Mid-Atlantic Builder May/June 2008

Stay Sharp in a Flat Market 28 Membership Superstars 32 Negotiate the Best Financing 36 MID-ATLANTIC

Vol. 50 Issue 3 May/June 2008 www.homebuilders.org

MAKING THE EXTREME DREAM Clark Turner Brings Reality TV Home to Port Deposit

“When a community unites, the extreme is possible” —Clark Turner

May/June 2008 Vol. 50 Issue 3

Publisher John Kortecamp

Editor Kristin Josephson Hogle communications@homebuilders.org

Design Network Design Group Jen Smith, Art Director

Advertising Network Publications, Inc. Irene Hatzigeorgalis, Account Executive 410-584-1962, irene@networkpub.com Chris Martin, Account Executive 410-584-1964, cmartin@networkpub.com Megan Crawford, Advertising Coordinator 410-584-1907, mcrawford@networkpub.com

HBAM Legal counsel Linowes and Blocher

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Making the Extreme Dream

What goes into building a house in seven days? Clark Turner Signature Homes and Extreme Makover: Home Edition did just that for the Luther family of Port Deposit.

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Getting to Green

50 Journal of Light Construction Reprint

Staying Sharp When the Market Goes Flat

Regardless of market conditions, the sales associates that keep their skills razor sharp are ultimately those who return the best performances year in and year out.

By Craig Jensen

Membership Recruiter Superstars Shine Again

HBAM members gave their time for a membership outreach campaign. See who won.

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42 Green Building

Negotiating the Best Financing Package

Builders who are armed with the right information may be able to negotiate lower loan rates or shift to lenders who will give better deals on their construction financing.

Help Your Prospective Buyers Help Themselves

Help your customers become informed mortgage consumers because an informed consumer is more likely to be confident and comfortable with the decision to buy a new home.

Foolproof Layout for Winding Stairs

is a bi-monthly publication of HBAM Member Services, Inc., a subsidiary of the Home Builders Association of Maryland, Inc., 7127 Ambassador Road, Suite 150, Baltimore, MD 21244 410-265-7400, www.homebuilders.org.

Postmaster: Send address changes to Home Builders Association of Maryland, Inc., 7127 Ambassador Road, Suite 150 Baltimore, MD 21244.

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Publisher’s Message President’s Message Events New Members Industry News Notable Products

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Environmental impact estimates were made using the Environmental Defense Paper Calculator.

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PHOTO CREDIT STUART ZOLOTOROW

2008 HBAM LEADERSHIP EXECUTIVE COMMITTEE

publisher’smessage

The Haven Foundation: True Community Builders…

Good people doing good work to benefit individuals, families and charitable organizations throughout their community.

Nearly ten years ago, our association incorporated the Building Industries Foundation to promote and support building related education-research and charitable activities. It was a very modest beginning with myself and two past presidents (Marty Azola and Kevin Carney) serving as the founding Board. Since then, we have established (2003) the Builders’ Haven Foundation as an LLC of the Foundation for the specific purpose of supporting charitable works throughout Central Maryland. From these modest roots has grown one of the real success stories of HBAM. The Builders’ Haven Foundation has been directly involved in a variety of projects from the grand - Saint Casimir’s at the Johns Hopkins Hospital to the modest - building handicap access ramps at the homes of some of our neighbors visited by tragedy. Because of the modesty of the individuals and companies involved, the full scope of the charitable works undertaken by this industry are difficult to document.

We are well aware that those undertaken by the Foundation itself are but a small share of the total. Building homes for Habitat for Humanity and House With a Heart, shelters for battered women and their children, playgrounds, ball fields, etc. are a few among the many taken on independently by our builder and associate members. Even in an economy such as this, when resources are

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President Lou Baker President-Elect Mike Owings First Vice President Eliot Powell Associate Vice President Pete Baxter Secretary Jack Orrick Treasurer Robert Lacey Immediate Past President Chris Rachuba

CHAPTER PRESIDENTS Anne Arundel County Eric DeVito Baltimore County Evan Morville Baltimore City Sandy Marenberg Carroll County Paul Kotsher Howard County Scott Armiger Upper Chesapeake Bill Luther

COUNCIL PRESIDENTS

at a premium, the need persists and the industry responds.

Although it’s not about recognition, we’d like to acknowledge you here, and we’d like others to know that this is an industry that cares and gives back. So, if you’re a community builder, please let us know what you’ve been doing. If you want to get directly involved in the Foundation, your participation would be greatly welcomed. Either way, I invite you to contact Nancy Fox at HBAM, 410-265-7400, ext. 122 or email Nancy@ homebuilders.org to follow up. ■

John Kortecamp HBAM Executive Vice President

Land Development Council Steven Rubin HBAM Remodelers Donald Lynch Sales and Marketing Council Shawn Fortney Certified Master Builder/Remodeler Jeff Powers Builder Mart Jerry Hoover

HBAM BOARD OF DIRECTORS David Altfeld Steve Bartenfelder Steve Breeden Tim Burkard Chickie Grayson Dover Hankins Joe Hikel Jim Hunter Jim Joyce Chip Lundy Cynthia McAuliffe

John Meade David Miller Paul Mueller Tim Naughton Howard Perlow Scott Peterson Jake Ruppert Rich Pezzullo Dale Thompson William Zahler

ALTERNATE DIRECTORS Pat Costello George Decker Patti Freeman Jay Hergenroeder Martin K.P. Hill Barbara Magill Sola Seriki Mary Beth Taylor Pam Wood

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Photo Credit Stuart Zolotorow

Visit www.homebuilders.org for an on-line listing of Mid-Atlantic Builder advertisers with hotlinks. There, you can also view MAB archives and find information on upcoming events and current industry issues.

president’smessage

Hello, Goodbye and Thank You I hope you all are continuing to battle the existing market conditions with some success. I have a handful of topics I’d like to cover with this message.

I would like to extend a huge thanks for the two excellent events that were just presented by the HBAM. The recent Builder Mart was a great success, despite the challenging market conditions, and the event was as well organized as I have ever seen.

The HBAM staff, particularly Stephanie Draminski and Carey Swift, along with BMT chairperson Jerry Hoover, simply did an outstanding job. As Jerry noted in a letter to the organization, “All of the details Stephanie and Carey had told me they were handling had been accomplished expertly.

All during the next two days, all I heard was how well the event was proceeding.

Everyone on the HBAM staff had a positive and energy-filled attitude that was contagious.” Congratulations and thanks to all involved in the planning of another well done Builder Mart.

Similar success was achieved at the MAX awards banquet, which was also extremely well organized by both Stephanie and Carey. A big thank you also goes out to Susan Songy, who chaired the event and played a huge role in its success. Many thanks to all three of you for a night enjoyed by all.

Former HBAM president Kevin Carney has formed a committee to consider his running for the U.S. Representative’s slot in the 3rd Congressional District. Kevin, who is the owner and president of Thomas Builders, has been in the residential building industry for over 30 years. He is also one of the true class acts in our industry. We often complain about the beatings we sometimes take at the hands of our elected officials.

Well, Kevin has decided to do something 14

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about it. You have our support, Kevin, and we wish you the best. Keep an eye open for his website, carneyforcongress2010.com, which will be up and running shortly.

It is with mixed emotions that our organization has announced that Tom Ballentine is leaving. Tom has been an enormous asset for the HBAM as Director of Policy for Government Affairs and has always been highly respected by parties on either side of an issue. Tom is pursuing a great opportunity with the National Association of Industrial and Office Properties. We wish you well, Tom, and many thanks for your numerous contributions here.

Thanks to all members for your ongoing support of the organization through your membership, your attendance at events and your contributions to our political funds.

Our industry came through the recent legislative session in quite good shape, and that is primarily due to the efforts of the HBAM staff and to your financial support. Lastly, as always, please remember that Members Do Business with Members. n

Lou Baker 2008 HBAM President

DIRECTORY OF ADVERTISERS Advertising Your Way 40 Appliance Dist. Unlimited 16 AZEK Building Products Back Cover BASCO Shower Enclosures 15 Bay National Bank 31 BGE 9 BGE Outdoor Lighting 18 Bonded Builders 34 Bradford Bank 58 Broan-Nutone 3 Builders Advantage Center Spread California Closets 30 Chaney Enterprises 1 Columbia Bank, The 49 Coover & Barr, LLC 56 Electrolux 11 Escapade Advertising, Inc. 63 Ferguson Enterprises, Inc. 6 HTG Insurance Group 62 KAWG & F 58 Lennox Industries, Inc. 55 Lubrizol Advanced Materials 41 Marvin Windows (WDPC) 35 Mid Atlantic Propane and Gas 4 Potomac Valley Brick & Supply 62 Premier Lifts, Inc. 7 ProSource Wholesale Flooring 45 Provident Bank 63 Railtec Construction LLC 30 Reeb Millwork Corporation 13 Reico Kitchen and Bath

Inside Back Cover Residential Warranty Corp.

19 Rexel Branch 59 Sound Structures 19 Southern Pacific Supply

Inside Front Cover Susquehanna Bank 45 Swift Flooring Distributors 56 T. W. Perry 5 Tyco Fire & Building Products 17 Walbrook Mill/Lumber Company 55 Weaver Precast 2 Weyerhaeuser 8

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Real Estate & Construction Forecast Luncheon – Mid-Year Update

HBAM Builders Open

Thursday, May 29, Noon — 2:30 Turf Valley Resort, Ellicott City, MD

The HBAM Builders Open will be held on June 18, 2008 at three premier Maryland golf courses which include Bulle Rock, Whiskey Creek Golf Course and Beechtree Golf Club.

This is your opportunity to have 6 hours face-to-face time with a HBAM builder member. Visit www.hombuilders.org for more information.

We will present a mid-year update to our ever popular real estate forecast so you can find out when the real estate market will bounce back. You will get the perspective and outlook from a leading national builder, a nationally syndicated real estate writer who resides in the Baltimore/Washington area and Maryland’s best known and most entertaining regional economist.

Market trends and data analysis and the insights of a senior economist from the National Mortgage Bankers Association will also be part of the program.

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Wednesday, June 18, 2008

SAVE THE DATE: September 25, 2008 LDC Awards of Excellence Center Club

Mark your calendar for the 2008 LDC Awards of Excellence which will be held Thursday, September 25, 2008. ■

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Making the

Clark Turner brings Reality TV home to Port Deposit

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extreme dream On Sunday, October 14th, 2007, Ty Pennington and the design team from the hit ABC show Extreme Makeover: Home Edition surprised members of the Luther family of Port Deposit, Maryland with the news that they would receive a brand new home in just seven days. As the leader of a massive team of tradespeople and community volunteers, Clark Turner Signature Homes was honored to be part of the project and on Sunday, October 21, 2007, the Luthers were welcomed to their brand new home.

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When Renee Sherrard-Luther lost her husband Carl to cancer, she worried what the future held for her and her children. For the past 25 years, Renee has owned and operated a non-profit riding facility dedicated to providing therapeutic riding lessons and helping those with a wide range of physical problems, including brain injuries, broken necks, autism, cerebral palsy and other developmental issues. The Freedom Hills Riding Program has helped thousands of people, some of whom have gone on to win gold medals in Special Olympics equestrian events.

The loss of her husband has left Renee struggling with finances and in danger of having to close her riding facility. In addition, her house

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has many problems, including foundation concerns, lack of insulation, unsafe windows and doors and a kitchen with broken appliances.

Inspired by her hardworking mother who hosted families in need while running a 156-acre farm, Renee has always had a strong love for riding and for helping those in need, especially children. She’s worried she might lose all of that.

