Builders Magazine - July/August 2010

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ALSO IN THIS ISSUE:

Western Regional Water Commission Approves“2030 Sustainable Water Forecast” Hanging Tough in a Tough Market Local Homebuilder Debuts New Home Community



Builders M A G A Z I N E The

“The Voice of The Building Industry” VOLUME 19

NUMBER 87

PUBLISHER

PR Services, Inc. dba The Builders Magazine EDITOR

Teri Scharosch PUBLISHER’S REPRESENTATIVE

Patricia Ferguson Rachelle Goodness

GENERAL MANAGER

Patricia Ferguson ART DIRECTOR

Felix Sanchez

ELECTRONIC PAGINATION

Felix Sanchez Rachelle Goodness COPY EDITOR

Teri Scharosch STAFF WRITERS

Joe Lopez, BANN President Michael F. Dillon, Jr., BANN Teri Scharosch, BANN Bobbie Merrigan, BAC Jess Traver P.E., Director of Government Affairs CONTRIBUTING WRITERS

Greg Peek, Nevada Build-PAC Trustee Pete Mokler Dwight Millard ADVERTISING, PUBLISHING & EDITORIAL OFFICE

The Builders Magazine 9080 Double Diamond Pkwy, Suite A, Reno, NV 89521 Phone: (775) 355-9288 Fax: (775) 355-9488 Email: patty@thenewhomeguide.com BANN 2010 BOARD OF DIRECTORS

Joe Lopez, President Curtis Rowe, Vice President Pat Riley, Associate Vice President Bill Thomas, Secretary Treasurer John Brown Jack Byrom Jeff Codega Mike Douglas Garret Gordon Dave Hendriks John Krmpotic

Travis Means Robert Nielsen Pam Parenti Greg Peek Ray Pezonella Cloyd Phillips Curtis Rowe Steve Ryckebosch John Schroeder Joe Serpa Randy Walter

The Builders Magazine is published bi-monthly by PR Services, Inc., dba The Builders Magazine located at 9080 Double Diamond Pkwy. Suite A, Reno, Nevada 89521, bulk postage paid. The Builders Magazine is published in the interest of all segments of the building industry and is distributed to Builders Association members in Nevada, the State Contractors Board mail list and others associated with the building industry on a complimentary basis. Although every precaution is taken to ensure accuracy of published material, neither PR Services, Inc., dba The Builders Magazine nor the Builders Association of Northern Nevada accept responsibility for any statements or claims made by advertisers or authors. Suggestions, ideas, letters and columns are welcome, however, we cannot be held responsible for unsolicited contributions. Please send to: Teri Scharosch, The Builders Magazine, 9080 Double Diamond Pkwy., Suite A, Reno, Nevada 89521. All rights reserved. Reproduction in whole or part without written permission is prohibited. ©2010 PR Services, Inc., dba The Builders Magazine.

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Builders M A G A Z I N E contents The

president’smessage by Joe Lopez, President, Builders Association of Northern Nevada

JULY-AUGUST 2010

Features 2

President’s Message

by Joe Lopez, President, Builders Association of Northern Nevada

3

Cover: Chapter 40 Reform: An Industry Priority

5

“Fore!” Says It Best

6

As I See It: MGM Mirage Joins Coalition

We all know it’s challenging enough out there these days without

by Michael F. Dillon, Jr., Executive Director Builders Association of Northern Nevada

GIVING BACk: Playhouses 2010

7

by Bobbie Merrigan, Executive Director, Builders Association Charity

Builders Association of Northern Nevada Joins Healthy Tracks!

8

10 This Giving Won’t Hurt

by Greg Peek, Nevada Build-PAC Trustee

11

Western Regional Water Commission Approves “2030 Sustainable Water Forecast” by Jess Traver, Director of Government Affairsf

11 12

Why Am I A BANN Member? by Raymond Pezonella, President Pezonella and Associates

Hanging Tough in a Tough Market

13

BANN Aids Industry With Lead Paint Certification Training

14

Builders Magazine Goes Digital!

15

BANN Welcomes New Members to the Most Effective Construction Trade Association in Nevada!

16

Local Homebuilder Debuts New Home Community

17

Across the Decades with a Solar Entrepreneur by Pete Mokler

18

19

Local Firms provide RESNET Energy Audits, BPI Building Analysis, and Retrofit Solutions Back To Basics by Dwight Millard

Departments 20

2

Classified/Services Guide

THE BUILDERS MAGAZINE / JULY-AUGUST 2010

having to worry years later about homes we constructed in the past. Unfortunately, our industry knows first-hand one of the reasons why Nevada ranks among the highest of states for litigation—the increasing number of construction defect lawsuits under the provisions of Chapter 40 of the N.R.S. The Builders Association of Northern Nevada and its members support the reform goals of the Coalition for Fairness in Construction, comprised of a number of groups affiliated with the building business, including SNHBA and BANN, Associated General Contractors, the Nevada Subcontractors Association, and Associated Builders and Contractors. By working diligently in advance of the upcoming Legislative Session, the Coalition plans to effect meaningful reform to Chapter 40—the abuses simply cannot continue. You’ll find more on that effort in this issue…become aware, and prepare to get involved— your future will depend on it! To all of you who supported our most recent fundraiser—our Mini Golf Event at Wild Island, a huge “thank you!” I think that all who participated had a great time, and it was pure pleasure to see family groups enjoying a beautiful northern Nevada evening. Thanks to all of our golfers and sponsors…you make it happen! I hope we’ll see you on the links at D’Andrea Golf Club when we host “The Builders Give BACk” golf tournament, honoring our own Ray Pezonella, on July 17th. This will be the only 18-hole golfing event in 2010— make it memorable! Last but certainly not least, you’ll find information in this issue on another way that you can give back…by participating in the BUILD-PAC fundraiser at the Freight House District, followed by the Reno Aces vs. Las Vegas 51s on July 29th! BUILD-PAC funds are used by NAHB to support federal candidates who demonstrate an understanding of the needs of our industry. We all know firsthand how much our recovery will depend on federal legislation, including housing tax credits and lending reform. Please dig down deep… consider becoming a member of the “Dollar A Day” club—just $365 can make the difference in the success of your business. Join us.

