Florida HomeBuilder Winter 2015

A Publication of the Florida Home Builders

Association

WWW.FHBA.COMWINTER 2015

SurVEY: Florida BuildErS rEPorT iMProVEd, STaBlE GroWTH

2015

LEGISLATIVESESSIONADVOCACY IN ACTION

www.FHBAMAGAZINE.com

MEMBER BENEFIT

411 CODEMEMBER HOTLINE:HELP JUST A CALL AWAY

Jerry LinderFHBA President

2 • Florida HoMEBuildEr WINTER 2015 WINTER 2015 Florida HoMEBuildEr • 3

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Find it in our digital archive by scanning the QR code or visit www.fhbamagazine.com

Miss an Issue?

Join Us For Spring Legislative Conference

Register Today at:http://fhbasc2015.eventbrite.com

Key political activities will include:

Monday, March 16, a exclusice dinner for Thousand Club Members at the Governor’s Club. You can join the Thousand Club at: www.fhba.com/docs/FHB_PAC_1000Club.pdf

Tuesday, March 17 is reserved for the morning legislative briefing and for you to visit legislators.

On Tuesday evening, FHBA will host a legislative reception. Many local groups will be hosting reception dinners with members from their local delegations.

Members will be briefed on policy issues that impact our industry and be provided with materials to hand out during visits.

MAKE YOUR VOICES HEARD IN THE

HALLS OF THE STATE CAPITOL

at the Spring Conference, March 16- 18, 2015.

CONTENTS

WINTER 2015

DEPARTMENTS AND FEATURES

For Starters: Florida Builders Report Slow, Steady Growth ..... 4

Employer News: Florida Legislative Session Update .............. 11

Political Q&A: Interview with Senator Wilton Simpson ........ 14

SEBC 2015: Are You Ready for the Rockin’ New SEBC? .............16

Are You Covered? New Entities and Your GL Policy ....................18

Design: Sophisticated Carriage Homes ..........................................19

Builder Marketplace: GE Connected Kitchens ............................24

From the CEO: Connect with FHBA .............................................28

NAHB Money-Saving Discounts for Members .............................29

President’s Message: Returning the Focus to Advocacy ................30

GOVERNMENTAL AFFAIRS

6 Legislative Session: Issues to Watch Take a moment and get familiar with the issues which

our legislative team will be working on this Session. The

issues to watch are those that could potentially impact our

industry. Some details are lacking as they have yet to be

fi led as of press time. For updates, visit www.fhba.com.

MEMBER BENEFIT

13 Solutions Just a Call Away: 411 CodeAsk any contractor to list their biggest challenges and chances

are working with building code departments tops that list.

With layers upon layers of regulations to contend with, it

is no wonder builders and building departments can fi nd

themselves at odds in interpreting the codes. FHBA’s 411 Code

Member Benefi t makes solutions just a call away.

6

24

WINTER 2015 Florida HoMEBuildEr • 3

www.fhbamagazine.com

Miss an Issue?


4 • Florida HoMEBuildEr WINTER 2015

FOR STARTERS

WINTER 2015

EDITOR & PUBLISHERJohn M. Baker

[email protected]

BUSINESS OFFICEDestinCom, Inc.

1334 Timberlane Road Tallahassee, FL 32312 Phone: (850) 545-1362

ADVERTISINGLeslie Baker

[email protected]: (850) 545-5023

Jeff PinwarPhone: (810) 496-1106

[email protected]

SPECIAL EDITION SALESStrategic Value Media

CONTRIBUTING EDITORSDouglas Buck, Keith Driggers and John Fiorini

Florida Builders Report Slow, Steady Growth BUILDER SURVEY

Florida HomeBuilder, (ISSN 15315436), WINTER 2015. Published quarterly for the Florida Home Builders Association by Destination Communications, Inc. at 1334 Timberlane Road, Tal-lahassee, FL 32312 and distributed to FHBA members. Reproduction in whole or part is prohib-ited without written authorization. Articles appearing in Florida HomeBuilder do not necessar-ily reflect the views or policies of FHBA. Articles are accepted from individuals in the industry to provide a forum for our readers. Annual membership dues include $3.59 for a 1-year subscrip-tion to Florida HomeBuilder. Non-members may request a subscription for an annual fee of $10 plus $6 shipping and handling.

Send address changes to: FLORIDA HOMEBUILDER, 2600 Centennial Place., Tallahassee, FL 32308

Postage paid at Tallahassee, FL and additional mailing offices.

COMPILED BY JOHN M. BAkER

Slow but steady was how the over-whelming majority (over 80 percent) of responses from our recent Builder Confidence Survey saw the industry moving as 2015 began.

Impact Fees, Code and Lien LawThough there are a lot of issues important to

Florida builders this year, slightly more impor-tant in terms of Legislative Priorities are: Code Bills, Impact Fee and Growth Management, and Lien Law Changes. For more on FHBA’s stance on these and other issues, please see Page 6 and make your own voice heard by attending FHBA’s Spring Conference.

Interest Rate Bump ExpectedNearly 60 percent of respondents said they

expected mortgage interest rates to rise from between 0.5 and 1.0 percent over the next 12 months (above the 3.85% average in January).

Bush, Clinton on 2016 Ballot?When asked whom they would like to see on

the U.S. Presidential Democratic ballot in 2016, just under 30 percent choose Hillary Clinton, and 25 percent choose “Other.” For Republicans, nearly 40 percent wanted to see Jeb Bush, 22 per-cent said Scott Walker, and 7 percent “Other.”

We asked an audience of licensed Florida builders and former attendees of building trade shows to take this non-scientific survey. All were emailed the survey with two opportunities to respond. The respondents were randomly selected from across Florida.

John Baker is publisher of Florida HomeBuilder magazine and president of Destination Communications, Inc., Tallahassee, a marketing and advertising firm. He can be reached at [email protected].

