Nation's Building News Online: July 4, 2005Print All Articles Text Version |
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FHA Zero-Down Loans Receive a Thumbs-Up From Builders
A bipartisan legislative proposal establishing a pilot program for Federal Housing Administration (FHA) insurance of zero downpayment mortgages would significantly increase homeownership opportunities for the nation’s working families, NAHB told Congress on June 30. Appearing before the House Subcommittee on Housing and Community Opportunity, NAHB President David Wilson testified in support of H.R. 3043, the “Zero Downpayment Pilot Program Act of 2005,” which was introduced by Reps. Patrick Tiberi (R-Ohio) and David Scott (D-Ga.). “This legislation continues a long tradition of innovation at the FHA by addressing a primary obstacle preventing many minority and low- and moderate-income families from becoming home owners — the lack of funds necessary for a downpayment,” said Wilson. Designed to be financially self-supporting while building a record of success, the pilot program established by the bill would enable the FHA to insure up to 50,000 zero downpayment mortgages for first-time home buyers. Home buyers would be required to pay a 2.25% mortgage insurance premium (MIP) for the loan upfront, compared to the 1.5% that is required for an FHA single-family loan with a 3% downpayment, and an annual MIP of 75 instead of 50 basis points for the first five years of the loan. Monthly mortgage payments would be slightly higher than for a standard FHA-insured mortgage, and home buyer counseling would be mandatory for all buyers who participate in the program. “This prudent approach would allow the FHA to insure the no-downpayment loans in a safe and sound manner without harm to its insurance funds,” said Wilson. To assure that the legislation reaches as many households as possible, H.R. 3043 would also apply to condominiums and cooperatives. “In many communities across the nation, these homeownership alternatives are more within the financial reach of low- and moderate-income families than single-family detached homes,” said Wilson. “Condos and co-ops can provide the same wealth-building benefits for families and also bring stability to neighborhoods.” Noting that members of NAHB work daily with families who are struggling to join the ranks of the nation’s home owners, Wilson told lawmakers that H.R. 3043 would help to “close the housing affordability gap and expand the number of those who can share in the American dream of owning their own home.” To read the legislation, click here and enter H.R. 3043 in the box at the upper left. For more information, e-mail Michael Strauss at NAHB, or call him at 800-368-5242 x8252. Photo by Herman Farrer Floor Plans: Desert JewelThe Mesquite
Bloodgood Sharp Buster Architects and Planners, Inc.
Soaring Views, Private Sanctuaries: Because the Mesquite, located southeast of Palm Springs, Calif. in the Montelena at Indian Wells neighborhood, includes spectacular mountain views, the home is designed so that the main living areas — the family room, morning room and master suite — all are oriented toward the mountains. The home’s master bedroom is thoughtfully placed at the rear of the home and opens onto the outdoor living area. Buffered from the public spaces by a spacious walk-in closet and comfortable retreat, the master suite is truly a private sanctuary.
Priced at $919,000-$949,000, the Mesquite, built by TransWest Housing, Inc. and designed by Bloodgood Sharp Buster Architects and Planners, Inc., features a “hidden” entry accessed through a gated portico and courtyard that opens into a rotunda. The rotunda not only creates a grand sense of arrival, it also helps to organize the circulation to the public and private spaces of the home.
Inside the rotunda entrance foyer. Designed for Empty Nesters: Because the Mesquite is designed for empty nesters, the secondary bedrooms at the front of the home are nicely separated from the public spaces to offer privacy for grown children or visiting friends. These spaces are also the perfect location for an in-home office or hobby room. A clever three-level step-back on the front elevation successfully minimizes the visual impact of the garage while opening views from the secondary bedrooms.
Convenience Accented by Elegance: At 3,035 square feet, the Mesquite, with all of the main living spaces oriented along the perimeter, boasts views and access to the courtyard or patio and pool area from every room. The dining room, though modestly sized, gains visual space with views outside and to the courtyard, as well as interior windows to the great room. The spacious kitchen flows easily into the comfortable morning room. The Montelena at Indian Wells neighborhood is located in a historic community that offers residents all of the lifestyle amenities they expect, plus access to desert recreation.
Even public spaces like the kitchen offer privacy and elegance.
A gated portico opens to a private courtyard and the Mesquite's "hidden entrance."
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Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available 24 hours a day at www.nahb.org. Just click the "Log In" button to get started. Once you log in, personalize the site to reflect your interests. Simply go to the My NAHB>My Profile page and click the “Edit Content Preferences” link. To learn more about how you can customize My NAHB — including how to customize the links that appear on the Home page ― visit the How to Use www.nahb.org section. HBAs, Builders Allowed to Continue Communicating by FaxPassed just in time to pre-empt the FCC regulations’ July 1 effective date, the bill is currently awaiting President Bush’s signature, which is expected at any time. However, recognizing that the legislation will likely become law very soon, the FCC has now delayed implementation of its rules until Jan. 9, 2006 so that businesses do not need to worry about violating them while the bill sits on the President’s desk. The new law will establish an “existing business relationship” exception to the general rule against unsolicited fax communications. That should make life easier for home builders and their associates, among others, whose communications with existing and potential customers would have faced much more burdensome compliance measures. It also helps organizations such as NAHB and state and local home builders associations, which would have had to obtain express written consent from each of their members before being able to communicate with them by fax. Due to its tremendous significance to the day-to-day communications of NAHB members and affiliates, the association was heavily engaged in moving this legislation through Congress. In addition to lobbying on Capitol Hill, NAHB conducted a grassroots letter writing campaign and worked with a range of coalition partners. These efforts resulted in unanimous passage of the bill in the Senate on June 24 and in the House on June 28. NAHB also successfully petitioned the FCC for the delayed implementation of its rules. The following is required for compliance with the new law:
For more information, e-mail Allen Segal at NAHB, or call him at 800-368-5242 x8570; or contact Andrew Holliday, x8305.
Investors Buy Homes at a Record Pace
Snakes May Lurk Under the U.S. Property Ladder
Eminent Domain This! Justice’s Farm Is Target
Supreme Court Ruling May Threaten Fan Pier PlansFollowing a recent Supreme Court decision strengthening the eminent domain powers of cities, Boston City Council President Michael Flaherty has proposed taking control of a 21-acre waterfront parcel owned by the Chicago-based Pritzker family. The family has spent four years lining up permits for three million square feet of mixed-use development on the site, but has had difficulty getting the project started. Under city zoning regulations, parking approvals can be reviewed if a projects is not started within three years. The Pritzker’s three-year period expires in November; without those approvals, they would have to spend millions of dollars more than they have already spent and it would take several more years to get new permits to build on the land. Existing permits are for the development of residences and office, retail and hotel space, along with the creation of a new Institute of Contemporary Art and other cultural and civic space. Two preliminary deals for the property by national home builder Lennar Corp. and Boston developer Stephen R. Karp fell through earlier this year. (www.globest.com)
Runoff Technology Sounds Good to Environmentalists, DeveloperThe Widewater development in Bangor, Maine is the first new residential site in the state to use bioretention cells, or rain gardens. The system is being used to handle runoff from parking lots into a nearby environmentally sensitive marsh area. Runoff can be full of pollutants, including road salt, motor oil, sand and heavy metals. Underground filtration would have been difficult because of the state’s very heavy, rocky clay soil. The cells are shallow depressions in the parking lot filled with an 18-inch layer of topsoil over a coarser rock with pipes in it. The pipes connect into catch basins and drain out the water that’s leaked or seeped through the topsoil into a detention pond. The pollutants are absorbed by grass and other plants growing in the topsoil, so there’s no danger to the watershed from the pond water. The grass that has absorbed the bad nutrients will be cut every spring, so it can regrow and start the process over again. The only drawback from the innovative system to developers is that it will take away some parking spaces, but overall the pros far outweighed the cons. (www.bangornews.com)
Solar Thermal Building Product Demonstrates Energy Savings of 48 PercentIn a recently completed pilot study by scientists at the Alberta Research Council in Edmonton, Canada a combination of direct solar collection and heat storage technology with existing structural insulated panel system (SIPS) technology was found to reduce consumption for space heating by 48%. The thermal solar panels were embedded in exterior walls to create a more energy-efficient building envelope in the test module. The savings in energy consumption were measured against a test module representing a standard home with walls made of 2x6-inch wood studs with R-20 insulation. Another module using SIPS technology with walls made of 6-inch PlastiSpan Expanded Polystyrene (EPS) insulation cores between two oriented strand board panels attained a 25% savings on energy. The study focused on measuring energy consumption during a peak energy load period from Feb. 1 to May 15. On average, 65% of Canadian home energy consumption goes to heating space. Another 20% goes to hot water generation, and 15% for electricity. (www.sciencedaily.com)
