Nation's Building News Online: March 7, 2011

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Builders Call on Congress to Improve Small Builders’ Access to Credit

With the housing production credit crisis taking a severe toll on the nation's small home building firms and threatening future job growth and the fragile economic recovery, NAHB on March 2 called on Congress to take tangible steps to improve access to credit for small builders.

"With the spigot for housing production loans cut off, and the threat that the uncertainty from new rule-making under the Dodd-Frank financial services law will further impact the ability of small community lenders to service the credit needs of our industry, it is clear that congressional action is needed to help open the flow of credit to home builders," NAHB Chairman Bob Nielsen told the House Financial Services Subcommittee on Financial Institutions and Consumer Credit.

"Without such action," Nielsen added, "there can be no housing recovery, which has major implications for our nation's ability to recover from the current economic downturn."

Builders are coming under increased pressure from lenders — including calls for additional equity, denials of loan extensions and demands for immediate repayment on acquisition, development and construction (AD&C) loans — even when their loans are current, he said.

And lenders are often citing regulatory requirements or pressure from bank examiners to reduce AD&C loan exposure as the rationale for their actions.

"While federal bank regulators maintain that they are not encouraging institutions to stop making loans or to indiscriminately liquidate outstanding loans, reports from my fellow members and their lenders across the nation suggest that bank examiners in the field are adopting a much more aggressive posture," said Nielsen.

To address this situation, NAHB has presented banking regulators with specific instances of credit restrictions, provided data showing no difference in credit access across housing markets — many of which are returning to normal conditions — and requested specific changes to current regulatory guidance.

To date, these efforts have yielded no concrete results, which is why NAHB will soon be offering a formal legislative blueprint to Congress that focuses on fixing specific instances of regulatory excess while helping to ensure adequate credit availability to home builders.

Members of NAHB’s Housing Finance Committee and staff are also in the midst of pursuing a range of other initiatives, including new funding programs and regulatory relief. Although some of these efforts are still in their beginning stages, the association is vigorously pursuing such initiatives as:

• A national debt/equity fund
• A state housing finance agency (HFA) taxable bond construction lending program
• AD&C loan insurance
• A production financing/rent-to-own program
• Reforms to the appraisals process, including:  
        1) improvements in the quality of appraisals in distressed markets  
        2) establishment of appraiser qualification requirements for valuations of new construction
        3) improvements in state oversight of appraisers and appraisal requirements

Nielsen stressed that problems in the housing sector resulting from the economic impact of the credit crunch have placed an enormous toll on the nation's economy.

The sharp decline in home building from the 2005 peak — a drop of one million units — has translated into the loss of 1.4 million construction jobs and $70 billion in wages.

Factoring in industries that provide materials and services to home builders, the total impact of the housing slump has been the loss of more than three million jobs and $145 billion in wages in all housing-related industries.

"NAHB estimates that over the next decade there will be a need for at least 1.7 million additional homes per year," said Nielsen.

"This translates into five million jobs and significant economic activity,” he said. “Without increased AD&C lending, this future demand will not be met, job loss will occur and job creation will suffer."

Nielsen delivered a similar message on the urgent need to open up the lines of credit for new housing production in a March 7 address to the board of directors of the National Association of Counties during its annual legislative conference in Washington, D.C.

Qualified Residential Mortgage

On a related topic, NAHB urged the federal regulators to take an expansive approach in defining a Qualified Residential Mortgage (QRM) in the forthcoming credit risk retention rules required by the Dodd-Frank Act.

The law requires lenders to have "skin in the game" by holding a small percentage of each loan that they sell into the secondary market.

What is still to be determined is how the risk retention rules will be established and how regulators will define the terms of certain high-quality, lower-risk mortgages that will be exempted from the risk retention requirements.

Nielsen warned that if agencies establish a QRM standard that is significantly tighter than current credit standards — which are already tougher than they have been in decades — millions of creditworthy borrowers would be deemed, by regulatory action, to be higher-risk borrowers.

"As a result, they would be eligible only for mortgages with higher interest rates and fees, which would prohibit many potential first-time home buyers from purchasing a home, especially if the definition includes an excessively high minimum downpayment requirement," said Nielsen.

Further, an overly restrictive QRM definition would also drive numerous current lenders from the residential mortgage market — including thousands of community banks — and enable only a few of the largest lenders to originate and securitize loans.

"This sharp dilution of mortgage market competition would have a further adverse impact on mortgage credit cost and availability," said Nielsen.

"We therefore urge the agencies to define the QRM's parameters in a way that facilitates a housing recovery and ensures access to conventional mortgage credit for all buyers and refinancers, while preserving high quality, empirically sound underwriting and product standards," he said.

For more information, e-mail Scott Meyer at NAHB, or call him at 800-368-5242 x8144.

Floor Plans: Systems-Built, Eco-Conscious Lakeside Retreat Born of Catastrophe

From catastrophe that befell a 100-year-old cottage rose an award-winning panelized vacation retreat along the shore of Lake Erie in Lakeside, Ohio — a model of energy efficiency and sustainable building that also retains the character of its predecessor.

Frank and Brenda Baker had spent more than 15 years enjoying summers with family and friends in their Lakeside century-old cottage. But in June 2009, a tree came crashing down on it, damaging the cottage so severely the family’s only option was to have it demolished.

The resurrected vacation cottage blends new building technology with traditional charm.

But the loss also created opportunity, and the Bakers decided to replace the cottage with a completely new, next-generation home that they could enjoy for years to come.

Lakeside Cottage 2.0 — Blending SIP Construction With Mortise and Tenon Timbers

Manufactured by Riverbend Timber Framing and Insulspan, and built by Dearth Contracting of Bellevue, Ohio, the home incorporates the latest green systems-built technology — structural insulating products from PFB Corporation for the shell, Insulspan structural insulating panels (SIPs), Advantage insulating concrete forms (ICFs) and Plasti-Fab Durofoam insulation — providing the home owners with a super-tight building envelope that keeps conditioned air in and vastly reducing energy use — and energy bills.

Construction on the cottage didn’t begin in typical systems-built fashion. In fact, it got off to an old-fashioned start with the frame built of traditional mortise and tenon timbers and erected by hand — barn-raising style.

Riverbend Timber Framing used old-fashioned barn raising techniques to install the cottage's framing.

“A timber-frame raising combines a 500-year-old tradition of fine craftsmanship with 21st-century technology,” said Frank. “It’s an amazing process, and you don’t get the chance to see it too often.” 

Updating the Old With a New, Open Floor Plan

An open floor plan was incorporated to enhance usable space.

The new floor plan updated the lower level by opening the kitchen to the living and dining area to create a sunlit great room that leads to additional dining space on a covered patio.

The new three-bedroom cottage also reused materials from the original home wherever possible. During demolition, the Bakers salvaged the staircase, banister and spindles; bead board paneling; red pine floor planks; interior doors; bathroom fixtures and some kitchen cabinets — all of which were installed in the new home.

Not Only Blending Old and New — Reusing Old

Designed by Dennis Feltner, an advocate for eco-friendly design, and built by Dearth Contracting contractor, an NAHB Certified Green Builder, a preliminary assessment of the construction plans indicate that the new should qualify for certification under the National Green Building Standard at the Emerald level, the highest and most demanding level offered.

The Bakers have renamed their award-winning and energy-efficient replacement home the Lakeside Green Cottage.

Rafters and salvaged flooring helped retain the character of the original vacation retreat.

Plenty of building materials, including this bannister, were salvaged from the original cottage and resused to finish its green replacement.

Blueprints Click for larger image.

Timber frame plan Click for larger image.

Sustainable Features and Specifications

Designed for Efficiency Enhanced floor space through liberal use of open space Minimized wall and roof area to floor space ratio Oriented roof for maximum year-round solar gain for photovoltaic power generation and solar hot water heating Roof overhangs designed for summer shading and winter heat gain Underground power feed to minimize hazards  Storm/storage cellar  Handicap accessible first floor bath and first floor bedroom option to enhance long-term use Construction Techniques Recycle bins segregated waste during construction Re-usable materials salvaged during teardown Structural insulated panels (SIPs) for walls — 6"; and roof — 10" Recyclable EPS foam core Prefabricated in factory to minimize waste Optimized SIP yield by computer layout provided airtight construction Insulated Concrete Form Foundation Reduced concrete required with traditional construction Provides R-20 insulation and airtight construction Heat Recovery Ventilation (HRV) System Provides fresh conditioned air supply Provides bath ventilation Recovers heat from exhaust air Paddle fans used in lieu of air conditioning Salvaged Items Heart pine tongue and groove flooring from previous cottage Interior doors and front door from previous cottage Stove from previous cottage Claw-foot tub, pedestal sink and toilet from previous cottage Douglas fir timber frame Door hardware Eco-Conscious Items VOC-free interior paint High-performance low-e insulated windows Engineered wood construction Low volume flush toilets Rain barrel to capture rain for irrigation Energy Star refrigerator, dishwasher, clothes washer and dryer, and flat screen television Tankless, high-efficiency water heater Low-flow shower and faucet heads Metal roof of recycled steel Water-barrier house wrap Felt paper interlayer with shingles for durability

Building Leaner Could Be a Matter of Survival in Challenging Housing Market

In a housing market that is beginning to show some signs of life and an economy that continues to challenge consumers, lean building methods are the way to go for builders who need to gain better control over their construction costs, Scott Sedam, president of TrueNorth Development, said at the NAHB International Builders’ Show in Orlando in January.

The savings can be dramatic.

Over the past four years Sedam’s company has facilitated 65 implementations of the lean building approach. More than 700 builders have been enlisted in that process — including all levels of personnel and every department in the organization — not just the senior managers who ultimately are responsible for the waste in the first place.

Also on board were more than 1,400 suppliers, trades, distributors and manufacturers — who turn out to be a greatly underestimated source of savings when they are encouraged to look for improvements in their building products and processes, which is an opportunity for them to fatten their profits as well.

Using a highly structured process, more than 10,000 suggestions for building more efficiently have been considered.

As a result, “more than $125 million in improvements have been identified to date and we know we are just scratching the surface,” said Sedam.

For the most part, lean building hasn’t been taken seriously by the housing industry, but a brutal housing downturn that has decimated the ranks of U.S. builders by as much as 50% to 60% could be the opportunity that brings it to prominence.

With factory capacity down as a result of the recession, adding an even greater sense of urgency will be impending product shortages which, along with serious labor shortfalls, could be only a year and a half or so away, he added.

“A minimum of $1 out of every $3 spent in product and process is waste,” said Sedam, including 15% to 20% in wasted materials and another 20% to 25% wasted in the building process.

“Product waste is far easier to identify, quantify and eliminate than process waste,” he said, because “the product is tangible.” But “for every $1 you find in product, you will find $1.50 in process.”

For instance, he estimated there are 50 unnecessary trips to the average house from the 30 to 40 supply and trade companies that typically come onto the construction site. At an average cost of $200 per trip, that pencils out to $10,000 worth of unneeded visits.

“Lean design is a highly structured process,” Sedam emphasized, “and it can’t be done informally.” An ad hoc approach may yield 10% to 15% in savings, but “a year later you still are working on the same problems.”

Among the many principles of building green:

• “For the largest profit, use the smallest possible number of suppliers and trades,” he said. “Sole sourcing can be remarkable, but you have to have the absolutely right trade to work with.”
  
  Each extra trade drives up the complexity of the job exponentially, he said.
  
  
• Be wary of the lowest bid because it rarely results in the lowest cost.
  
  State workers comp insurance payments are worth ferreting out, he said, because the trades who are paying the lowest premiums tend to be the safest, and that is a predictive factor in the quality of their work. “Accidents cost you more,” he said.
  
  
• Measure the process, in close to real time.
  
  Sedam will go to a builder’s office and ask to be shown each phase of production for the year, with maybe five average cycle days in each phase and for different communities and different models.
  
  If the amounts of time involved are “all over the map, it really tells you something,” Sedam said. “It should take the same number of days no matter what you build. Build them on the same schedule, build them all fast, everything is predictable.”
  
  
• At least monthly, audit the materials that are dropped off at the site.
  
  “You need to audit things,” he said. For example, problems with cracking concrete can be remedied by recording the temperature and slump rate of the material when it is delivered. “It takes three minutes. Write down the measurements, give a copy to the driver and send it to the concrete company. Whether it is a good temperature or not, they know you are paying attention.”
  
  
• Avoid backcharges, which “are a poor substitute for good management.”
  
  He cited the example of a company that produces 500 units a year that had no backcharges in 2010 because it was able to manage the process.
  
  “You need to have the right suppliers and rates and the right people managing them,” he said.
  
  Backcharges cost money, create a “he said, she said” situation and instigate consternation and arguments. “Continual backcharging is indicative of problems in the company, and it creates ill will and problems.”
  
  
• Monitor how materials are being used because waste is rampant everywhere — in concrete, wood, engineered wood, brick, block, siding, roofing, et. al.
  
  In a 1995 study of lumber usage, construction management students measured every board inch of material that went into comparable homes in Chicago and Detroit. The yield on the wood in the Chicago home was 85.1%, compared to 74.9% in the second home — a $1 million difference in value between the two.
  
  “Measure the yield on the lumber that goes into your house,” he advised.
  
  
• Avoid high-sided dumpsters, and at least use ones with low sides. “They actually create waste, they bring things in,” he said.
  
  Sedam said he had participated in an exercise in which 30 workers emptied out a 30-cubic foot dumpster on the site, sorted the contents and found $1,600 worth of usable materials.
  
  
• Builders need to count their process numbers.
  
  The wasteful cutting of drywall is a prime example. Excluding the garage, builders should determine the sheetrock ratio of their homes — the installed square feet of material divided by the square feet of the living area.
  
  There will be differences and where the ratio is higher, builders should look for ways to bring it down. “Look at how you are doing the design,” he said. The difference in the drywall needed for a 12' square bedroom versus a room that is 12', 2" can represent $500 in savings.
  
  Also, “look at the ratio of the amount of board purchased over the amount of board actually installed in the house,” and find ways to reduce the waste.
  
  
• Spend time and money on getting the plan right up front because 50% of waste in product and process is designed into the house.
  
  Construction drawings should be site-specific and fully detailed. “With today’s technology, not having great plans is inexcusable,” and it ends up costing significantly more in expenses. “Fully detailed plans pay off 50 to one, 100 to one,” he said.
  
  Also, “you cannot eliminate waste designed-in up front, until you understand and measure the costs down-stream.”
  
  
• Hardly anyone does it, but a post-construction review and analysis with suppliers and trades “is essential,” he said. “Look at how to improve the plan and take waste out of it. Do every house individually before the drywall.”

