Mid-Atlantic Builder May/June 2011 by Maryland Building Industry Association

MARYLAND AWARDS OF EXCELLENCE

Mid-Atlantic

Vol. 53 Issue 2 May/June 2011 www.homebuilders.org

MAXcellence 2010 MAX Award Winners Announced

PLUS HBAM Foundation Renovates Home Put Your Marketing to the Test Preparing for Lead Paint Regulation

MID-ATLANTIC BUILDER MAY/JUNE 2011 www.homebuilders.org

See security & peace of mind in a new light Design assistance, installation, service and maintenance are a snap with BGE Outdoor Lighting.

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See our lighting and pole options. Ask for a copy of our brochure.

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May/june 2011 MID-ATLANTIC BUILDER

May/June 2011 Vol. 53 Issue 2

MID-ATLANTIC

PUBLISHER John Kortecamp

EDITOR Kristin Josephson Hogle, Editor communications@homebuilders.org

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

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

HBAM LEGAL COUNSEL Linowes and Blocher ON THE COVER Wormald Homes, Wakehurst ABOVE Clark Turner Signature, The Admiral

MAXcellence

The 2010 MaX awards have been announced, recognizing excellence in all areas of the new home industry, from sales and marketing achievement to home design and merchandising.

Maryland Community Builders’ Foundation

The Maryland Community Builders’ Foundation teamed up with Rebuilding Together to renovate a home and change the lives of a local family.

Departments 4 6 8 45 46

Publisher’s Message President’s Message events new Members Government affairs

Pages 21-26 Pull-Out Section

Builder Mart 2011

View photos from the successful Builder Mart 2011. See what exhibitors had to say about the show and get on board for next year’s event.

MID-ATLANTIC

MID-ATLANTIC BUILDER 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. 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

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

Market Recovery Series

Put Your Marketing to the Test Marketing today must past the truth test. In fact, much of what we market is better, often much better. BY JOHN GRAHAM

• SFI participants also plant more than 650 million trees each year to these thriving forests. HBAM Remodelers Council Gold Award

Purple Cherry Architects, Annapolis Residence Renovation $850K - $1.5M Whole House

Market Effectively, Efficiently with Automated Marketing Marketing automation is all about doing more with less — conducting more marketing campaigns, reaching more prospects and collecting more leads while minimizing costs. BY STEVE LEWKOWITZ

Also

40 Green Building Building Homes—Building Success 2

MID-ATLANTIC BUILDER May/june 2011

Departments

Before & after President’s Message new Members

48 Corner BRaC www.homebuilders.org

A partnership you can count on from the ground up.

partner “We’ve had more activity in the last 90 days than we’ve had over the last two years!” - Jim Selfridge

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BUILDER RESOURCE CENTER

May/june 2011 MID-ATLANTIC BUILDER

2011 HBAM Leadership Photo Credit stuart zolotorow

Executive Committee Bob Goodier President Rod Hart President Elect

publisher’smessage The Maryland Center for Housing Are you in?

Scott Barhight Associate Vice President Cynthia McAuliffe Secretary Theresa Leatherbury Treasurer Eliot Powell Immediate Past President

In May of 2010 we announced the launch of our campaign for a new Home Builders Association of Maryland headquarters, a facility that would be owned, debt free, by our non-profit foundation, the Building Industries Foundation. The build-

ing, to be known as the Maryland Center for Housing, will be leased to the Association and the rent income will provide a stable, long-term funding source to endow our Foundation and support its charitable, education and research activities. Well, a lot has happened in the past year. We have been given a lead gift by Stewart Greenebaum of a fully permitted parcel in the commercial district of Maple Lawn, his award winning mixed use, smart growth development in southwestern Howard County. Shannon Comer of Shannon Comer Architects has very generously donated her company’s time and expertise to design the 10,000 square foot building that will stand on the parcel. We are now in the process of assembling a materials list and construction schedule and will very soon be soliciting contributions of materials, money and labor to complete the project. Many of the nearly 200 vendors who exhibited at this year’s Builder Mart indicated that they were very much interested in contributing to the project pending details, material requirements and the completion schedule. I believe that if we had been able to have a materials list and production schedule at Builder Mart, we could have obtained commitments for a significant percentage of the total project in that day alone.

Scott Armiger First Vice President- 2011

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

I urge you to make your commitment to contribute to the association’s new headquarters. Whether your contribution (tax deductable) is made in your name, your familiy’s name, your company’s or your product’s, you will be establishing a legacy for yourself within the industry at the facility where the industry comes together to conduct its business. Make your commitment to our future. Make your statement to your industry. Are you in? See page 25 of this issue of Mid-Atlantic Builder for more information or visit www.marylandcenterforhousing.org.

John Kortecamp HBAM Executive Vice President

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 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

MID-ATLANTIC BUILDER MAY/JUNE 2011 www.homebuilders.org

www.homebuilders.org

MAY/JUNE 2011 MID-ATLANTIC BUILDER

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

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

president’smessage What awful industry is held in such disregard that it deserves 169 bills introduced in the Maryland General Assembly that impact the ability for its people to do business? By the way, 100 percent of Mary-

land residents use and need this industry. What industry deserves this scrutiny: tobacco, alcohol, nuclear energy or casinos, maybe? No, not those...it’s home building, actually. It’s hard for me to comprehend the fact that so many bills were introduced that target home builders, developers and remodelers. Don’t our legislators understand that unless you live in a tee-pee you live in a house that a home builder has built? Many of these bills were aimed at increasing taxes and fees, implementing mandatory design features and some even attempted to halt development all together. All I have to say is, thankfully, I’m represented and so are you. Following is a summary of what went down this session. • 169 bills were brought to the HBAM Legislative Committee that impacted the home building industry • Positions were adopted by the HBAM Legislative Committee on 65 bills • 36 bills were supported, of which 8 passed • 29 bills were opposed, of which 5 passed • We were successful with our top priority issues: • Green builder members of HBAM’s Maryland Residential Green Building Council successfully lobbied the General Assembly to enact legislation that recognizes homes certified as Silver, Gold or Emerald by the ICC 700 National Green Building Standard as being High Performance Homes and equivalent to LEED. • The Governor’s septic ban garnered the most attention among HBAM members this year and we, along with our industry coalition partners, were successful in killing the legislation and sending the 6

issue to summer study. This issue is by no means dead and will resurface next year through legislation if not sooner through regulatory initiatives. • Delegates sought to “close a tax loophole” by applying the recordation tax on indemnity mortgages exceeding $5 million when an entity creates an LLC and has the LLC borrow money with the original entity as the third-party guarantor of the debt. • A bill was introduced that would have required 50 percent of SFD homes in developments of 6 or more houses to be equipped with handicap accessible features. Lobbyists were successful in defeating that bill while securing favorable amendments to another visitability bill to make handicap accessible features mandatory options in developments of 11 or more SFD homes.

DIRECTORY OF ADVERTISERS Appliance Dist. Unlimited Inside Front Cover BGE Outdoor Lighting 1 Bob Lucido Team 29 California Closets 28 GE Contract Sales 9 John H Myers & Son, Inc 3 Marvin Windows 39 Mid Atlantic Propane and Gas 5 Northrop Team of Long & Foster Back Cover Saratoga Insurance 43 Southern Pacific Supply 7 SMC Spring Gala 8 T.W. Perry Inside Back Cover Verizon Wireless 27

HBAM is watching out for our best interest and didn’t let anything slip though the cracks. Where else can you go where you are not only represented, but kept in the loop, asked for your option and given an opportunity to be involved in the process? The HBAM government affairs staff is always working to protect our industry and we need everyone to join the team and help grow our influence, save jobs and secure the future of home building. Keep an eye out for our latest campaign and find out more at www.homebuilders. org/page/getinthegame/

Bob Goodier 2011 HBAM President

MID-ATLANTIC BUILDER MAY/JUNE 2011 www.homebuilders.org

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May/june 2011 MID-ATLANTIC BUILDER

Events

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

Builder Mart 2012

June 8, 2011 Oriole Park at Camden Yards

Join us for the all inclusive Bullpen Party and Orioles game. The pre-game Bullpen Party starts at 5:00 p.m. where you can mingle with HBAM members and enjoy a festive bullpen party featuring food, beverages and beer. HBAM group seats in the lower level will prove to be the perfect seats to watch the O’s battle the Athletics.

March 21, 2012 Maryland State Fairgrounds

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

Chef Night & Auction October 13, 2011 Martins West

Go globetrotting with the best chefs in the building industry, the HBAM builders and remodelers. Enjoy a silent auction with over 200 items while networking with the over 400 attendees.

A L A G G N I R P S SMC

THE OFFICIAL MAX AWARDS AFTER-PARTY

FREE FOR SMC MEMBERS

$10 FOR NON-MEMBERS

PRICE DRINKS UNTIL 7!

