2007 BSC Chairman Bill Dudley, Carolina Model Home Corporation/Regal Industries has resigned as Chairman of the BSC.  Rob Cantrell, President, StoneMill Log Homes has stepped in to fill the position.   Cantrell is the current President of the Log Homes Council and previously held the position of BSC Co-Vice Chairman with Gary Grossman, Forest Homes.  Grossman will continue as the BSC Vice-Chairman and will be the BSC Chairman in 2008. 

Michael Weber, Director of Residential Programs, Portland Cement Association is the second Vice-Chairman.  Weber will be Chairman in 2009. 

Fore more information on the leadership of the BSC, please contact Jeremy Bertrand at Jbertrand@nahb.com or call 800-368-5242 x8353.

It’s also worth noting that the unique nature of the current boom-bust housing cycle pretty much rules out strong forces that traditionally have lifted housing production briskly out of cyclical troughs.

These forces usually have included large declines in the interest rate structure, including aggressive monetary ease by our central bank, and strong growth in payroll employment as the economy gets into an expansion mode.

We’re expecting a supportive interest rate structure and decent job growth this time through, but the absence of the traditional strong growth engines will help keep housing production below the trend level for several years beyond the trough.                                                                   

  [return to top]

Building Systems Councils Active in Green Building Standard Development

In preparation for their next meeting in July, members of the consensus committee that are drafting a new residential green building standard are continuing their work via conference call to propose changes and discuss the components of the new document.  For the past month and a half, the BSC has been participating in various conference calls to better understand the process and ensure that systems-built homes are properly represented. 

NAHB announced in February that it is drafting the standard in cooperation with the International Code Council (ICC). The NAHB Research Center (NAHB RC), an accredited standards developer is administering the process using the protocol established by the American National Standards Institute (ANSI).

The standard will cover all residential construction, including single-family, multifamily and remodeling, as well as residential land development. It is expected to be completed in time for the 2008 International Builders’ Show in Orlando next February.

The committee’s seven task groups have been charged with studying the components of the NAHB Model Green Home Building Guidelines — the foundation document for the new standard — to decide what can be incorporated, what needs to be changed and what new material needs to be added.

Although the task forces continue their work, the full committee, which is required for all decisions, has yet to make anything final. Task force proposals will be discussed at the July meeting and then released for formal public comment through the remaining summer months.  Like all full committee meetings, the July meeting is open to the public.

The BSC has been working under the premise of two overarching goals: 

1.       Ensure systems-built homes are properly represented in the standard for their green qualities of construction.

2.       As the standard is developed, the BSC will work to inform the full BSC membership how they can "go green."

With the Spring Board meetings last week, the BSC now as an official Green Building Task Group made up of a representative from each manufacturer sub-council. 

To follow the standard’s progress, read background information and see a timeline, visit www.nahbrc.com/gbstandard. 

For more information on the BSC’s involvement in the standard, e-mail Jeremy Bertrand, or call him at 800-368-5242 x8353.

Bid to Require Fire Sprinklers Defeated at Code Hearings

Fire Sprinklers will remain optional under the International Residential Code (IRC) for all single-family homes, thanks to the help of NAHB members and building code officials who turned out at the International Codes Council (ICC) Final Action Hearings in Rochester. The vote, which needed a two-thirds majority to pass, received only 56 percent of the votes cast supporting the measure.

In light of the improved safety features of new construction, the high costs of sprinkler installation and maintenance, numerous questions about the systems themselves that still need to be addressed, and the demonstrated effectiveness of smoke alarms for saving lives, advocates for mandated sprinklers were unable to get the votes necessary to overturn an earlier ICC decision to keep sprinklers out of the main body of the residential code. This is a significant win for housing affordability and consumer choice in home safety decisions.

Had efforts been unsuccessful at the Rochester code hearings, fire sprinklers would have been required in all new one- and two-family homes and townhouses wherever the IRC was adopted – something that would raise the cost of building a typical single-family home by as much as $6 per square foot or more and raise the threshold for homeownership significantly. With this decision, fire sprinklers will remain in the appendix of the IRC, where local jurisdictions can still adopt them if they so choose, and certainly home buyers will always have the option of choosing to have fire sprinklers installed in their new homes, as is appropriate.  

While the battle to maintain fire sprinklers as optional rather than mandated equipment in new homes can be expected to continue in subsequent code development cycles, that does not diminish the great accomplishment that our members and staff achieved in explaining our concerns about mandates to building code officials so that they could understand the many questions and potential problems surrounding this issue. Ultimately, their input convinced voting code officials to make the most appropriate and balanced decision on fire sprinklers. Going forward, those who helped with our campaign are strongly encouraged to build upon the good working relationships that they developed with code officials through this effort, so that NAHB can keep the channels of communication open and foster even greater understanding among all parties involved in the code development process. 

For more information, contact Jeffrey Inks in the NAHB Codes & Standards department or dial 800-368-5242 x8547.