Joe Lopez

Tanamera Development



Chapter 40 Reform Continued

firms inspect their homes for construction issues. Just recently, we learned that attorneys from a new construction defect law firm in our area have gone door-todoor, encouraging participation in one of their suits, using fear tactics and inferring that problems they may have—or may yet discover—can worsen. As far as the benefit to the homeowners, our experience is that they are intimidated into pursuing litigation by the attorneys—that only benefits the attorneys. In a condominium case we are currently involved with, the lawyers obtained approval to inspect and litigate by requiring the homeowners vote to (1) litigate and have the builders pay for any repairs; or (2) vote not to litigate and be assessed for any required repairs. How do you think they voted? After costs of the suit and the lawyer’s contingency fee, our experience shows there is typically very little remaining for repairs. Additionally, it is our understanding that once a residence is involved in construction defect litigation, every owner of that residence needs to disclose to future buyers this litigation impairing the residence’s value. Most homeowners are unaware of this requirement. The plaintiffs “experts” hired by these firms are paid extremely well to produce reports claiming problems with a laundry list of items. In one suit we were involved with covering several structures, the settlement demand was $750,000. The defense expert our insurance carrier hired concluded that there was virtually nothing wrong, but fixing things that were marginal would cost about $16,000. Fearing to litigate on an uneven playing field, defense counsel went about rounding up money from subcontractors and wrote a big settlement check. Without a reasonable definition of what constitutes a “defect”, defending these cases is an uphill battle.

Darren Wilson: Chapter 40, since its inception, has done little to get repairs made. Most of the “defects” have little to do with real defects….they’re just plain maintenance issues. Remember that the attorneys are targeting homes that are 5-10 years old. The attorneys promise the homeowners a lot of money, while the lion’s share of the settlement goes to the guaranteed fees and costs. Unfortunately, our insurance costs are being detrimentally affected. They’re settling with these attorneys because they feel it’s cheaper to settle than go to court. It’s what these guys are counting on. There is rarely enough money left over to make the repair.

Q. What have you found to be your costs

to defend against a Chapter 40 claim?

Rowe: The costs are outrageous. In addition to needing to pay ongoing attorney’s fees and pulling our limited staff off of needed work to produce the voluminous amount of production paperwork required in these cases, we currently have one full time staff person within our office just to monitor and coordinate all of our cases. Cavallero: In addition to the settlement amounts previously mentioned, we have to inspect—or pay others to inspect—each home we’re involved with. We also have to use administrative staff time to copy files, send documents, attend mediations, speak and correspond with attorneys and insurance companies, and answer interrogatories. It’s time consuming and labor intensive. It’s challenging to quantify each case.

As a result of an ongoing epidemic of costly and excessive construction defect lawsuits, the Coalition for Fairness in Construction was formed to discuss potential solutions for both the building industry and homeowners. The group’s executive committee is comprised of members representing the major contracting trade associations in Nevada. Additionally, representatives from the insurance industry are involved in an effort to resolve the problems associated with the availability of affordable contractor’s liability insurance. The Coalition will be seeking help from state lawmakers during the upcoming Legislative Session as it seeks to restore fair and equitable problem-resolution mechanisms for homeowners and builders to prevent costly and lengthy litigation.

ATTENTION!

For more information on the industry’s efforts to reform construction defect statutes, plan to attend the industry-wide Chapter 40 Forum in Reno!

Chapter 40 Forum - Tuesday, July 27th John Ascuaga’s Nugget - 11:00 a.m. – 1:00 p.m. For details and reservations, call BANN at 775-329-4611 4

THE BUILDERS MAGAZINE / JULY-AUGUST 2010

Wilson: The amount spent by the homebuilding industry in Nevada is immense. I have 2-3 people on staff at any given time just to handle the crush of claims we’re faced with as a large HVAC contractor in Las Vegas. We offer to make a repair if possible, only to be turned away by the plaintiff’s attorney. They don’t want a repair…they want to drive the money machine. Polish: We’ve spent thousands of dollars in labor costs, as well as my time and my attorney’s time. The result? No repairs made to date.

Q.

Has Chapter 40 affected your ability to obtain liability insurance, or the cost of that insurance? Wilson: Premiums have risen out of control. What’s happened as a result of these out-of-control suits is that good companies have left the state and are no longer willing to write in Nevada. Those that are left have priced so high that it has caused many businesses to just close their doors. Also, the coverage that is offered tends to be of lesser quality. The homebuilding industry has been forced to go to Wrap Insurance programs (OCIP) to attain coverage for all subs they employ to build a home. It’s expensive and adds tremendously to the cost of a home. Rowe: Premiums are definitely on the rise as a result of the current legislation and insurance is tougher to obtain. With respect to high density for sale attached projects, without reform in our state, I expect insurance for these types of developments, if it even remains available, will become extremely scarce and even more expensive over time, greatly diminishing our states ability to provide this type of housing. It’s going to be important for insurance companies to get on board with the reform program and help stop the bleeding. We need to allow the contractors the right to repair “real defects” (not those fabricated or exaggerated by the law firms hired”experts”) BEFORE the attorneys get involved and generate fees that are sky high. Both the plaintiffs attorneys and defense attorneys are making huge fees under the current system and have an incentive to keep this lucrative niche as it stands today. Polish: Our premiums have stabilized somewhat after the big, 300% spike that occurred in 2002/2003. The problem we’re having now is that there are fewer companies available to quote us and our deductibles per occurrence are through the roof—about 3 – 5 times higher than last year. It’s a big commitment to take on,



