| February 19, 2007 |
By Brian Catalde
NAHB President and
Jerry Howard
NAHB Executive VP and CEO |
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Another outstanding International Builders' Show
drew nearly 104,000 housing professionals to Orlando last week for the largest event of its kind, with a record one million net square feet of exhibits and more than 1,900 suppliers on hand to showcase their wares.
More than 700 members of the working press registered for the event, and as of Feb. 12, the IBS had been featured in at least 80 television spots – including those on The Early Show, CNN, CNBC, and The Today Show. Special features included a keynote speech by Emmy award winning journalist Ted Koppel at Grand Opening Ceremonies as well as speeches to the NAHB Executive Board and Board of Directors by HUD Secretary Alphonso Jackson, OSHA Administrator Edwin Foulke, Jr., Freddie Mac Chairman Richard Syron, Fannie Mae CEO Daniel Mudd and AARP Chief Executive Bill Novelli. Also making a special appearance before the NAHB Board was 2008 Presidential Candidate and current Senator Christopher Dodd (D-CT), who currently chairs the Senate's Banking, Housing and Urban Affairs Committee.
Other obvious highlights of the IBS included the election of NAHB's 2007 Senior Officers, new resolutions passed by the Board as official NAHB policy, updates on top NAHB advocacy issues, Dave Seiders' housing forecast and numerous award presentations – to name just a few. Many of these items are detailed below, and you can read more about them in the next NBN Online, to be published on Feb. 20.
NAHB Member Benefit: The International Builders' Show is easily one of the biggest and most comprehensive benefits for NAHB members, drawing thousands of exhibitors with the latest products and services geared specifically to housing and light commercial construction and putting them under the same roof with top educational programs designed to help you grow your business. For many attendees, the value of what you learn and save at the IBS is far greater than your annual membership dues. Please join us when the International Builders' Show returns to Orlando in 2008 for an event that continues to grab more headlines and impress more builders with its spectacular offerings every year of its existence! Contact Paul Lopez (x8409) for media-related inquiries or see our IBS wrap-up press release online.
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Your new Senior Officer team,
duly elected and inducted during the International Builders' Show in Orlando, is ready to serve you and the housing industry in 2007.
Rising to the top of the ladder to become the primary advocate of the nation's home builders this year, California home builder Brian Catalde was elected 2007 NAHB President on Feb. 9. A driving force in the Southern California home building industry for more than 30 years, Brian is president and Chief Operating Officer of El Segundo-based Paragon Communities, a company he founded in the early 1980s. Paragon specializes in single-family homes ranging from entry level to luxury, and builds multifamily condominiums and commercial projects.
Next in the line of leadership is Sandy Dunn, a second-generation home builder from Point Pleasant, W.Va. Sandy was elected NAHB First Vice President on Feb. 9. She owns and operates B.J. Builders, Inc., a company that specializes in single-family, entry-level homes. Following Sandy on the leadership ladder is Joe Robson, who was elected NAHB Vice President/Treasurer. A builder and developer from Tulsa, Okla., Joe is founder and president of The Robson Companies, Inc. – developers of residential communities and commercial properties. And making his debut on the roster is Bob Jones, a home builder from Bloomfield Hills, Mich., who was unanimously elected NAHB Vice President/Secretary during the IBS. He specializes in land development and the design and construction of luxury single-family homes.
Meanwhile, 2006 NAHB President David Pressly, a home builder from Statesville, N.C., moves to the post of Immediate Past President this year and will continue to serve a leadership role throughout his tenure. And finally, NAHB's Executive Vice President/CEO, Jerry Howard, remains in his post as the top NAHB staff member. All of your Senior Officers are ready and eager to serve you and safeguard your best interests heading forward. More complete biographies for each of them are available on NAHB's Web site.
Member benefit: NAHB is a 100% member-run organization, whose senior officers are duly elected by the membership each year. Candidates' eligibility for office is determined by NAHB's Nominations Committee, with oversight by the Immediate Past President. The democratic process through which your NAHB leadership is selected ensures that every NAHB member has a voice in the way that NAHB is run and the policies upon which it lobbies and litigates. For information on the elections process, please contact Cyndi McKinley Brown at x8346.
