Fusion Audio + Video to Host First Builder After Hours of 2012
The first HBA of Greenville Builder After Hours of 2012 is at Fusion Audio + Video.
To register for the Builder After Hours at Fusion Audio + Video, click here.
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The first HBA of Greenville Builder After Hours of 2012 is at Fusion Audio + Video.
- Builder After Hours
- Fusion Audio + Video, 119 N. Markley Street, Greenville, SC 29601
- Thursday, February 2, 5:30 p.m. until 8 p.m.
- Sponsor: Fusion Audio + Video
- The menu for the event is as follows:
- Chicken Satay with Peanut Sauce
- Miniature Cuban Sandwiches
- Sweet BBQ Pork Stuffed Petite Potatoes
- Mushroom Caps Stuffed with Italian Sausage and Cheese
- Chipolte Beef Quesadilla with Cilantro Crème
- Cheese display with Crackers
- Warm Spinach Dip with Tortilla Chips
- Sweet Iced tea and Lemonade
There will be various door prizes given away but you must be in attendance to win so don't miss this great evening of networking and fellowship, and a delicious meal.
To register for the Builder After Hours at Fusion Audio + Video, click here.
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HBA of Greenville Shred Day is February 22, compliments of Shred360
HBA of Greenville members are invited to bring confidential documents, files and other sensitive information to your HBA Office for shredding. All information will be shredded on-site and members are welcomed to witness the destruction of all materials. Lunch will be served.
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HBA of Greenville members are invited to bring confidential documents, files and other sensitive information to your HBA Office for shredding. All information will be shredded on-site and members are welcomed to witness the destruction of all materials. Lunch will be served.
WHO: HBA of Greenville members wanting to safely dispose of sensitive materials.
* limit ten (10) boxes or bags per member company ? paper materials only
WHAT: “Shred Day” ? Shred360 will be providing COMPLIMENTARY on-site shredding of sensitive and personal information to help protect against identity theft.
* All material collected will be recycled.
WHEN: Wednesday, February 22, 2012, 12 p.m. until 2 p.m.
WHERE: HBA of Greenville Office located at 5 Creekside Park Court, Greenville, SC 29615
* limit ten (10) boxes or bags per member company ? paper materials only
WHAT: “Shred Day” ? Shred360 will be providing COMPLIMENTARY on-site shredding of sensitive and personal information to help protect against identity theft.
* All material collected will be recycled.
WHEN: Wednesday, February 22, 2012, 12 p.m. until 2 p.m.
WHERE: HBA of Greenville Office located at 5 Creekside Park Court, Greenville, SC 29615
LUNCH: While you are here, enjoy lunch! Pizza and soft drinks will be served, compliments of your HBA of Greenville.
Shred, eat, and network. Another benefit of membership in your HBA of Greenville.
Members are limited to ten (10) bags/boxes/bins of materials to be shredded. This allows Shred360 to service each member in a timely fashion. Depending on volume of consumer material, Shred360 may make exceptions if there is adequate time to service a member with additional material. Otherwise, members with more than ten (10) bags/boxes/bins are welcome to set up an appointment for Shred360 to service their needs at a future time.
Please, no plastic, glass, trash or other non-paper contaminants will be accepted for shredding. Paperclips, staples, binders, and notebooks may be shreded. Also, floppy and compact disks also may be shreded.
Cardboard also may be shreded, but members will be asked to take their boxes and/or bags with them after their documents have been shredded.
Shred360 is not responsible for information that is abandoned or left unattended by a member at the event prior to the shredding process.
All materials presented to Shred360 will be recycled to assure total and permanent destruction of all materials as well as to provide a benefit to the environment. Shred360 is AAA-Certified onsite shredding company through the National Association for Information Destruction (NAID).
Members are limited to ten (10) bags/boxes/bins of materials to be shredded. This allows Shred360 to service each member in a timely fashion. Depending on volume of consumer material, Shred360 may make exceptions if there is adequate time to service a member with additional material. Otherwise, members with more than ten (10) bags/boxes/bins are welcome to set up an appointment for Shred360 to service their needs at a future time.
Please, no plastic, glass, trash or other non-paper contaminants will be accepted for shredding. Paperclips, staples, binders, and notebooks may be shreded. Also, floppy and compact disks also may be shreded.
Cardboard also may be shreded, but members will be asked to take their boxes and/or bags with them after their documents have been shredded.
Shred360 is not responsible for information that is abandoned or left unattended by a member at the event prior to the shredding process.
All materials presented to Shred360 will be recycled to assure total and permanent destruction of all materials as well as to provide a benefit to the environment. Shred360 is AAA-Certified onsite shredding company through the National Association for Information Destruction (NAID).
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SCHBSIF Receives NAHB SAFE Award
The South Carolina Home Builders Self Insurers Fund was named the National Association of Home Builders Associate Member Safety Program of the Year. The award will be presented on February 7 at the International Builders Show in Orlando, Florida.
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The South Carolina Home Builders Self Insurers Fund was named the National Association of Home Builders Associate Member Safety Program of the Year. The award will be presented on February 7 at the International Builders Show in Orlando, Florida.
Your Home Builders Association of Greenville endorses the SIF and recommends it to our members as a source for your Worker's Compensation Insurance needs.
The Safety Award For Excellence (SAFE) recognizes NAHB member companies, workers, and other individuals for the excellent safety programs that make them leaders in the residential construction industry. The NAHB annually recognizes those who have worked to achieve exemplary safety and health in residential construction. There were more than 40 applicants for SAFE awards in 2011.
The SCHBSIF assists its members in providing safe work places by conducting safety training that is specific to the home building industry. It also provides on-site safety surveys for its more than eight hundred members. These surveys assist home builders and subcontractors in identifying hazards and provide them with recommendations for corrective actions that reduce the potential for injuries in the workplace.
The SCHBSIF assists its members in providing safe work places by conducting safety training that is specific to the home building industry. It also provides on-site safety surveys for its more than eight hundred members. These surveys assist home builders and subcontractors in identifying hazards and provide them with recommendations for corrective actions that reduce the potential for injuries in the workplace.
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NAHB: Remodeling Market Index Rises to Five-Year High
Remodeling sentiment rose to the highest level in five years, according to the National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI) for the fourth quarter of 2011. Released today, the RMI increased to 46.6 in the fourth quarter from 41.7 in the third quarter.
In the fourth quarter, the RMI component measuring current market conditions rose to 48.4 from 43.0 in the previous quarter. The RMI component measuring future indicators of remodeling business was also positive, increasing to 44.8 from 40.4 in the previous quarter.
An RMI below 50 indicates that more remodelers report market activity is lower (compared to the prior quarter) than report it is higher. The overall RMI averages ratings of current remodeling activity with indicators of future activity.
“As more consumers remain in their homes rather than move in this economy, remodelers benefited from a gradual increase in home improvement activity, taking us to a five-year high,” said NAHB Remodelers Chairman Bob Peterson, CGR, CAPS, CGP, a remodeler from Ft. Collins, Colo. “2011 ended on a strong note for the remodeling industry.”
Current market conditions improved significantly in all four regions over the third quarter of 2011. The RMI reported higher market activity in two important categories: major additions 52.3 (from 45.2) and minor additions 50.1 (from 45.7).
Future market indicators in each region also experienced gains from the previous quarter. Two of the indices reported a level over 50: calls for bids at 50.7 (from 45.4) and appointments for proposals at 50.1 (from 43.3), while work committed for the next three months only rose to 31.5 (from 29.9).
“With several key components above 50, the latest RMI provides reason for guarded optimism going forward,” said NAHB Chief Economist David Crowe. “The residential remodeling market has been improving gradually, mirroring the trend in other segments of the housing market. Stringent lending requirements and economic uncertainty continue to be a drag on demand, but we expect a modest growth in remodeling activity to continue throughout 2012.”
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Remodeling sentiment rose to the highest level in five years, according to the National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI) for the fourth quarter of 2011. Released today, the RMI increased to 46.6 in the fourth quarter from 41.7 in the third quarter.
In the fourth quarter, the RMI component measuring current market conditions rose to 48.4 from 43.0 in the previous quarter. The RMI component measuring future indicators of remodeling business was also positive, increasing to 44.8 from 40.4 in the previous quarter.
An RMI below 50 indicates that more remodelers report market activity is lower (compared to the prior quarter) than report it is higher. The overall RMI averages ratings of current remodeling activity with indicators of future activity.
“As more consumers remain in their homes rather than move in this economy, remodelers benefited from a gradual increase in home improvement activity, taking us to a five-year high,” said NAHB Remodelers Chairman Bob Peterson, CGR, CAPS, CGP, a remodeler from Ft. Collins, Colo. “2011 ended on a strong note for the remodeling industry.”
