Consider Circle 75, an Atlanta townhome community, which was recently featured in a newspaper ad in the Atlanta Journal Constitution. Analysis of the community’s website showed a small spike in direct traffic around the time the ad ran. This increase in site visitors is expected with an effective ad. It is interesting to note, however, that the same ad placed in conjunction with a banner ad on the same newspaper’s website and a landing page on the builder website resulted in more traffic and a higher conversion rate. The website tracking report of central Florida home builder Highland Homes revealed that a small portion of website traffic was coming from the Middle East. This phenomenon was a bit of a mystery for a few days until Highland Homes' director of marketing, Kathie McDaniel, MIRM, put the pieces together — the traffic was from soldiers getting ready to complete their tour of duty and return home. A targeted placement in the military base’s newsletter and direct mail pieces to areas surrounding the local military base proved an effective way to supplement online marketing with traditional marketing. Most successful marketing plans have always included a media relations component. As with other marketing activities, online outlets offer a “new and improved” means of reaching reporters. Even with reductions in print subscribers, mainstream media still look for stories to publish. With budget cuts at the papers, reporters and freelancers rely more heavily than ever on press releases and other suggestions for stories. Newsworthy articles are syndicated both online and in print and coverage in print still brings traffic, buyers and sales. One of the ways to communicate with the media is through social media. Getting reporters to follow and helping them find experts online is one of the keys to getting printed offline. Adapting to a New Market Reality It’s no coincidence that “new and improved” marketing techniques have emerged in tandem with significant shifts in the economy and on the cusp of dramatic changes to home buyer demographics. Many of the formerly tried-and-true techniques are now simply too expensive or have been replaced to entice and attract a different buyer segment. Unlike New Coke, new and improved marketing is the real thing. At no time in recent memory have home builders needed, smarter, more trackable marketing perfectly priced for shrinking budgets. In short, marketing is now, more than ever, accountable for ROI. You can’t get any newer and more improved than that. Mitch Levinson, MIRM, CSP, MBA is a top new-home sales producer and a managing partner with mRELEVANCE, an Internet marketing, public relations and social media agency focused on meeting builder and developer needs in a changing marketplace. For more information, e-mail Levinson, call him at 874-259-7312, or visit www.mRELEVANCE.com. This article originally appeared on the NAHB Sales and Marketing Channel.
“Social Media for Home Builders: It’s Easier Than You Think,” available at NAHB BuilderBooks, demonstrates the power of social media through case studies and online outlets created specifically for the home building industry. Learn how to use social media sites to build your brand, engage new and existing consumers, manage your online reputation and sell more homes. To view or purchase this publication online, click here, or call 800-223-2665. In Today’s Market, 'Think Sold!' With Help From NAHB BuilderBooks “Think Sold! Creating Home Sales in Any Market,” available at NAHB BuilderBooks, is a practical, how-to guide for developing the self-awareness, knowledge and skills needed to succeed in the competitive field of new home sales. The book covers everything from the home buying process and new home financing to strategies for making better sales presentations and sizing up the competition. It teaches readers how to overcome customers’ concerns and provides specific examples of how to explain the benefits of new home features in customer-friendly language. “Think Sold” provides insights on how to approach sales and life from a position of optimism that will create successful outcomes; how to improve upon potential customer prospecting and follow-up skills; and how to communicate effectively with various types of buyers and learn how to adjust communication strategies to increase rapport and alignment with buyers’ motives. To view or purchase this publication online, click here, or call 800-223-2665. Subscribe to Sales + Marketing Ideas Magazine for Cutting-Edge Information For additional cutting-edge sales and marketing information, subscribe to NAHB’s Sales + Marketing Ideas magazine (www.smimagazine.com). Click here to learn about membership benefits of the National Sales and Marketing Council and the Institute of Residential Marketing. NAHB Materials Promote the Value of Homeownership This June and BeyondJune is National Homeownership Month and NAHB is offering its members and home builders associations free online promotional materials ― including sample articles; radio, print and web banner advertisements; housing data and other consumer resources — to help highlight the benefits of homeownership and provide positive messages about the home building industry. With the home buyer tax credits now gone as a major impetus for housing sales, it is critical for builders to promote the benefits of homeownership. As the employment situation continues to improve, housing demand is picking up. To capitalize on this opportunity, builders are being advised to promote today’s historic low mortgage interest rates, affordable home prices and the great selection of homes to choose from. Promotional materials from NAHB also include the “Guide to Celebrating National Homeownership Month in June,” which provides tips and ideas on ways to celebrate the month, such as planning a news conference and holding a homeownership fair. Members and HBAs can distribute the homeownership month information to their local news media throughout June or anytime during the year. Customizable articles can also be placed in special tabloid sections for home shows, parades of homes or other special events. The National Homeownership Month Promotional Kit includes:
For more information on getting the message out to home owners and potential home buyers, visit www.nahb.org/homeownershipmonth; or e-mail Brooke Fishel at NAHB, or call her at 800-368-5242 x8061.
“Social Media for Home Builders: It’s Easier Than You Think,” available at NAHB BuilderBooks, demonstrates the power of social media through case studies and online outlets created specifically for the home building industry. Learn how to use social media sites to build your brand, engage new and existing consumers, manage your online reputation and sell more homes. To view or purchase this publication online, click here, or call 800-223-2665.
In Today’s Market, 'Think Sold!' With Help From NAHB BuilderBooks “Think Sold! Creating Home Sales in Any Market,” available at NAHB BuilderBooks, is a practical, how-to guide for developing the self-awareness, knowledge and skills needed to succeed in the competitive field of new home sales. The book covers everything from the home buying process and new home financing to strategies for making better sales presentations and sizing up the competition. It teaches readers how to overcome customers’ concerns and provides specific examples of how to explain the benefits of new home features in customer-friendly language. “Think Sold” provides insights on how to approach sales and life from a position of optimism that will create successful outcomes; how to improve upon potential customer prospecting and follow-up skills; and how to communicate effectively with various types of buyers and learn how to adjust communication strategies to increase rapport and alignment with buyers’ motives. To view or purchase this publication online, click here, or call 800-223-2665. What Women — the Largest Group of Home Purchasing Influencers — Want in Homes
When it comes to home buying, women make as much as 91% of home buying decisions. So builders and their sales staffs need to understand who these women are and what they need and want. Who They Are Demographic insights about women who buy homes can be gleaned from the National Association of Realtors’ 2009 Profile of Home Buyers and Sellers. Couples — married and unmarried — make up the majority of home buyers, demographically speaking and because they are treated as a unit for the study’s purposes, the research doesn’t provide much insight into the female partner’s demographic characteristics. Fortunately, however, the study does offer a wealth of demographic details about single women who bought homes in 2008. For instance:
What Women Want The psychographics of woman home buyers will also help builders meet their needs with thoughtful, nuanced solutions to the problems and challenges they face in their everyday lives. One relatively easy way to learn more about those problems, challenges and needs is to track hotly discussed trending topics through Twitter, which uses a shared shorthand that makes it easier for people to participate in and track conversations on particular topics. With Twitter, trending topics are preceded by a hash tag #.
