WASHINGTON, March 29 - Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev., today issued the following statement on legislative proposals by Congressional leaders to effectively eliminate the role of the GSEs in the U.S. mortgage market:
"The National Association of Home Builders strongly supports efforts to modernize the nation's housing finance system, including reforms to the government sponsored enterprises Fannie Mae and Freddie Mac. We can't go back to the system that existed before the Great Recession, but it is critical that any reforms be well-conceived, orderly and phased in over time.
"Proposals announced today by key Republicans in Congress represent a piecemeal approach to reform that would disrupt the housing market and could push the nation back into a deep recession. These proposals, along with similar plans announced by the Obama Administration in February, show that many policy makers have clearly forgotten housing's importance to the economy.
"America's home builders urge the Administration and Republicans in Congress to consider the potential consequences of their proposals. Congress needs to develop a workable housing finance system before it moves forward with policies that would further destabilize a housing market that is already struggling. Housing can be the engine of job growth this country needs, but it can't fill that vital role if Congress and the Administration make damaging, ill-advised changes to the housing finance system at such a critical time."
Wednesday, March 30, 2011
Tuesday, March 29, 2011
Strategies for Storage
by Cindy Siwecki, CMP
It’s no secret that homes are getting smaller and recently published articles have blasted Americans for being such large consumers of just about everything. The question is, "In smaller homes, where are they going to put all of the 'stuff'?"
While it may be impractical for families to live in “high density housing on transportation corridors,” we do need to face the reality that not all families will be able to afford a big home like the one they grew up in. Consumerism is part of the American culture and regardless of the economically-driven trend to purchase function rather than luxury, re-cycled vs. newly created, or vintage rather than the latest trend, it all needs to be stored somewhere and the average closet has its size limits.
Builders have an opportunity to differentiate their smaller-sized product by offering storage spaces that no one else has or rather no one else takes advantage of. There are many “dead” spaces in a home that can be turned into special places to store treasures or junk, it’s all in the eye of the beholder.
The self-storage industry estimates that 10 million households (approximately 9 percent) in the U.S. rent outside storage space, which is a 6 percent increase over the past 10 years. Renters state the reason as the ability to be mobile and home owners state that they do not have enough space in their primary residence. In these difficult economic times, many owners are cleaning out off-site storage units rather than continue to pay up to $500 per month for them. Self-storage developers count on the fact that once a home owner’s box is stored, it rarely gets re-visited.
According to the Self-Storage Association, the most prevalent renters are in the $20,000-30,000 income-bracket and the second and third largest groups are from $60,000-75,000 and $75,000-125,000. The latter two groups are the target audience for most home builders.
In price-sensitive markets, builders need to demonstrate how potential buyers can live in smaller square footages and remain clutter-free. The following are a few ideas that can be done inexpensively with cabinets or just the cabinet doors from Home Depot or Lowe’s and may need to be modified based on local building codes.
1.In tight garages, add high, horizontal cabinets in the garage for items that need to be out of children’s reach or that are rarely needed. For example, above a two-car garage door, there is enough room for a bank of cabinets. Three double door cabinets can fit on each side of the garage door opener. The garage door needs to be closed in order to access them but they are great extra storage.
2.Add another bank on the opposite wall above the door into the home. They can be slightly larger as there is more room above the door on this wall vs. the garage door wall.
3.If the garage is finished and too narrow for a surface-mounted cabinet, select an interior wall and leave out the sheetrock one side between the studs. Add a 2 x 4 to make a 6-7 inch deep space and paint it the color of the garage. Buy a pre-made cabinet door and hardware and mount it directly to the wood. For long spaces, use a pantry door plus a cabinet door. Standard pre-made cabinet doors are sized such that two areas can be created side by side and the doors will meet in the middle and rest on the stud. Shelves can be purchased for the appropriate depth and just need to be cut for the width. The whole inside of the garage wall can turn into storage and by leaving the area around the base in its original state; the garage can be swept out or hosed without damage to the cabinets.
4.Fireplace framing is often oversized relative to the pre-fab box or unit that is installed. There is usually dead space that can be utilized for storage and still meet necessary code requirements. If it is on an interior wall, check to see if the wall behind it can be used for storage. For example, the lower area behind the firebox could be shallow shelves behind doors and the area above the box can be deeper shelving that is either open or behind doors. On raised fireplaces that offer a hearth for seating, add cabinets under the seating area.
5.Stairs offer great storage spaces. If they are near the kitchen, make a deep pantry. Owners need places to store large kitchen items such as over-sized bowls, chafing dishes, etc. Leave a foot between the shelf and the doorway inside to create space on the inside for a broom and mop. On the inside wall spaces on either side of the door, add pegboard with various attachments. This is a great place for home owners to have their own mini-hardware store with space to hang batteries, picture hangers, and all those little items that get thrown in a drawer that no one can find again. Small items can be put in a sandwich bag and hung on the pegboard. Add a plug for chargers so battery operated appliances (i.e. mini-vac) can be charging while hidden from view.
6.For accessing tight spaces under stairs, install a door that fits between the studs. Many door manufacturers offer half-width doors so they will match the rest of the doors in the home. Sheetrock the individual stairs underneath so the buyer can have full access to all of the space. They can store over-sized items that do not require tall clearance such as sports equipment or car seats. Add a plug for chargers.
7.Stairs that curve typically have one side that includes a curved sheetrock wall. The curve in the sheetrock lends itself to an art niche, which is often included. At the top of the stairs, there is dead space where the curved wall joins the straight wall. This is a great place to add a deep sheetrock floor to ceiling cabinet even though the interior may be an odd shape due to the curve. The cabinet door will fit between the studs and open into a wider space. This is a great space for linens or you can leave the interior open for large items.
8.Heat/AC duct walls provide opportunities for bookshelves and or cabinet spaces. Home owners appreciate even shallow shelf spaces for books, accessory displays, children’s toys or DVDs.
9.In narrow halls, create mini-cabinet space by accessing the space between the studs, add shallow shelves, and put on a cabinet door. Keep the doors a light color and it can really dress up a tight space and make it seem larger. The inside shelves are shallow and offer great places to store home-office supplies, soft drinks, mugs or other small items. These can be added to any room.
