Mid-Atlantic Builder July/August 2011 by Maryland Building Industry Association

GREEN BUILDING ISSUE

MID-ATLANTIC

Vol. 53 Issue 3 July/August 2011 www.homebuilders.org

COMING SUMMER 2012 The Maryland Center for Housing, New Home of the Home Builders Association of Maryland

PLUS 2011 General Assembly Report New OSHA Residential Construction Regulation

MID-ATLANTIC BUILDER JULY/AUGUST 2011

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JULY/AUGUST 2011 MID-ATLANTIC BUILDER

July/August 2011 Vol. 53 Issue 3

MID-ATLANTIC

PUBLISHER John Kortecamp

EDITOR Kristin Josephson Hogle, Editor communications@homebuilders.org

ADVERTISING Chris Baughan, Advertising Sales Manager 410-265-7400, ext. 121 chris@homebuilders.org

DESIGN Heather Winkel, Art Director Kristina Hopkins, Graphic Designer Network Design Group ndg@networkmediapartners.com

HBAM LEGAL COUNSEL Linowes and Blocher

MID-ATLANTIC BUILDER

Maryland Center for Housing

2011 General Assembly Report

New OSHA Residential Construction Regulation in 2011

New HBAM headquarters coming in 2012.

The industry found success on priority issues.

Departments 4 6 8 42 44 46

Publisher’s Message President’s Message Events New Members Stats and Facts Government Affairs

OSHAs recently announced new fall protection requirements.

Pages 23-26

Why is Concrete Green

Improving Indoor Air Quality with Green Cabinetry

The beneﬁts of using concrete over other alternatives.

Pull-Out Section MID-ATLANTIC

Mid-Atlantic Builder text and cover pages are printed on SFI certiﬁed Anthem Matte using soy ink.

A supplement to Mid-Atlantic Builder

Electric Vehicle Charging Stations Unveiled Recognizing Value

Lenders need to recognize the value of green homes.

Also

40 Green Building Building Homes—Building Success

ECO BOX

• The Sustainable Forestry Initiative® program promotes sustainable forest management.

Local public parking garage is a new hub for rechargeable vehicles.

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

Remodeler

Cabinets can improve indoor air quality.

is a 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.

MID-ATLANTIC BUILDER JULY/AUGUST 2011

Corners Maryland Community Builders Foundation BRAC

HBAM Remodelers Council Gold Award

Owings Brothers Contracting, Gourment Kitchen Project $100 - $150K Kitchen Addition

Departments

Before & After President’s Message New Members Remodeler News

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JULY/AUGUST 2011 MID-ATLANTIC BUILDER

2011 HBAM Leadership Photo Credit Stuart Zolotorow

Executive Committee Bob Goodier President Rod Hart President Elect

publisher’smessage It’s Never Too Early to Start Saying “Thanks” While the ribbon cutting ceremony to mark the official “opening” of the Home Builders Association of Maryland’s new headquarters in Howard County is approximately a year away, I want to take this opportunity to recognize several member companies who have already made substantial contributions to our/your new home; even before we have broken ground on the building.

First and foremost, we have our site, in the geographic center of the state, thanks to a very generous “lead gift” from Stewart Greenebaum, of a fully permitted pad site in the commercial district of Maple Lawn. Next, our building concept, design and layout, has been provided though the generosity of Shannon Comer Architects, Inc. Shannon has been exceedingly generous with the donation of the time and talents of her team to come up with a building concept that has garnered universal praise and compliments. Carl Gutschick and his firm Gutschick, Little & Weber, P. A. have provided all the civil engineering work on the site and have continued to advise us as we go through the early stages of the project. Jim Bartucca of Fastsigns.com/544 has very generously donated signage promoting the site and the building. Their signs were first displayed at Builder Mart and can now be seen at our offices and at our many events. They will soon be erecting a large 4 x 8 “Coming Soon to This Site” sign on the building lot.

Scott Armiger First Vice President- 2011 Scott Barhight Associate Vice President Cynthia McAuliffe Secretary Theresa Leatherbury Treasurer Eliot Powell Immediate Past President

One of our many donation options is a personalized paver in the patio/walkway entrance to the building. All pavers have been donated by Leisure Specialties who will also design the patio/walkway entrance and install the pavers. Theirs will be one of the final installations at the site, but their contribution to help us raise cash was literally one of the very first. Check out the paver form on page 13 of this issue. Literally, dozens of others have volunteered their materials and/or labor; too many to identify here, but all of whom will receive due recognition and thanks as we progress with the building. From structural components to fixtures, from roofing to foundation, the list is growing weekly. The vast majority of the “build” lies before us and there is ample opportunity for your contribution and participation. Donor benefits are listed on page 14 of this issue. We’d love to have you join us.

Chapter Presidents

John Kortecamp HBAM Executive Vice President

Alternate Directors

Evan Gilligan Anne Arundel Councy Jeremy Rutter Howard County Robb Aumiller Baltimore County Sean Davis Baltimore City Dan Whitehurst Upper Chesapeake Paul Mueller Carroll County

Council Presidents Taylor Classen HBAM Remodelers Dennis O’Neil Sales and Marketing Council Michael Greenspun Land Development Council Bill Zahler Maryland Residential Green Building Council

HBAM Board of Directors Tom Baum Steve Breeden Mike Breen Ron Carstens Pat Costello Steven Gilman Chickie Grayson Joe Gregory Joe Hikel Steve James

Jay Hergenroeder Jeff Ott Leslie Rosenthal Matt Helminiak Matt Wineman

Sandy Marenberg James Mathias Tim Morris Dan Murtaugh Rich Pezzullo Steve Rubin Jake Ruppert Kevin Sapp Susan SongyOwens

Paul Krakovsky Paul Mueller Tim Naughton Yana Peifer

Ex Officio MemberS Chris Rachuba Building Industries Foundation Frank Hertsch PAC Jack Orrick 4

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JULY/AUGUST 2011 MID-ATLANTIC BUILDER

Visit www.homebuilders.org for an Photo Credit Stuart Zolotorow

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 The Value of Your HBAM Membership Recently, I had the opportunity to meet and have lunch with a group of past HBAM leaders and industry stalwarts with the self imposed title of “The Old Timers Group”. This group is comprised of

past builders, leaders and associates including former HBAM presidents and board members. It was a chance for me to reconnect with some old friends and update them on the current status of our Association and our future direction. A casual observance of this group would have suggested that they were war veterans but, in reality, they were veterans of past recessions and downturns. They acknowledged that the current recession is particularly heinous. In past editorials, I have pushed the responsible and pragmatic reasons to join and be active in HBAM. We forget the social and instructional reasons. Prior to starting my company almost 30 years ago, I asked several established builders, Floyd Grayson, Jim Greenfield, Phil Stevens and Lee Rosenberg, as many questions as they would tolerate. None of these gentlemen will remember me asking these questions but I have remembered every word of their counsel. They were unselfish and gracious with their thoughts and experience. At “The Old Timers” luncheon, I reminded Lee

You never know — one suggestion or insight gleaned from a colleague might take you in a direction you might not otherwise go.

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Rosenberg of how he helped me many years ago. My company has used and continues to use Lee’s, Jim’s, Floyd’s and Phil’s counsel in most facets of our business. There are dozens of reasons to be an HBAM member but don’t forget that one of them is the value of connecting with peers and associates. You never know — one suggestion or insight gleaned from a colleague might take you in a direction you might not otherwise go.

Bob Goodier 2011 HBAM President

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JULY/AUGUST 2011 MID-ATLANTIC BUILDER

Events

CALL 410-265-7400 for information on registration for our events or visit www.homebuilders.org.

The Maryland Sustainable Growth Commission and Plan Maryland September 21, 2011, 8:30 – 10:30 a.m. Martins West

A new direction for land planning in Maryland. Continuing Real Estate Credits are pending.

Celebrity Chef Night October 13, 2011, 5:30 – 9:00 p.m. Martins West Chef Night Goes Globetrotting

The Home Builders Association of Maryland welcomes all builders, remodelers and developers as celebrity chefs. Come enjoy their culinary excellence as they feature delicious food from around the world. Chef night is our second largest event with over 400 attendees. A fun and social event that features a silent and live auction boosting over 150 amazing items for home, business and pleasure.

The Land Development Council Excellence in Community Development Awards September 22, 2011, 6:00 – 9:00 p.m. The Maryland Historical Society

This 18th annual event recognizes awards of excellence for projects and people concentrating on the land development aspect of the home building industry.

Builder Mart 2012 March 21, 2012 Maryland State Fairgrounds

It’s not too early to start thinking about exhibiting in Builder Mart. The best exhibitor spots are reserved early for this one-day show. It’s the perfect place to find builders, remodelers, purchasing agents, project supervisors, sales managers and marketing directors. They will be looking for everything from design tips, to tools, to a variety of professional vendors and suppliers. Be in front of the decision makers who are building the new market. Visit www.buildermart.org for details.

Maryland Community Builders’ Foundation The Maryland Community Builders Foundation, the charitable arm of the Home Builders Association of Maryland, was formed to promote shelter related activities for those less fortunate throughout the Baltimore region. The Foundation focuses on ‘sticks and bricks’ projects that provide shelter or shelter improvements for needy families. Our strategy is to provide shelter-related charitable services in the region by calling upon HBAM members for donations of labor, materials and funds. Won’t you help us help our communities?

Don’t stand on the sidelines—Get involved today

Visit our website today. It’s easy to get involved: • Donate Time and/or Materials • Request Assistance • Share Your Projects with Us and get PR • View our Latest Projects

www.buildingindustriesfoundation.org

MID-ATLANTIC BUILDER JULY/AUGUST 2011

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2012

BUILDER

BUILDERMART.ORG

WEDNESDAY, MARCH 21, 2012 • 11 am-6 pm • MARYLAND STATE FAIRGROUNDS • TIMONIUM, MD

Together We Prosper Now, more than ever, it is critical to maintain the strength of our Association. With the home building industry continuing to change and evolve, business between members will allow us to stay strong and prosper! Join us at Builder Mart 2012, the Mid Atlantic’s oldest and largest building industry tradeshow. Builder Mart is the only one day event featuring the latest building trends, products, services, educational seminars, and our Renew relationships, and start new ones with the 5,000 prospects who will attend Builder Mart 2012, all in one place, all in one day! Don’t miss this opportunity to build your business! You will speak directly to the decision makers who are looking to do business with you.