JUNE 15TH

5:30 - 8:30

FIELD HOUSE IN CANTON

FREE & AMPLE PARKING FOR MORE INFO VISIT: SMCSALESCAMP.COM 8

MID-ATLANTIC BUILDER MAY/JUNE 2011 www.homebuilders.org

In keeping with our theme this year, we “got the party started” at the MAX awards, the premiere new home awards from the Sales and Marketing Council of the Home Builders Association of Maryland. The winners were announced at our annual soiree held May on 18, 2011 at Martin’s West. Once the evening’s outrageous master of ceremonies, Scotty Donahoo, (known for his crazy auto sales commercials and regular visits to 98Rock’s morning show) took the stage, the night’s entertainment climbed to a fever pitch in this congratulatory and fun-filled atmosphere, indicative of the elevated mood of this year’s crowd. Our MAX awards recognized excellence in all areas of the new home industry, from sales and marketing achievement to home design and merchandising. We were thankful to have an experienced team of top-notch judges from the across the region evaluate this year’s entries. The judges considered new home entries in such areas as floor plan layout, quality and convenience features, overall design and value. All of our award winners are members of the Home Builders Association of Maryland. Dressed to impress, over 500 people clapped and cheered for award-winners in the product and merchandising categories for 55 and better, custom, customized, multi-family/condominium, single-family detached, townhome, green/LEED building townhome/ condominium, green/LEED building single-family and clubhouse. Also, marketing awards were presented to our builders and associates for their outstanding 2010 marketing in categories like best logo, best brochure and best ad to name a few. What talented members we have! We all know the power of the people and we were also happy to celebrate the personal achievement of our individual winners who were recognized for their outstanding sales efforts. In addition to our nominated projects, Christopher Rachuba from the Rachuba Group and The Maryland Community Builders Foundation were honored for their work on Extreme Makeover: Home Edition and the Girls Hope Boys Hope house in Baltimore. This project was completed over a week long period last summer and was too big of an achievement in 2010 to go unrecognized. Thank you to everyone involved in this magnificent celebration of our industry’s best in 2010. Start documenting all of your achievements so you can submit them for next year’s awards! Pat Scherer MAX Committee Chairperson Pat Scherer and Associates 10

MID-ATLANTIC BUILDER MAY/JUNE 2011 www.homebuilders.org

Large Volume Single Family Home $1 Million Over Company: Wormald Homes Project Name: Le Beaux Frederick, MD

MAXcellence 2010 MAX Award Winners Announced

www.homebuilders.org

May/june 2011 MID-ATLANTIC BUILDER

Large Volume Single Family Home $600,000-$650,000 Company: Wormald Homes Project Name: Wakehurst Gettysburg, PA

MID-ATLANTIC BUILDER MAY/JUNE 2011 www.homebuilders.org

Small Volume Green Building Single Family Silver Company: Clark Turner Signature Homes Project Name: Azalea Northeast, MD

Small Volume Single Family $300,000-$399,999 Company: Jerome Parks Company Project Name: Magnolia Fort Washington, MD

www.homebuilders.org

Large Volume 55 and Better-Attatched $400,000- $499,999 Company: Williamsburg Group Project Name: Isaac Ellicott City, MD

May/june 2011 MID-ATLANTIC BUILDER

Large Volume Single Family Homes $700,000-$849,999 Company: Wormald Homes Project Name: Summerhill Charles Town, WV

Large Volume Single Family Home $600,000-$699,999 Company: K. Hovnanian Homes Project Name: Colorado Upper Marlboro, MD

Small Volume Single Family Home $850,000 - $999,999 Company: Columbia Builders Project Name: Fairmont Ellicott City, MD

LARGE VOLUME MULTI-FAMILY/CONDOMINIUM $300,000-$399,999 Company: Ryland Homes Project Name: The Ridgeway Aberdeen, MD

Large Volume Customized Homes $1 Million and Over Company: Williamsburg Group Project Name: The Rutledge Ellicott City, MD

Large Volume Single Family Home $400,000-$499,999 Company: Ryland Homes Project Name: The Westwind Carney, MD

Large Volume Single Family Home $600,000-$649,999 Company: Williamsburg Group Project Name: The Dorchester 4 Bowie, MD

Large Volume Custom Home $700,000 - $849,999 Company: Williamsburg Group Project Name: Wellington Bowie, MD

MID-ATLANTIC BUILDER MAY/JUNE 2011 www.homebuilders.org

Large Volume Townhome $400,000 - $499,999 Company: Wormald Homes Project Name: The Notting Hill C Frederick, MD

Small Volume Townhome $700,000 - $849,999 Company: Clark Turner Signature Homes Project Name: The Admiral Port Deposit, MD

Large Volume Townhome $350,000 - $399,999 Company: Williamsburg Group Project Name: Mayaâ&#x20AC;&#x2122;s Manor Laurel, MD

Large Volume Townhome $300,000 - $349,999 Company: Wormald Homes Project Name: Camden B Frederick, MD

Large Volume Townhome $500,000 - $599,999 Company: Wormald Homes Project Name: Mayfair Frederick, MD

www.homebuilders.org

May/june 2011 MID-ATLANTIC BUILDER

MERCHANDISING Townhome $700,000- $849,999 Companies: Clark Turner Signature Homes Interior Concepts Project Name: The Admiral Port Deposit, MD

MID-ATLANTIC BUILDER MAY/JUNE 2011 www.homebuilders.org

MERCHANDISING Transfer, Single Family $400,000 - $499,999 Companies: Clark Turner Signature Homes Interior Concepts Project Name: The Azalea Northeast, MD

MERCHANDISING Single Family $400,000 - $499,999 Company: Interior Concepts Project Name: The Essex Millville, DE

www.homebuilders.org

MERCHANDISING Clubhouse Company: Carlyn & Company Project Name: Clubhouse at The Alaire at Twin Brook Station Rockville, MD

May/june 2011 MID-ATLANTIC BUILDER

MERCHANDISING Townhome $400,000- $499,999 Companies: Carlyn & Company Wormald Homes Project Name: The Notting Hill C Frederick, MD

MERCHANDISING Transfer, Single Family $1 Million & Over Companies: Carlyn & Company Wormald Homes Project Name: Le Beaux Frederick, MD 18

MERCHANDISING Single Family $300,000 - $399,999 Companies: Jerome Parks Companies Builders Design & Leasing Project Name: Magnolia Fort Washington, MD

MID-ATLANTIC BUILDER MAY/JUNE 2011 www.homebuilders.org

MERCHANDISING Green Townhome Companies: P Four and Ryland Homes Project Name: The Tilden Reisterstown, MD

MERCHANDISING Townhome $300,000- $399,999 Companies: Carlyn & Company Wormald Homes Project Name: The Camden Frederick, MD

MERCHANDISING Single Family $600,000 - $699,999 Companies: Carlyn & Company Project Name: Eagleton Upper Marlboro, MD

www.homebuilders.org

MERCHANDISING Transfer, Single Family $500,000-$599,999 Company: Interior Concepts Project Name: Augusta Mechanicsville, MD

MERCHANDISING Silver Merit Single Family $300,000 - $399,999 Company: Interior Concepts Project Name: Sea Isle Millville, DE

MERCHANDISING Townhome $200,000- $299,999 Company: Interior Concepts Project Name: Fenwick Millville, DE

May/june 2011 MID-ATLANTIC BUILDER

MERCHANDISING Single Family $550,000 - $599,999 Companies: Interior Concepts Koch Homes Project Name: The Hartley Chester, MD

Sales Awards Overall Salesperson of the Year Wayne Bill, Ryland Homes Exceptional Sales Assistant/Associate Alan Bacon, Bob Lucido Team Exceptional Sales Effort Glenn Spatz, Ryan Homes Exceptional Sales from an Undecorated Model Amy Crise, Ryan Homes Exceptional Sales from a Trailer Adam Hewat, Ryan Homes Rookie Of the Year Chad Sanschagrin, Richmond American Homes Sales And Construction Team of The Year Kellie O’Toole and Daren Snyder, Ryan Homes Sales Manager Of the Year Dana O’Neill, Ryland Homes

MERCHANDISING Silver Merit Single Family $600,000 - $699,999 Company: Richmond American Homes Project Name: Daniela Westminster, MD

Sales Person of the Year 55 and Better Stephen Schrader, Ryan Homes Sales Person of the Year Multi Product Kellie O’Toole, Ryan Homes Sales Person of the Year Single Family Detatched $400,000 and Below Wayne Bill, Ryland Homes Sales Person of the Year Single Family Detatched $400,000 and Over Robert Pecore, Ryan Homes

Sales Person of the Year Townhome Elaine D’Achino, Ryan Homes Sales Person of the YearTownhome-Silver Merit Colleen Abbott, Ryan Homes

Outstanding Builder Brochure OPaL, LLC Outstanding Builder Website O’Neil Interactive for www.baldwinhomes.net

Sales Team of the Year Jason Brant & Brigitte Droegemeyer, NV Homes

Outstanding Color Print Ad-Associate The Northrop Team of Long & Foster Realtors for Mid Atlantic Builder Magazine July/August 2010 Issue

Associate Achievement Awards

Outstanding Sales Center Bozzuto Homes, Inc.

