Mid Atlantic Builder January/Februrary 2011

EXTREME MAKEOVER: HOME EDITION

Vol. 53 Issue 1 January/February 2011 www.homebuilders.org

The HBAM Foundation’s

Extreme Commitment PLUS Land Development Council Awards 18 Remodeler Awards of Excellence 28

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January/February 2011 Vol. 53 Issue 1

ON THE COVER Core members of the Extreme Makeover: Home Edition build team, Chris Rachuba with The Rachuba Group, Judi Miller with Architecture by Design and Jack Lancelotta with Superior Walls by Weaver Precast.

PHOTO BY STUART ZOLOTOROW

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

Extreme Commitment

HBAM members went on a wild ride in July of 2010 building an 11,000+ square foot house for the girls of Boys Hope Girls Hope in Baltimore.

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Developing Excellence

Excellence in Community Developments awards were presented to six deserving recipients; as well as five individual awards in the field of land development.

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Remodeling at its Best

In it’s 20th year the HBAM Remodelers recognized excellence in remodeling design and craftsmanship, at their annual awards ceremony.

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4 6 8 45 46

Guest Message President’s Message Events New Members Government Affairs

Pages 23-26 Pull-Out Section

The Battle for the New Home Buyer is Raging In today’s challenging economic times, selling new homes has become a battlefield, requiring a savvy, experienced sales force that makes decisions that result in a sale.

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

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

Remodeler A supplement to Mid-Atlantic Builder

HBAM Remodelers Council Gold Award

Market Recovery Series

Also 42

Departments

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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.

Owings Brothers Contracting Beaumont Project $195 to $250K Other Addition with Alterations

• SFI standards conserve biodiversity and protect soil and water quality, as well as wildlife habitats.

• SFI participants also plant more than 650 million trees each year to these thriving forests.

www.homebuilders.org

JANUARY/FEBRUARY 2010 MID-ATLANTIC BUILDER

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Departments

Green Building Going, Going, Gone Green

48 Corner BRAC

MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2011

Before & After President’s Message New Members

www.homebuilders.org

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2011 HBAM Leadership Executive Committee Bob Goodier President Rod Hart President Elect

guestmessage The Business of Politics I would like to take this opportunity and thank all of the home builder and associate members who supported my Maryland State Senate campaign.

I would also like to share some additional thoughts on Maryland Politics as it relates to our industry.

When I was President of Home Builders Association of Maryland, Paris Glendening was Governor. He was not a friend of our industry and the environmental lobby has continued to grow since his term. Home builders have been fighting a losing battle. Every day it has been harder and harder to earn a living and purchase land at prices that allow us to build an affordable home and bring that land to market in a timely manner.

I believed that the only way change could occur was to be on the inside of the process.

I believed that if I was elected, together with other pro-business legislators, we could improve the business climate in Maryland.

I picked 2010 to run because of the dissatisfaction of the electorate that was sweeping the country. A wave of change occurred in every state except California and Maryland.

In fact, the Maryland legislature has become more anti-business and radical with this election. Conservative Democrats were replaced with more liberal State Senators.

However, there was a bit of good news in the House of Delegates where some fiscal conservative and pro-business Delegates were elected but they still don’t have numbers to make a difference.

I still believe that electing pro-business candidates is the proper course but I now know we can achieve our common goals from the outside. Home builders from around the state came together to fight and win on onerous storm water management regulations and the Baltimore County PAC had a very successful creating a blueprint 4

MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2011

for what our industry needs to achieve.

Starting with County Council elections, we must continue to support and cultivate probusiness candidates that will change the culture in the counties and eventually move to higher office. We must act and plan for the long term.

The most important lesson that I have learned is that we as HBAM members must allocate more dollars to our association and its local Political Action Committees.

Money is politics and money is success in politics. We all know this, but I have now lived it. Associates meeting builders, education and recognizing the best of our industry through awards are all important benefits of HBAM but we must primarily be a politically based organization. Protecting our industry in the halls of our respective county councils and in Annapolis is the most important goal.

I have always been proud to be a home builder. We produce a product that is one of the staples of life. I intend to stay active and again would like to thank all of my friends and supporters. I hope for all of us, that 2011 is a good year for our industry.

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

Chapter Presidents 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

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

Alternate Directors Kevin Carney Thomas Builders, Inc.

Jay Hergenroeder Jeff Ott Leslie Rosenthal Matt Helminiak Matt Wineman

Paul Krakovsky Paul Mueller Tim Naughton Yana Peifer

Ex Officio MemberS Chris Rachuba Building Industries Foundation Frank Hertsch PAC Jack Orrick www.homebuilders.org

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 In Frank Capra’s Christmas classic, “It’s a Wonderful Life”, in a moment of deep despair George Bailey questions his value and purpose and wishes he’d never been born. He’s then given a chance to

see just how his loved ones and his community would be impacted if he hadn’t been there for them. As he and the viewer become very aware, without his strength and commitment, the town and its residents wouldn’t fare well at all.

How would the building industry be impacted if the Home Builders Association of Maryland weren’t around? At a minimum, how would the following happen; and who would be looking out for you?

• HBAM defeat of the impervious fee fund saved builders $2,400 PER UNIT BUILT. In other words, a builder who built 20 homes this year, saved $48,000 this year and every year hereafter.

• At the state level, HBAM lobbyists succeeded in obtaining sweeping amendments to the 2007 Stormwater legislation – saving developers tens of thousands from having to reengineer plans.

• A lso at the state level, HBAM lobbyists succeeded in passage of permit tolling legislation to require local permit authorities to “toll” or freeze permit approvals past their expiration date due to the economic downturn – saving HBAM members money and buying more time to wait out the recession.

• In Carroll County HBAM lobbyists defeated an expansion of the residential sprinkler mandate, saving upwards of $6,000 on EACH home addition and remodel.

• I n Baltimore County, HBAM lobbyists successfully negotiated less burdensome design regulations, saving builders thousands in unnecessary architectural features.

• In Howard County, HBAM lobbyists saved developers over $200 an acre in review fees proposed by the Howard Soil Conservation District.

We’re in one of the most trying economic periods we’ve ever been in. Cash is tight and for most builders time constraints are stretched to the limit. However, if you pull even one permit this year or otherwise work in any capacity in the home building or home financing industry, you need to understand how important HBAM is in protecting your livelihood. We at HBAM understand that you have to justify the cost of your homes to your customers and these savings directly impact your bottom line and the price of your homes.

