National Association of Home Builders
Document Sample
National Association of Home Builders
2009 ANNUAL REPORT TO MEMBERS
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To our builders, associates and stakeholders:
For the National Association of Home Builders, 2009 was a year of extremes, a
year of extraordinary challenges and outstanding achievements.
Although the market was beginning to show signs of emerging from a devastating
recession, housing starts and new home sales dropped to record lows last year
while foreclosures rose to record highs. And other indicators of market strength,
including the NAHB/Wells Fargo Housing Market Index, which measures builder sentiment, were
equally poor.
Yet despite these unprecedented market conditions – and against almost impossible odds – NAHB
secured landmark legislation to stimulate new home construction and provide tax relief to members.
And we didn’t just do it once; we did it twice. That would be an extraordinary accomplishment
under any circumstances. But it is all the more remarkable in an environment where countless other
industries were seeking relief from the effects of the worst economic recession in living memory.
Our entire federation – from the grassroots to the national leadership – mobilized early in the year to
convince Congress to enact a tax credit for first-time home buyers to stimulate the housing market.
And as a result of that intense effort, economic stimulus legislation – the American Recovery and
Reinvestment Act – included a tax credit of up to $8,000 for first-time home buyers and net operating
loss tax relief for small businesses.
It was an enormous victory that resulted in almost 200,000 additional home sales and 35,000
additional housing starts while creating 187,000 jobs. Equally important, the tax credits gave our
industry some breathing room and allowed many members to keep their doors open.
Although the first-time home buyer tax credit provided a great boost for housing, it became clear
late in the year that the market was in danger of relapsing after the credit expired. NAHB immediately
launched a campaign to extend the tax credit and expand it to a larger group of potential home buyers.
Members at every level of the NAHB federation – from the grassroots to the national leadership –
participated in the intensive effort, and ultimately Congress extended the $8,000 first-time home
buyer tax credit and created a new $6,500 tax credit for repeat buyers meeting certain criteria.
VIDEO
The legislation also extended Net Operating Loss tax relief to all businesses, and NAHB Economics
estimates that the two NOL tax relief provisions enacted by Congress will save or create about
30,000 jobs in the construction sector.
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In addition to our tax credit efforts, we focused on a number of other critical issues last year,
including AD&C lending, the future of the nation’s financial system, and home appraisals. A reliable
and steady flow of AD&C credit to the housing industry is essential to meet the demand for
new homes. However, it has become virtually impossible for builders to get funds for new
construction, and working to restore the flow of funds to housing was a priority.
VIDEO
Another focus in 2009 was the future of the nation’s financial system, especially Fannie Mae,
Freddie Mac and the Federal Home Loan Banks. After much discussion, the board of directors
adopted a detailed policy statement regarding the future of the financial system, and we are fully
prepared to participate in the debate.
NAHB also focused a great deal of attention on the issue of appraisals in 2009. Throughout much
of the country, the use of foreclosures and other distressed properties as comparables for new
home appraisals has resulted in faulty appraisals that don’t reflect the true value of the home.
NAHB reached out to the appraisal community in 2009, and that work will continue going forward
as we work to ensure that appraisals accurately reflect new home values.
VIDEO
By any standard, NAHB’s achievements in 2009 represent stunning successes, but they are even
more impressive given the unique economic and housing market conditions that we faced last year.
It is said that hard times bring out the best in people, and after the past year, I’m very proud to say
that applies to NAHB as well. In the absolute worst of times, NAHB proved again and again that it is
not just the voice of the housing industry.
NAHB is the heart and soul of the housing industry.
Joe Robson
2009 NAHB Chairman of the Board
Tulsa, Okla.
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TABEL OF CONTENTS
2009 Annual Report to Members
Letter from Joe Robson, 2009 NAHB Chairman of the Board
Key Contact Information
January
February
March
April
May
June
July
August
September
October
November
December
Year-Over-Year International Builders’ Show® Performance
Looking Ahead Message from Bob Jones, 2010 NAHB Chairman of the Board
Business Management Resources
2010 NAHB Conferences, Tradeshows and Tours
NAHB’s Certification and Designation Programs
Benefits of Membership (this links directly to www.nahb.org/benefits)
Looking Ahead Messages from Select 2010 Committee Chairs
E. Ray Kothe, Business Management and Information Technology
Robert Bell, CGR, CAPS, Education
Karl Schelling, Conventions and Meetings
Bill Nolan, Public Affairs
Michael Sivage, Housing Finance
R. Randy Lee, Esq., Legal Action
Kenneth Simons, National Sales and Marketing Council
John Piazza, Sr., CAPS, Single Family Production Builders
Joedy Sharpe, Single Family Small Volume Builders
Donna Shirey, CGR, CAPS, CGP, NAHB Remodelers
Tammie Smoot, MIRM, CMP, CAPS, CSP, MCSP, CGP, Professional Women in Building
Carl Harris, Commercial Builders Council
Mike Nagel, CGR, CAPS, Design Committee
Gerald Kosmensky, NAHB Multifamily
Mike McGowan, 50+ Housing Council
Chuck Collett, Environmental Issues
Ray Rhodes, Construction, Safety and Health
Larry M. Stege, CGA, CGP, Associates
Victor, DePhillips, Building Systems Councils
Bob Simmons, Land Development
Ann M Garvey, CGA, CSP, Membership Committee
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KEY CONTACT INFORMATION
NAHB’s Main Toll-Free Number: 800-368-5242
50+ Housing Membership
x8292 jjenkins@nahb.org x8440 membership@nahb.org
Advocacy Programs
Member Advantage Discounts
x8401 jlynch@nahb.org
x8273 crondaldson@nahb.org
BUILD PAC
Member Record Inquiries
x8114 bdriggs@nahb.org
x8539 membershipaccounting@nahb.org
BuilderBooks
Member Service Center
x8270 lbragg@nahb.org
x0 info@nahb.org
BuilderLink Congressional Contacts
Multifamily
& Grassroots Network
x8550 lmcfadden@nahb.org
x8584 bmueller@nahb.org
NAHB Research Center
Building Systems
800-638-8556 www.nahbrc.org/contact
x8357 tgacek@nahb.org
National Council of the Housing Industry
Business Management
x8519 tbernard@nahb.org
x8472 acruz@nahb.org
Networking Programs (20 Clubs)
Education and Designation Programs
x8255 kbailey@nahb.org
x8154 designations@nahb.org
Professional Women in Building
Commercial Building
x8410 cnayman@nahb.org
x8410 cnayman@nahb.org
Public Relations
Conferences, Tradeshows and Webinars
x8447 gdonohue@nahb.org
x8489 lleonard@nahb.org
Remodeling
Custom Home Builders
x8216 remodel@nahb.org
x8388 mchilds@nahb.org
Safety Training
Economic Data
x8163 lcather@nahb.org
x8245 smelman@nahb.org
Sales & Marketing Council
National Housing Endowment
x8634 jdick@nahb.org
x8483 nhe@nahb.org
Small Volume Builders
Green Building
x8472 acruz@nahb.org
x8325 jritterpusch@nahb.org
Spokesperson Training
Home Builders Institute
x8061 bfishel@nahb.org
800-795-7955 postmaster@hbi.org
State & Local Political Operations
International Builders’ Show®
X8242 cgutierrez@nahb.org
x8118 gcassidy@nahb.org
NAHB.org
International Programs
x8137 onlineservices@nahb.org
x8415 sconnaughton@nahb.org
A more detailed subject matter directory is
Legal Services
available to members online.
x8250 mdicrescenzo@nahb.org
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NAHB
CONNECTS
Relationships & Responsibilities
NAHB is committed to maintaining and strengthening the relationships we’ve built
with our members, and leveraging those relationships responsibly for the good of
the entire membership.
We maintain our community by growing our member services to meet the new and
evolving needs of American home builders and remodelers, providing true advantages
to them, and ensuring a strong and productive connection to policy makers, the
media and society at-large.
Through our grassroots membership strength and our investments in the industry,
NAHB is committed to battling the ongoing challenges to make sure that our members
are protected and prepared to build a bright and gainful future.
As the preeminent association for the home building industry, NAHB serves our more
than 200,000 members each day spanning the metropolitan, suburban and rural areas
of our nation. This chronicle of events highlights just a few of the issues home
builders faced during 2009.
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JANUARY
THE HOUSING MARKET
IS CONTRACTING SHARPLY
A year into official recession territory, the
downswing was accelerating and the labor
markets were weakening at an alarming rate.
Payroll employment fell by 533,000 in November
and the civilian unemployment rate jumped
to 6.7%.
Housing demand was also deteriorating and CONVENTIONS & MEETINGS
there was a sharp reduction in new housing We look forward to the 2011 International
production. NAHB’s proprietary survey of 30 Builders’ Show in Orlando with equal parts
large single-family home builders showed further optimism and realism. Optimistic because
erosion of gross sales in November 2008. we know IBS is essential to the people and
markets NAHB serves. The facilities in
NAHB’s broad-based single-family Housing Orlando are fantastic, and we expect the
Market Index (HMI) showed builder confidence clouds over our economy to be clearing.
at a record low of 9 in December 2008. All three But we have to be realistic about the difficult
HMI components — current sales, buyer traffic headwinds we still face on the road to a
and six-month sales expectations — were at or full-scale housing recovery. IBS demonstrates
near record lows. the collective hopes and determination that
are seeing this industry through to better
times. It is the one place to find the great
NAHB SHARES CONSTRUCTION LENDING new products that will bring out the buyers
CONCERNS WITH FDIC CHAIRMAN and the ongoing education that builders
need throughout their lives to keep
NAHB Senior Officers emerged from a meeting up with a constantly changing marketplace.
in Washington with Federal Deposit Insurance And the networking opportunities at the
Corporation Chairman Sheila Bair and her staff show are unrivaled. IBS represents our
encouraged that the FDIC was interested in vision for housing in America, and it provides
working with home builders to resolve key issues a snapshot of an industry constantly
related to the ongoing credit crunch for moving forward. Your Conventions &
acquisition, development and construction Meetings Committee is committed to
(AD&C) financing. ensuring that your IBS experience is
productive and enjoyable. Do yourself and
In their meeting with Chairman Bair, the Senior your business a tremendous favor and plan
Officers said that the problem had spread on joining your industry on Jan. 12-15
beyond the housing boom-and-bust states to in Orlando.
almost all parts of the country. Banks were
increasingly reluctant to continue making
loans on viable housing development or to Karl Schelling
modify the terms of troubled outstanding loans to Schelling Construction, Inc.
avoid foreclosures or loan calls, they said. Jackson, MI
2010 Conventions & Meetings Chair
Sheila Bair
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JANUARY
MAJOR BLITZ URGES CENTRAL
ROLE FOR HOUSING STIMULUS PLAN
In a major blitz to make housing a central part of
the new economic stimulus package, NAHB and
its allies in the Fix Housing First coalition—led
by NAHB and consisting of more than 600
organizations, home building companies and
manufacturers—converged on Capitol Hill during
BUILDERS HAMMER HOME CONCERNS
ON LOW APPRAISALS
Meeting in Washington, NAHB leaders aimed at
resolving low appraisals that were undermining
new home sales and went to members of the
Federal Reserve to outline “Fix Housing First”
proposals designed to increase consumer
demand for homes.
the first week of January to champion an
aggressive plan that would create jobs and Fannie Mae requested help in documenting
stimulate home sales. the extent of problems with the appraisal system,
and NAHB asked builder members who had run
“Congress must address the root problems of into difficulties with appraisals to report
rising foreclosures, declining home values and their stories to NAHB.
falling home sales — all of which are killing the
economy, undermining the financial system and
resulting in hundreds of thousands of layoffs STIMULUS HOUSING DEMAND KEY
month after month,” said NAHB Chairman TO REVIVING U.S. ECONOMY
Sandy Dunn. “That’s the message we will be
delivering when more than 150 builders come to As Congress continued to move rapidly toward
Washington in a targeted fly-in focused on key completion of landmark legislation to stimulate
members of Congress.” the sputtering U.S. economy, leading national
economists cautioned that the package is
unlikely to succeed without provisions to restore
ICC BOARD UPHOLDS CONTESTED FIRE home buying demand and address housing
SPRINKLER MANDATE problems that are the root cause of the worst
economic downturn since the Great Depression.
Following an International Code Council
Appeals Panel recommendation to reject an With the Senate slated to vote on its version of
NAHB appeal to set aside code changes the stimulus bill, NAHB coordinated a major
mandating fire sprinklers in the 2009 International grassroots push across the country to alert
Residential Code, the ICC Board of Directors lawmakers on Capitol Hill that reviving housing
upheld the ICC decision to mandate fire sprinkler demand through a beefed-up tax credit for home
systems in all new homes in the model code. buyers was essential to restoring the confidence
NAHB’s appeal had been backed by a number of consumers and the financial markets needed
of industry groups that agreed with home to revive economic growth.
builders that the code approval process had
been unfairly influenced by third-party funding
and an overwhelming influx of new voting INTEREST IN IBS STRONG
representatives from the fire service. DESPITE HOUSING DOWNTURN
More than 60,000 builders, remodelers and other
members of the home building industry attended
NAHB’s 2009 International Builders’ Show
in Las Vegas on Jan. 20-23. In the midst of the
most severe housing downturn in recent memory,
attendees took advantage of more than 250
educational sessions and exhibits showcasing
products and services from more than 1,600
companies to arm themselves with information
about the latest industry trends, research and
new products.
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JANUARY
JANUARY FINDS HOUSING STARTS
IN FREE FALL
U.S. housing starts and permits hurtled
downward in January, the U.S. Commerce
Department reported, to seasonally adjusted
annual rates of 466,000 units and 521,000 units,
respectively. Both represented new record lows
seven months into the housing downturn.
BUSINESS MANAGEMENT &
ANSI APPROVES NATIONAL GREEN INFORMATION TECHNOLOGY
BUILDING STANDARD It’s been a very difficult year for NAHB and
its members, but as chair of the Business
The National Green Building Standard for all Management and Information Technology
single-family homes, apartments and condos; (BMIT) Committee I look at today’s challenges
land development; and residential remodeling as a call to action. Now, more than at any
and renovation was approved on Jan. 29 by the other time, the BMIT is key to members’
American National Standards Institute (ANSI). survival and success. Our group is developing
a host of new resources and programs
“The National Green Building Standard is now looking at not only what builders need now,
the first and only green building rating system but what they’ll need to continue their growth
approved by ANSI, making it the benchmark for beyond 2010. My philosophy and the guiding
green homes,” said Ron Jones, who chaired the principle of this year’s committee is nothing’s
consensus committee charged with developing gained from looking backward. We’ll continue
the standard. to build upon our successes, our members’
experience and our shared vision for the
enewal of the American home
NAHB EXPANDS ITS STIMULUS EFFORTS building industry.