Fortunately, the community to which the Luther family has given so much had a chance to give something back. Thanks to the people behind Extreme Makeover: Home Edition, Clark Turner Signature Homes and a legion of caring business and local volunteers, Renee and her children received an entirely new house and a fully-renovated riding facility. n

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A note from John Kortecamp: It all started with a phone call from Yana Peifer of American Home Bank, one of our associate members. “I need some help,” she said. “Our company has a contact with the TV show Extreme Makeover: Home Edition and they want to do something in southern PA or northern MD,” she explained. “Can you suggest any builders who might want to undertake a project of this magnitude?” she asked. “Sure,” I replied and gave her some names and information off the top of my head. Yana thought Clark Turner sounded interesting and wanted me to feel him out about his potential interest and give her an introduction. I gave Clark a call, but he’s a busy guy and was unavailable, so I left a message. Next morning, another call from Yana. “Did you reach Clark?” she asked. At that point, I called him on his cell… and the rest is video history.

John Kortecamp Home Builders Association of Maryland Executive Vice President

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Staying A IG

BY C R

JENSE

N

When the Market Goes Flat Compared to recent years, it’s no secret that things have slowed down. It never hurts to fine-tune selling skills.

Regardless of market conditions, the sales associates who keep their skills razor sharp are ultimately those who return the best performances year in and year out.

It’s easy to forget some of your sales skills when the market’s so “hot” that all you have to do to get sales is just open your sales centers. However, when things cool off, it is time to go back to the basics — the six tried and true rules of successful selling.

The Big Six • Greet. It may be a cliché, but you only have one chance to make

a first impression of your company and especially yourself. It could be argued that the impression you make can carry you nearly half the distance to the close.

• Qualify. Your first impression might get you halfway there, but if you don’t qualify the prospect and “discover” what is important to the buyer (not you), you will not earn the right to the sale.

Ask the right questions and make sure that this encounter can lead to a close.

• Demonstrate the product. Make sure, through a compelling dem-

onstration of features and benefits, that the prospect has a clear understanding of just what it is that sets your home apart from the others. Use what you’ve discovered in Step Two to appeal to the prospect’s “dominant buying motives.”

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• Siting. Have you ever heard the phrase, “The more you site, the more you write?” Take your prospects out to the home site and walk it with them, physically and emotionally. Demonstrate the dimensions, positioning of the home and the “one-of-a-kind” features that only that site can offer. The more emotionally involved you get the prospects, the more likely you are to close the sale.

• Close. There is no such thing as too much closing! Don’t forget to ask for the sale. It’s amazing how many good salespeople leave out this step. If you’ve done your job well on items One through Four, this should just be a formality. It is more likely that multiple closes will be necessary — don’t give up!

• Follow up. Once they sign, it’s your chance to shine. Following up is what separates the good from the great. And it gets you referrals. Make no mistake; referrals from happy homeowners are worth more than every other marketing tactic you employ.

I call these fundamentals the Big Six. If you apply these to your everyday routine, when, and if, your market goes flat, you will not falter. It is those skills you most need to sharpen for success in any market — hot or cool.

Ten More to Challenge You Implementing the Big Six rules to help you out in a flat market can only be effective if you start with the proper foundation of knowledge and techniques. Following are a few key areas you need to focus on to bring your success to a higher level.

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1.

Know your product. In my experiences, I have often asked a

sales associate the simplest question about a product I was considering only to get a blank stare in return. Even worse is when I get an answer that I knew the sales associate was “making up.” When that happens, I typically look for a different sales associate and may even look for a different company. Be honest; if you do not know, find out. The lesson is to know every thing about your homes — down to the most seemingly inconsequential detail.

2.

Know your competitors. Be ready and able to speak to

strengths and weaknesses when making a comparison between your product and theirs. That said, never criticize or demean a competitor to your customers. Not only is it unprofessional, it also makes the prospect think poorly of you. Know the facts and let the facts speak for themselves.

3.

Know the area amenities. Regardless of the neighborhood

amenities, potential homebuyers will make purchase decisions based on what services and conveniences are nearby. For example, the location of schools and which one their children will attend, where the banks and dry cleaners are located, the best shopping and dining opportunities – all things you should be able to speak about first hand. Be the expert, it makes you invaluable to the buyer.

4.

School yourself. It’s not enough to know the school district boundaries; you need to know and experience the actual schools applicable to your neighborhood. Go to each one and get familiar with the facilities, the principals and the teachers. By the same token, drop your dry cleaning nearby. Dine at local restaurants and utilize the banking services at the branch nearest your community. Attend the local town or city council meetings and know who’s at the head of your own neighborhood association. Think about all the things that were important to you when you last changed neighborhoods and be able to provide those kinds of answers to your buyer. Remember this tip again: if you don’t know the answer, admit it and get them the information in a timely manner. These are the little details that make you both an expert and a hero in your customers’ eyes.

5.

Grand opening is everyday. Take a careful look around your

community and take an even closer look at your model park. Make sure it’s neat and manicured to perfection. Hold a “Best Looking Yard” contest to encourage your current homeowners to maintain their yards; this will show prospects the high standards you set. Inventory homes should be highly identifiable with current, readily available information and should be as clean and presentable as your models.

6.

Smile for the camera. Your models, interiors and exteriors,

should always be “photography ready.” The models, like you, display an impression of your company. Home theater arrangements should feature family friendly movies or proper company messaging. Refreshments, especially if children are

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present, should be readily available. It’s often the most miniscule detail that becomes a memory point for the customer; don’t ever think you are providing too much for them.

7.

Know your marketing materials.

Make sure they are in abundant supply and professionally displayed. I know this sounds obvious, but actually read them and understand the information contained within. Know the content as if you wrote it yourself.

8.

Work the Web. First and foremost respond prompt-

ly to all Internet inquiries. People use the Web because they don’t want to take the time to get information through slower traditional methods. A quick response will keep you on their short list.

9.

Know the value of a good referral. As I mentioned earlier, a good referral is simply the most powerful marketing weapon in your arsenal. As part of the follow-up process, you should continue marketing to both prospects and current buyers.

Reach out to the current homeowners who are already living in your community. Make sure their experience was a good one. If they have unresolved issues, do everything in your power to fi x them. Happy customers will reward you with referrals. Referral sales should occur regularly and will help you achieve your goals in changing market cycles.

10.

A Word to the Top. I’ll fi nish with a couple of words of advice for the leadership team — those who have VP, EVP, CFO or even CEO attached to their names. The sales team can only be as good as management and the support it provides. So, provide the leadership the organization needs to get the expected results. Train your sales staff; provide them with the tools they need and the rewards that will motivate them to succeed.

So, follow the Big Six, challenge yourself with the 10 other guidelines above and hot or cold market aside, you will go forth and prosper. ■

As vice president of sales and marketing for Ryland Homes’ Indianapolis Division, Craig Jensen is responsible for strategic planning and management in the areas of sales and marketing. He also oversees the operations for the Ryland Homes My Style Design Center. Craig started with Ryland immediately following his college graduation, but quickly proved his sales ability by earning the Rookie of the Year award, followed by repeated Sales Counselor of the Year awards and also Sales Counselor of the Region.

For more information about this item, please contact NSMC Staff at 800-368-5242 or via e-mail at nsmc@nahb.com.

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Membership Recruiter Super Stars Shine Again Members Chip-In to Educate their Subs about HBAM Membership Once again, builder and remodeler members of HBAM gave their time to support an outreach initiative to educate and encourage their prime business partners to join the efforts of HBAM. Our builder and remodeler members have volunteered key staff members, in some cases the actual owner of the company, to work on this outreach. HBAM sends letters to the vendors on the builders’ and remodelers’ behalf along with an HBAM membership application explaining to them the benefits they receive as a member and through their builder’s and remodelers’ involvement. Simply, HBAM fights to ensure land availability, fair policy and local and state legislation which keeps both the builder and the vendor in the home building business.

Thank you to the builders and remodelers who participated in our last outreach which netted over 10 new members.

Top Recruiter Shawnn D. Bittorie William Douglas Homes Shawnn Bittorie has been involved with development as well as commercial and residential construction for more than 20 years. Her career in the construction industry began at an early age with her grandfather who was a general contractor and excavator in Howard County for over 60 years. After obtaining her degree in construction management, she began working in estimating and project management in the commercial construction field. She joined William Douglas Homes in 2003 and is currently their operations manager. She also plays an active role as a Realtor® handling sales for William Douglas Homes through Weichert, Realtors®-Platinum Service.

Shawnn was also named the HBAM’s 2007 Spike of the Year.

1st Runner Up Michael Owings Owings Brothers Contracting Michael is the president, owner and general manager of Owings Brothers Contracting and has been in the remodeling industry for 25 years. He began building decks in the summer months while attending a local high school, Boys Latin, and officially started in the industry after graduating college at Towson State University. Later, his three brothers joined him as owners and managers of production.

Michael received the Remodeler of the Year award in 2002 and 2005 and Builder of the Year in 2006. Owings Brothers Contracting operates mainly in Baltimore, Howard and surrounding counties. He has been active in the Remodelers Council, including a two term presidency, for eight years. Michael looks forward to his upcoming Home Builders Association of Maryland presidency in 2009.

2nd Runner Up Bill Rauser Rauser Professional Contracting Bill is the Founder and was President for 26 years of Rauser Professional Contracting, a full service remodeling and custom building contractor. He is a graduate of Loyola College in Baltimore.

Bill is a Certified Graduate Remodelor (CGR), a Certified Aging-In-Place Specialist (CAPS) and winner of multiple HBAM Awards of Excellence.

When he sold his company in 2007, he stayed on as a consultant and is currently an instructor for NAHB University of Housing. In 2007, he was president of HBAM Remodelers. Bill has authored numerous articles that have appeared in Remodeling Magazine, Builder-Architect Magazine, The Baltimore Sun, the Baltimore Business Journal and The Business Monthly.

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Small builders often ask: “Am I paying too much for my construction loans?” This article provides information smalland medium-volume builders should know about the cost of construction loans and suggestions on how they can get better terms on construction financing. Builders who are armed with the right information may be able to negotiate lower loan rates or shift to lenders who will give better deals.

Prime-Based Loans The vast majority of construction loans are tied to the prime rate.

Lenders typically add a margin of one to two percentage points per annum above the prime rate on construction loans. The percentage (or margin) over prime decreases as the size of the builder increases. In addition to builder size, the amount of the margin will vary depending on the builder’s relationship with the lender, the riskiness of the project and the size of the loan.

Lenders also charge up-front fees, or points, on the loan. A point is one percent of the loan commitment amount. These points are paid when the commitment is funded. Points

According to NAHB surveys, about 90 percent of all loans for residential land acquisition, development and construction (AD&C) come from commercial banks or thrifts.

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typically represent a significant portion of the cost of borrowing on a residential construction loan because the contract interest rate is applied to funds actually drawn, while the points are applied to the full commitment amount. Since construction loans are drawn in stages as construction progresses, the lender receives interest on the full commitment amount only briefly, if at all.

Lenders may also charge a number of other fees on construction loans. The types of fees will vary with local jurisdiction, but some of the more common fees include appraisal, legal, title, inspection, wire transfer, etc. Lenders also charge builders fees when they opt to extend a loan. Like the margin and upfront points, these fees will vary according to builder size, the builder’s relationship with the lender, the riskiness of the project and the size of the loan. Builders should carefully negotiate these fees with their bank.

The combination of interest and upfront fees pushes financing costs on the typical residential AD&C loan significantly above the lender’s cost of funds. For example, commercial banks have maintained a three percentage point spread between the published prime rate and the federal funds rate (a proxy for a bank’s cost of funds).

Adding on a one percent margin and an additional one percent for fees, pushes the rate on a prime-based

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construction loan five percentage points over the bank’s cost of funds. This spread is very large relative to the risk incurred, particularly for construction loans on pre-sold homes, which have risk characteristics almost as favorable as home mortgages.

