FLEX BILL PASSES - CODE REVIEW BEGINS IN MARCH

PA 504 places the Michigan Residential Code on a flexible code adoption cycle. Currently the residential code and the energy requirements found in chapter 11 of the residential code must be updated every three years whether such an update is needed or not.

Commencing with the 2015 national code change cycle the residential code will shift to the flexible code cycle found in the bill. The process of updating the 2009 Residential Code, including the residential energy efficiency requirements found in Chapter 11 of the residential code, by adding, amending or rescinding rules will begin by March 27, 2013. This is the same process the state has used in for previous code updates. Updates to the commercial codes began last year.

PA 504 also prevents the adoption or enforcement of any new or existing code, including the new International Green Construction Code, which is not already listed in the Single State Construction Code Act. In order for a new, unlisted code to be promulgated and enforced, the Legislature must first pass a bill and the Governor must sign that bill adding the code to the list found in the Single State Construction Code Act. This requirement does not apply to codes, such as the residential code, already listed in the law. It also prevents the substitution of an unlisted code for a code named in the law which was the subject of the administrative procedures lawsuit filed by the association in 2005.

Lee Schwartz

Executive Vice President for Government Relations
Home Builders Association of Michigan-HBAM

Remodeling Market Index Rises to Five-Year High

WASHINGTON, Jan. 26 - 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."

For more information about remodeling, visit www.nahb.org/remodel.

House Passes Flexible Code Cycle Bill

The Michigan House of Representative has taken the first step to restoring sanity to Michigan’s

construction code process. House Bill 4561, the Flexible Code Cycle bill introduced by State

Representative Joe Havemam, R-Holland, was approved on Thursday by a bipartisan vote of 68 to 39.

Haveman’s measure was supported by the Michigan Municipal League, the Michigan Association of

Realtors, the Small Business Association of Michigan, the American Wood Council, the National

Federation of Independent Business, the Coalition for a Fair Energy Code as well as the Michigan

Association of Home Builders.  The bill now goes to the Michigan State Senate where it is expected to be referred to the Senate Regulatory Reform Committee.

The measure was actually approved twice. The first was House Roll Call 518 when the bill tallied a 68

to 38 vote count. Almost immediately after the first vote was taken the House Majority Floor Leader

asked for a second vote on the bill in order to allow a representative who was off the floor talking

with the Lieutenant Governor a chance to vote on the bill. Roll Call 519 ended with a vote of 68 to

39.

Individual representatives were heavily lobbied by a formidable national coalition who opposed this

common sense reform. That coalition included makers of insulation products who gain every time a

more stringent and expensive energy code is adopted, fire sprinkler manufacturers and fire officials

who demand residential sprinklers in all homes, the electrical manufacturers backing arc

‐fault interrupters, and the private companies that create the code and then profit every time a new edition is published.

Roger Papineau Appointed to Represent Residential Builders

Longtime MAHB member and construction code guru Roger Papineau has been appointed to represent residential builders on the State Construction Code Commission. He replaces MAHB member Don Pratt who served on the Commission for the past 12 years, eight as the Commission Chair.

Roger been active in the creation, promulgation and enforcement of codes on the national state and local levels and has served several times as the chair of the MAHB’s Building Code Committee. As a member of the Building Officials Code Administrators International and its successor the International Code Council (ICC) Roger has attended and testified at almost every public hearing and final action hearing held by the ICC starting in 2001 through 2009. There are four such hearings in each three-year code cycle. These hearings run between 8 to 14 hours each day and last anywhere from seven to twenty-one days.

On the state level, Roger represented home builders on three state-appointed Building Code Review Committees and two Energy Code Review Committees, serving as the chair for the 2009-2010 energy code review committee.

Our congratulations go out to Roger and our thanks go out to Don Pratt for his many years of service to the industry.

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