Tara-Nicholle Nelson is a real estate broker, attorney and founder of REThink Real Estate. She is also the author of “Trillion Dollar Women,” available at NAHB BuilderBooks. For more information, e-mail Nelson, or visit her web site at www.rethinkrealestate.com. ‘Trillion Dollar Women’ Give Viewpoint, Objectives of Female Buyers Though written for the female consumer, “Trillion Dollar Women: Use Your Power to Make Buying and Remodeling Decisions,” available at BuilderBooks.com, is a valuable resource for housing professionals to gain perspective on ways to better serve and market to this growing segment of customers. According to a recent Harvard University study, women control 91% of home buying or remodeling decisions. “Trillion Dollar Women” provides builders and other housing professionals with a detailed look at the motivations, objectives and viewpoints of female buyers. To view or purchase this publication online, click here, or call 800-223-2665. ‘Social Media for Home Builders’ Available at NAHB BuilderBooks “Social Media for Home Builders: It’s Easier Than You Think,” available at NAHB BuilderBooks, demonstrates the power of social media through case studies and online outlets created specifically for the home building industry. Learn how to use social media sites to build your brand, engage new and existing consumers, manage your online reputation and sell more homes. To view or purchase this publication online, click here, or call 800-223-2665.
“Think Sold! Creating Home Sales in Any Market,” available at NAHB BuilderBooks, is a practical, how-to guide for developing the self-awareness, knowledge and skills needed to succeed in the competitive field of new home sales. The book covers everything from the home buying process and new home financing to strategies for making better sales presentations and sizing up the competition. It teaches readers how to overcome customers’ concerns and provides specific examples of how to explain the benefits of new home features in customer-friendly language. “Think Sold” provides insights on how to approach sales and life from a position of optimism that will create successful outcomes; how to improve upon potential customer prospecting and follow-up skills; and how to communicate effectively with various types of buyers and learn how to adjust communication strategies to increase rapport and alignment with buyers’ motives. To view or purchase this publication online, click here, or call 800-223-2665. June 10 Webinar to Discuss How to Sell More Homes Using Social Media ToolsIn an upcoming webinar hosted by NAHB Professional Women in Building, author and social media specialist Carol Flammer, MIRM, CMP, CAPS, CSP, along with a panel of marketing and builder experts, will demonstrate ways that home builders can use social media to build brands, engage customers and sell more homes. The webinar, “Using Social Media to Sell Homes,” will be held from 2:00-3:00 p.m. EDT on June 10 and explain to participants how easy it is to use social networking sites to spread their brand and messaging virally through the social media grapevine. Flammer and panelists Karen Dry, CGA, CAPS, CAASH, CGP, and Dina Gundersen, MIRM, CMP, will also discuss why social media marketing is a great way to target female buyers — who influence 91% of home-buying decisions. Tammie Smoot, MIRM, CMP, CAPS, CSP, MCSP, CGP will moderate. The webinar will help participants to:
The webinar will also provide valuable statistics to show why women are a crucial target market for home builders. Following the presentation, panelists will answer questions provided by webinar attendees. To submit questions in advance, visit the webinar’s LinkedIn discussion page. The webinar’s panelists and moderator bring years of diverse building industry experience to the discussion. Speakers include:
To Register To register for “Using Social Media to Sell Homes,” visit www.nahb.org/buildingconversations. The fee is $24.95 for NAHB members and $34.95 for non-members.. The webinar is part of the Building Conversations: Smart Trends, Vital Topics five-webinar series that is continuing through November. To learn about additional webinars in the series, visit www.nahb.org/buildingconversations. Webinar registrants will receive one hour of continuing education credit for all NAHB professional designations. For more information, e-mail Mary Knowles at NAHB, or call her at 800-368-5242 x8057.
“Social Media for Home Builders: It’s Easier Than You Think,” available at NAHB BuilderBooks, demonstrates the power of social media through case studies and online outlets created specifically for the home building industry. Learn how to use social media sites to build your brand, engage new and existing consumers, manage your online reputation and sell more homes. To view or purchase this publication online, click here, or call 800-223-2665.
“Think Sold! Creating Home Sales in Any Market,” available at NAHB BuilderBooks, is a practical, how-to guide for developing the self-awareness, knowledge and skills needed to succeed in the competitive field of new home sales. The book covers everything from the home buying process and new home financing to strategies for making better sales presentations and sizing up the competition. It teaches readers how to overcome customers’ concerns and provides specific examples of how to explain the benefits of new home features in customer-friendly language. “Think Sold” provides insights on how to approach sales and life from a position of optimism that will create successful outcomes; how to improve upon potential customer prospecting and follow-up skills; and how to communicate effectively with various types of buyers and learn how to adjust communication strategies to increase rapport and alignment with buyers’ motives. To view or purchase this publication online, click here, or call 800-223-2665. Green Lake Residence: Universal Design That Is Beautiful, Marketable and on Multiple Levels
When Seattle-based ZAI Inc. began designing the 3,300-square-foot Green Lake Residence, the architectural firm set out to create a home for all ages and abilities and livable for an entirelifespan. It also wanted to design a home that easily demonstrated that universal design can be beautiful and marketable to a broad cross section of the population — and that the home could be functional on more than a single level. A multi-story structure on an urban lot in Seattle’s Green Lake neighborhood north of downtown, the Green Lake Residence met all of its targeted goals and then some — by unambiguously confirming that universal design homes need not be single-level ramblers in the suburbs.
The Green Lake Residence is one of four winners of the NAHB and AARP 2009 Livable Communities Awards recognizing the development, construction and marketing of livable homes and communities that improve daily comfort, ease of use and safety for residents. The home won the award in the architect category. Entries for the 2010 Livable Communities Awards are now being accepted. Guidelines and applications are available online; and the application deadline is July 16. The home sits atop gently sloping, accessible paths that connect its main floor to a front sidewalk and its basement to a rear alley. The residence's 3-foot-wide doorways provide enhanced ingress, egress and maneuverability and well as well as level thresholds at all exterior doors and lever handles. Inside the home, three stacking closets are framed, sized and wired for a future elevator so that the house can accommodate any of the residents’ changing needs and abilities. Stairs also wrap around three sides of the future elevator shaft and are divided into short runs of five or six steps each.
In addition, tread lights illuminate each section of stairs, giving enough ambient lighting to enable the home owner or guest to safely navigate the stairs at night, even if they cannot find the light switch. Both of these features reduce the risk of falling. All the bathrooms feature curbless showers as well as base cabinets on lockable casters that roll away to allow greater accessibility. The shower controls are also offset so that a caregiver can easily operate them without getting wet.
