Builders Urge Congress to Maintain Ongoing Federal Role to Ensure a Healthy Mortgage Market

WASHINGTON, May 26 - With some members of Congress actively pushing to abolish Fannie Mae and Freddie Mac and end the federal backstop for housing, the National Association of Home Builders (NAHB) told Congress today that maintaining an appropriate level of government support is absolutely essential to preserve financial stability.

Testifying before the Senate Banking Committee, NAHB First Vice Chairman Barry Rutenberg, a home builder from Gainesville, Fla., said that absent a federal role to help reassure mortgage market investors, the cost and availability of mortgage credit would be subject to unpredictable volatility.


"The historical track record from the 1998 Russian crisis to the tragedy of Sept. 11 clearly shows that the private sector is not capable of providing a consistent and adequate supply of housing credit without a government backstop," said Rutenberg. "Therefore, as the private market transitions to assume a greater responsibility, there must be a predictable, permanent federal role in order to ensure a consistent supply of mortgage liquidity and to allow rapid and effective responses to market dislocations and crises."
While NAHB strongly supports efforts to modernize the nation's housing finance system, it is critical that any reforms be well-conceived, orderly and phased in over time.

NAHB opposes legislation pending in the House and Senate that would effectively wind down the operations of Fannie Mae and Freddie Mac without offering a clear vision for the future housing system and a non-disruptive transition to a new secondary market framework. Similarly, NAHB believes that more than a dozen short-term legislative proposals offered by House Republican lawmakers to reduce the support Fannie Mae and Freddie Mac provide to the mortgage markets represent a piecemeal approach to reform that would disrupt the housing market and could push the nation back into a deep recession.

New legislative efforts would take a very different tack from these proposals. Recent bipartisan legislation (H.R. 1859) introduced by Reps. John Campbell (R-Calif.) and Gary Peters (D-Mich.) would replace Fannie Mae and Freddie Mac with five private companies that would issue mortgage-backed securities that have government backing. Legislation currently being developed by Rep. Gary Miller (R-Calif.) would also include a predictable government role in the secondary mortgage market to preserve financial stability in the market and maintain a stable housing sector.

"NAHB views the introduction of H.R. 1859 and Rep. Miller's draft legislative proposal as very positive developments as debate on the future of the housing finance system moves forward in Congress," said Rutenberg. "Maintaining a continuing and appropriate level of government support is necessary to promote investor confidence and ensure liquidity and stability for homeownership and rental housing."
Absent a federal backstop for housing, Rutenberg warned that the 30-year, fixed-rate mortgage, the major housing finance tool for most Americans, would become increasingly scarce and much more costly, pricing many creditworthy borrowers out of the marketplace. Similarly, the availability of financing for multifamily housing would fall woefully short of the growing need.

Qualified Residential Mortgages

Also of great concern to NAHB are proposals unveiled in late March by six federal agencies that would establish a "Qualified Residential Mortgage" (QRM) standard featuring a minimum 20 percent downpayment on a home loan. Requiring 20 percent down would keep homeownership out of reach for most first-time home buyers and middle-class households.

About 62 percent of first mortgages taken out to purchase a home would not have qualified under the proposed QRM standard because they had downpayments of less than 20 percent, according to LPS Applied Analytics, a mortgage data firm.

NAHB estimates that it would take 12 years for a typical family to save enough money for a 20 percent downpayment on a median-priced single-family home and other research has found it would take even longer.

"If buyers are denied access to affordable housing credit, the shadow inventory of foreclosed homes will not be drawn down, a housing recovery will not take hold and economic growth will stall," said Rutenberg.
Moreover, low-downpayment home loans have been originated safely for decades and are not what drove the housing lending crisis, added Rutenberg.

"Subprime, no-doc and other alternative mortgage products crashed our economy," he said. "We believe the Administration and regulators must acknowledge this fact and offer a new plan that ensures a safe and healthy mortgage market and keeps homeownership affordable for working American families."

OFFICE CLOSED

Please note: The HBAGTA Office will be closed on Monday, May 30 to honor those who have served for our freedom.

