COMMUNITY DEVELOPMENT AWARDS
Mid-Atlantic
Vol. 55 Issue 4 September/October 2013 www.homebuilders.org
Relevant Development Excellence in Community Development Awards Announced
Vintage Security A Dedicated Partner to the Building Industry.
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MID-ATLANTIC BUILDER september/october 2013 www.homebuilders.org
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September/October 2013 Vol. 55 Issue 4
Mid-Atlantic
Editor Kristin Josephson Hogle, Communications Director communications@homebuilders.org
Advertising Chris Baughan, Advertising Sales Manager 410-265-7400, ext. 121 chris@homebuilders.org
Design Heather Winkel, Art Director Kelsy Stone, Graphic Designer Jeremy Haag, Graphic Designer Network Design Group ndg@networkmediapartners.com
HBAM Legal counsel Linowes and Blocher
Mid-Atlantic Builder
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Excellence in Community Development
HBAM Announces winners of prestigious land development awards.
Also 42
18 HBAM Debuts New Pal Program 22 Woodn’t You Know It
Composite decking is here to stay.
24 Architects Have More Options Than Ever Streamline the process by using your own engineer.
31 Offsets Will Dramatically Impact Housing Industry
32 Working in the Cloud and on the Job Your data is always within reach.
34 The ‘Right’ Rate of Return for Energy Efficiency Surveys indicate that most home buyers care about energy efficiency and features that will lower utility bills.
54 Corner NAHB
Departments 46 Maryland Center for Housing 48 Stats and Facts 51 New Members 52 Government Affairs
Postmaster: Send address changes to Home Builders Association of Maryland, Inc., 6030 Daybreak Circle #A150 PMB 362 Clarksville, MD 21029
ECO BOX Mid-Atlantic Builder text and cover pages are printed on SFI certified Anthem Matte using soy ink.
Pages 27-30 Pull-Out Section MID-ATLANTIC
Are you ready to be a Personal Ambassador Liaison to a new member?
Green Building Still Crazy After All of These Years?
is a publication of HBAM Member Services, Inc., a subsidiary of the Home Builders Association of Maryland, Inc., 6030 Daybreak Circle #A150 PMB 362 Clarksville, MD 21029 410-265-7400, www.homebuilders.org.
• The Sustainable Forestry Initiative® program promotes sustainable forest management.
Remodeler A supplement to Mid-Atlantic Builder
36 Energy Efficiency Legislation Moves Through the Senate
Results could have dramatic impact on builders and home buyers across the country.
HBAM Remodelers Award of Excellence
Bathroom Remodel $45.000–$65,000 Robert Kutner Associates, Inc., Schaefer Master Bath
38 Who Gets Dad’s Office?
5 Tips for family succession planning.
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MID-ATLANTIC BUILDER september/october 2013 www.homebuilders.org
WE TAKE THE LOAD , OFF. IT S THAT SIMPLE.
For thousands of years, simple machines like the pulley have helped civilizations build structures that would have otherwise been impossible. And since 1984, Builders Mutual has been dedicated to helping builders ease the burden of choosing and managing insurance. We offer straightforward tools like risk management and Builders University to help protect your bottom line. If you’re in construction, the insurance choice is simple.
Ask your agent about us. Or read more at buildersmutual.com. www.homebuilders.org
september/october 2013 MID-ATLANTIC BUILDER
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2013 HBAM Leadership Executive Committee Scott Armiger President
Russell Dickens President Elect
president’smessage
Tom Baum First Vice President
Lisa Junker Associate Vice President
Jonas Jacobson Secretary
A Day on the Hill
Kimberly Palmisano Treasurer
Rod Hart
2013 is flying by. As I wind down my year as President, I want to reflect on some highlights. I want
to thank the Executive Committee and the Board of Directors for their tireless dedication and invaluable input. Your involvement in HBAM is very much appreciated and has made for a very successful year. By the time you read this message, the Maryland Center for Housing will be nearing completion. As a Building Industries Foundation Board Member, I have witnessed this monumental project come to fruition over the course of 2013. Our COO, Lori Graf, has taken on this project with much enthusiasm and drive AND…she is not a builder! She had a ton of support from HBAM staff, BIF members, Board members and builders and associates of HBAM. This was truly a “TEAM” effort and will be remembered in history as one of the Great success stories of HBAM. Personally, I can’t wait to welcome our members to the new headquarters in Maple Lawn!
During 2013 we have grown membership from 685 to 741. Our goal is to hit the 800 member mark by year end. We have created the new Eastern Shore Chapter and the annual Builder Mart in March was bigger and better than it has been in years. Our educational programs and social events add tremendous value and offer unlimited networking possibilities. Our legislative efforts have proven to save real money for our members and we continue to fight for our industry in Annapolis every day. HBAM is growing and will continue to be one of the best trade associations in the country…period.
We are continuing to move forward with a possible merger with the Maryland National Capital Building Industries Association. The consolidation of our Government Affairs Departments and the Maryland State Builders’ Association has streamlined meetings and our legislative efforts. Katie Maloney of the MSBA believes that this was a wonderful decision that will result in more productive discussions and more influence in Annapolis. I want to thank the incredible staff at HBAM. Namely: Lori Graf, Michael Harrison, Felicia Fleming, Chris Baughan, Kristin Hogle, Carey Swift and Becky Myers. They kept me organized, focused and made for an unbelievable year. I have truly enjoyed working with them and I cannot tell you how dedicated they are to the Association and to this outstanding industry. Thanks for being a great “second family” over the past year. In closing, I want to wish good luck to my friend, Russ Dickens; I know he will be a great President in 2014.
L. Scott Armiger 2013 HBAM President
Immediate Past President
Chapter Presidents
David Murphy Baltimore County Jim Krapf Anne Arundel County Jim Mathias Carroll County Russ Robertson Baltimore City Jeremy Rutter Howard County Dan Whitehurst Upper Chesapeake Bob Purcell Eastern Shore
Council Presidents Timothy Bishop
Land Development Council
Katrina Bartos Sales and Marketing Council
Tim Ellis HBAM Remodelers
Thom Marston and Jodi Hawn Maryland Residential Green Building Council Co-Chairs
Board of Directors Tim Nichols Robb Aumiller Mark Bennett Steve Breeden Ron Carstens Patrick Costello Sean Davis Brenda Desjardins Tim Ellis, LEED, AP, CPE, CGR, CGP Joe Gregory
Frank Hertsch Cindy Huntzberry Steve James Donald Lynch Jr., CGR, CAPS Sandy Marenberg James Mathias Michael McCann John Meade Tim Morris Dan Murtaugh Jeff Ott
Alternate Directors Jeff Aleshire Lou Baker Mark Giganti Marka Guindon Jay Hergenroeder
Joe Hikel Tim Naughton Dennis O’Neil Cindy Plackmeyer Leslie Rosenthal
Ex Officio Members Jack Orrick Howard Perlow Chris Rachuba 4
MID-ATLANTIC BUILDER september/october 2013 www.homebuilders.org
How will you meet 2012 Energy Code requirements?
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Contact Eddy Esplund, Tremco Barrier Solutions, to schedule a no-obligation “Energy Trade-Off Analysis” on your most popular home models. Learn how the Enviro-Dri WRB can reduce air changes, reduce your construction costs, and help you meet the 2012 IECC code. EDDY ESPLUND, CSI-CDT AT 609.206.7624 EESPLUND@TREMCOINC.COM
WWW.ENVIRO-DRI.COM © 2012, Tremco Barrier Solutions Inc. Enviro-Dri® is a registared mark of Tremco Barrier Solutions, Inc.
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september/october 2013 MID-ATLANTIC BUILDER
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Events
CALL 410-265-7400 for information on registration for our events or visit www.homebuilders.org.
ICON Awards
HBAM Membership Drive Thursday, September 26, 2013 HBAM will be holding a membership drive in September and we NEED YOU! Sign up now to be part of a team or donate a product or service to be used as an incentive and grow your business.
Governor’s Housing Conference Friday, September 27, 2013 Baltimore Hilton The conference provides an educational opportunity for leaders in the housing and community development fields. The annual Governor’s Housing Conference is the largest and most comprehensive affordable housing forum in the state, convening housing advocates, community development leaders, housing authorities, homebuilders, developers, lenders and legislators who come together to discuss solutions and opportunities for affordable homeownership and rental housing in Maryland
Chef Night Wednesday, October 16, 2013 Martin’s West Donate-Cook-Attend-Bid-Sponsor Over 400 HBAM members attend this exciting and relaxing event which includes lively entertainment, fabulous culinary delights created by our Builder and Remodeler members and a live and silent auction. A portion of the proceeds will benefit the Building Industries Foundation. This year HBAM’s chef night will be a Fan Fest. Come on out representing your favorite teams. Our chefs will be in full swing serving their favorite foods from tailgates!
MNCBIA and HBAM Joint Environmental Conference Thursday, October 10, 2013 Ten Oaks Ballroom Join HBAM, MNCBIA and other builders and associates from around the state for an update on Offsets and other Environmental Issues. Special guests include, David Costello, Deputy Secy., MD. Dept. of the Environment, Dusty Rood, Senior Principal, Rodgers Consulting, Inc. and Shannon Moore, Manager, Office of Sustainability and Environmental Resources, Frederick County.
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HBAM Remodelers Awards of Excellence Thursday, November 7, 2013 Towson Golf and Country Club The Remodelers Council of the Home Builders Association of Maryland, the HBAM Remodelers, will announce the winners of its 23rd annual Remodeling Award of Excellence competition. This program serves to recognize excellence in remodeling design and craftsmanship, to create a greater public interest in the remodeling industry and to recognize outstanding contributions by individuals and companies in the remodeling industry.
Thursday, November 14, 2013 Fretz Corporation The Home Builders Association of Maryland will honor the ICONS of the industry at this annual celebration. Join the association as we honor the following ICONS: Richard Moore – Lifetime Achievement Award-Builder Michael Klein – Lifetime Achievement-Associate Mark Bennett – Builder of the Year Scott Barhight – Associate of the Year
Real Estate and Construction Forecast Conference Wednesday, December 4, 2014 Doubletree Columbia Join local, regional and national experts as we look at the Real Estate and Construction Forecast for 2014. This conference serves to provide an outlook for the Homebuilding industry for the following year. A team of experts are compiled to bring you current and up to date information, outlooks and trends.
