Nation's Building News Online: October 17, 2011

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House Price Estimator Shows Value of Physical Features, Neighborhood Characteristics

A newly updated economic model developed by NAHB enables builders, developers, prospective home buyers and home owners to see the impact that various physical features and neighborhood characteristics might have on the price of a home.

Looking broadly at the four principal Census regions of the country and the urban status of areas — central city, suburb or non-metro — NAHB’s online house price estimator finds a general tendency for house prices to be higher in the Northeast and West, as well as in central cities and suburbs.

The price tends to be lowest for homes built outside of a metro area, although some regional variation exists regardless of urban status.

The model estimates that the standard new home will cost more than $500,000 if it’s built in a suburb of one of the large metro areas in California, but only about $155,000 if it is located outside of a metropolitan area in the Midwest Census region.

The standard new single-family detached home is definied by these features, which are based primarily on averages or medians from the  Census Bureau’s Survey of Construction:

• 2,150 square feet of living space
  
  
• Two full bathrooms and one half bath
  
  
• Three bedrooms
  
  
• Construction on a slab foundation
  
  
• A garage, found in 70% of the single-family homes built since the mid-1980s
  
  
• Central air conditioning, found in 90% of single-family homes
  
  
• A fireplace, which was in more than 50% of the homes since 1974 up until 2010, when homes with a fireplace were slightly below 50%
  
  
• A separate dining room, which the 2009 American Housing Survey found in 2.2 million out of 3.8 million new owner-occupied housing units
  
  
• Three miscellaneous rooms
  
  
• Satisfactory shopping (grocery or drug stores) within 15 minutes of the community or neighborhood, which the AHS found reported by 3.4 million out of 3.8 million — or nearly 90% — of new home owners

In general, the estimator finds that suburbs show higher prices than their companion central cities, which include the areas inside the city limits and not just a central business district or downtown area.

“Because the model uses data from the American Housing Survey (AHS), which contains somewhat limited geographical detail, the results show averages across a broad region rather than estimates for a particular house in a specific location,” said Paul Emrath, NAHB’s vice president for survey and housing policy research.

The price estimator, which can be accessed on computers with Microsoft Excel, can be useful in a variety of settings, he said.

“Home builders might use the estimator to help determine if the cost of providing a particular amenity will be valued by consumers,” said Emrath.

Households considering purchasing a new home “can use it as a preliminary search tool, to get a rough idea of likely price differences for different sizes and amenity packages,” he said.

Existing home owners can use it for an idea of how much it would cost to trade up to a home that is newer, larger or with more amenities.

Home owners can also use it to approximate how much particular remodeling jobs would add to the value of their homes, he said, which is also useful information that remodelers can provide to their prospective customers.

And developers can use the estimator to help price neighborhood characteristics, which can help them evaluate the desirability of potential building sites.

For example, the estimator shows that a location on a body of water — such as a lake, a river or the ocean — is the neighborhood amenity with the largest positive impact on the price of a home.

Moving the standard Southern suburban new home to an otherwise similar neighborhood on the waterfront increases its estimated price by nearly $90,000.

Proximity to adequate public transportation comes in a distant second, raising the estimated price by about $26,000.

Other neighborhood features, the model finds, can reduce the price of the home.

The presence of an abandoned building within half a block, for instance, reduces the estimated price of the standard new home in a Southern suburb by about $28,000.

Bad roads, odors, lack of adequate shopping, buildings with metal bars on their windows and litter each reduced the estimated price by more than $6,000.

"This information," Emrath said, "can help community associations and local governments estimate how certain public policies — such as providing public transportation or finding uses for abandoned buildings — are likely to affect home values in their neighborhoods."

Looking at the physical features of the home, the model shows that with no modification, the estimated average price of the standard new home in a Southern suburban is $203,874.

Adding 500 square feet of living space with no other changes increases the estimated price of that home by roughly $13,000.

Adding another bedroom or miscellaneous room increases the estimated price by less than $10,000, and the addition of other types of rooms has more impact.

The greatest impact on the home’s value comes from adding a third full bathroom, which increases the estimated price by about $43,000.

Eliminating the fireplace reduces the estimated price by about $24,000.

The Single-Family Detached House Price Estimator can be found on NAHB’s website at: www.nahb.org/housepriceestimator. 

To run the estimator, Microsoft Excel’s security setting must be adjusted to allow macros to run.

For those who encounter trouble getting the estimator to run initially, NAHB suggests that they try accessing it from a different computer with a different browser.

To read a special study from NAHB Housing Economics — “NAHB House Price Estimator Updated” — go to: www.nahb.org/updatedestimator.

For more information, email Paul Emrath, or call him at 800-368-5242 x8449.

Floor Plans: Entry Portico, Secluded Side Entry Add Elegance to Home Built for Entertaining

One of the first striking differences about Residence 2 by Brookfield Homes in the eco-savvy Rockrose at the Foothills community in Carlsbad, Calif., near San Diego is the entry portico that leads to a secluded side entry.

But the elegance and excitement don’t end there. Once inside the formal entry, visitors can see that this award-winning home is built for entertaining.

The home opens to a two-story formal dining room.

Drama Abounds

The home — the 2010 Best in American Living Awards (BALA) silver winner in the single-family detached home of 3,001-4,000 square feet category — opens to a dramatic two-story formal dining room and an open floor plan. The kitchen opens to a dining nook and family room, where French doors open to the modest backyard, and nestled up front is an office parlor.

Owner's suite

The second floor of the 3,036-square-foot home includes a full-width owner’s suite featuring a walk-in closet and a bath with a separate showed; two additional bedrooms; a laundry room; and a bonus room/flex room that can easily be converted to a fourth bedroom.

The kitchen and nook opens to the family room.

Style and elegance aren’t the homes only virtues, however. Like all the Brookfield homes in Rockrose at the Foothills, this home was planned to go on sale before the housing recession but didn’t come to life until the market returned. And when it did come back to this part of Southern California, the demand was for environmentally conscious homes.

Family room

A Home for the Eco-Conscious

Much like Rockrose Residence 3, which earned a 2010 BALA Gold award in the 3,001-4,000 square feet category, Rockrose Residence 2 was built at least 35% above California’s Title 24 building and energy code requirements.

In addition, the home features stylish and environmentally conscious amenities — including a re-circulating water heater system, low-flow fixtures and WaterSense faucets.

Eco-conscious, water sensitive landscaping in the backyard

Like all the homes at Rockrose, prospective home owners can choose from multiple eco-savvy packages to meet their green and budget needs.

Rockrose also features a resort-style pool and spa heated by a solar panel, and a barbecue, outdoor fire ring, picnic areas, walking trails and a yoga exercise circle.

Residence 2 is on the right.

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Click for larger image.

 

 

Features and Specifications

Design Team Architect and designer — Dahlin Group Architecture Planning, Solana Beach, Calif. Builder and developer — Brookfield Homes, Del Mar, Calif. Interior designer — Design Line Interiors, San Diego Land planner — Planning Systems, Carlsbad, Calif. Energy Conservation 35% above California’s energy efficiency standards Tight ducts — less than 6% leakage Radiant barrier roof sheathing QII (Quality Installation of Insulation) Tankless water heater Programmable, electronic night setback thermostat R-30 or R-38 ceiling insulation (per plan) Fluorescent exterior coach lighting and interior lighting (some locations) Dual-glazed low-e windows with vinyl frames throughout Water conservation WaterSense bath faucets Low-flow shower heads Tankless water heater Recirculating hot water system Insulated hot water loop line Water-sensitive landscaping Optional dual flush toilets Recycling center in kitchen drawer Merv 8 air filter Low-VOC carpets and paints Formaldehyde-free insulation Waste reduction that diverts approximately 70% of construction waste from the local landfills Sustainable Building Materials Engineered wood products SFI certified lumber Renewable Energy Optional photovoltaic solar panel Home Features Side-entry, 3,036-square-foot single-family home with three bedrooms and bonus room/optional fourth bedroom Fully drywalled, two-car attached oversized garage with flex space for storage Maple cabinetry with recessed doors in kitchen   Gas fireplace with pre-cast surround Eight-zone security system Oil-rubbed bronze hardware on interior doors Raised, two-panel interior doors and wardrobe doors RG6 Cable outlets and high-speed Cat 5 phone/data wiring throughout Structured wiring for computer data networking and multi-use telephone service Granite slab kitchen countertop with six-inch splash Stainless steel appliances Energy Star dishwasher Six-foot soaking tub Frameless shower door enclosure

Gaining Fair Green Home Appraisals Sees Major Headway in New Appraisal Form

Representing major headway in gaining fair appraisals for green homes, the Appraisal Institute has introduced a new form to help analyze values of energy-efficient home features.

The first of its kind, the three-page Residential Green and Energy Efficient Appraisal Addendum is intended to be used by appraisers and is designed to be attached as an optional addendum to Fannie Mae Form 1004, the appraisal industry’s most widely used form for lending purposes.

“This addendum is another example of how the Appraisal Institute is at the forefront of real estate valuation,” said Appraisal Institute President Joseph C. Magdziarz. “It will help the industry standardize the way residential energy-efficient features are analyzed and reported.”

NAHB has long advocated a better system for taking into account green home features during the home appraisal process.

Historically, there has not been a consistent process in place for the lending community to differentiate between homes that feature energy- and water-saving techniques, greater durability and other green aspects from homes that do not.

These features contribute to the value of a home because they can dramatically reduce monthly utility costs, which represent a significant expense for home owners.

The new addendum was designed to enable appraisers to better identify and classify green features, with a goal of establishing the most accurate assessment of the value of the homes that have them.

Over time and as it becomes broadly used, the addendum is also expected to help establish the incremental value of specific features on a comparative basis.    

“We hope this new form will be a big step toward establishing more accurate home valuations that recognize all of the key features of a home,” said Kevin Morrow, senior program manager of green building programs at NAHB.

“Green homes can offer significant cost savings to home owners over a comparable home built to code, so we are pleased that this new form will finally provide a vehicle to demonstrate some of these key differentiators,” he said.

The form allows users to report on energy-efficient items such as windows, appliances and insulation; to list any applicable energy ratings; and to note the home’s average utility costs — demonstrating any savings to the home owner.

Green features are also among the items included in the new form, most notably, in a section that allows users to indicate if the home has been certified to the National Green Building Standard.

Solar panels and site details such as house orientation and landscaping are also evaluated, in addition to the property’s walkability and proximity to public transportation.

The form also provides space to indicate if the home has qualified for any federal, state or local incentives.  

“We are thrilled that certification to the National Green Building Standard is finally getting the recognition it deserves in the appraisal process,” said Michael Luzier, president of the NAHB Research Center.

“For a long time we’ve known that our third-party green certification conveys tangible, financial benefits to a home and its occupants,” Luzier said.

“Specifically referencing this type of national certification in the valuation process finally provides a way for appraisers to recognize and benchmark that value.

“We also appreciate the fact that energy efficiency upgrades and certifications are captured separately from whole-house green certifications. Energy efficiency is only one portion of the green equation, so to get the true value of a green home necessitates it being appraised beyond just its energy attributes.”

Home owners, sellers, buyers, refinancers and realty agents don't have to wait for an appraiser to use the new form.

They can download it at no cost and ask that it be made part of the appraisal submitted to the lender. This will also help ensure that the appraiser uses the best and most accurate comps available that include similar green features.

“We hope lenders, home builders, real estate agents and home owners will take advantage of this new tool,” Magdziarz said.

“Mortgage lenders who want to see energy features analyzed should request the green addendum to be included with Form 1004.

“We also encourage lenders to provide the green addendum to home owners so they can fill it out and provide it to their appraiser.

“If a new home is being appraised, home builders can use the addendum to provide data to appraisers. Real estate agents also can use the data to help populate the MLS.”

NAHB is currently evaluating the form for improvements and fine-tuning that may increase its usefulness for association members.

For more information, email Kevin Morrow, or call him at 800-368-5242 x8375.

Social Media, Networking, Land Deals Help Builders Thrive in Tough Market

Keith Grant, co-owner of Grant & Co. in Collierville, Tenn., may not have heard of half of the social media websites on which his agents are listing his homes, but he knows they’ve helped his company grow from a 2% to a 15% share of the Memphis market.

“I have one agent in particular who sold nearly twice as many homes as all the rest of my other agents and she was putting her stuff on every one of those websites,” he said.

Grant was speaking at the “Builder Focus: Proven Strategies for Success” session at NAHB’s fall board meeting in Milwaukee on Sept. 8, which featured builders from around the country who have been thriving despite the housing downturn.

He said that his agents are using Facebook to promote their listings and connect with local home buyers and real estate agents, and they have also branched out to dozens of other sites such as Zillow, Trulia, Point2 Agent, VisualTour, FriendFeed and Craig’s List.      

Joining one of NAHB’s 20 Clubs in order to make connections and network the more traditional way was recommended by more than one panelist.

Mike Dishberger, chief executive officer of Sandcastle Homes in Houston, said he joined a 20 Club in 2007. The Houston market was still going strong at the time, and Dishberger thought it would be a good place to meet people and see what was happening in other markets around the country.

"All we heard was doom and gloom,” he said. “We came back from that meeting stunned, but happy we’d heard the information.”

Dishberger immediately reengineered his business to prepare for the coming downturn. He stopped buying land, unloaded excess spec inventory and in his words, “got lean and mean.”

NAHB Chairman Bob Nielsen first brought together a panel of successful builders at NAHB’s spring board meeting in May in Washington, D.C. The session was so well-received that it was held again at fall board with a different group of builders.

Watch video excerpts from the spring board panel here: www.nahb.org/springboardbuilderpanel.

Other panelists participating on the fall panel included David Main, owner of Creative Home Partners in Enumclaw, Wash., and Sandra Steele, president and co-owner of Enfinger Steele Development in Huntsville, Ala.

Main, a member of the Master Builders Association of King and Snohomish Counties since 1977, said he’s been able to leverage the business connections he’s made over the past 34 years to secure capital to finance his projects.

“I’ve never thrown away a business card,” he said. “I went to these contacts and asked them, ‘What kinds of things would you look for if I came to you to borrow money?’”

Main then identified the best local markets, brought in new partners and developed a business plan that involved acquiring capital through sources other than financial institutions or banks. 

Steele looked to ease the financial burden of land acquisition with a program she named “Share the Land,” in which her business worked out an arrangement with land owners that didn’t involve buying the land upfront. 

“We paid the landowners with each lot sale,” she said. “It helped launch our company without having to make a big land purchase.”

To view the complete presentation, go to www.nahb.org/fallboardbuilderpanel.

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

Slim Pickings Are Latest Headache for Home Sales

The housing market, which has struggled with an oversupply of homes for years, is facing a new problem: a lack of attractive inventory. “The inventory is low, so it’s hard for buyers to find their dream home,” said Joan Downing, a real-estate agent in Bloomfield Hills, Mich., a suburb of Detroit. “That’s been our challenge more than anything: finding the inventory for the clients. Nobody’s complaining about the pricing or the interest rates." In Detroit, the inventory of homes for sale was down by 28% from a year earlier, according to Realtor.com. Listings were down by 49% in Miami, by 48% in Phoenix and by 46% in Orlando. Housing inventory was down from one year earlier in all 146 markets tracked by Realtor.com except for Denver and El Paso, Texas. “On paper, all of the conditions are great for buying, but the reality doesn’t seem to match that,” said Ross Kutash, a 37-year-old attorney who has looked at more than three dozen homes in different suburbs of Los Angeles. “I wouldn’t describe it as a buyer’s market so much as no market at all.” Industry executives say shortages of well-priced and attractive homes are a bigger drag on sales than sluggish demand. “As weak as demand is, inventory has been weaker,” said Glenn Kelman, chief executive of Redfin Corp., a Seattle real-estate brokerage firm that does business in 13 states. “Right now, the absence of inventory is the limiting factor on sales volume.” (www.wsj.com) Wall Street Journal Online (10/16/11); Nick Timiraos

Some Home Buyers Bank on Their Parents

In 1991, Dan Driscoll of Towson, Md., and his wife, Theresa, wanted to buy a house, but the lowest mortgage rate they could find was 9%. Meanwhile, Driscoll’s parents, who were retired, were earning 3% on their savings. At Driscoll’s suggestion, his parents financed his $75,000 mortgage at a 6% rate. Now, Driscoll has taken on a different role. Earlier this year, Driscoll’s son Dan, 31, expressed an interest in buying a larger home in his father’s neighborhood. Instead of paying 4.5% for a traditional mortgage, Dan borrowed the money from his father at a 4.25% rate. The arrangement also enabled Dan to avoid paying closing costs, appraisal fees and other expenses charged by a traditional lender, Driscoll says. If financing a family mortgage was a savvy strategy in 1991, the logic is even more compelling now. Returns from the types of low-risk investments favored by retirees are tiny: The average rate on a one-year certificate of deposit is 0.4%. Mortgage rates are also at record lows, but tight lending standards have made it impossible for many young home buyers to take advantage of them. For baby boomers who are unwilling to risk their money in the stock market, financing a child’s mortgage “is an opportunity to create a win-win,” says Timothy Burke, chief executive of National Family Mortgage, a company that sets up and services intra-family loans. To date, National Family Mortgage has helped families finance more than $12 million in loans, ranging from an $18,500 downpayment to a $1.17 million refinancing. (www.usatoday.com)
USA Today (10/5/11); Sandra Block