Sedam also told builders that they need to keep in touch with their customers though the sales staff. “You have to have feedback about what the customer wants and will pay for.”

Builders also need to keep in mind that “dumbing down houses, making them ugly and hard to sell, is not lean. Lean is about value.”

New NAHB Document Covers How to Detect and Remediate Problematic Drywall

A new resource for builders and remodelers looking for answers on the critical question of how to detect and remediate problematic drywall imported from China in recent years was unveiled by NAHB last week.

NAHB members received a preview of the guidance on drywall during a March 1 webinar.

The document — “Imported Problematic Drywall: Identification Strategies and Remediation Guidelines” — is now available to association members and will be released to the public on March 16.

The publication represents the culmination of more than a year of intensive research, testing, analysis and evaluation by two firms — Marsh Risk Consulting and Building Health Sciences — under the auspices of NAHB’s Chinese Drywall Task Force.

The task force was created to identify a permanent solution to problems with drywall emitting or off-gassing corrosive compounds, which can lead to the blackening of copper electrical wiring and air conditioning evaporator coils and can cause mechanical, electrical and electronic failures.

“As we all know, the downstream effects of these problems includes widespread property damage, huge financial losses, hundreds of lawsuits and legitimate concerns about possible health effects from living with these unpleasant airborne compounds,” said NAHB First Vice Chairman Barry Rutenberg, who moderated the webinar.

The goal of the task force, he said, was to:

• Help builders determine whether problematic  drywall is present in a home
  
  
• Provide information on health risks that residents may encounter
  
  
• Outline strategies for partial and total remediation that are safe, cost-effective and based on sound science
  
  
• Establish clearance procedures to confirm that problematic drywall has been removed from the home

“Most importantly,” said Rutenberg, “in a landscape now cluttered with untested products, devices and procedures purported to resolve drywall problems, NAHB based these guidelines on scientifically proven technologies, materials, means and methods for remediating drywall in single-family homes, condominiums, apartments and townhomes.”

Rutenberg noted that the NAHB’s guidance document does not represent the only approach to remediating the problem, and that builders might decide to follow different guidelines that are less inclusive or that include additional measures.

The guidance is also not intended to set minimum or maximum requirements for remediation, he said.

It is not intended to be used to determine the effectiveness of remediation efforts that have already been completed, he added, and it is not intended to be used in commercial buildings.

Among some of the noteworthy recommendations contained in the document:

• Replace all low-voltage, signal and data wiring; all switches and receptacles; and all smoke, fire and carbon monoxide alarms and life-safety systems.
  
  This follows interim remediation guidance issued by the Federal Interagency Task Force on April 2, 2010, said Katherine Ann Cahill, managing director of Global Product Risk Services for Marsh Risk Consulting.
  
  To date, the government task force has not made available the results of testing on wiring and is probably still working on them, she said.
  
  “NAHB recommends builders pay close attention to these test results when they are announced and take them into account when deciding what steps to take with respect to high-voltage electrical wiring,” Cahill said.
  
  “We expect we will hear something within the next six months,” she said, “but stay tuned.”
  
  
• “If the home was built between 2001 and 2008 and it has been confirmed that problematic drywall is present throughout the entire home, total remediation is the only viable option even if the home contains some non-problematic drywall,” said Cahill.
  
  Selective remediation is an option if the problem drywall is found in a limited portion of the home that can be isolated, she said.
  
  
• Conduct clearance testing after the drywall has been removed and the house has been cleaned and aired out but before it is built back, said Dr. Barbara Manis, chief medical officer of Building Health Sciences.
  
  This will determine whether the remediation has been adequate, Manis said, or if further cleaning is needed.

“Clearance testing is extremely important for the peace of mind of both the remediation contractor and the home owner,” said NAHB Chinese Drywall Task Force Chair Ray Kothe.

Kothe also thanked the task force members, NAHB staff members and the consultants for their efforts.

Other task force members include John Ainslie, Jay Carlson, Carl Chretien, Sr., John Cochenour, Phil Hoffman, Tom Mason, Executive Officer Council liaison Eric Person and Tom Kenney, of the NAHB Research Center.

To access the document, go to www.nahb.org/drywallguidelines.

For more information, e-mail David Jaffe at NAHB, or call him at 800-368-5242 x8317.

NAHB Staying on Top of a Long List of Critical Regulatory Issues

Even as it concentrates on key housing finance issues, NAHB is keeping a close eye on environmental and health and safety regulations that can have a dramatic impact on home builders, remodelers and developers across the country.

“Right now we’re putting a lot of resources into issues like credit for acquisition, development and construction (AD&C), attacks on the mortgage interest deduction and the future of the mortgage finance companies Fannie Mae and Freddie Mac,” said NAHB Chief Executive Officer Jerry Howard.

“But that’s just part of NAHB’s responsibility as ‘the voice of the housing industry.’ We also have a team of dedicated professionals who monitor and work closely with the Environmental Protection Agency, the Occupational Safety and Health Administration, the Fish and Wildlife Service and other federal agencies to make sure the housing industry's perspective is heard as regulations are created or revised,” Howard said.

NAHB staff members engage government agencies in different ways and address various aspects of the regulatory development process — including legislative, legal and regulatory concerns.

The Legislative Affairs team works with lawmakers in Congress to support, oppose or shape legislation that provides authority for new regulations and guides the regulatory development process.

NAHB’s Environment, Health and Safety team is actively involved in the regulatory process — meeting with government staffs, writing comments on proposed regulations, providing research to help regulators understand the effects of regulations on residential construction activities and making sure that rules are not developed in a vacuum.

And when government regulations go too far, or when these agencies are under pressure to create unnecessarily costly rules, then NAHB’s Legal Affairs team provides legal support for the industry perspective, even challenging rules in court when necessary.

Issues that NAHB is involved in at this time include:

• NAHB members with active construction sites are being sought to assist in data collection efforts on the turbidity — or cloudiness — of storm water discharges from construction sites. The field data will help NAHB assess whether a numeric turbidity limit expected to be proposed shortly by the EPA and finalized in June can be consistently achieved by builders and developers using passive control systems.
  
  
• Four NAHB members have been named as small entity representatives (SERs) by the small business advisory review (SBAR) panel assisting with the renovation, repair and painting for commercial and public buildings rulemaking. SBAR panels are convened for proposed rules that have an economic cost of more than $100 million and affect a significant number of small businesses.
  
  
• The U.S. Army Corps of Engineers announced in the Feb. 16 Federal Register that it is seeking comments on the reissuance and modification of existing nationwide permits (NWPs) and the possible issuance of two new permits dealing with commercial aquaculture activities. This is the first step in reissuing and updating the NWPs, which were issued on March 12, 2007 and will expire on March 18, 2012. The comments are due by April 18 and will be followed by 45-day comment periods on regional conditions for the new and modified NWPs proposed by each Corps district.
  
  
• The Environment, Health and Safety team is involved in development of new regulations governing development and construction in the Chesapeake Bay Watershed. It is especially important to ensure that the new regional standard is sensible and feasible because this rule may soon be used to guide rulemaking for watersheds across the country.

Other areas of engagement in the regulatory arena include:

• Storm water runoff from construction sites
• Effluent limitation guidelines
• Climate change
• Clean Air Act
• Lead-based paint
• Injury and illness prevention programs
• Fall protection
• Crystalline silica
• Recording of musculoskeletal  disorders (MSD) injuries

This is just a sampling of the wide array of regulatory issues in which NAHB is actively and closely engaged.

“It’s important to be aware that NAHB is not against government regulation simply because it is regulation,” Howard said. “In fact, NAHB is a leader in developing new techniques and technologies to address environmental impacts and workplace safety and health in the residential construction industry. But any regulations should be feasible, cost-effective and based on sound science and demonstrated results.”

A good way to keep track of NAHB’s efforts in the regulatory arena is to read EH&S Monthly, produced monthly by NAHB’s Environment, Health and Safety team to keep members informed of the issues and the potential impact of regulations on the residential construction industry.

Picky First-time Buyers Losing Out on Great Housing Deals

New research suggests that today’s first-time home buyers may be passing up great deals because they insist on flawless “move-in ready” houses requiring little or no changes. A survey by Coldwell Banker Real Estate of 300 first-time buyers found that a startling 87% said that “finding a move-in ready home is important” to them. Zillow, a giant Seattle-based online real estate research and data company, suggests that any shift by consumers toward greater attention to home details may be an inevitable byproduct of today’s higher downpayment minimums and more stringent loan qualification requirements. According to Zillow researchers, the median downpayment in 11 major metro areas has jumped to 20%, compared with “close to zero” in some of the same areas just five years ago. In other words, first-time buyers today have to put a huge effort into coming up with their downpayment, and they want to make sure that equity investment goes into the house that will need the fewest and least-costly upgrades. Some agents suggest that buyers today tend to be hipper and more sophisticated about home design, furnishings, floor materials, countertops and appliances because they are exposed to far more information on cable TV than earlier generations. (www.washingtonpost.com)
Washington Post, (3/4/11); Kenneth R. Harney

Without Loan Giants, 30-Year Mortgage May Fade Away

The 30-year fixed-rate mortgage loan, the steady favorite of American borrowers since the 1950s, could become a luxury product if the federal government shuts down the housing finance giants Fannie Mae and Freddie Mac, housing experts on both sides of the political aisle say. Interest rates would rise for most borrowers, but urban and rural residents could see sharper increases than the coveted customers in the suburbs. Lenders could charge fees for popular features now taken for granted, like the ability to “lock in” an interest rate weeks or months before taking out a loan. The question is whether the government should preserve the benefits that the companies provide to middle-class borrowers, including lower interest rates, lenient terms and the ability to get a mortgage even when banks are not making other kinds of loans, or whether it should pull back, letting the market dictate, price, terms and availability. (www.nytimes.com)
New York Times (3/3/11); Biny Amin Appelbaum

Remodeling Now to Avoid Accessibility Problems Later

With about 80% of Americans age 45 and older preferring to “age in place,” according to an AARP study, manufacturers and contractors are responding with new universal design products and technologies. “Boomers are more likely to improve than move,” said Dan Bawden, a Houston contractor. Building or remodeling with wider doorways, improved lighting, stepless entries and kitchens with waist-level access and pull-out storage often saves money in the long run, he said, adding, “An assisted living facility costs $60,000 a year and up — or you can spend that amount once and stay in the house you love for years.” Until recently, universal design was a neglected approach in the design industry. “Even 10 years ago, products for bath and kitchen were very institutional-looking with a lot of stainless steel and the stigma of disability,” said Rosemary Bakker, an interior designer and the author of “The AARP Guide to Revitalizing Your Home.” “Now, U.D. is getting cutting edge, even trendy.” Manufacturers have introduced grab bars that glow in the dark, furniture with higher seats and firmer cushions and rising-wall bathtubs with cascading waterfalls (which sell for $9,000.) In the last year, Masco Cabinetry, which is based in Ann Arbor, Mich., and makes kitchen and bath cabinets, countertops and vanities, has added models that reduce bending or reaching and provide easier storage access. (www.nytimes.com)
New York Times (3/3/11); Elizabeth Pope

Half a Dozen Arrested in Theft Ring

Police in Portland, Ore., arrested nearly half a dozen people who they say stole millions of dollars worth of merchandise in one of the biggest theft rings they said they’ve ever come across. The home belonging to the theft ring leader is jacked up about 12 feet in the air by wooden blocks, house jacks and steel I-beams stolen from construction sites and suppliers across the metro area over the past couple of years. Police said the ring leader would choose targets, his accomplices would steal the items and then he would sell them online. Investigators said he was putting some of the stolen items into his home to renovate it. “This particular suspect would surveil businesses for items that he wanted to convert to his own use or steal and then sell,” said detective Jeff Bender with the Portland Police Bureau. “And in this case, these windows were of particular interest to him because of his building project that he was trying to advance.” (www.katu.com)
KATU (2/17/11)

Vacation Home Purchases on the Upswing

Sales of vacation homes have begun to rebound from their lowest point in 2008, according to the National Association of Realtors®. And as travel also starts to rebound, the idea of owning a time share, fractional or vacation home is creeping back into the minds of many consumers. Second homes can be a house, condo or apartment located in any part of the world. While it’s a bigger upfront investment than a time share or fractional ownership and the owner is responsible for ongoing maintenance, it can be rented out to other vacationers to generate income. According to HomeAway.com, the average second home owner rents out their property about 20 weeks a year, generating more than $35,000 in rental income annually. The company also reports that about 32% of second home owners generate enough rental income to cover 75% to 100% of their mortgage payments. (http://beaconnews.suntimes.com)
Beacon News (2/27/11); Sun-Times Media Group

Does Your Condo Pass the Test? Deals Die Under Stress

In the Chicago area, there are plenty of condo buildings that lenders won’t touch. Among the deal killers: too many renters in a building, pending litigation, inadequate association reserves and delinquent assessments. Those are some of the criteria lenders must look at in order to sell the loan to Fannie Mae or Freddie Mac or have it insured by the Federal Housing Administration, the first choice for many first-time home buyers. FHA use to offer “spot” loan approvals on individual condo units, but now entire buildings need to be FHA-approved. With its attractive 3.5% downpayment requirement, new and existing developments have lined up to apply for that certification, for which they have to reapply every two years. In Illinois since August, 61 buildings — from three flats to high-rises — were denied FHA approval for reasons ranging from outstanding litigation to the use of more than 25% of the building for commercial purposes. The situation is slowing any recovery in the condo market, often the housing of choice for first-time buyers. Owners in troubled buildings aren’t able to refinance, and sellers who want or need to sell find thin ranks of buyers. Last year, 42.5% of all initial foreclosures in the six-county Chicago area were against condos. (www.chicagotribune.com)
Chicago Tribune (2/28/11) Mary Ellen Podmolik

Geithner Seeks Two-Year Window on Housing Finance Overhaul

During a congressional hearing on March 1 to examine the Obama Administration’s recent proposal to gradually phase out Fannie Mae and Freddie Mac, Treasury Secretary Timothy Geithner said that the white paper laid out by the White House on Feb. 11 to reform the housing financing system would “fundamentally transform the role of government in the housing market.”

“We believe the government’s primary role should be limited to several key responsibilities: consumer protection and robust oversight; targeted assistance for low- and moderate-income home owners and renters; and a targeted capacity to support market stability and crisis response,” said Geithner.

The announcement of the White House plan is the first major step in what is likely to be a prolonged process.

Over the past month, NAHB has been in constant contact with members of Congress on this critical issue.

“Given the fragility of the U.S. housing market, it is essential to have a strong government backstop to ensure a stable and adequate supply of credit for home buyers and renters and to maintain a liquid secondary mortgage market,” said NAHB Chairman Bob Nielsen.