Despite the small difference in charge-off rates between residential mortgages and AD&C loans, borrowing costs on AD&C loans, including interest and upfront fees, are 50 to 75 percent higher than for home mortgages.

Alternatives To Prime-Based Loans There are some alternatives to construction loans tied to the prime rate. Some lenders offer loans tied to short-term market rates and larger builders often turn to the commercial paper market. However, there are drawbacks associated with these alternatives and some of them may not be available to smallervolume builders.

LIBOR-Indexed Loans The London Interbank Offering Rate (LIBOR) is the most common alternative to the prime rate for construction loans. LIBOR is the rate on dollar-denominated deposits at commercial banks outside of the U.S. This rate is posted each day in The Wall Street Journal and generally tracks the same trend as rates on Treasury securities.

Ultimately, the rate charged on LIBOR-indexed loans actually will be based on the difference between the prime rate and prevailing LIBOR. Lenders will adjust the rate on a LIBOR-indexed loan to be about the same as that on a prime-indexed loan through adjustments to the margin. For example, if LIBOR is 5.25 percent and the prime rate is 8.25 percent, the margin on the LIBOR-indexed loan could be set at 300 to 400 basis points above LIBOR to bring the rate up to the prime rate or prime plus one percent. Again, the size of the margin would vary in the same manner as a loan tied to prime (i.e., the relationship with the lender, the riskiness of the project, the size of the loan, etc.).

In addition to the rate, there are a number of fees and other factors to consider with a LIBOR-indexed loan that do not apply to prime-indexed loans. Unlike a prime-indexed loan where the rate floats with the prime rate, a LIBOR-indexed loan has a fi xed rate for the term of the loan. Thus, in a LIBOR-based loan, the builder is required to buy a contract for a specified amount (referred to as a tranche), such as $1 million, at a specific LIBOR rate (plus margin) for a certain maturity (i.e., 30, 60, 90 days). Lenders also have limits on the minimum contract amount and the maximum number of contracts that can be outstanding at one time.

Administrative costs are higher for non-prime loans (for both the builder and the lender) since these loans must be monitored continuously. Lenders will charge higher administrative fees for nonprime-indexed loans since the lender has to write a specific contract for the loan. As noted, for a loan tied to LIBOR, a builder would buy a contract for a May/June 2008 MID-ATLANTIC BUILDER

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specific amount outstanding at a specific LIBOR (plus margin) for a specified period of time. The builder guarantees to keep the amount outstanding for the specified period of time at the agreed upon rate (LIBOR plus margin). When the loan matures, the lender will notify the builder and will write a new contract for the loan at the new LIBOR if that is what the builder wants to do. The higher administrative costs associated with the nonprime loans will be included in the points on the loan.

The most important difference between prime-indexed and non-prime loans, is that prepayment penalties apply to nonprime loans, while prime-indexed loans can be paid off early without a penalty. For example, in the case of a LIBOR-indexed loan, as noted above, the builder guarantees to keep the loan amount outstanding for the specified period of time at the agreed upon rate. If the loan is repaid prior to maturity, the lender will charge a prepayment fee based on the difference between the LIBOR rate on the contract and the prevailing LIBOR at the time of prepayment.

Due to the additional fees and other factors associated with LIBOR-indexed construction loans, these loans are generally only offered to large builders (those producing 400-500 units per year). Lenders will require these builders to have some portion of their construction financing tied to the prime rate in addition to the LIBOR-based loans. For large builders with a large volume of prime-based construction loans, the lender may waive the prepayment penalty on LIBOR-based loans.

Builders should be aware of the additional fees associated with non-prime loans that could make these loans more expensive and less flexible than loans tied to the prime rate, especially for smaller-volume builders. While there may be some initial rate advantages to non-prime loans, the additional administrative fees and penalties associated with non-prime-indexed loans could easily negate that advantage.

cial paper must be issued in large volumes to cover the costs of marketing and distributing funds. Issuers of commercial paper generally have $600 - $700 million outstanding at any given time and as much as $1 billion in a month.

Using commercial paper to raise funds has several advantages for both the issuer and investor. A company issuing commercial paper gets the benefit of flexible maturities and marginally lower rates than they would have to pay on a comparable loan or line of credit from a bank. A disadvantage is that commercial paper cannot be paid off early or refinanced like a bank loan, but must be held to maturity. Market volatility has been a deterrent to many would-be issuers of commercial paper as commercial paper rates can swing from very high to fairly low during periods of tight and loose credit.

The commercial paper market is very difficult to participate in on the issuing side. Any company wishing to enter the commercial paper market generally must be highly rated by at least two credit agencies and should have access to large lines of credit from a commercial bank. Additionally, the sheer size of the offerings in the commercial paper market requires that the issuer be a large company that can put that money to use.

Bargain hard on loans to construct pre-sold homes. Point out to your lender that construction loans on pre-sold homes have a much lower risk-based capital requirement to the bank than loans for speculative construction.

Commercial Paper Market Large volume builders often can negotiate below-prime construction financing or raise funds in the commercial paper market. Unfortunately, these alternatives are not available to smaller builders who do not have the volume to leverage with their lender or to tap the commercial paper market.

By definition, commercial paper consists of short-term unsecured promissory notes issued by well-known companies that are financially strong and carry high credit ratings. Maturities range from 2 to 270 days. Commercial paper is generally issued by large corporations, bank holding companies and finance companies to investors with idle cash, either directly from the issuing company or through a broker. Commercial paper sold through a broker is called “dealer paper,” and paper sold directly through the issuer is called “direct paper.” Although commercial paper is unsecured, in almost every case the issuer is required to back up the obligation with a line of credit from a commercial bank. The minimum denomination for commercial paper is $25,000 and new issues average around $2 million. Commer38

MID-ATLANTIC BUILDER May/June 2008

Tips for Reducing Your Construction Financing Costs There are several strategies small builders can use to negotiate better loan terms to reduce their construction financing costs.

If you have a construction loan with the rate marked up over prime and prime is running abnormally high relative to other rates in the market, try to renegotiate your rate. Point out to your bank that it is hard to imagine a risk premium that justifies a construction loan rate of four to five percent above the rest of the interest rate structure. Question your lender on why they are charging you such a high markup over their overall cost of funds (not just over the cost of overnight money in the federal funds market).

Bargain hard on loans to construct pre-sold homes. Point out to your lender that construction loans on pre-sold homes have a much lower risk-based capital requirement to the bank than loans for speculative construction.

Reducing upfront points is also an avenue worth exploring. www.homebuilders.org

Builders should be aware that lenders have funding constraints of their own, as well as regulatory requirements and management objectives, that limit their ability to negotiate lower rates.

Success in this area will depend on the builder-lender relationship, perceived riskiness of the project and the size of the loan.

While builders certainly should try to negotiate lower rates and points on construction financing, they should expect only moderate results. Builders should be aware that lenders have funding constraints of their own, as well as regulatory requirements and management objectives, that limit their ability to negotiate lower rates. Also, the lender’s willingness to offer lower loan rates, especially below prime, will depend on the lender’s relationship with the builder and the lender’s perceived risk of the project.

Some builders have reported success in getting the mark-up over prime on their construction loans reduced or eliminated.

However, builders should be aware that the cost savings from reducing just the interest rate can be modest.

savings. However, like other forms of insurance, title insurance regulations and practices vary widely by jurisdiction, so local counsel should assist in the analysis. Some fees and charges will not be negotiable. For example, recording fees, documentary excise taxes, intangible taxes and other taxes and impositions on the loan documents must be paid according to local laws.

Carefully Manage Draw Schedules and Job Completion Often builders focus on haggling over the loan rate and fees when the builder could more than make up for the cost savings from a lower interest rate through scheduling and job completion. For example, builders can save on interest costs by selling homes promptly after taking their final draw. Builders can also save more in interest costs by drawing more heavily later in the loan term since interest expenses would be accrued over a shorter period of time. ■ For more information about this item, please contact William Renner at 800-368-5242 ext. 8597 or via e-mail at wrenner@nahb.com.

Negotiate Lower Ancillary Fees and Charges A more productive area for negotiating construction financing cost savings can be in the ancillary fees and charges that accompany a loan. Many fees and charges may be pass-through expenses, so negotiation must be done before the expense is incurred. Fees necessary to document the loan, such as appraisal fees, lender’s attorney fees and inspection fees may be negotiated in advance of the loan. Similarly, closing statements will typically include charges for courier fees, wire transfer fees, loan processing fees and document preparation fees. Often these charges are estimates of what may be incurred during the term of the loan. If the relationship with the lender is strong, the builder might be able to obtain substantial cost savings by negotiating to pay the lender the actual cost of such items as they are incurred.

Builders should scrutinize loan costs with the lender and the lender’s and builder’s counsel.

For example, if building is to take place in a newly platted subdivision, it might be possible to negotiate a waiver of the requirement for a boundary survey at closing. Since a newly platted subdivision is unlikely to have significant boundary line disputes or encroachments, the lender’s concerns might be addressed by the foundation survey after construction has started. Similarly, an analysis of title insurance coverage requirements and endorsements may yield www.homebuilders.org

May/June 2008 MID-ATLANTIC BUILDER

39

Help Your Prospective Buyers Help Themselves Buying a home is the biggest investment most people ever make. And given the concern in today’s market about predatory lending, it is important for every prospective home buyer to do their homework and become as knowledgable as possible about mortgage lending and credit management.

It’s also to your benefit as a builder or salesperson to help your customers become informed mortgage consumers because an informed consumer is more likely to be confident and comfortable with the decision to buy a new home.

Fortunately, there are many resources on the Web to help prospective home buyers prepare for the responsibilities that come with owning a home and borrowing money to purchase that home. Explore the links below to find useful information about credit, mortgages and home buying.

Enhancing Financial Literacy and Preparedness for Credit

• The path to homeownership begins by understanding and practicing good personal financial management. View the National Endowment for Financial Education's ww.SmartAboutMoney.org webpage, which provides a pathway to tools to assess financial literacy and materials to develop financial management skills.

• Freddie Mac has developed a Credit Smart (www.freddiemac.com/creditsmart) program that offers a curriculum in either English or Spanish to help consumers understand, build and maintain better credit.

• The Home Buyers and Homeowners portal (www.fanniemae.com/homebuyers/homepath) on Fannie Mae’s website includes links to information on

becoming a home owner, plus a link to a glossary (www.fanniemae.com/homebuyers/glossary) of mortgage terms and a variety of calculators (www.fanniemae.com/homebuyers/calculators) that can be used to estimate a mortgage payment or to determine how much a prospective buyer can afford to pay for a home.

Information about Home Buying, Credit and Mortgage Lending • View the U.S. Department of Housing and Urban Development's (HUD's) useful information (www.hud.gov/buying) for a prospective purchaser to review when considering buying a home.

• View the Federal Trade Commission's (FTC's) mortgage and real estate information for consumers (www.ftc.gov/ bcp/menus/consumer/credit/mortgage).

In addition, view the FTC’s consumer credit (www.ftc.gov/bcp/conline/edcams/credit) website.

• The Mortgage Bankers Association of America (MBAA) has assembled a number of helpful resources that are aimed at helping consumers to better understand mortgage loans and to help borrowers avoid falling prey to mortgage fraud: • Home Loan Learning Center (www.homeloanlearningcenter.com) • Simple Home Loan Calculator (www.homeloanlearningcenter. com/MortgageBasics/TheSimpleFacts/ TheSimpleCalculator) • MBAA’s Stop Mortgage Fraud Web site (www.stopmortgagefraud.com) • View the Center for Responsible Lending's Web page for advice on ways to spot and avoid predatory loans (www.responsiblelending.org/issues/ mortgage/briefs/page). n

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MID-ATLANTIC BUILDER May/June 2008

www.homebuilders.org

green building

Getting to Green

BY H. ALAN MOONEY, P.E.

