| December 21, 2009 |
By Joe Robson
NAHB Chairman and
Jerry Howard
NAHB Chief Executive Officer |
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Reducing energy use and creating jobs
by making homes and other buildings more energy efficient is the name of the game for a new White House initiative lauded by President Obama on national television this week.
 Speaking from a Washington, D.C.-area Home Depot store on Dec. 15, the President called on Congress to extend energy-efficiency tax credits for home owners as part of his Administration's $8 billion "Recovery Through Retrofit" initiative, and spoke about the benefits of home owners nationwide embracing the opportunity to improve their homes while lowering their energy costs. Applauding the president's action, NAHB Chairman Joe Robson said that "This is the kind of thinking that is going to get America back to work – and make a big difference in many home owners' utility bills." Indeed, NAHB estimates that 11,000 jobs, $527 million in wages and salaries and $300 million in business income are generated by every $1 billion in new remodeling and home improvement activity. And as Joe noted, "This also bolsters a very important message and something we have been saying for years: If we really want to make an impact on the nation's energy use, we need to take significant steps to make the existing housing stock more efficient."
In related media outreach, including a CNN interview that was expected to air this weekend, Joe explained how NAHB-affiliated state and local HBAs can be instrumental in the effort to weatherize older homes and make them more energy efficient. For example, the BA of Minnesota served as the conduit for federal stimulus program funds provided to the state for its energy-efficiency programs. The association trained nearly 1,000 remodelers and other residential contractors and directed the money to 1,300 Minnesota home owners to help them make needed improvements. "These are efforts that the Administration should consider on a much broader scale," said Joe. "They provide employment, stimulate the economy and help us reduce our dependence on fossil fuels – that's three great outcomes. NAHB can help make this happen all over the country."
So far, the Administration seems quite receptive to such ideas. In fact, last month, the White House Council on Environmental Quality invited NAHB to explain how home builders, product manufacturers and remodelers can be part of the Administration's "Recovery Through Retrofit" solution with programs like Minnesota's. "We're anxious to help with these efforts," Joe said. "It's what our members do, and do well – and they all want to get back to work." Read NAHB's press release for more, or send questions to MondayMorningQuestions@nahb.org.
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Attention: NAHB members seeking project funding...
In previous editions of this report, we've told you about an exciting new offering at the 2010 International Builders' Show, called the Partnership Pavilion, that's designed to connect our members with new financing sources for their projects. This is the alert we promised to provide you when the form for submitting project specs became available. A members-only form is now ready for you at the www.nahb.org/partnership page; simply click where it says "Builders/Developers." More information on the Partnership Pavilion is provided below.
 Partnership Pavilion Overview
If you've looked for project funding recently, you know that traditional financing has become harder to find. There are smart alternatives, however – such as debt and equity positions, joint ventures and partnerships. At the Partnership Pavilion at NAHB's 2010 International Builders' Show®, from January 19-22, 2010 in Las Vegas, you can meet personally with premier building and financial industry reps to explore these and other financing solutions. Here's how it works:
-Participation is free, easy and open exclusively to NAHB members who are attending IBS.
-Simply submit basic information about the project(s) for which you need funding online.
-Participating financial firms will review builders' information and, where appropriate, schedule one-on-one meetings during IBS in the Pavilion's private meeting spaces.
Additionally, all builders submitting projects will be invited to attend an exclusive session during IBS — Wall Street Meets Main Street; How to Package Your Project For Successful Funding. To take advantage of this valuable opportunity, visit the Partnership Pavilion page on NAHB's Web site, and register for the IBS today!
