New Phone Regs Are a Wake-Up Call for Business Owners
Packing violation penalties of up to $11,000, new federal Do-Not-Call regulations could reshape companies’ marketing plans.

On June 26, 2003, the Federal Communications Commission (FCC) and Federal Trade Commission (FTC) established a Do-Not-Call (DNC) registry. By mid August, 30 million consumers who don’t want their phones to ring with credit card offers and other solicitations had added their phone numbers to a national database; the FTC expects the registry to contain 60 million numbers by the time it goes into effect. Starting October 1, companies are prohibited from calling phone numbers on the DNC list for five years.

There are a few exemptions:

• Calls made by or on behalf of non-profit organizations or political organizations
• Telephone surveys (provided they don’t turn into solicitations) 
• Calls made to customers to whom a company has sold goods or services in the preceding 18 months
• Calls made to consumers who have filled out an application or made an inquiry of a business in the preceding three months.

Comply, or It’ll Cost You

To comply with the regulations, businesses that do any kind of phone solicitation must periodically buy the DNC list to strip opt-out consumers from their call lists. States have individual DNC lists, too, and they have 18 months to fold them into the national registry. Some state lists will merge with the national list on October 1, but in the meantime business owners must continue to buy local DNC lists from their state’s department of commerce. And individual businesses also have to maintain lists of consumers who ask not to be contacted by their companies.

Prices vary for state DNC lists. The FTC has set fees for businesses to buy the national list at $25 per area code (the first five area codes are free), up to maximum annual fee of $7,375.

That’s peanuts, though, compared to the consequences for violating the federal DNC regulations. Each violation is subject to a penalty of up to $11,000. Yes, eleven grand.
“The [penalty] amount depends on whether a company is a first-time violator or whether they’ve called before and ignored federal, state, or their own DNC lists,” explains Cathy McFarlane of the FTC’s office of public affairs.

Most home building contractors don’t do phone solicitation. However, the DNC regulations are a concern for builders in certain markets and for specialty remodelers who have traditionally used the phone to find prospects.

Marketing Mix Pays Off

Some specialty remodelers are already using alternate marketing methods. “We got away from cold calling years ago,” says Dan Betz, president and CEO of USA Deck in Woodbridge, VA. The company leaves brochures at homes that don’t have decks (it pinpoints them ahead of time with aerial photography), and then knocks on doors or sometimes calls to set up appointments with homeowners who express interest in its deck components.

Likewise, at Case Design/Remodeling, Inc., which has a handyman division, “we do outbound calls only to our client base to keep in touch with them,” says Mark Richardson, president of the Bethesda, MD company. “We have not noticed any effect [from the DNC regulations], but it will be interesting to see how they impact the remodeling community.”

Certainly, the regulations call for using diverse marketing strategies, which makes good business sense no matter what you build or remodel. Direct-mail, radio and television spots, newspaper and magazine ads, newsletters, site and truck signage, a strong Web presence, charity events and home parades  are several effective ways to get your name in front of the public.  E-mail’s a good communication tool for current customers, but don’t use it to farm for prospects or you’ll be considered a spammer. (And besides, federal Do-Not-E-mail legislation is in the pipeline.)

Commercial faxes are a tricky subject and are now governed by FCC regulations of their own.   The FCC is proposing that, after January 1, 2005, businesses be prohibited from sending any unsolicited faxes; that is, “any material advertising the commercial availability or quality of any property, goods, or services which is transmitted to any person without that person's prior express invitation or permission,” as the FCC puts it.  For the time being, the FCC has decided to apply the “existing Business Relationship” exception to faxes as well as telephones.

Be Prepared

“I recommend that any business that uses fax communication develop and implement a written consent form well in advance of 2005,” says Daniel E. Durden, NAHB’s Association Counsel. Durden also recommends that NAHB members contact their attorneys for specific legal advice about complying with the DNC regulations.

The FTC and FCC are currently developing procedures for businesses to order the national DNC list. The Direct Marketing Association maintains an online list of updated state DNC laws and list sources. Be sure to get a copy of your state’s DNC list if you have not already done so. We’re not saying you should consider phone contact taboo, but in the light of regulations that could impact your business, it’s good to do as the Boy Scouts do and be prepared.