Reserve your booth space now by contacting: Chris Baughan, Sales Manager 410-265-7400, ext. 121 www.homebuilders.org 2011 MID-ATLANTIC BUILDER 9 Maryland State Fairgrounds • Timonium, MD • JULY/AUGUST BUILDERMART.ORG

coming summer 2012

The Maryland Center for Housing Y

ou’ve seen the signs and promos and heard the excited chatter. The Maryland Center for Housing is coming in 2012. The longtime vision of a new headquarters for the Home Builders Association of Maryland is quickly becoming a reality. “It has long been my goal to get the Association that represents the home building industry a home of its own,” said John Kortecamp, Executive Vice president of the thousand member trade association. It started back in May of 2010 when the campaign for a new headquarters for HBAM was launched. In those first couple of months, a select committee met to prepare to launch the ambitious campaign for the new building. They had two primary objectives for the new building according to Kortecamp; one relating principally to the Building Industries Foundation, the non-profit arm of HBAM, and the other to the association itself. The Foundation was created in 1999 to respond to requests for assistance in charitable housing/shelter related projects. “There is much more we could do and much more we would like to do,” said Christopher Rachuba, Chairperson of the Foundation. “There is one major constraint: financial resources. The Foundation has no significant or continuing source of income,” he added. The vision is for the Maryland Center for Housing to be owned, debt free, by the Foundation and leased to HBAM. The rent income paid to the Foundation will provide a stable, long-term funding source to endow the Foundation and support its charitable, education and research activities. “This revenue stream will allow us to take our charitable activities to another level,” said Rachuba.

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“It has long been my goal to get the Association that represents the home building industry a home of its own” John Kortecamp HBAM Executive Vice president

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JULY/AUGUST 2011 MID-ATLANTIC BUILDER

Regarding the Association, “The objective is to have a physical presence in Central Maryland that stands as a testament to the strength, vitality and endurance of the industry and the Association that represents it,” said Kortecamp. One of the first goals of that early campaign was to secure a site for the headquarters and the first visit was to industry icon, Stewart Greenebaum. Known throughout the industry for his success in land development and his philanthropy to the community, Stewart generously donated a fully permitted parcel in the commercial district of Maple Lawn, his award winning mixed use, smart growth development. Located in southwestern Howard County, the site is convenient to Interstate 95, US Route 1 and Maryland Routes 29 and 32. According to John Kortecamp, “This first step was huge and allowed us to move forward sooner than we originally envisioned.” One donation quickly turned into several and the excitement began to grow as word of a new headquarters made its way through the crowd at HBAM’s annual tradeshow, Builder Mart. Donations and commitments streamed in as the word spread. Shannon Comer of Shannon Comer Architects stepped up and very generously donated her company’s time and expertise to design the sophisticated 10,000 square foot building that will stand on the parcel. The design includes a usable show kitchen, first ﬂoor work rooms for visiting members, a large board room and office space for the Foundation. Many other companies have been quick to donate their product, time and expertise to the new building. “Due to the access to the building industry resources, HBAM members have a unique ability to provide labor and materials that would otherwise cost significantly more,” said Chris Rachuba. He explained that this is one of the reasons that the Foundation has been able to help members of the community and why the donation process for the new building will be successful.

This ﬁrst step was huge and allowed us to move forward sooner than we originally envisioned. Recently, Shelter Systems has agreed to donate the trusses and an agreement for a state-of-the-art foundation for the building is underway. The Fretz Corporation together with Design House Kitchens will design a fully functioning show kitchen to use for events and inspire visitors. Commitments have also come in for the bath fi xtures, window treatments, title services, engineering work and much more. A significant donation that came in early on was for personalized pavers that will be installed in the patio/walkway entrance to the building donated by Leisure Specialties. The campaign to sell the engraved pavers is a primary funding source for the building and has been extremely successful. There are two sizes available and an order form for the pavers can be found on page 13. Kortecamp explains that there are many options to make contributions and be part of the new building. “The benefits of being a donor are significant,” he says. Contributions are tax deductable as the Foundation is a fully approved 501-C(3) non-profit organization and benefits include recognition in print publications, electronic publications and online. Significant recognition throughout the build and at the new building are also included. A complete list of benefits and donation options can be found on page 14. It is not too late to make your commitment to contribute to the association’s new headquarters. Kortecamp urges, “Whether your donation is made in your name, your family’s name, your company’s or your product’s, you will be establishing a legacy for yourself within the industry at the facility where the industry comes together to conduct its business.” ■

Proposed Floorplan A large board room and open ﬂoor plan highlight the two story 10,000 square foot building

MID-ATLANTIC BUILDER JULY/AUGUST 2011

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2011 General Assembly Report BY KATIE MALONEY

ver 2,300 pieces of legislation were introduced during the 2011 Legislative Session. The most newsworthy issues included gay marriage, The Dream Act (allowing in-state tuition rates for illegal immigrants), off-shore Wind Power and state employee pension reform. As always, the budget was the subject of contentious debate between Democrats and Republicans. There was no shortage of legislation of interest to the development industry. Local Legislative Committee members reviewed 169 bills on a wide range of topics. The priority issues facing the industry this year included a ban on new conventional septic systems in major subdivisions, fertilizer restrictions, tolling development permits and approvals and a requirement to build homes with visitable, or handicap accessible, components. Here is a brief summary of the highest priority issues: 16

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Environmental Issues Septic Systems: The use of individual septic systems took center

stage during the Session when the Governor announced during his State of the State Address that he was introducing legislation to ban their use in new subdivisions. Senate Bill 846/House Bill 1107 would have banned individual systems in subdivisions of 5 or more units, requiring a shared facility to be built. In addition, the bill sought to prevent farmers from subdividing their land more than once in perpetuity. The bill was opposed by the development industry, the Counties and the rural democrats and neither the Senate nor House version received a vote. After Session ended, the Governor Issued an Executive Order announcing the creation of a task force to study the issue and make recommendations by the end of 2011. Once the task force releases its recommendations, we expect to see legislation in the 2012 General Assembly. Fertilizer: The Chesapeake Bay Commission crafted legislation,

SB 487 and HB 573 to restrict the use of fertilizer application, require the use of slow release nitrogen in fertilizer and create a certification program for licensed residential fertilizer applicators. In addition, the measure requires the University of Maryland to update the application standards every three years. MSBA supported these measures as a means to reduce the urban nitrogen loading from lawn runoff. Both bills passed. Green Building: 3 green building measures were considered dur-

ing Session this year. The first 2 were sought by the builders association, to further the use of the ICC700 National Green Building Standard for residential construction. HB 630 requires the Department of Housing and Community Development (DHCD) to promote the use of the ICC-700 program or the LEED-H program. This measure was passed and signed into law. HB 512 sought to create a rebate program for ICC-700 homes to provide incentives for the construction of green certified homes. The bill failed because of fiscal constraints, but the issue is still being pursued by green builders. The 3rd bill was House Bill 972 which requires DHCD to adopt the International Green Construction Code upon completion of the Code in 2012. This measure passed the Legislature and is awaiting signature.

Land Use Issues

of Environment (MDE) to establish an expedited permit process for construction permits. The House Environment Committee amended the bill to restrict the expedited process only to certain types of construction. However, opposition on the House floor to the restrictions forced it back to Committee, killing the measure. Rural Legacy: House Bill 1241 sought to restrict the use of land des-

ignated in a rural legacy area to only agricultural use for all parcels over 5 acres. The bill was not voted on and died in Committee.

Real Property/Common Ownership issues Visitability: There were 2 measures introduced this year that would have required the construction of visitable homes. House Bill 981 would have required 50 percent of all single family subdivisions of six or more units to have visitible features including a zero-step entrance. House bill 437 would have required builders of subdivisions with 11 or more units and 3 or more model homes, to build 1 of the models with visitible features. MSBA opposed both measures but negotiated amendments to HB 437 revising the language to require a mandatory option for builders of subdivisions of 11 or more units. The amended bill passed the Legislature is awaiting signature. Condominium Governing Body/Bonds: Senate Bill 995 would require the governing body of a condominium to convene at least 2 meetings a year, require a developer to appoint a unit owner to the governing body once 25 percent of the units are sold and provide notice to the unit owners when a bond will be released. This bill died in the Senate Committee but is expected to be introduced again in 2012. Home Owner’s Association Voting Prohibition: House Bill 1339

would prohibit a developer or their affiliates from voting in the election of a home owner’s association governing body. The bill died in Committee but may be introduced again next year. Later this year we expect the Governor to call a Special Session for Congressional Re-districting. During this special session, which could last 3 weeks. We expect to see a stormwater utility fee, which is similar to the bay restoration fee, but would be earmarked for stormwater retrofit projects. This is an issue the industry has supported in the past, although we will have to wait and see any proposal before making a final position. n

Tolling: House Bill 1050 was a measure promoted by the builders associations to extend the time period for tolling ordinances state wide. The first tolling bill passed in 2009 and required local jurisdictions to pass ordinances to “freeze” or toll construction approvals and permits as a result of the depressed real estate market. The tolling period expired in 2010 and HB 1050 sought to extend the period until December 2012. The legislation passed the House but died due to lack of action in the Senate.

The 2011 General Assembly Session Report provides a synopsis of the major issues considered by the Legislature affecting the building industry, a progress report of all legislation monitored during the session, voting records of Delegates and Senators on selected issues and statistical information showing the number and types of bills followed by the Maryland State Builders Association Legislative Committee.

Expedited permits: This measure would have required the State Highway Administration (SHA) and the Maryland Department

Katie Maloney is the principal with Maloney and Associates and can be reached at 410-263-0070 or katmaloney@verizon.net.

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Residential Fall Protection OSHA Implemented Key Changes to Guidelines in June

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ince 1995, the Occupational Safety and Health Administration has required workers engaged in residential construction who are working six feet or more above a lower level to be protected by conventional fall protection (i.e., guardrail systems, safety net systems, or personal fall arrest systems). However, if an employer can demonstrate that conventional fall protection is infeasible or presents a greater hazard, OSHA allows the use of alternative fall protection measures for particular types of residential construction work. The alternative fall protection measures that will be used to eliminate or reduce the possibility of workers falling must be included in a written, site-specific fall protection plan meeting the requirements of OSHA’s fall protection regulation (29 CFR Part 1926, Subpart M). What was required beginning June 16, 2011? On Dec. 16, 2010 OSHA rescinded STD 03-00-001 - STD 3-0.1A - Plain Language Revision of OSHA Instruction STD 3.1, Interim Fall Protection Compliance Guidelines for Residential Construction which had been in place since 1995. This directive allowed employers doing specified residential construction activities to comply with the requirements of OSHA’s Subpart M by implementing alternative fall protection and work procedures prescribed in the directive, however without a prior showing of infeasibility or greater hazard and without a written fall protection plan. OSHA did not intend STD 3.1 to be a permanent policy and it has been replaced by STD 03-11-002 Compliance Guidance for Residential Construction, which became effective June 16, 2011.