I

Efficient Conserve energy, water and materials, on site and shipping Sustainable Use manufactured products instead of grown/ organic products Low impact Work with the site, don’t remake it

t’s been nearly two years since we started this series of articles on green building.

During that time, a lot has changed; the housing market has slowed down and the demand for green has gone up. A recent (fourth quarter 2007) survey by the American Institute of Architects revealed willingness by 90 percent of those polled to pay $5,000 more for a house that is energy efficient and environmentally sensitive (“helps protect the earth”). That same survey indicated a growing interest in sustainable and renewable materials and components.

In past articles we have talked about your signature as a builder and how green should only be a part of your signature, not your primary message. We have also talked about how green should be part of how you operate not just the product you build and sell.

Those are all interesting concepts and, of course, important ones. But how does it all come together for you? There are a few builders in the Mid-Atlantic area who do a great job presenting a signature of their own incorporating green construction practices. If you look around, you will see them.

But let’s take a look at what your program might look like, to combine your signature (who you are as a builder) with solid green concepts.

In the last issue, I suggested that you should Category Lot Design *Resource Efficiency *Energy Efficiency *Water Efficiency *Environmental Quality Homeowner Education Global Impact *Optional

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MID-ATLANTIC BUILDER May/June 2008

Bronze 8 44 37 6 32 7 3 100

“keep it simple” when building green, focus on the essence of the standards. Building green is relatively simple, and you may be doing it now.

Ultimately, while the NAHB Green Building guidelines are complex and comprehensive, the underlying concepts are simple and logical; efficient, sustainable and low impact.

Efficient, Sustainable, Low Impact: To review,

these are the concepts involved in green building, with the points required for each. For more detail, please review my previous articles or the NAHB Green Building Guidelines at www.nahb.org.

As you examine each of these categories (in the table below), think of them as opportunities to either establish or enhance your signature as well as reaching your desired level of green construction. Those marked with an asterisk, in my opinion, offer the greatest opportunity for both. Let’s look at each.

The ratings that follow reflect opportunity; 1 is low, 5 is high. They are admittedly subjective. You may not agree. However, this is how I see the significance of each category contributing to your signature as a builder and your rating for green construction. Remember that your signature is universal, for you as a builder, while your green rating is product based, either Silver 10 60 62 13 54 7 5 100

Gold 12 77 100 19 72 9 6 100

www.homebuilders.org

Figure 3: The stated objective of this section is: “Implement an integrated and comprehensive approach to energy-efficient design of building site, building envelope and mechanical space conditioning systems.”

This category does have a must do section.

1. The home must be equivalent to the IECC (International Energy Conservation Code) or the local energy code, whichever is more stringent. Compliance is determined by a plan analysis using software such as ResCheck.

2. Space heating and cooling equipment must be sized according to building heating and cooling loads calculated using ANSI/ACCA Manual J, 8th edition or equivalent.

3. A third party (acceptable to the Green Building Program administrator) plan review is www.homebuilders.org

It’s hard to do much for your signature with energy efficiency since everyone will be doing essentially the same things. However, if you achieve 30 percent or more above the IECC standards, you should highlight that as part of your signature.

Figure 4: The goal here is simple and direct – use

less water. Here are the opportunities from the NAHB guidelines.

Achieving a GOLD level for water efficiency only requires 19 points. Two ENERGY STAR water-conserving appliances plus a low flow toilet will get you there.

As you move beyond that, however, and consider scoring some of your optional 100 points in this category, keep in mind that there are basically three objectives: 1. To minimize domestic water use through the choice of fi xtures and the location of water heating equipment.

2. To minimize water use through sprinkler systems; through type (non-spray) and control (only when needed).

3. To maximize reuse of water (rainwater and gray water) wherever possible.

Conserving water is about attention to a lot of small details, some of which may not be acceptable to your buyers. If you combine effective homeowner education with your focus on water conservation, you can add this to your signature. Otherwise, this is a category with plenty of potential for points toward a green rating, but one that may not do much for your signature.

Green Signature

5

0

2

6

4

Figure 2. Resource Efficiency Green

Figure 2: Now you are moving into an area where design plays a big part to get green points. However, how you manage your project is also important…..and visible! Take some time to consider waste management. According to the NAHB guidelines the average 2300 SF single family home generates between 7,000 and 12,000 pounds of construction waste. Set a goal for you crew to be less than 4,000 pounds.

And make it visible; collect it in a container on a scale, with a poster showing the goal. If the material is unacceptable send it back. If it’s usable, use it effeciantly, and re-use scraps.

Resource efficiency is makes a strong statement about who you are as a builder.

To score well in the Resource Efficiency category: 1. Focus on good construction details, material use and waste management 2. Refine your designs for efficient space planning and material use 3. Develop and implement a reuse, recycle program

3

5

Signature

run, neat site, sensitive to the impact on the environment and natural features makes a statement about you to your buyers. Your signature starts here. While the points for green are minimal, the perception you create is critical to establishing who you are as a builder. Take full advantage of this opportunity.

Figure 1. Lot Design

5

0

2

6

4

Figure 3. Energy Efficiency Green

Figure 1: This is your face to the public. A well

conducted to confirm compliance with the Energy Efficiency section of the Green Building guidelines.

Using an architect or engineer to develop and review your drawings is the most effective way to satisfy these “must do” requirements. Keep in mind that each design will require review and compliance.

This is threshold stuff. If you don’t at least handle the MUST DO, you have no chance for a green rating. Exceeding the must do increases points quickly (see table below).

If you reduce energy efficiency to its essence, there are really only two areas to consider: 1. Performance of the envelope (optimizes insulation and minimizes infiltration).

2. Use efficient equipment complying with recognized efficiency ratings.

3

Signature

for a single custom home or project with consistent design standards.

5

0

2

4

May/June 2008 MID-ATLANTIC BUILDER

6

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green building Figure 5: Note that this category accounts for at

Green

Figure 4. Water Efficiency

Signature

4

3

0

2

6

4

Green

Figure 5. Environmental Quality

Signature

5

4

0

2

6

4

Green

Figure 6. Homeowner Education 3

Signature

5

5

0

2

6

4

Green

Figure 7. Global Impact 3

Signature

5

5

0

2

6

4

Green

5

Signature

Figure 8. Optional

5

0

44

2

4

least 13 percent of the total you need for any rating. And, if you add in 25 points for the “optional” category, you can get more than 25 percent of your desired rating from this one category.

Now, with that in mind, as you read this, think about the homes you are building now.

What comes to mind? Are you doing some of these things now?

What does this mean? To achieve a good green rating in this category, think filters, moisture control and environmentally sensitive products. To add to your signature, think mold control and concern about your occupant’s health.

Figure 6: To summarize, there are three goals to improve Indoor Environmental Quality: 1. minimize the source of pollutants (choosing the right materials) 2. manage those pollutants that enter the space (filters and construction details) 3. manage moisture and, thus, minimize mildew and mold (don’t let water get where it shouldn’t be) While I am sure most people will agree with the objectives, establishing clear, manageable and cost effective protocol is not simple. In fact, optimum indoor air quality is somewhat in conflict with many of the other objectives in building green (for example, better ventilation means less energy efficiency). Balancing these objectives can be a challenge. However, reread the list. You are doing many of them now, and most represent good construction standards. If you formalize what you are doing now, you will probably be more than half way there!

While this is important, and a minimum commitment is required, it’s hard to justify much attention given the number of points assigned to it. However, I know one builder who pre-qualifies his buyers by visiting the home they live in now to determine how well they take care for their home. That makes a strong statement about who you are as a builder and what your signature is. Effective communication with your buyers reflects your commitment to them and should be considered part of your signature.

Figure 7: Here is another opportunity to enhance your signature. If green matters to you, you should reflect that is your operation. Using environmentally sensitive products (low VOC, etc.) throughout your organization makes a statement. If you do, make it visible so people know what you stand for.

Figure 8: Optional should be considered OPPOR-

TUNITY! Any green rating requires 100 points in the optional category. What you choose is up to you. Here is your chance to enhance your signature. What’s important to you? Material waste? Water conservation? High performance building envelopes? Saving every tree on the site? You decide. And then do it visibly!

Your signature is lasting. Building green is important but no longer distinctive. In the future, building green will probably be mandated.

Effectively combining the two will serve you well for a long time and, for most builders, be a continuation of your already established reputation and commitment to quality construction.

Don’t think of yourself as a green builder. Instead, think of yourself as a quality builder with a commitment to craftsmanship and customer satisfaction, all with a green background. ■ Criterium engineers has specialized in residential construction for nearly 50 years, with more than 65 offi ces in more than 30 states. We have evaluated more than 600,000 buildings. among many engineering services Criterium engineers offers third party quality assurance services to some of the largest builders in the country. We are currently monitoring construction of more than 50 projects in more than 20 states. H. alan Mooney, P.e, President of Criterium engineers, is a licensed, Professional engineer in 8 states and has been the author and presenter for various naHB programs, many on construction quality and green building. For more information, please visit www. criterium-engineers.com

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MID-ATLANTIC BUILDER May/June 2008

www.homebuilders.org

www.homebuilders.org

May/June 2008 MID-ATLANTIC BUILDER

45

Benefits of Membership Legislative Advocacy Public Relations and Information Education EVENTS Events and Conferences ANNUAL

& CONFERENCES

HBAM offers a variety of events and programs each year that provide both business and social forums to increase your industry contacts.

HOMEBUILDERS Association of Maryland

Contact Kim Dresser at 410-265-7400, ext. 115 or kim@homebuilders.org for more information.

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MID-ATLANTIC BUILDER May/June 2008

Builder Mart Key Connections MAX Maryland Awards of Excellence International Builders’ Show Celebrity Chef Night, Auction & Wine Festival Golf Outing & Picnic HBAM Remodelers Awards of Excellence The Governors Conference on Housing The Maryland Housing Conference Th e Maryland Real Estate & Construction Forecast Conference Icon Awards President’s Luncheon La nd Development Council Community Development Awards

Do Business With Your Fellow HBAM Members.

“Building Your Business Through Association” is our philosophy. HBAM members believe that they should support those who support the building industry.

NETWORK with other companies in the building industry to gain new contacts as well as strengthen your current ones at the Celebrity Chef Night & Auction, Golf Outing & Picnic, sporting events, chapter and council meetings and more.

KEEP UP-TO-DATE about pertinent legislative and regulatory issues on a local, state and national level.

INCREASE YOUR KNOWLEDGE of the building industry through our educational programs and seminars.

TARGET YOUR MARKET with cost effective advertising in any of HBAM’s publications and receive a spreadsheet of HBAM members.

STAY INFORMED with HBAM’s publications. You will receive Mid-Atlantic Builder, HomeFront, HomeFront Online and the Buyers’ Guide.

ADD CREDIBILITY for your company in the building industry as well as with the general public by being associated with one of the largest building associations in the country.

WWW.HOMEBUILDERS.ORG is designed to serve both consumers and those in the building industry. You can access the latest legislative news, find out about member benefits, profile your company in the online directory or register for an event. Consumers can visit the HBAM home page to find you and other builders or suppliers in their area.