Universal design elements in the kitchen include a wall oven mounted at an accessible height — with the controls at a maximum 48 inches above the floor. Other kitchen features include open counter space adjacent to the oven to more easily transfer food trays. A wide clearance between the island and counter increases maneuverability and a sink with a pull-out spray is near the stove for filling pots. A smooth glass energy-efficient induction cook-top was also installed to allow pots and pans to be transferred easily. Efficient radiant heating under the floor was added to create comfortable, even temperatures and eliminates the need for ducts and vents — and also making it easier to arrange furniture. An ultra- efficient boiler heats the water for both the floor heat and the domestic hot water. All thermostats and other controls are between 48 inches and 54 inches above the floor. In addition, they also boast large numbers and lettering in order to make them easier to read. To Apply for 2010 Livable Communites Awards To apply online for the 2010 Livable Communities Awards, click here. The deadline is July 16. For more information, e-mail Blake Smith at NAHB, or call him at 800-368-5242 x8583.
Find Out What 45+ Housing Buyers Want at NAHB BuilderBooks “Right House, Right Place, Right Time: Community and Lifestyle Preferences of the 45+ Housing Market,” available through NAHB BuilderBooks, will help determine the right design, home features and amenities to attract boomer home buyers in your market. Author Margaret A. Wylde guides readers through the latest survey results on this important consumer group and explains what their responses mean for today’s and tomorrow’s home building industry. To view or purchase this publication online, click here, or call 800-223-2665. Webinars Focus on Cutting-Edge Products, New Image for Universal DesignA two-part webinar series from NAHB’s 50+ Housing Council will go beyond the basics of universal design and review new techniques and products that are ageless, functional, beautiful and far more exciting than the grab bars, level door handles and ramps that can be a turn-off for prospective home buyers. In the first webinar, moderator and panelist Mary Jo Peterson, CAASH, of Mary Jo Peterson, Inc., will explain how builders and remodelers can transform their designs and make homes and communities more livable for all customers, regardless of age. John Wesley Miller, of John Wesley Miller Companies, will provide a builder’s perspective, including a discussion of costs and benefits. And Diana Schrage, from Kohler, will explore the latest and best in product design. The second webinar will discuss how to sell universal design without evoking the negative connotations of age, frailty or disability, and how to position a company as a leader in the marketplace. Moderator and panelist Tracy Lux, CAASH, Trace Marketing, Inc., will offer a consumer’s view of universal design based on her experiences having had her own home remodeled with universal design features. Lux will discuss the challenges involved with marketing and selling universal design, and offer viable solutions, including how to train sales staff to showcase these features and use the right language. She will be joined by remodeler Dan Bawden, CAPS, CGR, GMB, CGP, of Legal Eagle Contractors, and remodeler/custom builder John King, CAPS, CGR, CGP, of Rampart Homes, who will show how they communicate with their customers and how they have built their business volume by specializing in universal design. Part I
Part II
The webinars are free to members of the 50+ Housing Council and NAHB Remodelers. The cost for each webinar is $69 for other NAHB members and $100 for non-members. NAHB members can join the 50+ Housing Council for $85. For membership details, e-mail Lawrence McFadden, or call him at 800-368-5242 x8550. Separate registrations are required for each webinar — Part I and Part II. Members must log in to the NAHB web site with their user names and passwords to obtain the free or discounted rates. Find Out What 45+ Housing Buyers Want at NAHB BuilderBooks “Right House, Right Place, Right Time: Community and Lifestyle Preferences of the 45+ Housing Market,” available through NAHB BuilderBooks, will help determine the right design, home features and amenities to attract boomer home buyers in your market. Author Margaret A. Wylde guides readers through the latest survey results on this important consumer group and explains what their responses mean for today’s and tomorrow’s home building industry. To view or purchase this publication online, click here, or call 800-223-2665. EPA Denies Flexibility on Lead Paint Rule to Speed Flood Recovery Efforts in TennesseeThe U.S. Environmental Protection Agency has denied recent requests by the Home Builders Association of Tennessee and NAHB for flexibility on the newly-enacted Lead: Renovation, Repair and Painting rule in order to speed the recovery of communities in western Tennessee devastated by floodwaters early last month. Cited by Sen. Lamar Alexander (R-Tenn.) as the deadliest natural disaster in the U.S. since the election of President Obama, two-days of record rainfall damaged nearly 1.3 million homes or structures in Nashville and the region. Almost 700,000 of these were built before 1978, subjecting them to the lead paint rule. As the extent of the damage became known, home builders advised the Tennessee Department of Environment and Conservation , the EPA’s Region IV office and EPA headquarters about how the new lead paint rule was hindering emergency recovery efforts; and they pushed for flexibility on an emergency basis in order to allow damaged homes to be restored quickly and safely. Despite HBA and NAHB discussions with the EPA, the agency refused to offer any additional flexibility. In emergencies, renovations can be started by non-certified renovators, the agency noted, but certified renovators must conduct clean-up and cleaning verification and collect records for the job. In non-emergency situations, a certified renovator is required to do the work, according to the lead paint rule. “I really appreciate NAHB’s efforts and am very disappointed by the EPA’s lack of understanding and responsiveness,” said Susan Ritter, the Tennessee HBA’s executive officer. “Their failure to offer flexibility means most remodeling in pre-1978 homes will be illegal and contractors will face fines for doing their job in helping people renovate and move back into their homes after the flood.” Senators Seek to Delay EPA Lead-Rule Enforcement During Recovery In a bipartisan effort, Sen. Susan Collins (R-Maine), Sen. Alexander and others are seeking an amendment to the supplemental appropriations bill that would restrict funding for EPA’s enforcement on remodeling firms for violations of the lead rule. Alexander also has sent a letter to the EPA requesting that the agency delay enforcement action and increase certified training in Tennessee to speed the flood recovery. Lead Paint Rule Problems That Would Hinder Recovery According to the Tennessee HBA and NAHB, the floodwaters engulfed western Tennessee before enough remodelers and contractors could be trained and certified to help with the recovery efforts, as required by the lead paint rule. According to the HBA and NAHB:
Emergency Flexibility Suggestions Denied by the EPA The NAHB and the Tennessee HBA offered several suggestions to the EPA that would create more flexibility to the lead paint rule, encourage safer remodeling and allow for quick renovations during flood recovery. These suggestions, denied by the EPA, include:
NAHB and the Tennessee HBA continue to urge the EPA to review its position on emergency renovations under the lead rule and coordinate with the Federal Emergency Management Agency on recovery efforts. For more information, e-mail Matt Watkins at NAHB, call him at 800-368-5242 x8327 or visit www.nahb.org/leadpaint. Apply for NAHB Remodelers AwardsNAHB Remodelers invites its members to apply for a variety of awards each year that recognize the achievements of both local councils and individual members. The awards include: Livable Community Awards
Remodeler of the Year
National Remodeling Hall of Fame
CADRE — Council Awards for Demonstrating Remodeling Excellence
Homes for Life CAPS Project Award
Remodeler of the Month
For more information, e-mail Kelly Mack at NAHB, call her at 800-368-5242 x8451 or visit www.nahb.org/remodelerawards.