The Lease Is Up, and Now, So Is the Rent

Across New York City, rents have not only rebounded from the depths of two years ago, but are also surpassing the record high of 2007 during the real estate boom, according to figures from Citi Habitats, a large rental brokerage, and other surveys. That means a perennially frustrating process has become almost frenzied. Brokers say prospective renters need to come prepared to close a deal on the same day — ready to write a check for thousands of dollars to cover the first and last month’s rent, and the broker’s fee. For desirable apartments, forget about open houses — the best places are snapped up within a few days, or less, through private showings for brokers. Several factors are conspiring to keep rents high, brokers and real estate analysts said, citing the virtual disappearance of any incentives, a vacancy rate in Manhattan that is hovering around 1% and a shortage of new development on the horizon. Over all, the average rental price for a Manhattan apartment in September was $3,331, according to data compiled for The New York Times by Citi Habitats. Last year at the same time it was $3,131, and in 2009 it was $3,013. (www.nytimes.com)
New York Times (10/14/11); Marc Santora

Risks and Rewards

For his home about 12 miles west of Chapel Hill, N.C., custom builder Michael Chandler had the luxury of clients who are as adventurous and open-minded as he is. Although they originally asked him for autoclaved aerated concrete walls that would create the thick, stone exteriors of their childhood homes in England, Chandler quickly talked the husband and wife into something more affordable, more insulating and more appropriate for North Carolina’s hot and humid weather. He saved $60,000 by suggesting a technique he had never tried before: double-stud wall construction, which cost only $4,200 more than the company’s standard 2x6 walls. That approach allowed room for nearly 12 inches of R-46 Johns Manville Spider spray fiberglass insulation between the walls and R-30 Icynene open-cell spray foam at the roofline. “We got a really good R-value at a really good cost with the double wall construction,” Chandler said. Framing was completed in less than two weeks because the walls, floor and roof were manufactured off site at local panelization plant Builders First Source. At the factory, the exterior was sheathed with OSB and then moved to the site, where crews wrapped it with Tyvek Wrinkle Wrap, two layers of asphalt felt and SpiderLath and then finished with fire-resistant stucco, which provided the Old World look the owners were after at a fraction of the cost. The 13-inch-thick walls created the same effect on the interior, with deep window jambs and sills usually found in thick masonry construction. “It’s really striking, especially where we have triple windows,” Chandler says. (www.ecohomemagazine.com)
ecohome (9/22/11); Jennifer Goodman

Making Net-Zero Homes a Reality

To see how energy-efficient builders could be in constructing homes, the Department of Energy sponsored the Building America Builders Challenge program in collaboration with several segments of the construction industry, including NAHB. One of the goals of the program is to develop technologies and techniques necessary to build cost-effective, net-zero energy homes — houses that produce as much energy as they use annually — by the year 2030. Camberley Homes, a division of Winchester Homes, built the program’s inaugural home, which was unveiled in the summer. It achieved 40% greater energy efficiency than a typical new construction, using a combination of structural and design elements to reduce energy waste. While a typical home built in the 1950s has a rating on the Home Energy Rating System index of about 150, most new constructions clock in at around 100. Camberley’s Builders Challenge home has a rating of 53. Although the model home is built, it’s still a work in progress. Sensors throughout the home collect data about the home’s temperature, humidity and water and electricity usage, and send it to the NAHB Research Center for analysis. Analysts study the data and come up with modification suggestions to further increase energy efficiency. “We are really trying to figure out best practices and solutions that are the most cost-effective, taking into account the materials and installation costs,” said Amber Woods, manager of energy programs at the Research Center. NAHB’s team worked closely with Camberley throughout the entire building process, and the home building firm hopes to implement techniques and technologies successful in the model home in their Poplar Run development in Bethesda, Md. (www.chicagotribune.com)
Chicago Tribune (10/7/11); Meg Handley, U.S. News & World Report

In a Maine House, No Room to Waste

On a visit to Maine’s Mount Desert Island, a couple purchased a small, dark, two-story cabin made of barn wood they would later tell friends resembled an oversize outhouse. In the five years it had been on the market, the price dropped to about $300,000, from $525,000, and they purchased it for $265,000 and then paid another $200,000 to restore it, a process taking seven months. Regulations forbade expanding not only its footprint, which was just 540 square feet on the first floor, but its height as well. Even adding a deck was not permitted. Because of the building restrictions, they had only eight square feet in which to expand. Most of the house was demolished, leaving only the first and second floors and the side walls intact. The living room windows had been three feet off the ground, obliterating much of the property’s marsh view. The kitchen had a space-consuming island the size of a mattress, a stove that forced the cook to face the wall and a refrigerator that jutted, hunting-camp style, into the living room. The 14-foot-wide living room was lined with floor-to-ceiling windows. The designer added a slightly angled counter that allowed the cook to face the bay and tucked the old refrigerator in the back, covering it in blackboard paint so it could be used as a chalkboard. He replaced the roof over the sitting area with translucent corrugated polycarbonate panels, which were stronger and less expensive than skylights, but still filled the room with light, and used Eastern white pine throughout the house to keep the interior bright. In the second-floor master bedroom, he installed more floor-to-ceiling windows. And he found a use for the eight square feet: landings for two exterior stairways. (www.nytimes.com)
New York Times (10/5/11); Joyce Wadler

Nielsen, Howard Decry Washington’s Anti-Housing Policies, Press for Action

When speaking to reporters and at business meetings across the country that made headlines during the past two weeks, NAHB leadership and staff members called on Washington to end the anti-housing policies that are dampening the economic recovery and they discussed NAHB polling showing that Americans value homeownership.

NAHB’s call to bolster housing appeared in the news in various large and small markets across the country. NAHB Chairman Bob Nielsen even spread the message over Japan’s English-speaking public television network.   

The following are media highlights:

• Citing Fed Chairman Ben Bernanke’s concerns over the lackluster housing recovery, NAHB issued a press release calling on leaders in Washington to take action to address the problem and reverse anti-housing policies that are dampening demand and preventing a housing and economic recovery.
  
  “The American people still strongly believe that homeownership provides security, stability and a solid long-term investment,” said NAHB Chairman Bob Nielsen, referring to numerous polls that show overwhelming support for homeownership. “Yet, policymakers are doing their best to put policies in place that reduce the American people’s ability to purchase a home. Why? How long do we want to stay in a recession?”
  
  
• NAHB reiterated the call to reverse anti-housing policies following the government’s September employment report, which showed relative weakness, particularly as it relates to the residential construction sector.
  
  “We are seeing now what an economic recovery looks like without housing, and the picture is hardly encouraging,” Nielsen said in a press release. “We need to address anti-housing impediments to home builders creating jobs in countless communities across the land.”
  
  
• Nielsen also was interviewed by NHK Television, Japan’s public broadcasting network, on the Obama Administration’s housing policies.
  
  
• NAHB CEO Jerry Howard was quoted in the Bloomberg Businessweek article, “Housing Industry Asks U.S. Congress to Adopt ‘No Harm’ Principle,” in which NAHB and other housing-related allies were depicted as asking lawmakers for something new to combat stagnant home prices and mounting foreclosures.
  
  “Shut up,” Howard said in the article, while paraphrasing his message to lawmakers. “Stop saying we’re going to eliminate the mortgage interest deduction. Stop saying we’re going to require everyone to put 20% down on a house. Stop saying there’s no role for the federal government.”
  
  
• Howard’s remarks to North Dakota’s Minot Area Chamber of Commerce on the state of the housing industry; NAHB’s recent polling showing that Americans still value homeownership; and the problems facing North Dakota home builders — flooding, labor shortages and getting materials delivered on time — were covered in-depth by the Minot Daily News.
  
  “I can tell you that there are builders probably in 46 states who would love to hear of a labor shortage right now,” Howard was quoted in the article.
  
  
• NAHB Chief Economist David Crowe was quoted in a Washington Post story on the state of the economy. “I continue to stick to my guns that we’re not going to fall backward into a recession,” said Crowe. “It’s just hard to figure out how you can get much lower than we are already.”
  
  
• In a telephone interview with Builder magazine, NAHB chief lobbyist Jim Tobin said NAHB is ready to battle to keep housing a national priority. He cited overregulation as a top priority for the association.
  
  “We are the most overregulated industry in the country,” Tobin said, while attributing the tightening of credit to “regulators telling banks to stay out of the real estate sector entirely.”
  
  
• Bloomberg, GlobeSt.com, the San Antonio Express and Business Record were among the news and industry outlets that reported the results of the second edition of the NAHB/First American Improving Markets Index (IMI) released on Oct. 6. According to the IMI, 23 individual markets now qualify as “improving” under the new gauge’s parameters, nearly double the number found to be well on the mend reported in September when the index was first released.
  
  "Both the number and geographic diversity of improving housing markets expanded this month, with Iowa, Illinois and South Carolina all newly represented by one entry or more on the list. This is further evidence that, despite the tough conditions that persist in many cities, pockets of improvement are emerging in local housing markets across the country," Nielsen said in NAHB’s press release on the index.
  
  
• NAHB senior tax economist Rob Dietz was quoted in a Miami Herald story on presidential candidate Herman Cain’s 9-9-9 tax plan. “It would have a negative impact on a fragile housing market, particularly in a state like Florida,” Dietz said.
  
  
• In “Experts: Housing Key to Recovery” in Oregon’s Herald and News — a story that began, “How do you end a recession? Build new homes” — NAHB senior economist Elliott Eisenberg discussed at length the importance of home building to the local and state economies.
  
  “New home construction has been the catalyst in getting us out of recessions in the past,” Eisenberg said. “When you build a house, you create three to 3.5 jobs at the local and state level.”
  
  
•  In an address to North Dakota’s Home Builders Association of Fargo-Moorhead reported in WDAY News and Inforum, Eisenberg also extolled the benefits of home building.
  
  Citing NAHB’s study on the economic benefits of home building, Eisenberg said that “for every 100 new single-family homes built, a total of nearly $40 million in local income and more than $6.3 million in local taxes is generated in the first 10 years, along with 235 temporary jobs and 51 permanent jobs.”

Builders Urge Congress to Proceed With Caution on National Ocean Policy

NAHB on Oct. 4 urged Congress to proceed with caution and conduct a cost-benefit analysis before implementing any new regulations or requirements that call for the federal government to develop the National Ocean Policy now being contemplated by the Administration

Testifying before the House Natural Resources Committee, NAHB Chairman-elect Barry Rutenberg, said that utilizing environmentally friendly building techniques, NAHB members regularly take steps to improve the long-term conservation and care of the nation's coastal and Great Lakes communities.

"The nation's home builders recognize the need to preserve the health of the marine ecosystem as it is one of the many lifelines upon which we as a nation depend," he said.

"However, NAHB is concerned that federal agencies will enact regulations that will only have a minor impact on the environment but impose a significant cost on private landowners and businesses.

“Such an outcome is unacceptable and completely contrary to this Administration's pledge to make regulations more effective and less burdensome."

A common-sense regulatory structure that continues to allow state and local governments to plan for and determine appropriate uses for their entire communities, including residential development, is important to maintain housing choice for consumers, create jobs in local communities and generate revenues for all levels of government, he said.

NAHB analysis of the broad economic impact of new construction shows that building 100 average single-family homes generates 305 full-time jobs and increases the property tax base that supports local schools.

As one of the most highly regulated industries, Rutenberg said, home builders already comply with numerous federal, state and local environmental statutes.

For example, home builders must abide by the Federal Emergency Management Agency's National Flood Insurance Program when siting, designing and constructing their homes; meet the mandates of the Clean Water Act for controlling storm water discharges; demonstrate that their activities are consistent with their state's coastal zone management plan; and meet the requirements for their local zoning, critical areas or shore-land protection ordinances.

"Clearly, governments at all levels have already taken significant steps to protect coastal areas," said Rutenberg.

"Any potential government policies that will broadly shape the future of our communities must be based on solid research and sound science and data and allow for choices and flexibility in the marketplace," he said.

Since its scope is currently undefined and also references coastal areas, the proposed National Ocean Policy has the potential to link land-based activities to the health of the ocean.

"NAHB has significant concerns about the potential for the federal government to overstep its bounds with regard to land use planning, a practice that allows home buyers and home owners the opportunity to live in a home of their choice in a location of their choice," said Rutenberg.

"Past experience suggests that caution must be taken to ensure that local governments are free to direct their community growth without any federal interference or coercion."

Rutenberg told lawmakers that NAHB questions the need for an additional layer of regulation that could impede the housing and economic recovery — given the number of existing policies specifically designed to protect the nation's oceans, coastlines and watersheds; efforts already taken at the federal, state and local levels; and the need to preserve the rights of local governments.

For more information, email Courtney Flezzani at NAHB, or call her at 800-368-5242 x8459.

Presidential Candidate Ron Paul Calls for Ending Government’s Housing Role

In a one-hour presidential “teleforum” on Oct. 13 that drew more than 20,000 participants, Rep. Ron Paul (R-Texas) said that he believes there should be no government role for housing.

“The federal government’s responsibility is to get out of the way and let the free market work,” said Paul.

Regarding Fannie Mae and Freddie Mac, Paul said the two government sponsored enterprises “contributed significantly to the financial bubble” and that it is wrong for the government to prop up lower interest rates for Fannie and Freddie at the expense of privately owned financial institutions.

“The government should deregulate,” said Paul. “It should not be in the business of housing. This is how we got into so much trouble. “As soon as we get back to [free] market principles, the sooner we will get back to more jobs and building more houses.”

To deal with the foreclosure problem and excess homes that are on the market, he said it would be counterproductive to keep home prices up or stimulate more home construction at this time.

“The correction means you have to get the prices down. You have to get the prices down to where these houses will be sold and cleared,” said Paul.

NAHB — along with members of the Associated Builders and Contractors, the National Federation of Independent Business and the National Restaurant Association — sponsored the forum to give its members a chance to hear from the presidential candidates and ask questions via the telephone.

Invitations to participate in the teleforums have been extended to President Barack Obama, former Governor Mitt Romney, Gov. Rick Perry, Rep. Michele Bachmann (R-Minn.), former House Speaker Newt Gingrich and businessman Herman Cain.

While NAHB does support pro-housing congressional candidates through BUILD-PAC, its political action committee, it officially does not endorse any presidential candidate.

During the teleconference, Paul said that American society is governed by a Keynesian philosophy where the government intervenes and tries to direct the economy and that he believes in the tenets of Austrian free market economics, which generally advocates a laissez faire approach.

“I argue for free government, little regulations and as much free trade as possible,” he said.

Paul also criticized the Federal Reserve for taking an aggressive stance in moving to keep interest rates so low and said that he advocates taking away the ability of the Fed “to make money out of thin air.”

Responding to a caller who said that excessive regulations from the Environmental Protection Agency and other government agencies have unduly burdened small businesses, Paul said that his goal would be to get rid of the EPA.

"We don’t have the right to pollute our neighbor’s property or our neighbor’s air," he said.

"We should be very strict about that through property rights legislation, but the bureaucratic way of doing it now just invites the politicization of radical environmentalists to come in and take over because they literally take over the ownership of your land. I would do everything possible to move away from that direction.”

Regarding tax policy, Paul said that “if I had my druthers, I would repeal the 16th amendment and get rid of the IRS.”

He opposes the implementation of a sales tax to raise revenue because he said it is regressive in nature.

As President, Paul said he would look for ways to cut $1 trillion out of the budget in his first year in office.

Paul said that he would concentrate on reducing spending and taxes and defining a new role for government.

To help lower taxes and save money, Paul said he would institute a non-interventionist foreign policy.

“The easiest place to cut politically is one that I think would not only be beneficial to us economically but be beneficial to our national defense,” he said.

“We should not pretend we police the world and tell everyone what to do and look at all the boundaries around the world and try to secure those at the same time we don’t do much with our own borders.”

On the topic of immigration, Paul said that states should not be required to provide free education and free medical care to illegal immigrants and they should not be rewarded with amnesty. He also said that small businesses should not have to act like policemen.

“Now we punish the businessman,” said Paul. “That’s not the problem. We should be more generous and efficient on allowing workers to come here. No benefits and no easy road to citizenship. That’s a start in the right direction.”

NAHB expects more candidates to soon confirm times in which they can participate in similar teleforums.

NAHB members can signify their interest in participating in upcoming teleforums by filling out the registration form at this link. Participants will need to provide a valid telephone number at which they can be contacted when each event begins.

For more information on the presidential teleforums, email Nick Gentile at NAHB, or call him at 800-368-5242 x8542.

National Labor Relations Board Postpones 'Poster Rule' Until Jan. 31

The National Labor Relations Board (NLRB) announced earlier this month that it is postponing implementation of its “poster rule” from Nov. 14 until Jan. 31.

The rule requires employers across the country to hang 11-inch by 17-inch posters in a prominent area in their workplace informing employees of their right to form a union.