The site received over 3 million hits in 2007. www.homebuilders.org

HBAM Welcomes New Members Associates

95 Asian Products Exhibition & Market King Mark 5602 Baltimore National Pike, Suite 710 Baltimore, MD 21228 Phone: 410-788-6666 Fax: 410-788-7766 www.95apem.com Professional Services - Other

Allied Home Mortgage Capital Corporation Geoffrey Friedman 1829 Reisterstown Road Baltimore, MD 21208 Phone: 410-630-6906 Fax: 443-378-7343 www.rezandbizloans.com Sponsor: Howard Perlow, Residential Title & Escrow Co. Professional Services - Financial Services

Arbor Landscapers, Inc. Tim Stephens 2214 Spencervile Road Spencerville, MD 20868 Phone: 301-384-0084 Fax: 301-384-3523 Sponsor: Christina Coulter, Ruppert O’Brien Group, LLC Subcontractor - Landscaping & Lawn Care

Bob Head Coldwell Banker Bob Head 2023 Emmorton Road Bel Air, MD 21015 Phone: 410-598-5700 Fax: 410-515-2014 www.bobhead.net Sponsor: Chuck Reich, Gemcraft Homes, Inc. Professional Services - Real Estate

Boise Brett Barry 8960 Henkels Lane Annapolis Junction, MD 20701 Phone: 410-792-2234 Fax: 410-792-7866 www.bc.com Supplier - Lumber & Millwork

Budget Blinds of Owings Mills - Columbia Stephanie Cantor 226 Morningstar Way Westminster, MD 21157 Phone: 410-857-3666 Fax: 443-244-4396 www.budgetblinds.com Supplier - Window Treatments

Building Supply Mart Inc. Lawrence Granat 15 Stonehenge Circle Baltimore, MD 21208 Phone: 410-653-3503 Fax: 410-653-3503 Supplier - Other

www.homebuilders.org

Constellation Mortgage

LP Corp.

Ruff Roofers, Inc.

David LaRosa 130 N. Bond Street Bel Air, MD 21014 Phone: 410-803-8450 Fax: 410-803-8501 Sponsor: Shawnn Bittorie, William Douglas Associates, Inc. Professional Services - Banking & Mortgage

Robert Reber 10228 Rutland Round Road Columbia, MD 21044 Phone: 443-257-4747 Fax: 410-356-6803 www.lpcorp.com Sponsor: David Thayer, Snavely Forest Products Corp.

Supplier - Lumber & Millwork

Robert Ruff 1420 Knecht Avenue Baltimore, MD 21227 Phone: 410-242-2400 Fax: 410-247-7171 www.ruffroofers.com Subcontractor - Roofing & Gutters

Cubellis Mike Kingsley 8614 Westwood Center Drive Suite 340 Vienna, VA 22182 Phone: 703-288-9008 Fax: 703-288-9010 www.cubellis.com Professional Services - Architecture & Drafting

Ductmate Industries Inc. John Sorna 210 Fifth Street Charlerci, PA 15022 Phone: 724-258-0500 Fax: 724-310-1010 www.ductmate.com Supplier - HVAC

Hillebrand Industries, Inc. t/a Closet Factory Gerhard Hillenbrand 3729 Old Georgetown Road Baltimore, MD 21227 Phone: 410-247-4400 Fax: 410-247-4224 www.closetfactory.com Supplier - Closets & Shelving

Hogan Companies Lawrence Hogan 2661 Riva Road Annapolis, MD 21401 Phone: 410-266-5100 Fax: 410-266-9432 www.hogancompanies.com Sponsor: Eric DeVito, Ribera Development, LLC Professional Services - Real Estate

KE Gilligan & Associates Kevin Gilligan 533 Baltimore-Annapolis Blvd.

Severna Park, MD 21146 Phone: 410-975-0673 Fax: 410-975-0671 www.gilliganassociates.com Professional Services - Consulting & Customer Svc.

Landmark Settlements Diana Kuhn 260 Gateway Dr. Ste. 15A Bel Air, MD 21014-4243 Phone: 410-420-9714 Fax: 410-420-9717 www.landmarksettlements.com Sponsor: Bill Luther, Gemcraft Homes, Inc. Professional Services - Titles & Settlement

MW Windows Jim Ross 433 North Main Street Rockey Mount, VA 24151 Phone: 443-340-2721 Fax: 410-751-5550 Supplier - Doors, Windows & Glass Block

O’Malley, Miles, Nylen & Gilmore, P.A. John Davey 1997 Annapolis Exchange Parkway Suite 500 Annapolis, MD 21401 Phone: 410-974-6111 Fax: 410-266-9522 www.omng.com Sponsor: Eliot Powell, Whitehall Development, LLC Professional Services - Legal

Rainmaker Marketing & Design Sean Ruppert Forbes Center II 4388 Lottsford Vista Road Lanham, MD 20706 Phone: 301-577-3887 Fax: 301-577-3625 www.rainmakermarketinganddesign.com Sponsor: Christina Coulter, Ruppert O’Brien Group, LLC Builder - Production; Professional Services - Interior Design

Reisterstown Lumber Co. Gretchen Forbes 13040 Old Hanover Road Reisterstown, MD 21136 Phone: 410-833-1300 Fax: 410-833-6803 Supplier - Lumber & Millwork

Rocky Top Building Products Allison Perry 1050 N. Main Street PO Box 508 Rocky Mount, VA 24151 Phone: 540-483-5264 Fax: 540-483-4873 www.rockytopbp.com Supplier - Lumber & Millwork

ROI Marketing Mary Phillips 622 Mary Street Unit 1B Warminster, PA 18974 Phone: 443-871-6291 Fax: 215-885-1054 www.roimkt.com Professional Services - Advertising & Marketing

Schluter Systems L.P. Larry Horton 9210 Lake Braddock Drive Burke, VA 22015 Phone: 703-927-8005 Fax: 703-426-2936 www.schluter.com Supplier - Flooring

Schuman’s Heath Schuman 1204 Butterworth Stevensville, MD 21666 Phone: 410-827-8978 Fax: 410-604-2803 www.schumans.com Professional Services - Cleaning

Schummer Inc. Raymond Schummer PO Box 360 1249 Central Avenue East Mayo, MD 21106 Phone: 410-956-8080 Fax: 410-798-1709 Sponsor: Robert Goodier, Goodier Builders, Inc. Subcontractor - Excavating, Grading & Utilities

Smart Start Building Systems, Inc. Henry Walthery 2138 Route 522 Selinsgrove, PA 17870 Phone: 570-374-7397 Fax: 570-614-2145 www.smartstartdealer.com Supplier - Green Building Products

Smartbox of Maryland Portable Storage Nick Sage 415 Fourth Street Suite 201 Annapolis, MD 21403 Phone: 410-280-6013 Fax: 443-482-3994 www.smartboxmd.com Supplier - Mobile Buildings, Storage, Trailers

Style Crest, Inc. Mike Kern 2450 Enterprise Street, Drawer A Fremont, OH 43420 Phone: 419-332-7369 Fax: 419-332-6639 www.rmcsiding.com Supplier - Siding

May/June 2008 MID-ATLANTIC BUILDER

47

Vector Security

Mariner Custom Homes LLC

Ruppert O’Brien Group, LLC

Dan Bubniak 9800 Patuxent Woods Drive Suite B Columbia, MD 21046 Phone: 410-290-5320 Fax: 410-290-5374 www.vectorsecurity.com Supplier - Security & Safety

Bill Bullock 1110 Emerald Drive Bel Air, MD 21014 Phone: 410-877-3349 Fax: 410-420-1530 www.marinercustomhomes.com Builder - Custom

Christina Coulter Forbes Center III 4388 Lottsford Vista Road Lanham, MD 20706 Phone: 301-577-3887 Fax: 301-577-3625 www.ruppob.com Builder - Production

Marquis Properties Group, Inc. Charles Byers 2180 White Street #143 York, PA 17404 Phone: 717-292-1096 Fax: 410-796-8666 www.marquispropertiesgroup.com Sponsor: Mike Crosen, Steuart-Kret Homes Builder - Custom

Builder

Heritage Land Development Timothy Feaga PO Box 482 Lisbon, MD 21765-0482 Phone: 4104897900 Fax: 4104899768 www.heritagemaryland.com Sponsor: Robert Goodier, Goodier Builders, Inc. Developer

Maryland Residential Construction Mark Bennett 25 Main Street Suite 100 Baltimore, MD 21136 Phone: 410-526-4405 Fax: 410-526-0792 Multifamily & Related Services

Lancaster Redevelopment Corporation Randy Conrad 2138 Rt. 522 Selinsgrove, PA 17870 Phone: 570-374-0131 Fax: 570-374-6093 www.lrc-homes.com Builder - Production

Delbert Adams Construction Group LLC Delbert Adams 1425 Clarkview Road, Suite 700 Baltimore, MD 21209 Phone: 443-250-0583 Fax: 443-632-0762 www.dacgllc.com Remodeler

Tanglewood Properties

Gifford, Incorporated

Bryan Boyd 207 Chester Avenue Annapolis, MD 21403 Phone: 443-254-2287 Fax: 443-949-9909 Builder - Custom

Timothy Gifford 1040 Oak Drive Westminster, MD 21158 Phone: 410-848-7991 Fax: 410-848-7991 Remodeler

Red Door Remodeling

Remodeler

ASSA Construction Services LLC

Pioneer Country Contractors Inc. Charles Schroyer 1211 Emmaus Road Woodbine, MD 21797 Phone: 410-549-3913 Fax: 410-549-3913 Sponsor: Bill McElwee, Steuart-Kret Homes Builder - Small Volume

2008

Zoumana Keita P.O. Box 15343 Baltimore, MD 21220 Phone: 410-564-7043 Fax: 410-686-5342 www.assaconstructionllc@yahoo.com Remodeler

Brian Thompson 709 Glen Allen Drive Baltimore, MD 21229 Phone: 443-928-3360 Fax: 443-378-5736 www.reddoorremodeling.com Remodeler

Chesapeake Home Remodeling, LLC Bryan Schroers 3205 Eve’s Way Hampstead, MD 21074 Phone: 410-374-0963 Fax: 443-507-5901 www.chesapeakehomeremodeling.com Remodeler

Sponsor Club Members do business with members

Presenting Members Taking Care of Business We Take Banking Personally Firewall Specialists

All Things Financial

We Don’t Just Insure Builders, We Help Build a Better Bottom Line

contributing Members Allied Building Products Expect Excellence

K. Hovnanian Homes The First Name in Lasting Value

Reznick Group Building Business Value

American Home Mortgage Builder Services Division

Lansing Building Products

Ryland Homes America’s Home Builder

Susquehanna Bank T.W. Perry

ChesapeakeHome Magazine IWIF Injured Workers Insurance Fund

48

Provident Bank The Right Size Bank Residential Title & Escrow Company Don’t Make a Move Without Us!

MID-ATLANTIC BUILDER May/June 2008

Wachovia Uncommon Wisdom

Saratoga Insurance Brokers The Williamsburg Group Maryland’s Award Winning Homebuilder

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HBAM Policy Partners What is a Policy Partner? Since 2001, HBAM has been underwriting benchmark studies and programs that have been essential in helping us build our case that: • The buildable inventory, across the region, is precariously low (2003 University of Maryland study by Dr. Gerrit Knaap); that • Counties and municipalities must be accountable for maintaining sustainable residential development capacity (2001 RESI/Towson University Study of Baltimore County); that • At specific price points, new residential construction is a net contributor to a county’s tax base (2004 Optimal Solutions Group, Anirban Basu and RESI/Towson University); that • The lack of affordable workforce housing throughout central Maryland is severely affecting our quality of life (Maryland Workforce Housing Coalition 2005); and mostly • Building moratoria do not curtail growth, they only serve to deflect it to ever more remote areas of the mid Atlantic region (University of Maryland 2005).

As we continue to press our case, these fact based, objective studies and policy initiatives have been critical in convincing governmental officials that our concerns and positions are legitimate.