Cozy Kitchens When the Space Is Small, Cooks Get Big Ideas on How to CopeTypical of many owners of urban rowhouses and older houses, over the 11 years they have lived in their 1911 house in Baltimore, retired caterer Nick Sheridan, wife Suzanne Shaw and daughter Megan Sheridan have had to make the best of a 99-square-foot space with no pantry and little counter space. When together in the small kitchen, the three cooks are able to companionably chop vegetables for a stir-fry while only occasionally getting in each other’s way. The average kitchen in a new home was 285 square feet in 2003, compared with 250 a decade earlier, according to NAHB. “A lot of people want to open their kitchen out to an outdoor space or a terrace or something,” said David Gleason, president of a Baltimore architectural firm that has worked with clients with small galley kitchens. “They may take walls out and create kitchen and dining space and open back up to the yard. It helps to relieve the space of the darkness.” For those who don’t have the space or the money to open up the kitchen, Gleason says that it can still be made more workable by using a range with a downdraft system so a range hood can be replaced by more cabinet space. Light wood and a light polished granite countertop will make the space appear bigger and brighter, he says. (www.baltimoresun.com)
Blueprint/PhoenixRetail is following rooftops in Phoenix, which was the nation’s hottest new-home market last year, adding residents at a rate nearly three times the U.S. average. Phoenix’s vacancy rate for retail space was at an all-time low of 5.9% in this year’s first quarter, even though 4.7 million square feet of storefront space were completed in 2004, according to Property and Portfolio Research in Boston. According to the research firm, many new residents are coming from California, attracted by the abundant sunshine and relatively low living costs. Median home prices remain below $200,000. Population growth in the area continues to outpace the nation, with a net 57,900 people moving in last year, for an increase of 2.5%. The area picked up 65,700 new jobs in the year ending this March, a 4% rise, and the construction sector showed the strongest employment gains. The Phoenix metropolitan area is the 14th largest in the nation. (www.wsj.com)
Housing Tax Credits in Senate Energy BillBy an overwhelming margin of 85-12, the Senate on June 28 voted to pass a comprehensive energy package (S. 10) that now must be reconciled with a vastly different House bill (H.R. 6). NAHB was successful in ensuring the inclusion of energy efficiency tax credits for new homes, existing homes and commercial properties (including multifamily structures) in the $14 billion worth of energy tax incentives approved by the Senate. The House-passed version includes just $7 billion in tax incentives and only provides tax credits for existing homes. The Senate legislation would provide:
As the legislative process moves forward, NAHB will work to ensure that all of the home energy tax provisions in the Senate bill are included in the final conference report. To view the legislation, click here and type S. 10 or H.R. 6 in the box in the upper left hand corner. For more information, e-mail Allen Segal at NAHB, or call him at 800-368-5242 x8570. HUD Secretary Commends Housing Efforts in CongressJackson was joined at the NAHB-sponsored event by Reps. Bob Ney (R-Ohio) and Gary Miller (R-Calif.), chair and vice chair, respectively, of the House Housing and Community Opportunity Subcommittee. “The President believes in a homeownership society,” Jackson said. “He believes it is the quickest path to accumulate wealth and that it strengthens families. When you own a home, you have a stake in your community. It is the quickest path to self-sufficiency.” Observing that housing activity has kept the national economy strong over the past three years, Rep. Miller, who chairs the Building a Better America Caucus, said that Congress must continue to promote homeownership policies because owning a home makes the single largest contribution to the accumulation of household wealth. “Developers have become cash cows for local governments,” he added. “We must remove the hurdles and needless regulations that keep homeownership out of the reach of some American families. Congress must cultivate an environment in which more Americans may turn the dream of homeownership into reality.” Miller, who owned a home building business before coming to Congress, formed the Building a Better America Caucus in 2001 so that bipartisan House members could examine challenges facing the construction industry, such as increasing training in the construction trades, decreasing taxes and eliminating outmoded regulations. Rep. Ney noted that his panel assisted in the successful enactment of 17 housing-related bills in the last Congress through the cooperation of the subcommittee’s Ranking Member, Rep. Maxine Waters (D-Calif.). “Both sides of the political aisle deserve credit for this,” said Ney, who added that his committee is now working to improve the effectiveness and efficiency of the Section 8 housing program. The HUD secretary said that President Bush is more than halfway toward reaching the goal he announced in 2002 of turning 5.5 million minority families into home owners by 2010. The increase of 2.3 million in the number of minority home owners over the past three years has helped push the minority homeownership rate above 50%, he said, compared to an overall rate of 69%. “The President wants us to get to a level where every American who wants to own a home will get to own a home,” said Jackson. Jackson said that HUD is determined to “get rid of regulatory barriers that have been a hindrance for home builders to build affordable housing.” He also said the Administration will continue to push for the single-family homeownership tax credit, a top NAHB legislative priority that has been introduced in both chambers of Congress. “The homeownership tax credit will give developers incentives to develop in urban areas,” he said. “No suburb can thrive without a healthy inner city. This will create homeownership opportunities in distressed areas and will revitalize neighborhoods.” The HUD secretary also promised to work openly with the Congress and industry to pursue Real Estate Settlement Procedures Act reform. (For a related story in this issue, click here.)
In observance of National Homeownership Month, the House approved House Resolution 312, which recognizes the importance of homeownership in America. Reps. Ney and Miller posted comments in support of the resolution in the Congressional Record, along with Rep. Barney Frank (D-Mass.), who said that the “National Association of Home Builders has been a very constructive participant in our efforts to promote homeownership.” To read the congressional resolution, click here and enter H.Res. 312 in the box at the upper left. For more information, e-mail Michael Strauss, or call him at 800-368-5242 x8252. HUD Renews Mortgage Settlement Reform EffortNAHB has been invited to participate in an industry session that will be held in August. Public meetings are planned for July 21 in Los Angeles, Aug. 4 in Chicago and Aug. 11 in Fort Worth, Texas. HUD’s RESPA rules define the nature of the disclosures that are required for residential real estate sales and mortgage loan transactions. RESPA also defines how and when the various parties to a transaction may be compensated and how this compensation must be disclosed to a home buyer. HUD hopes to gain a better understanding of the various stakeholders’ positions, concerns and suggestions for improving the RESPA rules. These meetings fulfill Secretary Jackson’s pledge to Congress to seek more input after an earlier RESPA proposal was withdrawn in 2003 amidst protests from lending industry and consumer interests alike. For more information from HUD, click here. Or e-mail Bill Renner at NAHB, or call him at 800-368-5242 x8597. Eye on the EconomyBy David F. Seiders, NAHB Chief Economist We are now more than three years into the recovery and expansion phase of the current economic cycle and we’re seeing a pattern of solid growth in economic output, decent growth in payroll employment and low rates of core inflation (excluding prices of food and energy). That healthy pattern should persist for quite a while — with skillful management of economic policy and without severe shocks to the U.S. economy. Growth of real Gross Domestic Product (GDP) now stands at a highly respectable 3.8% for the first quarter of the year, according to the “final” estimate released today by the Commerce Department. The housing production component of GDP (residential fixed investment) grew at a robust 11.5% pace and directly contributed 0.64 of a percentage point to the overall GDP growth rate (that’s a lot). Strong forward momentum of home sales and housing starts suggests that housing will be a strong component of GDP in the second quarter as well. The ongoing strength of housing will be critical to overall economic growth as high energy costs take a toll on the U.S. and global economies ― including our manufacturing sector. Fortunately, current and expected weakness in other sectors helps hold down long-term interest rates, and that’s very good for the housing market. The interest rate structure still reflects a variety of opposing forces … The Federal Reserve has hiked short-term interest rates by two percentage points since mid-2004, and another quarter-point increase was enacted at the conclusion of the Federal Open Market Committee meeting on June 30. Despite the systematic increases in short-term rates, long-term interest rates have fallen substantially over the past year. As a result, the Treasury yield curve has flattened by nearly three percentage points and the spread between the three-month T-bill and the 10-year T-bond now stands at only about 75 basis points. That’s not far from flat, flat isn’t far from inverted, and an inverted yield curve is a classic sign of trouble in the U.S. economy. Defiantly low long-term rates are a global phenomenon, and Fed Chairman Alan Greenspan increasingly seems resigned to the Fed’s inability to get long-term rates up in the U.S. The question is, will the Fed continue to raise short-term rates and risk a yield curve inversion? NAHB’s forecast says the Fed will not have to face that decision because long-term rates finally will move up (by about half a percentage point) during the