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NAHB's newly updated "Opportunity Knocks" brochure
 is a great resource that we encourage you to print out and distribute in your sales offices, at home shows and anywhere there is a consumer audience of potential home buyers. The revised edition of "Opportunity Knocks for Home Buyers" includes information on the extended $8,000 first-time home buyer tax credit, the new $6,500 repeat buyer credit and the increased income limits for both -- which collectively provide many more Americans with a strong incentive to consider a home purchase over the next several months. Our four-color, four-page brochure even provides real examples of typical tax savings through the first five years of homeownership, while also describing other advantages of owning a home. A PDF file containing the brochure is available for your free download at nahb.org/opportunitybrochure. Note, you must be logged into the NAHB.org Web site with your username and password to access this page. Non-members and consumers can also access the brochure at www.nahb.org/homebuyerbrochure.
WHAT THIS MEANS TO YOU: This updated resource is just the latest to be added to a full set of tax credit promotional resources that NAHB had developed to help our members and HBAs get the word out about the newly improved incentives that are now available to potential home buyers. Download all of the related resources that are available to you as an NAHB member by visiting www.nahb.org/taxcreditmaterials. And don't forget to point your clients to NAHB's special consumer Web site on the housing tax credits, at FederalHousingTaxCredit.com/. To date, this comprehensive and user-friendly site has logged more than 6.5 million visits! Contact: MondayMorningQuestions@nahb.org.
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Builder confidence edged downward this month
 as continued weakness in the economy and job markets weighed on consumers' home buying plans, according to the latest NAHB/Wells Fargo Housing Market Index (HMI), released Dec. 15. The HMI declined a single point to 16 in December, which is its lowest point since June of this year. In NAHB's press release, Chairman Joe Robson explained that it's still a bit too soon for builders to see the anticipated impacts of the newly expanded home buyer tax credits on buyer demand. Two out of three of the HMI's component indexes were down for the month, with a one-point decline to 16 registered for current sales conditions and a two-point decline to 26 registered for sales expectations in the next six months. Meanwhile, the component gauging traffic of prospective buyers remained unchanged at a rather dismal low of 13. On a regional basis, however, the HMI results were more mixed. The Northeast posted a three-point gain to 23, while the West posted a one-point gain to 19, the South registered no change at 17 and the Midwest posted a two-point decline, to 12. Read more in our press release, or view the HMI tables online at: www.nahb.org/hmi. Contact: MondayMorningQuestions@nahb.org.
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Housing starts regained some ground in November
 with an 8.9% gain to a seasonally adjusted annual rate of 574,000 units, according to U.S. Commerce Department figures released Dec. 16. The gain represented a partial bounce-back from an exceptionally slow month for housing activity in October, and was largely attributed to a big increase on the multifamily side. NAHB Chief Economist David Crowe noted that overall housing production is still down on a quarterly basis, but said the fact that permit issuance increased in the month is a hopeful indication that the desired impact of the tax credit on housing demand may be just around the corner in early 2010. On the single-family side, starts rose 2.1% to a 482,000-unit rate in November. On the multifamily side, starts rebounded from an all-time record low in the previous month with a 67.3% gain to a seasonally adjusted annual rate of 92,000 units. The gains in overall (single- and multifamily) housing production were seen across every region in November, and combined permit issuance was up in all but the Midwest. Read NAHB's press release for more, or see the government's official report online.
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EPA's final WaterSense specs for single-family homes
 have just been released by the agency. This WaterSense Single-Family New Home Specification is the first national, voluntary specification for water-efficient new homes. The program is designed to complement the National Green Building Standard and other national rating systems, including Energy Star, with WaterSense-rated products earning points in the water efficiency sections of those systems. EPA solicited comments from the home building industry in creating its program, and it's clear that our input was given due consideration in the final product; in NAHB's recommendations, we emphasized the importance of working with existing, credible rating systems such as the National Green Building Standard. WaterSense-labeled new homes are built to be 20% more efficient than typical new homes, and must be independently inspected and certified. The specification that EPA just released is applicable to newly constructed single-family homes and townhomes of three stories or less. According to EPA estimates, American home buyers who invest in WaterSense-labeled homes can reduce their water usage by more than 10,000 gallons per year – enough to fill a backyard swimming pool – and save enough energy annually to power a television for four years. See the final specification and the EPA's Fact Sheet for WaterSense homes online. See also the Single-Family New Home Specification Background Information page at the EPA Web site.