The key changes for those engaged in residential construction include: Employers will need to follow 29 CFR 1926 Subpart M Fall Protection Regulations. Employers will be required to demonstrate the infeasibility of the required conventional fall protection systems or that such systems create a greater hazard if using alternative fall protection measures and a fall protection plan. The employer has the burden of establishing that it is appropriate to implement a fall protection plan. A qualified person (i.e., person with a degree or extensive experience and who has the ability to solve fall protection problems at the jobsite) must develop a site-specific, written fall protection plan when alternative fall protection methods are used. A single, written fall protection plan can be developed for repetitive use (e.g., for a particular style or model of home), so long as the plan fully addresses all issues related to fall protection at each site. The use of alternative fall protection measures is limited to “residential construction”, meaning (1) the end-use of the structure being built is a home (i.e., a dwelling), and (2) the structure being built is constructed using traditional wood frame construction materials and methods (which also includes cold-formed sheet metal stud framing and masonry brick or block construction). Slide guards will no longer be permitted to be used in lieu of conventional fall protection methods during roofing work (removal, repair, or installation of weatherproofing roofing materials, such as shingles, tile and tar paper). However, slide guards may be used as part of a

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written, site-specific fall protection plan that meets the requirements of 29 CFR 1926.502(k) if the employer can demonstrate that the use of conventional fall protection would be infeasible or create greater hazards. When roofing work is performed on low-slope roofs (i.e. 4 in 12 pitch or less), safety monitoring systems can still be used in conjunction with a warning line system to protect workers on the roof. When such a roof is 50 feet or less in width, a safety monitoring system can be used alone and without a warning line system. Safety monitoring systems must meet the requirements of OSHA 29 CFR 1926.502(h). For more information about Fall Protection for the Residential Construction Industry, contact the National Association of Home Builders Labor, Safety, & Health Policy Department at 1-800-368-5242, ext. 8507. • Residential Fall Protection related Web Site Resources: • National Association of Home Builders www.nahb.org/ fallprotection • OSHA Residential Fall Protection www.osha.gov/doc/ residential_fall_protection.html n DISCLAIMER: This information is provided as a service of the National Association of Home Builders (NAHB). No legal advice is offered or implied, and no attorney-client relationship is intended or established. These materials are meant for information purposes only; it is not considered a substitute for any provisions of the Occupational Safety and Health Act of 1970 or for any standards written by the Occupational Safety and Health Administration. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.

JULY/AUGUST 2011 MID-ATLANTIC BUILDER

Most Often Cited

OSHA Standards for Construction and Remodeling

Poorly constructed scaffolding is the most frequently cited violation of construction and remodeling standards by the Occupational Safety & Health Administration. Common scaffolding violations cited at job sites included: • Not having the scaffold deck fully floored • Not having the scaffold level or capable of supporting its designated load with the proper use of screw jacks, footings, etc. • Not providing safe access for each scaffold • Not providing proper fall, or falling object, protection — guardrails, midrails, toe boards, screens and debris netting • Not having scaffold components approved by a competent person on the job site • Not having the scaffold inspected daily The other 25 most often cited OSHA standards for construction and remodeling for 2002-2003, included:

Fall Protection Systems

Fall Protection

Electrical Wiring Design and Protection

While fall protection is required so that employees will not fall more than six feet, experts suggest that fall protection be provided for a minimum of four feet.

Ladders Fall protection for fixed ladders is provided so that employees will not fall more than 24 feet and that portable ladders must extend at least three feet above the point of support.

Electrical Wiring Methods

Comprehensive fall protection systems, where applicable, should be in place to avoid citations. Proper systems, such as roof anchorages, only added about $200 to the cost of a house but saved much more than that in workers compensation. Fall protection systems include: • Guard rails with midrails and toeboards • Safety net systems no more than 30 feet below the working level • Safety net systems inspected weekly • Fall arrest anchorages that support 5,000 pounds per employee • Controlled access zones at least six feet from the edge

All handheld tools need to be grounded or double-insulated. Ground fault circuit interrupters (GFI) or an assured equipment grounding conductor program should be in use to avoid citations and injury. Inspectors look for overhead open conductors that are not installed at the proper height —10 feet above grade for job sites in general, 12 feet above grade for vehicular traffic, 15 feet above grade for truck traffic and 18 feet above public streets.

Common violations cited, included: • Not protecting all light bulbs from damage by using a cage, protection screen, etc. • Not protecting flexible cords from damage • Not covering all knockout holes • Not covering all circuit breaker holes • Running cords through walls, ceilings and floors

Head Protection

Stairways

OSHA inspectors cited job sites where hazardous chemicals were present and a written hazard communication plan was not developed or the chemicals were not properly labeled or marked with a warning.

Temporary stairways that were not built to specification were often cited. These specs include: • Stairs must be installed between 30- and 50-degrees. • The rise and tread width must be uniform. • Stairs with four or more risers or rising above 30 inches must have stair rails.

General Safety and Health Provisions To meet this standard, employees must be trained to work safely, use proper tools, store tools safely and have tools guards on power tools.

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Hardhats are required where there is a danger of falling objects, impact or electrical shock and that hardhats should meet manufacturers’ requirements or ANSI Z89 standards. Decals placed improperly on hardhats have been known to transmit electricity and cause serious injury and even death.

Hazard Communication

Aerial Lifts Among the more common violations for aerial lifts were: • Lifts being used by unauthorized or not properly trained personnel • A lack of body belts or lanyards to keep the employee on the basket floor so he would not be thrown • Not using the lifts according to the manufacturers’ recommendations

JULY/AUGUST 2011 MID-ATLANTIC BUILDER

General Electrical Requirements

Fire Protection

Among the general requirements often cited were: • Electrical equipment not meeting the proper NEMA rating • Electrical equipment not protected from damage • Unapproved gang boxes • Spliced flexible cords or cords that are not of continuous length • Circuit breakers that are not properly labeled

Among the requirements for fire protection required at the job site are: • Fire fighting equipment must be conspicuously located. • Fire fighting equipment must be periodically inspected. • A fire alarm should be provided.

Woodworking Tools

Fall protection systems should be reinforced with fall protection training if citations are to be avoided.

Two safety requirements regarding woodworking tools are that: • Saws and sanders are properly guarded. • Each saw and sander must have an anti-start device to protect workers from accidents when power is interrupted.

Scaffolds

Excavations

In addition to the proper placement and use of scaffolds, scaffold citations were given by OSHA inspectors if the scaffold was not built according to the manufacturers’ specifications and OSHA and Scaffold Industry Association standards.

Excavations and trenches should be properly supported and inspected weekly and that an approved ramp or ladder should be located at least 25 feet from each employee in the trench or excavation.

Housekeeping

Lead

In general, job sites littered with garbage, debris and scraps were subject to citations. He said debris should be removed on a regular basis and that forms and scrap lumber should be free of protruding nails.

Potential lead-containing materials needed to be inspected before exposure and that if exposure exceeded the OSHA permissible exposure limit, controls would have to be implemented.

Construction Training and Education

Oxygen and fuel gas cylinders should be separated in storage by 20 feet or by a five-foot high wall that meets OSHA specifications and standards. He also said the equipment should be used by properly trained personnel.

Fall Protection Training

Not only should employees be trained to recognize and avoid hazards, they should be trained to work in confined or enclosed spaces, to work with caustics and other harmful substances and to avoid harmful plants and animals.

Concrete and Masonry Construction To avoid citations: • Reinforcing steel and rebar should have proper impalement protection. • Only qualified employees should perform post tensioning. • R iding in concrete buckets is forbidden.

Scaffold Training Citations are often given when people who work on scaffolds are not trained in how to use scaffolds or recognize hazards. Retraining is conducted when deficiencies are found in the original training program.

Gas Welding and Cutting

Fall Protection in Steel Erection Specific fall protection requirements must be met regarding steel erection. These include: • Each employee engaged in steel erection must be protected from falling more than 15 feet. • Connectors must be provided from falling more than 30 feet or two stories, whichever is less. • A controlled decking zone must be established. n This article was originally printed in Nation’s Building News Online.

Eye and Face Protection To avoid citations, eye and face protection must meet — and be properly marked that it meets — ANSI Z87.1 standards.

MID-ATLANTIC BUILDER JULY/AUGUST 2011 www.homebuilders.org

Mid-AtlAntic

Remodeler A supplement to Mid-Atlantic Builder

Call for Entries

2011 HBAM Remodelers Awards of Excellence www.homebuilders.org/page/RCawards/ Deadline July 22

HBAM Remodelers Council Gold Award Owings Brothers Contracting, Gourment Kitchen Project $100 - $150K Kitchen Addition

Mid-Atlantic

Remodeler

A supplement to Mid-Atlantic Builder

2011 HBAM Remodelers Taylor Classen President

Board of Directors Nicole Bliss Guy Caiazzo Taylor Classen Cheryl Crowther Arif Durrani Tim Ellis Steve Gilman Danny Kalmus Doug Kelly

Yvonne Lienhard Ryan McGinn Jennifer Nugent Bill Patteson Joe Smith Gregory Wall Bob Weickgenannt Howard Warfield

PAST Presidents Bill Rauser John Martindale Dave Chmura

Michael Owings Donald F. Lynch, Jr. Guy Caiazzo

2011 SPONSORs Members do business with members Presenting Members

ChesapeakeHome Magazine

KC Company/Pella Windows

Lynch Construction

Susquehanna Bank

Saratoga Insurance

T.W. Perry

Contact Felicia Fleming at 410-265-7400, ext. 115 about 2011 Sponsorship Opportunities

before&after Owings Brothers Contracting Kitchen Addition This addition required a large structural beam to support the existing second floor bedrooms. The main roof of the addition is a hip with two clipped corners. With this more interesting curb appeal and the investment in the kitchen, the overall cost effectiveness was a good value for resale. The addition was placed to one side of the family room in order to maintain exquisite views of the newly manicured landscaping and new patio. n

events Business Management for Building Professionals

Design/Build Solutions for Aging and Accessibility, CAPS II

September 20, 2011, 9:00 a.m.-5:00 p.m.

September 22, 2011 9:00 a.m.- 5:00 p.m.

This course provides information on the codes and standards, common barriers and solutions, as well as product ideas and resources for the aging-in-place remodeling market.

This course teaches strategies and techniques for building a competitive sustainable remodeling business.

Marketing and Communication Strategies for Aging and Accessibility, CAPS 1 September 21, 2011, 9:00 a.m.- 5:00 p.m.

This course provides a background on the older adult population, communication techniques and common remodeling expenditures and projects. This course provides Builders and Remodelers information and techniques to assist in accessing the agingin-place remodeling market.

Remodelers Council General Membership Meeting October 11, 2011, 8:30 am

Remodeling Award of Excellence Ceremony November 10, 2011

MID-ATLANTIC REMODELER A Supplement to Mid-Atlantic Builder JULY/AUGUST 2011 www.homebuilders.org

president’smessage

Why join HBAM Remodelers?