If you are interested in reading the FCC’s actual ruling, you can find it at http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-03-208A1.pdf. 

NAHB Remodelors™ Council Events at Remodelers’ Show 2003

Baltimore, birthplace of Babe Ruth, home of the Baltimore Orioles and the legendary blue crab, will host the 2003 Remodelers Show, hosted by Hanley-Wood and sponsored by NAHB and the Remodelors Council from October 23-25.

Make it a point to visit the Remodelors Council booth, #219, on the show floor.

Remodelors™ Council Local Council Workshop
Leading the Industry, Building Your Council
Wednesday, October 22
1:00 p.m. – 5:00 p.m.
FREE workshop for current and future leaders of Local Remodelors Councils. Learn how to succeed as a Remodelors Council chair and vice chair by running effective meetings, growing your membership and creating successful programs.  Leaders from around the country will share information on services and programs that help make their councils successful. A reception with beverages and snacks will follow the workshop. To register call 800-368-5242 x8216 or send an e-mail to remodel@nahb.com by Friday, October 17. Registration is required to attend.

CGR Reception
Wednesday, October 22
Hyatt Regency Baltimore Inner Harbor
300 Light Street
6:30 p.m. – 9:30 p.m.
Registration is required to attend. Registration is free to CGRs and includes one guest.  CGR candidates who have completed PREP may register at the low price of $40.00.  Registration deadline is October 10. For more information or to register contact Barbara Drobins of the Remodelors™ Council via email (bdrobins@nahb.com) or call (800-368-5242 x8217).

NAHB Remodelors™ Council Gala
Friday, October 24
Oriole Park at Camden Yards
6:30 p.m. – 11:00 p.m.
$75 per NAHB Member/ $85 per Non-Member
Join us at Oriole Park at Camden Yards, in a century-old landmark — the B & O Warehouse, for the most prestigious event of the NAHB Remodelors™ Council’s calendar.  The Remodelors™ Council Gala celebrates the achievements of the 2003 Class of the National Remodeling Hall of Fame, 2003 CADRE Award winners, and Remodelor™ of the Year.  A cocktail reception will be followed by an awards presentation, dinner, and dancing. Registration is available at www.remodelersshow.com. [return to top]

Come Early for the Education
NAHB’s University of Housing is offering educational programs as pre-show events for the 2003 Remodelers’ Show. The Remodelers’ Show, produced by Hanley-Wood and sponsored by NAHB and the Remodelors™ Council, will take place October 23-25 at the Baltimore Convention Center in Baltimore, MD. The pre-show education begins on Monday, October 20.

The courses being offered include:

• Train the Trainer (new) 
• Managing a Profitable Family-Owned Business (new) 
• PREP: Your First Step to CGR
• Negotiating Skills 
• On-Site Project Management 
• Estimating for Builders and Remodelers 
• Introduction to Business Management 
• Working with and Marketing to Older Adults (CAPS)
• Home Modifications (CAPS)

The pre-show course schedule and descriptions are available at the Remodelers' Show Web site. Go to www.remodelersshow.com  for course and show registration or for detailed show information. Sign-up for the NAHB courses is available when completing the Show registration.

Education plays a significant role in managing a successful business; keep your business growing by attending the pre-show education courses at the Remodelers’ Show.
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Be An Industry Leader
The Remodelors Council encourages you to become a leader in the remodeling industry by attending the NAHB Fall Board of Directors meeting to be held September 17-21. Committee meetings are open to everyone, and members of the NAHB Remodelors Council are eligible to join several of the Remodelors Council’s Committees including Public Affairs, Membership, and Education and Business Development. 

Go to www.nahb.com to register for the Fall Board Meeting.