Prohibited Discrimination (to include sexual orientation, gender

identity or expression)

Equal Pay for Women

State Minimum Wage (from $6.15 to $10.10)

Social Media Privacy (prevent employ-ers from gaining access to employee or

applicant’s account)

Employment Screening (employers can only consider criminal

history after determination min. quali-fications for job are met)

Lien Law Changes

Water Policy

HOA Legislation

Impact Fees and Growth Management

Code Bills

Please rate the importance of these legislative issues for the 2015 Session?

Today’s mortgage rate average is 3.85%. How do you expect rates to change over the next 12 months?

Decrease by 1%

Decrease by 0.5%

No change Increase by 0.5%

Increase by 1%

I have no idea

Survey More Results and Survey Comments See Page 21


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BY FHBA GOVERNMENTAL AFFAIRS

Political blogs are teeming with stories about

the ousting the Florida Department of Law

Enforcement Commissioner, Medicaid

expansion, Amendment 1 implementation,

Common Core and a plethora of other issues

pending before the 2015 Legislature. These

issues, overlaid with the political drama of a virtual tie in the race

to be Senate President in 2016-2018, created an environment

that issues relevant to our industry received little exposure in the

weeks leading up to the start of Session.

The issues presented below are not an exhaustive list. They

represent the issues we know at this time that could potentially

impact our industry. Some details of these pieces of legislation are

lacking as they have yet to be filed.

Depending on what legislators consider during session, we

will be flexible on what issues we advocate for or against. Our

positions will continue to crystallize as coalitions with legislators

and others are established and bill language is developed.

liEN laW CHaNGESMultiple legislators report constituent frustration over

the complexity of the lien law. Indications are that legislation

addressing fraud, consumer education and noticing requirements

are being contemplated by multiple members.

At least one House member supports removing residential

property from the lien law and replacing it with a different

scheme (perhaps a performance bond requirement or limiting lien

rights to only those in privity with the homeowner) to remedy a

problem whereby his constituents had to pay twice.

FHBa Position: The Florida legislature should

not make sweeping changes to the lien law such

as exempting residential property or requiring

performance bonds in lieu of the lien law. rather, the

legislature should make targeted changes to the

law addressing fraud and better consumer noticing

requirements.

SPriNGS lEGiSlaTioNWater policy discussions will dominate this year’s legislative

agenda. Proposals will seek to address how development impacts

the quality of the state’s spring waters.

Industry-related issues will range from severely limiting or

prohibiting independent septic systems in spring shed areas to

requiring active (multi-pump) systems to remove septic nutrients.

Some will advocate an outright ban in designated areas. Needless

to say, the potential impact on our industry is far-reaching.

FHBa Position: Because no bill is yet available, and

when it becomes available it will change weekly, the

FHBa staff has developed some bench marks for these

complex negotiations.

• Every new action required should have a cost attached

to it and be fully funded prior to implementation of the

action or a regulation.

• The term BMAP (Basin Management Action Plan)

will become the determining factor for regulation and

expenditure of funds around each spring shed. BMAP’s

will spell out who caused what and who does what. The

BMAP, which do not exist for all springs, should be the

main operative document for identifying problems and

implementing recovery strategies and projects, based on

priorities over time.

2015 Legislative PreviewIssues to Watch During the Upcoming Session


(Continued on Next Page)

Rusty Payton


Join Us For Spring Legislative Conference

Register Today at:http://fhbasc2015.eventbrite.com

Key political activities will include:

Monday, March 16, a exclusice dinner for Thousand Club Members at the Governor’s Club. You can join the Thousand Club at: www.fhba.com/docs/FHB_PAC_1000Club.pdf

Tuesday, March 17 is reserved for the morning legislative briefing and for you to visit legislators.

On Tuesday evening, FHBA will host a legislative reception. Many local groups will be hosting reception dinners with members from their local delegations.

Members will be briefed on policy issues that impact our industry and be provided with materials to hand out during visits.

MAKE YOUR VOICES HEARD IN THE

HALLS OF THE STATE CAPITOL

at the Spring Conference, March 16- 18, 2015.



• There should be significant additional specific funding allocated

to new BMAP programs for springs. Next, there is the cost of

cleaning and protecting spring sheds.

• New development should not bear the costs through excessive

regulation.

• There should be no identified statutory prohibited onsite

activities in a spring shed area or protection zone.

HoMEoWNEr’S aSSoCiaTioN lEGiSlaTioN

We expect legislation significantly augmenting homeowners’

association regulations in Florida to be filed this year. Last Session,

a bill applying condo regulations to the homeowners’ associations

surfaced. This includes an ombudsman process for addressing

grievances and the creation of state bureaucratic oversight.

The sponsor of last year’s legislation has asked for industry help and

evaluation of the issues his constituents are experiencing.

FHBa Position: Mimicking the condo regulations to address

specific interactions between homeowners and developer-

controlled associations is overkill.

The FHBa will continue to seek remedies for the specific

issues brought to the forefront. However, any proposed

changes must not place at risk a developer’s investment in a

new community.

GroWTH MaNaGEMENTWe anticipate a number of growth management related issues will

surface. Though water policy will consume much of the Legislature’s time

and energy, these growth management issues could have a significant

impact on our industry. Of particular importance is the codification of the

Koontz case.

The Koontz case provided that monetary extractions that local

governments seek to gain from land owners are constitutional only if: 1)

there is an “essential nexus” between the exaction and the government’s

legitimate interest; and 2) there is a “rough proportionality” between the

exaction and the projected impacts of the proposed development.

Additionally, the government, not the landowner, is required

to provide the evidence needed to meet these standards. If you are

interested in learning more about the Koontz case, go to the NAHB

website and access the Koontz Tool Kit.

FHB Position: Codifying the Koontz decision into Florida

Statutes puts local governments on notice that monetary

extractions are required to have a rational nexus between the

monetary extraction and the government’s legitimate interest

and that the extraction be proportionate.

CodE BillSFHBA is taking the lead once again on the “annual” code bill.

