MARYLAND AWARD OF EXCELLENCE winners
Mid-Atlantic
Vol. 56 Issue 2 May/June 2014 www.homebuilders.org
p/Oct Coming Up in Se ilder Bu ic nt tla Mid-A
HBAM Commemorative Issue
Puttin’
on the
MAX HBAM Announces 2013 Maryland Award of Excellence Winners
Products your customers crave with the service of your dreams. Vintage provides innovative technologies to make homes safe and enhance lifestyles. Call us for security systems, home theatre, whole house music systems, home automation, and structured wiring.
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MID-ATLANTIC BUILDER may/june 2014 www.homebuilders.org
8441 Dorsey Run Road Suite A Jessup, Maryland 20794
www.homebuilders.org
may/june 2014 MID-ATLANTIC BUILDER
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May/June 2014 Vol. 56 Issue 2
Mid-Atlantic
Editor Kristin Josephson Hogle, Communications Director communications@homebuilders.org
Advertising Chris Baughan, Advertising Sales Manager 410-265-7400, ext. 121 chris@homebuilders.org
Design Heather Winkel, Art Director Corinne Thompson, Graphic Designer Kelsy Stone, Graphic Designer Network Design Group ndg@networkmediapartners.com
HBAM Legal counsel Linowes and Blocher on the cover Large Volume Town Home, Wormald Companies above Wormald Companies Amboise
Mid-Atlantic Builder
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18 Merger Message
Green Building The Latest and Greatest! But is it really? 43 IBS
is a publication of HBAM Member Services, Inc., a subsidiary of the Home Builders Association of Maryland, Inc., 6030 Daybreak Circle #A150 PMB 362 Clarksville, MD 21029 410-265-7400, www.homebuilders.org.
25 Key Connections Recap
Departments
Postmaster: Send address changes to Home Builders Association of Maryland, Inc., 6030 Daybreak Circle #A150 PMB 362 Clarksville, MD 21029
08 Maryland Award of Excellence
The Maryland Award of Excellence for the best in new home product, sales, marketing and merchandising will wow you. One-on-One with the Presidents of HBAM and MNCBIA. Key Connections is an intense half-day, face-to-face, networking event that puts associate members face-to-face with decision makers from HBAM’s builder, developer and remodeler companies.
26 Conversation, Conversions and
Also
04 06 36 41 42
President’s Message Events Stats and Facts Government Affairs New Members
Measurements.
32 2014 General Assembly Session Report With the session over, focus turns to campaigning. By Katie Maloney
Mid-Atlantic Builder text and cover pages are printed on SFI certified Anthem Plus Gloss using soy ink.
Pages 21-24 Pull-Out Section MID-ATLANTIC
What every marketing manager needs to know in 2014. By Dennis O’Neil
ECO BOX
Remodeler
• The Sustainable Forestry Initiative® program promotes sustainable forest management.
A supplement to Mid-Atlantic Builder
34 Builder Mart Recap
2014 was a sold-out show for Builder Mart with plenty of new features. HBAM Remodelers Award of Excellence
Kitchen Remodel $150,000–$200,000 Wall to Wall Construction The Lamb Project
www.homebuilders.org
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MAY/JUNE 2014 MID-ATLANTIC BUILDER
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MID-ATLANTIC BUILDER may/june 2014 www.homebuilders.org
How will you meet 2012 Energy Code requirements?
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Contact Eddy Esplund, Tremco Barrier Solutions, to schedule a no-obligation “Energy Trade-Off Analysis” on your most popular home models. Learn how the Enviro-Dri WRB can reduce air changes, reduce your construction costs, and help you meet the 2012 IECC code. EDDY ESPLUND, CSI-CDT AT 609.206.7624 EESPLUND@TREMCOINC.COM
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Enviro-Dri®
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may/june 2014 MID-ATLANTIC BUILDER
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2014 HBAM Leadership Executive Committee Russell Dickens President
Tom Baum President Elect
Steve Breeden
president’smessage
First Vice President
Lisa Junker Associate Vice President
Steve Smith Secretary
Sold-Out. Ground Breaking. Award Winning.
Kimberly Palmisano
Pretty impressive accolades that have been floating around HBAM lately, don’t you think? We
Jim Krapf Anne Arundel County James Mathias Carroll County David Murphy Baltimore County Russ Robertson Baltimore City James Fraser Howard County Dan Whitehurst Upper Chesapeake
are on a roll. Even though times have been tough for our industry over the past couple of years, HBAM hasn’t stopped working for you and it is paying off. At Builder Mart in March, we had 71 NEW booths and the show floor was sold out! This trade show is HBAM’s biggest income generator aside from membership and it is vital to our success that it does well. Thanks to members and industry professionals from around the region, the attendance this year was over 3,600 – the highest it has been in years. We are always implementing new ideas into the show and, for the first time ever, we held a Builder Mart after-party. It was epic! Hundreds of people stayed to listen to the live band and continue networking with members. It was such a hit; we’re doing it again next year. Mark your calendar for Builder Mart on March 25, 2015. I’ll see you there. In addition to the success of Builder Mart and many of our other events, we’ve been making headlines for our membership efforts as well. HBAM came in 1st place for the National Association of Home Builders Fall Membership Madness Drive. We were presented with a check for $2,500 at the NAHB International Builders’ Show in Las Vegas. Thank you to all the members who took the time to make calls and give us your vendor lists. We can always use your help recruiting new members. As an added bonus, May is national membership month and you will receive TRIPLE spike points when you bring on a new member. Much of our energies, as of late, have been focused on the Maryland Center for 4
Housing. Those efforts have finally come to fruition. We moved into the new headquarters building in May and it exceeds our expectations. Our members contributed their time, effort, money, materials, labor and some blood, sweat and tears to this building. If you haven’t already been out to see it, please join us for the Grand Opening on June 18th. There, we will honor those donors and officially welcome you to your new home with a happy hour from 5-8 pm. We aren’t alone in our new building. The staff of the Maryland National Capital Building Industries Association moved in with us, awaiting the merger of our two associations. Our merger committees have been in detailed discussions, working out the particulars to unify us into the Maryland Building Industries Association. Things are moving forward and we estimate that we will officially be “one” some time in early fall. That being said, it is the perfect time to get involved. We will be reworking committees, adding councils, reorganizing boards and we need members to serve. This association is expanding its territory, its power in Annapolis and its networking opportunities for you. I promise you will get more than you give when you get involved. Don’t miss out.
Treasurer
Scott Armiger Immediate Past President
Chapter Presidents
Council Presidents Sandy Marenberg
Land Development Council
Bruce Rosenblatt Sales and Marketing Council
Tim Ellis HBAM Remodelers
Thom Marston Maryland Residential Green Building Council
Tim Nichols Builder Mart Chair
MEMBERS AT LARGE Robb Aumiller Michael Baldwin Mark Bennett J. Michael Breen Patrick Costello Sean Davis Brenda Desjardins Morgan Gilligan Joe Gregory Frank Hertsch
Donald Lynch Jr. Cindy McAuliffe Michael McCann John Meade Jeff Ott Cindy Plackmeyer Jeffrey Powers Leslie Rosenthal Jeremy Rutter Joseph Smith William Zahler
Alternate Directors Jeff Aleshire Lou Baker Marka Guindon Jay Hergenroeder Joe Hikel
Russell Dickens 2014 HBAM President
Steve James Tim Morris Dan Murtaugh Tim Naughton Dennis O’Neil
Ex Officio Members Jack Orrick Howard Perlow Robert Ward
MID-ATLANTIC BUILDER may/june 2014 www.homebuilders.org
www.homebuilders.org
may/june 2014 MID-ATLANTIC BUILDER
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Events
CALL 410-265-7400 for information on registration for our events or visit www.homebuilders.org.
Maryland Center for Housing Grand Opening
Save the dates for these summer chapter and PAC events.
June 18 Join us as we celebrate the opening of the new HBAM headquarters, the Maryland Center for Housing. Tour the new building during a reception and happy hour from 5-8 pm.
· June 5 – Carroll County PAC fundraiser at Paradiso in Westminster · June 12 – Baltimore County Summer Crab Feast at Ocean Pride · June 25 – Baltimore City Summer Crab Feast at Nick’s Fish House · July 24 – Howard County PAC fundraiser at HBAM · August 14 – HBAM Golf Outing in Ocean City and MACo reception · August 21 – Harford County Summer Crab Feast at the Equestrian Center
Orioles Game July 9 Bull Pen Party at 5:35 Game at 7:05 Sections 94 and 96 $65 Tickets What better way to network with the industry’s finest, than eating some good food while drinking a cold beer and watching the Baltimore Orioles take on the Washington Nationals! This Bullpen party comes complete with Ballpark food, beer and pairs up perfectly with your lower level tickets to see the game.
HBAM Eastern Shore Gold Classic Wednesday, August 14, 2014 1 pm shotgun start At Rum Point Seaside Golf Links During the MACo Convention in Ocean City Reception at the Clarion at 6:00 pm
Elevate your standard of living... Raymond C. Maule and Son was established in 1929 and the company has over 75 years of experience behind every installation we perform. Our reputation has been built on an unparalleled attention to detail and a refusal to complete any aspect of the installation to less than exact standards. The company has recently opened a new office in Severna Park, MD. Our new location allows us to better serve not only Baltimore, but also Annapolis, Kent Island and the Eastern Shore. RCM specializes in the custom design and installation of residential elevators, handicap lifts, chair lifts and dumbwaiters in Maryland. We provide affordable vertical transportation solutions that fit into your home and decor with careful attention to detail and superb customer service.