“Without this access to credit, consumers will be subject to higher rental costs, mortgage interest rates and fees at a time when the economy can least afford it,” Nielsen said.

Testifying before the House Financial Services Committee last week, Geithner acknowledged that the Administration and Congress risk imperiling economic recovery if they do not proceed cautiously.

He did, however, establish a timetable for the enormous undertaking of reforming a badly battered housing finance system, telling the committee that the Obama Administration wants Congress to approve legislation within two years.

Failing to meet that deadline, he said, would present serious unresolved problems to the financial markets.

The Administration last month outlined three approaches for further consideration:

• Option one would establish a privatized system of housing finance — with government insurance limited to assistance by the Federal Housing Administration, U.S. Department of Agriculture and Department of Veterans Affairs for a narrowly targeted group of borrowers.
  
  
• Option two would follow a similar route but provide a government guarantee for private mortgages that would only be triggered during times of economic stress.
  
  
• Option three would permit the government to provide reinsurance for the securities of a targeted range of mortgages that are already guaranteed by private insurers. The government would charge a premium to cover future claims and would not pay claims until private guarantors have been wiped out.

In his appearance before the congressional panel, Geithner refused to endorse any of the three options, but he acknowledged that the “cost of a mortgage is going to be higher in the future” under any of these choices.

As negotiations between the Administration and Congress continue, NAHB will remain firmly engaged in the debate, working with policy makers to develop a framework to ensure a stable, reliable and affordable supply of credit for housing.

For more information, e-mail Scott Meyer at NAHB, or call him at 800-368-5242 x8144.

Co-Sponsors Urged for House Resolution Supporting Mortgage Interest Deduction

NAHB is urging members of the House of Representatives to show their support for homeownership and the mortgage interest deduction by co-sponsoring H. Res. 25.

"This resolution acknowledges the importance of homeownership to individual households, the economy and the nation," said NAHB Chairman Bob Nielsen.

The resolution also states that the mortgage interest deduction "may well be the most important component of housing-related tax policy in America today" and should not be further restricted, he said.

"The mortgage interest deduction has been a cornerstone of the nation's housing policy for almost a century, and it is vital to homeownership and healthy housing markets," Nielsen added.

"NAHB commends Rep. Gary G. Miller (R-Calif.), who introduced the resolution, and the more than 40 co-sponsors for their commitment to homeownership and support for the deduction," he said.

Eliminating or restricting the mortgage interest deduction would erase the emerging stability in the nation's housing markets, increase the cost of homeownership, make the tax code less progressive and essentially raise taxes on the middle class.

Ultimately, it would put the mortgages of more home owners underwater, fuel more foreclosures and impede job creation in the housing sector, where unemployment is about twice the national rate.

Additionally, removing or scaling back the mortgage interest deduction would shrink the local tax base of many communities, prompting cash-strapped state and local governments to cut jobs and essential services or raise taxes.

"The nation's home builders strongly believe that Congress should not tamper with the mortgage interest deduction,” Nielsen said. “Members of the House of Representatives should demonstrate their belief in the value of homeownership and co-sponsor this important resolution."

He added that, "Americans overwhelmingly oppose any action by Congress to tamper with the mortgage interest deduction, according to a nationwide survey of likely voters that NAHB commissioned last fall."

In that survey, almost 80% of the people surveyed said they support retaining federal tax incentives to promote homeownership.

“I encourage people who support the mortgage interest deduction to contact their representatives and ask them to co-sponsor H. Res. 25," Nielsen said.

"Members of Congress need to know that there is widespread support for the mortgage interest deduction and that their constituents do not want it to be eliminated or restricted."

Additional information about H. Res. 25 and contacting members of the House of Representatives is available in the "Take Action and Stay Connected" section of NAHB's mortgage interest deduction website, www.savemymortgageinterestdeduction.com.

House Moves Abolition of New 1099 Tax Reporting Requirements One Step Closer

By a vote of 314 to 112, the House on March 3 passed legislation supported by NAHB to repeal a burdensome tax paperwork requirement that could cost small businesses thousands of dollars each year.

H.R. 4, the Small Business Paperwork Mandate Elimination Act of 2011, would strike all new expanded IRS Form 1099 reporting requirements for small businesses and owners of rental real estate. The measure would make up for lost Treasury revenues by reducing any overpayments in health insurance exchange subsidies established under the new health care law.

Under the Patient Protection and Affordable Care Act approved last year, starting in 2012 businesses will have to file an IRS Form 1099 for each vendor from whom they spend more than $600 in goods or services in any given tax year.

While all small businesses will be hit by the broader 1099 reporting requirements next year, the Small Business Jobs Act of 2010 stipulates that independent landlords as of Jan. 1, 2011, must now submit 1099s for transactions involving the purchases of services from non-corporate entities totaling more than $600 in a year.

Prior to the House action, NAHB sent a letter to House members designating support for H.R. 4 as a “key vote” because of its importance to the housing industry.

The letter stated that these new information reporting requirements would cost small businesses “thousands of dollars per year” and harm their ability to hire new workers to expand and grow because they would be forced to spend money on accountants and bookkeepers to comply with the law.

The Senate last month adopted an amendment to the Federal Aviation Administration reauthorization bill (S. 223) to strike the 1099 reporting rules from the Patient Protection and Affordable Care Act.

The amendment requires the Office of Management and Budget to rescind $44 billion in discretionary funds to offset the cost of repeal.

Under the Senate approach, independent landlords would still be subject to the new 1099 rules.

The House and Senate must still reconcile their bills and agree on a single plan for paying for the repeal. To resolve this impasse, it is anticipated the debate will move to a conference committee.  

NAHB continues to urge Congress to repeal all the expansions of the 1099 requirements.

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 J.P. Delmore at NAHB, or call him at 800-368-5242 x8412.

White House and GOP Continue to Grapple With Budget Compromise

President Obama on March 2 signed into law a two-week continuing resolution to fund the government through March 18.

The stopgap spending measure cuts $4 billion out of the current fiscal year 2011 funding levels, with most of those savings coming from reductions to programs that the White House had already targeted and by eliminating nearly all remaining earmarks in the current federal budget.

Both chambers approved the resolution by an overwhelming margin — 335 to 91 in the House and 91 to 9 in the Senate. 

The House and Senate Democratic and Republican leadership began top-level talks with Vice President Biden on March 3 to discuss how to break the impasse between the chambers over funding levels for the remainder of the fiscal year, which runs through Sept. 30.

The House last month approved a spending bill (H.R. 1) for fiscal 2011 that would cut $62 billion in spending and slash funds for implementation of the health care law and for many other programs that are supported by the White House.

The Center on Budget and Policy Priorities, a think tank that analyzes federal budget priorities, estimates that implementing H.R. 1 would require a 25% cut to non-security spending for the remainder of the fiscal year, with a 39% reduction to programs in the Agriculture spending bill, a 37% cut to Transportation-HUD programs and a 26% decrease to Labor-HHS-Education programs and activities. 

Many Senate Democratic leaders strongly objected to the House-passed bill, saying that it makes cuts that are too drastic and in the wrong places. It is generally understood at this point that House bill H.R. 1 will not be the final product sent to the President, although House lawmakers will continue to push their Senate colleagues to force votes on the measure on the Senate floor. 

Simultaneously, Senate Democrats have indicated that they will work with the White House on a list of ideas for budget cuts and send a proposal that would fund the government at reduced levels through Sept. 30 to House Republicans.

While policy makers continue to grapple with the unfinished fiscal 2011 budget, the White House on Feb. 14 submitted its fiscal 2012 budget request to Congress. When work is finally completed on the fiscal 2011 budget, lawmakers are expected to immediately pivot and begin crafting a budget for the next fiscal year.

For more information, e-mail Jenna Hamilton at NAHB, or call her at 800-368-5242 x8407.

Congress Urged to Look Out for Small Businesses in Corporate Tax Reform

NAHB last week called on Congress not to increase taxes on small businesses organized as pass-thru entities, such as S corporations and limited liability corporations.

In written testimony submitted to the House Ways and Means Subcommittee on Select Revenue Measures for a hearing on small businesses and tax reform, NAHB stated that 80% of the businesses that belong to the association are organized as pass-thru entities or sole proprietorships.

Eight-six percent of NAHB builder members have less than $5 million in gross receipts.

Highlighting the importance of small builders to the economy, NAHB analysis shows that the construction of an average single-family home creates three jobs; $90,000 in federal, state and local taxes; $145,000 in wage income; and $86,000 in business income.

Congress has begun what will be a multi-year effort on whether — and how — the tax code should be reformed.

Although it is unlikely that any substantive action on tax reform will occur during this congressional session, NAHB is actively engaged in the debate and educating lawmakers on key issues of concern. 

“Given the large and important role played by small firms in the residential construction industry, it is critical that future tax policies do not harm these job creators,” the testimony said.

While some analysts have proposed doing away with certain business tax expenditures in exchange for corporate tax cut rates, NAHB warned that any subsequent tax increases on small businesses will consequently result in job losses and lower economic activity in areas of the country where small businesses pay a larger role.

NAHB was pleased that Subcommittee Chairman Patrick Tiberi (R-Ohio) specifically noted in his opening statement that, “The last thing we want to do as a part of tax reform is create a situation where we are putting small businesses at a competitive disadvantage.”

NAHB’s testimony also stressed the importance of debt to finance small business expansion.

“Access to affordable credit is the lynchpin to the success of small business. As the housing market enters its recovery phase, without access to credit, small builders and small product suppliers will find themselves at a disadvantage with larger corporate entities who can turn to Wall Street to finance their business activities.”

NAHB also urged Congress to retain the present-law tax treatment for debt; otherwise, small businesses — including home building firms — will face significantly higher costs to raise capital.

For more information, e-mail Rob Dietz at NAHB, or call him at 800-368-5242 x8285.

Builders Encouraged to Visit New Congress on March 16 to Share Pressing Concerns

Builders who want to join in alerting Congress that it needs to act quickly to restore the flow of credit to the nation’s housing sector should plan to attend the most important grassroots event of the year — the 2011 NAHB Legislative Conference — which will take place on Wednesday, March 16, in Washington, D.C.

This year’s legislative conference comes at a critical time as housing and the overall economy struggle to reach higher ground. As the housing market continues to regain its footing, a number of daunting challenges remain: the lack of credit for new housing production, a faulty appraisal process and a housing finance system in bad disrepair.

Builders are encouraged to travel to the nation’s capital and to urge their representatives and senators to:

• Support policies to alleviate the acquisition, development and construction (AD&C) credit crisis that continues to jeopardize the livelihoods of countless home builders
  
  
• Preserve current housing tax incentives
  
  
• Develop a framework to reform Fannie Mae and Freddie Mac that provides a federal backstop to enable these financial institutions to ensure a stable and adequate supply of credit to the mortgage system

The annual NAHB conference provides an ideal opportunity for association members to share their concerns on housing-related issues with lawmakers on Capitol Hill.

Especially in these challenging times, participation by NAHB members can make a huge difference as various interest groups compete to push their agendas in Washington.

A strong builder turnout on March 16 will send a powerful message to members of Congress that housing must remain a top national priority.

For more information and to register for the conference, click here; or e-mail Nick Gentile at NAHB, or call him at 800-368-5242 x8542.

New-Home Sales Decline 12.6% in January, Inventories Thin

Sales of newly built, single-family homes declined 12.6% to a seasonally adjusted, annual rate of 284,000 units in January, according to figures released figures by the U.S. Commerce Department on Feb. 24.

The decline largely offsets a big gain in sales activity that was recorded in the previous month due partly to an expiring tax break in California.

"While poor weather conditions likely played a part in keeping potential buyers on the sidelines this January, we do expect consumer demand to improve somewhat along with job-market gains heading into the spring buying season," noted NAHB Chairman Bob Nielsen.

"However, with the already-thin inventory of new homes for sale continuing to decline and the consistent unavailability of construction credit,” Nielsen said, “the question is whether builders will be able to meet the improving demand as it emerges."

"This latest report shows new-home sales activity returning to a rate that is consistent with the low level of activity seen in the third and fourth quarters of 2010," said NAHB Chief Economist David Crowe.

"Builders are clearly facing a competitive disadvantage with regard to the large inventory of existing homes at a time when they are unable to replenish their own inventories due to a lack of available financing," he said.

Regionally, new-home sales in January declined 12.8% in the South and 36.5% in the West, but climbed 54.5% from a low number in the Northeast and 17.1% in the Midwest.

Meanwhile, the inventory of new homes for sale continued to edge downward, declining by 0.5% to 188,000 units in January. This amounts to a 7.9-month supply at the current sales pace.

Subscribe to the Free Eye on Housing Blog

For in-depth analysis of the latest housing statistics and research from the federal government, NAHB and other sources, Eye on the Economy readers are encouraged to visit Eye on Housing at http://eyeonhousing.wordpress.com/follow-us/.

They can also subscribe to the blog’s free RSS feed, which will automatically alert them to every new posting.

Data You Can Build On

Get historical data, industry analysis and the latest forecasts, including state and metro, from HousingEconomics.com. Support your business decisions with in-depth analyses, detailed Excel tables, overviews and more. For more information, visit HousingEconomics.com.

New FHFA Rule Takes Aim Against Private Transfer Fee Covenants

In response to the more than 4,200 comments it received to proposed guidance on limiting Fannie Mae, Freddie Mac and the Federal Home Loan Banks — “the regulated entities” — from dealing in mortgages on properties encumbered by private transfer fee covenants and related securities, the Federal Housing Finance Agency (FHFA) has decided instead to propose a rule that addresses the same issue but with some significant changes.

At its meeting last fall in New York, the NAHB Board of Directors passed a resolution opposing the guidance, which formed the basis for comments that were sent to the FHFA on Oct. 15.

In those comments, NAHB urged the agency not to prohibit the regulated entities from dealing in mortgages on properties that already had established private transfer fee covenants or where the fee is clearly disclosed and is used to benefit:

• A property owner’s association that manages the subdivision
• A nonprofit that meets Internal Revenue Code requirements
• A government entity

The NAHB resolution pointed out that private transfer fees established voluntarily (and not imposed by the government) “have proven to be a successful and flexible funding source for independently financing community priorities” — such as affordable housing, open space, wildlife conservation efforts and other community amenities and benefits.

The resolution also noted that revenues from these fees have historically been directed to home owners associations or to charities and other nonprofit organizations organized in accordance with 501(c) of the Internal Revenue Code.