Specifically, the legislation will eliminate the duplicative advanced code

training requirements mandated by the Florida Building Commission,

grant statutory authority to UL to be an evaluation entity for product

approvals, add Division II contractors to the Construction Recovery

Fund,and clarify the Department of Health’s role relating to maintenance

of commercial pools.

Additionally, we are working with a legislator on a bill that creates a

statewide Master Permitting Program and limits duplicative fees charged

by building departments when builders utilize private providers for

building inspections.

An omnibus package to address inconsistencies between the fire

code and building codes is anticipated as FHBA and other stakeholders

convened this summer to discuss a myriad of fire code issues. This

legislation will also revise time constraints for fire code plan reviewers to

be consistent with timelines for building official plan reviewers, increase

education and training for fire code plan reviewers, allow fire marshals to

issue binding interpretations, grant authority to combine fire and building

code appeal boards where feasible, and explore the option of moving

Florida away from the NFPA Fire Code to the International Fire Code.

aPProPriaTioNS iTEMSAnnually, the FHBA seeks appropriate funding for a variety of issues

impacting our industry. These are our known “asks”:

1. affordable Housing: Though some policy makers suggest that

the passage of Amendment 1 (requiring that 33% of documentary stamp

revenues be used for environmental preservation) means no resources will

be available for affordable housing, the FHBA and other members of the

Sadowski Coalition quickly point out that even the materials supporting

Amendment 1 said it should not impact affordable housing.

2. unlicensed activity Funding: The FHBA will lobby to

maintain current levels for unlicensed activity investigation funding.

Recent reports suggests the past investment is beginning to pay off as

several localities have engaged sting and sweep operations, arresting

unlicensed contractors, combating fraud and the construction of unsafe

buildings.

3. Septic Study: The state should complete its final funding

(+/- 600,000) for the passive septic system study. Abandoning the study

after investing $4.5 million makes no sense. If the study is forced to an

incomplete end, the data will be inaccurate and unreliable. This study will

help us address the water issues associated with onsite sewage systems.

4. Future Builders of america: FHBA stands ready to once again

assist the Future Builders of America if they seek additional state funding.

Several workforce issues are on the horizon. Establishing Future Builder of

American chapters in schools is important to creating and appreciation and

understanding of the construction trades.

Again, this list of issues is by no means comprehensive. If you have a

construction industry issues not listed, it is likely on our radar screen. If

you are not sure, feel free to e-mail us at [email protected].

(Continued from Previous Page)


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Florida Legislative Session UpdateSUMMARY OF THE PROPOSED BILLS DIRECTED AT THE WORkPLACE

With the 2015 Florida Legislative

Session here, Florida employers

should note some proposed legislation

directed at the workplace. As of

this publishing, the following

employment related bills have been filed: HB 33/SB 156 –

Prohibited Discrimination, HB 25/SB 98 – Employment

Discrimination, HB 47/SB 114 – State Minimum Wage,

SB 126 – Social Media Privacy and SB 214 – Employment

Screening. Below is a quick summary of each bill:

HB 33/SB 156 Prohibited Discrimination(Raschein – D; Abruzzo – D)

HB 33/SB 156 is the one to watch in 2015. The bill, which

has been filed in the House and Senate, has bipartisan sup-

port and is expected to receive much debate. The proposed

legislation would broaden statutory prohibitions on dis-

crimination to include “sexual orientation, gender identity or

expression.” In addition, the legislation would expand Florida’s prohibition to include discrimination “on the basis of or based on the perception of race, color, religion . . . .”. While a ban on discrimination against

LGBT Floridians has support, industry and advocacy groups

will focus upon the bill’s reference to discrimination based

upon “perception.”

HB 25/SB 98 Employment Discrimination (Cruz – D; Joyner – D)

HB/SB 98 would provide the Florida Department of

Economic Opportunity and the Florida Commission on

Human Relations with additional duties relating to equal

pay for women. These duties include conducting studies to

assess any pay gap between men and women, ensuring that

companies receiving state contracts comply with antidis-

crimination and affirmative action requirements, as well as

some educational or outreach measures.

BY CHRISTOPHER B. LUNNY AND TED PREkOP

“HB 33/SB 156 is the one to watch in 2015.”

EMPLOYER NEWS

HB 47/SB 114State Minimum Wage (Stafford – D; Bullard – D)

HB 47/SB 114 would raise Florida’s minimum wage from $6.15 per hour

to $10.10 per hour as of January 1, 2016 for all Floridians. At present,

Florida’s minimum wage requirement is tied to the federal minimum

wage; it only applies to employers that are subject to the federal minimum

wage. The proposed legislation, however, would unbundle these laws and

expand the reach of Florida’s minimum wage requirement.

SB 126Social Media Privacy (Clemens – D)

SB 126 would prevent employers from taking any action to gain access

to an employee or applicant’s social media accounts. The bill would also

create a new statutory civil action for employees against employers that

violate the prohibition and includes a claim for attorney’s fees.

SB 214Employment Screening (Clemens – D)

SB 214 would prevent employers from inquiring about an applicant’s

criminal history in a job application form. Instead, employers could only

consider an applicant’s criminal history after the employer determined

that the applicant meets the minimum qualifications for the position to

be filled.

If you have any questions regarding the above-mentioned bills

or any other employment related legislation, please contact our

office at (850) 425-6654.

This article is meant to provide a brief overview and points of discussion regarding employment and labor law topics. Should a particular issue arise or should you desire additional consultation to protect your firm, the advice of a competent counsel should be sought.


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411 CodeCODE SOLUTIONS NOW JUST A CALL AWAY

MEMBER BENEFIT

PUT THIS FHBA MEMBER BENEFIT TO WORK FOR YOU

The Florida Home Builders Association is proud to provide members a solution through the 411 Code program. 411 Code provides members free access to 30-year

building administration veteran John Farinelli to ask questions, provide code interpretations and give plan review assistance and analysis for builders who fi nd themselves at odds with their local building departments.