General Brokerage “Resale” Agent of the Year Bob Lucido, Bob Lucido Team LLC Remax Advantage Realty

Marketing Awards Best Builder Logo OPaL, LLC

Best Associate Logo The Northrop Team of Long & Foster Realtors Outstanding Associate Brochure The Northrop Team of Long & Foster Realtors-Partner Brochure Outstanding Associate Multi-Media Campaign The Northrop Team of Long & Foster Realtors for Hoops For Heros Campaign Outstanding Associate Website Mays & Associates for www. ad-mays.com Bob Lucido Team LLC Remax Advantage Realty for www.boblucidoteam.com

Outstanding Settlement Gift Classy Cozy Creations Outstanding Use of Direct Mail-Associate The Northrop Team of Long & Foster Realtors-”Just Listed” Direct Mail Campaign Outstanding Use of Internet-Associate The Northrop Team of Long & Foster Realtors for Comcast.Net Campaign Outstanding Use of Internet-Builder ONeil Interactive, Inc. for Dorsey Family Homes “Communities Tab” Outstanding Use of Technology-Associate The Northrop Team of Long & Foster Realtors Outstanding Use of Technology-Builder ONeil Interactive, Inc. for Kaine Homes

Outstanding Black and White Ad-Associate Bob Lucido Team LLC Remax Advantage Realty-Wounded Warrior Ad

MERCHANDISING Silver Merit Single Family $700,000 - $849,999 Companies: K. Hovnanian Homes Model Home Interiors Project Name: The Rhode Island Bowie, MD MERCHANDISING Single Family $500,000 - $549,999 Companies: Carlyn & Company Project Name: Westmoreland Upper Marlboro, MD 20

MID-ATLANTIC BUILDER MAY/JUNE 2011 www.homebuilders.org

Mid-AtlAntic

Remodeler A supplement to Mid-Atlantic Builder

HBAM Remodelers Council Gold Award Purple Cherry Architects, Annapolis Residence Renovation $850K - $1.5M Whole House

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

before&after Purple Cherry Architects Annapolis Residence This project was an addition to an existing home in Annapolis, Maryland. The client desired an open first floor living area as well as a semi-formal dining room centered on the front door. Almost all of the first floor walls were removed to create a new plan that permitted a visual connection across the entire floor. The client also wanted to add an upper level that was a relatively small second floor on top of the large first floor. This posed several structural design challenges like the roof loads on the existing beams and columns. The high level of craftsmanship and superb customer relations resulted in a beautifully built home with very happy home owners. n

KC Company/Pella Windows

Why join HBAM Remodelers? Lynch Construction

Susquehanna Bank

Saratoga Insurance

T.W. Perry

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

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.

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

president’smessage

Learn and Adapt It is amazing how quickly our industry is changing. Each day I read about

some new product or government mandate related to construction. While many of the products help make our lives easier and can reduce costs, the government mandates can add costs and time delays. The new products range from new composite materials to geothermal heating and cooling systems. There is one thing that the new products and government mandates have in common; you need to be educated on how they both function. With regard to the new materials, it is critical that you are up-to-date on the proper installation and operation. Many of these materials act differently than the materials we have used in the past. They can be affected by environmental conditions and may require special installation methods. Failure to understand these unique attributes or installation needs can lead to warranty costs or liability issues in the future. When you are considering a new material or system, it is critical that you talk with the experts about its use. If it is a new carpentry product, you should consult with your lumber yard or the manufacturer’s representative. For the most part, the manufacturer’s representative will come to your office or jobsite and educate you and your team on the materials and on the proper installation. The manufacturers and lumber yards are more than happy to provide this service, if it will lead to increased sales. The changes in the government mandates and requirements seem to be never ending. The new life safety codes, septic requirements and lead paint requirements continue to grow. Each of these issues add to the cost of your projects and can increase the time needed to

www.homebuilders.org

complete it. The Home Builders Association of Maryland is using its lobbying efforts to help contain the governmental mandates. Unfortunately, the lawmakers in Annapolis and Washington continue to implement mandates that impact our industry. The Environmental Protection Agency’s (EPA) lead paint mandate is an issue that has been particularly burdensome for remodelers. To avoid costly fines, it is critical that you and your frontline staff are educated on the proper techniques for dealing with lead paint. In addition, all of your trade contractors need to be educated on the EPA requirements. See the article on page 26 in this issue of Mid-Atlantic Builder for some tips on how to handle it. It appears the construction world will continue to change and get more complicated. It is critical that you continue to adapt and keep educated on these changes. I hope your spring is off to a great start, and work is picking up for you.

Thanks, Taylor Classen HBAM Remodelers President

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

MAY/JUNE 2011 MID-ATLANTIC REMODELER A Supplement to Mid-Atlantic Builder

HOME BUILDERS ASSOCIATION OF MARYLAND

The Maryland Center for Housing

Coming in 2012 Be forever recognized as an industry support with a custom engraved paver at the new Home Builders Association of Maryland headquarters to be built in Maple Lawn, Maryland The Maryland Center for Housing will be a home for the Home Builders Association of Maryland, for the Building Industries Foundation, our non-profit arm, and for the home building and remodeling industry of Maryland. The Maryland Center for Housing, thanks to a very generous lead gift by Stewart Greenebaum, will be located in Maple Lawn, Maryland in the southwest corner of Howard County, Maryland. Maple Lawn, a Smart Growth Community developed by Greenebaum and Rose Associates, is located in the heart of Central Maryland and is convenient to Interstate 95, US Route 1 and Maryland Routes 29 and 32.

HBAM Foundation Personalized Paver Order Return form, fee and description to: Building Industries Foundation 7127 Ambassador Road Suite 150 Baltimore, MD 21244

TWO SIZES AVAILABLE

$125

FOR A 2 LINE 6X9 PAVER

Phone: 410-265-7400 Fax: 410-265-6529 Email: communications@homebuilders.org

$500

FOR A 4 LINE 12X12 PAVER

IT’S TAX DEDUCTIBLE*

I would like to reserve my  6x9 paver or  12x12 paver Engraving and Installation Included

Name: _____________________________________________________________________________________________________ Company: __________________________________________________________________________________________________ Email: __________________________________________________ Phone: ____________________________________________  Check enclosed (payable to HBAM BIF) or Charge my  VISA

 Master Card

 American Express

Total:_________________________________________________

Card #: __________________________________________ Expiration: ______________ Billing Zip: _______________________ Name on Card: ______________________________________________________________________________________________ Signature: ____________________________________________________________ Date: ________________________________ PAVER INSCRIPTION (2 lines for $125/6x9 paver or 4 lines for $500/12x12 paver – 18 characters each including punctuation and spaces) USE 2 LINES FOR $125/6X9 PAVER

USE 4 LINES FOR $500/12X12 PAVER

* $100 of each $125 paver and $475 of each $500 paver is tax deductible as a donation to the Building Industries Foundation. Maryland Tax ID # 52-2176709

Who’s In?

These companies have already signed on to donate to the new Maryland Center for Housing and have their products and services featured in the building. LEAD DONOR:

DONORS:

STEWART GREENEBAUM

Design House Kitchens FASTSIGNS of Dundalk Fretz Corporation

Leisure Specialties Patterson Enterprises Shannon Comer Architects, Inc.

Shelter Systems Sherwin-Williams Company

Show Your Support for Your Industry, Your Association and Your Foundation

HOMEBUILDERS Association of Maryland

Preparing Your Business for the Lead Paint Regulation

he U.S. Environmental Protection Agency’s (EPA) Lead: Renovation, Repair and Painting Regulation is affecting how remodelers who work in pre-1978 homes do business. Remodelers must consider many issues now that the regulation has gone into effect, including certification, insurance, contract language, job pricing, work practices and record keeping. Understanding and implementing new ways to do business will assist remodelers in avoiding legal prosecution and exposure to potential lawsuits. The good news is that remodelers can take steps to create a culture of compliance at their business by incorporating the lead rule into the estimating process, contracts, project planning and record keeping. If a remodeler has a history of demonstrating how the company is following the rule, problems like litigation may be reduced down the line.

Q: What are the certification requirements for remodelers working in pre-1978 homes?

A: Firms working in pre-1978 homes need to be certified. Firms need to complete the application for certification and submit a fee of $300 to the EPA, or to their state if the state is implementing the program. For a current list of states with approval to operate the RRP program, please visit the EPA’s web site. Along with firm certification, an employee will also need to become a Certified Renovator. This employee will be responsible for training other employees and overseeing work practices and cleaning. The training curriculum is an eight-hour class with two hours of handson training included. Find an approved trainer by searching the directory of EPAapproved training providers. Both the firm and Certified Renovator certifications are required and valid for five years. A Certified Renovator must take a four-hour refresher course to be recertified. Q: How should I adjust my contracts to reflect the lead paint requirements?