Current market conditions improved significantly in all four regions over the third quarter of 2011. The RMI reported higher market activity in two important categories: major additions 52.3 (from 45.2) and minor additions 50.1 (from 45.7).
Future market indicators in each region also experienced gains from the previous quarter. Two of the indices reported a level over 50: calls for bids at 50.7 (from 45.4) and appointments for proposals at 50.1 (from 43.3), while work committed for the next three months only rose to 31.5 (from 29.9).
“With several key components above 50, the latest RMI provides reason for guarded optimism going forward,” said NAHB Chief Economist David Crowe. “The residential remodeling market has been improving gradually, mirroring the trend in other segments of the housing market. Stringent lending requirements and economic uncertainty continue to be a drag on demand, but we expect a modest growth in remodeling activity to continue throughout 2012.”
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Waldrop Announces Promotions
Waldrop Inc., the holding company for member company Waldrop Heating & Air Conditioning, announced the following promotions:
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Waldrop Inc., the holding company for member company Waldrop Heating & Air Conditioning, announced the following promotions:
- Johnny Leazer, Chief Financial Officer
- Dennis Pruitt, Executive Vice President over commercial and industrial construction
- Jamie Poterfield, Executive Vice President over solar and residential service
Waldrop, Inc., was founded in 1970. CEO Bill Caldwell stated that the promotions are the final steps of of the company's ownership succession plan.
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NAHB: Growing Optimism for Housing Rings in the New Year
The new year has opened with a sense of growing optimism for housing.
Existing home sales climbed 5% in December while inventories dropped more than 9% to a 6.2 months-supply, down from 7.2 in November, which should help reduce downward pressure on home prices and increase confidence in the housing sector.
Single-family housing starts rose 4.4% in December to a seasonally-adjusted annual rate of 470,000, their fastest pace since the end of the home buyer tax credit program in 2010. This was consistent with recent improvements in builder confidence, as indicated by the NAHB/Wells Fargo Housing Market Index (HMI), which rose to 25 in January ? its highest level since the summer of 2007.
From an unsustainably high level in November, starts in buildings with five housing units or more fell 28% in December to a rate of 164,000 units, which was still 69% above the pace of a year earlier.
Although overall construction hiring slowed somewhat in December, 2011 is expected to be the first year since 2006 in which total hires exceeded total job losses in the construction sector.
Consumer prices and producer prices ? including building materials ? were both flat at the end of 2011, after increases earlier in the year.
The NAHB/First American Improving Market Index (IMI) has grown to 76 markets, many of which rely on health care and educational institutions for a solid economic base. As construction and other sectors continue to improve in 2012, the list of cities on the IMI is expected to grow.
And housing has been receiving attention from the Federal Reserve, which remains concerned over foreclosures, prices and tight credit conditions, even as improvements in multifamily building provides a boost to some areas. Examining problems in the housing market ? including an excess supply of vacant homes, reduced availability of mortgage credit and an inefficient foreclosure process ? a Fed white paper concludes that restoring health to the housing market is necessary to promote a more robust economic recovery. While suggesting possible solutions, the paper indicates that there is no one policy that will accomplish this task.
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The new year has opened with a sense of growing optimism for housing.
Existing home sales climbed 5% in December while inventories dropped more than 9% to a 6.2 months-supply, down from 7.2 in November, which should help reduce downward pressure on home prices and increase confidence in the housing sector.
Single-family housing starts rose 4.4% in December to a seasonally-adjusted annual rate of 470,000, their fastest pace since the end of the home buyer tax credit program in 2010. This was consistent with recent improvements in builder confidence, as indicated by the NAHB/Wells Fargo Housing Market Index (HMI), which rose to 25 in January ? its highest level since the summer of 2007.
From an unsustainably high level in November, starts in buildings with five housing units or more fell 28% in December to a rate of 164,000 units, which was still 69% above the pace of a year earlier.
Although overall construction hiring slowed somewhat in December, 2011 is expected to be the first year since 2006 in which total hires exceeded total job losses in the construction sector.
Consumer prices and producer prices ? including building materials ? were both flat at the end of 2011, after increases earlier in the year.
The NAHB/First American Improving Market Index (IMI) has grown to 76 markets, many of which rely on health care and educational institutions for a solid economic base. As construction and other sectors continue to improve in 2012, the list of cities on the IMI is expected to grow.
And housing has been receiving attention from the Federal Reserve, which remains concerned over foreclosures, prices and tight credit conditions, even as improvements in multifamily building provides a boost to some areas. Examining problems in the housing market ? including an excess supply of vacant homes, reduced availability of mortgage credit and an inefficient foreclosure process ? a Fed white paper concludes that restoring health to the housing market is necessary to promote a more robust economic recovery. While suggesting possible solutions, the paper indicates that there is no one policy that will accomplish this task.
Read More
FHFA: Mortgage Rates Fall Again in December
The Federal Housing Finance Agency (FHFA) today reported that the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders, used as an index in some ARM contracts, was 4.15 percent based on loans closed in December. This is a decrease of 0.07 percent from the previous month.
The average interest rate on conventional, 30-year, fixed-rate mortgage loans of $417,000 or less decreased 8 basis points to 4.32 percent in December. These rates are calculated from the FHFA’s Monthly Interest Rate Survey of purchase-money mortgages (see technical note). These results reflect loans closed during the December 23-30 period. Typically, the interest rate is determined 30 to 45 days before the loan is closed. Thus, the reported rates depict market conditions prevailing in mid- to late-November.
The contract rate on the composite of all mortgage loans (fixed- and adjustable-rate) was 4.13 percent in December, down 7 basis points from 4.20 percent in November. The effective interest rate, which reflects the amortization of initial fees and charges, was 4.24 percent in December, down 7 basis points from 4.31 percent in November.
This report contains no data on adjustable-rate mortgages due to insufficient sample size.
Initial fees and charges were 0.83 percent of the loan balance in December, up 0.05 percent from 0.78 in November. Thirty-two percent of the purchase-money mortgage loans originated in December were "no-point" mortgages, down two percent from the share in November. The average term was 28.8 years in December, up 0.3 years from 28.5 years in November. The average loan-to-price ratio in December was 78.7 percent, up 1.6 percent from 77.1 percent in November. The average loan amount was $221,700 in December, up $1,200 from $220,500 in November.
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The Federal Housing Finance Agency (FHFA) today reported that the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders, used as an index in some ARM contracts, was 4.15 percent based on loans closed in December. This is a decrease of 0.07 percent from the previous month.
The average interest rate on conventional, 30-year, fixed-rate mortgage loans of $417,000 or less decreased 8 basis points to 4.32 percent in December. These rates are calculated from the FHFA’s Monthly Interest Rate Survey of purchase-money mortgages (see technical note). These results reflect loans closed during the December 23-30 period. Typically, the interest rate is determined 30 to 45 days before the loan is closed. Thus, the reported rates depict market conditions prevailing in mid- to late-November.
The contract rate on the composite of all mortgage loans (fixed- and adjustable-rate) was 4.13 percent in December, down 7 basis points from 4.20 percent in November. The effective interest rate, which reflects the amortization of initial fees and charges, was 4.24 percent in December, down 7 basis points from 4.31 percent in November.
This report contains no data on adjustable-rate mortgages due to insufficient sample size.
Initial fees and charges were 0.83 percent of the loan balance in December, up 0.05 percent from 0.78 in November. Thirty-two percent of the purchase-money mortgage loans originated in December were "no-point" mortgages, down two percent from the share in November. The average term was 28.8 years in December, up 0.3 years from 28.5 years in November. The average loan-to-price ratio in December was 78.7 percent, up 1.6 percent from 77.1 percent in November. The average loan amount was $221,700 in December, up $1,200 from $220,500 in November.
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HBASC takes active role in reversing anti-economic development decision by S.C. Supreme Court
by Julian Barton, Director of Government Affairs
Home Builders Association of South Carolina
Late last summer the SC Supreme Court handed down a decision that sent shock waves through the development community in the SC League of Women Voters vs. Smith Land Company case. Under the Supreme Court’s Smith Land Company opinion many citizens may be in violation of the Pollution Control Act (PCA) and now every other citizen has the right to sue them, even though the case does not directly impact them.
The decision nullified sixty years of case law with two liberal interpretations of the law:
1. Zero Tolerance: The Court ruled that any discharge into the environment must have a permit ? this case involved filling in .19 acre of wetlands on a .33 acre lot that was not required by state or federal law to have a permit. Based on this decision, any emission into the environment must have a permit. To meet the courts new direction, DHEC alone will need to double or triple their permitting departments!