10.Attic space offers a huge opportunity for storage and, if possible, can demonstrate the space and offer some finish options. Builders often hesitate to offer convenient access to the space due to building code restrictions and concerns about excess weight on the structure. Create access with a pull-down stair, an area of plywood at the top where someone could stand or kneel, and a light. Buyers will get a sense of the space, which will add value to the home.
Smaller homes are a compromise for many buyers and floor space is at a premium. By utilizing dead spaces behind walls, the home can “live” much larger. If a potential buyer believes that the new home can handle their need for storage, they will pay more. Eliminating and/or reducing the need for off-site storage can save home owners several hundred dollars per month, which makes a new home more affordable.
Cindy Siwecki, CMP, is the senior vice president for Accelerated Marketing Partners. Her areas of expertise include research, marketing and sales, land acquisition evaluation, product development, floor plans, merchandising, pricing and absorption. She works with all types of homes, including highrise, midrise, conversion, SFD-high density in-fill and luxury suburban. Previously, Siwecki worked with the Reiser Group and the Ryness Company, creating The Ryness Report for the latter, which is now an industry benchmark for tracking sales activity in the West. She is also involved with NAHB, as a member of the 2010 IRM Board of Governors, a presenter for IBS and a CSP instructor. Siwecki is has also served as president for her local SMC and as a member of her SMC's Board of Directors. She has won numerous awards, including The Nationals' Marketing Director of the Year and Marketing Director of the Year for the Northern California SMC's MAME Awards. You can reach Siwecki at csiwecki@acceleratedmp.com.
For more information about this item, please contact Tamsin Ayre at 800-368-5242 x8673 or via e-mail at tayre@nahb.org.
It’s no secret that homes are getting smaller and recently published articles have blasted Americans for being such large consumers of just about everything. The question is, "In smaller homes, where are they going to put all of the 'stuff'?"
While it may be impractical for families to live in “high density housing on transportation corridors,” we do need to face the reality that not all families will be able to afford a big home like the one they grew up in. Consumerism is part of the American culture and regardless of the economically-driven trend to purchase function rather than luxury, re-cycled vs. newly created, or vintage rather than the latest trend, it all needs to be stored somewhere and the average closet has its size limits.
Builders have an opportunity to differentiate their smaller-sized product by offering storage spaces that no one else has or rather no one else takes advantage of. There are many “dead” spaces in a home that can be turned into special places to store treasures or junk, it’s all in the eye of the beholder.
The self-storage industry estimates that 10 million households (approximately 9 percent) in the U.S. rent outside storage space, which is a 6 percent increase over the past 10 years. Renters state the reason as the ability to be mobile and home owners state that they do not have enough space in their primary residence. In these difficult economic times, many owners are cleaning out off-site storage units rather than continue to pay up to $500 per month for them. Self-storage developers count on the fact that once a home owner’s box is stored, it rarely gets re-visited.
According to the Self-Storage Association, the most prevalent renters are in the $20,000-30,000 income-bracket and the second and third largest groups are from $60,000-75,000 and $75,000-125,000. The latter two groups are the target audience for most home builders.
In price-sensitive markets, builders need to demonstrate how potential buyers can live in smaller square footages and remain clutter-free. The following are a few ideas that can be done inexpensively with cabinets or just the cabinet doors from Home Depot or Lowe’s and may need to be modified based on local building codes.
1.In tight garages, add high, horizontal cabinets in the garage for items that need to be out of children’s reach or that are rarely needed. For example, above a two-car garage door, there is enough room for a bank of cabinets. Three double door cabinets can fit on each side of the garage door opener. The garage door needs to be closed in order to access them but they are great extra storage.
2.Add another bank on the opposite wall above the door into the home. They can be slightly larger as there is more room above the door on this wall vs. the garage door wall.
3.If the garage is finished and too narrow for a surface-mounted cabinet, select an interior wall and leave out the sheetrock one side between the studs. Add a 2 x 4 to make a 6-7 inch deep space and paint it the color of the garage. Buy a pre-made cabinet door and hardware and mount it directly to the wood. For long spaces, use a pantry door plus a cabinet door. Standard pre-made cabinet doors are sized such that two areas can be created side by side and the doors will meet in the middle and rest on the stud. Shelves can be purchased for the appropriate depth and just need to be cut for the width. The whole inside of the garage wall can turn into storage and by leaving the area around the base in its original state; the garage can be swept out or hosed without damage to the cabinets.
4.Fireplace framing is often oversized relative to the pre-fab box or unit that is installed. There is usually dead space that can be utilized for storage and still meet necessary code requirements. If it is on an interior wall, check to see if the wall behind it can be used for storage. For example, the lower area behind the firebox could be shallow shelves behind doors and the area above the box can be deeper shelving that is either open or behind doors. On raised fireplaces that offer a hearth for seating, add cabinets under the seating area.
5.Stairs offer great storage spaces. If they are near the kitchen, make a deep pantry. Owners need places to store large kitchen items such as over-sized bowls, chafing dishes, etc. Leave a foot between the shelf and the doorway inside to create space on the inside for a broom and mop. On the inside wall spaces on either side of the door, add pegboard with various attachments. This is a great place for home owners to have their own mini-hardware store with space to hang batteries, picture hangers, and all those little items that get thrown in a drawer that no one can find again. Small items can be put in a sandwich bag and hung on the pegboard. Add a plug for chargers so battery operated appliances (i.e. mini-vac) can be charging while hidden from view.
6.For accessing tight spaces under stairs, install a door that fits between the studs. Many door manufacturers offer half-width doors so they will match the rest of the doors in the home. Sheetrock the individual stairs underneath so the buyer can have full access to all of the space. They can store over-sized items that do not require tall clearance such as sports equipment or car seats. Add a plug for chargers.
7.Stairs that curve typically have one side that includes a curved sheetrock wall. The curve in the sheetrock lends itself to an art niche, which is often included. At the top of the stairs, there is dead space where the curved wall joins the straight wall. This is a great place to add a deep sheetrock floor to ceiling cabinet even though the interior may be an odd shape due to the curve. The cabinet door will fit between the studs and open into a wider space. This is a great space for linens or you can leave the interior open for large items.
