New NAHB Document Covers How to Detect and Remediate Problematic Drywall April 2011 • www.westfloridabuilders.com 1 2 Home Builders Association of West Florida • April 2011 2011 Leadership Board 2011 Home Builders Association of West Florida Board of Directors Russ Parris President Frameworks, LLC Luke Shows 1st Vice President Shows Construction Eric Witt Treasurer Kenneth E, Witt Carpentry Judy Gund Financial Officer Saltmarsh, Cleaveland & Gund Newman Rodgers Secretary Newman Rodgers Construction Steve Geci 2nd Vice President Geci & Associates Engineers Builder Members Pam Caddell, Gulf+Atlantic Constructors Miller Caldwell, III, CCG Design Builders Jeff Godfrey, Paragon Custom Homes Darrell Gooden, Gooden Homes Robert Harris, Adams Homes Doug Henry, Thomas Home Corporation Doug Herrick, Coastal ICF Concrete Wall Systems Shelby Johnson, Johnson Construction Co. of Pensacola Ron Mangum, Residential Renovation Company Scott McCartney, 1st Choice Home Improvements Bryan Moore, BRM Residential Homes Jennifer Rigby, Gleaton & DeMaria Commercial Development Kevin Russell, Russell Home Builders Steve Sessions, Sessions Contractors Group Keith Smith, Keith Smith Construction Todd Stafford, Heaton Brothers Construction Ron Tuttle, Bennat, Inc. Chris Vail, Urban Infill Corporation Thomas Westerheim, Westerheim Properties Associate Members Rod Hurston 3rd Vice President Fisher-Brown Insurance Tina Monie Immediate 2nd Vice President KJM Surveying Billy Moore Immediate Past President Southern Home & Construction Cornerstone The official magazine of the Home Builders Association of West Florida 4400 Bayou Blvd., Suite 45, Pensacola, Florida 32503 (850) 476-0318 Stephen Moorhead Legal Counsel McDonald, Fleming, Moorhead Angela Carter, Gulf Power Company Bret Cornett, ProBuild Rick Endsley, Builders Specialty Supply Jill Grove, Energy Services of Pensacola John Hattaway, Hattaway Home Design Tom Hammond, Hammond Engineering Ron Harper, GCS Building Solutions Towana Henry, Surety Land Title Blake Jochum, All Pro Sound Pat Kozma, Jenkins Brick & Tile Company, LLC William Merrill, Merrill, Parker, Shaw Christopher Moorhead, Coastal Bank & Trust Bernie Mostoller, The Mostoller Group Ric Nickelsen, Whitney National Bank David Redmond, PrimeLending Gary Sluder, Gene’s Floor Covering Doug Whitfield, Doug Whitfield Residential Designer Jayer Williamson, Williamson Electrical Company Brent Woody, Advanced Roofing and Waterproofing John Carrell, Gulf Power Co., Remodelors Council Chair Angie Cooper, Gulf Power Co., Auxiliary Council Chair Jim Harris, Coastal Bank and Trust, Membership Chair Natasha Reynolds, ESP, Green Building Council Chair Newman Rodgers, Custom Builders Council Chair www.westfloridabuilders.com Cornerstone is published for the Home Builders Association of West Florida by Nicholson Publishing and distributed to its members. Reproduction in whole or part is prohibited without written authorization. Articles in Cornerstone do not necessarily reflect the views or policies of the HBA of West Florida. Articles are accepted from various individuals in the industry to provide a forum for our readers. Ex-Officio Members: Keith Furrow, Pensacola Association of Realtors April 2011 • www.westfloridabuilders.com 3 In This Issue Cover Story New NAHB Document Covers How to Detect and Remediate Problematic Drywall! .................................................. 6 CORNERSTONE COLUMNS Cornerstone President’s Message: Home Ownership Can Bring Big Savings at Tax Time ............................. 5 FEATURED STORY What Has FHBA Done For Me Lately .................................................... 11 FHBA News: The Latest Information Across the State ................ 12 & 13 David Peaden II Executive Director [email protected] NAHB News: “Builders Call on Congress to Improve Small Builders’ Access to Credit ................................................... 14 & 15 Economics and Finance; “New FHFA Rule Takes Aim Against Private Transfer Fee Covenants ................................................. 16 ASSOCIATION NEWS 2011 HBA of West Florida Leadership .................................................... 3 Alecia Overman Accounting Manager [email protected] HBA News: In Terms of Membership, Relationships Makes Us Stronger” ........................................................... 7 HBA Council News: March Membership Meeting Sponsored by Cort Furniture .................................................................... 8 HBA of West Florida: Calendar of Events ............................................... 8 HBA March General Membership Meeting Hosted at Ferguson’s Showroom .............................................................................. 9 HBA Parade of Homes at Robinson’s Mill April 30th to May 8th ......... 10 Joint Building Official Meeting Held at HBA Office ............................. 10 Amy Lord New Member Profile: Glenn Lubel .......................................................... 11 Membership/Marketing Director [email protected] American Dream Home Snapshot .......................................................... 15 Next Issue: May 2011 Edit: April 4, 2011 Space: April 15, 2011 Materials: April 22, 2011 Magazine Design & Layout by warren wight creative services www.ww-cs.com HBA Membership News, Welcome New Members, Thanks for Renewing, Time to Renew, & Don’t Lose Your Membership ............... 17 Spike Club Update .................................................................................. 