Record Crowds Pack Building for Boomers & Beyond 2004 In Chicago
Close to 800 attendees crowded the Hyatt Regency Chicago — the largest turnout in the event's four-year history. In fact, this year's Seniors Housing Symposium was one of NAHB's most successful conferences ever, featuring standing-room-only audiences at many education sessions, two sold-out community bus tours, and plenty of buzz on the exhibit floor. The NAHB Seniors Housing Council thanks you for making 2004 our biggest and best year yet.

Attendees found out about the latest industry trends from experts like architect Bill Feinberg of Feinberg & Associates, P.C. Feinberg's preliminary research on the nexers — a segment of 30 million boomers who will impact the housing industry in the coming decades — challenged the notion of what this new generation of buyers wants in their homes and communities. 

To get the nexers attention, Feinberg suggested to builders that they come up with innovative marketing approaches devoid of words like retirement or senior; offer a completely different format than traditional active adult communities; and build in diversity, creating neighborhoods with residents of mixed ages, from different stages of life, and from different backgrounds. Check out this Nation's Building News article for more specifics.

If you missed “Building for the Nexers: Research Trends, Marketing, and Sales” and other Symposium sessions, you can purchase them on CD or tape. You also can buy a compendium with notes from the various sessions for $25. E-mail Crystal Hines or call 800-368-5242 x8113 to order your copy.

Remember to circle May 16-18, 2005, on your calendar. Those are the dates for Building for Boomers & Beyond: Seniors Housing Symposium 2005 in the Washington, DC, metropolitan area (Chantilly, VA). If you've got a great idea for a program or would like to be a speaker, the Seniors Housing Council is accepting requests for proposals through Friday, June 11.

Axelrod Headlines 2004 Icons Of The Industry Inductees
The Seniors Housing Council announced its 2004 Icons of the Industry Award winners during Building for Boomers & Beyond: Seniors Housing Symposium 2004 in Chicago. The Icons winners were honored for their leadership in developing communities, products, and educational services targeted specifically to the growing 50+ housing market.

Myril Axelrod of New York, NY-based Marketing Directions Associates was awarded the Council's inaugural Lifetime Achievement Award. Axelrod, a pioneer in qualitative research, has been involved in the building industry since the 1970s and is credited for helping builders to better understand their senior consumers. A longtime member of the Seniors Housing Council, Axelrod wrote and taught a marketing course for seniors housing professionals, served as editorial board chair for Seniors' Housing News, and served as editor of the book The Best of Seniors' Housing News.

Other Icons winners were Richard J. Brown of Cambridge Homes, Libertyville, IL, active adult builder/developer; William E. (Bill) Colson, Colson & Colson Construction, Salem, OR, service-enriched builder/developer; Victor Regnier, FAIA, University of Southern California, Los Angeles, educator; and Middlefield, OH-based KraftMaid Cabinetry, product manufacturer.

Find out more about the 2004 Icons winners as well as the Icons selection criteria. To nominate an individual or company for an Icons award, e-mail Leslie Marks or call her at 800-368-5242 x8235. [return to top]

NAHB Soliciting Information From Members To Solve General Liability Insurance Problems
In an unprecedented effort, NAHB is soliciting information from its members to help remedy problems with general liability insurance (GLI). This has become a critical issue for the home building industry, with a growing number of builders having trouble getting adequate coverage or paying too much in premiums.

In many parts of the country, builders have seen GLI premiums increase 10-fold over the last three years, while numerous exclusions have severely diminished the protections afforded by these policies. In some places, even obtaining GLI coverage has become all but impossible.

“Our members have made it clear that they want the NAHB federation to do something about this serious problem,” said NAHB President Bobby Rayburn. “In fact, builders responding to NAHB’s Critical Issues Survey consistently rank GLI as their greatest concern.”

A task force formed in 2003 found that it might be possible to bring new GLI products to the market that would solve the members’ GLI problem. The task force interviewed three prominent insurance brokerage and consulting firms and determined that Marsh USA was best suited to meet the home building industry’s needs.