As a self-proclaimed “Code Geek” who collects old codebooks as a hobby, Mr. Farinelli is a widely respected expert in his fi eld. He is licensed by the state of Florida as a building code administrator, plans examiner and inspector in all disciplines and as a fi re safety inspector. Additionally, he is a Master Code Professional holding 25 International Code Council (ICC) certifi cations, is credentialed as a LEED AP by the United States Green Building Council and is certifi ed as a Floodplain Manager by the Association of State Floodplain Managers.

How can this member benefi t help you? Consider the following two cases:

Case Study 1A South Florida homebuilder contacted

Mr. Farinelli to request his assistance in interpreting the code requirements for a three-story town home development near Tampa. The building department required fi re sprinklers. The homebuilder disagreed with the building department interpretation of the code. Mr. Farinelli reviewed the applicable codes and sided with the homebuilder. He provided his analysis in a written report that the homebuilder presented to the building code department. The building

department accepted Mr. Farinelli’s interpretation and the builder saved between $2.50 - $3.00 per square foot.

Case Study 2A Jacksonville builder found himself at

odds with the local building department over a two-story, open-air parking deck. The builder’s plan called for a stairwell, but the building department insisted on an elevator. Mr. Farinelli examined the plans and the code offi cial’s opinion and determined the wrong code standard was being applied. The code offi cial had applied Florida Accessibility Code standards, when it fell under the Fair Housing Act. Once again, Mr. Farinelli provided a report and the builder prevailed, saving time and money on the project.

Make the CallFlorida Home Builder members

that contact Mr. Farinelli can expect to receive a response within 24 hours and an answer in as little as 10 minutes or a long as 5 days, depending on the complexity of their request. “The calls I get from builders vary. Sometimes they begin, ‘I’ve heard this rumor the code is going to change or I’m having an issue with the design, or help me clarify this,’” says Mr. Farinelli.

“If I don’t know the answer,” Farinelly says, “I call others in my network and then provide an interpretation that the builder can use to make an informed decision or

Ask any contractor to list their biggest challenges and chances are they will list working with building code departments. With layers upon layers of regulations to contend with, it is no wonder that builders and building departments can fi nd themselves at odds in interpreting the codes.

under the Fair Housing Act. Once again, Mr. Farinelli provided a report and the builder prevailed, saving time and money on the

Florida Home Builder members that contact Mr. Farinelli can expect to receive a response within 24 hours and an answer in as little as 10 minutes or a long as 5 days, depending on the complexity of their request. “The calls I get from builders vary. Sometimes they begin, ‘I’ve heard this rumor the code is going to change or I’m having an issue with the design, or help me

“If I don’t know the answer,”

my network and then provide an interpretation that the builder can use to make an informed decision or

To access this valuable member benefi t, contact John Farinelli, call (561) 662-6545 or email [email protected]

make their case. I provide an unbiased opinion and interpretation of the code based upon my background and experience”.

“I have traveled across this country instructing building code seminars from New York to California and Canada to Florida, and I can tell you the issue is usually the same – differing interpretations of the code,” says Farinelli. “Codes are by nature dry, technical documents with many grey areas open to interpretation. I enjoy helping builders and code offi cials both fi nd ways to work together and achieve a safe and code compliant outcome.”



SENATOR WILTON SIMPSONPrincipaled Leader, Seasoned Businessman

INTERVIEW

What made you decide to run for public offi ce? Wanting to improve my community is what led me to run for offi ce in 2012.

I think that since elected, we’ve really listened to people and we’ve been able to get some common sense legislation passed. That’s what is important to me.

You are rumored to be Renaissance man, involved in several business ventures. Share with us what those interests are.

I own two businesses. Simpson Environmental Services, Inc. specializes in asbestos removal, mold remediation, duct cleaning, lead-paint abatement, general contracting, and demolition work; and Simpson Farms, Inc., is an egg-laying operation based in Trilby that supplies eggs for supermarkets throughout the state of Florida.

Among the business ventures you listed was construction and development. What “frustrations” have you experienced as a contractor/developer?

Just like so many other contractors, I have experienced a great deal of frustration while trying to improve and develop properties. In particular, while working on some historic buildings and trying to comply with a myriad of state, local and fi re codes that were not always clear and at times even confl icting, I felt like there had to be a simpler way.

What do you perceive to be the major homebuilder issues during the 2015 Legislative Session?

The Legislature will be taking a hard look at the Development of Regional Impact (DRI) program and whether that is still benefi cial to the state’s growth management scheme. From what I have learned so far, the program duplicates regulatory reviews that are performed under the comprehensive planning process by many of the same agencies. However, the DRI process takes much longer (up to two years) and can cost millions of dollars. So the program presents a major disincentive to developers thinking of pursuing these types of large, well-planned housing projects without

POLITICAL Q&A

providing any real benefi t to the state’s ability to plan for environmental, transportation or other impacts.

The consistent application of the Florida Fire Prevention Code and Florida Building Code directly affects homebuilders. When these codes aren’t perfectly aligned, there needs to be a predictable and timely process to resolve the issue that takes into account construction realities. The non-binding interpretation process currently used could be enhanced, so that individual Fire Marshalls aren’t expected to come up with their own solutions in response to the needs of homebuilders.

Additionally, it will be important for the Legislature to fully fund the Sadowski Trust fund for affordable housing.

What other issues are a priority to you during the 2015 Session?

The implementation of Amendment 1; protecting our natural resources; funding our schools and supporting our teachers; and stopping the exploitation of private business owners and contractors by unscrupulous individuals who have been misusing our public record laws for the sole purpose of getting settlement money.

Senator Wilton Simpson

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The formation of new entities, for specifi c projects or other reasons, is a common practice in the construction industry. However, their use creates

many questions and potential issues from an insurance perspective that should be discussed with your insurance agent as early as possible in the process so your insurance options can be evaluated and a plan of action determined before the fact.

For the purposes of this article, we’ll reference the “standard” General Liability (GL) policy issued by the Insurance Service Offi ce (ISO) and used by many insurance companies. However, it is important to note that many insurance companies use their own coverage forms which can vary greatly.