We need all of you members and associates, large or small, and we value your participation. For those in the industry waiting for the market to turn before making any further commitments, please come off the sidelines and help whether it with be your dues, your time, your influence or a combination of all three. Just like George Bailey, even though you may not realize it, your involvement makes a significant difference. Yes, times are challenging but they would be demonstrably worse without an active HBAM.

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Inside Front Cover BGE Outdoor Lighting 1 Bob Lucido Team

Inside Back Cover California Closets 26 GE Contract Sales 22 IWIF

Back Cover John H Myers & Son, Inc 3 Mid Atlantic Propane and Gas 5 Saratoga Insurance 27 SMC SalesCamp 26 Southern Pacific Supply 7 T.W. Perry

38-39 Verizon Wireless 9

Bob Goodier 2011 HBAM President

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MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2011

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Events

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

Sales Camp Wednesday, March 23rd Timonium Fairgrounds

Key Connections Thursday, February 3rd Pikesville Hilton

Associate members enjoy 3 minute faceto-face meeting with the builder, developer and remodeler members participating in this event. Associates have the opportunity to bring samples and incentives to entice them to continue business with them or to add them to their list of vendors. This event proves each year to be a value added benefit of HBAM and supports our motto of Members Doing Business with Members.

ICON Awards Wednesday, February 16th Fretz Corporation, Columbia, MD

HBAM is set to present its coveted awards for Builder and Associate of the Year as well as Lifetime Achievement Awards for a Builder and Associate members. The awards are the premiere honor awarded to dedicated and respected members of the home building community.

The Spring 2011 SalesCamp is set to kickoff this year’s HBAM Builder Mart and welcome world-renowned speaker and body language expert Janine Driver to the podium as she shares tips on how to tap into your customers’ needs and send signals to help close more business. Visit www.smcsalescamp.com to register.

Builder Mart Wednesday, March 23rd Timonium Fairgrounds

For over 3 decades, more than 6,000 Building Industry Professionals have taken advantage of Builder Mart’s annual 1-day marketplace. More than 500 booths fill the exhibit floor, displaying the latest products and services available to the building industry. Plus, enjoy Builder Mart’s ever popular Bull and Oyster Roast and beer garden - all included. Visit www.buildermart.org to register.

MAX Awards Wednesday, May 18th Martin’s West in Baltimore

The MAX program recognizes local home builders who provide buyers with excellence in design, livability and value.

The program also recognizes excellence in sales and marketing across the home building industry. The event is black tie optional; features a 90 minute open bar cocktail reception and a seated dinner during the awards program. Visit www. homebuilders.org/page/MAX/ to enter your projects.

For event sponsorship opportunities, contact Chris Baughan at chris@homebuilders.org or call 410-265-7400, ext 121.

Lifetime Achievement, Builder Stewart Greenebaum, Greenebaum & Rose Associates Lifetime Achievement, Associate David Thaler, D.S. Thaler & Associates Builder of the Year Chris Rachuba, The Rachuba Group Associate of the Year Leslie Rosenthal, Bob Lucido Team of Remax Advantage Realty

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www.homebuilders.org

Extreme

Commitment HBAM Foundation steps up and brings hope to Baltimore

T

he chain of events that found its way to Chris Rachuba of the Rachuba Group grabbed him and several members of the Home Builders Association of Maryland and took them on an “extreme” ride in early July 2010. That ride would change their lives and the lives of some deserving young girls forever.

It starts with Dan Murtaugh of Sandy Spring Bank, a member of the HBAM Board of Directors who also sits on the Board of the Boys Hope Girls Hope organization in Baltimore. BHGH is a non-profit organization that provides children with long-term care in non-institutional homes staffed by live-in residential counselors. Dan knew that the national television show, Extreme Makeover: Home Edition, was interested in coming to Baltimore to build a girls home in the same neighborhood where a boys home already existed. Dan called HBAM Executive Vice President, John Kortecamp, to inquire whether an HBAM builder would be interested in taking the lead on the build. The two then turned to Chris Rachuba the chairperson of HBAM’s foundation, The Maryland Community Builders Foundation, to take on the project and gain some publicity for the cause. Chris was asked if he would like to assist on the project on behalf of the Foundation and he readily agreed. Together with Excel Homes, a modular builder from Pennsylvania, they began the journey. “I originally thought the project was going to be similar in scope to the existing 2,400 sq. ft. Boys Hope home,” said Rachuba. www.homebuilders.org

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One of Chris’ first calls was to Judi Miller, principal with Architecture by Design, Inc. in Ellicott City. As a fan of the show, she jumped into the project with both feet. In two weeks, Judi had the plans drawn up and then spent another two weeks coordinating with subcontractors and estimators.

One such subcontractor was Jack Lancelotta with Superior Walls by Weaver Precast. Chris made the call to Jack because their product is ideal for an uber fast build where there isn’t time to let the building foundation dry for an extended period.

“We provided the architectural design, construction document and construction administration services,” recalls Miller. In all, the contribution from Architecture by Design topped $30,000.

“What a testament to our members and their dedication to their trade,” commented John Kortecamp. “This is truly a tight-knit industry and members step up for one another,” he added. As if Judi’s contribution of the architectural services wasn’t enough, she came on-site, with her husband, and stayed there for a week, some nights working around the clock. Judi made some minor adjustments to the plans along the way to compensate for some material issues and then dug in her heals and worked side-byside with Chris Rachuba to get the job done.

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www.homebuilders.org

Of his company’s $25,000 plus donation, Lancelotta said, “the gravity of the project sucked me in.” Lancelotta was also on-site every day, becoming involved with planning and serving as the night time local build team project manager. He even got involved in soliciting other vendors for the project. “I told vendors that they needed to capitalize on their participation,” said Lancelotta. He explained how Brothers Roofing gave significantly to the project and turned around and advertised that to consumers.

“It is what you make of it,” he said.

The extreme commitment doesn’t end there. Several other HBAM members gave generously of their time and expertise.

Yana Peifer with Wells Fargo Home Mortgage was the volunteer coordinator for the event, dedicating hundreds of hours to the cause. Marka Guindon with Met Life Homes organized the pep rally for the event and worked tirelessly on-site. Pat Scherer with Pat Scherer & Associates skillfully managed the VIP tent during the event. Cindy Plackmeyer with Cindy Plackmeyer Marketing spearheaded all of the social media for the event. You can see it all at www.facebook.com/buildersfoundation.

Leslie Rosenthal with Bob Lucido Team LLC/Remax Advantage Realty managed the on-site catering for the duration of the event, soliciting and scheduling over 7,000 meals for the workers! Some of the significant product donors included Shelter Systems, Artisian Fine Homes, Ply Gem, Brothers Roofing, TW Ellis and American Design and Build just to name a few. Go to www. baltimoreextrememakeover.com to see the complete list. Thanks go out to the entire HBAM community for their donations of time, materials and money that played their part in making this project a success.