Remodelors Council Events at NAHB Fall Board Meeting

Wednesday, September 17
3:30 p.m. – 5:30 p.m.       Remodelors Council Past Chairs Committee

Thursday, September 18
8:00 a.m. – 10:00 a.m.       CGR Board of Governors
8:00 a.m. – 10:00 a.m.       Membership & Council Development Committee
10:30 a.m. – 12:30 p.m.     Education & Business Development Committee
10:30 a.m. – 12:30 p.m.     Public Affairs Committee
1:00 p.m. – 3:00 p.m.         CAPS Working Group
1:00 p.m. – 3:00 p.m.         Remodelor 20 Club Trustees
6:30 p.m. – 10:00 p.m.       Remodelors Night Out ($50 in advance; $60 at the door)

Friday, September 19
7:30 a.m. – 10:30 a.m.      Remodelors Council Board of Trustees
3:00 p.m. – 6:00 p.m.        Remodelors Council General Session [return to top]

Remodelors Night Out for a Good Time
The Remodelors Council will be hosting the Remodelors Night Out during the fall NAHB Board meeting on Thursday, September 18.  Come join your peers at Jillian’s Boston located at 145 Ipswich Street, Boston from 6:30 p.m. to 10:00 p.m.  Tickets are $50 in advance or $60 at the door.  The event tickets include a Texas BBQ Buffet and two drink tickets.  Contact 1-800-368- 5242 x8216 or email remodel@nahb.com to purchase advance tickets.

Event is sponsored by Pella, Dupont-Tyvek, Georgia Pacific, Marvin Window and Doors, Simonton Windows, and CertainTeed.  [return to top]

Survey Aimed at Improving Arbitration Services
Builders and Remodelers who use the American Arbitration Association (AAA) can participate in a survey designed to improve the services of that organization.

At a time when arbitration is becoming an important alternative for resolving disputes, NAHB is working with the National Construction Dispute Resolution Committee (NCDRC) to encourage the use of dispute avoidance and resolution in the construction industry and to help AAA become more responsive to industry needs.

Along with NAHB, there are about 20 other construction industry organizations that are members of NCDRC. The committee is conducting the survey as part of its mission to provide comprehensive guidance to AAA.

Those who use AAA services, along with their attorneys, are strongly encouraged to complete the survey. To participate, click here.
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$5 Million Neighborhood Renovation Pilot for the Purchase & Renovation of Older Homes
In an effort to help first-time home buyers finance and/or renovate one- to four-unit properties in one loan, representatives from Merchants & Manufacturers BanCorp, Lincoln State Bank, CBG Mortgage, Inc., the Lincoln Neighborhood Redevelopment Corp., Time Warner Cable and Fannie Mae (FNM/NYSE), the nation's largest source of financing for home mortgages, today gathered to announce the new $5 million Neighborhood Renovation pilot to make the purchase and renovation of older homes in Milwaukee more accessible and affordable.

Home improvement and housing preservation can be costly, especially for borrowers with limited finances. Created to target Milwaukee's aging housing stock, the Neighborhood Renovation pilot allows borrowers to purchase one- to four-family properties with low down payments and finance the renovations, which may cost up to 50% of the "as completed" value of the property, in a single mortgage.

The Neighborhood Renovation pilot is a joint offering of Lincoln State Bank, the Lincoln Neighborhood Redevelopment Corp., and CBG Mortgage, Inc., which are all subsidiaries of Merchants & Manufacturers BanCorp. Lincoln State Bank and the Lincoln Neighborhood Redevelopment Corp., will originate the mortgage loans and provide homeownership counseling and renovation services, and CBG Mortgage, Inc., will underwrite and service the loans. Fannie Mae has agreed to purchase the eligible mortgage loans.

In addition, Time Warner Cable will provide a grant of $500 for eligible home buyers to use for down payment and/or closing costs. This grant will be available only to low- and moderate-income home buyers and administered by the Lincoln Neighborhood Redevelopment Corp. 

The Neighborhood Renovation pilot is part of Fannie Mae's $2 trillion American Dream Commitment® to increase homeownership rates nationwide to serve 18 million targeted American families by the end of the decade.  For more information on the Neighborhood Renovation pilot, consumers should call the Lincoln Neighborhood Redevelopment Corp. at 414-671-5619.