2. Encourages Lawsuits: The Court also ruled that anyone could have “standing” in a case, and they did not have to be directly impacted by the case. In the past the individual filing the lawsuit had to be directly impacted to file suit. This now opens the door for a flood of litigation from every activist group in the state. Don’t like a Walmart in your city, don’t like electric generation plant, don’t like a business that is building on the water, then the new strategy is to bury them in lawsuits! The SC Supreme Court has set back economic development in our state by ten years!
If this case is allowed to stand, economic development in this state could come to a grinding halt as anti-economic development groups sue every business that wants to come to the state. Companies will locate in less litigious states! The court has given a big advantage to our competitors, Georgia and North Carolina, with this decision!
Senator Harvey Peeler and Representative Nelson Hardwick are expected to introduce legislation next week to reverse the onerous and dangerous SC Supreme Court decision. Passage of this bill will be a top priority for the business community this session!
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by Julian Barton, Director of Government Affairs
Home Builders Association of South Carolina
Late last summer the SC Supreme Court handed down a decision that sent shock waves through the development community in the SC League of Women Voters vs. Smith Land Company case. Under the Supreme Court’s Smith Land Company opinion many citizens may be in violation of the Pollution Control Act (PCA) and now every other citizen has the right to sue them, even though the case does not directly impact them.
The decision nullified sixty years of case law with two liberal interpretations of the law:
1. Zero Tolerance: The Court ruled that any discharge into the environment must have a permit ? this case involved filling in .19 acre of wetlands on a .33 acre lot that was not required by state or federal law to have a permit. Based on this decision, any emission into the environment must have a permit. To meet the courts new direction, DHEC alone will need to double or triple their permitting departments!
2. Encourages Lawsuits: The Court also ruled that anyone could have “standing” in a case, and they did not have to be directly impacted by the case. In the past the individual filing the lawsuit had to be directly impacted to file suit. This now opens the door for a flood of litigation from every activist group in the state. Don’t like a Walmart in your city, don’t like electric generation plant, don’t like a business that is building on the water, then the new strategy is to bury them in lawsuits! The SC Supreme Court has set back economic development in our state by ten years!
If this case is allowed to stand, economic development in this state could come to a grinding halt as anti-economic development groups sue every business that wants to come to the state. Companies will locate in less litigious states! The court has given a big advantage to our competitors, Georgia and North Carolina, with this decision!
Senator Harvey Peeler and Representative Nelson Hardwick are expected to introduce legislation next week to reverse the onerous and dangerous SC Supreme Court decision. Passage of this bill will be a top priority for the business community this session!
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Lawler bullish on home building for 2012
Writing for Calculated Risk, housing economist Tom Lawler says he has become more optimistic about home building for 2012. In fact, Lawler is more optimistic than NAHB, a revers of his position last year, when he thought all of the housing economists were overly optimistic.
Read Lawler's report at calculatedriskblog.com by clicking here.
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Writing for Calculated Risk, housing economist Tom Lawler says he has become more optimistic about home building for 2012. In fact, Lawler is more optimistic than NAHB, a revers of his position last year, when he thought all of the housing economists were overly optimistic.
Read Lawler's report at calculatedriskblog.com by clicking here.
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Charles Schwab: Housing Is Becoming "Local" Again
According to Liz Ann Sonders, Chief Investment Strategist for Charles Schwab & Co., Inc., housing appears to have hit bottom and there are signs that it is beginning to improve again. More importantly, Sonders says, "housing is becoming 'local' again." In addition, Sonders points out that renters are driving the recovery, not buyers.
"During the real-estate bubble's inflation and subsequent bursting, housing could be analyzed nationally and somewhat monolithically. The rising tide was lifting all (house) boats, and when the tide went out, it took everything with it. But what we're beginning to see is a broadening of conditions, with a widening spread between the have and have-not regions of the country. Another theme of the real-estate recovery is rent versus own, with a sharp bias recently toward the former."
"There are many reasons for my budding optimism about housing:
Read Sonders' entire report on housing at schwab.com by clicking here.
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According to Liz Ann Sonders, Chief Investment Strategist for Charles Schwab & Co., Inc., housing appears to have hit bottom and there are signs that it is beginning to improve again. More importantly, Sonders says, "housing is becoming 'local' again." In addition, Sonders points out that renters are driving the recovery, not buyers.
"During the real-estate bubble's inflation and subsequent bursting, housing could be analyzed nationally and somewhat monolithically. The rising tide was lifting all (house) boats, and when the tide went out, it took everything with it. But what we're beginning to see is a broadening of conditions, with a widening spread between the have and have-not regions of the country. Another theme of the real-estate recovery is rent versus own, with a sharp bias recently toward the former."
"There are many reasons for my budding optimism about housing:
Read Sonders' entire report on housing at schwab.com by clicking here.
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HBA of Greenville forms Young Professionals Group
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Your HBA of Greenville has formed a Young ProfessionalsGroup. The purpose of the group is to connect young professionals involved in the home building industry with one another, as well as with seasoned professionals, to discuss topics related to the housing industry and our Upstate community.
HBAYP welcomes youngprofessionals age 40 and under to join us for our first meeting:
- February 1, 2012
- 4 p.m. until 6 p.m.
- The Great Oyster Bay House, 109 East Poinsett Street, Greer
As an added plus, the member company that has the most employees attendwill win a complimentary block ad for a month on www.HBAofGreenville.com. Thank you for being a member of the HomeBuilders Association of Greenville.
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S.C. Rep. Tim Scott speaks out on getting home builders back to work in Nations Building News
Rep. Tim Scott, a Republican member of Congress from Charleston and Chairman of the freshman caucus, penned an opinion article in this week's issue of Nation's Building News, the official publication of NAHB. His op ed is reprinted below.
It’s Time to Let Home Builders Create Jobs, Innovate and Grow
For the better part of the past year, House Republicans have been fighting against the current Administration’s regulatory onslaught, which affects millions of families nationwide.
In my hometown of North Charleston, S.C., we watched firsthand as the National Labor Relations Board sued the Boeing Corporation — our nation’s top exporter — for a hypothetical loss of jobs.
This bold attempt to protect the President’s union allies at the expense of American jobs was galling, especially at a time when unemployment in South Carolina was more than 10%.
While the NLRB case has been one of the most publicized examples of government overreach, the housing industry also knows all too well the power of burdensome and unnecessary government regulations.
The hard work put in by home builders not only allows many families the opportunity to realize the dream of owning a home, but is also an extremely important economic driver for our nation.
To emphasize that point, NAHB estimates three jobs are created for each new single-family home that is built.
Unfortunately, as a result of Dodd-Frank, multiple new burdensome regulations have been placed on the home building and mortgage industries.
Consequently, developers and builders are unable to complete projects because they can’t get a loan, and potential home buyers are not able to get a mortgage to purchase one.
To help shed light on this, the first stop on my regulations tour this past fall — designed to highlight how an overreaching federal government can affect every aspect of our lives — was an unfinished home.
When a developer can’t receive a loan because of unrealistic capital requirements now imposed on new acquisition, development and construction (AD&C) loans, they lose their ability not only to build, but to pay their workers.
I talked with one local home builder in my district who was turned down for a loan by 25 banks because of these new AD&C requirements.
This, in turn, leads to startling numbers — more than 1.4 million construction workers have been idled since 2006 in the housing industry alone, and 42% of the builders in the industry have gone out of business.
This is unacceptable — the government should be creating an environment conducive to growth, not one that kills jobs and small businesses.
Additionally, new mortgage requirements have made it harder for potential home buyers to buy.
One new requirement will force home buyers to make a downpayment equal to 20% of the selling price. If this regulation had been in effect in 2010, only 14% of home owners would have made enough of a downpayment to purchase their home.
While we all agree something needs to be done to safeguard against another housing bubble, creating mortgage limits so high that they are unattainable for many Americans is not the way do so.
My colleagues and I in the House have pushed to undo these harmful regulations. I have cosponsored two important pieces of legislation that will do so.
The Home Construction Lending Regulatory Improvement Act (HR 1755) eliminates the 100% capital requirement and uses market-based appraisals, rather than only “as completed” values.
HR 3461, the Financial Institutions Examination Fairness and Reform Act, addresses commercial loan concerns by restricting their ability to be classified as nonaccrual solely because the collateral value has deteriorated.
As we continue fighting against government overreach, the examples shown above are some of the key points to be made as to how harmful burdensome regulations can truly be.
We must give home builders, and all of our job creators, the stability and confidence to do what they do best — innovate and grow.
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Rep. Tim Scott, a Republican member of Congress from Charleston and Chairman of the freshman caucus, penned an opinion article in this week's issue of Nation's Building News, the official publication of NAHB. His op ed is reprinted below.
 |
| Rep. Tim Scott |
For the better part of the past year, House Republicans have been fighting against the current Administration’s regulatory onslaught, which affects millions of families nationwide.