8.Heat/AC duct walls provide opportunities for bookshelves and or cabinet spaces. Home owners appreciate even shallow shelf spaces for books, accessory displays, children’s toys or DVDs.
9.In narrow halls, create mini-cabinet space by accessing the space between the studs, add shallow shelves, and put on a cabinet door. Keep the doors a light color and it can really dress up a tight space and make it seem larger. The inside shelves are shallow and offer great places to store home-office supplies, soft drinks, mugs or other small items. These can be added to any room.
10.Attic space offers a huge opportunity for storage and, if possible, can demonstrate the space and offer some finish options. Builders often hesitate to offer convenient access to the space due to building code restrictions and concerns about excess weight on the structure. Create access with a pull-down stair, an area of plywood at the top where someone could stand or kneel, and a light. Buyers will get a sense of the space, which will add value to the home.
Smaller homes are a compromise for many buyers and floor space is at a premium. By utilizing dead spaces behind walls, the home can “live” much larger. If a potential buyer believes that the new home can handle their need for storage, they will pay more. Eliminating and/or reducing the need for off-site storage can save home owners several hundred dollars per month, which makes a new home more affordable.
Cindy Siwecki, CMP, is the senior vice president for Accelerated Marketing Partners. Her areas of expertise include research, marketing and sales, land acquisition evaluation, product development, floor plans, merchandising, pricing and absorption. She works with all types of homes, including highrise, midrise, conversion, SFD-high density in-fill and luxury suburban. Previously, Siwecki worked with the Reiser Group and the Ryness Company, creating The Ryness Report for the latter, which is now an industry benchmark for tracking sales activity in the West. She is also involved with NAHB, as a member of the 2010 IRM Board of Governors, a presenter for IBS and a CSP instructor. Siwecki is has also served as president for her local SMC and as a member of her SMC's Board of Directors. She has won numerous awards, including The Nationals' Marketing Director of the Year and Marketing Director of the Year for the Northern California SMC's MAME Awards. You can reach Siwecki at csiwecki@acceleratedmp.com.
For more information about this item, please contact Tamsin Ayre at 800-368-5242 x8673 or via e-mail at tayre@nahb.org.
Monday, March 28, 2011
Don’t Miss Out on Great Green Remodeling Sessions and Keynote Speaker Mike Holmes of ‘Holmes on Homes’ at the 2011 National Green Building Conference
Taking place on May 1-3 at the Salt Palace Convention Center in Salt Lake City, the 2011 National Green Building Conference will be focused on “making the value connection” and communicating to prospective home buyers and others the value of green upgrades in their homes.
“Green building and remodeling creates value in so many ways,” said Doug Calvert, a builder from Gainesville, Ga., and chair of the National Green Building Conference and Expo Working Group. “This year’s conference will help housing industry professionals explain that value to home buyers, home owners, policy makers, appraisers, financiers and others whose decisions will shape the market.”
Conference organizers are also excited to announce that Mike Holmes, the host of "Holmes on Homes" and "Holmes Inspection" on HGTV, will be the keynote speaker at the opening session which will take place at 9:00 a.m. on Monday, May 2, at the Salt Palace Convention Center.
Mike Holmes
"Mike Holmes has a passion for high performance green homes," said Calvert. "He really connects with people with his message about the potential of green building."
Prior to the keynote, the conference kicks off on May 1 with a Green Building and Technology Tour of the latest applications of green building techniques in local homes and communities. Don't miss the high-end remodel that is featured on the tour. The home is located on a small lot in the heart of Park City, Utah and includes numerous green features including a geothermal system.
Another conference highlight, the National Green Building Awards, which includes an award for Project of the Year - Remodel, takes place the evening of May 2 at the Hilton Salt Lake City Center. Winners of the awards set the standard for sustainability in residential construction and remodeling.
The conference this year features a range of educational sessions to meet the needs of both relative newcomers and experienced remodeling and green building professionals.
A short sample of educational offerings for remodelers includes:
High Performance Renovations. As any good green remodeler will tell you, renovating older homes with antiquated systems to be more energy efficient and green is a tough a challenge. Hear how two builders approached green renovation in very different ways -- but both achieved very high performance and did it affordably.
Tax Reform and The Future of Federal Energy Efficiency Tax Credits. This session will review the available federal tax credits and deductions for energy efficient housing. We will also discuss modifications Congress may explore to the existing tax incentives as well as take look at what impact tax reform may have—both on these tax incentives and the housing industry as a whole.
Affordable Green Construction and Renovation. Want the answers for low-cost green? Explore affordable and efficient green construction methods and materials with a special emphasis on energy efficiencies, using the results of a 10-home demonstration project in St. Louis as the platform. Patrician Place is the collaborative experimental effort featuring the HBA of St. Louis Green Council, St. Louis County, USGBC, ENERGY STAR, Laclede Gas, and Ameren UE. This presentation discusses the results of a year's monitoring of home performance to determine the most cost-efficient construction using actual homebuilder hard costs. Potential methods for effective marketing of energy efficient green construction will also be explored also.
What Should I Do With My Windows? Home owners who are interested in making their home greener often choose to install energy-efficient windows as their first step. But with all of the options for windows – including improved energy-efficiency, reduced glare, privacy, thermal comfort, just to name a few – what ones should you be recommending to your customer? This session will help remodelers to compare and select window retrofit options based on the attributes the options can provide. Participants will come away from the session understanding the full range of window retrofit options, their attributes the options can address, as well as rationally compare the options and attributes in order to select the most appropriate window retrofit option for their customers.
For information about the conference, click here.
For more information, email Chad Riedy or call him at 800-368-5242 x8225.
For information about exhibiting at the expo, contact Chris Hood, x8684.
Those interested in sponsorship opportunities should contact Grante Wright, x8051, or Harris Floyd, x8208.
“Green building and remodeling creates value in so many ways,” said Doug Calvert, a builder from Gainesville, Ga., and chair of the National Green Building Conference and Expo Working Group. “This year’s conference will help housing industry professionals explain that value to home buyers, home owners, policy makers, appraisers, financiers and others whose decisions will shape the market.”