As it turned out, what Rachuba thought would be an average single family home morphed in to an 11,000+ square foot mansion. He spent 9 days and nights in the blazing heat, the rain, the mud, maneuvering around cameras and “talent” (throw in an earthquake) and his most challenging task, in his opinion, was keeping the peace with the subcontractors. Because a torrential rain storm soaked the home before it was completely under roof, time schedules were shifted and the project encountered delays. “The subs had graciously donated time and materials and I didn’t want to upset them by rescheduling them to odd hours and demanding time frames,” he said. It is important to note that Rachuba didn’t participate in this build in order to promote his company, The Rachuba Group; rather, he volunteered his time on behalf of the Maryland Community Builders Foundation.

Right: Jack Lancelotta, Chris Rachuba and Judi Miller.

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www.homebuilders.org

www.homebuilders.org

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Most people agree that once you see behind the curtain, your perspective of the show changes but when asked if the effort was worth it, they all chimed in with a yes. “I feel that Architecture by Design did something that was bigger than we are for the good of others,” said Miller. She adds that she felt a tremendous outpouring of support from the community and has forged friendships during that one crazy week in July that will last a lifetime.

Jack Lancelotta is still involved in Extreme Makeover: Home Edition builds. Superior Walls was part of the Berks County, PA episode. “I’ll fight for our company to participate again,” he said.

“It gave us a chance to showcase what we do.”

As for Chris Rachuba, he stays in touch with Boys Hope Girls Hope. He says his high point of the build was seeing the reaction of the girls when they got the first glimpse of their new home.

It’s pretty clear that love came back around. When Chris was invited to the new home to meet the seven girls who would be living there, they presented him with an engraved place setting and said, “You will always have a place at our table.” n For more information on the Extreme Makeover: Home Edition build in Baltimore and a complete list of sponsors and donors, please visit www.baltimoreextrememakoever.com. For more information on the Maryland Community Builders Foundation, please visit www.buildingindustriesfoundation.org.

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DevelopING

Excellence O

n September 23, 2010 at the Maryland Historical Society, the Home Builders Association of Maryland’s Land Development Council presented it 17th Annual Excellence in Community Developments awards to six deserving recipients; as well as five individual awards in the field of land development.

Per the judging criteria, all entries were evaluated on sensitivity to the environment, sustainable design, development challenges, and unique planning concepts.

The highest award given by the LDC each year, the Project of the Year, was awarded to the Annapolis Towne Center at Parole because it overcame extensive environmental, political and economic challenges with attention to every detail.

This 35 acre, 2.2 million square foot mixed use project sits on the former site of the Annapolis’ first shopping center originally built in the 1960’s. It has since become the new heart of the city’s luxury retail and residential hub.

Upon municipal plan approval, the first order of business in the site’s redevelopment was to remediate environmental damage caused by the initial development and the standards of earlier times. Additionally, extensive off-site traffic upgrades were required to facilitate accessibility to and from major road networks.

The first phase of this intensive mixed use project opened in 2008 and immediately became the new heart of the city beyond its well established historic district. The residential components include 900 luxury high rise apartments and condominiums, replete with a roof top swimming pool, exclusive clubs and concierge service.

Future plans call for an additional 100,000 sq. ft. of Class A office space and a 90,000 sq. ft. hotel site. This former abandoned shopping center has evolved into a thriving mini city in the heart of our State’s capitol.

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MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2011

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Project of the Year Annapolis Towne Center at Parole Developer: Greenberg Gibbons Commercial Corporation Consultant-Engineer: Greenhorne & O’Mara Architect: Martin Architectural Group and KA Architects Location: Anne Arundel County

Individual Awards of Excellence Developer of the Year Karen McJunkin Consultant of the Year Michael Powell Contractor of the Year Matt McCausalan Lifetime Achievement Award Clark Turner Rising Star Evan Moreville

www.homebuilders.org

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Renaissance Square Developer: Enterprise and Mark Building Consultant-Engineer: Mark Building Company, Inc. Engineering and design by Gower Thompson, Inc. Architect: Donald B. Ratcliffe and Associates and Shannon Comer Architect, LLC Location: Baltimore County

This project was the first community in Baltimore County to follow the community design Charette process established by the landmark Renaissance Development Pilot Program through Baltimore County legislation aimed at revitalizing older communities in Baltimore County. Formerly a troubled apartment complex that required more police presence than the rest of Baltimore County combined, the process for converting this land into a viable, community included input by Baltimore County residents.

Orchard Ridge Developer: Penrose Properties and Doracon Development Architect: Wallace, Roberts & Todd, LLC, in Philadelphia, PA Location: Baltimore City

This project converted a former public housing complex into an enormous market potential for northeast Baltimore. This 60-acre site has 444 units planned. Twenty percent of the 195 townhomes have been built and all of the 249 multifamily units are complete and occupied. The adaptive reuse of a public and subsidized housing site, this development captures of the important design elements outlines in the original master plan, which was drafted in 2002 in a public planning process that incorporated the principles of “Traditional Neighborhood Design� creating an urban lifestyle in a sustainable, convenient and a truly enjoyable place.

Belle Haven Estates in Woodbine, Maryland Developer: Grayson Development Consultant-Engineer: DMW (for site engineering), EDSA and Demario Design Consultants, Inc. Location: Howard County

Located on historic farm land in Western Howard County, this parcel was farmed for generations upon generations. This community was designed to complement the historical use of the land and one half of the 98 acres have been set aside for land preservation. The lots will be designed and planned for one-acre plus lots, the majority of which will back up into open space.

Grayson faced a significant development challenge and had to navigate the APFO test for schools and the acquisition of CEOs for density exchanges.

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www.homebuilders.org

Stoney Run Village Developer: Elm Street Development Consultant-Engineer: Sigma Engineering Architect: LeMay Erikson

This a multi-family subdivision is approximately 30 acres in size, transitioning from the dense commercial / retail uses to low density residential uses. This project exemplifies how private development can coordinate planning efforts with local land use planning.

It serves several market segments – rental apartments and two-tiered condominiums for purchase. A thoughtfully designed community strategically positioned midway between Baltimore and Washington, DC.