As I See It by Michael F. Dillon, Jr., Executive Director Builders Association of Northern Nevada

MGM Mirage Joins Coalition “Our company is the largest employer in the State of Nevada, the largest tax payer in the State of Nevada, and last year we were the largest builder of single family residences in the State of Nevada…and this law needs to change.” That was the strong message sent to Nevada Legislators on January 7, 2010 at the Aria Resort at City Center in Las Vegas by Jim Murren, Chairman of the Board and CEO of the MGM Mirage. Changing construction defect legislation will be the number one priority at the 2011 Legislative session beginning next year for the Builders Association of Northern Nevada (BANN), and is the primary and only focus of the Coalition for Fairness in Construction. The Coalition consists of the home builders organizations from the northern and the southern part of our state, the Associated General Contractors (AGC), Associated Builders and Contractors (ABC), and the Nevada Subcontractors Association from Southern Nevada. This addition of MGM Mirage as a member of the Coalition is a huge step for our efforts next year. MGM Mirage is a “THE” major player in Nevada politics, and having them on board is a major early win for the industry to effect change during the session. While BANN has been part of what we thought was a solution over the years, the current law is not working for our industry and we need to make immediate change. In the last session of the Nevada Legislature, two bills were passed out of the Nevada Senate by an almost unanimous vote, yet the bill did not even receive a hearing in the Nevada Assembly and died. BANN has been interviewing all candidates for elected office, and special attention has been given to this issue when talking to and supporting statewide candidates. In addition, the leadership of BANN has been involved with several meetings in southern Nevada to reach out to legislators in Clark County, showing a unified front at both ends of the state. The momentum for this issue is increasing, and it is felt that there is a real opportunity for change during the upcoming session. We have high hopes that reform will be accomplished. In northern Nevada, we are organizing a “Chapter 40 Forum” in which I encourage you to participate. We are confirming dates for our panel. Next year, we need our members to step up and be willing to lobby and testify at the next legislative session to share your experiences. Statewide, we are sending the same message to our Legislators and Governor Candidates: 1) Bring common sense to the definition of construction defect; 2) Provide that a claimant may recover attorneys fees and costs in the same fashion as provided in every other type of litigation in Nevada; and 3) Allow a reasonable and responsible time frame for bringing construction defect complaints. To get involved with this issue please call Mike Dillon at BANN at 775-329-4611. n 6

THE BUILDERS MAGAZINE / JULY-AUGUST 2010


GIVING BACk

by Bobbie Merrigan, Executive Director, Builders Association Charity

Playhouses 2010 The Builders Association Charity, in partnership with “The Summit”, hosted the grand opening of “Playhouses 2010” at The Summit on Saturday, June 19, 2010.

On to stucco…special thanks to Jay Levine of Nevada Drywall, Stucco & Stone— they’ll turn your home into a castle, too!

The project never would have been completed without the assistance our fabulous “Project: Playhouse” Committee!

he ribbon cutting ceremony was held at T10:00am. Two wonderful playhouses are on

display for a period of thirty days, and will be open for tours on weekends only between the hours of 10am and 6pm. Cost to tour is $1.00 per person or two cans of food benefitting the Food Bank of Northern Nevada. The playhouses will be located in the parking lot of “The Summit” between Starbucks and Hollister. They will be auctioned off, with the proceeds benefitting the Builders Association Charity as we continue to assist our community and local families struggling with adversity. These goals are accomplished through the funding of programs and services of BAC and other charitable organizations in our community. Bidding on the playhouses may be done on line at www.bacharity.org beginning June 19, 2010. The winning bidders will be determined at 4:00pm on Sunday July 18, 2010. “The resurrection of the “Playhouse” event is a victory for our charity and our community,” said Joe Lopez, the charity’s Immediate Past President. “In years past, it was our charity’s most successful fundraiser. In this economic climate, it is more important than ever that we bring it back. The money raised will insure our ability to continue to assist Northern Nevada children and families.” This year, ACE Charter High School* students built one of the two playhouses that will be featured at The Summit. The second playhouse, a collaboration of many Northern Nevada subcontractors and suppliers, has been a “labor of love” in support of our charity. Each of these generous contractors donated labor and/or materials to construct it: AB Custom Woodworks, Accent Windows, Action Electric, Artistic Fence, ASA Construction,

Caravan Camper Manufacturing, Construction Sealants & Supply, Creative Touch Interiors, Gale Insulation, Giraffe, Inc., H & E Framing, Holmes Construction, Intraform, Inc., J.R. Pierce Plumbing, MSM, Nevada Drywall Stucco and Stone, Paintin’ Place, Plygem Pacific Windows, Reno Lawn & Landscape, Reno Lumber, Reno Paint Mart, Signature Landscapes, Stodmeister Iron, Washoe Building Supply and Western Title Company. Special thanks to the generous sponsors of the “Playhouses 2010” event: Builders Magazine, Eagle Home Mortgage, ERGS, Inc., Lifestyle Homes, Tanamera Construction, TRC Homes and Western Title Company. For more information on Playhouses 2010 or the Builders Association Charity (BAC), contact Executive Director Bobbie Merrigan at 775-329-2424. *The Academy for Career Education (ACE High School) is a free, comprehensive charter high school for 9th - 12th grade students that focuses on integrated core academics (reading, writing, math and science) through the application of skills utilized in the construction and engineering fields. The goal of ACE High School is for its graduates to pursue post-secondary training in any construction or engineering field ranging from project management and architecture to the trades including plumbing, electrician, carpentry, and diesel mechanics, as well as immediate employment. ACE High School is sponsored by the Washoe County School District and meets all the requirements established by the State of Nevada. It is accredited by the Northwest Association of Accredited Schools. For more information on ACE, contact the school at 775-324-3900. n

Zach & Scott McGrath of Washoe Building Supply are on site as the exterior of the Playhouse is constructed.