A: The NAHB legal team has developed 26

template contract language that can be used to update remodeling contracts for the lead rule. This language can be accessed and downloaded by members only. Remodelers should also consult with an experienced local attorney for assistance in drafting contracts because some states vary in their lead regulation and other legal requirements. Q: How will the rule be enforced?

A: The EPA can take enforcement actions against contractors and firms failing to follow the regulation. Enforcement can include heavy fines of up to $37,500 per violation per day. Both civil and criminal penalties are available, including up to one year in prison. Most likely, the EPA will request paperwork from the contractor to verify they have followed the rule, but site visits may also be possible. In August 2010, EPA issued an interim Enforcement & Penalty Policy that presents EPA’s methods for calculating and assessing penalties. Q: How is enforcement on the regulation different from legal liability issues?

A: Enforcement actions are brought by EPA and/or the state government to enforce the requirements of the RRP Rule. Liability issues, however, are separate from the RRP Rule and stem from common law tort, breach of contract and other legal claims, and are typically brought by a private person alleging an injury, such as a home owner. While the RRP Rule does not create a new liability it may increase home owner awareness of lead-based paint concerns. Q: What is the difference between a TSCA citizen lawsuit and a state tort claim?

A: The law that authorized the EPA to create the RRP Rule – the Toxic Substances Control Act (TSCA) – also created a provision whereby citizens can sue for violations of the regulation. A citizen must first notify EPA of its intent to bring a citizen suit and allow the agency the opportunity to pursue its own enforcement

action. If the EPA declines to enforce, the citizen suit may go forward. A state tort claim can be filed by an allegedly injured person and would have to prove that the remodeler was negligent, and that this negligence caused the person’s injury. Q: Are remodelers more susceptible to lawsuits under the new lead paint regulation?

A: Possibly, the regulations create a new standard of care for negligence suits that allege lead exposure or contamination, although home owners must still demonstrate that personal injury and/or property damage has occurred from lead as the result of deficient remodeling. Q: Do following the lead paint work practices and other requirements of the regulation provide any liability protection to the remodeler?

A: Yes. Following the lead paint rules will provide evidence that the remodeler has adhered to an appropriate standard of care, has performed remodeling activities in a reasonable manner and was not negligent. However, compliance with the RRP Rule does not absolutely create a safe harbor from liability, or shield a remodeler from all possibility of litigation. Q: Will my current liability insurance cover lawsuits related to lead paint?

A: No. You will have to purchase specific insurance that covers lead paint liability. Most contractors’ policies have exclusions for work that disturbs lead paint. The best place to start is to contact the insurer to ask about your coverage and pricing for a rider to include occurrences resulting from lead paint remodeling activities. Q: Besides following the regulation and obtaining liability insurance for lead paint, what else can I do to protect myself from lead paint related lawsuits?

A: Draft good contracts with the assistance of an experienced professional attorney. Adopt alternative dispute resolution procedures, such as arbitration or mediation. Including these procedures in contracts will help with dispute resolu-

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

tion. The advantages of arbitration or mediation are that they usually take less time, cost less and are less traumatic for involved parties than trial proceedings before the courts. Obtain indemnification agreements from subcontractors (or from home owners who have permitted third party work). This type of agreement will provide some protection for your company so that if another party fails to follow the regulation, or otherwise acts negligently, you will have recourse for their failings. Follow statutory Notice and Opportunity to Repair procedures (where applicable). These procedures can benefit remodelers by requiring the home owner to notify you in writing of alleged work deficiencies, affording opportunities to inspect and providing a means to resolve the issue without litigation. Provide an effective limited warranty (limiting duration and consequential damages) and adopt an effective customer service program to address any post remodeling claims or concerns. Warranties also allow you the opportunity to repair a problem raised by a homeowner, which may result in avoiding costly litigation. Q: Any other advice?

A: Thoroughly document any work conducted under the lead regulation. Keep detailed files on the steps of the remodel, work practices, lead testing and results, cleaning verification and any other details pertaining to the requirements of the regulation. Some remodelers are taking photos and video of their work at critical phases (such as setting up containment, using the lead test kits and conducting cleaning verification at the end of the project) in order to verify compliance with the rule. Also, itâ&#x20AC;&#x2122;s a good idea to identify potential areas of liability related to the lead rule and create processes to address each issue. For more questions about the lead rule, visit the National Association of Home Builders page at www.nahb.org/leadpaint or email mwatkins@nahb.org or call 800-368-5242, ext. 8327. For more questions about legal and liability concerns, email achai@nahb.orgor call 800-368-5242, ext. 8232. n

MID-ATLANTIC REMODELER A Supplement to Mid-Atlantic Builder MAY/JUNE 2011

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In a new home career that spans over 34 years, Bob Lucido has been on the front lines selling homes in a down economy and in the battle room, planning effective strategies to give his clients the competitive advantage. Just look at his record: Over 30,000 new homes sales, more than 4,000 lots, over 200 builders and over 1,000 new home communities. No other new homes sales and marketing team in Maryland has this kind of record. Call Leslie Rosenthal today for a free no obligation consultation on how to build and sell homes in this economy.

8171 Maple Lawn Blvd., Suite 160, Fulton, Maryland 20759 â&#x20AC;˘ 240-295-6015

Hayriye (Heidi) Gur, Haines Remodeling

The build team

Eren Nouri, Haines Remodeling; Chris Rachuba, The Rachuba Group; Jim Plazak, Fireside Hearth and Home and Martin Christensen, Unique Tile and Renovations

Judy Borns, Residential Title and Escrow

The happy family with house captain, Chris Rachuba, The Rachuba Group

Marka Guindon, Residential Title and Escrow

Rotten bathroom floor

Team Members enjoying food coordinated by Leslie Rosenthal, Bob Lucido Team ReMax Advantage

The Maryland Community Builders’ Foundation

Changing Lives and Building Communities

n April 30th, the Maryland Community Builders Foundation, the charitable arm of the Home Builders Association of Maryland, teamed up with Rebuilding Together Howard County, a nonprofit volunteer organization dedicated to helping elderly and/or disabled low-income homeowners, and families with children through home renovation and repair.

For this National Rebuilding Day, volunteers from all over the country area joined forces, armed with truckloads of donated materials to repair and renovate homes so residents can live in warmth, safety and independence. The Howard County Chapter had 25 homes throughout the area that were being renovated. Our Foundation signed on to repair a 2,000 square foot home in Elkridge lead by house captain, Christopher Rachuba of the Rachuba Group. “We did a total of approximately $20,000 worth of renovations to the home,” said Rachuba.” We roofed the house, cleaned and landscaped the yard, repaired and replaced the kitchen floor, repaired and replaced the bathroom floor, replaced the bathtubs and painted,” he added. To accomplish the lofty goal, the Foundation looked to members of HBAM for donations of materials and labor. “Due to the access to the building industry resources, HBAM members have a unique ability provide beneficiary organizations with labor and materials (either in-kind or for a nominal amount) that would otherwise cost significantly more,” Rachuba added. Many members stepped up to help. “The Maryland Community Builders’ Foundation took on one of the most challenging houses of the day,” said Rachuba, who is chairman of the Foundation. The Roof Center donated the shingles, Royal Gutter Service donated the gutters and Columbia Roofing and Exteriors installed them both. Jim Plazak from Fireside Hearth and Home spent the day rebuilding the entrance decks on the home with lumber donated by 84 Lumber. The team from T.W. Ellis including Tim and Barry went to work on the bathtubs donated by Kevin Carney of Thomas Builders while the team from Haines Remodeling and Greenleaf Remodeling tackled the paining inside. Judy Borns and Marka Guindon from Residential Title & Escrow arrived bright and early and pitched in all over the house. After the kitchen and bathroom sub-floors were replaced, Martin Christensen from Unique Tile and Renovations installed new laminate flooring. The trash was hauled off in a dumpster donated by John Gardner of North Star Foundation. To keep the crews happy and fed, Leslie Rosenthal from the Bob Lucido Team LLC ReMax Advantage Realty organized the donation of meals for the volunteers. The volunteers enjoyed breakfast and lunch, topped off with a table full of afternoon snacks.

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BEFORE

AFTER

According to John Startt, President of Rebuilding Together Howard County, “RTHC has repaired and renovated over 500 homes in Howard County- at no cost to the homeowner. We are able to do this through a unique combination of corporate sponsorship, volunteer labor, discounted services, donations of building materials and bulk ordering discounts.” The RTHC organization is able to provide $4 worth of benefits to families and individuals in need for every $1 in donations. The home owner returned home at the end of the busy day and her eyes filled with tears. “I can’t believe what you’ve done for me,” she said. Truly stunned by the outpouring of support and generosity, the family can now live in a safe and comfortable home. n The Maryland Community Builders Foundation can still use donations toward this worthy cause, so please visit the website at www.buildingindustriesfoundation.org and consider joining your industry peers in support of this project and others.