Marsh, a global leader in risk and insurance services, has a consistent track record of creating innovative solutions for industries such as pharmaceuticals and the medical industry. NAHB’s GLI Task Force and Marsh have developed a plan to address the home building industry’s GLI crisis.

The Marsh-NAHB plan seeks to achieve three primary objectives:

1. An accurate national picture of the loss experiences of the residential construction industry.
2. New insurance products that will give builders access to lower cost GLI with better coverage and broader availability. These products may be available as early as mid-January 2005.
3. A structure that allows local insurance agents to sell any new GLI products and that enables NAHB and its state and local affiliates to participate in revenues generated by these new products.

The plan's first step is to gather data from NAHB builder, remodeler, and subcontractor members. Marsh needs information about the frequency and severity of losses — how many losses builders have experienced and how much they have cost. Marsh will develop a database of about 4,000 builder, remodeler, and subcontractor members, with information such as number of units produced, annual revenue, and insurance coverage information for the past five years. The information gathered by Marsh will be held in strict confidence and will not be available to NAHB members or staff.

Participating members will complete a survey about their business and their loss experience. They also will need to send a letter to their insurance carrier granting permission to share loss-run information with Marsh. NAHB and Marsh need to complete this data-gathering effort by July 15.

“The success of this initiative hinges on the quality and quantity of data that builders, remodelers and subcontractors provide to Marsh,” Rayburn said. “The better the data and the more builders involved, the better the products we will see when this process is completed.”

Marsh will use the data to conduct an extensive analysis of the risk management needs of the home building industry and then develop new insurance products.

“There is a strong potential for NAHB and its affiliates to enjoy significant revenue from these products,” Rayburn said. “Any revenue that comes from this initiative will be shared by NAHB and its affiliate associations.”

Check out a copy of the GLI survey and consent letter, or call the NAHB Member Service Center at 800-368-5242 x8600. If you have specific questions about the data collection initiative, contact Brett Diggs at 800-368-5242 x8453 or Clayton Traylor at x8490. [return to top]

Surf The Web To Speedier Zoning And Project Approvals
Tired of battling your zoning and planning board to get your active adult or seniors community approved? The Seniors Housing Council has the solution to your problems — Approving Seniors Housing: Facts That Matter. This publication, now available online through BuilderBooks.com, was created to educate zoning and planning officials and to speed up the approval process. It also dispels many of the myths about active adult housing held by well-meaning officials and conscientious citizens, who may be concerned about the impact of active adult housing on their community.

Approving Seniors Housing is packed with facts, statistics, and charts that illustrate that residents of an active adult community don't strain the surrounding community's infrastructure. The publication examines key issues such as schools, planning for road improvements, parking standards, public safety services, water and sewer services, and public parks and libraries.

The final chapter touches on the economic benefits of building an active adult community. Case in point: building 100 single-family homes in an typical active adult community generates $3 million in local income, $504,000 in taxes and revenue for local governments, and 67 new jobs. That's the kind of data that will give you leverage when facing your zoning and planning boards.

SHC member Ed Hord, FAIA, an architect with Hord, Coplan Macht, LLC, used one of the chapters last year to win approval of a 100-unit assisted living facility in Baltimore, MD. "Sharing these statistics with communities and land-use authorities can shave months off the approval process and reduce expenses," Hord said. "Recently, a developer we're working with used the Council's water consumption figures to negotiate lower impact fees."

Approving Seniors Housing can be purchased via Digital Delivery through BuilderBooks.com. Check out the brief description and buy your copy online today.  [return to top]

NAHB Helps Members Battle Rising Material Costs
With the spring building season entering into full swing, soaring material prices — particularly for oriented strand board (OSB), plywood, framing lumber, and metals — are cutting deeply into the profit margins of many producers, builders, contractors, and remodelors, forcing them to pay the difference or pass on the costs to consumers.

Collectively, the increases in wholesale wood and metal prices over the past year could add about $5,000 to $7,000 to the cost of building an average-sized home, according to data compiled by NAHB economists.