888-353-8878
email Angel@rcmelevators.com for information
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MID-ATLANTIC BUILDER may/june 2014 www.homebuilders.org
Appliance Distributors Unlimited the best resource for kitchen appliances for remodeling projects
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www.homebuilders.org
may/june 2014 MID-ATLANTIC BUILDER
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Large Volume single family $600,000-$699,999 Model: Rhode Island City: Reisterstown, MD Company: K Hovnanian
Puttin ’ MAX on the
HBAM Announces Maryland Award of Excellence Winners
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MID-ATLANTIC BUILDER may/june 2014 www.homebuilders.org
Large Volume town home $200,000-$299,999 Model: Danbury City: Baltimore, MD Company: Bozzuto Homes
Large Volume town home $300,000-$399,999 Model: Amboise City: Frederick, MD Company: Wormald Companies
Large Volume town home $400,000-$499,999 Model: Chambord City: Frederick, MD Company: Wormald Companies
T
he Sales and Marketing Council of the Home Builders Association of Maryland announced the 2013 Maryland Award of Excellence winners at a ceremony at Martin’s Valley Mansion in Cockeysville, on May 1st. The MAX program recognizes local home builders who provide buyers with excellence in design, livability and value.
The evening’s master of ceremonies was former 98 Rock host Mickey Cucchiella. He took the stage and brought the house down for this congratulatory and fun-filled event. The dinner and awards were followed by an after-party celebration to cap off the night. Joanie McCann from Goodier Baker Homes was the chairperson for this annual event which included awards presented for several home categories in multiple price ranges. Awards were also presented for outstanding sales people, marketing, merchandising and product.
www.homebuilders.org
may/june 2014 MID-ATLANTIC BUILDER
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small volume Town home $1,500,000-$1,999,999 Model: Yearling City: Washington, DC Company: OPaL
Custom $1,250,000-$1,499,999 Model: The Brightside at Ruxton City: Baltimore, MD Company: Goodier Baker
Large Volume single family $850,000-$999,999 Model: Seahawk City: Grasonville, MD Company: Caruso Homes
CustomIZED $400,000-$499,999 Model: Lily Stone City: Bethesda, MD Company: Classic Homes
Large Volume single family $300,000-$399,999 Model: Brian’s Joy City: Havre de Grace, MD Company: Williamsburg Homes
Multi-family/condo $200,000-$299,999 Model: Florence City: Pasdena, MD Company: Caruso Homes
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MID-ATLANTIC BUILDER may/june 2014 www.homebuilders.org
Town home Model: Jefferson City: Millsboro, DE Company: Interior Concepts Lennar Homes
Custom $1,000,000-$1,249,999 Model: The Sydne at Worthington Green City: Owings Mills, MD Company: Goodier Baker
Large Volume single family $400,000-$499,999 Model: Tidewater City: Glen Burnie, MD Company: Williamsburg Homes
Large Volume town home
Large Volume town home
$700,000-$849,999 Model: Woodley Park City: Fulton, MD Company: Williamsburg Homes
$600,000-$699,999 Model: Dupont City: Fulton, MD Company: Williamsburg Homes
Custom $1,500,000-$1,999,999 Model: Ocean Ridge at Bethany City: Bethany Beach, DE Company: Goodier Baker
www.homebuilders.org
Custom $700,000-$849,999 Model: Darlington Private Residence City: Darlington, MD Company: Plumb Construction
may/june 2014 MID-ATLANTIC BUILDER
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Merchandising Town home $1,500,000-$1,999,999 Model: Yearling City: Washington, DC Company: P Four and OPaL
Large Volume town home $500,000-$599,999 Model: Beauvais City: Frederick, MD Company: Wormald Companies
Large Volume 55+ attached $400,000-$499,999 Model: Wagner City: Centreville, MD Company: Caruso Homes
Merchandising Single family $200,000-$299,999 Model: Edenton City: Long Neck, DE Company: Builders Design and The Christopher Companies
small volume Town home $500,000-$599,999 Model: Spencer’s I City: Lutherville Timonium, MD Company: CORE Sales Group and Hunra Homes
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Custom $400,000-$499,999 Model: The Weeks Private Residence City: Woodbine, MD Company: Rachuba Group
MID-ATLANTIC BUILDER may/june 2014 www.homebuilders.org
Merchandising Single family $600,000-$699,999 Model: Easton at Upton Farm City: Severn, MD Company: DR Horton and P Four
Merchandising Transfer Single Family
Merchandising Single family
$700,000-$849,999 Model: Charlotte City: Catonsville, MD Company: Richmond American Homes
$850,000-$999,999 Model: Abbey City: Chantilly, VA Company: Builders Design Advantage Homes
Merchandising multi-family/rental Model: Model A City: Washington, DC Company: Interior Concepts Quadrangle Management
Merchandising Transfer Single Family $600,000-$699,999 Model: Brindley City: Silver Spring, MD Company: Carlyn & Company and Miller & Smith
www.homebuilders.org
Product and Merchandising Town home and transfer town home $500,000-$599,999 Model: Silver Maple City: Fulton, MD Company: Bozzuto Homes
may/june 2014 MID-ATLANTIC BUILDER
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Merchandising clubhouse Model: Creekside Village Clubhouse City: Glen Burnie, MD Company: Interior Concepts Atapco Properties
Merchandising Single family $500,000-$599,999 Model: Kensington City: Huntingtown, MD Company: Interior Concepts and Marrick Homes
Merchandising Single family $400,000-$499,999 Model: Callahan City: Brandywine, MD Company: K Hovnanian Model Home Interiors
Silver Merit small volume 55+ Attached $400,000-$499,999 Model: The Alana City: Abingdon, MD Company: CORE Sales Group DeChiaro Communities
Merchandising Town home $600,000-$699,999 Model: Seneca City: Gaithersburg, MD Company: K Hovnanian Model Home Interiors
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Merchandising Single family $700,000-$849,999 Model: Warren City: Perry Hall, MD Company: Richmond American Homes
MID-ATLANTIC BUILDER may/june 2014 www.homebuilders.org
Product and Merchandising TOWN HOME AND TRANSFER TOWN HOME $300,000-$399,999 Model: Red Maple City: Fulton, MD Company: Bozzuto Homes
Silver Merit Town home $500,000-$599,999 Model: Eaton City: Washington, DC Company: Builders Design Comstock Homes
Merchandising Town home $700,000-$849,999 Model: Monet City: Gaithersburg, MD Company: P Four MI Homes
Merchandising Town home $400,000-$499,999 Model: Vanderbilt City: Frederick, MD Company: Interior Concepts NVR
Merchandising Multi-family/condo $300,000-$399,999 Model: Chestnut City: Pikesville, MD Company: Beazer Homes www.homebuilders.org
may/june 2014 MID-ATLANTIC BUILDER
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Merchandising Town home $500,000-$599,999 Model: Bradford City: Arnold, MD Company: DR Horton
Merchandising and Product Town home $100,000-$199,999 Model: Avon City: Baltimore, MD Company: Bozzuto Homes
Merchandising Town home $300,000-$399,999 Model: Sussex City: Severn, MD Company: DR Horton and P Four
Merchandising Town home $200,000-$299,999 Model: Bradford City: Baltimore, MD Company: Bozzuto Homes
Merchandising shoestring budget Single Family Model: Aspen City: Reisterstown, MD Company: Zahler Construction & Development
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MID-ATLANTIC BUILDER may/june 2014 www.homebuilders.org
Thank you to the sponsors of the event Platinum Wells Fargo Home Mortgage Bozzuto Homes Baltimore/Central New Home Directory Gold Caliber Home Loans NDG Communications
Silver Caruso Homes Chesapeake Employers Insurance Company Continental Title Group CORE Sales Group Goodier Baker Homes SunTrust Mortgage Williamsburg Homes
Most Dedicated Veronica St. Clair, Bob Ward Single Family Over $400k Ben Pooler, Richmond American Townhome-Silver Merit Darlene Flaxman, Richmond American Townhome-Silver Merit Mindy Bush, Bozzuto Homes Selection Center Coordinator Audrey Mensah-Bonsu, Richmond American 55+ Attached Kathy Rossi, Ryan Homes Assistant/Associate Pat Quenzer, Ryan Homes
Friends of MAX Greentree Homes Innovative Builders Solutions Interior Concepts Model Home Interiors
Wine Sponsor Wells Fargo Home Mortgage DJ Sponsor Academy Mortgage Corporation
Best Social Media Campaign
Sales Awards Sales/Construction Team Betsy Marshall, Beazer Homes Penny Papsidero, Beazer Homes Jerome Robinson, Beazer Homes
Bronze New Home Media Ryland Homes
Exceptional Sales Effort Katarina Vargova, Ryan Homes Multi Product Glenn Spatz, Ryan Homes Rookie Ryan Wilkerson, Ryan Homes Sales from a Trailer Cecilia McCamley, Ryan Homes Sales Manager Henry Johnsen, Ryan Homes Sales Team Matthew Bennett, Ryan Homes Cilicia Cesenaro, Ryan Homes Josh Bryant, Ryan Homes Single Family Under $400k Denise Fisher, Ryan Homes Townhome Phil Marcheso, Ryland Homes