NAHB Launches Grassroots Program

NAHB launched BuilderLink, its updated national grassroots program, on Wednesday, June 6 during the 2007 Legislative Conference and NAHB Spring Board of Directors meeting in Washington, D.C.  

BuilderLink replaces the Congressional Contacts program as NAHB’s national grassroots mobilization program for key federal housing issues in Congress.  This change comes after a comprehensive assessment of the Congressional Contacts program identified needed improvements to the overall structure and functionality of the program. Following the assessment, NAHB developed a three-year grassroots strategy aimed at increasing the program’s effectiveness and expanding participation.  BuilderLink will reach beyond the relatively small pool of NAHB members who enrolled in the Congressional Contacts program and consistently engage key NAHB leadership, members and staff in grassroots activities. 

More than a new name and a fresh look, BuilderLink will do more to educate NAHB members about the issues that matter most to the housing industry, connect them to the Members of Congress who oversee these issues, and provide NAHB members with the materials and resources they need to convey the right message to Congress at the right time. 

This year, the focus will be on the roll-out and marketing of BuilderLink.  Efforts are also underway to integrate the new program into state and local builders associations, in part by piloting grassroots activities in several key locations across the country. 

For more information, click here, or contact Molly Murray at NAHB at 800-368-5242 x8470.

  [return to top]

The house was framed in early May and is coming along very well. The house itself is a 1,042 square foot raised ranch design. 

Supplies still needed include; interior doors, moulding, drywall, stair railings, lock sets, cabinetry and monetary donations. 

Thank you to all those BSC companies and others who have donated supplies, including; Penn Lyon Homes, Shaw, Whirlpool, Norandex, Kuhns Bros. Log Homes, New Era Building Systems, Senco, LaSalle Bristol, Forest Homes, Phillips Industries and Deltec Homes. 

If you are interested in learning more about this worthy cause please contact Henry Walthery at Forest Homes at 570-374-0131, or e-mail hwalthery@foresthomes.com. 

To contact the Union/Snyder County Habitat for Humanity, visit www.ushfh.org, or call 888-995-4387. 

  [return to top]

All proceeds for the cookbook go to the National Cancer Awareness Foundation, a nonprofit, totally volunteer organization that gives 100% of all the money it raises to families in need.

The Log Homes Council is putting the money they raised on "Cooking for a Cure’ to good use.  The Council has already donated monies to two families who have been afflicted by Cancer. If you are aware of any friends or family of the systems-built industry afflicted with Cancer, please share their information with the BSC staff so that a grant can be provided to their family.

'Cookin' for a Cure' Sells for $14.50, Plus $4.05 shipping.

To download an order form please visit www.loghomes.org.  For questions, call Jerry Rouleau at 860-589-7391. 

  [return to top]

The increase followed downward revision to the sales rate for the previous month, and the sales pace remained below the 1 million-unit pace for the fourth consecutive month.

"Builders are pulling out all stops to work down heavy inventories in the face of weak demand that's been exacerbated by the subprime-related tightening of mortgage credit conditions," said Brian Catalde, president of the National Association of Home Builders (NAHB) and a home builder from El Segundo, Calif. "Our surveys show that the majority of builders are cutting prices and offering substantial non-price sales incentives, and their efforts are bearing fruit."

"We are also seeing buyers gravitate toward lower-priced homes to counter their affordability problems," Catalde said.

"We're viewing the large jump in new-home sales for April with a lot of caution, in view of the large month-to-month volatility historically displayed by these statistics," said NAHB Chief Economist David Seiders. "In addition, the April bulge may very well have reflected favorable weather swings, particularly in the South region. It also appears that the aggressive sales techniques being employed by builders are now showing some success, despite the subprime-related difficulties in the mortgage market."

"The first quarter may well have marked the low point for sales volume in the dramatic housing correction that began in the latter part of 2005. We are currently looking for a gradual recovery process going forward, at least on a quarterly basis," Seiders said. 

The inventory of new homes for sale edged down in April to 538,000 units, equivalent to a 6.5 months' supply at the April sales pace and down from 8.1 months in March. Completed homes for sale were 33% of the inventory, while units still under construction represented 51% of the inventory and units for-sale that were permitted but not yet started represented almost 16% of the inventory level. The median length of time that completed homes were on the market was 6.0 months in April.

Regionally, new-home sales were up 27.8% in the South, 3.8% in the Northeast and 8.5% in the West for the month. Sales were down by 4.0% in the Midwest.

More information regarding housing statistics is also available at www.housingeconomics.com. 