NAHB opposes this rule and other prominent business organizations including the U.S. Chamber of Commerce, the National Association of Manufacturers and the National Federation of Independent Business have sued the NLRB over the  rule.

While the NLRB’s jurisdiction covers most small business owners, firms with less than $500,000 in gross annual business will be exempt from the requirement.

NAHB will continue to work with other business organizations to keep this rule from being implemented.

For more information, email Beth Ambrose at NAHB, or call her at 800-368-5242 x8253.

Number of Improving Housing Markets Nearly Doubles in October

The second monthly release of the NAHB/First American Improving Markets Index (IMI) on Oct. 5 showed that 23 individual housing markets were “improving,” nearly double the 12 markets on the list in September.

The index identifies metropolitan areas that have shown improvement for at least six months in housing permits, employment and housing prices.

The following metros were listed in October:

• Alexandria, La.
• Amarillo, Texas
• Anchorage, Alaska 
• Bismarck, N.D.
• Casper, Wyo.
• Fairbanks, Alaska
• Fayetteville, N.C.
• Houma, La.
• Iowa City, Iowa
• Jonesboro, Ark.
• Kankakee, Ill.
• McAllen, Texas
• Midland, Texas
• New Orleans
• Odessa, Texas
• Pine Bluff, Ark.
• Pittsburgh
• Sherman, Texas
• Sumter, S.C.
• Waco, Texas
• Waterloo, Iowa
• Wichita Falls, Texas
• Winston-Salem, N.C.

"Both the number and geographic diversity of improving housing markets expanded this month, with Iowa, Illinois and South Carolina all newly represented by one entry or more on the list," said NAHB Chairman Bob Nielsen.

"This is further evidence that, despite the tough conditions that persist in many cities, pockets of improvement are emerging in local housing markets across the country," he said.

"While Pittsburgh and New Orleans remain the two largest improving markets, the October IMI is heavily weighted by smaller cities in which energy and agriculture are the primary economic drivers and where the effects of the recession have been less pronounced," said NAHB Chief Economist David Crowe.

"In particular, Texas stands out for its seven entries on the improving markets list."

Bangor, Maine, was the only area to drop off of the improving markets list in October, due to a decline in local building permits.

The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health.

The index measures three sets of independent monthly data to get a mark on the top improving Metropolitan Statistical Areas.

The three indicators that are analyzed are employment growth from the Bureau of Labor Statistics, house price appreciation from Freddie Mac and single-family housing permit growth from the U.S. Census Bureau.

Register for the Fall Construction Forecast Webinar on Oct. 26

Register for the NAHB Fall Construction Forecast Webinar, which will provide attendees with up-to-the-minute analysis of the latest housing numbers and market trends right to their desktop. The webinar will be held from 2:00-4:00 p.m. ET on Wednesday, Oct. 26.

Speakers David Crowe, NAHB chief economist; Joel Prakken, senior managing director and co-founder of Macroeconomic Advisers; and Robert Denk, NAHB’s assistant vice president for forecasting and analysis, will address issues affecting the housing industry and the economy — including which housing markets may be improving and why; whether acquisition, development and construction credit is becoming more available; and if house prices are back in line with incomes and what it means for housing.

The fee is $29.95 for NAHB members and home builders associations and $49.95 for non-members.

To Register

For more information and to register, visit www.nahb.org/cfw.

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/.

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.

Register for the Fall Construction Forecast Webinar on Oct. 26

Register for the NAHB Fall Construction Forecast Webinar, which will provide attendees with up-to-the-minute analysis of the latest housing numbers and market trends right to their desktop. The webinar will be held from 2:00-4:00 p.m. ET on Wednesday, Oct. 26.

Speakers David Crowe, NAHB chief economist; Joel Prakken, senior managing director and co-founder of Macroeconomic Advisers; and Robert Denk, NAHB’s assistant vice president for forecasting and analysis, will address issues affecting the housing industry and the economy — including which housing markets may be improving and why; whether acquisition, development and construction credit is becoming more available; and if house prices are back in line with incomes and what it means for housing.

The fee is $29.95 for NAHB members and home builders associations and $49.95 for non-members.

To Register

For more information and to register, visit www.nahb.org/cfw.

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/.

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.

Mortgage Interest Deduction Key to Financial Prospects of Young Families

Eliminating or curtailing the mortgage interest deduction would have a disproportionate impact on younger, middle-class families, who would see their ability to become home owners significantly diminished, with sober implications for their longer term financial prospects, NAHB told Congress on Oct. 6.

"How housing is treated in any future tax reform will shape the economy going forward," Robert Dietz, an economist and assistant vice president for NAHB, testified during a Senate Finance Committee hearing on tax reform options to provide incentives for homeownership.

Most Americans consider homeownership to be their single best long-term investment and a primary source of wealth and financial security.

According to the 2007 Federal Reserve Survey of Consumer Finances, the median net worth of a home owner is $234,600, compared to $5,100 for renters.

"We believe that any policy change that makes it harder to buy a home, or delays the purchase of the home until an older age, will have a significant long-term impact on household wealth accumulation and the make-up of the middle class as a whole," said Dietz.

In the short term, tampering with the mortgage interest deduction would undermine an already fragile housing market and wreak havoc on the tenuous economic recovery by hurting housing demand, which would place downward pressure on home prices.

In turn, this would leave more home owners underwater (owing more on their home than it is worth) and trigger even more foreclosures.

Strong Public Support

The mortgage interest deduction is a cornerstone of American housing policy, provides benefits for home buyers at all income levels and retains overwhelming public support.

In a New York Times/CBS News poll conducted in June of 2011, 89% of the respondents said that homeownership is an important part of the American Dream and more than nine in 10 opposed doing away with the mortgage interest deduction.

Public support runs strong, despite misleading claims that the deduction benefits only wealthy taxpayers and only a small number of home owners utilize the deduction because they must itemize their deductions in order to claim it.

Setting the record straight, Dietz told lawmakers that 70% of the tax benefits go to middle-class home owners who earn less than $200,000.

He added that a deduction that reduces the net cost of monthly house payments is particularly important to younger home buyers, who typically have large home loans and less equity and are paying mostly interest in the early years of the mortgage.

Dietz said that arguments that most home owners do not itemize and cannot benefit from the deduction are false.

"Out of 75 million home owners, 35 million claimed the mortgage interest deduction in 2009," he said.

"This fails to take into account the millions of taxpayers who are renters and one day aspire to own a home of their own and the roughly 25 million who own their homes free and clear and used the deduction in the past. The bottom line is that 70% of home owners with a mortgage have claimed the deduction."

Other Housing Tax Incentives

Dietz also stressed the importance of several other housing tax incentives, including the Low Income Housing Tax Credit, which is the most successful affordable rental housing production program in the nation's history and produces approximately 90,000 full-time jobs per year.

The second home deduction is also important for many who do not think of themselves as owning two homes.

"For example, the second home deduction facilitates moving when owning two homes during the tax year and also permits existing home owners to claim interest on a construction loan for a future home," said Dietz.

Eliminating the mortgage deduction for second homes could threaten the economic viability of second home and vacation markets.

"We are not just talking about well-known coastal markets, but also small towns in states such as Maine, Vermont, New Hampshire, Michigan, Colorado and Florida," said Dietz.

"And nearly every state has areas with significant numbers of second homes,” he said. “Forty-nine states have a county where at least 10% of the housing stock consists of second homes."

Home owners are also allowed to deduct interest on up to $100,000 of home equity loan debt.

Half of all home equity loans are used for remodeling and home improvement, which provide jobs and are important activities for a nation with an aging housing stock.

As policymakers look to create jobs and boost economic growth, housing has an important role to play, said Dietz.

"Building 100 single-family homes creates more than 300 full-time jobs," he said. "Housing can act as a catalyst for job growth and an economic recovery because home building employs such a wide range of workers."

Register for the Fall Construction Forecast Webinar on Oct. 26

Register for the NAHB Fall Construction Forecast Webinar, which will provide attendees with up-to-the-minute analysis of the latest housing numbers and market trends right to their desktop. The webinar will be held from 2:00-4:00 p.m. ET on Wednesday, Oct. 26.

Speakers David Crowe, NAHB chief economist; Joel Prakken, senior managing director and co-founder of Macroeconomic Advisers; and Robert Denk, NAHB’s assistant vice president for forecasting and analysis, will address issues affecting the housing industry and the economy — including which housing markets may be improving and why; whether acquisition, development and construction credit is becoming more available; and if house prices are back in line with incomes and what it means for housing.

The fee is $29.95 for NAHB members and home builders associations and $49.95 for non-members.

To Register

For more information and to register, visit www.nahb.org/cfw.

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/.

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.

Officials Say Housing Needed to Drive Economic Recovery

Discussions on the need to restore the nation's languishing housing market in order to rouse job creation from anemic levels and boost economic growth was prominent during the week of Oct. 3 in congressional testimony from Federal Reserve Chairman Ben Bernanke and in newspapers across the country, leaving many wondering when leaders in Washington would take action to address this problem.

"How many more articles need to appear on the front pages of major newspapers and how many officials need to sound the alarm before federal policymakers reverse anti-housing policies that are dampening demand and preventing a housing and economic recovery from taking hold?" asked NAHB Chairman Bob Nielsen.

"The housing sector has been a significant driver of recovery from most recessions in the United States since World War II,” Bernanke said in Oct. 4 testimony before the Joint Economic Committee.

“This time, however, a number of factors — including the overhang of distressed and foreclosed properties, tight credit conditions for builders and potential home buyers, and the large number of 'underwater' mortgages (on which home owners owe more than their homes are worth) — have left the rate of new home construction at only about one-third of its average level in recent decades," he said.

With inventories of new homes nearly depleted in many markets, builders should be gearing up to meet demand, create new jobs and help the economy move forward, according to Nielsen.

Unfortunately, production remains stymied because builders in these locations cannot get credit from lending institutions to begin work on new homes.

"National unemployment flatlined in August, more than 1.4 million residential construction jobs have been lost since April 2006 and yet there is demand for housing in markets that are on the mend," said Nielsen.

"Home builders have plenty of shovel-ready jobs set to go but they can't keep their doors open and create jobs in their communities if federal regulators continue to shut off the credit spigot," he said.

During the past few months, seven different national surveys conducted by prominent polling organizations including the New York Times/CBS News, the Pew Research Center, the AllState/National Journal Heartland Monitor and Hanley-Wood have looked at homeownership from every possible angle.

"One thing is always crystal clear in all these polls," said Nielsen.

"The American people still strongly believe that homeownership provides security, stability and a solid long-term investment,” he said.

“Yet policymakers are doing their best to put policies in place that reduce the American people's ability to purchase a home. Why? How long do we want to stay in a recession?"

While prudent underwriting and other safeguards are needed to prevent another housing collapse in the future, he said, current proposals to correct shortcomings in the home finance system are far more stringent than necessary and threaten to price many creditworthy borrowers out of the housing market.

Six federal agencies are proposing a national Qualified Residential Mortgage standard that would require a minimum 20% downpayment and other stricter qualifications, which would keep homeownership out of the reach of most first-time home buyers and middle-class households.

NAHB estimates that it would take 12 years for a typical family to save enough money for a 20% downpayment on a median-priced single-family home and other research has found it would take even longer.

Meanwhile, some members of Congress are actively pushing to abolish Fannie Mae and Freddie Mac and end the federal backstop for housing.

A strong federal role is essential to help absorb market risk, ensure a stable and reliable flow of credit for home buyers and maintain a liquid secondary market, he said.

Diminishing or ending government support for housing would make the 30-year, fixed-rate mortgage, the major housing finance tool for most Americans, increasingly scarce and much more costly.

Further complicating the situation, this month's reduction in the conforming loan limits means that many prospective buyers who are seeking a home loan will now have to pay higher interest rates, fees and downpayments and face more stringent credit standards.

Noting that housing normally accounts for more than 17% of the nation's total economic output, Nielsen said policymakers need to take steps to spur housing, create jobs and bolster the economy.

"Home building can be the key engine of job growth that this country needs," he said.

"Constructing 100 single-family homes generates more than 300 jobs and $8.9 million in taxes and revenue for state, local and federal governments that helps to fund local school systems and build strong communities."

Register for the Fall Construction Forecast Webinar on Oct. 26

Register for the NAHB Fall Construction Forecast Webinar, which will provide attendees with up-to-the-minute analysis of the latest housing numbers and market trends right to their desktop. The webinar will be held from 2:00-4:00 p.m. ET on Wednesday, Oct. 26.

Speakers David Crowe, NAHB chief economist; Joel Prakken, senior managing director and co-founder of Macroeconomic Advisers; and Robert Denk, NAHB’s assistant vice president for forecasting and analysis, will address issues affecting the housing industry and the economy — including which housing markets may be improving and why; whether acquisition, development and construction credit is becoming more available; and if house prices are back in line with incomes and what it means for housing.

The fee is $29.95 for NAHB members and home builders associations and $49.95 for non-members.

To Register

For more information and to register, visit www.nahb.org/cfw.

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/.

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.

Eye on the Economy: Housing and Economic Conditions Better Than Expected, But Still Weak

Recent economic news has been better than expected, but expectations were decidedly low following several months of a spluttering economic recovery, and the latest news from overseas is less than encouraging.

The renewed concern that Europe will enter a recession in the fourth quarter because of its debt crisis will likely slow demand for U.S. exports and further depress business confidence. While the United States isn’t expected to follow Europe into recession, economic growth will be slower.

The final estimate of real GDP growth for the second quarter was revised up to a still modest 1.3%, with personal consumption expenditures and exports higher than previously estimated. At a little more than 100,000 new jobs, September employment growth also was better than anticipated, but it remains well below the level needed to reduce unemployment. Likewise, consumer confidence improved slightly, but it remains near the levels recorded during the recession.

Recent housing news has been mixed. There was a near doubling in the number of metropolitan areas judged to be improving by the NAHB/First American Improving Markets Index and private residential construction spending ticked up slightly. However, pending home sales continued to drift downward, suggesting that the pace of existing home sales will likely be slowed next month.

During a recent Senate Finance Committee hearing on the merits of homeownership tax incentives to support housing demand, NAHB economist Robert Dietz presented NAHB’s case for retaining the mortgage interest deduction. Although several panelists at the hearing disputed specific benefits of the deduction, all agreed that removing it would de-stabilize an already fragile housing market by lowering demand and house prices.

Latest Posts:

• October NAHB/First American Improving Markets Index Improves
  The second release of the NAHB/First American Improving Markets Index shows nearly a doubling in the number of metropolitan areas judged to be improving. Posted: Oct. 13
  
  
• Improving Markets Index: Fayetteville, N.C.
  The NAHB/First American Improving Markets Index features Fayetteville, N.C., as one of the 23 markets currently classified as improving. Fayetteville is benefiting from the expansion of Fort Bragg under the Base Realignment and Closure process. Posted: Oct. 13
  
  
• Employment Data Show Increase in Construction Job Openings
  The August Job Openings and Labor Turnover Survey reveals that the national economy, while sluggish, continues to trend better with respect to job openings. Posted: Oct. 13
  
  
• The Employment Situation for September — Better Than (August’s) Nothing
  Total payroll employment rose by 103,000 in September, with July and August revised up by a combined 99,000. Posted: Oct. 6
  
  
• NAHB Testimony Before the Senate Finance Committee
  NAHB economist Robert Dietz testifies before the Senate Finance Committee on homeownership tax incentives, defending the mortgage interest deduction and proposing tax reform options. Posted: Oct. 6
  
  
• Construction Spending Rises Across the Board in August
  Private residential construction spending increased 0.7% in August. Posted: Oct. 3
  
  
• Consumer Confidence Improves Slightly From Multi-Year Lows
  Consumer confidence improved slightly in September, but it remains close to the low levels observed during the worst part of the recession. Posted: Sept. 30
  
  
• Pending Home Sales Down Again in August
  Pending homes sales slipped 1.2% in August. Posted: Sept. 29
  
  
• Third Crack at Second Quarter GDP Growth: A Little Better, But Still Weak
  Real GDP growth for the second quarter of 2011 inched upward to a 1.3% seasonally adjusted annual rate in the third estimate. At this slow pace of growth, the economy is vulnerable to further shocks. Posted: Sept. 29
  
  
• Improving Markets Index: Pittsburgh
  The NAHB/First American Improving Markets Index indicates the housing market in Pittsburgh is improving, with jobs growth and low unemployment propelling the local economy. Posted: Sept. 28

Eye on the Economy is a bi-weekly digest of the latest economic and housing policy news, analysis and studies as posted on NAHB’s free Eye on Housing blog. The preceding is a reissue of his Oct. 14 edition. To subscribe to Eye on the Economy, click here.

Register for the Fall Construction Forecast Webinar on Oct. 26

Register for the NAHB Fall Construction Forecast Webinar, which will provide attendees with up-to-the-minute analysis of the latest housing numbers and market trends right to their desktop. The webinar will be held from 2:00-4:00 p.m. ET on Wednesday, Oct. 26.