In my hometown of North Charleston, S.C., we watched firsthand as the National Labor Relations Board sued the Boeing Corporation — our nation’s top exporter — for a hypothetical loss of jobs.
This bold attempt to protect the President’s union allies at the expense of American jobs was galling, especially at a time when unemployment in South Carolina was more than 10%.
While the NLRB case has been one of the most publicized examples of government overreach, the housing industry also knows all too well the power of burdensome and unnecessary government regulations.
The hard work put in by home builders not only allows many families the opportunity to realize the dream of owning a home, but is also an extremely important economic driver for our nation.
To emphasize that point, NAHB estimates three jobs are created for each new single-family home that is built.
Unfortunately, as a result of Dodd-Frank, multiple new burdensome regulations have been placed on the home building and mortgage industries.
Consequently, developers and builders are unable to complete projects because they can’t get a loan, and potential home buyers are not able to get a mortgage to purchase one.
To help shed light on this, the first stop on my regulations tour this past fall — designed to highlight how an overreaching federal government can affect every aspect of our lives — was an unfinished home.
When a developer can’t receive a loan because of unrealistic capital requirements now imposed on new acquisition, development and construction (AD&C) loans, they lose their ability not only to build, but to pay their workers.
I talked with one local home builder in my district who was turned down for a loan by 25 banks because of these new AD&C requirements.
This, in turn, leads to startling numbers — more than 1.4 million construction workers have been idled since 2006 in the housing industry alone, and 42% of the builders in the industry have gone out of business.
This is unacceptable — the government should be creating an environment conducive to growth, not one that kills jobs and small businesses.
Additionally, new mortgage requirements have made it harder for potential home buyers to buy.
One new requirement will force home buyers to make a downpayment equal to 20% of the selling price. If this regulation had been in effect in 2010, only 14% of home owners would have made enough of a downpayment to purchase their home.
While we all agree something needs to be done to safeguard against another housing bubble, creating mortgage limits so high that they are unattainable for many Americans is not the way do so.
My colleagues and I in the House have pushed to undo these harmful regulations. I have cosponsored two important pieces of legislation that will do so.
The Home Construction Lending Regulatory Improvement Act (HR 1755) eliminates the 100% capital requirement and uses market-based appraisals, rather than only “as completed” values.
HR 3461, the Financial Institutions Examination Fairness and Reform Act, addresses commercial loan concerns by restricting their ability to be classified as nonaccrual solely because the collateral value has deteriorated.
As we continue fighting against government overreach, the examples shown above are some of the key points to be made as to how harmful burdensome regulations can truly be.
We must give home builders, and all of our job creators, the stability and confidence to do what they do best — innovate and grow.
Read More
NAHB: Builder Confidence Rises for the Fourth Consecutive Month in January
Builder confidence in the market for newly built, single-family homes continued to climb for a fourth consecutive month in January, rising four points to 25 on the NAHB/Wells Fargo Housing Market Index (HMI), released today. This is the highest level the index has attained since June of 2007.
“Builder confidence has now risen four months in a row, with the latest uptick being universally represented across every index component and region,” noted Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. “This good news comes on the heels of several months of gains in single-family housing starts and sales, and is yet another indication of the gradual but steady improvement that is beginning to take hold in an increasing number of housing markets nationwide -- and that has been shown by our Improving Markets Index. Policymakers must now take every precaution to avoid derailing this nascent recovery.”
“Builders are seeing greater interest among potential buyers as employment and consumer confidence slowly improve in a growing number of markets, and this has helped to move the confidence gauge up from near-historic lows in the first half of 2011,” noted NAHB Chief Economist David Crowe. “That said, caution remains the word of the day as many builders continue to voice concerns about potential clients being unable to qualify for an affordable mortgage, appraisals coming through below construction cost, and the continuing flow of foreclosed properties hitting the market.”
Derived from a monthly survey that NAHB has been conducting for more than 20 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores from each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.
Each of the HMI’s three component indexes registered a fourth consecutive month of improvement in January. The component gauging current sales conditions rose three points to 25, which was its highest point since June of 2007. The component gauging sales expectations in the next six months also rose three points, to 29 -- its highest point since September 2009. And the component gauging traffic of prospective buyers rose three points to 21, its highest point since June of 2007.
The HMI also posted gains in all four regions in January, including a nine-point gain to 23 in the Northeast, a one-point gain to 24 in the Midwest, a two-point gain to 27 in the South and a five-point gain to 21 in the West.
Editor’s Note: The NAHB/Wells Fargo Housing Market Index is strictly the product of NAHB Economics, and is not seen or influenced by any outside party prior to being released to the public. HMI tables can be found at www.nahb.org/hmi. More information on housing statistics is also available at http://www.housingeconomics.com/.
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Builder confidence in the market for newly built, single-family homes continued to climb for a fourth consecutive month in January, rising four points to 25 on the NAHB/Wells Fargo Housing Market Index (HMI), released today. This is the highest level the index has attained since June of 2007.
“Builder confidence has now risen four months in a row, with the latest uptick being universally represented across every index component and region,” noted Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. “This good news comes on the heels of several months of gains in single-family housing starts and sales, and is yet another indication of the gradual but steady improvement that is beginning to take hold in an increasing number of housing markets nationwide -- and that has been shown by our Improving Markets Index. Policymakers must now take every precaution to avoid derailing this nascent recovery.”
“Builders are seeing greater interest among potential buyers as employment and consumer confidence slowly improve in a growing number of markets, and this has helped to move the confidence gauge up from near-historic lows in the first half of 2011,” noted NAHB Chief Economist David Crowe. “That said, caution remains the word of the day as many builders continue to voice concerns about potential clients being unable to qualify for an affordable mortgage, appraisals coming through below construction cost, and the continuing flow of foreclosed properties hitting the market.”
Derived from a monthly survey that NAHB has been conducting for more than 20 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores from each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.
Each of the HMI’s three component indexes registered a fourth consecutive month of improvement in January. The component gauging current sales conditions rose three points to 25, which was its highest point since June of 2007. The component gauging sales expectations in the next six months also rose three points, to 29 -- its highest point since September 2009. And the component gauging traffic of prospective buyers rose three points to 21, its highest point since June of 2007.
The HMI also posted gains in all four regions in January, including a nine-point gain to 23 in the Northeast, a one-point gain to 24 in the Midwest, a two-point gain to 27 in the South and a five-point gain to 21 in the West.
Editor’s Note: The NAHB/Wells Fargo Housing Market Index is strictly the product of NAHB Economics, and is not seen or influenced by any outside party prior to being released to the public. HMI tables can be found at www.nahb.org/hmi. More information on housing statistics is also available at http://www.housingeconomics.com/.
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NAHB: Single-Family Housing Starts Rise 4.4 Percent in December
Nationwide production of new single-family homes rose 4.4 percent to a seasonally adjusted annual rate of 470,000 units in December, according to newly released figures from the U.S. Commerce Department. This marked a third consecutive increase and the fastest pace of single-family housing starts since April of 2010. Meanwhile, the overall number of housing starts for the month declined 4.1 percent to a 657,000-unit rate due to a 20.4 percent dip on the more volatile multifamily side.
“Today’s report adds to the growing evidence that demand for new, single-family homes is finally starting to firm up in an increasing number of markets nationwide,” said Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. “This emerging trend is allowing builders to put more crews back to work, and could be even stronger if not for the overly tight credit conditions that prevail for both builders and buyers, as well as the continuing foreclosure crisis and the challenges of obtaining accurate appraisal values on new homes. Policymakers should be doing everything possible to alleviate these problems and nurture the fledgling housing recovery in order to promote job and economic growth.”
“This report is in keeping with our expectations for slow but steady improvement in the single-family market, where production hit its lowest yearly rate in over 50 years in 2011,” said NAHB Chief Economist David Crowe. “Meanwhile, it should be noted that the decline in multifamily starts in December was coming off a dramatic increase from the previous month and simply brought that sector back closer to trend. Apartment production generally continues to gain strength heading into 2012 after posting a more-than 50 percent gain in 2011.” Looking forward, NAHB is forecasting gains of approximately 17 percent in both single- and multifamily housing production in 2012.
Combined single- and multifamily housing starts fell 4.1 percent to a 657,000-unit rate in December due to the multifamily side retreating 20.4 percent from a big gain in the previous month, to a seasonally adjusted annual rate of 187,000 units. However, for the year as a whole, overall housing production was pegged at 606,900 units, which was 3.4 percent better than the overall number of starts in 2010.
Regionally, December housing starts rose 54.8 percent in the Midwest following a big decline in the previous month. The Northeast posted a 41.2 percent decline that offset a big gain in the previous month, while the South and West also posted declines of 3.0 percent and 17.6 percent, respectively.