This was story provided by Fannie Mae. Click here to review the entire press release regarding this pilot program. This pilot program is available only through lenders who sell loans to Fannie Mae.  It’s important for a lender to check with Fannie Mae if they’re not already familiar with the pilot. 
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Home Builders Score Stunning Court Victory on Pygmy Owls
The U.S. Ninth Circuit Court of Appeals recently rejected the U.S. Fish and Wildlife Service's (FWS) rationale for listing the pygmy owls as endangered in Arizona following a multi-year legal battle involving NAHB, the Southern Arizona Home Builders Association and the Home Builders Association of Central Arizona.

In National Association of Home Builders, et al.  v. Norton, appeals court justices unanimously declared on Aug. 19 that the FWS's listing of the owl as endangered under the Endangered Species Act (ESA) was “arbitrary and capricious” and lacked the appropriate scientific data to support it.

By sending the listing back to a lower court, the Ninth Circuit has called into question the status of a proposed critical habitat designation for the bird — a designation which included land use restrictions that could have added as much as $12,000 to the price of a new home in the Tucson area and levied $108 million in costs for Arizonans living in Pima and Pinal Counties over the next 10 years.

The decision has also reinforced a central requirement for endangered species listings affecting builders nationwide: that the FWS must have science as the basis for its decisions, not just speculation.

“The ruling is a wonderful first step toward imposing some rationality in the area of endangered species designation and habitat designation,” said Robert Washburn, an attorney with Flaster/Greenburg PC in Cherry Hill, NJ, and a member of NAHB’s Legal Action Committee. He said the FWS and many state agencies that oversee endangered species “designate well beyond what is reasonable.”

“This decision is a wake up call to the agencies telling them, ‘These are the rules you will have to play by,’ ” Washburn added.

This case marks the first time in more than a decade that any court has ruled against the FWS regarding a species listing, and may be the first decision ever in which an appellate court has called an FWS listing “arbitrary.”

To read the court’s opinion, click here. For more information, read the NAHB press release or contact Tom Ward at 800-368-5242 x8230. [return to top]

Have Your Words Heard
The NAHB Remodelors™ Council has been provided the opportunity to submit articles to NAHB’s weekly online newsletter, NBN Online.  NBN Online is distributed to all of NAHB’s membership, over 100,000 members.  This is your chance to share your industry wisdom.  Topics should be related to remodeler and small business issues; articles are 400 words in length and include a byline and with your photo.  If you are interested in being published, please contact NAHB Remodelors Council staff at 800-368-5242 x8216 or email remodel@nahb.com.  [return to top]

Benchmark 2003 in New Orleans

More information can be found at the official Web site or call/e-mail Michael Peterman at 630-288-8186.

IPRO/Strategic Partners
The Remodelors Council thanks the 2003 IPRO/Strategic Partners.  Show your appreciation for their support by visiting their Web sites. It’s just a click away!

Platinum

Pella Corporation continues its tradition of support of the Remodelors Council as the first Platinum Level Strategic Partner under the new sponsorship program. Pella Corporation is one of the world’s leading manufacturers of premium-quality windows and doors. Pella offers a full range of residential and commercial products under three distinct product lines — Architect Series, Designer Series and ProLine. Pella’s Precision Fit windows are high-quality wood replacement windows. Extensive information about the company and its products is available at www.Pella.com.

Gold

DuPont Tyvek Weatherization Systems make homes and commercial buildings more comfortable, more energy efficient and protect them from water damage. You wouldn’t think about building without insulation in your walls. You shouldn’t think about building without the world’s leading housewrap — Tyvek HomeWrap. Tyvek helps protect against air infiltration, manages moisture vapor, and protects the wall when rain and water get behind vinyl siding, wood siding, brick or stucco. Find out more at www.tyvek.com.

Georgia-Pacific is one of the world's leading manufacturers of tissue, pulp, paper, packaging, building products and related chemicals. GP's building products include plywood, oriented strand board, gypsum wallboard and related installation materials, lumber, particleboard, medium density fiberboard, hardboard and related chemicals. For more information visit the Web site at www.gp.com.

Marvin Windows and Doors is the original and only made-to-order company. The company's wood and clad wood windows and doors go through a meticulous process that starts with the best wood, greater care and thorough handcrafting, until your project is complete. Information on Marvin products, installation instructions, case studies, a virtual tour of the factory and much more are available at www.marvin.com.

