Smart Solutions to Tough Business Challenges
A Coalition Builder Fights Code Rewrites

The Challenge

Rocky Mount, N.C., has had land development codes (LDCs) since 1982. In 2002, the City of Rocky Mount Planning Board spearheaded a complete rewrite of its existing LDCs. Some of the proposed changes included:

• Requiring developers to submit fully designed projects for preliminary plan review and approval by the Planning Board. Previously, developers could submit sketch plans of proposed projects.
• Requiring 5-foot-wide sidewalks on both sides of the street in all developments. Sidewalks previously were not required.
• Landscaping stipulations requiring 25-foot-tall trees to be planted every 75 feet and 15-foot-tall trees to be planted every 25 feet on residential lots. Previously, there were no landscaping requirements.
• Widening streets and right-of-ways to add 3 more feet on both sides. 

“[The proposed code rewrites] would have greatly burdened affordable housing as well as housing in general,” says builder and developer Russ Davis, a member of NAHB’s Single Family Small Volume Builders Committee. End users—that is, home buyers—would have footed higher land development expenses. Many would-be buyers would have been priced out of the market.

North Carolina’s Division of Water Quality requires developers and municipalities to reduce impervious surfaces. The purpose is to curtail nitrogen run-off into local watersheds, as dictated by stormwater management plans. However, several of the proposed LDC changes would have significantly increased impervious surfaces in Rocky Mount.

It gets worse. Developers would have had to increase the size of their lots to meet minimum lot size requirements and satisfy proposed LDC changes. That would have reduced the number of usable lots per tract—as well as profits. “Where you could get 50 lots out of a tract under current codes, you would get just 45 or less lots under the proposed rewritten codes,” says Davis.

Deanhardt & Davis owns a 60-acre tract consisting of 115 lots that it hadn’t planned to develop for another two years. The project went through the city’s zoning and plan review process and received approval. Land development estimates were based on the existing LDCs. Under the proposed code rewrites, however, the project’s profitability would have been greatly impacted.

The rewritten LDCs were slated to go into effect December 2003.

The Solution

Dismayed by the proposed LDC changes, several housing industry professionals discussed how to approach the City of Rocky Mount about their concerns. Local Realtor Ken Sikes talked with Davis, who suggested forming a coalition. “I thought we should join forces with the Realtor, builder, and developer communities and work with the city on hammering out a solution,” the builder/developer says.

Sikes got Jeff Osborne, president of the Rocky Mount Area Realtors Association, on board with the idea. Davis discussed the coalition with 2003 Rocky Mount Home Builders Association president Tim Freeman, who agreed on the need for it. Osborne and Freeman each appointed three members to the coalition from their respective organizations.

From his involvement with similar groups in other areas, Davis knew how a coalition should be structured. He knew that Charlotte, N.C., had faced some of the same issues Rocky Mount was now contending with, and had formed the Real Estate & Building Industry Coalition (REBIC). Davis called on REBIC executive vice president Mark Cramer for help. He also tapped Tim Minton, director of political affairs for the North Carolina Home Builders Association, who helped put together a strategic plan for Davis and his peers. The newly formed group decided to call itself the Building Industry & Real Estate Coalition (BIREC).

BIREC hired an attorney who helped the group establish 501c3 non-profit status. Each of the members kicked in seed money to get the coalition off the ground. They received contributions from the Rocky Mount Realtors and Home Builders Associations and their respective members. “We currently have a next egg of about $40,000,” says Davis. “If we encounter issues outside our area of expertise and need to hire an engineer or another attorney, we can.”

BIREC’s first task was to inform the Rocky Mount Planning Board that it wanted to be involved in the LDC discussions. The Planning Board’s response was lukewarm at first. Then Davis brought a prepared statement to a City Council meeting in August 2003.

“It was hot with facts,” he says. He’d gathered information on all the construction permits Rocky Mount had issued in the past four years and had given it to David Crowe, NAHB’s Senior Staff Vice President of Federal Regulatory and Housing Policy.

“David crunched the numbers and gave us some data to put in the statement that explained the income, tax revenue, and jobs the construction industry had contributed to Rocky Mount’s economy,” Davis says.