As the Senate began work on its stimulus
package, NAHB teamed up with its local and Ray Kothe
state HBAs to conduct a broad grassroots Kothe Contractors & Construction
effort to pass a home buyer tax credit. Management, LLC
Baton Rouge, LA
EOs from across the country arranged for groups
2010 Business Management and
of builders to visit their local congressional Information Technology Chair
offices and builders from every state sent
messages to lawmakers on Capitol Hill.
STIMULUS PROVISIONS TO HELP PUT
HOUSING ON THE RIGHT TRACK
The $787 billion economic stimulus package
signed into law on Feb. 17 by President Barack
Obama contained provisions to bolster
housing and the economy. Chief among these
was an $8,000 tax credit for first-time
buyers who closed on their home before Dec. 1.
Housing finance agencies were allowed to help
builders at closing by advancing the amount of
the credit as a loan using tax-exempt
bond proceeds.
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FEBUARY
BUILDERS LAUNCH TAX CREDIT WEB SITE
NAHB launched a new Web site providing
detailed information on the $8,000 tax credit for
first-time home buyers. The site received 6.8
million visits by year’s end.
EXPANDED ENERGY TAX CREDIT TO BOOST
JOB LOSSES, TIGHT CREDIT ERODE
CONFIDENCE IN APARTMENTS
The deepening recession and credit crunch
continued to drag down builder confidence in the
multifamily housing market, according to builders
who were surveyed by NAHB for the association’s
Multifamily Rental Market Index and Multifamily
Condo Market Index.
DEMAND FOR RENOVATION JOBS
As NAHB research showed that remodeling and LOCAL GREEN HOME BUILDING
retrofitting the nation’s existing housing stock PROGRAMS JOIN NAHBGREEN
was the most effective approach to reducing
residential energy consumption, the economic The NAHBGreen network almost tripled in size in
stimulus bill provided new provisions aimed at February when 35 new state and local HBAs and
encouraging households to increase the energy their green certification and education programs
efficiency of their homes. The IRS Section 25C joined NAHB’s National Green Building Program.
tax credit for installing energy-efficient products
in existing homes was tripled to 30% of costs
and a lifetime cap of $1,500; the list of eligible OBAMA’S BUDGET HITS MORTGAGE
improvements was expanded; and the deadline INTEREST DEDUCTION
was extended to the end of 2010.
NAHB leveled harsh criticism against a provision
in the Administration’s $3.6 trillion proposed
budget to reduce the mortgage interest and
real estate tax deductions of American families
earning more than $250,000 in order to pay for a
NAHB REMODELERS $634 billion health care fund for the uninsured.
With more than 50% of its builder members
doing at least some remodeling, NAHB has “With the housing market still reeling, this is not
stepped up its role as the leading organization the time to talk about raising taxes on home
representing professional remodelers. It has buyers and home owners,” said NAHB Chairman
been at the table with regulators, Congress Joe Robson. “This proposal will increase the
and the White House to craft policies on cost of housing for many middle-class families,
such key issues as the EPA’s new lead paint which will only further undercut the housing
regulation, tax credits and energy-efficient market, exert more downward pressure on home
remodeling. As more builders diversify into values and work against the President’s efforts to
remodeling, more local remodelers councils stabilize housing and turn this economy around.”
are being formed around the country, six in
2009 alone. If you are already a member of
NAHB Remodelers, get the most out of your T. BOONE PICKENS TO ADDRESS GREEN
membership. Visit www.nahb.org/remodelers BUILDING CONFERENCE
for council information and benefits, plus
www.nahb.org/remodelingchannel for the Financier and alternative energy advocate
latest news and trends in the industry. T. Boone Pickens becomes a confirmed speaker
If you haven’t joined yet, at the 11th Annual NAHB National Green
visit www.nahb.org/nahbratlarge. Building Conference in Dallas on May 8-10.
The NAHB conference is the largest event of its
kind focusing on the residential green
building market.
Donna Shirey, CGR,
CAPS, CGP
Shirey Contracting, Inc.
Issaquah, WA
2010 NAHB Remodelers Chair
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MARCH HBAS RECEIVE FUNDS TO SUPPORT STATE
AND LOCAL EFFORTS
The NAHB State and Local Government
Affairs Committee announced that during the
association’s board of directors meeting in May it
would be reviewing applications from HBAs for
funding to deal with legislative, regulatory and
ballot issues with national significance for
the housing industry.
50+ HOUSING
By 2011, the promised wave of Baby Recipients chosen to receive funding at the
Boomers – a group that wants to stay active, winter board meeting in Las Vegas included:
but downsize near where they already the Florida HBA, to address anti-growth ballot
are – will grow large enough to give a initiatives; the Spokane HBA, to fight a home rule
boost to this important segment of the charter that would have given rights to the
housing market. In the meantime, the environment and halted development; the HBA
coming year will continue to be of Greater Chicago, to study the local impact of
challenging for our members. the National Green Building Standard; and the
BIA of Southern California, to find
On the positive side, the recently alternative ways of analyzing regional
expanded Federal tax credits for first-time compliance with greenhouse gas
and move-up buyers have allowed some reduction requirements.
active adult buyers to move off the fence.
And those consumers who actually are
buying homes are looking for smaller, more
user-friendly, energy efficient homes – the FACEBOOK AND YOUTUBE SPREAD THE
sort of homes our members already know WORD ON TAX CREDIT
how to build.
NAHB used popular social networking technology
As we go forward, the 50+ Housing Council on Facebook and YouTube to educate first-time
will be mining existing data and trying to home buyers about the new $8,000 tax credit
generate new data that will help our and link them to comprehensive resources on
members stay a step ahead of their the association’s Federal Housing Tax Credit
competition. This year’s successful Web site.
webinar series – free to Council members
– will continue into 2010, supplying our
members with information on trends and
management and sales practices that will
help us all get through this tough time.
Mike McGowan
McGowan Corporation
Binghamton, NY
2010 NAHB 50+ Housing Council Chair
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MARCH BUILDERS URGE CONGRESS TO REMEDY
AD&C LENDING CRISIS
Alleviating the acquisition, development and
construction (AD&C) lending crisis that was
choking off credit for home builders took center
stage on March 24 when more than 500 builders
from across the country converged on Capitol
Hill for the annual NAHB Legislative Conference.
In their meetings with representatives and
ENVIROMENTAL ISSUES senators, builders called for action on preserving
the value of the mortgage interest and real estate
In 2009, the Environmental Issues tax deductions for all home buyers and owners,
Committee worked diligently on behalf of fixing the housing finance system, strengthening
NAHB members in addressing unprecedented the Federal Housing Administration and
challenges in the environmental arena that supporting the voluntary efforts of the housing
will continue throughout the Obama industry on behalf of green building.
Administration. Achievements included
directing the outcome of the EPA’s
WaterSense Program; ensuring that the
federal government does not overstep its
authority under the Endangered Species Act
when protecting high-profile endangered
species; and convincing the EPA to abandon
expensive storm water requirements in favor
of more reasonable standards. Despite
these successes, the home building industry
faces significant regulatory pressures—
including the need to further improve water
quality, to avoid development in floodplains
and to increase green building and energy
efficiency. NAHB will continue to seek the
active participation of its members at this
crucial juncture for the economy and the
regulatory arena. I invite you to join me as
we face these challenges and opportunities
in the year ahead.
Chuck Collett
C-Level Success Group LLC
Acme, MI
2010 Environmental Issues
Committee Chair
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NAHB
INFORMS
Economics and Vision
NAHB’s vision is to create an environment in which all Americans have access to the
housing of their choice and the opportunity to realize the American dream of home
ownership; to ensure builders have the freedom to operate as entrepreneurs in an open
and competitive environment; and to make certain that housing and those who provide
it are recognized as the strength of the nation.
In today’s uncertain environment, these endeavors call for a keen ability to understand,
forecast and communicate to members about the economy.
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The Economics and Housing Policy Group analyzes the housing market and provides
the supporting research for implementing NAHB policy such as the first-time homebuyer
tax credit. NAHB’s residential construction forecasts offer geographically specific
business planning tools for members, and NAHB’s research tools such as the NAHB
Wells Fargo Housing Market Index are the established builder confidence benchmarks
for measuring the strength of the industry. The credibility of this research has weight in
the legislative and regulatory arenas.
The Housing Data tab available to the public at www.nahb.org establishes NAHB as the
best source for construction data including starts, permits and prices. NAHB’s biweekly
Eye on the Economy is available to all members, and provides a very readable and con-
cise analysis of current issues such as the first-time home buyer tax credit extension,
inventory levels, house price performance and interest rates.
The online publication HousingEconomics.com publishes regular in-depth analyses
of the housing industry along with national, state and metro forecasts plus an array of
key housing data updated live. In HousingEconomics.com, the National Outlook is the
monthly report of the chief economist incorporating the latest macroeconomic data,
NAHB research and the implications for housing markets. NAHB’s research measures
the single-family, multifamily and remodeling markets as well as housing affordability.
The residential forecasts drill down to the states and metro areas. The annual long-term
forecast and multifamily forecast are also featured. Monthly topical analyses discuss the
tax benefits of homeownership, the implications of new legislation, homebuyer patterns
and the positive impact of housing construction – deep economic information and our
analysis of the facts, whatever they may be.
Fact: NAHB estimates that the home buyer tax credit will create 211,000 jobs and
generate 180,000 additional home sales in the coming year. It is also expected to
generate $9.6 billion in wage income and $6.9 billion in federal, state and local taxes.
Fact: As the home buyer tax credit stimulated sales among first-time buyers and
stabilized home prices in many areas, older households were able to sell their existing
homes, and pursue a home in a 55-plus community. The recent extension and expansion
of the tax credit should extend the domino effect from first-time buyers and expand the
effect by providing a credit to repeat buyers as well.
Housing continues to face economic headwinds. Access to housing forecasts and data
provides builders with a tool for success as the business cycle begins its recovery.
Together, we are reshaping and enriching our communities.
14
APRIL
SERVICES HELP BUILDERS DIVERSIFY
INTO REMODELING
With more than half of the builder members of
NAHB taking on remodeling jobs during the
current housing downturn, NAHB Remodelers
has become an increasingly important resource
for helping members gauge demand and
maximize their profits in a business that has
NAHB STEPS UP EFFORTS TO END SEVERE
AD&C CREDIT CRUNCH
Expanding efforts to restore the flow of credit
for the production of housing, NAHB sought
case studies from its members who had run into
problems with their lenders.
“Turmoil in the housing-credit and broader
some unique differences from home building. financial markets is now affecting every corner of
our nation’s economy, but the effect on financing
Working in partnership with locally organized for housing production is especially severe and
remodelers councils at more than 150 is resulting in economic hardship in communities
NAHB-affiliated HBAs, NAHB Remodelers throughout the country,” 47 members of the U.S.
provides information, certification, education and Congress said in a March 27 letter to Treasury
recognition programs that can help support a Secretary Timothy Geithner. In that letter,
thriving remodeling business. lawmakers were conveying information provided
to them by delegations of NAHB members.
BUILDER OUTSELLS COMPETITION
BY FOCUSING ON GREEN STANDARD
With the 2009 NAHB National Green Building
Conference focusing on “The Green of
Green,” Virginia home builder Arjay West said
that he was heading to Dallas in May to learn PROFESSIONAL WOMEN IN BUILDING
more about incorporating green building into his
Professional Women in Building is
business plan and using sustainable building
looking ahead to a better 2010.
techniques to help gain a local market advantage
Our members are excited about renewed
over his competition. involvement in NAHB’s Legislative
Conference. Informing the decision makers
“I have actually outsold my competition lately
has been so important to the future of our
in custom homes in Northern Virginia by using
industry, and we want to participate in that
a strategy that focuses on the National Green process. You may have noticed that we
Building Standard and my Certified Green also have a new name! 2010 will be a year
Professional (CGP) designation,” said West,
of branding ourselves so that our name is
principal of West Properties, LLC in recognized and contributes to our efforts to
Falls Church. appeal to all women in NAHB.
Women are resilient! Looking to the future
HBAS PROMOTE TAX CREDIT, GENERATE means realizing that building continues and
INTEREST AND TRAFFIC the economy will improve. Along with that
improvement will come a renewed need
State and local HBAs across the county used for educated industry professionals.
NAHB resources to help promote the $8,000 tax Mentoring women in building and providing
credit for first-time purchasers and generate home scholarships for their training and education
buyer interest and foot traffic for their members. is another step we will take to look forward
HBAs incorporated NAHB marketing tools on to even greater achievements by
their Web sites and in their marketing to help building women.
revitalize their slumping markets.
Tammie Smoot, MIRM,
CMP, CAPS, CSP, MCSP,
CGP
Builders Digital Experience
Cary, North Carolina
2010 NAHB Professional Women in
Building Chair
15
APRIL ‘STRUGGLING’ HBAS, APPLY FOR NAHB
ASSISTANCE GRANTS
As part of a federation-wide assistance program,
NAHB offered grants of up to $25,000 to as
many as 139 struggling HBAs that were
unable to achieve specific membership and
retention thresholds. The HBAs were eligible
to apply for grants from a one-time fund of
$500,000 to bolster membership recruitment and
HOUSING FINANCE retention and other core revenue-generating
I am looking forward to chairing the Housing member programs and consulting services
Finance Committee in 2010 to build upon available through NAHB.
the good work started by the committee last
year and to further address the challenges
that the housing and economic downturns BUILDERS IN HARD TIMES FIND MONEY FOR
have presented. It is said that desperate COMMERCIAL JOBS
times require desperate measures. We have
an opportunity to examine what has worked With home builders looking for work to help
and what has failed, with an eye towards see them through the housing slump, and even
developing solutions that address the provide an ongoing stream of alternate income
problems we are experiencing today and once the marketplace recovers, NAHB’s National
prevent them from recurring in the future. Commercial Builders Council re-issued “Light
We cannot rest until we have restored credit Commercial Construction for Home Builders:
and capital to our industry—both for home A How-to Manual for Diversifying Your Business.”
buyers and home builders. This will be our
primary focus. We will tackle issues caused
by overzealous regulators and a broken TAX CUTS NEEDED TO PROMOTE
appraisal system to help restore AD&C ENERGY-EFFICIENT HOMES
lending. And we will be at the table to offer
ideas on the future of the GSEs and the NAHB called on Congress to ensure that
secondary mortgage market to ensure that legislation intended to make homes more
mortgage credit continues to flow. With the energy-efficient focused on measures that
ideas, input and advice of the committee provided the greatest environmental benefit
members and staff, we will assuredly without undermining housing affordability.
improve the housing finance environment NAHB Construction, Codes and Standards
in 2010. Committee Chair Dwight “Sonny” Richardson, a
home builder in Tuscaloosa, Ala., made several
recommendations to the House Subcommittee
Michael Sivage on Energy and the Environment when he
Sivage Homes testified at a hearing on the American Clean
Albuquerque, NM Energy Security Act.