Speakers David Crowe, NAHB chief economist; Joel Prakken, senior managing director and co-founder of Macroeconomic Advisers; and Robert Denk, NAHB’s assistant vice president for forecasting and analysis, will address issues affecting the housing industry and the economy — including which housing markets may be improving and why; whether acquisition, development and construction credit is becoming more available; and if house prices are back in line with incomes and what it means for housing.

The fee is $29.95 for NAHB members and home builders associations and $49.95 for non-members.

To Register

For more information and to register, visit www.nahb.org/cfw.

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/.

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.

Register for the Fall Construction Forecast Webinar on Oct. 26

Register for the NAHB Fall Construction Forecast Webinar, which will provide attendees with up-to-the-minute analysis of the latest housing numbers and market trends right to their desktop. The webinar will be held from 2:00-4:00 p.m. ET on Wednesday, Oct. 26.

Speakers David Crowe, NAHB chief economist; Joel Prakken, senior managing director and co-founder of Macroeconomic Advisers; and Robert Denk, NAHB’s assistant vice president for forecasting and analysis, will address issues affecting the housing industry and the economy — including which housing markets may be improving and why; whether acquisition, development and construction credit is becoming more available; and if house prices are back in line with incomes and what it means for housing.

The fee is $29.95 for NAHB members and home builders associations and $49.95 for non-members.

To Register

For more information and to register, visit www.nahb.org/cfw.

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/.

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: Use a Site-Built 'Peashooter' for Tight-Access Nailing

Click for larger image.

For tight-access nailing when you can’t even get a palm nailer into position, sometimes you have to go old school and use a peashooter.

A peashooter is simply a rod with some heft to it, such as a steel stake, that is fitted inside a tube with a slightly larger diameter.

To use it, place a nail in the tube and use the rod to drive it home.

As shown in the accompanying drawing:

• A peashooter can be assembled from materials typically found on a job site — a length of 5/8-inch threaded rod and a piece of 1/2-inch EMT metallic conduit.
  
  Yes, due to the vagaries of nominal dimensions, a 5/8-inch threaded rod does fit inside a 1/2-inch-diameter tube.
  
  
• This tool will slam home 20d spikes with minimal effort.
  
  
• Other good fits are 1/2-inch threaded rod inside a 1/2-inch copper pipe; and a foundation stake in a 3/4-inch PVC irrigation pipe.

If you have to drive more than a few nails, I seriously would recommend that you pad the handle with some tape.

Likewise, you don’t have to use the opposed nuts shown in the drawing, but they can help you avoid getting pinched. Trust me.

— Gregg Roos; San Francisco

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

To contact Fine Homebuilding, email Christina Glennon.

Fed Chairman Ben Bernanke to Address Open Board Session at IBS

NAHB members who attend the 2012 International Builders' Show will have an outstanding opportunity to hear Federal Reserve Chairman Ben Bernanke deliver remarks during a special session at the board of directors meeting on Feb. 10.

Testifying before the Joint Economic Committee in Congress on Oct. 4,  Bernanke specifically acknowledged housing's traditional role in fostering economic recovery and job growth and the challenges facing builders in today's market.

"The housing sector has been a significant driver of recovery from most recessions in the United States since World War II," he said.

"This time, however, a number of factors — including the overhang of distressed and foreclosed properties, tight credit conditions for builders and potential home buyers, and the large number of 'underwater' mortgages — have left the rate of new home construction at only about one-third of its average level in recent decades."

Chairman Bernanke clearly understands the contributions that builders can make to the economy when given the chance, and throughout his tenure he has been willing to meet with NAHB's leadership on a regular basis to receive updates on the state of the housing market and hear builder concerns.

Registered IBS attendees will be able to attend the chariman's Feb. 10 address  on a first-come, first-served basis.

Further details on the time and location of Bernanke's address will be available closer to the event.

To register to attend the IBS, go to www.BuildersShow.com.

As Markets Brighten, Product Exhibitors Getting Back in the Show

Product suppliers who are beginning to see bright spots as the home building industry continues to bounce along the bottom  have decided to return to the International Builders’ Show when it opens in February at the Orange County Convention Center in Orlando.

By mid-October, more than 100 companies either new to the show or returning after an absence of more than two years had purchased booths for the trade show floor, which will be open Feb. 8-11.

NAHB Convention and Meetings Chair Lynne Pratt said she is encouraged by the strong showing, but not surprised.

“The show is going to be great this year,” she said. “I think these exhibitors understand that there are a lot of markets where the housing industry is beginning to turn around, and like us, they are hearing good news. These exhibitors are realizing that the time is right to get back in the show.”

The IBS is the largest annual light construction exposition in the world.

More than 47,000 builders, remodelers and other home building industry professionals attended IBS in 2011, and registration for the upcoming show is running ahead of last year at this time.

Registration is available online or by downloading a paper form.

For additional information on show events — including pre-conference education, The New American Home and IBS Centrals for niche markets such as 50+ housing — visit www.buildersshow.com.

Register for Spokesperson Training Sessions at the 2012 NAHB International Builders’ Show

NAHB members and home builders association staff can register online for the NAHB Spokesperson Training seminars at the 2012 NAHB International Builders’ Show in Orlando on Feb. 8-11.

The seminars can help NAHB leaders be more persuasive and effective in media interviews and while giving speeches and making presentations.

Three training seminars will be offered at IBS:

• Interview Skills – Tuesday, Feb. 7
• Interview Skills – Wednesday, Feb. 8
• Presentation Skills – Thursday, Feb. 9

Secure online registration using a credit card is available on the IBS online registration page.

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

During Interview Skills, participants will learn master strategies for broadcast and print interviews, including message development and controlling the interview using the “bridging” technique and other methods.

The training can also help participants learn how to give clear, concise answers while in a high-pressure, spur-of-the moment interview.

"Being put on the spot and seeing it on TV was very helpful, and the information was top-notch," said attendee Rick Parmeter, of Clear Creek Log Homes in Eau Claire, Wis.

The sessions are led by professional communications consultants with more than 30 years of experience; focus on issues and situations frequently faced by home builders, HBA staff and affiliate members; and include on-camera role playing.

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

To Register

To learn more about Spokesperson Training, visit www.nahb.org/spokespersontraining.

To register online on the IBS website, click here; or for registration information, email Andrea Raggambi at NAHB, or call her at 800-368-5242 x8153.

For more information about Spokesperson Training content, contact Gwyn Donohue, x8447.

Enter the 2012 Best of 50+ Housing Awards by Nov. 7; Entry Packages Due Nov. 21

Firms that design, build or market housing for the mature market are invited to apply for the 2012 Best of 50+ Housing Awards ― the industry’s most prestigious national awards program honoring excellence in the market serving boomers and beyond.

Entry forms are due on Nov. 7. Entry packages are due Nov. 21.

Launched by the NAHB 50+ Housing Council to encourage quality and innovation in the 50+ housing market, the awards highlight innovation, emerging trends and quality housing and showcase the best in active-adult and service-enriched communities across the country.

Awards are presented to communities and homes that cater to active adults, rental communities, assisted living communities, remodeled homes and repositioned communities, as well as homes built with green features and technology or built according to universal design principles.

The awards also honor sales and leasing centers, outdoor amenities and best brochure for the 50+ market. Entries are also being accepted for “On the Boards” categories for communities and homes that have been designed, but not yet built.

Winners will be announced on Feb. 9 during the 2012 NAHB International Builders’ Show in Orlando.

To Apply

To apply for the award or for more details on eligibility requirements and categories, visit www.nahb.org/50plusawards.

For more information on the awards program, email Lynn Basso at NAHB, or call her at 800-368-5242 x8130.

Find Out What 45+ Housing Buyers Want at NAHB BuilderBooks

“Right House, Right Place, Right Time: Community and Lifestyle Preferences of the 45+ Housing Market,” available through NAHB BuilderBooks, will help determine the right design, home features and amenities to attract boomer home buyers in your market.

Author Margaret A. Wylde guides readers through the latest survey results on this important consumer group and explains what their responses mean for today’s and tomorrow’s home building industry.

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

Small Builders May Be Eligible for Small Business Health Care Tax Credit

Small businesses and tax-exempt organizations that primarily employ 25 or fewer workers with an average income of $50,000 or less may be able to claim the small business health care tax credit.

To be eligible for the credit, employers must pay at least half of the premiums for the health care insurance of their employees under a “qualifying arrangement.”

In Special Edition Tax Tip 2011-06, which was issued by the Internal Revenue Service on Sept. 30, the agency lays out several ways in which eligible small businesses can still use the credit for tax year 2010.

For instance, small businesses that have already filed for that year but later determine that they are eligible for the credit can file an amended 2010 tax return.

Small employers can claim the credit for 2010 through 2013 and for two additional years beginning in 2014.

For tax years 2010 to 2013, the maximum credit for eligible small business employers is 35% of the premiums paid.

For eligible tax-exempt employers, the maximum is 25% of the premiums.

Beginning in 2014, the maximum tax credit will go up to 50% of premiums paid by eligible small business employers and 35% for tax-exempt organizations.

Additional information on the eligibility requirements and calculating the credit can be found on the Small Business Health Care Tax Credit for Small Employers page at IRS.gov.

For further information, email Rob Dietz at NAHB, or call him at 800-368-5242 x8285.

HBA Helps Minneapolis-St. Paul Builders Connect With Lenders

Home builders in the Minneapolis-St. Paul area seeking financing for new projects were given a boost last spring when the Builders Association of the Twin Cities brought together small and midsize builders with banks, financial institutions and other interested investors during the HBA’s first Builder Finance and Development Conference.

“It’s very clear that this is a new world,” said the HBA’s executive director, David Siegel. “As builders and remodelers, we have to start thinking creatively about how we are going to get financing.”

An analyst from Marvin Windows and Doors, the program’s sponsor, began the conference by discussing financing trends and the state of the industry, which was followed by a panel discussion featuring lenders and builders on best practices.

Panelists told attendees what investors need to know before they make their decisions and what information home builders and remodelers should present to banks and lenders in order to ensure that they present themselves in the best possible financial light.

Following the discussion, builders and developers met with bankers, investors and other lenders in the tabletop area of the conference to discuss their projects and what capital might be available.

Siegel said the conference succeeded in helping “builders and bankers establish better relationships with each other.”

“The only problem was that some builders had expectations that if they came to the event, money for spec homes or models would be flowing,” he said. “It’s just not that easy anymore. The game has changed.”

“I think that in the last seven or eight months, there has been a little more money finding its way into the system,” Siegel said, while adding that the funding has fallen short of the need. Builders will have to convince lenders that they have ironclad reasons for success if they want to acquire any of the available funding, he said.

Siegel, who worked at a restaurant trade association before becoming an executive officer, modeled the Minneapolis conference after the Dealmakers Corral, an event that brings investors together with leading restaurateurs and those interested in opening restaurant franchises.

The financial institutions paid for the tabletop space and builders were charged a fee to attend. The HBA not only provided its members with a needed service, it also raised about $5,000. Siegel said the HBA will hold its second builder finance conference in April.

NAHB Finance Forum at 2012 International Builders' Show

NAHB will be conducting a similar event at the 2012 International Builders’ Show in Orlando — the NAHB Finance Forum — that will enable builders and developers looking for credit for residential construction projects to connect with a broad array of lenders.

For more about the forum and to register, visit www.buildersshow.com.

Former Presidio Marine Hospital Turned Rental Apartments Among 2011 Pillars Winners

A former Marine hospital converted to rental apartments, an affordable rental community in New Orleans and an apartment community in Cupertino, Calif., that was created from two older apartment complexes are among the innovative winners of the 2011 NAHB Multifamily Pillars of the Industry Awards.

Considered the most prestigious awards in the industry, the Pillars honor excellence in multifamily housing development, design, marketing and management and also showcase future trends in the industry. The winners in all categories were announced online earlier this month and are listed at www.nahb.org/pillarsawards. 

"With this group of winners, we see the efforts of developers and builders who have persevered through difficult economic conditions to create something wonderful," said Charles Brindell, Jr., chair of NAHB's Multifamily Leadership Board and CEO of Dallas-based multifamily developer Mill Creek Residential Trust, LLC. "With demand rising for multifamily homes, these apartments and condos are models for the communities being built to meet that need."

The Markham Apartments in Cupertino, Calif.

The Presidio Landmark in San Francisco, a former Marine hospital that was converted into rental apartments, earned top honors in the Best Adaptive Reuse category.

Located at the south end of the historic Presidio Park and a short bike ride to the Golden Gate Bridge, the Presidio Landmark features one- and two-bedroom apartments with many green features.

The Markham Apartments in Cupertino won in the Best Conversion/Repositioning of a Multifamily Asset category. Developed by the Prometheus Real Estate Group, which also earned top honors in the Property Management Company of the Year category, the project was developed from two older apartment communities that were upgraded and merged.

Columbia Parc at Bayou District in New Orleans

Community of the Year honors went to Columbia Parc at Bayou District in New Orleans, an affordable rental community featuring hardwood floors, granite countertops and energy-efficient appliances.

DSF Group in Waltham, Mass., was named the Multifamily Development Firm of the Year.

The Pillars awards recognized excellence and leadership in 20 building and development categories and nine marketing and individual achievement categories.

For more on the winners, including pictures and commentary, visit www.nahb.org/pillarsawards.

The Pillars awards program is sponsored by NAHB Multifamily's Chairman Partner Time Warner Cable, and Diamond Sponsors AT&T Connected Communities and Mohawk Industries.

New EPA Paint Chip Guide 'Essential' for Determing If Lead Is in Homes

In the absence of an inexpensive, reliable lead paint test kit, the Environmental Protection Agency is allowing remodelers to send paint chips to certified testing labs to determine whether lead-safe work practices are necessary in the client’s home or any other residential building in accordance with the Lead: Renovation, Repair and Painting (LRRP) rule.

A detailed description of how to properly take a paint chip sample is provided in the EPA’s new "Paint Chip Sample Collection Guide."

Without the paint chip test, in homes built before 1978 the remodeler must assume that lead paint is present and work accordingly.

“EPA-certified renovators who choose to take paint chip samples to determine if lead-based paint is present in a work area will find this guide essential,” said NAHB environmental policy analyst Matt Watkins. 

The EPA has listed all its recent amendments to the LRRP regulation that are now in effect.

In addition to allowing the contractor to collect paint samples, the agency has:

• Published "Steps to Lead Safe Renovation, Repair and Painting." While the document discusses working in a home using lead-safe work practices, it does not give the remodeler the information needed for proper recordkeeping.
  
  A few suggestions on recordkeeping can be found in the "Small Business Compliance Guide to Renovate Right."
  
  
• Made additional edits to the "Renovate Right" brochure, which EPA-certified renovators are required to give to customers no more than 60 days and at least seven days before the actual remodeling work begins.
  
  A revision on page 10 discusses lead-dust testing. If remodelers insert that page into copies of the earlier brochure, they are still considered to be compliant with the pre-renovation education provision of the RRP.
  
  
• Made changes to vertical containment requirements. For exterior renovations within 10 feet of the property line, the EPA is requiring vertical containment, but has given remodelers the flexibility “to design effective containment systems based on the renovation activity and the work site.”
  
  For both exterior and interior work, the impervious sheeting on the ground/floor is now required to extend to the “edge of the vertical barrier.”
  
  
• Changed its requirements for HEPA vacuums, allowing the use of those purchased to meet 2008 requirements.  The EPA’s revised language requires that “HEPA vacuums must be operated and maintained in accordance with manufacturer’s instructions.”
  
  
• Related to surface coating, the  EPA has refined its definition of “painted surface” to include varnishes and other coatings; however, it does not include enameled surfaces like bathtubs or sinks.

For more information, questions visit the NAHB LRRP Web pages; or email Matt Watkins, or call him at 800-368-5242 x8327.

Learn How to Run a Successful Remodeling Company

“The Paper Trail: Systems and Forms for a Well-Run Remodeling Company,” available through NAHB BuilderBooks, shows how to use proven management systems to run a successful remodeling company.

The publication includes a CD containing 160 essential forms and documents — culled from successful remodelers across the country — that you can customize to suit your business needs.

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

'How to Find a Professional Remodeler' Brochures Available at BuilderBooks.com

"How to Find a Professional Remodeler," available at NAHB BuilderBooks, promotes the professionalism of your remodeling business by offering a wealth of valuable advice to customers on the process of selecting a remodeler.

The newly updated brochure highlights the before and after photos of the most frequently remolded rooms in the house.

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

NAHB Chart of Accounts Helps Remodelers Get Better Handle on Flow of Money

To be successful, remodeling companies — whether an established custom home building firm about to branch into remodeling, a one-person shop just getting started or anything in between —need a well-organized accounting system to accurately classify assets, liabilities, owners’ equity, revenues and expenses.

The NAHB Chart of Accounts — available free to members and developed by CPAs specifically for builders, developers and remodelers — provides a solid foundation for such an accounting system. The chart of accounts is particularly valuable to remodelers because it includes additional building industry-related charts and the “Basic Accounts for Remodelers” in its appendix.

Companies that use the NAHB Chart of Accounts — and keep it regularly and accurately updated — will have a more systematic and easier-to-understand method of recording their financial transactions, said Vince Butler, of Butler Brothers remodelers based in Clifton, Va., and a frequent instructor on business topics for NAHB Education.