Policy Partners are those members who have been willing to financially support this essential work. Please review the list of our current Policy Partners. I encourage you to recognize and thank them for their leadership. We, and indeed all in the industry, owe them a debt of gratitude. We also must take the opportunity to encourage you, if your company is not on the list, to join them by becoming a HBAM Policy Partner. n

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HBAM Policy Partners | 2008 Bob Ward Companies+ Clark Turner Signature

Residential Title & Escrow Company+ Ryland Homes+

Homes, LLC* Gemcraft Homes, Inc.*

Shelter Systems Limited+

Goodier Builders, Inc.*

Susquehanna Bank+

Grayson Homes+

The Rachuba Group+

Mister, Burton

Thomas Builders, Inc.+

Forty West Group, Inc.

+

& Palmisano, P.C.+ Orchard Development* Owings Brothers Contracting, Inc.+ Powers Homes* Provident Bank+

Whitehall Development, LLC+ Williamsburg Group, LLC+ Woodhaven Building and Development+

Pulte Homes - Maryland DC Division+

+ Received * Commitment Made As of 4/2/08

May/June 2008 MID-ATLANTIC BUILDER

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journal of light construction

Foolproof Layout for Winding Stairs While new stair codes have made winders more complicated to build, full-scale layout eliminates the guesswork

BY JED DIXON

R

part of a tread to be narrower than 6 inches.

This is too bad, because these traditional stairs are comfortable to climb, look good and take up less space. Nonetheless, we had no choice but to redesign the stair to meet code.

Winder Rules

The walk line. Those old stairs are comfortable to climb because they follow one of the most important rules of stair safety: The net run of the treads, measured at the walk line, should be constant from the top to the bottom of the stair.

The walk line is an imaginary line that represents the path the center of your body takes when climbing and descending a stair — typically about 15 inches in from the centerline of the handrail. Try it: Stand on a stair with your hand on the handrail, center the end of your tape measure on the handrail, and check the distance to your belt buckle.

When designing winding stairs, this rule — plus making certain that all risers are the same height — is critical. When your feet move the same height and distance forward with each step, the tendency to stumble on a stair is greatly reduced. That’s why the walk line is my first consideration when I draw a stair in plan view. Though I prefer to lay out winders with a 15-inch walk line, my local code uses 12 inches, and requires a 9-inch minimum tread width at the walk line. So to pass inspection I have to make sure I meet that requirement. For the stairway shown here, which was only 36 inches wide, I used a 12-inch walk line for layout.

estoration of vintage Victorians is a booming business in the Boston area.

As a stair specialist, I’m frequently called in to design, build and install new, historically correct staircases. The catch is that they also have to meet modern building codes. The project I’ll discuss in this article began with a completely gutted, 1880s era three-story house with only the original stair from the first to the second floor left standing.

Because the carpenters had to climb ladders to access the third floor, they were understandably eager for us to begin.

Building Code-worth Unlike many stair shops, we often build customWinders stairs on site, in stages. We first build the Winders Building Codeworthy rough carriage and install 3/4-inch plywood subtreads and risers, which are permanently 9" minimum tread depth at walk line, glued and screwed in place. For subtreads and per Mass. code 9" (2003 IRC requires risers, I like to use poplar industrial plywood, 10" minimum) Walk line 30° winders which12"holds screws well and stays reasonably flat. Arauco and lauan plywoods are also good.

Next, after the mechanicals and insulation 6" minimum tread depth are in place and the flat plaster work is completed, we install finished trim, skirtboards, Typical Architect’s Drawing Winders Designed to Code risers, treads and moldings. Last, when other Typical architect’s Drawing fi nish work is winding up and the painters ng Codeworthy Winders have started, we install the balustrade. Done this way, the job has a safe, usable stair that 9" minimum tread depth at walk line, can be wired and plastered without the need per Mass. code 9" (2003 IRC requires 10" minimum) to protect any finished surfaces throughout the Walk line 30° winders rough phases of the job.

12" 6" minimum tread depth

Winders Designed to Code Winders Designed to Code

Figure 1. although conventional winders may still turn up in architect’s plans, they no longer meet new stair codes, which require that winders be no less than 6 inches at the narrowest point.

50

For this particular job, the architect’s drawing showed a new stair winding up to the third floor, a design appropriate for the period but one that I immediately knew wouldn’t meet code (see Figure 1). As drawn, the U-shaped stair called for three 30-degree winders at each right-angle turn. While such stairs are typical in homes built before, say, 1960, they’re no longer allowed by code. Old-style winder treads typically taper to a point at the outside corner, whereas current building codes won’t allow any

MID-ATLANTIC BUILDER May/June 2008

Work Full-Scale The most important piece of advice I can give to a carpenter tackling a stair project is to design it completely before you start cutting lumber. When I bid a complex stair like the one shown here, I include at least 16 hours for design and layout.

When laying out stairs, I always start with the finished surfaces and work backward toward the rough structure. Many dimensions www.homebuilders.org

Making the Story Pole

Making the Story Pole

Figure 2. after making sure of fi nish fl oor thicknesses, the author lays out a story pole for the stair, fi rst using a laser level set at the walk line to establish reference points.

Reference marks on stairwell walls are useful when installing stringers

Rough stairwell opening

Face-skirt line

Third-floor landing

Laser offset

Walk line

Story pole positioned plumb at walk line

Laser level placed on walk line of upper-floor landing

Second-floor landing Walk line Face-skirt line

Story pole To mark story pole, first subtract the offset distance of the laser to establish subfloor height. Then add thickness of the upper finish floor.

Laser offset

Finish third floor Finish treads Subtreads

Double-check thickness of finished flooring, which may vary from level to level

1151/2" total finish floor-to-floor rise

Next, divide finished floor-to-floor distance into equal number of risers, then mark finish tread heights on the story pole

Finally, subtract tread thickness and thickness of plywood subtreads to get rough stringer level cut lines Finish second floor

of the rough frame won’t be obvious until you know how far they are behind the finished surface. And there’s no sense in even starting the layout until you know the thickness of the finished flooring: It’s not always 3/4 inch, and it may vary from one level to the next.

It’s also important to know the finished tread thickness. You’ll avoid the most common error picked up by building inspectors — uneven www.homebuilders.org

riser heights — by nailing down all dimensions at the beginning.

I use full-size layout for any stair more complex than a straight run. You need full-size patterns to make the winder treads, and full-size details of the important areas around the newels are essential to get every component in the proper position. Full-size drawings are also necessary to lay out the stringers for winding stairs.

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journal of light construction Figure 3. using the information on the story pole, the author creates a fullscale plan of the stair on 1/8-inch lauan spread out on his shop fl oor. By trial and error, he determines the required number of “common” treads while making sure that the narrow ends stay more than 6 inches wide

Full-Scale Layout of Winding Stairs Full-Scale Layout of Winding Stairs Step 1 Locate handrail centerline,

typically half a baluster’s thickness in from face-skirt line

Centerline 3/4"

Step 3 Divide walk line into equal-width tread segments.

Total floor-to-floor rise for this stair is 115 1/2", which gave (15) 7 11/16" risers and (14) 9 3/4"-wide treads, measured at the walk line.*

Common treads 11/2"

baluster Face skirt

Walk line Stud wall Finish plaster Wall skirt

Face skirt Open to below Down

Up

Step 2 Offset walk line

Step 4 Divide face-skirt line’s length into equal segments

from face-skirt line, in this case 12 3/4"

(depending on total run and configuration of stair, there may be a number of “common” treads).

Keep narrow ends of wedge-shaped treads as close to minimum 6 inches as possible.

Walk line

9

10

11

8

7

6

12

13

5

4 3

9 3/4"

Face skirt Open to below

14

Down

2

1

Up

Step 5 Connect points on walk line and

face skirt and extend to wall skirt to form finish riser lines

Drawing full-size doesn’t require any special equipment — I use a drywaller’s T-square, a framing square, a long level for a straight edge, a tape measure, a compass to draw small radii, and a trammel point on a stick to draw big circles. Eighth-inch-thick lauan plywood is an inexpensive, smooth material to draw on, and when one project is done, I paint the sheet with white primer and reuse it.

The Story Pole Architect plans can be unreliable, so I always mark accurate site measurements on a story pole — a clean length of 1-by lumber, 1 to 2 52

MID-ATLANTIC BUILDER May/June 2008

inches wide and a little longer than the floorto-floor distance. The story pole provides an accurate, full-size stair elevation condensed onto a tall stick. By working things out on the story pole first, I eliminate the cumulative error that can otherwise result from rounding riser heights to the nearest 1/16 inch. Even a 1/32inch deviation per rise can turn into a 1/2-inch disaster when multiplied by 15 risers.

I label the pole’s bottom end for reference and square the thickness of the finish flooring across it, up from the butt. I begin by marking the rough-to-rough floor distance directly on the pole. The two points, where the stair begins www.homebuilders.org

Step 6 Find rough stringer plumb cuts by marking offset lines " behind finished risers to represent the thickness of the finish riser, then secondary offsets to represent the thickness of the plywood subrisers 3/4

Stringer plumb cut

Subriser

11

10

9

8

7

6

Finish riser

5

4 3

12

2

13

Open to below 1

14

Down

Up

Step 7 Drawing the stringers completes the full-scale plan.

It is now possible to lay out the stringers themselves (see Figure 4).

Stringer plumb cut

Subriser

Stud wall 11

10

9

8

7

12

Finish plaster

6

5

4

Finish riser 3

Finish tread nosing 13

Wall skirt

2

Open to below 14

Down

1

Up

* Check local code for minimum winder dimension.

Author’s local code requires minimum 9-inch tread width at walk line.

and ends, usually aren’t directly over each other, so I use a laser level to find the difference in elevation. I stand the pole in the stairwell at the starting riser location and shoot a level reference line over to it from the top riser location (Figure 2, page 51). The floor in a rehab often is not level, so I always work from the walk line.

While I’m at it, I also mark corresponding laser line marks on the surrounding stairwell walls for later reference when installing the stringers. Then I put away the laser — I won’t need it again.

Next, after laying the pole flat, I subtract the offset distance of the laser beam (the distance www.homebuilders.org

of the beam above the subfloor). This mark establishes the subfloor height. Then I add the thickness of the upper finish floor above the subfloor reference line. This gives me the finished floor-to-floor distance of the stair at the walk line, which I quickly divide into an even number of risers using a Construction Master calculator. I mark these on the story pole — these are the finish tread heights — and then subtract the tread thickness, as well as the 3/4-inch thickness of the plywood subtreads, to get the rough stringer level cut lines.

The final steps of this stage consist of checking diagonals on the rough stair openings to see May/June 2008 MID-ATLANTIC BUILDER

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journal of light construction Figure 4. By laying the story pole perpendicular to the plan and snapping out riser lines, the author can project full-scale templates for the rough stringers.

Rough Stringer Layout

Rough Stringer Layout

FF T14

Riser lines projected from each stringer (no two stringers are alike) C

T13

Author lays story pole perpendicular to full-size stair plan in order to project level cut lines for stringers A, H, and I

T12

D

T11

E

T10 T9

Long point, short point of bevel cut, typical Author starts with straight segmented line projected below stringer, then creates fair curve

T8 T7 T6

F

T5

G

B

T4

Stringer A

T3 T2

Subrisers

T1

11

10

9

8

7

6

5

4

Stringer F

12

D

E

H

H C

A

FF

A

F

G

3

B I

I 2

13

13/4"-thick LVL stringers (labeled in order of installation) 1

14

T7

T6

MID-ATLANTIC BUILDER May/June 2008

Most plans provided by architects show half of the stair on the lower floor plan and half of the stair on the upper floor plan, which doesn’t help me much. Both my scaled stair plan, which I use as a presentation drawing for the GC and client, and my full-scale layout show each floor-to-floor stair run as a unit (Figure 3, pages 52).