Dennis Salsby of H & E Construction helped move the behemoth to its “show site”

On display! Playhouses on Parade 2010 includes the fantasy castle on the right, a true team effort. The colorful playhouse on the left was constructed by students at ACE Charter High School, our construction charter school, who donated it for the Playhouse auction. You kids ROCK! Visit: www.BuildersMagazine.com

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Builders Association of Northern Nevada Joins Healthy Tracks! Starting October 1, 2010 BANN members who are employee subscribers in a Hometown Health Insurance Plan will have access to the Healthy Tracks program, brought to you by the Builders Association of Northern Nevada and Hometown Health.

This wellness program is designed to help you better understand your health, and provide you with tools and opportunities to enhance your wellbeing and improve your quality of life. Your participation in any activity is voluntary. This annual program runs for 12 consecutive months starting October 1, 2010. Throughout the year, you will have the opportunity to

WELLNESS ACTIVITIES & CREDIT DISTRIBUTION WELLNESS ACTIVITIES & CREDIT DISTRIBUTION 12 MONTH PROGRAM CYCLE 12 MONTH PROGRAM CYCLE

Credit Value

Annual Max

Health Risk Assessment (required for program incentive)

6

6

Biometrics Screening Colorectal Screening Pap Smear Mammogram Prostate Exam Flu Shot / Preventive Immunization Establish/Maintain Primary Care Physician

5 3 3 3 3 3 3

5 3 3 3 3 3 3

Fitness Regimen 3x/wk x 12+ weeks (logged online) Health Management Services Health Coaching (telephonic and digital) Healthy Living Programs (online) On-Site Wellness Seminar Monthly Seminars (online)

2 4 4 3 1 1

2 8 4 9 6 6

Chill-Out Challenge (May 1 – 31) Strive for Five Challenge (August 1 – 31) Maintain Donʼt Gain Challenge (Nov. 1 – Dec. 15) Commit to Get Fit Challenge (Feb. 1 – Mar. 15)

4 4 4 4

4 4 4 4

Local Employer Activity Community Event Online Satisfaction Survey

2 2 2

4 4 2

Program Activity HEALTH AWARENESS

PREVENTIVE CARE ACTIVITIES

HEALTH & WELLNESS PROGRAMS

WELLNESS CHALLENGES

LOCAL WELLNESS ACTIVITIES

Total Opportunity

90

START TODAY AND IMPROVE YOUR QUALITY OF LIFE. TOGETHER, WE CAN MAKE A DIFFERENCE. 8

THE BUILDERS MAGAZINE / JULY-AUGUST 2010

START TODAY, AND IMPROVE YOUR QUALITY OF LIFE. TOGETHER, WE CAN MAKE A DIFFERENCE.

participate in a variety of fun, healthpromoting activities. By recording your participation online through the Healthy Tracks web site, you are able to track your progress and measure your improvement. Here’s how it works: After October 1, 2010 login to the state of the art Healthy Tracks Website at www.myhealthytracks.com. The first time you will login with your Hometown Health Member ID# located on your insurance card and select Employee Member from the drop down list. Validate your information and create a personal account by setting a login and password of your choice. NOTE: You will login with your selfselected login and password for future program access. Listed on the next page are the activities that make up this program. You can choose which activities you want to do. By completing and recording the activity online, you will earn wellness credits. Most of the activities are available throughout the year, and challenge activities are offered during specific dates. Your Goal. Research shows that people who set goals have a much better chance of success. To help you improve your health and well being, we challenge you to earn at least 24 Wellness Credits during the 12-month program cycle. Builders Association of Northern Nevada will be providing prize drawings for quarterly challenge completers, semi-annual screening participants, and for those completing a minimum of 24 points by September 2011! If you have questions about how Healthy Tracks is being applied, or more information about how you can participate, contact the Builders Association of Northern Nevada at 775-329-4611 or your Health and Wellness Coordinator at 775-9826955. Privacy Note: Your personal information is confidential and protected. No one from your company will see individual information.


Some things just work better when they’re here. Why go looking somewhere else for something that belongs in your own hometown? Your health insurance provider should be here for you— here to answer your questions, here to give you advice on physicians and facilities in your area, here to make life easier for you. Hometown Health is proud to serve the needs of Nevadans. Competitive rates, the largest choice of physicians, a 24-hour, 7-day-a-week nurse’s hotline, flexible plan options and exceptional customer service are just some of the great things you’ll find—right here in your own hometown.

Call your broker, contact us at 775.982.3100 or visit hometownhealth.com.