Save the Date for Builder Mart 2014! March 19, 2014 www.buildermart.org
MID-ATLANTIC BUILDER september/october 2013 www.homebuilders.org
We’re shedding new on private outdoor lighting.
light
BGE’s Private Outdoor Lighting is ideal for any residential or commercial area where additional security or aesthetic appeal is desired. BGE offers a variety of lighting options to illuminate and beautify your property from dusk to dawn. Plus, we handle all aspects of installation and maintenance, and reasonable monthly fees can be conveniently billed to your existing BGE account. For a comprehensive range of BGE’s Private Outdoor Lighting services, visit us online at BGE.COM/OUTDOORLIGHTING or call 410.470.9446.
ENERGY WORKS SMARTER www.homebuilders.org
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Relevant Development Excellence in Community Development Awards Announced
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MID-ATLANTIC BUILDER september/october 2013 www.homebuilders.org
HBAM LDC Awards Project of the Year The Trails at Beech Creek, Clark Turner Companies
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he Trails at Beech Creek began as a 300 acre golf course and the current plan includes 373 single family homes and 395 town homes and villas. There are 166 acres that have been preserved as open space and 94 acres of Natural Resource District of which only .09 acres have permanent wetland impact. The community features 13 acres of active open space including 3.5 miles of walking trails that has been incorporated into the existing golf course cart paths. The golf course clubhouse (19th hole) is currently being renovated into an HOA clubhouse. Amenities currently available to residents include pool and splash pad, group exercise area and group meeting area. Future amenities include wine room, game room, yoga room, fitness center with exercise equipment and tennis court. To maintain the golf course feel, the existing bag drop has been converted into a covered bike rack and the mailbox structures have been designed to match golf course architecture. The community utilized existing golf course wet ponds in the design and operation of the community storm water management system. The original farm spring house located on the property was preserved and is accessible from community walking trails. The Trails at Beech Creek faced some development hurdles. For example, a covered entry feature had to be submitted as a bridge for permitting purposes. In addition, five off-site state intersections required improvement and that included significant ROW acquisitions. Three of the intersections had overlapping responsibilities with other developers of neighboring projects resulting in Harford County’s first Road Club. The project was in continuous development from March 2010 through June 2013.
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MID-ATLANTIC BUILDER september/october 2013 www.homebuilders.org
Reservoir Ridge, Humphrey Development
Reservoir Ridge is a 254 residence, back-to-back townhouse community located in Eldersburg, Maryland. Originally a 20 acre outparcel within a larger planned use development approved in the 1970s, the developers achieved unappealable site plan approval for the project in late 2006 after an 11 year entitlement process. This process included four rejected site plans, four zoning board appeals and a rezoning that was later overturned by the Court of Special Appeals. The long lead time of the entitlement caused further complications ranging from the retrofitting of plans into modern code compliance to the ability to provide clean title for the site. Today the project stands over 50 percent complete and has become one of South Carroll County’s most successful communities.
Odenton Gateway, Elm Street Development
Odenton Gateway is an 18-acre mixed-use development situated at the eastern gateway to the Odenton Town Center in Odenton, Maryland. The project is an assemblage of three separate parcels at the corner of Sappington Station Road and Route 175. Elm Street Development controlled approximately 12 acres and the balance was owned by the Baldwin family. Elm Street and the Baldwin family forged an agreement to seek joint approvals. Elm Street managed the entitlement process and developed the site. Reliable Contracting served as the general contractor. Odenton Gateway demonstrates its sustainability and protects the environment through the use of advanced stormwater management BMP’s (bioretention cells, porous concrete, Coastal Plains Outfall, advanced sand filter). In addition, the apartments have been certified as a Green Certified community by the National Association of Home Builders. This was the first apartment community in the State of Maryland to earn this designation. The project is located within the Odenton Town Center BRAC Zone and the Odenton Growth Management Area and is located one mile from the Odenton MARC Station; the most heavily utilized station on the Penn line. This area has long been designated for growth due to its proximity to major growth centers within Anne Arundel County. 12
MID-ATLANTIC BUILDER september/october 2013 www.homebuilders.org
Uptown at Murray Hill is an easy walk to Annapolis City Dock and a 10-minute drive to major commuting routes MD Rt. 50 and I-97. It is in the charming Murray Hill residential neighborhood - steps from the chic Park Place center, and just minutes to all of the historic sites, parks and recreation of Annapolis. Six different rowhome styles and three single family styles are available, ranging from two to five bedrooms, all with open floor plans, large master suites, spacious kitchens and baths with luxury finishes and private garages. A community courtyard and optional rooftop terraces will be key features to the indoor-outdoor lifestyle offered in this resort-like water town community. Designed for ENERGY STAR certification, homes will use less energy, water and natural resources—creating less waste, reducing greenhouse gas emissions and providing lower energy costs for homeowners.
Uptown at Murray Hill, Bozzuto Homes
www.homebuilders.org
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MID-ATLANTIC BUILDER september/october 2013 www.homebuilders.org
Orchard Meadows at North Ridge, Orchard Development
Orchard Meadows at North Ridge is a Market Rate, Class “A” rental home community in Ellicott City, Maryland. There are 144 – one and two bedroom apartment homes within 4 buildings situated on ten prime acres. Each building is 4 stories with elevators and a controlled access entry system. The site features include a clubhouse with state-of-the-art fitness room, yoga room, coffee bar, lounge and pool. Orchard Meadows is a NGBS Silver Certification Award Winner. The challenging site includes an 80’ wide major connector road that was built for Howard County. The public road bisected the site which made the site design extremely challenging. The architect and engineer met the challenge by locating the buildings close to the road and screening the parking behind the buildings. This helped to create an urban feel and a very walkable community that ties into the surrounding neighborhood and commercial amenities. The design team also created traffic calming devices along the road to slow traffic and improve pedestrian safety. Howard County Government has wanted this North Ridge tie-in for over 20 years and Orchard Development worked closely with county administration and planning & zoning to complete the road. The tight site was also very challenging in terms of storm water management. We went above and beyond all regulations by building 13 Bio-Retention Facilities, rain gardens, enhanced landscaping and 250 pervious parking spaces. The community boasts other environmentally friendly features and amenities such as a resident bike loaner program as well as a dedicated dog park. Orchard Meadows is a “Green” community and is proud to achieve a superior rating for; energy efficiency, water conservation, resource management, indoor environmental quality, site development and building operation and maintenance. All apartment homes are 100 percent leased and occupied within 8 months of construction turnover.
Rising Star David Murphy, Elm Street Development Dave Murphy received his BS in Mechanical Engineering from the University of Michigan and his MBA from the University of North Carolina. He started working with Elm Street Development in 2003, and was promoted to Vice President in 2005. He is currently responsible for Elm Street’s development activities in the Baltimore region, and has been a past president of the Land Development Council as well as the Baltimore County Chapter of the Home Builders Association of Maryland. Dave has contributed time, effort, and leadership to a lot of the successes of both groups. He has worked on the judges panel for the Land Development Council awards committee and has been an important leader for HBAM in numerous, meetings and discussions with Baltimore County, particularly the recent success in reducing the payment-in-lieu fees for Open Space.
Contractor of the Year Bill McGrew, HTI Contracting Prior to becoming the owner and operator of Highland Turf, Inc. in 1985; Bill McGrew worked for the company providing seeding and stabilization services. After taking over the company, Bill grew HTI into a full service land development company, providing full earthwork services including trucking; acquiring utility crew expertise for the installation of water, sewer and storm drains, building a paving company and maintaining the seeding and stabilization services. Bill grew the company while maintaining a consistent work load of both Private and Public Sector work, including working on multiple sections within Columbia, commercial and residential projects within Central Maryland and more recently working on the Inter-County Connector.
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Consultant of the Year Howard Perlow, Residential Title Howard Perlow has worked in this industry for over 35 years and is considered to be an expert in the field. His highly specialized expertise in the land development process allows him to be a valuable asset to many of the region’s largest development companies. He has the unique ability to work out the most complex title and land development issues. Howard helps clients in the entire metropolitan area with access to the zoning and permit offices to help expedite the development process. Howard has the ability to not only deal with title issues, but with the financing, acquisitions and the structuring of the deal. Howard is constantly involved in government, charity and civic activities and events that help keep our community knowledgeable on all the new laws and legislative issues that affect our industry. Most recently, Howard worked on the IODT bill to help save the developers on recordation fees and transfer taxes and costs. He helps with right of ways, restrictions and covenants. Howard also has a policy of running title abstracts and searches early in the process, that provides the developer enough time if anything comes up to resolve the problem. Howard is always looking for leads between developers and builders to acquire lots. He has helped sell over 90 parcels of land in his 35 years of working in the industry.
Developer of the Year Chickie Grayson, Enterprise Homes Chickie has more than 30 years of experience in the development of housing for people from all walks of life and is truly a leader and mentor for her seventeen Enterprise Homes staff members. A native of Baltimore, Maryland, Chickie is a graduate of the University of Maryland, where she earned her bachelor’s degree and master’s degree in urban affairs. While earning her master’s degree, she began to actively explore her interest in improving homes – rehabilitating homes on her own. That interest and passion led her to Enterprise Homes in 1987. Since that time, Chickie and Enterprise Homes have established an unparalleled reputation for building high-quality, affordable, workforce and market-rate rental and for-sale homes. She currently serves on the Federal Home Loan Bank of Atlanta Advisory Council, the Integral Urban New Markets Advisory Board and the Senior Village Advisory Task Force of Comprehensive Housing Assistance, Inc. (“CHAI”), and on the boards of the Maryland Affordable Housing Coalition and the Parks and People Foundation. Chickie’s passion is to create a better quality of life for people. “We’re in the bricks, mortar and people business, but more than building houses, we’re building homes.” It is with this passion that she works day in and day out to provide quality, affordable housing for so many across the region. A seasoned developer, Chickie brings an experienced perspective and creativity to the development process. Under her leadership, the past three decades have seen Enterprise Homes’ business philosophy evolve and portfolio grow. Chickie, however, continues to look forward to helping future tenants and homebuyers achieve their dreams.