  [return to top]

Tour Stops Included:

• West Window Corporation
• Nationwide Custom Homes
• American Standard Building Systems                
• Mod-U-Kraf
• Timber Truss Housing
• Metwood Building Solutions
• Martinsville Speedway

Sponsors Included:

• hsbCAD
• American Home Bank/Modular Total Control
• Home Buyer Publications
• Hurd Windows and Doors
• M&T Bank
• Merillat
• Power Marketing & Advertising
• Residential Warranty Corporation
• Sea Gull Lighting
• West Window Corporation

  [return to top]

Tour stops Included:

• Molin Concrete Products.
• Schwing America
• Becker Architectural Concrete
• Cemstone
• Holcim
• Anchor Block                                                                     

Sponsors Included:

• Portland Cement Association 
• North Central Cement Council 
• National Concrete Masonry Association
• Western Forms
• Holcim US Inc.
• Schwing America Inc.
• Anchor Block Company
• Reward Walls Systems
• Superior Walls
• Hanley Wood
• Permanent Buildings and Foundations
• Besser Company

The 2008 Concrete Technologies Tour will be held in Charlotte, N.C.  For more information on the tour, visit: www.nahb.org/concretetour.

  [return to top]

By using the latest Internet technology of RSS feeds (Really Simple Syndication); BuilderRadio.Com provides industry professionals with practical perspectives on key housing sales and marketing issues. The service is a podcast media file that is distributed by subscription (paid or unpaid) over the Internet using syndication feeds for playback on mobile devices and personal computers.

Short 6- to 8-minute podcasts produced by BuilderRadio.com are posted bi-weekly on a variety of current and timely topics, and are designed so that listeners can download the short excerpts right to their computer, CD, mp3 player or iPod. Hear what the pros have to say on your schedule without having to leave your office. Use the podcast to make your drive time more effective, or learn at home or while at the gym.

The free podcasts are excerpts from a program titled “Experts on the Issues,” in which housing experts are interviewed about such issues as sales, marketing and management.

"Expert on the Issues" is a one-hour audio subscription program that subscribers receive monthly. Jerry Rouleau, founder of BuilderRadio.com and "Experts on the Issues" said, “housing sales professionals can now learn from some of the best experts in the industry without having to travel and all the related expenses. The podcast and the subscription programs are great tools for your next sale meeting. Sales people no longer have an excuse, because learning can be done on their schedule."

Some of the topics that will be featured in the series "Expert on the Issues" and podcasts include: Design Trends, Marketing Tips, Effective Websites, Public Relations Ideas, Lead Management Systems, Advertising Tips, Generating Traffic to Your Model Home, Home Show Selling, Screening & Qualifying Leads, Model Merchandising and dozens of other topics geared for selling new home professionals.

Access to the free podcast and subscription information for Expert on the Issues can be found at www.BuilderRadio.com or iTunes.

  [return to top]

"Remodeling continues to show strength despite the housing slowdown," said NAHB Remodelers Chairman Mike Nagel, CGR, CAPS, a home remodeler from Chicago. "With more than 120 million homes in the United States plus $11 trillion in owner equity, the demand for remodeling will be there now and in the future." Remodeling currently accounts for more than 40 percent of the home construction industry by dollar volume.

"Quite simply, we're adding more homes each year than we're tearing down, and these will eventually require remodeling," said NAHB Chief Economist David Seiders. "Compared to other components of the housing industry, remodeling remains one of the few areas to show growth, at least in nominal terms."

Driving the remodeling market are the size and characteristics of the housing stock. With an average age of 33 years and rising, older homes require more remodeling — both in terms of upgrading features to compete with new construction as well as maintaining their physical quality. Though remodeling is somewhat cyclical with new construction, homeowners cannot put off a major repair like a leaky roof as they can discretionary upgrades, and that stabilizes the industry during slower housing markets.

  [return to top]

Almost 450 local associations phoned in a record-setting number new member pledges during NAHB’s 2007 National Membership Day on May 22. At the end of the month, the final tally was just 3 members shy of 13,000 new members.

This year’s total was 35% higher than last year, the previous Membership Day record.  

“I know some people are surprised by the big jump in our numbers this year, but I’m not,” said Keith Butz, a builder member from Des Moines, Iowa who attended the telethon and Webcast at NAHB. “The networking and benefits membership offers are especially valuable when buyers are being more scrupulous and builders are being more cost-conscious. It’s times like this when we need membership the most and these numbers prove it.”

New Member Breakdown

The breakdown of new members recruited included:

11,619 builder and associate members

1,308 affiliate members

In addition to the almost 13,000 new members are the estimated 1,200 council members joining the National Sales and Marketing Council, the Women’s Council, NAHB Remodelers members and the 50+Housing Council.

Whirlpool, NAHB’s exclusive membership sponsor, awarded the top prizes to the day’s most successful recruiters. In addition, several NAHB Member Advantage companies gave prizes to winners of the Biker Alley Trivia contest broadcast throughout the National Membership Day Webcast.

The 2007 National Membership Day Webcast archive is available at www.nahb.org/MembershipDay beginning Wednesday, May 30.

  [return to top]

Take advantage of the free savings analysis to see in writing how this program could cut your monthly costs and streamline your billing process. This tool consistently uncovers savings for two out of three businesses, finding average projected savings of 17%.  To receive your free customized savings analysis, call 800-613-0148 or visit www.nahb.org/ma. 

  [return to top]

  [return to top]