While still imposing a prohibition against mortgages with private transfer fees, the new proposed rule makes an exception for “private transfer fees paid to home owner associations, condominiums, cooperatives and certain tax-exempt organizations that use the private transfer fees to provide a direct benefit to the owners of the encumbered real property.”

Also, for the most part, the proposed rule would only apply to private transfer fee covenants created on or after its publication date in the Federal Register on Feb. 8.

Comments on the proposed rule are due on April 11.

While the FHFA invites comments on all aspects of the rule, it is specifically looking for comments on how it has defined a number of terms that are used to establish the scope of the rule’s restrictions — such as “adjacent or contiguous property,” “covered association,” “direct benefit” and “private transfer fee covenant.”

The agency is also requesting specific information on how third-party private transfer fees relate to developer costs and how they result in lower sales prices on encumbered properties.

NAHB is in the process of submitting comments on the rule and is seeking input from association members.

To provide comments, or for more information, e-mail Kimberly Moore at NAHB, or call her at 800-368-5242 x8529; or contact Debra Bassert, x8443.

Subscribe to the Free Eye on Housing Blog

For in-depth analysis of the latest housing statistics and research from the federal government, NAHB and other sources, Eye on the Economy readers are encouraged to visit Eye on Housing at http://eyeonhousing.wordpress.com/follow-us/.

They can also subscribe to the blog’s free RSS feed, which will automatically alert them to every new posting.

Data You Can Build On

Get historical data, industry analysis and the latest forecasts, including state and metro, from HousingEconomics.com. Support your business decisions with in-depth analyses, detailed Excel tables, overviews and more. For more information, visit HousingEconomics.com.

Housing Costs More Burdensome in 2009 for Low- and Moderate-Income Working Families

More than one in four working households spent more than half of their income on housing costs in 2009, according to an annual report on housing affordability from the Center for Housing Policy, the research affiliate of the National Housing Conference.

The report said that rising unemployment and falling incomes were responsible for making housing costs even more burdensome for low- and moderate-income workers — with up to 120% of the local area median income — despite declining housing prices in many parts of the country.

Nationwide, about 10.5 million working households experienced a severe housing cost burden in 2009 — spending more than half their income on housing. This represented an increase of nearly 600,000 households from the prior year — despite a drop of 1.1 million in the overall number of working households.

“Housing costs for existing home owners have declined only slightly, while housing costs for working renters have actually gone up,” said Jeffrey Lubell, executive director of the Center for Housing Policy.

Among other findings of the report:

• Approximately one-fourth of working renters — 24.5% — had a severe housing cost burden in 2009, compared to 22.1% in 2008. Some 21.2% of home owners found housing extremely burdensome in 2009, up from 20.1% in 2008.
  
  
• Four out of five working households with extremely low incomes — below 30% of the local area median — had a severe housing cost burden in 2009, as was the case for 71% of working households earning 50% or less of the median.
  
  
• Between 2008 and 2009, the share of working households with a severe housing cost burden increased significantly in 25 states and decreased significantly in none.
  
  
• In Arizona, California, Florida, New Jersey and New York, the share of severely cost-burdened working households both exceeded the national average and experienced a statistically significant increase between 2008 and 2009.
  
  
• The levels of severe housing cost burdens ranged from a high of 42% in Miami to a low of 15% in Pittsburgh and Louisville, Ky.
  

For in-depth analysis of the latest housing statistics and research from the federal government, NAHB and other sources, Eye on the Economy readers are encouraged to visit Eye on Housing at http://eyeonhousing.wordpress.com/follow-us/.

They can also subscribe to the blog’s free RSS feed, which will automatically alert them to every new posting.

Data You Can Build On

Get historical data, industry analysis and the latest forecasts, including state and metro, from HousingEconomics.com. Support your business decisions with in-depth analyses, detailed Excel tables, overviews and more. For more information, visit HousingEconomics.com.

Useful Links to Monitor Economic and Housing Trends

The 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.

• U.S. Census Bureau Construction Price Indexes
  
  
• NAHB's Housing Forecast
  Housing starts, sales and interest rate projections through 2009.
  
  
• Latest Home Mortgage Interest Rates
  Contains current and historical data on fixed and adjustable mortgage rates. Updated weekly.
  
  
• Characteristics of New Housing
  Highlights the latest data on new-home characteristics released by the U.S. Census Department. Includes links to the complete Census report and other trends researched by NAHB.
  
  Additional breakouts of this data and other trends researched by NAHB are available at www.nahb.org/constructionstats under “Selected Characteristics of New Housing” (dated 4/3/2008).
  
  
• Housing Starts
  Updated monthly and based on a seasonally adjusted annual rate.
  
  
• New and Existing Home Sales
  Updated monthly and based on a seasonally adjusted annual rate.
  
  
• New and Existing Single-Family Median Home Prices
  Updated monthly.
  
  
• Home Price Index
  The index measures average home appreciation in more than 250 metropolitan markets. Updated quarterly.
  
  
• Metro Home Building Permits
  Local and state data on housing construction rates. Updated monthly.
  
  
• Employment Trends for Metro/State Markets
  Provides metro and state employment data nationwide. Updated monthly.
  
  
• Local Economic Impact of Housing
  Shows how building 100 homes benefits a typical metropolitan area.
  
  
• Home Building’s Direct Impact on the Economy
  
  
• Housing’s Contribution to Gross State Product
  Measures how much housing contributes to the economic output of each state.
  
  
• Housing Market Statistics from HousingEconomics.com
  Full array of statistical categories available to NAHB members, a limited number available to non-members.
  
  
• In-Depth Analysis from HousingEconomics.com
  Full array of analysis of factors affecting housing and the impact on the industry available to NAHB members, a limited number available to non-members.
  
  

Subscribe to the Free Eye on Housing Blog

For in-depth analysis of the latest housing statistics and research from the federal government, NAHB and other sources, Eye on the Economy readers are encouraged to visit Eye on Housing at http://eyeonhousing.wordpress.com/follow-us/.

They can also subscribe to the blog’s free RSS feed, which will automatically alert them to every new posting.

Data You Can Build On

Get historical data, industry analysis and the latest forecasts, including state and metro, from HousingEconomics.com. Support your business decisions with in-depth analyses, detailed Excel tables, overviews and more. For more information, visit HousingEconomics.com.

Builders’ Tip: A Simple Way to Identify Your Tools, Pro-style, on the Job Site

I got tired of mixing up my cordless batteries and tools on the job site with those belonging to the rest of the crew, so I bought an engraving bit for my Dremel tool to mark them.

But my penmanship is terrible and I figured it would be worse with the Dremel.

So, instead of using the Dremel, I printed out address labels with my name on them, stuck them on the tools and used them as lettering guides.

This turned out really well — and looks more like a logo than a bunch of scratches.

• A larger-size type works better.
• Light pressure makes a thin line for the thinner parts of the font; heavier pressure makes a thicker line.

— Craig Fulwider, via e-mail

Tips & Techniques provided by Fine Homebuilding.
©2010 The Taunton Press

To contact Fine Homebuilding, e-mail Christina Glennon.

Get NAHB BuilderBooks 2010 Virtual Publications Catalog Online

The NAHB 2010 Publications Catalog from NAHB BuilderBooks is 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.

Optimize Your Rate of Customer Retention, and Profit From Lifelong Customers

By Jeff Prager Backroom Management

The next in a series on seven keys to managing your business and building profits.

Business school teaches us that generating revenue from existing customers is between five and eight times cheaper than the cost of finding and converting new ones.

Corporate America must have forgotten this basic business lesson. Why else would cell phone companies, just one example, lavish such great discounts on new customers while routinely letting existing customers languish?

Not too many decades ago, most business owners understood the value of customer retention. That’s why your neighborhood pharmacist memorized your medical history, your grocer extended credit when times were tough and your bartender automatically poured you your favorite drink the moment you stepped through the door.

Back then, owners were also employees — with offices in the back of the store. These days, big business CEOs are perched in suites 50 floors up, and so fixated on growth that they’ve neglected the art of customer retention.

That’s good news for you.

Because when you treat your customers like your counterparts did in the ’50s, you will not only increase your sales, you’ll increase your profit margins at the same time.

Improving your rate of customer retention is key #3 in this series to managing your business and building greater profits.

In order to optimize your customer retention efforts, you need to know which clients to focus your energy and resources on. After all, while every client is important, some are more valuable than others.

But how do you know which ones?

Segment Your Customer Base

To determine what clients to focus on, apply the systems and technologies that big business uses today to modify and update the customer retention strategies that worked so well 50 years ago.

Begin by analyzing your current customer base and apportion them into logical segments. You want each of your customer segments to map to the products or services your customers buy from you.

For instance, home builders should probably categorize their customers by age and income — which, I’m sure, many already do. The people who buy a starter home today eventually move up the value chain in a few years, while older customers might start looking at ranch-style homes as they approach retirement. Builders should determine the nexus between their product and their customers when analyzing their customer base.

Remodelers, on the other hand, will segment their customers differently. For instance, they can divide them into infrequent customers who hire them for big jobs; customers who regularly hire them for small jobs; and customers who hire them for both kinds of jobs.

Determine the Ideal Lifespan of the Relationship With Your Customers

After you’ve analyzed and segmented your customer base, define the ideal lifespan of the relationship you want to establish with your customers.

Remember, though, that home owners move, on average, once every seven years.

For remodelers, the relationship may only last those seven years. For home builders, those seven years can simply mark the interval between their customer’s first purchase and their next one.

Now, calculate all the sales you would make during the life of the relationship. Once you do, you’ve determined the lifetime value of your average customer in each segment of your customer base.

After you’ve determined and compared these lifetime values, it should be clear to you which relationships are more profitable to cultivate for the long term.

Implement Marketing Programs to Help Your Customers Remember You for the Long Term

The next step is to determine how to keep your customers around for the lifetime of the relationship. After all, you can’t just hope that they’ll remember you when a need arises.

You want to be the first home builder or remodeler — or roofer or carpet cleaner — your customers think of when the time comes. And let’s not forget the importance of awareness when it comes to generating referrals.

Maybe that means sending them birthday cards; offering them free, yearly inspections; or inviting them to an annual summer picnic. Be creative. Do the kinds of things corporate America is neglecting to do.

At this point, you may still be faced with one major problem — what if your product line doesn’t encourage multiple buys by the same customer?

That’s a big problem, but I will discuss how you can solve it by aligning your existing product line with your customer segments — in key #4 in the series: your number of transactions per customer — in the next article.

In the meantime, I have one more piece of advice for you.

Never, ever lose sight of the ultimate strategy for building customer loyalty — providing superior service and superior value. If you’re not doing that, nothing else you do will gain any traction.

Next: Key #4 — Your number of transactions per customer.

To read earlier articles in the series about increasing your number of leads, click here; and about improving your sales conversion rate, click here.

Jeff Prager is the CEO of Backroom Management, based in Centennial, Colo., which provides the proprietary tools, systems and expertise that builders need to increase their profits. His “7 Key Numbers” system helps business owners determine their own seven key goals — and the paths to reach them — to make managing their business toward greater profits far simpler. For more information, visit Backroom Management at www.backroommanagement.com; or e-mail Prager, or call him at 303-221-0823.

How Does Your Business Measure Up?

“The Cost of Doing Business Study, 2010 Edition,” available through BuilderBooks.com, provides home builders with a rare glimpse at profitability, cost of sales and expenses from hundreds of home builders across the country.

Several categories — including volume, operation type and land vs. no land costs — are analyzed to help builders fine-tune comparisons between study results and their companies.

To view or purchase this publication online, click here, or call 800-223-2665.

Blue Chips Buy Prizes in ‘Winning Hand’ Membership Campaign

Resources and a rewards program are available to help home builders associations leverage returns on the 2011-2012 “Winning Hand” membership campaign.

The campaign is geared to enabling HBAs — at little or no cost — to engage their members in the recruitment effort by encouraging them to play poker, place bets and win chips.

A recording of a webinar on how to engage and reward member recruiters at the local level is available at www.nahb.org/thewinninghand.

The new membership campaign is providing the opportunity for associations to earn blue chips and redeem them for a variety of prizes — including HBA-oriented products; gift cards; registrations for the Executive Officers Council Seminar and the Summit on Association Excellence; and cash.

To help the states boost their performance, 100 blue chips are available for the first 10 states that achieve 100% participation of their local associations. The chips can be redeemed for the items above or distributed to the locals. Participants must opt in online at www.nahb.org/thewinninghand.  

This is how the blue chip redemption process works:

1. At the end of each quarter (March, June, September and December), complete the Live Hand Form at www.nahb.org/thewinninghand. The form will be available in early April. It can be completed online or downloaded and faxed to 202-266-8438.
   
   
2. On the form, select the “hand” that is being redeemed — Royal Flush, Straight Flush, 4 of a Kind, Full House, 3 of a Kind or Pair. Only one hand can be used each quarter. Also, the hand will be checked to ensure that it matches the number of new members the association actually earned during the quarter.
   
   
3. The blue chips will be received in the mail within two weeks after the form is submitted.
   
   
4. The chips can be redeemed at any time between April 2011 and January 2013. Download the Cash Out Form at www.nahb.org/thewinninghand, select from the catalog of prizes listed and mail it with your chips to:
   
   National Association of Home Builders
   The NAHB Membership Team
   1201 15th Street NW
   Washington, DC 20005

The chips must accompany the form and they cannot be replaced if lost or stolen.

At the end of 2011 and 2012, the associations with the greatest percentage increase in their membership in each size category will be awarded additional chips.

For more information, e-mail Brenda Gentry at NAHB, or call her at 800-368-5242 x8347.

Housing Fair in Puerto Rico Leverages Government Stimulus to Spark Housing Sales

Puerto Rico recently saw an uptick in home sales resulting in part from the success of its housing fair — Feria de Tu Nuevo Hogar (My New Home Fair) — held Jan. 28-30 at the Puerto Rico Convention Center in San Juan.

Energized by a recent housing stimulus package passed by Puerto Rico’s Gov. Luis Fortuno on Sept. 2, the fair drew more than 34,000 visitors interested in taking advantage of the great buying opportunity provided by the government incentives, which are set to expire on June 30.

The incentives apply not only to local buyers, but also to buyers from outside Puerto Rico, and no price limits apply.

The housing fair — produced by the Home Builders Association of Puerto Rico, the AG Group and the two largest banks in Puerto Rico, Banco Popular of Puerto Rico and Scotia Bank of Puerto Rico — had more than 100 residential projects on display, with prices ranging from $70,000 to more than $500,000.

Potential home buyers were able to discuss their options for financing and homeownership with exhibitors; more than 2,500 attendees were pre-qualified for loans on the spot.