Conference organizers are also excited to announce that Mike Holmes, the host of "Holmes on Homes" and "Holmes Inspection" on HGTV, will be the keynote speaker at the opening session which will take place at 9:00 a.m. on Monday, May 2, at the Salt Palace Convention Center.
Mike Holmes
"Mike Holmes has a passion for high performance green homes," said Calvert. "He really connects with people with his message about the potential of green building."
Prior to the keynote, the conference kicks off on May 1 with a Green Building and Technology Tour of the latest applications of green building techniques in local homes and communities. Don't miss the high-end remodel that is featured on the tour. The home is located on a small lot in the heart of Park City, Utah and includes numerous green features including a geothermal system.
Another conference highlight, the National Green Building Awards, which includes an award for Project of the Year - Remodel, takes place the evening of May 2 at the Hilton Salt Lake City Center. Winners of the awards set the standard for sustainability in residential construction and remodeling.
The conference this year features a range of educational sessions to meet the needs of both relative newcomers and experienced remodeling and green building professionals.
A short sample of educational offerings for remodelers includes:
High Performance Renovations. As any good green remodeler will tell you, renovating older homes with antiquated systems to be more energy efficient and green is a tough a challenge. Hear how two builders approached green renovation in very different ways -- but both achieved very high performance and did it affordably.
Tax Reform and The Future of Federal Energy Efficiency Tax Credits. This session will review the available federal tax credits and deductions for energy efficient housing. We will also discuss modifications Congress may explore to the existing tax incentives as well as take look at what impact tax reform may have—both on these tax incentives and the housing industry as a whole.
Affordable Green Construction and Renovation. Want the answers for low-cost green? Explore affordable and efficient green construction methods and materials with a special emphasis on energy efficiencies, using the results of a 10-home demonstration project in St. Louis as the platform. Patrician Place is the collaborative experimental effort featuring the HBA of St. Louis Green Council, St. Louis County, USGBC, ENERGY STAR, Laclede Gas, and Ameren UE. This presentation discusses the results of a year's monitoring of home performance to determine the most cost-efficient construction using actual homebuilder hard costs. Potential methods for effective marketing of energy efficient green construction will also be explored also.
What Should I Do With My Windows? Home owners who are interested in making their home greener often choose to install energy-efficient windows as their first step. But with all of the options for windows – including improved energy-efficiency, reduced glare, privacy, thermal comfort, just to name a few – what ones should you be recommending to your customer? This session will help remodelers to compare and select window retrofit options based on the attributes the options can provide. Participants will come away from the session understanding the full range of window retrofit options, their attributes the options can address, as well as rationally compare the options and attributes in order to select the most appropriate window retrofit option for their customers.
For information about the conference, click here.
For more information, email Chad Riedy or call him at 800-368-5242 x8225.
For information about exhibiting at the expo, contact Chris Hood, x8684.
Those interested in sponsorship opportunities should contact Grante Wright, x8051, or Harris Floyd, x8208.
Thursday, March 24, 2011
Your Action is Needed Today!
Unemployment Insurance Reform – Your ACTION is needed TODAY.
The Michigan Association of Home Builders worked with a coalition of job providers to pass what we view as a win-win for those in need of extended unemployment benefits and those who pay (job providers) into the fund. This would not have been possible without the leadership of and help of the Senate Majority Leader, the Speaker of the House and the Governor. House Bill 4408 was passed in the Senate with 24 votes and in the House with 65 votes.
House Bill 4408, which was introduced by Representative Jim Stamas, is a win-win for job providers hoping to create jobs and individuals struggling to find work because it:Your ACTION is needed TODAY. The Michigan Association of Home Builders worked with a coalition of job providers to pass what we view as a win-win for those in need of extended unemployment benefits and those who pay (job providers) into the fund. This would not have been possible without the leadership of and help of the Senate Majority Leader, the Speaker of the House and the Governor. House Bill 4408 was passed in the Senate with 24 votes and in the House with 65 votes.
House Bill 4408, which was introduced by Representative Jim Stamas, is a win-win for job providers hoping to create jobs and individuals struggling to find work because it:
Others do not see this as a win-win situation. The National Employment Labor Project (NELP) has sent out an email to their members urging them to call Governor Snyder and TELL him to veto the bill, REJECT the cuts to the state UI benefits, and SUPPORT a clean Extended Benefits measure. The Michigan Association ofHome Builders OPPOSES their actions.
Your ACTION is needed – TODAY. Contact Governor Synder’s office at 517-373-3400 and thank him for his leadership on this issue and urge him to SIGN THE BILL that was sent to him by the Michigan Legislature.
On the last page of this update is the record roll call vote showing who supported HB 4408 – please let them know you appreciate their leadership on Unemployment Insurance Reform.
The Michigan Association of Home Builders worked with a coalition of job providers to pass what we view as a win-win for those in need of extended unemployment benefits and those who pay (job providers) into the fund. This would not have been possible without the leadership of and help of the Senate Majority Leader, the Speaker of the House and the Governor. House Bill 4408 was passed in the Senate with 24 votes and in the House with 65 votes.
House Bill 4408, which was introduced by Representative Jim Stamas, is a win-win for job providers hoping to create jobs and individuals struggling to find work because it:Your ACTION is needed TODAY. The Michigan Association of Home Builders worked with a coalition of job providers to pass what we view as a win-win for those in need of extended unemployment benefits and those who pay (job providers) into the fund. This would not have been possible without the leadership of and help of the Senate Majority Leader, the Speaker of the House and the Governor. House Bill 4408 was passed in the Senate with 24 votes and in the House with 65 votes.
House Bill 4408, which was introduced by Representative Jim Stamas, is a win-win for job providers hoping to create jobs and individuals struggling to find work because it:
- Reduces state weekly benefit duration from 26 to 20 weeks for new claimants beginning in January of 2012. This change is expected to produce $300 million in annual savings.
- Requires the Unemployment Insurance Agency (UIA) to more aggressively pursue fraud an abuse in the UI system, which totaled over $143 million in 2009 alone. This change is expected to save $50-$80 million in the first year.