2010 Housing Finance
Committee Chair
16
APRIL
NAHB SEEKS ENHANCED AND
EXPANDED NOL RULE
NAHB Chairman Joe Robson issued a press
statement highlighting the association’s ongoing
efforts to expand the net operating loss (NOL)
carryback provision that was included in the
economic stimulus package enacted into law
in February.
REFI BOOM, RISE OF FHA BIG NEWS
IN MORTGAGE MARKETS
At a time when conventional 30-year fixed-rate
mortgage loans were lingering at their lowest
levels in half a century, a major boost in
refinancing was making big news in the nation’s
mortgage markets, said panelists at NAHB’s
Construction Forecast Conference in
Washington, D.C.
“NAHB supports the fullest and most robust NOL
carryback provision possible in order to avert With the federal government stepping up its
more costly layoffs in construction and other role to support the housing finance system,
industries that would take an even worse toll on affordable financing was also available as a draw
the nation’s economy,” Robson said. for prospective home buyers with good credit
who could make a downpayment and document
Since passage of the economic stimulus their income, said Freddie Mac Chief Economist
legislation, the NAHB staff worked with both Frank Nothaft.
Congress and the Obama Administration to
find opportunities to expand the NOL provision On the negative side for the housing market,
beyond that contained in the American Recovery mortgage defaults were likely to continue to rise
and Reinvestment Act. Among other issues, the over the course of the year, not improving until
ARRA provision contained a gross receipts test joblessness stopped rising, panelists said.
of $15 million that excluded many home builders
in need of NOL carryback rule relief.
PEOPLE MAGAZINE PROFILES CHARLESTON
Earlier in the month, NAHB staff members met BUILDER ‘HEROES’
with the Department of Treasury’s Office of Tax
Policy and the staff of the Joint Committee on Putting aside their own economic hardships,
Taxation to advocate an expanded NOL more than 50 members of the Charleston
carryback for all businesses. In addition, NAHB Trident Home Builders Association (CTHBA) in
worked with its partners in the Net Operating Charleston, S.C., built a brand-new,
Loss Coalition, which consisted of about 75 wheelchair-accessible home for a local woman
business organizations, to expand the who had been left paralyzed after a vicious
NOL carryback. criminal attack.
In its May 1 issue, People magazine shared the
BUILDERS SAY BANKS PUTTING A COLD story with more than three million readers
CHILL ON RECOVERY HOPES nationwide as part of its “Heroes Among Us” series.
Working with regulators, lawmakers and banks
to end the stranglehold on acquisition,
development and construction (AD&C) loans,
NAHB compiled more than 100 case studies
from builders across the country to show
policymakers how the credit crisis was
undermining efforts to restore the health of the
nation’s economy.
17
MAY ILLEGAL WORKER ENFORCEMENT FOCUS
SHIFTS TO EMPLOYERS
The Department of Homeland Security (DHS) has
released a new “Worksite Enforcement Strategy”
that de-emphasizes the use of raids on work
sites and mass arrests of illegal immigrants on
construction sites. Instead, U.S. Immigration and
Customs Enforcement (ICE) agents have been
instructed to focus on the criminal prosecution of
LEGAL ACTION employers who knowingly hire illegal workers.
If 2010 is anything like 2009, we are in for
an eventful year. Already, the Obama Under the new strategy, employers should
Administration has proposed radical new expect heightened scrutiny of their hiring
initiatives that will spur litigation. The EPA practices and their compliance with the
in December determined that greenhouse requirements of the Immigration and Reform
gases “endanger” the public health Control Act of 1986. Employers are advised to
and welfare. This finding threatens to faithfully comply with the 1-9 verification process
dramatically increase the reach of the Clean for new hires, to use current forms and to adhere
Air Act. As a result, onerous Clean Air to all record-keeping requirements in
Act programs normally reserved for power anticipation of an increased possibility that they
plants and factories may be imposed on the might be subjected to an I-9 audit.
building industry. Environmental and other
interest groups have been seizing on the
momentum of the Administration. BUILDERS TAKING ADVANTAGE OF NAHB
We anticipate these groups will continue HOME BUYER RESOURCES
their efforts to oppose development or
impose stringent and unrealistic conditions With the spring home buying season in full
on it. The Legal Action Committee stands swing, NAHB members and associations are
ready to meet these challenges in the courts. taking advantage of the resources NAHB has
We are already working to preserve created to help them promote home buying in
favorable regulations that the Administration their local communities. Ranging from videos
seeks to undo, and we look forward to to print ads to consumer brochures and more,
continuing the fight in 2010. these materials carry positive messages and
information about buying a home, and also save
members the cost of creating them.
R. Randy Lee, Esq.
Lee & Amtzis, LLP The resources are all available online at
Staten Island, NY www.nahb.org/publicrelationstools, and many
2010 NAHB Legal Action
can be customized with contact information or
Committee Chair
specifics about the local market.
18
MAY HUD TO ALLOW MONETIZATION
OF TAX CREDIT
The housing market has started to show signs of
new life in recent weeks, led largely by first-time
buyers. Builders across the country have been
reporting that historically low mortgage rates,
affordable home prices and the $8,000 tax credit
are reviving interest in home buying.
LAND DEVELOPMENT
Remember when land development meant In the latest development, home builders
moving dirt with heavy equipment and the received encouraging news on May 12 when
biggest challenge was saving trees? HUD Secretary Shaun Donovan announced that
Well, at the end of the day you still get to FHA-approved lenders; federal, state and local
do that, maybe... but it’s getting tougher and government agencies; and FHA-approved non-
tougher every day. Welcome to 2010, where profit organizations would be allowed to supply
NAHB is one of the few voices left promoting first-time home buyers with short-term or “bridge
individual consumer choice in housing and loans” up to the amount of the tax credit.
market-driven solutions to local issues versus
federal mandates. Climate change, global “The biggest obstacle for first-time buyers is
warming, federal sustainable communities coming up with a downpayment,” said NAHB
initiatives, reauthorization of the Federal Chairman Joe Robson. “This will help to stimu-
Transportation Bill, infrastructure financing, late homes sales, stabilize housing and get
restrictive storm water management the economy back on track.”
policies—these are just a few of the issues
that we will be dealing with in 2010 and
beyond that will have an impact on your MEMBERSHIP DAY BRINGS IN 5,055 NEW
business on a daily basis. NAHB’s Land MEMBERS IN TOUGH TIMES
Development Committee is committed to
keeping our membership educated The tough housing market did not deter
and involved. Join us at our committee and federation members and local associations from
subcommittee meetings to find out how we recruiting 5,055 new members during NAHB’s
are rising to the challenge and leading with National Membership Day on May 19.
national solutions on land development and
planning, and, just as importantly, to find out “We are surprised and pleased with the
what you can do to help. membership results of this year’s drive,” said Ed
Brady, of Brady Homes in Bloomington, Ill. and
the 2009 NAHB membership chairman.
Bob Simmons “We consider the real victory to be the high
Robert L Simmons participation and high energy we saw this year.
& Associates LLC Our members are no less committed today
McLean, VA
than they have been to cultivating a strong
2010 Land Development
Committee Chair local membership.”
19
MAY NAHB HELPS ASSOCIATION MEMBERS TO
BUILD GREEN
The NAHB National Green Building Program helps
NAHB members build green in a way that’s market-
driven, code-based, voluntary and affordable.
Builders, remodelers and designers can use
the convenient online scoring tools at
www.nahbgreen.org to add up the point value
of each green product or practice that has been
NATIONAL SALES &
incorporated into the development and
MARKETING COUNCIL
construction of their homes or subdivisions.
The great thing about sales and marketing
people is that they are trained to overcome The results are verified by local inspectors and
objections and obstacles, and they have then certified by the NAHB Research Center.
gotten a lot of opportunity to use that skill National certification provides buyers the
this year. Like the rest of NAHB, we at NSMC assurance that their home has been inspected
are all fighting to make sales, keep members by local experts who understand how the
and remain relevant to this ever evolving and components of green building work together to
changing industry. create a truly green home in the most
cost-effective way.
With a focus on increasing member outreach
and education, along with providing So far, more than 200 projects have received
information on the latest trends in Sales + national green certification and hundreds more
Marketing Ideas magazine and the Sales and are in the pipeline.
Marketing Channel, this year’s NSMC board
is optimistic about what 2010 will bring.
BUILDERS USE NAHB ECONOMIC DATA TO
The shock has worn off, and we are ready to GAUGE MARKET DEMAND
become stronger as a Council and as
an industry. At a time when it is difficult to read the housing
marketplace and make confident predictions,
NAHB members can access a wealth of
Kenneth Simons economic materials that provide insights into the
Leewood Real Estate Group various factors that are expected to put
Bedminster, NJ
2010 National Sales and Marketing residential sales and construction activity on an
Council Chair upward path.
Information from NAHB provides reliable
forecasts on interest rates, unemployment and
economic growth as well as demographic data
that builders can use to gauge housing demand
and prepare business plans.
Among the economic resources available to
NAHB members:
• Tax Benefits of Homeownership
• Spending Patterns of Home Buyers
• The Direct Impact of Home Building and
Remodeling on the U.S. Economy
• Characteristics of First-Time Home Buyers
20
MAY
TOOLS HELP INCREASE BUSINESS
EFFICIENCY IN SAGGING ECONOMY
In a soft economy, NAHB’s Business
Management and Information Technology
Department is providing builders and associate
members with the tools they need to bolster
profits by increasing the efficiency of their
business operations as they plan for the future.
LEGAL ACTION GRANTS SUPPORT CASES
AGAINST EXCESSIVE FEES
At its May 29 meeting during the NAHB Spring
Board of Directors Meeting, the NAHB Legal
Action Committee recommended grants from the
association’s Legal Action Fund (link is for
members only) to support cases involving scrap
metal litigation, excessive water and tap fees,
The following are a sampling of resources de-annexation from a municipality, and more.
available from NAHB:
FORECLOSURES, TIGHT CREDIT POSE
• Mortgage Solutions That Increase Home Sales
HOUSING RECOVERY HURDLES
• Switch Strategies From Specs to Selling
Contract Homes Home builders in recent weeks and months have
• Ramp Up Sales Effort in Slowing Market begun to see early, tentative signs that the
housing downturn has hit bottom, but panelists
• Managing in a Cyclical Downturn appearing at the May 30 NAHB Board of
• Increase Efficiency and Reduce Costs in Directors meeting in Washington, D.C. to report
Slow Times on where they see the industry heading said that
serious impediments remain.
• Improve Company Marketing With These Nine
Easy Tips
Ann Schnare, a partner at Empiris LLC, cited the
• Tech-Savvy Builders Expected to Lead in current housing oversupply as a vexing problem
Housing Upturn for the industry. She voiced particular concern
• To Stay Ahead in Tough Times, Set over “the shadow inventory” of housing that will
Yourself Apart begin to materialize once housing prices start
rising again and people put their homes back on
• Cash Flow Forecasting: Your Crystal Ball the market.
• Liquidity, Good Business Practices Key
to Survival
FIRST REMODELED HOME CERTIFIED
TO GREEN STANDARD
A recently completed remodeling project in
Munster, Ind. is the first home remodel to earn
certification under the National Green Building
Standard, NAHB announced on May 21.
HOUSING REACHES MOST AFFORDABLE
LEVEL IN 18 YEARS
The NAHB/Wells Fargo Housing Opportunity
Index (HOI) jumped 10 points during this year’s
first quarter, indicating that housing affordability
had reached its highest level since the series
began 18 years ago.
21
MAY
NAHB SUPPORTS GOVERNMENT EFFORTS
ON CHINESE DRYWALL
NAHB told Congress on May 21 that the nation’s
home builders are determined to play a constructive
role in resolving the Chinese-made drywall issue.
The drywall in question is believed to have been
imported into the U.S. between 2005 and 2008
L
SINGLE FAMILY
PRODUCTION BUILDERS
It’s been a hard two years for all NAHB
members. Membership particularly has felt
the brunt of the recession. Many builders
and is alleged to contain high levels of sulfur
and/or other contaminants that are emitting foul have gone out of business, and or those
odors in homes that have used the material. that worked in several association
jurisdictions have dropped their multiple
Testifying on behalf of NAHB before the Senate company memberships.
Commerce Subcommittee on Consumer
Protection, Product Safety and Insurance, New The Single family Production Builders
Orleans area builder Randy Noel said that NAHB Committee” looks out for the interests of
members are continuing to work on a daily basis members who build more than 25 homes
to respond to home owners who are reporting a year. The committee focuses on
problems with Chinese drywall. big - builder business and construction
issues. We identified issues surrounding
production builders and we try to create
OBAMA SIGNS BILL TO HELP FAMILIES resources that apply to those issues.
REFINANCE MORTGAGES
For the upcoming 2010 year we will continue
President Barack Obama last week signed into to develop more resources for production
law legislation that will help struggling borrowers builders with AD and C zoning and planning,
refinance into 30-year, fixed-rate mortgages and look to do some creative, low cost
insured by the Federal Housing Administration. marketing ideas to help all our members
S. 896, the Helping Families Save Their Homes get back on our feet.
Act of 2009, received strong bipartisan support
in both chambers of Congress. The Single Family Production Builders
Committee Web site, www.nahb.org/sfpb
hosts dozens of articles on critical business
management issues. Let’s make a
difference this year for NAHB.
John Piazza, Sr., CAPS
John Piazza Construction Inc.
Mt. Vernon, WA
2010 Single Family
Production Builders
Committee Chair
22
JUNE
MULTIFAMILY INFORMATION PIVOTAL
IN DIFFICULT MARKET
Because the credit crunch has reduced new
production to a crawl and rental demand has
been undermined by the declining economy,
NAHB Multifamily is focusing on providing key
information on making the most of weak market
conditions as well as demographic and other
NAHB ANSWERS HOW TO PAY UPFRONT
COSTS WITH TAX CREDIT
NAHB is providing answers to frequently asked
questions from prospective first-time home
buyers who qualify for the $8,000 tax credit and
are seeking information on how they can get a
loan to help cover downpayment or
closing costs.
projections on when the industry can be expected
to return to peak conditions. Among the many The U.S. Department of Housing and Urban
resources available to members of the NAHB Development announced on May 29 that the
Multifamily Council: Federal Housing Administration will allow state
housing finance agencies to provide second
• Local Economic Impact Models for Multifamily
mortgages “monetizing” the tax credit so that
Housing
borrowers can use the funds for upfront costs
• Multifamily Information Series for the purchase of homes with FHA-insured
• Multifamily Green Building Scoring Tool mortgage loans.
