NAHB Releases Results of Latest Critical Issues Survey
The top-10 most critical issues for builders, as defined by NAHB's latest Critical Issues Survey, will continue to be primary areas of attention for our association going forward.

Results of the survey indicate that the development approval and permitting process was the single biggest concern to NAHB members during the latest survey period (although there were regional differences in terms of how the issues stacked up). The cost of liability insurance was rated the second biggest challenge, reflecting a very slight decrease from its status as the top ranked issue since it was first included in the survey in 2002.

Understanding what issues are most important to our members and how the relevance of each issue changes over time is essential to ensuring that NAHB staff resources and attention are properly allocated.

Builders Applaud Action By Bank Regulators To Expand Construction Lending Data
“This action will allow federal banking regulatory agencies to differentiate the disparate risks posed by residential versus commercial lending activities,” said NAHB President David Pressly, a home builder from Statesville, N.C. “Providing data on one-to-four family residential construction is an important step in developing a secondary market for single-family housing production.”

As a result of the regulatory changes, large banks and banks with a high volume of residential production loans on their books will be required to break out their one-to-four family housing production data in their quarterly Bank Call Report effective on March 31, 2007. All other banks will begin reporting the breakdown of their construction loans as of March 31, 2008.

“The bottom line is that more residential-specific data will be reported on loan volume and loan performance, which will invite market analysts and investors to treat housing production loans more favorably.  This information will help build a secondary market for construction financing,” said Pressly.

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Builders Support Sensible Flood Insurance Reforms
NAHB told Congress that it supports efforts to reform the National Flood Insurance Program (NFIP) to ensure that program’s long-term financial stability, but cautioned that any legislative proposals should not be an overreaction to unusual circumstances stemming from last year’s devastating hurricane season.

Testifying before the Senate Banking Committee, NAHB President David Pressly said the “NFIP is not simply about flood insurance premiums and payouts, but is rather a comprehensive program that guides future development and mitigates against future loss.”

To improve the solvency of the program and its attractiveness to potential policyholders, NAHB supports the following reforms to allow the Federal Emergency Management Agency (FEMA) and the NFIP to better adapt to changes in the marketplace:

• Providing FEMA the authority to allow for slightly higher annual premium increases to allow the agency to reduce its indebtedness to the federal Treasury.
• Increasing coverage limits to better reflect today’s home values.
• Creating more insurance options to allow policyholders greater flexibility and provide additional home owner benefits while aiding program solvency.
• Raising the minimum deductible for paid claims in order to provide a strong incentive for owners to protect their homes, and thereby reduce potential future losses to the NFIP.
• Updating and modernizing the Flood Insurance Rate maps to eliminate large discrepancies between what was mapped as the 100-year floodplain decades ago and what the 100-year floodplain is today. The term “100-year floodplain” refers to an area that has a 1% chance of suffering a catastrophic flood in a given year.

Pressly said that NAHB would oppose any effort to statutorily change the current 100-year floodplain standard to a 500-year floodplain standard as a way to require more home owners to participate in the NFIP and buttress the program against greater losses.

“Before considering any proposal to expand the 100-year floodplain standard, NAHB believes that FEMA should conduct a study of the feasibility and implications of such a change in the NFIP’s mandatory purchase requirements prior to enacting any modifications,” said Pressly, who noted that a shift to a 500-year floodplain standard would greatly expand the program’s reach by forcing millions of additional property owners to purchase flood insurance.

Flood insurance claims for the 2005 hurricane season are expected to top $23 billion as a result of the unprecedented damages caused last year by Hurricanes Katrina, Rita and Wilma, far exceeding the total amount paid out over the NFIP’s 37-year existence. 

Congress approved legislation last November to raise the borrowing authority of FEMA to $18.5 billion annually from the Treasury, and the NFIP will need at least $5 billion more to meet its obligation to claim holders.

Established in 1968, the NFIP offers affordable flood insurance to home owners and businesses in flood plains and other low-lying areas that otherwise might not be able to obtain such coverage.

More than 20,000 communities nationwide participate in the NFIP and the program currently covers approximately 4.8 million policyholders. [return to top]

Spring Board to Cover Array of Issues
During the week of May 10-14, the National Commercial Builders Council (NCBC) will convene a meeting of its Board of Trustees, as well as its Membership, Issues and Communications Subcommittees. NCBC Trustees, who oversee the council, will address council business as well as issues on the horizon that are of direct relevance to commercial building. Staff experts will be invited to provide the latest updates on legislative, economic and environmental issues affecting the industry.