18 DEPARTMENTS INDEX Next Issue Deadlines ……………..............…..…...........……. 4, 13 & 18 Advertisers Index, Web, & Email Addresses ………….....…………… 18 Cornerstone, the monthly publication of the Home Builders Association of West Florida serving Escambia and Santa Rosa Counties, is published monthly, twelve (12x) per year. Send address changes to HBA of West Florida, 4400 Bayou Boulevard, Suite 45, Pensacola, Florida 32503-1910. Cornerstone, is published in the interests of all segments of the home building industry and is distributed to its members and others associated with the HBA of West Florida. HBA of West Florida and Richard K. Nicholson Pub., Inc. does not accept responsibility for, or endorse any statement or claims made by advertisers or authors of any articles. Every effort has been made to assure accuracy of information, but authenticity cannot be guaranteed. No part of this publication may be reproduced without the written consent of Home Builders Association of West Florida, Copyright ©, 4400 Bayou Boulevard, Suite 45, Pensacola, Florida 32503-1910, 850.476.0318. Advertisers and advertorials in Cornerstone do not constitute an offer for sale in states where prohibited by law. 4 Home Builders Association of West Florida • April 2011 Homeownership Can Bring Big Savings at Tax Time As the April 18 federal income tax filing deadline approaches, millions of Americans are sitting down and sorting through dozens of forms to determine how much money they owe Uncle Sam – or, how much of a refund they will get this year. One of those forms, the Mortgage Interest Statement Form 1098, can mean big savings for home owners at tax time. Form 1098, which home owners receive from their lenders, shows the total amount of home mortgage interest paid during the year. Home owners 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. They can also deduct the interest paid on up to $100,000 of home equity loans. For most home owners, this means they can deduct ALL of the mortgage interest they’ve paid on their home each year. The ability to deduct home mortgage and home equity loan interest isn’t the only tax benefit for home owners. The three most important sources of tax savings for home owners are: • Deductions for mortgage interest • Deductions for real estate taxes • The capital gains exclusion for the sale of a principal residence Home owners are also able to deduct the state and local real estate taxes they pay each year on an owner-occupied home. When it is time to sell a home, in many cases home owners 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. Another deduction home owners may be able to take is for mortgage insurance premiums. Generally, people who purchase a home without putting 20 percent down have to buy mortgage insurance, and those premiums can also be deducted from taxable income. Even home owners who don’t use the home as their principal residence and rent it out may be able enjoy some tax benefits, including interest and depreciation deductions. Buying a home offers tax savings that can add up to tens of thousands of dollars over several years. Home owners rely on the mortgage interest deduction each year to help offset the costs of homeownership and prospective buyers take the deduction into consideration when choosing homeownership over renting. But the mortgage interest deduction, which has been included in the tax code for about 100 years, is in danger. A national deficit commission has proposed reducing or eliminating the deduction as part of a restructuring of the tax code. Find out more about the threat to the mortgage interest deduction, and read “The Tax Benefits of Homeownership,” a study from economists at the National Association of Home Builders that provides specific examples of savings for a variety of income levels and ownership situations, at www. SaveMyMortgageInterestDeduction.com. President’s Message Russ Parris “For most home owners, this means they can deduct ALL of the mortgage interest they’ve paid on their home each year.” For future upcoming events, please call the HBA office at 850.476.0318 and view the calendar on Page 10 of this Issue. Thank You! April 2011 • www.westfloridabuilders.com 5 Cover Story 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 was unveiled by NAHB last week. The document — “Imported Problematic Drywall: Identification Strategies and Remediation Guidelines” — is now available to association members and was released to the public on March 16. The publication represents the culmination of more than a year of intensive research, testing, analysis and evaluation by two firms — Marsh Risk Consulting and Building Health Sciences — under the auspices of NAHB’s Chinese Drywall Task Force. The task force was created to identify a permanent solution to problems with drywall emitting or off-gassing corrosive compounds, which can lead to the blackening of copper electrical wiring and air conditioning evaporator coils and can cause mechanical, electrical and electronic failures. “As we all know, the downstream effects of these problems includes 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 the webinar. The goal of the task force, he said, was to: • Help builders determine whether problematic drywall is present in a home • Provide information on health risks that residents may encounter • Outline strategies for partial and total remediation that are safe, cost-effective and based on sound