HOUSING AFFORDABILITY RISES TO RECORD LEVEL, TIGHT FINANCING CONTINUES TO CONSTRAIN SALES

WASHINGTON, May 25 - Nationwide housing affordability during the first quarter of 2011 rose to its highest level in the more than 20 years it has been measured, according to National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) data released today.

The HOI indicated that 74.6 percent of all new and existing homes sold in the first quarter of 2011 were affordable to families earning the national median income of $64,400. This eclipsed the previous high of 73.9 percent set during the fourth quarter of 2010 and marked the ninth consecutive quarter that the index has been above 70 percent. Until 2009, the HOI rarely topped 65 percent and never reached 70 percent.

"With interest rates remaining at historically low levels, today's report indicates that homeownership is within reach of more households than it has been for more than two decades," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. "While this is good news for consumers, home buyers and builders continue to confront extremely tight credit conditions, and this remains a significant obstacle to many potential home sales."

Syracuse, N.Y., was the most affordable major housing market in the country during the first quarter of the year. In Syracuse, 94.5 percent of all homes sold were affordable to households earning the area's median family income of $64,300.

Also ranking near the top of the most affordable major metro housing markets were Youngstown-Warren-Boardman, Ohio-Pa.; Indianapolis-Carmel, Ind.; Warren-Troy-Farmington Hills, Mich.; and Toledo, Ohio.

Among smaller housing markets, the most affordable was Kokomo, Ind., where 98.6 percent of homes sold during the first quarter of 2011 were affordable to families earning a median income of $61,400. Other smaller housing markets near the top of the index included Monroe, Mich.; Cumberland, Md.-W.Va.; Elkhart-Goshen, Ind.; and Springfield, Ohio.

New York-White Plains-Wayne, N.Y.-N.J., led the nation as the least affordable major housing market during the first quarter of 2011. In New York, 24.1 percent of all homes sold during the quarter were affordable to those earning the area's median income of $65,600. This marks the 12th consecutive quarter that the New York metropolitan division has held this position.

Other major metro areas near the bottom of the affordability index included San Francisco-San Mateo-Redwood City, Calif.; Los Angeles-Long Beach-Glendale, Calif.; Honolulu; and Santa Ana-Anaheim-Irvine, Calif., respectively.

San Luis Obispo-Paso Robles, Calif., where 47.6 percent of the homes were affordable to families earning the median income of $72,500, was the least affordable of the smaller metro housing markets in the country during the first quarter. Other small metro areas ranking near the bottom included Santa Cruz-Watsonville, Calif.; Laredo, Texas; Ocean City, N.J; and Santa Barbara-Santa Maria-Goleta, Calif.

Please visit www.nahb.org/hoi for tables, historic data and details.
EDITOR'S NOTE: The NAHB/Wells Fargo HOI is a measure of the percentage of homes sold in a given area that are affordable to families earning that area's median income during a specific quarter. Prices of new and existing homes sold are collected from actual court records by First American Real Estate Solutions, a marketing company. Mortgage financing conditions incorporate interest rates on fixed- and adjustable-rate loans reported by the Federal Housing Finance Board.
The NAHB/Wells Fargo Housing Opportunity 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.

Selling Tips for Home Buyers

There are incredible opportunities to buy a home in today’s market. Interest rates are near historic lows, prices are more competitive than they’ve been in years, and there is a large selection of homes available for sale to choose from. Whether you would like more space to accommodate a growing family or less to better suit an empty-nester lifestyle, the current buyer’s market makes it an ideal time to make a change.

But what if you have to sell your current home before you buy a new one? While the buyer’s market means when you buy your new house you will be able to get more for your money than a few years ago, it also means you will have to make sure your existing home is presented in its most attractive light in order to attract bids from potential buyers.

Here are some tips to help you improve your chances of attracting a buyer:

·        Start with a realistic price. Thoroughly research what homes comparable to yours have sold for in the past year, as well as what the asking price is for the homes that are currently for sale. If you are working with a Realtor, they can do this for you. A price that’s too high may keep your home on the market so long that buyers will assume there are problems.

·         Curb appeal is critical. Some prospective buyers never get out of the car before deciding that a run-down house is not for them. Keep your lawn neatly mowed and seed bare spots, mulch all the garden beds and plant colorful annuals, and paint or touch up fences, trim and the house itself, if it needs it. Fix anything sub-par that’s visible from the street.

