Home Builders Association of West Florida • April 2011Home ... · April 2011 • 33 2011 Leadership Board 2011 Home Builders Association of West Florida Board of Directors Builder

April 2011 • www.westfloridabuilders.com 1

New NAHB Document

Covers How to Detect

and Remediate Problematic

Drywall

Home Builders Association of West Florida • April 20112 Home Builders Association of West Florida2

April 2011 • www.westfloridabuilders.com 3www.westfloridabuilders.com 3

2011 Leadership

Board

2011 Home Builders Association of West Florida

Board of Directors

Builder MembersPam Caddell, Gulf+Atlantic ConstructorsMiller Caldwell, III, CCG Design Builders

Jeff Godfrey, Paragon Custom HomesDarrell Gooden, Gooden Homes

Robert Harris, Adams HomesDoug Henry, Thomas Home Corporation

Doug Herrick, Coastal ICF Concrete Wall SystemsShelby Johnson, Johnson Construction Co.

of PensacolaRon Mangum, Residential Renovation Company

Scott McCartney, 1st Choice Home ImprovementsBryan Moore, BRM Residential Homes

Jennifer Rigby, Gleaton & DeMaria Commercial Development

Kevin Russell, Russell Home BuildersSteve Sessions, Sessions Contractors Group

Keith Smith, Keith Smith ConstructionTodd Stafford, Heaton Brothers Construction

Ron Tuttle, Bennat, Inc.Chris Vail, Urban Infill Corporation

Thomas Westerheim, Westerheim Properties

Associate MembersAngela Carter, Gulf Power Company

Bret Cornett, ProBuildRick Endsley, Builders Specialty SupplyJill Grove, Energy Services of PensacolaJohn Hattaway, Hattaway Home Design Tom Hammond, Hammond Engineering

Ron Harper, GCS Building SolutionsTowana Henry, Surety Land Title

Blake Jochum, All Pro SoundPat Kozma, Jenkins Brick & Tile Company, LLC

William Merrill, Merrill, Parker, ShawChristopher Moorhead, Coastal Bank & Trust

Bernie Mostoller, The Mostoller GroupRic Nickelsen, Whitney National Bank

David Redmond, PrimeLendingGary Sluder, Gene’s Floor Covering

Doug Whitfield, Doug Whitfield Residential DesignerJayer Williamson, Williamson Electrical Company

Brent Woody, Advanced Roofing and Waterproofing

John Carrell, Gulf Power Co., Remodelors Council ChairAngie Cooper, Gulf Power Co., Auxiliary Council ChairJim Harris, Coastal Bank and Trust, Membership ChairNatasha Reynolds, ESP, Green Building Council ChairNewman Rodgers, Custom Builders Council Chair

Ex-Officio Members:Keith Furrow, Pensacola Association of Realtors

Billy MooreImmediate Past President

Southern Home & Construction

Eric WittTreasurer

Kenneth E, Witt Carpentry

Luke Shows1st Vice President

Shows Construction

Judy GundFinancial Officer

Saltmarsh, Cleaveland & Gund

Steve Geci2nd Vice President

Geci & Associates Engineers

Newman RodgersSecretary

Newman Rodgers Construction

Rod Hurston3rd Vice President

Fisher-Brown Insurance

Stephen MoorheadLegal Counsel

McDonald, Fleming, Moorhead

CornerstoneThe official magazine of the

Home Builders Association of West Florida

4400 Bayou Blvd., Suite 45, Pensacola, Florida 32503

(850) 476-0318www.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.

Tina MonieImmediate 2nd Vice President

KJM Surveying

Russ ParrisPresident

Frameworks, LLC

Home Builders Association of West Florida • April 20114

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.

