HBA Cornerstone Magazine, May 2023

Lower Rates Spark Housing Demand

2023 Home Builders Association of West Florida Board of Directors

BUILDER MEMBERS

Fred Gunther Gunther Properties

Drew Hardgraves Landshark Homes

Ronnie Johnson, J. Taylor Homes

Heath Kelly Heath Kelly Construction

Lowell Larson III Venture Real Estate

Alton Lister Lister Builders, Governmental Affairs Chair

Kyle McGee Sunchase Construction

Shon Owens Owens Custom Homes & Construction

Douglas Russell R-Squared Construction

Eric Shaffer, Shaffer Construction

Casey Smith DR Horton

Monte Williams, Signature Homes

Anton Zaynakov, Grand Builders

ASSOCIATE MEMBERS

Bill Batting REW Materials

Rick Byars Florida Power & Light

Bruce Carpenter Home Mortgage of America

Mickey Clinard Hancock Whitney Bank

Laura Gilmore, Fairway Ind. Mortgage, Affordable Housing Liaison

Chris Graye Graye’s Granite

Jill Grove Pensacola Energy

John Hattaway, Hattaway Home Design, Cost and Codes Chair

Chris Thomas Acentria Insurance

Shellie Isakson-Smith, Supreme Lending

Daniel Monie, KJM Land Surveying

Alex Niedermayer, Underwood Anderson & Associates

Ric Nickelsen SmartBank

Zach Noel, Clear Title of NW FL

Charlie Sherrill, SouthState Bank

Pam Smith, Real Estate Counselors, Pensacola Assn. of Realtors Liaison (proposed by PAR)

Janson Thomas, Swift Supply

Wilma Shortall, Trustmark Mortgage

Kevin Sluder, Gene’s Floor Covering

COUNCIL CHAIRS

Mary Jordan, Gulf Coast Insurance

Tradesman Education Chair

Suzanne Pollard-Spann, Legacy Insurance Brokers Ambassadors Chair

Ex-Officio Members of the Board of Directors

Blaine Flynn Flynn Built

Shelby Johnson, Johnson Construction

Russ Parris, Parris Construction Company

Newman Rodgers Newman Rodgers Construction

Thomas Westerheim, Westerheim Properties

Doug Whitfield Doug Whitfield Residential Designer

Curtis Wiggins Wiggins Plumbing

Taxpayers Are Taking Advantage of New Home Energy-Efficiency Related Tax Credits

In recognition of New Homes Month in April, it is important to highlight that taxpayers are taking advantage of new home energy-efficiency related tax credits. A recent Internal Revenue Service data analysis by the National Association of Home Builders (NAHB) indicates that more than 800,000 taxpayers claimed a new homerelated energy-efficiency tax incentive.

“Builders have found that buyers are seeking out new homes with durable designs and sustainable features that make their home cost-effective to operate,” said NAHB Chairman Alicia Huey, a custom home builder and developer from Birmingham, Ala. “Whether it’s efficient lighting options or appliances, many home builders are voluntarily incorporating green features into newly-built homes to meet consumer demand.”

In 2005, Congress established several energy-efficiency tax incentives related to housing that benefit new-home buyers and remodeling home owners. The policies include section 25D of the internal revenue code which is a tax credit for the installation of power production property in new and existing homes. From 2019 to 2020, claims associated with solar electric power grew by 86,000 taxpayers and $2.1 billion.

NAHB found that the most claimed qualifying activity for the 25D credit in 2020 was the installation of solar electric property. More than 600,000 taxpayers claimed the credit for almost $12.6 billion in qualifying installation costs. The second most common installation in 2020 was for solar water heating, which was claimed by 114,000 home owners and totaled almost $627 million in installation costs.

NAHB also surveyed home builders about the features they will most likely include in new homes they build this year. Five of the top 15 features focused on energy efficiency: low-E windows, efficient lighting, ENERGY STAR-rated appliances and windows and programmable thermostats. NAHB found that for repeat home buyers, ENERGY STAR windows, appliances and energy-efficient lighting were listed in the top 10 most wanted features in a new home.

Amir Fooladi

“Builders have found that buyers are seeking out new homes with durable designs and sustainable features that make their home cost-effective to operate...”

Alicia Huey chairman of the NAHB

Lower Rates Spark Housing Demand

The retreat in mortgage interest rates during the first quarter of 2023 (from the 20-year peak reached in the fall of 2022) led a record share of adults in the US – 18 percent – to declare having plans to buy a home within a year – the largest share since the inception of this series in 2018. The finding also means the share of prospective buyers jumped 5 points in a single quarter, rising from 13 percent in the final quarter of 2022.