MID-ATLANTIC BUILDER september/october 2013 www.homebuilders.org
Lifetime Achievement Award Richard Moore Dick began selling real estate in 1964 for Gaylord Brooks Realty Company and, after Mr. Brooks’ death, he purchased the company. In 1965, he developed his first property, which was a small farm in Harford County on which he created 7 lots. Dick continued to develop “up country” properties and developed a niche for creating distinctive communities that reflected the character of the neighborhoods. Much of this was due to his focus on architectural standards and good land planning. For over 50 years, Dick developed more than 65 communities consisting of over 1,800 lots. These ranged from 5 lot gated communities to 130 home golf course communities. In the late 1970’s, Dick developed Patchwork Farms in Monkton, which was the first unofficial cluster subdivision in Baltimore County. Although very difficult to accomplish, he was successful in convincing the County to allow the 20 lots permitted on the 100-acre farm to be clustered together on 1-acre lots, preserving the balance of the agricultural land. 25 years later he was instrumental in creating the current cluster legislation under the RC-4 zoning designation. Dick served on the board of the Greater Baltimore Board of Realtors and was president of the Multiple Listing Service. He served on the Board of Trustees for St. Paul’s School and was instrumental in creating a master plan for their campus expansion, including donating a portion of property which is now used for faculty housing. Dick was a trustee for St. James Academy and served as Chairman of the Board for eight years. During that time he was instrumental in constructing a new gym, science center and middle school expansion. He has supported many other charitable organizations including Ladew Gardens and Paul’s Place. Dick retired in 2008. A big thank you to all our of LDC awards of excellence sponsors! Open Bar Sponsor Clark Turner Development
Platinum Sponsors Gray & Son Morris & Ritchie Associates Residential Title & Escrow
Gold Sponsors Gaines & Company NVR PeoplesBank Security Development Stewart Title Company
Silver Sponsors Development Design Consultants Orchard Development Whiteford, Taylor & Preston
Partner Of LDC Mackenzie Communities
HAVE YOU SIGNED UP FOR YOUR HBAM LICENSE PLATE YET? Get your own HBAM personalized license plate from the MVA. Call HBAM today at 410-265-7400 for availability.
Get a front row parking spot at Builder Mart with an HBAM license plate.
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ILDERS HOMEBnUof Maryland tio Associa
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MID-ATLANTIC BUILDER september/october 2013 www.homebuilders.org
BY JOHN KING
D
id you know that the Home Builders Association of Maryland is starting a PAL Program for new members? PAL stands for a Personal Liaison Program and it will be a critical tool for rapidly growing our association in a progressive manner and in improving retention. When new members attend HBAM events, it is imperative for HBAM mentors to assist them in networking and explain the Recently, I had the opportunity to experience a first PAL meeting between an HBAM mentor and a new member. It was exciting to observe the new member’s energy and eagerness to learn about HBAM, as well as aspects of the industry. I felt tremendous pride watching HBAM’s mentor demonstrate excellent listening skills, smooth patience, seasoned advice, astute professionalism and superb organization. HBAM’s new member was so appreciative of everything he experienced; and I could tell, mentor received great satisfaction from the opportunity to help. It was a textbook moment! Are you a new member in need of an HBAM PAL (Mentor)? Are you an experienced HBAM Member who would like to share your professionalism and leadership experiences with a new HBAM member? If you answered “Yes” to either question, please contact HBAM’s Felicia Fleming at your earliest convenience (410-265-7400 ext 115). What is the PAL program?
Purpose The purpose of HBAM’s voluntary PAL Program is to help new HBAM members become more comfortable in their new opportunity in a shorter period of time. In a new group, it helps to have a friendly person (mentor) with whom you can associate at meetings and within the industry. An HBAM PAL (mentor) provides a one-point access for questions about HBAM, procedures, policies, events, as well as a source of support, advice and encouragement for the new member. The goal of the PAL Program is to help new members feel at home, continue their HBAM membership and help them to progressively contribute their talents for many years to come.
Benefits of HBAM’s PAL Program • Provides a leadership development opportunity for existing HBAM members by becoming a Buddy and mentoring new HBAM members. • A llows the new member to learn about HBAM and the industry in a more progressive manner. • Provides an opportunity for mentors to share their accumulated knowledge and experience.
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What a New HBAM Member Can Expect From Their PAL (mentor) • A ssistance in understanding the culture of HBAM, enjoying events, leveraging networking opportunities and enhancing professionalism. • Provide information. If your PAL (mentor) is unable to get it for you, they’ll know who to go to for an appropriate answer. • A ssistance in building networks and insight into how to make new members more productive and effective.
Guidelines • P urpose: The PAL Program should be used to assist the new member in finding out what’s “normal” for the organization. In addition, it is a learning and development opportunity for all participants. • Management support: The PAL Program will be supported by HBAM leadership.
Role of the PAL (mentor) • Contact the new member as soon as possible. • Introduce the new Member to other HBAM members, as well as to other key people in the industry. • Explain HBAM policies and procedures. Ensure the employee knows when HBAM events are scheduled. Explain who to contact for different issues. • A nswer any question the new member may have. •A ssist the new member with sorting out the organization’s acronyms. • Be a leader in organizing effective, regular meetings with the new member. • Most importantly, give encouragement.
Tips for Mentors • Be patient and positive. Don’t try to cover everything right away. • Listening is very important (sometimes more important than giving advice). • Don’t try to force a relationship; it takes time. • Look for a preferred communication style from the new member. • Don’t be judgmental.
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Role of the New Member • A llow your PAL (mentor) to share his/her knowledge of what’s “normal” in the organization and develop a better understanding of the culture. • Meet regularly with your PAL and establish ground rules on the best way to communicate (face to face, text message, email, etc.). • Prepare meaningful questions to present your Buddy. • Accept constructive recommendations.
Buddy Preferred Selection Criteria: An Existing HBAM Member who: • Is committed to his or her HBAM role • Demonstrates high performance and proven success • Has patience and good communication skills • Is willing to help • Is an industry peer to the new member. • Is committed to the mission, vision, and values of HBAM • Is proud of HBAM and its important role within the industry
Meetings with New Members • Provide general advice, guidance and encouragement. • Discuss any issues the new member may have. • Ensure the new member is feeling productive and effective in his or her role within HBAM. • Explain the culture of the organization and how to quickly make valuable contributions.
Sample Questions for Discussion Purposes • Do you feel welcomed by everyone in HBAM? • Are you beginning to feel “at home” in HBAM? • Are you receiving enough support and encouragement? • Do you feel you are moving toward being more productive and efficient in your HBAM role? • Are you comfortable networking? • Have you met most of HBAM’s members? • How can I best assist you?
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Tips • Be supportive of the organization’s leaders and members at all times. • Be proactive in your planning, confirmations, follow up and communications. • Discourage gossip and speculation.
PAL E-mail or Phone Call • Contact new members by phone or e-mail prior to their arrival at their first HBAM event. • Introduce yourself and warmly welcome the new member to HBAM. • Inform the new member you look forward to meeting him or her. You will make introductions to other HBAM members during events. • Arrange to meet at a designated time and place just prior to the new member’s first HBAM event. • End the conversation by giving your phone number and e-mail address, in the event the new member has questions before his or her first HBAM event.
E-mail Announcing New Member (to HBAM members, from Mentor) I am delighted to announce (new member’s name) is joining HBAM. (Insert a brief history on the new member). Please do everything you can to make him/her feel welcome! I am honored to be assigned the role of “PAL” to (new member’s name). I hope you will join me in encouraging (new member’s name) to become a progressively productive member of our association for many years to come. Please make a point of welcoming (new member’s name) to HBAM during his/her first event on (date). (Name of Mentor) n
John King is with Sterling Mirror and Glass and can be reached at 443-208-0280 or john@sterlingmirror.com.
MID-ATLANTIC BUILDER september/october 2013 www.homebuilders.org
Insulating Your Business for Success in Today’s Marketplace The Convergence of the Four C’s: Comfort, Cost Efficiency, Code Standards and Consciousness
By Richard Molloy, Tricon Construction, Inc.
Advertorial The collective U.S. housing industry is still feeling the aftershocks from the devastating impact of the housing crash in 2008 and resulting recession. With the worst downturn since the 1930s now firmly behind us, the current residential construction boom is ushering in a new set of marketplace dynamics and challenges– as well as rich opportunities. There is a convergence of factors driving today’s housing industry that can be leveraged to help distinguish your work as a builder from the competition and ultimately resonate with future home buyers. The growing marketplace concentration on comfort, cost efficiency, code standards and (environmental) consciousness is creating renewed interest in building energy efficient, high-performance homes.
With the growing focus on the Four C’s, future home buyers and existing homeowners are beginning to pay more attention to insulation, air sealing and moisture management solutions. As a result, it is equally important that builders remain competitive in this space by staying current on the latest advancements, research and product innovations. Fortunately, you don’t have to do it alone.
Likely attributed in part to the rising energy costs, home buyers are now primed and ready to learn how they can increase the performance, comfort, energy efficiency of their home. These home buyers are also increasingly expressing an interest in exceeding – rather than simply meeting – energy efficient building codes.
Understandably, projected increases in housing starts and the new home construction boom makes it difficult to focus on anything but getting through the day and delivering the jobs on time. To help maximize your job site efficiency and bring the strongest solutions to your customers , local Certified Energy Expert® Professionals (CEEs), supported by Owens Corning, can be a valuable tool in your arsenal. These trained energy specialists can help your business stay at the forefront of the latest building science solutions in insulation, air sealing and moisture management.
This creates a unique opportunity for builders to engage these savvy home buyers in a more sophisticated dialogue that will elevate their understanding of the important role the building envelope plays in achieving a high-performance home that will deliver against each of the Four Cs. While it is unlikely we’ll hear a home buyer say, “I want to live in an uncomfortable home with drafts and unpredictable temperature control” or “I like wasting energy and having 30 percent higher energy costs on my heating and cooling,” homeowners have historically looked past the “guts” of the home to spend a majority of their time on aesthetic decisions during the building process.