Learn How to Run a Successful Remodeling Company “The Paper Trail: Systems and Forms for a Well-Run Remodeling Company,” available through BuilderBooks.com, shows how to use proven management systems to run a successful remodeling company. The publication includes a CD containing 160 essential forms and documents — culled from successful remodelers across the country — that you can customize to suit your business needs. To view or purchase this publication online, click here, or call 800-223-2665.
'How to Find a Professional Remodeler' Brochures Available at BuilderBooks.com "How to Find a Professional Remodeler," available at BuilderBooks.com, promotes the professionalism of your remodeling business by offering a wealth of valuable advice to customers on the process of selecting a remodeler. The newly updated brochure highlights the before and after photos of the most frequently remolded rooms in the house. To view or purchase this publication online, click here, or call 800-223-2665.
June 3 Webinar Presents Multifamily Investment StrategiesAs the multifamily sector emerges from an 18-month slump, developers and property owners are starting to see opportunities for investment in existing communities. In the upcoming webinar “Investment Strategies for Multifamily Communities in Today’s Marketplace,” sponsored by NAHB Multifamily, a panel of industry experts will explore how acquisitions and upgrades can help position companies for a comeback as the economy improves. The webinar will be held from 2:00-3:00 p.m. EDT on Thursday, June 3. Attendees will learn what the big players in the multifamily industry are thinking and how they are navigating in today's marketplace — and gain insights that can help them move forward into the recovery. Panelists include Alan George, executive vice president of Equity Residential; Linwood Thompson, managing director, Marcus & Millichap; amd David Schwartz, managing member, Waterton Associates. The webinar is free to NAHB Multifamily members. The fee is $100 for other NAHB members and $125 for non-members. To Register The webinar is part of NAHB's Multifamily E-Learning series of webinars, which will continue through Oct. 28. For more information on the webinar and series, click here. To register for “Investment Strategies for Multifamily Communities in Today’s Marketplace,” click here. For more information, e-mail Jeff Jenkins at NAHB, or call him at 800-368-5242 x8292. Webinar on June 9 Details How to Be Better Prepared for LIHTC Property InspectionsAn NAHB webinar, “Getting Physical: Passing the LIHTC Property Inspection,” will provide owners, managers and compliance specialists involved with the Low Income Housing Tax Credit (LIHTC) with information on how to be better prepared for State Housing Finance Agency (HFA) inspections. The webinar will be held from 2:00-3:00 p.m. EDT on Wednesday, June 9. Webinar speakers will discuss frequently-cited deficiencies and how to remedy them before the inspection. Participants will also learn what crucial pieces of information they need to have available for the inspectors, as well as several other preparation tips that will help avoid common citations. The moderator wil be Melody Poetzsch, HCCP, SunAmerica Affordable Housing Partners, Inc. Speakers include Bill Harris, HCCP, Lane Company; and A.J. Johnson, HCCP, A.J. Johnson Consulting Services, Inc. To Register For more information and to register, visit www.nahb.org/HCCPwebinar. The webinar is free to active Housing Credit Certified Professionals (HCCPs) and Housing Credit Group (HCG) members, but they must be registered. Participants can earn one continuing education credit toward their NAHB designations. To submit webinar questions or to share previous inspection experiences, post them on the HCCP Linkedin page before June 4. For registration instructions or for more information, e-mail Carmel McGuire at NAHB, or call her at 800-368-5242 x8207. View 2010 Pillars of the Industry Awards Finalists Online Beginning June 15Finalists of the 2010 Pillars of the Industry Awards competition honoring the nation’s best in the multifamily housing industry can be viewed online beginning on June 15. Presented by NAHB Multifamily, the awards recognize superior achievement in more than 30 categories — including apartment and condo design, marketing and management, development and successful corporate leadership — and are considered a showcase of future trends and innovation. This year’s winners and finalists will be announced and honored via a new virtual awards ceremony that will feature animations and videos of the award-winning projects. Begining on June 15, finalists will be able to link their web sites to the presentation and to share it with their design and development team and their community’s residents and prospective residents. Pillars Winners Announced Later This Year Later this year, the winners in each category will be announced in phases:
To View Finalists For more information and to view Pillars finalists beginning on June 15, visit www.nahb.org/pillarsawards. Vermont Builder to Produce Homes Endorsed by Winterthur Museum
Once the home of Henry Francis du Pont, the museum is near Wilmington, Del., and has one of the most extensive and important collections of early American decorative arts in the country. Materials in its archives and architecture on the estate will serve as the design inspiration for the homes that Connor will produce. A member of the Home Builders and Remodelers Association of Northern Vermont, Connor Homes is also a member of NAHB’s Building Systems Councils. The company was the winner in two panelized home categories in the Building Systems Councils 2010 Excellence in Marketing and Home Design Awards. It received an honorable mention in a third category. Connor calls its systems process “mill-built architecture.” “In addition to pre-cutting some components, we also preassemble sections of wall that can easily be erected on site,” the company notes on its website. “We also cut and preassemble many of the important architectural elements such as entrances, cornices, returns, rake overhangs, etc., so that there will be no chance that these all-important elements will be misinterpreted or incorrectly applied at the job site.”
According to Michael Connor, the company’s founder and CEO, “Our job will be to create floor plans and living environments that transcend the needs and requirements that motivated the original floor layouts, so that we can create new layouts suited to the present era, while preserving the architectural integrity and charm of a former time.” The projects currently featured on the builder’s website are largely federal, Georgian and Greek Revival styles, and Connor said that the new designs may well include a plan inspired by mid-Atlantic vernacular homes or even early 20th century houses. Connor and a team of designers will start researching historic house plans and photos in the museum’s extensive archives within the next few weeks, and the first plans and home offerings endorsed by Winterthur are expected in the summer and fall of this year. In addition to historically accurate homes, Connor sells traditional mudroom benches, a time-tested product that is as utilitarian in today’s multi-functional drop zones as in traditional mudrooms. Photography of the Rebecca Leland Farmhouse by Jim Westphalen and Connor Homes
Webinar to Discuss How to Sell More Homes Using Social Media ToolsIn an upcoming webinar hosted by NAHB Professional Women in Building, author and social media specialist Carol Flammer, MIRM, CMP, CAPS, CSP, along with a panel of marketing and builder experts, will demonstrate ways that home builders can use social media to build brands, engage customers and sell more homes. The webinar, “Using Social Media to Sell Homes,” will be held from 2:00-3:00 p.m. EDT on June 10 and explain to participants how easy it is to use social networking sites to spread their brand and messaging virally through the social media grapevine. Flammer and panelists Karen Dry, CGA, CAPS, CAASH, CGP, and Dina Gundersen, MIRM, CMP, will also discuss why social media marketing is a great way to target female buyers — who influence 91% of home-buying decisions. Tammie Smoot, MIRM, CMP, CAPS, CSP, MCSP, CGP will moderate. The webinar will help participants to:
The webinar will also provide valuable statistics to show why women are a crucial target market for home builders. Following the presentation, panelists will answer questions provided by webinar attendees. To submit questions in advance, visit the webinar’s LinkedIn discussion page. The webinar’s panelists and moderator bring years of diverse building industry experience to the discussion. Speakers include:
To Register To register for “Using Social Media to Sell Homes,” visit www.nahb.org/buildingconversations. The fee is $24.95 for NAHB members and $34.95 for non-members.. The webinar is part of the Building Conversations: Smart Trends, Vital Topics five-webinar series that is continuing through November. To learn about additional webinars in the series, visit www.nahb.org/buildingconversations. Webinar registrants will receive one hour of continuing education credit for all NAHB professional designations. For more information, e-mail Mary Knowles at NAHB, or call her at 800-368-5242 x8057.