second half of 2005 as the Fed systematically moves the federal funds rate to 4%. But that’s conventional economic thinking and the markets may not agree. One thing’s for sure — the defiantly low long-term interest rates are a windfall for the housing sector. Home sales remain robust and house prices continue to climb … Sales of new single-family homes climbed by 2.1% to a near-record 1.298 million units in May. Furthermore, sales were up by 4.4% on a year-to-date basis, and NAHB’s forecast shows a new annual record in 2005. Sales of existing single-family homes and condo/co-op units inched down last month following record levels in April. But sales are up substantially on a year-to-date basis in both markets and are on pace to set new annual records in 2005. The national median price of new homes sold in May was down from April and up only 2.5% on a year-over-year basis. However, this apparent price weakness reflected a major, and presumably temporary, shift in the regional composition of sales (primarily from the high-priced Northeast to the lower-priced Midwest) rather than price weakness in any part of the country. In the existing-home market, the median price of single-family homes sold in May was up 12.2% on a year-over-year basis and the median condo/co-op price was up 15.2% ― similar to the robust rates of appreciation recorded earlier in the year — and prices were up substantially in all regions of the country. These data suggest that home prices have not yet begun to decelerate, despite an avalanche of media reports about “unsustainable” house prices in many markets. Single-family housing production steams ahead and the mood of builders brightens even further … Total housing starts edged up in May, paced by a 4.7% surge in the single-family component to an annual rate of 1.7 million units. Issuance of single-family permits slipped by 1.3% but held near recent record levels. Indeed, both single-family starts and permits are up on a year-to-date basis and new annual production records are in the cards for 2005 despite serious supply constraints in many areas of the country. NAHB’s Housing Market Index, based on monthly surveys of more than 500 single-family builders, moved up to 71 in June ― at the upper end of the elevated range that’s prevailed for the past year. Furthermore, all the components of the overall index moved upward, particularly the measure of builders’ sales expectations for the next six months. Weekly surveys of lenders (Mortgage Bankers Association series) show a record pace of applications for mortgages to buy homes through the week ending June 24 (four-week moving average basis). Refinancing activity has picked up a bit as well, reflecting the recent slippage of long-term mortgage rates. Housing inventories remain healthy despite confusing reports to the contrary … The inventory of new homes for sale has been rising in recent years, but the inventory/sales ratio (or the months’ supply) still is historically low (4.2 at the end of May). In addition, units that have been permitted but not yet started have made up a growing share of total units for sale (20.5% in May). Despite the healthy level and structure of new-home inventories, some analysts are insisting that the elevated level of unbuilt homes for sale is a sign of an impending glut of new homes. The rise in the number of homes that have been permitted but not yet started partly reflects efforts by builders to sell homes before construction begins, a very healthy practice. Furthermore, drawn-out regulatory processes in many local jurisdictions have encouraged builders to accumulate an unusually large supply of unused permits to be able to meet future housing demand. Once a permit is obtained, the Census Bureau classifies the home as part of the inventory “for sale,” even if the builder does not view it that way. It’s clearly wrong to conclude that a sizeable backlog of unbuilt homes for sale suggests an impending housing “glut.” If housing demand weakens, builders can easily defer starts of homes that have been permitted. In fact, inventory management in the home building industry has been excellent for years, and the public companies know that stock analysts watch their inventories very closely. Unsold units that are completed or under construction could eventually become a problem, but unsold units that have not even been started are a relatively benign matter. Speculation in new single-family homes remains limited … NAHB research has uncovered a good bit of concern in the home building industry about speculative home buying, i.e., purchases driven solely by the lure of short-term capital gains. Our research also found that many builders, particularly large companies, are taking steps to discourage sales to buyers who do not intend to occupy the homes and that these efforts have helped contain speculative activity in the national new-home market. Builders are concerned about speculative home buying because a lot of this activity can generate substantial “hidden supply” that could come back onto the market quickly if price appreciation should begin to falter. In that event, additional downward pressure would be put on market prices and sales of new units coming onto the market would be severely disrupted. Indeed, speculators could not only unload units that they own, they also could fail to close on units they have contracted to buy — a key risk in the new-home market because of typically long lags between sales contracts and closings. Many builders also are concerned about investor-owned units standing empty in new communities they are developing. Large numbers of sold but vacant units can detract from the sense of community as well as the overall look and feel of an area under development. From a national perspective, the amount of speculative buying in the market for new single-family homes appears to be quite limited at this time, thanks largely to the efforts of large national and regional builders and those companies in hot metro markets that recognize the dangers of speculative activity. A comprehensive national survey of about 500 home builders conducted by NAHB in June shows that only 4% of single-family homes sold in the first half of this year were to investors (not for primary residence or vacation home), compared with 13% of multifamily condo units sold during the same period. Some of the units sold to investors (particularly condos) are bought as long-term rental investments, of course, leaving even smaller shares for short-term speculative activity. It’s also noteworthy that only 6% of respondents to NAHB’s June survey said they were actively marketing homes (single-family or condo) to investors. Financial regulators and rating agencies focus on risks of ‘exotic’ adjustable-rate mortgages … Soaring house prices in many areas have encouraged the development and use of a variety of adjustable-rate mortgages (ARMs) that can stretch this affordability envelope for prospective owner-occupants, and some ARMs have provided attractive short-term financing for investors/speculators in the housing market. Indeed, Greenspan recently cited expanding usage of “exotic” ARMs as a development of “particular concern.” At issue are ARMs with deep initial rate discounts, interest-only payment schedules, payment options that allow negative amortization (rising principal balances), and little or no documentation of borrower income, debts or assets. The federal regulators of commercial banks and thrift institutions reportedly are working on interagency guidance addressing the credit risks associated with various types of ARMs and underwriting procedures, and a joint supervisory letter may be forthcoming before long ― modeled after the risk management guidance issued for home equity lending on May 16. Furthermore, in recent days both Standard & Poors and Fitch Ratings issued tougher rating criteria for mortgage-backed securities backed by ARMs with payment-option features that permit negative amortization. The efforts by federal regulators and rating agencies hopefully will promote better risk-management practices by lenders and provide better information to mortgage investors on particularly “exotic” forms of ARMs. The trick is to head off potential credit problems down the line while preserving the affordability enhancements provided by ARMs in high-priced markets. Stay tuned. NAHB Chief Economist David Seiders analyzes the economy from the point of view of the housing market every other week in the free e-newsletter, “Eye on the Economy.” The preceding is a reissue of his June 29 edition. To subcribe to “Eye on the Economy,” click here.
"HousingEconomics Online" is a new online publication from the NAHB Economics Group that provides the latest housing economic data, trends and key events shaping the economy. NAHB’s leading economists analyze and synthesize the housing and economic information to provide in-depth analysis of the niches and nuances of the home building market. "HousingEconomics Online" combines unique scientific research with practical applications providing insights that are original, useful and written in terms that builders, manufacturers and housing finance professionals can understand and apply to their own businesses. To order, visit the www.housingeconomicsonline.com detail page. This interactive Web site at the executive level provides critical data and information quickly, easily and frequently and includes the following features:
Builders’ Tip: Adding 'No Rot' Deck Rail Support
I’ve tried various approaches to this problem. The accompanying drawing illustrates my favorite solution. Instead of wood, I use short lengths of PVC pipe cut with a chopsaw into little cylinders. For a 2x bottom rail, I use 1 ¼-inch O. D. (outside diameter) pipe cut into lengths that fit snugly under the rail. To hold them in place, I run a 7-inch square-drive gutter screw through the bottom rail, through the PVC cylinder, and well into the deck ― burying the screw head. This works particularly well because I use a minimum 3-inch-deep bottom rail. The PVC cylinders are strong and unobtrusive. They hold paint well. And they won’t deteriorate or wick water into the rail. — Forrest McCanless, via e-mail Tips & Techniques provided by Fine Homebuilding.
To request a reprint of this feature, e-mail Mary Lou von der Lancken at Fine Homebuilding.
BuilderBooks.com is your source for training and education products for the building industry. The official bookstore for NAHB, BuilderBooks.com offers award-winning publications, software, brochures and more available in both English and Spanish. To view these publications online, click here, or call 800-223-2665.