Relatively lower interest rates in the first quarter of 2023 also pushed more 1st-time home buyers to enter the market: 71% of all prospective buyers (a series-high) reported this would be their first time buying a home, up from 61% in the final quarter of 2022.

The share of adults with plans to buy a home in the next 12 months rose in all regions of the country between the final quarter of 2022 and the first quarter of 2023: Northeast (11% to 19%), Midwest (10% to 14%), South (14% to 17%), and West (14% to 23%). Similarly, the 1st-timer share gained ground in all four regions between the fourth quarter of 2022 and the first quarter of 2023:

Northeast (64% to 66%), Midwest (58% to 67%), South (60% to 68%), and West (62% to 75%).

** Results come from the Housing Trends Report (HTR) – a research product created by the NAHB Economics team with the goal of measuring prospective home buyers’ perceptions about the availability and affordability of homes for-sale in their markets. The HTR is produced quarterly to track changes in buyers’ perceptions over time. All data are derived from national polls of representative samples of American adults conducted for NAHB by Morning Consult. Results are seasonally adjusted. A description of the poll’s methodology and sample characteristics can be found here. This is the first in a series of six posts highlighting results for the 1st quarter of 2023.

Thanks To Our Sponsors!

2023 HOME AND PRODUCTS EXPO IN THE BOOKS

New Ideas And Innovation On Display At The 2023 Home & Product Expo

The much-anticipated event for area homeowners and homebuyers, the Home Builders Association of West Florida 2023 Home & Product, the Expo, took place April 1-2, 2023 at the Pensacola Fair Expo Hall. The Expo has been a part of the HBA since 1980. This year the EXPO experienced record-breaking attendance. As visitors entered the hall this year, they experienced a whole host of experienced vendors, waiting to assist them with their needs. Allowing this to be one of the best events were our Sponsors, Alyssa’s, WEAR-3, WFGX-35, Cat Country 98.7, Defined Interiors, Blue Haven Pools, LeafFilter and Floor Coverings International.

“If you were interested in doing some remodeling or perhaps thinking about building a new home, then this was the show for you,” said Expo Show Manager Vicki Pelletier. “In addition, attendees came to learn about new products and services from knowledgeable exhibitors that enabled them to make wise decisions when it comes to buying products for their home.”

The Home & Products Expo is a one-stop source for information from air conditioners, appliances, ICF construction and flooring materials to homes insulation, energy efficient windows and doors, pool and patio furniture, solar and green products, and services, just to name a few.

“The Expo has built a solid reputation for providing the best in building products and services,” said Expo Volunteer Chair Ron Castner of Castner Construction. “For people interested in reaching building professionals who treat you with courtesy, and will take time to answer questions, then the Expo was the place to be.”

Vicki Pelletier Expo Show Manager Ron Casnter Expo Chairman

2023 FHBA Legislative Session Priorities & Issues

The Home Builders Association of West Florida was well represented in Tallahassee in March for the Florida Home Builders Association’s (FHBA) Legislative Conference. Attending the conference and representing the 2023 HBA President, Amir Fooladi, Encore Homes / Parsco, HBA Past President Alton Lister, Lister Builders, First Vice President, Dax Campbell, Campbell Construction and Company, LLC, Cost and Codes Committee Chair, John Hattaway Home Design.

We were able to walk the halls at the Capitol and visit Senator Doug Broxson, Representative Alex Andrade, and Michele Salzman.

If you do business with previous members, please give them a call and reinforce the value of membership as well as the importance of Members Doing Business with Members.

Biden’s Veto of Congressional WOTUS Resolution a Blow to Housing Affordability

Alicia Huey, chairman of the National Association of Home Builders (NAHB) and a custom home builder and developer from Birmingham, Ala., today issued the following statement after President Biden vetoed a congressional resolution that would rescind his administration’s waters of the U.S. rule:

“NAHB is deeply disappointed that President Biden has moved to overturn the will of Democratic and Republican members of the House and Senate by rejecting a bipartisan congressional resolution that rescinds the administration’s new waters of the U.S. (WOTUS) rule under the Clean Water Act. Biden’s veto of this measure is a blow to housing affordability and a common-sense regulatory agenda. The Biden WOTUS rule adds unnecessary regulatory burdens to small businesses and needlessly raises housing costs while doing little to protect America’s waterways.

“And the Supreme Court’s upcoming decision in the case of Sackett v. EPA that is squarely focused on a major part of the rule means that the regulation could essentially be overturned in the near future. To put an end to this regulatory morass, the administration needs to delay implementing this onerous regulation until a judgement is rendered and go back to the drawing board to draft a new, practical and durable WOTUS rule.”

Keep Workers and Others on the Road Safe with NAHB Resources

April is Distracted Driving Awareness Month, an annual campaign by the National Safety Council to highlight the dangers and costs of distracted driving.