“The fair was a resounding success, not only for the attendees, but for our builders as well,” said Hans Moll, president of the home builders association and executive and project manager for PRISA Group in Dorado. “At the end of the fair there were 137 option contracts for new homes. It was far more successful than our wildest expectations.”

Ivar Pietri of Peregrine Development Co. in San Juan was one of those successful builders — closing 13 sales for his company as a result of the fair.

“I was floored by the turnout,” Pietri said. “We had 340 people visit our booth during the event and were able to make a good dent into the housing inventory we had on hand.”

And the sales didn’t stop when the fair ended, he said. “Builders were seeing sales that resulted from the fair for up to two weeks following the event. It was a much-needed success story for the struggling housing market in Puerto Rico.”

Pietri reported a dramatic increase in traffic to his business in the days following the fair and he is still hearing from interested home buyers.

“In our most optimistic imaginations we would never have guessed how successful this housing fair would be,” said Rafael Rojo, NAHB state representative for Puerto Rico and a partner of Empresas VRM in San Juan.

“We feel that it is reflective of pent-up demand for housing in our country,” said Rojo. “Until now, people were waiting to finally see if the market had bottomed out and this fair helped people to realize that it is now finally a great time to buy.”

Puerto Rico boasted a thriving housing market in the early 2000s that began to erode slowly in a local recession in 2005. The situation deteriorated further three years later with the onset of a full-blown recession across the U.S.

With the per capita income of Puerto Ricans lower than for residents of the mainland United States, it was difficult for interested home buyers to get funding to buy a home.

Although Puerto Rico did not suffer from the subprime loan problems of the mainland, five years of a weak economy unfortunately took their toll, with a rise in foreclosures that continues to restrain activity in local markets.

The recent government stimulus is helping to get the housing market back in gear and has already produced an 18% increase in home sales over the same time last year, according to the island’s Department of Economic Development and Commerce.

The highlights of the stimulus include:

• A downpayment and closing-cost assistance program that cannot exceed 5% of the home’s purchase price
  
  
• A five-year exemption from property taxes on newly-built owner-occupied homes
  
  
• A 10-year exemption on taxes for rental income on residential properties to help create more housing for low- and moderate-income buyers and renters
  
  
• A 100% tax exemption on capital gains of qualifying properties sold between Sept. 1 and June 30, 2011 and also on capital gains of newly built housing units bought by the sellers during that period
  
  
• A waiver of recording fees for deeds

Aimed at getting even more mileage out of the homeownership stimulus package, a second housing fair has been set for the Puerto Rico Convention Center on May 13-15.

A Social Media Marketing Campaign to Sell New Homes Gets Quick Results

By Carol Flammer, MIRM mRelevance

S&A Homes, which builds homes in 65 communities throughout Pennsylvania and West Virginia, offers a variety of product types and styles to meet the needs and desires of home buyers in each of its communities.

But because S&A Homes’ prospective buyers and communities are so diverse demographically and geographically, traditional targeted marketing can be expensive.

Instead, S&A Homes sought to stretch its marketing budget by launching a social media marketing campaign to showcase its homes, communities and locations and target specific buyers.

The campaign was also designed to convince tech-savvy home buyers and real estate agents who find their homes online to get to know the builder and, ultimately, to buy.

S&A Homes worked with mRelevance to design and implement the campaign, which was launched last July.

The campaign had three main goals:

• Increase website traffic
• Create a place for consumers to converse with the builder
• Improve the SEO (search engine optimization) of their main website so it would be more visible and easier to find

The social media campaign was created around several elements — online tools or a tool kit that would be used to carry out the social media outreach; and several incentive-based and targeted social media campaigns that encouraged online participation and interaction.

The S&A Homes Tool Kit — a Blog, Facebook, Twitter and YouTube

S&A Homes focused on four main social media tools to implement:

• The S&A Homes Blog — www.sahomesblog.com
  
  

  S&A Homes blog

  Built on a self-hosted WordPress platform, the blog contains categories for news, events, incentives, videos, testimonials and locations for cities where S&A Homes builds. It also features a video on the home page, which has proven to big hit with visitors.
  
  The blog’s editorial calendar is planned several months in advance and its content ranges from energy-efficient homes and tips for first-time buyers to ideas for home organization, community events and community news. A team from S&A Homes and mRelevance updates and maintains the blog.
  
  
• A Facebook Page — www.facebook.com/sahomes
  
  Builders want to find themselves in a place where everybody knows their name — and Facebook is definitely the online neighborhood watering hole that fills this need. It’s where everyone shares news and information.
  
  S&A Homes utilizes its Facebook page to connect and engage with home owners, home buyers and real estate agents. The site is updated regularly with news from the blog, as well as with posts that are unique to Facebook, because the site works best when it is energized.
  
  For instance, S&A Homes currently has information for first-time home buyers on its page, which links to a robust section on the S&A Homes Facebook page that answers many first-time buyer questions.
  
  Still in its infancy, the page is approaching 300 fans who “like” it — many of whom are active users and who frequently comment and provide feedback, giving the page the interactive feel of a town hall discussion.
  

• A YouTube Channel — www.youtube.com/SAhomebuilder
  
  If a picture is worth a thousand words, a video could be worth a million. The S&A Homes YouTube page showcases communities and home plans. Many of the videos are embedded into blog posts to provide visual information to potential home buyers.
  
  The videos also help S&A’s sales agents, who follow up with their prospective buyers by e-mailing them links to the videos.
  
  
• Twitter — twitter.com/SAhomebuilder
  
  S&A Homes uses Twitter to further syndicate blog posts and promote its campaigns. This element of the overall campaign was designed to focus on and interact with agents and influencial people in the industry.
  
  Still early in the campaign, S&A Homes is in the process of gearing up its presence on Twitter to promote its net-zero energy Lab Home and its energy-efficient and eco-friendly E-Home, as well as share first-time buying information.

Bolster Great Content With Targeted Campaigns

S&A Homes understood that great content is not always enough to encourage online interaction — much less buyer action — so it bolstered its online presence through several incentive-based targeted social media campaigns that encouraged online participation.

The builder decided that the campaigns would be used to build a smaller, core group of followers who are genuinely interested in S&A Homes, rather than to pursue a larger group who primarily would enter the contests for their prizes and be less interested in the homes.

The initial campaigns included:

• $1,500 Off Options and Upgrades 
  
  

  Posting for $1,500 off options

  S&A Homes launched the first of its targeted campaigns — a $1,500 off options and upgrades coupon — on July 15. During the 45-day campaign, blog and Facebook posts encouraged potential buyers to “like” the S&A Homes Facebook page and to download a coupon good for $1,500 off  S&A Homes options with the purchase of a new home. Buyers were able to use the coupon in conjunction with other incentives. The campaign was also promoted through an e-mail campaign.
  
  By the time the campaign ended, buyers redeemed six coupons. The campaign's success can be read on this blog post.
  
  “We noticed that after these home buyers signed contracts for their new homes, they took time to 'like' us on Facebook,” said Ashleigh Shetler, sales and marketing development manager at S&A Homes.
  
  Not only do the contest winners’ actions on Facebook indicate their appreciation of the builder, they serve as referrals for future Facebook users visiting the pages.
  
  
• Operation Organize Simplify
  
  

  The coupon toward organizational upgrades on Facebook

  Building on the success of the $1,500-off campaign, in mid-October S&A Homes launched its second campaign, “Operation Organize Simplify,” which targeted potential home buyers and Realtors® through a multifaceted program that included blog posts, Facebook and e-mail blasts.
  
  For home buyers, the campaign explained how the right home design and elements can simplify their life. Blog posts were written on kitchen storage, laundry rooms, charging stations, drop zones and even the ultimate man room, the garage.
  
  Real estate agents had the opportunity to interact with the blog — while competing for a $150 Home Depot gift card and the opportunity for a $500 bonus at their next S&A Homes closing.
  
  The contest called on the agents’ vast experience seeing hundreds, if not thousands of homes, and asked them to name the one organizational element they would incorporate into every home — if they could only choose one.
  
  They responded — and made the competition fun — by submitting creative responses on a Christmas tree room, how to organize kitchen electronics, the ultimate mud room, and more.
  
  
• Life Is Full of Firsts 
  
  

  A campaign of firsts

  Targeting first-time home buyers, S&A Homes launched its current campaign on its blog and Facebook to educate buyers and demystify the home buying process while also evoking how exciting and memorable that first home purchase is — as memorable as a first kiss, a child’s first step and the first day in school.
  
  The “Life is Full of Firsts” campaign includes a first-time buyer 101 primer covering topics such as FHA loans, mortgage interest deductions, USDA rural development financing, the benefits of new construction, the tax benefits of owning and other benefits.
  
  Companion pages were also created on S&A Homes’ Facebook to encourage potential buyers to get the information they need and make educated decisions when purchasing a home.
  
  To view the blog post, click here.

Defining Success

Just eight months into its social media program, S&A Homes reports that the program has exceeded expectations.

“It has brought new visitors to our website, improved the SEO for our main website, created a place where consumers can have conversations and best of all, it has brought us buyers,” Shetler said.

“We had 12 home buyers redeem coupons for options and upgrades that they could have only gotten on our social media sites. There is no doubt that today’s buyers are looking further than just our website,” she added.

Within 45 days of its launch, the blog was a top-five referral source to the builder’s main website, with 75% of the blog traffic representing first-time visitors. Over the past 30 days, Shetler said the blog was the number-two referral site to the website, with first-time visitors from the blog to the website representing 50% of the traffic.”

“We will continue to provide them with ways to interact with us and reward them for their loyalty.”

Carol Flammer, MIRM, managing partner at mRelevance, an Internet and social media marketing firm based in Atlanta and Chicago, is the author of the NAHB BuilderBooks best-selling “Social Media for Home Builders: It’s Easier Than You Think.” She is also the visionary behind the nationally ranked and award-winning blog, www.AtlantaRealEstateForum.com, which led the new-media movement in the Atlanta new-homes market. For more information, visit the mRelevance website at www.mRELEVANCE.com; or e-mail Flammer, or call her at 770-383-3360.

‘Social Media for Home Builders’ Available at NAHB BuilderBooks

“Social Media for Home Builders: It’s Easier Than You Think,” available at NAHB Builder Books , 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.

Builders, Remodelers Work With EPA to Clear Up Confusion Over Lead Rule Enforcement

The nation’s home builders and remodelers continue to work with the Environmental Protection Agency (EPA) to clear up confusion over enforcement of the agency’s new lead renovation, repair and painting (RRP) rule.

In a recent conference call with NAHB and the Building Industry Association of Southern California, the EPA’s Region IX discussed how it is going about the inspection process in its area and what will be required of businesses to show they are in compliance.

Staff members from Region IX — which includes California, Nevada, Arizona, Hawaii and the U.S. territories in the South Pacific — explained that there are variations in how the different regional offices approach inspection targeting. The EPA’s enforcement policy outlines not only the fines but also some of its enforcement flexibility.

The conference call was prompted by NAHB Remodelers member Ben Morey, who reported receiving a perplexing phone call from someone who at first claimed to be from the EPA — and when prodded then said they were working on behalf of  the agency — to check the status of his firm’s RRP certification.

It was established in the conference call that the EPA is not calling firms to check for certification. The unsolicited call to Morey was probably from someone trying to drum up business, call participants agreed. 

To enforce the rule, Region IX said it is piggybacking RRP inspections with inspections to see if managers of multifamily properties are complying with a requirement to distribute EPA information to building occupants on safe remodeling practices.

Large window installing companies are also being targeted.

Responding to tips and complaints, Region IX is sending contractors warning letters and also placing them on a target list for possible inspections.

Tips and complaints in Region IX came be made at www.epa.gov/region9/toxic/lead/tips-complaints.html.

While EPA employees in Region IX are primarily focused on going to the offices of remodeling firms and inspecting their records for compliance with the RRP, site inspections are expected to begin shortly.

Records of remodeling work in pre-1978 housing need to be up to date and somewhat detailed. At a minimum, the records should contain:

• Proof of delivery or notification of the “Renovate Right” brochure to all required persons — home owners, tenants, parents and guardians at childcare centers — such as a receipt form with signature
  
  
• If used, the sampling results of any pre-renovation test kit (D-Lead, LeadCheck) and the name and lot number of the kit
  
  
• A copy of the firm’s RRP certification
  
  
• A copy of the renovator’s certification
  
  
• The lead-safe work practices used to reduce the production of dust during renovations — including work-area containment, posting warning signs, clean-up procedures, waste handling, etc. — which can be demonstrated by providing a checklist
  
  
• Explanation of on-site worker training in lead-safe work practices
  
  
• A description of the cleaning verification results, including the number of cleanings needed to achieve compliance
  
  
• A copy of the renovation checklist
  
  
• Proof of delivery or notice of the post-construction notification to all required persons — home owner, tenants, day care parents, etc.

The staffers from Region IX said they are still finding confusion within the regulated community over the requirement for both firms and individual remodelers to be certified and they are working to clear things up. Region IX has sent letters about the RRP requirements to tens of thousands of licensed contractors and have placed numerous articles in trade publications.

The EPA recognizes that there are uncertified contractors in the marketplace and is seeking tips and complaints about anyone operating out of compliance.

More information for contractors can be found on the EPA website, 800-424-LEAD (5323) and at the EPA’s questions and answers page.

NAHB also has a great deal of information at www.nahb.org/leadpaint.

At a meeting this month, enforcement managers from the EPA’s headquarters and regional offices will discuss enforcement strategies for the RRP. NAHB plans to follow up with the EPA after this meeting and inform association members of the outcome.

For more information, e-mail Matt Watkins at NAHB, or call him at 800-368-5242 x8327.

NAHB Provides Guidance on Changes in OSHA’s Fall Protection Requirements

NAHB has created a new guidance document to help association members understand the key changes to the Occupational Safety and Health Administration’s residential construction fall protection directive.

On Dec. 22, OSHA withdrew its Plain Language Revision of OSHA Instruction STD 3.1, Interim Fall Protection Compliance Guidelines for Residential Construction.

First issued in 1995, the directive was a source of confusion among home builders over what fall protection methods and systems should be used to comply with OSHA’s fall protection standards.

Starting on June 16, those engaged in residential construction need to follow 29 CFR 1926 Subpart M Fall Protection Regulations.

Among the significant changes:

• Roofing contractors must use guardrails, personal fall arrest systems (harnesses and lanyards) or safety nets on all roofs with slopes exceeding 4-in-12 when working six feet or more above a lower level.
  
  
• All other trade contractors must use guardrails or personal fall arrest systems (harnesses and lanyards) or safety nets when the height from one elevation to another is greater than six feet.
  
  However, employers who can demonstrate that these fall protection systems are not feasible or create a greater hazard can use a plan outlining alternative fall protection measures that must be followed.
  