Considering the differences between how home builders and remodelers record the money that comes into their company, companies just getting started in remodeling can find the chart of accounts particularly useful, said Emma Shinn, a Colorado CPA and principal of Shinn Consulting, which was instrumental in creating the NAHB Chart of Accounts.

“The cost element is probably the biggest difference,” said Shinn. “Remodeling jobs are much shorter in duration and done under contract. Usually, there is no spec remodeling. A customer is paying you.”

Home building is different. While builders might have a buyer or a contract, they don’t own the land or the house until closing.

“There are many things that can happen — the sale doesn’t close or the buyer is only giving you a small portion of the cost because they are getting a loan,” Shinn said. “Accounting-wise, the builder is creating an asset just like a manufacturer who is making widgets.”

The funds a home builder receives from a bank or lender come in the form of a loan. “It’s not revenue until a house closes,” Shinn said. “It is represented as a liability. The builder hasn’t earned it yet. It’s not a payment on the house, it’s a loan from an institution.”

With remodeling, “you are recognizing the revenues that you bring in when you receive the revenues and the cost when you incur the cost,” she said.

A Window for Banks

Some remodelers may roll their eyes at the minutia of putting money in the right cubbyhole. In many instances, Shinn said, “when a small business owner completes a financial transaction, they just record it wherever. They create an account or space and there is no rhyme or reason or structure.”

Such procedures can cause problems by making it difficult to account for the funds coming into the company or being dispensed by it. “The chart of accounts makes it easy to retrieve information in a format that is useable for the managers,” Shinn said. “If we lump them all together, it’s very difficult to figure out and analyze.”

That’s important not just to the tax accountant, the bank loan officer or the auditor, it’s also important to remodelers who want to grow their business.

“We even recommend that, if a remodeler is doing commercial or insurance restorations in addition to residential renovations, they use separate accounts for sales or revenue that they get from different kinds of jobs,” she said.

“It’s important for them to understand where their business is coming from. If they have a chart of accounts in that format, they can say, ‘Okay, this month, we did 50% of our business in residential, 20% in commercial, etc. Now, which one of these is giving us the better return? Where do we want to focus our time going forward?’” Shinn said.

The chart of accounts also enables builders and remodelers to be better prepared when they meet with bankers and lenders, which can lead to a smoother and more beneficial outcome.

“The chart of accounts shows the bank better organization on the company’s part and that it is more in control of what’s going on,” she said.

A Better Handle on Labor Costs

“The biggest thing that I stress when I’m teaching is that the chart of accounts gets everybody on the same page,” Butler said. “It’s the only way to make comparisons to benchmark or identify areas, to compare yourself to other companies.

"When people set financial goals or metrics, with the exception of sales revenue and net profit, everything in between tells you how we separate the beans into piles,” he said. “It makes a big difference whether you are successful in your business because these calculations help you determine your markups.”

“You are at a disadvantage if you aren’t charging accurately,” he said. “It makes a difference.”

Without a handle on costs, experienced custom builders can find it difficult to add remodeling to their portfolios, Butler said.

“The biggest problem for small custom builders considering remodeling is underestimating their labor costs,” he said, while noting that most custom builders use subcontractors and don’t pay employees on an hourly basis.

“They don’t understand how long it’s going to take and how much it’s going to cost so they underbid the job" and take it away from more experienced remodelers, Butler said.

“Then they get slammed and say that it’s the last remodeling job they’ll do because they have lost so much money,” Butler said. "They are setting themselves up for failure because they don’t know where the money goes.”

Take Control of Your Finances

“Accounting & Financial Management for Residential Construction,” available through NAHB BuilderBooks, is a solid resource for builders, remodelers, developers and contractors that provides detailed information on how an accounting system operates and the basic principles for processing financial data.

The publication explains the key measurements that residential construction professionals should track; the integration of job cost accounting with estimating, purchasing and scheduling; and more.

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

Learn How to Run a Successful Remodeling Company

“The Paper Trail: Systems and Forms for a Well-Run Remodeling Company,” available through NAHB BuilderBooks, shows how to use proven management systems to run a successful remodeling company.

The publication includes a CD containing 160 essential forms and documents — culled from successful remodelers across the country — that you can customize to suit your business needs.

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

'How to Find a Professional Remodeler' Brochures Available at BuilderBooks.com

"How to Find a Professional Remodeler," available at NAHB BuilderBooks, promotes the professionalism of your remodeling business by offering a wealth of valuable advice to customers on the process of selecting a remodeler.

The newly updated brochure highlights the before and after photos of the most frequently remolded rooms in the house.

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

Big Share of Energy Efficiency Tax Credits Used to Replace Windows and Skylights

New information from the U.S. Census Bureau on residential energy efficiency tax credits shows that replacement windows and skylights accounted for 34% of the 25C tax credit claims made by existing home owners, followed by insulation upgrades, 13%; doors, 9%; and qualified roofing materials, another 9%.

Section 25C provides a credit of 10% for the purchase of qualified energy efficiency improvements to existing homes — such as the installation of energy-efficient windows, doors, roofing and some home appliances like water heaters.  

The maximum 25C credit for a taxpayer is $500, and no more than $200 of that amount can be used for windows.

The energy-efficient home products must be “placed in service” during 2011.

Energy-saving appliances accounted for the remaining 25C claims — 17% for hot water boilers; 16% for heat pumps, air conditioners, water heaters and stoves; and 3% for air circulating fans used with a natural gas, propane or oil furnace.

A total of $25.1 billion of qualified expenditures were claimed under the credit in 2009, which generated a significant amount of economic activity.

NAHB estimates that every $100,000 in remodeling expenditures generates 1.11 full-time jobs.

Under Section 25D, a total of $738 million in tax credits were claimed for 2009, with an additional $69 million of these credits carried forward from prior years.

Section 25D provides a tax credit for the installation of certain power generators in new and existing homes — including solar panels, geothermal heat pumps, small wind turbines and fuel cells.

These credits are uncapped and available for 30% of the cost, through 2016.

They are only valid for improvements to the taxpayer's principal residence — with the exception of qualified geothermal, solar and wind systems that can be installed on any residence.

Solar panels and geothermal heat pumps each accounted for about 45% of the credits claimed — followed by solar water heaters, 9%; wind turbines, less than 2%; and fuel cells, 1%.

A fact sheet published by NAHB provides information on the tax credit programs.

More economic news can be found on NAHB’s Eye on Housing blog.

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

What Can We Learn From Thriving Canadian Housing Market?

By Doris Pearlman, MIRM Possibilities for Design

When traveling north of the border recently, I found Canada’s market extraordinarily vibrant, particularly in Ontario where condo sales are red hot.

The market is so hot, some observers are wondering what lessons U.S. builders and marketers can take away from our neighbors to the north.

The Canadian Market Is Strong and Resilient

According to Peter Comyns, sales manager for PMA Brethour Realty Group, one of Canada's leading real estate research, marketing and new-home sales firms, favorable factors include a less chaotic economy and the county’s banking system.

“When most of the world’s markets crashed after 2007, Canada’s housing market experienced a relatively short eight-month downturn, causing investors worldwide to turn there for a safe haven,” Comyns said. “The Canadian banking system was regulated to a greater degree, creating less post-housing-boom chaos.”

He also cited stricter lending requirements governing qualifications and downpayments and far fewer home equity loans than in some U.S. markets.

Also, from 2000 through 2008, the rise in housing prices was less rapid in Canada than in many U.S. markets. This resulted in a much softer landing for the Canadian market, with current prices higher than they were in September 2008.

Attracting a steady, educated, immigrant workforce is another factor that has bolstered the Canadian economy, Comyns said. Of the 200,000 people who immigrate to Canada annually, 60% — or 120,000 — move to Toronto.

High-tech companies such as Google and RIM, which makes BlackBerry smartphones, have corporate campuses in the Toronto metropolitan area and this employment base also has strengthened the new-home and rental markets there.

The Toronto rental market, which is expected to produce 22,000 units this year, is attracting investors at a steady pace, especially since it’s expected to grow to 90,000 units by 2030-2040, according to demographic projections.

Bold, high-contrast paint details appeal to the targeted young, professional buyer — while making small spaces appear larger.

Success in the Suburbs

Kitchener, Ontario, a once-crumbling industrial town about an hour from Toronto, is now a thriving suburb with a healthy housing market.

“Kitchener is quickly morphing into a favorite hub of high-tech companies, university students and others wishing to escape Toronto’s traffic and high prices,” said Anne Marchildon, vice president of sales and marketing Andrin Limited, which recently completed a successful condominium community in Kitchener and opened a sales pavilion for another.

Known locally as the “Silicon Valley of the North,” RIM recently announced it would be filling 600 new positions in Kitchener.

With downtown Kitchener designated as a Building Improvement Area (BIA) and residents and businesses committed to redeveloping it, Andrin, along with the city of Kitchener and the BIA, is developing City Centre, which will include condominiums, retail space, a cafe, gallery, public and private parking and the rehab of a historic boutique hotel.

When complete, City Centre will include 400 units in two towers, according to Marchildon, with construction beginning once 80% of the building is sold — a lending requirement common in Canada.

The 3,500-square-foot sales pavilion created to sell the condominiums showcases two fully furnished models and includes a 2,000-square-foot presentation and sales area.

Prospective buyers — predominantly young professionals, singles and couples, along with some move-down buyers and investors — are considered tech-savvy and environmentally conscious. To appeal to this demographic, sales center displays emphasize flexible floor plans, green features and high-tech living — and the structured parking will have accommodations for electric cars. Homes at City Center start at $189,900, with an average price of just under $350,000.

A dining room can serve as an office, which displays flexibility in small spaces.

Selling Urban Living in a Suburban Setting

Most of the prospective buyers have a decidedly urban and “West Elm/Crate & Barrel” contemporary sensibility, said John Limiero, of Possibilities for Design, which merchandised the model suites.

Floor plan designs make the most of the space, incorporating additions such as a command center in the hallway and rooms that serve a variety of uses. “Demonstrating flexibility is key in the Canadian market,” says Limiero.

Andrin offers its buyers standard appointments such as granite countertops, stainless steel kitchen appliances, energy- efficient front-loading laundry centers and upgraded baths in order to compete for the attention of this young, techno-hip buyer.

The builder also offers an audio/video wiring package that enables residents to tie their smartphones and computer tablets into their in-home AV systems, an option that has been extraordinarily well-received.

“We wanted to not only meet, but to exceed, the expectations of this buyer, and that’s what we did,” said Marchildon.

Comyns and the PMA Brethour sales team has been a crucial element of City Centre’s success as well, she added. “The co-broke market in Kitchener/Waterloo is much less entrenched and sophisticated than that of the greater Toronto area, and the effectiveness of your on-site team is critical to the overall success of the project.”

A technology niche was carved out of a hallway to provide home owners a place for plug-ins and docking stations.

Showcasing Lifestyle — the Canadian Way

Marchildon believes another element of the success of City Centre has been the merchandising team’s ability to accurately interpret the needs of the community’s prospective buyers. While most are tied to their iPhones, BlackBerries and iPads around the clock and sustainable living is important, these downtown dwellers are used to making the most of smaller spaces.

With floor plans at City Centre ranging from 510-1,150 square feet, the builder’s objective was to create and demonstrate functionality and livability. The marketing team decided to show two models — a 680 square-foot home with one bedroom and den targeted toward singles; and a 915-square-foot, two-bedroom home with a command center geared to a young married couple and conveying a slightly more sophisticated feel.

“Spaces tend to be tighter than in many U.S. condo markets and, as spaces shrink, concessions must be made to accommodate function and livability,” said Limiero,  

Scale becomes paramount — but that scale also must be smart.

Marchildon insisted that sofas had to be at least 72 inches to 84 inches wide in order to seat three people. And both models feature a small dining table that can provide space for a sit-down formal dinner, a party buffet or studying.

Equally important to the builder, merchandising team — and the buyer — is functionality.

So a technology niche was carved out of a hallway to provide home owners a place for plug-ins, docking stations and email checks, and the home office also can be used as a formal dining room or guest room.

The sales center demonstrates “the livability of condominium spaces and the flexibility to accommodate a wide variety of lifestyle needs,” said Marchildon.

Creating Memories

White-on-white wallpaper was used on a bedroom accent wall to create depth and interest. In fact, every bedroom wall modeled at City Centre features a memory point, such as the headboard of white metallic circles that contrasts with a mulberry brown wall to create depth and interest.

Hard-working, high-contrast paint details — such as gray and yellow stripes on a dining/living room wall — also create impact while visually magnifying two adjoining spaces.

“It was important to create a vibrant and bold statement for this young buyer,” said Limiero.

Construction of the residential units is expected to begin next spring.

Doris Pearlman, MIRM, is the founder of Possibilities for Design, Inc., a nationally-recognized, award-winning interior design and merchandising firm based in Denver. Pearlman, an active member of NAHB’s Institute of Residential Marketing, regularly teaches IRM courses and was recognized with IRM’s Excellence in Education Award in 1999. For more information, visit the Possibilities for Design website, or call Perlman at 303-571-0325.

A version of this article originally appeared in Sales + Marketing Ideas magazine.

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.

Create Marketing Magic With Videos on YouTube

With YouTube one of the three most visited sites on the Internet, panelists of the recent “YouTube101” webinar sponsored by NAHB’s National Sales and Marketing Council urged builders and remodelers to put videos on Internet video sharing sites in order to effectively market their homes and services.

“There’s an unquenchable thirst for videos,” said Rich Carlson of Carlson Communications, who noted that billions of people view videos on YouTube every day. “I think videos are becoming the new norm for conveying information.”

“Think about YouTube in real estate terms,” added Meredith Oliver, of Meredith Communications. “It is really about location. You want to put your neighborhood or services on highly trafficked areas. You want to have a presence where they figuratively and virtually hang out — and they hang out on YouTube.”

Oliver said that builders and remodelers should regard posting videos on YouTube and other video sharing sites much like signage that leads prospective home buyers and customers not to communities, but to their websites. Think of posting videos — and linking them to community and builder websites — “as brand new roads to your neighborhood,” she said.

The videos should also be accompanied by cross promotion through other Internet-related sites and tools such as social networking, blogs, email, news feeds and any other online presence a builder or remodeler might have, Oliver said. The cross promotion will improve search engine optimization and help increase website visibility and awareness.

Just about everything that applies to using videos for marketing can also apply to photo sharing, Oliver said. Builders and remodelers can create similar impacts and boost their website traffic by using Internet-based photo sharing sites such as Flicr and Picasa, which is owned by Google. Many of the sites include free editing functions.

Photo sharing can also be a less expensive way to showcase homes, communities, products and events, especially for those not ready to use video, she said.

Types of Videos That Work for the Industry

The types of videos that building industry professionals will find useful in promoting their products and services include testimonials, informational videos, product demonstrations and question-and-answer videos, Carlson said.

He said all four types of videos are cost-effective and should be consumer-oriented and consumer-friendly. He added that product demonstrations can be created to answer questions while consumers learn more about the home or product so salespeople can devote more time toward closing the sale.

Industry professionals should also consider creating consumer interviews videos and events and training videos, which, in addition to training contractors, can be created to show salespeople how their company’s houses are built.

Creating Successful Videos

To create successful videos, builders and remodelers should first determine where the videos will be shown and then use the appropriate format, lighting, sound and images, Carlson said.

“High definition video is being used more and more,” he said, “and you want to make sure it is well lit.” He also said the videos should not have background noises or other distractions that can annoy or divert a viewer’s attention and that builders should vary the images they use on their videos.

Industry professionals can also use the videos, or parts of them, in other marketing such as in television ads, on the company website, in sales centers, at trade shows and through direct mail or email. Elements of the video’s soundtrack can also be used in radio ads, Carlson suggested.

Keep It Short

Videos should be short and grab the viewer's attention within the first 10 seconds, Oliver said.

“YouTube is its own unique platform,” she said. “Wow them visually and with music.”

Videos should be between one and two minutes long, “or you’re going to lose them,” Oliver said. “Don’t be too stuffy; don’t work off a script that is stilted. Keep your videos lively and fun.”

Just as importantly, Oliver said every video should have a call to action. “It can be a crawl across the bottom of the screen or a slide promoting a specific action during a limited period of time” by contacting the company or visiting its website.

Replays Available

A replay of “YouTube 101,” first presented as part of the Webinar Wednesdays series by NAHB Education, is available by clicking here. Handouts from the presentation and a YouTube 101 marketing checklist are also available.

Building Systems Councils Gift of Custom Home for Wounded Marine Takes Shape

A 5.8-magnitude earthquake and Hurricane Irene may have stalled progress on the NAHB Building Systems Councils’ (BSC) gift of a custom log home for a wounded Marine who served two tours of duty in Iraq, but the volunteers in the councils’ “Building Systems for Soldiers” program were not going to let Mother Nature delay them for long.

They broke ground on the home in Jacksonville, N.C., on Aug. 17, shortly before the earthquake and hurricane struck. And once the lot was dry enough to continue, they dug the foundation and have already installed footers and stacked in place the concrete masonry walls. 