Village of Meadow Creek Developer: Wyndtryst Development Corporation Consultant-Engineer: Morris & Ritchie Associates, Inc. Location: Carroll County

Village of Meadow Creek is a mixed use development of 188 single family home sites and a 15-acre Neighborhood Commercial and Lifestyle Center. The Commercial Center placed along Route 140 Corridor offers a central gathering location for the neighborhood with surrounding housing development placed along the perimeter. In addition, the residential units were buffered from the internal road system with pocket parks and landscape plantings as well as extensive berm and buffer plantings to shield the neighborhood from the busy corridor throughway. Even more, some larger recreation areas, accessible by trail and sidewalk connections, were fashioned to further insulate residents from busy areas. www.homebuilders.org

JANUARY/FEBRUARY 2011 MID-ATLANTIC BUILDER

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Mid-AtlAntic

Remodeler A supplement to Mid-Atlantic Builder

HBAM Remodelers Council Gold Award Owings Brothers Contracting Beaumont Project $195 to $250K Addition with Alterations

www.homebuilders.org

JAnuAry/feBruAry 2010 MID-ATLANTIC BUILDER

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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

before&after Owings Brothers Contracting Beaumont Project The existing exterior of this Cape Cod was completely brick with two large bay windows as its focal point. This addition not only anchors the right side of the house but introduces new lines and sophistication. The combination of matching dormers, a large masonry fireplace, which flanks the house’s opposite existing fireplace and the introduction of shingle-style layered exterior trim provides for a flowing and appealing exterior. The new interior beautifully transforms the existing floor plan. What were once small, box-like bedrooms are now integral parts of the transition that takes you from the old to the new. n

Susquehanna Bank

Saratoga Insurance

T.W. Perry

Contact 410-265-7400, ext. 121 about 2011 Sponsorship Opportunities

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MID-ATLANTIC REMODELER A Supplement to Mid-Atlantic Builder January/february 2011

www.homebuilders.org

president’smessage

We Have Your Competitive Advantage I hope everyone had a happy holiday season.

From all of the reports I have read, the remodeling industry should experience an upturn after several challenging years. While the experts predict an increase in spending for remodeling services, the competition will continue to be fierce. For the most part, consumers know that it is a buyer’s market.

In an effort to survive and prosper in this environment, it is critical that we look for ways to reduce costs and provide a differentiated product. While this seems easy, it can be hard to accomplish.

As we start the New Year, we need to continue to look for ways to reduce our cost structure. It is important to evaluate your operations and determine what items are needs and what are wants. Unfortunately, in these tough times some of the wants (tools, equipment or staff) will need to go. Another way to reduce costs is to gain economies of scale and form alliances with select vendors who can provide preferred pricing. The Remodelers Council has a host of strong trade contractors and vendors who can help strengthen your business. These alliances can help when you are in need of a competitive advantage.

One of the easiest ways to reduce cost and increase the bottom line is early pay discounts.

Everyone loves to get their cash. Most vendors and some trade contractors offer discounts of 1-2 percent, if invoices are paid within 10 days. With proper deposits from your clients, it should be easy to take advantage of these discounts. Even if you need to borrow from your bank, the savings can be tremendous.

In this competitive market, it is critical that you demonstrate to the consumer that your product is different from the competition. You can promote your level of quality, the longevity of your employees and relationships with trade contractors/vendors as factors in providing a better product.

If you are not already a member of the Remodelers Council, you need to be. Your membership in the Council shows your commitment to the industry. It says you are committed to performing work in accordance with the highest industry standards and ethics. It is important that you educate your clients about the value that you provide.

I would like to wish all of you the best of luck with your businesses in 2011.

Thanks,

Taylor Classen HBAM Remodelers President

Why join HBAM Remodelers?

Member Benefits 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 Stuart Garlington Towne Craft Builders Daniel Winner Winner Construction Group, Inc. Jason Goetz K.C. Company/ Pella Windows & Doors

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

January/february 2011 MID-ATLANTIC REMODELER A Supplement to Mid-Atlantic Builder

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SMC

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MID-ATLANTIC REMODELER A Supplement to Mid-Atlantic Builder January/february 2011

www.homebuilders.org

Remodelers Council announces 2010 Awards of Excellence

T

he Remodelers Council of the Home Builders Association of Maryland, the HBAM Remodelers, announced the winners of the annual Remodeling Award of Excellence competition on November 11th at Martin’s West in Baltimore. This program, in its 20th year, serves to recognize excellence in remodeling design and craftsmanship, to create a greater public interest in the remodeling industry and to recognize outstanding contributions by individuals and companies in the remodeling industry.

An evaluation team that consisted of remodeling contractors from around the Baltimore Metropolitan area rated all entries.

The criteria used to judge the entries included: quality of construction, degree of difficulty, value and cost effectiveness, unique and creative design approach and sensitivity to existing structure.

Individual awards were also presented for Remodeler of the Year and Remodelers Associate of the Year. Joseph Smith, CGR, CGP, CAPS, Managing Partner of Owings Home Services in Eldersburg, Maryland, took home the coveted Remodeler of the Year Award. Joe has over thirty years of expertise in both commercial and residential construction and his experience involves new construction and remodeling. In addition, he was named the National Association of Home Builders Remodeler of the month in February 2010.

Remodelers Associate of the Year went to Arif Durrani, Sales and Marketing Manager KC Company/Pella Windows & Doors.

For the past 20 years, Arif has represented KC Company, Inc., the regional Pella Window and Door distributor. He is currently the Manager of the Remodeling and Eastern Shore Divisions and has been recognized nationally with the National Director’s Award for Excellence in Remodeling.

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MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2011

www.homebuilders.org

Gold Kitchen Addition $100 – $150K Owings Brothers Contracting Gourmet Kitchen Project

Remodeling at its www.homebuilders.org

BEST JANUARY/FEBRUARY 2011 MID-ATLANTIC BUILDER

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Silver Bathroom/s Remodel $46 – $80K Owings Home Services Southfields Project

Gold Exterior Remodel $75 – $100K Fick Bros. Roofing & Exterior Remodeling Company Budnitz Residence Reroofing

Silver Commercial Up to $150K LangKuhn LLC I Street Office

Honorable Mention Bathroom/s Remodel $46 – $80K Wheatley Associates Inc. Monkton Bath 30

MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2011

www.homebuilders.org

Silver Commercial $400 – $500K Van Deusen Construction Waste Industries Project

Silver Bathroom/s Remodel $46 – $80K The Baywood Design/ Build Group, Inc. Cohen Master Bath

Gold Bathroom/s Remodel $46 – $80K River Crest Design Build Schaefer Bathroom

Silver Kitchen Remodel $50 – $100K The Baywood Design/Build Group, Inc. Wieder Kitchen

Gold Bathroom/s Remodel Up to $45K White Wave Builders Meyer Bathroom Remodel

Gold Historic Restoration $500 – $750K Azola Building Rehab Maryland Building at the Maryland Zoo in Baltimore 31