CEE professionals also bring a sophisticated level of expertise addressing the complexity behind air movement and the interaction of moisture, heat and cold within a home’s walls, roof and interior space. Since we live in the “guts” of the home, we also are skilled in all types of installation techniques for maximizing energy efficiency and acoustics. From the latest local building codes and standards, quality assurance and Energy Star/DOE® programs, CEE Professionals can be a resource to your team to help you differentiate yourself in the market.
To connect with a local CEE in your region, please contact Richard Molloy at www.triconconstruction.com Richard Molloy is an Owens Corning™ Certified Energy Expert® professional based out of Upper Marlboro, MD. Certified Energy Expert® professionals can be found in 27 states and across 60 markets. To locate a CEE or learn more about the Owens Corning™ Certified Energy Expert® program, visit http://www.owenscorning.com. Copyright© 2013 Owens Corning. All Rights Reserved.
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MID-ATLANTIC BUILDER september/october 2013 www.homebuilders.org
Woodn’t You Know It Composite decking is here to stay. by Brent Gwatney
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f a tree falls in the forest and no one is there to haul it to a sawmill, what will builders use for constructing decks? Although sawn lumber still makes-up the largest share of the U.S. decking market, builders are increasingly choosing alternative materials. For example, demand for wood-plastic composite decking will grow 11 percent every year through 2016, compared to only 1 percent annual growth for wood, research says.
The decking market is rebounding from the recession, which is great news for builders. While wood will remain popular with many homeowners, positioning for growth requires a closer look at composites.
What’s driving the growth? We’ve all seen the predictions over the past several years saying “this is the year housing will rebound,” but it finally looks like 2013 is it. “Nearly every measure of housing market strength – sales, starts, prices, permits and builder confidence – has been trending up in recent months and we expect to see gradual but steady growth along these lines,” says National Association of Home Builders Chief Economist, David Crowe. Likewise, NAHB forecasts steady growth in residential remodeling this year and next. Harvard University’s Joint Center for Housing Studies also sees several reasons for remodeling optimism now and for the longer term. Drivers of growing remodeling demand include: •R etiring baby boomers want more “aging-in-place” retrofits •M ore distressed properties needing refurbishment are coming back on the market •T he millennial / echo boom generation will enter its peak remodeling years in the coming decade Coupled with the improving housing and remodeling markets, home owners are also increasingly interested in larger decks, as well as railings and accessories to divide decks into dining and entertaining spaces, the Freedonia Group notes. So, more and larger decks mean more work for builders. While the rising tide of demand floats all boats for various decking material types, composites are more buoyant in the market than wood for several reasons: higher performance, green attributes and enhanced aesthetics.
Higher Performance Builders often select wood-plastic composites for their long-term durability. Because a builder’s reputation is crucial for homeowner referrals, the fact that composites can hold up and look good year after year in all climates is a strong selling point. Manufacturers continue to pioneer new technologies for high-performance composite decking, so check with local dealers for the latest options.
www.homebuilders.org
Green Attributes Homeowners who are concerned about depletion of natural resources are looking for building products that help them reduce their own impact on the environment. Composites with recycled content give them a simple way to feel good about helping keep waste plastics and wood out of landfills. Some composite decking is almost entirely made of recycled content.
Enhanced Aesthetics As much as homeowners want to feel good about being green, if their decking doesn’t look great, they usually don’t care about its environmental story. Composite manufacturers have focused on making their decking and railing attractive – unlike the plasticlooking vinyl decking of years past. Dealers can now offer builders composite boards with realistic embossed grain and color streaking with the beauty of exotic hardwood species.
Selling the decking project Many homeowners still are not familiar with composite decking, so educating them on the advantages can be a good way to set your deck building business apart from competitors who only offer wood. Ask the manufacturer or dealer for composite board samples, which can go a long way in showing homeowners the variety of composite styles and colors available, and that the materials are sturdy and durable. Also, taking the homeowner to see demonstration decks at your dealer’s yard, or to other decks you’ve built helps make composites’ performance and beauty tangible to them. n
Brent Gwatney is the Senior Vice President of Sales and Marketing for MoistureShield® composite decking, manufactured by Advanced Environmental Recycling Technologies. Gwatney is a 30-year building industry veteran and is a board member of the North American Deck and Railing Association. For more information, visit www.moistureshield.com or call 866-729-2378.
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Architects Have More Options than Ever in Contracting for Solar Installations Streamline the process by using your own engineer. By Steve Schwerd
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rchitects who have traditionally had little choice but to work with turn-key solar companies on solar photovoltaic installations should take a fresh look at the market. There are new opportunities to complete these projects using specialized solar engineering firms that have worked so well with architects in the past – and the result is often better – not only for the architects, but for their clients as well.
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MID-ATLANTIC BUILDER september/october 2013 www.homebuilders.org
Up until now, most solar photovoltaic installations associated with providing renewable energy supply for buildings have followed a design-build approach. In this model, the end user or building owner contracts to a turn-key solar develper / EPC (Engineering, Procurement and Construction) contractor. This requires the bid, detailed design and construction to be split from the rest of the building construction and contract, although architects can sometimes make allowances for rooftop, parking lot or field area for the solar panels and equipment. This approach certainly remains a viable option, but many architects would prefer to contract these functions directly to their engineering firm. Such an approach allows for greater control of the project, smoother implementation and often better aesthetic integration of solar panels to the larger project. It also can give architects the opportunity to secure additional services to cover the management of the engineering function.
www.homebuilders.org
Today, a few select firms in the engineering field have advanced tremendously on projects involving solar installations, and are more than capable of handling such projects in direct coordination with architectural firms. By incorporating the full PV system and details starting at the concept and schematic design phase of the architecture and engineering building plans, you can maximize the opportunity to reduce cost and improve system performance, while speeding up installation completion to better coincide with building completion. On new construction, building additions or renovations, you can optimize PV panel location and minimize obstructions that cause discontinuity and shading. The result is enhanced system performance and significant cost savings – including lower cost per installed kilowatt ($/KW) and greater efficiency (kWh produced/KW installed).
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Following is an example of recommendations made for the integration at the AE design phase for a rooftop installation: • P rovide a large open and continuous area on the south facing flat rooftops not impacted by adjacent trees, buildings, utility poles, etc. • Design roof structure to allow for adequate capacity to support a ballasted, tilted racking system. • Specify a roof type that is most favorable for the PV system installation and performance. • Do not locate rooftop HVAC units in a more fitting area. Even consider an alternate HVAC design solution. • Minimize / eliminate rooftop exhaust fans, vent pipes, roof drains, etc. Consider floor plan layouts that help to achieve this goal. • Design electrical distribution to provide for ease of electrical interconnection, net metering, PV service disconnects and more. • P rovide preferred allowance for the PV inverters such that they are located close to the solar arrays in order to reduce the DC wiring, facilitate installation, and minimize impacts on the surrounding. • D esign routing paths of conduits and wiring – internal and external – to allow for improved aesthetics plus consideration of flexibility for future roof and building modifications.
From a financial perspective, the larger solar photovoltaic modules and racking systems are almost always a superior option for renewable energy for buildings, as compared to thin film solar and building integrated PV. Unlike the past, however, this option allows architects to continue driving the process properly for their clients, especially as the evolution of solar PV installations continues to move towards the traditional design-bid-build model with the continuous development of the design professionals. Architects who did not think the traditional design-bid-build model was an option for solar installations should speak a qualified solar engineering/consulting firm. The power to drive solar projects is once again in the architects’ hands. n
Steve Schwerd is a partner at KMB Design Group and leads the facilities and energy division as vice president. Schwerd is nationally recognized in the renewable energy field and is a LEED Accredited Professional. He can be reached at sschwerd@kmbcompanies.com
2013 HBAM Membership Drive You are the Link to help us Build our Future Call Felicia at 410-265-7400, ext. 115 Form a team to work together to call on prospective new members and talk about the benefits of membership in HBAM! The teams and members will compete for prizes and the honor of knowing that they have shared their association with others in the industry and helped make HBAM better. September 24, 2013 – Rally September 26, 2013 – Telethon www.homebuilders.org/page/memberdrive/ Send the Message of Membership • Increase our strength in Annapolis • Grow our Networking • Cultivate Relationships • Raise Professional Awareness
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MID-ATLANTIC BUILDER september/october 2013 www.homebuilders.org
Mid-Atlantic
Remodeler A supplement to Mid-Atlantic Builder
HBAM Remodelers Award of Excellence Bathroom Remodel $45.000–$65,000 Robert Kutner Associates, Inc., Schaefer Master Bath
Mid-Atlantic
Remodeler
A supplement to Mid-Atlantic Builder
2013 HBAM Remodelers Tim Ellis, LEED AP, CPE, CGR, CGP President
Board of Directors Guy Caiazzo Taylor Classen Cheryl Crowther Arif Durani Steve Gilman Bill James Danny Kalmus Doug Kelly Jim Long Donald Lynch, Jr. Ryan McGinn
Chris Moline Bob Myers Michael Owings Jennifer Purdy Bill Rauser Joe Smith Gregory Wall Bob Weickgenannt Howard Warfield
PAST Presidents Bill Rauser John Martindale Dave Chmura Michael Owings
Donald F. Lynch, Jr. Guy Caiazzo Taylor Classen Joe Smith
2013 SPONSORs Members do business with members Presenting Members
before&after The homeowners of this master bath were ready to renovate for many reasons including the existing cathedral ceiling, the small shower, the oversized tub step and the low, undersized, vanity cabinets. A decision was made to lower the ceiling by creating a pyramidal form with a continuous 2’ wide bulkhead around the room with recessed lights. The existing marble, vanity and fixtures were removed, making room for the new vanity which includes two work stations and an abundance of storage. A large two person shower was created overlooking a 5’ round soaking tub with views of the wall mounted TV and back yard. The clients now feel they are living in a five star master suite. n
ChesapeakeHome Magazine
IWIF Workers’ Compensation Insurance
Why join HBAM Remodelers? Member Benefits
John H. Myers & Son
Saratoga Insurance
HBAM Remodelers offers many benefits to its members. Remodelers benefit from a variety of educational, mentoring and networking opportunities. In addition, the HBAM Remodeler’s serves to improve the quality of the industry and its members through these programs. By promoting certification programs to consumers, members of the council are sought after for their strong professional and ethical principles.