Mid-Year Update It is hard to believe that we have completed the first half of the year, and despite the hot humid weather, fall is just around the corner. I thought this

would be a good time to provide an update on the Remodelers Council and to let you know what the Home Builders Association of Maryland has been working on for you. The Remodelers Council was very busy during the first half of the year and the Board has been focusing on four primary initiatives. • Increase consumer awareness of the Remodelers Council • Initiate a mentoring program • Increase membership • Continue to push the Awards of Excellence Program Each of these initiatives is designed to help members improve their operations, and thrive in today’s challenging atmosphere. It is important to remember that you do not have to go it alone. As a member of HBAM and the RC there are many resources available to help you run your business. While the Remodelers Council has a singular focus on the remodeling industry, the HBAM and its great staff have worked tirelessly to help everyone in the home building industry. John Kortecamp is on the leading edge of looking for ways to help members compete in today’s environment. John continues to have a strong focus on the impact that governmental regulations have on our industry. Whether it is the new OSHA regulations, septic system design, or the EPA lead requirements; John and the HBAM government affairs group are proactively lobbying for ways to defeat legislation that negatively impacts our industry.

Member Benefits The RC has spent a great deal of effort in the first half of the year addressing business issues that impact its members. During the second half of the year, these efforts will continue, however, there are also several fun social events that you need to be aware off. On October 13th, the HBAM will hold its Celebrity Chef Night. This is an annual event that allows builders, remodelers and associate members to come together for good food and drinks while networking. The proceeds from this event aid HBAM’s charitable efforts and the Maryland Community Builders’ Foundation. On November 10, the Remodelers Council will host its annual gala; the Awards of Excellence. This event is the premier social event for the RC, and provides each member with a chance to showcase their work. Last year over 50 projects were submitted for consideration and 23 won gold awards. I hope you enjoy the balance of your summer, and look forward to seeing you at Celebrity Chef Night and the Remodelers Council Awards of Excellence. Thanks,

HBAM Remodelers offers many benefits to its members. Remodelers benefit from a variety of educational, mentoring and networking opportunities. In addition, the HBAM Remodeler’s serves to improve the quality of the industry and its members through these programs. By promoting certification programs to consumers, members of the council are sought after for their strong professional and ethical principles.

News & Information National: Members of the Council receive a free subscription to Professional Remodeler magazine. Each issue focuses on practical business insights from the country’s leading remodelers. Members also receive NAHB Renews, a monthly e-newsletter about national news that affects our industry. Regional: Members of the Council receive a free subscription to ChesapeakeHome Magazine and are offered special advertising opportunities designed to help them reach upscale homeowners. Local: The council is featured in each issue of HomeFront, HBAM’s monthly enewsletter to promote its members, programs and events. Mid-Atlantic Remodeler is included in each issue of Mid-Atlantic Builder magazine.

Welcome Our New Members Taylor Classen HBAM Remodelers President

Robert Johnson Southern Home Improvement, LLC Scott Eisgrau Southern Trust Mortgage Larry Kramer Lampost LLC Chuck Brooks Lampost LLC Nelson Laur Peak Carpentry, LLC Ready to Join? www.mdremodelers.org The fee is $65.00 per year. For additional information on the HBAM Remodelers Council, contact Felicia Fleming at felicia@homebuilders.org or 410-265-7400, ext. 115.

www.homebuilders.org

JULY/AUGUST 2011 MID-ATLANTIC REMODELER A Supplement to Mid-Atlantic Builder

remodelernews Mentoring Maryland Remodelers The HBAM Remodelers are excited to premiere a new one-on-one mentoring program. The program will offer group roundtable sessions on marketing, lead tracking, prospect qualifying, sales, production, finance and accounting and job costing. According to Mike Owings of Owings Brothers Contracting and former HBAM President and President of the HBAM Remodelers, “Our members have so much knowledge and can share their knowledge with each other to make all of us better.” The mentoring program will begin with a half-day overview of all of the remodeling systems and then progresses to one-on-one mentoring for each remodeler’s specific needs. The second halfday class will be a group roundtable discussion. Whether you are a new company just starting out or an existing company that needs a tune-up in one of these areas, this program is for you. This is the perfect opportunity to share your ideas, learn new systems and better your company. To register, contact Felicia Fleming at 410-265-7400, ext. 115 or felicia@homebuilders.org. Topics Include: • marketing • lead tracking • prospect qualifying • sales • production • finance and accounting • job costing

How Big is Green Remodeling? • 87 percent of remodelers surveyed by NAHB already incorporate low-emmisivity windows into their projects, 70 percent upgrade existing insulation, and 60 percent install argon gas windows. • Over 80 percent of remodelers use alternatives to dimension lumber to minimize the amount of lumber taken from oldgrowth forests, such as recycling from previous structures and using engineered lumber. • 91 percent of remodelers use energy efficient windows and 86 percent install Energy Star®-rated appliances. • 70 percent of remodelers already incorporate recycled or recyclable materials into their projects. • 72 percent of consumers report energy efficient features in a home would influence their purchase decision. • 61 percent of consumers would spend more than $5,000 upfront to save on utility costs.

• The U.S. has about 125 million single-family homes with the majority built before energy-efficiency developments, suggesting a huge market for green remodeling.

Did You Know The NAHB Research Center issues National Green Building Certification to all types of residential construction – new or remodeled single-family homes, new or remodeled multifamily buildings, and residential land developments – that meet the criteria of the ICC 700-2008 National Green Building Standard™. There are four green certification levels for homes available in the Standard – Bronze, Silver, Gold, Emerald. Land Developments can earn One, Two, Three, Four Stars. The National Green Building Standard establishes design and construction practices for residential projects, including: • New single-family homes – Includes detached single-family homes, townhomes, duplexes, tri-plexes, and quad-plexes • New multifamily residential buildings • The residential portion of mixed-use buildings • Additions to single-family homes that equal less than 75 percent of existing square footage • Renovations of single-family or multifamily buildings • Renovations plus additions to single-family homes • Renovations of pre-1980 residential buildings • Renovations that change the use of non-residential buildings into residential uses. Building conversions can be certified using the Green Building Path but not the Green Remodel Path • Individual sections or phases of residential or mixeduse developments • Entire residential or mixed-use land developments and subdivisions Green certified homes incorporate green practices in six categories: • Lot & Site Development • Resource Efficiency • Energy Efficiency • Water Efficiency • Indoor Environmental Quality • Homeowner Education Visit www.nahbgreen.org for more information.

Announcing the 2011 Remodeling Award of Excellence Program Call for Entries Entires due July 22, 2011

21st Annual Award of Excellence program serves three purposes: 1 . To recognize excellence in remodeling design and craftsmanship 2. To create a greater public interest in the remodeling industry 3. To recognize outstanding contributions by individuals to the remodeling industry. Entry packets are now available at www.mdremodelers.org or by contacting Felicia Fleming at felicia@homebuilders.org or 410-265-7400, ext. 115. Remember: Professional awards are a great addition to your marketing program! n

MID-ATLANTIC REMODELER A Supplement to Mid-Atlantic Builder JULY/AUGUST 2011 www.homebuilders.org

LDING I U B N E E GR

BY STEVE TRIPP

Concrete had been used in various forms for thousands of years, but it is only recently that we are discovering how beneficial using concrete can be over other alternatives. Local Materials

Brighter

Concrete is made from raw materials that often times are mined right here in Maryland, decreasing fuel and energy needed to transport these materials and provide for the local economy. Because wet concrete can only travel short distances, plants are local and also support their local communities and economies.

Concrete’s bright color cuts down on the heat island effect and decreases ambient temperatures around a building by 7 to 10 degrees. The bright surface also decreases lighting usage by 30 percent—energy and cost savings that repeat year after year.

Recyclable

Less CO2

Concrete can be recycled when it is finished with its long service life. Chaney Enterprises alone processes more than 100 million pounds of recycled concrete a year.

When added up over the long life cycle, concrete’s many benefits result in carbon savings that dwarf the initial carbon output of the project.

Strength and Durability

Thermal Mass Buildings constructed of concrete have thermal mass, a property that enables the building to absorb, store, and later release significant amounts of heat. This delay and reduction of heat transfer means insulated concrete walls can reduce heating energy use by up to 44 percent and cooling energy use by up to 32 percent. www.homebuilders.org

Recycled Content Concrete can contain recycled content, most commonly as a replacement for cement in the form of fly ash (a byproduct of coal burning) and slag (a byproduct of metal refining).

Often, other materials need frequent replacement; however, concrete can last decades and even centuries in some applications. Infrequent replacement means less use of both raw materials and the energy associated with a construction project. Plus, when concrete is used as a road it increases fuel efficiency by about 4 percent for cars and 7 percent for large trucks.

Steve Tripp is a LEED Green Associate and the Marketing Manager, Chaney Enterprises. He can be reached at 301-932-5000 or stripp@chaneyenterprises.com.

JULY/AUGUST 2011 MID-ATLANTIC BUILDER

GREEN BUILDING

Improving Indoor Air Quality with Green Cabinetry By Chris Wood and Bob Mancuso

MID-ATLANTIC BUILDER JULY/AUGUST 2011 www.homebuilders.org

s I travel, around, I often hear stories about new GREEN homes being built. They talk about energy efficiency, and if you’re lucky, they will mix in 30 seconds about rainwater capture for irrigation and then a final 30 seconds about...of course…cost. I guess it’s great exposure for the US Green Building Council and green building in general. I am all for that. But for a cabinet guy, or for a living breathing human being for that matter, it feels like they’re forgetting something important…indoor air quality. As obvious as it sounds, there are many good reasons to be concerned with indoor air quality. One reason is that we are spending more time indoors. According to the U.S. Environmental Protection Agency, people spend 90 percent of their time indoors, where the air is two to five times more polluted than the air outside. The EPA also tells us that children receive 72 percent of their chemical emissions exposure indoors. If our children’s health is not reason enough, nothing is. Homes used to be built to “breathe.” Yes, we wanted to keep cold air out in the winter and inside in the summer, but less attention was paid to properly sealing and controlling the indoor environment. Not anymore. If you’re building a green or high performance home, it is designed to control every space in, under and over the living area. You will hear this called the home’s “envelope”, a term clearly describing the intent to seal and manage the air inside the home. This makes it even more critical that everything inside a home be a positive, healthy contributor to the indoor air quality. Well, I told you I was a cabinet guy so what does this have to do with cabinets? Simply, we live our l lives in the kitchen so your cabinetry should meet or exceed the healthy product goals you have for the rest of your home. Cabinetry may involve two of the most prolific sources of indoor air polluters…finish and casework materials. For finish, make sure you are looking for low to no VOC (volatile organic compounds) finishes. Although not widely used, the healthiest solution is an all waterborne finish system. You will find proven durability in a waterborne finish and the technology has improved dramatically allowing for deep, rich paints and stains that rival traditional solvent finishes. For casework, the best option is NAF (no added formaldehyde) construction. This will cost a little more. Fortunately, most manufacturers have adopted standards set by the California Air Resource Board. California has decided what formaldehyde levels they will allow to be shipped into their state and that has been adopted as the de facto national standard.

www.homebuilders.org

According to the U.S. Environmental Protection Agency, people spend 90-percent of their time indoors, where the air is two to five times more polluted than the air outside. Whether you are building a green high performance house, remodeling your current kitchen or building a traditional house, your indoor air quality matters. Don’t make your cabinet decision solely on price, “ecofriendliness” or style. Do a little investigating…you can find a solution that meets all three. n Chris Wood is the Director of Customer Service and Sales Support for Executive Cabinetry and is responsible for their green initiatives and certifications. They are a FSC Certified Manufacturer and recently became the first and only residential cabinet manufacturer to achieve the Children and Schools rating from the GreenGuard Environmental Institute. Bob Mancuso is a Key Business Manager with REICO Kitchen and Bath and a member of the Maryland Residential Green Building Council. REICO is a distributor of Executive Cabinetry. For more information about Executive or any of the products and services available at REICO, please call 800-435-2611.