Gold Other – Addition $125 – $175K Plumb Construction Co., Inc. Grimm Residence

Gold Exterior Remodel Up to $50K LangKuhn LLC Falls Church Residence

Gold Kitchen Remodel Up to $50K Catonsville Contractors Woodcrest Remodel

Silver Exterior Remodel Up to $50K Starcom Design Build Muheim Exterior Renovation

Gold Interior Remodel $200 – $250K Catonsville Homes Mohler Renovation

Gold Kitchen Addition $175 – $225K LangKuhn LLC Residence in Annapolis

Silver Other – Addition with Alterations $195 – $250K T.W. Ellis, LLC Welch Addition

Gold Whole House $1 – $1.5M Delbert Adams Construction Group, LLC Stately Renovation

Gold Other – Addition with Alterations $195 – $250K Owings Brothers Contracting Beaumont Project

Gold Interior Remodel – Basement $50 – $100K Wall To Wall Construction Mohler Project

www.homebuilders.org

JANUARY/FEBRUARY 2011 MID-ATLANTIC BUILDER

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Gold Whole House $850K – $1.5M Purple Cherry Architects Annapolis Residence Renovation

Silver Kitchen Remodel Up to $50K Starcom Design Build Cogswell Kitchen

Gold Whole House $350 – $550K LangKuhn LLC Severna Park Residence

Silver Whole House $150 – $200K Wall To Wall Construction Bowler Project 34

MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2011

www.homebuilders.org

Gold Interior Remodel $150 – $200K McCloskey Group LLC 3615 Stansbury Mill Road

Silver Outdoor Living $100 – $150K T.W. Ellis, LLC Kane Project

Silver Outdoor Living $75 – $100K The Baywood Design/ Build Group, Inc. Brod Screened Porch

Gold Outdoor Living Up to $60K bluehouse architecture Phoenix Deck and Covered Patio

Silver Other – Addition with Alterations $50 – $100K bluehouse architecture Glyndon Master Suite and Retreat Addition

Gold Outdoor Living $100 – $150K Robert Kutner Associates, Inc. Schaefer Outdoor Living Environment 35

Gold Whole House $450 – $550K Timberlake Building and Renovations, LLC River Bay Road Renovation

Gold Whole House $250 – $300K Wall To Wall Construction Myers Project

Silver Other – Addition $125 – $175K T.W. Ellis, LLC Shipley Addition

Gold Outdoor Living $75 – $150K Robert Kutner Associates, Inc. LaVeist Outdoor Living Environment

Gold Whole House $150 – $200K Catonsville Contractors Edmondson Avenue

Gold Kitchen Remodel $50 – $100K Starcom Design Build Rakosky Kitchen

Silver Bathroom/s Remodel Up to $45K Owings Home Services Heneson Project 36

MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2011

www.homebuilders.org

Silver Outdoor Living Up to $60K Wall To Wall Construction Brookman Project

Sponsors Chesapeake Home Magazine IWIF KC Company/Pella Windows Lynch Construction Saratoga Insurance Susquehanna Bank TW Perry

Gold Other – Detached Over $700K Owings Brothers Contracting Sports, Sports, Sports

Gold Commercial $400 – $500K Delbert Adams Construction Group Private Country Club

Silver Kitchen Addition $100 – $150K Rule4 Building Group Wandell Residence Kitchen Remodel

www.homebuilders.org

JANUARY/FEBRUARY 2011 MID-ATLANTIC BUILDER

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TW PERRY’S 3rd Annual Green Building Workshop WANT TO STAY ON TOP Of THE LATEST TRENDS

AND INNOVATIONS IN GREEN BUILDING?

TW Perry, a company at the forefront of green building practices and products, invites you to join expert speakers and top product manufacturers for a day of informative sessions and networking.

ABOUT TW PERRY Celebrating our 100th anniversary this year, TW Perry has become the leading independently owned full-scale building materials supplier in the mid-Atlantic region and one of the most respected in the nation.

TW Perry is a Green Certified Dealer™ through LBM Journal and has achieved FSC certification and SFI Chain-of-Custody certification, making us one of the few building materials dealers in the country to attain dual certification. We also have the only green certified lumberyards in the region.

FOR DETAILS AND REGISTRATION, GO TO HTTP://GBW.TWPERRY.COM The Mid-ATlAnTic’s PreMier evenT for designing, Building & selling green ThURsdAY, MARch 17, 2011 8:00 AM – 5:00 PM George Mason University, Center for the Arts Concert Hall Fairfax, Virginia TIcKETs: $45 Price includes breakfast, lunch, and all-day parking cOnTInUIng EdUcATIOn cREdITs AIA: 4.5 hours (TW Perry is now an AIA/CES Provider) NARI: 6 hours NAHB: 6 hours

2011 PLATInUM sPOnsORs

don’T Miss The workshoP ThAT’s quickly BecoMe one of The nATion’s foreMosT evenTs on green Building!

market recovery series

The Battle for the New Home Buyer is Raging It takes an experienced new home team to make the sale

By Leslie Rosenthal

I

n today’s challenging economic times, selling new homes has become a battlefield, requiring a savvy, experienced sales force skilled at new home construction, home values, financing and, most of all, the ability to lead and make decisions that result in a sale.

With the recession still in full swing and no end in sight, most businesses today (including home builders) are all about cutting overhead to survive. Cutting in the wrong places, however, can spell disaster for a home builder. Turning sales into a part-time enterprise led by a residential real estate agent may save some upfront dollars but could spell disaster long term. With fewer qualified home buyers and everyone competing for these select few, having a experienced new home sales team in place to work the lead and make the sale is critical. After all, the formula for success is still the same: Opportunity plus preparation equals success. With the opportunities fewer, the preparation becomes even more critical. Here are the major benefits of engaging an established, proven new home sales team: • Successful new homes sales and marketing teams can assist with every stage of the development process: • L and and market appraisals • Viabilities and budgets • Marketing and cost effective media planning • Events and public relations • Sales Center design and model staging • Site sales staff • Mystery shopping • New home sales pros understand how a new home is built, appreciate the builder’s unique construction techniques and model lifestyle features. They have the ability to leverage this knowledge to position the builder effectively with prospective buyers, by maximizing his strengths and pointing out the weaknesses of his competitors. Plus, the ability of the new home marketing pro to talk intelligently and with conviction about new home construction is a huge advantage.

• Most real estate professionals possess a working knowledge of financing and can assist buyers in the mortgage process.

However, an experienced new home sales team is also adept at working with a wide range of new home buyer demographics.

Many new home teams have a pre-qualification program in place and can bring more non-contingent buyers to the table.