·         Clean, clean, clean. From the minute buyers arrive at your front door, make sure that everything they see is super clean. Put out a new welcome mat. Thoroughly clean carpets, floors, baseboards, curtains, windows, and especially all the surfaces and appliances in your bathrooms and kitchens. Repaint the walls if they are scuffed or stained.

 ·        Don’t forget odor. The home should both look and smell clean and welcoming. Open windows in good weather to encourage fresh air to circulate. Use scented cleaners or air fresheners. Some sellers even pop a batch of cookies into the oven or simmer spiced cider on the stove if they know a potential buyer is coming.

·         Make sure everything works. Fix everything from the merely cosmetic such as burned-out light bulbs, to things that could raise red flags with buyers such as broken sink disposals and leaky faucets. If you don’t fix it, their home inspector will find it.

·       Clutter kills sales. Make sure beds are made, toys are put away, bookshelves are neatly organized, and counters are cleared of personal items. If your house is too full—and that includes attics and basements—prospective buyers will have trouble visualizing their furnishings and possessions fitting in the space. Consider temporarily moving some furniture or boxes to the homes of friends or family, rent a storage facility, or even have a yard sale.

Prospective buyers can see that buying a house that’s already attractive and in good working order will make their lives easier—and could help you get into the home of your dreams that much sooner.

To learn more about homes for sale in the Grand Traverse Area contact the Home Builders Association of the Grand Traverse Area or the Traverse Area Association of Realtors.

The Lasting Value of Homeownership

During National Homeownership Month in June, the housing industry celebrates the many benefits of owning a home. Despite the downturn in the housing market, families continue to seek to achieve the American Dream of homeownership and take their place among the more than 74 million Americans that own a home.

The value Americans place on owning their home continues even through times of economic hardship. The Fannie Mae National Housing Survey conducted in January 2010 showed that two-thirds of American adults said they still preferred owning a home. And 70 percent of respondents said they believe buying a home continues to be one of the safest investments available.

Home appreciation over the long term builds financial security for a family’s future. But most home owners don’t have to wait for the home’s value to increase to realize the financial benefits. Right from the first year, the majority of home owners are able to annually deduct the mortgage interest and property taxes they paid off their taxable income. This can mean thousands of dollars saved off a family’s tax bill every year. 

When the family sells the home, the capital gains exclusion exempts up to $250,000 of the profit ($500,000 for married couples) from taxes. 

But the value of homeownership can be much more than financial.

Owning a home can often be a lifestyle improvement, enabling a family to enjoy a neighborhood, features and other amenities that suit their present and future day-to-day activities.

Newly-constructed houses can deliver energy efficiency, storage space, well-designed floor plans, and the latest technologies in electrical systems and appliances. Rooms are often spacious, with high ceilings and lots of windows to let in light.  A new home also comes with the peace of mind of little maintenance needed and a warranty against defects.

Existing homes offer neighborhoods whose character has already been established, mature landscaping with tall trees, and an existing selection of businesses and services for the home owner to use. If the home isn’t already a great fit to the buyers’ taste, it can be renovated to reflect the new owners’ needs and preferences.

Homeownership lets families build connections. Owners take pride in their homes, and develop friendships with other people who also own homes and care about the neighborhood. A home is a place where families make a sanctuary that feels comfortable and safe, and where they develop social networks, begin friendships and create memories that will last a lifetime.

To learn more about the lasting value of homeownership in the Grand Traverse Area, contact the Home Builders Association of the Grand Traverse Area at (231) 946-2305.

Appraisers Making Headway in Recognizing Value of Green Home Features

The continuing effort to provide recognition for the added value of energy-saving and other green features in homes will take another step forward around mid-summer when the Appraisal Institute is expected to add a green and energy addendum to its appraisal report form.

Green builders have been waging an uphill battle in recent years to convince the lending community to recognize the difference between homes that are just built to code and those that incorporate techniques, systems and products that can dramatically reduce monthly utility costs, which represent a significant expense for home owners.