Permit issuance, which can be an indicator of future building activity, held virtually flat at a 679,000-unit rate in December. Single-family permits rose for a third consecutive month, by 1.8 percent to 444,000 units, while multifamily permits declined 3.7 percent to 235,000 units.
Regionally, permits rose 5.8 percent in the Midwest and held unchanged in the West, but declined 6.5 percent in the Northeast and 0.6 percent in the South in December.
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Nationwide production of new single-family homes rose 4.4 percent to a seasonally adjusted annual rate of 470,000 units in December, according to newly released figures from the U.S. Commerce Department. This marked a third consecutive increase and the fastest pace of single-family housing starts since April of 2010. Meanwhile, the overall number of housing starts for the month declined 4.1 percent to a 657,000-unit rate due to a 20.4 percent dip on the more volatile multifamily side.
“Today’s report adds to the growing evidence that demand for new, single-family homes is finally starting to firm up in an increasing number of markets nationwide,” said Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. “This emerging trend is allowing builders to put more crews back to work, and could be even stronger if not for the overly tight credit conditions that prevail for both builders and buyers, as well as the continuing foreclosure crisis and the challenges of obtaining accurate appraisal values on new homes. Policymakers should be doing everything possible to alleviate these problems and nurture the fledgling housing recovery in order to promote job and economic growth.”
“This report is in keeping with our expectations for slow but steady improvement in the single-family market, where production hit its lowest yearly rate in over 50 years in 2011,” said NAHB Chief Economist David Crowe. “Meanwhile, it should be noted that the decline in multifamily starts in December was coming off a dramatic increase from the previous month and simply brought that sector back closer to trend. Apartment production generally continues to gain strength heading into 2012 after posting a more-than 50 percent gain in 2011.” Looking forward, NAHB is forecasting gains of approximately 17 percent in both single- and multifamily housing production in 2012.
Combined single- and multifamily housing starts fell 4.1 percent to a 657,000-unit rate in December due to the multifamily side retreating 20.4 percent from a big gain in the previous month, to a seasonally adjusted annual rate of 187,000 units. However, for the year as a whole, overall housing production was pegged at 606,900 units, which was 3.4 percent better than the overall number of starts in 2010.
Regionally, December housing starts rose 54.8 percent in the Midwest following a big decline in the previous month. The Northeast posted a 41.2 percent decline that offset a big gain in the previous month, while the South and West also posted declines of 3.0 percent and 17.6 percent, respectively.
Permit issuance, which can be an indicator of future building activity, held virtually flat at a 679,000-unit rate in December. Single-family permits rose for a third consecutive month, by 1.8 percent to 444,000 units, while multifamily permits declined 3.7 percent to 235,000 units.
Regionally, permits rose 5.8 percent in the Midwest and held unchanged in the West, but declined 6.5 percent in the Northeast and 0.6 percent in the South in December.
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NAHB: Updated Publication Helps Builders Develop Powerful, Well-Organized Schedules
A detailed, well-planned schedule is a builder’s best tool. Without one, a building project can end up in disarray and over budget. In Scheduling for Home Builders with Microsoft® Project, Third Edition, the latest release from BuilderBooks, the publishing arm of the National Association of Home Builders (NAHB), builders will benefit from expert advice on how to master this powerful scheduling program.
Written as an easy step-by-step guide to help builders navigate the scheduling process, the book demonstrates the methods for keeping projects on schedule and budget while coordinating resources, staff and materials. This updated edition includes a companion web page that offers practice materials and sample schedules to encourage readers to perform the skills presented in each chapter.
“Successful scheduling is a critical component of any home building process,” said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. “This new resource walks builders through the steps and provides them with helpful tips and examples of how to use Microsoft® Project to keep projects running smoothly.”
Authors David Marchman and Tulio Sulbaran, Ph.D. teach builders how to use Microsoft® Project 2010 to:
Scheduling for Home Builders with Microsoft® Project, Third Edition is available for purchase at www.BuilderBooks.com or by calling 800-223-2665. (ISBN 978-0-86718-678-9; Retail $39.95/NAHB Member $35.95).
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A detailed, well-planned schedule is a builder’s best tool. Without one, a building project can end up in disarray and over budget. In Scheduling for Home Builders with Microsoft® Project, Third Edition, the latest release from BuilderBooks, the publishing arm of the National Association of Home Builders (NAHB), builders will benefit from expert advice on how to master this powerful scheduling program.
Written as an easy step-by-step guide to help builders navigate the scheduling process, the book demonstrates the methods for keeping projects on schedule and budget while coordinating resources, staff and materials. This updated edition includes a companion web page that offers practice materials and sample schedules to encourage readers to perform the skills presented in each chapter.
“Successful scheduling is a critical component of any home building process,” said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. “This new resource walks builders through the steps and provides them with helpful tips and examples of how to use Microsoft® Project to keep projects running smoothly.”
Authors David Marchman and Tulio Sulbaran, Ph.D. teach builders how to use Microsoft® Project 2010 to:
- Record and communicate progress
- Control financial, human and physical resources
- Record expenditures and analyze cost details
- Manage cash flow and tasks
- Create a baseline schedule and updates
Scheduling for Home Builders with Microsoft® Project, Third Edition is available for purchase at www.BuilderBooks.com or by calling 800-223-2665. (ISBN 978-0-86718-678-9; Retail $39.95/NAHB Member $35.95).
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NAHB: Effective Marketing on a Shoestring Budget Course is Now Online
EDUCATION
“Effective Marketing on a Shoestring Budget” — one of the most popular Institute of Residential Marketing courses — is now available online from NAHB Education.
A hit among new home marketing professionals, the course can also benefit builders who have found themselves taking on more roles in their companies and in need of cost-effective marketing strategies.
Effective marketing can make the difference between an average sales year and a successful one. However, planning a marketing campaign can be daunting, especially when promotional dollars are scarce.
The course provides planning tools that work on anyone’s budget. Participants learn how to analyze target markets, identify competitive advantages, create accurate pro formas and monitor outcomes.
The course helps participants:
In addition, the credit hours can help attendees earn the Master New Home Certified Sales Professional (Master CSP) designation.
To Register
For more information and to register, visit “Effective Marketing on a Shoestring Budget” on the NAHB website; or email the NAHB Professional Designation Help Line, or call 800-368-5242 x8154.
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EDUCATION
“Effective Marketing on a Shoestring Budget” — one of the most popular Institute of Residential Marketing courses — is now available online from NAHB Education.
A hit among new home marketing professionals, the course can also benefit builders who have found themselves taking on more roles in their companies and in need of cost-effective marketing strategies.
Effective marketing can make the difference between an average sales year and a successful one. However, planning a marketing campaign can be daunting, especially when promotional dollars are scarce.
The course provides planning tools that work on anyone’s budget. Participants learn how to analyze target markets, identify competitive advantages, create accurate pro formas and monitor outcomes.
The course helps participants:
- Understand the purpose and importance of cost-effective marketing and its role in the management and operation of the business
- Explain their companies’ current market position, capabilities and goals
- Match the appropriate product to a viable segment in the market
- Determine how to cost effectively get ready for business
- Select cost-effective Internet, marketing, advertising and public relations tactics for their target buyers
- Choose from manageable and cost-effective alternatives for organizing and training a profitable sales team
- Look for key success indicators and ways to quickly respond to common off-plan results
In addition, the credit hours can help attendees earn the Master New Home Certified Sales Professional (Master CSP) designation.
To Register
For more information and to register, visit “Effective Marketing on a Shoestring Budget” on the NAHB website; or email the NAHB Professional Designation Help Line, or call 800-368-5242 x8154.
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NAHB: Majority of OSHA's Most Frequently Cited Standards in 2011 Apply to Home Building
SAFETY:
Each year, the Occupational Safety and Health Administration compiles an annual list of the top 10 most frequently cited standards across all industries. The majority of standards that OSHA has identified as the most frequently cited are directly applicable to the construction and residential home building industries.
Employers who were cited for violations in 2011 may have noticed that the penalties were higher than in the past. The average serious violation penalty for 2011 was $2,132 — more than double the average of $1,053 for 2010.
OSHA last year also issued 215 citations totaling at least $100,000 — up from the 164 in 2010.
OSHA’s top 10 most frequently cited standards across all industries in FY 2011 were:
During a Sept. 16, 2010 webinar on preparing for OSHA inspections, Brad Hammock of Jackson Lewis LLP reminded builders that they can take the following steps before a compliance safety and health officer (CSHO) ever sets foot on the job site.
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SAFETY:
Each year, the Occupational Safety and Health Administration compiles an annual list of the top 10 most frequently cited standards across all industries. The majority of standards that OSHA has identified as the most frequently cited are directly applicable to the construction and residential home building industries.