I locate the handrail centerline —typically half of a baluster’s thickness in from the face-

T5

54

A Drawing That Works

T4

Figure 5. Shear-rated lag screws connect intersecting stringers and fasten the inside members to the walls. Plywood subrisers and treads, installed with screws and construction adhesive, convert the individual stringers into a strong monolithic structure. Temporary, 2x4 guardrails, screwed together for easy removal, provide fall protection for workers using the rough stair.

T3

whether they’re square and checking the walls for plumb and flatness. There isn’t a lot I can do about out-of-plumb-and-square conditions, other than to accommodate them. If I don’t design the stair to match the existing conditions, I’ll have a real struggle on my hands, trying to make the pieces fit together.

T2

Full-size layout plan

Up

T1

Open to below

FF

Down Stringers C, D, and E projected in this direction

Story pole placed in this direction for stringers B, F, and G

skirt line — and offset the walk line 15 inches from there. I then divide the walk line into even tread segments, relying on the formula 2 risers + 1 tread = 25 inches. On a residential stair, the risers must measure between 61/2 and 8 inches; as riser height increases or decreases, the tread run changes accordingly.

The total floor-to-floor rise for this stair was 1151/2 inches. I broke it down into fifteen 711/16-inch risers and fourteen 93/4-inch-wide treads, measured at the walk line.

My next step is to mark tread divisions on the face-skirt line by dividing its total length into equal segments. Depending on the total run and configuration of the stair, there may be a number of “common” treads — fullwidth treads that occur in a straight section of the U. You can determine this by trial and error, trying to keep the narrow ends of the wedge-shaped treads as www.homebuilders.org

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May/June 2008 MID-ATLANTIC BUILDER

55

close to the minimum 6 inches as possible. The stair shown here had two commons.

With the tread spacing marked equally along the face-skirt line, I connect those marks to the divisions along the walk line and extend each line to the wall. This gives me the complete finish riser line for each step; from there, it’s easy to mark the back of the 3/4-inch finish riser, then the back of the plywood subrisers, which tells me where the rough stringer plumb cuts go. (I also add other details to the drawings as needed — nosing, wall skirts, newels, baluster and railing.)

Stringer Layout I use LVL for stringers; it’s 13/4 inches thick and very stable, and comes in a variety of widths. Because the winders cross the stringers at different angles, the stringer shapes become complex and require wider-than-normal stock.

For this stair, I used 16-inch-wide LVL. All the information I need to lay out each stringer is right on my fullsize plan. I draw 3/4-inch offset lines behind the finished risers and inside the skirtboard line to represent their respective thicknesses. Then I draw secondary offsets 3/4 inch behind those lines to represent the thickness of the plywood subrisers. I draw the stringers according to their actual spacing on the plan. This stair was only the minimum allowable 36 inches wide, so I used three stringers. On any stair wider than 36 inches, I use four stringers. I draw the stringers with a red pencil to distinguish them from all the other pencil lines.

This is where the story pole becomes indispensible. By holding it at right angles to the stringer lines, I can accurately mark the risers where they occur on each stringer — no two stringers will be alike (Figure 4, page 54).

I make all of my stair carriage components in the shop — this one took a couple of days — and then haul them to the site for assembly as a rough stair. Installation usually takes two guys about a day to complete. We lag the stringers together at the turns, and to the walls, with 5/16-inch-diameter GRK star-head screws driven with an impact driver fitted with a Torx bit. The screws are rated for shear and provide a rugged connection.

Starting at the bottom and working up, we glue and screw the plywood treads and risers, using construction adhesive to eliminate squeaks. We continually check the stringer 56

MID-ATLANTIC BUILDER May/June 2008

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Figure 6. Carpenter Mike Kennedy adds a plywood batten beneath the wall stringer to create a visually fair line for the plaster furring to follow.

Figure 7. Pieces of metal highhat furring channel get individually leveled across the underside of the stair to ensure a level start and end to the transition between upper and lower ceilings (above). Leveling automatically fans the furring across the plane of undercarriage (above right). The eye is the final judge of appearance: To ensure a pleasing line, individual furring pieces may need slight adjustment.

Figure 9. A plaster scratch coat establishes a rough plane against which the face skirtboards can be scribed (above right).

The author cleans up the skirt’s curving profile before gluing on a decorative edge bead (above left). After the face skirt is installed, the final plaster coat will fill any gaps and provide a smooth surface that flows between ceiling levels.

heights with the story pole and check the subtreads for level, front-to-back, and side-to-side accuracy. We try to keep the face side of the stair about 1/8 inch higher than the wall side to counteract deflection.

Once all the treads and risers are attached and the glue dries, the entire carriage becomes one strong, monolithic structure (Figure 5, page 54). Before leaving the site, we install all the blocking needed to secure finish components — for instance, where railing meets wall — and install a temporary 2x4 handrail that’s screwed, not nailed, together for easy removal.

Once the flat plastering is done, we return to fur out the underside, or soffit, of the stair so that it can be plastered to a pleasing, sculptural curve. To do this, we first fasten flexible wood battens or contoured plywood strips to the wall, following the underside of the wall stringers (Figure 6). We adjust the battens by eye to form graceful, flowing lines that connect the upper and lower ceilings. The face stringer line requires no additional adjustment, as it follows an equal offset from the tread nosings.

However, keep in mind that a slender face skirt looks better than a heavy one; I control this by leaving about 4 inches of solid lumber under the tread-riser cutouts. We bridge between the www.homebuilders.org

face and the wall with metal “high-hat” furring, named for its hat-shaped cross section. Highhat is easily cut using sheet-metal snips, and is fastened with drywall screws on 12-inchaverage centers. It’s important to install each piece of furring level, to keep the soffit parallel between the top and bottom of the stair (Figure 7). The pitch of the stringers is not the same at the wall side and at the face side, but the highhat can be readily twisted to accommodate the difference. Once all the pieces are installed, I adjust pieces up or down to fair the overall plane. Then the plasterers screw expanded wire lathe to the furring and apply a plaster scratch coat, the first in a three-coat job.

Figure 8. The author lays out the newel notch directly on the winders (top), then transfers the information to the post. After notching, the post is positioned (center), then shimmed plumb and bolted from the back (bottom). Plugged bolts are added later through the face for reinforcement.

Newel posts. Because they would be partly embedded in the plaster, we installed the newel posts at the rough stage of this project, using screws to fasten them (Figure 8). The assembled rough stair carriage was strong, but the furring and continuous diaphragm of plaster made it even stiffer. Before the finishing coats could be applied, we had to install the face skirt, because the plaster would finish directly against it.

In any job, the skirt, like the stringer, has to be cut from wider-than-common lumber — in May/June 2008 MID-ATLANTIC BUILDER

57

Figure 10. The author uses a 45degree default angle for the vertical skirt cuts and adjusts the finished riser angles individually. The shim space behind the skirt allows the miter joints to be adjusted plumb and tight.

this case, glued-up walnut boards. We fit the face skirt between newel posts, scribed the soffit profile on the back side, and cut it to shape (Figure 9). Then we held the skirt in place to scribe the tread and riser cutouts. Although the winders didn’t form 90degree corners at the skirt, I made all the skirt cuts at 45 degrees and adjusted each riser angle to fit (Figure 10).

Hand Railing

BY JIM LEROY

We custom-make balustrade components in the shop. This is not only the best way to match existing architectural details, but, in some cases, it’s the only way to get the unique transitional pieces needed to assemble a complex, flowing handrail. The balustrade on this job was a relatively simple post-and-rail configuration, in which railing segments butt into the newel posts at all points of transition. Nonetheless, the handrails had to be custom-shaped to follow the stair’s irregular fall line. We handle this kind of situation by producing and delivering the balusters first, so that the painter can prefinish them before installation. This approach saves time and gives the finished railing a crisp, professional appearance. Ideally, we also install all of the landing nosings before the finish flooring goes in, so that it scribes to the stair rather than the other way around.

The woodwork — treads, risers, skirtboards, moldings, balusters and railing — is installed using conventional, highend finish carpentry skills and a bag of special stair-builder tricks, but that’s another topic for a future article.

Jed Dixon owns north Road Stairbuilders in Foster, R.I. Reprinted with permission from the Journal of Light Construction. For information on subscribing to the Journal of Light Construction, call 1800-375-5981 or email cs@bginet.com.

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MID-ATLANTIC BUILDER May/June 2008

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Armiger Receives National Housing Endowment Builder Achievement Award Recognizing that difficult times in the home building industry haven’t dampened the charitable impulse of its members, the National Housing Endowment honored eight builders with its third annual Builder Achievement Awards for Outstanding Community Service on February 13, during the 2008 International Builders’ Show in Orlando, Florida.

“Even in challenging times, the generosity of home builders continues to shine. They understand that the communities in which they work consist not just of home buyers, but people who need help,” said Gary Garczynski, chairman of the National Housing Endowment, the philanthropic arm of the National Association of Home Builders. “Builders throughout the country have constructed much more than four walls and a roof. They’ve built structures that represent a bridge from a life of struggle to a life of hope. These awards honor that charity and honor the fact that in tough economic times, this charity is all the more dear.”

Orchard Development Corporation in Ellicott City, Maryland., received the Gold Award for donating a $2 million share of a mixed-income apartment development to The Columbia Foundation, an endowment funding various non-profit organizations in Howard County. The donation from Orchard owner Earl Armiger and his wife Mary is the largest single contribution the foundation has received since it was founded in 1969. More than 55 groups including a hospice, a domestic violence center, a homeless shelter and an African art museum receive funding from the foundation. Orchard will donate their $10,000 gold award to the Columbia Foundation.

John Willis Homes received the Silver Award for leadership in HomeAid Atlanta, which provides transitional housing for temporarily homeless families and individuals. John Willis, owner of the Duluth, Ga.-based home builder, has been a volunteer for the charity since 2002 and served as its president in 2006 and 2007.

Derrick Custom Homes in New Richmond, Wis., received the Bronze Award for building a handicapped-accessible home at cost for Sgt. John Kriesel, a Minnesota National Guardsman who lost both of his legs in a 2006 roadside bomb attack near Fallujah in Iraq.

Five other builders received Honorable Mentions from the Endowment. Each received $1,000 for the charity of their choice: • Dan Rawls Company in Piedmont, S.C., for renovations to the Ronald McDonald House of Greenville.

• L awrence F. Fiano Builders Developers and Northeast Foundation Coating LLC in Bolton, Conn., for building a house for an injured Iraq war veteran.

• Pardee Homes Las Vegas for renovating a children’s shelter in Boulder City, Nev. • Emmer Development Corporation in Gainesville, Fla., for their “Building Hope” initiative and environmentally friendly shopping bag program.

Continued on page 62 www.homebuilders.org

May/June 2008 MID-ATLANTIC BUILDER

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corner features remodeler Spring Bathroom Renovations…. Think Green!

By Cheryl Crowther Even in this troubled new home construction market, there is still growth in the renovation and remodeling sector of our business. Home owners are making investments in their homes by updating their bathrooms and kitchens with high functioning and high style products.

Everyone is looking for a competitive edge to gain market share. You might just find that edge in the latest environmentallyfriendly water conserving products, also known as “green” products.

The bathroom is one of the most water intensive rooms in the home. In just 10 years, nearly 30 million homes have undergone renovation and remodeling projects which have exceeded 10 percent of the total home value. The majority of these projects have been completed in homes which are valued at over $250,000.

Two–thirds of these projects have taken place in homes acquired since 1990 (Harvard University JCHS 2005).