Best Social Media Campaign Marketing Pulse 2014, O’Neil Interactive Best Logo O’Neil Interactive Logo, O’Neil Interactive Best Website O’Neil Interactive.com, O’Neil Interactive Community Brochure Custom Property - 3608 Willow Birch Drive, The Bob Lucido Team of Keller Williams Select Realtors
Best TV Campaign Maryland Moves with Bob Lucido, The Bob Lucido Team of Keller Williams Select Realtors Best Multi-Media Campaign Maryland Moves with Bob Lucido, The Bob Lucido Team of Keller Williams Select Realtors Best Social Media Campaign Father’s Day O’s Tickets, The Bob Lucido Team of Keller Williams Select Realtors
Outstanding Print Ad-BW Father’s Day, The Bob Lucido Team of Keller Williams Select Realtors
Outstanding Use of Technology iPad Presentation - Where Is the Bob Lucido Team, The Bob Lucido Team of Keller Williams Select Realtors
Outstanding Print Ad- Color The Puzzle Ad, The Bob Lucido Team of Keller Williams Select Realtors
Outstanding Use of Social Media The Bob Lucido Team of Keller Williams Select Realtors
Best Direct Mail Piece Market Update, Summer 2013, The Bob Lucido Team of Keller Williams Select Realtors
Best Promotional Item SAC Coaches Clipboard, The Bob Lucido Team of Keller Williams Select Realtors
Builder Marketing Outstanding Print Ad-BW Washington Post, Bozzuto Homes
Outstanding Logo 460NYA, Bozzuto Homes
Best Radio Campaign YOLO, D.R. Horton
Best Multi-Media Campaign Rebranding Campaign, Bozzuto Homes
Outstanding Print Ad- Color Washington Post, Bozzuto Homes
Outstanding Use of Technology Interactive Display, D.R. Horton
Outstanding Sales Center Upton Farm, D.R. Horton
Best Direct Mail Piece Belle Haven, GKA Advertising and K. Hovnanian Homes
Outstanding Community Brochure 460 New York Ave, Bozzuto Homes
www.homebuilders.org
Best Website www.midatlanticbuilders.com, NDG Communications Best Direct Mail Piece Wilsons Grove, NDG Communications Best Social Media Campaign A&G Management Bingo, Oneil Interactive
may/june 2014 MID-ATLANTIC BUILDER
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MERGER MeSSage One-on-One with the Presidents of HBAM and MNCBIA
A
fter literally years in the making, the merger between the Maryland-National Capital Building Industry Association and the Home Builders Association of Maryland is coming to fruition. These two institutions combined, have been in existence for more than 130 years. They have thrived in the best of times and have survived the worst of times. Together this new group, the Maryland Building Industries Association, will represent Anne Arundel, Baltimore, Calvert, Carroll, Cecil, Charles, Harford, Howard, Montgomery, Prince George’s and St. Mary’s Counties, as well as Baltimore City, the Eastern Shore and Washington, DC. In addition, we will have a much stronger voice in Annapolis and will benefit from cost savings and efficiencies of one trade association. We know that many of our members have questions, so we’ve tasked the current presidents of MNCBIA and HBAM, Clark Wagner and Russ Dickens, to answer some of the tough ones.
When will the merger officially take place? That is not certain, but we believe it will take place in the third quarter of this year. We have lots to do to create our bylaws, budget, communications, public affairs, set up operations, advocacy and personnel in general. The Board of Directors of each group voted to give the Executive Committees one year to work on the merger.
How many members do each association have? The MNCBIA currently has 542 members. Together we will have more than 300 builders with whom the more than 1,000 Associate members can do business. Their jurisdiction is Calvert, Charles, Montgomery, Prince George’s and St. Mary’s Counties as well as Washington, DC. HBAM recently added the Eastern Shore to its list of jurisdictions, which include, Anne Arundel County, Baltimore City, Baltimore County, Carroll County, the Upper Chesapeake and Howard County, bringing their membership total to approximately 786 members.
What will be the budget of the merged organization? With the two organizations merged we will have a nearly $1.8 million budget, a staff of 16 and a membership of about 1,300. There are many new and exciting things we will be able to do that we can’t do now. With a larger staff and budget, we will be able to hold events that draw from a larger membership and in turn provide potentially more income to the organization. We will also be in a much better position to fund our legislative efforts at the state and local levels.
What happens to my HBAM membership when the merger goes through? Your membership in the HBAM automatically entitles you to a membership in the MBIA and vice versa. You will not be invoiced until your calendar date for the dues of the larger, 1,300 member organization.
Clark Wagner
Russ Dickens
Will the dues increase in the merged group or will we see a decrease? Most likely, there will not be a decrease in dues. As you know, both MNCBIA and the HBAM have been financially struggling the past few years due to a contraction in the number of builders in the industry. It may be necessary to increase the dues in 2015 to cover some of the loss of income from single membership of companies that currently pay to both organizations.. If, however, you are currently paying dues to both MNCBIA and HBAM, you may see a decrease, as now you will only make one dues payment to the merged organization. The calculation will be based on revenues within a larger territory and may therefore be higher than either of your prior single payments.
How is the construction of the new building in Maple Lawn affected by the merge? As you may know, the land for the building site in Maple Lawn Farm has been donated to the Building Industries Foundation, HBAM’s foundation. Maple Lawn Farm is located in southern Howard County, and the BIF was constructing the building prior to the talk of merger. Much of the building materials and labor have been donated by members to reduce costs. As merger talks began, it was decided that the building would house the staff of the merged organization. This brand new building has plenty room for the eight staff from MNCBIA and the eight staff from HBAM. We are hoping that both organizations can be in the new building in May of this year.
Can I contribute to the construction of the new building? Yes, most certainly! Please call HBAM’s Chief Operating Officer, Lori Graf at 410-800-7327 or contact her at lori@ homebuilders.org and she’ll explain the donation options. All contributions are fully tax deductible as the Foundation is an approved 501-c(3), and range in purchasing a paver to naming rights to a conference room or office.
www.homebuilders.org
may/june 2014 MID-ATLANTIC BUILDER
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Walbrook Mill & Lumber Co Relocated to
SACO SUPPLY in Cockeysville Just minutes off I-83 or York Rd
NOT A BIG BOX STORE! Personalized Service, Knowledgeable Staff
Building Materials
Extensive Molding Inventory Framing/Treated Lumber Engineered Lumber PVC/Composites CEDAR Kitchen Cabinets Hardware
Architectural Millwork Custom Windows and Doors Custom Molding Kitchen Cabinets Circle Work
410-462-2200 • 410-771-1515 ily Fam ned Ow RS Y 95
Will all the events and committee meetings I usually attend now be held in Maple Lawn? No! It was recommended by NAHB that we form local chapters similar to what the Northern Virginia BIA and the (HBAM) do. This will allow events and meetings to be held in the counties where you do business. Some committee meetings and educational events will be held at the new building, as it was designed to host large groups. As much as possible, however, we will try to hold events in the same locations where we have always held them, and we hope to grow local participation in these local chapter and committee groups.
What are the ADVANTAGES of the merger? One advantage is that efficiencies of scale and elimination of duplication will save the merged group a lot of money, and will enable the larger organization to raise additional funding That money can be used to to fund legislative battles in each of the counties and at the state level. Other advantages include a broader number of builders to whom our associate members will gain access. The associates join the association, in large part, to meet builders who can hire or retain them. With over 300 builders and remodelers in the merged association we will have more work to offer our many associate members. We also will have more volunteers to work on the same committees and working together with a larger group will bring new ideas, new excitement and more financial resources.
What are the DISADVANTAGES of the merger? We see issues with the cultural differences between the two groups and the distances, but we think our board is considering all this and will make every effort to confront these issues early. We expect to see these disadvantages melt away as people get to know each other and welcome each other into the new reenergized organization.