JULY/AUGUST 2011 MID-ATLANTIC BUILDER

GREEN BUILDING

First Public Electric Vehicle Charging Stations in a Residential Community Unveiled The 1,245-space public parking garage is a new hub for rechargeable electric vehicles, offering renters similar “in-home” charging conveniences as homeowners. The Bozzuto Group, a Washington, D.C. area-based residential real estate company has unveiled Maryland’s first public electric vehicle charging stations contained within a residential development at The Fitzgerald, an apartment community located in Baltimore’s Mount Vernon district. A March 31st “plug-in” ceremony attended by local business leaders and officials revealed the stations and demonstrated their use. Bozzuto worked with SemaConnect, a leading developer of wireless networked electric vehicle charging stations, to install two ChargePro charging stations within The Fitzgerald’s 1,245-space public parking garage. The garage has the capability to support two additional stations as demand increases and as area residents acquire electric cars. “As a developer, builder, owner and manager, we recognize that we have the opportunity to be a leader in the sustainable use of the Earth’s resources,” said Toby Bozzuto, president of Bozzuto Development Company. “We also realize that, over the long term, we actually can create more value with less environmental impact. We look forward to helping recharge current – and future – electric vehicle owners at The Fitzgerald.” The ChargePro charging stations are available to the general public to recharge any new mass-marketed electric vehicle, including the Nissan Leaf, Chevy Volt and plug-in Toyota Prius, and include smart card authentication, energy metering, an automatic payment system and web-based network management. “By installing our charging stations at The Fitzgerald, we provide residents and visitors the ability to safely and easily recharge their electric vehicles in a state of the art facility,” said Mahi Reddy, president and CEO of SemaConnect. “We look forward to working with Bozzuto to deploy charging infrastructure at additional multifamily properties, helping our country make the transition to a fossil-fuel free transportation future.” Professionally managed by Parking Management, Inc. (PMI) and with 950 spaces available for use by the University of Baltimore (UB), The Fitzgerald garage provides 60 percent of the school’s student parking accommodations and is equipped with free door-to-door UB shuttle service, a staffed office and automatic university debit capabilities. “The University of Baltimore and Bozzuto have been great partners in building this transit-oriented development, and now with preferred hybrid parking, UB Zimride ridesharing, Zipcars, and Bozzuto’s foray into electric vehicle charging stations, there are even more ways to get around with less impact on the earth,” said Steve Cassard, vice president for facilities management and capital planning for the University of Baltimore. 30

“As the first residential community in the Mid-Atlantic to install public electric vehicle charging stations, Bozzuto’s Fitzgerald development exemplifies the use of SemaConnect’s smart grid compatible and multi-tenant capabilities and stands to greatly benefit the ever-increasing number of Marylanders who will own an electric vehicle,” said Jill Sorensen, executive director of The Baltimore Electric Vehicle Initiative. “This important addition to our EV infrastructure – public stations within an apartment community – will make owning an electric vehicle a real possibility for anyone choosing to rent a home rather than own.” The Fitzgerald is a mixed-use development comprising 275 luxury apartments, 24,000 square feet of street-level retail and a 1,245-space public parking garage. The community is the largest LEED-certified apartment community in the Baltimore area and is a recent recipient of the Urban Land Institute’s Award for Excellence, an award widely recognized as the land use industry’s most prestigious recognition. The Fitzgerald is a joint venture between The Bozzuto Group, Gould Property Company, NYSTRS and former Baltimore Raven Michael McCrary, and sits on 4.6 acres of land owned by the University of Baltimore. The community was developed by Bozzuto Development Company, built by Bozzuto Construction Company, and is now managed by Bozzuto Management Company. n For more information, visit www.FitzgeraldBaltimore.com or call 888-345-9142.

MID-ATLANTIC BUILDER JULY/AUGUST 2011 www.homebuilders.org

GREEN BUILDING

No Cost Green Green building has been broadly defined as the practice of increasing a building’s resource efficiency while reducing building impacts on human health and the environment during the building’s lifecycle. Many aspects of boosting building resource efficiency can be done at the planning boards, at no additional first cost to the construction budget. Here are some actions that get credit without adding cost. 1. Selection of an infill lot with access to mass transit and close proximity to community amenities like parks, recreation areas, shopping and religious worship. 2. Planning that retains natural features like mature trees and established storm water runoff swales and catch basins and includes minimum site disturbance and demarcation of the sensitive areas during excavation and construction. Landscape plan development that includes native plantings not requiring an irrigation system. 3. Topsoil at the excavation is removed, stockpiled and replaced. Areas that are disturbed by excavation for the house are quickly reseeded for erosion control. Silt retention fencing ringing the construction area throughout the build.

4. Detailed layouts and quantity take-off calculations allow for

minimal framing waste and maximum quality. I-joists, engineered sheathing, and roof trusses to minimize the total board feet of lumber needed to build the house. 5. Vinyl windows and cellular PVC exterior trim minimize the surfaces that required site-applied finishes. 6. Doorways covered by roofs, a sloped final grade from house outward and good gutter details move water away from the house and enhance the building’s durability. 7. Organization of site-generated debris allow for recycling or re-use. 8. Selection of bio-based, recycled content, and/ or materials that require fewer resources to be applied on site. 9. Selection of ENERGY STAR appliances. 10. Selection of a plumbing system and fixtures that minimize

water usage by minimizing flow. 11. Sealed HVAC ducts and equipment located in conditioned

space. Detached garage is better for indoor air quality. 12. Selection of interior finishes with no- or low-VOCs. n

Members Do Business With Members

Do they know where to find you? Your company may be listed in our annual Directory and Buyers’ Guide but what about your individual contact information? You’ve developed the relationships, now make sure your industry contacts can find you. Get your name, photo, contact information and key areas of experience and expertise in front of the industry decision makers in the Who’s Who section of the 2012 edition of the Home Builders Association of Maryland Directory and Buyers’ Guide. For $100 your individual listing will be included in the annual publication that is mailed to over 5,000 industry professional and has a year-long shelf life.

Your do-i resource t-all is here. 2011

meyer Cindy Plackeyer Marketing

Cindy Plackm Owner -7038 om Mobile: 410-960 indyplackmeyer.c Email: cindy@c p Twitter: @cindyw ackmeyerMarketing Facebook: /CindyPl

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2011 HBAM Directory and Buyers’ Guide

JULY/AUGUST 2011 MID-ATLANTIC BUILDER

GREEN BUILDING

Recognizing Value Appraisers Making Headway in Recognizing Value of Green Home Features

he continuing effort to provide recognition for the added value of energy-saving and other green features in homes will take another step forward around mid-summer when the Appraisal Institute is expected to add a green and energy addendum to its appraisal report form.

Green builders have been waging an uphill battle in recent years to convince the lending community to recognize the difference between homes that are just built to code and those that incorporate techniques, systems and products that can dramatically reduce monthly utility costs, which represent a significant expense for home owners. Sandra Adomatis, with, Adomatis Appraisal Service, said she hopes the addendum will be adopted by the Federal Housing Administration, Fannie Mae and Freddie Mac. “Builders can fill it out ahead of time and give it to the appraiser,” she said, who “can’t always see what’s behind your walls.” Adomatis confessed that she herself knew little about the attributes of green homes until she ran into a green builder whose home she was appraising who was kind enough to point out that she didn’t know what she was doing. She told him it was the first green home she had ever worked on, and that prompted the builder to provide a crash course in green housing, the start of her education on an increasingly important segment of the housing industry about which most appraisers still know next to nothing. “Ask 10 appraisers and only one has ever seen a HERS report,” she said, referring to the evaluation that a trained energy rater provides on the overall energy efficiency of an individual home. The Appraisal Institute, she said, has been stepping up efforts to make its members more knowledgeable through its Valuation of Sustainable Buildings Professional Development Program, which is conducted in the classroom and online and whose curriculum includes an introductory course and a course presenting case studies on residential green buildings, with a similar course on commercial buildings coming on line soon. Some builders have been signing up for the instruction, she added, and more courses will be added as new technologies are developed.

Correcting a ‘Blind Spot’ in Mortgage Underwriting Consumers themselves have a lot to learn about green building, and upgrading the existing housing stock, which lags far behind new housing in energy efficiency, represents a major opportunity for the industry. Adomatis described one concept, embodied in legislation championed by Sen. Michael Bennet (D-Colo.), that would correct a “blind spot” in current mortgage underwriting and home appraisal practices by adding expected energy costs to the principal, interest, taxes and insurance now entered into the equation when qualifying a buyer for a mortgage.

www.homebuilders.org

The SAVE (Sensible Accounting to Value Energy) Act would hand a clear advantage to new homes over existing homes, she said, but also would create a healthy retrofit market. The second phase of the program envisioned by SAVE would tackle water consumption. Adomatis recommended Home Energy Saver Pro as a tool for assessing average utility bills for homes compared to other homes in the same zip code. “This is a good tool for appraisers,” she said.

Finding Qualified Appraisers Adomatis emphasized that finding appraisers who are experienced in green is key for green builders and their customers. “Qualify the appraiser,” she said, and determine “what education and experience they have in green. Ask lenders to ask for them.” “The appraiser is still under pressure from the lender,” she added, stemming largely from policies in the secondary mortgage market, where extra construction costs for green are not allowed to be used in valuations. “The comparables have to be there,” Adomatis said, making it important to pair up houses to demonstrate the savings in average monthly utility bills in a more expensive, and valuable, green home over a comparable home built to code. In cases where there are disagreements over appraisals of green homes, Adomatis directed builders to guidance provided by Fannie Mae last year. “If the lender has concerns with any aspect of the appraisal that result in questions about the reliability of the opinion of market value, the lender must attempt to resolve its concerns with the appraiser who originally prepared the report,” she said, and “try to work it out with them.” However, if the appraiser has overlooked certain green features and has not correctly described the quality of the property, that can be the basis for hiring someone else to complete the appraisal report. If they are unable to resolve their concerns with the appraiser, “the lender must obtain a replacement report prior to making a final underwriting decision on the loan,” Adomatis advised.

