| September 28, 2009 |
By Joe Robson
NAHB Chairman and
Jerry Howard
NAHB President and CEO |
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NAHB hosted an Appraisal Summit this week
that brought representatives of the federal regulatory agencies, major housing and financial institution stakeholders and appraisal organizations together at the National Housing Center in Washington.
 One specific focus of the summit was on some appraisers' use of foreclosed or other distressed properties as comparables without making proper adjustments for the run-down conditions of these homes. This concerning trend, explained in part by the fact that appraisers usually can't see the inside of a foreclosed home, has been driving down sales prices of homes and dampening the beginnings of a market recovery. Another topic of discussion was the Home Valuation Code of Conduct (HVCC), which was designed to keep appraisers from being unduly influenced by those with a financial stake in the transaction. Participants said that confusion over HVCC requirements is impeding the ability to obtain appraisals of the quality required in today's complex marketplace. Following the meeting, the leadership of NAHB, the National Association of Realtors and the Mortgage Bankers Association were united in calling for immediate action to address our appraisal-related concerns, including clarifications regarding the HVCC and the establishment of "best practices" for the appraisal process.
Less than 24 hours after the Appraisal Summit, NAHB Chairman Joe Robson, President Jerry Howard and Advocacy EVP Bill Killmer joined with New York State EO Phil LaRocque for a meeting with the staff of state Attorney General Andrew Cuomo to discuss how the HVCC is being implemented. Get complete coverage of the Appraisal Summit in the Sept. 21 edition of Nation's Building News Online, or send questions to: MondayMorningQuestions@nahb.com.
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Meeting with FDIC Chairman Sheila Bair
 and senior FDIC supervision staff this week, NAHB Chairman Joe Robson and staff joined with representatives of the Independent Community Bankers of America to discuss issues related to the severe credit crunch for housing production loans. Specifically, Joe addressed NAHB concerns regarding bank examiners' adverse treatment of builder AD&C loans, a problem that is causing unnecessary foreclosures. He also urged the FDIC to include a greater emphasis on working with AD&C borrowers to avoid foreclosures in its field communications. Finally, we told Chairman Bair that the FDIC needs to develop information for bankers and examiners on acceptable workout approaches, and we described appraisal problems stemming from inappropriate use of foreclosed and other distressed property sales as comparables. Going forward, NAHB continues to reach out to every government regulator who can help resolve the AD&C credit crunch, with the message that doing so is critical to any sustained recovery in the housing market and overall economy. Send questions to: MondayMorningQuestions@nahb.com.
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Check out NAHB's new and improved Web site
 at NAHB.org, and you'll definitely notice a BIG difference in our association's "front door" on the Internet! The product of months of hard work, this new, user-friendly site was developed with significant input from members and other frequent online visitors. Not only does it incorporate NAHB's new branding strategy and logo, but it also offers a plethora of usability enhancements. The new NAHB.org has a variety of features and tools to make the site work better for you, the visitor, including a personalized "Dashboard" right at the top that gives you instantaneous access to the most important information to you. Of course, it's worth noting that the development of this site is still fluid, and will continue to evolve over the next several months. In the meantime, NAHB's Online Relations team welcomes any input you may have about further changes and enhancements. So give it a look and a test run today! Send comments to MondayMorningQuestions@nahb.com.
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New-home sales rose marginally in August
 following four months of solid gains, an indication that the stimulative effects of the first-time buyer tax credit are waning as its expiration date approaches. According to numbers released by the U.S. Commerce Department on Sept. 25, sales of newly built homes edged up by just 0.7% in August, to a seasonally adjusted, annual rate of 429,000 units. Meanwhile, one very good piece of news was that the inventory of new homes for sale declined for a 28th consecutive month to 262,000 units, a 7-month supply at the current sales pace. Of course, the fact that builders are not adding to their standing inventory indicates not only concerns about the tax credit's impending expiration but also the fact that most builders cannot get access to financing for new housing production. In NAHB's press release on the newly reported numbers, we once again seized the opportunity to urge Congress to extend the first-time buyer tax credit and to help resolve the severe credit crunch for acquisition, development and construction (AD&C) financing. Read NAHB's release or see the government's report online. You can also submit any questions to: MondayMorningQuestions@nahb.com.
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NAHB recommendations on Clean Water Act Enforcement,
 submitted to the EPA as the agency cracks down on rules related to storm water management in residential construction, are aimed at improving industry compliance and ensuring fairness in the regulatory process. Regulations need to be consistent, clear and reasonable, NAHB noted, and there should be a greater emphasis on assisting builders and developers who are trying to appropriately manage storm water discharge from their sites. One important thing that NAHB suggested EPA do is to establish a baseline – by figuring out how many sites there are and how many of them are in compliance, we said, the agency could help put industry compliance into perspective and make it easier to know if enforcement actions are effective. NAHB also asked for clarity on the rules themselves, especially regarding what kinds of water bodies can be regulated, and why. We also noted that NAHB should be notified of enforcement actions so that our association can use that information as an educational opportunity for improving compliance among our members. These and other recommendations were submitted to EPA in the hopes that the agency will consider them as a means of helping the home building industry comply with increasingly stringent regulations at a time when it is struggling to get back on track. Read more in the next NBN Online, or submit questions to: MondayMorningQuestions@nahb.com.