109 W Cockeysville Rd The Professional’s Source
walbrooklumber.com 20
Why is the Association changing to “Building Industries Association” instead of “Home Builders Association”? Although the association’s primary function will be to serve residential home builders and remodelers, we want the name to be as inclusive of our diverse membership as possible. The “building industries” denotes all members including suppliers, subcontractors and associate members. n
MID-ATLANTIC BUILDER may/june 2014 www.homebuilders.org
Mid-Atlantic
Remodeler A supplement to Mid-Atlantic Builder
HBAM Remodelers Award of Excellence Kitchen Remodel $150,000–$200,000 Wall to Wall Construction The Lamb Project www.homebuilders.org
may/june 2014 MID-ATLANTIC BUILDER
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Mid-Atlantic
Remodeler
A supplement to Mid-Atlantic Builder
2014 HBAM Remodelers Tim Ellis, LEED AP, CPE, CGR, CGP President
Board of Directors Jackie Browning Guy Caiazzo Taylor Classen Cheryl Crowther Arif Durani Steve Gilman Bill James Danny Kalmus Jim Long Donald Lynch, Jr. Ryan McGinn
Chris Moline Bob Myers Michael Owings Bill Rauser Joe Smith Gregory Wall Bob Weickgenannt Howard Warfield
PAST Presidents Bill Rauser John Martindale Dave Chmura Michael Owings
Donald F. Lynch, Jr. Guy Caiazzo Taylor Classen Joe Smith
SPONSORs Members do business with members Presenting Members
ChesapeakeHome Magazine
IWIF Workers’ Compensation Insurance
before&after The client had a growing family and required additional living space to accommodate their daily needs. The architectural challenge for this project was to transform the rear of this brick 1950’s 2 story colonial into a structure with first level expanded living and entertaining areas along with a master suite for mom and dad. The decision to incorporate portions of the existing space helped to transform the new spaces without over building square footage. The interior renovations included a gourmet kitchen, master suite, mudroom and laundry room finished with custom built cabinetry, granite counter tops, Jenn Air appliances, custom millwork and tile work, custom built lockers, high efficiency HVAC and cathedral ceilings. n
Why join HBAM Remodelers? Member Benefits
John H. Myers & Son
Saratoga Insurance
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 T.W. Perry
Versatex Trimboard
Contact Chris at 410-265-7400, ext. 121 about 2014 Sponsorship Opportunities
22
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.
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.
MID-ATLANTIC REMODELER A Supplement to Mid-Atlantic Builder May/June 2014 www.homebuilders.org
president’smessage
events
Effective Leadership
Remodeling Award of Excellence
Effective leadership. In the home
building industry, extraordinary leadership is key to producing quality constructions and positively impacting our businesses and communities. To represent the best builders and suppliers in the industry should be taken as a honor. Effective leaders must adhere to strict codes of ethics because its the responsibility of leaders in the industry to build up our community and protect our environment, but what can make us more effective leaders? There’s a saying that ‘Great leaders are born, not made’. To an extent this saying is true because exceptional leadership is innate, yet in order to grow into more effective leaders, we must be open minded and life long learners. Greatness is always within our grasp. Effective team leadership is relevant on all scales of business, from leading a staff member to running an entire company. To become more effective leaders, we must identify leadership qualities we all can appreciate at our businesses and within our communities. Here are great qualities effective leaders act upon to learn and put into practice better leadership: 1. Self-assessment. It is important for effective
leaders to acknowledge their strengths and short falls. The self-assessment helps leaders to delegate to team members who have the abilities they lack. People say, to always surround yourself with people better than you in order to achieve common goals. To be effective leaders we must understand that we can’t do it all. We need to hire people that complement our skills rather than supplement our skills. By learning how to effectively address our weaknesses, we create opportunities to improve our leadership abilities.
you, don’t be afraid to ask them questions. Feedback is vital to being an effective leader. By asking questions, you will identify your good leadership qualities as well as areas where you need to improve your leadership. 3. Be responsive to our business teams. To achieve business goals
and community goals, we need to know the needs of the groups we serve. Trust is just as important as creativity for a team. If we can be clear communicators, our business opportunities and positive community impacts are limitless because we learn the values and goals of all people involved and how we can do our part as leaders to meet their needs. Negotiate. Team Build. Motivate. Set goals to inspire skills. As business professionals, we need to commit to life long learning and skill building to become more effective leaders. Let us strive to improve our leadership skills by enrolling in business courses and earning more leadership certification. Let us serve as an example of effective leadership rather than making commands to others to be better leaders. By becoming more effective leaders, we can put together stronger, more productivity business teams. Failure leadership is when otherwise effective business leaders become weak and dysfunctional. Take some risks at the right time and we will see our visions and goals come to life because we took steps to become more effective leaders. Effective leadership is a lifelong venture. No matter the size of your organization, commit to improving your leadership skills today. Let us work together to help our businesses and community thrive. Let us become the effective leaders our businesses and community need in our tomorrows. Let us start today.
The HBAM Remodelers would like to invite you to share your Remodeling projects with us and to participate in this year’s Remodeling Award of Excellence program. All Award of Excellence winners will be announced at the HBAM Remodeling Awards Ceremony on November 6, 2014. Mark your calendars. The HBAM Remodelers Award of Excellence Committee has been hard at work creating another successful awards program. Here are important dates and deadlines you will need to remember. January 1, 2012 – June 30, 2014: All remodeling projects entered in the Award of Excellence program must have been completed during this period July 31, 2014: Project registration forms due and nomination deadline for all contests (No cancellations or refunds after this date) August 30, 2014: Project entry submission binder deadline for Award of Excellence Packet submittals due. Week of September 29: Onsite project judging November 6, 2014: HBAM Remodelers Award of Excellence ceremony and dinner DON’T FORGET TO TAKE BEFORE AND AFTER PICTURES OF YOUR PROJECTS! Contact Felicia Fleming at 410-265-7400 ext 115 or felicia@hombuilders.org
2. Learn how people perceive us. To be effective
leaders we need to learn how to honestly communicate with our business teams as well as our community. Look at how people behave towards you. Are they relaxed around you? Do you make them feel anxious? To get a feel how people truly perceive www.homebuilders.org
Tim Ellis HBAM Remodelers President MAY/JUNE 2014 MID-ATLANTIC REMODELER A Supplement to Mid-Atlantic Builder
23
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MID-ATLANTIC REMODELER A Supplement to Mid-Atlantic Builder May/June 2014 www.homebuilders.org
key connections 2014 Key Connections is an intense half-day face-toface networking event that puts associate members face-to-face with decision makers from HBAM’s builder, developer and remodeler companies.
Sponsors Bob Lucido Team RE/MAX Advantage Realty Residential Title & Escrow
www.homebuilders.org
may/june 2014 MID-ATLANTIC BUILDER
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Conversation, Conversions,
and Measurements. What Every Marketing Manager Needs to Know in 2014. By Dennis O’Neil
E
ach year, O’neil Interactive reaches out to builder sales and marketing managers across the country to conduct our Pulse survey. Each year we collect thousands of data points on social media usage, online sales counselors, email marketing and more. And each year, we eagerly dive into that data, dissecting it, filtering it and eventually distilling it into a handful of key takeaways; actionable insights that identify opportunities or warn of threats to avoid.I’m happy to say that 2014 saw record participation. What must every sales and marketing manager beaware of this year?
Lead conversion tracking. If you’re not doing it, you’re almost the only one. One of the many wonderful things about online marketing is measurability. While not everything that can be measured matters, few things matter more than leads generated online. The 2014 Marketing Pulse found that about than 20 percent of builders do not have a method of measuring online lead conversion. This stat made me proud of how far we’ve come as an industry, but still confused about why we’re not closer to 100 percent participation.
Social Media Platform Usage
4% 53% 18% 42% 8% 28% 50% 93% 53% 50% There are simple and free ways to monitor which online sources (online directories, paid search, email marketing etc.) generate contact form completions with Google Analytics, and customer relationship managers (CRMs) such as Lasso, Infusionsoft, and SmartTouch provide the tools to cross reference the leads that turn into buyers. It’s time to move beyond measuring the quantity of web traffic and start measuring quality.
When social media goes up, it stays up. It’s not news that home builders have embraced social media. However, it was still surprising to learn that in the last 3 Pulse surveys, not one social media service included in our survey was used less than it was the year prior. That’s right. Every single social media service has increased in use over the last three years. This indicates that most of the builders that launched a Facebook page or a Twitter account in 2012, are still maintaining these online presences today and that more builders have joined the party. Several questions came to mind when considering this statistic. Are we simply that good at making every service work for us, is www.homebuilders.org
our industry too loyal, or are we not measuring what works best? It could be all or none of the above but let’s explore. Are builders just that good at social media? If you’re awesome at social, and all the platforms you’re utilizing are helping you connect with prospects, marketing your brand in a positive light, and generating leads, then it’s no wonder social media stays part of your marketing focus. Are builders too loyal to their social media commitments? Since the beginning of social, there’s been an odd assumption that social media is free. With tight budgets and hype promising instant success, many builders jumped onboard this buzz-worthy marketing venture. They started a Facebook page and signed up for Houzz and set up a Twitter account. I’m happy any time our industry embraces new ideas, but ask yourself why you’re still using those platforms. Are builders still using them because they’ve been successful; i.e. their social media activity has brought them sales? Or are they still using them because they made a decision to do so a couple years ago and have not re-evaluated the return on their investment.
may/june 2014 MID-ATLANTIC BUILDER
27
Managing a social media presence takes time and personnel. What takes even more time, effort, and money is measuring the success of those efforts. You could be knocking it out of the park or you could be spinning your wheels. If we haven’t determined which social platforms are bringing us quality results, we can’t possibly know if we’re the former or the latter. By using website analytics, guest cards, and the engagement data available within each social media service, we can draw some conclusions on performance and success.