Greening the Multiple Listing Services Including green attributes in the homes on Multiple Listing Services has received a major push in the past couple of years from those who understand the need for sales comps to show appraisers and lenders how green certifications and features can boost the value of green homes and to enable prospective buyers to more effectively search for the green homes they want.

JULY/AUGUST 2011 MID-ATLANTIC BUILDER

On that battlefront, there has been considerable headway, according to Al Medina, director of the National Association of Realtors®’ Green Resource Council, but there is considerably further to go in aggregating data from the MLS system. Comps are the “holy grail” in the quest for a system that can support proper green home appraisals, Medina said, but the going has been slower than he would like because the nation’s 862 MLSs are independently owned and the NAR is not constituted so that it can dictate to local Realtor® groups what they must do on this issue. A Realtors® survey at the end of last year found that 80 of the MLSs, or 13 percent, had live searchable green fields. About 70, or 11 percent, were in the process of implementing these fields, and about 80, or 13 percent, said they were in the planning stages. That leaves several hundred MSLs that have yet to take steps to incorporate green into their listings, but Medina pointed out that there were fewer than 20 of the services that acknowledged green in their listings before the NAR launched its Green MLS Tool Kit in April of 2010. Designed to support the flow of green home information in the marketplace and provide a step-by-step process that MLSs can follow to include green in their listings, this educational resource is already receiving a makeover.

A Need for Documentation The Realtors®’ Green Resource Council is also working to address some of the significant shortcomings that have been found in the early adapters of adding green to their listing fields. “The problem is, agents aren’t using the fields or are putting in wrong information,” Medina said. “The MLS has to have a way of preventing erroneous entries, and some only have one serviceable field.” With a focus on comps and appraisers, efforts are now underway to ensure that the MLS green fields include documentation, with possible certifications including the National Green Building Standard, a RESNET- or Department of Energy-approved HERS rating and Energy Star Qualified New Homes. “Appraisers need validated comparables,” he said. “Documentation is critical.”

Efforts are also underway to link green programs to MLSs, he said, starting with builders, architects and contractors. Evolving retrofit programs include the Better Buildings Initiative in 35 communities, Home Performance With Energy Star and DOE’s Home Energy Score.

Keeping Up the Pressure Leading efforts for years to make green mortgages a mainstay of the financing options available to home buyers, David Porter, of Porterworks, indicated that now is hardly the time to ease up on exerting pressure on the lending, appraisal and sales community. While there are many lending products available that recognize the value of green homes, both for new housing and renovations, none is being consistently offered by lenders, he said. “Force lenders to learn these programs,” Porter said. “Require lenders to get trained and offer programs to borrowers at the time of loan application.” Builders should also be pushing for the inclusion of green in consumer search sites. And “when you build green, have the certification recorded with the title so that it will travel with the property,” Porter said. “Communicate to the buyer what the power of green is,” he said. “Go through the list of green features and turn them into benefits, such as a higher R value equals lower utility costs.” Builders need to ensure that the appraiser evaluating the home is competent, with the experience and education needed to do the job competently. n

MID-ATLANTIC BUILDER JULY/AUGUST 2011 www.homebuilders.org

2011 Green Events and Education Courses Green Building Breakfast Panel Discussion and Networking

Green Key Connections

September 22 8:30 – 9:30 a.m. at HBAM Topic: Certified Green Homes – New Construction

This EXCLUSIVE EVENT FOR GREEN COUNCIL MEMBERS provides you with the unique opportunity to spend 5 minutes face-to-face with decision makers to explain why they should use your GREEN product or service (yes, think of it as speed dating). Bring a sample of your green product and let them see for themselves why they should be doing business with you. Don’t forget to bring your marketing materials and special promotions geared to entice them and provide a value-added benefit to their bottom line. Going green is the future of residential construction and the builders, remodelers, and developers at this event are looking for green products like yours to build energy efficient and affordable homes. This is your opportunity to showcase your products to the decision makers.

Free to MRGBC Members, $10 for all other HBAM members

Seminar: Selling High Performance Homes: Extracting Maximal Value in a Minimal Market September 28

New high performance homes built today are safer, more energy efficient, comfortable and healthier than ever before. This four hour workshop will help builders, real estate agents and new home specialists gain a better understanding of the advanced technical features of these homes. As well, they will learn the most effective way to translate this information for home buyers so they can make more informed and effective choices. Hosted by Dow Building Solutions and led by Gorde Cooke, nationally recognized engineer, author, industry consultant, and trainer, the event is a can’t miss seminar designed to improve your profit margin. Topics include how to properly assess customers needs for high performance homes, a discussion of Energy Star 3.0, ICC 700 National Green Building Standard, and real world demonstrations on how to close sales utilizing benefits of high performance homes. Seminar Objectives:

• Gain a wider and deeper knowledge of high performance homes • Identify technical features of high performance homes • Translate the technical feature of the homes into language that you & homebuyers are comfortable with. • Practice communication skills that are very useful in selling high performance. • Learn how energy efficiency is the best investment available to homeowners. Price: $35 for MRGBC Members; $50 for

October 6

Price: MRGBC Members: $25. All other

HBAM members: $100, which includes your MRGBC membership for one year plus your ticket, a $125 value!

Advanced Green Building Education: Project Management

• Discuss ways to limit the potential liabilities of green building • I ncrease the project’s bottom line through streamlined management practices • I mprove marketing strategies for selling green Continuing Education Hours: 12.0 Designations: Master CGP

Continuing Education Credits: CAPS, CGA, CGB, CGR, GMB, CSP, Master CSP, CMP, MIRM

Green Building Breakfast Panel Discussion and Networking December 8 8:30 – 9:30 a.m. at HBAM Topic: Certified Green Renovations, with speakers: Tim Ellis and others

Free to MRGBC Members, $10 for all other HBAM members. n For more information on these Green Building Events and Education Courses, please contact Michael Harrison at 410-265-7400, ext. 109 or michael@homebuilders.org or visit www.greenhomebuilder.org.

November 9 & 10

This two-day course teaches builders and remodelers how to successfully integrate green building-related tasks and the green home certification process into their project management to create an effective, streamlined process. Using the whole-house approach to building, this course identifies important documents and methods of communication in order to clarify who does what and when. By completing this course, the participant will be able to: • Integrate green tasks into project management for a collaborative and more efficient approach toward meeting green standards • Develop an understanding of the fundamental principles of the National Green Building Standard™ and describe the green home certification process

HBAM members; $60 for non-members

www.homebuilders.org

JULY/AUGUST 2011 MID-ATLANTIC BUILDER

MID-ATLANTIC BUILDER JULY/AUGUST 2011 www.homebuilders.org

Get This Party Started!

MAX 2010 Maryland Awards of Excellence

For a complete list of winners visit www.homebuilders.org/page/max

www.homebuilders.org

JULY/AUGUST 2011 MID-ATLANTIC BUILDER

Left: Gina and Bill Zahler, Zahler Construction & Development and Lewis Hibbs, Chase Home Finance. Right: Scott Barhight, Whiteford, Taylor & Preston LLP and Bob Goodier, Goodier Builders.

Night at the Ballpark

Bullpen Party and Orioles Game, June 8, 2011

Attendance more than doubled for this annual HBAM outing and the Orioles pulled off a win.

Top Left: Beverly and Don Sample of Land Development Services. Bottom Left: Cindy McAuliffe and Eliot Powell, Whitehall Development. Center: summertime buffet enjoyed by all. Right: Howard Perlow, Residential Title and Escrow.

Left: Leslie Rosenthal, Bob Lucido Team/ReMAX Advantage gives the raffle winner his prize. Top Center: Judy Borns, Residential Title and Escrow sells another raffle ticket. Bottom Center: Barry and Tim Ellis of T.W. Ellis. 38

MID-ATLANTIC BUILDER JULY/AUGUST 2011 www.homebuilders.org

www.homebuilders.org

JULY/AUGUST 2011 MID-ATLANTIC BUILDER

green building BUILDING HOMES – BUILDING SUCCESS

Turning saw dust into “magic dust” By H. Alan Mooney, P.E. President, Criterium Engineers

o continue with my series of exploring your signature as a builder; it’s your brand, it’s what you stand for and it’s how people remember YOU. It’s not just a house, it’s a house by…

John Smith – A Builder you can Trust For this series, I outlined the key elements that I believe should be part of your signature as a builder. They are: 1. Responsive service – you should genuinely care about your customers. They are making one of the biggest decisions of their life to buy a home from you. They need to know that you care about them and they will typically pay more for that comfort. 2. Fundamental Construction Quality – not claims that “I build a great house” but proof! Show them the construction details that are your standard. Explain the materials you use, and why. Tell them about how you train your crew and how you choose your subs. 3. Follow through and follow up – you will have problems; not everything is perfect. Your customers are people too; they know that mistakes get made. What is important is to have an aggressive policy in place to follow up on issues and correct them quickly and carefully. 4. Manage expectations – timber frame residential construction is not a perfect process. There will be cracks, distortion, irregularities and inconsistencies. A buyer orientation program to help the average homebuyer understand what to expect from their new home will reduce complaints and increase your credibility. 5. Responsive Service – I know, that’s the same as #1, but it can’t be overemphasized. If the message comes from the president/owner of the company, that’s even better.

Remember, in the end, it’s about how people feel about you and your homes. That’s your signature and no one can take that away, or duplicate it. In the last issue, we looked at Responsive Service. In this issue, let’s look at FUNDAMENTAL CONSTRUCTION QUALITY in more detail. How do you define construction quality? It means something different for everyone. However, for you, as the builder, fundamental construction quality should start with measurable performance. What measurable performance should matter to you and your buyer? Based on our experience, there are a few specific areas where we frequently see performance compromised and the cost can be substantial, both for your reputation and your bottom line. We have surveyed construction quality nationally and the results are available at http://criterium-quality.com/whitepapers. WATER INTRUSION – That’s NUMBER ONE on the list of performance issues and complaints. The installation of windows and roofing is the biggest cause. Basement waterproofing failures are also common. How do you minimize that problem in your homes? If you have a formal process for assuring good quality assurance and that you know works, you should showcase that as part of your promotional material; be willing to be accountible. STRUCTURAL SOUNDNESS – Your owners don’t like squeaky floors, bouncy floors, cracking finishes and distortion. Your choice of lumber, framing details and thoughtful design will yield a sound house that “feels” solid. While there are opportunities to save lumber in wall framing, you should be generous with floor framing. Nobody likes to hear things rattle when they walk through a room. Just meeting building codes will not produce a solid feeling floor. Make sure you build in allowance for dimensional changes as temperate and humidity change. Adquate rough openings around windows, slip joints for truss lift, and dry wall

MID-ATLANTIC BUILDER JULY/AUGUST 2011 www.homebuilders.org

We know our owners don’t like water leaks! We have built 350 homes in the last five years and none have leaked! clips that allow for movement at corners are some ways to minimize cracking and distortion related to dimencional changes. Wood will change, it can be part of your signature to minimize the impact of that change. For your “signature,” I suggest some testimonials from your previous buyers: FULLY FUNCTIONAL AND INTEGRATED SYSTEMS – We hear many complaints about

poor airflow and non-uniform temperature throughout the house. It can be part of your signature that the HVAC system has been fully tested, balanced and the ducts checked for leakage (duct blasting). Also, that the lighting minimizes heat load. While you may not want to pursue a “green rating” (either LEED or NBGS), your signature can include a commitment to energy performance. For your signature, you can demonstrate your commitment to a home that’s comfortable to live in and get some testimonials.