- Fulfills a promise made by Congress to allow displaced workers to continue receiving weeks 79 to 99 of benefits through 2011.
Others do not see this as a win-win situation. The National Employment Labor Project (NELP) has sent out an email to their members urging them to call Governor Snyder and TELL him to veto the bill, REJECT the cuts to the state UI benefits, and SUPPORT a clean Extended Benefits measure. The Michigan Association ofHome Builders OPPOSES their actions.
Your ACTION is needed – TODAY. Contact Governor Synder’s office at 517-373-3400 and thank him for his leadership on this issue and urge him to SIGN THE BILL that was sent to him by the Michigan Legislature.
On the last page of this update is the record roll call vote showing who supported HB 4408 – please let them know you appreciate their leadership on Unemployment Insurance Reform.
Special Message from Gov. Rick Snyder
Throughout my term as Governor, I will deliver Special Messages on policy issues that are vital to Michigan’s future. They will be delivered to my partners in the Michigan House and Senate so that we can initiate discussion and action on innovative reforms that best serve the people of Michigan. Today, I am offering the first such message.
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Senate Set To Hear Proposals For Housing Finance Future
The Senate Banking Committee will hear proposals March 29 for replacing Fannie Mae and
Freddie Mac in a new housing finance system.
In February, the Treasury Department proposed winding down the government‐sponsored
enterprises and gave Congress three possible options for what could replace them.
Following the report, Treasury Secretary Timothy Geithner urged Congress to pass
Wednesday, March 23, 2011
HBAGTA OFFICE CLOSING WEDNESDAY MARCH 23
Due to inclement weather, the HBAGTA office will be closed today, Wednesday, March 23. For any questions, please leave a message on the HBAGTA phone system at (231) 946-2305 or email at mailbox@hbagta.com. Thank you for your understanding.
Tuesday, March 22, 2011
Builders Urge Congress to Restore the Flow of Credit to Housing
March 21, 2011 - At a crucial juncture for the nation's emerging housing recovery, restoring the flow of acquisition, development and construction (AD&C) lending to sustain new housing activity took center stage on March 16 as 500 builders from across the country converged on Capitol Hill for the annual NAHB Legislative Conference.
"Our message to Congress is simple and straightforward," said NAHB Chairman Bob Nielsen. "Unless we resolve the ongoing credit problems for home builders - the vast majority of whom are small business owners who employ less than 10 workers - the industry will lose even more jobs, resulting in longer-term economic damage."
NAHB members who were unable to attend the day-long conference participated by calling the Capitol Hill offices of their representatives and senators to deliver the same message.
In the current economic climate, lenders have basically stopped making AD&C loans and many are calling existing loans, even when the borrower's payments are current. Financial institutions are also requiring additional equity for existing loans, and are refusing to modify loans to give borrowers an opportunity to regroup.
Overly conservative appraisals are presenting further challenges by limiting home sales and refinancing opportunities and exacerbating pressure on outstanding mortgage and housing production loans. Lenders are often citing regulatory requirements or pressure from bank examiners to reduce AD&C loan exposure as the rationale for their actions.
"As a result of this regulatory pressure, the home building industry is having extreme difficulty in obtaining credit for viable projects," said Nielsen. "In short, the credit window seems to have been slammed shut for builders all over the country."
Starting off the day, Reps. Brad Miller (D-N.C.) and Patrick Tiberi (R-Ohio) addressed the builder delegation at the National Housing Center and pledged to work with NAHB to help restore credit for housing production and get the industry back on track. (For a related story in this issue of NBN, click here.)
During the day-long conference, builders met with key leaders from both sides of the aisle in the House and Senate, including:
In 250 individual meetings with their representatives and senators, builders urged their members of Congress to become an original cosponsor of legislation by Rep. Gary Miller (R-Calif.) designed to end the lending crisis.
The measure proposes a legislative fix to specific instances of regulatory excess to allow the banking industry to restore lending for viable home building projects and discourage lenders from curtailing or calling construction loans where payments are current.
As the nation's housing finance system undergoes comprehensive reform in the aftermath of the collapse of government sponsored enterprises Fannie Mae and Freddie Mac, builders also called on Congress to ensure that the federal government continues to provide a backstop for a reliable and adequate flow of affordably priced housing credit under all economic and financial conditions.
On the issue of tax reform, NAHB urged lawmakers to oppose any changes to the tax code that would increase taxes on home owners, renters or home builders.
Curtailing or eliminating the mortgage interest deduction, the capital gains exclusion, the deduction for property taxes, the Low Income Housing Tax Credit and other housing tax incentives would further depress home prices, leaving countless more home owners owing more than their homes are worth and triggering a new wave of foreclosures, they said.
"Our message to Congress is simple and straightforward," said NAHB Chairman Bob Nielsen. "Unless we resolve the ongoing credit problems for home builders - the vast majority of whom are small business owners who employ less than 10 workers - the industry will lose even more jobs, resulting in longer-term economic damage."
NAHB members who were unable to attend the day-long conference participated by calling the Capitol Hill offices of their representatives and senators to deliver the same message.
In the current economic climate, lenders have basically stopped making AD&C loans and many are calling existing loans, even when the borrower's payments are current. Financial institutions are also requiring additional equity for existing loans, and are refusing to modify loans to give borrowers an opportunity to regroup.
Overly conservative appraisals are presenting further challenges by limiting home sales and refinancing opportunities and exacerbating pressure on outstanding mortgage and housing production loans. Lenders are often citing regulatory requirements or pressure from bank examiners to reduce AD&C loan exposure as the rationale for their actions.
"As a result of this regulatory pressure, the home building industry is having extreme difficulty in obtaining credit for viable projects," said Nielsen. "In short, the credit window seems to have been slammed shut for builders all over the country."
Starting off the day, Reps. Brad Miller (D-N.C.) and Patrick Tiberi (R-Ohio) addressed the builder delegation at the National Housing Center and pledged to work with NAHB to help restore credit for housing production and get the industry back on track. (For a related story in this issue of NBN, click here.)
During the day-long conference, builders met with key leaders from both sides of the aisle in the House and Senate, including:
- Senate Majority Leader Harry Reid (D-Nev.)