• Multifamily Market Outlook, which provides HUD announced that FHA-approved lenders can
the nation’s most comprehensive view of the purchase the tax credit from the home buyer in
economics of multifamily development. advance, so that the home buyer can use the
funds for closing costs or make a downpayment
in addition to the 3.5% minimum.
TAX CREDITS HELPING HOUSING REGAIN
ITS FOOTING
GREEN BUILDING SIGNALS BIG CHANGES
Participating in a June 2 business roundtable AHEAD FOR HOUSING
hosted by Vice President Joe Biden to promote
the benefits of the economic stimulus package Leaders in the movement toward sustainability
enacted into law earlier this year, NAHB in housing and other industries told last month’s
Chairman Joe Robson said that the $8,000 NAHB Green Building Conference in Dallas that
first-time home buyer tax credit has helped to the marketplace is in a period of transition and
arrest a slide in housing sales, but much more that home builders should be gearing up to fill
needs to be done to get back to anything demand for energy- and resource-efficient
resembling a healthy housing market. homes.
The event also featured New York Governor If builders don’t change on their own, they said, it
David Paterson, Deputy Secretary of the Treasury is likely that the government will come in and
Neal Wolin and other business leaders. force them to build sustainably.
“The Recovery Act is putting people to work, and
our business leaders here today are a testament
to that. They are on the front lines of hiring
folks for new jobs and preventing layoffs.
They have first-hand knowledge of how this
economy — and our policies — are working,”
said Biden.
23
JUNE
NAHB LEGAL SERVICES HELP BUILDERS
SURVIVE DOWNTURN
From the first stages of a business transaction to
full-blown legal disputes, NAHB members have
access to many legal services that can help their
business, including some that are particularly
geared to providing support in today’s tough
economic times:
CHINESE DRYWALL RESOURCES FOR
BUILDERS POSTED ON NAHB.ORG
NAHB has created a special Web page to
help members understand the rapidly evolving
Chinese drywall issue. The topic has been the
subject of much speculation in national
headlines, and is causing concern for home
owners and home builders.
• Legal Consultation — Free business survival NAHB’s legal affairs department and building
information on bankruptcy, reorganization, product issues committee worked together to
liens, subcontractor disputes and develop a set of Chinese drywall resources —
partnership issues. including links to information on current
legislation, federal government and state agency
• Legal Research — Free legal research resources and other related organizations and
assistance and information on all building research, including an insurance coverage
industry-related issues is available to all analysis entitled, “Which Contractors Will Be
members and affiliated HBAs. Covered by Their CGL Insurance Policies for
Liability Arising Out of Chinese Drywall?”
• Legal Ordinance Review Program — Free legal
review of local ordinances and state The resources are available to NAHB members
legislationthat have an impact on the and affiliated home builders association staff at:
development and construction industry. www.nahb.org/chinesedrywall.
• Legal Education Seminars — Basic knowledge,
legal principles, concepts and applicable law
for builders, developers and remodelers.
• Legal Action Fund — Funding to help defray
the cost of litigation or support via an amicus
brief to an appellate court in support of an
ongoing case.
• LANDS — A national network of land use and
environmental attorneys representing affiliates
and members in the courts.
• CLAF — A network of industry attorneys who
dedicate a substantial portion of their practice
to construction defect and builder
liability issues.
• Green Building — The NAHB Building Products
Issues Committee provides legal advice for
home builders and remodelers who are turning
their attention to green building.
24
JUNE
NAHB RESEARCH BRINGS
50+ MARKET INTO VIEW
As members of the post-World War II baby
boom approach retirement age in record
numbers, interest has grown in active-adult
housing. NAHB provides up-to-date information
on how to meet demand for 50+ housing in a
changing marketplace. Among the
SINGLE FAMILY SMALL VOLUME
The Single Family Small Volume Builders
Committee serves the unique business
needs of the 70% of NAHB builder-mem-
bers who build 25 or fewer homes a year.
available resources:
The committee produces information and
• 50+ Housing Research resources specifically designed to help
small-business owners. It also co-sponsors
• Local Economic Impact Models NAHB’s landmark Residential Construction
for 55+ Housing Performance Guidelines warranty
• Approving 55+ Housing — Facts That Matter support tools.
• Profile of the 50+ Housing Market The Single Family Small Volume Builders
• Seniors Migration Studies Committee will continue the modernization
and re-write of the Residential Construction
• 55+ NAHB & MetLife Multifamily
Performance Guidelines publication.
• Market Research The target date for the release of this new
• 50+ Channel updated version is Spring Board of 2010.
The SFSV Committee has initiated the
revision of its strategic plan. This project
NEW LEAD PAINT RESOURCES AVAILABLE is a committee priority.
ON WEB FROM NAHB
With the current crisis in homebuilding
New resources on the U.S. Environmental industry the SFSV Committee will undertake
Protection Agency’s rule governing the work to explore previously unknown and not
of professional remodelers in pre-1978 homes experienced homebuilding business
where there is lead-based paint have been environment. Any success in this endeavor
compiled for easy access on the NAHB Web site will be enormous for the small builder.
at www.nahb.org/leadpaint. In addition to the current wealth of builder
tools a small builder will have available
Available to NAHB members, the information new and more avenues of information and
also provides sample contract language that resources. The legacy of this crisis has been
remodelers can use to minimize liability on jobs hard times and survival. The lesson learned
before the rule goes into effect on April 23, 2010. will be its prevention. The accumulation and
compilation of knowledge and information
from this experience is the objective.
The measure of success is assisting small
builders with the reinvention of themselves
and the resurrection of their businesses.
Joedy Sharpe
Sharpe Construction Co.
Danville, KY
2010 Single Family Small Volume Builders
Committee Chair
25
NAHB
CARES
Passion and Teamwork
NAHB employees continually demonstrate that they are the association’s greatest asset.
Their passion for the industry and pride in the association foster enthusiasm for NAHB’s
goals, as well as commitment to the strategy and federated business model. A sense of
accountability drives them to view “doing the right thing” as their personal responsibility.
And a strong allegiance to the members they serve and their colleagues supports the
essential ingredient that drives progress: teamwork.
The passion of NAHB employees shines through in every aspect of the association’s
business. We encourage and reward this by continuously challenging our people and
cultivating their capabilities.
No matter what challenges the industry faces, every NAHB employee knows the
association’s ability to perform rests on a shared commitment to teamwork, integrity
and excellence. At NAHB, teamwork is not an abstract goal, but a reality you experience
through the integrated service offerings they make possible for the membership.
This allows the association to produce exceptional results across the organization.
26
JULY
FAULTY APPRAISALS HARMING HOUSING
AND THE ECONOMY
Twenty-six percent of builders are seeing signed
sales contracts fall through because appraisals
on their homes are coming in below the contract
sales price, according to a nationwide survey
conducted by NAHB.
AD&C CREDIT CRUNCH IMPERILS
HOUSING-LED ECONOMIC RECOVERY
Although the scarcity of credit for building
new homes remains a major obstacle to the
full-fledged housing recovery needed to lead the
nation’s struggling economy to higher ground,
participants at a June 25 NAHB audio seminar
on the AD&C lending crisis reported that the
“Home builders are increasingly concerned that association is making steady progress on
inappropriate appraisal practices are needlessly this issue.
driving down home values. This, in turn, is
slowing new home sales, causing more workers Case studies from builders and developers who
to lose their jobs and putting a drag on the have experienced financing difficulties have
economic recovery,” said NAHB in a been a key component of NAHB’s efforts to alert
press release. policy makers to the problem. More than 125
examples of how the AD&C credit crunch has
The survey showed that nearly 60 percent of the been harming businesses have been collected at
builders are reporting that inadequate appraisals www.nahb.org/adccasestudy, and panelists
are causing serious problems in the market, with encouraged association members to continue
the biggest problem being comparables of new to report on the financial constraints they have
single-family homes that are too often based on been encountering.
foreclosures and distressed sales.
Information on the AD&C lending issue has been
Of those who are reporting appraisal problems, compiled by NAHB and is available at
54 percent said that the appraisal amount was www.nahb.org/adcresources.
actually less than the cost of building the home.
FHA INCREASES FINANCE LIMITS FOR
COSTLY ‘NO-MATCH’ RULE TO ADDED ENERGY EFFICIENCY
BE RESCINDED
Taking a major step forward, the Federal
The Department of Homeland Security has Housing Administration recently increased its
announced its intention to rescind the limits for financing improvements to the energy
controversial Social Security “No-Match” Rule efficiency of a home.
requiring employers to fire workers whose names
and Social Security numbers don’t match in the Mortgagee Letter 2009-18 has announced
Social Security Administration database. changes to calculating the amount an
FHA-insured energy-efficient mortgage (EEM)
Adopted by the Department of Homeland can be increased to account for the cost of
Security (DHS) and touted as a means of energy improvements. This add-on was capped
uncovering illegal immigrants, the rule was previously at $8,000, but was raised by the
scheduled to go into effect in September 2007. Housing and Economic Recovery Act (HERA),
However, a coalition of businesses and which was signed into law about a year ago.
organizations — spearheaded by the U. S.
Chamber of Commerce and backed by
NAHB — filed suit in the U.S. District Court of
Northern California challenging the rule.
27
JULY
NINE HBAS AWARDED 2009
CHALLENGE/BUILD/GROW GRANTS
Local and state home builders associations
recently received matching grants of up to
$5,000 through the National Housing
Endowment’s 2009 Challenge/Build/Grow (CBG)
matching funds initiative to bolster their
education and labor shortage/worker
EDUCATION
As the Chair of the 2010 Education Committee,
I am very excited about our new strategic goals
for 2010.
training programs.
Our professional education program this year
Grant recipients include: provided 43 courses that were offered 1,100
times, mostly through NAHB local HBAs.
• Builders Association of Eastern Connecticut These courses were taken by 15,000 students,
of whom 4,000 earned one or more NAHB
• Home Builders Association of designations.
Fargo-Moorhead, North Dakota
• Home Builders Association of Jackson We look forward to building on this success
County, Oregon while understanding that there remains much
more heavy lifting.
• Home Builders Association of Kentucky
• Home Builders Association of Moving forward, the committee seeks active
Northern Kentucky participation from all stakeholder groups to
participate in the development of innovative
• Los Angeles Ventura Counties Chapter,
and cost-effective mechanisms for delivering
Building Industry Association of
educational resources.
Southern California
• Florida Home Builders Association The committee will develop and utilize trend
• Home Builders Association of Josephine analysis to maintain relevance of mission, and
County, Oregon will more effectively communicate the
educational value proposition.
• Master Builders Association of King &
Snohomish Counties, Washington Given these goals, the Education Committee
will focus heavily on:
Since 2001, the endowment has awarded more
than $190,000 to HBAs nationwide. • Delivering more courses through online learning
• Becoming an approved education provider
for many more industry-related organizations
• Increasing the number of universities and
whose students can graduate with an NAHB
designation as we did with Purdue University.
This is an exciting time for the NAHB Education
program. I look forward to working with our
members, instructors, students, staff, and local
HBAs to increase participation and hence,
increase the high level of professionalism within
the home building community.
Robert Bell, CGR, CAPS
Bell’s Remodeling
Duluth, MN
2010 Education Chair
28
AUGUST
APPRAISAL AND AD&C TROUBLES
HAMPER HOUSING RECOVERY
Inappropriate appraisal practices and the
acquisition, development and construction
(AD&C) lending crisis that has choked off credit
for home builders threaten to prolong the current
housing and economic downturn, NAHB told
Congress recently.
BSC, HBA BUILD NEW HOME FOR KATRINA
VICTIMS IN ONE WEEK
Nearly four years after Hurricane Katrina
destroyed their home of 30 years in the Lower
Ninth Ward, a New Orleans couple will be
moving into a new home next month thanks to
efforts by NAHB’s Building Systems Councils
(BSC) and members of the Louisiana Home
Builders Association and HBA of Greater
Testifying before the House Small Business New Orleans.
Committee’s Subcommittee on Finance and
Tax, NAHB Chairman Joe Robson said these HBA and BSC members — including
two issues “are placing enormous pressure manufacturers, suppliers and builders of
on home builders’ bottom lines and, for many, systems-built homes — donated materials,
endangering their ability to survive the money and labor. Additional funding was
economic downturn. provided by the Louisiana HBA’s Louisiana
Homebuilders Disaster Relief Fund and an
“The inappropriate use of distressed and $85,000 grant from NAHB’s Home Building
foreclosed sales as comparables is needlessly Industry Disaster Relief Fund.
driving down home prices and forestalling an
economic recovery,” he said, citing a recent
NAHB survey that found 26% of builders losing
sales because appraisals on their homes are
coming in below the contract sales price.
COMMERCIAL BUILDERS
These appraisal practices are a major
In many areas of the country, we’re still
contributing factor to the current AD&C credit
building commercial. Our mission in 2010
crisis. Falling appraised values for land and
is to help others at NAHB realize the
subdivisions under development have led some
importance and necessity of diversifying
financial institutions to stop lending to
their industry portfolios. In order to do that,
developers and builders, to demand additional
we’re sharing the expertise of our members
equity and even to call performing loans.
and giving residential builders the advice
they’ll need to use their skills in a
new market.
And for our members, the light commercial
builders and developers within the
association, we’re providing information
on financing and refinancing projects, and
helping builders find investors and partners
to complete their projects.
We believe in the future of the building
industry! The current times will pass, and as
home building recovers, new home buyers
will look to commercial builders to provide
the strip malls, medical facilities, schools,
and places of worship that make their
homes a community.
Carl Harris
Carl Harris Company, Inc.
Wichita, Kansas
2010 NAHB Commercial Builders Council Chair
29
AUGUST NAHB ASKS BANK REGULATORS FOR
PROMPT ACTION ON FAULTY APPRAISALS
In a recent letter, NAHB asked federal banking
agencies to instruct appraisers on the proper
procedures for using distressed or foreclosed
properties as comparables in new single-family
home appraisals.
BUILDERS ASK CONGRESS TO EXTEND
HOME BUYER TAX CREDIT
As members of Congress returned home for the
August congressional recess, NAHB’s more than
200,000 members were urged to contact their
lawmakers and ask them to help create jobs and
set the stage for a strong recovery by extending
the $8,000 fi rst-time home buyer tax credit for
“Appraisers are frequently using distressed and an additional year and making it available to all
foreclosed property sales as comparables in eligible buyers of a principal residence.
conjunction with appraisals on single-family home
sales without properly adjusting the comparable “If Congress acts to extend the tax credit
property values to reflect the relative conditions program, it would spur 383,000 additional home
of the properties,” the letter said. sales, including 80,000 housing starts, creating
nearly 350,000 jobs over the coming year,” said
This practice often results in undervaluing new NAHB. “That’s good for the economy and good
properties for sale and “contributes to the for America.”
continuing downward spiral in home prices,
forestalling the economic recovery.”