The BSC is spearheading the project in conjunction with philanthropic organization, Operation Finally Home, which builds homes for wounded veterans and their families and was integral in selecting Marine Staff Sgt. (ret.) Vincent Gizzarelli, his wife Jamie and their five children for the BSC project.

BSC members and other generous donors are providing Gizzarelli, who suffers from debilitating head injuries, shrapnel wounds and post-traumatic stress disorder, with a 4,000-square-foot home near Camp Lejeune, N.C. — the largest Marine Corps base on the East Coast. Once the home is completed early next year, the Gizzarellis will own it mortgage-free.

After renting a three-bedroom house for years, owning a home that could adequately meet their family’s needs seemed like a dream beyond reach — until the BSC, Operation Finally Home and individual benefactors collaborated on this project.

Now, as the home’s foundation takes shape, Gizzarelli can envision a solid foundation for his family’s future as well.

 “The use of concrete masonry units (CMUs) in this project will provide a number of inherent values both to the foundation and the overall home,” said Harry Junk, a concrete masonry professional and chairman of the BSC. “These values — durability, energy efficiency, disaster resistance, design flexibility and sustainability — will make the home a solid investment for Vincent and Jamie for years to come.”

“The Gizzarelli home is well on its way,” says Nicole Robinson, who, with her husband Joel, owns and operates Log Homes of America, which is providing the log home package. “National and local sponsors have been so generous from the get go. This is a huge undertaking for any one person, but we have a great team working on it.”

Contributions Welcome

Builders, suppliers, contractors and trades people who want to help complete the Gizzarellis’ home can still participate.

Several major building components are still needed and financial donations are welcome. Onsite labor also is urgently needed.

A rendering of the custom log home, which is expected to be completed early next year.

“We are still seeking product and monetary donations so we can keep the momentum going,” said Robinson. “Some of the things we need right now are sheeting, framing materials, pressure-treated materials, insulation and architectural shingles.”

Project coordinators also are asking business owners to reach out to their networks for additional support. 

Shelter Systems, Limited, a state-of-the-art truss and component manufacturer based in Westminster, Md., is donating the floor and roof trusses, truss beams and truss hardware for the project. Shelter Systems’ owner and BSC Vice Chair Dwight Hikel, through his industry contacts, also is helping the project team secure miscellaneous framing materials and shipping mechanisms.

“You don’t have to have the exact product to help this worthy cause,” said Hikel. “You just have to know the right person to call.”

To contribute to the BSC’s “Building Systems for Soldiers” project, visit www.nahb.org/buildingsystemsforsoldiers; or email bsc@nahb.org, or call 800-368-5242 x8576.

New Award-Winning Library a Hub of the Community in St. Cloud, Minnesota

A two-story, 118,000-square-foot public library in St. Cloud, Minn., garnered national recognition for W. Gohman Construction Co., based in St. Joseph, Minn., with a Grand Award in the NAHB National Commercial Builders Council's 2011 Awards of Excellence for light commercial projects.

“Being recognized as the Grand Award winner by the selection committee is fantastic,” said Mike Gohman, president of the construction company.

“Having an independent group of peers recognize our hard work was a great way to finish this project,” he said, noting that it is the largest undertaking his company has completed to date.

Serving families with young children and teens, as well as students at nearby local colleges, the Great River Regional Library was built on the site of a former car dealership on Highway 23, known as the Gateway to St. Cloud’s downtown.

Yet the library is also close to scenic Lake George and across from a major high school, and it has itself become a highly visible city landmark.

Support for the eye-catching new library was enthusiastic throughout the community, with excitement building as it neared its opening date, Gohman said.

The library's colorful children's corner

The new facility boasts a large and colorful children’s library, with adjoining program rooms and interactive play areas.

For older patrons, there are study spaces, a language learning center and a computer lab with assistive technology on four computer stations.

The site provides a place for teens and includes three fully equipped meeting rooms.

The library’s modern self-checkout stations are perfect for busy families on the go.

The bottom line is that the number of library cards issued and books checked out at the new library have been significantly outpacing those at the old facility it replaced, Gohman said.

The well-equipped interior of the building is complemented by the exterior’s bold design — a granite and copper facade with large windows commanding beautiful views of the surrounding countryside.

Recycled materials from the existing site and building were used in the project, as were locally sourced and sustainable materials.

A vegetated roof system appears on the lower roof, and the site includes a rain garden and subsurface storm water retention basins.

Energy-efficient plumbing and light features are found throughout the building, and both of its floors emit radiant heating that provides a comfortable warm floor surface.

“Not only is the library something to look at, but it’s serving more patrons in more ways than ever before, illustrating the ability of buildings to enrich the community,” said Carl Harris, 2010 chairman of the Commercial Builders Council.

W. Gohman Construction Co. is a member of the Commercial Builders Council and the Central Minnesota Builders Association.

The company also received a 2011 Award of Excellence Project of the Year award for its Cub World Medieval Castle in St. Joseph, Minn.

For information on commercial building resources available from NAHB, email Lisa Leone, or call her at 800-368-5242 x8455.

Oct. 19: Free Webinar on Building Profits, Possibilities With Home Health Technology

With more home owners having a strong desire to remain independent and at home, Aging-in-Place Technology Watch's Laurie Orlov predicts that the aging and technology industry will reach $20 billion by 2020.

To help members tap into this market, NAHB is offering a free-to-members webinar, “Build Profit and Possibilities with Home Health Technology,” to provide insights into this growing area of the home building industry, highlighting current trends in consumer preferences with respect to design and technology.

Attendees will:

• Hear current trends in Aging-in-Place/50+ design trends
• Learn future considerations for prospective buyers’ home healthcare needs
• Understand the importance and benefits of builder/remodeler and electronic systems contractor (ESC) collaboration as well as the best way to develop a working relationship to meet current technology demands

Panelists include Tony Crasi, of The Crasi Company, an award-winning residential design/build firm in Cuyahoga Falls, Ohio, and chair of the Home Technology Alliance (HTA); and Ric Johnson , of Right@Home Technologies Ltd., a specialty electronics company focusing on health and wellness through its Elite Systems Solutions division, and HTA vice-chairman.

Presented by NAHB’s Business Management & Technology Information Committee, the webinar will be from 2:00-3:00 p.m. on Wednesday, Oct. 19.

To Register

The webinar is free to NAHB members and $44.95 for non-members.

To register online, visit the NAHB Webinar Wednesdays registration page; or call NAHB’s Office of the Registrar at 800-368-5242 x8338, or email registrar@nahb.org.

For more information, email Marcia Childs at NAHB, or call her at 800-368-5242 x8388.

Oct. 26: Construction Forecast Webinar to Provide Latest Housing Data, Market Opinions

Register for the NAHB Fall Construction Forecast Webinar for up-to-the-minute analysis of the latest housing numbers and market trends right to their desktop.

The webinar will be held from 2:00-4:00 p.m. ET on Wednesday, Oct. 26.

Speakers David Crowe, NAHB chief economist; Joel Prakken, senior managing director and co-founder of Macroeconomic Advisers; and Robert Denk, NAHB’s assistant vice president for forecasting and analysis, will address issues affecting the housing industry and the economy, including:

• Which housing markets are improving and what it means for housing 
• Whether acquisition, development and construction credit becoming more available
• If house prices are back in line with incomes and what it means for housing.

The fee is $29.95 for NAHB members and home builders associations and $49.95 for non-members.

To Register

For more information and to register, visit www.nahb.org/cfw. Online registration ends at 11:00 a.m. on Wednesday, Oct. 26.

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/.

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.

Nov. 2: Webinar Looks at What’s Cooking in Kitchen Design

With current home design trending to less space and more quality, a panel of architects and designers participating in a webinar on "Reinventing the Kitchen” will explore the dynamic concepts, products and materials that add value to today's kitchens.

Sponsored by the NAHB Design Committee, the webinar will be held from 2:00-3:00 p.m. on Wednesday, Nov. 2.

Panelists will discuss a survey of lifestyles and trends that affect home owners' preferences and provide insights into how to compete in the current housing market.

Attendees will:

• Learn how priorities are changing in kitchen design, products and materials
• Take away a list of action points for improving their next kitchen plans Increase their knowledge of current trends in kitchen design
• Broaden their understanding of the kitchen elements that are most attractive to buyers

Participants can earn one hour of continuing education credit toward their designations.

To Register

The fee is $19.95 for Design Committee members, $24.95 for NAHB members and $44.95 for non-members.

To register online, visit the NAHB Webinar Wednesdays registration page; or call NAHB’s Office of the Registrar at 800-368-5242 x8338, or email registrar@nahb.org.

For more information, email Jaclyn Toole at NAHB, or call her at 800-368-5242 x8469.

Nov. 9: Learn to Create and Market on a Budget That Does More With Less

With marketing departments having to accomplish more with less, the webinar, “Creating the Modern Marketing Budget,” will explore how to create a budget that helps maximize current resources, while being able to adapt when housing starts recover.

Presented by the National Sales and Marketing Council (NSMC), the webinar will be from 2:00-3:00 p.m. ET on Wednesday, Nov. 9.

The webinar can help decision makers use what they now have to market their products more efficiently, while still preparing to hit the ground running when their local market picks back up.

Attendees will:

• Discover the new basics of budgeting
• Learn where to save and where to splurge
• Learn how to create flexibility in your budget before sales start turning around

Participants can earn one hour of continuing education credit toward their designations.

To Register

The fee is $19.95 for NSMC members, $24.95 for NAHB members and $44.95 for non-members.

To register online, visit the NAHB Webinar Wednesdays registration page; or call NAHB’s Office of the Registrar at 800-368-5242 x8338, or email registrar@nahb.org.

For more information, email Tamsin Ayer at NAHB, or call her at 800-368-5242 x8673.

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.

Nov. 16: Webinar Explores Strategies, Best Practices for Changing 50+ Market

Builders and developers of 50+ lifestyle communities will have to reset their expectations and adapt their operations to prepare for the “new normal” as today’s increasingly diverse 50+ consumers demand a much different product from those offered before the downturn.

In the webinar, “Adjusting to the ‘New Normal’ — Strategies and Best Practices From 50+ Builders,” attendees will learn how leading 50+ builders are adjusting to the changing landscape and preparing their companies for success as panelists candidly share how they plan to serve the coming wave of boomer buyers.

The webinar, presented by the 50+ Housing Council, will be held from 2:00-3:00 p.m. EST on Wednesday, Nov. 16,

During the webinar, panelists will:

• Provide insights on how their 50+ customer base has evolved and how they intend to meet market demand
• Offer best practices on how to streamline operations and reset priorities in a rapidly evolving business climate
• Explore changes in the development of 50+ lifestyle communities, with a focus on product, design and amenities.
• Offer strategies that are resulting in increased sales in today’s challenging economy

Participants can earn one hour of continuing education credit toward their designations.

To Register

The fee is $19.95 for 50+ Housing Council members, $24.95 for NAHB members and $44.95 for non-members.

To register online, visit the NAHB Webinar Wednesdays registration page; or call NAHB’s Office of the Registrar at 800-368-5242 x8338, or email registrar@nahb.org.

To learn more about NAHB 50+ Housing e-Learning events, visit www.nahb.org/50pluswebseminars.

Find Out What 45+ Housing Buyers Want

“Right House, Right Place, Right Time: Community and Lifestyle Preferences of the 45+ Housing Market,” available through NAHB BuilderBooks, will help determine the right design, home features and amenities to attract boomer home buyers in your market.

Author Margaret A. Wylde guides readers through the latest survey results on this important consumer group and explains what their responses mean for today’s and tomorrow’s home building industry.

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

Nov. 30: Learn to Create Expensive Looking Details Within an Affordable Budget

Builders will gain a marketing edge from tips and practical examples of how to make their homes greener, deliver more home technology and offer greater architectural design — all within a reasonable budget — during the “2011 Affordable Million Dollar Details and Sneak Peek Into 2012 Cost-Saving Details” webinar beginning at 2:00 p.m. on Wednesday, Nov. 30.

Presented by the NAHB Design Committee, participants will:

• Learn how to create expensive-looking details within a budget
• Explore proven methods for offering basic, economical home technology
• Acquire field-tested tips for ways to offer greener homes without adding too much to the buyer's bottom line
• Gain proven strategies for designing and building homes that compete on value rather than price alone

Participants can earn one hour of continuing education credit toward their designations.

To Register

The fee is $19.95 for Design Committee members, $24.95 for NAHB members and $44.95 for non-members.

To register online, visit the NAHB Webinar Wednesdays registration page; or call NAHB’s Office of the Registrar at 800-368-5242 x8338, or email registrar@nahb.org.

For more information, email Jaclyn Toole at NAHB, or call her at 800-368-5242 x8469.

Dec. 7: Webinar to Teach How to Make Networking Fun, Productive, Less Stressful

With more than three-quarters of all business transactions involving some form of networking, the webinar, “Taking the Strange Out of Meeting Strangers,” will teach participants the basics of networking and how to make it fun and productive, not stressful.

Presented by Professional Women in Building, the webinar will be held from 2:00-3:00 p.m. ET on Wednesday, Dec. 7.

This webinar will teach participants how to develop their 30-second elevator pitch — a short summary that quickly defines their product, services or company — break into the crowd and focus on quality, not quantity.

Participants will learn how to:

• Become comfortable in networking situations
• Make networking enjoyable and productive
• Identify contacts that are meaningful for you and your business

Participants can earn one hour of continuing education credit toward their designations.

To Register

The fee is $19.95 for Professional Women in Building members, $24.95 for NAHB members and $44.95 for non-members.

To register online, visit the NAHB Webinar Wednesdays registration page; or call NAHB’s Office of the Registrar at 800-368-5242 x8338, or email registrar@nahb.org.

For more information, email Carmel Nayman at NAHB, or call her at 800-368-5242 x8410.

Submit Online Nominations for 2011 Top Designee, Educator Honors by Nov. 1

NAHB is now accepting nominations for the 2011 Designee of the Year awards — which honor leading builders, remodelers and associates who hold NAHB professional designations — and the 2011 Educator of the Year award, which honors quality instructors of NAHB’s designation courses.

Nominations can be submitted online and are due by Nov. 1.

“Earning a designation means you are committed to the industry and wish to maintain the highest standards of professionalism,” said Michael Copp, senior vice president of NAHB’s Member Services and Education.

“The Designee of the Year winners go the extra mile to share what an NAHB designation has done for them personally and professionally," he said. "They encourage others to continue to learn and expand their industry knowledge.”

2011 Designee of the Year nominations are being accepted for the following designations:

• Certified Aging-in-Place Specialist (CAPS)
• Certified Graduate Associate (CGA)
• Certified Graduate Builder (CGB)
• Certified Green Professional (CGP)
• Certified Graduate Remodeler (CGR)
• Graduate Master Builder (GMB)
• Graduate Master Remodeler (GMR)
• Housing Credit Certified Professional (HCCP) 
• Master Certified New Home Sales Professional (Master CSP)
• Master Certified Green Professional (Master CGP)
• Master in Residential Marketing (MIRM)

To be eligible to receive a 2011 Designee of the Year award, candidates must be active designation holders and members in good standing.

Members of the designations’ governing bodies and home builders association staff members are not eligible.

The Designee of the Year winners will be selected by the respective governing bodies based on criteria set for receiving each award, including a review of the answers to the questions and support documentation submitted.

To Apply

Nominations for the awards may be made by active designees, home builders associations and other organizations. Self-nominations also are accepted.

To apply online by Nov. 1, click here.

Top Instructors to Be Honored

New this year, the 2011 Educator of the Year award honors instructors who promote the value of earning a designation and contribute to the growth of NAHB’s education programs.

“NAHB’s designation programs would not be what they are without quality instructors,” Copp said. “We’re excited to launch the Educator of the Year award to showcase our top instructors and motivate others to become teachers and share their expertise with their peers in the housing industry.”

2011 Educator of the Year awards will be presented in four categories:

• Builder/Remodeler — for CGA, CGB, GMB, CGR and GMR
• CAPS
• Green — for CGP and Master CGP
• Institute of Residential Marketing/Sales & Marketing — for CSP, CMP, Master CSP and MIRM.

Active designees, students, HBAs that hold a joint-venture license and instructors are encouraged to nominate outstanding instructors by Nov. 1.

To Apply

Nominees must be in good standing, have maintained high speaker ratings and taught at least four classes over the past two years. Members of the designation boards are ineligible for the award.

To apply online by Tuesday, Nov. 1, click here.

Winners of the 2011 Designee of the Year and Educator of the Year awards will be recognized at NAHB Education’s Designation Achievement Reception on Tuesday, Feb. 7, at The Peabody Orlando during the 2012 NAHB International Builders’ Show.

Registration information on the reception will be available soon.

For more information, email Lynette Jones at NAHB, or call her at 800-368-5242 x8445.

NAHB Seeks Professional Designation Holders Who Are Breaking the Mold

NAHB wants to hear from NAHB professional designation holders who are meeting their customers’ needs and advancing the housing industry by working on a project that is interesting, innovative or breaking the mold.