“Social Media for Home Builders: It’s Easier Than You Think,” available at BuilderBooks.com, demonstrates the power of social media through case studies and online outlets created specifically for the home building industry. Learn how to use social media sites to build your brand, engage new and existing consumers, manage your online reputation and sell more homes. To view or purchase this publication online, click here, or call 800-223-2665.
“Think Sold! Creating Home Sales in Any Market,” available at BuilderBooks.com, is a practical, how-to guide for developing the self-awareness, knowledge and skills needed to succeed in the competitive field of new home sales. The book covers everything from the home buying process and new home financing to strategies for making better sales presentations and sizing up the competition. It teaches readers how to overcome customers’ concerns and provides specific examples of how to explain the benefits of new home features in customer-friendly language. “Think Sold” provides insights on how to approach sales and life from a position of optimism that will create successful outcomes; how to improve upon potential customer prospecting and follow-up skills; and how to communicate effectively with various types of buyers and learn how to adjust communication strategies to increase rapport and alignment with buyers’ motives. To view or purchase this publication online, click here, or call 800-223-2665. NAHB Education Calendar
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. Search for Upcoming Courses in Your Area Or, search for specific course offerings in your area and check out upcoming conferences. Burt's Bees CEO Tells Builders to Make Their Business Model SustainableFor business professionals who are looking to establish themselves in the green home building industry, delivering green products to the marketplace won’t be enough, according to speakers at the May 16-18 NAHB National Green Building Conference in Raleigh, N.C. Companies who bill themselves as green builders can expect to be scrutinized by the public for assurances that their operations embrace the same principles of sustainability that are represented by their homes. “Green goes beyond the product offering,” said Tim Costello, chairman, president and CEO of Builder Homesite. “The purveyor of goods and services needs to be consistent with those goods and services. Builders need a congruent message. There is more that green building companies can do than build green homes,” he said. If builders don’t practice what they preach, “consumers will see the disparity,” Costello said. “Think about your construction activities, the services you use, your office and showroom practices. You have to think green internally so you will be a role model for the industry.” In a keynote address to the conference, John Replogle, president and CEO of Burt’s Bees, described the steps his company took to entirely eliminate waste from its offices and manufacturing facilities in an ongoing effort “to be the greatest personal care product company on earth.” Despite a 30% surge in its business growth in the 18 months between January 2007 and June 2008, Burt’s Bees was able to reduce the waste it was having hauled off to the landfill by 85% — from about 30 tons a month to five tons. “We made it happen by including everyone (in the company) and making dumpster diving a sport,” he said. To eliminate the remaining waste, the office was closed for a “Dumpster Day” afternoon that started with a free lunch and continued with every Burt’s Bees employee sorting the trash into three categories: items that were recycled, those that should be recycled and those that were truly trash. Today, the real trash that was found in the dumpster is composted, he said, “and we are a manufacturer who sends not a single ounce of waste to the landfill.” As a result, waste has gone “from a cost center to a profit center” and “it’s a story I can sell.” In its efforts to create “a sustainable business model,” the company occupies space that is LEED-certified; makes a product that is 100% natural, with recyclable packaging; uses 100% renewable energy and has reduced its energy consumption by 40%; has cut the use of water not going into its products in half; and is working with Habitat for Humanity to produce affordable green housing for the local community that can hold utility costs to as low as an average of $26 a month. “This is what we’re doing for people and the planet,” he said, and it’s also adding to the company’s bottom line. Replogle advised builders to make sure their “words and actions match.” This is conducive to “building trust, which is the definition of a brand: communication between you and the customer.” With concerns over personal and environmental health becoming more deeply rooted in the lifestyles of consumers, now is an optimal time for builders to go green, he said. There will be “winners and losers,” he said, “but those who are more efficient with resources will gain.” He added that, “We are now in a conserve-cash mode, but now is the time to prepare for what’s coming next.” Builders were told to take a “systemic approach” in recasting their companies and to look for opportunities where there is a market imbalance. For instance, an estimated 30% of prospective buyers may be in search of a green home, but only 2% of the housing stock is green . “Improve quality to differentiate product,” Replogle said, and be aware that “people are buying on benefits, not just price.” Also, improving the use of construction science can reduce waste, materials costs and even marketing costs. “The green consumer is your marketing evangelist,” and with good word-of-mouth in play, builders, like Burt’s Bees, can spend half of what their competitors spend on marketing. Replogle also recommended rethinking ways to restore existing structures as an alternative to demolishing them. “The healthy home environment is one of the emerging trends for where the green consumer is going next,” he said. Roughly 20% to 30% of the U.S. population can be considered green consumers, and they tend to be located more along the coasts and around major cities. “The penetration is not as deep in the center of the country, but it’s coming,” he predicted. And green consumers are well worth pursuing, in his estimation, because they tend to be better educated, research what’s on the market and are more affluent, highly loyal and less price-sensitive. They are ringing up $200 billion worth of goods annually, $50 billion of that related to green building. For information about green resources available from NAHB, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132.
'National Green Building Standard’ Available at BuilderBooks.com “The National Green Building Standard,” available through BuilderBooks.com, provides “green” practices that can be incorporated into multifamily and single-family new home construction, home remodeling and additions and site development. The standard covers lot design, resource, energy and water efficiency; indoor environment quality; and owner education. Currently the first and only ANSI-approved green building rating system, the National Green Building Standard is the benchmark for green homes. To view or purchase this publication online, click here.
'National Green Building Standard Commentary' Available at BuilderBooks.com The "National Green Building Standard Commentary," available through BuilderBooks.com and a companion to the ANSI approved "National Green Building Standard," that provides valuable insight to the intention and implementations of the practices and provisions found in the green building standard. The "Commentary" is a useful resource for any designer or builder using the ICC 700-2008 as a rating system for developing or renovating residential properties of all types to reduce their relative impact. To view or purchase this publication online, click here, or call 800-223-2665.