Employers who were cited for violations in 2011 may have noticed that the penalties were higher than in the past. The average serious violation penalty for 2011 was $2,132 — more than double the average of $1,053 for 2010.
OSHA last year also issued 215 citations totaling at least $100,000 — up from the 164 in 2010.
OSHA’s top 10 most frequently cited standards across all industries in FY 2011 were:
- Scaffolding, general requirements (29 CFR 1926.451)
- Fall protection (29 CFR 1926.501)
- Hazard communication standard (29 CFR 1910.1200)
- Respiratory protection (29 CFR 1910.134)
- Control of hazardous energy (lockout/tagout) (29 CFR 1910.147)
- Electrical, wiring methods, components and equipment (29 CFR 1910.305)
- Powered industrial trucks (29 CFR 1910.178)
- Ladders (29 CFR 1926.1053)
- Electrical systems design, general requirements (29 CFR 1910.303)
- Machines, general requirements (29 CFR 1910.212)
During a Sept. 16, 2010 webinar on preparing for OSHA inspections, Brad Hammock of Jackson Lewis LLP reminded builders that they can take the following steps before a compliance safety and health officer (CSHO) ever sets foot on the job site.
- Review their safety program
- Understand any national and local emphasis programs
- Develop procedures for an OSHA visit and train their employees in those procedures
- Have records (300 Logs, training records, etc.) readily available and up-to-date
- Make sure their workers are properly trained on the safety requirements of the job site
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Homeowners avoid expense of remodeling under lead paint rule
The costs of remodeling a home built before 1978 can increase by as much as 24 percent, the result of the U.S. Environmental Protection Agency's Lead: Renovation, Repair, and Painting rule, according to the NAHB.
"Remodelers are finding that conducting renovation work in older homes has become more expensive under the lead regulation and that homeowners are reluctant to pay the increased cots," said NAHB Remodelers Chairman Bob Peterson, CGR, CAPS, CGP, a remodeler from Fort Collins, Colo.
Responding to special questions in NAHB's quarterly Remodeling Market Index (RMI) survey, many remodelers said they had estimated the price of remodeling projects with and without the lead rule requirements. The percentage of price difference depended on the size of the remodeling project, with the smallest projects - less than $5,000 - experiencing the greatest cost increase at 24 percent. As the project sizes increased, the overall costs of applying the lead rule fell. At the high end, projects costing more than $100,000 had a 9 percent increase for lead rule requirements.
At least 65 percent of the remodeler respondents to the RMI survey reported that homeowners are taking actions to avoid the costs of the lead rule by attempting do-it-yourself work, looking for an uncertified contractor who would not comply with the lead rule, scaling back the size of planned remodeling projects, or deciding not to remodel at all.
"Remodelers want to protect vulnerable children from lead exposure, but we're seeing that homeowners do not want to pay the costs for complying with the lead regulation," said Peterson. "A huge part of the problem is that homeowners with no children do not see the need to pay this expense.
Under the lead paint regulation, contractors disturbing painted surfaces in pre-1978 homes must obtain training and certification, distribute the Renovate Right pamphlet to homeowners, contain dust during the renovation, use lead-safe work practices, clean up after the project, and maintain detailed records.
According to the American Housing Survey, from the Department of Housing and Urban Development and the Census Bureau, professional remodelers are hired to perform about 16.6 million projects per year in housing built before 1980. The vast majority of these projects - nearly 13 million - are small, priced under $5,000. This means that homeowners with small remodeling projects will experience the majority of lead rule expenses.
The total estimated costs for remodeling under the lead rule, including training, equipment, materials, and work hours, would reach as high as $10.5 billion per year if homeowners did not change their remodeling plans.
For more information on the lead rule, visit www.nahb.org/leadpaint or call NAHB at 800-368-5242.
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The costs of remodeling a home built before 1978 can increase by as much as 24 percent, the result of the U.S. Environmental Protection Agency's Lead: Renovation, Repair, and Painting rule, according to the NAHB.
"Remodelers are finding that conducting renovation work in older homes has become more expensive under the lead regulation and that homeowners are reluctant to pay the increased cots," said NAHB Remodelers Chairman Bob Peterson, CGR, CAPS, CGP, a remodeler from Fort Collins, Colo.
Responding to special questions in NAHB's quarterly Remodeling Market Index (RMI) survey, many remodelers said they had estimated the price of remodeling projects with and without the lead rule requirements. The percentage of price difference depended on the size of the remodeling project, with the smallest projects - less than $5,000 - experiencing the greatest cost increase at 24 percent. As the project sizes increased, the overall costs of applying the lead rule fell. At the high end, projects costing more than $100,000 had a 9 percent increase for lead rule requirements.
At least 65 percent of the remodeler respondents to the RMI survey reported that homeowners are taking actions to avoid the costs of the lead rule by attempting do-it-yourself work, looking for an uncertified contractor who would not comply with the lead rule, scaling back the size of planned remodeling projects, or deciding not to remodel at all.
"Remodelers want to protect vulnerable children from lead exposure, but we're seeing that homeowners do not want to pay the costs for complying with the lead regulation," said Peterson. "A huge part of the problem is that homeowners with no children do not see the need to pay this expense.
Under the lead paint regulation, contractors disturbing painted surfaces in pre-1978 homes must obtain training and certification, distribute the Renovate Right pamphlet to homeowners, contain dust during the renovation, use lead-safe work practices, clean up after the project, and maintain detailed records.
According to the American Housing Survey, from the Department of Housing and Urban Development and the Census Bureau, professional remodelers are hired to perform about 16.6 million projects per year in housing built before 1980. The vast majority of these projects - nearly 13 million - are small, priced under $5,000. This means that homeowners with small remodeling projects will experience the majority of lead rule expenses.
The total estimated costs for remodeling under the lead rule, including training, equipment, materials, and work hours, would reach as high as $10.5 billion per year if homeowners did not change their remodeling plans.
For more information on the lead rule, visit www.nahb.org/leadpaint or call NAHB at 800-368-5242.
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NAHB: Housing Sector Finally Gaining Some Momentum
EYE ON THE ECONOMY
2011 ended on a positive note with economic activity continuing to expand at a moderate rate and the housing sector finally gaining some positive momentum after bouncing along the bottom for most of the year.
Real growth of the gross domestic product was adjusted down to 1.8% for the third quarter, but it remained an improvement over growth of 0.4% in the first quarter and 1.3% in the second. Expectations are that statistics for the fourth quarter will show GDP growth strengthening further as businesses replenished inventories and the holidays boosted retail spending.
Despite concerns over the sovereign debt crisis in the Euro zone and slowing growth in emerging markets, particularly China, domestic conditions have shown improvement and the Federal Open Market Committee decided at its Dec. 13 meeting to maintain its current course.
After a mid-year slump, employment growth began to regain some momentum with the addition of 200,000 jobs and a decline in the unemployment rate to 8.5% in December, down 0.6 percentage points since August.
Employment growth is being supported by a steadily improving rate of job openings, which remained steady at 2.4% in October. The hiring rate in the construction sector was at a relatively high level of 5.8% in October, with construction job openings on pace to exceed total separations for the first time since 2006.
Largely positive housing news over the past few months suggests the recovery may finally be underway.
The number of metropolitan areas on the NAHB/First American Improving Market Index expanded to 76 in January, a net increase of 35, following similarly solid gains in November and December.
The NAHB/Wells Fargo Housing Market Index of builder confidence in the single-family market has also made steady gains over the past three months, rising seven points since September to a level of 21 in December. With the exception of a reading of 22 at the height of home buyer tax credit sales in the spring of 2010, the December level was the highest since August 2007.
Despite a dismal year for housing production — which is likely to prove to be the worst in the 52 years that similar data has been gathered — there was a solid increase in housing starts and building permits in November.
The gains were led by the multifamily sector, driven by rising demand for rental housing as recession-nipped household formation rates begin to show signs of recovery. With rents increasing and rental vacancy rates falling in recent months, starts in buildings with five or more apartments have grown strongly, recovering to nearly two-thirds of more normal levels.
Single-family production, on the other hand, saw little improvement through 2011 and remains at roughly one-third of more normal levels.
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EYE ON THE ECONOMY
2011 ended on a positive note with economic activity continuing to expand at a moderate rate and the housing sector finally gaining some positive momentum after bouncing along the bottom for most of the year.
Real growth of the gross domestic product was adjusted down to 1.8% for the third quarter, but it remained an improvement over growth of 0.4% in the first quarter and 1.3% in the second. Expectations are that statistics for the fourth quarter will show GDP growth strengthening further as businesses replenished inventories and the holidays boosted retail spending.
Despite concerns over the sovereign debt crisis in the Euro zone and slowing growth in emerging markets, particularly China, domestic conditions have shown improvement and the Federal Open Market Committee decided at its Dec. 13 meeting to maintain its current course.