Events scheduled thus far for NAHB and NCBC are listed below:

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BHMA Issues Revised Standard for Power Operated Pedestrian Doors
The Builders Hardware Manufacturers Association (BHMA) has announced the publication of ANSI/BHMA A156.10 2005, a standard useful to architects, engineers, building owners, installation and maintenance personnel and anyone else concerned with the proper operation of power operated doors.

ANSI/BHMA A156.10 2005, the American National Standard for Power Operated Pedestrian Doors, is an update of the 1999 version of the standard, which covers requirements that apply to power operated doors for pedestrian use that open automatically when approached by pedestrians and some small vehicular traffic. Included in the standard are provisions to reduce the chance of user injury or entrapment.

"BHMA received generous feedback from members in the industry while revising 156.10," said Mike Tierney, Standards Coordinator for the Builders Hardware Manufacturers Association. "Those comments and recommendations are critical for the evolution of builder’s hardware products and the accuracy of standard updates. It is necessary that buildings are outfitted with power doors that satisfy standard requirements for the safety of the public.”

Among the several revisions and additions included in the new edition were expanded requirements for Knowing Act Door Activation, swing closing force decreased from 40 pounds to 30 pounds, modified sensor and guide rail spacing requirements, and the addition of a useful appendix section to answer some commonly asked questions regarding custom installations and maintenance.

In addition, BHMA has updated the 2000 version of ANSI/BHMA A156.8 2005, American National Standard for Stops and Holders, which covers requirements that apply to overhead door stops and holders, and includes performance tests covering operational, cyclical, strength and finish criteria.

For more information, please visit BHMA's Web site at www.buildershardware.com. [return to top]

OSHA Revokes Slip Resistance Provision from Steel Erection Standard
The American Institute of Steel Construction (AISC) has announced that it agrees with a decision by the Occupational Safety and Health Administration (OSHA) to revoke the provision within the Steel Erection Standard that addresses slip resistance of the walking surfaces of coated structural steel members due to a lack of adequate and consistent measurement.

"While AISC is a strong supporter of measures that improve the safety of steel erection, we opposed these provisions because there was no reliable method of testing available," noted AISC President Roger Ferch. 

A trade news release issued January 18, OSHA states: "The ability to comply with the slip resistance provision depends upon two technical developments: completed industry protocols for slip testing equipment and the availability of suitable slip resistant coatings." However, OSHA added, "Rulemaking comments indicated that the test methods are not likely to be completed by the July effective date because ASTM will not have completed the required validation process. Comments also indicated that ASTM will likely withdraw the test methods altogether because they are brand-specific rather than generic. Lack of completed test methods has delayed the development of suitable slip resistant coatings. In addition, there has not been adequate testing of coatings to determine whether they have sufficient durability in the variety of applications in which they will be used, especially in corrosive environments."

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2006 GM $500 Exclusive Offer for NAHB Members

During 2006, qualifying NAHB members are eligible for a $500 exclusive offer on most GM passenger cars, light-duty trucks, vans and SUVs.

NAHB members nationwide will be receiving GM NAHB Affinity Cards in the mail during January 2006.  This mailing will be sent out directly from GM and members should use this card when purchasing a qualifying vehicle.  The direct mail piece will provide full details on this offer for 2006.

Members who have misplaced or otherwise do not have a GM NAHB Affinity Card may print out their own replacement cards to show member verification to a GM dealer.  Note:  the member MUST BE LOGGED IN TO www.nahb.org in order to print their replacement card.

Members with a www.nahb.org login should go to www.nahb.org/MA and click on the “GM Exclusive Offer,” taking the member to a page with program details and instructions for printing a replacement card. 

There are also instructions for members who do not have a login (they will be sent to www.nahb.com/loginGM and returned to the page to get a replacement card).

New members who cannot login because they are not in the NAHB Web Membership System (or CGI) should go to their Executive Officers to get a “Proof of Membership” document. 

Executive Officers can easily complete and print out this one page document on official association letterhead/stationery.  A customizable PDF of this document is available on www.nahb.org/MAToolkit .  Click on the large “SHOWCASE” graphic to open the 2006 GM Exclusive Offer page for Executive Officers.

Other questions?  Contact Tiffany Smith  at 202-266-8273 or tsmith@nahb.com.