Who is covered?In the ISO GL policy, a newly acquired or

formed entity over which a Named Insured maintains ownership or majority interest is

ARE YOU COVERED?

Newly Acquired or Formed Entities and Your GL PolicykEITH M. DRIGGERS, CPCU, ARM, CIC

entity, your current insurance company may or may not agree to add it, based on that company’s underwriting guidelines.

What is covered?Under the extension of coverage, the newly

acquired or formed entity becomes an Insured by defi nition and is afforded the same coverages as any other Insured(s) as defi ned in the policy. That said, the new entity is also subject to ALL of the existing provisions, limitations and exclusionary endorsements of the policy.

Coverage under this extension will never be broader than the policy as originally issued despite the operations of the new entity. There could be any number of provisions in the policy which directly exclude coverage for the operations of your new entity.

Cutting to the ChaseThe “Newly Acquired or Formed” provision of

your General Liability insurance policy is intended to provide a cushion between your acquisition and getting to your insurance agent, but some of the most common entity types are not included.

Remember, your current insurance policy was negotiated, designed and affected based on your operations as they were. The new operations, no matter how similar, must also be closely reviewed and coverage designed and placed accordingly.

The best practice is to have your insurance agent’s input prior to the acquisition or formation so the right coverage is in place from day one.

Next Time: Do I Need to Maintain Insurance Coverage on Closed Entities? (Hint: Th e answer is “Yes!”)

FHB Insurance CEO Named Chair of Florida Surplus Service Off ice Board of GovernorsFHB Insurance CEO keith Driggers has been named Chairman of the Florida Surplus Lines Service Offi ce Board of Governors, a not-for-profi t established by the Florida Legislature in 1997 whose mission is to facilitate compliance with Florida’s surplus lines insurance laws. keith was appointed to the FSLSO Board of Governors in 2010 by then Florida CFO Alex Sink and re-appointed in 2013 by current Florida CFO Jeff Atwater. Keith Driggers

RESIDENTIAL WARRANTY COMPANY, LLC

automatically included as an Insured for 90 days, or until the policy expires, whichever occurs fi rst. However, not all entity types are included; there are some important exceptions.

Joint ventures, partnerships and LLCs are not afforded automatic coverage and must be specifi cally added as Named Insureds for coverage to be in effect. Coverage ceases on the 91st day and the new entity must be added the policy or separate coverage purchased. It is important to note that depending on the nature of the operations of the newly acquired or formed


DESIGN

BY DONALD F. EVANS, AIA

Sophisticated Carriage Homes

W hat is in a name? I have repeated this question numerous times in this column

over the years and somehow I still see people marketing condos and talking about alleys. You are selling a lifestyle oriented HOME, not a condo unit! Who wants to live in a condo? Not many takers I assure you, especially not in Florida where their reputation proceeds them! But if you show people a HOME with a sophisticated elevation and spacious floor plan where they don’t have to spend their weekends painting the house, fixing the gutter and cutting the yard – you have started a conversation!

This month, we are featuring Santa Barbara styled Homes in a four-plex flat-over-flat configuration. First impression is that each front door is separate and private, unlike most condo configurations. The garage is large enough for 2-cars and at least one golf cart, but with one-car split doors.

Taking a closer look at the homes located on the first floor with 2 bedrooms, den and 2 ½ bath in 1,905 – 2,012 square feet with optional café and home theater. Some of the hot buttons include: an open floor plan, a large gourmet kitchen with island, pantry, and direct access to lakeview porch and a mud room (not a utility room). The homes on the second floor are even more sophisticated with 2,348 – 2,810 square

Don Evans


DESIGN

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feet boasting optional 19th hole, café and ale bar. These homes rival any single family home in a comparable square footage on the market today. The overall footprint of the building is 96’8” (47’4” per side) x 82’ – a common footprint for single family, but enables four homes instead of one.

Buyers from fi rst-timers to last-timers are looking for a maintenance free lifestyle today. Face it, most of us grew up watching our parents take care of the house on the weekend with very little time to ‘play’; if

offered a nice HOME that doesn’t take that kind of time commitment, most buyers will take advantage of the opportunity! This is the epitome of a balanced lifestyle; spending time with family and friends instead of cleaning the gutters! Don’t shy away from multi-family or condominium type confi gurations, just make sure to do them right and provide a HOME.

Donald F. Evans, AIA, is the founder of The Evans Group, award-winning architects and planners head-quartered in Orlando.

Visitors to the new three-bedroom Asti model home will immediately get a feel for its open design and sense of place

at Tidewater Preserve, WCI Communities’ premier boating community located along two miles of the Manatee River in Bradenton.

The two-story single-family Classic Home design introduces its sweeping 3,402 square feet of living space in the foyer, with 14.5-foot coffered ceilings and an open staircase that establishes the Asti’s emphasis on openness in the main living areas. The payoff upstairs: A second-fl oor balcony that provides expansive views of the Manatee River above the treetops.

The model is open for viewing and features interiors by Kay Green Design of Winter Park, Florida.

“The fi rst thing you see when you enter the home is the staircase and the tall ceilings, then you walk into the spacious great room,” said Katie Trentley, senior interior designer for Kay Green, who selected medium- and dark-wood furniture to warm the space and woodsy colors to reference the river. “Behind the great room’s sitting area and dining room are two sets of sliding glass doors leading to even more gathering spaces.”

The model’s extensive interior and al fresco gathering areas, plus its large second-fl oor media room, make it an ideal home for entertaining – a theme conveyed in the model.

The Asti, one of fi ve Classic Home designs at Tidewater Preserve, also offers a den, three full bathrooms, two powder rooms, a two-car garage and separate golf cart garage. It overlooks a conservation area not far from the river.

The home design features 4,928 total square feet, including garages, covered entry, lanai and balcony.

For more information about Tidewater Preserve, call 941-465-4001 or visit www.TidewaterPreserve.com.