Subscribe your employees to Nation’s Building News Online. It’s free, easy and NAHB members who sign up three or more employees will be entered into the "Make Your Business Click" contest to win a digital camera. To learn more or sign up your employees, click here. Independent Contractor or Employee? The IRS ChecksBy Jordan B. Zimbelman Not surprisingly, the Internal Revenue Service (IRS) wants these taxes. Consequently, the IRS monitors, with a skeptical eye, the way you classify your workers. Misclassifying an employee as an independent contractor is no joke. The IRS forces violators to pay back taxes plus penalties. Plus, these violators can be assured that a full-blown audit will be coming their way. So, how can you be sure that the IRS doesn’t think your subcontractors are employees? The IRS defines ― rather vaguely — an employee as someone who can be told what to do and how to do it. The line between contractor and employee is somewhat gray and, according to the IRS, “the distinction depends on the facts in each individual case.” Those facts fall into three categories: behavioral control, financial control and the type of relationship. An explanation of these three types of facts — and some examples of how they can be applied — can help you determine whether to classify your workers as employees or independent contractors.
In most cases, common sense is all that’s required. For example, most plumbers are hired to do all the plumbing in a house. They are not told where to put each pipe; you just give them the plans and say, “Have at it.” They also have a significant investment in their business (e.g., a truck, tools, general liability insurance, etc.). Plumbers typically are independent contractors. On the other hand, receptionists are employees. No matter how their pay is structured or what benefits they receive, the business retains the right to tell them how to do their job. They typically receive insurance through the business, and if they want to use vacation time, they must ask permission first. There also is no professional license for receptionists; they receive all the training they need on the job. Some classification cases fall in between these two extremes. Where to Find IRS Information If you are concerned that you don’t have a reasonable basis to classify a worker as an independent contractor, you can file Form SS-8 with the IRS (found at www.irs.gov/pub/irs-pdf/fss8.pdf). The form asks questions regarding behavioral control, financial control and the type of relationship you have with the worker. The IRS will then issue a determination letter on the worker’s status. For more information, visit the IRS Web site at www.irs.gov. Jordan B. Zimbelman is a graduate student in Finance at Kansas State University. He is working with NAHB’s Business Management Department as an intern throughout the summer. For more information, e-mail Zimbelman, or call him at 800-368-5242 x8498. Additional Resources
Subscribe to NAHB’s Business of Building e/Source NAHB’s Business of Building e/Source is your monthly electronic guide to the hot issues and emerging trends in home building business management. You’ll find practical advice, tricks of the trade and sound business guidance — all delivered monthly, straight to your desktop, in a quick and easy-to-read format. Business of Building e/Source is available free to NAHB members and their employees. To subscribe, visit www.nahb.org/BoB on the Members Only side of the NAHB Web site.
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Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available 24 hours a day at www.nahb.org. Just click the "Log In" button to get started. Once you log in, personalize the site to reflect your interests. Simply go to the My NAHB>My Profile page and click the “Edit Content Preferences” link. To learn more about how you can customize My NAHB — including how to customize the links that appear on the Home page ― visit the How to Use www.nahb.org section. Communications Key in Selling to Female Baby BoomersBoomers of both sexes are a major economic force, according to Doris Perlman, founder and president of Possibilities for Design. They control 70% of the nation’s net worth and spend $2 trillion annually on goods and services. Also, they’re not getting any younger: 10,000 are turning 50 every day. But among the boomers, it is the women who merit closer attention from builders, she indicated, because they control 80% of consumer purchases, direct 91% of housing decisions and guide 94% of home furnishing choices. While Perlman’s research has delineated many of the specific home features that are likely to particularly attract older women, in their shopping habits she suggested that these customers are apt to be “circular, exploring and tactile” and “do not make linear decisions.” “Her needs for personal connection and security are key,” Perlman added. “Women don’t just buy a product; they join it.” Among Perlman’s observations on what will sway boomer women home buyers:
Sara Lamia, founder and president of Home Building Coach, said that builders who hope to succeed in selling to the older woman need to learn how to build their trust first. “We need to be respected and heard and expect nothing but the best,” including luxury and superb customer service, she added. “We want to be able to die in our new homes” and don’t want to ever have to move to an institution. Lamia cautioned that women over 50 “are especially perceptive and will know if you appreciate them or not.” “When these buyers come into your sales office,” she said, “you need to be inviting them into your family.” Lamia said she achieves that effect by setting up the office with portraits of staff members accompanied by quotes, comparison charts showing what is being offered, tea and cookies, testimonial letter displays and an armchair view of amenities. Printed materials should include action photos of women enjoying the benefits of living in the community; they should use few words, bullets and large type to convey the message; and they should describe the home buying process in chronological order, she said. Sitting down and looking at the sales contract — by which time the customer is emotionally sold on the purchase — is an opportunity for the builder to set the buyer’s expectations and guide her behavior. The home buyer needs to be educated about standard builder procedures such as payment, change orders, contingencies, visitations and inspections, and warranties, Lamia said, because if something arises that they don’t understand, “they will resent it.” Be a Good Listener Aging baby-boomer female buyers are active and they are proud, said Joanne Chappell-Theunissen, president of Howling Hammer Builders. “Do not talk to her as if she’s elderly,” she advised; today, even “the average 70 year-old thinks of herself as middle-aged.” Unlike younger women, the 50+ female buyer is also likely to be relatively unaccustomed to business dealings. Builders need to be exceptionally good listeners with these women and do everything they can to make them feel comfortable, because that is the only way to succeed in eliciting the customer’s concerns and preferences. “What isn’t she saying to you, and why? She’s not comfortable talking to you about her frailties. Turn it into a third-party conversation and take the onus off her,” Theunissen said. The builder will be working with a woman “who likes to have the rules set for her,” so it is important to set them at the start, explaining her responsibilities and what can, and cannot, reasonably be expected as the construction process moves forward. “Lay out the plan,” said Theunissen. “Establish weekly meetings, or regularly scheduled appointments to go over responsibilities and task lists.” If that’s not possible, at least communicate by telephone or e-mail but have an actual “face-to-face” once a month. “Schedule site visits,” Theunissen said. “If you don’t set them, she’ll visit anyway. You want to be her contact person. You don’t want her to be on site talking to your employees.” Other recommendations:
Oh, to Be Young Again ― It’s a Matter of Perspective“Aging in Place” is all the talk lately and deservedly so. But what about the other end of the spectrum? What about the younger and first-time home owners who are remodeling for the first time? How does that market segment differ from their older counterparts who are more experienced in homeownership? And are there any issues or “rules” we need to be (more) aware of? Our company has worked on several projects involving younger home owners recently. We just completed a small project for a couple that couldn’t have been over 30. Last year we did a similar-sized project for a couple of about the same age. And we are currently adding a master suite for a home owner who is 20. Now, I don’t think it’s necessary — and it’s probably not appropriate — to discuss or have any preconceived bias regarding younger home owners, or any age group, for that matter. However, you should always be sensitive to any issues that may affect a particular customer type. So, what did we discover when working with these younger customers? While the country is full of savvy and educated young people, let’s face it, as in everything, experience is often the best teacher. Inherently, this group of home owners cannot have the same experience level with homeownership issues as home owners who are living in their third, fourth or fifth home. So quite naturally, they will have and voice some added concerns and apprehension when discussing their projects with you. How do we deal with that? These younger customers may feel a little vulnerable. But that’s not too unlike most other customers or prospects regardless of age. After all, we are the experts, right? But we can help this younger group feel more comfortable. “Trust us because we’re older and more experienced,” won’t cut it with them. Instead, we should take the time and the few extra steps needed to put them at ease. This means we will probably have to explain in more detail who we are, what we are planning and, once work has begun, what we are doing. We also need to be able to find a common level of understanding and be sure we communicate with them on that level. I’m sure you’ve had plenty of conversations with technicians who have spoken to you in jargon you weren’t that familiar with. How many times have you had to ask them to speak in plain English? Think the same way about how you are talking to these clients. This also may be their first major purchase. Again, homeownership experience primarily comes with age, so a 20-something can’t possibly have had as many big purchase experiences as a 50-something, right? This means you may have to go overboard providing assurances, references, whatever it takes (without being condescending). Also, be prepared to talk to mom, dad or a trusted friend, relative or mentor, or to at least have them review the plans. They may also be the final decision maker. This is not an indictment of your abilities, and you need to put your ego aside. Remember when you bought your first car or house? Did you do it by yourself? Or did you have help? For the most part, these home owners are very new at this, and you should help them overcome their feelings of vulnerability and take steps to instill in them confidence in your abilities and that you can be trusted. Finally, be prepared for questions that may seem overly simple. If you seem to be fielding too many "simple" questions all of a sudden, you could be moving too fast or taking too much for granted. Did you really get to know them well enough to understand their level of need and understanding? Age discrimination works in both directions, and keeping in mind the inherent attitudes and experience levels of our younger customers is just as important as all the CAPS related issues we deal with. A good buying experience begins with an unbiased selling approach and sensitivity to the issues of each individual customer. Take the time to discover that. As for me, I’m off to buy some more Grecian Formula. Oh, to be young again … Greg Miedema, CGR, CAPS, is president of Dakota Builders in Tucson, Ariz. He is chair and founder of his local Remodelors™ Council, a member of the NAHB Remodelors™ Council Board of Trustees and currently serves as the chairman of the Remodelors™ Council Public Affairs Committee. The Southern Arizona Home Builders Association (SAHBA) has named Dakota Builders, Inc. Remodelor™ of the Year in 1998, 1999, 2000 and 2003. For more information, send him an e-mail.