This program, coupled with the new home pro’s ability to connect quickly and successfully with each buyer, can often make or break a new home sale.

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MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2011

• Knowing how to market cost effectively and efficiently in this age of digital and online communication is still another strength of the experienced new home marketing team. New home pros know that when they communicate with a buyer, they are not just talking to them. They are also talking to everyone connected to them. Recent studies by the Harvard School of Business and major media research firms like Deloitte LLP and Harris Interactive underscore the importance of social network marketing and its effectiveness in making the sale.

• No broker templates or boilerplate programming. An experienced and multifaceted new home marketing team will customize a sales and marketing program based solely on the needs of the individual home builder, community or custom home opportunity. The ability to do exactly what the individual builder needs in this economy is priceless.

• The new home marketing team is active 24/7 in today’s ever changing marketplace. They are usually the first to know and the first to discover new opportunities. Land deals, foreclosures and bank workouts are on their radar, and they can bring all this and more right to the builder’s doorstep.

In the 1960’s, songwriter and pop culture prophet Bob Dylan wrote “there’s a battle outside and it’s raging. And the times they are a changing.” This is certainly an appropriate marketing anthem for today’s home builder as well as other business owners.

Recognizing change and paradigm shifts is simply not enough. It is the ability to adapt quickly and successfully to these changes that can be the difference between life and death in today’s economically challenged business world. The experienced new home marketing team has been in the trenches. They have the right equipment and gear to fight the battle and win the war for today’s home builder. n Leslie Rosenthal is the Director of Marketing and New Home Sales for The Bob Lucido Team, a firm whose team members have represented over 200 builders and been involved in the sale of over 30,000 new homes and over 4,000 lots in over 1,000 communities. Please visit their website at www.boblucidoteam.com for more information.

www.homebuilders.org

green building GETTING TO GREEN—(OOPS! – GETTING TO SUCCESS!!)

GOING, GOING, GONE GREEN!

By H. Alan Mooney, P.E. President, Criterium Engineers

“ I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.”

– Maya Angelou

W

hat’s your signature??

John Smith – Builder As you know, I have been privileged to write a column for your magazine for the last several years focusing on the National Green Building Standard (NGBS) and discussing how you can build homes that can be certified to various levels of GREEN under NGBS. I have also had the opportunity to present some classes on NGBS as part of the excellent HBAM educational program.

At the end of most of my columns I have closed with the thought: “…just being a Green Builder will not distinquish you from the crowd. Being a quality builder, with a reputation (your signature) for honest, professional service who embraces Green Construction Standards is needed to assure your long term success.”

In just a few years, building GREEN has become mainstream, as I predicted and my comment is more relevant than ever! You have seen the articles in many publications including BUILDER magazine; that you build a GREEN home is now assumed by most home buyers.

It is no longer a quality that will distinguish you from the crowd. In fact, the reverse is true, if you are not building with credible GREEN qualities, you will not be seriously considered by many home buyers.

Of course, what people mean when they say GREEN or what they hear when you say GREEN varies enormously and, in some cases, is quite inaccurate. However, GREEN is assumed. You will not “stand out from the crowd” just by claiming to be a GREEN builder.

What, then, is your signature?

John Smith – Very G reen Builder 42

MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2011

The editors of Mid-Atlantic Builder and I have decided to shift the focus of this column to discuss broader issues we believe will be of interest to you as a home builder. These include: • Construction details that matter • Evolving building technology • Why you can’t build a perfect home • Construction risk management • Construction quality • Your signature as a builder • And more...

While I promise not to waste your time talking too much about my experience and qualifications; for those who want to know that my background justifies my venture into this broader arena, here are a few highlights from my career: • Personally inspected more than 15,000 homes • Consulted with several, national production builders • Helped solve problems for many small builders • A m a licensed, Professional Engineer in eight states • Residential construction experience in more than 30 states • Have presented seminars on residential construction in more than 30 states • Served as construction litigation expert and witness • Consulted with major insurance companies on construction loss control and risk management • 40 years of experience (Wow! That’s scary!)

I am writing this column as a courtesy to HBAM because John Kortecamp is a good friend and because there are many good people at HBAM with whom I enjoy working. I also believe I have something of value to offer. Ultimately, however, that’s for you to judge.

As you read my future columns, if you have questions, please feel free to send me an e-mail (hamoooney@criterium-engineers.com), I will try to respond in a future issue. www.homebuilders.org

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!

So, what about your signature??

John Smith – Builder of Extraordinary Homes!

I saw an interesting quote today, just before I started writing this column: “I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.”

(Maya Angelou) If you’re not familiar with Maya Angelou, here is a quote from her website bio – “Dr. Maya Angelou is one of the most renowned and influential voices of our time. Hailed as a global renaissance woman, Dr. Angelou is a celebrated poet, memoirist, novelist, educator, dramatist, producer, actress, historian, filmmaker and civil rights activist.”

While being subjective about construction is a challenge, I think this concept of how your customer feels is important.

A few years ago, during an interview, J.D. Power (widely known for his consumer product quality surveys and ratings) was asked what he considered to be the most important change in U.S. consumers in the last decade. His quick, clear and concise answer was “Perception is Reality.” That’s another way of saying that what matters is how you (and your homes) make people feel.

Almost anyone can build a sound, functional house. But that’s not what most people buy.

They are buying a life style and they need to feel good about it.

Here, in my opinion, are the key elements of your SIGNATURE; those things that should guide how you build your homes and how you serve your customers.

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. And they are typically not very knowledgeable about construction. 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 www.homebuilders.org

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. And then follow up with your customer to be sure they are satisfied.

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 home buyer understand what to expect from their new home will reduce complaints and increase your credibility. You will do your best but you (and your home) are not perfect. While it may seem contradictory, such information will actually help build your reputation.

5. Responsive Service – I know, that’s the same as #1, but it can’t be overemphasized. And 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 home. That’s your signature and no one can take that away, or duplicate it. It is uniquely you and your company.

John Smith – A Builder you can Trust In the next issue, we will explore the elements of your signature in more detail and offer some specific programs you can implement. 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 and has been the author and presenter for various NAHB programs, mostly on construction quality. For more information, please visit www.criteriumengineers.com and www.criterium-quality.com.

JANUARY/FEBRUARY 2011 MID-ATLANTIC BUILDER

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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 Maryland Green Show

HOMEBUILDERS Association of Mar

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

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.

HBAM Welcomes new Members ASSOCIATE

J.F. Sobieski Mechanical Contractors, Inc. Ashley Jenkins 14 Road Phone: 302-993-0104 www.sobieskiinc.com Subcontractor - Water Cond., Mgmt., Proof & Wells

AT&T Advertising Solutions

Designability, LLC

SouthFen, Inc.