science Establish clearance procedures to confirm that problematic drywall has been removed from the home “Most importantly,” said Rutenberg, “in a landscape now cluttered with untested 6 New NAHB Document Covers How to Detect and Remediate Problematic Drywall products, devices and procedures purported to resolve drywall problems, NAHB based these guidelines on scientifically proven technologies, materials, means and methods for remediating drywall in single-family homes, condominiums, apartments and townhomes.” Rutenberg noted that the NAHB’s guidance document does not represent the only approach to remediating the problem, and that builders might decide to follow different guidelines that are less inclusive or that include additional measures. The guidance is also not intended to set minimum or maximum requirements for remediation, he said. It is not intended to be used to deter- mine the effectiveness of remediation efforts that have already been completed, he added, and it is not intended to be used in commercial buildings. Among some of the noteworthy Home Builders Association of West Florida • April 2011 recommendations contained in the document: 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 follows interim remediation guidance issued by the Federal Interagency Task Force on April 2, 2010, said Katherine Ann Cahill, managing director of Global Product Risk Services for Marsh Risk Consulting. To date, the government task force has not made available the results of testing on wiring and is probably still working on them, she said. “NAHB recommends builders pay close attention to these test results when they are announced and take them into account when deciding what steps to take with respect to high-voltage electrical wiring,” Cahill said. “We expect we will hear something within the next six months,” she said, “but stay tuned. 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 even if the home contains some non-problematic drywall,” said Cahill. Selective remediation is an option if the problem drywall is found in a limited portion of the home that can be isolated, she said. Conduct clearance testing after the drywall has been removed and the house has been cleaned and aired out but before it is built back, said Dr. Barbara Manis, chief medical officer of Building Health Sciences. This will determine whether the remediation has been adequate, Manis said, or if further cleaning is needed. “Clearance testing is extremely important for the peace of mind of both the remediation contractor and the home owner,” said NAHB Chinese Drywall Task Force Chair Ray Kothe. Kothe also thanked the task force members, NAHB staff members and the consultants for their efforts. To access the document, go to www. nahb.org/drywallguidelines. For more information, e-mail David Jaffe at NAHB, or call him at 800-368-5242 x8317. In Terms of Membership, Relationships Make Us Stronger HBA News Why did you join the Home Builders Association of West Florida (HBA)? Your answer will vary depending on your business and the problems that keep you up at night. But I would wager that none of you joined to have a relationship with the organization, but instead to have relationships with other members. These connections (actual or potential) to others are the reason we are here. Yes, the lobbying, education and information are important too, but the connections and relationships we make with our fellow members are what make us feel more connected to the HBA. Our relationships make us stronger. We learn from each other. We pass on news to each other, or even better, referrals and leads. We expose each other to different perspectives and ideas, so we make wise decisions, and not get stuck in our own bubble. We get advice from each other, and support too. We help each other get involved in the association, showing how easily it’s done, and how rewarding. We introduce each other to new people. We have a heck of a good time together too. Many of us know a fellow member who got new business or a job from another member. This only happens when the relationships are already there. Relationships are one of the most powerful benefits of membership but it’s a benefit that not all receive. First you have to get involved, even just an hour here and there. Your relationships are a valuable resource for our association right now. May is membership month and it’s real easy for you to get involved. We are on a hunt for new members in May so we can provide more potential relationships and all their benefits to you. Look through your e-mail contacts, your accounts receivable and payable, your LinkedIn connections, your Facebook friends, your rolodex or wherever you keep your names and numbers. Who should be part of our community? Who can benefit from connecting with others here? Who can benefit from our advocacy? Our programs? Our information? Frankly, they need By Jim Harris “Your relationships are a valuable resource for our association right now. May is membership month and it’s real easy for you to get involved.” to support the industry that is supporting them. It’s that simple. Please look at your network and invite someone to join our association in May. Or, in the meantime, feel free to call me or HBA Membership/Marketing Director Amy Lord at 850-476-0318 for some help. Our connections to and relationships with other members is the real strength of this association. The more we have, the more we can do. Please join me in making