News & Information T.W. Perry
Versatex Trimboard
Contact Felicia Fleming at 410-265-7400, ext. 115 about 2013 Sponsorship Opportunities
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Ready to Join? www.mdremodelers.org The fee is $65.00 per year. For additional information on the HBAM Remodelers Council, contact Felicia Fleming at felicia@homebuilders.org or 410-265-7400, ext. 115.
National: Members of the Council receive a free subscription to Professional Remodeler magazine. Each issue focuses on practical business insights from the country’s leading remodelers. Members also receive NAHB Renews, a monthly e-newsletter about national news that affects our industry. Regional: Members of the Council receive a free subscription to ChesapeakeHome Magazine and are offered special advertising opportunities designed to help them reach upscale homeowners. Local: The council is featured in each issue of HomeFront, HBAM’s monthly enewsletter to promote its members, programs and events. Mid-Atlantic Remodeler is included in each issue of Mid-Atlantic Builder magazine.
MID-ATLANTIC REMODELER A Supplement to Mid-Atlantic Builder september/october 2013 www.homebuilders.org
president’smessage
events
The Importance of Team Building in a Company Setting
The HBAM Remodelers would like to invite you to join us for in this year’s Remodeling Award of Excellence program.
As a business owner, everyday we look for ways to develop our businesses into more successful companies.
To develop and maintain a successful business, we as business owners must establish highly effective company teams. Teamwork in business is crucial to company success. How can your company optimize collaboration and strengthen the company team for every day business operations? The answer: You have to construct and enforce effective team building activities. A business team that learns to works productively is a business team that succeeds in a company setting. Teamwork is essential to employee creativity in the workplace. Teamwork is also important for fostering healthy work relationships. When a team builds together, a team can accomplish goals quicker and more effectively than teams relying solely on one individual to lead the whole to success. A company’s long-term success cannot depend on one or a handful of individuals because individuals focus on self-accountability and personal gain as a motivation to succeed. Yes, in business there are times where individual focus is necessary. However, the majority of company projects benefit from an effective team strategy and overall collaborative work effort. What happens if you have reluctant workers within a team? The team falls apart.
You can develop a more effective business team by: •S etting clear team goals and roles for
all team players. When workers feel important, they become more motivated to effectively meet end goals. •P romote the team to not micromanage. Let your team know you believe in their capability to accomplish work tasks and accomplish tasks done well. •G ive positive feedback and insight. Motivate team players to ask questions and not overlook each other. •P eak business performance by buildwww.homebuilders.org
ing team trust. A team built on distrust is a team that’s destined to fail. No team can work productively towards goals with an abundance of distrust. By following these rules of thumb, you can develop a cohesive business team that’s willing to self-assess to empower the company. A unified team is the core to business success. Combine individual efforts to the overall team objective and your business team will succeed beyond measure.
Bottom line: Good team success of a company isn’t always dependent on one person. Everyone has to do his or her part. Like a baseball team, business teams require patience, endurance and a clear vision. And just like a baseball team, a business team cannot rely on two all-stars to drive the team to success. The whole team needs to make a good effort to succeed. This good team effort is especially crucial as the economy rebounds. To succeed a company team needs consistency. If there are weak players on the team, you can transform these team players into exceptional team players with additional training and mentoring from stronger employees.
All Award of Excellence winners will be announced at the HBAM Remodeling Awards Ceremony on November 7, 2013. Mark your calendars!
Important Dates November 7, 2013 HBAM Remodelers Award of Excellence Ceremony and Dinner December 10, 2013 General Membership Meeting Would you like to host the next HBAM Remodelers General Membership Meeting? The HBAM Remodelers hosts two general membership meetings per year and we are looking for places to hold them. If you have a showroom or office that you would like to show off and are interested in hosting a meeting please contact felicia@ homebuilders.org for more information and dates.
When teambuilding keep in mind these 3 words: Resources. Accountability. Commitment. Anytime business challenges arise, the team needs to identify resources, accountability and be committed to company success by looking out for each other. Invest in developing the skill sets of your workers today and you’ll instill the mindset/ expectations for great teamwork and company success in your business tomorrows.
Tim Ellis HBAM Remodelers President september/october 2013 MID-ATLANTIC REMODELER A Supplement to Mid-Atlantic Builder
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The Maryland Residential Green Building Council is the state’s first residential green building program to certify local builders, remodelers and developers using the ANSI certified National Green Building Standard. As the premier provider of information and resources related to green buildings, the MRGBC serves as a central hub for consumers going “green”. The MRGBC educates decision makers on the latest green building principals, trends and technologies, advocates before local elected officials for increased incentives for green buildings, and promotes “green” products through extensive marketing, sales training and special events for consumers. Join the council today by visiting www.GreenHomeBuilder.org
Offsets Will Dramatically Impact Housing Industry
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aryland’s Accounting for Growth Policy, currently being developed, will have profound implications for all professionals and businesses involved in the development and housing industry. This new policy seeks to require developers to “offset” both pre and post construction pollution loads by purchasing credits for best management practices that reduce non-point source pollution offsite, such as on a farm or forest.
MSBA Supports an Offset Program that includes the following Critical Issues • A baseline based on the pre-development and post-development load that reduces parcel load to the 2025 TMDL requirements • A Fee in Lieu option that is permanent, by right for developers, and set at a reasonable, equitable cost for at least 3 years until the trading market becomes viable • A transition provision that protects development projects currently in the pipeline that have significant financial investment
Inequity of the Forest Baseline Offset Requirement 12 10 8 6 4
Other Important Elements of the Program Should Include
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• The ability to minimize the need for offsets by maximizing best management Stormwater and wastewater practices • A Statewide Trading Geography that allows developers to purchase certified credits anywhere in the state • A Trading program that allows for aggregators to create a portfolio of credits that include both permanent and annual practices • The establishment of an Advisory Group to monitor the implementation of the program and periodic audits of the use of fee in lieu funds
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MSBA Will Oppose any Policy that Includes • A baseline that forces developers to clean up preexisting pollution which is unrelated to the new development or beyond the 2025 Bay goals. • A fee in lieu rate that is excessive and burdensome on development • New regulations without adequate grandfathering for existing projects
www.homebuilders.org
Pre-development Loading Rate Pervious Lands 10.78 lbs./acre
Current State Stormwater Regulations Post-development Loading Rate 3-5 lbs./acre
MDE’s Forest Baseline Post- development Net Loading Rate 3lbs./acre
EPA Mandated Load Reduction 25% 8.09 lbs/acre
The Offset Regulation Must • Include a clear and predictable implementation process within the current development approval process • Provide a compliance mechanism through a fee in lieu and a viable trading program as options for all types of development n
Contact Michael Harrison at 410-265-7400 ext. 109 or michael@homebuilders.org for more information.
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Working in the Cloud and On the Job Your data is always within reach.
By Jennifer Hutchison
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rofessionals who work in the service field often have to juggle several tasks at once. Service techs have to make sales presentations and deal with customer service and still fix the problem they were hired for! They’re basically a one-man show that travels from site to site, the ultimate multi-tasker, with so many projects and phone calls to handle that a person can’t help but wonder how most even survive each day! But there’s something out there to help these guys out with their busy life. By working in the cloud, contractors and techs can gain an extra pair of arms to make each day count.
When your techs show up to a job they bring their toolbox and a bulky laptop. Their hands are extremely full! Everything they need to know is on that computer but it takes minutes to load, and they have to be on the phone at the same time talking to the office. If a problem should arise, they may have to leave the site and only return after obtaining the information or ordering the parts that they need. And then what happens if there are errors in that information? They have to head back again to the office. The tech wastes gas and the client wastes time. No one’s a winner here. With your current setup, your service techs might not have access to immediate information because it’s all manual. The situation could be improved with instant access to what is needed: information. With the cloud, your techs would be able to pull out their phones to access job, client and other information instantly, not to mention replacing that bulky laptop with a slim smartphone that’ll fit in any pocket. The smartphone becomes just as important as the wrench in a plumber’s toolbox.
It’ll always be there What happens now when a loyal long-term client calls for a tech to solve a problem? The job is scheduled for the next day and files have to be sorted through at lightening speeds to obtain the right info. Sometimes a different worker is assigned to a job and hasn’t talked to the previous tech. What if the files were lost or thrown away? If your tech is working in the cloud, going back to visit an old job or obtaining a new job from a loyal client isn’t a big deal. They can have previous notes and billing statements available on-demand. All they need to do is open the app on their phone to see every note anyone in the company ever made. The same thing goes for a different tech visiting the same job. Every worker has access to a large amount of data that is available at the click of a button. Managers will also be able to see what projects techs are working on. Never again will your techs say “I wasn’t the technician on that job”, everyone will be able to work together with the same access to information. Best of all, the information is safe, secure and always within reach. Even years later the information will still be there, ready to be used when fixing another sink or repairing more ducts. With cloud providers keeping your information safe, wouldn’t it be a safer, better idea to be working in the cloud?
www.homebuilders.org
When hammer meets nail The cloud is growing, and using it to manage your business means simplifying a complex and slow process. Managers can see directly what projects are being worked on and can participate in helping those projects move smoothly. Say for instance, your company receives a service call from a new client. You make a few notes: “Customer says sink is backed up” or “AC unit won’t turn on”. You then send a truck to visit the client. With the cloud, the tech snaps pictures and enters notes into his mobile device, and you can read everything he does from your own office computer. You instantly notice that it’s a different problem and not the one he seems to suspect. You send him an alert, and together devise a new proposal to hand to your client. You’re able to instantly accept the proposal and email or print it out to put into your client’s hands. You show the client that you’re on the top of your game and secure the job. After they accept, you send out invoices and orders for parts needed for the job. Your consultant puts on his tech hat and gets to work. At every step, you and your tech can stay in touch with each other and the client, just in case more problems arise. There are no nasty surprise additions to the estimate because you have access to all of the information needed to fix the problem. You are able to communicate with your on-site consultant/tech and together you both achieved your goal: to satisfy the customer with fast high-quality service. There’s no doubt that the customer will refer you to friends and family, and will probably call you back in the future if some other problem comes up. n
Jennifer Hutchison is a tech blogger currently based in Los Angeles. She covers a wide range of topics including travel, books, technology, and small businesses. Jennifer is a the Online Marketing Specialist for InfoStreet, makers of SkyDesktop, a free Cloud-based desktop.