Sandra Adomatis, whose firm, Adomatis Appraisal Service, is located in Punta Gorda, Fla., announced the new Appraisal Institute addendum on May 3 during NAHB’s National Green Building Conference & Expo in Salt Lake City.

Adomatis said she hopes the addendum will be adopted by the Federal Housing Administration, Fannie Mae andFreddie Mac. “Builders can fill it out ahead of time and give it to the appraiser,” she said, who “can’t always see what’s behind your walls.”

Adomatis confessed that she herself knew little about the attributes of green homes until she ran into a green builder whose home she was appraising who was kind enough to point out that she didn’t know what she was doing.

She told him it was the first green home she had ever worked on, and that prompted the builder to provide a crash course in green housing, the start of her education on an increasingly important segment of the housing industry about which most appraisers still know next to nothing.

“Ask 10 appraisers and only one has ever seen a HERS report,” she said, referring to the evaluation that a trained energy rater provides on the overall energy efficiency of an individual home.

The Appraisal Institute, she said, has been stepping up efforts to make its members more knowledgeable through its Valuation of Sustainable Buildings Professional Development Program, which is conducted in the classroom and online and whose curriculum includes an introductory course and a course presenting case studies on residential green buildings, with a similar course on commercial buildings coming on line soon.

Some builders have been signing up for the instruction, she added, and more courses will be added as new technologies are developed.

Correcting a ‘Blind Spot’ in Mortgage Underwriting

As commonly discussed during the conference, consumers themselves have a lot to learn about green building, and upgrading the existing housing stock, which lags far behind new housing in energy efficiency, represents a major opportunity for the industry.

Adomatis described one concept, embodied in legislation championed by Sen. Michael Benner (D-Colo.), that would correct a “blind spot” in current mortgage underwriting and home appraisal practices by adding expected energy costs to the principal, interest, taxes and insurance now entered into the equation when qualifying a buyer for a mortgage.

The SAVE (Sensible Accounting to Value Energy) Act would hand a clear advantage to new homes over existing homes, she said, but also would create a healthy retrofit market.

The second phase of the program envisioned by SAVE would tackle water consumption.

Adomatis recommended Home Energy Saver Pro as a tool for assessing average utility bills for homes compared to other homes in the same zip code. “This is a good tool for appraisers,” she said.

Finding Qualified Appraisers

Along with other panelists, Adomatis emphasized that finding appraisers who are experienced in green is key for green builders and their customers.

“Qualify the appraiser,” she said, and determine “what education and experience they have in green. Ask lenders to ask for them.”

“The appraiser is still under pressure from the lender,” she added, stemming largely from policies in the secondary mortgage market, where extra construction costs for green are not allowed to be used in valuations.

“The comparables have to be there,” Adomatis said, making it important to pair up houses to demonstrate the savings in average monthly utility bills in a more expensive, and valuable, green home over a comparable home built to code.

In cases where there are disagreements over appraisals of green homes, Adomatis directed builders to guidance provided by Fannie Mae last year.

“If the lender has concerns with any aspect of the appraisal that result in questions about the reliability of the opinion of market value, the lender must attempt to resolve its concerns with the appraiser who originally prepared the report,” she said, and “try to work it out with them.”

However, if the appraiser has overlooked certain green features and has not correctly described the quality of the property, that can be the basis hiring someone else to complete the appraisal report.

If they are unable to resolve their concerns with the appraiser, “the lender must obtain a replacement report prior to making a final underwriting decision on the loan,” Adomatis advised.

Greening the Multiple Listing Services

Including green attributes in the homes on Multiple Listing Services has received a major push in the past couple of years from those who understand the need for sales comps to show appraisers and lenders how green certifications and features can boost the value of green homes and to enable prospective buyers to more effectively search for the green homes they want.

On that battlefront, there has been considerable headway, according to Al Medina, director of the National Association of Realtors®’ (NAR) Green Resource Council, but there is considerably further to go in aggregating data from the MLS system.

Comps are the “holy grail” in the quest for a system that can support proper green home appraisals, Medina said, but the going has been slower than he would like because the nation’s 862 MLSs are independently owned and the NAR is not constituted so that it can dictate to local Realtor® groups what they must do on this issue.