that happen. April 2011 • www.westfloridabuilders.com 7 HBA Council News What an informative and useful program on Home Staging that Sherry Toler and Todd Shell, of Cort Furniture, gave to the Auxiliary Council at its March General Membership. Toler and Shell explained how staging a home with the right furnishings can help it sell faster and at a higher price. Pictured left to right: Linda Gregg of Keller Williams; Debbie Sanspree of Keller Williams; Sherry Toler of Cort Furniture; Lydia Davis of Gooden Homes; Brenda Caulkins, of Surety Land Title; Michelle Bean of HomeTeam Pest Defense; Janice Terrell of Energy Services of Pensacola; Auxiliary Council Chair Angie Cooper of Gulf Power; and Linda Salter of Surety Land Title. Happy attendees with their door prizes! Mark Your Calendar! Auxiliary Council Meet on the 2nd Tuesday of each month. Custom Builders Council Meet Quarterly starting in January. Green Building Council Meet on the last Wednesday of each month. Governmental Affairs Meet on the 1st Tuesday of each month. Membership Committee Meet on the 2nd Thursday of each month. Remodelor’s Council Meet on the 1st Thursday of each month. Board of Directors Meet on the 3rd Tuesday of each month. NEXT CORNERSTONE ISSUE: 8 April April April April 7 13 - 14 19 29 Spring Golf Classic Sponsorships Available!! FHBA Legislative Action visit in Tallahassee BOD Meeting GMM/POH Kick Off @ Central Site – Robinson’s Mill 5:30 – 7:30 p.m. April 30th - May 8th Parade of Homes - Sponsorships Available! Interested in sponsoring a General Membership Meeting? Contact Amy Lord at 850-476-0318 for more information! For further event details, please visit our website: www.westfloridabuilders.com Please note that dates and locations are subject to change. May 2011 Home Builders Association of West Florida • April 2011 To advertise, call Richard Nicholson 561.843.5857 [email protected] March GMM Ferguson’s stunning showroom was the setting for the HBA March General Membership Meeting, which took place on Tuesday, March 15. As always, the Ferguson team went out of their way decorating the showroom in HBA Council News a St. Patrick’s Day theme and providing members with great food, fun games and an overall great evening. The Ferguson Team hid 30 numbered golden coins throughout the showroom. Each time a coin was found, a prize was won. Prizes ranged from a six pack of Guinness, box of lucky charms to beautiful light fixtures. There was also a prize given away to the HBA Member wearing the most green. HBA staff sold split the pot raffle tickets and the lucky winner received $50. Ferguson’s luck of the Irish party provided members the opportunity to see Ferguson’s beautiful showroom, network with other HBA members and have an excellent time. The Ferguson Team. Thank you for a great evening!! Members Ron Tuttle and Linda Bennett enjoying the festivities and their prizes Wearing of the most green winner LaRonda Mangum John Hattaway with Hattaway Home Design was the lucky split the pot winner April 2011 • www.westfloridabuilders.com 9 HBA News Joint Building Official Meeting Over 40 contractors attended a meeting held February 23 at the HBA office where Escambia County Building Official, Dale Baker , and Santa Rosa County Building Official, Tim Tolbert , discussed standards in regards to the 2007 Florida Building Code Residential requirements for return air duct systems. Parade of Homes, An Exciting Time for the Housing Industry April 30th to May 8th 10 There is no better way to market a home than to enter into 2011 Parade of Homes™, set for April 30 – May 8. The people of Northwest Florida look forward to the Parade of Homes™ every year. The Call for Entries is being mailed today to HBA Builder Members. You can download the 2011 Parade of Homes™ entry form and advertising information at: http://www.westfloridabuilders.com/events-and-education/parade-of-homes.html. The HBA is also pleased to partner with the Pensacola News Journal’s Media Solutions who will be producing the ever-popular Parade of Homes™ publication complete with maps, renderings, and floor plans. We encourage you to support the PNJ’s advertising efforts because it does a great job of promoting our Parade of Homes™. Your advertising enhances the Parade of Homes™ media coverage, plus your business will gain from the exposure. Call the PNJ Media Solutions Department today at 435-8554. The American Dream Home is currently under construction at the beautiful community and Central Site of Robinson's Mill, located on East Kingsfield Road in Pensacola. Robinson's Mill is a 38-acre, 61 lot subdivision that is distinctively noticeable by its fullscale mill house and waterwheel. Kevin Ward of K.W. Homes is building the two-story, Southern Living plan, Dream Home. Whether you are a potential home buyer or home builder, the 2011 Parade of Homes™ has something for everyone. Home Builders Association of West Florida • April 2011 New Member Profile Member News Glenn Lubel Coldwell Banker United Realtors A real estate broker since 1985, Pensacola Beach resident Glenn Lubel recently joined the Home Builders Association of West Florida. Lubel, who was born and raised in Mobile, Alabama, is licensed in Florida, Albama, and Colorado. Lubel is a LEED Green Associate and National Association of Realtors GREEN designee. Lubel is no stranger to Home Building Associations. In fact, Lubel was very active in the Boulder, Colorado Building Association (CBA) and was a founding