May/june 2011 MID-ATLANTIC BUILDER

builder mart 2011

MID-ATLANTIC BUILDER MAY/JUNE 2011 www.homebuilders.org

Testimonials Bruce Adkins, Director of Sales at White River

“Builder Mart is the best one day builder show in America.” Rudy McAdams from Leisure Specialties

“We were able to gather many leads and new contacts from the show… This was our 5th show of 7 this year and I have never been treated as well anywhere by anyone.” Keith Lively from Sport Systems

“It was a great show. Nice work! We’ll be there next year for sure.” Laura Caulkins from Patriot Electric

“We had a wonderful experience at Builder Mart this year… Everyone on your staff could not have been more helpful from aid in set-up, to assistance during the show to help with break down the next day. We were very impressed with all of the staff members.”

2011 Best Booth Winners

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South Hall Best Island Booth TW Perry

North Hall Best Island Booth Patriot Electric

Best Multiple Booth Residential Title

Best Multiple Booth Sherwin Williams

Best Single Booth Energy Services

Best Single Booth Quickrip

May/june 2011 MID-ATLANTIC BUILDER

market recovery series

Put Your Marketing to the Test And See How You’re Doing By John Graham

ll marketers are liars. And since we’re all marketers of one thing or another, we’re all liars. To give proper credit, Seth Godin, the provocative business pundit, started it with his book, All Marketers are Liars. And, as the syllogism makes incredibly clear, he was 100 percent on the mark.

This isn’t an indictment of P&G, BofA, Chrysler, Goldman Sacks, McDonalds or any other organization, big or small. There are probably more liars on LinkedIn, Facebook and any of the other social media, where tens of millions of self-marketers have a feast day making claims that wouldn’t stand up before a sixth grade class. And as a recent USA Today Snapshots® noted, some 70 percent of self-marketers admit to doing some “fabricating” with their countless unsupportable claims as they do their best to “sell” their product. This, of course, doesn’t take into account the desperately doctored job applications, resumes and college applications, but it does include at least a few U.S presidents and a rather long list of Members of Congress. Even though Seth Godin was on to something significant, he changed the title (not another word) of the latest edition of his book. It’s now, All Marketers Tell Stories. Needless to say, we’re all marketers and we tell some whoppers that make us feel better about ourselves, give us an advantage or enhance our image. At the same time, the Internet gives us opportunities ad nauseum to “tell stories.” However, this is neither a defect nor the downfall of truth telling. Happily, there are millions of people who are constantly setting the records straight, which is why Wikipedia and tens of thousands of reviews work so well. Fraud detectors of are always at work! The only ones who are deceived by making unsupported claims are those who make them. Today, the Marlboro man would be sent packing and Virginia Slims have lost their femininity. All of which is to say that no one marketing a product or service should deceive themselves into believing that what they’re doing is the exception to the rule. Believe it or not, marketing today must past the truth test. In fact, much of what we market is better, often much better. For some reason, many marketers think success depends on lying. A good example is the fast foods industry that seemed to think that consumers would ignore 1,200-calorie burgers forever. So, here’s the test. It’s a simple way to see if your marketing passes muster.

1. Why would customers want to buy what you’re selling? Believe it or not, this is a serious question, although many marketers might consider it totally irrelevant. Does what you’re marketing solve perceived problems for customers or trumped up ones? Can they count on it to deliver on your promises? “How does it help me?” is a significant question. Take the issue of national brands vs. store brands at the supermarket and other places. In the past, consumers opted for the “leading national brands,” until the recession hit. And quite suddenly, store brands were getting much more shelf space, as consumers gave serious attention to the cost question. 2. Are you telling the truth? It may seem strange to align marketing with truth, since they appear to be such strange bedfellows. As easy as it is to be cynical, consider this. On the day that Steve Jobs announced the Apple iPad, before more than a handful of people had one in their hands, he boldly stated that it was “a truly magical and revolutionary product.” Then he went on to say, “What this device does is extraordinary. It is the best browsing experience you’ve ever had. It’s unbelievably great ... way better than a laptop. Way better than a smartphone.”

MID-ATLANTIC BUILDER May/june 2011 www.homebuilders.org

Wow! So many over the top claims in so few words! But they were not hyperbole in the case of Steve Jobs and the iPad. If anyone else had tried it, they would have failed. He wasn’t laughed off the stage for one reason: he had a proven track record of delivering on his promises, of telling the truth. Instead of being booed, he was applauded. The truth works. Unfortunately, most marketers haven’t that learned lesson. 3. Is the marketing message sufficiently compelling to move prospects to action? Or, to put it another way, robust offers work, while

wimpish ones don’t. A case study in BtoB, the marketing publication, describes an AT&T campaign directed to a group of 75 top executives of leading hotels. Based on the J.D. Power and Associates finding that WiFi is the most valued amenity travelers want to know about before checking in. AT&T picked up on that fast and wanted to make sure the executives knew about it and that the company had solutions for them. Ironically, AT&T decided on a direct mail campaign, with the goal of getting meetings with AT&T sales reps. Recognizing that high level executives are well insulated from invasive attempts, they took a “you’ve got to see this” approach. The first mailing was an attention-getting package with an actual Wi-Fi locator device inside with this message: “Locating Wi-Fi at [name of hotel chain].” Sales reps made follow up calls to verify that the package had arrived and to ask for a meeting. The second mailing went to those who did not respond. It was “a custom dimensional piece consisting of a cardboard mockup of a netbook-like computer,” reported BtoB. Rather than a screen, it sported a video-in-print technology that played a two-minute video personalized for each hotel chain. Next day delivery upped the ante even more by requiring the signature of the recipient. Again, the sales team followed up using several ways to contact the prospects. It was a powerful combined effort between marketing and sales.

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Those making the commitment to meet with the sales reps received a special thank you, a real netbook computer. Based on the traditional 2 percent response rate for direct mail, AT&T reached 9 percent, based on face-to-face sales meetings. 4. How do our products or services stand up to those of the competition?

The marketing objective is not to out do the competition, even though that’s quite common; rather, the goal is to out think the competitors. The tendency is to pile on the bells and whistles, even though, as we all know, no one has a clue how to use them and wouldn’t even if they knew how. Who has mastered the common cable TV clicker? Who can use 10 percent of the capability on the simplest digital camera? And they call them smart phones because they are clearly smarter than the users. Whether less is more is debatable, but many times less best meets the customer’s needs. After using a particular computer program for analyzing Workers’ Compensation data, Kevin Ring, the Lead Workers’ Comp Analyst at the Institute of WorkComp Professionals in Asheville, NC, wondered why so many of the Institute’s Advisors weren’t using the software. For what they needed, it was too powerful and seemed somewhat daunting to get the reports they needed. Ring then developed a new program, designed to give salespeople exactly what they wanted, one that’s easy to use, quicker and costs less. It’s a good example of how out thinking the competition is a powerful marketing strategy. With these four questions, you can put your marketing to the test. If it passes, congratulations. But if your marketing leaves something to be desired, this is a good time to get to work. In the end, we’re all marketers and, therefore, all liars. At the same time, some of our stories have a clear ring of truth. n John R. Graham is president of Graham Communications, a marketing services and sales consulting firm. He writes for a variety of business publications and speaks on business, marketing and sales issues. Contact jgraham@grahamcomm.com or visit grahamcomm.com for more information.

May/june 2011 MID-ATLANTIC BUILDER

market recovery series

Market Effectively, Efficiently With Automated Marketing By STEVE LEWKOWITZ

ougher market conditions and tighter budgets have forced many companies to get innovative in order to do more with less. Now, as the industry slowly begins to return to health, these same innovations can help position builders, not just for survival, but for rapid growth as markets rebound.

The marketing landscape has changed dramatically in recent years. Traditional marketing channels, such as print advertising, have been supplanted by a range of different online marketing outlets — from social media to pay-per-click ads. Many companies have struggled to keep up with these changes. Even those who have moved more of their marketing efforts online may not be taking full advantage of the opportunities to reduce costs and track performance, increasing — and monitoring — the return on investment (ROI) of their efforts. Furthermore, taking advantage of the full potential of online channels and enabling technologies is not just about marketing online, it’s also about leveraging electronic tools to streamline the generation and management of both online and offline leads. It is not surprising, then, that there has been a recent surge of interest among home builders in marketing automation.