"How to Find a Professional Remodeler," available at BuilderBooks.com, promotes the professionalism of your remodeling business by offering valuable advice to your customers on the process of selecting a remodeler. The brochure guides consumers from the dream to the reality of having their homes remodeled by skilled and trained professionals. Sections include what to look for in a professional remodeler, what questions to ask and signs of a professional remodeler. To view or puchase this publication online, click here, or call 800-223-2665 to order.
The NAHB University of Housing Offers Designation Programs for Remodelers The NAHB University of Housing offers CAPS, CGR, CGB and a variety of other professional designation programs and business management courses that set builders and remodelers apart from the competition. To learn more about NAHB’s designation programs, visit www.nahb.org/designations. For a complete list of all current education offerings, click here. Who Will Be the Next Remodelor™ of the Month?
The Remodelor™ of the Month (this link is accessible to Remodelors™ Council members only) award program is underway. Don't miss your opportunity to be named the Remodelor™ of the Month.
Designing Outside the Box — In an Intense WorkshopAt the 2005 NAHB/BALA Design Institute for Builders conference last month, teams of builders and architects participated in an intensive workshop, creating floor plans and elevations that were then scrutinized by industry-leading facilitators. “This conference raised the bar across all product types and all markets. It created a forum for capturing ideas in a compressed timeframe, which is extremely beneficial,” said Barry Delozier, of Signature Homes in Birmingham Ala. The conference and workshop attracted designers, builders and developers “who recognize that the synergy between their roles creates a sum much greater than the parts,” he added. “The team approach really works when it comes to critiquing plans and having creative forces work together,” agreed Alan Simonini, of Simonini Builders based in Charlotte, N.C. He said that he found the intense workshop — "Creating and Designing Product: The Team Approach" ― the most rewarding aspect of the conference. The conference wasn’t only about creative juices, however. When not creating new floor plans and designs, attendees toured two developments — Stapleton, a close-in “walkable city,” and Tallyn’s Reach, the largest “built green” community of its kind in the country. The conference was held in Denver on June 13-15, and drew 170 participants. For Kathy Deprez, of Deprez Custom Homes in Lincoln, Neb. and a builder for eight years, the highlight of the conference was the community tours. “It is always interesting to see what different building practices are hot in other parts of the country,” said Deprez. She added that the entire conference “definitely fills a void in the building industry. We need more of these opportunities to better ourselves and further our businesses.” Design for Builders helped some attendees jumpstart the way they work. David Patterson, of Trend Maker Homes in Houston, credited the educational sessions with “refreshing the idea of passion for the designs we create.” Caroline Katolik, of KEM Homes in Fort Collins, Colo., picked up a few tips about how to increase profits. “I feel that by making a customer profile, really listening to their specific needs and designing homes that incorporates 4-D architecture (architecture that encompasses all four sides of a home), it would make any business more profitable,” she said. “Pay attention to how a house lives and then you will succeed with clients.” The conference also highlighted past winners of the Best in American Living Awards (BALA), the residential design awards program sponsored by NAHB and Professional Builder. For more information or to enter this year’s competition, click here. The BALA registration deadline is Friday, July 15, with entries due by July 29. For more information about the Design Institute, visit www.nahb.org/designinstitute or contact Michelle Persinger Matuga at 800-368-5242 x8343.
Learn More About The NAHB University of Housing Whether you’re new to the industry, hope to make your next career move or want to improve your company’s bottom line, The NAHB University of Housing can assist you in your education pursuits. Visit www.nahb.org/education for a comprehensive listing of courses throughout the country. Be sure to visit often in order to view the most up-to-date information in your area.
Subscribe Your Employees to Nation’s Building News — and Earn a Chance to Win Digital Camera Subscribe your employees to Nation’s Building News Online. It’s free, easy and NAHB members who sign up three or more employees will be entered into the "Make Your Business Click" contest to win a digital camera. To learn more or sign up your employees, click here.
Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available 24 hours a day at www.nahb.org. Just click the "Log In" button to get started. Once you log in, personalize the site to reflect your interests. Simply go to the My NAHB>My Profile page and click the “Edit Content Preferences” link. To learn more about how you can customize My NAHB — including how to customize the links that appear on the Home page ― visit the How to Use www.nahb.org section. Education Calendar
Whether you’re new to the industry, hope to make your next career move or want to improve your company’s bottom line, The NAHB University of Housing can assist you in your education pursuits. Visit www.nahb.org/education for a comprehensive listing of courses throughout the country. Be sure to visit often in order to view the most up-to-date information in your area.
Subscribe Your Employees to Nation’s Building News — and Earn a Chance to Win Digital Camera Subscribe your employees to Nation’s Building News Online. It’s free, easy and NAHB members who sign up three or more employees will be entered into the "Make Your Business Click" contest to win a digital camera. To learn more or sign up your employees, click here.
Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available 24 hours a day at www.nahb.org. Just click the "Log In" button to get started. Once you log in, personalize the site to reflect your interests. Simply go to the My NAHB>My Profile page and click the “Edit Content Preferences” link. To learn more about how you can customize My NAHB — including how to customize the links that appear on the Home page ― visit the How to Use www.nahb.org section. Big Builders Hooking Up With Hispanic Home BuyersMore than 1,500 new home communities are now listed on the site, according to Builder Homesite, a consortium of 35 of the nation’s largest home builders that created the new home listings database at the end of last year. The Hispanic community is expected to account for 31% of U.S. household growth by the end of this decade, according to Homesite. Research also found that Spanish-speaking consumers are Internet savvy. Sixty-five percent of Hispanic adults own a computer and Hispanics spend an average of 9% more time online than the general U.S. consumer. Studies have shown that Hispanics are four times more likely to buy a product online when the content is in Spanish. “It is important for Ryland Homes to embrace our Spanish-speaking consumers,” said Eric Elder, senior vice president of marketing for Ryland Homes. “From a tactical standpoint, Casanuevasaqui.com is a very beneficial resource because of the amount of individual product and community data that is translated into Spanish and delivered on the site.” Among builders who are listing their new home communities online in Spanish are Beazer Homes USA, Capital Pacific Holdings, KB Home, K. Hovnanian, Morrison Homes, Pardee Homes, Pulte Homes, Ryland Homes and Shea Homes. Educating Buyers Is as Easy as Gen X, Y (and Sometimes Z)It’s no secret that the Gen-X (ages 27-37) and Gen-Y (ages 18-26) generations have grown up knowing how to access information. But how does this affect their new home purchasing decisions? These young buyers are intelligent and computer-savvy, and a good many of them will know what they want in their homes. Many will want to have a home business or be able to telecommute from home. And home entertainment is probably high on their list of priorities, too. They also don’t want their children to experience the latchkey lifestyle they grew up with. Instead, many will want a large great room to serve as inviting after-school destination for their children and classmates. Many also want their kitchens to be downright intelligent. Every device and appliance will have to be able to communicate with the central home computing server. In addition, many of these young buyers will also want an “outdoor niche” or courtyard so they can spend more time outdoors in privacy. But when it comes to researching the largest, most complex purchase of their lives, the Internet is grossly inadequate at conveying the nuts and bolts of how to buy a home that meets their needs and desires ― i.e., where and when to spend on quality, how to select a good builder, what actions tend to disrupt the construction schedule and why disruption should be avoided. This can become especially troublesome because the decisions these younger buyers make are about more than the home they want to buy. Each decision is critically important to them because, when they’ve chosen wisely, it enhances their self-esteem. Education ― Customer Service for a New Generation of Buyers These buyers will be looking for ways to help them make intelligent choices and decisions about everything that goes into their homes. Successful builders will embrace this challenge by introducing a new dimension of customer service — one that offers the support these (and all) buyers need before they know they need it. Builders are often frustrated with their buyers’ inability to make timely decisions and their insistence that late change orders be accepted. Builders need to realize that buyers have no experience with the sequence of events that must occur, the importance of quality, especially “behind the walls,” or the absolute necessity to stay on schedule so that each home will be completed on time. Once they are given the “big picture” of both their job and yours, they’ll be much better equipped to do their part well. This is where their information-gathering expertise can work for you instead of against you. For example, provide your Gen-X and Gen-Y buyers with a comprehensive, yet easy-to-read checklist description of the entire building process so that they have a level of understanding that allows them to participate cooperatively. For those who prefer an audio-visual approach, offer consumer classes that deliver this information with appealing visuals, explanations and activities. Organizing the Process for the ‘Sesame