BIREC’s statement suggested soundly researched alternatives to the problematic LDC rewrites. As he read the document to meeting attendees, Davis stressed repeatedly that the coalition wanted to work with the Planning Board and the city, not against them. He asked that BIREC be consulted on all future planning and growth issues.

The Payoff

In all, BIREC attended more than 30 Planning Board and City Council meetings on the LDC.  It convinced the City of Rocky Mount to remove the sidewalk, street widening, and landscaping stipulations, among others, from the rewritten LDCs.

Land development costs stayed where they were; builders didn’t have to pass higher costs on to home buyers. The local real estate market is sharing a collective sigh of relief thanks to BIREC’s—and Davis’—initiative.

“They took notice of us,” the builder/developer says. “Now they consult us first when they have planning issues. It’s a win-win for us, the city, and especially the general public.”

What You Can Do

“Small builders generally are not positioned to work with municipalities,” Davis observes, “but if a community or industry, in our case, is not united in its efforts, it will lose.” He offers the following advice for NAHB members facing local issues that could threaten their businesses:

• Consult your local HBA membership; do you have the expertise and contacts to organize a coalition? If so, tap into that resource.
• Go to your state HBA. Typically its regulatory and legislative department will help you get established. In turn, your local grassroots efforts help the state HBA when it has to deal with similar issues on a statewide level.
• Check out the land development, community planning, and business management publications available at www.builderbooks.com. In addition, NAHB’s
  • Executive Officers Council,
  • Land Development Resources,
  • State and Local Government Resources,
  • Legal Services, and
  • Business Management Tools offer a variety of resources.
• Don’t give up. “The only way to survive is to work with your local government and show them how big a gorilla you, as an industry, really are,” says Davis.

Tell us about your smart solution—or someone you know who came up with one. Contact us at jtunick@nahb.com or at 800-368-5242, ext. 8461.

Legislation Would Aid Small Businesses in Recovering Court Fees
House Small Business Committee Chairman Don Manzullo (R-IL) last week introduced legislation to help a small business firm recover its attorneys’ fees and court costs when it prevails in a case against a government agency (such as the Occupational Safety and Health Administration).

The legislation, H.R. 2282, would amend the Equal Access to Justice Act (EAJA), which currently governs the ability of small businesses to petition for reimbursement of court costs. Under current law, while small businesses can petition for reimbursement, the EAJA greatly limits the amount small businesses can recover, and tightly controls situations in which small businesses qualify for reimbursement. Chairman Manzullo intends to hold hearings on this legislation in September. There is reportedly wide support for the measure not only among the small business community, but also among groups such as the ACLU and the Sierra Club.

To view the bill, select this link and type H.R. 2282 in the upper left hand corner. For more information, contact Jenna Morgan-Hamilton at 800-368-5242, x8470.
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Build Votes for Housing
Giving builders a strong voice in the elections this November is the objective of NAHB's comprehensive new election Web site at www.nahb.org/elections.

Designed to help NAHB members and their employees in all 50 states who want to register to vote and vote early, the site also provides a variety of election resources, including the latest national poll results, information on NAHB activities at the nominating conventions, and information on how to contribute. The early voting and voter registration areas of the site leverage recent voting law changes to help NAHB members quickly and easily make their choices count.

For more information, read the press release or contact Ashley Geyer at 800-368-5242, x8126.
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Pass it On
You probably know someone who wants to read this valuable newsletter, too.  So go ahead and send this newsletter to any NAHB member you know who might benefit from it. They’ll be sure to thank you for it! [return to top]

How Does Your Business Measure Up?
Get your copy of the 2004 Cost of Doing Business Study and you’ll instantly see how your financial performance stacks up against the rest of the industry. The publication gives home builders a rare glimpse at other builders’ books by providing data about profitability, cost of sales, and expenses from hundreds of home builders across the country.
 
In this 2004 edition, you’ll learn how to develop cost control systems and get tips on cutting cycle time. Start working more profitably by ordering it today!
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Business Opportunities From NAHB Councils and Departments
It pays to be diversified. Publicize your company’s depth by entering the following award programs and registering for NAHB International’s upcoming conference in Mexico City. Do you build for seniors and/or remodel homes? Read on for information about the brand-new Builder 20 Club for seniors housing professionals and the educational offerings at the Remodeling Show.