Marketing Automation in Broad Brush Basically, marketing automation is all about doing more with less — conducting more marketing campaigns, reaching more prospects and collecting more leads while minimizing costs. To accomplish that, marketing automation encompasses a variety of different kinds of technology solutions all designed to facilitate the planning, execution, management and tracking of marketing activities — from traditional print advertising to direct mail, e-mail, sales events and promotions. For example, marketing automation can encompass event management solutions, e-mail and direct-mail applications, planning tools, marketing-analysis programs and more. Ultimately, marketing automation is about incorporating a new set of tools to sell more homes faster — at a lower cost of sale.

Take Advantage of an Inexpensive Channel Good marketing automation systems help builders and marketers manage and analyze the totality of their marketing initiatives, whether these include advertisements in print newspapers, glossy brochures sent by mail or in-person sales center events. But one of the greatest advantages of automated marketing systems is that they enable builders to maximize the potential of the lowest-cost marketing channel — the Internet.

MID-ATLANTIC BUILDER May/june 2011 www.homebuilders.org

The Internet rapidly skyrocketed in its importance to the industry in just a few short years to the point where home builders today aren’t just using the Internet for marketing because it’s cost-effective, they’re using it because the Internet is where the home buyers are. Studies conducted for NAHB’s Institute of Residential Marketing found that, not only did Internet-using consumers value online resources highly in their home buying search, they found them the most useful, most important resources they were most likely to use in future home searches. When considered along with statistics from a study by the National Association of Realtors® indicating that 77 percent of home buyers use the Web when looking for a home, the picture is clear — builders who neglect or insufficiently utilize online channels are passing up an obvious and relatively inexpensive approach for reaching the majority of potential buyers in their market. Nor is this push toward greater use of online channels driven purely by consumers; builders have reported that their bestquality leads find them on the Web.

Reaching More Home Buyers and Learning More about Them The linchpin of marketing automation is e-mail marketing — a communication channel that allows builders to reach almost limitless numbers of potential customers without increasing costs. With automated marketing systems, builders can create compelling, rich-media e-mail communications and customize them to reflect the recipient’s name, location and interests. Plus, with a small investment in creating content tailored to specific preferences and conditions, home builders can design highly personalized campaigns that really connect with the buyer, increasing e-mail open rates and sales conversions. This can be accomplished by installing simple forms on the builder’s Web site or on kiosks at sales centers that allow for fast, easy collection of initial information about interested home buyers. Follow-up e-mails to the prospects who fill out the forms provide a perfect opportunity to gather further qualifying information in exchange for incentives and marketing collateral. By using each touch-point as a chance to collect more detailed information about leads, home builders can avoid overwhelming prospective home buyers with a barrage of intrusive questions all at once — while also slowly building an ongoing relationship and valuable two-way exchange.

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Home builders today aren’t just using the Internet for marketing because it’s cost-effective, they’re using it because the Internet is where the home buyers are. As builders learn more about buyer preferences and interests, they can use this information in tandem with marketing automation technology to further personalize communications. For example, if a prospect has young children, the system can send useful information about the quality of neighborhood schools. Or, if a prospect is an avid golfer, the system can automatically send tantalizing descriptions of area golf courses. As more in-depth information about prospects is gathered, increasingly sophisticated database segmentation can be performed, allowing for precise targeting of marketing initiatives.

Managing Leads More Effectively During the housing boom, few builders complained about ineffectiveness of their marketing efforts. Instead, most builders were overwhelmed by a massive influx of leads from the Web and other sources, to the point where they had had trouble effectively assembling, assessing and managing the leads. In a hot market, builders may be able to get away with ineffective lead management, but in cooler times, mishandled leads can translate directly into lost sales. The fact is that, whatever the market condition, builders need reliable systems to help them prioritize and manage their leads. The secret to cementing marketing’s importance in home sales is to create a fluid process that integrates marketing directly with the sales team. Builders can close the loop between marketing and sales — and ensure consistent lead follow-up — by implementing marketing automation systems that include robust lead management functionality. With marketing automation systems, home builders can define criteria, such as readiness to buy and financial preparedness, that can be used to automatically qualify and classify leads as they come in. If further information is required to qualify the lead, follow-up e-mails can be automatically triggered to complete the lead classification.

May/june 2011 MID-ATLANTIC BUILDER

Once the leads are classified, they can be immediately funneled into an appropriate chain of activity — with hot leads assigned directly to the appropriate home sales consultants according to territory, specialization or other parameters the builder establishes, and longer-term leads assigned to automated communications based on their particular classification and attributes. This process ensures the most efficient use of every sales consultant’s time, while also guaranteeing that, rather than ignoring cooler leads, builders can nurture them by placing them on an appropriate path of communication until they are ready to make a purchase. With marketing automation, the often labor-intensive and error-prone steps of lead qualification, distribution and nurturing is now a thing of the past as it makes way for work-free, automated processes that advance consistency and free up your sales consultants’ time to focus on the best leads.

Measuring Marketing Success An essential part of closing the loop between marketing and sales is to be able to accurately track the results of marketing initiatives. Marketing automation systems typically allow builders to track a range of useful metrics about campaigns — open rates, response rates, sales conversions and more. Sophisticated systems not only enable builders to track projected and actual campaign costs, but also to assign a persistent lead source designation to an individual, allowing builders to reliably trace customers back to marketing activities and to track the lifetime revenues associated with them. This provides the information required to accurately report on success rates and ROI.

There’s No Time Like the Present Marketers generally don’t begin to think seriously about ROI and efficiency until budgets are slashed. Marketing automation can be invaluable to help marketers do more with less when times are tough. But as markets pick up, marketing automation tools are indispensable in helping builders manage volume, streamline operations and measure performance, alleviating a lot of manual processes and freeing marketers to think more creatively.

As markets pick up, marketing automation tools are indispensable in helping builders manage volume, streamline operations and measure performance, alleviating a lot of manual processes and freeing marketers to think more creatively. Strategic-thinking builders invest in solutions that will help them realize immediate returns while also equipping them to more effectively deal with future market changes — whether good or bad. As builders consider areas for greater efficiency and cost-cutting and look to market smarter, marketing automation and lead management systems offer an attractive area for exploration. n Steve Lewkowitz is the professional services director at CDC Software, providers of Pivotal CRM for home building and real estate. For more information, e-mail Lewkowitz, or call him at 732-297-4060.

MID-ATLANTIC BUILDER May/june 2011 www.homebuilders.org

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green building BUILDING HOMES – BUILDING SUCCESS!!

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

Remember, in the end, it’s about how people feel about you and your homes. That’s your signature, and no one can take that away, or duplicate it. It is uniquely you and your company.

MID-ATLANTIC BUILDER May/june 2011

n the last issue, we began to explore your signature as a builder. It’s your brand, it’s what you stand for, and it’s how people remember YOU. Think about it…. If I say I just bought a truck, that doesn’t mean much. However, if I say Ford F150 or Dodge RAM, you immediately have an image in mind, and a sense of the quality and reliability of those trucks. If I say I just bought a car, that’s pretty boring. But if I say Corvette, or Mercedes, or Prius or Ferrari, now you have an image and a reaction. By the way, did you know that around 30 percent of Ferrari’s revenue comes from “non-car” activities? Ferrari has about 40 “Ferrari stores” world wide selling Ferrari branded merchandise and they just opened a theme park in Abu Dhabi. Annually, Ferrari enjoys about $400 million in profit, and that is from selling about 6,000 cars per year. As one marketing executive said, it’s the “magic dust” of the brand. So how can you turn saw dust into “magic dust?” In the last issue I outlined the key elements that I believe should be part of your signature as a builder. They are: 1. Responsive service – you should genuinely care about your customers. They are making one of the biggest decisions of their life to buy a home from you. 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 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 homebuyer 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 homes. That’s your signature, and no one can take that away, or duplicate it. It is uniquely you and your company. Let’s look at RESPONSIVE SERVICE in more detail. What does it mean? Responsive has at least two meanings; 1. Responding to the concerns and interests of your customer 2. Responding quickly and timely First, to respond to the concerns and interests of your customers, the builders I remember most are those who: • take the time to understand the concerns and interests of their customers by asking questions and LISTENING. Listening is a lost art and the number one quality of successful people in virtually any business. If you don’t understand your customer’s expectations, it’s IMPOSSIBLE to satisfy them. • have comprehensive but easy to understand standards and specifications for what they are going to build. Include pictures wherever possible.