Increasing lead volume with live chat. Whether you’re driving traffic to your website through online channels such as directories and paid search, or you’re simply putting your URL on signage and marketing materials, then you know that the fruit of your efforts comes in the form of an online lead. No matter how many eyes see your website, none of it matters unless it results in a conversation – a phone call, a model visit, or an e-lead. The Pulse survey determined that a good number of builders currently have or plan to add an Online Sales Counselor (OSC); an individual dedicated to handling incoming e-leads. That’s why we were pretty shocked to learn that 54 percent of the builders with an Online Sales Counselor DO NOT leverage live chat on their website. As the patience of average web users dwindles, so does the likelihood that a visitor to your website is going to fill out that form on your Contact Us page. Users expect quick and simple answers to simple questions. While it’s not a magic bullet, live chat provides an instant method of communication shown to increase website conversions. Most web users have experienced completing a contact form only to be ignored by the very company they wanted to do business with. Most of us don’t want to wait for what could be days to get a response, when all we want to know is the hours your model is
open or the square footage of that plan with the sideload garage. Even if you’re the builder who responds to e-leads in 15 minutes, the rest of the non-responding businesses on the web have jaded the consumer. Consumers associate contact forms with uncertainty. Given that consideration, they may opt instead to use that 30 seconds of their life to keep home shopping, maybe remembering asking that simple question some other way, or maybe not. Why take the chance? With live chat options as little as $30/mo, it just makes smart sense to offer this additional, instantly gratifying, method of conversion on your website. You don’t have to be available 24/7 to make live chat work for you, either. Most builders accept chats during their normal business hours. You’d be surprised by how many people are browsing on their lunch break or taking a “mental timeout” from their daily grind. The value of all web traffic measurement can be distilled down to lead volume. Adding live chat is a fast and simple way to provide a new option for your prospects.
But wait, there’s more. There were several other key findings of the Pulse 2014 survey. For more details, insights, and the full results, visit oneilinteractive.com to access a free copy of the report. n
Dennis O’Neil is President of ONeil Interactive, a web development and digital marketing firm dedicated to the residential industries. During his 15 years of using the Internet to sell and market new homes, Dennis has authored 2 books on the topic, most recently Sales Actualization: Outselling the Internet. Dennis can be reached at 410-584-2500 or dennis@oneilinteractive.com.
Average Home Builder Website Performance
3:16
pages per visit
3.51
Device Traffic Trends
18%
Builders Adopt the Mobile Web in a Big Way
63%
24% 28
40.62%
Bounce Rate Time on Site
From January 2013 to January 14, the number of builders with a mobile or responsive wesbite increased 33%
2013 2014
53% 86%
MID-ATLANTIC BUILDER may/june 2014 www.homebuilders.org
WE TAKE THE LOAD , OFF. IT S THAT SIMPLE.
For thousands of years, simple machines like the pulley have helped civilizations build structures that would have otherwise been impossible. And since 1984, Builders Mutual has been dedicated to helping builders ease the burden of choosing and managing insurance. We offer straightforward tools like risk management and Builders University to help protect your bottom line. If you’re in construction, the insurance choice is simple.
Ask your agent about us. Or read more at buildersmutual.com. www.homebuilders.org
may/june 2014 MID-ATLANTIC BUILDER
29
Maryland Center for Housing
A Special Thanks Material and Labor Donors Lead Donor Stewart Greenebaum | land Diamond Donors • Bath Kitchen and Tile Center | vanities and countertops • Charles A. Klein | electrical services • Constantine Contracting | general contracting • David S. Brown Enterprises | office space • Fick Bros. Roofing and Exterior Remodeling | roofing materials and labor • Glen-Gery Brick | brick/stone • Gray and Son | curbs • Greenebaum Enterprises | land • L&L Supply | brick/stone • Metropolitan Fire Protection | sprinklers • Old Town Construction | project management • RLO Contractors framing • Shelter Systems Limited roof trusses
Ruby Donors • 84 Lumber | lumber • Bartley Corporation | foundation slab •B ruce L. Jones Contractors | wall panels • F ireside Hearth & Home | fireplace •G utschick, Little and Weber | engineering •H arkins Builders | project management • I nterior Concepts | interior design •M id-Atlantic Masonry, Inc. | masonry labor •R iparius Construction, Inc. | project management •S chlage Residential Solutions | hardware •S hannon Comer Architects | architectural services • TW Ellis | labor •W eyerhauser | floor system
Emerald Donors • Apex Grounds Management | landscaping •A ppliance Distributors | kitchen appliances •C hoice Stairways | stairways •C reative Touch Interiors | flooring installation •D ans Company | workroom cabinets •D elbert Adams | reception desk • E nergy Services Group | insulation • General Electric | appliances • Hillis-Carnes Engineering | engineering •M ohawk Flooring | carpet • Morris Ginsberg | epdm roofing • Parksite | tyvek • Richmond American | office furniture • Siegel, Rutherford, Bradstock & Ridgeway | structural engineering •S t. John Properties | storage • St. Martin Cabinetry | cabinets • Tamko | roof shingles • Toll Brothers | appliances • TW Perry | lumber • Vintage Security | security system
Sapphire Donor • Abbey Fence | fencing • ABC Supply | roof gutter and dow • Allied Building Products | sheet metal for roof • Architectural Ceramics | tile for lobby • Armstrong World Industries | flooring for workrooms • AZEK Building Products, Inc. | fascia and rake • Banner Striping | striping • Belair Road Supply • The Bilco Company | roof hatch
• California Closet | closet systems • Carlisle Syntec Systems | epdm roofing • Dominion Electric | fans and lighting • Emser Tile | tile • Envirosolutions | dumpsters • Gaines and Company | utility work • Gene’s Johns | portable bathrooms •G reenleaf Remodeling | labor • Harris Teeter | catering • Hatfields Septic & Equipment Services | dumpster
Financial Donors •N aming Rights •R esidential Title & Escrow Co. •B ob Ward Companies • T he Rachuba Family • L owell Glazer • S usquehanna Bank/ • S usquehanna Mortgage •B B&T •C ornerstone Homes
•D an Ryan Builders • E lm Street Development • F orty West •G oodier Baker Homes •M id-Atlantic Builders •N VR •O rchard Development • P owers Homes • S ecurity Development
Gold
Silver
• Caves Valley • Craftmark Homes • Development Design Consultants • Koch Homes • Lakeside Title Company • Shelter Builder Communities
Bronze •B ay Bank •C hesapeake Employers Insurance •D ewberry • E fficient Homes • K Hovnanian • L and and Commerical Inc. • P rocopio Family Homes, Inc. •R ichard Rubin •R utter Project Management •W hitehall Development
•B aldwin Homes •B eazer Homes •C hateau Builders •C harm City Builders •C olumbia Builders •G aylord Brooks •G emcraft Homes •G P Construction, Co. •G YC Group, Ltd. • L ennar •M ichell & Best •M orris & Ritchie Assoc. •M ueller Homes • P NC Bank •R yland • S andy Spring Bank • S elfridge Family Foundation • S teuart-Kret • T urf Valley Builders •W illiamsburg Homes
Friends of MCH
GRAND OPENING June 18, 5-8 pm
• Hohmann & Barnard | • Humpty Dumpsters | dumpsters • John H. Myers & Sons | windows • Mailbox Man | mailbox • Modern Foundations | concrete slab • Moen | plumbing fixtures • Naka Huttar Oldhouser | legal servcies • National Gypsum | drywall • Northeastern Supply | plumbing materials
• O’Neil Interactive | website design • Owings Brothers | labor • Out of Sight Home Theater | TV for lobby • Ply Gem Windows | windows • Probuild | lumber • Prosoco | • Randallstown Lock | lock • Rapid Signs | signage • RFC, Inc. | • Reico Kitchen and Bath | upstairs kitchen
• Axiom Engineering • Scott Barhight • Burkard Homes • John Duffy • ECS Mid-Atlantic, LLC • Chuck Ellison • Heritage Land Development • Highland Turf • Linowes and Blocher • Mackenzie Communities
• Owings Brothers Contracting, Inc. • John and Nancy Meade • T+A Contractors • T.W. Ellis • Vintage Security • Whiteford, Taylor & Preston • Stewart D. Young • Zahler Construction and Development
• Residential Title & Escrow Co. | title services • Reico Kitchen and Bath | upstairs kitchen • Roof Center | roof shingles • Rosenberg, Greenberg & Martin | legal services • Scheibel Construction | estimate • S.E.H Excavating | excavation • Sherwin Williams | interior paint • Smartbox Portable Storage | storage
• Smith Mechanical | water fountain • Sterling Mirror | mirrors • Thos. Somerville, Co. | plumbing fixtures • Tyco Fire Protection Products | sprinkler materials • Vertical Connections | window blinds • Wall to Wall Construction | labor • Wayne Drywall | drywall
General Assembly Session Report With the session over, focus will now shift to campaigning.
32
MID-ATLANTIC BUILDER may/june 2014 www.homebuilders.org
By Kathleen Maloney
T
he 2014 General Assembly Session came to a close on Monday April 7th. As is typical in an election year, there were not as many controversial issues debated by the Legislature but more bills introduced to address local district issues. Given the earlier timing of the primary this year, many legislators didn’t wait for the end of Session to shift their focus on continuing their campaign activities as soon as the General Assembly adjourns. The Maryland State Builders Association has reviewed over 160 of the 2,667 bills introduced by the Senate and the House this year. The bills reviewed address a myriad of issues including professional licensing, environmental initiatives, real property and land use issues and tax increases and decreases. Key issues that MSBA worked on this year include the following priority issues:
that a license has to repay the fund from 30 to 60 days. MSBA worked with the Department of Labor, Licensing and Regulation to support this bill and it was passed by the Legislature and the Governor signed it into law. House Bill 1220 would require that real estate development project use minority business enterprises for all construction projects. MSBA opposed this bill and it was withdrawn.