Visit: www.BuildersMagazine.com

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D THE BUILDERS MAGAZINE / JULY - AUGUST 2010


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Another Job Comes to Life! Northern Nevada Housing Resource Board, a Reno-based non-profit, is pleased to announce the groundbreaking for Autumn Village Apartments, a new 43-unit affordable housing rental development being constructed on Gentry Way & Wrondel. Autumn Village Apartments is a Section 1602 Tax Credit Exchange funded affordable housing project. The $9 million project will create an estimated 150 construction jobs over the next year. Financing for Autumn Village Apartments ($6.3 million) comes from the Nevada Housing Division: the American Recovery and Reinvestment Act of 2009 (ARRA) Section 1602 Tax Credit Exchange Program. Additional project funding comes from the Washoe County HOME Consortium, administered by the City of Reno, Schwab Bank, and Idaho-Nevada Community Development Financial Institution. The project was awarded Federal Low Income Housing Tax Credits by the Nevada Housing Division in the summer of 2008. However, the investor market for tax credits has plummeted in the last two years, another victim of the financial crisis. Under the ARRA Section 1602 Program, the Nevada Housing Division was able to “sell” these tax credits to the Treasury Department in exchange for cash to invest in high quality and “shovel-ready” affordable housing projects. Without the Federal Stimulus funds administered by the Nevada Housing Division, it is unlikely that the Apartments would have moved forward this year. Autumn Village Apartments is planned as a three-story 43 unit, elevator residence with 21 one-bedroom and 22 two-bedroom, accessible/adaptable apartments with

J THE BUILDERS MAGAZINE / JULY - AUGUST 2010

balconies as well as community and service space. There are 9 Special Needs units in the project for housing homeless families in the community. Autumn Village is designed in an attractive Country style, covered walkways and decorative sighting and stucco exterior. Each apartment is equipped with FREE broadband internet access. The Community Building will include a lounge area, library, computer lab, on-site laundry facility, and offices for management and supportive service staff, security fenced

More than 100 Jobs were created by the Autumn Village Apartments. and landscaped grounds, courtyards, and porches. The property also has a children’s playground and BBQ area. Autumn Village Apartments is an affordable housing development. All of the units will be affordable to residents at or below 40% of area median income (AMI). The Apartments will be a certified EnergyStar-rated development. The building will include high efficiency heating and cooling equipment, and EnergyStar appliances. Autumn Village will have a solar panel array to assist the property in running “Green”. The development will also promote water conservation with xeriscape landscaping. Northern Nevada Community Housing Resource Board (NNCHRB) is a nonprofit 501 c (3), established in 1989. It is NNCHRB’s mission to continue to provide

excellent means of high-quality living through developing affordable housing opportunities for low-income individuals and families. To date, NNCHRB has sponsored the creation of 190 affordable rental units in 5 properties across Washoe County. One of NNCHRB’s properties (Joseph’s) house 31

Autumn Village Apartments homeless individuals and another property (Cottonwood Village – located 2.5 blocks from the Autumn Village site) house 44 low-income families, 9 of which are Supportive Housing Program (SHP) homeless families with permanent disabilities coupled with social service and case management support.

Autumn Village Apartments Development Team Developer/Property Manager: Northern NV Community Housing Resource Board Development Consultant: Ann Harrington - Affordable Housing Consultant General Contractor Q&D Construction, Reno, NV Architect Bartlett Architecture, Inc., Reno, NV Civil Engineer Hunter Creek Engineering Construction Testing Pezonella Associates, Inc. Structural Engineer K2 Engineering and Structural Design (For more information on Autumn Village Apartments, contact Ken Bartlett at Bartlett Architecture. He can be reached at 775.786.6688 or ken@bartlettarch.com)


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they were a year ago, they are still much lower than in 2006. The lumber and panel markets experience ups and downs and are subject to extreme changes in either direction. Pricing is dictated strictly by supply and demand, with all facets of the industry—from the builder demanding lower costs to the log suppliers and timber companies wanting higher returns—affecting the day to day profitability of the business. Buck Yaeger and Reno Lumber’s employees know that until the housing crisis subsides—meaning foreclosures and some oversupply are absorbed and the financial and unemployment numbers return to something closer to sustainability—then construction and related businesses will struggle. Although Reno Lumber has been able to maintain at this reduced pace, some of their customers have suffered deeply, and a few have had to close their companies. The remodeling business, hailed by some as the industry answer during these difficult times, has not really taken up the slack, as such a high percentage of homeowners are “upside down” and have negative equity. For many, it doesn’t make sense to remodel, as they are not really adding value. “I think Reno Lumber will work through this situation for the next couple of years, doing the best we can for our customers and our employees,” stated Yaeger. “Hopefully things will get a little better. In the meantime, we enjoy the business we have. We are happy and thankful to live in Northern Nevada, a great place with such promise and opportunity that ensures a bright future for the housing and construction industry. We are committed to being part of that future.” n

BANN Aids Industry With Lead Paint Certification Training Although the EPA announced

on June 18, 2010 that it will be delaying the enforcement of the Renovation, Repair and Painting Rule (commonly known as the RRP Rule or “lead paint training”) until October 1, 2010, the Builders Association of Northern Nevada, in partnership with Truckee Meadows Community College, will continue to work to train the building community on the provisions of the Rule. In the June 18th memo announcing the new enforcement date, the EPA Continued on next page

Visit: www.BuildersMagazine.com

13


Lead Paint Certification

Continued stated that “…Until October 1, 2010, EPA will not take enforcement action for violations of the RRP Rule’s firm certification requirement” and “…For violations of the RRP Rule’s renovation worker certification requirement, EPA will not enforce against individual renovation workers if the person has applied to enroll in, or has enrolled in, by not later than September 30, 2010, a certified renovator class to train contractors in practices necessary for compliance with final rules. Renovators must complete training by December 31, 2010.” A copy of the June 18th memo can be obtained by contacting the BANN office. The EPA certification is required of anyone working on pre-1978 houses where children may be present, and requires pre-construction notifications, testing, and mitigation procedures to prevent lead paint poisoning. Since the original April, 2010 implementation date, BANN has helped to certify dozens of remodelers, painters, HVAC subcontractors, window installers and others who may fall under the purview of the nationwide EPA regulation. For more information on the Lead Based Paint Certified Renovator Training or for a schedule of upcoming certification classes, contact Teri Scharosch at BANN at 775-329-4611 or visit www.thebuilders.com n