At least eight people a day are killed in distracted driving crashes. Distracted driving isn’t just risky for drivers; it can be deadly for nearby pedestrians, bicyclists and workers.

Residential construction relies on drivers every day to complete jobspecific tasks, such as procuring materials or tools, and for other things, like getting lunch for the job site and workers coming and going from the site.

NAHB has a video toolbox talk, ( https://www.nahb.org/advocacy/ industry-issues/safety-and-health/ safety-365/video-toolbox-talks/ video-pages/safe-driving ) with

TOP 10 REASONS TO DO BUSINESS WITH AN ACTIVE ASSOCIATE MEMBER

1. They support the industry at the local, state and national levels.

2. They volunteer time, talent and treasure to help the association accomplish its goals.

3. They recruit their colleagues and business contacts to become members.

4. They serve on committees and councils gaining valuable networking opportunity while helping to advance the association’s mission.

resources for setting policies around driving and ensuring that everyone is practicing safe driving skills. Of course you require seat belt use while driving a company vehicle, but do you have rules around cell phone use? Watch the video below for best practices.

But it takes more than just policies and reminders of how to drive safely. When you know a worker is in a vehicle, don’t text or call them. If you’re in a vehicle and receive a call or text, don’t answer it while driving. Pull over or wait until you’ve reached your destination to address the communication.

Everyone knows distracted driving is a problem, but we all have to pitch in to make sure we’re not the cause of the distraction.

5. By doing so, you increase the value proposition for all membership in our HBA.

6. They are strong supporters of local and state PACs and BUILD-PAC.

7. They are a major source of non-dues revenue through sponsorships, advertising, etc.

8. As industry partners, they are a valuable resource for business and management tips.

9. They are heavily invested in your business success: You win, they win!

10. Why wouldn’t you do business with a member?

“NAHB has a video toolbox talk with resources for setting policies around driving and ensuring that everyone is practicing safe driving skills.”

ESA Resolution Defining Habitat Introduced in House and Senate

In a move supported by NAHB, the House and Senate have introduced an identical Congressional Review Act (CRA) resolution that would retain the regulatory definition of habitat within the Endangered Species act (ESA). The ESA protects listed (i.e., endangered and threatened) species and their designated critical habitat from

either manmade or naturally occurring threats. Surprisingly, since the ESA was established 50 years ago, the term “habitat” has never been defined.

Meanwhile the designation of critical habitat under the ESA by the U.S. Fish and Wildlife Service (FWS), or the National Marine Fisheries Service (NMFS), directly impacts NAHB members when their property is located within areas designated as critical habitat, and their activities require obtaining either a federal permit (e.g., federal wetland permit) or to receive any federal funding.

In December 2020, citing the U.S. Supreme Court’s ruling under Weyerhaeuser Co. v. U.S. FWS, the Trump administration finalized a rule that defined the term “habitat” as “the abiotic and biotic setting that currently or periodically contains the resources and conditions necessary to support one or more life processes of a species.”

The Trump administration’s rule was in response to a FWS critical habitat designation in the state of Louisiana declaring more than 1,500 acres of private land as critical habitat for a species of frog that had not been found within the state for 50 years.

In overturning FWS’s critical habitat designation, the U.S. Supreme Court noted the lack of any regulatory definition for the term habitat under the ESA made it difficult for the court to assess the merits of FWS’s unoccupied critical habitat designation. By defining habitat, the 2020 rule provided some clarity and transparency to landowners as to when their property could be regulated under the ESA.

On June 24, 2022, the Biden administration rescinded the 2020 rule, eliminating the habitat definition, leaving regulated parties in the dark as to how federal regulators might conduct future critical habitat designations.

The action by Republicans in the House and Senate to use the CRA to introduce a resolution of disapproval over the Biden administration’s rescission of the habitat rule is intended to restore regulatory clarity for affected landowners.

“There is an important distinction between ‘habitat’ and ‘critical habitat’ for an endangered species,” said Sen. Cynthia Lummis (R-Wyo.), the lead Senate sponsor of the resolution. “By scrapping the definition of habitat within the ESA, the Biden administration is causing chaos and confusion among private property owners throughout Wyoming and the west. Two-thirds of all endangered species are located on private lands, so private property owners need to be partners in species recovery, not the enemy.”

A critical habitat designation has major impacts on landowners and developers, as it reduces the value of any private property within a designation because prospective landowners recognize the burdens that accompany a designation. It also greatly impacts any land with a federal nexus through permits or funding, as a critical habitat triggers significant scrutiny, resulting in burdensome limitations on land use and costly mitigation requirements that can delay housing projects and increase construction costs.

How to Start Planning for a Summer Intern

Schools will be out for the summer soon, which means now is the perfect time to start laying the groundwork for an internship program. Working with interns helps companies meet their own workforce needs and helps the industry build the pipeline of new workers needed to meet the demand for new housing.