member of their Green Builders Program and built two spec homes to CBA Green standards. As a very pet friendly person, Lubel always donates five percent of his real estate sales based commissions to qualifying animal welfare and rescue organizations in the Florida and the Alabama Gulf Coast Region. The HBA welcomes Lubel as one of the newest members of the HBA. C e l l 8 5 0 - 5 7 2 - 5 5 7 5 | O f fi c e 8 5 0 - 9 3 2 - 5 3 0 0 | g l e n n @ g l e n n l u b e l . c o m April 2011 • www.westfloridabuilders.com 11 FHBA News ‘$1,000 Club’ Off to a $75,000 Start Members and friends of the Florida Home Builders Association (FHBA) are lining up to participate in the “$1,000 Club,” a capital campaign chaired by Polk County BA Past President and long-time FHBA member Carlton Hodges of Lakeland. “The response in the first two weeks of the campaign has been encouraging and $75,000 has been committed to date,” said Hodges. The program accepts participation from FHBA members and local HBAs in increments of $1,000 and pays 3 12 percent interest compounded annually for a five-year period. Participants receive promissory notes from FHBA. “Past leaders, current leaders, senior staff, HBAs, and people with a passion for FHBA are using the $1,000 Club as a way to show their support for FHBA and the vital role it plays in our industry,” said Hodges, a $5,000-level participant. Manatee-Sarasota was the first local HBA to participate. “This is a great way to show our support of our state association,” said President Mike Kramer. The program runs through April 8, 2011 and complete information is available at www.fhba.com under FHBA Community then “$1,000 Club.” Questions about the program can be directed to FHBA CEO/Executive Vice President Paul Thompson at 800-261-9447, or pthompson@ fhba.com. approximately 55 percent of the changes submitted for consideration. Of that number (452), there were 112 changes approved that removed previously approved “Florida Specific Amendments.” The most significant changes were those dealing with wind design in accordance with the new American Society of Civil Engineers (ASCE) pamphlet 7. The new standard creates a new wind map for the state and generally reduces design pressure across the entire state from 0 to 31 percent. For Glenn’s detailed report and analysis, including a chart and map and specific changes related to mitigation, energy, green building, go to www.fhba. com and click on Features then New Code. Mortgage Finance Options Outlined Building Code Getting 452 Changes The Florida Building Commission (FBC) has reviewed a total of 827 proposed changes to the 2009 family of I-Codes in the development of the 2010 Florida Building Code. While that may sound like a large number, it is small compared to the almost 1,400 changes approved by the International Code Council (ICC), according to the Florida Home Builders Association’s Director of Technical Services Jack Glenn. The FBC approved Home Builders Association of West Florida • April 2011 The Obama Administration recently released its report to Congress on reforming the nation’s housing finance system and offered three possible courses: 1) a privatized system with a limited government insurance role, 2) a privatized system with limited government assistance and a guaranteed mechanism to kick in during times of crisis, 3) a privatized system with government assistance for low-tomoderate income borrowers and catastrophic reinsurance behind significant private capital. A National Association of Home Builders assessment indicated that the Administration’s plan would lead to less mortgage credit availability and a higher cost in both the short- and long-term. The Administration clearly plans to wind down the roles of secondary mortgage market entities Fannie Mae and Freddie Mac and its path to reform will have an immediate impact if it allows the temporary higher loan limits to expire as scheduled on October 2, 2011, according to NAHB. SEBC to Offer Designation Courses Southeast Building Conference (SEBC) Chairman Tony Martin of Orlando has announced that the 2011 SEBC will offer some of the industry’s most popular professional designation courses. The SEBC, set for July 20-23 at the Orange County Convention Center in Orlando, will present the two-day Green Building for Building Professionals (Advanced Course); the one-day Business Management for Building Professionals course; the two courses leading to the Certified-Aging-in-Place (CAPS) designation: Marketing and Communications Strategies for Aging in Place (CAPS I) and Design/Build Solutions for Aging/Accessibility (CAPS II); and all four courses leading to the Member, Institute of Residential Marketing FHBA News (MIRM) designation. Dates, times, fees, and instructors will be announced shortly and available at www.sebcshow.com. NEXT CORNERSTONE ISSUE: May 2011 For advertising information, contact Richard Nicholson 561.843.5857 [email protected] Get Involved HBA Councils & Committees! Auxiliary Council Meet on the 1st Tuesday of each month. Custom Builders Council Meet Quarterly starting in January. Green Building Council Meet on the last Wednesday of each month. Governmental Affairs Meet on the 2nd Tuesday of each month. Membership Committee Meet on the 2nd Thursday of each month. Remodelor’s Council Meet on the 1st Thursday of each month. Board of Directors Meet on the 3rd Tuesday of each month. April 2011 • www.westfloridabuilders.com 13 NAHB News Builders Call on