14

THE BUILDERS MAGAZINE / JULY-AUGUST 2010

Builders Magazine

Goes Digital! It’s undeniable that technology is the wave of the future, and Builders Magazine is opening the door to new opportunities—Builders Magazine is going digital! Same content. Same design. Delivered via e-mail. Straight to your desktop. This new, digital format reduces space constraints so that we can provide more content to help you remain ahead of the pack with regard to construction-related issues, sales and marketing

recommendations, new technology, local trends and more, while at the same time providing you the best, most up-to-date information to help you do business. Going digital also means you will have direct access to Builders Magazine—no chance of issues being lost in the mail. If you don’t see Builders Magazine in your inbox, you’ll be able to access the magazine through a link on http://www.buildersmagazine.com. Builders Magazine will have state-of-the-art interactive features like video, flash animation and links to the products and services your business needs to grow and prosper. Best of all, Builders Magazine digital editions will be able to go wherever you go, as the new format is easy to read on an iPhone, Blackberry or other smartphone, and the iPad. Watch for it soon! (Want to learn more about the benefits and advantages of being an advertiser in Builders Magazine? Contact Rachelle Goodness at 775-355-9288 or email rachelle@ buildersmagazine.com) n


BANN Welcomes New Members to the Most Effective Construction Trade Association in Nevada! Please join us as we welcome these fine companies to the Builders

Association of Northern Nevada (BANN)! Thanks to their support and that of our nearly 700 member companies, BANN remains a strong advocate for construction and housing issues. Whether you need construction education ranging from OSHA to Lead Paint Certification to Business Management, or whether you’re seeking networking opportunities or a forum at which you can make a difference, you’ll find what you’re looking for at BANN. If you are not already a member of BANN, take a moment to contact our offices to discover the many benefits—discounts on health, workers’ comp, liability insurance, education, legal assistance, advertising opportunities and networking—that you will enjoy when you’ve affiliated with the most professional and well-respected construction trade organization of its kind in Nevada. For more information, contact Patty Ferguson at 775-329-4611, or email PattyF@TheBuilders.com. We’d welcome your involvement! Member oud of Pr

The

B u il d e rs

7Q10

Eagle Home Mortgage

Aaron West-Guillen Reno, NV Ph: 775-336-4600 Commercial Sales/Leasing

Emser Tile

Nevada Neighbors

Frame Architecture

Lori Carpenter Reno, NV Ph: 775-828-1991 Mapping/GIS/Wetlands Delineations

Jeff Frame Reno, NV Ph: 775-827-9977 Architect

Artistic Surfaces

Greg Wissenback Sparks, NV Ph: 775-355-9277 Builder

Michael Langton Reno, NV Ph: 775-544-5926 Decorative Concrete/Wallpaper

Boz Investment Group

Michael Bozarth Genoa, NV Ph: 949-544-5269 Business Consultants

Buffo Electric

Dave Buffo Gardnerville, NV Ph: 775-782-5555 Electrical Contractor

Carvel Painting

GW Pacific Builders

Handyman Solution of Reno, LLC

Kirby Fisher Reno, NV Ph: 775-771-4876 Remodeling

High Ride, Inc.

Michelle Smith Carson City, NV Ph: 775-883-0505 Insurance

Intraform, Inc.

Kirk Bailey Reno, NV Ph: 775-762-1165 Publishing

NV Solar Energy Andy Black Reno, NV Ph: 775-771-3935 Solar Sales

Premier Landscaping Doug McKinnon Reno, NV Ph: 775-324-7588 Landscaping Design/ Contracting

Allan Sisia Sparks, NV Ph: 775-356-9996 Electrical Contractors

R C Willey

Jon Jensen Reno, NV Ph: 775-337-4600 Furniture/Appliances

Dave Sutherland Sparks, NV Ph: 775-359-5600 Printing/Web Design/ Promotions

Sierra Stone Fabrication

Cedar Valley Concrete Corp

Johnstone Reeves Ventures

Tool Grinding & Supply, LLC

D’Andrea Golf Club

Michael Jory Sparks, NV Ph: 775-331-6363 Banquet Facilities/Golf Country Club

Darby Law Practice Tricia Darby Reno, NV Ph: 775-322-1237 Attorney at Law

Jessica Johnstone Sparks, NV Ph: 775-560-0090 Excavating

Kendra, Ltd

Sandra Dillon Reno, NV Ph: 775-857-5757 Property Management

Kodiak Roofing & Waterproofing

Mark Nash Sparks, NV Ph: 916-253-1900 Roofing/Waterproofing Contractor

Medical Insurance. Offered through Hometown Health, association members can save money through the power of our group—more than 10,000 strong! For more information, visit www.hometownhealth.com or call (775) 982-3100.

Cafeteria / Section 125 Plans. The Builders has partnered with JD Benefit Services to offer significant discounts for our members on Section 125 Tax Savings Plans and Supplemental Benefit Plans. Call (775) 337-1175 for more information. Warranty Program. 2-10 Home Buyers Warranty provides a variety of solutions for home builders through an insurancebacked 10 yar structural warranty that helps define the builder’s legal liability. Contact Patricia Raymer at (916) 365-6192 for more information.