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2012

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BUILDERMART.ORG

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

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

Reserve your booth space now by contacting: Chris Baughan, Sales Manager 410-265-7400, ext. 121

Maryland State Fairgrounds • Timonium, MD • BUILDERMART.ORG

green building • take the time to explain those standards to their customer. • are sensitive to what matters to a home owner when they explain their standards. Use the WIIFM (What’s In It For Me) approach to communication. If you are explaining why you use a certain brand of window, put that in the context of why it’s important to your customer. • schedule customer site walks regularly; let them see what you are doing and let them ask questions. • keep the site clean, sweep it every day. While that may not matter to the construction process it has an enormous impact on your customer’s perception. It also sends a strong message to your crew that you are committed to your customer and to quality. • when a customer ask questions or has concerns, respond to him or her respectfully, even if their question is about something typical of home construction and something that you have seen hundreds of times. They don’t know that! Second, to respond quickly and timely. In various surveys that I have seen, the most frequent complaint about residential builders is that he or she did not call me back! That seems pretty simple but I have seen it become the root of major construction disputes and legal battles. We are all busy. However, at the time that customer calls you and has a problem, that’s the most important thing in his or her world and it’s about a house that he or she has just paid you a lot of money to own! Here are some policies I am aware of that help keep focus on timely responses: • all voice mails are answered within 4 hours, and follow up if you don’t make live contact; just leaving a voice mail doesn’t mean you have answered the call • follow up site visits are scheduled within 48 hours (24 hours if possible) • if work is needed and can be done by your crew, it is completed with 48 hours following the site visit • if work is not needed, the visit and resolution is documented and shared with the customer within 48 hours of the site visit

MID-ATLANTIC BUILDER May/june 2011

• if work is needed and requires material purchase and/or subcontractor coordination, those details are worked out and a specific schedule and plan is provided to the customer with 48 hours of the site visit This type of policy should be shared with your customer as part of your marketing material and at your first personal contact. Mature adults recognize that no one is perfect. It adds substantially to your credibility when you disclose how you deal with questions and concerns. Of course, once you put such a program in place, you must live up to it. Developing your signature isn’t simple, but it works! There are builders I know who spend virtually nothing on advertising. Their customers hear of them through reputation and word of mouth. And those same builders are usually able to charge a bit more for their homes. They realize they are a builder selling a service not just a home. For them saw dust has become “magic dust.”

John Smith – A Builder you can Trust As you read my 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 or respond to you directly. Working together, my goal is to help explore new and better ways for you to build homes that you can be proud of and that will turn your customers into some of your best sales people! n Criterium Engineers has specialized in residential construction for more than 50 years, with more than 60 offices in more than 30 states. We have evaluated more than 750,000 buildings. H. Alan Mooney, P.E, President of Criterium Engineers, is a licensed, Professional Engineer in 8 states, with more than 35 years experience 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.

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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

HOMEBUILDERS Association of Maryland

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

ABC Equipment Rental Ralph Hunsinger 800 Geipe Road Catonsville, MD 21228 Phone: 410-744-2323 Supplier - Equipment Rental & Financing

Cohee Insurance Agency Bruce Cohee 901 Dulaney Valley Road Ste. 306 Towson, MD 21204 Phone: 410-823-8777 www.coheeagency.com Professional Services - Insurance

WoodWay/LWO Corp. Mario Alfonse 3841 N. Columbia Blvd. Portland, OR 97217 Supplier - Lumber & Millwork

CMW Co. Inc. Mickey Waskey 10226-3 Baltimore National Pike Ellicott City, MD 21042 Phone: 410-313-8227 www.cmwvacs.com Supplier - Central Vacuum

Leisure Specialties Carrie Taylor 16208 Hanover Pike Upperco, MD 21155 Phone: 410-374-0431 www.leisurespecialties.com Supplier - Decks & Fences

Cornerstone Closets, LLC Jennifer Holder 10021 Emily Fox Ct Ellicott City, MD 21042 Phone: 410-493-6557 www.cornerstoneclosets.com Supplier - Closets & Shelving

Southern Trust Mortgage Dennis Sullivan 3290 North Ridge Road Suite 220 Ellicott City, MD 21043 Phone: 410-750-2167 www.southerntrust.com Professional Services - Banking & Mortgage

Group Beneﬁt Services David Cardwell, Sr. 6 North Park Drive Hunt Valley, MD 21030 Phone: 410-832-1300 Professional Services - Insurance

MNET Mortgage Kevin Sapp 10451 Mill Run Circle Owings Mills, MD 21117 Phone: 410-654-3360 www.mortgagenetwork.com Professional Services - Banking & Mortgage Sponsor: Tim Hudson, Wells Fargo Home Mortgage

DH Marketing Debi Howard P.O. Box 1140 Severna Park, MD 21146 Phone: 410-598-3720 Professional Services - Advertising & Marketing Sponsor: Cindy Plackmeyer, Steuart-Kret Homes

Maryland Life Magazine Kathy Hawkins, Ms. 141 W. Patrick St., Suite 200 Frederick, MD 21701 Phone: 301-696-1060 www.MarylandLife.com Professional Services - Photography

BUILDERS

REMODELERS

David Line 5 Mullen Lane Lothian, MD 20711 Phone: 410-867-0047 Builder - Custom

John Fearnow 111 Fox Run Lane Stevensville, MD 21666 Phone: 410-643-8218 Remodeler

Wormald Homes

Young Squared LLC

Ken Wormald 5283 Corporate Drive Suite 300 Frederick, MD 21703 Phone: 301-695-6614 Builder

Andy Young P.O. Box 406 Monkton, MD 21111 Phone: 443-865-2435 www.youngsquared.net Remodeler

Global Builders LLC

Chesapeake Design & Build

Kaine Homes Brooke Kaine P.O. Box 519 Huntingtown, MD 20639 Phone: 301-855-1330 Builder Sponsor: Dennis O’Neil, ONeil Interactive, Inc.

A.C. & R. Foam Insulators LLC. Scott Cameron 7085 Dorsey Run Road Elkridge, MD 21075 Phone: 443-459-5800 www.acrinsulation.com Subcontractor - Insulation & Drywall

A.C. & R. Foam Insulators LLC. Scott Cameron 7085 Dorsey Run Road Elkridge, MD 21075 Phone: 443-459-5800 www.acrinsulation.com Supplier - Insulation & Drywall

Take a look www.homebuilders.org

Dorman’s Lighthouse & Design Susan Adelman 1524 York Roaf Lutherville, MD 21093 Phone: 410-252-6100 www.dormanslighting.com Supplier - Lighting & Fixtures

Genuine Title, LLC Jay Zukerberg 11155 Dolfield Blvd Suite 100 Owings Mills, MD 21117 Professional Services - Titles & Settlement Sponsor: Tim Hudson, Wells Fargo Home Mortgage

Redesigned 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.

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

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MAY/JUNE 2011 MID-ATLANTIC BUILDER

governmentaffairs

Green Builders Applaud Signing of HB 630 Bill puts ICC 700 National Green Building Standard on par with LEED for homes

he Home Builders Association of Maryland’s Maryland Residential Green Building Council applauds Governor O’Malley for signing HB 630 – High Performance Homes legislation. The bill encourages construction of green certified homes by expanding the definition of High Performance Homes to include those certified as Silver, Gold or Emerald under the ICC 700 National Green Building Standard as well as homes certified as Silver, Gold or Platinum under the U.S. Green Building Council’s LEED for homes rating system. “Now that the state recognizes the ICC 700 as equivalent to LEED, our Council will be going to all the local jurisdictions with residential green building tax credits that specify ‘LEED or equivalent’ and letting them know the ICC 700 is now considered equivalent and should be included in their program” said Mike Baldwin, green builder and President and CEO of Baldwin Homes about the passage of HB 630. The ICC 700 was developed in January 2009 and is the only residential green certification program to be independently approved by the American National Standards Institute (ANSI). The NAHB Research Center, an independent, thirdparty testing and certification organization based in Upper Marlboro, MD, is the adopting entity for the ICC 700 through its National Green Building Certification Program. ICC 700 is the first national green rating system to offer robust scoring and certification platforms for all types of residential construction and development, providing greater continuity to projects certified to the standard throughout Maryland and across the country. “Buying a home that is Green Certified by a third party to ICC 700 ensures a homebuyer of a truly green, highperformance home; not just an energyefficient home with a few other green features thrown in,” according to Michael Luzier, president of the NAHB Research Center. “The standard is a credible, comprehensive definition of a green home that will provide years and years of payback for Maryland homeowners while helping to preserve the state’s critical natural resources.”

Photo courtesy of the Press Office of Governor Martin O’Malley.

Front Row: Lieutenant Governor Anthony Brown, Senate President Mike Miller, Governor Martin O’Malley, Speaker of the House Mike Busch. Back Row: Bill sponsors Delegate Pam Beidle, Delegate Cathy Vitale, HBAM Government Affairs Director Michael Harrison, HBAM Member, Mike Baldwin, President/CEO of Baldwin Homes and Maryland State Builders’ Association lobbyist, Katie Maloney.

Homes that are Green Certified to the ICC 700 by the NAHB Research Center incorporate environmental practices in six categories: Lot & Site Development, Resource Efficiency, Energy Efficiency, Water Efficiency, Indoor Environmental Quality and Homeowner Education. In order to reach the next higher level of certification, a home has to achieve successively higher point totals is EVERY category, not just an overall higher score.

In Maryland, 31 new homes have been certified to the ICC 700 as well as two developments. Currently, 21 new homes are in the pipeline to be certified.