BUILDERS URGED TO ENLIST THE PUBLIC
The letter was delivered to Comptroller of the IN ‘REVIVE HOUSING’ PUSH
Currency John Dugan; Sheila Bair, chairman
of the Federal Deposit Insurance Corporation; As part of its effort to “Revive Housing, Restore
Ben Bernanke, chairman of the Federal Reserve America,” NAHB has asked members to en-
System; and John Bowman, acting director of courage their communities to urge Congress to
the Office of Thrift Supervision, and also sent to extend and enhance the first time home buyer
the Democratic and Republican leaders of the tax credit.
Senate Banking and House Financial
Services committees. Builders were asked to direct members of the
public to NAHB’s new consumer web site,
www.ReviveHousingNow.com, which told why
stimulating housing would help restore the
economy, how to contact their federal
lawmakers and what to say to lawmakers.
EXPLOSIVE GROWTH CONTINUES FOR
NAHB’S CGP DESIGNATION
The number of home builders, remodelers
and other members of the real estate and
construction industry who hold the Certified
Green Professional (CGP) educational
designation topped 4,000 as of August 13.
NAHB Chairman
Joe Robison
30
AUGUST CREDIT CRUNCH HITS NAHB’S 2010 NEW
AMERICAN HOME
The New American Home 2010, a model of
innovation in energy and resource efficiency, has
become a high-profile model of the effects of
restrictive lending practices by a banking
industry that is choking off the supply of credit
for residential construction.
DESIGN As Las Vegas builder Domanico Custom Homes
As the housing industry struggles to get worked to complete the home in time for its
back on its feet, consumers are looking for debut at the 2010 International Builders’ Show
solid design at affordable prices. (IBS), the company had to contend with lenders
The Design Committee is comprised of who had cut off the supply of capital for even
committed members who have taken on the the best projects and was having trouble getting
task of providing educational seminars to the financing needed to finish one of the most
keep the entire spectrum of our members up prominent show homes in the world.
on the latest trends, what works and
what doesn’t. “Instead of being a showcase for innovative
new products and green building technologies,
Our seminars are among the most widely The New American Home 2010 has become a
and highly attended at the International showcase of excessively restrictive lending
Builders’ Show and other venues. We also practices and failed regulatory oversight,”
provide, along with Professional Builder said NAHB.
Magazine, an opportunity for members to
showcase their designs by entering them in The association is calling on banking regulators
the Best in American Living Awards and are and the banking industry to end the stranglehold
currently working directly with the United on acquisition, development and construction
States Patent and Trade Office (USPTO) to (AD&C) loans that has emerged as a major
help develop our own database of existing impediment to the housing recovery.
art, namely intellectual property, that can Lenders are refusing to provide financing for
be used by the USPTO during their search viable new housing projects and cutting off
when a design patent is requested. funding or calling performing outstanding loans,
producing unnecessary foreclosures
We challenge any of you that have an and losses on AD&C loans.
interest in design or have an opinion to
share to attend our meetings and share “The banking regulators need to allow and
your thoughts. Look forward to seeing encourage lenders to give leeway to residential
you there. AD&C borrowers who have loans in good
standing by providing flexibility on re-appraisals,
loan modifications and perhaps forbearance to
Mike Nagel, CGR, CAPS give builders time to complete and sell their lots
MAW Chicago LLC and homes,” NAHB said.
Palatine, IL
2010 Design Committee Chair
31
AUGUST SOME ENCOURAGING HOUSING NEWS
The news surrounding the housing market of late
has been undeniably encouraging. Both new and
existing single-family home sales saw their fourth
consecutive monthly increases in July, rising
9.6% and 7.2%, respectively.
The inventory of new single-family homes for
sale has fallen to 271,000, the lowest level since
NAHB MULTIFAMILY March 1993. Inventories have been falling for 27
months from a peak of 572,000.
The impact of this recession has been
especially hard on multifamily members in
both the market-rate and affordable sectors.
BUILDERS STEP UP CAMPAIGN TO REVIVE
With access to capital – both debt and
HOUSING, CREATE JOBS
equity – severely constrained, and with
job losses suppressing demand and pushing
As the U.S. Congress returned from its August
rents lower, many established development
recess, the nation’s home builders moved
and management companies are simply
into the second phase of their “Revive Housing,
trying to survive.
Restore America” campaign, urging lawmakers
in Washington to take a number of crucial steps
The Multifamily Council’s priorities going
to support housing as the framework for creating
forward are to provide our members with the
jobs and pulling the nation’s economy out of a
information, resources, and research that
devastating recession.
will help them through these difficult times.
We’ll help each other address our common
Research by tax analysts at NAHB indicates
issues, network to identify opportunities,
that extending the current tax credit for first-time
and position ourselves for the recovery.
home buyers for another year when it expires at
the end of November and making it available to
Because today’s capital problems have
all buyers with qualifying incomes would create
resulted in historically low levels of both
more than 347,000 jobs and an additional $16
market-rate and affordable rental starts,
billion in wages and salaries over the year after
when demand returns in 2011, rents will
the legislation is enacted.
begin to rise and there will be apartment
shortages further along as Generation Y
In addition to expanding the home buyer tax
members form new households, and
credit, builders last month were urging their U.S.
empty-nesters downsize.
senators and representatives to help tackle
major problems confronting the industry that
Multifamily will help its members position
could reverse housing market gains unless
themselves for that demand by keeping
solutions are found soon. Specifically, builders
them aware of what those groups want in an
have been asking for congressional
apartment or condo, so they’ll be ready to
assistance to:
provide it.
• Correct a faulty appraisal process
• Improve housing credit conditions
Gerald Kosmensky
Gerald Building Company • Expand the tax code’s Net Operating Loss
Southgate, MI carryback provision for businesses
2010 NAHB Multifamily Chair
32
SEPTEMBER
LOW CONFIDENCE SUGGESTS
APARTMENTS SLOWER TO RECOVER
While single-family housing has been showing
recent signs of rebounding, the apartment sector
is on a slower trajectory for recovery, according
to NAHB’s latest Multifamily Market Index (MMI).
The MMI for this year’s second quarter indicated
a downward movement across the rental market. ASSOCIATES
The condo index, which was at a record low of Associate members have made great
10 for the second quarter of last year, rose to 15 contributions to NAHB and the housing
during this year’s April-to-June period. industry over the years, but one
sometimes cannot help but feel there is
“The continued contraction in multifamily starts still unrealized potential that has yet to be
is exacerbated by the ‘shadow market’ of empty tapped. In an effort to better leverage
foreclosed single-family homes and condos that associates as a resource in 2010, the
are being rented at below-market rates by Associate Members committee will be taking
investor-owners,” said NAHB Chief Economist strategic planning to a higher level through
David Crowe. the Associates Strategic Planning
sub-committee.
AD CAMPAIGN ASKS CONGRESS TO KEEP Chaired by Michael LeCorgne and
HOUSING UPTURN GOING consisting of the leadership of the standing
committee and sub-committees as well as
In a full page advertisement running in two of the committee’s past chairs, the
inside-the-Washington-Beltway publications Strategic Planning sub-committee will
Roll Call, Politico and The Hill, NAHB last week seek ways to increase the involvement of
stepped up its efforts to urge Congress to extend associates in the legislative, educational,
and expand the $8,000 first-time home buyer networking and leadership of NAHB with the
tax credit. intent of making the impact of associate
members greater than it has ever
NAHB is urging Congress to extend the tax credit been before.
for an additional year and make it available to all
buyers of a principal home, within certain
income limitations. Larry M. Stege, CGA, CGP
Digital Map Products
Houston, TX
Adopting this proposal would increase new and 2010 Associates Committee Chair
existing home sales by 383,000 and home starts
by 82,000, according to economists at NAHB.
It would create more than 347,000 jobs and
generate more than $16 billion in wages and $12
billion in business income, yielding $8 billion in
federal taxes and $3 billion for states and
localities. The cost to the federal government
would be about $30 billion.
33
SEPTEMBER
SURVEY SHOWS CREDIT WOES THREATEN
HOUSING RECOVERY
Nearly two-thirds of single-family home builders
are reporting a severe lack of credit for housing
production, threatening the fragile housing
recovery before it has time to take hold,
according to a new builder survey of acquisition,
development and construction (AD&C) financing
conducted by NAHB and released on Sept. 28.
Across the country, home builders and CONSTRUCTION, SAFETY & HEALTH
developers are reporting a deterioration in credit
availability and intensifying pressure on borrowers 2010 promises to be an active year for
with outstanding loans, said NAHB. the U.S. Occupational Safety and Health
Administration (OSHA). With a full regulatory
With the pending expiration of the $8,000 agenda, we expect that OSHA will be active
first-time home buyer tax credit, these challenges in promulgating significant rules to reduce
threaten to halt any positive developments occupational exposures to crystalline silica,
seen in the housing market in recent months. finalize a standard to protect workers who
enter confined spaces, and regulate both
big and small cranes in the construction
industry. In addition to OSHA being back in
the standards-writing business, OSHA has
announced that the agency will be shifting
the bulk of its resources from cooperative
programs to vigorous enforcement of
existing standards.
In light of these challenges, the NAHB
Construction Safety and Health Committee
is ready to ensure that any proposed OSHA
regulation takes into account the distinct
differences between residential-type
construction and heavy commercial
construction, that any OSHA rule is
technologically attainable, practical, feasible,
and cost-effective, and also to ensure that
the OSHA inspection and fine notification is
less intimidating for home builders.
Ray Rhodes
M & R Associates
Sanford, NC
2010 Construction,
Safety & Health Committee Chair
34
SEPTEMBER
EPA ASKED TO IMPROVE STORM WATER
MANAGEMENT REGULATION
As the U.S. Environmental Protection Agency
seeks to step up enforcement of the Clean Water
Act, NAHB has provided recommendations to
the agency to ensure that its increased focus on
the home building industry leads to improved
compliance with regulations that are consistent,
clear and reasonable.
PUBLIC AFFAIRS
EPA first needs to establish a baseline of how Promoting use of the first-time and repeat
many home building sites there are and how home buyer tax credits, along with other
many of them are in compliance, NAHB noted. housing industry-related legislation as it is
This will make it easier to put industry developed, will be a top priority for NAHB
compliance into perspective and to determine Public Affairs during 2010.
the effectiveness of new enforcement policies.
NAHB also asked for clarification on the rules We will also continue our ongoing effort to
themselves — especially on the kinds of water make sure that the public, the media, and
bodies that can be regulated, and why. policy makers understand housing’s vital
role in the economy.
NAHB is hopeful that EPA will consider these
recommendations to help the home building Helping advance NAHB’s regulatory and
industry comply with regulations that probably legislative agenda, particularly in relation to
shouldn’t even be in the Clean Water Act. AD&C financing, reform of current appraisal
practices and restructuring/reform of the
Storm water from construction sites is treated nation’s financial system will also be
as a point source — an end of pipe discharge a priority.
— but in reality, discharge from these sites is
non-point pollution, the association said. Additionally, NAHB Public Affairs will
continue to explore and utilize innovative
new media to disseminate its messages
to various broad audiences as quickly
and efficiently as possible.
And we will continue our work in
assisting the state and local associations
by providing regional interpretations of
national issues, news and events
impacting the housing industry.
Either directly or indirectly, all of these
efforts will reinforce NAHB’s stature as “the
voice of the housing industry” and will help
enable the association to more effectively
meet members’ needs and “build an
environment that reshapes and enriches
our communities.”
Bill Nolan
The Nolan Group
Altamonte Springs, FL
2010 NAHB Public Affairs
Committee Chair
35
DIRECT
FROM NAHB
For builders, the current market conditions are no game, and the stakes are nothing less than survival.
That’s why it’s critical to surpass the competition and master, or re-master, the fundamentals of
the business: cultivating good employees, holding a customer’s hand through the sales process,
controlling the job site, and building customer satisfaction. These are the basics that builders
keep saying they have to get back to. They’re critical processes that have to be practiced every
day until they’re so ingrained, they’re as natural as breathing.
NAHB members get the very best information, advocacy, education, and networking opportunities
in their Three-in-One Membership. When members join their local association, they automatically
become a full member at the state and national levels. That’s three memberships for the price of one.
NAHB offers plenty of resources to help each member make the most of their investment and
connect with the benefits they value most.
“I have developed my company into one of the most award-winning firms in the country, and
attribute this directly to what I’ve learned at NAHB and my local builders association. I budget for
membership every year and pay my dues without batting an eye. I highly recommend it.”
Donna Shirey, CGR, CAPS, CGP
Shirey Contracting, Inc.
“This is the best money I have ever spent. The information and resources provided by the Housing
Credit Group have helped me significantly reduce my utility allowances.”
Bobby Bowling, CEO
Tropicana Homes
“NAHB has advocated on behalf of remodelers for many years, especially on the issue of federal lead
paint regulation. Members like myself have given Congressional testimony, met with government
officials, and worked to bring remodelers’ concerns to the table. With NAHB’s advocacy and
communications staff, we’re strongly represented on issues old and new.”
Bob Hanbury, CGR
House of Hanbury
“We have always known that paying dues to our local association and NAHB are the best governance
and accountability investments we have ever made, but your assistance has given us returns on our
investment of dues paid for the past 34 years many times over.”
Marty, Bob & and all the members of the Mitchell & Best Team
In a letter thanking NAHB for help on a note sale
from a bank that was taken over by the FDIC
36
OCTOBER
WHITE HOUSE EYES EXTENDING HOME
BUYER TAX CREDIT
Amid growing concerns in the Administration
and Congress over worrisome prospects for
reducing the nation’s lengthening unemployment
lines and further strengthening the economy as it
moves tentatively toward recovery, Washington
turned a sharper focus last week on extending
NAHB MEMBER WINS ‘ULTIMATE
VOLUNTEER’ CONTEST ON ‘THE VIEW’
Home builder Tom Gipson, owner of Thomas
Gipson Homes, Inc. in Raleigh, N.C., has won
the “Ultimate Volunteer” contest on ABC
television’s “The View.” The competition
recognizes “someone who selflessly gives to
others, who asks for nothing in return and
the current $8,000 tax credit for first-time buyers inspires others to volunteer.”
beyond its Nov. 30 expiration date and
expanding it to a wider circle of principal A member of the HBA of Raleigh-Wake County,
home buyers. Gipson founded the nationwide Builder Blitz
program in partnership with Habitat for
Following some encouraging remarks from Humanity, and in 2006, he coordinated the
White House Press Secretary Robert Gibbs, construction of a record 459 Habitat homes
NAHB on Oct. 6 said that home builders were in a single week.
ready to work with the White House and
Congress to extend the credit and help bolster
the lackluster economy. 50+ HOUSING SALES SLUMP
The year ahead looks increasingly positive for
EPA PANEL REJECTS NEW METHOD TO the active adult housing market, according to
MEASURE WATER NUTRIENTS – OCT 12 09 participants at an Oct. 7 Web seminar
sponsored by NAHB’s 50+ Housing Council.