- Senate Minority Leader Mitch McConnell (R-Ky.)
- House Financial Services Committee Chairman Spencer Bachus (R-Ala.)
- House Ways and Means Committee Chairman Dave Camp (R-Mich.)
- Rep. Sandy Levin (D-Mich.), ranking member of the House Ways and Means Committee
- Senate Banking Committee Chairman Tim Johnson (D-S.D.)
- Sen. Richard Shelby (R-Ala.), ranking member of the Senate Banking Committee
- Senate Minority Whip Jon Kyl (R-Ariz.)
- Senate Republican Policy Chair John Thune (R-S.D.)
- House Assistant Democratic Leader James Clyburn (D-S.C.)
- House Democratic Caucus Chair John Larson (D-Conn.)
In 250 individual meetings with their representatives and senators, builders urged their members of Congress to become an original cosponsor of legislation by Rep. Gary Miller (R-Calif.) designed to end the lending crisis.
The measure proposes a legislative fix to specific instances of regulatory excess to allow the banking industry to restore lending for viable home building projects and discourage lenders from curtailing or calling construction loans where payments are current.
As the nation's housing finance system undergoes comprehensive reform in the aftermath of the collapse of government sponsored enterprises Fannie Mae and Freddie Mac, builders also called on Congress to ensure that the federal government continues to provide a backstop for a reliable and adequate flow of affordably priced housing credit under all economic and financial conditions.
On the issue of tax reform, NAHB urged lawmakers to oppose any changes to the tax code that would increase taxes on home owners, renters or home builders.
Curtailing or eliminating the mortgage interest deduction, the capital gains exclusion, the deduction for property taxes, the Low Income Housing Tax Credit and other housing tax incentives would further depress home prices, leaving countless more home owners owing more than their homes are worth and triggering a new wave of foreclosures, they said.
Monday, March 21, 2011
State of Michigan License Renewal
Renewal applications for licenses due to expire May 31, 2011 will be mailed to the address on record in early April. It is suggested that licensees ensure the Department has the most current address on file so that the renewal application will be received. Approximately one week before that date, licensees may renew online at www.michigan.gov/bcs/renewal
The following items must be completed in order for a renewal to be processed:
- Payment of the $150 renewal fee
- The licensee's statement on the renewal application certifying that any required continuing competency has been completed (individual builders/M&A contractors only)
- The licensee's statement on the renewal application certifying that he/she has a current copy of the Michigan residential code (individual builders/M&A contractors only)
- Qualifying officer with an active individual license (corporations/LLCs/partnerships only)
DELEG Warns Beware of Scam Regarding Continuing Competency Requirements
Scam Targets Licensed Residential Builders and Maintenance & Alteration Contractors
Please download and read the attached News Release from the State of Michigan DELEG for information on how to handle this scam.
Please download and read the attached News Release from the State of Michigan DELEG for information on how to handle this scam.
SPRING CLEANING SAFETY
As the weather begins to warm and thoughts turn to open windows and time spent outdoors, many families undertake the time-honored ritual of spring cleaning. It can involve anything from clearing winter’s debris from your lawn to major renovations, but it is important to remember to work safely during all of your spring cleaning activities.
There are some simple steps you can take to ensure that you are protecting yourself, your family, and the environment.
Ladders can be hazardous when not used properly. In many cases, accidents and injuries occur while using ladders because they are improperly placed, not secured, not the right size for the job, or the user overreaches.
When working with ladders always remember to:
· Read and follow all warning labels that are on the ladder
· Use ladders only on solid, stable and level surfaces
· Keep your body centered on the ladder; never let your belly button pass either side rail
· Never stand on the top two rungs of a step ladder
· Only use a step ladder in a fully opened and locked position; never use it while it is closed, partially opened or leaning on a structure
· Protect yourself from electrical hazards and do not work within 10 feet of overhead power lines
Spring cleaning often involves moving heavy objects such as couches, tables, entertainment consoles and bookcases—a situation where a serious injury can occur. In order to eliminate the risk of objects falling and to lift items safely, always have another person help you.
More tips for lifting heavy objects include:
· Get close to the load
· Maintain an upright posture from the waist up
· Lift with your legs, not your arms or back
· Pivot on your feet, don’t twist from your waist
Using chemicals during cleaning can post a hazard to not only yourself, but also the environment. Read the labels of all chemicals you are using and follow all the recommended safety practices. These may include: wearing protective gear such as gloves and goggles, not mixing the substance with other cleaners, opening windows for ventilation, and following proper disposal guidelines.
Finally, before you use any tools or equipment while cleaning up your yard, make sure you have maintained them in proper working condition and in accordance with the manufacturer’s recommendations. Have your lawnmower serviced yearly, never remove guards or safety devices, and wear appropriate eye, body and hearing protection.
New NAHB Document Explains Detection, Remediation for Problematic Drywall
WASHINGTON, March 16 -- A new resource for builders and remodelers looking for answers on the critical question of how to detect and remediate problematic drywall imported from China in recent years is now available from the National Association of Home Builders (NAHB).
"Imported Problematic Drywall: Identification Strategies and Remediation Guidelines" can be downloaded at www.nahb.org/drywallguidelines.
The publication represents more than a year of intensive research, testing, analysis and evaluation under the auspices of NAHB's Chinese Drywall Task Force, whose mission was to identify a permanent solution to problems with drywall emitting or off-gassing corrosive compounds, which can lead to blackening of copper electrical wiring and air conditioning evaporator coils and can cause mechanical, electrical and electronic failures.
"The downstream effects of these problems include widespread property damage, huge financial losses, hundreds of lawsuits, and legitimate concerns about possible health effects from living with these unpleasant airborne compounds," said NAHB First Vice Chairman Barry Rutenberg, who moderated a webinar to introduce the guidelines to NAHB members.
"In a landscape cluttered with untested products, devices and procedures purported to resolve drywall problems, NAHB based these guidelines on scientifically proven technologies, materials, means and methods for remediating drywall problems in single-family homes, condominiums, apartments and townhomes," Rutenberg said.