Street Generation’ Another aspect of superior customer service you should offer is assistance with getting them organized — and staying organized ― as they manage their shopping tasks and details. Worksheets that encourage buyers to keep pertinent information organized contribute to efficient, enjoyable, low-stress shopping. Buyers will be able to see for themselves what choices they’re considering and how well they blend with other choices. Coordinating materials, styles and colors of floor coverings, plumbing fixtures, countertops, appliances and more are less daunting and stressful — and don’t disrupt the building schedule ― when managed properly. This Sesame Street generation is accustomed to instant gratification and immediate answers. Are your current systems able to respond with product information and costs within 24 hours? Today’s computers, used with great skill by your clients, are designed to provide information at the push of a few buttons. Has this superb level of customer service been important enough to motive you and your suppliers to settle for nothing less? Many young couples get derailed over money and may not know how to create or work within a construction budget. Superior customer service includes a template for budget structuring and an easy way to keep track of costs so that partners are clear on their spending parameters before decisions are made. Buyer Participation Can Be Profitable Information, organizational tools and communication strategies are essential components of a profitable and enjoyable building experience. Smart, modern builders won’t want to keep the buying public out of the process. Gen-X and Gen-Y are here to stay ― and they are ready to spend. Embrace their love of information and let their participation increase your profitability. Sara Lamia is president of Home Building Coach, Inc. in Fort Collins, Colo. She is author of "How to Enjoy Building Your Dream Home," a workbook for buyers and builders. She has hosted a weekly radio show called, "Building Coach's Corner" and has written a monthly column for Community Business Journal. For more information, contact her by e-mail, at 970-402-2600, or visit Home Building Coach, Inc. Web site. Excerpted from her article published in Sales + Ideas Marketing Ideas magazine. ©2004
For additional cutting-edge sales and marketing information, subscribe to NAHB’s Sales + Marketing Ideas magazine. Call 800-368-5242 x8192 or visit www.smimagazine.com to subscribe or order a copy. Click here to learn about membership benefits of the National Sales and Marketing Council and the Institute of Residential Marketing. BuilderBooks.com Offers Sales and Marketing Publications Online BuilderBooks.com offers a variety of sales and marketing publications online. To view or purchase these publications, click here. Marketing to Win the Baby Boomers' BusinessIn this day and age of aggressive competition, your ability to market to boomers can really give you the edge. Why? Because boomers feel, in general, that marketers are failing them. And maybe rightly so, because marketers are generally spending more time and committing more dollars on the Gen X population. Yet, we know boomers are the generation with the most dollars to spend. Let’s look at key factors to keep in mind when marketing to boomers: Forget the gimmicks. Steer clear of offers that are too good to be true. Boomers will not only see right through the gimmicks — they will be insulted that you thought they’d fall for them.
Soft sell the product: “It’s all about me!” If you want to create an effective campaign, remember one critical thing: it’s not all about the product, it’s all about the boomer consumer and what the product can do for them.
Understand boomers. Boomers want marketers to understand them. If you give them the information they need, you will increase their interest in your product or service. Show boomers that you understand them, and you will be rewarded with an enjoyable experience during every stage of your relationship.
Provide solid information. Boomers want worthwhile information so they can make educated decisions on their own. Don’t coddle the boomer buyer. Provide them with all the pieces necessary for them to make the right decision ― buying from you!
R-E-S-P-E-C-T! Boomers tell us they want our respect, our attention and our good manners. Don’t forget, boomers are used to the world revolving around them. One bad experience will turn a boomer off forever, and they will definitely tell their friends and family about it.
Earn their trust. Earn their trust and you’ll earn their business. Studies have found that boomers are very brand loyal so earning their trust pays future dividends, especially with referrals.
Make them feel like winners. Boomers grew up expecting to be winners, and they respond to products and services they perceive as winners also.
In a larger planned community, age qualification is okay as long as there is diversity throughout the larger master planned neighborhood. Don't Ignore Boomer Women In addition to these factors there is one significant group that is largely ignored by marketers — boomer women. Given that the boomer generation is the first to produce financially independent women, ignoring boomer women makes no sense. Focus your message on wisdom from experience, emotional relevance, vitality and inner beauty, and be careful how you position your approach. Talk to boomer women about convenience, not security, because she does not want to feel vulnerable. Surprisingly, boomer women respond to direct mail. A third of older boomer women surveyed said they visited a new business within the last 90 days because of a direct mail they had received. The practice of reading direct mail spans across older and younger boomer women alike. They all agreed that an interesting package had the greatest impact on which direct mail pieces they opened. Remember, boomer women cringe at being viewed as “mature.” They are not going to relate to the ultra thin model, but they definitely do not connect with the stereotypical grandmother, either. As challenging as this group might be, they are worth the effort; 57% of single boomer women are home owners. As you can see, there is great opportunity for good marketers and builders as it relates to capturing the boomer market, because they have been largely ignored by marketers until now. Don’t be intimidated, educate yourself. There is a wealth of information available to you on the boomer generation. Stay focused on boomers and their evolution. Remember, historically boomers have continued to redefine themselves and we can expect them to do this through every life stage. Nanette Overly is director of sales and marketing services with Epcon Communities in Dublin, Ohio. She has more than 20 years’ experience in home building and residential real estate sales and marketing. She is active in the East Central Ohio Building Industry Association and is an approved instructor for Certified New Homes Sales Professional courses. She has been a featured speaker at Building for Boomers & Beyond: The Seniors Housing Symposium. She has also been an ambassador to local high schools, introducing students to career opportunities in home building. For more information, e-mail Overly, or call her at 614-761-1010.
For additional cutting-edge sales and marketing information, subscribe to NAHB’s Sales + Marketing Ideas magazine. Call 800-368-5242 x8192 or visit www.smimagazine.com to subscribe or order a copy. Click here to learn about membership benefits of the National Sales and Marketing Council and the Institute of Residential Marketing. BuilderBooks.com Offers Sales and Marketing Publications Online BuilderBooks.com offers a variety of sales and marketing publications online. To view or purchase these publications, click here. Entries Sought for Sales and Marketing Awards"Celebrating their 25th anniversary in 2006, The Nationals are the most prestigious awards of their kind, setting the benchmark for innovations in new home design, marketing and sales," said Beth Williams, a Richmond Hill, Ga.-based builder and chairperson of the NSMC. "NAHB's commitment to recognizing originality, imagination and success has been exemplified by its award winners since the competition's inception." Started in 1982 as the Institute of Residential Marketing (MIRM) Awards, The Nationals award program continues to recognize superior new home sales and marketing achievements. With 53 categories across various disciplines of the new home industry, the awards honor excellence in product and community design, advertising, marketing and sales achievements by individuals and sales teams. Presented as part of the International Builders' Show, the awards ceremony is scheduled for Jan. 11 at the Orlando World Center Marriott Resort and is expected to draw more than 1,000 attendees. During a three-day judging process, a panel of industry professionals from across the country selects Silver and Gold award winners from a field that typically includes more than 1,200 entries. The Nationals are co-sponsored by Gladiator Garage Works, KitchenAid, and Whirlpool Corporation. Additional sponsors include Countrywide Home Loans National Builder Division, Housing Guides of America, Centerpoint, Quest, Wells Fargo Home Mortgage, Builder magazine, First Horizon and HomeBuilder.com. For entry materials, click here. For more information, e-mail Lisa Parrish, or call her at 800-658-2751 or 909-987-2758. Felician Sisters Convent Wins Green Building AwardThe Felician Sisters, an order of nuns in suburban Pittsburgh, needed their convent and school renovated affordably and in a way that would make it their legacy to the community. They ended up accomplishing that goal and, in the process, won a National Green Building Award in the area of affordable multifamily construction. The challenges faced by Perkins Eastman Architects in overseeing the renovation project were significant. The sisters lived in two buildings, a 50,000-square-foot infirmary connected by a bridge to a 160,000-square-foot convent. Their declining income and rising expenses were factors to consider, as was a building that had become too expensive to maintain and barely accessible for its aging residents. “The project goals were to retain the original character of the building, to support aging in place for the sisters, to be environmentally responsible, to reduce operating costs and to lower maintenance costs,” said Stefani Danes, a principal at Perkins Eastman. “Since the sisters view themselves as stewards of the environment, we felt there was a real opportunity for this project to become an example of their commitment.” The design team decided to consolidate the infirmary and convent into the larger of the two existing structures, and the smaller of the two buildings was converted into independent living apartments for low-income seniors.