In a victory for NAHB members who have been But joblessness and tighter credit conditions still
seeking clearer environmental regulations, a new linger as constraints on sales and
method by the U.S. Environmental Protection construction activity, they said, and in the
Agency (EPA) for estimating the damage caused early stages of recovery prospective buyers
by an excess amount of nutrients in a body of will continue to be price-conscious and to
water is not based on sound science, according demonstrate restraint.
to a recent peer review decision.
“It’s not the time to run out and start great
An EPA Science Advisory Board said the developments at this moment,” cautioned
methodology, called conditional probability, does Margaret Wylde, president and CEO of
not establish any demonstrated environmental ProMatura Group, LLC, who led a discussion
gains from reducing nutrients. on prospects for the 50+ market. But, she said,
“there’s going to be a gradual pull out from
where we are now, and within the next two years
we will see a significant rebound.”
37
OCTOBER
500TH HOME ACHIEVES NATIONAL GREEN
BUILDING CERTIFICATION
The home building industry reached an important
milestone last week when the NAHB Research
Center provided National Green Building
Certification for its 500th project.
The certification recognizes new homes,
APPRAISAL GROUPS RESPOND TO NAHB
TESTIMONY
In an important step forward in resolving the
issue of faulty appraisals, appraiser organizations
responded last week to Oct. 7 testimony by
NAHB Chairman Joe Robson before the House
Small Business Committee.
remodeling projects and housing developments Robson told lawmakers that the use of foreclosed
that have met stringent benchmarks in energy, or short sale properties as comparables is
water and resource efficiency, indoor resulting in inappropriately low appraisals that
environmental quality and lot and site design. are effectively sinking one quarter of all
As part of this process, home owners are new-home sales right now.
educated by the builder to help ensure that their
homes operate as efficiently as they were built. To address this problem, the appraisal groups
said mortgage lenders and financial
institutions should:
WHITE HOUSE GIVES A BOOST TO • Seek the services of highly qualified appraisers
AFFORDABLE MORTGAGE FINANCE for complex appraisal assignments
In its continuing efforts to stabilize the U.S. • Recognize that sales concessions are as
housing market, the Obama Administration on important as the condition of a property to the
Oct. 19 announced a new initiative for state and credibility of the appraisal
local housing finance agencies (HFAs) that will • Provide sufficient time for the real estate
help support lower mortgage rates and expand appraiser to conduct the proper analysis of the
resources for low- and middle-income subject property and comparables
households to purchase or rent affordable homes.
• Promote communication between appraisers,
The initiative has two parts: a new bond purchase builders and real estate agents
program, through housing government-sponsored
enterprises Fannie Mae and Freddie Mac, to
fund home loans and finance rental production NAHB SOUNDS LEGISLATIVE ALERT ON TAX
at affordable rates; and a temporary credit and CREDIT EXTENSION
liquidity program to improve the access of HFAs
to liquidity for outstanding HFA bonds. With the expiration of the $8,000 first-time home
buyer tax credit just weeks away, NAHB stepped
This program could reinvigorate state HFA up its “Revive Housing, Restore America” campaign,
mortgage loan programs that have been dormant asking association members to participate in a
for the past two years, according to grassroots push for the extension and expansion
NAHB economists. of the home buyer tax credit.
NAHB has been in discussions with U.S. Members were encouraged to log on to
Treasury officials for some time about the need www.capitolconnect.com/builderlink to send a
to resuscitate HFA funding. letter to their individual lawmakers or call and
urge their senators and representative to extend
and expand the home buyer tax credit to create
jobs, reduce foreclosures and excess housing
inventories, and to push housing and the
economy on the path to recovery.
38
OCTOBER
TIGHT LENDING EXPECTED AT SMALL
BANKS FOR ANOTHER YEAR
Small builders who have seen the availability of
the credit they need to construct new homes
slow to a trickle at their local community banks
may have to wait a year or longer to see
financing restored to more normal levels,
according to an economist speaking at NAHB’s
NAHB LOSES FIRST VOTE ON FIRE
SPRINKLER MANDATE
Two NAHB proposals that would have removed
requirements for fire sprinkler systems in
one-and two-family homes from the 2012
International Residential Code (IRC) lost the first
battle last week when the Residential Building
and Energy Committee voted seven to four to
Fall Construction Forecast Conference in keep this mandate in the main body of the code.
Washington, D.C. on Oct. 21.
NAHB will continue to work on behalf of
The state of the banking industry is better than affordability and technical effectiveness in
expected considering everything the industry addressing this issue, said NAHB Chairman
has gone through “and how scary it was at Joe Robson.
the beginning of the year” when the economy
appeared to be on the brink of financial collapse,
said Douglas Elliott, a Brookings Institution fellow. HIGHER CONFORMING LOAN LIMITS
EXTENDED THROUGH 2010
The larger, national banks “are going to make it
through this in significantly better shape than we In a victory for NAHB, a provision that will extend
would have thought six months ago,” he said, the loan limits for mortgages issued by the
and have been able to offset some of their loan Federal Housing Administration and purchased
losses by stepping up their core earnings. by Fannie Mae and Freddie Mac through the end
of next year was included in a continuing
However, smaller banks are exposed to possible resolution approved by the House and Senate
“bad results” in commercial real estate, he said, on Oct. 29.
which accounts for half of the lending at many of
these institutions. On Oct. 26, NAHB, along with the National
Association of Realtors® and Mortgage Bankers
While not a major threat to the banking system, Association, sent a letter to House and Senate
which has seen the assets of big banks grow leaders urging Congress to extend the current
from a two-thirds to three-fourths share of the higher loan limits for Fannie Mae, Freddie Mac
industry over the past decade, it is having an and the FHA that were due to expire at year-end.
impact on small business loans, Elliott said.
The loan limits will continue to be capped at
$729,750 in high-cost markets. Those caps
COUNCIL RENAMED ‘PROFESSIONAL would have expired on Dec. 31 if Congress had
WOMEN IN BUILDING’ not taken action.
The NAHB Women’s Council recently changed
its name to Professional Women in Building to
better reflect its members and mission.
39
NOVEMBER
NAHB BEGINS ROLL-OUT OF NEW LOGO,
BRANDING STRATEGY
NAHB has begun rolling out a sophisticated new
branding strategy that was adopted by the board
of directors earlier this year.
The most readily visible element of the branding
BROKEN HOME FINANCE SYSTEM
DUE FOR MAJOR REVAMPING
With Fannie Mae and Freddie Mac in
conservatorship and the housing finance market
in turmoil, housing finance experts participating
in a recent NAHB webcast offered markedly
different proposals for revamping the regulatory
strategy is the association’s new logo, which will structure of the government sponsored
gradually replace NAHB’s previous eagle logo. enterprises (GSEs) and defining what new role
they should play in supporting mortgage market
Implementation of the new branding strategy and liquidity and addressing affordable
logo marks the culmination of more than two years housing needs.
of work with expert consultant, FutureBrand.
The only unanimous conclusion was that the
The extensive project involves retooling the status quo cannot be maintained.
visual identity system that applies to all of
NAHB’s numerous constituency groups — from “There are many possibilities, ranging from
single-family home builders to property managers, extremes such as complete privatization or
remodelers, multifamily builders and land operation as government agencies, to a number
developers, as well as product manufacturers of public-private versions between those
and service providers. extremes,” said NAHB Chairman Joe Robson,
who moderated the webcast. “NAHB wants to
go to the table with sound ideas that will
TAX CREDIT STIMULATES HOUSING produce the best possible long-term outcome
AS EXPECTED for home buyers and home builders.”
Recent housing data demonstrates the
stimulative power of the first-time home buyer
tax credit.
As the Nov. 30 deadline for the tax credit drew
near, data from the third quarter of 2009 was
especially compelling in showing the credit’s
impact on the housing market. Knowing that
they needed to settle soon in order to qualify for
the credit, first-time home buyers helped push
existing home sales to a seasonally adjusted
annual rate of 4.9 million in September, their
strongest monthly pace since July 2007.
That helped boost quarterly existing home sales
by 45% over the second quarter.
40
NOVEMBER
HOME BUYER TAX CREDIT, NEW
NAHB OPPOSES HOUSE HEALTH
CARE PLAN
While members of the House of Representatives
last week were embroiled in last-minute
deliberations over H.R. 3962, the Affordable
Healthcare for America Act, NAHB sent a
letter to the legislators supporting their efforts
NOL RULES SIGNED INTO LAW to improve access to quality and affordable
health care, but stating strong concerns over
In a major victory for NAHB that will boost the the impact this legislation would have on home
fledgling housing recovery and help struggling builders and their employees.
business owners nationwide, Congress has
approved legislation that will extend the The massive bill to overhaul the health care
first-time home buyer tax credit beyond its Nov. industry was passed on Saturday, Nov. 7, by a
30 deadline and expand it to a wider group narrow vote of 220 to 215.
of home buyers. The bill also provides relief
to cash-strapped home builders by providing NAHB said it was specifically opposed to the
broader tax benefits for businesses with net broad employer mandate imposed by the bill
operating losses (NOLs). as the vehicle to provide health insurance or
universal coverage to all employees. The letter
The legislation, which was signed into law by stated that the employer mandate and minimum
President Obama on Nov. 6, will extend the benefit requirements stipulated in the legislation
$8,000 credit for first-time home buyers for would remove “the flexibility for employers
sales contracts entered into by April 30, 2010 to provide health plans that best fit the needs of
and closed on by June 30. It has been expanded their workforce.
to include a new $6,500 credit for owners of
existing homes who are purchasing a new
principal residence. Existing home owners can NAHB LOOKS AT STEPS TO ENSURE
claim the $6,500 tax credit if they have lived in APPRAISERS AREN’T IN THE DARK
their principal residence for five consecutive
years out of the last eight. IIn round two of NAHB’s appraisal summit in the
National Housing Center in Washington, D.C.
In more good news, the income on Nov. 3, participants honed in on what can be
eligibility limits to claim the full credit amount done to enable builders, lenders and real estate
have been raised to $125,000 for individuals agents to provide appraisers with information they
and $225,000 for married couples. should know in determining the value of a home.
NAHB’s consumer-oriented Web site,
www.FederalHousingTaxCredit.com, provides Following up on the meeting — which assembled
complete details on the enhanced home buyer leaders from major appraisal, lending and housing
tax credit. agencies and federal housing and banking
regulators — NAHB will be moving ahead to
NAHB has launched a set of resources at clarify how builders and others can communicate
www.nahb.org/taxcreditresources to help with appraisers under the Home Valuation Code of
association members understand and promote Conduct (HVCC) that went into effect last spring.
the new tax credit. “At the end of the day, a fair appraisal is what all
of us want,” NAHB Chairman Joe Robson told
the summit.
41
NOVEMBER
LEGAL ACTION GRANTS SUPPORT
MITIGATION, WETLANDS CASES
During the NAHB Fall Board of Directors meeting
in Chicago in October, the NAHB Legal Action
Committee recommended grants from the
association’s Legal Action Fund to support cases
involving farmland mitigation, the federal Clean
FEW SUBCONTRACTORS AWARE OF THE
EPA’S NEW LEAD PAINT RULE
Few subcontractors associated with home
building and remodeling are aware of the U.S.
Environmental Protection Agency’s new rule, set
to go in effect in April 2010, that will govern
remodeling activities in homes and
Water Act and a man-made upland ditch, and child-occupied facilities built before 1978 that
storm water issues. are more likely to contain lead.
The fund was created to ease the burden on During an NAHB meeting at the National
NAHB members and home builders associations Housing Center in Washington, D.C., to
wishing to pursue expensive and time-consuming discuss concerns about the rule last week,
cases involving nationally significant issues or representatives of several remodeling-related
legal matters commonly faced by builders trade associations told NAHB staff members
and developers. that many of their members were unaware of the
EPA’s new Lead: Renovation, Repair and
Painting Rule.
A MESSAGE FROM NAHB CEO ABOUT
THE TAX CREDIT VICTORY The meeting highlighted the importance of
EPA’s planned public awareness campaign
NAHB has posted a video message from intended to underscore the importance of hiring
NAHB CEO Jerry Howard to its membership firms certified to do work in so-called “target
about the Worker, Homeownership and Business housing” — homes built before 1978 and
Assistance Act of 2009 that was signed into law occupied by pregnant women and children under
by President Obama on Nov. 6, and NAHB’s role the age of six.
in getting this important legislation enacted.
The video is available to NAHB members only.
NAHB members and staff members of affiliated NAHB TAX CREDIT RESOURCES UPDATED
HBAs can view the video by logging on to the TO DRIVE HOME SALES
NAHB Web site and clicking here.
With the extension and expansion of the home
buyer tax credit signed into law by President
Obama on Nov. 6, NAHB updated its
comprehensive online resources to help the
federation promote the two tax credits — an
extended $8,000 first-time home buyer tax credit
and a new $6,500 repeat buyer tax credit —
immediately to consumers.
The resources are posted at
www.nahb.org/taxcreditmaterials and include
materials to help members promote the credit to
potential home buyers.
42
NOVEMBER
FIRST ‘EMERALD’ REMODEL
COMPLETED IN PHOENIX
A newly renovated home in Phoenix has become
the first remodeling project in the nation to
receive Emerald certification, the most stringent
achievement level in the National Green
Building Standard.
PROMOTE GREEN BUILDING LOCALLY WITH
NEW PR RESOURCES
The NAHB green building toolkit has been
extensively updated and new resources have
been created for home builders associations and
members interested in promoting green building
in their local community.
The 1,600-square-foot, 70-year-old ranch house The resources are broken down into two different
is in the Pierson Place Historic District near the categories — general green building and
city’s new light rail line. It is the first in a series NAHBGreen affiliated programs. The general
of homes being renovated by Green Street green building public relations materials include
Development, a Phoenix home building a media fact sheet, a consumer focused brochure,
company specializing in environmentally a press release template and talking points,
sensitive design and construction. All are among others. These resources are available to
planned to meet requirements of the standard. any HBA or NAHB member regardless of their
affiliation status with NAHBGreen.
“This project is an excellent example of what
home builders and remodelers can accomplish
with the National Green Building Standard,” said
Joe Robson, chairman of the National Association PAVILION AT IBS TO HELP NAHB MEMBERS
of Home Builders and a builder and developer in LINE UP FINANCING
Tulsa, Okla.