River-inspired Asti model home opens for viewing at Tidewater Preserve


Your homebuyers can have it all with Natural Gas – added style, comfort and energy savings.

• Precise temperature control in the kitchen or at the outdoor grill

• Shorter drying times for fresher, softer clothes• Endless hot water without the tank, and up to

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You earn up to $1,250 per home in rebates when constructing new homes with natural gas, and you may be able to meet stringent energy rating requirements more easily. Not to mention, natural gas homes sell faster and they sell for about 6% more on average according to a 2010 national study by the National Association of Home Builders.

We’re ready to give you and your homebuyers more. Find out if natural gas is available for your next residential project.

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More choices.More upgrades.More potential.

Very slight upswing in new construction, larger upswing in remodel/renovation as interest rates stay low.

Steady as she goes.

Trending up.

Moderate.

Starts increasing

thru the year with a good market.

Steady growth for the small builder. Explosive growth for the national

builders.

Slight rise.

Steady but limited.

Good.

Steady increase.

On the rise.

Growing.

Should improve.

Positive Outlook

SURVEY

(Continued on Page 22)

Builder Survey (Continued from Page 4)

If the 2016 US Presidential primary were held today, which Democrat

would you like to see on the ballot?

If the 2016 US Presidential primary were held today, which Republican would you like to see on the ballot?

Briefl y describe your 2015 forecast regarding home building in Florida.

Hilary Clinton

Elizabeth Warren

Joe Biden

Martin O’Malley

Andrew Cuomo

Kirsten Gillibrand

Other Rand Paul

Ted Cruz

Scott Walker

Ben Carson

Chris Christie

Bobby Jindal

Marco Rubio

Ken Cuccine

JebBush

Other


Slow and steady

Continue to build.

Moderate growth (15%) in SE Florida as new projects are subjected to longer approval processes. SW Florida shows strong growth (25-30%) due to fast-track Approvals and more land available East of I-75.

Steady moderate growth.

Very good.

Improved.

Moderate.

Looks promising.

SURVEY (Continued from Page 4)

Should be great if the large homebuilder do not over build and saturate the market.

Increasing steady.

Better than last year.

Slowly grow.

Should be very steady, with builders being hurt by rising materials, labor, and code related costs, which will hurt overall housing growth due to un-affordability to the masses.

Some what slow maybe picking up in summer.

Consumer confidence is up. More transactions... Selling current home and

moving locally to different home. Slow & steady new home sales.

Getting better but jobs still an issue and tight money.

Slight increase in new construction.

Improving.

Up 3-5 percent.

Expect it to continue to improve.

Bright Future.

Strong rebound if prices do not escalate out of control and interest rates are stable or only slightly increased.

Slight growth, then slow down again at the EOY.

Moderate increase in building slight increase in purchases.

Small increases in new home construction and sales, larger increases in existing remodeling/renovations.

Modest growth despite increasing mortgage rates and excessive regulation.

Very busy.

Steady first 2-3 qtrs, up in 4th quarter.

“Up swing in energy-efficient homes, more green buildings, more zero energy homes or zero energy ready when built, heat pump water heaters will become the customer’s choice, two-stage cooling equipment customers are demanding comfort and air quality as a norm in the new homes. Homeowners are doing their research. Builders need to add a energy consultant to their staff ”

Moderate. Affordability and low wages and job growth a problem.

Slow positive growth. Assuming the overall economy continues to strengthen, my area (N FL.) will continue to grow at a steady and sustainable pace.”

Above average.

Negative OutlookNot good. More dumb Codes will expand

like a bad cancer, so code people can justify their jobs.

Slow upturn.

Dismal due to American dollar taking a crash after elections.

Well below average.

Slow.

Hopefully it will be slightly better than in

the past years but that has yet to be seen.

Commercial insurance, too.

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SUBJECTS INCLUDE

Advanced Building Code & Accessibility

BOOT CAMPfor Florida Building Codes

Get Your First Look at Florida’s Advanced Codes and Earn

SEVEN FREE CEU’sBOAF & FHBA are pleased to announce that we will be conducting FREE CEU training sessions at select locations throughout Florida. This FREE training is sponsored by the Department of Business and Professional Regulation.

www.LearnFloridaBuildingCodes.com

AlachuaBayBrevardBrowardCharlotte

CitrusCollierColumbiaDuvalEscambia

FlaglerHillsboroughLeeLeonManatee

MartinOkaloosaOrangePalm BeachPinellas

PolkSarasota St. JohnsSt. LucieVolusia

Courses will be held in the counties below. You can learn more about the seminar dates, times, classes and instructors at www.LearnFloridaBuildingCodes.com.

T H I S P R O G R A M I S P R O U D LY P R E S E N T E D B Y:


Frame Wall Hybrid Insulation System

Fi-Foil’s innovative Hy-Fi hybrid insulation system enhances the thermal performance of any air space. It is compatible with all types of insulation including foam, �berglass batts, cellulose, and foam-board.

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Exterior cladding or stucco

Exterior OSB sheathing

All Types of Insulation

Krevare’s Soap reservoir positions a gallon of soap at your fi ngertips for months.

Soaptainer™ Takes the Hassle out of Soap Dispenser Refi llsOne-gallon under-sink soap reservoir saves space and tips out for convenient re� lling.

Built-in kitchen sink soap dispensers are aesthetically pleasing and a great convenience, except when it’s time to refi ll them.

Now there’s Soaptainer™ from Krevare®, the convenient, see-through, tip-out reservoir that takes up just two inches of space in the cabinet, connects without tools to existing dispensers, and replaces that small bottle. Soaptainer’s base bracket screws securely to the fl oor of the cabinet, the container’s pivot hinge snaps solidly into the bracket, and the container tips forward for easy fi lling.

A clearly-marked scale on the front edge of the container lets you know exactly how much liquid soap it will take to fi ll the reservoir, and the wide mouth ensures quick, no-spill refi lls without the need of a funnel.