Grant Hamlett 409 Washington Avenue, Suite 205 Phone: 410-967-7187 410-427-6482 Professional Services - Advertising & Marketing Sponsor: Leslie Rosenthal, Bob Lucido Team LLC Remax Advantage Realty

Rosemarie Ahern Dubina 418 Arundel Beach Rd Phone: 443-994-2183 410-544-1892 Professional Services - Interior Design

Julie Lafferty 3035 Ayres Chapel Road Phone: 410-557-7311 410-557-8211 Builder

Kim Engineering, Inc.

HALP Land Development Corp.

Ron Pyles 3505 Ellicott Mills Drive, Suite C-1 Phone: 410-480-1062 410-480-1064 www.kimengineering.com Professional Services - Engineering & Technical

Anne Louise Perlow 100 Painters Mills Road, Suite 200 Phone: 410-653-3400 Developer Sponsor: Robyn Perlow, Residential Title and Escrow

BUILDERS

Winner Construction Group, Inc.

The Loewen Window Centers

C.J. Miller 3514 Basler Road Phone: 410-239-8006 410-239-8732 Subcontractor - Excavating, Grading & Utilities

Scott Ricker 7201 Rolling Mill Road Phone: 443-421-8320 410-282-9566 Supplier - Doors, Windows & Glass Block Sponsor: Eliot Powell, Whitehall Development

Swift Flooring

Duane Morris, LLP

CJ Miller LLC

Nu-Homes, Inc.

James Parker James Parker 10611 Iron Bridge Road Phone: 800-275-3895 301-543-8070 www.swift-flooring.com Subcontractor - Flooring

Scott Marder 111 S. Calvert Street, Suite 2000 Phone: 410-949-2941 410-558-6370 www.duanemorris.com Professional Services - Legal

Stone Marketing Resources

Chaney Enterprises

Doug Stone 93 Drawing Arm Lane Phone: 301-992-3698 Professional Services - Advertising & Marketing Sponsor: Theresa Leatherbury, The Rachuba Group

REMODELERS

Daniel Winner Daniel Winner 319 Thornhill Road Phone: 410-342-2972 www.winnerconstruction.com Remodeler- Kitchen & Bath

Harry A. Bowie, Jr. 10630 Little Patuxent Parkway Phone: 410-730-2100 410-730-2011 www.nu-homesinc.com Builder

Baltimore Home Rentals Charles Ritchey Charles Ritchey 2101 Belair Road, Suite H Phone: 410-877-2453 www.baltimorehomerentals.com Remodeler Sponsor: Donald Lynch Jr., CGR, CAPS, Lynch Construction

Towne Craft Builders, LLC Steven Tripp 12480 Mattawoman Drive Phone: 301-932-5000 301-870-8086 www.chaneyenterprises.com Supplier - Masonry & Concrete

Stuart Garlington P.O. Box 218 Phone: 301-737-5400 301-737-5425 townecraftbuilders.com Builder

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?

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

Maryland Community Builders’ Foundation

www.homebuilders.org

Don’t stand on the sidelines—Get involved today www.buildingindustriesfoundation.org

JANUARY/FEBRUARY 2011 MID-ATLANTIC BUILDER

45

governmentaffairs The HBAM Government Affairs department is responsible for monitoring state and local legislative, governmental and regulatory activities, which impact the housing industry, and coordinating HBAM’s actions and responses. They represent HBAM members before state and local government officials, the business community and the public. Members of this department monitor local legislation, attend public hearings and keep chapter and council members informed of relevant local issues. You can reach Michael Harrison at 410-265-7400, ext. 109 or Jeff Tosi at 410-265-7400, ext. 101.

Maryland Regulatory NPDES Transition—MDE has again revised their plan to transition all current NOI holders to the 2009 permit. Due to concerns raised by MSBA about the December 2010 timeframe, MDE is extending the deadline for all current NOI holders for transition to the current permit. Current permit holders can continue under their current NOI coverage until June 30 2011. Projects that will not commence construction on or before that date must reapply for coverage under the 2009 permit. Additionally, applications to obtain coverage under the current permit MUST INCLUDE THE APPROPRIATE PERMIT FEE. Please note that you will receive a request in writing from MDE to remit the NOI fee for all applications submitted without payment.

NPES Modifications—MDE has announced that they will not be moving forward with proposed modifications to the General Permit in light of the EPA withdrawal of the turbidity limit. They intend to move forward on any necessary modifications to the permit once EPA has a new rule in place (estimated early fall 2011).

Erosion and Sediment Control draft regulations/technical standards—MDE has

proposed revisions to the state Erosion and Sediment regulations. The proposed regulations included a 20-acre grading unit limit and accelerated stabilization timeframes. MSBA submitted detailed comments to the regulations including a proposed transition for the new regulations that coincides with the Stormwater grandfathering. It is not clear how MDE will handle the grandfathering issue in the regulations. They are scheduled to be finalized within the next 30 days.

Tier II Stream Regulations—MDE has final-

ized changes to the regulatory criteria used to determine Tier II or “unimpaired” streams in the State. The new criteria will be implemented as part of the triennial review of Maryland waters.

State Highway Administration entranceway permit interim study—The State Highway

Access Permit Review Commission issued the final recommendation report and has begun implementation of staffing changes and process streamlining. Discussions about offsite mitigation continue.

Septic Regulations—MDE has drafted revisions to the state septic regulations but has yet to formally propose the changes.

MSBA anticipates a proposal early in 2011.

TMDL’s—Maryland submitted their final Watershed Implementation Plan (WIP) outlining pollution reductions that will be implemented to meet their allocations.

EPA is expected to approve the Plan by the end of 2010.

Maryland Legislative Stormwater user fees—It is unlikely that

a user fee bill will be introduced in the 2011 Legislative Session; certain environmental groups are pushing for this legislation now.

BRF fee increase—MDE will review a number of mechanisms to revise and increase the fee to meet additional upgrade costs.

Legislation is not expected until 2012.

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MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2011

Fertilizer Restrictions— the Attorney General’s Office will propose fertilizer restrictions in the 2011 Session.

Federal Legislation Senate Chesapeake Bay Legislation (The Cardin Bill)—The Senate attempted to pass the

Cardin bill during the lame duck Congressional Session or attach provisions to a larger measure. Both strategies failed.

MSBA had actively participated with Senator Cardin’s staff on the elements of the bill.

Federal Regulation MSBA submitted comments to EPA on the baywide TMDL. The new guidance is expected to be finalized by the end of 2010.