Environment
School Construction Financing
Senate Bill 141 as it was originally drafted would have required the Maryland Department of Environment to file a lien against the real property of a person who has unpaid environmental violations. The bill was amended in the Senate to apply only in Baltimore City and only when there is an unpaid violation of the City Environmental Control Board that is a final order. Senate Bill 706 (crossfiled with House Bill 1210) would require MDE to conduct a cumulative impact analysis of the cumulative impacts of past present and future potential effect of issuing a number of environmental permits. The bill was amended in the Senate to target a specific area in Prince George’s County and would require the permit applicant to conduct a cumulative impact analysis if they are applying for certain air or land fill permits. MSBA continued to oppose this measure as amended and the bill died in the House Committee. House Bill 517 was drafted to remove any conditions or standards that the Maryland Board of Public Works would be required to consider before issuing a state wetlands permit. MSBA opposed this bill and it was withdrawn.
A number of bills were introduced seeking to expand the prevailing wage rate requirement for public construction projects. Senate Bill 204 and House Bill 956 would have expanded the requirements to pay prevailing wage on all public projects and change the recourse for violations of the wage law. These bills have not moved out of Committee. However, Senate Bill 232 and House Bill 727 (crossfiled bills) passed both the Senate and the House and are expected to be signed into law. As amended, these bills decrease the percentage of state funding received by a county for an elementary or secondary school construction project that triggers the prevailing wage requirement from 50 percent to 25 percent. MSBA opposes these bills as they are likely to result in at least a 10 percent increase in school construction costs. Senate Bill 1094/House Bill 1532 would require the General Assembly to earmark $20 Million for a grant program for additional school construction funding for counties that have experienced at least 3 years of significant school enrollment growth. MSBA supports this legislation but neither the Senate nor House took action. MSBA will continue to work on our priority issues through the conclusion of the Legislative Session. A full report will be available after the veto session concludes in May. n
Professional Licensing and Construction Issues Senate Bill 45 would require firm permitting enforcement authority for the State Board of Architects, State Board of Examiners of Landscape Architects, and the State Board for Professional Land Surveyors. MSBA opposed this legislation because of concern over developer projects that could be delayed if a firm permit violation closed a design firm. The bill died in the House. Senate Bill 655 (crossfiled with House Bill 1038) was introduced for MSBA to clarify when a developer would have to register with the Consumer Protection Builder Registration Unit. Neither bill has moved out of Committee. Senate Bill 1053 would allow equivalencies or trade-offs for compliance with the IECC, IBC and IRC Energy Codes. MSBA supports this legislation to add flexibility for energy code compliance. The bill was passed by the Senate but died by lack of action in the House Committee. House Bill 6 raises the claim amount against a licensed home improvement contractor to $7,500 that the Commission can require payment from the guaranty fund without a hearing. In addition, as amended the bill increases to timeframe www.homebuilders.org
Kathleen Maloney is the owner/principal of Maloney and Associates, a government relations-lobbying firm that provides legislative and regulatory representation and association management in Annapolis Maryland. She has handled policy priorities of the residential development and building industry in both the legislature and state regulatory agencies in Maryland for the past eleven years. In addition, Katie serves as the Co-Chair of the Maryland State Chamber of Commerce Environment Committee and is a member of the Maryland Government Relations Association. She also served as an adjunct professor in the Political Science Department at the United States Naval Academy. For more information about the above mentioned bills or other issues of interest, please contact Katie Maloney at 410-263-0070 or katmaloney@verizon.net.
may/june 2014 MID-ATLANTIC BUILDER
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builder mart 2014 Booth Award Winners Single Booth
Vintage Security
Double Booth
SunTrust Mortage
Multi-Booth
Shelter Systems
2014 Builder Mart Highlights: • 71
NEW Booths
• SOLD • 1st
OUT Floor Plan
Ever After Party a huge success!
• Attendance
over 3,600!
2015 Builder Mart – March 25th, 2015
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MID-ATLANTIC BUILDER may/june 2014 www.homebuilders.org
www.homebuilders.org
may/june 2014 MID-ATLANTIC BUILDER
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stats&facts By the Numbers
9,296
Amount of units new-home starts reached last year. This represents an increase of 15 percent over 2012.
New Home Starts up 15% in 2013 in Suburban Maryland By Ben sage
53%
of Suburban Maryland’s starts Prince George’s and Montgomery in DC Metro and Howard and Ann Arundel in Baltimore Metro accounted for in 2013.
1,067
units was the combined output in Prince George’s and Montgomery in DC Metro and Howard and Ann Arundel in Baltimore Metro exhibiting the largest increase in starts.
T
he Suburban Maryland home building industry posted another solid year of improvement in 2013. In Metrostudy’s survey territory, which extends south to St. Mary’s County, northwest to Washington County, and northeast to Cecil and Queen Anne’s Counties, new-home starts reached 9,296 units last year. This represents an increase of 15 percent over 2012. Suburban Maryland is led by the four contiguous counties located between the region’s two largest cities. Prince George’s and Montgomery in DC Metro and Howard and Ann Arundel in Baltimore Metro accounted for 53 percent of Suburban Maryland’s starts in 2013. These counties also exhibited the largest increase in starts, increasing output by a combined 1,067 units, or plus 27 percent. Washington, Carroll and Frederick Counties also saw nice gains with starts increasing 20 percent or more in 2013 over 2012. The rest of Suburban Maryland was roughly even with the previous year. With the economy expected to continue to grow, we look for continued expansion of the housing market. A limited supply of resale homes will drive consumers to new-home communities and keep builders busy. The challenge, of course, is land availability. The relative supply of Vacant Developed Lots here measures only 17 months, which is one of the lowest in the country. Supply is generally smallest in the more active submarkets or in infill areas: Howard (6 months), Montgomery (9 months), and Baltimore (14 months). Higher lot supplies persist only in Cecil and Queen Anne’s Counties. Otherwise, builders are paying premiums for land in a market that is already challenged by affordability. Revenues should grow this year, but margins may be squeezed as builders continue to strive for efficiency. n
Ben Sage, Director of Metrostudy’s Mid-Atlantic Region, has been researching and analyzing housing markets since 1994, when he first joined Metrostudy. He regularly meets and consults with many of the top homebuilders in the country as well as with lenders, developers, investors, and utilities concerning trends in the local economy and their effect on the real estate market. He can be reached at bsage@metrostudy.com.
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MID-ATLANTIC BUILDER may/june 2014 www.homebuilders.org
13.7%
MD Resale $PSF Change by % for Price Per Square Foot Median Between Q4 2012 and Q4 2013
County
10.8% 9.4%
Anne Arundel 7.8%
6.1%
1.4%
0.7%
Harford 831 1,096
Baltimore City 15.2%
158 182
Baltimore County -6.5%
631 590
Carroll 27.5%
-2.2%
409
368 587 532 Annual Starts Q4 2012
www.homebuilders.org
Prince George’s
Charles
Calvert
Queen Anne’s -15.2%
184
20.3%
13.2%
34.2%
-9.1%
41.1% 641
Annual Starts Q4 2013
$355,000 $350,000 $336,800 $361,900 $477,300 $488,800 $294,200 $415,000
Calvert
707
0.8% 483
$457,100 $460,700
Charles
581
4.8%
1,194
$343,900 $360,500
Frederick
1,352
-6.7%
1,022
$403,700 $376,500
Montgomery
1,372
14.7%
154
$471,100 $540,300
Prince George’s
140
2.2%
Washington 65%
$385,000
Queen Anne’s
156
Charles 10.3%
$338,500
Carroll
2.4%
Cecil 381
$325,000
Howard
105
Calvert
846
Washington DC -9.4%
124
Prince George’s 1,202
13.7%
7.5%
Montgomery
St. Mary’s -3.4%
-15.3%
418
Howard 42.1%
Queen Anne’s
244
Harford
$226,900
Harford
Frederick 311
43.2%
-1.4%
Calendar Year Starts by County - 2013 vs. 2012 Anne Arundel
$407,200
Baltimore County Howard
Carroll
Baltimore County
Baltimore City
Anne Arundel
-0.7%
$377,600
Baltimore City
2.6%
Montgomery
3.2%
4.3%
3.5%
Frederick
4.6%
22.7%
MD Median New Home Price
117
$405,200 $414,000 Closing Price Median Q4 2012
193
Closing Price Median Q4 2013 % Change
% Change
may/june 2014 MID-ATLANTIC BUILDER
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green building BUILDING HOMES – BUILDING SUCCESS
The Latest and Greatest! But is it really? By H. Alan Mooney, P.E. President, Criterium Engineers
Running your business more efficiently should be an ongoing pursuit.
38
A
m I on the leading edge or the bleeding edge? Should I be an early adapter? What are the risks? What are the rewards?