Designed to address problematic drywall in residential applications, the document does not represent the only approach to remediating the problem. It is not intended to set minimum or maximum requirements for remediation nor is it intended to be used to determine the effectiveness of remediation efforts that have already been completed. Builders might decide to follow different guidelines that are less inclusive or that include additional measures.
Among some of the document's recommendations:
"Imported Problematic Drywall: Identification Strategies and Remediation Guidelines" can be downloaded at www.nahb.org/drywallguidelines.
The publication represents more than a year of intensive research, testing, analysis and evaluation under the auspices of NAHB's Chinese Drywall Task Force, whose mission was to identify a permanent solution to problems with drywall emitting or off-gassing corrosive compounds, which can lead to blackening of copper electrical wiring and air conditioning evaporator coils and can cause mechanical, electrical and electronic failures.
"The downstream effects of these problems include widespread property damage, huge financial losses, hundreds of lawsuits, and legitimate concerns about possible health effects from living with these unpleasant airborne compounds," said NAHB First Vice Chairman Barry Rutenberg, who moderated a webinar to introduce the guidelines to NAHB members.
"In a landscape cluttered with untested products, devices and procedures purported to resolve drywall problems, NAHB based these guidelines on scientifically proven technologies, materials, means and methods for remediating drywall problems in single-family homes, condominiums, apartments and townhomes," Rutenberg said.
Designed to address problematic drywall in residential applications, the document does not represent the only approach to remediating the problem. It is not intended to set minimum or maximum requirements for remediation nor is it intended to be used to determine the effectiveness of remediation efforts that have already been completed. Builders might decide to follow different guidelines that are less inclusive or that include additional measures.
Among some of the document's recommendations:
- Replace all low-voltage, signal and data wiring; all switches and receptacles; and all smoke, fire and carbon monoxide alarms and life-safety systems. This reiterates interim remediation guidance issued by a Federal Interagency Task Force on this issue last year.
- If the home was built between 2001 and 2008 and it has been confirmed that problematic drywall is present throughout the entire home, total remediation is the only viable option. Selective remediation is an option if problem drywall is found in a limited portion of the home that can be isolated.
- To determine whether the remediation has been adequate, conduct clearance testing after the drywall has been removed and the house has been cleaned and aired out but before the drywall is replaced.
Thursday, March 17, 2011
YOUNG HOME BUYERS WILL LEAD HOUSING MARKET RECOVERY, SAYS NAHB
WASHINGTON, March 17 -- Generation X -young families and adults ages 31 to 45 - are likely to lead the home buying recovery as it gets underway, according to real estate experts who spoke at an educational webinar produced by the National Association of Home Builders (NAHB).
These potential home buyers are most likely to think it's a good time to get off the fence - and have strong opinions about the design features their new homes will include.
At 32 percent of the population of home-buying age - generally defined as those who are at least 30 years old, the Gen X population cohort isn't the largest, but it's the most mobile, said presenter Mollie Carmichael, principal of John Burns Real Estate Consulting in Irvine, Calif. "They are in full force with their careers and they need to accommodate growing families," she said.
In sharp contrast, even though they constitute 41 percent of prospective home buyers, Baby Boomers continue to wait for the market to improve, and their decisions to delay retirement also delay their decisions to downsize into a smaller home, Carmichael said.
Most of the 10,000 buyers and potential buyers in 27 metro areas that the consulting company surveyed were optimistic about a new home purchase, with between 85 percent and 89 percent saying that it was a good time to buy a home. Only 13 percent said they thought home prices would continue to fall, further evidence that it's "not all about price," she said. "They want something compelling, from a design or personalization standpoint," said Carmichael.
In addition, though the average home size is shrinking, a majority of prospective buyers said they would like a bigger home than the one they have. "These are first-time buyers or younger families looking for more room to grow," she said.
Seventy percent said that they were willing to pay $5,000 more for a green home, but those responding to the survey said that they expected new homes to already have many green technology features. They also said they would pay a premium for dark wood cabinets, a separate tub and shower and a fireplace in the living room, and more preferred a great room over formal spaces.
And while community amenities are important to Gen X buyers, 46 percent said they prefer a home in a large-lot, suburban development, versus the 21 percent looking for a traditional or "walkable" neighborhood.
Webinar panelist Heather McCune, director of marketing at Bassenian/Lagoni Architects in Newport Beach, Calif., also emphasized that design will be important in generating sales in the emerging marketplace. "The notion of 'build it and they will come' no longer works. Design matters," she said.
McCune said buyers are looking for homes with a connection between indoor and outdoor spaces, even in colder climates, to create the perception of greater home size, even if the space is only usable for part of the year. They also want more storage, an open floor plan and flexibility in the garage.
"While Gen X numbers are smaller than the birth cohorts before and after them, their numbers have been enlarged by steady immigration," said NAHB Chief Economist David Crowe. "Gen X may wait longer than their predecessors to establish their own household or buy a home because of the recent recession impacts, but the trends are still likely to occur as they have for past generations."
ABOUT NAHB: The National Association of Home Builders is a Washington-based trade association representing more than 160,000 members involved in home building, remodeling, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing and other aspects of residential and light commercial construction. NAHB is affiliated with 800 state and local home builders associations around the country. NAHB's builder members will construct about 80 percent of the new housing units projected for this year.
These potential home buyers are most likely to think it's a good time to get off the fence - and have strong opinions about the design features their new homes will include.
At 32 percent of the population of home-buying age - generally defined as those who are at least 30 years old, the Gen X population cohort isn't the largest, but it's the most mobile, said presenter Mollie Carmichael, principal of John Burns Real Estate Consulting in Irvine, Calif. "They are in full force with their careers and they need to accommodate growing families," she said.
In sharp contrast, even though they constitute 41 percent of prospective home buyers, Baby Boomers continue to wait for the market to improve, and their decisions to delay retirement also delay their decisions to downsize into a smaller home, Carmichael said.
Most of the 10,000 buyers and potential buyers in 27 metro areas that the consulting company surveyed were optimistic about a new home purchase, with between 85 percent and 89 percent saying that it was a good time to buy a home. Only 13 percent said they thought home prices would continue to fall, further evidence that it's "not all about price," she said. "They want something compelling, from a design or personalization standpoint," said Carmichael.