More Than 5,000 People Have Earned Their Certified Green Professional (CGP) Designation 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 5,000 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. For answers to questions about National Green Building Certification by the NAHB Research Center, certification to the standard or the guideline sunset, complete and submit the Contact Us form on the NAHBGreen website. Awards Recognize Leaders in Sustainable ConstructionFifteen housing industry professionals were honored at a gala dinner on May 17 at the 12th annual NAHB National Green Building Conference in Raleigh, N.C. “With these awards, we recognize the leaders of this industry,” said NAHB Chairman Bob Jones, who welcomed more than 170 guests to the event. “These builders, remodelers, developers and green advocates have blazed a path in sustainable construction — and we’re all the better for it,” he said. The winners were greeted with cheers and a bright green, recycled glass statue to take back to their offices — and in some cases, more celebrations on their arrival back home. Pardee Homes, winners of the Group Advocate of the Year award, held a balloon-filled party for its Los Angeles employees to congratulate them on their win. “At Pardee Homes we have shown that a production builder can bring green building into the mainstream and make a large contribution to energy, water and resource conservation,” said Pardee’s Joyce Mason, who accepted the award on behalf of her company. Individual Project Awards Four single-family home projects were honored:
Two multifamily projects were also honored. In the Multifamily Luxury category, the award went to Circle at Concord Mills in Concord, N.C., developed by Crescent Resources LLC of Charlotte, N.C. Gundaker Commercial Group, Inc. took the Multifamily Affordable Award for Wingate Manor, an apartment complex in Shiloh, Ill. Fishhawk Ranch, a residential subdivision in Lithia, Fla., developed by Newland Communities, was honored as the Green Development of the Year. Advocacy Awards Remodeler Philip Beere of Green Street Development in Phoenix went home with two honors: The Green Remodeling Project of the Year and Green Remodeling Advocate of the Year. Chapel Hill, N.C., builder Michael Chandler of Chandler Design-Build was honored as the Builder Advocate of the Year. Pardee Homes of Los Angeles was named Corporate Advocate of the Year. Individual Advocate of the Year honors went to John Barrows of Wainscott, N.Y. Platte County, Mo., was named the State/Local Government Advocate of the Year for its innovative green incentive programs. The Home Builders Association of Delaware Green Building Council was named the New Green Building Program of the Year, while the Raleigh-Durham-Chapel Hill, N.C., area Green Home Builders of the Triangle, hosts of this year’s conference events, took home the Program of the Year honors. Sponsored by Broan-NuTone, Dow Building Solutions and Mohawk Industries, this year’s awards event was emceed by Michele Myers, a founding member of both the Green Home Builders of the Triangle and the state green building council. “We look for inspiration from the winners of the NAHB National Green Building Awards,” Myers told attendees. “Whether they are honored for exceptional design, innovative technique or their excellent advocacy efforts, tonight’s winners are helping all of us toward a greener future.” For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132.
'National Green Building Standard’ Available at BuilderBooks.com “The National Green Building Standard,” available through BuilderBooks.com, provides “green” practices that can be incorporated into multifamily and single-family new home construction, home remodeling and additions and site development. The standard covers lot design, resource, energy and water efficiency; indoor environment quality; and owner education. Currently the first and only ANSI-approved green building rating system, the National Green Building Standard is the benchmark for green homes. To view or purchase this publication online, click here.
'National Green Building Standard Commentary' Available at BuilderBooks.com The "National Green Building Standard Commentary," available through BuilderBooks.com and a companion to the ANSI approved "National Green Building Standard," that provides valuable insight to the intention and implementations of the practices and provisions found in the green building standard. The "Commentary" is a useful resource for any designer or builder using the ICC 700-2008 as a rating system for developing or renovating residential properties of all types to reduce their relative impact. To view or purchase this publication online, click here, or call 800-223-2665.
More Than 5,000 People Have Earned Their Certified Green Professional (CGP) Designation 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 5,000 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. For answers to questions about National Green Building Certification by the NAHB Research Center, certification to the standard or the guideline sunset, complete and submit the Contact Us form on the NAHBGreen website. June 15 Webinar to Provide Strategies for Building Green in a Rebounding MarketNAHB BuilderBooks will host the webinar, “Real Strategies for Building Green in a Rebounding Market,” on the opportunities and benefits of building green in today’s market. The webinar will be from 2:00-3:00 p.m. EDT on Tuesday, June 15. All participants will receive a complimentary copy of “Build Green and Save: Protecting the Earth and Your Bottom Line,” a $22 value, and one hour of continuing education credit for all NAHB professional designations. The program will feature “Build Green and Save” author Matthew Belcher, president of Belcher Homes, a residential and light commercial green building, development and consulting firm based in St. Louis. During the webinar Belcher will discuss:
To Register To register, visit www.nahb.org/builderbookslive. Registrants will receive e-mail confirmations. Submit Questions by June 8 Participants are encouraged to e-mail questions for the webinar to ppotts@nahb.org by Tuesday, June 8. For more information, e-mail Patricia Potts at NAHB, or call her at 800-368-5242 x8224.
'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.
'National Green Building Standard Commentary' Available at BuilderBooks.com The "National Green Building Standard Commentary," available through BuilderBooks.com and a companion to the ANSI approved "National Green Building Standard," that provides valuable insight to the intention and implementations of the practices and provisions found in the green building standard. The "Commentary" is a useful resource for any designer or builder using the ICC 700-2008 as a rating system for developing or renovating residential properties of all types to reduce their relative impact. To view or purchase this publication online, click here, or call 800-223-2665.
More Than 5,000 People Have Earned Their Certifed Green Professional (CGP) Designation 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 5,000 people have earned the CGP designation to date. For more information, visit www.nahb.org/CGPinfo. Completing EPA’s Storm Water Management Survey Can Take 70 HoursThe U.S. Environmental Protection Agency has made more changes to a pair of storm water management surveys it plans to distribute to 2,400 builders and developers in July. NAHB continues to voice its objections to the questions, some of which require respondents to detail sensitive financial information. The surveys are still too burdensome as well, with the longer version expected to take about 70 hours to complete, according to the EPA’s own estimates. The agency is accepting comments from the development community through June 9. The draft is available at the EPA storm water Web site. The survey is being sent to landowners and developers to gather information on their current storm water management practices as the EPA prepares a new rulemaking designed to further reduce storm water runoff from job sites. “As sites are developed, there is an increase in areas where water cannot infiltrate, so storm water volume increases,” according to the EPA website. “The resulting storm water flows across roads, rooftops and other surfaces, transporting pollutants that are then discharged into waterways. EPA intends to propose a rule to control storm water from, at minimum, newly developed and redeveloped sites, and to take final action no later than November 2012.” The EPA will use the results as it considers five new regulations, including one that would require existing developments to retrofit inadequate storm water management controls and another that would require developers to create long-term controls designed to better manage storm water discharges well past the construction phase. To submit comments to the docket — Docket ID No. EPA-HQ-OW-2009-0817 — click here. For additional information, e-mail Ty Asfaw at NAHB, or call her at 800-368-5242 x8124.