Congress to Improve Small Builders’ Access to Credit Members of NAHB’s Housing Finance Committee and staff are also in the midst of pursuing a range of other initiatives, including new funding programs and regulatory relief. Although some of these efforts are still in their beginning stages, the association is vigorously pursuing such initiatives as: • A national debt/equity fund • A state housing finance agency (HFA) taxable bond construction lending program • AD&C loan insurance • A production financing/rent-to-own program With the housing production credit crisis taking a severe toll on the nation's small home building firms and threatening future job growth and the fragile economic recovery, NAHB in early March called on Congress to take tangible steps to improve access to credit for small builders. "With the spigot for housing production loans cut off, and the threat that the uncertainty from new rule-making under the Dodd-Frank financial services law will further impact the ability of small community lenders to service the credit needs of our industry, it is clear that congressional action is needed to help open the flow of credit to home builders," NAHB Chairman Bob Nielsen told the House Financial Services Subcommittee on Financial Institutions and Consumer Credit. "Without such action," Nielsen added, "there can be no housing recovery, which has major implications for our nation's ability to recover from the current economic downturn." Builders are coming under increased pressure from lenders — including calls for ad- 14 ditional equity, denials of loan extensions and demands for immediate repayment on acquisition, development and construction (AD&C) loans — even when their loans are current, he said. And lenders are often citing regulatory requirements or pressure from bank examiners to reduce AD&C loan exposure as the rationale for their actions. "While federal bank regulators maintain that they are not encouraging institutions to stop making loans or to indiscriminately liquidate outstanding loans, reports from my fellow members and their lenders across the nation suggest that bank examiners in the field are adopting a much more aggressive posture," said Nielsen. To address this situation, NAHB has presented banking regulators with specific instances of credit restrictions, provided data showing no difference in credit access across housing markets — many of which are returning to normal conditions — and requested specific changes to current regulatory guidance. To date, these efforts have yielded no concrete results, which is why NAHB will soon be offering a formal legislative blueprint to Congress that focuses on fixing specific instances of regulatory excess while helping to ensure adequate credit availability to home builders. Home Builders Association of West Florida • April 2011 Reforms to the appraisals process, including: 1) improvements in the quality of appraisals in distressed markets 2) establishment of appraiser qualification requirements for valuations of new construction 3) improvements in state oversight of appraisers and appraisal requirements Nielsen stressed that problems in the housing sector resulting from the economic impact of the credit crunch have placed an enormous toll on the nation's economy. The sharp decline in home building from the 2005 peak — a drop of one million units — has translated into the loss of 1.4 million construction jobs and $70 billion in wages. Factoring in industries that provide materials and services to home builders, the total impact of the housing slump has been the loss of more than three million jobs and $145 billion in wages in all housing-related industries. "NAHB estimates that over the next decade there will be a need for at least 1.7 million additional homes per year," said Nielsen. "This translates into five million jobs and significant economic activity,” he said. “Without increased AD&C lending, this future demand will not be met, job loss will occur and job creation will suffer." Nielsen delivered a similar message on the urgent need to open up the lines of credit for new housing production in a March 7 address to the board of directors of the National Association of Counties during its annual legislative conference in Washington, D.C. Qualified Residential Mortgage On a related topic, NAHB urged the federal regulators to take an expansive approach in defining a Qualified Residential Mortgage (QRM) in the forthcoming credit risk retention rules required by the Dodd-Frank Act. The law requires lenders to have "skin in the game" by holding a small percentage of each loan that they sell into the secondary market. What is still to be determined is how the risk retention rules will be established and how regulators will define the terms of certain high-quality, lower-risk mortgages that will be exempted from the risk retention requirements. Nielsen warned that if agencies establish a QRM standard that is significantly tighter than current credit standards — which are already tougher than they have been in decades — millions of creditworthy borrowers would be deemed, by regulatory action, to be higher-risk borrowers. "As a result, they would be eligible only for mortgages with higher interest rates and fees, which would prohibit many potential first-time home buyers from purchasing a home, especially if the definition includes an excessively high minimum down payment requirement," said Nielsen. Further, an overly restrictive