Responding to the severe financing challenges
The National Green Building Standard is a rating that many NAHB members continue to experi-
and certification system for green residential ence when they attempt to line up credit for
construction developed by NAHB and the viable new and existing projects, the upcoming
International Code Council and approved by the International Builders’ Show® in Las Vegas
American National Standards Institute. It is will offer a Partnership Pavilion where
administered by the NAHB Research Center, association members can discuss their funding
which also certifies local inspectors around needs with representatives from a variety of
the country. capital sources and financing advisors.
“If we are going to significantly reduce “The severe lack of available credit for
residential water and energy use, we need to acquisition, development and construction
retrofit and renovate the more than 120 million (AD&C) financing constitutes a significant threat
homes that use excessive amounts of these to thousands of home building and development
precious resources,” Robson said. “I’m proud of companies, as well as to the immediate and
all the services we offer through our broad-based long-term future of the housing industry,” said
green building initiative, NAHBGreen, particularly NAHB Chairman Joe Robson.
the third-party certification of homes using
the standard.” With roughly 80% of all new housing in the U.S.
built by NAHB members, and with 95% of the
association’s members acting as the key
decision makers within their business, “It just
makes sense to provide a confidential setting
within the IBS for such professionals to meet
one-on-one with potential new backers for their
projects,” he said.
43
NOVEMBER
BUILDERS WIN SOME, LOSE SOME
IN 16-DAY CODE HEARINGS
During 16 grueling days of hearings on subjects
as diverse as energy efficiency, wall bracing,
accessibility and fire sprinklers, the International
Code Council recently took action on 2,345
proposed changes to its 13 construction codes.
BUILDER CONFIDENCE CONTINUED TO SAG
IN EARLY NOVEMBER
Surveyed in November for the NAHB/Wells Fargo
Housing Market Index (HMI) prior to enactment
of an extension and expansion of the home
buyer tax credit, single-family home builders
remained guarded in their assessment of
The Final Action Hearings for these proposals are the marketplace. The index showed builder
set for May and September of next year. confidence last month unchanged from
October’s low level, with the overall HMI
Staff members from NAHB’s Construction, holding flat at 17 and the component gauging
Codes and Standards Department testified on sales expectations for the next six months rising
more than 900 of the proposed changes at the two points to 28.
ICC Code Development hearings. NAHB was
also represented by 20 members on 12 of the “When the HMI survey was conducted at the
ICC Code Committees, including eight on the beginning of last month, home builders were
two committees overseeing changes to the facing the imminent expiration of the $8,000
International Residential Code (IRC). first-time home buyer tax credit at the end of
November, with no guarantee that this valuable
These code committees make the initial buyer incentive would be extended,” said NAHB
decisions to approve or reject proposed changes Chairman Joe Robson. “Now that Congress has
after listening to the arguments presented at the done its job by both extending the tax credit into
public hearings. Their actions are critical to the next year and expanding eligibility for it among
final outcome on any given proposal. potential buyers, we are very hopeful that this
will have the intended stimulative effect on sales
Last June, NAHB submitted 54 proposals. activity going forward.”
Among them were proposals to add prescriptive
provisions that would allow builders to achieve a “November’s report confirmed that home
30% increase in energy efficiency over the 2006 builders and buyers were in something of a
International Energy Conservation Code (IECC). holding pattern early in the month as the
anticipated expiration of the tax credit drew near
Other NAHB proposals dealt with tradeoffs for and congressional action had not yet taken place
construction methods and materials in the to address this,” confirmed NAHB Chief
installation of a fire sprinkler system and with Economist David Crowe. “Meanwhile, the
provisions related to wall bracing to resist wind challenges that builders are facing in obtaining
and earthquakes. credit for new housing production and
appropriate appraisal values for their homes
continued to worsen. These issues still present
a very worrisome problem that is weighing down
prospects for a sustained housing
market recovery.”
44
NOVEMBER
NAHB SEEKS MEMBER INPUT ON HOUSING
FINANCE REFORM
With Congress gearing up to consider restructuring
the housing-related government sponsored
enterprises (GSEs) Fannie Mae, Freddie Mac
and the Federal Home Loan Banks, NAHB is
seeking input from association members on
IBS OFFERS VIRTUAL TOURS
OF NEW AMERICAN HOME
The most exciting and innovative products and
technologies from The New American Home
will be on display at the Las Vegas Convention
Center for the International Builders’ Show
on Jan. 19-22.
reforming the housing finance system.
A special exhibition, “Vision 2010: The New
To provide a perspective on the possibilities for American Home,” will feature a narrated,
GSE reform and to educate home builders and state-of-the-art virtual tour of the 2010 home,
others about what could be in store for the as well as an exhibition of the most innovative
housing finance market, NAHB held a products going into the showcase home.
groundbreaking Webcast on Oct. 27 in which
numerous proposals for revamping the GSEs’ The virtual tour and product showcase take
regulatory structure were discussed. the place of on-site tours of The New American
Home, which will not be completed before the
NAHB encouraged members to provide Builders’ Show begins. Like many building
responses to the following questions so that it projects around the country, The New American
can accurately present industry views in its Home 2010 is a victim of the credit crisis that is
upcoming lobbying efforts in Congress: hammering the home building industry
nationwide. It is the first time in the 27-year
1. What is the appropriate role for the federal history of the program that the home will not be
government in support of the primary and ready on time.
secondary mortgage market? Should the
government implicitly or explicitly guaranty
obligations of the GSEs? Should there be any
guaranty at all?
2. What is the appropriate structure for the
secondary mortgage market to ensure a
reliable supply of affordable and available
mortgage credit?
3. Should the role and function of the Federal
Home Loan Banks be altered as Congress
considers changes to the role and structure of
Fannie Mae and Freddie Mac?
45
NOVEMBER
‘OPPORTUNITY KNOCKS’ BROCHURE
UPDATED WITH NEW TAX CREDITS
NAHB has revised the popular consumer
brochure “Opportunity Knocks for Home Buyers”
to include information on the extended $8,000
first-time home buyer tax credit, the new $6,500
repeat buyer credit and the increased income
limits — which give many more Americans the
opportunity to take advantage of a tax credit for MEMBERSHIP
buying a home.
Last year we saw our membership drop
to 180,492 and retention fall to 66.2%.
The four-color, four-page brochure also provides
We are encouraged that our national
real examples of typical tax savings through the
retention rate leveled off in the last quarter of
first five years of homeownership, explains the
2009. With reports that the housing market
power of leveraging and describes other
may have reached bottom and is beginning
advantages of owning a home.
to slowly recover in many markets, there is
an excellent opportunity for NAHB to get out
The PDF brochure can be downloaded at
in front of our membership challenge, and
www.nahb.org/opportunitybrochure.
we are taking the steps necessary to make
You must be logged in with your user
sure NAHB is positioned to make the most
name and password to access this page.
of the opportunities in front of us. 2009 was
all about supporting our local associations
as they work to mitigate the membership
OBAMA HOME ENERGY-EFFICIENCY
loses caused by this downturn.
EFFORT COULD BOOST RECOVERY
Your Membership Committee has worked
hard to provide them with every tool
NAHB on Dec. 15 commended President Barack
possible to aid in these efforts and we will
Obama as he proposed a new initiative to create
continue push forward with new tools and
jobs and make today’s homes more
resources for the future.
energy-efficient.
In 2010 we will launch the NEW Subscription
The President called on Congress to extend
Based Touch Program. This program
energy-efficiency tax credits for home owners as
represents the next generation in NAHB’s
part of an $8 billion effort to reduce energy use.
membership marketing by creating an actual
This is the kind of thinking that is going to get
partnership between NAHB and the local
America back to work — and make a big
association to facilitate the communication
difference in many home owners’ monthly utility
of benefits and services via local channels.
bills,” said NAHB.
This service will allow small to mid-sized
local associations to participate in a best
practice that has, until now, only been
available to the largest and most
sophisticated associations. Members will
receive a variety of communications
throughout the year from their local
associations, co-branded with NAHB and
incorporating NAHB information
where appropriate.
Ann M Garvey, CGA, CSP
Eaton Area Habitat for Humanity
Charlotte, MI
2010 Membership Committee Chair
46
DECEMBER
BIPARTISAN HOME ENERGY EFFICIENCY
BILL INTRODUCED IN HOUSE
With the strong backing of NAHB, Reps. Dave
Reichert (R-Wash.), Ron Kind (D-Wash.),
Earl Blumenauer (D-Ore.), Geoff Davis (R-Ky.),
Tom Perriello (D-Va.) and Chris Lee (R-N.Y.) have
introduced H.R. 4226, the Expanding Building
NAHB URGES SENATE TO OMIT ‘CARRIED
INTEREST’ PROPOSAL
NAHB last week sent a letter to Senate leaders
urging them to include an extension of the Low
Income Housing Tax Credit (LIHTC) exchange
program and the New Energy Efficient Homes
Credit (45L credit) in pending legislation that
Efficiency Incentives Act of 2009. NAHB worked would extend popular tax breaks due to expire at
closely with the lawmakers as they crafted the year-end.
comprehensive package of energy efficiency tax
incentives designed to reduce energy costs for The letter also voiced strong opposition to a
families and businesses, promote innovation and change in the taxation of “carried interest” as a
conservation and create future energy jobs. revenue offset to pay for the expiring tax breaks.
The bill contains five key tax incentives for This change would have a significant impact on
energy-efficient building: both existing and future commercial and
multifamily real estate properties and is
• New energy efficient home tax credit
opposed by NAHB.
• Deduction for energy-efficient
commercial buildings
• Residential property energy credit MORE THAN 575 STUDENTS APPLY FOR
SCHOLARSHIPS TO ATTEND IBS
• Home energy rating credit
• Home performance auditor certification credit More than 575 college, high school and technical
school students studying residential construction
or a related field have applied for National
BUILDERS GET FREE SALES AND Housing Endowment scholarships to attend the
MARKETING ADVICE AND HELP AT IBS 2010 International Builders’ Show next month.
Most of the students are between two and four
To help builders maximize their marketing and years away from beginning careers in the home
generate sales in today’s difficult housing building industry.
market, the National Sales and Marketing
Council and the Institute of Residential Marketing
will be offering a free advisory service in a lounge NAHB HELPS MAKE WATERSENSE MORE
on the exhibit floor at the International Builders’ WORKABLE FOR BUILDERS
Show in Las Vegas.
With last month’s release by the U.S.
IBS attendees are invited to meet with sales and Environmental Protection Agency of final
marketing experts and discuss their individual specifications for its WaterSense label for new
sales and marketing issues. homes, the voluntary water-efficiency program is
now up and running.
As the result of comments from NAHB about
earlier drafts of the specifications, the new
program is more workable for home builders — a
win for the industry and, more importantly, for
new home buyers and communities interested
in saving more water, said Dwight M. “Sonny”
Richardson, chairman of the NAHB Construction,
Codes and Standards Committee.
47
DECEMBER BUILDERS WARN OF DEBILITATING
PROVISION IN HEALTH CARE BILL
As Congress moves to craft a final health care
bill in the coming weeks, NAHB is leading the
fight with other like-minded business groups to
strip a jobs-killing provision in Senate legislation
H.R. 3590 that would derail the fragile housing
and economic recovery by placing a major
BUILDING SYSTEMS financial burden on builders. The measure was
approved by the Senate on Christmas eve by a
As we continue to navigate the most
60 to 39 vote.
challenging economic climate since the
Great Depression, we are beginning to see
Language offered by Sen. Jeff Merkley (D-Ore.)
positive signs of recovery in the housing
and slipped into the Senate health care
market. The industry has a long way to go,
legislation at the last minute unfairly targets small
and it may look completely different coming
construction firms with more than five workers by
out of this downturn.
requiring them to provide health care coverage or
face stiff fines. Meanwhile, small businesses in all
Enter systems-built technologies and the other industries would be exempt from providing
members of NAHB’s Building Systems mandatory health coverage if they employ 50
Councils. Our members are constructing workers or less.
homes to the same code standards and
quality levels as site-built construction, in NAHB has been alerting lawmakers that this
less time and in controlled environments. In requirement is patently unfair and dangerous for
tough economic times, this is reshaping the an economy that is only beginning to recover
residential construction industry. Custom from financial collapse.
designed systems-built homes arrive at
the construction site engineered to precise Immediately after the Senate approved H.R.
specifications and take the guesswork out 3590, NAHB sent a letter to every senator
of completion times, reduce costly weather expressing disappointment that the narrow
exposure, save on construction financing, employee mandate provision targeting the
reduce the amount of construction waste for construction industry had been included in the
builders and significantly reduce the health care legislation. The letter urged all
possibility of job site material theft. senators to work with House and Senate
conferees to strike this provision from the
All the while, building systems provide an final measure.
environmentally-friendly and sustainable
form of building construction. NAHB lobbyists and grassroots members have
been working diligently since Christmas to reach
I invite you to connect with a BSC member out to more than a dozen Democrats in the
to find out how building systems are Senate and more than 50 Democratic centrists in
changing the way homes are built.” the House to explain how this provision threatens
the viability of countless small home builders
across the nation and to call on their support to
Victor DePhillips strip this requirement from the final bill.
Signature Building Systems
Moosic, PA
2010 NAHB Building Systems
Councils Chair
48
DECEMBER
NAHB LAWSUIT ON SANTA CRUZ RIVER TO
REMAIN IN D.C. COURT
A preliminary motion on Dec. 30 by the U.S.
District Court in Washington, D.C. sided with
NAHB in a lawsuit against the Environmental
Protection Agency with major ramifications for
federal regulation of bodies of water around the
A HAPPIER NEW YEAR FOR HOUSING, BUT...
The coming year promises to be a happier one
for both the economy and housing. More pain
from a battered and bruised U.S. economy may
lie ahead, but the general trajectory has turned
from down to up, according to NAHB’s latest
economic analysis.
country under the Clean Water Act.
The worst is over, but the economy, and housing
NAHB is challenging the government’s in particular, will remain subpar and unable to
determination that the Santa Cruz River is a perform at normal, healthy levels.
traditional navigable body of water, and the EPA
sought to move the case to Arizona, where the The national economy will continue to gain
river is located. strength throughout the year, but at a slower
pace than is characteristic.
NAHB wanted the case decided in Washington,
where the EPA’s decision was made, and the Coming off an estimated modern historical low of
court agreed. “The questions of federal law and 555,000 total starts in 2009, housing production
alleged procedural violations at issue in this case should rebound by about 25% this year to just
have broad implications for the application of under 700,000 units, according to NAHB
the [Clean Water Act] nationwide. …The validity projections
of the determination carries significance beyond
Arizona,” the court said.