NAHB is looking for examples of how those who have earned NAHB designations have succeeded in using them to improve their businesses.

Builders, developers and remodelers who hold NAHB designations such as Certified Graduate Builder (CGB), Certified Graduate Remodeler (CGR), Certified Aging-in-Place Specialist (CAPS) and Certified Green Professional (CGP) are encouraged to share their unique projects that have been completed or are in the works.

Projects can include new homes, remodeling jobs or communities of all sizes and types, including single-family, multifamily, custom, aging-in-place/universal design and green.

In addition, NAHB wants to hear from sales and marketing professionals who have earned the Master in Residential Marketing (MIRM), Master Certified New Home Sales Professional (Master CSP) and NAHB’s other sales and marketing designations.

Sales and marketing pros are invited to share any unique marketing approaches that have been effective in today’s tough marketplace.

The most interesting projects will be featured in Nation’s Building News and other NAHB publications.

Submit your project and ideas today; or email Calli Schmidt at NAHB, or call her at 800 368-5242 x8132.

Online ‘Basics of Building’ Introductory Class Available to Help Prepare for IBS

“Basics of Building,” the popular class that introduces industry newcomers to the business of home building and remodeling, is now available online from NAHB Education.

As they prepare to meet customers and clients at the 2012 NAHB International Builders’ Show in Orlando, the online class enables vendors, suppliers, brokers, retailers and other service providers seeking a solid grounding in residential construction to complete the class well in advance of the show.

The “Basics of Building” course can help attendees:

• Describe product types, current trends and stakeholders in the residential construction industry
  
  
• Contrast and elaborate on the sales and marketing functions of the residential construction industry
  
  
• Be prepared to discuss the critical nature and complexity of land acquisition and development
  
  
• Understand the financial tools available to support building and remodeling projects
  
  
• Assess strategies to strengthen the relationship between suppliers and builders/remodelers
  
  
• Explain the steps involved in the residential construction process
  
  
• Describe the importance of post-construction activities — including the closing, customer care and after-the-sale service

NAHB educational designation holders can earn six hours of continuing education credit by successfully completing the “Basics of Building” online course. In addition, the credit hours can help attendees earn the Certified Graduate Associate (CGA), Certified New Home Sales Professional (CSP) and Master New Home Certified Sales Professional (MAster CSP) designations.

To Register

For more information and to register, visit “Basics of Building” on the NAHB website; or email the NAHB Professional Designation Help Line, or call 800-368-5242 x8154.

Education Calendar

Oct. 19	“Build Profit and Possibilities with Home Health Technology”	Webinar
Oct. 26	"Fall Construction Forecast Webinar"	Webinar
Nov. 2	"Reinventing the Kitchen”	Webinar
Nov. 9	"Creating the Modern Marketing Budget"	Webinar
Nov. 9-11	NAHB Summit on Association Excellence	Dallas, Texas
Nov. 16	"Adjusting to the 'New Normal' — Strategies and Best Practices From 50+ Builders"	Webinar
Nov. 30	"Affordable Million Dollar Details & Sneak Peek Into 2012 Cost Saving Details"	Webinar
Dec. 7	"Taking the Strange Out of Meeting Strangers"	Webinar
Dec. 14	"LIHTC Webinar — Combining LIHTCs with Other Programs"	Webinar
2012
Feb. 4	"Advanced Green Building: Building Science"	Orlando, Fla.
Feb. 4	"Advanced Green Building: Project Management"	Orlando, Fla.
Feb. 4	"Business Management for Building Professionals"	Orlando, Fla.
Feb. 4	"The Challenge of New Home Sales Management (IRM IV)"	Orlando, Fla.
Feb. 5	"Green Building for Building Professionals"	Orlando, Fla.
Feb. 5	"Marketing & Communication Strategies for Aging & Accessibility (CAPS I)"	Orlando, Fla.
Feb. 5	"Train the Trainer"	Orlando, Fla.
Feb. 6	"Design/Build Solutions for Aging and Accessibility (CAPS II)"	Orlando, Fla.
Feb. 6	"Lifestyle Merchandising, Advertising, and Promotion Strategies (IRM III)"	Orlando, Fla.
Feb. 6	"Project Management"	Orlando, Fla.
Feb. 7	"Builder Assessment Review (BAR)"	Orlando, Fla.
Feb. 7	"Design/Build"	Orlando, Fla.
Feb. 7	"Home Technology Integration"	Orlando, Fla.
Feb. 7	"Negotiating Skills"	Orlando, Fla.
Feb. 7	"Sales & Marketing for Remodelers"	Orlando, Fla.
Feb. 7	"Professional Remodeler Experience Profile (PREP)"	Orlando, Fla.
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 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.

Submit Comments on ANSI Square Footage Standard Update by Dec. 5

The NAHB Research Center is accepting public comments for an update on the standard used to define what areas of a single-family home can be counted when calculating its total square footage. The public comment period ends Dec. 5.

Accredited by the American National Standards Institute (ANSI) as a Standards Development Organization, the Research Center is serving as the secretariat or administrator of the development process for the American National Standard for Single-Family Residential Buildings, Square Footage — Method of Calculating, ANSI Z765-2003.

The standard — which provides methods to determine and report square-footage measurements for attached and detached single-family houses — was originally developed by the Research Center in 1996 and has been in use since then.

As an ANSI-approved standard, ANSI Z765-2003 is subject to periodic updates to ensure that advances in building codes, technology and other developments can be considered for incorporation.

Earlier this year, a consensus committee was selected to review the standard. After meeting twice via teleconferences to discuss the standard, the committee decided that no substantive changes were required and proposed to reaffirm the existing document.

However, individuals or organizations can submit comments to be considered during the 45-day public comment period.

To Submit Comments

Sections 1 through 4 of the standard are available for public review and comment. Other parts of the document, including the Foreword and Annex, are not subject to public review.

Complete instructions on filing comments are available online.

A list of the consensus committee members, meeting agendas and minutes, updates and a link to purchase a copy of the standard are also available on the same Research Center webpage.

For more information on the public comment period or the standards development process, email Tom Kenney at the NAHB Research Center, or call him at 301-430-6246.

‘2009 Home Builders’ Jobsite Codes’ Available at NAHB BuilderBooks

“2009 Home Builders’ Jobsite Codes,” available through NAHB BuilderBooks, provides easy access to the information code information builders need.

A quick reference to the 2009 International Residential Code, the user-friendly guide provides easy-to-read code requirements for every aspect of residential construction and is packed with illustrations, tables, figures and a glossary to facilitate better understanding of the codes.

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

Seventeen Finalists Named in EnergyValue Housing Awards Competition

Seventeen of the nation’s most energy-conscious builders and remodelers will be honored with the EnergyValue Housing Awards (EVHA) — which recognize builders and remodelers who successfully integrate energy efficiency into all aspects of home building and remodeling — at the 2012 NAHB International Builders’ Show in February.

The awards are given each year by the NAHB Research Center, U.S. Department of Energy (DOE), the National Renewable Energy Laboratory and NAHB.

“The diversity of this year’s crop of winners is a testament to the ability to deliver highly energy-efficient homes at every price point and in every climate zone,” said Mike Luzier, president and CEO of the Research Center.

This year’s finalists range from veteran EVHA applicants in the New Home Category to a mother-daughter start-up company that rehabbed a mid-century brick rancher to achieve an impressive HERS rating of 51, which means that the home is expected to use only 51% as much energy as an average home built to prevailing codes.

“All this year’s competitors brought their A game and submitted some outstanding examples of high-performance homes,” Luzier said.

“Some of the finalists’ houses are very affordable for their markets, and some are rather large luxury homes, but all of them presented a complete and well-executed package from design and construction through marketing and customer service,” he said.

The 2012 finalists in the New Home and Existing Home Categories include:

Cold Climate

• Colorado Dream Homes, Pagosa Springs, Colo.
• Flynner Homes & Renovations, Boise, Idaho
• Lend Lease, Nashville, Tenn.
• T.A.G. Mechanical Systems, Inc., Syracuse, N.Y. (Existing Home)
• Zero-Energy Plans, LLC & Kirby Nagelhout Construction, Coupeville, Wash. 

Moderate Climate

• Nexus Energy Homes, Stevensville, Md.
• Clifton View Homes, Coupeville, Wash.
• GreenPinkies, LLC, Fayetteville, Ark. (Existing Home)
• Scott Homes, Olympia, Wash.
• Stitt Energy Systems, Inc., Rogers, Ark.

Hot Climate

• Armstrong Builders, LLC, Honolulu
• Ferrier Custom Homes, Fort Worth, Texas
• Josh Wynne Construction, Sarasota, Fla.
• LaMirada Homes, Tucson, Ariz.
• Ferrier Builders, Inc., Fort Worth, Texas Existing Home)
• G Street, Scottsdale, Ariz. (Existing Home)
• Habitat for Humanity, South Sarasota Co, Inc., Venice, Fla. (Existing Home)

EVHA finalists will receive either Silver or Gold awards. In addition, the Builder of the Year and Remodeler of the Year will be named at the EVHA awards gala on Feb. 8 at the Icebar nightclub in Orlando.

In the past 15 years, builders and remodelers from 41 states and the District of Columbia have won 245 gold and silver EnergyValue Housing Awards.

For more information, including ticket information for the gala, visit www.nahbrc.com/evha.

'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 5,400 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.

NAHB at Work to Encourage EPA to Streamline Its Construction General Permit

In a Sept. 13 meeting with the Environmental Protection Agency, NAHB has asked for an extension of the current 2008 Construction General Permit (CGP) until June 2013, which would give the agency more time to streamline the permitting process for the discharge of stormwater from home building sites.

A draft of the new permit was proposed on April 25 under the Clean Water Act’s National Pollutant Discharge Elimination System (NPDES) program.

The current CGP has been extended by the EPA until Feb. 15, 2012 and the Office of Management and Budget will review the permit before it is finalized.

The CGP regulates the discharge of stormwater from construction sites that disturb one acre or more of land or from smaller sites that are part of a larger common development.

The permit requires those building on these sites to implement stormwater controls and develop Storm Water Pollution Prevention Plans (SWPPPs).

In reality, this means that nearly every single lot on which a home is built within a new subdivision must have permit coverage — either through a developer's permit or by the builder obtaining a permit.

At its meeting last month, NAHB asked the EPA to adopt a single-lot permit that would allow builders building on single lots to comply with a streamlined permit.

This would improve overall compliance with the stormwater program, NAHB said, because it would tailor the requirements to builders and eliminate any unnecessary requirements that are applicable to larger sites.

A single lot permit would clarify the permit requirements for small builders, distinguishing them from what is required of developers.

As those requirements now stand, they can be overly confusing.

“The CGP is largely written for developers and other operators of large construction activities,” NAHB said in its July 11 comments in response to the EPA’s draft permit proposal.

“Many of the components and directives are simply not applicable to someone who is constructing a single home on a single lot within a subdivision,” the comments said, citing the example of requiring a builder on a single lot to install sediment ponds.

At the recent meeting, the EPA asked NAHB for ideas on how provisions for a single lot permit could work within the existing draft CGP.

NAHB has said that the CGP represents an opportunity to reform existing regulation, as called for in President Obama’s Jan. 18 Executive Order 13563, “Improving Regulation and Regulatory Review.”

Among other things, the presidential directive calls for regulations to be cost-effective and in particular to provide flexibility for small businesses, which are dominant in the residential construction industry.

To help make the CGP less onerous for small builders, NAHB also said the EPA should make a greater effort to streamline the permitting process by identifying local communities with stormwater programs in the CGP. This would allow permitees to comply with the stormwater programs of local communities and avoid overlapping and duplicative requirements from the federal permit.

In 1999, the EPA established a “Qualifying, State, Tribal or Local Programs” (QLP) option to streamline the regulatory requirements for construction sites by referencing those local communities with stormwater programs in the NPDES permit.

However, the program is so complicated that most states have not adopted the QLP language.

NAHB is also seeking to include a provision in the CGP process that would enable builders to certify that there is no discharge from their site, in which case they would not need a permit.

Either voluntarily or because it is required by local law, there are builders and developers in certain parts of the country who engineer their property so that all stormwater is retained on site until it evaporates or is absorbed into the ground.

In arid regions, it is not uncommon for a project to be completed without ever being exposed to rainfall, NAHB said, and there are builders and developers who plan their ground disturbing activities during the dry season when there is less likelihood of precipitation.

The EPA believes that any construction site where the land is disturbed has a potential to discharge stormwater, NAHB said, when court decisions over the requirements of the Clean Water Act suggest that only actual discharges should require permits.

The EPA has also asked NAHB to provide a list of concerns over some of the Best Management Practices (BMPs) required by the permits and how those problems might be corrected, which will be the focus of a follow-up meeting.

The proposed new CGP includes a number of modifications, many of which are related to the implementation of the EPA’s new Effluent Limitation Guidelines (ELGs) and New Source Performance Standards for Construction and Development point sources published on Dec. 1, 2009.

Although the CGP applies only where the EPA is the permitting authority — Massachusetts, New Hampshire, New Mexico, Idaho, Washington, D.C., most U.S. territories and most Indian country lands — it also serves as a model for the permits issued in the delegated states, essentially shaping the future of their stormwater programs.

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

Despite Decline in Construction Worker Deaths, Builders Need to Provide More Safety Training

The number of fatal work-related injuries in private construction declined 10% from 2009 to 2010, according to the U.S. Bureau of Labor Statistics’ (BLS) Census of Fatal Occupational Injuries Summary, 2010 (CFOI).

Part of the BLS Occupational Safety and Health Statistics (OSHS), the summary provides a count of all fatal work injuries occurring in the U.S. during the calendar year.

While a growing focus on safety within the housing industry is one factor, the decline stems from many factors, according to safety experts at NAHB, including a significant slowdown in overall construction activity.

To accurately assess safety improvements over a period of time, employers should look at the overall construction fatality rate, which provides the number of fatalities per the number of hours employees worked.

That measure shows longer-term improvement from the period of 2006 to 2010, with construction fatalities dropping from 10.8 per 100,000 hours worked to 9.5.

Despite the improvement, however, construction still has one of the highest rates of fatal injuries of any industry, suggesting that educating workers on safety issues needs to remain a key priority for builders.

Home builders can take proactive steps to improve safety on their job sites. Before an OSHA inspector ever sets foot on the job site, builders should:

• Review their safety program
  
   
• Understand any national and local emphasis programs
  
   
• Develop procedures  for an OSHA visit and train their employees in those procedures
  
   
• Have records (300 Logs, training records, etc.) readily available and up-to-date
  
   
• Make sure their workers are properly trained on the safety requirements of the job site

Another assessment tool from OSHS — the Survey of Occupational Injuries and Illnesses (SOII) — presents frequency counts and incidence rates by industry. That data will be published later this month.

For more information on fatality rates in the residential construction industry, visit www.nahb.org/fatalitystudy; or contact Rob Matuga at NAHB, or call him at 800-368-5242 x8507.

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.

New OSHA Products Provide Guidance on Avoiding Trench Hazards

The Occupational Safety and Health Administration has released three new guidance products to educate workers about the hazards they may face in trenching operations on residential job sites.

Being caught in a trench or excavation cave-in is one of the leading causes of fatal injuries in the construction industry. Since 2003 more than 200 workers have died in trench cave-ins, and hundreds more have been seriously injured.

Some of the most common hazards that result in worker injuries during trenching and excavation work:

• Cave-ins of the soil on a side wall of an excavation occur quickly — in one to three seconds — and there is generally no time for a worker to respond and escape safely.
  
  
• The atmosphere in excavations can turn deadly when oxygen is displaced by other hazardous gasses.
  
  
• Materials falling into excavations can strike workers and cause serious injuries.
  
  
• Water can accumulate in excavations, weakening walls and leading to cave-ins.
  
  
• Damaged underground utilities can expose workers to hazardous or explosive air, electrocution or drowning.

Available on OSHA’s publications page, the new information products include:

• A “Trenching and Excavation” fact sheet — an overview of the hazards that can occur while performing trenching operations and the safety measures required to protect workers.
  
  
• The “Working Safely in Trenches” QuickCard — an easy-to-use guide to trenching hazards and safety measures, with graphics.
  
  
• A “Do Not Enter an Unprotected Trench!” poster — a resource for construction workplaces informing workers what steps must be taken to ensure trench safety.

For more information on trenching and excavation safety, check out the popular "NAHB-OSHA Trenching and Excavation Safety Handbook, which can be purchased at www.builderbooks.com.

For an NAHB Safety Card on trenching, click here.

For more information, email 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.

NAHB, OSHA Have Handbook on Prevent Trenching, Excavation Accidents

The “NAHB-OSHA Trenching and Excavation Safety Handbook,” available through NAHB BuilderBooks, explains in how to comply with OSHA excavation standards on residential job sites.

The handbook provides guidelines for conducting safe trenching and excavation operations and identifies safe work practices that can prevent serious accidents and injuries.