Are You Ready for a Visit From the EPA? “Storm Water Permitting: A Guide for Builders and Developers,” available through BuilderBooks.com, provides a starting point for builders and developers to use in locating and understanding storm water permitting requirements. The publication has been prepared to help builders comply with the U.S. Environmental Protection Agency's stormwater requirements, and includes information on state permitting programs and more than 50 of the most commonly used Best Management Practices. Also included are tips on compliance, including how to handle visits from inspectors. To view or purchase this guide online, click here, or call 800-223-2665. More Time Needed to Comment on EPA Lead-Safe Rule in Commercial BuildingsNAHB has joined with the National Association of Realtors®, Building Owners and Managers Association International and 13 other building industry groups in a petition asking the U.S. Environmental Protection Agency to give stakeholders more time to comment on the agency’s proposal to extend lead-safe work practice regulations to commercial buildings. The move to regulate retail, office and other commercial properties is one of several changes the EPA has announced to the Lead: Renovation, Repair and Painting Rule, which applies to all homes and childcare centers built before 1978. “Given the complexity of the issues, the specter of a brand new regulatory program regarding renovation activities in commercial buildings and EPA’s dearth of study in this area to date regarding commercial buildings, an extension to the comment period deadline is warranted and necessary,” the group said in a May 19 letter. “We submit a 45-day extension is appropriate, with comments due on August 20, 2010,” the letter said. Specifically, the letter notes that the EPA’s proposal is based on the result of a lawsuit with advocacy groups rather than any study of potential health implications. Also, providing timely training for another huge sector of the construction industry will likely delay needed energy-efficiency and water-efficiency retrofits, the letter added. “The EPA’s overwhelming (if not exclusive) focus for almost 20 years has been on lead-based paint hazards posed to children in target housing,” the letter said. “The agency should afford the commercial real estate sector, contractors and suppliers ample opportunity to sufficiently research and consider the legal and factual bases for the EPA’s unprecedented efforts to regulate renovation and remodeling in commercial buildings and other facilities that are not child-occupied,” it said. For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132. Residential Design Challenges, Trends and Future Explored During Webinar on July 13Hear top design professionals from across the country explore current design challenges and trends and speculate on how evolving social, economic and environmental issues will impact the future direction of design in residential construction during the “2010 Home Design Trends Webinar” beginning at 2:00pm EST on July 13. Sponsored by the NAHB Design Committee, this professional development session will provide insights into new trends, products and strategies that will help attendees enhance their design and business acumen and take advantage of new market opportunities. Attendees will also learn more about what they can do to step beyond survival mode and become a leader in the home building industry of the future by implementing good design strategies. The webinar fee is $15 for NAHB members and $20 for non-members To Register To register, visit www.nahb.org/designtrendswebinar. For more information, e-mail Jaclyn Toole at NAHB, or call her at 800-368-5242 x8469. HBI Students Assemble Keepsake Statues for Ministers Attending First G20 Labor SummitAs a keepsake for attending the first gathering of its kind earlier this spring in Washington, D.C., Department of Labor Secretary Hilda Solis presented labor and employment ministers from the world’s 20 largest economies a small statue of a globe designed by Jessica Hall, a student in the union brick program at the Cleveland Job Corps Center. The design was chosen in a competition that was open to all Job Corps students. Dennis Kirby, a former Home Builders Institute instructor, worked with carpentry, brick and painting students from his facilities maintenance program at the Cleveland center to make 70 statues from the design. In addition to the keepsakes, a second project was to design a large world globe to be displayed at the Department of Labor (DOL) building commemorating the G-20 Summit. The then Interim National Director of Job Corps, Lynn Intrepidi, and her staff commissioned the Albuquerque Job Corps Center to build the globe pictured. HBI facilities maintenance instructor Gary Shavlik from the Frances Perkins program in Washington, D.C., helped place the large globe on a pedestal in front of DOL headquarters. The ministers came to the April 20-21 conference to discuss the impact of the economic crisis on employment in their countries. HBI, the workforce development arm of NAHB, is the largest national training contractor in Job Corps, placing more than 2,000 young people annually in residential construction jobs. NAHB members work through their local home builders associations to help develop the curriculum, mentor students and provide internships or work-based learning opportunities. For more information on HBI’s Job Corps programs, e-mail Nathan Kelly at HBI, or call him at 800-795-7955 x8936. Ply Gem Designed Exterior Includes NAHB Green-Approved Products
The Designed Exterior by Ply Gem demonstrates how its exterior products for the residential construction market can be combined to create a smart, sustainable and beautiful exterior. Ply Gem manufactures virtually every product needed to finish a home, ranging from traditional lap, insulated, board and batten, and shake siding, to fence and rail, stone veneer and aluminum-clad windows. All siding, stone veneer and window products included in the exterior are NAHB Research Center Green Approved and can help builders earn points toward certification to the National Green Building Standard. “To help home owners and home builders make a bigger impact while reducing their carbon footprint, Ply Gem has made a concerted effort to offer the broadest selection of energy-efficient new construction and remodeling products, including Energy Star-rated windows — the most tax-credit-qualifying windows on the market — insulated vinyl siding and low-maintenance siding and stone veneer cladding,” says Keith Pigues, senior vice president and chief marketing officer for Ply Gem. “Taking this effort one step further,” he says, “Ply Gem has combined energy efficiency with the trend of mixing a variety of exterior materials to help customers boost curb appeal, but more importantly, to help them save money and time through lower energy bills and less maintenance.” The Design Exterior by Ply Gem offers customers everything they need to enhance the aesthetics of a home, while enabling builders and contractors to differentiate themselves from their competitors and stand out from other homes in developments. Ply Gem offers a variety of cladding options from its multiple siding brands in traditional horizontal styles with varying widths and lengths — plus shake, scallops, board and batten and Ply Gem Stone.