After a mid-year slump, employment growth began to regain some momentum with the addition of 200,000 jobs and a decline in the unemployment rate to 8.5% in December, down 0.6 percentage points since August.
Employment growth is being supported by a steadily improving rate of job openings, which remained steady at 2.4% in October. The hiring rate in the construction sector was at a relatively high level of 5.8% in October, with construction job openings on pace to exceed total separations for the first time since 2006.
Largely positive housing news over the past few months suggests the recovery may finally be underway.
The number of metropolitan areas on the NAHB/First American Improving Market Index expanded to 76 in January, a net increase of 35, following similarly solid gains in November and December.
The NAHB/Wells Fargo Housing Market Index of builder confidence in the single-family market has also made steady gains over the past three months, rising seven points since September to a level of 21 in December. With the exception of a reading of 22 at the height of home buyer tax credit sales in the spring of 2010, the December level was the highest since August 2007.
Despite a dismal year for housing production — which is likely to prove to be the worst in the 52 years that similar data has been gathered — there was a solid increase in housing starts and building permits in November.
The gains were led by the multifamily sector, driven by rising demand for rental housing as recession-nipped household formation rates begin to show signs of recovery. With rents increasing and rental vacancy rates falling in recent months, starts in buildings with five or more apartments have grown strongly, recovering to nearly two-thirds of more normal levels.
Single-family production, on the other hand, saw little improvement through 2011 and remains at roughly one-third of more normal levels.
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HBA of Greenville Announces Builder, Associate of the Year
GREENVILLE, SC ? The Home Builders Association of Greenville has named Tom Dillard, CGP, president of Dillard-Jones Builders, its 2011 Builder of the Year, and Jason Freeman, CEO of J. Freeman & Associates, its Associate of the Year.
Sponsored by BB&T bank, the HBA Builder of the Year award recognizes a builder member who makes a commitment of time and talent through committee and program participation that helps strengthen the association for all its members, and represents the highest level of integrity and honesty in the home building industry. The Associate of the Year award recognizes an associate member who has made a significant contribution to the local home building industry through volunteerism, member recruitment, and sponsorships.
Tom Dillard founded Dillard-Jones Builders, LLC in 2004. A member of the Southern Living Custom Builder Program representing the national magazine in Greenville, SC and Asheville, NC, Dillard-Jones was named the Southern Living Custom Builder of the Year in 2011 and 2009 ? the first homebuilder to win the prestigious national award twice. Dillard is a past president of the Home Builders Association of Greenville.
Jason Freemen is CEO of J. Freeman & Associates, an independent broker firm established in1999. A graduate of East Carolina University, Freeman is a member of the advisory boards of Bank of Travelers Rest, Fidelity, United Healthcare, and the Estate Planning Council of Greenville. He is an advisor to the board of the Home Builders Association of Greenville.
Other 2011 awards winners are: Committee Chairman of the Year, Richard Powers of Piedmont Natural Gas; Membership Award, Howard Cox of Home Builders Insurance LLC; Rookie of the Year, Matt Vaughn of Homeowners Mortgage; Spirit of the HBA, Deana Long of Builders First Source; and President’s Citations, Elizabeth Stronkowsy of North Main Building & Design, and Richard Powers of Piedmont Natural Gas.
The Home Builders Association of Greenville is a professional trade association of 400-member companies representing the home building and light commercial construction industry in Greenville and Pickens counties. For more information, call (864) 254-0133 or visit www.HBAofGreenville.com.
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| Builder of the Year Tom Dillard with President Robert Markel |
Sponsored by BB&T bank, the HBA Builder of the Year award recognizes a builder member who makes a commitment of time and talent through committee and program participation that helps strengthen the association for all its members, and represents the highest level of integrity and honesty in the home building industry. The Associate of the Year award recognizes an associate member who has made a significant contribution to the local home building industry through volunteerism, member recruitment, and sponsorships.
Tom Dillard founded Dillard-Jones Builders, LLC in 2004. A member of the Southern Living Custom Builder Program representing the national magazine in Greenville, SC and Asheville, NC, Dillard-Jones was named the Southern Living Custom Builder of the Year in 2011 and 2009 ? the first homebuilder to win the prestigious national award twice. Dillard is a past president of the Home Builders Association of Greenville.
Jason Freemen is CEO of J. Freeman & Associates, an independent broker firm established in1999. A graduate of East Carolina University, Freeman is a member of the advisory boards of Bank of Travelers Rest, Fidelity, United Healthcare, and the Estate Planning Council of Greenville. He is an advisor to the board of the Home Builders Association of Greenville.
Other 2011 awards winners are: Committee Chairman of the Year, Richard Powers of Piedmont Natural Gas; Membership Award, Howard Cox of Home Builders Insurance LLC; Rookie of the Year, Matt Vaughn of Homeowners Mortgage; Spirit of the HBA, Deana Long of Builders First Source; and President’s Citations, Elizabeth Stronkowsy of North Main Building & Design, and Richard Powers of Piedmont Natural Gas.
The Home Builders Association of Greenville is a professional trade association of 400-member companies representing the home building and light commercial construction industry in Greenville and Pickens counties. For more information, call (864) 254-0133 or visit www.HBAofGreenville.com.
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HBA of Spartanburg extends Invitation to HBA of Greenville Members for Three Continuing Education Courses.
The HBA of Spartanburg has extended an invitation to the HBA of Greenville membership to participate in three continuing education courses to be held on Wednesday, February 1, 2012 for a reduced price. Continuing education credits for numerous designations are available.
These three classes are ALL NEW to the Spartanburg HBA:
All classes will be held at the HBA of Spartanburg office, located at 341 East Kennedy Street, Spartanburg, SC 29302.
Course descriptions:
What is a home theater? This may sound like a simple question, but is it? Participants in this course will come away with a very distinct definition of what a home theater is—and what it isn’t! Discussions will also include basic acoustical physics, common mistakes in design and construction, “points to remember” to achieve a solid, repeatable process, and spatial and usage considerations. This course will provide guidance related to what goes in the room—from equipment, to wall treatments, to lights—and how to analyze common problems associated with home theater design and construction. Additionally, attendees will learn how, when, and why to engage a trained electronic systems contractor (ESC) early in the design and build process.
The demand for home entertainment spaces is growing at a rapid pace—don’t be uninformed and left behind! Participants in this course will be educated on the differences between media rooms and game rooms from a usage standpoint as well as specific design characteristics relative to equipment, furnishings, power requirements, ventilation, lighting, and acoustics. Attendees will also walk away with the knowledge of how and when to engage an electronics systems professional in the design and build process, assess common issues related to occupant comfort in media and game rooms and recognize essential timeline for engaging an electronic systems professional in the design and build process.
Be prepared as you head into tax season. Learn tax changes for 2011 and items that are set to expire for 2011, and how they relate to your business. The CPA instructors will review tax best practices including not neglecting Choice of Entity, high audit areas such as your home office, and record keeping. Additionally, they’ll cover the hot button issue of employee status versus independent contractor. You’ll review a case study from the construction industry, common pitfalls, consequences, and when and how to correct the situation in your business.
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The HBA of Spartanburg has extended an invitation to the HBA of Greenville membership to participate in three continuing education courses to be held on Wednesday, February 1, 2012 for a reduced price. Continuing education credits for numerous designations are available.
These three classes are ALL NEW to the Spartanburg HBA:
- Designing Dedicated Home Theatres
- Media and Game Room Design
- Income Tax Update/Employee vs. Independent Contractor Status.
All classes will be held at the HBA of Spartanburg office, located at 341 East Kennedy Street, Spartanburg, SC 29302.
Course descriptions:
- “Designing Dedicated Home Theatres”
- Instructor: Greg Olle of Digital Home Tech, LLC
- 8:00 AM ? 9:00 AM
- Cost: FREE to HBAGS members
- $10 to other NAHB members
- $25 to non-NAHB members
What is a home theater? This may sound like a simple question, but is it? Participants in this course will come away with a very distinct definition of what a home theater is—and what it isn’t! Discussions will also include basic acoustical physics, common mistakes in design and construction, “points to remember” to achieve a solid, repeatable process, and spatial and usage considerations. This course will provide guidance related to what goes in the room—from equipment, to wall treatments, to lights—and how to analyze common problems associated with home theater design and construction. Additionally, attendees will learn how, when, and why to engage a trained electronic systems contractor (ESC) early in the design and build process.