Random Lengths, a trade publication based in Eugene, OR, reports that prices of both OSB and plywood hit an all-time high for the week ending April 16. A 4x8 sheet of 7/16-inch OSB board cost $16.58 and a 4x8 sheet of 15/32-inch 3-ply southern westside plywood sold for $16.80. OSB and plywood prices have each skyrocketed more than 100% since last year. Meanwhile, Random Lengths reports that framing lumber prices are at their highest level since July of 1999, and now stand at $439 per 1,000 board feet.

A recent builders survey found few, if any, cases of outright shortages. But more builders reported higher costs for more materials than in similar NAHB surveys conducted in recent years. Read the full NBN Online story for more details.

Protect Your Business With An Escalation Clause

To combat sharp price increases, NAHB has prepared for its members a new escalation clause for sales contracts that can be adapted for any number of materials that a company may want to include. An escalation clause can help protect builders from the adverse consequences of price spikes, especially for materials with volatile markets or where there are indications of possible shortages. Read the full announcement from NAHB to learn how to best implement this escalation clause and safeguard your business' profits. [return to top]

NAHB Adopts Policy To Provide FHA Insurance For Age-Restricted Housing
At the recent Spring Board of Directors meeting, NAHB adopted policy that urges the Department of Housing and Urban Development (HUD) to provide FHA insurance under the Sections 221(d)(4), 221(d)(3), and 223(f) programs to properties that are intended to provide multifamily rental housing exclusively for older persons. NAHB members learned that HUD is refusing to provide FHA insurance for multifamily rental developments for older persons, if the property prohibits children. HUD states that its long-standing policy is to deny FHA insurance for properties that discrimate against children.

The Fair Housing Amendments Act of 1988 and the Housing for Older Persons Act of 1995 (HOPA) explicitly provide an exemption to the prohibition against discrimination based on familial status for housing intended for older persons. The Fair Housing Amendments Act of 1988 defines "housing for older persons" as housing that is: a) provided under any state or federal program that the {HUD} secretary determines is specifically designed and operated to assist elderly persons; b) intended for, and solely occupied by, persons 62 years or older; or c) intended and operated for occupancy by persons 55 and older, and at least 80% of the occupied units are occupied by at least one person who is 55 or older.

HUD's policy is not based on statutory or regulatory requirements and applicants for FHA insurance will not find the policy in writing. In fact, several NAHB members weren't told about the policy until they were preparing to close their FHA loans. Although HUD provided waivers for those projects, it made it clear that it will no longer grant such waivers.

HUD's policy makes it more difficult and costly for owners to finance affordable seniors-only housing. Many projects are financed with Low Income Housing Tax Credits, which must be obtained on a competitive basis. Because the provision that elderly housing is a priority, many states award more points to developers who promise to provide housing restricted to elderly occupants. Securing FHA insurance ensures lower long-term financing costs, which makes housing more affordable to residents.

In addition, some localities provide special zoning districts for developing seniors communities. To obtain building approvals, owners must restrict occupancy to persons ages 55 or older, which is permitted by the Fair Housing Amendments Act. In such communities, developers will be unable to use FHA insurance, depriving communities of needed affordable housing.

NAHB concluded that HUD's current policy prevents many seniors from living in affordable properties for older persons only, impedes the production of affordable housing for seniors, and circumvents Congress' intent to ensure that older persons have a right to live in age-restricted housing. Unless HUD changes its policy, NAHB will urge Congress to direct HUD to provide FHA insurance to age-restricted housing intended solely for older persons, as provided for under the Fair Housing Amendments Act of 1988 and HOPA.

"HUD's policy could have a significant impact on the ability of builders to do business in the area of housing for older persons," said Sheila Salmon, a senior attorney with Washington, DC-based Coan & Lyons and a chair of the NAHB Seniors Housing Council's Advocacy Committee. "The result could be a significant reduction in the amount of affordable housing available to many older Americans."