For more information, go to www.plygem.com. Based in Cary, N.C., Ply Gem is a member of the National Council of the Housing Industry — The Leading Suppliers of NAHB. This feature is solely for educational and informational purposes. Nothing on this page should be construed as policy, an endorsement, warranty or guaranty by the National Association of Home Builders of the featured product or the product manufacturer. The National Association of Home Builders expressly disclaims any responsibility for any damages arising from the use, application or reliance on any information contained on this page. Generac Advises Preparing for Active Hurricane Season With Backup PowerWith the 2010 hurricane season predicted to be an active one, Generac is advising home owners that now is a good time to learn how to protect themselves from the danger and inconvenience of power outages. According to AccuWeather.com, the upcoming hurricane season could be one of the 10 most active on record, with Joe Bastardi, chief hurricane meteorologist, predicting a total of 16 to 18 storms, at least six of which are expected to have an impact on the U.S. coastline. One of the best ways to protect the home from dangerous power outages is to install a standby generator that automatically comes on when the power goes out. Generac has developed an easy guide for home owners to consider when choosing the right standby generator for the home. In the wake of a hurricane, power lines are often disrupted or destroyed, the manufacturer says. By knowing what actions to take, the potentially disastrous and costly effects of a power outage can be reduced. Generac offers a number of products with a range of applications, from powering a few appliances to backing up the entire house: Portable Solutions
Permanently Installed Solutions
For more information on Generac’s complete line of residential and commercial products, visit www.generac.com, or call 888-GENERAC (436-3722). Headquartered in Waukesha, Wis., Generac is a member of the National Council of the Housing Industry — The Leading Suppliers of NAHB. This feature is solely for educational and informational purposes. Nothing on this page should be construed as policy, an endorsement, warranty or guaranty by the National Association of Home Builders of the featured product or the product manufacturer. The National Association of Home Builders expressly disclaims any responsibility for any damages arising from the use, application or reliance on any information contained on this page. Endowment Funds Help Advance ‘Green Day’ for Northern Kentucky HBAWith support from the National Housing Endowment’s Challenge/Build/Grow (CBG) matching funds initiative, the Home Builders Association of Northern Kentucky in Erlanger hosted a successful “Green Day” to educate its builder and remodeler members and community participants about the National Green Building Standard and the Green Build Kentucky program. “Green Day brought builders and remodelers up to date with how to build green and get their projects rated,” said Steve Estey, the HBA’s director of development. “There were sessions on building codes for green building, on the impact of weatherization and on how to positively impact the bottom line of builders who want to grow their businesses.” In addition to the seminars, vendors presented a variety of products to the Green Day participants, many of whom did not know such products existed until the event, Estey said. The Northern Kentucky HBA, which was awarded a CBG grant last year, used the funds to advertise Green Day and to create other promotional materials leading up to the event. “The people that attended were very positive about the seminars, as well as the green product mini-informational seminar,” Estey said. “Building homes for the nation is too important a priority to neglect the education and training that will be needed to support the residential construction industry,” said Gary Garczynski, endowment chairman and 1992 NAHB president. “Even during these difficult times, the endowment is answering the call by meeting the industry's long-term challenges with bold thinking and action, through the Challenge/Build/Grow matching grant initiative as well as other grants.” About Challenge/Build/Grow Since the CBG program was launched in 2001, more than $200,000 has been awarded to state and local HBAs throughout the country. Under the program, HBAs are encouraged to find opportunities to build new partnerships in their communities to assist local programs targeting issues of importance to the industry — including job training, image building, labor shortage, educational curriculum and scholarship support. For more information about grant or scholarship opportunities and funding guidelines, visit www.nationalhousingendowment.org. NAHB-Produced Programs on the DIY and HGTV NetworksThe NAHB Production Group produces weekly television shows for consumers on the DIY network. The following is the latest lineup: "Indoors Out" on DIY
"Rock Solid" on HGTV
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 and 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. Get the BuilderBooks 2010 Virtual Publications Catalog OnlineThe 2010 Publications Catalog of NAHB BuilderBooks is available online. Presented in a virtual format as part of the BuilderBooks effort to go green and streamline delivery, the catalog includes both proven and new publications and products to help building industry professionals ramp up for a successful year as the industry and the economy begin to recover. The materials in the catalog, written by industry leaders in various fields of residential construction, will help businesses streamline their daily operations, better serve their new and existing customers, develop strategies to safeguard job sites and, ultimately, build and sell more homes. Some of the newest publications include “Social Media for Home Builders,” the “National Green Building Standard Commentary” and “Paper Trail: Systems and Forms for a Well-Run Remodeling Company, Second Edition.” BuilderBooks features publications and products about accounting, estimating, business management, green building, sales and marketing, safety, construction codes, 50+ housing, multifamily housing, construction management remodeling and more. To view the virtual catalog, click here. Industry professionals are urged to save the publications catalog link as a favorite on their computer for future reference and use. Members Can Save Big on Vacation Rentals Worldwide With Endless Vacation RentalsNAHB members can save big on their vacation rentals anywhere in the world with Endless Vacation Rentals by Wyndham Worldwide, one of the world’s largest global marketers of vacation rental properties and part of NAHB’s Member Advantage discount program. Members can choose from a vast portfolio of villas, condos, cottages and homes in more than 100 countries — while enjoying the comforts and space of home along with the amenities and services of a resort. And, with more than 200,000 vacation rentals worldwide, there’s something for everyone and every budget. To plan a vacation and to view images, information and ratings on most properties, visit www.evrentals.com/nahb. For the cost of a long weekend at a hotel, Endless Vacation Rentals guests can often stay for a week in a condo, villa or cottage. What’s more, a 24-hour concierge service can provide destination information before your departure and book activities, tee times and restaurant reservations. Endless Vacation Rentals can also provide 24/7 telephone check-in assistance, upon request. To book a vacation rental with Endless Vacation Rentals, visit www.evrentals.com/nahb, or call 877-670-7088 and mention code 20090. Vacationers will receive a confirmation e-mail within 24 business hours. 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. Endless Vacation Rentals Disclaimer: Destinations and travel times are subject to availability and confirmed on a first-come, first-served basis. Offer includes only accommodations and specifically excludes travel cost and other expenses that may be incurred. Promotional discounts and offers may not apply to all properties. Other restrictions may apply. Offer void where prohibited by law. Additional taxes and conditions may apply. GM Has $500 Offer for NAHB MembersNAHB members can get a $500* private offer toward the purchase or lease of most new GM vehicles. Visit gmfleet.com/nahb for more details. Redeeming this offer is easy. NAHB members should:
Get More Through Business Choice Through the GM Business Choice Program,† NAHB business owners can receive even more when purchasing or leasing an eligible Chevy or GMC van, truck or SUV for business use. Visit gmbusinesschoice.com for details. 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. * Offer valid toward the purchase or lease of new 2009, 2010 and 2011 model year GM passenger cars and light duty trucks, excluding Cadillac CTS-V, Chevrolet Camaro and Corvette ZR1; HUMMER, Pontiac, Saab, Saturn vehicles and medium duty trucks. Not available with some other offers. Not valid on prior purchases. The program is subject to change without notice. See your GM dealer for details. Participants must take delivery by Jan. 3, 2011. † To qualify, vehicles must be used in day-to-day operations of your business and not solely for transportation purposes. Participants must provide proof of business. Visit gmbusinesschoice.com or your Chevrolet or GMC dealer for details. Business Choice participants must take delivery between by Sept. 30, 2010. ©2009 General Motors FTD Offers Members 15% Discount This SummerFTD is offering a special 15% discount on all flowers and gifts for NAHB members this summer. Give a summer splash of color. Visit www.FTD.com/NAHB for more information and to take advantage of this special opportunity. Other Member Advantage Discounts For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to www.nahb.org/MA. . NAHB 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. |