In ThisIssue

Cover StoryNew NAHB Document Covers How to Detect and Remediate Problematic Drywall! .................................................. 6

CORNERSTONE COLUMNS

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

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

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

New Member Profile: Glenn Lubel .......................................................... 11

American Dream Home Snapshot .......................................................... 15

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

Magazine Design & Layout by warren wight creative services

www.ww-cs.com

Cornerstone

David Peaden IIExecutive Director

[email protected]

Alecia OvermanAccounting [email protected]

Amy LordMembership/Marketing Director

[email protected]

Next Issue: May 2011Edit: April 4, 2011

Space: April 15, 2011Materials: April 22, 2011


President’sMessage

Russ Parris

Homeownership Can Bring Big Savings at

Tax Time As the April 18 federal income tax filing deadline ap-proaches, 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 dur-ing 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 abil-ity 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, in-cluding interest and depreciation deductions. Buying a home offers tax savings that can add up to tens of thousands of dol-lars 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 deduc-tion, 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 restruc-turing 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 Associa-tion of Home Builders that provides specific examples of savings for a variety of income levels and ownership situations, at www.SaveMyMortgageInterestDeduction.com.

“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!


New NAHB Document Covers How to Detect and Remediate

Problematic Drywall A new resource for build-ers 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 Prob-lematic 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 evalu-ation 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 condi-tioning evaporator coils and can cause mechanical, electrical and electronic failures. “As we all know, the downstream effects of these problems includes widespread property dam-age, 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 proce-dures to confirm that problematic drywall has been removed from the home “Most importantly,” said Rutenberg, “in a landscape now cluttered with untested

products, devices and procedures purported to resolve drywall problems, NAHB based these guidelines on scientifically proven technologies, materials, means and methods for remediating drywall 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

CoverStory

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 Prod-uct 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 electri-cal 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 op-tion 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.


HBANews

In Terms of Membership, Relationships

Make Us Stronger

Why did you join the Home Builders Association of West Florida (HBA)? Your an-swer will vary depending on your business and the problems that keep you up at night. But I would wa-ger that none of you joined to have a relation-ship with the organization, but instead to have relationships with other members. These connections (actual or poten-tial) to others are the reason we are here. Yes, the lobbying, education and information are important too, but the connections and relation-ships 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 relation-ships 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 mem-bers 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 connec-tions, 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

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.

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.”


HBA Council News

Mark Your Calendar!

Auxiliary CouncilMeet on the 2nd Tuesday of each month.Custom Builders CouncilMeet Quarterly starting in January.Green Building CouncilMeet on the last Wednesday of each month.Governmental AffairsMeet on the 1st Tuesday of each month.Membership CommitteeMeet on the 2nd Thursday of each month.Remodelor’s CouncilMeet on the 1st Thursday of each month.Board of DirectorsMeet on the 3rd Tuesday of each month.

April 7 Spring Golf Classic Sponsorships Available!!April 13 - 14 FHBA Legislative Action visit in Tallahassee April 19 BOD Meeting April 29 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.

What an informative and useful program on Home Staging that Sherry Toler and Todd Shell, of Cort Furniture, gave to the Aux-iliary 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 Fur-niture; 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.

To advertise, call Richard Nicholson

[email protected]

NEXT CORNERSTONE

ISSUE: May 2011

Happy attendees with their door prizes!


HBA Council News

March GMM

Members Ron Tuttle and Linda Bennett enjoying the festivities and their prizes

The Ferguson Team. Thank you for a great evening!!

Wearing of the most green winner LaRonda Mangum

John Hattaway with Hattaway Home Design was the lucky split the pot winner

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 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 wear-ing 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.


HBANews

April 30th to May 8th

Parade of Homes, An Exciting Time for the Housing Industry 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 com-munity 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 full-scale 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.

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 re-

turn air duct systems.

Joint Building Official Meeting


Glenn LubelColdwell 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.

MemberNews

New Member Profile

Cel l 850-572-5575 | Office 850-932-5300 | g lenn@glennlubel .com


FHBA News

‘$1,000 Club’ Off to a $75,000 Start Members and friends of the Florida Home Builders Association (FHBA) are lin-ing 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

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 accor-dance with the new American Society of Civil Engineers (ASCE) pamphlet 7. The new stan-dard 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 mitiga-tion, energy, green building, go to www.fhba.com and click on Features then New Code.