QRM definition would also drive numerous current lenders from the residential mortgage market — including thousands of community banks — and enable only a few of the largest lenders to originate and securitize loans. "This sharp dilution of mortgage market competition would have a further adverse impact on mortgage credit cost and availability," said Nielsen. "We therefore urge the agencies to define the QRM's parameters in a way that facilitates a housing recovery and ensures access to conventional mortgage credit for all buyers and refinancers, while preserving high quality, empirical- “NAHB has presented banking regulators with specific instances of credit restrictions, provided data showing no difference in credit access across housing markets — many of which are returning to normal conditions — and requested specific changes to current regulatory guidance.” NAHB News ly sound underwriting and product standards," he said. For more information, e-mail Scott Meyer at NAHB, or call him at 800-368-5242 x8144. American Dream Home Snapshot Construction on the 2011 American Dream Home is moving briskly along. The Dream Home, located in Robinson's Mill on East Kingsfield Road in Pensacola, is being construction by Kevin Ward of KW Homes, and is a Southern Living homes plan. Robinson's Mill is the Central Site for the Parade of Homes, set for April 30 - May 8. Robinson's Mill is a 38-acre, 61 lot subdivision that is distinctively noticeable by its fullscale mill house and active waterwheel. April 2011 • www.westfloridabuilders.com 15 Economics and Finance New FHFA Rule Takes Aim Against Private Transfer Fee Covenants In response to the more than 4,200 comments it received to proposed guidance on limiting Fannie Mae, Freddie Mac and the Federal Home Loan Banks — “the regulated entities” — from dealing in mortgages on properties encumbered by private transfer fee covenants and related securities, the Federal Housing Finance Agency (FHFA) has decided instead to propose a rule that addresses the same issue but with some significant changes. “NAHB is in the process of submitting comments on the rule and is seeking input from association members.” 16 At its meeting last fall in New York, the NAHB Board of Directors passed a resolution opposing the guidance, which formed the basis for comments that were sent to the FHFA on Oct. 15. In those comments, NAHB urged the agency not to prohibit the regulated entities from dealing in mortgages on properties that already had established private transfer fee covenants or where the fee is clearly disclosed and is used to benefit: • A property owner’s association that manages the subdivision • A nonprofit that meets Internal Revenue Code requirements • A government entity The NAHB resolution pointed out that private transfer fees established voluntarily (and not imposed by the government) “have proven to be a successful and flexible funding source for independently financing community priorities” — such as affordable housing, open Home Builders Association of West Florida • April 2011 space, wildlife conservation efforts and other community amenities and benefits. The resolution also noted that revenues from these fees have historically been directed to home owners associations or to charities and other nonprofit organizations organized in accordance with 501(c) of the Internal Revenue Code. While still imposing a prohibition against mortgages with private transfer fees, the new proposed rule makes an exception for “private transfer fees paid to home owner associations, condominiums, cooperatives and certain tax-exempt organizations that use the private transfer fees to provide a direct benefit to the owners of the encumbered real property.” Also, for the most part, the proposed rule would only apply to private transfer fee covenants created on or after its publication date in the Federal Register on Feb. 8. Comments on the proposed rule are due on April 11. While the FHFA invites comments on all aspects of the rule, it is specifically looking for comments on how it has defined a number of terms that are used to establish the scope of the rule’s restrictions — such as “adjacent or contiguous property,” “covered association,” “direct benefit” and “private transfer fee covenant.” The agency is also requesting specific information on how third-party private transfer fees relate to developer costs and how they result in lower sales prices on encumbered properties. NAHB is in the process of submitting comments on the rule and is seeking input from association members. To provide comments, or for more information, e-mail Kimberly Moore at NAHB, or call her at 800-368-5242 x8529; or contact Debra Bassert, x8443. WELCOME NEW MEMBERS! Associate Members Glenn H. Lubel, LLC Glen Lubel 29 Sugar Bowl Lane Pensacola Beach, FL 32561 T: (850) 932-5300 F: (850) 932-0787 [email protected] www.glennlubel.com Mortgage America Inc. Bruce Carpenter III 200 E Government Street, Suite 210 Pensacola, FL 32502 T: (850) 332-5221 F: (850) 332-5622 [email protected] www.mortgageamerica.com Rels Title Lindy Hurd 65 Bay Bridge Drive Gulf Breeze, FL 32561 T: (850) 934-8300 F: (850) 934-8399 [email protected] THANKS FOR RENEWING! Builder & Developer Members Aaron James Custom Homes, Inc. Building Skipper, LLC Florida 1st Home Construction Holiday Builders Paragon Custom Homes / Celebrity Homes Southern Building Specialties, Inc Timberland Contractors, Inc. Walther Custom Homes, LLC Associate