There are many considerations when planning for a trainee on your jobsite. To help you establish a program, NAHB has a step-by-step guide to setting up an internship program.

The Student Internship Resources for NAHB Members guide focuses on how builders can engage with three different talent resources: secondary (high school) students in career and technical (CTE) education programs, community college students, and university students. The comprehensive guide covers topics such as:

• How to evaluate your workplace needs

• How to research the legalities

• Tips for developing a training plan

• How to find, hire and manage interns

• How to retain good prospects as employees

In addition, to help students and young professionals develop their careers in the trades, NAHB has a robust collection of one page “how-to” guides, such as interviewing and building a network available for download and print. NAHB invites all members to share their workforce development opportunities and challenges during the next in-person Workforce Development Champions Forum on Friday, June 9, at 10:30 a.m. ET, during the Spring Leadership Meeting in Washington, D.C.

2023 Membership Drive: Never a Better Time to Join

NAHB recently kicked off its annual membership drive, which not only aims to recruit new members, but also highlight the value of membership in the Federation to current members as well.

From April 1 to June 30, members of local HBAs across the nation participate in the drive by reaching out to coworkers, colleagues and friends in the industry to promote the numerous benefits of membership. Whether they want to save money on business expenses, expand their knowledge with industry-leading education or network with more people in the industry, members can receive a significant return on their investment.

• Member-Exclusive Savings — The NAHB Member Savings Program offers exclusive deals with popular vendors to help members save on personal and business expenses. T-Mobile, Farmers Insurance, Goodyear Tires and Voyager Fuel & Fleet Management Mastercard are the latest companies to join. Plus, the program continues to feature significant discounts through Lowe’s, Dell Technologies, UPS and many other leading companies.

• Industry-Specific Education — Membership unlocks discounts on numerous instructor-led courses and webinars to help members stay in the know and ahead of the competition. Courses cover a range of topics, including business management, building technology, housing economics and strategic marketing.

• Numerous Networking Opportunities — With more than 140,000 members worldwide and countless events throughout the year, there are always opportunities to expand your network. Catching up with local builders at HBA meetings, attending the annual International Builders’ Show (IBS) and participating in councils such as NAHB Remodelers and Professional Women in Building are some of the best ways to build business.

Personal Income Rises 0.3% in March

The most recent data release from the Bureau of Economic Analysis (BEA) showed that personal income increased 0.3% in March. The pace of personal income growth slowed after reaching a 0.8% monthly gain in October. Gains in personal income are largely driven by increases in compensation, personal income receipts on assets, and rental income.

Real disposable income, income remaining after adjusted for taxes and inflation, inched up 0.3% in March. On a year-over-year basis, real (inflation adjusted) disposable income rose 4%, after experiencing negative year-over-year growth from March 2021. While remaining low historically, the December personal savings rate inched up to 5.1% the highest level since January 2022. As Inflation has almost wiped-out compensation gains, people are dipping into savings to support spending.

If you do business with previous members, please give them a call and reinforce the value of membership as well as the importance of

Members Doing Business with Members

1. They support the industry at the local, state and national levels.

2. They volunteer time, talent and treasure to help the association accomplish its goals.

3. They recruit their colleagues and business contacts to become members.

4. They serve on committees and councils gaining valuable networking opportunity while helping to advance the association’s mission.

5. By doing so, you increase the value proposition for all membership in our HBA.

6. They are strong supporters of local and state PACs and BUILD-PAC.

7. They are a major source of non-dues revenue through sponsorships, advertising, etc.

8. As industry partners, they are a valuable resource for business and management tips.

9. They are heavily invested in your business success: You win, they win!

10. Why wouldn’t you do business with a member?

Parade of Homes

May

In construction, a spike is a steel object that is essential to making a building strong. As in construction, the HBA of West Florida sees a Spike as someone that works to keep our association strong. Spikes work on the recruitment and retention of members in addition to keeping members active with the association. Anyone is eligible for Spike status. On Spike credit is awarded for each new member recruited and an additional credit is awarded for that new member’s renewal on or before their anniversary date. If you help to retain a member, you are eligible to receive a half point for each member.

Spike Club Levels

Spike Candidate 1-5 credits

Blue Spike 6-24

Life Spike 25-49

Green Spike 50-99

Red Spike 100-149

Royal Spike 150-249

Super Spike 250-499

Statesman Spike 500-999

Grand Spike 1000-1499

All-Time Big Spike 1500+

Spike Club Members and their credits as of 03/31/2023.

Statesman Spike 500 Credits

Harold Logan 525

Advertiser’s Index

Red Spike

Gold Sponsor for the 2020 Dream Home