Mortgage Finance Options Outlined 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-to-moderate 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 avail-ability and a higher cost in both the short- and long-term. The Administration clearly plans

percent interest compounded annually for a five-year period. Participants receive promis-sory 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 com-plete 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 [email protected].

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 num-ber, 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 Techni-cal Services Jack Glenn. The FBC approved


Auxiliary CouncilMeet on the 1st Tuesday of each month.

Custom Builders CouncilMeet Quarterly starting in January.

Green Building CouncilMeet on the last Wednesday of each month.

Governmental AffairsMeet on the 2nd Tuesday of each month.

Membership CommitteeMeet on the 2nd Thursday of each month.

Remodelor’s CouncilMeet on the 1st Thursday of each month.

Board of DirectorsMeet on the 3rd Tuesday of each month.

Get InvolvedHBA Councils &

Committees!

NEXT CORNERSTONE

ISSUE:

May 2011For advertising information, contact Richard Nicholson

[email protected]

FHBA News

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/Accessibil-ity (CAPS II); and all four courses leading to the Member, Institute of Residential Marketing

(MIRM) designation. Dates, times, fees, and instructors will be announced shortly and avail-able at www.sebcshow.com.


NAHBNews

Builders Call on Congress to Improve Small Builders’ Access to Credit

With the housing produc-tion credit crisis taking a severe toll on the nation's small home building firms and threatening future job growth and the frag-ile economic recovery, NAHB in early March called on Congress to take tangible steps to improve access to credit for small build-ers. "With the spigot for housing pro-duction 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-

ditional equity, denials of loan extensions and demands for immediate repayment on acquisi-tion, development and construction (AD&C) loans — even when their loans are current, he said. And lenders are often citing regula-tory requirements or pressure from bank examiners to reduce AD&C loan exposure as the rationale for their actions. "While federal bank regulators main-tain 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 return-ing 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.

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 regula-tory 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

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 construc-tion jobs and $70 billion in wages. Factoring in industries that provide materials and services to home builders, the total impact of the hous-ing 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 ad-dress 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


NAHBNews

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. Robin-son's Mill is a 38-acre, 61 lot subdivision that is distinctively noticeable by its full-scale mill house and active waterwheel.

American Dream Home Snapshot

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 percent-age of each loan that they sell into the second-ary 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 reten-tion 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 — mil-lions of creditworthy borrowers would be deemed, by regula-tory 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 purchas-ing 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 mort-gage market — in-cluding thousands of community banks — and en-able only a few of the largest lenders to originate and securitize loans. "This sharp dilu-tion of mortgage market competi-tion would have a further adverse impact on mort-gage credit cost and availability," said Nielsen. "We therefore urge the agen-cies to define the QRM's param-eters 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.”

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.


Economics and Finance

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 mort-gages on proper-ties encumbered by private trans-fer fee covenants and related securities, the Federal Housing Finance Agency (FHFA) has decided instead to propose a rule that ad-dresses the same issue but with some significant changes. At its meeting last fall in New York, the NAHB Board of

Directors passed a resolution opposing the guidance, which formed the basis for com-ments 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

New FHFA Rule Takes Aim Against Private

Transfer Fee Covenantsspace, 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. Com-ments 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 cov-enant.” 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.

“NAHB is in the process of

submitting comments on the

rule and is seeking input from

association members.”


WELCOME NEW MEMBERS!

Associate MembersGlenn H. Lubel, LLCGlen Lubel29 Sugar Bowl LanePensacola Beach, FL 32561T: (850) 932-5300 F: (850) [email protected]

Mortgage America Inc.Bruce Carpenter III200 E Government Street, Suite 210Pensacola, FL 32502T: (850) 332-5221 F: (850) [email protected]

Rels TitleLindy Hurd65 Bay Bridge DriveGulf Breeze, FL 32561T: (850) 934-8300 F: (850) [email protected]

Builder & Developer MembersAaron 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 MembersAnchor 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

THANKS FOR RENEWING!

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.

TIME TO RENEWMay 2011 Renewals (Renewal invoice to be mailed 3rd week of April.)

MembershipNews

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.