In addition, though the average home size is shrinking, a majority of prospective buyers said they would like a bigger home than the one they have. "These are first-time buyers or younger families looking for more room to grow," she said.
Seventy percent said that they were willing to pay $5,000 more for a green home, but those responding to the survey said that they expected new homes to already have many green technology features. They also said they would pay a premium for dark wood cabinets, a separate tub and shower and a fireplace in the living room, and more preferred a great room over formal spaces.
And while community amenities are important to Gen X buyers, 46 percent said they prefer a home in a large-lot, suburban development, versus the 21 percent looking for a traditional or "walkable" neighborhood.
Webinar panelist Heather McCune, director of marketing at Bassenian/Lagoni Architects in Newport Beach, Calif., also emphasized that design will be important in generating sales in the emerging marketplace. "The notion of 'build it and they will come' no longer works. Design matters," she said.
McCune said buyers are looking for homes with a connection between indoor and outdoor spaces, even in colder climates, to create the perception of greater home size, even if the space is only usable for part of the year. They also want more storage, an open floor plan and flexibility in the garage.
"While Gen X numbers are smaller than the birth cohorts before and after them, their numbers have been enlarged by steady immigration," said NAHB Chief Economist David Crowe. "Gen X may wait longer than their predecessors to establish their own household or buy a home because of the recent recession impacts, but the trends are still likely to occur as they have for past generations."
ABOUT NAHB: The National Association of Home Builders is a Washington-based trade association representing more than 160,000 members involved in home building, remodeling, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing and other aspects of residential and light commercial construction. NAHB is affiliated with 800 state and local home builders associations around the country. NAHB's builder members will construct about 80 percent of the new housing units projected for this year.
Wednesday, March 16, 2011
TAX TIME CAN MEAN BIG SAVINGS FOR HOMEOWNERS
WASHINGTON, March 15 - As the April 18 federal income tax filing deadline approaches, many American homeowners are realizing the financial benefits of homeownership--savings that can add up to tens of thousands of dollars over several years.
"The mortgage interest deduction is one homeownership tax incentive that has been part of the tax code for nearly 100 years," said Bob Nielsen, chairman of the National Association of Home Builders and a home builder from Reno, Nev. "Incentives such as this have helped millions of American families be able to afford a home of their own."
A study from NAHB economists, "The Tax Benefits of Homeownership," details sample savings for a variety of income levels and homeownership situations. In one example, a household with an $80,000 annual income that buys a home with a $200,000 mortgage will save on average $1,765 in the first year--and realize a total benefit of $41,138 over the expected period of homeownership.
The three most important sources of tax savings for homeowners are: deductions for mortgage interest; deductions for real estate taxes; and the capital gains exclusion for the sale of a principal residence.
Homeowners who itemize their federal income tax deductions can deduct 100 percent of their mortgage interest payments on a first or second home for up to $1 million of mortgage debt, as well as interest paid on up to $100,000 of home equity loans.
State and local real estate taxes paid each year on an owner-occupied home are also deductible.
Mortgage insurance premiums--generally required when a home is purchased with a down payment that is less than 20 percent of the mortgage loan amount--can be deducted from taxable income as well.
When it is time to sell their home, most taxpayers don't have to pay capital gains tax on the profit from the sale. Under present law, married couples who have owned and occupied their principal residence for at least two of the past five years do not have to pay any taxes on the first $500,000 in profits from the sale of their home. Single filers earn up to $250,000 tax free.
Homeowners rely on the mortgage interest deduction each year to help offset the costs of homeownership, but the deduction is in danger as a national deficit commission has proposed reducing or eliminating it as part of a restructuring of the tax code.
The NAHB website SaveMyMortgageInterestDeduction.com provides the study "The Tax Benefits of Homeownership" and additional information about the threat to the mortgage interest deduction.
###
EDITOR'S NOTE: NAHB is providing this information for general guidance only. This information does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind nor should it be construed as such. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action on this information, you should consult a qualified professional adviser to whom you have provided all of the facts applicable to your particular situation or question. None of the tax information in this release is intended to be used nor can it be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness,
accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
"The mortgage interest deduction is one homeownership tax incentive that has been part of the tax code for nearly 100 years," said Bob Nielsen, chairman of the National Association of Home Builders and a home builder from Reno, Nev. "Incentives such as this have helped millions of American families be able to afford a home of their own."
A study from NAHB economists, "The Tax Benefits of Homeownership," details sample savings for a variety of income levels and homeownership situations. In one example, a household with an $80,000 annual income that buys a home with a $200,000 mortgage will save on average $1,765 in the first year--and realize a total benefit of $41,138 over the expected period of homeownership.
The three most important sources of tax savings for homeowners are: deductions for mortgage interest; deductions for real estate taxes; and the capital gains exclusion for the sale of a principal residence.
Homeowners who itemize their federal income tax deductions can deduct 100 percent of their mortgage interest payments on a first or second home for up to $1 million of mortgage debt, as well as interest paid on up to $100,000 of home equity loans.
State and local real estate taxes paid each year on an owner-occupied home are also deductible.
Mortgage insurance premiums--generally required when a home is purchased with a down payment that is less than 20 percent of the mortgage loan amount--can be deducted from taxable income as well.
When it is time to sell their home, most taxpayers don't have to pay capital gains tax on the profit from the sale. Under present law, married couples who have owned and occupied their principal residence for at least two of the past five years do not have to pay any taxes on the first $500,000 in profits from the sale of their home. Single filers earn up to $250,000 tax free.
Homeowners rely on the mortgage interest deduction each year to help offset the costs of homeownership, but the deduction is in danger as a national deficit commission has proposed reducing or eliminating it as part of a restructuring of the tax code.
The NAHB website SaveMyMortgageInterestDeduction.com provides the study "The Tax Benefits of Homeownership" and additional information about the threat to the mortgage interest deduction.
###
EDITOR'S NOTE: NAHB is providing this information for general guidance only. This information does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind nor should it be construed as such. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action on this information, you should consult a qualified professional adviser to whom you have provided all of the facts applicable to your particular situation or question. None of the tax information in this release is intended to be used nor can it be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness,
accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
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