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Home builders are cheering an important court decision
that represents a major victory in the battle against expensive, unnecessary regulation. On Jan. 30, the U.S. District Court in the District of Columbia soundly rejected the so-called Tulloch II rule in National Association of Home Builders v. U.S. Army Corps of Engineers. According to the court's decision, home builders and developers do not need a federal Clean Water Act permit to operate construction equipment in wetlands unless they are actually dredging or filling them in. Activities such as clearing brush or turning on a backhoe, for example, should not require a permit, said NAHB in the case. The court agreed, giving builders a very encouraging victory.
In the latest decision, the court made two significant points. First, it said a "discharge" of dirt should be regulated not by the quantity that is being disturbed, but by where it is put. So regulators can only step in when dirt is being moved to another location on the property, which could affect the function of the wetland and trigger Clean Water Act interest. Second, the court found the Tulloch II rule defective because it improperty shifted the burden of proof from the government agency to the land owner. Read more in our press release, or contact Duane Desiderio at x8146.
NAHB Member Benefit: Home builders and all citizens should feel vindicated after this 14-year battle that NAHB has successfully waged against expensive government rules that needlessly raise the cost of homeownership with no benefit to the environment. This win is a testament to the persistence and excellence of NAHB's efforts in the litigation arena on behalf of our members and their businesses.
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Builder confidence is on the rise in February,
according to the latest reading of the NAHB/Wells Fargo Housing Market Index (HMI). The HMI rose five points in February to 40, which is its highest level since June of 2006. According to survey responses, builders are still wisely cautious as they continue to manage their inventories, but their assessments of the demand side of the single-family market are improving. Every component of the HMI – including current single-family home sales, sales expectations for the next six months and buyer traffic –posted significant gains this time around. NAHB Chief Economist David Seiders credited lower energy prices, favorable mortgage rates and solid growth in employment and household income as contributors to the recent stabilization of home buyer demand, as well as the substantial sales incentives that builders have been employing to move their product and limit cancellations. He added that the HMI results are in keeping with Federal Reserve Chairman Ben Bernanke's assessment of stabilizing home demand, which he reported to Congress this week. Read NAHB's press release or see the HMI tables for yourself online at www.nahb.org/hmi.
NAHB Member Benefit: NAHB's economic surveys and analysis help our members achieve a better understanding of current market trends and where they are headed, while our media outreach in this regard helps to firmly establish NAHB as the credible source of information on the housing industry nationwide. This credibility with the media ensures that accurate data on the housing market is transmitted to potential home buyers and the public at large, thereby discounting sensationalized accounts of market conditions that may affect your client's decision to purchase a new home.
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Confirmation of overtime pay rules
for builders' outside sales employees came from the Department of Labor (DOL) just before the IBS. On Jan. 25, the Department released an Opinion Letter confirming that under the Fair Labor Standards Act (FLSA), outside sales employees are NOT eligible for overtime pay where those employees:
1. Are customarily and regularly away from builders' place of business; or
2. Left the model home or trailer one or two times a week for sales-related activities.
The Opinion Letter represents a significant victory for NAHB, which, on behalf of the members of our High Production Home Builders Council, had formally submitted a request for such clarification in September of 2005. Prior to release of the new Opinion Letter, home builders had to rely on guidance from a 1964 DOL Opinion Letter to classify outside sales employees as exempt from the FLSA Overtime requirements. Contact Chris Keuleman (x8260) for more info.
NAHB Member Benefit: In this case, NAHB was able to secure an important confirmation from the federal government that clarifies the FLSA-exempt status of home builders' outside sales employees who work out of model homes and trailers. The DOL Opinion Letter should also provide persuasive authority for builders who may face litigation regarding overtime pay rules. The successful resolution of this matter is a good example of how NAHB's partnership with our high volume builders can lead to the achievement of a common industry goal. In addition, NAHB will continue to offer assistance to home builders facing litigation on overtime rules and will monitor the issue nationwide to ensure that the courts defer to the latest DOL guidance.