BUILDERS CALL EPA’S 61-PAGE
STORMWATER SURVEY A BAD IDEA
CARRIED INTEREST TAX HIKE A THREAT TO
MULTIFAMILY HOUSING A proposal from the Environmental Protection
Agency to send builders and developers a
Proposals to increase the tax on capital gain that 61-page survey to garner extensive technical
is earned as part of a carried interest would have and financial information on how they manage
a particularly damaging impact on multifamily stormwater on their job sites is an extremely bad
housing and would result in lost jobs and idea, NAHB recently told the agency.
reduced property tax revenues for state and local
governments, according to recent analysis by In 40 pages of detailed comments, NAHB told
economists at NAHB. the regulators that the proposed Information
Collection Request in anticipation of a proposed
Legislation passed by the House in December federal post-construction stormwater management
— H.R. 4213, the Tax Extenders Act of 2009 rulemaking is “premature, lacks justification, is
— would make carried interest paid as a capital extremely burdensome and will not result in
gain subject to ordinary income tax rates of up to useful data.”
35%, up sharply from the current rate of 15%.
NAHB has consistently opposed changing the In its current form, the survey is expected to take
taxation of carried interest, pointing out that it more than 40 hours to complete, according to
would impose a multi-billion dollar tax increase the EPA’s own estimates.
on real estate at a time when the industry is
struggling to emerge from the worst downturn
in decades.
49
THE
PRIMARY REASON ATTENDING SHOW
2007 Show – Orlando, FL
Exhibits 64%
Networking 18%
Education 11%
INTERNATIONAL
BUILDERS’ SHOW®
IN THEIR WORDS
“What did you like most about the
International Builders’ Show?”
“There is always something new I can implement
into my homes.”
2008 Show – Orlando, FL
“Opportunity to attend classes taught by market
Exhibits 61% leaders to gain new and creative sales and
Education 15% marketing ideas.”
Networking 12% “The amount of exhibits and number of people
that attend. For me it was a wonderfully large
2009 Show – Las Vegas, NV amount of information to take in and apply to my
Exhibits 60% own business in one way or another, and lots of
my fellow builders to talk “shop” with.”
Education 17%
Networking 13% “This show was huge for my business and my
career. I found a lot of products that my local
vendors or trade contractors know nothing about
TOP 3 EDUCATION TRACKS ATTENDEES but that my clients request info on. I gained so
WERE MOST INTERESTED IN much product knowledge across the board.
Now I feel as if I have so many more resources
2007 Show – Orlando, FL available to me. I can’t brag enough about what I
Architecture & Interior Design - 15% gained from attending this show and I can’t wait
until next year.”
Sales & Marketing – 13%
Building Systems – 12% “I love how jazzed this convention gets you
about the building industry. Even in these tough
economic times, they are showing new
2008 Show – Orlando, FL innovative building techniques and addressing
Green Building – 28.6% the solutions in their educational seminars.”
Sales & Marketing – 17.7% “It was a tough show to be at this year with the
Organization & Business Management – 8.9% economy in such a mess, but I think the best
thing was that this group bands together to
discuss ways to improve our situation and we
2009 Show – Las Vegas, NV don’t just have a pity party. Good Federation
- Good Strength!”
Green Building & Sustainability – 25.2%
Sales & Customer Focus – 18.8% “Loved the Spike Party. Also always enjoy the
Architecture, Design & Community smaller vendors who are offering new technology
Planning – 13.4% and products.
“I really liked the smaller companies. My goal
was to find 10 new products I liked and would
use, and the smaller companies with their niche
markets really did great.”
50
“Do you have any suggestions “I had a little difficulty navigating through the
different guides. The orientation session helped.”
to improve the International
Builders’ Show®?” This year the orientation was open to all
attendees not just those attending IBS for
We’ve listened to your requests! the first time.
“Have seminars rated by content-beginners, “The classes were too spread out. Walking from
advanced, etc. Some of the topics sound different concourses with classes overlapping
wonderful but then a few minutes into the was frustrating, and a VERY LONG WALK, the
presentation you find they are so simple that “tracks” should have been in the same area.”
I’ve wasted my time and could have attended
something that gave me real information At the 2010 IBS three tracks had dedicated
and training.” rooms and all the of the 2011 educations
sessions will be located in the same building.
All educational sessions are now coded as
Novice, Intermediate or Advanced. “Architects now have to have HSW Credits for
continuing education requirements for licensing
“A system to efficiently walk the show floor to in many States. Why not have approved courses
see what I need to see.” geared towards that, even if it’s from the
Builder’s point of view?”
The My Show Planner on the Builders’ Show
website and the IBS mobile app are great tools This year 56 education sessions were approved
to help attendees plan which exhibitors they for AIA continuing education credit.
want to see and to locate companies on the fly.
“Try to find ways to cut the cost of attending for
“It would be nice if the Committee Meetings and members of NAHB. When times are bad, as they
Board Meetings did not conflict with the show. It are now, it is hard to justify spending that kind of
is impossible to take full advantage of the show money for food and cost of attending.”
and fulfill meeting obligations at the same time.”
The 2010 Show registration fees were lowered
We know it’s always tough to experience for NAHB members.
all the show has to offer and fulfill your
responsibilities as an NAHB member. For the “I would greatly appreciate a printed version of
past few years, there have been no committee the power point presentations at the seminars.
meetings on the second day of IBS to allow I attended almost every time slot of seminars and
members time on the floor. only received two power point handouts.
Some of the instructors emailed me the
“Let more of the builders know about the presentations (which works too). The other thing
student competition and invite them to watch. I would suggest is to have less seminars but have
They are wonderful!” them offered more than once. There were lots of
classes I would have liked to have attended but
Some of the presentations from the 2010 were offered at the same time as another class.”
HBS student competition will be available to
view online. We are working with speakers to stress the
importance of providing handouts to our
attendees. We will continue to improve this.
51
IBS STATISTICS
YEAR-OVER-YEAR INTERNATIONAL
BUILDERS SHOW® PERFORMANCE
52
LOOKING AHEAD
As NAHB’s chairman in 2010, my first priority will be ensuring that NAHB
continues to do an exemplary job of meeting members’ needs in a difficult
business environment. Even though the market has finally started to turn around,
the housing recovery is fragile and uneven. Members still confront extraordinary
challenges on a daily basis, and they are counting on NAHB to represent their
interests on a wide range of important legislative and regulatory issues and to
provide the services and products that will help them succeed.
While this task won’t be easy, I am confident that NAHB will succeed. It has been almost seven
decades since NAHB was established, and in that time we have developed and maintained a
tradition of excellence that is unparalleled.
We will be focusing on many issues in 2010 and will be working to:
• Ensure that builders have access to AD&C financing.
• Ensure that appraisals accurately reflect market conditions and are not distorted by
foreclosures, short sales and other distressed sales.
• Ensure that the public and home builders have all the information that they need to take best
advantage of the first-time and repeat home buyer tax credits.
• Ensure that regulatory and other constraints imposed by government do not hinder or
derail the fragile recovery.
The chairman has a vital role in steering the ship, and I am very proud to be at the helm in 2010.
But make no mistake about it, the dedicated members and tremendous staff are the foundation of
NAHB’s strength. Collectively, we have been able to adjust to the worst housing market in a
generation, and moving forward, we are working to shape the best possible outcome for our
members and our industry.
Bob Jones
2010 Chairman of the Board
Bloomfield Hills, Mich.
53
NAHB’S CERTIFICATION AND DESIGNATION PROGRAMS
NAHB Education had a very busy year with 15,000 registrants attending over 1,100 classes, and
more than 4,000 graduates earning NAHB professional designations.
A NAHB Designation says a lot about you. Professional designations offer excellent opportunities
to improve your skills, advance your career, and be recognized for your commitment to professional
growth. NAHB has the most targeted curriculum, accomplished teachers and widely respected
education opportunities in the business. Start getting a designation now so you’ll be ahead of the
competition in the future.
Certified Active Adult Specialist In Housing (CAASH) Graduate Master Builder (GMB)
Certified Aging-In-Place Specialist (CAPS) Graduate Master Remodeler (GMR)
Certified Graduate Associate (CGA) Housing Credit Certified Professional (HCCP)
Certified Graduate Builder (CGB) Housing Credit Certified Professional (HCCP)
Certified Graduate Remodeler (CGR) Master Certified New Home Sales Professional (Master CSP)
Certified New Home Marketing Professional (CMP) Member, Institute of Residential Marketing (MIRM)
Certified New Home Sales Professional (CSP) Certified Green Professional (CGP)
The following designations are now being managed by the Associated Builders and Owners of New York.
Certified Leasing Professional (CLP) Advanced RAM
Registered in Apartment Management (RAM)
Distance Learning is Taking Off
NAHB is now fully engaged in providing distance learning educational opportunities, and provided
7 webinars during 2009, and is on track to more than double that in 2010 with 18 webinars and 6
just-in-time audio seminars. To learn more about NAHB’s e-learning opportunities, go to
www.nahb.org/elearning.
2010 NAHB CONFERENCES, TRADESHOWS AND TOURS
NAHB delivers conferences and meetings that provide a wealth of new perspectives. Our members
and non-member attendees come together to create success with their colleagues from around
the country. With NAHB’s high-level education and networking opportunities, builders and other
members of the housing community are elevating the industry to new heights. Come to a conference
and get new perspectives on business, technique, products, the customer and you. No matter how
you look at it, NAHB delivers.
Building Systems Councils Log Home Council President’s Tour, March 28-30, 2010, Boise, ID.
The 2010 tour brings lean manufacturing into sharp focus with an inside look at three exceptional
facilities: MotivePower, Woodgrain and PrecisionCraft Log & Timber Homes. Attendees will get a
first hand look at how these companies use the smartest methods and most efficient means of
production to deliver quality products—and get great ideas to take back to their own facilities.
2010 Spring Board of Directors Meeting, Washington, D.C. April 17-24, 2010
NAHB’s Board of Directors consists of more than 2,000 members representing every U.S. state.
The Board of Directors meets three times each year: Spring, Fall, and during the
International Builders’ Show®.
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2010 Legislative Conference, Washington, DC April 21, 2010
This annual conference provides an ideal opportunity for members to share their concerns on
housing-related issues with lawmakers on Capitol Hill. Especially in these challenging times, your
participation can make a huge difference as various interest groups compete to push their agendas in
Washington. A strong builder turnout on April 21 will certainly send a powerful message to members
of Congress that housing MUST remain a top national priority!
Spring Construction Forecast Conference & Webcast, April 29, 2010, Washington, DC
Get the facts, insight and analysis you need straight from the voice of the housing industry.
This semi-annual gathering of the country’s leading economists and finance experts is your best
resource for the latest forecasts on housing starts and other economic bellwethers
of the housing industry.
National Green Building Conference, May 16-18, 2010, Raleigh, NC
Get contacts, tools and ideas that are good for both the environment and your bottom line.
The NAHB National Green Building Conference is the only national conference targeted to green
building for the mainstream residential building industry. Network with designers and suppliers,
attend exceptional education sessions and develop the skills you need for profitable green building.
National Membership Day, May 25, 2010, Nationwide
While having a healthy and robust membership is the keystone to every initiative throughout the year,
the month of May is a time for all members to actively bolster the roster and participate in local
association membership drives. Members who participate in National Membership Day activities will
be rewarded with prizes and double Spike credits.
Executive Officers Council Seminar, August 4-7, 2010, Santa Fe, NM
The Executive Officers Council Seminar provides high-level association management education and
motivation specifically related to the home building industry. At the 2010 EOC Seminar, NAHB’s
Executive Officers will meet and connect with their fellow EOs from around the country and share
best practices, successes and plans for the future.
2010 Fall Board of Directors Meeting, New York, N.Y. September 22-26, 2010
Fall Construction Forecast Conference & Webcast, October 27, Washington, D.C. Find out what’s
happened so far in 2010 and what the rest of the year has in store. Join in to discuss:
• What steps should builders and others take now?
• Will home prices still be dropping?
• How should builders price to be consistent with the competition?
• Is now the time to buy land?
Sign up at www.nahb.org/notifyme to be notified when registration opens and receive information
about the event.
Building Systems Councils SHOWCASE, November 2010, New Orleans, LA
SHOWCASE is the only national event for the entire systems-built industry. It’s where building
systems leaders gather to create business relationships, strategize ways to strengthen this sector,
improve business practices and increase awareness of potential purchasers.
2011 International Builders’ Show®, Orlando, Fla. January 12-15, 2011
The International Builders’ Show® (IBS) is the largest annual building industry trade show in the
country. It’s THE place to see and discuss the hottest products on the market and network with your
friends and allies. Additionally, the IBS offers more than 175 education sessions taught by
industry experts.
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BUSINESS MANAGEMENT RESOURCES – THE RIGHT TOOLS AT THE RIGHT TIME!
If there’s one thing NAHB members need to focus on in the current economic environment, it’s their
business. This doesn’t mean just whether or not customers are coming through the door; it’s equally
important for builders, remodelers, and associates to understand what’s working and what’s
not working in their day-to-day operations. NAHB’s Business Management Department works
closely with a variety of member-driven committees to identify what’s important, what’s relevant, and
what works! Then the staff packages this information into a variety of resources offered to
NAHB members.
Among them are:
• Builder Business Guides – produced and distributed annually, these publications are collections of
brief, cogent, and helpful articles focusing on specific aspects of business management. The 2009
series included advice on preparing for economic recovery, key business metrics, and how to best
market a business using technology. They are available at www.nahb.org/bbg.
• Cost of Doing Business Study – Produced in conjunction with NAHB’s Economics Department
and published every two years, the study surveys nearly 300 builders nationwide. This best selling
publication presents detailed data on how survey respondents performed and what their most
recent annual associated business operations costs were. Armed with this resource, members can
gauge their business performance and see how it stacks up against similarly sized operations.
The study is available for purchase at BuilderBooks.
• Residential Construction Performance Guidelines (RCPG) – The guidelines provide builders and
remodelers with a valuable tool to ensure the integrity of plumbing, framing, windows, and a host of
other home construction elements and are designed to work in conjunction with your warranty.
The newly revised fourth edition will be available in the Spring of 2010 at a discount to NAHB
members at www.builderbooks.com.
• Audio Seminars & Webinars – Throughout the year, the Business Management Department
produces and hosts several audio and web-based programs on timely topics. Each program
features subject matter experts explaining the topic and presenting insights and advice for
audience members. Past topics have included how to profit from green building and working with
a lender. Archives of past programs are available at www.nahb.org/elearning.
• Business of Building e/Source Newsletter – Distributed monthly free of charge to NAHB
members, this publication offers brief and timely articles, many written by NAHB members and
other industry experts. To subscribe, go to www.nahb.org/bob.
• Technology & Business Management Solutions Directory – This web-based tool offers builders
a selection of vendors offering products and services to support their technology and business
management needs. The directory is available at www.nahb.org/tsd.
Members have access! As we move toward an economic recovery, access to the right tools at the
right time will prove to be invaluable. NAHB’s excellent business management resources are freely
available to all members.
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