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Urging EPA to step up accreditation of lead-safe trainers
 ahead of the April 22 effective date of the Lead: Renovation, Repair and Painting Rule, NAHB Remodelers members met last week with agency representatives. While there are an estimated 200,000 professional remodelers nationwide, to date, the EPA has only accredited about 50 firms to provide training for compliance with the rule, which is intended to reduce the incidence of lead poisoning in children. The new rule addresses all aspects of remodeling and renovation projects disturbing more than six square feet of potentially contaminated painted surfaces in homes, condos and apartments built prior to 1978.
In their meeting, NAHB Remodelers representatives met with Steve Owens, assistant administrator with the EPA Office of Pollution Prevention and Toxics. They stressed the need for additional accredited trainers, flexibility when implementing the rule, and the need for greater consumer awareness to discourage home owners from remodeling their homes themselves without regard to the regulation or hiring unscrupulous contractors to do the work. They also noted that a particular concern is the shortage of certified training facilities in the Midwest and Northeast, where demand for training is expected to be higher because of the older housing stock. In response, Owens noted that EPA is working with a marketing agency and the Ad Council, which provides public service announcements, to educate consumers about the dangers of lead paint and the risks of using fly-by-night contractors or doing the work themselves. He also asked NAHB for advice on how to enforce the rule when uncertified contractors are performing the remodeling. Read more in NBN Online, or send your questions to: MondayMorningQuestions@nahb.com.
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Resolutions for consideration at the Fall Board Meeting
that's coming up in Chicago next Saturday are available for your online viewing. A memo sent by Resolutions Committee Chairman Tom Woods to all NAHB Directors on Sept. 10 contains brief descriptions of each of the four resolutions/recommendations that have been proposed as of this date, as well as links to the full-text of each proposal. These include:
1) Promoting Sound and Equitable Lending Practices for Builder Financing
2) Title Changes for NAHB Senior Officers
3) Interior Designer Licensing
4) Smarter Growth Policy Statement
Questions about each resolution/recommendation may be referred to the respective staff contact listed on the memo. Questions about the resolutions process may be directed to MondayMorningQuestions@nahb.com.
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NAHB bids a sad farewell to two longtime board members
who passed away this month.
Jack McLeod of Portland, Ore., was a former president of the HBA of Metropolitan Portland and a recognized fixture on our Board of Directors for the past five decades. He was well known for a practice he continued year after year, in which he always presented roses to the outgoing NAHB president's wife at the International Builders' Show. Jack passed away on Sept. 17, at the age of 88. We will miss him greatly, and our deepest sympathies are with his family.
Robert Louis Karnell of Bridgewater, N.J., was an NAHB Senior LIfe Director, past president of the New Jersey BA (NJBA) and a two-term president of the Central Jersey BA. He was a very active advocate for our industry who was recognized by his peers with numerous awards, including the NJBA Builder of the Year Award, CJBA Builder of the Year Award and the NJBA Distinguished Service Award for Political Action, to name just a few. Bob passed away on Sept. 20 at the age of 66, following a long and courageous battle with cancer. Our hearts are with his family at this difficult time.
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Important IBS news for Spike Club members and more...
 Attention, all Spikes! We thought you'd like to know that the entertainment for the Spike Party at the 2010 IBS will be the American rock band known as Styx, and that the event will be held at The Joint at the Hard Rock Hotel, which is billed as the hottest music venue in Vegas. Eligible Spikes will need tickets to attend, which you'll be able to pick up onsite at the Spike Party Booth located on the Central Concourse of the Las Vegas Convention Center. Please direct any questions to membership@nahb.com.
 Want to stay at the Hard Rock Hotel and Casino while at IBS? You're in luck, because that particular property has just signed on as part of the official hotel block for the Builders' Show. Rates start as low as $109 for a standard room and $159 for a suite. Of course, there are a limited number of rooms available at such great rates, so you'll need to move fast to take advantage of this special offer. Also, it's worth noting that many of the fantastic discounted rates offered by other hotels in our housing block as of this August continue to be valid. Make sure to secure your room for the IBS nice and early by visiting this page of our BuildersShow.com Web site.
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Register for the Fall Construction Forecast Conference Webcast
 that will take place on Wednesday, Oct. 21, and don't miss out on the valuable information that the country's top economists always provide as part of this great event. Webcast participants will have an opportunity to ask questions as you view a real-time broadcast of the event on the Internet, or if you so choose, you can view a replay of the event that will be made available three business days afterward. Topics of discussion will focus on the timing of the market recovery; steps that builders and others can begin taking now; the outlook for home prices; and whether new land purchases are a good idea at this time. You'll save both time and money by registering for this popular conference online, so go to www.nahb.org/CFC right now. And remember, your registration fee not only gives you unlimited access to the Webcast archive for three months, it also provides you with electronic copies of the presentation materials. Of course, if you can make it to Washington, DC to attend the Construction Forecast Conference in person, that's even better – again, simply visit www.nahb.org/CFC to register. For more information, contact the Registrar’s Office at 800-368-5242 x8338 or registrar@nahb.com.
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The Monday Morning Briefing will take a brief timeout:
 Due to ongoing activities related to the Fall Board of Directors Meeting that's happening in Chicago this coming week, The Monday Morning Briefing will skip one issue and resume publishing on Monday, Oct. 12. We hope you'll look for our next edition, in which we'll bring you up to speed on all the NAHB happenings in Chicago and beyond!
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