When it reaches the one gallon mark, Soaptainer still contains about a week’s supply of soap. That means you can buy a gallon jug of soap, pour the whole thing into Soaptainer and recycle the jug so there’s nothing to store under the sink. That gallon of soap lasts a really long time.Soaptainer will soon be available at

hardware and home stores. In the meantime

it is available for $49.95 plus shipping at

http://shop.krevare.com.

BUILDER MARKETPLACE


EvEn AftEr 80 YEArs, Our rEputAtiOn still DEpEnDs On YOurs

TM

As a builder or architect, your name doesn’t go on just “good enough”.

When it’s important to make a lasting impression, think Walpole Outdoors. With a virtually unlimited palette of beautiful, factory-finished colors, our handcrafted standard and custom pergolas, railing and trellises deliver the easy care and durability homeowners love. We can replicate your design styles in natural wood or fabricate them expertly in advanced low maintenance cellular PVC. What’s more, our CAD operators have the expertise to bring your unique concept to reality. At Walpole Outdoors we mean business... Yours.

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Hot baths, warm towels and perfect meals. Natural Gas delivers

style, comfort and savings for your homebuyers to enjoy.

peoplesgas.com/enjoy

BUILDER MARKETPLACE

One•Touch Electric Attic Stairway

One•Touch is a fully electronically controlled electric attic stairway. At the press of a button its advanced circuit board allows the electronic unlatching of the panel, then allows the controlled extension of the multiple stair sections safely and securely to the floor. Depressing the same push button allows retracting of the One•Touch stair sections, the closure of the panel, and it’s automatic re-latching. For high reliability and safety of operation, One•Touch has no position sensors.For more, visit www.marwincompany.com.


Steve Jobs called it seven years ago. The former CEO of Apple Inc. proclaimed the phone was not just a communication tool but also a way of life. In 2012, a Google study found that about

one in four U.S. smartphone owners would rather give up

Connected KitchensGE Leads the Way in Appliance Technology

their computer than their smartphone. How does the technology of your smartphone make its way into your kitchen? With the help of GE.

Knowing people view their phone as the toolbox of convenience for today’s connected culture, the new GE wall ovens and free-standing gas ranges have remote connectivity.

Whether facing a longer-than-expected “quick trip to the bank” or plagued with the question “Did I leave the oven on?” from outside the home, owners of GE Profile™ wall ovens or free-standing gas ranges can take control of their appliance using an app on their mobile phone.

A new update makes it possible for consumers to preheat, set the timer, check cooking status, and receive timely notifications from outside the home.

Now if only the chicken could baste itself before crawling into the roasting pan.

How it worksTo use the connected technology, owners

of new GE Profile wall ovens (models PT9550, PK7500, PT9050 and PK7000) or the free-standing gas range just need to download the GE Brillion™ mobile app and enable remote control.

GE’s remote-enabled wall ovens are made in LaFayette, GA. Wall oven models are available in black, white and stainless finishes, and single- and double-oven configurations in both 30 and 27 inches. The free-standing ranges (PB930, electric; PGB940, gas; and P2B940, dual fuel) are available in white, black or stainless steel.

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BUILDER MARKETPLACE

Tankless water heaters

Because your clients deserve endless hot water

Florida Propane Gas Safety Education and Research Council

or email [email protected] more information, visit PropaneFL.com

FHBA Member Rebate ProgramWe’re happy to introduce the FHBA Member Rebate Program, aimed at increasing your bottom line. For the minimal effort of informing us about the home construction products you use and when you close on a home or project, you’ll be putting money back in your pocket. Both Builder & Remodeler companies, no matter how large or small, qualify for the program. When you participate in the program, you can count on receiving checks every quarter!

Learn more about this discount and other great member benefits at www. FHBA.com.

I N T R O D U C I N G T H E

What’s new for GE in 2015Launching throughout 2015, GE’s full

suite of Profi le™ kitchen appliances, along

with a laundry pair and water heater, will give

consumers the tools they need to manage life at

home, such as cooking and cleaning, via their

smartphones.

The new GE Profi le appliances—French door

refrigerator and dishwasher, in addition to the

wall ovens and free standing gas ranges that are

available now—will help consumers simplify

tasks from remotely checking if ice is available to

preheating the oven from the grocery store.

Marvin Debuts Ultimate Multi-Slide DoorThe latest addition to Marvin’s scenic doors allows homeowners to seamlessly bring the

outside in. It is available in a vast array of confi gurations and sizes to fi t numerous, wide-

open spaces. As the door slides open, its panels

stack smoothly and neatly in front of one

another. Or, choose the pocket version, whose

panels tuck inside the walls. The panels come

in standard widths of 3’ to 5’ and heights of 7’

to 12’.

Choose from a uni-directional confi guration

or the bi-parting style, which opens from the

center. Lots of options.For more info, visit www.marvin.com.


FROM THE CEO

Connect with FHBABY RUSTY PAYTON

Though my tired body suggests I have been to every corner of Florida since joining FHBA late last year, I have yet to have the privilege of meeting many of our hard working members. If we have not yet met, you have been spared my speech about the 3-legged stool of relevant political organizations.

The three legs are: professional staff, political action resources and grassroots participation. As the 2015 Legislative Session approaches, I want to impart the importance of grassroots activity and make a plea for you to join us for Capitol

visits during FHBA’s Spring Legislative Conference, March 16-18 (note: Tuesday March, 17 is dedicated to legislative visits).

I was once asked to articulate the goal of grassroots lobbying. Naturally, it is to pass or defeat a particular legislative proposal. But that begged the question, how does grassroots activity supplement or contribute to the process if an organization has professional staff and political action funds? The reality is it gives FHBA professional staff (Doug Buck, Kari Hebrank, Robin Erb and myself) immediate credibility with legislators. It has never been my intention that a legislator’s position solely refl ects my relationship with him/her. The legislator’s position is a refl ection of the credible

evidence and the understanding of whom I represent in his/her district. The bottom line, Doug, Kari, Robin and I cannot vote for these legislators. You, however, are a voting constituent. So when I represent you, I represent a voter.