  
• The fall protection plan must be in writing and site-specific. However, a written plan developed for repeated use for a particular model or style of home will be considered site-specific. 
  
  
• The use of fall protection plans is limited to “residential construction” in which the structure will be used as a home and constructed with traditional wood frame materials and methods.
  
  (The limited use of structural steel in a predominantly wood-framed home — such as a steel I-beam to help support wood framing — does not disqualify a structure from being considered residential construction.)

The fall protection guidance document contains an easy-to-read chart highlighting the differences between the requirements of the Interim Guidelines and Subpart M regulation.

NAHB expects OSHA’s policy change to ultimately make it easier for home builders to understand what's necessary to achieve compliance, to ensure safer worksites and to reduce the occurrence of costly accidents.

For more information, visit www.nahb.org/fallprotection; or e-mail Rob Matuga at NAHB, or call him at 800-368-5242 x8507.

Boost Job Site Safety With Fall Protection Training Products

In an effort to increase job site safety and reduce the chance of job related accidents, NAHB has produced the “Fall Protection Video, English-Spanish” and “NAHB-OSHA Fall Protection Handbook, English-Spanish.”

Both are available through BuilderBooks.com.

The 30-minute “Fall Protection Video, English-Spanish” can be used by builders to train workers to use safe work practices that eliminate fall hazards and comply with OSHA fall-protection standards.

The “NAHB-OSHA Fall Protection Handbook, English-Spanish” provides guidelines for creating a written fall-protection plan and identifying safe work practices that can prevent costly accidents and injuries. Written with clear text, photographs and illustrations, the book serves as a user-friendly resource for promoting safety on any job site.

To purchase the handbook and video online, click here, or call 800-223-2665.

House Subcommittee Looks at OSHA's Impact on Job Creation

In a Feb. 15 hearing by the House Education and the Workforce Committee's Subcommittee on Workforce Protections investigating the regulatory agenda of the Occupational Safety and Health Administration (OSHA) and its impact on job creation, witnesses suggested that the agency could be doing a better job of working with small businesses.

The hearing was the first in a series that will examine OSHA’s role and its activities.

“Worker safety is a priority, and so too is promoting policies that will allow businesses to grow and hire new workers,” said Rep. Tim Walberg (R-Mich.), chairman of the subcommittee.

“Needless rules and onerous regulations are often roadblocks to economic growth and job creation,” he said, and the current OSHA administration is “more focused on punishment than prevention.”

He added that “punishment is just one piece of enforcing the law. Our goal should be to prevent workplace accidents before they happen.”

Witnesses told the House subcommittee that OSHA has overreached and is disrupting job creation.

Thomas Sullivan, former head of the Office of Advocacy at the U.S. Small Business Administration (SBA), said that complying with federal regulation costs small businesses more per employee.

Obtaining input on regulations from small firms, Sullivan said, can provide OSHA "with valuable insight that allows for the agency to draft proposals that will work on Main Street.”

Likewise, Jacqueline Holmes, an attorney testifying on behalf of the U.S. Chamber of Commerce, told the subcommittee that in some instances, “OSHA all but ignored the very real costs of its actions and their potential impact on American business.”

She said that the agency also has attempted to impose additional requirements without considering whether they were the least burdensome means to achieving their objectives — or even "whether they would improve employee health or safety in the first place.”

Coinciding with the hearings, Dr. David Michaels, assistant secretary of labor for Occupational Safety and Health, issued a statement saying the agency is "doing everything possible to support good safe jobs."

“I think we can all agree that the American economy must succeed, but never at the cost of the safety or health of American workers,” he said.

“Many OSHA standards cost little and easily can be adopted by employers with nominal effect on the bottom line,” he added.

For an archive of the hearing, click here.

For more information, e-mail Marcus Odorizzi at NAHB, or call him at 800-368-5242 x8590.

Help Make Job Site Safety a Priority With Video From NAHB BuilderBooks

The “Jobsite Safety Video,” available through NAHB BuilderBooks, is the first-ever job site safety video for home builders.

The video provides an overview of the key safety issues that residential builders and workers need to focus on to reduce accidents and injuries.

Based on the NAHB-OSHA Jobsite Safety Handbook, this DVD is intended to be used as part of an essential residential construction safety-training program and includes two 20-minute videos on one DVD.

To view or purchase this DVD online, click here, or call 800-223-2665.

Employers Reminded to Post OSHA Injuries and Illnesses Log for 2010

The Occupational Safety and Health Administration (OSHA) requires all employers subject to Part 1904 Injury and Illness Recordkeeping Requirements to post their 300 Log of recordable worker injuries and illnesses in 2010 by April 30.

The OSHA Form 300A Summary of Work-Related Injuries and Illnesses must also be posted in a conspicuous place where notices to employees are customarily posted — such as a human resources office or job site trailer.

OSHA’s recordkeeping requirements typically cover all employers with more than 10 employees, although a few low-risk industries such as car dealers and eating and drinking establishments are exempt from these requirements. 

Form 300A includes the total number of recordable cases, number of days away from work and job transfer or restriction, the type of injury or illness, and general establishment information.

This form must be signed by a company executive prior to posting and be made available to the Bureau of Labor Statistics upon request.

It is important to remember to compare the 300 Log with the Form 300A to ensure that all work-related recordable injuries and illnesses from the previous year have been accurately recorded.

For more information on filling out Form 300a, go to OSHA’s recordkeeping website.

Help Make Job Site Safety a Priority With Video From NAHB BuilderBooks

The “Jobsite Safety Video,” available through NAHB BuilderBooks, is the first-ever job site safety video for home builders.

The video provides an overview of the key safety issues that residential builders and workers need to focus on to reduce accidents and injuries.

Based on the NAHB-OSHA Jobsite Safety Handbook, this DVD is intended to be used as part of an essential residential construction safety-training program and includes two 20-minute videos on one DVD.

To view or purchase this DVD online, click here, or call 800-223-2665.

Concrete Masonry Construction Provides Benefits to Home Buyers; Options for Builders

Builders looking for a building material that combines beauty, energy efficiency, strength, durability and security should consider concrete masonry construction.

Homes built with concrete masonry can easily be designed to resist hurricane-force winds and earthquakes.

An extremely flexible building material, concrete masonry uses locally produced materials, according to the NAHB Concrete Home Building Coalition, part of the Building Systems Councils.

Without forgoing profits, home builders who incorporate concrete masonry building practices start with a building product that has intrinsic value and inherent advantages.

Among its advantages, concrete masonry construction provides:

• A thermally-efficient, tight building envelope that can provide lower heating and cooling costs
• Concrete insulation barriers that reduce noise from neighbors and traffic
• Durability that can help homes withstand fire, rain, floods and hurricane-force winds
• Building materials that are resistant to mold and pests, such as termites

There are two primary methods of concrete masonry construction and design:

Exposed Concrete Block

Exposed concrete block conveys a modern, industrial look.

Architects and home owners who strive for a modern or industrial look find that grey concrete block blends well with the glass and metal finishes typically found in this type of home.

These homes — cropping up everywhere from urban infill projects to rugged desert and mountain environments — often feature uncommon uses of one of the most common building materials. Not only does grey block provide the desired aesthetic, it provides a healthy environment by reducing the potential for mold, pests, fire and chemical off-gassing.

Owners are often wowed by the combination of beauty, durability and energy efficiency this type of construction offers.

To enhance these homes’ beauty, architects often expose conventional and architectural concrete masonry units (CMUs) — also called concrete blocks — on interior walls. To improve energy efficiency, integral insulation — insulation placed in the block cores — can be used as required.

In addition, a residence built with single wythe walls benefits from the economy of providing structure and an architectural facade in a single building element. Single wythe walls provide all of the attributes of concrete masonry construction while incorporating the thinnest possible wall section.

To enhance performance, water penetration resistance and energy efficiency must be carefully considered when designing and building this wall system.

Free online resources on designing for water resistance can be found at NCMA member websites sponsoring e-TEK.

Structural Concrete Block

Conventional CMUs can also be finished with brick, stucco, veneer or any number of other finish systems, which also lends itself to exterior insulation.

Stucco finish

Composite veneer finish

Stone veneer finish

Two of the most popular exterior finishes are:

• Stucco Finish
  
  Known as portland cement plaster or stucco, this finish is a combination of cement and aggregate mixed with a suitable amount of water to form a plastic mixture that will adhere to a surface and preserve the texture imposed on it.
  
  While plaster may be used as an interior or exterior finish for most building materials, some type of metal lath or mechanical keying system is usually required to effectively attach the plaster to the substrate.
  
  Concrete masonry, however, provides an excellent base for plaster without the need for lath. Since block is manufactured from the same cementitious material as that in the plaster, the two have a natural affinity.
  
  Stucco can also be applied directly to the exterior block surface and used in conjunction with integral or interior insulation. It should be noted, however, that local codes may restrict the use of foam plastic insulation below grade in areas where the hazard of termite damage is high.
  
  
• Veneer Walls
  
  With this wall system, the backup wythe of concrete masonry is designed as the load bearing system, with the veneer providing the architectural wall finish.
  
  Veneers are available to complement any type of architectural style.
  
  The primary advantage of multi-wythe construction is in applications where different architectural features are desired on each side of a wall. Greater flexibility in moisture control and insulation, as well as an increased fire resistance rating and sound transmission class, can also be realized.
  
  Clay or concrete brick veneers are connected by wall ties, and wood or vinyl siding is typically attached using exterior wood furring strips that have been nailed to the masonry.
  

For more information on building with concrete, visit the Concrete Home Building Coalition website at www.nahb.org/concrete, or e-mail Tony Gacek at NAHB, or call him at 800-368-5242 x8357. 

This article was provide; by industry experts of NAHB’s Concrete Home Building Coalition. The coalition is sponsored by the American Concrete Institute, the National Concrete Masonry Association and the Portland Cement Association.

HBI Provides Courses On Residential Concrete Construction

The Home Builders Institute (HBI), the workforce development are of NAHB, provides concrete specialization courses — hands-on education on residential concrete construction techniques —  through HBI’s Residential Construction Superintendent Series.

To learn more or to register, visit www.hbi.org/concrete.

New Award-Winning Auto Salvage Facility Goes Green, Triples Output

A newly built auto salvage and recycling facility in Stuart, Fla., has garnered national recognition for Bayview Construction Corp., the company that created this energy-efficient, environmentally friendly complex, which now specializes in renewing and reusing resources.

The Snake Road Auto Salvage — Everett Brothers Recycling, Inc. is now a state-of-the-art processing facility, allowing the owner to triple its volume of scrap processing, providing more reusable materials so that suppliers have access to more recycled products.

The open, three-sided warehouse bays are equipped with compact, energy-efficient metal halide  and high-intensity discharge lamps, while a white cap sheet on the building’s rooftop helps reflect heat from the sun.

The new facility also drains vehicles of recyclable gas, engine oil, transmission and brake fluids and radiator coolant before parts are cataloged and placed in the warehouse for quick sale and delivery.

The building also blends into the neighborhood, with a new 8-foot concrete wall that shields the operations from the site while minimizing their impact on natural vegetation, which has now been enhanced with additional native landscaping.

“Auto salvage yards don’t usually have the eye appeal of this project,” said Commercial Builders Council Chair Carl Harris of the Carl Harris Company in Wichita, Kan. “Congratulations to First Finish for a job well done.”

Bayview Construction is a member of the Treasure Coast Builders Association in Stuart.

The project was honored in November by the NAHB National Commercial Builders Council, which sponsors the annual Awards of Excellence for light commercial projects.

The awards recognize  achievements in design, market appeal, overall aesthetics, challenges faced during building and overall success of commercial projects that are either built or renovated and range in size from less than 5,000 to more than 100,000 square feet.

For more information on the award and NAHB resources for commercial builders, e-mail Carmel Nayman, or call her at 800-368-5242 x8410.

Architects See Slow Start for Nonresidential Construction Spending in 2011

A decline in the Architecture Billings Index in January suggests that commercial building is getting off to a slow start this year as demand for services in the design and construction industry continues to improve quite slowly.

Published by the American Institute of Architects (AIA), the monthly index is considered a leading economic indicator of construction activity, reflecting the approximate nine- to 12-month lag time between architecture billings and construction spending.

Released by the AIA on Feb. 23, the June index was at 50.0, down from 53.9 the previous month. Centered around 50, scores above that number indicate an aggregate increase in billings and those below represent a decline.

The index findings support the AIA Consensus Construction Forecast Panel’s outlook for 2011 released on Jan. 26, which foresees a further decline in overall nonresidential construction activity this year from 2010, but improving conditions later in the year.

Overall, the panel forecasted a 2% decline in nonresidential construction spending this year, followed by a 5% increase in 2012, in inflation-adjusted dollars.

Commercial and industrial activity — which includes industrial, office buildings, hotels and retail — will see a sharper annual decline of 4.2% in 2011, according to the forecast, but will climb 10.9% next year.

Spending on retail construction is expected to be down 1% for 2011 overall and up 10.9% in 2012.

“The key factors that have prevented an accelerated recovery include historically low lending for real estate projects, the lingering effects of general overbuilding and an unfavorable bond market that has hampered the ability of municipalities to get the requisite funding to build new schools and hospitals,” said Kermit Baker, the AIA’s chief economist.

“Conditions should improve later this year and gain momentum as we move into 2012, particularly for hotel, retail and office building projects,” he said.

“Two areas that are of concern that may adversely affect the design and construction industry are the increasing federal budget deficit that will force private sector borrowing costs to increase, and the likelihood that energy costs will increase in the coming years.”

In January, before the political unrest in the Middle East that has exerted significant upward pressure on crude oil prices, even the modest upturn in the economy had doubled crude oil prices from their low in early 2009, Baker said.

“As the economic recovery continues,” he said, “further increases in energy costs seem inevitable.”

The AIA’s forecast panel is conducted twice a year with the leading nonresidential construction forecasters in the U.S., including McGraw-Hill Construction, IHS Global Insight, Moody’s Economy.com, Reed Business Information, Association Builders and Contractors and FMI.

For information on commercial builder resources available from NAHB, e-mail Carmel Nayman at NAHB, or call her at 800-368-5242 x8410.

Value of Green Building the Focus of Upcoming 2011 Green Building Conference

Taking place on May 1-3 at the Salt Palace Convention Center in Salt Lake City, the 2011 National Green Building Conference will be focused on “making the value connection” and communicating to prospective home buyers and others the value of green upgrades in their homes.