A Realtors® survey at the end of last year found that 80 of the MLSs, or 13%, had live searchable green fields.

About 70, or 11%, were in the process of implementing these fields, and about 80, or 13%, said they were in the planning stages.

That leaves several hundred MSLs that have yet to take steps to incorporate green into their listings, but Medina pointed out that there were fewer than 20 of the services that acknowledged green in their listings before the NAR launched its Green MLS Tool Kit in April of 2010.

Designed to support the flow of green home information in the marketplace and provide a step-by-step process that MLSs can follow to include green in their listings, this educational resource is already receiving a makeover.

The Tool Kit 2.0 will be more concise and better organized, and it will provide the opportunity to make “another marketing and communications push to MLS owners and operators,” Medina said.

A Need for Documentation

The Realtors®’ Green Resource Council is also working to address some of the significant shortcomings that have been found in the early adapters of adding green to their listing fields.

“The problem is, agents aren’t using the fields or are putting in wrong information,” Medina said. “The MLS has to have a way of preventing erroneous entries, and some only have one serviceable field.”

With a focus on comps and appraisers, efforts are now underway to ensure that the MLS green fields include documentation, with possible certifications including the National Green Building Standard, a RESNET- orDepartment of Energy-approved HERS rating and Energy Star Qualified New Homes.

“Appraisers need validated comparables,” he said. “Documentation is critical.”

Efforts are also underway to link green programs to MLSs, he said, starting with builders, architects and contractors. Evolving retrofit programs include the Better Buildings Initiative in 35 communities, Home Performance With Energy Star and DOE’s Home Energy Score.

Medina also reminded builders that NAR Green Designees are available to lend their expertise.

Keeping Up the Pressure

Leading efforts for years to make green mortgages a mainstay of the financing options available to home buyers, David Porter, of Porterworks in Stanwood, Wash., indicated that now is hardly the time to ease up on exerting pressure on the lending, appraisal and sales community.

While there are many lending products available that recognize the value of green homes, both for new housing and renovations, none is being consistently offered by lenders, he said.

“Force lenders to learn these programs,” Porter said. “Require lenders to get trained and offer programs to borrowers at the time of loan application.”

Builders should also be pushing for the inclusion of green in consumer search sites.

And “when you build green, have the certification recorded with the title so that it will travel with the property,” Porter said.

“Communicate to the buyer what the power of green is,” he said. “Go through the list of green features and turn them into benefits, such as a higher R value equals lower utility costs.”

And builders need to ensure that the appraiser evaluating the home is competent, with the experience and education needed to do the job competently.

Porter also gave a plug for the Database of State Incentives for Renewables and Efficiency (DSIRE), which he called a “great resource.”

Bud Hierlihy Awarded HBAGTA Lifetime Membership

Marc Burkholder, President of the Home Builders Association of the Grand Traverse Area, awarded Bud Hierlihy the distinction of "Lifetime Membership" last Monday evening at the Association's May General Membership Meeting held at Northwood Paint & Supply. 

Bud, President of Vacation Home Building Company, is a Charter Member of the HBAGTA, establishing the Home Builders Association of the Grand Traverse Area in 1970. He served as the President  in 1972.  He also represented the HBAGTA on the State Friends of Housing Committee and has attended numerous state and national meetings on behalf of the local organization.

Bud was recognized for his outstanding representation and contribution to the Home Building Industry.

2011 HBAGTA Scholarships Awarded At May 9 General Membership Meeting

The Home Builders Association of the Grand Traverse Area presented their 2011 Scholarship Recipients at their General Membership Meeting held at Northwood Paint & Supply on Monday, May 9, 2011. 

President Marc Burkholder, Burkholder Construction, presented two scholarship awards during the evening.  The first recipient, Sarah Kuhlman, was awarded the NMC "Home In A Day" Scholarship in the amount of $500 to complete her Carpentry Certificate at Northwestern Michigan College.  Sarah was accompanied by her instructor, Devin Hill.

The second award of $2,500 was presented to BJ Stark on behalf of his daughter, Samantha, who will be pursuing a degree in Construction Management.  Samatha plans to attend Michigan State University next fall as a freshman.  This scholarship is awarded through the Grand Traverse Regional Community Foundation.