MSBA participated in the Small Business group on the merits and elements of any additional National SW Rule as well as the need for additional SW rules for the Chesapeake Bay. The EPA is expected to issue a statement of what they are intending to do by September, 2011.

2010 Election Results for Local Governments

Anne Arundel County County Executive John Leopold (R) – Re-elected to 2nd term County Council District 1 - Daryl Jones (D) – re-elected District 2 - John Grasso (R) – new District 3 - Derek Fink (R) – new District 4 - Jamie Benoit (D) – re-elected District 5 - Dick Ladd (R) – new District 6 - Chris Trumbauer (D) – new District 7 - Jerry Walker (R) – new Baltimore County County Executive Kevin Kamenetz (D) – new County Council District 1 - Tom Quirk (D) – new District 2 - Vicki Almond (D) – new District 3 - Todd Huff (R) – new District 4 - Ken Oliver (D) – re-elected District 5 - David Marks (R) – new District 6 - Cathy Bevins (D) – new District 7 John Olszewski, Sr. (D) – re-elected www.homebuilders.org

www.homebuilders.org Carroll County County Commissioners District 1 - Robin Frazier (R) – new District 2 - Haven Shoemaker (R) – new District 3 - Dave Roush (R) – new District 4 - Richard Rothschild (R) – new District 5 - Doug Howard (R) – new Cecil County County Commissioners District 1 James T. Mullin (R) – not up for election District 2 - Tari Moore (R) – new District 3 - Michael Dunn (R) – new District 4 - Diana Broomell (R) – new District 5 Robert Hodge (R) – not up for election Harford County County Executive David Craig (R) – re-elected County Council Council President Billy Bonniface (R) – re-elected District A - Dion Guthrie (D) – re-elected District B - Joe Woods (R) – re-elected District C - James V. “Capt’n Jim” McMahan (R) – re-elected District D Chad Schrodes (R) – re-elected District E Richard Slutzky (R) – re-elected District F Mary Ann Lisanti (D) – re-elected Howard County County Executive Ken Ulman (D) – Re-elected County Council District 1 Courtney Watson (D) – re-elected District 2 - Calvin Ball (D) – re-elected District 3 Jennifer Terrasa (D) – re-elected District 4 Mary Kay Sigaty (D) – re-elected District 5 - Greg Fox (R) – re-elected ■

www.homebuilders.org

Designed to meet the needs of builders, remodelers, subcontractors, suppliers and home owners.

• Easy to navigate, both consumers and industry professionals can instantly gain access to membership lists, statistical information, government affairs updates, event calendars and more.

• You’ll be able to register for events on line, update your membership information, pay dues and more.

JANUARY/FEBRUARY 2011 MID-ATLANTIC BUILDER

47

BRAC Where’s the BRAC? In 2010, some of you may have felt like Clara Peller, the little old lady, who loudly questioned in the classic 1984 Wendy’s commercial “Where’s the beef? Where’s the beef?”. We continue to hear from residential builders and developers in the Baltimore Metropolitan area ... Where are the BRAC buyers? Let me assure you, they are here, they are continuing to look for homes and more are coming.

Let’s start at Aberdeen Proving Ground; According to a report released by the Chesapeake Science & Security Corridor (www.apg-cssc.com), as of September 2010, more than 2,400 jobs had been transferred to Aberdeen Proving Grounds. It is important to note, most of these jobs are high-paying, Department of Defense government positions GS 12 to GS 15 (earning $80,000 to $112,725 per year). So, these high tech, high paid people are now working in our area. The question is where are they living?

According to an article published in the Baltimore Sun in December 2010, Havre de Grace ranks second as a popular spot for these new residents.

Early mover data also indicates that new residents are buying and renting in these locations in equal measure. Discussion with new home builders indicates an estimated 30 percent of sales in 2010 were BRAC related, a nice bonus in a down year. And many expect to see additional sales impacts in 2011 and several years beyond. There are generous relocation packages offered to those accepting transfer positions. These include closing cost assistance, moving expense assistance, and guarantee purchase of existing homes and in some instances early transfer bonuses. But these incentives expire 24 months after moving orders are received. So those that are now renting or weekend commuting will hopefully become buyers in the next two years.

The Beef of the BRAC...

Further South

Since most of these positions are being transferred from Fort Monmouth, New Jersey, it is not unexpected that the first wave of those relocating have chosen more northern locations to call home.

Harford County is by far seeing the greatest impact of BRAC. Early mover data for jobs transferred to Aberdeen Proving Ground indicates that 60 percent have chosen to live in zip codes in Harford County, 18 percent Cecil County, 7 percent New Castle County, DE, 5 percent Baltimore County, 2.5 percent Baltimore City and 2 percent Chester County, PA. These numbers closely resemble the PreBRAC personnel distribution.

Bel Air has proven to be a popular destination capturing almost 40 percent of these new Harford County residents. Feedback from builders, Realtors and rental agents indicates this is all about schools, schools, schools and retail. Bel Air schools are the highest ranked in the Harford School system. Retail is familiar and nearby but given the holiday crush traffic reports, we hear prospects are expanding their search.

Further south at Fort Meade it appears builders and developers are positioning themselves for an onslaught of renters vs. buyers. With most of the jobs being transferred to Fort Meade currently located in Northern Virginia, published studies have indicated few of the direct position and contractors are expected to move.

Several apartment communities in the planning stage in the Odenton Town Center area indicate builders have done their homework targeting this customer.

However officials in surrounding jurisdictions including Anne Arundel and Howard Counties are optimistic that the contractor trail will prompt substantial job growth and further impact the new home and resale market.

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MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2011

How Do You Get to Them?

So how do you get to these folks? First of all they talk to each other. Good experiences and bad are passed on. I can hear the marketing people saying ooh, ooh referral program. Remember, these are government workers and are prohibited from accepting these types of offers. Spend the money on customer service and you’ll earn a better return. Remember, these are tech people. They start their search on the web. Is your web marketing and social networking up to speed? What is said about you in a Google search? As with most new experiences many are fearful in a new area and a new economy so there is a high Realtor co-op rate with this buyer looking for guidance and direction. Realtors are working hard to get to this buyer. And lastly, most of them lived and worked in one area all their lives, their families and experiences are elsewhere. How do you make it easier and more familiar for them?

If you have a different experience or can add to this information let us know.

This column is for the benefit of HBAM members. Over the next few years there will be thousands of new jobs coming to our member area as a result of BRAC. We are hoping every member will see a direct benefit. n 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. 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. mation, please visit www.criterium-engineers. com and www.criterium-quality.com. www.homebuilders.org