2005 Commercial Builders Council Awards of Excellence

Sponsored by NAHB’s National Commercial Builders Council, the 2005 Awards of Excellence — Building Excitement program 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 the project. Builders, architects, designers, engineers, contractors, developers and building owners are eligible to enter the competition.

All entries must be received by July 26. Select this link to download the call for entries brochure and entry form. For more information, contact Carmel Nayman at 800-368-5242, x8410.

Sales and Marketing Ideas Magazine’s Idea of the Year Contest

What’s your bright idea? If you’ve produced an innovative, cost-effective marketing campaign or strategy, enter Sales + Marketing Idea magazine’s Idea of the Year contest.  The entry deadline is August 6; entries must feature ideas generated from July 1, 2003 to July 1, 2004. Select this link to download an entry form. Questions? Contact Taylor Blanchard at 800-368-5242, x8680.

Remodelor^TM of the Year Award

Applications for the Remodelor™ of the Year Award are now available online at www.nahb.org/remodelors under the Awards section.

Sponsored by NAHB’s Remodelors™ Council, The Remodelor™ of the Year Award recognizes exemplary NAHB involvement at any level, superior business management, and an outstanding contribution to the remodeling industry. Councils should nominate individual remodelers, but the nominee must write his or her own entry essay.

The entry deadline is September 3. The winner will be announced at the Remodelors™ Council Gala during the 2004 Remodeling Show in Chicago. Questions? Contact Melanie Hinton at 800-368-5242, x8451.

Building Systems Councils Excellence in Marketing & Home Design Awards

NAHB’s Building Systems Councils (BSC) are accepting entries for the annual BSC Excellence in Marketing & Home Design Awards. Categories for systems-built housing manufacturers and associates are open only to current BSC members; builder categories are open to any NAHB builder member using building systems. The Building Systems Councils represents the interests of the concrete, log, modular, and panelized home building industries.

All entries must be received by September 10. Winners will be recognized during the Building Systems Councils SHOWCASE in Austin, TX. Select this link for more information about the competition, or contact Eric Fulton at 800-368-5242, x8577.

National Sales and Marketing Awards

Sponsored by NAHB’s National Sales and Marketing Council, the National Sales and Marketing Awards recognize excellence in new-home sales and marketing. The awards are held each year at the International Builders’ Show, and pay tribute to the best in architectural achievement, design, advertising and promotion, interior merchandising, Web site design, and more. The entry deadline is September 24. 

Select this link for more information and a listing of last year’s award winners. Questions? Contact Taylor Blanchard at 800-368-5242, x8680.

2005 Best of Seniors Housing Design and Marketing Awards

The NAHB Seniors Housing Council has revamped its seniors housing awards program with 108 categories and an increased emphasis on marketing. The 2005 Best of Seniors Housing design and marketing awards program, “Celebrating Excellence … Visions of the Future,” rewards projects for their innovative designs and marketing approaches.

The contest is open to architects, builders, remodelers, engineers, and other professionals who produce or sell housing for the 50+ market. The entry deadline is October 22. Awards will be presented during the 2005 International Builders’ Show in Orlando, FL.

Select this link to download contest rules and the call for entries. Or contact Eucklan Matthews at 800-368-5242, x8220 to have a copy of the call for entries mailed to you.

Do Business in Mexico

The Mexican home building market is expected to grow to a value of $6.7 billion by 2005. Want a piece of it? Attend the 2nd International Housing Conference of the Americas, which takes place November 7-10 in Mexico City and is sponsored by NAHB International. 

Conference highlights include pre-arranged, one-on-one networking meetings between U.S. and Mexican company representatives, property tours of Mexico’s top builders, and interactive, highly informative panels. Simultaneous English/Spanish translation is included for all sessions.

The first 200 registrants to the 2nd International Housing Conference of the Americas will receive complimentary registration to the 2005 International Builders Show in Orlando, FL.