Recently, I was asked how to approach a builder’s show so that you can learn about all the new things you should be using in and/or doing to your homes to make them better. The simple answer is - don’t bother, you already know how to build a good home. Of course, it’s not really that simple and there are benefits to going to a builder’s show. I like them for the trends I can identify and what it tells me about the home buying public. For example, the growth in better door locks, security systems and outdoor lighting says a lot about how security conscious we are becoming. That should give you some hints about how to design your neighborhoods and landscaping; always provide good sight distances and few places to hide. And there are always things to learn about more efficient tools and useful software for design, estimating and accounting. Running your business more efficiently should be an ongoing pursuit. At any builder’s show, it’s always fun to see the new “WOW FACTOR” products. Operable glass walls, whirlpools with audio functions and lifts for multilevel car storage are all impressive. But what about the new materials? How fast should you move to integrate new sheathing, plumbing or electrical wiring into your homes? In my opinion, after 40 years of observing the home building industry, not fast at all! In fact, you should move slowly and deliberately. Why? Two main reasons come to mind. First, the home you sell to someone should not be a laboratory or test site for some new material. People buy homes expecting them to last a long time. Most appraisals assume the remaining service life of a home to be 50 years. I have seen homes built with “leading edge” materials and “revolutionary” construction techniques that will not outlast their first mortgage! Among other things, you are selling confidence to your buyers that their new home will have a long life. If you don’t have time proven confidence in the materi-
als you are using, you will not meet the expectations of your buyers. Second, there are many examples of new products offered with comprehensive promises of long term performance that fail far short of meeting those promises. Let’s look at a few: Fire Resistant Plywood (FRP): in the 1990s the Mid-Atlantic States were hit hard with the consequences of improperly treated plywood introduced after the fire codes changed in the late 1980s. NAHB once said that as many as one million housing units east of the Mississippi may have been affected. There were many lawsuits, disrupted lives and failed contractors in the aftermath of that situation. Wood alternative decking: One large manufacturer recently (2014) settled a large class action lawsuit alleging that the product was prone to mold and discoloration. We are aware of several situations where wood alternatives are not living up to the original, claimed performance expectations. Low VOC coatings: achieving NAHB’s National Green Building Standard (NGBS) or USGBC’s LEED rating means using low VOC (volatile organic compounds) coatings. A large coating manufacturer faces a major class action lawsuit for one of its low VOC coatings, alleging that it did not perform as claimed and emitted a strong, persistent odor. This kind of environmental complaint can lead to air quality complaints and personal injury claims. Cementatious siding: some early versions (early 2000s) are not performing as promised. Class action lawsuits have been filed. Owners are facing the cost of residing their homes long before any settlement is achieved.
MID-ATLANTIC BUILDER may/june 2014 www.homebuilders.org
Inner Seal Siding by Louisiana-Pacific: the scale of this problem was such that some considered the entire company to be at risk in the 1990s. To their credit, LP worked hard and spent a lot of money to help those who experienced losses due to the premature deterioration of the product. However, for those homeowners and builders involved, there was significant stress and disruption. Polybutylene piping: PB pipe was introduced as flexible, easy to install, resistant to freezing and inexpensive. It was produced from about 1978 to 1994. It was installed in 6 – 10 million homes in the United States. There were many failures either caused by chemical reactions to public water or improper installations (often over tightening connections), or both. Several manufacturers paid hundreds of millions of dollars in settlements. In all cased, homeowners and builders suffered, financially and emotionally. Spray Polyurethane Foam Insulation (SPF): Complaints were filed in Pennsylvania in 2013 alleging that the material is off-gasing toxic chemicals after installation. This is reminiscent of the problems with urea formaldehyde foam insulation back in the 1980s and 90s. Those complaints led to withdrawing the product from the market. These are just a few examples of building products that failed to meet manufacturers’ promises. More credible detail on all of these can be found on the Internet. In most cases, the manufacturers of these products are strong enough that they learn from the early mistakes and improve their products. Usually, second and third generation products are much better or, if the first round of problems were financially or functionally severe enough that product is withdrawn, sometimes, the company goes out of business. Testing and improvement are important. But should you or your buyer be part of that test group? I don’t think so. Even the best laboratory testing cannot duplicate the actual conditions a material will be subjected to once it has been part of a real building for 10 to 20 years. And lab conditions do not consider improper installation. In some cases, the only way you can know if a product is any good is to put it in place and watch what happens. Sometimes that means that the home sold to a customer is a test site. The majority www.homebuilders.org
of the homes I have seen built by members of the Home Builders of Maryland are well built. In encourage you to avoid the temptation of trying a new material, no matter how compelling the claims and warrantees from the manufacturer. Today, more than ever, new products are rushed to the market to stay ahead of the competition. Keep in mind that you are building something intended to last 50 years or more. You build a good house now, you don’t have to change. Let others test the new products. Once time proven (and that’s usually 10 years or more), then you can adapt. In the meantime, you can adapt some of those time saving tools (as long as they don’t compromise the quality of you home!) you saw at the last builders show or even add one or two of those “wow factor” items to excite your buyers. As for the primary materials in your homes, the “latest and greatest” often is not.
RESIDENTIAL WARRANTY COMPANY, LLC
may/june 2014 MID-ATLANTIC BUILDER
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We sell dirt. Only a builder can appreicate that.
In past issues, I have talked about your signature at some length. Here is a summary of the key points from those columns for your review. Homebuyers will choose you because they are confident that you will provide a good product for them. What is your signature? I have outlined the key elements that I believe should be part of your signature as a builder. They are: 1. Responsive service 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 4. Manage expectations 5. Responsive Service – I know, that’s the same as #1, but it can’t be overemphasized. Note number two – it’s important to build a good home. Word of Mouth is the most powerful advertising you, as a builder, can have, especially in our “social media” intense world. Your reputation, your “signature,” is controlled by what people think of you. Delivering a well built house that you, as a craftsman, can be proud of is only part of the process. Establishing a respectful, trusting, friendly relationship with your customer is equally, if not more, important. As you read my columns, if you have questions, 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 35 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. For more information, please visit www.criterium-engineers.com and www.criterium-quality.com. 40
MID-ATLANTIC BUILDER may/june 2014 www.homebuilders.org
governmentaffairs Anne Arundel County Reconstruction of Single Family Detached dwellings – The Anne Arundel Office of Planning and Zoning released a policy memo on March 14 clarifying county environmental regulations when reconstructing SFD homes. • If the reconstruction is “in-kind” and will not result in additional lot coverage, total disturbance will be less than 5,000 sq.ft. and there will be no disturbance to steep slopes, buffers or other natural features subject to environmental regulations, the building permit may be processed and approved under an approved standard grading plan. •A ny non-compliant development activities undertaken requiring revisions to an approved building permit which do not comply with the above requirements will be subject to an approved SWM plan in association with a county grading permit. • A ll erosion and sediment control provisions required by the approved standard grading plan application and the MD Standards and Specs for E&S Control must be implemented and maintained during construction.
Baltimore City The HBAM City Chapter has a new Chapter President: Brooke Kaine, Owner and Investor in Charm City Builders. Charm City Builders is a partnership formed by Tyler Banks, owner of TD Development, and Brooke Kaine owner of Kaine Investments, a subsidiary of Kaine Homes. Brooke, a Vanderbilt University graduate, shares Tyler’s vision of the Baltimore lifestyle and thoroughly enjoys living in Fells Point. Brooke contributes his expertise in financial and sales and marketing management to the partnership.
Baltimore County Local Open Space (LOS) - Baltimore County Development Plans Review recently announced a new checklist for LOS closeout. Department staff indicated they can no longer get to all sites to visually inspect and are now asking engineers to certify completion.
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HBAM has serious concerns about the additional cost and time involved in requiring engineers to certify items, which have traditionally been eye-balled by the county. HBAM chapter members are discussing concerns with our coalition partners in the county and plan to meet with Development Plans Review staff as soon as possible to arrange a compromise.
Carroll County Water and Sewer Connection Fees - The County has formed a workgroup to study delaying water and sewer connection fees to Building Permit, currently due at recordation. The Chapter has long supported this move to delay payment of these fees. Clustered Subdivisions - The Commissioners have approved code change to eliminate the 10 acre minimum requirement to cluster subdivisions. This change only applies to R districts on water and sewer and not in the conservation district. The code change removes the 10 acre requirement so a developer would have the option to cluster any size development. It is not a requirement, but would be another option. This proposal was unanimously endorsed by the planning commission.
Howard County Legislation- Councilwoman Terrasa has introduced CB 12-2014 requiring developers to notify school principals and the PTA President of any school within a 3-mile radius of a proposed project. In the legislation, notification must be made by return receipt mail and electronically. Chapter members have met with Councilwoman Terrasa to discuss amending the 3-mile radius to only include schools impacted by the development, and only sending 1 first class letter to the school principal with a copy to be forwarded to the PTA president. We are also seeking a change to the presubmission meeting notification to not require return receipt mail to adjoining property owners, only first class mail. Redlines - The County is making an effort to move away from using the term “redlines” in development review, and will start calling the reviews “standard” and
“non-standard.” The County established a work group of HBAM member to work out the process and we are in support of this change. We are working with the county to find a better term than non-standard.