For more information on NAHB's policy, e-mail Claudia Kedda or call her at 800-368-5242 x8352. [return to top]

SHC Members Accept BUILD-PAC's Council Challenge
Seniors Housing Council members stepped up to the plate at Building for Boomers & Beyond in Chicago by joining NAHB's BUILD-PAC Council Challenge. The Council registered five new Gold Keys who pledged their support to BUILD-PAC, NAHB's political action committee. BUILD-PAC works to elect the most qualified pro-housing, pro-business candidates to federal office. In the 2001-02 election cycle, 97% of all candidates supported by BUILD-PAC were elected. These members of Congress are working in the 108th Congress to cut government regulations, reduce taxes, and keep the American dream of homeownership alive.

By donating to BUILD-PAC, SHC members are directly helping the Council. If the Council raises $35,000 in 2004, it will receive a voting member appointed to the BUILD-PAC Board of Trustees and play a direct role in determining which candidates receive BUILD-PAC support. By backing BUILD-PAC, SHC members can ensure that they are represented on advocacy issues pertaining to the seniors housing industry.

E-mail Bhavna Bandit or call her at 800-368-5242 x8259 to make a donation. Or check out the BUILD-PAC brochure for more details. [return to top]

How Do You Define An Active Adult Community?
The National Investment Center for the Senior Care Industries (NIC), the American Seniors Housing Association (AHSA), and other seniors housing associations recently endorsed a set of standardized industry classifications. According to NIC, ASHA, and other organizations, active adult communities refer to for-sale single-family homes, townhomes, cluster homes, mobile homes, and condominiums with no specialized services, restricted to adults at least 55 years of age or older. Rental housing was excluded from this category.

Active adult communities also include the following characteristics:

• Residents usually lead independent lifestyles.
• Projects are not equipped to provide increased care as residents age.
• Communities may include amenities such as a clubhouse, golf course, and recreational spaces.
• Outdoor maintenance is normally included in the monthly homeowner's association or condo fee.

In addition, the organizations endorsed definitions for senior apartments, independent living communities, assisted living residences, nursing homes, and CCRCs.  Check out the press release as well as the complete set of definitions.

The Seniors Housing Council will release its own set of SHC-approved definitions later this summer. We'll keep you posted! [return to top]

Member Advantage: Liberty Mutual Saves NAHB Members Up to $327.96 A Year
NAHB members can save up to $327.96 or more a year on auto and home insurance with Group Savings Plus®* from Liberty Mutual. A new addition to the 2004 HBA Member Advantage Program, Liberty Mutual Group is a diversified worldwide insurance service organization with a common mission of  “helping people live safer, more secure lives.”

With Group Savings Plus®, members can receive an exclusive group discount*. Additional savings are based on the insured's age, driving experience, and auto equipment (such as anti-lock brakes and airbags). Rates are guaranteed for 12 months, not six.

Liberty Mutual offers convenient payment plans, including electronic funds transfer (EFT) with no down payment, and is known for its round-the-clock claims service and 24-Hour Emergency Roadside Assistance**.

For Liberty Mutual's brand of personalized service and exclusive group discounts, HBA members should call 800-341-5247 for a free coverage evaluation and no-obligation rate quote. Or receive a quote online at www.libertymutual.com/lm/nahb.

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

*Average savings based on data compiled as of March 1, 2000. Discounts vary by state. 

** Service applies to auto policyholders and is provided by Cross Country Motor Club of Boston, Inc., Boston, MA, or through Cross Country Motor Club of California, Inc., Boston, MA.

Coverage provided by and underwritten by Liberty Mutual Insurance Company and its affiliates, 175 Berkeley Street, Boston, MA. [return to top]

Got An Idea? Contact Seniors Housing e/Source
Have an interesting topic for an upcoming issue of Seniors Housing e/Source? Please send us company news, interesting articles, or tell us what you'd like to see in your monthly newsletter. Feel free to contact me:

Seniors' Housing e/Source

c/o Jeff Jenkins

NAHB Seniors Housing Council

1201 15th St., NW

Washington, DC 20005-2800

jjenkins@nahb.com

800-368-5242 x8292

202-266-8195 (fax) [return to top]