Providence Electric, Inc.

John Allen Reno, NV Ph: 775-313-6477 Painting Contractor Jason Hukill Rancho Cordova, CA Ph: 775-745-3944 Concrete Contractors

Partners Save Members Money!

NAI Alliance

Brian Havill Reno, NV Ph: 775-337-7600 Lending

Jeff Turk Reno, NV Ph: 775-786-1222 Tile Contractor

BANN Affinity

M A G A Z I N E Advertising Solutions. Access the most powerful, successful & influential business people in No. Nevada. Your message reaches top business executives, industry leaders and elected officials at the national, state, and local governments. For more information, call (775) 355-9288 or visit www.BuildersMagazine.com

Julie Foley Sparks, NV Ph: 775-359-2445 Tile/Stone Suppliers

Stacey Chance Mound House, NV Ph: 775-246-9080 Tool Suppliers

®

Workers Compensation. Available to association members only, First Comp can provide qualified companies with significant savings on their Worker’s Compensation. Call (888) 500-3344 for more information.

Truckee Tahoe Lumber Company

Andrew Cross Truckee, CA Ph: 530-582-5815 Lumber/Building Materials

Utility Services of Nevada John Benedict Sacramento, CA Ph: 916-942-3488 Utility Contractors n

Corporate Wellness. The Gold’s Gym Corporate Membership Program is our partnership with businesses across the country to answer the call for a comprehensive, cost-effective employee wellness program. Designed by top fitness professionals, our program can be customized to meet the needs of your company and your employees to maximize health benefits AND cost savings. (775) 853-7373

Visit: www.BuildersMagazine.com

15


Local Homebuilder Debuts New Home Community N ew homebuilding activity of any type in the Truckee Meadows or northern Nevada in general is cause for excitement these

days. Despite reports to the contrary, there is a buyer profile out there that’s seeking a new home—not a distressed, foreclosed or short sale property that may or may not need thousands of dollars in repairs to make habitable. These homebuyers are seeking what only a new home has to offer: that new home smell…pristine walls and floor coverings…reliable appliances… and a structure that’s not carrying the “ghosts” of owners past. Better Green Building Company and Fred Altmann are bringing just that to Reno with its new home community Panther Estates, which recently opened for sales. Featuring an entry level product that will incorporate numerous energy efficient features into each home, Panther Estates will eventually consist of 31 homes and three different floor plans, with sizes ranging from 1,461 to 1,740 square feet. “Our initial plan is to absorb 2 homes per month,” stated Darrin Indart of Better Green Building Company. “Although that can change depending on the market, we are confident that the product and pricing are appropriate for today’s market.” Like many new home communities in northern Nevada, Panther Estates was originally a casualty of the housing downturn and the drop in home prices. This circumstance led to a distressed position for the project, not dissimilar to most communities that were purchased or developed in the last five years. For Better Green Building Company, this was an opportunity to acquire finished lots at a price that would allow for building and selling homes in today’s market. One of the project’s most visible impacts is the fact that dozens of jobs will be created locally for construction workers, subcontractors and suppliers who have been hard-pressed to find business in the new home market. As Indart pointed out, “The associates in our organization are excited about having a new project to be part of, and we are optimistic about putting some people back to work.” National Association of Home Builders’ statistics have found that on average, each new home built creates the equivalent of three jobs for a year and generates about $90,000 in taxes paid to local and federal authorities. Resisting the impulse to be overly-optimistic in these challenging times, Indart feels that the future holds opportunity for the industry. “In my opinion, companies that are patient, dili-

16 THE BUILDERS MAGAZINE / JULY-AUGUST 2010

In northern Nevada, land values and construction costs are finally beginning to approach a level where homes can be built and sold to buyers who can legitimately afford a conventional mortgage. “As builders, we need to re-evaluate how we operate and do everything more efficiently.” gent, and provide a high quality product—and can avoid the temptation to try to make a million in a week—will be successful.” As evidenced by the launch of Panther Better Green Building Company and its principals have been able to negotiate the regulatory maze as they sought to obtain financing for the project…a challenge that can be daunting. “It comes down to basic economics. Like any other business, at the end of the day revenues have to exceed expenses,” commented Indart. “In the homebuilding industry, that formula not only applies to the builder, but to the consumer who, in most cases, is borrowing money to finance the home purchase.” In northern Nevada, land values and construction costs are finally beginning to approach a level where homes can be built and sold to buyers who can legitimately afford a conventional mortgage. “As builders, we need to re-evaluate how we operate and do everything more efficiently. We’re all changing, but in some cases, that change is for the better.” n



We Can Help! Your Source for Audits, Building Testing & Analysis, and Retrofit Solutions Audits, Testing & Analysis