Creating the connection between FHBA staff and you, the constituent, requires three steps. First, always respond and act upon grassroots action alerts. These typically ask you to e-mail a legislator’s offi ce in a timely manner advocating for the support or defeat of a particular proposal. The e-mail from FHBA will contain background information and talking points.

Secondly, participate in District Days the last two weeks of February. We are asking that all members of the House and Senate be visited by a contingency of FHBA members prior to their arrival for the offi cial start of the 2015 Legislative Session on March 3. Your local HBA can provide more information on this activity.

Lastly, please join your FHBA Leadership in Tallahassee for the Spring Legislative Conference. Even if you are not a member on one of the governance committee’s meeting on Monday, March 16, join us. Tuesday, March 17 is dedicated to legislative visits. The morning will open with a legislative update, then off to the House and Senate Offi ce buildings we will go. That evening is the legislative reception, an event to which all 160 legislators, the Governor and the Cabinet members are invited to attend.

The old saying that there is strength in numbers applies. Legislators, staff and lobbyists take notice of the number of people who show up to represent their industry. We want to show up in droves with at least 200 members to prove to legislators we care about our issues and are fully engaged in the process.

I can’t promise I won’t share my three-legged stool analogy with you when you come, but I can promise you your time won’t be wasted. Register today and join your colleagues, Legislative Team and me as we represent the home building industry, show our support and prove our relevance once again to Florida lawmakers.

Spring Conference: Make Time, Make It a Priority

Rusty Payton

Rusty Payton, MBA, CAECEO/Chief [email protected]

Kimberly ScottChief Financial Offi cer/Chief Operations Offi [email protected]

Angela KalfasDirector of Accounting and Human [email protected]

Douglas BuckGovernmental Affairs [email protected]

Robin ErbLegislative [email protected]

Pati JacksonDirector of Conferences and [email protected]

Kailin KochAdministrative [email protected]

Chris IdolDirector of Information [email protected]

FHBA STAFFPhone: 850-224-4316

Toll Free: 800-261-9447

Fax: 850-224-1359

Physical Address

2600 Centennial Place

Tallahassee, FL 32308


Put your membership to work now.Money-saving discounts that benefit you, your business, and your family

National Association of Home Builders

nahb.org/MA

Recreated PMS


PRESIDENT’S MESSAGE

Returning the Focus to AdvocacyBY JERRY LINDER

Welcome to another edition of Florida Home Builder Magazine. No doubt you have enjoyed many years of reading news and industry updates as well as member

highlights. You may have noticed a change in focus beginning with this edition. As I promised in my inaugural speech, FHBA’s focus will return to the core function of ADVOCACY.

This edition of Florida HomeBuilder Magazine continues the tradition of industry news, updates, etc., but added to this edition is more extensive coverage about the upcoming Legislative Session. It highlights a key state leader, Senator Wilton Simpson, a successful entrepreneur with development interests. We’ve also presented several known pending legislative issues in detail while our CEO penned a letter about the importance of grassroots activity.

This material is not just fi ller, but a paradigm shift wherein the FHBA lives and breathes its core mission. As an organization, FHBA must improve its advocacy effort. We can no longer defeat ill-conceived ideas because of the “housing recession” (the old please don’t kick me while I am down argument will no longer resonate). To be effective, members must be engaged in all facets of the program (grassroots action and PAC giving) and understand the issues. This magazine provides an excellent platform for this important communication.

Future editions will continue to contain advocacy material as well as include other FHBA membership value interests.

For example, the next edition will focus on the upcoming SEBC meeting and the changes the committee is making with course content, exhibit hall and exhibitor participation.

(As a prelude, go ahead and mark your calendars to join us July 16-18, you are going to want to attend).

Our collective goal as volunteer leaders and staff is to enhance the membership value associated with FHBA and do better at communicating our value.

As we embark together on this paradigm change, please continue to provide feedback about how we are doing. You can reach me directly at: [email protected]

Paradigm Shift as FHBA Lives, Breathes Core Mission

Jerry Linder

2014-2015 FHBa SENior oFFiCErS

PRESIDENT

Jerry linder, Saint Augustine

FIRST VICE PRESIDENT/TREASURER

ray Puzzitiello, West Palm Beach

SECOND VICE PRESIDENT

Paul iandoli, Orlando

SECRETARY

Jeremy Stewart, Crestview

THIRD VICE PRESIDENT

Tony Martin, Orlando

IMMEDIATE PAST PRESIDENT

ron lieberman, Beverly Hills

PAST SECOND VICE PRESIDENT

Cindy Hall, Jensen Beach

CEO/CHIEF LOBBYIST

rusty PaytonTallahassee

SOLUTIONS FOR YOUR CONSTRUCTION BUSINESS

LIKE YOU, WE’RE PROBLEM SOLVERSFor more than 15 years, FHB Insurance has been providing innovative and affordable products to insure Florida’s construction industry. Like you, we’re focused on solutions and are constantly adding new products and insurance partners so that we can help you manage risk and do what you do best – build Florida’s future.

As the construction insurance market leader, we bring a variety of products to the table so that you and your agent can select the right coverage for you. Give us a chance to earn your business and ask your agent to contact FHB Insurance for a quote.

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Find An Agent


You may not realize it, but your home is sitting on a free and renewable supply of energy. A WaterFurnace geothermal comfort system taps into the stored solar energy in your own backyard to provide savings of up to 70% on heating, cooling and hot water. WaterFurnace units have an average lifespan of 25 years because they’re installed safely inside your home. That means corrosive saltwater sea breezes will no longer force you to replace your outdoor air conditioner in just a few years. That’s money in the bank and a smart investment in your family’s comfort. To learn how to tap into your buried treasure, contact your local territory manager at waterfurnace.com/FL and get your free information

packet about geothermal.

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For a FREE information kit visit:

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Tom Niesse - FL PanhandleMike Stevens - FL Peninsula

Documents

Florida HomeBuilder Winter 2015