For more than 50 years, Simonton has grown from a small local fabricator to one of the nation’s largest manufacturers of vinyl replacement and new construction windows and patio doors. Our superior products, commitment to quality and outstanding customer service have made us one of the best vinyl window and patio door manufacturers in the nation. Learn about Simonton’s rich history, product offerings and company news visit their Web site at www.simonton.com.

Silver

CertainTeed is the leading manufacturer of: insulation, vinyl siding, vinyl windows, roofing, fence, decking, railing, PVC pipe, foundations and ventilation building materials. CertainTeed Corporation is a manufacturer of exterior building materials for new construction and home remodeling needs. Products included; insulation, vinyl windows, vinyl siding, roofing, PVC pipe, fencing, decking, railing, attic ventilation and foundation systems. Visit the Web site at www.certainteed.com.

Bronze

EnerBank USA provides excellence in customer loan programs for providers of
home improvement and remodeling products and services.  Customers may apply
by phone for unsecured installment loans from $1,000 to $25,000. Contractors benefit from the paperless application and loan closing process, credit decisions in about 10 minutes, and immediate payment for completed work.  Loans and private label loan programs available in all 50 states and the District of Columbia.  For more infromation call 888-721-2100.

Frank-Lynn the leading market strategy consulting firm in the residential and commercial new construction and repair/remodel markets. For 30 years, we have worked with manufacturers and distributors to efficiently and effectively market their products and achieve profitable growth. Visit the Frank-Lynn web site at www.franklynn.com

McGraw-Hill Construction delivers the pulse of the construction industry. From market analysis and forecasting to industry trends and insights, we keep you ahead of the competition with publications such as Dodge, Sweets, Architectural Record, and ENR. Visit the McGraw-Hill Construction Web site at www.construction.com to find building codes, industry resources, and online catalogs.

Special Internet Partner

Homestore.com is a leading supplier of media and technology solutions that promote and connect Real Estate Professionals to consumers before, during and after a move. At the heart of the company is the Homestore® Network, the largest and most comprehensive family of Web sites devoted exclusively to home and real estate-related content. Collectively, these sites attract the largest online audience of home consumers. Homestore offers visitors a convenient, one-stop source for Everything Home on the Internet® including the most comprehensive online database of property listings and real estate service providers, virtual tours, photos, resources, advice, decision support tools, and much more. [return to top]

NAHB's 2003 National Conference on Membership
The 2003 National Conference on Membership will be held November 8-9 in Phoenix, AZ at the Pointe Hilton Squaw Peak Resort. You'll gain tips and techniques on strengthening your membership efforts from state and local association colleagues and a first-rate team of speakers.
 
Join nationally-known membership expert, Mark Levin, as he leads two programs on Millennium Membership and new strategies for Membership Development. Other programs include Member Benefits and Non-Dues Revenue; Enhancing the Local and State Membership Relationship; Retention Marketing; and the pre-conference seminar, Secrets & Strategies to Building Membership Loyalty.
 
Additional information and registration is available online or by calling 800-368-5242 x8338. [return to top]

Tap into the lucrative and growing Mexican Housing Market
Attend NAHB’s 1st International Housing Conference of the Americas in Mexico City, October 16-18. Meet and network with Mexico’s housing professionals looking to establish contacts with U.S. builders and suppliers.  Register on-line through www.nahb.org  or call for more information at 202-266-8419.  Don’t miss this important opportunity!  
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Member Advantage: save up to 69% with Viking Office Products
NAHB and Viking office products are working together to bring members more than just low prices.  Advantages include fast overnight delivery, same-day delivery in major cities nationwide, savings up to 69% from manufacturers' list price, free delivery on orders as small as $25 (continental U.S. only), one-year guarantee on everything, complete delivery (virtually no backorders) and friendly, courteous, helpful people. 

Call 800-421-1222 and mention code "HB" for the standard 10% member discount. 
To order online and for details on more than a dozen other money-saving Member Advantage discount programs click here.

Go to www.nahb.org to explore the numerous advantages associated with membership in your local, state and national home builders association.