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Legislative Update:
The Wall Street Reform and Consumer Protection Act of 2009 was approved by the House of Representatives on Dec. 11. This legislation would create a Consumer Financial Protection Agency to oversee common products such as credit cards and mortgages, and establish a council of regulators to police systemic risks in the economy, regulate the vast derivatives market and give the government power to wind down large, troubled firms whose collapse could threaten the financial system. Prior to the bill's passage, NAHB sent a letter to House members expressing the association's views and urging Congress to ensure that any changes to the housing finance system do not raise the cost or restrict the availability of mortgage credit for qualified borrowers. The Senate is not expected to act on its version of this legislation until next year. Read more in NBN Online.
The Tax Extenders Act of 2009 was approved by the House of Representatives last week. This legislation would extend through 2010 some of the $31 billion in popular tax breaks that are due to expire at year's end. Among provisions that would be extended is an "exchange" provision for the Low Income Housing Tax Credit program allowing state housing finance agencies to trade in a portion of their tax credit allocation for grant dollars to support local affordable housing. The bill would be paid for by cracking down on international tax evasion and taxing "carried interest," which would impose a multi-billion-dollar tax increase on real estate at a time when the industry is struggling to emerge from its worst downturn in decades. Currently, capital gains income generated by carried interest in a partnership is subject to a tax rate of 15%; under the House bill, the carried interest would be characterized as ordinary income subject to tax rates up to 35%. Prior to this bill's passage, NAHB sent a letter to House members in support of the LIHTC measure but strongly opposing the use of carried interest as its central revenue offset. The bill now goes to the Senate, which has rejected the carried interest proposal in the past. Read more in NBN Online.
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Get a sneak peek at what the 2010 IBS has to offer
 in last week's special issue of Nation’s Building News Online. Here you'll find previews of many of the new products, technologies, classes and events that you can attend, see and sample at the 2010 International Builders’ Show in Las Vegas next month. You can also find out about the 30 pre-show education courses that are being offered this year, including one- and two-day programs designed to increase business skills and professional credibility. Three new courses being offered this year include "Advanced Green Building: Building Science;" "Home Technology Integration;" and "Marketing to the Active Adult." For more information on pre-show courses and to register, visit www.buildersshow.com/preshow.
Virtual Tours of The New American Home
One of the biggest highlights of the IBS is always The New American Home, where the most exciting and innovative technologies are on display. This year, a special exhibition called "Vision 2010: The New American Home" will feature a narrated, state-of-the-art virtual tour of the 2010 home, as well as an exhibition of the most innovative products that are a part of this showcase. The virtual tour and product showcase will take the place of on-site tours, since the actual home will not be completed before the IBS begins. Why not? Like many building projects around the country, The New American Home 2010 is a victim of the credit crisis that is hammering our industry. As a result, this will be the first time in 27 years that a physical representation of The New American Home is not on display at the IBS. Read more about what's in store for the home in NBN Online.
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Attention, prospective education seminar speakers:
 NAHB is currently accepting program proposals for speakers at the 2011 International Builders' Show in Orlando, Fla. The deadline for submitting proposals is February 19, 2010. Only online proposals will be accepted. For the 2011 IBS Education Session Proposal General Guidelines, click here. For a list of the 2010 International Builders' Show educational seminars, visit www.buildersshow.com/education. Additionally, if you have any questions or would like to recommend a topic or speaker, please contact NAHB at ibsedu@nahb.org.
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See you in the New Year!
 Heading into the holidays, the Monday Morning Briefing will take a short break, with no editions scheduled for the Mondays following Christmas or New Year's. We'll be back for one more edition prior to the IBS, so look for the next report in your email on January 11. Until then, we wish all our readers a joyous holiday season and the best of luck in 2010!
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