Members Anchor Pest Control, Inc. BlueLinx Builders Specialties Supply, Inc. Coastal Insulation Company Cornerstone Mortgage Solutions, LLC Energy Services of Pensacola Ferguson Enterprises, Inc. Fisher-Brown Inc. FoamSeal Insulation Systems, Inc. Gene’s Floor Covering Milton Truss Company PrimeLending, A Plains Capital Company PROBuild ProSource of Pensacola DON’T LOSE YOUR MEMBERSHIP If you do business with or know anyone in the “Don’t lose your Membership!” section, please give them a call and reinforce the value of membership as well as the importance of Members Doing Business with Members. (You still have time to renew) DECEMBER EXPIRATIONS Bruce A. Johnson Constructors, Inc. Lafarge Lunsford Air Conditioning & Heating, Inc. Moore Heating & Air, Inc. Pav’r Construction, Inc. JANUARY EXPIRATIONS Advanced Disposal Services, Inc. Bob Price Jr. Builder Inc. Preferred Materials, Inc. FEBRUARY EXPIRATIONS Bagdad Home Builders, Inc. Bradco Supply, Inc. Built2Code Construction, LLC Home Run Holdings Corp. Joe Baker Construction, Inc. Membership News TIME TO RENEW May 2011 Renewals (Renewal invoice to be mailed 3rd week of April.) Advanced Signs & Graphics, Inc. All Pro Sound Alpha Closets & Company, Inc. Authentic Construction, Inc. Bill Walther Roofing, Inc. BRM Residential Homes Clark Partington Hart Larry Bond & Stackhouse Coast to Coast Constructors, Inc. Containers, Inc. Coogle Homes, LLC Cotton Real Estate, Inc. Duffy Snyder, LLC Force 5 Walls, Inc. G. Daniel Green & Associates Gilmore Services Gleaton & DeMaria Commercial Dev. Gulf Coast Pool & Spa, Inc. Gulf Coast Title Partners, LLC Hamby’s Kitchen Center Hammond Engineering, Inc. Heritage Homes of Northwest Florida Irby Engineering & Construction, Inc. Jenkins Brick & Tile Company, LLC Kay’s Prestige Kitchen & Bath Kenneth E. Witt Carpentry, Inc. L. A. Builders LaSage Homes, Inc. Lee Mechanical & Plumbing Litvak Beasley & Wilson, LLP Live Oak Landscape, Inc. Luker Builders, Inc. Merrill Parker Shaw, Inc. MJW General Contracting, LLC PBS & J Pensacola Ready Mix Sandy Sansing Dealerships SBD of FL, Inc. Cabinets - Millwork Todays Homes of Northwest FL Town & Country Industries W.R. Taylor & Co. Westervelt Ecological Services Williams-Brown, Inc. April 2011 • www.westfloridabuilders.com 17 Advertiser’s Index In construction, a spike is a steel object that is essential to making a building strong. As in construction, the HBA of West Florida sees a Spike as someone that works to keep our association strong. Spikes work on the recruitment and retention of members in addition to keeping members active with the association. Anyone is eligible for Spike status. On Spike credit is awarded for each new member recruited and an additional credit is awarded for that new member’s renewal on or before their anniversary date. If you help to retain a member, you are eligible to receive a half point for each member. Spike Club Levels Spike Candidate Blue Spike Life Spike Green Spike Red Spike Royal Spike Super Spike Statesman Spike Grand Spike All-Time Big Spike1500+ 1-5 credits 6-24 25-49 50-99 100-149 150-249 250-499 500-999 1000-1499 Spike Club Members and their credits as of 03/01/2011 18 Super Spike Harold Logan Rod Hurston Jack McCombs 250 Credits 497.5 397.5 271.5 Royal Spike EB Williams Mike Blanton Ron Anderson Edwin Henry Rick Sprague Carlton Bowers Bob Boccanfuso Betty Evans 150 Credits 210.5 199.5 198 192.5 185 160.5 159 153.5 Red Spike Thomas Kennedy Collier Merrill Alan Brock Lee Magaha Don Suarez Dan Gilmore Oliver Gore Greg Brock 100 Credits 145 129 127 124.5 117 113.5 111.5 103.5 Green Spike Ricky Wiggins William “Billy” Moore Doug Sprague John Harold Ron Tuttle David Holcomb Kenneth Ellzey, Sr. Wayne Underwood Millie Carpenter Chris Pate Kevin L. Ward Paul Stanley 50 Credits 88 79.5 77.5 76 68 67.5 60.5 58.5 56.5 55.5 55.5 54 Life Spike Randy Lemon West Calhoun Tina Monie Bob Price, Jr. Laura Tkach Neil Jernigan Wilma Shortall Don Brantley Raymond Noel Rick Faciane Eddie Zarahn Darrell Gooden Garrett Walton Thomas Westerheim 25 Credits 49 48.5 47.5 47 46.5 44 43.5 43 42 39.5 37 35 28.5 25 Blue Spike Richard Baker James Dillaha Ed Wonders John Hattaway Newman Rodgers IV Keith Swilley Doug Whitfield Russ Parris Todd Stafford Jim Harris Steve Moorehead Michelle Bean Dean Williams Towana (Rudd) Henry Paris Carlton Doug Herrick Beth Shoemaker Bernie Mostoller Beth Shoemaker 6 Credits 23.5 21.5 18 18 17 16.5 15 14 13 12 12 12 10.5 10 10 9.5 7 7 6 If you would like to join the Spike Club or Desire Additional Information, please contact Alecia Overman at (850) 476-0318. Advertiser’s Index Alpha Closets and Company 850.221.8771 [email protected] www.AlphaCloset.com 19 Anchor Pest Control 850.435.7696 [email protected] www.AnchorPestControl.com 19 Bonded Builders Home Warranty 7 800.749.0381, ext.800 www.bondedbuilders.com Energy Services of Pensacola 850.436.5050 www.espnnaturalgas.com 2 FHBI 888.513.1222 www.fhbi.com 12 Gulf Power 850.505.5338 www.GulfPower.com Raised Floor Living 504.443.4464 [email protected] www. RaisedFloorLiving.com 2 warren wight creative services [email protected] www.ww-cs.com 13 NEXT CORNERSTONE ISSUE: MAY 2011 For advertising information, contact Richard Nicholson 561.843.5857 / [email protected] Home Builders Association of West Florida • April 2011 Back Cover April 2011 • www.westfloridabuilders.com 19 20 Home Builders Association of West Florida • April 2011
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