Upper Chesapeake Chapter (Harford and Cecil) In March, the Chapter developed a new list of development related code modifications to pursue and invited Tim Whittie, DPW Director, to the March Chapter meeting to discuss the proposals. Our ideas were received positively and the County is currently pursuing our proposals. 1. Reduce the 7.5’ Drainage & Use easements to match the existing 6’ side yard setbacks where there are no utilities. 2. Implement smaller road sections, going to 28’ rather than 30’. 3. Provisional Compaction Specifications: We proposed that the 60-day waiting period begin once the utility installation is completed in each specific phase, not once the aggregate base has been constructed. 4. Reduced stone section when soil cement is utilized. 5. Incorporate recoupment agreements into offsite road improvements. 6. Speed up review time for SWM plans and as-built comments. 7. Stormwater Management Concept Plans: Rather than resubmitting ECPs, we suggested concept SWM Plan approval be conditional upon comments incorporated into the Development SWM Plan and/or Final SWM Plan.
Eastern Shore Impact Fees - Wicomico County recently passed legislation to delay payment of impact fees and fire permits to U&O permit, currently due at Building Permit. The Chapter strongly supports this move and is working with the local Chamber of Commerce to ensure passage. n
Michael Harrison VP Government Affairs 410-265-7400, ext. 109 michael@homebuilders.org
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HBAM Welcomes New Members ASSOCIATES A1 Crack Repair
1185 Legos Choice Court Westminster, MD 21157 Phone: (410) 549-5770 Sponsor: Leslie Rosenthal, The Bob Lucido Team of Keller Williams Select Realtors
All Season Unlimited, Inc. P.O. Box 67 Upperco, MD 21155 Phone: (443) 632-5153 Subcontractor - Landscaping & Lawn Care Sponsor: Mike McCann, Goodier Baker Homes
Alside/Revere Building Products 8436 Terminal Road Lorton, VA 22079 Phone: (443) 695-0516 Supplier - Siding
Bayshore Mortgage Funding 1910 Towne Centre Blvd/ Annapolis, MD 21401 Phone: (443) 603-0305 Professional Services - Banking & Mortgage Sponsor: Mike Breen, K. Hovnanian Homes
Best Tile Distributors 6822 Oak Hall Lane Columbia, MD 21045 Phone: (410) 381-1169 Supplier - Adhesives, Sealants, Tile & Grout
Builders Update 7801 N. Capital of Texas Hwy Suite 390 Austin, TX 78731
Building Dynamics, LLC 1216 Ashton Rd Ashton, MD 20861 Phone: (240) 899-6926 Professional Services - Environmental Services
Carefree Kitchens 2901 Strickland Street Baltimore, MD 21223
CMS Environmental Solutions of Maryland, LLC 5850 Waterloo Road Suite 140 Columbia, MD 21045 Phone: (443) 902-0366 Professional Services - Other
Davey Resource Group 2138 Priest Bridge Court Suite 4 Crofton, MD 21114 Phone: 410-774-0024 Subcontractor - Landscaping & Lawn Care
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Ecological Restoration & Management, Inc.
McCrea Equipment
Robert B. Rehman & Sons, Inc.
4463 Beech Road Temple Hills, MD 20748 Phone: (301) 423-6623 Subcontractor - HVAC
Robert B. Rehman & Sons, Inc. 300 N. 25th Street Camp Hill, PA 17011 Phone: (717) 773-5061
Mid-Atlantic Tuff Deck & Railing
SFI Compliance, Inc.
7447 New Ridge Road Hanover, MD 21076 Phone: (410) 595-2100
1016 Smith Dr Arnold, MD 21012 Phone: (410) 991-0589 Supplier - Decks & Fences
Environmental Recovery Corporation
NFM, Inc.
SFI Compliance, Inc. 20 F St, NW Suite 700 Washington, DC 20001 Phone: (202) 417-3923 Professional Services - Academic & Training
Suite 203 Cockeysville, MD 21030 Phone: (410) 337-4899 Subcontractor - Landscaping & Lawn Care
Emser Tile
3300 Childs Street Baltimore, MD 21226 Phone: (717) 858-4308 Supplier - Waste Management & Disposal
Fiberon 1317 Merry Hill Ct Bel Air, MD 21015 Phone: (443) 987-1732 Supplier - Decks & Fences
First Guaranty Mortgage Corp.
505 Progress Drive Suite 100 Linthicum, MD 21090 Phone: 443-451-3447 Professional Services - Banking & Mortgage
Nick Rivers Gutters 7760 Cork Lane Pasadena, MD 21122 Phone: (443) 336-7278 Subcontractor - Roofing & Gutters
16701 Melford Blvd Suite 127 Bowie, MD 20715 Phone: (240) 232-4501 Professional Services - Banking & Mortgage Sponsor: Patricia Scherer, Pat Scherer & Associates
Old Line Bank
GO GLASS CORP.
3001 Lower Valley Road Parkesburg, PA 19365 Phone: (610) 593-7625
805 SNOW HILL RD SALISBURY, MD 21804 Phone: (410) 742-1151 Remodeler
Heister House Millworks 1937 Troup Valley Road Mt. Pleasant Mills, PA 17853 Phone: (301) 518-5928
James Hardie 26300 La Alameda #400 Mission Vielo, MD 92691 Phone: (949) 354-8656 Supplier - Siding Sponsor: Jeremy Crawford, ABC Supply
Kalista Enterprises LLC P.O. Box 66 Forest Hill, MD 21050 Phone: 443-829-3060 Subcontractor - Siding
Kenneth D. Brown 8725 Black Dog Alley P.O. Box 1627 Easton, MD 21601 Phone: (410) 822-1688 Subcontractor - Landscaping & Lawn Care
KLNB-LAND 6011 University Blvd Suite 350 Ellicott City, MD 21043 Phone: (443) 574-1430 Professional Services - Real Estate Sponsor: Steve Breeden, Security Development Group
4201 Mitchellville Road Suite 300 Bowie, MD 20716 Phone: (301) 861-0181 Professional Services - Banking & Mortgage
Pinnacle Stone Products, LLC
Solar City Solar City 2002 S. Hubana Ave, Tampa, FL 33629 Phone: (813) 892-4194 Sponsor: Cindy Plackmeyer, Beazer Homes
BUILDERS
Arrisbrook Builders Arrisbrook Builders PO Box 1179 Edgewater, MD 21037 Phone: 410-571-5771 Builder - Custom
Deldeo Builders Deldeo Builders 100 Naamans Road Claymont, MD 19703
Herzog Homes
4 Nashua Ct., Suite 8 Baltimore, MD 21221 Phone: (410) 238-2555 Subcontractor - Elevator & Lift Systems
Herzog Homes 222 Severn Ave. Suite 101 Annapolis, MD 21403 Phone: (240) 375-5655 Builder
Quality Builders Warranty Corporation
Maguire Building & Remodeling, Inc.
Preferred Elevator Company
325 North 2nd Street Wormleysburg, PA 17043 Phone: (717) 737-2522 Professional Services - Home Warranty
7124 Carmae Rd. Sykesville, MD 21784 Phone: 301-520-7251
R & P Settlement Group, LLC 809 Gleneagles Court Suite 119 Towson, MD 21286 Phone: (410) 821-1401 Professional Services - Titles & Settlement Sponsor: Dan Murtaugh, Sandy Spring Bank
Real Estate Settlements & Escrow, LLC 6 Reservoir Circle Suite 203 Baltimore, MD 21208 Phone: (443) 220-6387 Professional Services - Titles & Settlement
Remodelers Advantagex 14440 Cherry Lane Ct Laurel, MD 20707 Phone: (301) 490-5620 Professional Services - Academic & Training
MID-ATLANTIC BUILDER may/june 2014 www.homebuilders.org
IBS Elevate your standard of living
T
he Home Builders Association of Maryland was presented with a $2500 check for coming in 1st place in the National Association of Home Builders Fall Membership Madness Drive. The check was presented at the International Builders Show in Las Vegas. Congratulations to the Professional Women in Building Council for their awards received at IBS. 2014 Community Outreach-2nd Place
2013 Highest Recruitment Large Council
Large size councils
HBAM EASTERN SHORE
GOLF CLASSIC AUGUST 14, 2014
PRESENTED BY
HELD DURING
WEDNESDAY, AUGUST 14, 2014 1:00 Shotgun Start EVENT INFO & SPONSORSHIP • JOIN HBAM AT MACO
• RECEPTION AT THE CLARION AT 6:00
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888-353-8878
email Angel@rcmelevators.com for information
rcmelevators.com
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ad list Appliance Distributers Unlimited Page 7 BGE Outdoor Lighting Page 24 Builders Mutual Insurance Page 29 California Closets Page 44 GE Contract Sales Back Cover John H. Myers Inside Back Cover KNLB Page 40 Premier Lifts Page 5 Raymond Maule Page 6, 43 Residential Warranty Page 39 Southern Pacific Page 1 Tremco Barrier Solutions Page 3 Vintage Security Inside Front Cover Walbrook Mill & Lumber Co Page 20 For advertising opportunities please contact Chris Baughan chris@homebuilders.org or 410-265-7400, ext. 121 Did you Know? “Magazine readers pay attention to magazine ads. They don’t avoid the advertising as they do with other media.” Source: BIGResearch Simultaneous Media Usage Study
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MID-ATLANTIC BUILDER may/june 2014 www.homebuilders.org
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may/june 2014 MID-ATLANTIC BUILDER
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MID-ATLANTIC BUILDER may/june 2014 www.homebuilders.org