2012 ENERGY VALUE HOUSING AWARD COMPETITION

EVAH is a national awards program created by the U.S. Department of Energy, administered by the NAHB Research Center, the National Renewable Energy Lab, and the Building America Program This judged competition seeks entries from builders and contractors who are striving to reach new levels of energy efficiency in their projects and value the recognition of being one of the most progressive contractors in the country. The EVHA provides independent, unbiased analysis of building techniques, materials, business practices, and customer service.  Past winners have reported huge increases in business as a result of earning one of the coveted awards.

The 2012 EnergyValue Housing Award search committee is seeking entries for both the New Homes and Existing Homes Divisions. Building Contractors and Remodelers are invited to submit projects that are substantially lower in energy use than typical similar structures and have been completed after January 31, 2009. The entry fee is $100.

The New Homes Division accepts entries in the following categories: Custom/Demonstration, Production, Affordable, and Multifamily. Existing Homes Division categories are: Reconstruction/Demonstration, Single family, and Multifamily. In addition to the various categories houses are also classified in one of three climate zones: hot, moderate, and cold.

All applicants:

1.      May request two tickets to the annual EVHA recognition event to be held February 8, 2012 at ICEBAR Orlando, Florida in conjunction with the International Builders Show.

2.      Receive detailed judging comments that address the strengths and weaknesses of the structure as well as suggestions for improvements to building and business practices, customer service, etc. The judges’ comments have often been referred to as “the most valuable critique ever received by the builders”. 

Finalists:

·         Receive recognition in the EVHA publication, website, and at the awards presentation

·         Are eligible to participate in educational programs, conference presentations, etc.

·         May utilize the EVHA logo for their marketing materials

·         Possible publicity in national trade magazines and manufacturers’ materials

More information: www.nahbrc.com/evha or call Debra Sagan 301-430-6210

May is National Home Remodeling Month

May is National Home Remodeling Month, and NAHB Remodelers reminds you to hire a professional remodeler to achieve your ideal home remodel. Explore the resources on www.nahb.org/remodel to learn more about the benefits of remodeling and to find a professional remodeler in your area.

A Rite of Spring Time: Unlicensed Builders Pulling Scams on Michigan Consumers

There are a few things you can count on when spring arrives. Daylight savings time, warmer temperatures, rain and unlicensed builders that prey on unsuspecting consumers with building scams and rip‐offs. “Unlicensed scam artists will try to con you in several different ways,” said MAHB CEO Robert Filka. “They will tell you it’s cheaper to do the job if the consumer pulls the building permit or that no permit is needed. They do this because without a builders license, they can’t pull a building permit. If no permit is pulled, there will be no inspections done to assure the quality of work or that it meets the requirements of the Michigan Residential Code (MRC).”

Under Michigan law, all contractors offering to do work which totals $600 or more in labor and materials must be licensed by the Department of Energy, Labor & Economic Growth (DELEG). A Residential Builders license allows a contractor to build a complete structure and do maintenance or alteration (remodeling) work. A Maintenance & Alteration license indicates that the holder has met requirements for one or more of 14 different trades. The trades in which a contractor is qualified to practice are listed on the license.

“Consumers should also be wary of builders who offer a “special low price” or claim they have materials left over from another job they can use on their project,” said Filka. “Legitimate builders and remodelers do not over buy materials for a job. Consumers are also warned to be cautious about any builder who asks to be paid in cash or requires total payment up front.”

Hiring unlicensed builders also exposes the consumer to potential liability issues that could be very costly. Consumers that contract with an unlicensed contractor can be held liable for on‐the‐job injuries sustained by that unlicensed person and their employees. This exposes the consumer to liability, including having to pay medical bills and lost wages. Licensed contractors must carry workers compensation insurance to cover injuries to their employees. Unlicensed builders do not.

Licensed contractors offer consumers several benefits, including:

• The contractor knows his/her trade and has been tested and approved, including a credit check by the state of Michigan;
• They are required to show continuing competency in their profession to keep their license.
• They know and build to the Michigan Residential Code;
• Liability for on‐the‐job injuries will rest with the licensed contractor, not with the consumer.