- “Media and Game Room Design”
- Instructor: Greg Olle of Digital Home Tech, LLC
- 9:00 AM ? 10:00 AM
- Cost: FREE to HBAGS members
- $10 to other NAHB members
- $25 to non-NAHB members
The demand for home entertainment spaces is growing at a rapid pace—don’t be uninformed and left behind! Participants in this course will be educated on the differences between media rooms and game rooms from a usage standpoint as well as specific design characteristics relative to equipment, furnishings, power requirements, ventilation, lighting, and acoustics. Attendees will also walk away with the knowledge of how and when to engage an electronics systems professional in the design and build process, assess common issues related to occupant comfort in media and game rooms and recognize essential timeline for engaging an electronic systems professional in the design and build process.
- “Income Tax Update and Independent Contractor vs. Employee Status”
- Instructors: Bruce Whelchel and Larry Finney of Greene Finney and Horton, CPAs
- 10:30 AM - 12:30 PM
- Cost: $25 to HBAGS and other NAHB members
- $50 to non-NAHB members
Be prepared as you head into tax season. Learn tax changes for 2011 and items that are set to expire for 2011, and how they relate to your business. The CPA instructors will review tax best practices including not neglecting Choice of Entity, high audit areas such as your home office, and record keeping. Additionally, they’ll cover the hot button issue of employee status versus independent contractor. You’ll review a case study from the construction industry, common pitfalls, consequences, and when and how to correct the situation in your business.
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NAHB Associate Vice Chairman Urges Associate Members to Weigh in on Bank Credit Tightening
By Michael Kurpie, CGA, CGP
Director Trade Association Relations, ProBuild
Associate Vice Chairman, NAHB
As most, if not all, of you know NAHB has been working tirelessly with concerned lawmakers to address the AD&C lending crisis. Below is a summary of NAHB’s 3rd Q survey on AD&C financing. Associates, reach out and ask your Congressman to support improving lending conditions for home builders today!
Builders Report Banks Still Tightening Stance on AD&C Credit
A recent Fed survey of senior loan officers indicated that credit conditions in the real estate sector eased slightly in the third quarter -- but builders and developers aren't buying it. To the contrary, in NAHB's newly published survey for the third quarter of 2011, more of our builder/developer members reported that new AD&C loan availability is getting worse than reported it is getting better, and over half of them said they were putting land acquisition, development and single-family projects on hold until the financing climate improves. The most common ways that banks are tightening, according to builder/developers, are by reducing the amount they are willing to lend (cited by 77% of those who said credit availability had declined), lowering the allowable LTV ratio (cited by 75%), not making new AD&C loans (66%), and requiring personal guarantees or collateral not related to the project (63%).
Depending on the category (land acquisition, land development, single-family construction, and multifamily construction), between 20% and 33% of respondents to our survey reported that lenders were also tightening terms and conditions on outstanding production loans, with such action being most common on outstanding loans for single-family construction and least common on outstanding loans for multifamily condo and rental construction. Importantly, in at least 84% of the cases, the AD&C loans in question were performing before the lender's tightening action. NAHB's survey found that the most common ways lenders are tightening conditions on outstanding production loans are by requiring a partial down payment based on re-appraisal (as reported by 66% of respondents) and demanding additional assets as collateral (reported by 64%). Asked about the reasons lenders are citing for their tightening on both new and outstanding loans, builders were most often told that regulators are forcing this to happen. In fact, lenders gave this as a reason 68% of the time when tightening the availability of new AD&C credit, and half the time when tightening terms on outstanding AD&C loans.
Such results put a spotlight on the ongoing problems that home builders are confronting in obtaining and maintaining construction credit, and the alarming degree to which these obstacles are hampering a housing and economic recovery.
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By Michael Kurpie, CGA, CGP
Director Trade Association Relations, ProBuild
Associate Vice Chairman, NAHB
As most, if not all, of you know NAHB has been working tirelessly with concerned lawmakers to address the AD&C lending crisis. Below is a summary of NAHB’s 3rd Q survey on AD&C financing. Associates, reach out and ask your Congressman to support improving lending conditions for home builders today!
Builders Report Banks Still Tightening Stance on AD&C Credit
A recent Fed survey of senior loan officers indicated that credit conditions in the real estate sector eased slightly in the third quarter -- but builders and developers aren't buying it. To the contrary, in NAHB's newly published survey for the third quarter of 2011, more of our builder/developer members reported that new AD&C loan availability is getting worse than reported it is getting better, and over half of them said they were putting land acquisition, development and single-family projects on hold until the financing climate improves. The most common ways that banks are tightening, according to builder/developers, are by reducing the amount they are willing to lend (cited by 77% of those who said credit availability had declined), lowering the allowable LTV ratio (cited by 75%), not making new AD&C loans (66%), and requiring personal guarantees or collateral not related to the project (63%).
Depending on the category (land acquisition, land development, single-family construction, and multifamily construction), between 20% and 33% of respondents to our survey reported that lenders were also tightening terms and conditions on outstanding production loans, with such action being most common on outstanding loans for single-family construction and least common on outstanding loans for multifamily condo and rental construction. Importantly, in at least 84% of the cases, the AD&C loans in question were performing before the lender's tightening action. NAHB's survey found that the most common ways lenders are tightening conditions on outstanding production loans are by requiring a partial down payment based on re-appraisal (as reported by 66% of respondents) and demanding additional assets as collateral (reported by 64%). Asked about the reasons lenders are citing for their tightening on both new and outstanding loans, builders were most often told that regulators are forcing this to happen. In fact, lenders gave this as a reason 68% of the time when tightening the availability of new AD&C credit, and half the time when tightening terms on outstanding AD&C loans.
Such results put a spotlight on the ongoing problems that home builders are confronting in obtaining and maintaining construction credit, and the alarming degree to which these obstacles are hampering a housing and economic recovery.
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Buyer Beware: Companies that claim a partnership with the HBA may have deceptive intent
From time-to-time, companies may contact you and tell you that are endorsed or affiliated in some way with your Home Builders Association. This may be true, but do not take a cold caller at their word. Check up on them before your do business with them.
You can see the companies that your HBA of Greenville endorses, as well as those that are endorsed by NAHB, by clicking on the links below.
HBA of Greenville member benefit programs
NAHB Members Advantage programs
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From time-to-time, companies may contact you and tell you that are endorsed or affiliated in some way with your Home Builders Association. This may be true, but do not take a cold caller at their word. Check up on them before your do business with them.
You can see the companies that your HBA of Greenville endorses, as well as those that are endorsed by NAHB, by clicking on the links below.
HBA of Greenville member benefit programs
NAHB Members Advantage programs
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Gingrich, Clyburn homeownership rally speeches posted
Did you miss the Homeownership Works Rally? Wish you had been there to hear Speaker Newt Gingrich and Congressman Jim Clyburn talk about their positions on homeownership?
Both are now available for viewing thanks to the South Carolina REALTORS® association.
Click here to view Congressman Jim Clyburn.
Click here to view Speaker Newt Gingrich.
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Did you miss the Homeownership Works Rally? Wish you had been there to hear Speaker Newt Gingrich and Congressman Jim Clyburn talk about their positions on homeownership?
Both are now available for viewing thanks to the South Carolina REALTORS® association.
Click here to view Congressman Jim Clyburn.
Click here to view Speaker Newt Gingrich.
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Harold Moore Builder Selected For Pavilion Project by Greenville Recreation District
GREENVILLE, SC ? Harold Moore Builder Inc. has been selected by the Greenville County Recreation District for additions and improvements to The Pavilion recreation complex in Taylors. The project includes installation of a vertical platform lift to assist disabled patrons in reaching the facility’s second floor.
“The Pavilion is a great venue for children and adults, and we’re delighted to be given the opportunity to give the facility greater accessibility for all visitors,” said Wayne Moore, president of Harold Moore Builder Inc.
Established in 1971, Harold Moore Builder, Inc. is a licensed General Contractor serving residential and commercial clients in the Upstate region of South Carolina. Services include all phases of residential and commercial construction, maintenance and repair from permitting to overall project management.For more information, contact Harold Moore Builder Inc. at (864) 269-4761 or online at www.haroldmoorebuilder.com.
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GREENVILLE, SC ? Harold Moore Builder Inc. has been selected by the Greenville County Recreation District for additions and improvements to The Pavilion recreation complex in Taylors. The project includes installation of a vertical platform lift to assist disabled patrons in reaching the facility’s second floor.
“The Pavilion is a great venue for children and adults, and we’re delighted to be given the opportunity to give the facility greater accessibility for all visitors,” said Wayne Moore, president of Harold Moore Builder Inc.
Established in 1971, Harold Moore Builder, Inc. is a licensed General Contractor serving residential and commercial clients in the Upstate region of South Carolina. Services include all phases of residential and commercial construction, maintenance and repair from permitting to overall project management.For more information, contact Harold Moore Builder Inc. at (864) 269-4761 or online at www.haroldmoorebuilder.com.
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