775.857.1039

Energy Analysis and Building Solutions

www.einsight nv.com


Back to Basics

our ongoing housing challenges, the program that is hardest hit is conventional financing. With the right attiIn the state of Nevada, the private mortgage insurance providers are requiring tude and less negative a 10 percent down payment minimum and press, we can overcome must have a credit score of 720, otherwise the buyer will be required to put 20 percent through shared values down. Second homes and investment by Dwight Millard and visions, making properties also require a minimum of 20 percent down. With these tougher standards, You don’t have to turn very far to see firsthand Nevada a place people it makes speculative investment purchases and understand the housing challenges we want to move to for almost impossible. Investors generally carry face in Northern Nevada. I still remember a total of 9 financial properties, with a few words my father once told me: “Opportunities a better quality of life investors allowing up to 10 properties on a arise and exist from challenges and difficult case-by-case basis. times. Count the blessings you have, not the The current market, made up primarily ones don’t have.” As one of the states hardest hit by the housing crisis, we have of short sales and foreclosures, has been unfriendly to the local been forced to cope with tougher and tougher lending standards. building contractors. We have seen the average price of homes We have seen elimination of many products that used to provide Continued on next page flexibility, and are currently able to originate the standard “vanilla” products. The most popular product is the 3.5 percent down FHA loan that continues to be the leader in home ownership financing. Mortgage investors now require a minimum mid-credit score of 620 and full income and asset documentation on ALL loans. Borrowers now must document complete job histories, current and potential income earnings, cash reserves, and overall stability to ensure home financing. VA, USDA and Nevada Housing loans are becoming an excellent source of financing for those good buyers who just don’t have any real money to put on the table as a down payment; however, these programs follow stricter guidelines. Due to

30 years of construction experience. Paul became a certified RESNET/ HERS Rater in 2009 and is a Building Performance Institute (BPI) Building Analyst Professional. In addition, Paul is an Energy Star Home Rater, Residential Building Inspector, and holds numerous special inspection certifications.) n

The Dunagan Report

Brian and Lisa Dunagan have a beautiful 1,900 square foot home on the west side of town. Leon Mills had contacted Brian and asked if he could do an energy audit on their home, with the goal of showing Lisa what services could be provided to her as a “green realtor.” Never knowing what will be found when doing these audits, the auditors must keep an open mind, compiling all of the data and then putting it together, much like assembling a picture puzzle— eventually the picture becomes clear. In this case-study, you’ll learn of the processes, the testing measures, the visual inspections, what was found and the recommendations made—with the simple payback spelled out in a complete report. You can follow this story on Energy Insight’s Facebook page. The Builders Magazine will also, from time to time, feature interviews with the Dunagans and the auditors. Be sure to check it out!

BANN

Committees & Councils

Safety and Training Committee

Charged with developing programs that benefit members’ businesses and the need to emphasize a safe working environment, this committee also provides resources for training programs and regulatory compliance. Meets: Bi-monthly, 2nd Thursday at 7:00 am Staff Liaison: Jess Traver jesst@thebuilders.com Energy & Conservation/Built Green Nevada Addresses the growing interest in green building and water conservation. Monitors and reviews other similar programs created and adopted in other states, particularly those with similar climate zones. Meets: 1st Monday of each month at 12 pm Staff Liaison: Jess Traver jesst@thebuilders.com Chair: Robb Wong, Guidenby Codes/Infrastructure & Planning Monitors and oversees technical aspects of home construction. Reviews local land use, infrastructure and planning issues impacting development and construction. Monitors all 3 local building jurisdictions in Washoe County, as well as other agencies that impact the industry (TMWA, TRPA, RTC, Health Department). Meets: 2nd Monday of each month at 12 pm Staff Liaison: Jess Traver jesst@thebuilders.com Chair: John Krmpotic, KLS Planning Legislative Committee

Keeps abreast of issues at state and federal levels that affect the construction industry. Reviews and takes action on bill drafts that affect our industry. Interviews candidates for public office at local and state levels. Meets: Tuesdays at 7:30 am or as called by Chair

Staff Liaison: Jess Traver jesst@thebuilders.com Chair: Greg Peek, ERGS Membership Committee

Works to recruit new members, retain current members, and develop member benefit programs. Events include Membership Drive, and General Membership Meetings. Meets: 1st Wednesday of each month at 12:00 pm Staff Liaison: Patty Ferguson patty@thebuilders.com Chair: Michael Ellis, Reno Truss Spike Club

Recognizes and rewards association members who recruit new members. Members achieve Spike status by recruiting 6 new members to the association. Spike Club members act as official ambassadors to new association members. Meets: 1st Wednesday of each month at 12:00 pm Staff Liaison: Patty Ferguson patty@thebuilders.com Chair: Ray Pezonella, Pezonella Associates Public Relations/Sales & Marketing Council

Provides a forum for the exchange of ideas and educational opportunities for sales and marketing professionals. Considers public relations campaigns and industry promotional opportunities. Major events include Forecast and Beyond and the annual BANN-ER Awards. Meets: 1st Thursday of each month at 8:00 am Staff Liaison: Missy Hinton missy@thebuilders.com Chair: Rachelle Goodness, The Builders Magazine Remodelers Council

A new addition to the association, the council is an organization of remodelers and industry associates dedicated to the promotion of excellence and professionalism through education, certification and service to the community. Meets: Third Monday of each month at 12 pm Staff liaison: Jess Traver, jesst@thebuilders.com Chair: Tony Abreu, ASA Construction

Visit: www.BuildersMagazine.com

19




Experience the level of service you deserve. First class. There’s customer service and then there’s the level of service Bank of America has become known for and we know you deserve. We offer a range of home loan programs, which includes: t Purchase t Refinance t Home equity line of credit t Loans for owner-occupied homes, second homes and investment properties We are committed to providing you a satisfying loan experience. We call it first-class customer service. But you can feel free to call it well-deserved treatment. Contact us today. Reno Office (@ Meadowwood Mall Ct.) 775.335.0240 5905 S. Virginia St., Ste. 201 Reno, NV 89502

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Carson City Office (Hwy 395) 775.267.9666 3790 Highway 395, Ste. 407 Carson City, NV 89705

Carson City Office 775.888.6290 1013 S. Carson Ct. Carson City, NV 89701

Bank of America, N.A., Member FDIC Equal Housing Lender © 2009 Bank of America Corporation. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. 00-62-0111D 06-2009 AR74276


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