All licensed contractors carry a pocket license card, which consumers should ask to see. If they cannot show their license, consumers should call the Michigan Department of Labor and Economic Growth’s (DELEG) Builder’s Unit at (517) 241‐ 9254 or visit the DELEG website at www.michigan.gov/builders, to confirm that an individual or company has a license.

Consumers are encouraged to file complaints against unlicensed builders. By doing so, consumers not only assist in legal crackdowns against unlicensed builders, but also will help friends and neighbors from being ripped off. Complaints against unlicensed builders must be in writing and signed. Necessary forms may be obtained at http://www.michigan.gov/documents/dleg/builders_complaint_forms_320691_7.pdf, or a consumer may request a form and information by telephone at (517) 241‐9202. Consumers filing complaints are urged not include any information such as your social security number, that you do not want to be released to the respondent.

A good rule of thumb for consumers to follow when dealing with attractive sounding construction opportunities is –“if it sounds too good to be true‐it probably is.”

Michigan Housing Index Shows Modest Growth in Homebuilding During the First Quarter of the Year

(Lansing, MI) – A statewide survey of homebuilders covering the first quarter of 2011

showed a continuing trend of modest improvement in new building activity and a much

sharper upturn for the remodeling industry. The Michigan Housing Index (MHI) survey

of homebuilders increased 9 percent for the quarter ending March 31, 2011, which

represents a nine percent increase over the quarter ending in December 2010.

The MHI survey of remodelers showed its third consecutive monthly increase and stands at its

highest level since March 2010 “Consumers remain very cautious because of high fuel prices and the uncertainty over the state’s tax and budget reform negotiations,” said Robert Filka, CEO of the Michigan Association of Home Builders (MAHB). “Housing like the rest of the economy is recovering slowly, but it is encouraging to see continued signs of growth for homebuilders and a stronger market for remodeling,” The Michigan Housing Index (MHI)  activity compiled by MAHB. The survey asks builders about the number of homes currently under construction and in the planning stages. Builders are also asked to evaluate their prospects for future customers. Totals are calculated in an index that is reported quarterly to provide a tracking mechanism for the industry’s process.

Following are the MHI quarterly totals for the past year (higher numbers are better):

                                                      Builders Survey Remodelers Survey

March 2011                                            36                     52
December 2010                                      33                     34

September 2010                                     33                     46

June 2010                                              28                     47

March 2010                                            43                     54

-more

“It’s important to remember that housing starts in the first half of 2010 were boosted by

the federal tax credit for first time homebuyers,” said Filka. “When that program ended,

housing starts took a hit, so it is nice to see this bounce back to earlier levels.”

Among the highlights of the 2011 first quarter Michigan Housing Index:

• Consumers continue to emphasize smaller, less costly, more energy efficient homes;
• New home construction is strongest in entry level price categories, primarily due to the continued dysfunctional appraisal environment for larger homes.
• The remodelers’ survey was strengthened due to an improving outlook for future business as a result of jobs being bid by remodelers but not yet underway.

About the MAHB Michigan Housing Index

The Michigan Housing Index combines results of a monthly survey of Michigan builders

and remodelers along with a series of economic statistics including single family home

permits, crude oil prices, automobile production and unemployment. The MAHB

Michigan Housing Index is intended to provide an accurate projection of the future

direction of the building and remodeling housing market in Michigan.

NAHB ANNOUNCES NATIONAL GREEN BUILDING AWARD WINNERS

SALT LAKE CITY, May 3- Thirteen builders, remodelers and other home building industry professionals were honored yesterday as winners of National Green Building Awards by the National Association of Home Builders (NAHB) at the 13th annual National Green Building Conference in Salt Lake City.
"These awards recognize and celebrate the most forward-thinking builders and remodelers in green building," said Bob Jones, immediate past chairman of NAHB and a builder from Bloomfield Hills, Mich. "These award winners are pushing the envelope of what we can achieve with energy and resource efficiency."
Sponsored by Bosch Home Appliances, Mohawk Industries and SolarCity, the awards dinner was one of the highlights of the three-day conference, which featured educational programs, an exhibition of green products and a tour of local green homes and developments.