Our home was built by John Smith and we love it! It’s solid. CLEAR, ESTABLISHED STANDARDS – In my experience, most good builders often overlook many of the fundamental things they do to make their homes well liked by their buyers. To develop your signature, you should consider creating a handbook (or website) of details that represent your commitment to quality and show how those details will produce a home that performs well for your buyer, for many years. In that handbook, show them the construction details that are your standard. Explain the materials you use and why. Tell them about how you train your crew and how you choose your subs. Two final thoughts on how fundamental construction quality can and should be a major part of your signature. 1. Details and installation matter – most of the performance issues we investigate in homes turn out to be related to the installation of the www.homebuilders.org

materials not the materials themselves. Train, manage and monitor your people well. And tell you buyers about your training program. 2. Your buyers are a good source for defining your quality – talk to those who bought house

from your FIVE YEARS AGO. See what they think. Two things will result; some great testimonials and some solid information on how you can continue to improve your home and your signature.

“One of the things we really like about a John Smith home is that the temperatures are comfortable year round. We can set the thermostat and forget it.” Developing your signature isn’t simple, but it works! There are builders I know who spend virtually nothing on advertising. Their customers hear of them through reputation and word of mouth. Those same builders are usually able to charge a bit more for their homes. They realize they are a builder selling a service not just a home. For them saw dust has become “magic dust.”

John Smith – A Builder you can Trust Please feel free to send me an e-mail (hamoooney@criterium-engineers.com). Working together, my goal is to help explore new and better ways for you to build homes that you can be proud of and that will turn your customers into some of your best sales people! n Criterium Engineers has specialized in residential construction for more than 50 years, with more than 60 offices in more than 30 states. We have evaluated more than 750,000 buildings. H. Alan Mooney, P.E, President of Criterium Engineers, is a licensed, Professional Engineer in 8 states, with more than 35 years experience. Please visit www.criterium-engineers.com and www.criterium-quality.com. May/june 2011 MID-ATLANTIC BUILDER

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.

Builder Mart Key Connections MAX Maryland Awards of Excellence International Builders’ Show Celebrity Chef Night and Auction HBAM Remodelers Awards of Excellence The Maryland Housing Conference Th e Maryland Real Estate and Construction Forecast Conference Icon Awards La nd Development Council Community Development Awards

Contact Felicia Fleming at 410-265-7400, ext. 115 for more information. 42

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 and Auction, 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, BNN, 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.

MID-ATLANTIC BUILDER JULY/AUGUST 2011 www.homebuilders.org

HBAM Welcomes New Members Associate

RMS Retirement Marketing Solutions James Myron 529 Benfield Road Suite 250 Severna Park, MD 21146 Phone: 410-518-9868 www.winningbynotlosing.com

The Moran Group, LLC Dorman Marc 696 Ritchie Hwy. Severna Park, MD 21146 Professional Services - Insurance Sponsor: Evan M. Gilligan, Mandrin Homes, LTD.

Martin & Phillips Design Associates, Inc. David Martin 222 Bosley Avenue Suie B1 Towson, MD 21204 Phone: 410-321-8444 Professional Services Engineering & Technical Sponsor: Robb Aumiller, Mackenzie Communities

Topper Construction Company Richard Topper 7138 English Muffin Way Frederick, MD 21704 Phone: 301-874-0220 www.topperconstruction.com Subcontractor - Roofing & Gutters

Striker Construction Co., Inc. Kevin Eller 4962 Commerce Drive Fredericksburg, VA 22408 Phone: 540-710-6700 Subcontractor - Masonry & Concrete Sponsor: Rod Hart, Dan Ryan Builders

PrimeLending Lewis Hibbs 1954 Greenspring Drive Timonium, MD 21093 Professional Services - Banking & Mortgage

Structural, LLC Scott Austin 201 Poplar Ave. Thurmont, MD 21788 Supplier - Trusses

Weichert Realtorâ&#x20AC;&#x2122;s New Colony

Stanley Merson P.O. Box 57 Dayton, MD 21036 Subcontractor - Excavating, Grading & Utilities Sponsor: Robert Goodier, Goodier Builders, Inc.

Mary Beth Brown 6925 Oakland Mills Court Columbia, MD 21045 Phone: 410-381-3331 www.marybethbrownhomes.com Professional Services - Real Estate Sponsor: Theresa R. Leatherbury, Rachuba Group, The

United National Construction Co., Inc.

Shepherd & Sons, Inc.

Danny Kim 7410 Coca Cola Drive #212 Hanover, MD 21076 Phone: 410-712-0900 www.uncconstruction.com Subcontractor - Siding

Home Construction Services, Inc.

RLO Contractors, Inc.

U.S. Utility Corp Duane Zentgraf 10176 Baltimore National Pike Suite 210 Ellicott City, MD 21042 Professional Services - Utilities Sponsor: Robert Goodier, Goodier Builders, Inc.

Donald Sands 4210 Leeds Ave Baltimore, MD 21229 Subcontractor - Roofing & Gutters

BUILDERS

REMODELERS

Sally Costello 10616 Beaver Dam Rd. Cockeysville, MD 21030 Phone: 410-771-0060 Builder

Larry Kramer 1594 Colony Road Pasadena, MD 21122 Phone: 410-615-9286 Remodeler Sponsor: Cheryl Crowther, The Somerville Showroom/ Kohler Registered

Hencken & Gaines, Inc.

Viking Development Corp. Cary Cumberland 815 Windriver Sykesville, MD 21784 Phone: 410-489-6728 vikingcustomhomes.com Developer Sponsor: Dan Murtaugh, Sandy Spring Bank

Lampost LLC

Peak Carpentry, LLC Nelson Laur 4140 London Bridge Road Sykesville, MD 21784 Phone: 443-609-4710 Remodeler

Shore-Line Construction Enterprises, Inc. Jonathan Skarda 302 Greyhound Road Baltimore, MD 21221 Phone: 410-574-6623 www.shorelineconstruction.net Builder

Viking Development Corp. Cary Cumberland 815 Windriver Sykesville, MD 21784 Phone: 410-489-6728 vikingcustomhomes.com Sponsor: Dan Murtaugh, Sandy Spring Bank

Shore-Line Construction Enterprises, Inc. Jonathan Skarda 302 Greyhound Road Baltimore, MD 21221 Phone: 410-574-6623 www.shorelineconstruction.net Builder - Custom

James Rosick P.O. Box 309 Culpeper, MD 22701 Phone: 571-292-9980 www.hcsgreenproducts.com

Advantage Group, Inc. Fred Hildebrand 698 D. Corporate Center Westminster, MD 21158 www.advantagegroupinsurance.com Professional Services - Insurance Sponsor: Scott Armiger, Orchard Development Corporation

www.homebuilders.org

JULY/AUGUST 2011 MID-ATLANTIC BUILDER

stats&facts By the Numbers

36,638

Total number of homes for sale as of May 26, 2011, up 6.23 percent from last year.

Is this our typical spring selling season? By Brooke Burns

$11,486

Closing prices of homes sold between January 1, 2011 and May 26, 2011 have dropped $11,486 compared to the same period last year.

-62.01% Compared to the same period last year, the amount of condominium closings between January 1, 2011 and May 26, 2011 has dropped by 62.01 percent.

2,067

Average square footage of homes sold between January 1, 2011 and May 26, 2011.

$37.18

The price per square foot in single family homes has dropped by $37.18, down 22.46 percent between Jaunaury 1, 2011 and May 25, 2011 as compared to last year.

Flowers are in bloom and the grass is looking much greener outside, however it doesn’t appear to look this way for many in the housing industry. Focusing on the year to date numbers, closings seem to be down year over year in the Baltimore MSA. All housing types are down almost 40 percent comparing January – May 2011 to the same period in 2010. Let’s focus on a bright spot for a minute; single family home closings were up in March 2011. This product type has been struggling the past few years while town home and condo sales were increasing. In March 2011 they were up 8 percent over 2010 statistics. While prices are down 1 percent for single family homes, the fact that they have increased in closings is a sign that this product type has made a comeback and the American Dream is not completely lost! There is a spring market out there for some. We also have to look back at 2010 and remember the tax credit was still in place and was driving the market. Average Prices are down 7-8 percent for single family and towns while condos are up by 5.5 percent. Things don’t look much different in the Washington DC MSA for the first few months of the year for closing numbers. However pricing has stayed pretty strong in this market not dropping for single family and town homes and increasing 11 percent for condos. These markets are still some of the more attractive markets if you are in the residential housing industry due to the economic factors that have assisted. It has a strong educated workforce. The population is anticipated to increase in 2011 about 1.3 percent. Jobs growth is set to increase 1.8 percent which will positively affect the housing market. n Brooke Burns is the Regional Sales Director for Hanley Wood Market Intelligence and can be reached at bburns@hanleywood.com or 202-729-3678.