Select this link to register online for the conference. For more information, contact Matt Monjan at 800-368-5242, x8419.

New Builder 20 Club Addresses 50+ Market

NAHB is in the process of launching its first Builder 20 Club for professionals in the growing 50+ housing market.

Executives of home building and development companies that produce for-sale or rental communities catering to boomers, empty nesters, pre-retirees, active adults, and seniors are encouraged to join NAHB’s 50+ Senior Builder 20 Club.

Other Builder 20 Clubs are planned for architects as well as industry professionals involved in assisted living.

Members of the 50+ Senior Builder Club will be grouped with other industry leaders from non-competing markets whose companies have a similar size and operations. They will meet privately to exchange ideas and develop business, strategic and marketing plans to better position their organizations for success.

For more information on the 50+ Senior Builder 20 Club, visit www.nahb.org/20clubs or contact Kristin Peck at 800-368-5242, x8105.

Take CGR and CAPS Courses at the Remodeling Show

This year’s Remodeling Show (formerly known as the Remodelers Show), produced by Hanley-Wood and sponsored by NAHB and the Remodelors™ Council, will take place October 6-9 at the McCormick Place Convention Center in Chicago. The pre-Show education courses begin on Monday, October 4.

Work toward receiving your Certified Graduate Remodelor™ (CGR) or Certified Aging-in-Place Specialist (CAPS) designation before you walk the more than 87,000 square feet of exhibit space and mingle with more than 10,000 builders and remodelers.

This year’s pre-show education courses include:

• PREP: Your First Step to CGR
• Design/Build
• Scheduling
• Introduction to Business Management
• Sales & Marketing for Remodelers
• Working With and Marketing to Older Adults
• Home Modifications

The pre-show course schedule and descriptions are available at the Remodeling Show Web site. Select this link to register for the show and sign up for the certification courses.  [return to top]

Did Someone Forward This to You?
Select this link to get this valuable newsletter every month. [return to top]

Customize the NAHB Home Page With Your Favorite Links
NAHB members can now customize the NAHB Home page with their favorite links. My NAHB Favorites is a time-saving feature that lets you create shortcuts to your most frequently viewed Web pages and place them directly on the www.nahb.org Home page. 

You can create favorite links for great Web pages like Business Management Tools, the NAHB Contact Directory, or the Fall Board of Directors meeting page. You can even use this new tool to bookmark entire sections of content like the new Legal Services section.

To add a page to My NAHB Favorites, you must be logged in as a member.  Once you log in, go to any Web page on www.nahb.org that you use frequently and click the “+ Add to My NAHB Favorites” link which appears in the upper right corner of the page. (Please note that this link only appears on Web pages, and not files such as PDFs or Word documents.)  A pop-up box will open to confirm that your page has been added to your favorites.

Once you’ve added several pages to your favorites, go to My NAHB and then My NAHB Favorites to view your favorite NAHB links. On the My NAHB Favorites page, you can select up to four of your favorite links to appear on the NAHB Home page. Just check the “Show on Home Page” box next to the links you want on the Home page and return to www.nahb.org to see your links displayed.  By adding key links to the Home page, you make it possible to return to your most-used pages with just one click.

To learn more about how you can customize My NAHB to your interests, visit the How to Use www.nahb.org section and check out the How to Customize My NAHB Tutorial. Need help? Contact Linda Keens at 800-368-5242, 8134 or Larissa Payne at 800-368-5242, x8137.
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Member Advantage: Viking Offers NAHB Members a Discount on Top of Discounts
With Viking Office Products, NAHB members receive an additional 10% discount on office products already discounted up to 69%. Other advantages include fast overnight delivery, same-day delivery in major cities nationwide, free delivery on orders as small as $25 (continental U.S. only), one-year guarantee on everything, complete delivery (virtually no backorders), and courteous, helpful people.
 
Call 800-421-1222, fax 800-762-7329, or click on www.vikingoffice.com. Mention code “HB” or enter it in the promo field online to get your extra 10% member discount.

For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to http://memberadvantage.nahb.org. Or visit www.nahb.org to explore the full range of benefits associated with membership in your local, state, and national home builders associations.
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