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The ‘Right’ Rate of Return for Energy Efficiency Cost effective or priced higher than the market will bear.
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n the housing industry, it has become common practice to use a rate of return to evaluate the cost and benefits of energy efficiency. The National Association of Home Builders policy, for example, classifies a change in building codes as cost effective if it returns at least 10 percent in energy savings the first year.
A more common approach uses a rate of return to discount future energy savings to their present value equivalent. In this context, the rate of return is supposed to capture a home buyer’s time value of money (how a buyer makes tradeoffs when evaluating costs and benefits that will be realized at different times). Often, the current rate on a fixed-rate mortgage is used for this purpose. An important advantage of the one-year rate of return in NAHB’s policy is its simplicity. The present value calculation is more complicated, requiring many assumptions that may be difficult to understand. This makes it relatively easy to introduce unrealistic assumptions and produce unrealistic results. Using the current mortgage rate to discount energy savings is, in fact, one these unrealistic assumptions. In particular, the assumption fails to capture borrowing constraints and doesn’t reflect the way buyers actually evaluate alternatives when deciding which features to include in a new house. Here are three other rates of return that more realistically reflect household decision alternatives: • The 11.5 percent average rate households are paying on their consumer debt (from the Fed’s latest survey of consumer finances), reflecting the value of something they could sacrifice at the margin to invest in an additional home feature. • The 13.2 percent average gross return to owners of rental property (from in a new survey funded by HUD and conducted by the Census Bureau) reflecting what households would have to pay for a home feature if renting rather than buying. • The 14.1 percent average rate of return home buyers say they need to invest in energy efficiency in response to a direct question (in NAHB’s most recent consumer survey). •T he 10 percent return in NAHB’s policy is slightly below these three rates, but is at least in the general neighborhood. The current mortgage rate, on the other hand, is under 4 percent — far too low. Using a rate this low to discount savings on utility bills will classify as cost effective some features that are clearly priced higher than the market will bear.NAHB surveys indicate that most home buyers care about energy efficiency and are very interested in features that will lower utility bills. This helps explain why NAHB has been a strong advocate of voluntary energy efficiency programs for builders and remodelers, and worked to develop a program like the ANSI-approved ICC 700 National Green Building Standard™. But this doesn’t mean that home buyers are willing or able to pay an unbounded amount for future energy savings. So what’s the right rate of return to use when trying to judge the cost effectiveness of a particular energy saving feature? If not somewhere near these 11 percent-plus numbers, it won’t accurately reflect housing market behavior.
www.homebuilders.org
Figure 1: Average interest Rates in Housing Markets
14.1%
13.2% 11.5%
10.0% 3.5%
Return Buyers Need to Invest in Energy Efficiency
Rent/Value on Recently Bought Rental Properties
Rate Households w/ debt are Paying on Debt
Rate Used in NAHB’s Policy on Energy Building Codes
Effective Rate on a 30-year Fixed Rate Mortgage
To be fair, the higher rates described above are primarily gross rates of return that don’t subtract or in any way adjust for maintenance or other ownership costs. Many of the present value methods contain provisions for subtracting costs like these before applying a discount rate. The Department of Energy methodology for evaluating energy codes nets out items such as property taxes and replacement costs, for example. But unless these expenses are substantial enough to produce the equivalent of a double-digit gross return, discounting energy savings by the mortgage interest rate will classify as cost effective some features that are clearly priced higher than the market will bear. This doesn’t mean that buyers are apathetic about energy efficiency or are unwilling to pay for it—consumer surveys provide clear evidence to the contrary—only that they are unwilling to pay as much for it as an armchair analyst might calculate. It should come as little surprise if builders tend to oppose attempts to mandate a particular feature that their customers won’t buy at the current price. Mandating features that provide less return than buyers want creates particular problems at the affordable end of the housing spectrum—where first-time buyers and buyers with modest incomes are likely to be living paycheck to paycheck and therefore need a higher return in exchange for an immediate sacrifice. This is a general problem that arises when more costly construction practices are mandated. n
For more information about this item, please contact John Ritterpusch at 800-368-5242, ext. 8325 or via email at jritterpusch@nahb.org.
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Energy Efficiency Legislation Moves Through the Senate
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s energy efficiency moves to the floor of the U.S. Senate, The National Association of Home Builders is calling on Congress to consider the impact on builders and home buyers across the country. Led by Senators Jeanne Shaheen (D–N.H.) and Rob Portman (R–Ohio), sponsors of the Energy Savings and Industrial Competitiveness Act (S. 761), this bipartisan effort marks the first significant energy legislation since 2007.
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MID-ATLANTIC BUILDER september/october 2013 www.homebuilders.org
Possible amendments to this bill may present many opportunities both for builders and consumers. “We hope the amendments will both promote better technology and market competitiveness,” NAHB’s Green Building Chair Matt Belcher said. “It needs to help level the playing field financially for builders and remodelers who are doing the work on energy efficiency.” While progress in efficiency promises significant benefits, proposed regulations are cause for concern for many builders. “If the final legislation is too restrictive or prescriptive it may actually slow advances in technology and hurt the market,” Belcher said. Increased energy codes, for example, may lead to hikes in new construction costs, thus pushing families into older homes that use considerably more energy. “Hopefully instead this will create a better situation for educating people on efficiency in the business,” Belcher said, “like getting realtors, appraisers, lenders, and buyers more information on efficiency.” As the bill is debated in the Senate, expect negotiations to continue to evolve centering on some key issues important to builders. The major topics are expected to include:
Reform of Green Building Rating Systems As it stands now, LEED certification is the only green rating system recommended by the General Services Administration, the “nation’s landlord”. NAHB calls for legislation to allow competing rating systems to be considered so builders have more choices. This will help promote market competitiveness and will shift to more consensus-driven ratings systems like the ICC 700 National Green Building Standard, the only residential rating system approved by the American National Standards Institute.
Lending and Appraisal Considerations for Efficiency Value The growing market for green homes and remodeling has resulted in significant utility bill savings for many home owners. Yet these savings are not always considered when mortgage lenders evaluate potential buyers and when appraisers estimate a home’s value. The Sensible Accounting to Add Value Act, known as the SAVE Act (S.1106), proposes to change these practices and allow energyefficient homes to stay competitive in the market. Under this bill, when buyers offer an energy efficiency report to federal mortgage agencies the lender must consider energy savings when assessing a buyer’s financial eligibility to buy a home. Lenders will be required to include expected energy savings as a regular expense in eligibility tests like a debt-to-income test and must consider those savings when comparing mortgage amounts to home value. Appraisers will also gain access to efficiency reports allowing them to account for energy savings in the appraised value of a home.
www.homebuilders.org
Consumer Education on Efficiency This legislation aims to incentivize residents to conserve more energy. While a building may be designed and constructed to be energy efficient, total energy use is also significantly dependent on occupant behavior. This proposal would create a Tenant Star program to give residents in multifamily and commercial properties the option of receiving an efficiency rating to reflect energy use in their homes, similar to Energy Star ratings used by builders. These measures should allow for tenants and owners to work together for reduced energy costs and raise awareness on efficiency issues for buyers.
Relief from Lead Paint Regulations Several amendments are expected to be introduced to make muchneeded improvements to the Environmental Protection Agency’s Lead Renovation, Repair and Painting Rule (LRRP). Senator Inhofe (R-Okla.) will likely introduce an amendment that mirrors The Lead Exposure Reduction Amendments Act, he proposed earlier this year. This amendment would reinstate the opt-out provision to allow households without small children or pregnant women to decide whether to require LRRP compliance. In addition, the amendment would suspend the rule if the EPA cannot approve one or more commercially available test kits that meet the regulation’s requirements. This amendment would make the LRRP rule more workable, while continuing to protect pregnant women and small children. NAHB also hopes Congress will consider an amendment requiring the EPA to submit a study demonstrating the need for lead paint regulations on commercial properties and public buildings. In this, NAHB seeks transparency from the EPA to ensure that all requirements placed on builders come from legitimate health concerns.
Possible Hikes in Regulation With the housing market recovering, it is vital to avoid putting recovery at risk with burdensome regulations on builders. The State Energy Race to the Top (S. 1209) plans to allocate funds to 25 states that devise an energy-efficiency plan. NAHB is concerned that many state plans will include overly-stringent regulation on builders to reach the goal of doubling electric and thermal productivity by Jan. 1, 2030. While the mission is admirable, burdening builders and increasing home prices are not the answer. Increased energy codes, energy and land use restrictions and other policies could be used to accomplish these goals. Should this become law, the Home Builders Association of Maryland will need to work with state energy offices to ensure that business concerns are considered and any plans are also cost-effective. n
For more information about this item, please contact John Ritterpusch at 800-368-5242, ext. 8325 or via email at jritterpusch@nahb.org.
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Who Gets Dad’s Office? 5 Tips for Family Business Succession Planning
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MID-ATLANTIC BUILDER september/october 2013 www.homebuilders.org
By Lois Lang
W
hen it comes to family business succession planning, one thing is certain: Most family business leaders don’t do it, they don’t do it well, or they wait to do it until it’s too late. While the CEO longevity in non-family businesses is an average of six years, for a family owned businesses CEOs tend to stay for 20-25 years.