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Green building took center stage at the IBS
and beyond thanks to two significant developments over the past couple of weeks:
1. A landmark agreement between NAHB and the ICC, announced at an IBS press conference, reinforced the commitment of our two organizations to work together to bring uniformity to sustainable building practices. Specifically, NAHB and the ICC will undertake the development and publication of a residential green building standard. 2006 NAHB President David Pressly was joined by Wally Bailey, president of the ICC, for the historic announcement. While NAHB has long recognized many of our members as leaders in the field of green building, those efforts were previously local and without any regional or national reference. Our members needed clearer guidance in this area, but wanted to maintain flexibility and be able to incorporate regional distinctions. In response, NAHB has developed our Model Green Home Building Guidelines, which are now a nationally recognized green building certification tool. Those guidelines were on center stage at the IBS with the debut of The New American Home 2007, which was built in keeping with their principles. Contact: John Ritterpusch, x8325.
2. Congressional testimony by Alaska home builderJack Hebert brought builders' efforts in the green building arena to the attention of the Senate Subcommittee on Energy on Feb. 12. Jack, who serves as an NAHB National Representative, told senators that the housing industry is committed to implementing green building techniques that reduce energy consumption in both new and existing homes, improve indoor and outdoor air quality and conserve water and natural resources. He also told Congress about the impetus for NAHB's Model Green Home Building Guidelines, "which embody the flexibility that builders need to achieve efficiency and conservation goals without meeting costly national or statewide mandates." Simply put, he said, "There is no one-size-fits-all green building standard. Alaska, North Dakota, Florida and Maine all have different efficiency needs and requirements based on their climate. Solar panels don't work in Fairbanks like they do in Miami." With this in mind, he confirmed that the nation's home builders will support green building and energy efficiency legislation that is voluntary, market-driven and cost-effective for builders and consumers. Read more in our press release, or contact Elizabeth Odina, x8570..
NAHB Member Benefit: The NAHB Model Green Home Building Guidelines provide guidance for members engaged or interested in green building products and practices for residential design, development and construction. By highlighting ways in which mainstream home builders can cost-effectively incorporate green building practices into new home construction, the Guidelines serve as the resource for both individual builders and home builder associations looking to develop their own green programs. In addition, they provide an appropriate alternative to unwanted and inflexible government mandates at the state and local levels and help our members take advantage of a fast-emerging marketing niche.
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Resolutions approved by NAHB's Board of Directors at the IBS:
1. Resolution on Housing Affordability
2. Resolution on Treatment of Residential Real Estate in Financial Institutions Regulation
3. Resolution on Repeal of the Low-Income Housing Tax Credit 10-Year Rule
for Existing Properties
4. Resolution on Criteria for Evaluating the Effects of Various Climate Change
Proposals on Housing
5. Resolution on Property and Casualty Insurance
6. Resolution on Nutrient Reductions to Improve Water Quality
7. Resolution on Natural Hazards Mitigation
NAHB Member Benefit: Through the NAHB Resolutions process, any member or HBA may submit new policy proposals for the Board's consideration. This process ensures that NAHB's goals, strategies and official policies are the direct product of its members' concerns and views. Moreover, it allows individual members to have their voices heard in the national arena and beyond. Please direct any questions regarding the Resolutions process to Jay Shackford at x8406.
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NAHB's Quick Issues Index
documenting the latest advances on our top Advocacy issues was updated for the IBS Board of Directors meeting and is now available to you online. Readers of this report will recall that this particular report is the brainchild of NAHB President Brian Catalde, who as oversight officer for NAHB Advocacy in 2006 directed its development as an efficient means of updating our leadership and providing contact information and Web addresses telling you where to go for more data on a given subject. The Quick Issues Index is updated prior to every meeting of the NAHB Executive Board and is available for viewing by members only at www.nahb.org/issuesindex. Contact: Samantha Ehrhart (x8450) for more info.
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Read more news from the 2007 IBS next week!
Next week, we'll bring you news about award presentations at the IBS, new programs rolled out during the show, the latest housing affordability data, and more. So tune in again on Feb. 26!
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NAHB offices will be closed on Presidents' Day,
this Monday, Feb. 19, in accordance with the federal holiday. We will reopen on Tuesday, Feb. 20. Have a great, long weekend!
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