As renovation proceeded in the main building, the design team and subcontractors recognized the value of reusing many of its existing materials. A special subcontractor was brought in to catalog, remove, touch up and reinstall hardwood floors, doors, door jambs, baseboard moldings and other reusable materials, at a savings of more than $400,000. The design team also discovered that many of today’s “innovative” environmental construction techniques were standard practice when the building was originally designed, including its narrow footprint, large operable windows, and transoms above doors to provide daylight and natural ventilation. Adding to the benefits of the existing ventilation, materials with low Volatile Organic Compounds were used during the renovation and a cleaning program using “green” products was introduced. This greatly improved indoor air quality and helped to alleviate asthmatic symptoms among the nuns. Half of the convent’s 20 acres of grounds were converted from grass to a native meadow containing more than 21 species of perennial plants. This reduced maintenance requirements and attracted birds and butterflies to the site. A cistern on the top of the building collects roof water, which helps reduce storm water runoff. Throughout the project, the design team held seminars to discuss green building strategies and building maintenance, and invested in signage to help promote ongoing recycling efforts. After 18 months, the Felician Sisters moved back into a facility that maintained its 1930s character while establishing new levels of functionality, energy efficiency, accessibility and environmental quality — appropriate for an order that follows Saint Francis of Assisi, the patron saint of the environment. “Winning this national award simply reinforces the original goals of the project and gives us renewed pride in renovating a building that benefits the sisters, the environment and the community,” said Danes. The Felician Sisters’ project is one of 11 winners of the 2005 National Green Building Awards, which recognize development projects and advocates on the leading edge of green building. The winners were announced during NAHB’s National Green Building Conference. For more information about this year’s honorees, click here. The 2006 call for entries will be posted at this site later this month. Or e-mail Marie Yarroll at NAHB, or call her at 800-368-5242 x8132. New York Builders Save $3 Million on Storm Water FeeCovering any facility authorized after April 1, 2004, the legislation imposed a retroactive fee of $50 for each acre disturbed and $300 for each acre of impervious surface. Under a new amendment to the legislation drafted by the builders association, the commencement date for the fee was moved to Sept. 1, 2004. The successful lobbying effort by the home builders association applies to more than 900 permits across the state. The association has notified its members that they should first contact the New York State Department of Environmental Conservation (DEC) if they receive an invoice for the time period of April 1-Aug. 31, 2004. The appropriate fee for permits issued for this time period will revert to the previous fee of $50 per year. Unless they are instructed otherwise by the DEC, builders are being instructed to pay the invoice under protest and to let the department know that they will be expecting a refund for the amount that was assessed — over the $50 yearly fee — for the covered period. NCBC 2006 Awards of Excellence Deadline LoomsThe NAHB National Commercial Builders Council (NCBC) is accepting applications for its 2006 Awards of Excellence program, which recognizes achievements in the national commercial building industry for design (remodeling and new construction), market appeal, energy efficiency, challenges faced during building and overall success of projects that are either built or renovated. The deadline for entries is Monday, July 25. Applications are open to builders, architects, designers, engineers, contractors, developers and building owners for non-residential retail, commercial, institutional, medical, industrial, recreational, entertainment and mixed-use commercial/residential projects completed within the country after Dec. 31, 2002. The six divisions in which a project can be entered include:
Entrants will receive a one-year subscription to the award-winning magazine, Commercial Builder, a granite recognition award and publicity at the International Builders' Show and in the convention issue of Commercial Builder. Winners will be notified by mail no later than Nov. 1. For more information, visit 2006 Awards of Excellence: Building Excitement on the NAHB Web site or e-mail Jill Pivovarov, of the NAHB National Commercial Building Council, or call her at 800-368-5242 x8455. Funding Report Voices Support for Training EffortsWhile funding levels for several Department of Labor programs were cut, two of the Home Builders Institute's (HBI) workforce development efforts — its trades training programs in Job Corps and its Project CRAFT program — were singled out for their efforts to prepare youth for careers in the home building industry. “The committee recognizes the significant impact the home building industry continues to have on the health of the U.S. economy,” Rep. Jim Walsh (R-N.Y.) noted in the official committee report accompanying the funding bill. “The committee also recognizes the essential role played by the Home Builders Institute, the workforce development arm of the National Association of Home Builders, in training Job Corps youth for careers in this high growth industry.” The bill recommends $1.542 billion for Job Corps, nearly $10 million below FY 2005, but still $25 million above the budget request. The residential Job Corps program provides academic and vocational training for at-risk youths at 122 centers in 48 states and the District of Columbia. HBI offers training in seven skilled trades at 69 centers. The committee went on to encourage the Labor Department to identify existing and future Job Corps centers “for potential expansion of construction trades training by employer-based industry groups like HBI, to help alleviate the shortage of skilled workers and to further the goal of American homeownership.” Although the FY 2006 budget request did not include funds for the Responsible Reintegration of Youthful Offenders program, and House appropriators also chose not to provide funding, FY 2005 support at $49.6 million ensures the operation of current programs such as HBI’s Project CRAFT/Nashville. For the past couple of years, funding for the Responsible Reintegration program has been restored by Senate Labor Appropriators. Senate action on its version of the spending bill is expected on July 12. In response to a request by Rep. Roger Wicker (R-Miss.) for a show of support from the House Appropriations Committee for Project CRAFT, the committee report includes recognition of “Project CRAFT as a noteworthy effort in the rehabilitation and reduced recidivism of adjudicated youth. The committee believes Project CRAFT serves as an example of the success achieved during the Youth Reintegration pilot demonstration, and applauds HBI for its ongoing dedication to serving the workplace education needs of this segment of the youth population.” Project CRAFT is operated in Jackson in partnership with the Mississippi Department of Human Services, Youth Division, serving adjudicated youths from four of Jackson’s surrounding counties: Hines, Madison, Rankin and Warren. In addition, the report language commended Project CRAFT for “the role it plays in preparing young people to join the residential construction workforce and the continuing importance of the home building industry to our nation’s economy.” Furthermore, the committee recommended that the Labor Department “replicate Project CRAFT so that its outcomes-oriented approach will assist adjudicated youth to become productive members of the industry’s workforce.” The award-winning training program also operates with state funding and through local partnerships in Morrison Township, N.J. and in Florida at Avon Park Pembroke Pines, Orlando and Tampa. A new site funded by the state’s Department of Juvenile Justice will open in Clearwater this summer. To read the complete appropriations bill, click here and enter H.R. 3010 in the box at the upper left. For further information on HBI’s programs, e-mail Maria McIntyre at HBI, or call her at 800-795-7955 x8912. For legislative information, e-mail Jenna Hamilton in NAHB's Legislative and Political Relations, or call her at 800-368-5242 x8407. Red Feather Builds Affordable Straw Bale HomesHeadquartered in New Britain, Conn., The Stanley Works is a member of the National Council of the Housing Industry — the Supplier 100 of NAHB. As part of its American Indian Sustainable Housing Initiative, Red Feather educates tribal members about sustainable construction techniques, community planning and how to create beautiful, super-insulated, affordable straw bale homes. Of the 2.5 million tribal members living on America’s Indian reservations, 1.5 million are either homeless or living in over-crowded, substandard conditions. Many homes lack basic amenities such as water or electricity. Red Feather also assists tribal members with the complicated mortgage process and collaborates with tribal housing authorities and mortgage companies to help individual households buy homes. Red feather has worked with the federally recognized tribal nations of Pine Ridge in South Dakota, Muckelshoot in Washington, Crow and Northern Cheyenne in Montana, Turtle Mountain in North Dakota and Hopi in Arizona. Straw-bale construction is used in the housing initiative for several reasons:
How I Manage ProjectsI’ve spent the last 15 years desperately trying to figure out the best way to manage projects. I’ve tried all manner of software, even wrote my own. The results of these exhaustive trials may surprise you. In short: simpler is better. First, the size of the project has a lot to do with it. Most of mine have been small — in the $1,000-$3 million range. Projects of this size are generally less complex than mega-projects in terms of the number of tasks, subs, resources and the like. What works for small won’t likely work for large. The real difficulty with small projects comes with the number of them you’re managing at once. In my case, I’ve had anywhere from five to 75 going simultaneously. Keeping them all moving forward without things falling through the cracks can become tortuous, if not impossible. I once took a graduate course called “Project Management.” It was a joke. If I tried to apply half of the baloney that course “taught,” I’d be laughed right off the job. Project management (in the real world, i.e. not the fake classroom) boils down to a few basic, common-sense concepts:
The Problem With Project Management (PM) Software. Software companies would have you believe that their product will instantly solve all your project management woes. Not! I own a software company, so I know a little about the industry. In a nutshell, it takes more time to set up and maintain a project with most PM software than it’s worth. And that’s not even taking into account the learning curve involved in simply becoming proficient with it. Ironically, PM software was invented to save time, yet to really make it sing takes lots of… time. (As soon as this column is published, I’m sure I’ll receive many e-mails from angry software manufacturers telling me I’m crazy because I haven’t tried their product. Please, don’t waste my… time.) The Most Powerful Project Management Tool. Actually, the two most powerful PM tools are the cell phone and e-mail. Since everyone and their kids already have a cell phone, no need to delve there. However, I am amazed that not everyone in our industry uses e-mail; and also that those who do, generally underutilize it. Why E-mail? Here’s why:
Tim Garrison of ConstructionCalc.com, is a professional engineer, author and software producer for the building industry. Send e-mail to buildersengineer@constructioncalc.com. Tim reads every one. This column cannot be reprinted without permission from the author. The views expressed in this article represent the personal views, statements and opinions of the author and do not necessarily represent the views, statements, opinions or policies of the National Association of Home Builders. NAHB does not necessarily endorse any of the views expressed by the author and NAHB is not responsible for any direct or indirect consequences arising out of the views expressed in this article. NAHB-Produced Shows on HGTV & DIY — This Week"I Want That!" on HGTV
"Dream Builders" on HGTV
"Rock Solid" on DIY
"Assembly Required" on DIY
The NAHB Production Group is a full-service, self-contained, media production unit creating programming for cable television, broadcast television, non-profit, museum and corporate clients. Productions range from magazine format shows for general audiences to museum-installation videos for specialized use. The production group includes award winning journalists, writers and photographers with experience in broadcast, documentary and corporate television.
Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available 24 hours a day at www.nahb.org. Just click the "Log In" button to get started. Once you log in, personalize the site to reflect your interests. Simply go to the My NAHB>My Profile page and click the “Edit Content Preferences” link. To learn more about how you can customize My NAHB — including how to customize the links that appear on the Home page ― visit the How to Use www.nahb.org section. Ken Klein Named to Endowment Board of Trustees
Klein has been a steadfast advocate for partnerships that encourage private corporations to work with nonprofit and civic organizations to improve services to the community. Most notably, he and his wife, Judi, serve on the advisory board of the Mental Health Association of Tulsa (MHTA). Klein was instrumental in helping secure housing for the organization, has volunteered his time and expertise consulting in property acquisition and has served as the lead contractor in the refurbishing of MHTA homes, many times at his own expense. Klein and his wife have also joined the National Housing Endowment Founding Advocates by making a substantial six-figure donation to the Endowment that will be used to address critical industry needs and priorities. “Judi and I believe in supporting our industry,” said Klein. “There is great synergy between the National Housing Endowment’s mission and the work that I have done for NAHB in the areas of education and smart growth. I will also be able to further my commitment to the issue of mental illness through my work with the Endowment.” Klein, a builder and remodeler for 43 years, is the recipient of the National Remodeling Quality Award. He has won recognition as Tulsa’s Builder of the Year (1983), Oklahoma’s Builder of the Year (1989) and Remodeler of the Year (1995). He has also been named Oklahoma’s Small Business Person of the Year (2002). Klein has been active within NAHB as chairman of the Home Builders Institute, the workforce development arm of NAHB; the NAHB Smart Growth Working Group; and the NAHB Remodelors™ Council. He has also been a national vice president.
Help Tsunami Survivors Rebuild Their HomesNAHB and the National Housing Endowment have established the Home Builders Care/National Housing Endowment-Tsunami Shelter Fund to raise desperately needed funds to build permanent shelter for the victims of the devastating earthquake and tsunami disaster in South Asia last year. The fund currently has raised more than $354,000. NAHB has designated Habitat for Humanity® International and Shelter for Life International to be the recipients of the fund. Through NAHB donations, Habitat for Humanity will create a Disaster Response Technical Center in one of the affected countries it is serving. Shelter For Life will build a “Home Builders Care Village” of starter homes in Sri Lanka with NAHB funds. Please Help Please help by making a tax deductible donation to the Home Builders Care/National Housing Endowment-Tsunami Shelter Fund. Please direct your donation check to: National Housing Endowment
Checks should be made payable to the National Housing Endowment and, in the memo section, please note the "Tsunami Shelter Fund." The NAHB Senior Officers have selected Past President Bob Mitchell to oversee and guide this fundraising effort. For more information, contact Troy Patterson at the National Housing Endowment at 800-368-5242 x8483 or Kym Kilbourne in NAHB Public Affairs, x8447. Put the NBN Hammer Cursor on Your Computer and Web Site
Show your pride in the home building industry by customizing your computer’s cursor with the “pounding hammer” cursor that is used in Nation’s Building News. The customized cursor is available free from NAHB and Nation’s Building News and will work on Windows 95 or newer operating systems. To begin customizing your computer’s cursor, first download the two hammer graphics needed to make the hammer move:
Once you have saved both hammer graphics to your computer, follow the steps below according to your Windows operating system. Customizing your computer with the new hammer cursor should take less than five minutes. Windows XP:
Windows 95, 98, 98SE, ME, 2000 users
To change your settings back to your old settings:
To add the "hammering" NBN hammer cursor to your company's Web site, have your Web developer or IT department add the following codes for both hammers to your CSS style sheets (after the hammer images have been saved to your computer):
Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available 24 hours a day at www.nahb.org. Just click the "Log In" button to get started. Once you log in, personalize the site to reflect your interests. Simply go to the My NAHB>My Profile page and click the “Edit Content Preferences” link. To learn more about how you can customize My NAHB — including how to customize the links that appear on the Home page ― visit the How to Use www.nahb.org section. Save on DELL™ Computer ProductsDell, the world's leading computer systems company, offers discounts to NAHB members on an array of products designed to meet the technology needs of your company. Discounts are available on:
Contact the Dell Association Sales Representative at 888-577-3355, Monday-Friday, 7 a.m.-8 p.m. (CT) and Saturday, 8 a.m.-5 p.m. (CT). 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.
Subscribe Your Employees to Nation’s Building News — and Earn a Chance to Win Digital Camera Subscribe your employees to Nation’s Building News Online. It’s free, easy and NAHB members who sign up three or more employees will be entered into the "Make Your Business Click" contest to win a digital camera. To learn more or sign up your employees, click here.
Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available 24 hours a day at www.nahb.org. Just click the "Log In" button to get started. Once you log in, personalize the site to reflect your interests. Simply go to the My NAHB>My Profile page and click the “Edit Content Preferences” link. To learn more about how you can customize My NAHB — including how to customize the links that appear on the Home page ― visit the How to Use www.nahb.org section. Save More With BuilderBooks.com RewardsBuilderBooks.com is offering it's first-ever Rewards program to provide privileges, savings and rewards to its loyal customers. Launched at the 2005 International Builders’ Show, the program is available for a $9.95 annual fee.
Join the Rewards program today and save on the very books and services that build your business. Click here to start saving.
Subscribe your employees to Nation’s Building News Online. It’s free, easy and NAHB members who sign up three or more employees will be entered into the "Make Your Business Click" contest to win a digital camera. To learn more or sign up your employees, click here.
Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available 24 hours a day at www.nahb.org. Just click the "Log In" button to get started. Once you log in, personalize the site to reflect your interests. Simply go to the My NAHB>My Profile page and click the “Edit Content Preferences” link. To learn more about how you can customize My NAHB — including how to customize the links that appear on the Home page ― visit the How to Use www.nahb.org section. Calendar of Events
To view more meetings and events information on the NAHB Web site, click here.
Subscribe your employees to Nation’s Building News Online. It’s free, easy and NAHB members who sign up three or more employees will be entered into the "Make Your Business Click" contest to win a digital camera. To learn more or sign up your employees, click here.
Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available 24 hours a day at www.nahb.org. Just click the "Log In" button to get started. Once you log in, personalize the site to reflect your interests. Simply go to the My NAHB>My Profile page and click the “Edit Content Preferences” link. To learn more about how you can customize My NAHB — including how to customize the links that appear on the Home page ― visit the How to Use www.nahb.org section. |