DON’T LOSE YOUR MEMBERSHIP(You still have time to renew)

DECEMBER EXPIRATIONSBruce A. Johnson Constructors, Inc.

Lafarge

Lunsford Air Conditioning & Heating, Inc.

Moore Heating & Air, Inc.

Pav’r Construction, Inc.

JANUARY EXPIRATIONSAdvanced Disposal Services, Inc.

Bob Price Jr. Builder Inc.

Preferred Materials, Inc.

FEBRUARY EXPIRATIONSBagdad Home Builders, Inc.

Bradco Supply, Inc.

Built2Code Construction, LLC

Home Run Holdings Corp.

Joe Baker Construction, Inc.


Advertiser’sIndex Alpha Closets and Company 19

[email protected] www.AlphaCloset.com

Anchor Pest Control 19850.435.7696dana@anchorpestcontrol.comwww.AnchorPestControl.com

Bonded Builders Home Warranty 7800.749.0381, ext.800www.bondedbuilders.com

Energy Services of Pensacola 2850.436.5050www.espnnaturalgas.com

FHBI 12888.513.1222www.fhbi.com

Gulf Power Back Cover850.505.5338www.GulfPower.com

Raised Floor Living [email protected]. RaisedFloorLiving.com

warren wight creative services [email protected]

Advertiser’s Index

In construction, a spike is a steel object that is essen-tial 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 LevelsSpike Candidate 1-5 creditsBlue Spike 6-24Life Spike 25-49Green Spike 50-99Red Spike 100-149Royal Spike 150-249Super Spike 250-499Statesman Spike 500-999Grand Spike 1000-1499All-Time Big Spike 1500+

Spike Club Members and their credits as of 03/01/2011

Super Spike 250 CreditsHarold Logan 497.5Rod Hurston 397.5Jack McCombs 271.5

Royal Spike 150 CreditsEB Williams 210.5Mike Blanton 199.5Ron Anderson 198Edwin Henry 192.5Rick Sprague 185Carlton Bowers 160.5Bob Boccanfuso 159Betty Evans 153.5

Red Spike 100 CreditsThomas Kennedy 145Collier Merrill 129Alan Brock 127Lee Magaha 124.5Don Suarez 117Dan Gilmore 113.5Oliver Gore 111.5Greg Brock 103.5

Green Spike 50 CreditsRicky Wiggins 88 William “Billy” Moore 79.5 Doug Sprague 77.5John Harold 76Ron Tuttle 68David Holcomb 67.5Kenneth Ellzey, Sr. 60.5 Wayne Underwood 58.5Millie Carpenter 56.5Chris Pate 55.5Kevin L. Ward 55.5 Paul Stanley 54

Life Spike 25 CreditsRandy Lemon 49West Calhoun 48.5Tina Monie 47.5Bob Price, Jr. 47Laura Tkach 46.5Neil Jernigan 44Wilma Shortall 43.5Don Brantley 43 Raymond Noel 42Rick Faciane 39.5Eddie Zarahn 37Darrell Gooden 35Garrett Walton 28.5Thomas Westerheim 25

Blue Spike 6 CreditsRichard Baker 23.5James Dillaha 21.5Ed Wonders 18 John Hattaway 18Newman Rodgers IV 17Keith Swilley 16.5Doug Whitfield 15 Russ Parris 14 Todd Stafford 13 Jim Harris 12Steve Moorehead 12Michelle Bean 12Dean Williams 10.5Towana (Rudd) Henry 10 Paris Carlton 10Doug Herrick 9.5 Beth Shoemaker 7Bernie Mostoller 7 Beth Shoemaker 6

If you would like to join the Spike Club or Desire Additional Information, please contact Alecia Overman at

(850) 476-0318.

NEXT CORNERSTONE

ISSUE:

MAY 2011For advertising information, contact

Richard Nicholson 561.843.5857 / [email protected]



Documents

Home Builders Association of West Florida • April 2011Home ... · April 2011 • 33 2011 Leadership Board 2011 Home Builders Association of West Florida Board of Directors Builder