Individual Project Awards

Five single-family home projects were honored:

· Tall Pines Construction, for the Sungazing House in Park City, Utah, for Project of the Year, Single-Family Custom Home.

· Habitat for Humanity, Bay-Waveland Area, of Hancock County, Miss., for Project of the Year, Affordable Single-Family.

· Imagine Homes of San Antonio, Texas, for Project of the Year, Single-Family Production Builder.

· Zero-Energy Plans LLC, of Coupeville, Wash., for Project of the Year, Single-Family Concept and Research.

· Imery and Company, of Athens, Ga., for Project of the Year, Small-Volume Single-Family Builder.

Two remodeling projects and one multifamily project were also honored:

· Sun Mountain Construction Inc. of Corrales, N.M., for Single-Family Remodel over $100,000, which won for the Noel and Cooper home.

· Ferrier Custom Homes of Fort Worth, Texas, for Single-Family Remodel under $100,000, which won for the Lovell Remodel.

· Actus Lend Lease of Nashville, Tenn., won Project of the Year, Multifamily Low-rise, four stories or less, for Campbell Crossing Zero Energy Homes at Fort Campbell, Ky.

Green Building Advocacy Awards

Five awards were given to individuals or organizations for their efforts in green building advocacy:

Addison Homes of Greer, S.C., as Advocate of the Year in the Builder category.

Philip Beere of Green Street Development in Scottsdale, Ariz., as Remodeler Advocate of the Year.

Dr. Jennifer Languell of Fort Myers, Fla., as Individual Advocate of the Year|.

The Home Builders Association of Greater Tulsa, Okla., as Home Builders Association Advocate of the Year.

The Home Builders Association of Middle Tennessee's Green Building Council and Habitat for Humanity of Williamson County, Tenn., as Advocate of the Year in the Group category.

Additional information about the National Green Building Awards can be found at www.nahb.org/greenbuildingawards.

HOUSING STARTS RISE 7.2 PERCENT IN MARCH

WASHINGTON, April 19 - Nationwide housing starts rose 7.2 percent to a seasonally adjusted annual rate of 549,000 units in March from an upwardly revised number in the previous month, the U.S. Commerce Department reported today. Coming on the heels of disappointing declines in February, this gain was represented in both the single- and multifamily sectors, and was mirrored by substantial improvements in building permit issuance for the same period.

"While the overall rate of new-home production remains quite low and is still being weighed down by significant uncertainties among both home builders and buyers, this latest report is encouraging," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. "It means that some builders are cautiously beginning to re-stock their extremely thin inventories of new homes in anticipation of gradual improvement in consumer demand as the economy slowly inches toward recovery."

"The modest improvement in new-home production and permitting in March is in line with our forecasts for incremental gains through the spring buying season," said NAHB Chief Economist David Crowe. "While our builder members continue to experience a great number of challenges with regard to competition from foreclosed and short-sale properties, low appraisal values and tight credit conditions, they have noted slight improvements in interest among qualified buyers, and they need to be ready to meet the demand as it materializes."

Gains in new-home production were seen across the board in March, with upward movement registered in both the single- and multifamily sectors as well as three out of four regions. On the single-family side, a 7.7 percent gain to a seasonally adjusted annual rate of 422,000 units partially offset a big decline in the previous month. Multifamily starts also gained back a portion of the ground they lost earlier, with a 5.8 percent increase to 127,000 units.

Regionally, housing starts posted double-digit gains of 32.3 percent in the Midwest and 27.6 percent in the West, as well as a 5.4 percent gain in the Northeast. The South was the only region to post a decline in housing starts in March, of 3.3 percent.

Meanwhile, issuance of building permits, which can be an indicator of future building activity, rose by an impressive 11.2 percent to a seasonally adjusted annual rate of 594,000 units, more than offsetting the previous month's decline. Single-family permits rose 5.7 percent to 405,000 units, while multifamily permits rose 25.2 percent to 189,000 units.

The Northeast was the only region to not post a gain in building permits this March, remaining unchanged from the previous month. Meanwhile, the Midwest posted a 6.9 percent gain, the South, a 6.3 percent gain, and the West, a 37.1 percent gain.