“Green building creates value in so many ways,” said Doug Calvert, a builder from Gainesville, Ga., and chair of the National Green Building Conference and Expo Working Group. “This year’s conference will help housing industry professionals explain that value to home buyers, policy makers, appraisers, financiers  and others whose decisions will shape the market.”

The conference kicks off on May 1 with a Green Building and Technology Tour of the latest applications of green building techniques in local homes and communities. The tour is sponsored by Lutron.

Lowe’s Commercial Services, Wells Fargo and Whirlpool are the corporate sponsors of the conference. GE ecomagination is the sponsor of the Opening Keynote Session, which takes place on May 2 at 9:00-10:15 a.m.

Another conference highlight, the National Green Building Awards — sponsored by Bosch Appliances and Mohawk Industries — take place the evening of May 2 at the Hilton Salt Lake City Center. Winners of the awards set the standard for sustainability in residential construction.  

The conference this year features a range of educational sessions to meet the needs of both relative newcomers and experienced green building professionals.

A short sample of educational offerings this year includes:

• ENERGY STAR Qualified Homes: Version 3 Technical Review and Progam Update. In response to increasingly rigorous codes, standards and improved construction practices, the Environmental Protection Agency has released a third-generation of Energy Star for New Homes guidelines taking effect this year and next. This presentation will provide an update on the new changes to the program — including the rationale behind them; the value proposition of the new guidelines; training requirements for builders, HERS raters and HVAC contractors; and more.
  
  
• Connecting Home Owners With Their Homes. The program reviews how education and documentation can help owners understand and take care of green features, troubleshoot many common problems and maximize the performance of their home.
  
  
• High Performance Homes at an Affordable Price. A discussion of how new systems and construction processes can deliver high performance and reduce construction costs.
  
  
• How to Develop a Green Building Product. Chris Nelson, director of global commercial development for UL Environment, will review new industry-wide sustainability standards and how they can be leveraged for greener buildings and market advantage.

For information about the conference, click here.

For more information, e-mail Chad Riedy at NAHB, or call him at 800-368-5242 x8225.

For information about exhibiting at the expo, contact Chris Hood, x8684.

Those interested in sponsorship opportunities should contact Grante Wright, x8051, or Harris Floyd, x8208.

'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 5,400 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.

General Contractors Join NAHB Members to Collect Data on Storm Water Runoff

The Associated General Contractors (AGC) has agreed to participate in NAHB’s drive to collect data to assess the turbidity, or cloudiness, of storm water discharges from construction sites.

AGC is contributing to the effort by encouraging its commercial contractors to collect storm water samples from their sites.

The field data that is collected will help assess whether builders and developers can consistently achieve the numeric turbidity limit expected to be proposed shortly by the Environmental Protection Agency and finalized in June.

Volunteers from NAHB and AGC are being provided with sampling vials, instructions and data sheets.

Those who already have compiled monitoring data for the turbidity of the water coming off their site can also participate by sharing those findings.

Under effluent limitation guidelines previously proposed by the EPA, storm water running off construction sites disturbing 10 or more acres would have been limited to 280 NTUs (Nephelometric Turbidity Units).

As a result of an ongoing lawsuit by NAHB and a petition from the Small Business Administration, the EPA was forced to revise the limit.

Any turbidity limit will require contractors and developers to significantly change how they plan, design and operate their construction sites and manage storm water discharges.

To date, sampling packages have been mailed to more than 20 NAHB members, but more volunteers are needed to ensure a wide geographic distribution for the analysis.

For more information and to participate, e-mail Ty Asfaw at NAHB, or call her at 800-368-5242 x8124.

EPA Seeks Public Comments as It Prepares to Review Its Regulations

In response to President Obama’s Jan. 18 Executive Order 13563 on “Improving Regulation and Regulatory Review,” the Environmental Protection Agency is seeking public input that will help it design a plan for reviewing its regulations.

Within 120 days of the presidential order, the agency is required to submit to the Office of Management and Budget a preliminary plan on how it will periodically review regulations to determine if any should be modified, streamlined, expanded or repealed to make its regulatory program more effective or less burdensome.

The executive order is intended to reduce the regulatory redundancies, inconsistencies and overlapping requirements among the agencies of the U.S. government.

Comments can be made through March 20 by going to www.epa.gov/improvingregulations.

The EPA will also hear from the public at a meeting in Washington, D.C., on March 14, and will shortly announce similar sessions in other parts of the country.

NAHB is in the process of preparing its own comments for the agency.

By late May, the EPA is expected to provide the public with its review plan and an initial list of the regulations it will review.

For more information, e-mail Ty Asfaw at NAHB, or call her at 800-368-5242 x8124.

Corps of Engineers Reissuing and Modifying Its Nationwide Permits

The U.S. Army Corps of Engineers announced in the Feb. 16 Federal Register that it is seeking comments on the reissuance and modification of existing nationwide permits (NWPs) and the possible issuance of two new permits dealing with commercial aquaculture activities.

This is the first step in reissuing and updating the NWPs, which were issued on March 12, 2007 and will expire on March 18, 2012.

The comments are due by April 18 and will be followed by 45-day comment periods on regional conditions for the new and modified NWPs proposed by each Corps district.

NWPs are granted under the Clean Water Act or the Rivers and Harbors Act and cover discharges of dredged or filled material that have a minimal environmental impact onU.S. waters.

In its notice, the Corps said that it was revising the text of some of the NWPs to make it easier to understand and comply with them.

The final NWPs will be published in the Federal Register by this December and will take effect 90 days after publication.

The Corps is also seeking comments on draft “decision documents” addressing the anticipated impacts of each NWP on the environment and on the public.

These are available at www.regulations.gov in docket ID number COE-2010-0035.

NAHB is seeking feedback from its members on these proposed changes.

To make comments or obtain more information, e-mail Glynn Rountree at NAHB, or call him at 800-368-5242 x8662.

Offset Programs for New Growth in Chesapeake Bay Watershed Draw Builder Concerns

In a Feb. 23 meeting with developers, consultants and Environmental Protection Agency representatives at the office of the Chesapeake Bay Program in Annapolis, Md., NAHB said that broad-based quality credit trading and flexible offset programs under the EPA’s rule to clean up the bay are essential for making pollution reduction requirements affordable for developers and municipalities.

Offset programs for new growth in the Chesapeake Bay’s watershed are required under the new Total Maximum Daily Load (TMDL) from the EPA, and the major elements that need to be included in these offsets are specified in Appendix S of the TMDL.

The offset programs will require that builders purchase credits to offset future pollution caused by storm water runoff from new structures.

The credits will pay for low-cost pollutant reductions at locations other than the building site. Offset programs must cover the entire lifetime of all new structures built in the bay watershed.

Any offset program developed by the states must be approved by the EPA.

Among other NAHB concerns over offsets for new growth:

• Robust water quality credit trading programs in the bay watershed are essential to make offsets affordable.
   
• The programs should recognize that builders and developers are no longer responsible for a home once it is sold and that the property is likely to have a succession of different owners over its lifetime.
  
  
• If sediment reductions are part of an offset program, they need to be addressed differently than nutrients. There are likely to be areas around the bay where sediment reductions are not environmentally beneficial and may actually be harmful, such as in measures taken by home owners to reduce shoreline erosion.

Participants at the meeting were told that the experiences of offset programs in North Carolina to address nutrients in the Jordan Reservoir and the Neuse and Tar-Pamlico Rivers may be helpful to the Chesapeake Bay jurisdictions and the EPA as they seek to develop their own offset programs.

For more information, e-mail Glynn Rountree at NAHB, or call him at 800-368-5242 x8662.

Women’s Group Hears Tough Talk on Big Banks From Kansas City Fed President

To limit the damage from future financial crises, the government should be breaking up the largest banks, Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, told a meeting of Women in Housing and Finance in Washington, D.C., on Feb. 23.

“Today, I am convinced that the existence of ‘too big to fail’ financial institutions poses the greatest risk to the U.S. economy,” Hoenig said.

“The incentives for risk-taking have not changed post-crisis and the regulatory factors that helped create the crisis remain in place. We must make the largest institutions more manageable, more competitive and more accountable,” he said.

“We must break up the largest banks, and could do so by expanding the Volcker Rule [preventing the banks from making certain speculative investments] and significantly narrowing the scope of institutions that are now more powerful and more of a threat to our capitalistic system than prior to the crisis.”

Currently, he said, “the soundness of the largest financial institutions and the systemic risks they continue to pose is no better” than the situation that existed before the financial crisis of 2007.

Now, as the crisis is subsiding, is the time to address the “too big to fail” issue, he said.

While a transfusion of money to failing institutions may have been the best course of action at the time the financial collapse was unfolding, it has created some unintended consequences, he suggested, by rewarding those who received the bail-out for their risky behavior and leaving smaller, more cautious institutions to deal with the aftermath of the crisis on their own.

The institutions rescued by the government have ended up with a huge advantage, he charged, because the rating agencies understand that they will not be allowed to fold. This has provided them with an advantage of “160 basis-point savings for debt with two years to maturity, and more than 360 basis points at seven years to maturity.”

And with easier access to credit because of the implied government backstop, the big banks feel able to revert to their risky behavior.

This pattern has recurred with every financial mess since the 1970s, Hoenig said, and has brought on waves of consolidation that have seen big banks getting bigger with each crisis.

Each time, he said, the government has responded with more supervision and requirements for higher capital standards. But that didn’t stop the last crisis and it won’t be sufficient to stop the next one.

“I think we can create a solution that may not avoid crises, but will make a crisis one that can more easily be handled,” he said.

To read the speech, click here.

For information on Professional Women in Building, e-mail Carmel Nayman at NAHB, or call her at 800-368-5242 x8410.

Education Calendar

March 23	“Consumer Preferences for a New Generation of Renters”	Webinar
April 9-10	Lands Roundtable and Workshop	Washington, D.C.
April 20	"Green Models for Site Development"	Webinar
April 27	"Spring Construction Forecast Webinar"	Webinar
May 1-3	National Green Building Conference	Salt Lake City, Utah
Aug. 17-20	Executive Officers Council Seminar	Naples, Fla.
Oct. 23-25	Building Systems Councils SHOWCASE	Baltimore, Md.
Nov. 9-11	NAHB Summit on Association Excellence	Dallas, Texas
2012
Feb. 8-11	2012 NAHB International Builders' Show	Orlando, Fla.

Learn More About NAHB Professional Development Offerings

View the variety of professional development offerings available through NAHB and its local associations at www.nahb.org/education.

Search for Upcoming Courses in Your Area

Or, search for specific course offerings in your area and check out upcoming conferences.

March 23: Webinar to Examine Consumer Preferences of Today’s Renters

With recent research suggesting that future renters will be distinctly different from their predecessors because of generational shifts, rapidly evolving technology and the emergence of social media, NAHB Multifamily is hosting the webinar, “Consumer Preferences for a New Generation of Renters,” from 2:00-3:00 p.m. on Wednesday, March 23, to explore this evolving dynamic.

During the webinar, a leading market researcher and an architect will address the differences between traditional and future renters influencing today’s design trends.

They also will discuss and illustrate how to satisfy the housing expectations of Gen Y and Millennials renters while also addressing the reality of today’s challenging economy.  

Attendees will:

• Learn critical social, cultural and lifestyle trends that have an impact on design
• Examine strategies that tap into shared preferences of multi-generational renters
• Discover ways to attract younger renters while creating product that fits their lifestyles and budgets

To Register

The webinar is $25 for NAHB Multifamily members, $75 for NAHB members and $100 for non-members.

To register, click here; or visit www.nahb.org/mfwebseminars for more details, including the complete list of webinars in the NAHB Multifamily E-Learning Series.

For more information, e-mail Sheronda Carr at NAHB, or call her at 800-368-5242 x8168.

April 20: Webinar to Detail How to Achieve National Green Building Standard Certification

NAHB BuilderBooks and NAHB’s Land Development Committee will host the webinar, “Green Models for Site Development,” which will provide guidance and walk builders and developers through the process of how to gain green certification for lots and sites through the National Green Building Standard.

The webinar will be held from 2:00-3:30 p.m. EST on Wednesday, April 20.

During the webinar participants will:

• Gain a clear understanding of the National Green Building Standard certification program and increase their general knowledge of all aspects of land development covered by the standard
  
  
• Learn who the key NAHB and NAHB Research Center experts are who can guide attendees through the certification process
  
  
• Learn from successful developers whose communities have attained the NGBS/ICC-700 Certification 

The program will feature Ron Tyne, of Rocket Properties; and Edward Tombari, NAHB Land Development Services.

Participants will receive a complimentary copy of “Green Models for Site Development: Applying the National Green Building Standard to Land and Lots”  and can earn one-and-a-half hours of continuing education credit for their NAHB professional designations.

To Register

The webinar is $21.95 for NAHB members and $24.95 for non-members.

To register, visit www.nahb.org/builderbookslive. Registrants will receive e-mail confirmations.

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 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 5,400 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.

Enter Pillars Best in Multifamily Design, Marketing, Management Competition

 NAHB Multifamily is accepting entries for the 2011 Pillars of the Industry Awards competition honoring excellence in apartment and condominium design and development, as well as leadership in marketing and property management.

The Pillars awards program is the largest and most prestigious of its kind, and both multifamily housing professionals and the media look to the awards as a showcase of future trends and innovation.

The 2010 Garden Apartment Community of the Year, for instance, The Avery on Southwestern, a 422-unit luxury apartment community in an “urban village” in Dallas, was designed to attract young professionals, students and new families. The targeted demographics have been drawn to its apartment interiors with bit of an edge — halogen track lighting, pendant fixtures, stainless steel appliances and granite counters — and its ample amenities, including two swimming pools, outdoor and indoor bars, a fitness area and a cyber lounge.

The awards recognize superior achievement in three areas — building, marketing and individual excellence, including “Multifamily Development Firm of the Year” and “Best Multifamily Community of the Year” in more than 30 categories.

In addition, five categories were added this year — “Best Example of Green Building Concepts,” “Best Transition from Sales Community to Rental,” “Best Workforce Housing,” “Best Lifestyle Programming” and “Regional Property Manger of the Year.”

Award recipients will be honored during a two-part virtual awards ceremony that will be held in the fall on www.nahb.org/pillarsawards.

The application deadline is May 13. Submissions are due May 25. Finalists will be announce on July 14.

To Apply

Complete details about the Pillars awards — including eligibility requirements, categories and electronic applications — are available at www.nahb.org/pillarsawards.

The New American Home — as Seen Through the Eyes of the Team That Made It Happen

Building the 2011 version of The New American Home (TNAH) involved scores of suppliers, subcontractors and trades and, of course, a builder, architect, interior designer and merchandiser.

And, as in years past, the project was shepherded by the TNAH Task Force, which includes NAHB members and staff.