MID-ATLANTIC BUILDER MAY/JUNE 2011 www.homebuilders.org

HBAM Howard County Chapter Successfully Negotiates Changes to Moderate Income Housing Program On April 4, the Howard County Council unanimously passed legislation adding market based incentives to the county’s Moderate Income Housing Unit (MIHU) program. Under the new law, if the base sales price for a MIHU reaches 90 percent of the net market price for a comparable unit, after factoring in seller incentives and costs, the developer can chose one of three options rather than listing the unit as an MIHU. The first option is to buy and renovate properties in foreclosure, as long as the total number of bedrooms doesn’t decrease. The second option allows developers to substitute units by offering 1/3 of the required number of units to eligible low-income purchasers who have an annual household income of up to 60 percent of the median income. The third option allows developers to pay a fee-in-lieu to the Department of Housing and Community Development for each required MIHU, which cannot be less than 7.5 percent of the sales price. HBAM and Chapter members worked closely with the bill sponsors, the Housing Department and the Full Spectrum Housing Coalition as well as other fair housing advocates to craft amendments to the original bill that makes the end result better for HBAM members and housing advocates alike. In the end, all groups supported the bill and it is a testament to what can happen when all sides work together towards a common goal.

HBAM Visits Capitol Hill In conjunction with NAHB’s day on the Hill, members of the Home Builders Association of Maryland joined the Maryland State Builders Association in hosting a luncheon for Maryland’s Congressional Delegation on March 16th. Senator Cardin spent 45 minutes with MSBA and HBAM members discussing the hurdles facing the home building industry, including acquisition, development and construction lending, EPA mandates, protecting the mortgage interest deduction, credit and lending issues and other

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topics. Congressman Sarbanes (MD-3) also stopped by, as did staff from four other Maryland representatives. It is vital that our State’s federal elected officials understand our issues and hear from us directly, so by that measure it was a very successful day. If you are interested in attending next year’s luncheon, please email jeff@homebuilders.org.

HBAM Land Development Council to Host Stormwater Workshop Does MDE’s ESD to the MEP on SWM make you want to go AWOL?! HBAM’s Land Development Council will be hosting a stormwater workshop this June, aimed at trying to make sense of the stormwater management alphabet soup. The workshop will • look at all of the ESD features that must now be used and drill down to compare them in terms of the water volume they can handle and each feature’s cost per cubic foot of water treated, in order to help engineers and developers make cost effective design decisions • examine the impact the new regulations have on density yield and overall SWM costs, as well as differences among the counties in how they individually plan to apply MDE’s policy • investigate who will be responsible for maintaining these features down the road and how this will be enforced The panel of presenters will include engineers, builders, contractors, landscapers, attorneys and county officials. Attendees will have an opportunity to talk with vendors about their ESD products. Watch for notification of the date, time and place when details are finalized.

Cecil County – Repeals Sprinkler Mandate The Cecil County Commissioners voted 5-0 to repeal the mandate for all newly constructed single family homes to have automatic fire sprinklers installed in the homes. The vast majority of new single family homes in Cecil County (outside of municipalities) are not on public water, and HBAM argued that this presented

a significant cost hurdle for the home building industry. In June 2010, the Cecil County Commissioners passed the mandate by a 4-1 margin without any consideration for lots that are on well and septic and without any grandfathering provisions for homes and developments in the pipeline. However, after the November elections brought about change to Cecil County government, the newly elected Commissioners - at the urging of HBAM as well as many Cecil County residents - huddled and quickly decided to place a six-month moratorium on the new law, extending its effective date to June 2011. During that time, HBAM worked closely with the Commissioners on enacting a law that allows the buyer to choose not to install sprinklers, called the “opt-out.” When the draft bill did not include spec homes in the opt-out, HBAM pointed out the adverse impact that would have on local, small volume builders and worked quickly to ensure that the new law included spec homes in the opt-out provisions. The final bill passed with spec homes included in the opt-out. Effective July 1, 2011, all new single family homes in Cecil County will allow the buyer to choose not to install sprinklers; model homes must have sprinkler systems installed as do all newly constructed two-family homes. n HBAM Government Affairs Michael Harrison Director of Government Affairs Howard, Baltimore and Carroll Counties michael@homebuilders.org 410-265-7400, ext. 109 Jeff Tosi Director of Government Affairs Anne Arundel, Harford and Cecil Counties and Baltimore City jeff@homebuilders.rog 410-265-7400, ext. 101

May/june 2011 MID-ATLANTIC BUILDER

BRAC September 2011 BRAC Deadline Fast Approaching Last May, the Home Builders Association of Maryland hosted the “2010 BRAC Housing Conference” bringing together a panel of experts providing a wide range of information on the thousands of jobs and potential new residents relocating to our market area due to the Base Realignment And Closure, commonly known as BRAC. Since that time, through this column and other resources, HBAM has worked to keep its members informed of opportunities to reach this pool of employers, employees and hopefully customers. As we noted in our June column of last year, it is federally mandated by Congress that all positions be in place by September of 2011. These direct government, military and embedded contractor jobs are expected to occur at Fort Meade (11,800 plus jobs), Aberdeen Proving Ground (8,800 jobs), Naval Medical Center (Walter Reed 2,400 jobs) Andrews Air force Base (3,000 jobs), and Fort Detrick (1,400 jobs).

Where’s the Growth? While the majority of the direct jobs may be landing at Aberdeen Proving Ground in Harford County and Fort Meade in Anne Arundel County, HBAM members including builders, contractors and consultants are expecting the benefits to be much further reaching. It is estimated that up to 60,000 additional jobs will trail these direct impact jobs. So, where is all this growth happening? Much of it has been commercial construction on base or “on installation” not necessarily visible to the general public. In theory “homes to the jobs”, translated as office space, need to be in place first. At Aberdeen Proving Ground, St. John Properties is developing The Government and Technology Enterprise (THE GATE), a state-of the art office and technology park for lease to the government sector and non-government users. Check out the link for THE GATE at http://apg2012.apg.army.mil/faqs.cfm or more importantly, subscribe to the e-alerts sent out by Chesapeake Science and Security Corridor at www.marylandready.com 48

which provides daily updates on BRAC happenings in the regional area.

Moving Dirt It is much easier to see the direct impact of BRAC in the Ft. Meade and Odenton Town Center area where there is lots of dirt being moved and construction underway. The Defense Information Systems Agency (DISA) opened its new constructed headquarters at Ford Meade on April 16th, eventually expecting a total of 4,300 employees. According to the Anne Arundel County Economic Development www.aaedc. org, there is over 7 million square feet of mixed-use development planned for The Odenton Town Center. Projects approved for permitting include Independence Park by The Halle Companies, Meade Center by Fortis Development, Flats 170 at Academy Yard (former Nevamar Property) by Stonebridge Carras, Odenton Gateway a joint project by Elm Street/Johns Hopkins Medical/Anne Arundel Medical Center (under construction), Seven Oaks Office Building by The Halle Companies (under construction/now leasing), Town Center Commons by Odenton Investments, LLC (under construction by Ryan Homes) and The Village at Odenton Station by The Dolben Companies (under construction). Details on these projects can be found at a variety of websites including West County Chamber of Commerce http://westannearundelcountymdcoc.weblinkconnect.com and a terrific Odenton Town Center website and www.odentontowncenter.com. Mixed-use is the key phrase here. The projects noted above include more than 1,300 apartments of which more than 800 are permitted or under construction. Jay Winer, owner of A.J. Properties, a long time Odenton Town Center advocate and chair of the West County Chamber of Commerce Economic Development Committee, sees apartment construction as part of the development cycle of the Odenton Town Center. In his opinion, the apartment development is following the opportunity of financing available

for this type of construction. He believes it will also be an important element in establishing a sense of place for Odenton Town Center which has been missing since the plan was conceived. In addition, West County offers one of the few opportunities where land is available for high density development in Anne Arundel County with corresponding strong job growth due to BRAC. However, there has been a concern expressed that these opportunities may be short lived as Anne Arundel County is currently midstream in the design for a much needed upgrade to the water and sewer system serving this area. Now that we know where the direct impact of BRAC is, next issue we will examine the spillover to the adjacent counties. 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. She is active in regional building associations and is a graduate of the Johns Hopkins University Real Estate Institute in Baltimore, Maryland with a Master of Science Degree specializing in real estate development. More recently she has become obsessed with understanding how to reach that BRAC new home buyer. She can be reached at 410-990 1050 or bldesjardins@comcast.net.

MID-ATLANTIC BUILDER May/june 2011 www.homebuilders.org

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May/june 2011 MID-ATLANTIC BUILDER

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

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

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

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

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

York 2200 Monroe St. 717-792-2500

Hanover 108 Ram Dr. 717-632-0217

www.jhmson.com 4

MID-ATLANTIC BUILDER MAY/JUNE 2011 www.homebuilders.org