Sure, that long tenure contributes to leadership stability and consistency, but it can also fuel flat growth, narrow business focus and decreasing leadership drive. Additionally, when the CEO and other top level executive family members do not step aside in a timely manner, it causes a high level of frustration in the next generation who is ready to charge forward and make their mark. Once it becomes clear that the children might reach their mid to late fifties before taking over, it becomes hard to hold on to the ambitious ones. That’s why all family businesses need to have a solid succession plan in place—one that helps the senior generation leave with ease and welcomes the well-prepared next generation. While succession planning can happen at any level within the organization, we commonly think about the top five to eight key positions for a written, structured succession plan. So as you plan your company’s future leadership, keep these points in mind. 1. Think beyond seniority. Many family business executives choose their future leaders based on seniority (i.e.: “She’s the oldest, so she will be our next CEO.”). In some families, the next in line is the oldest male. Of course, a single owner can make the easy decision to pass the business leadership to the child of their choice. But this “easy” choice can backfire if the adult child or the one with the most seniority has not gained respect from other family members and employees. In other words, often the easy choice or the obvious choice isn’t the best choice. Therefore, be open to broadening your search beyond the next of kin.
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2. Embrace a more professional process of skill evaluations, performance assessments, and reviews of career history. The more thoughtful, objective and inclusive the process of bringing on the next leader is, the more likely that the transition will be embraced. Succession readiness calls for a written transition plan and an individual development plan for the future CEO within three years of the planned succession date. Implementation of the plan may involve identifying other executive team members with succession needs, building a coaching plan and providing stretch assignments in different functional areas of the company. 3. Rank possible successors based on key criteria. Rather than just appoint the next oldest family member to the leadership role, consider creating a list of all the possible successors and rank them, from 1 to 10 (with 10 being high), in each of the following areas: • Past work experience and advancement history • Education • Geographic mobility, if appropriate • Learning agility • Prior leadership positions—size and scope of leadership responsibilities • Advancement potential • Advancement desire • Interpersonal skills • A ssessment of the individual compared to the company’s values and leadership competencies • Past performance ratings • The ability to take risks • Decision-making ability • Problem-solving ability
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Doing this for each potential successor will help you see which ones are best positioned to move the company forward. Finding a successor with the right mix of skills, attitude, drive, character and experience that matches your business will ensure the family company succeeds for the long term. 4. Groom the next generation. Once you have a successor in mind, offer him/her additional development through such things as job rotations, stretch assignments, additional profit and loss responsibility and additional exposure to board members and customers. The more emphasis you place on prepping the next leader, the smoother the transition will be. 5. Consider a non-family leader. When a family business member utters the words, “Let’s consider a non-family CEO,” the first reply is usually a colorful no! However, a non-family CEO frequently brings diverse, in-depth experience to drive business growth, bringing professional alliances, partnerships, and strategy opportunities. They can be a great mentor for the next generation of family leaders—often then known as a “bridge CEO” from one generation to the next. While the family may hold all the stock, it is critical to develop a performance incentive that will reward and retain the non-family CEO and an employment agreement that will fairly treat and protect the CEO.
Thoughtful, on-going planning for succession is a must for long-term business success and sustainability. Therefore, start now. Choose Who’s Next Thoughtful, on-going planning for succession is a must for long-term business success and sustainability. Therefore, start now. Develop a clear plan about the succession of senior leader positions, including who will be next, when the transition will take place and how that successor will be groomed to make the move smoother. The more planning you do now, the better the future will be—for you and your family business. n
Lois Lang is a speaker and consultant with Evolve Partner Group, LLC where she helps organizations become high performance workplaces. For more information, please visit www.evolvepartnergroup.com or contact Lois at lois.lang@evolvepartnergroup.com or 209-952-1143.
HOME BUILDERS ASSOCIATION OF MARYLAND Lifetime Achievement —Associate
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MICHAEL KLEIN Associate of the Year
Lifetime Achievement —Builder
SCOTT BARHIGHT
RICHARD MOORE Builder of the Year
MARK BENNETT
November 14, 2013 Fretz Corporation in Columbia 40
MID-ATLANTIC BUILDER september/october 2013 www.homebuilders.org
Building Industries Foundation Join us as we come together to change lives. We need your help.
The Building Industries Foundation, the charitable arm of the Home Builders Association of Maryland, was formed to promote shelter related activities for those less fortunate throughout the Baltimore region. The Foundation focuses on ‘sticks and bricks’ projects that provide shelter or shelter improvements for needy families. Our strategy is to provide shelterrelated charitable services in the region by calling upon HBAM members for donations of labor, materials and funds. Won’t you help us help our communities? Visit our website today. It’s easy to get involved: • Donate Time and/or Materials • Request Assistance • Share Your Projects with Us and get PR • View our Latest Projects
Don’t stand on the sidelines—Get involved today www.buildingindustriesfoundation.org www.homebuilders.org
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green building BUILDING HOMES – BUILDING SUCCESS
Still Crazy After All Of These Years? By H. Alan Mooney
Figure 1: Still Flashing
P
1 2
3
1. Wall Sheathing (where it occurs) verify sheathing edges are flush with the frame opening. 2. Extend still flashing horizontally to project beyond vertical jamb flashing applied later. 3. Apply still flashing horizontally below the still flashing to the frame. Do not fasten the lower edge so the weather resistant building paper applied later may be slipped up and underneath the flashing in a weatherboard fashion.
aul Simon’s lyrics can have many meanings. Only recently have they come to mind for describing some concerns I have about residential construction. I have been evaluating residential construction for more than 30 years. In that time I have seen many examples of deficient construction. I used to think that builders would learn from their mistakes and that, over time, construction would get better. Unfortunately, I was wrong. While many homes today are architecturally more interesting than those built 20 to 30 years ago, they are not better where it counts, in the performance of the building envelope, various mechanical/electrical systems and site drainage. That’s a bold statement to make and I know some builders are doing a better job today than they were 20 years ago but it is disappointing to see how many homes still have the same deficiencies that I have been seeing since the 70s. The reasons are many; unskilled labor, incompatible building materials and lack of knowledge about how to do it right are common. Recently, my company has had the opportunity to inspect homes for a large, national company that is acquiring thousands of single family homes to lease/rent. Most of these homes are financially distressed and less than 20 years old. They are located primarily in the mid-Atlantic, mid-west, southeast and southwest regions. Here is a summary of what we are finding.
Building Envelope Deficiencies In this category, there are many problems. Here are a few. Window Flashing – Often, it is not done properly; there is no flashing. It is lapped wrong or doesn’t lap at all. The AAMA (American Architectural Manufacturers Association) has great handbooks with good standards of practice for window installation; 2400-02 is one of them. Here is one of the diagrams. (Figure 1) You should review all of the diagrams before installing the windows and check the work of your crew.
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These are simple procedures to follow and consistently will produce weather tight installations. Most window and door manufacturers have installation guidelines, they should be followed. Moisture Barrier – It is common to see homes with no moisture barrier behind vinyl siding. The Vinyl Siding Institute says: “To achieve designed performance, vinyl siding must be installed over a water-resistive barrier system that includes 1) a continuous water-resistive material and 2) properly integrated flashing around all penetrations where vinyl siding interfaces with other building products such as brick, stone, or stucco. Refer to the manufacturer’s instructions for specific product applications and recommendations. Whichever product(s) you decide to use as part of a water-resistive barrier system, be certain the materials meet the applicable building code by contacting the manufacturer of the water resistive barrier material(s). Always consult the applicable building code for minimum water-resistive barrier requirements in your area. Keep in mind that additional measures may provide better protection against water intrusion than the minimum requirements of the building code.” Brick veneers – It is common to see no weep holes, or they are blocked by soil. The Brick Institute of America says: “In order to properly drain any water collected on the flashing, weepholes must be provided immediately above the flashing at all flashing locations. The practice of specifying the installation of weepholes one or more courses of brick above the flashing can cause a backup of water and is not recommended. In general, weepholes should be at least ¼ in. (6mm) in diameter and should be spaced no further than 24 in. (600 mm) o.c. horizontally. In other cases, such as where a wick material is used in the weephole, the spacing should be reduced to 16 in. (400 mm) maximum. (See Figures 2-4.) Roofing – We frequently see poor details such as: • No drip edge • Stapled shingles (they should be nailed) • No underlayment • Inadequately overlapped shingles • Poor flashing around roof penetrations
MID-ATLANTIC BUILDER september/october 2013 www.homebuilders.org
Site Drainage Deficiencies
Figure 2: Flashing and Weepholes
Here are a few site problems we often see: Backfill settlement at the foundation – causes water accumulation, seepage into the basement Final grade sloping toward the house – causes water accumulation Inadequate seeding/sod installation – allows erosion
Mechanical Systems There are also many issues with mechanical systems: Duct installation From the ADC Flexible duct installation and performance standards: “Just enough” design – if the capacity of the heating or air conditioning is just enough for the home, it will run longer and have a shorter life, that’s not quality construction. Air leaks – when we do duct testing we often finds losses of 25 percent or more. That means higher energy bills for your customer. Inaccessible equipment – mechanical equipment needs to be serviced, if you can’t get to it, you can’t service it. In past issues, I have talked about your signature at some length. Here is a summary of the key points from those columns for your review. Home buyers will choose you because they are confident that you will provide a good product for them.
Figure 3: Gravel Beds
The Asphalt Roofing Manufacturers Association Residential Manual says: Drip Edges Figure 4: Application of a drip edge at rake and eaves Drip edges provide efficient water shedding at the rakes and eaves and protect the underlying wood from rotting. Drip edges should be made of a corrosion-resistant material that extends approximately 3” back from the roof edges and bends downward over them. Apply the drip edge underneath the underlaying along the eaves and over the underlayment on the rakes. Figure 6 details the placement and fastening of drip edges in combination with underlayments. The use of a drip edge is strongly recommended.
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green building Roofing Nails It is recommended by ARMA that property driven and applied roofing nails are utilized as the preferred nailing system for asphalt shingles. Nails Nails should have a minimum nominal shank diameter of 12 gauge, 0.105”, and a minimum head diameter of 3/8”. Nails will have smooth shanks (except for gripper marks” sometimes located just below the head) although nails with shank deformations such as “barbs” may be used. Corrosion Resistance Galvanizing by various processes is the typical means of achieving corrosion resistance. Aluminum roofing nails do not require additional coatings for corrosion resistance. Steel nails should be protected.