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

House Subcommittee Looks at Burden of OSHA Regulations on Small Businesses

At an Oct. 5 hearing before the House Subcommittee on Workforce Protections on the challenges businesses face in complying with employee health and safety regulations, Chairman Tim Walberg (R-Mich.)  urged the Occupational Safety and Health Administration to reconsider its recent policy of taking a “much more punitive” stance toward employers as it strives to improve worker safety.

“It was clear from the early days of the Administration that a new sheriff was in town who intended to take a much more punitive approach to workplace safety, and who threatened to publicly shame employers,” Walberg said as he opened the hearing.

“It was tough rhetoric that made good press, but unfortunately many of us remain concerned whether it is the best approach to worker safety,” he said.

Addressing recent increases in the agency’s penalties, OSHA Administrator David Michaels said that the penalty for a serious violation capable of causing death or serious physical harm averaged about $1,000 in 2010 for large businesses and $763 for small businesses.

“Right now the average penalty for all employers is closer to $2,000, still low, but an improvement,” he said.

In written testimony for the hearing NAHB stressed the need to reform OSHA regulations and reduce compliance costs.

“NAHB believes there are a number of ways in which to make regulatory compliance more cost-effective and make OSHA more user-friendly for small businesses, while improving housing affordability and continuing to protect the safety of workers in the home building industry,” NAHB said.

For example, OSHA fall protection requirements vary widely depending upon the type of construction activity and materials involved.

The requirements currently are triggered at six feet for most residential construction activities; at 15 feet for steel erection, such as the installation of steel beams in basements; and at 10 feet for work involving scaffolding.

NAHB said that OSHA should evaluate the regulatory burdens imposed by 1926 Subpart L-Scaffolds, 1926 Subpart M-Fall Protection and 1926 Subpart R-Steel Erection, including the economic impact and feasibility of their trigger heights.

A witness representing roofing contractors testified that OSHA is not recognizing the safe use of alternative fall protection systems as a means of complying with the changes in OSHA’s enforcement of its fall protection requirements, despite a clarification in the regulations that allows the agency to do so.

OSHA will continue to work with NAHB and other stakeholders to resolve employer compliance issues with the Subpart M-Fall Protection standard.

For more information on the hearing, email Alex Strong at NAHB, or call him at 800-368-5242 x8579.

Apply for NAHB/Builders Mutual SAFE Award by Dec. 2

Applications are available for the 2011 NAHB/Builders Mutual Insurance Company Safety Award For Excellence (SAFE), which recognizes home builders and contractors who have developed and implemented high-quality, work-site safety programs, and also honors government officials and NAHB-affiliated associations working to advance safety in the home building industry.

NAHB member companies in good standing that build residential homes or town homes using light construction methods can apply for an award.

Specialty trade contractors, remodelers and light commercial and multifamily builders — as well as NAHB-affiliated associations and federal or state occupational safety and health officials who have been nominated by an NAHB member or association — are also welcome to apply.

There is no fee to apply.

Award categories include Safety Program of the Year for single-family builders, remodelers, specialty trade contractors, multifamily builders and more.

For a detailed list of categories, requirements and an online nomination form, visit www.nahb.org/SAFE.

Applications are due by Dec. 2, 2011.

Award winners will be recognized at a ceremony during the 2012 NAHB International Builders’ Show in Orlando on Feb. 7 at the Peabody Orlando Hotel.

To Apply

For more information on the NAHB/Builders Mutual Insurance Company SAFE Awards program, or to apply, click here; or email Tonia Green at NAHB, or call her at 800-368-5242 x8163.

Sponsorships Available

NAHB is also seeking additional companies to become sponsors for the safety awards program. For sponsorship information, click here; or email Andrew Flank at NAHB, or call him at 800-368-5242 x8059.

About the Title Sponsor

Builders Mutual Insurance Company has provided more than 25 years of uninterrupted insurance coverage exclusively to the home building industry.

"Where Builders Come First" has been the focus of its attention since 1984, when the company grew out of the North Carolina Home Builders Association to provide workers’ compensation to eligible members.

Since then, its lines of coverage have expanded and its territory has expanded, but its focus has remained the same.

Builders Mutual’s close ties to home builders associations in North Carolina and other states is one of the reasons for its consistency and stability. 

Builders Mutual and its customers benefit from aligning themselves with influential home builders associations, whose mission is to foster and promote a healthy home building economy and protect the interests of those in the industry. Through this long-term relationiship, they are better able to ensure continuous financial stability and adhere to their goal of providing superior coverage and customer service.

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.

HBI Job Corps Students at Solar Decathlon See New Technologies, Share Wiring Skills

Home Builders Institute (HBI) Job Corps program students from the Woodstock Job Corps Center in suburban Baltimore attended the U.S. Department of Energy’s Solar Decathlon in Washington, D.C., last month to learn about cutting-edge home technologies and show off some of their skills.

Led by electrical wiring teacher Robert Ponzo, about 20 students visited all the demonstration homes in the competition and saw examples of energy-efficient lighting, various types of solar panels, solar tubing that channels sunlight from a dome on the roof throughout a home, induction stoves and smart homes with lighting, appliances and other features that can be managed on a computer or iPad.

Most of the features they saw require electrical wiring to operate, a skill that the HBI Job Corps students are acquiring.

“Every student asked questions because they were eager to learn about the technologies used in the homes,” Ponzo said. “They really learned a lot and got to see great innovations for homes that they can use moving forward.”

“It was a great experience,” said student James Baldwin. “I got to see solar power, energy-efficient materials and other cool technologies that can be used in home building.”

While the students were there to learn, they also were there to teach.

In addition to touring the homes, the students set up tabletop displays of miniature solar cells to show how solar and wind technologies work. They also connected the cells to the light bulbs to demonstrate their practical use and shared their expertise on solar, wind and electrical wiring with Solar Decathlon attendees.

“It’s really good for the students to be able to articulate their lessons to others,” said Ponzo.

Seeing the green technologies in the demonstration homes at the Solar Decathlon “brings to life the lessons from our classroom and training book,” he said. “The students are able to see how their electrical wiring skills connect with installing these products in residential construction.”

They’re also able to put what they learned to practical use. As the Woodstock Job Corps facility transitions from incandescent and fluorescent to LED lighting, for example, Ponzo said students are also learning and applying the different methods involved in the wiring for these more energy-efficient lights in a residential setting and commercial applications.

“We’re planning on using a lot of the ideas we saw at the Solar Decathlon for future electrical wiring training projects, such as lighting through solar tubing, solar-powered attic fans and a solar water pump,” said Ponzo.

For more information, email Keith Albright at HBI, or call him at 800-795-7955 x8911.

Sed de Saber English Language Learning Tool Available Free to Members, HBAs Till Oct. 31

Until Oct. 31, the Home Builders Institute (HBI), the workforce development arm of NAHB, is offering NAHB members and home builders associations free copies of the “Sed de Saber – Construction Edition,” the home building industry’s English as a second language (ESL) learning system.

Developed by industry experts to ensure relevancy in the construction sector, Sed de Saber uses an innovative Leapfrog technology found in millions of electronic learning programs to help teach Spanish-speaking workers 340 English-language phrases and more than 500 vocabulary words to develop conversational English-language skills.

According to the U.S. Department of Labor’s Bureau of Labor Statistics, Spanish-speaking workers experience the highest accident and injury rates among all workers on construction sites.

“This free offer gives HBAs and NAHB members the opportunity to make a difference and generate goodwill in their communities,” says HBI Chairman Don Pratt. “The Sed de Saber-Construction Edition can change lives and help make job sites safer and far more productive.”

HBI recommends that members and HBAs consider the following community outreach strategies when sharing the Sed de Saber-Construction Edition systems:

• Market Sed de Saber as a resource for builder, remodeler and associate members to use with their workforce partners.
• Donate editions to public libraries, high schools or two-year schools that offer ESL training.
• Partner with a local Hispanic contractors association by donating systems for their members.
• Donate systems to a local literacy organization. They can be found by working with such HBI partners as Literacy Powerline and   ProLiteracy.
• Identify and contact local Hispanic-serving organizations for donations.

To Order Free Copies

To order free copies of the “Sed de Saber-Construction Edition” learning system from HBI, email sedorders@hbi.org. Orders must be received by Oct. 31.

When ordering, include the following information:

• Number of systems requested
• Contact and HBA names
• Mailing address
• Telephone number

Sed de Saber – Construction Edition systems are available on a first-come, first-served basis. Nominal shipping and handling charges apply.

Owens Corning’s EcoTouch Insulation Certified by USDA

Owens Corning on Oct. 5 announced that its award-winning EcoTouch Insulation is the first fiberglass insulation to be certified by the U.S. Department of Agriculture as a bio-based product.

The certification is part of a new USDA labeling initiative to identify products with ingredients made from renewable plant materials and encourage their purchase and use.

Presidential Executive Order 13514, Federal Leadership in Environmental, Energy, and Economic Performance, mandates the purchasing of bio-based products under a preferred procurement program for federal agencies and their contractors.

In addition to the USDA certification, EcoTouch Insulation was recently certified by Scientific Certifications Systems (SCS) for new recycled content figures: total recycled content rose from 50% to 58% for faced batts and rolls, and to 65% for unfaced batts, rolls, MBI and loosefill.

The USDA and SCS certifications add to the growing list of accolades for EcoTouch Insulation.

In August, it was ranked among the top five best new products of 2011 by Professional Builder and Professional Remodeler magazines.

EcoTouch Insulation also has received Greenguard Children & Schools(SM) Certification, is verified to be formaldehyde free — meeting stringent certification standards for indoor air quality — and carries the UL Environment Ecologo CCD016 preferable product designation.

In September, Owens Corning earned placement in the Dow Jones Sustainability World Index (DJSI World) in recognition of its sustainability initiatives for the second consecutive year.

For more information about Owens Corning, visit: www.owenscorning.com.

Headquartered in Toledo, Ohio, Owens Corning is a member of NAHB's Leading Suppliers Council.

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.

Applications for IBS Scholarships Due by Midnight Friday, Oct. 22

Applications for scholarships that will enable NAHB Student Chapter members to offset some or all of their travel and attendance expenses at the 2012 NAHB International Builders’ Show in Orlando are due by midnight on Saturday, Oct. 22.

The National Housing Endowment has allocated $50,000 for students to attend IBS on Feb. 8-11.

This is the fifth time the endowment, in conjunction with the Home Builders Institute (HBI) — the workforce development arm of NAHB — and the NAHB Student Chapters have awarded scholarships to students traveling to the Builders’ Show.

The program's support has been instrumental in helping student chapter members learn outside the classroom and prepare for careers in the home building industry. Since its inception, the program has awarded $365,000 in scholarships.

The IBS scholarship program also helps give young NAHB members the tools to enter into the federation as graduates and to become future industry leaders. Students and faculty are challenged every year to raise travel money to attend the events and participate in activities and competition at IBS.

“The National Housing Endowment is proud to continue this scholarship program for NAHB’s student chapter members,” said Bob Mitchell, endowment chairman and 2000 NAHB president. “The endowment is working to increase the number of college graduates entering residential construction and this scholarship, along with other programs we sponsor, is leading the effort to reward and encourage the best and brightest to choose a rewarding career in residential construction.”

To Apply

To be considered, a school must have an active chapter as chartered by the NAHB Board of Directors that is administered by the HBI. Preference will be given to NAHB Student Chapters fielding a team in the Residential Construction Management Competition at IBS.

Scholarship applications must be submitted online at www.nahb.org/IBSscholarship no later than midnight, Saturday, Oct. 15.

Recipients will be notified by Nov. 4 and funds will be distributed in December.

For more information, visit www.nahb.org/IBSscholarship.

Finalists Named for First Annual NAHB BEAM (Builders Engaging Associate Members) Award

Eight builders and remodelers have been named finalists in NAHB’s new BEAM (Builders Engaging Associate Members) Award, which honors the NAHB member who best exemplifies the NAHB motto, “It’s good business to do business with a member.“

Presented by NAHB’s Associate Members Committee, the award was created this year to encourage members who use the goods and services offered by other member companies and to offer national recognition to a builder who exemplifies this vitally important teamwork.

The finalists include:

• John Miranda, Pinnacle Properties of Louisville, LLC; Home Builders Association of Louisville, Kentucky
• Bill Asdal, Asdal Builders, LLC; Community Builders Association, Whippany, N.J.
• Ken Corbo, Corbo Custom Homes Inc.; Home Builders Association of Northeastern North Carolina
• Rick Tofte, Tofte Brothers Construction, Inc.; Williston Area Builders Association, Williston, N.D.
• Vicki Shannon, McNaughton Homes; Home Builders Association of Metropolitan Harrisburg, Pa.
• Terry Konechne, Konechne Building; Home Builders Association of the Sioux Empire, Sioux Falls, S.D.
• M. Gary Henley, Henley Homes, Inc.; Home Builders Association of Greater Austin, Texas
• Loren Imhoff, Loren Imhoff Homebuilder Inc.; Madison Area Builders Association, Wis.

The award will be presented on Feb. 12 during the Associate Awards Breakfast at the 2012 NAHB International Builders’ Show in Orlando.

For additional information, email Betty Thweatt at NAHB, or call her at 800-266-8366 x8246.

Apply for NAHB Associate of the Year, Bill Polley BuildPAC Awards by Nov.14

Nominations are being accepted for the 2011 NAHB Associate of the Year and NAHB Bill Polley/Build PAC awards recognizing associates who have distinguished themselves by their contributions to NAHB and to Build PAC.

Nominations are due on Nov. 14.

The awards will be presented during the 2012 NAHB International Builders’ Show in Orlando from Feb. 8-11.

Associate of the Year Details

The NAHB Associate of the Year Award, the highest honor awarded to an associate member by NAHB, recognizes associates who have made outstanding contributions to their local, state and national associations and to the home building industry.

Each state is invited to submit one application. Entries can be submitted by state presidents, executive officers or NAHB state representatives.

Nominees must be associates in good standing with NAHB.

To Apply

To download an entry form, click here.

Bill Polley BuildPAC Award Details

Named in honor of the late Bill Polley, a past NAHB Associate BuildPAC subcommittee chairman and NAHB Associate Members Committee member, the award acknowledges the associate member who epitomizes Polley's loyalty and diligent fundraising efforts for BuildPAC.

To Apply

To download an entry form, click here.

NAHB Associate members represent a diverse group of occupations involved in the home building industry, including subcontractors, utilities, title companies, interior designers, building material manufacturers and dealers and real estate agents, among others.

For more information, email Betty Thweatt at NAHB, or call her at 800-368-5242 x8246.

NAHB Members Can Save Big at Lowe’s

NAHB members can save 5% when they purchase through their Lowe’s Account Receivable.*

And through Dec. 7, they can save an addition 2% on their orders when they register at LowesForPros.com/NAHB for their Lowe’s Accounts Receivable purchases.**

Lowe’s also is offering members free delivery on purchases of $500 or more through Dec. 7.

For more information, visit LowesForPros.com/NAHB, or call 877-435-2440.

* Exclusions apply, discount taken at time of purchase, see store for details.
**Exclusions apply, discount taken at time of statement.

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

Oct. 19	"Build Profit and Possibilities with Home Health Technology"	Webinar
Oct. 26	"Fall Construction Forecast Webinar"	Webinar
Nov. 2	"Reinventing the Kitchen”	Webinar
Nov. 9	"Creating the Modern Marketing Budget"	Webinar
Nov. 9-11	NAHB Summit on Association Excellence	Dallas, Texas
Nov. 16	"Adjusting to the 'New Normal' — Strategies and Best Practices From 50+ Builders"	Webinar
Nov. 30	"Affordable Million Dollar Details & Sneak Peek Into 2012 Cost Saving Details"	Webinar
Dec. 7	"Taking the Strange Out of Meeting Strangers"	Webinar
Dec. 14	"LIHTC Webinar — Combining LIHTCs with Other Programs"	Webinar
2012
Feb. 4	"Advanced Green Building: Building Science"	Orlando, Fla.
Feb. 4	"Advanced Green Building: Project Management"	Orlando, Fla.
Feb. 4	"Business Management for Building Professionals"	Orlando, Fla.
Feb. 4	"The Challenge of New Home Sales Management (IRM IV)"	Orlando, Fla.
Feb. 5	"Green Building for Building Professionals"	Orlando, Fla.
Feb. 5	"Marketing & Communication Strategies for Aging & Accessibility (CAPS I)"	Orlando, Fla.
Feb. 5	"Train the Trainer"	Orlando, Fla.
Feb. 6	"Design/Build Solutions for Aging and Accessibility (CAPS II)"	Orlando, Fla.
Feb. 6	"Lifestyle Merchandising, Advertising, and Promotion Strategies (IRM III)"	Orlando, Fla.
Feb. 6	"Project Management"	Orlando, Fla.
Feb. 7	"Builder Assessment Review (BAR)"	Orlando, Fla.
Feb. 7	"Design/Build"	Orlando, Fla.
Feb. 7	"Home Technology Integration"	Orlando, Fla.
Feb. 7	"Negotiating Skills"	Orlando, Fla.
Feb. 7	"Sales & Marketing for Remodelers"	Orlando, Fla.
Feb. 7	"Professional Remodeler Experience Profile (PREP)"	Orlando, Fla.
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.