Figures are for the Washington DC MSA for January 1, 2011 to May 26, 2011 and the same period in 2010. 44

MID-ATLANTIC BUILDER JULY/AUGUST 2011 www.homebuilders.org

Average Price Per Square Foot

Monthly Closing Rate: 2010 vs. 2011 One icon is equal to 25 closings

Single Family Homes Single Family Homes 2010

2011 2010: $165.55 2011: $128.37 Townhouse/Duplex/Plex

Townhouse/Duplex/Plex 2010

2011 2010: $154.99 2011: $129.02 Condominium

Condominium 2010

2011

2010: $213.26 2011: $203.00

Average Square Footage Single Family Home 3,824 square feet

Average Closing Price -7.94%

2010 2011

$500,000 $400,000

-6.97%

Townhouse/Duplex/Plex 2,423 square feet +5.69%

$300,000 $200,000 $100,000 $0

www.homebuilders.org

Condominium 1,587 square feet Single Family

Townhouse/ Duplex/Plex

Condominium

JULY/AUGUST 2011 MID-ATLANTIC BUILDER

governmentaffairs The Regulatory Merry-Go-Round Shows No Sign of Slowing Down When the Obama Administration came into office, it was clear that environmental issues were high on their agenda, but few imagined how much the pace of the Environmental Protection Agency’s regulatory activity would accelerate. The fact that the nation is in a major economic downturn has not slowed down EPA’s rate of issuing new guidances, new rules, and revised, more expansive interpretations of previous policies. In addition, the President has grown fond of the use of Executive Orders, Presidential Proclamations, and the hiring of “czars” that work in federal agencies but report directly to the President, as a way to use the federal work force to further his environmental agenda and other social goals. The following list summarizes activities that NAHB sees as the major near-term environmental actions from EPA that will impact home builders nationally: 1. Finalization of the federal Construction General Permit (CGP)

Proposed on April 25, 2011, the CGP will become the state permit in those states where EPA is the permitting authority for National Pollutant Discharge Elimination System permits. Those states include Massachusetts, New Hampshire, New Mexico, Idaho and Washington, DC. The CGP will also serve as a model for other new NPDES state permits when they are revised on their 5-year cycle. The proposed CGP includes a number of modifications, many of which are to implement the new Construction & Development Effluent Limitations Guidelines published on December 1, 2009. Importantly, the CGP includes a placeholder, into which EPA expects to insert the final numeric limit for turbidity after the revised ELGs rulemaking is completed

ic limit for turbidity on large construction sites. NAHB has been very involved in this rulemaking as it developed. The rule contains a numeric turbidity limit of 280 NTUs (nephelometric turbidity units) for sites with a disturbed area of 20 acres or more. Each state must incorporate the ELGs rule into the next revision of the state’s Construction General Permit. EPA used a faulty analysis to determine the 280 NTU numeric limit in the rule and, subsequent to a lawsuit by NAHB; EPA is currently revising the limit for re-proposal. 3. A National Post-Construction Stormwater Rule

Later this year, EPA is expected to propose a major stromwater rule that will focus on volume and flow requirements for stormwater runoff, and it is likely to break new ground by addressing stormwater discharges that are currently unregulated. Some Chesapeake Bay-specific provisions are likely to be issued as part of this rule. As background for the rule, EPA conducted surveys in 2010 to assess the current long term stormwater management systems and costs and it held two meetings with small homebuilding companies to assess the potential impact of a new stormwater rule. 4. A National Rule on New NPDES Discharges and the Appropriate Use of Offsets when Permitting to Impaired Waters

A second national rule to be proposed later this year has become necessary due to several court decisions. The rule will focus on the permitting of new or increased discharges in impaired waters, both when a TMDL is in place and prior to TMDL issuance. The rule will insure that permits that violate water quality cannot be issued. The use of “offsets” for new growth or for increased discharges will likely be part of the rule.

2. Finalization of the Construction & Development Effluent Limitation Guidelines

5. New Proposed Draft Guidance on Identifying Waters Protected by the Clean Water Act

The ELGs are a technology-based rulemaking that will require construction sites to implement new erosion and sediment control measures and meet a numer-

Finally, EPA and the U.S. Army Corps of Engineers jointly proposed controversial draft guidance on May 2, 2011 dealing with the reach of federal jurisdiction

under the Clean Water Act. A rulemaking on the same subject is to follow finalization of the guidance. NAHB has held two meetings with EPA and the Corps to discuss the draft guidance and to seek clarity on the proposed language. EPA and the Corps have said that the guidance has been issued primarily to improve the clarity and predictability of the wetlands permitting program. However, the guidance expressly covers all programs under the Clean Water Act, including stormwater permitting. The guidance will act to expand the reach of federal jurisdiction under the Clean Water Act to encompass additional wetlands and water bodies, thus requiring permits where no permits would have been necessary prior to the guidance. Questions on this article can be addressed to Glynn Rountree at NAHB at 202-266-8662 or grountree@nahb.org.

Anne Arundel County Bill 37-11, an Administration Bill that passed by a 5-1 council vote (1 abstained), increased Capital Facilities Connection Charges (Water and Sewer Connection) by a combined $1,300 this year. In addition, the bill implements phased annual increases through 2015. Though this bill passed and became law effective July 1, 2011, the HBAM Anne Arundel Co. Chapter is diligently working with the County Council on a range of issues to help offset these increases. n HBAM Government Affairs Michael Harrison Director of Government Affairs Howard, Baltimore and Carroll Counties michael@homebuilders.org 410-265-7400, ext. 109 Jeff Tosi Director of Government Affairs Anne Arundel, Harford and Cecil Counties and Baltimore City jeff@homebuilders.rog 410-265-7400, ext. 101

MID-ATLANTIC BUILDER JULY/AUGUST 2011 www.homebuilders.org

foundation HBAM Foundation Gets New Logo The Maryland Community Builders’ Foundation, the charitable arm of the Home Builders Association of Maryland, adopted a new logo at their June board meeting. According to Christopher Rachuba, the chairperson of the Foundation, “The update to the logo is a reﬂection of the refresh taking place inside the organization.” With the design expertise of Mark Sucher and Lyons & Sucher Advertising out of Alexandria, Virginia, the board chose the new symbol for the Foundation noting that it represents the helping hands of the members of the Association. “This logo symbolizes the renewed sense of purpose we have to help people through our Foundation,” said Rachuba. The 501 (c) (3) charitable foundation, founded in 1999, was formed to promote shelter related activities for those less fortunate throughout the Baltimore region. The Foundation focuses on ‘sticks and bricks’ projects that provide shelter or shelter improvements for needy families in the six counties and city serviced by HBAM – Anne Arundel, Baltimore, Carroll, Cecil, Harford, Howard and Baltimore City. The strategy of the group remains to provide shelter-related charitable services in the region by calling upon HBAM members for donations of labor, materials and funds. Examples of past projects supported by the Foundation include The Arc of Baltimore, the Night of Peace Shelter, the Carroll County Hospice, the Grassroots Homeless Shelter in Howard County, St. Casmir and the Lighthouse Industries, Boys Hope Girls Hope and Rebuilding Together – Howard County. To find out more, visit the Foundation’s website at www.buildingindustriesfoundation.org. It offers industry professionals a place where they can easily sign up to donate time and/or materials, share their projects for promotional purposes and view the latest projects undertaken by the Foundation. ■

www.homebuilders.org

JULY/AUGUST 2011 MID-ATLANTIC BUILDER

BRAC Don’t Think Short Term with BRAC … This Is Just the First Wave By the time many of you read this article the first direct impact of BRAC for Maryland will be complete. The official numbers published are that 15,300 direct jobs (Direct = actual Department of Defense positions +contractually obligated imbedded personnel) are required to be in place at Fort Meade, National Naval Medical Center Andrews Air Force Base, Aberdeen Proving Ground and Fort Detrick by September 15, 2011. It is estimated that another 50 percentof that number of “indirect jobs” (Indirect = contractors and other jobs not associated with the core mission) roughly 7,650 jobs will also be in place throughout the State of Maryland. But that is just the first wave. The Maryland Department of Business and Economic Development is estimating a total of 45,000 – 60,000 jobs coming to Maryland due to BRAC with many of the indirect and induced jobs beginning in 2012 through 2020. The modeling assumptions made show 100 percent of the direct jobs and 50 percent of the indirect jobs will be felt in 2006 – 2011. In 2012 – 2015 50 percent of the Indirect Embedded Jobs will be in place, 100 percent of the Indirect Other jobs will be in place and 30 percent of the Induced jobs. Following will be the additional 70 percent of the Induced jobs scattered from 2016 – 2020. As a follow up to the projections made by MDBED local jurisdictions have been pushing state and federal authorities for funding for road and other infrastructure improvements to support this projected growth, prompting additional job support in the area. Check out this link for an article discussing a Memorandum of Understanding with a variety of public and government parties for a Transportation Demand Management Plan (HINT - on the same page sign up for BRAC updates from DISA) http://www. disa.mil/brac/news/ridehome_ widening_060310.html

The official numbers published are that 15,300 direct jobs are required to be in place by September 15, 2011.

In the meantime there are success stories in new home communities where BRAC families are gathering. However, the winners aren’t out there bragging and are keeping trade secrets pretty quiet. To hear about it we would encourage you to attend HBAM events and keep your eyes and ears open. n

Economics 101 in the home building industry has taught us that job growth eventually translates to household growth. We can read article upon article today that household formations are falling off due to the economy, graduating students moving home with parents and household doubling up but this short term trend will change, after all how long could you really live with your parents after college? But according to Dr. Daraius Irani of the Regional Economic Studies Institute at Towson University “we are seeing light at the end of the tunnel”. Dr. Irani believes that the more immediate impacts are being felt in Anne Arundel and Harford Counties with the direct jobs and these counties will benefit in the short run. Dr. Irani gave some interesting insight saying that many of the direct jobs being transferred to the area are employers that are within a few years of retirement age. He expects this to prompt a “next generation of jobs” that will help lead the next wave of the BRAC impact.

Brenda L. Desjardins, MIRM is a seasoned veteran in the residential building industry with more than three decades of experience in new homes. She leads New Home Marketing Service and New Home Development Strategies based in Annapolis, Md. with a satellite office in Sussex County, De. Ms. Desjardins is a leader in providing market research, strategic planning and opportunity assessments for single family and multi-family home builders and developers. She is active in regional building associations and is a graduate of the Johns Hopkins University Real Estate Institute in Baltimore, Maryland with a Master of Science Degree specializing in real estate development. More recently she has become obsessed with understanding how to reach that BRAC new home buyer. She can be reached at 410-990 1050 or bldesjardins@comcast.net.

MID-ATLANTIC BUILDER JULY/AUGUST 2011 www.homebuilders.org

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Frank Potepan, owner of Catonsville Homes, understands the delicate balance between quality products, quick turnarounds and competitive pricing. When Frank needed high grade windows in a pinch, he came to John H. Myers & Son for a solution. We recommended the Ply Gem MIRA Premium Series window because it's great looking, sharply priced and we knew we could get it fast. His order was placed and two weeks later the windows were hung and the house was being sided...on schedule. Ply Gem MIRA Premium Series window features: • Aluminum clad-wood • Available in 8 colors • Comes standard with Low-E glass, Warm Edge Insulation, Argon gas • Exterior casing options • Architectural styles available • Various hardware finishing & options • Variety of grille options • Tinted, tempered, obscure or laminated glass • Rated DP50 right out of the box • Easy installation • Short lead times

Looking for a solution to make your business more successful? Contact one of our sales representatives at the location nearest you. Aberdeen, MD 20 S. Philadelphia Blvd. 443-327-7933

Chambersburg 1090 S. Main St. 717-263-9151

Dallastown 217 E. Maple St. 717-244-4077

Camp Hill 3442 Simpson Ferry Rd. 717-737-0471

York 2200 Monroe St. 717-792-2500

Hanover 108 Ram Dr. 717-632-0217

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MID-ATLANTIC BUILDER JULY/AUGUST 2011 www.homebuilders.org