Some of the leading team members who brought The New American Home to fruition this year included builders Keith Clarke and Bill Cook of Continental Homes; Kate Clarke, interior designer, Continental Interiors; Christopher Donnelly of Donnelly Architecture; Chris Gunn, project superintendent; Alex Hannigan, chair of the TNAH 2011 Task Force; and Tucker Bernard, NAHB’s director of The New American Home program.

During more than a year of hands-on involvement as the home progressed, each member of the team developed a strong sense of the home’s features and the effort that went into making the home a success.

Each has a favorite room or aspect of the home that they appreciate most.

The accompanying images showcase the home as seen through the eyes of the people who helped make it happen.

The view through the family room is Keith Clarke's favorite focal view in the home.

Keith Clarke favors the architectural focal view through family room and kitchen to the dining room, especially the way it is accented by the long fireplace and bold horizontal lines.

Kate Clarke favors the modern, classical elegance of the great room.

For Kate Clarke, the modern, classical elegance of the great room — with its high ceilings, elegant flooring and stained glass entry doors by Preston Studios, one of the nation’s premier art glass studios — make it her favorite room.

The library, a quiet area to spend time with a favorite someone or good book, is Bill Cook's favorite room.

Bill Cook’s favorite is the library off of the dining area. He sees it as a great place to spend quality time with that favorite someone — or with a good book.

Bill Nolan points to The New American Home's place in the community and industry as his favorite aspect of the home.

Bill Nolan doesn’t have a favorite room. For him, The New American Home’s place in the broader community is his favorite aspect of the home. “This home is more than a collection of rooms,” Nolan said. “It makes a statement about housing in the 21st century and the importance of new investment in a neighborhood.”

Chris Gunn appreciates the overall refined elegance and serenity of the home, rather than a particular room.

Like Nolan, Chris Gunn does not have a favorite room. What he appreciates most is the refined and elegant feel of the home and its many spaces that offer peace and calm. “Calmness surrounds you in every corner of this home and offers refuge from the bustle of everyday life.”

Tucker Bernard prefers the guest suite above the garage, a great space for an extended visit.

Tucker Bernard gravitates toward the home’s guest suite above the garage, which includes its own kitchen and laundry room. He says it’s perfect for guests, even when visiting on extended stays.

Team members who helped build The New American Home include, from left, Bill Nolan, Keith Clarke, Kate Clarke, Chris Gunn, Christopher Donnelly, Tucker Bernard and Alex Hannigan.

New Vinyl Sheet Floors From Armstrong Provide Sales Opportunities for Builders

Armstrong earlier this year announced a refreshed vinyl sheet line that will provide more choices for consumers and additional sales opportunities for builders.

Armstrong offers three vinyl sheet flooring structures — fiberglass, felt and its exclusive Stratamax construction. Each is designed to meet specific performance and lifestyle needs, with glue-down and loose-lay installation options.

Brand new to the builder market is Armstrong’s Duality collection of fiberglass vinyl sheet flooring.

Duality combines ultra-realistic, three-dimensional visuals with new ToughGuard/Flex backing, “offering durability unmatched by other fiberglass floors,” said Dawn McElfresh, builder channel market manager for Armstrong.

“Duality will withstand even the most active lifestyles, offering best-in-class warranties including lifetime limited and up to 15 years light commercial,” she said.

The collection’s realistic visuals are achieved by exclusive Masterworks Technology printing that captures the depth, definition and dimension of natural materials, “so that stones look and feel like stones, and wood looks and feels like wood.”

Armstrong has also refreshed its CushionStep and Starstep resilient collections with new designs and colors.

CushionStep is a fiberglass floor that is soft underfoot with flexible installation options.

Starstep is the manufacturer’s tried-and-true felt-backed vinyl flooring, “offering performance and value in a glue-down installation.”

From the unique markings of dramatic slate to modular designs that mimic the look of a ceramic installation, Armstrong’s stone collection captures the beauty of natural material and provides warmth and comfort underfoot.

The company’s wood collection captures the timeless looks and rich graining of natural hardwood — from exotic and reclaimed, to the character of the finest cuts of oak.

The alternatives collection is visually exotic, combining floor and fashion, from the stylish look of leather to modern designs that add drama and sophistication to any room.

Armstrong’s CleanSweep protective coating prevents stains from everyday spills, scratches and scuffs, with minimal maintenance.

Certain floors also are available with an antimicrobial layer to help guard against stain- and odor-causing bacteria on the floor’s surface.

All Armstrong resilient floors are third party-certified by FloorScore for better indoor air quality and a healthier home.

All are compliant with California Section 01350, which is recognized as the toughest standard in the country.

Headquartered in Lancaster, Pa., Armstrong World Industries is a member of the The Leading Suppliers of NAHB, formerly the National Council of the Housing Industry.

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 Research Center’s Newly Released Green Building Toolkit for Educators

The recently released Green Building Educator’s Toolkit, developed by the NAHB Research Center with funding from a $40,000 grant from the National Housing Endowment, is an annotated bibliography for two- and four-year university programs in residential construction management that will help educators teach an integrated, whole-house approach to the high-performance green building process.

The NAHB Research Center developed the toolkit, in part, by conducting focus groups with participants from 14 colleges and universities — studying the needs of participating building educators and identifying the tools needed to teach cutting-edge green building techniques and technology.

The annotated bibliography was organized according to the topical groupings mentioned most frequently by the focus groups — curriculum, theory, technology, standards, applications and environmental.

The toolkit is available as a free download on both the NAHBGreen website and the Research Center’s ToolBase.org technical website.

The toolkit includes:

• Annotated bibliography of resources
• Instructional aides
• Sample course syllabi
• Approaches to green curriculum

Specific case-study curricula are included in the appendices.

Announced at the 2011 NAHB International Builders’ Show, the toolkit was created to be a living document that can be updated as changes — such as the in-process 2012 version of the National Green Building Standard — become available.

Randy Cantrell, manager of innovation research at the NAHB Research Center, said he hopes the toolkit can “evolve into a ‘wiki-like’ resource where junior faculty share articles and lesson plans online without having to go through a lengthy peer-review process” and users would ultimately serve as editors and reviewers, enabling the information and best practices to be shared more readily. 

During the upcoming several months, educators from across the country will be using this resource in their classrooms and posting their results for other professors to use in their lesson planning.

Download the Free Toolkit

To download the “Green Building Educator’s Toolkit,” visit:

• www.nahbgreen.org/Education/toolkit.aspx on the NAHBGreen website
• www.toolbase.org/Home-Building-Topics/Green-Building/green-building-educators-toolkit on the NAHB Research Center website.

For more information, e-mail Randy Cantrell of the NAHB Research Center.

Tom Woods a Candidate for 2012 NAHB Third Vice Chairman

The NAHB Nominations Committee has certified Tom Woods of Independence, Mo., as a candidate for NAHB third vice chairman for 2012.

Following is a message from the candidate:

NAHB faces uncharted times. We must efficiently and innovatively allocate our resources to regain a solid position for America’s home builders, remodelers, associates and home owners. I am a “muddy boots” builder who is comfortable wearing “wing tips” in discussions and negotiations with politicians, regulators and banking officials.

It’s time to urgently move forward, working together with the leadership team to pave the way toward new prosperity and profitability. My knowledge and expertise in the building industry and governmental affairs make me the right choice.

As owner of T.E. Woods Construction, Inc., I joined the Home Builders Association of Greater Kansas City, serving on its board for 30-plus years, including serving as president. My experience includes single-family homes, commercial and land development. I have actively volunteered in my church and community, was elected mayor of Blue Springs, Mo., appointed to the Des Moines Federal Home Loan Bank Board and elected its vice-chair.

I am an NAHB senior life director, past national vice president, past Missouri state representative and Executive Board member (15 years). I have chaired many committees, including Federal Government Affairs, State and Local, Education, State Representatives and BUILD PAC as well as the Home Builders Institute Board of Trustees. I was honored as the 2009 NAHB Governmental Affairs Member of the Year.

I have a track record as a consensus builder, an innovative professional and a tireless worker who loves this industry and believes its strength is in its members; and I am ready to help lead NAHB toward a brighter future.

Jean MacDonald, Texas Hall of Honor Builder, NAHB Senior Life Director, Dies at 81

Jean MacDonald, who in 2010 was the first woman to be inducted into the Texas Housing Hall of Honor, died on Feb. 19 after a 25-year battle with Parkinson’s disease. She was 81.

MacDonald also was the first woman to serve as president of a local home builders association in Texas when she became president of the Home Builders Association of Greater Austin. She also served as a director with the Texas Association of Builders.

During her more than half-century in the industry, her MacDonald Companies built some of the most prestigious neighborhoods and communities in Austin, Kerrville and other areas of Texas.

MacDonald also was appointed, and subsequently reappointed, to the board of directors of the Federal Home Loan Bank of Dallas under the administrations of Presidents Ronald Reagan, George H.W. Bush and Bill Clinton. She served as the bank's chairwoman for six years.

As active nationally in the industry as she was in Texas, MacDonald served on the NAHB Board of Directors and was named an NAHB senior life director. She was a founding member of NAHB's Build-PAC and served as a trustee and founding member of its Capitol Club.

Within her community, MacDonald served as a board member and fiesta chairman for Laguna Gloria Art Museum in Austin, a vice commodore of the Austin Aqua Festival and a board member of the Austin Symphony.

She also was a life member of the Texas Exes, the University of Texas alumni association.

MacDonald is survived by her son, G. Granger MacDonald, and his wife Kathy; and her grandson T. Justin MacDonald, all of Kerrville. She is also survived by Christine H. and P. Owen Parker of Houston, Sarah K. Wistner of Houston and Doug C. Wistner of Boston.

New Webinar Series Provides Training for HBA Staffs and Leaders

A new series of webinars exclusively for the staffs and volunteer leaders of state and local home builders associations is now available from NAHB.

The one-hour Leadership Training Webinars are being held on the first Thursday of each month at 2:00 p.m. EST.

The second session in the series — the “Healthy Association” — will be held on April 7. The session is designed to provide participants with the diagnostic tools they need to help keep their associations on the road to success.

Participants will learn how to prevent minor problems from becoming full-blown crises that can cripple an organization.

In addition, the session will cover board and leadership responsibilities, the legal and fiduciary duties of boards, and ways to successfully juggle work, family and serving as an association leader.

For complete details, log-in instructions and to register, visit www.nahb.org/leadershipwebinars.  

GM, the exclusive education sponsor of the EOC Seminar, is also a sponsor of this webinar series.

Register for Spokesperson Training at Spring Board — the Last Sessions Offered This Year

Register for the NAHB Spokesperson Training sessions at the NAHB Spring Board of Directors Meeting in Washington, D.C. in May — the last sessions to be offered until the 2012 NAHB International Builders' Show in January.

Spring Board Spokesperson Training Sessions:

• Interview Skills — Tuesday, May 17
• Presentation Skills — Wednesday, May 18

Members can register securely on the spring board registration website with a credit card for one or both of the spokesperson training sessions.

Interview Skills teaches NAHB members how to give clear, concise answers while in a high-pressure, spur-of-the moment interview. The training also helps participants master strategies for broadcast and print interviews — including message development, the “bridging” technique and controlling the interview.

Members attending the Presentation Skills session learn how to confidently prepare and deliver dynamic presentations to any audience. The session focuses on how to organize and deliver a speech and presentation with accompanying question and answer sessions.

Each full-day session is $495 per person. Registration is limited to 12 participants.

To Register

To register online, click here, or learn more about Spokesperson Training here.

For more information, e-mail Gwyn Donohue at NAHB, or call her at 800-368-5242 x8447.

NAHB Members Can Feast on Filet Mignon for Four With Discount From Omaha Steaks

Omaha Steaks is offering NAHB members a Filet Mignon Feast for Four at discounted prices through March 31.

The perfect meal for any occasion, the Filet Mignon Feast starts with four, fork-tender filet mignons, seasoned with Omaha Steaks’ signature seasoning blend. Completing the meal are stuffed baked potatoes with sour cream, cheddar cheese and bacon and a roasted vegetable medley in seasoned butter sauce — conveniently packaged to serve two meals for two.

The Filet Mignon Feast for Four — Item #41000WRC

• 4 (5 oz.) filet mignons
   
• 4 (5.75 oz.) stuffed baked potatoes
   
• 2 (7 oz.) vegetable medley
   
• 1 (.3 oz.) Omaha Steaks seasoning
   
• Plus, free Carnegie Deli cheesecake

Regular Price: $104.00/Special Price: $46.99

To Order

To order online, visit www.OSincentives.com/promo/nahb. This offer can only be redeemed online.

To receive the special price, the additional 10% discount for NAHB members will be applied at checkout. Standard shipping and handling will be applied per address. Add any applicable sales tax. Offer expires on March 31, 2011.

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

March 16	Legislative Conference	Washington, D.C.
March 23	“Consumer Preferences for a New Generation of Renters”	Webinar
April 9-10	Lands Roundtable and Workshop	Washington, D.C.
April 20	"Green Models for Site Development"	Webinar
April 27	"Spring Construction Forecast Webinar"	Webinar
May 1-3	National Green Building Conference	Salt Lake City, Utah
May 2	National Green Building Awards	Salt Lake City, Utah
May 18-21	Spring NAHB Board of Directors Meeting	Washington, D.C.
May 18	50+ Housing Council Night Out at the 2011 NAHB Spring Board Meeting	Washington, D.C.
Aug. 15	Best in American Living Awards	n/a
Aug. 17-20	Executive Officers Council Seminar	Naples, Fla.
Aug. 18	EOC Association Excellence Awards	Naples, Fla.
Sept. 7-10	Fall NAHB Board of Directors Meeting	Milwaukee, Wis.
Oct. 12-15	Remodeling Show	Chicago, Ill.
Oct. 14	CADRE Awards	Chicago, Ill.
Oct. 14	Homes for Life Award	Chicago, Ill.
Oct. 14	NAHB Remodeler of the Year Award	Chicago, Ill.
Oct. 14	National Remodeling Hall of Fame Award	Chicago, Ill.
Oct. 23-25	Building Systems Councils SHOWCASE	Baltimore, Md.
Nov. 9-11	NAHB Summit on Association Excellence	Dallas, Texas
2012
Feb. 7	NAHB/Builders Mutual Safety Award for Excellence (SAFE) Awards	Orlando, Fla.
Feb. 8-11	2012 NAHB International Builder's Show	Orlando, Fla.

Learn More About 2009 NAHB Professional Development Offerings

See the variety of professional development offerings available through NAHB and its local associations in this brochure. 

Or, search for specific course offerings and check out upcoming conferences.