According to a survey commissioned in 2005 by the American Society of Interior Design (ASID), six out of ten U.S. owners say they would consider integrating sustainable design practices (eco-friendly/ green) into a future home improvement project, provided those enhancements were cost-competitive (ASID 2005).

With green building going mainstream, the findings suggest that the remodelers market for sustainable or green products for the home may be more extensive than previously reported. If the bathroom was built before 1994, the toilet is using at least twice as much water as the current model toilets and your shower is using triple today’s standards. Toilets are the single largest user of water in the home, accounting for up to 28 percent of total water use. Roughly 26 billion gallons of water 60

MID-ATLANTIC BUILDER May/June 2008

are used each day in the United States, of which 5.75 billion gallons go to operating the toilets. When selling your green product to the home owner, talk benefits.

Save Water, Save Money!

Thinking and acting green can be easy, thanks to federal government standards for maximum water use set by Energy Policy Act of 1992 and the new Water Sense® Labeling launched in 2006.

Water Sense®, a partnership program sponsored by the U.S. Environmental Protection Agency, makes it easy for Americans to save water and protect the environment. Look for the Water Sense® label to help you choose quality, water-efficient products. Many products are available which do not require a change in the homeowners’ life style.

Replacing an old toilet with a new model will instantly save water and money- up to $50 a year. A new 1.6 gallon-per flush (gpf) toilet costs roughly $300.00 installed, paying for itself in six years and cutting water usage in half – saving over 180,000 gallons of water during that period. For even greater water conservation, install the dual flush toilet with the option of using only 0.8 gpf for liquid and 1.6 gpf for solid waste.

Replacing an old showerhead with a Water Sense® product is inexpensive and quick, cutting water use up to 70 percent.

An average household faucet accounts for 15 to 18 percent of the total indoor water use and bathroom faucets tend to be the most heavily used. When replacing the bathroom faucets look for the Water Sense label or chose faucets using 0.5 or 2 gpm to save more water.

The total annual cost savings to the consumer and the environment can be

EPA Water Sense® Toilets: Kohler Wellsworth Pressure Lite Kohler Highline Pressure Lite Kohler Cimarron Comfort Height Sterling Rockton Sterling Karsten Kohler San Raphael Kohler Waterless Urinal Gerber Ultra Dual Flush Gerber Ultra Dual Flush

dramatic. According to the U.S. EPA, the average household spends as much as $500 per year on its water and sewer bill. By making just a few simple changes to use water more efficiently, the savings could total $170 per year. If all U.S. households installed water efficient appliances the country would save more than 3 trillion gallons of water and more than $18 billion dollars per year.

With all the new technologies, the Water Sense® products are becoming the green solution and continue to be efficient and perform well. These products, with their reduced cost premiums, are becoming much more widely used in the industry, both in residential and multiunit housing. n Cheryl Crowther is the corporate showroom manager at Thos. Somerville Co. She can be reached at CheCrowther@tsomerville.com.

These and other Green products can be found at www.tsomerville.com.

Resources: GreenHome Guide’s product directories and KnowHow article, U.S. Green Building Council, www.regreenprogram.org US Environmental Protection Agency: www.epa.gov./watersense/ Building Green.com www.homebuilders.org

industrynews Kohler Co. Emphasizes Water Conservation The kitchen and bath industry is buzzing as 2007 marks the 15-year anniversary of the national Energy Policy Act‚ which created tighter standards for water-efficient products such as toilets‚ faucets and showerheads. Low-flow water faucets have been added as the next product eligible for the EPA’s WaterSenseSM label. Consumers now can purchase WaterSense-listed faucets, which ensures the faucet is a water-efficient, high-performing product. For more information, visit www.kohler.com.

Donald F. Lynch, Jr., Is Awarded Certified Aging-In-Place Specialist (CAPS) Designation Donald F. Lynch, Jr., President of Lynch Construction, Inc., has been designated a Certified Aging-in-Place Specialist (CAPS) by the National Association of Home Builders (NAHB) Remodelers, thus identifying Lynch as one of a select few in the nationwide building industry possessing skills and knowledge specific to making home modifications for Aging-in-Place.

Lynch Construction, Inc., a family-owned Maryland business headquartered in Churchville, Maryland, has provided residential and commercial remodeling in and around the Harford and Baltimore County areas and in Baltimore City, since its founding in 1958 by Donald F. Lynch, Sr. Donald F. Lynch, Jr., who in 2006 celebrated his 25th year as President of Lynch Construction, has also achieved the designation Certified Master Remodeler (CMR), and is a Charter Member of the Certified Master Remodeler classification. Lynch is 2008 President of the HBAM Remodelers Council. For more information on Lynch Construction, visit www.lynchconstruction.com.

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Daft-McCune-Walker Promotes Kristy Bischoff, P.E., to Program Manager Daft-McCune-Walker, Inc. (DMW), a multidisciplinary land development consulting firm, announced the promotion of Kristy Bischoff, P.E., to program manager.

Bischoff, who recently received her Professional Engineer’s license, previously served as deputy program manager. She was recently honored with The Baltimore County Soil Conservation District’s 2007 Consultant of the Year award. For more information on DMW and its services, visit www.dmw.com.

George Drallios Named VP of Design for The Athena Group George Drallios joins The Athena Group as Vice President of Design. In this newly created post, Mr. Drallios is responsible for planning, coordinating and executing the design of all of Athena’s projects from the conceptual phase through schematic design. He also coordinates and oversees third party architectural firms for the construction design document process and reviews final design for quality control and assurances. For additional information, visit www.theathenagroup.com.

K Bank Hires John A. Giovanazi as Vice President of Commercial Lending Owings Mills-based K Bank, a leader in the regional banking industry for more than 45 years, announced that John A. Giovanazi has joined the K Bank team as the newest vice president of commercial lending. In his new position at K Bank’s Cockeysville branch, Giovanazi will be responsible for developing and managing relationships with new commercial clients. For more information, visit www.kbank.net.

Bradco Supply Marks the End of One Era As It Begins a New One Avenel, New Jersey—Barry Segal, founder and CEO of Bradco Supply, has officially announced his retirement. It was back in 1966 when Barry decided to strike out on his own, leaving a position with H. Verby & Company in Long Island to open a small roofing supply business in central New Jersey. Although Bradco Supply is closing the door on one era, another door is opening on a bright future. Brad Segal, Barry’s oldest son, has been named chief operating officer in addition to being the company’s President. Martin Segal, Barry’s youngest son, serves as vice president. Ted Boylan, the founder of Admiral Supply, succeeds Barry Segal as CEO.

H & H Rock Companies Announces Three Executive Promotions H&H Rock Companies, has promoted Bradd M. Caplan to vice president of commercial development, Joseph E. Link to vice president of residential development and Thomas J. Gessner, CPA, to executive vice president.

As Vice President of Commercial Development, Mr. Caplan oversees the acquisition, development, management and sales of H&H Rock Companies’ commercial real estate assets. He is also responsible for sourcing, negotiating and structuring development and acquisition opportunities for the company.

As Vice President of Residential Development, Mr. Link is responsible for leading the creation of new communities through his collaboration with attorneys, land planners, civil engineers, May/June 2008 MID-ATLANTIC BUILDER

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industrynews site contractors and professional agencies.

Executive Vice President, Mr. Gessner will also retain his position as chief financial officer. Having specialized for 20 years in the financing of real estate development, he will continue to provide extensive accounting and tax expertise and ensure compliance with all regulatory requirements n

Continued from page 59 • L ennar Homes in Roseville, Calif., for building a cottage at the River Oak Center for Children, a home for psychologically disabled kids.

Entrants were reviewed by a panel of builders and industry professionals and evaluated based on member participation, community impact, creativity and history of charitable giving. Honorees were selected from a pool of entrants that included builders, remodelers and developers. n ABOUT THE NATIONAL HOUSING ENDOWMENT: The National Housing Endowment, established in 1987 by the National Association of Home Builders, will help the industry develop more effective approaches to home building, enhance the ways we educate and train future generations of leaders in residential construction and increase the body of knowledge on housing issues. We will do so by supporting innovate and effective programs that further education, training and research. The cornerstone of National Housing Endowment’s education program is the Homebuilding Education Leadership Program (HELP) which is a long-term commitment to award seed grants to leading two- and four-year colleges and universities to help them create, expand, or enhance existing residential construction management programs or develop new programs in that academic area. For more information about the National Housing Endowment, please visit the National Housing Endowment Web site at www.nationalhousingendowment.org.

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notableproducts Steamist® Offers New Steam Head and Updated Controls

Wine Cellar Innovations Expands Two Product Lines

Steamist is introducing two new controls and an updated steam head. The new TC-150 and TC-125 controls are similar in design to the TC-135 and TC-110 models, respectively. While the TC Series remains the value priced option for Steamist controls, the new models offer a more contemporary look. Rather than the traditional octagonal shape, the updated controls are square, sleek and simple. The TC-150 and TC-125 also feature the latest technology, incorporating a blue digital readout. For more information, visit www.steamist.com.

Braise Be - A Range That Slow Cooks and Handles Crowds

As wine cellars continue to move toward becoming mainstream offerings in upscale homes, Wine Cellar Innovations expands one of its most popular product lines. The Designer Kit Series of modular kit racks now features three additional racks: one-column, two-column, and four-column racks. The addition of these racks allows customers more flexibility in fitting racking into an area. In addition to the expansion of the original Designer Kit Series, the company simultaneously added racks to the Stackable Designer Kit Series. For more information, visit www.winecellarinnovations.com.

Wolf introduces new line of kitchen countertops

The GE Profile™ Double Oven Freestanding Range offers the largest freestanding total oven capacity in the industry to cook two different dishes — at two different temperatures — at the same time. Available in two 30” configurations — each with a spacious 6.6 total cu. ft. of cooking space — both ranges feature the 2.2 cu. ft.-capacity upper oven that is ideal for all types of baking, broiling and roasting. It’s the spacious lower oven (4.4 cu. ft.) that features a slow cook mode that home chefs will appreciate.

Wolf Distributing Company announced that it now carries kitchen countertops as part of its exclusive Palette Collection.

The new offerings include a line of ¾” natural stone kitchen countertops designed to provide luxury at an affordable price.

The Palette Collection natural stone kitchen countertops are available in three natural granite colors and five profiles. By creating an affordable natural stone option, Wolf has made it easier for homeowners to upgrade from standard laminate and for new-home builders to add a touch of luxury at a value price. For more information, visit www.wolfdistributingco.com. n

The Home Builders Association of Maryland presents

A Builders’ Tour of frAnce

October 2008 Paris & Provence

Earn Your Way to France with the HBAM Membership Recruitment Program

Tour Features N Round trip air to Paris, from Dulles

International Airport N Transfers between airports and hotels N 8 nights accommodations at exclusive hotels N Breakfast daily N Two full days of guided sightseeing N 1 dinner in each city N Private deluxe motor coach transportation on day trip to Aix en Provence and Avignon N Special building industry focus on each tour with experts in each city N Tour is partially deductible as a business expense* N Exclusive gourmet dinner (jacket and tie) aboard Bateaux Mouche on the Seine

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$3,975 per person/double occupancy (single supplement available) A deposit of $800 per person will confirm your space on this special tour. For reservations, call Via WAYE Travel & Cruises at 410-828-5655 or 800-852-3113. *Ask your accountant to determine deductibility

“This was our first time to Europe and it was entirely stress free and truly the experience of a lifetime. We can hardly wait for France in 2008.”

Dave and Julie Chmura Elegant Builders

Make your reservations now and then rack up voucher credits in our membership campaign and see how much of France you can get for free! Don’t wait, make your plans and reservations now.

Due to the exclusive facilities included in this very upscale trip, reservations are necessarily limited.

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