National Association of Home Builders by fanzhongqing


									National Association of Home Builders

2009                ANNUAL REPORT TO MEMBERS

                   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.


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.

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.


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.


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.


2009 Annual Report to Members

Letter from Joe Robson, 2009 NAHB Chairman of the Board
Key Contact Information
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

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


NAHB’s Main Toll-Free Number: 800-368-5242

50+ Housing                                      Membership
x8292                          x8440
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BuilderLink Congressional Contacts
& Grassroots Network
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Education and Designation Programs
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                                                 Public Relations
Conferences, Tradeshows and Webinars
Custom Home Builders
                                                 Safety Training
Economic Data
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National Housing Endowment
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Green Building
                                                 Spokesperson Training
Home Builders Institute
                                                 State & Local Political Operations
International Builders’ Show®
International Programs
                                                 A more detailed subject matter directory is
Legal Services
                                                 available to members online.


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.


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

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.


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 &
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.


 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.

                                                           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.

 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               BUILDING CONFERENCE
   for council information and benefits, plus 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                        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

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.
 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

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


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.

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 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 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, 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.


 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.

 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,
                                                                             Builders Digital Experience
                                                                             Cary, North Carolina
                                                                             2010 NAHB Professional Women in
                                                                             Building Chair

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


 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.

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          , and many
                  2010 NAHB Legal Action
                                                       can be customized with contact information or
                  Committee Chair
                                                       specifics about the local market.

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.
 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.”

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
                                                  to add up the point value
                                                           of each green product or practice that has been
                                                           incorporated into the development and
                                                           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


 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


 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.


 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.


 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

                                                            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.
                                                            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,
                                                            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


 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
                                                         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.
                                                         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.


 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.        

 • 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.


 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.
                                                            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                                 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


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.


 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, 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  
 actually less than the cost of building the home.

                                                          FHA INCREASES FINANCE LIMITS FOR
 COSTLY ‘NO-MATCH’ RULE TO                                ADDED ENERGY EFFICIENCY
                                                          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.


 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
                                                      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


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


                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,
                                                               , 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

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

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


 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

 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.


 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


 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

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


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.”


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

                                                         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  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.


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.


 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.

                                                           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,, 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 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.


 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.
 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
                                                and include
                                                         materials to help members promote the credit to
                                                         potential home buyers.


 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.


 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.”


 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?


 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
                                                           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
                                                           loses caused by this downturn.
                                                           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.
                                                           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


 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.

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


 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
 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.


 2007 Show – Orlando, FL
 Exhibits 64%
 Networking 18%
 Education 11%
                             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.”

“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.

IBS               STATISTICS


                  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.


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


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®.

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 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.


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

• 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

• 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

• 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

• 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

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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