H.V.A.C Air Handler in Attic Here is an example of one standard we are aware of. Most manufacturers and municipalities have similar standards. However, non-compliance is common, making it difficult, if not impossible, to properly care for HVAC equipment. Attic Access
Must be large enough to allow removal of air handler (Minimum 22”x30”)
Distance
Air handler must be within 6-feet of attic access opening.
Walkway
Minimum 24-inches wide and 30-inches high.
Workspace
Minimum 30-inches x 30 inches at service side of air handler.
Lighting
Light fixture required with switch located at attic access.
Receptacle
Receptable required in attic near service area of air handler.
Disconnect
Must be located within 6-feet of the attic access.
Alarm
Air handler must have a device to alarm owner, or shut down unit, in case of condensate drain problems.
Installation and Usage Install ducts fully extended. Do not install in the compressed state or use in excess length as in this will noticeably increase friction losses. Do not bend ducts across a sharp corner of building materials such as joists or truss supports. The bend radius at the center line of ducts shall be equal to or greater than one duct diameter. Sharper bends increase pressure drop significantly and reduce airflow.
Nail Length Nails should be long enough to penetrate 3/4” into the roof deck. Where the deck is less than 3/4” thick, the nail should be long enough to penetrate fully and extend at least 1/8” through the roof deck. In determining the nail length consideration should be given to the number of layers of shingles, shingle thickness(es), underlayment and flashings (eaves, sidewall and valley, etc.).
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Figure 1: Minimum duct length and bend radius reduces pressure drop and improves airflow
Figure 3: Correct. Minimum 1 duct diameter bend radius reduces pressure drop and improves airflow
Figure 2: Excess length and tight bend radius increases pressure drop and reduces airflow
Figure 4: Incorrect. Contact with steam pipes.
MID-ATLANTIC BUILDER september/october 2013 www.homebuilders.org
What is your signature? I have outlined the key elements that I believe should be part of your signature as a builder. They are: 1. Responsive service 2. Fundamental Construction Quality – not claims that “I build a great house” but proof! Show them the construction details that are your standard. Explain the materials you use and why. Tell them about how you train your crew and how you choose your subs. 3. Follow through and follow up 4. Manage expectations 5. Responsive Service – I know, that’s the same as #1, but it can’t be overemphasized. Note number two – it’s important to build a good home. Word of Mouth is the most powerful advertising you, as a builder, can have, especially in our “social media” intense world. Your reputation, your “signature,” is controlled by what people think of you. Delivering a well built house that you, as a craftsman, can be proud of is only part of the process. Establishing a respectful, trusting, friendly relationship with your customer is equally, if not more, important. As a final note, as I have said before, some large, national homebuilders we are familiar with are establishing aggressive programs to build “defect free” homes. The problem of construction quality is gradually being acknowledged throughout the industry. Like any significant trend, it’s important to keep up or, when possible, be a leader. If you have statistics from your homes that prove they are better than average, share that with your buyers. While building a perfect home may not be possible,
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minimizing defects is. However, it does not happen by accident. You need to set that standard and hold others accountable for that standard. 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 35 states. We have evaluated more than 750,000 buildings. H. Alan Mooney, P.E, President of Criterium Engineers, is a licensed, Professional Engineer in 8 states, with more than 35 years experience and has been the author and presenter for various NAHB programs, mostly on construction quality. For more information, please visit www.criterium-engineers.com and www.criteriumquality.com.
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The Maryland Center for Housing Our journey toward a new home for the Home Builders Association of Maryland, which started in 2011, is almost complete. The longtime vision for the Maryland Center for Housing will soon be a reality. The new building will house the Building Industries Foundation and will serve as HBAM’s headquarters. The BIF is the non-profit, charitable arm of HBAM and was created in 1999 to respond to requests for assistance in benevolent housing/shelter related projects. The Foundation will own the building debt-free and lease it back to the Association, thereby providing a stable, long-term funding source to endow the Foundation and support its charitable, education and research activities. As for the Association, the building will be physical presence in Central Maryland that stands as a testament to the strength, vitality and endurance of the industry and HBAM. The first step of the process was made possible through a generous donation from Stewart Greenebaum of a fully permitted parcel in the commercial district of Maple Lawn, his award winning mixed use, smart growth development. Located in southwestern Howard County, the site is convenient to Interstate 95, US Route 1 and Maryland Routes 29 and 32. That one donation quickly turned into several and the excitement began to grow as word of a new headquarters spread throughout the Association. Shannon Comer of Shannon Comer Architects stepped up and very generously donated her company’s time and expertise to design the sophisticated 10,000 square foot building that will stand on the parcel. The design includes a usable show 46
kitchen, first floor work rooms, a large board room and office space for the Foundation. Joe Hikel of Shelter Systems, committed to the roof trusses and Residential Title took care of the title and deeds, Charles A. Klein and Son did the HVAC and Creative Touch Interiors, 84 Lumber, Gray and Son, L&L Company and many others got on board early with their products and services. Due to the access to the building industry resources, HBAM members have a unique ability to provide labor and materials that would otherwise cost significantly more. A complete list of donors can be found on page 47 or online at www.marylandcenterforhousing.org. Others, stepped up with financial contributions to aid with construction. The goal of the project is to have the building debt free by the ribbon cutting so rent income from the building can go directly to the Foundation and its charitable activities. It is not too late to make your commitment and become part of this ambitious project which will forever change the future of the Association for the better. Contributions are tax deductible as the Foundation is a fully approved 501-C(3) non-profit organization. Benefits to donors include recognition in print publications, electronic publications and online. Significant recognition throughout the build and at the new building is also included. Another way to participate is by purchasing a brick paver to be installed at the entrance of the building. The pavers are custom engraved and come in two sizes. Visit www.marylandcenterforhousing.org for details. n
MID-ATLANTIC BUILDER september/october 2013 www.homebuilders.org
Maryland Center for Housing Donors Thank you to the following companies for their generous financial support. NAMING DONORS
GOLD DONORS
SILVER DONORS
BRONZE DONORS
FRIENDS OF MCH
The Rachuba Family BB&T Lowell Glazer Bob Ward Companies Cornerstone Homes Dan Ryan Builders Elm Street Development Forty West Goodier Baker Builders NVR Powers Homes Residential Title & Escrow Co. Security Development
Caves Valley Development Design Consultants Koch Homes Orchard Development Shelter Builder Communities
Baldwin Homes Beazer Homes Chateau Builders Charm City Builders Columbia Builders Gemcraft Homes Lennar MD Landmark Morris & Ritchie Assoc. Mueller Homes Rylland Selfridge Family Foundation Steuart-Kret Williamsburg Homes
Dorsey Family Homes Efficient Homes IWIF Procopio Family Homes, Inc. Richard Rubin Whitehall Development.
Axiom Engineering ECS Mid-Atlantic, LLC Linowes and Blocher John and Nancy Meade Rutter Project Management T+A Contractors Vintage Security Zahler Construction and Development
Thank you to the following companies for their contributions of labor, materials and professional services. Lead Donor: STEWART GREENEBAUM 84 Lumber ABC Supply Allied Building Products Apex Grounds Management Ashton Manor Environmental AZEK Building Products, Inc. Bartley Corporation Belair Road Supply The Bilco Company Brace & Bit Woodworks Broan-Nutone Bruce L. Jones Contractors California Closet Carlisle Syntec Systems Charles A. Klein Choice Stairways CMW Co. Constantine Contracting Creative Touch Interiors Dans Company David S. Brown Enterprises Delbert Adams Design House Kitchens Dow Building Solutions Energy Services Group Envirosolutions Fick Bros. Roofing & Exterior Remodeling www.homebuilders.org
Fireside Hearth & Home Gaines and Company Gene’s Johns Glen-Gery Brick Gray and Son Greenebaum & Rose Greenleaf Remodeling Gutschick, Little and Weber Hatfields Septic & Equipment Services Harkins Builders Harris Teeter Hillis-Carnes Engineering Hohmann & Barnard Humpty Dumpsters Interior Concepts John H. Myers & Sons L&L Supply Leisure Specialties Metropolitan Fire Protection Mid-Atlantic Masonry, Inc. Modern Foundations Moen Morris Ginsberg Naka Huttar Oldhouser National Gypsum Northeastern Supply Old Town Construction
O’Neil Interactive Out of Sight Home Theater Owings Brothers Parksite Patterson Enterprises Ply Gem Windows Probuild Prosoco Rapid Signs Reico RFC, Inc. Residential Title & Escrow Co. Richmond American Riparius Construction, Inc. RLO Contractors Roof Center Rosenberg, Greenberg & Martin S.E.H Excavating Shannon Comer Architects Shelter Systems Sherwin Williams Scheibel construction Siegel, Rutherford, Bradstock & Ridgeway Smartbox Portable Storage St. John Properties Tamko Thos. Somerville, Co.
TW Ellis TW Perry Tyco Fire Protection Products Vintage Security Wall to Wall Construction Weyerhauser
NAMING RIGHTS Rachuba Family Foundation Foundation Office Security Development Howard County Government Affairs Office Elm Street Development Finance Office NVR-Sales and Marketing Office Walter and Betty Ward Government Affairs Office
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stats&facts
Strength in 2Q Numbers By wayne norris
Second quarter numbers for Maryland continue to reflect strength in the new home market. The starts number for Q2 is up again almost 200 units over the previous quarter and which also showed an increase up little less than 200 from Q4, 2012. Since starts can be seasonal, it is also important to look at the annualized number which has not been higher since before the downturn. We jumped almost 400 annualized starts from previous quarter and 1,430 from the same time last year! Maryland’s closings actually dropped by 18 units from Q1, 2013 to 2,110 but again when we look at the annualized number we are up 120 units to 8,338. We expect closings to continue to rise as the strong start numbers of recent quarters become move ins. The last three quarters are the first where annualized starts exceeded closings since the downturn which indicates we continue to burn through our inventory. Vacant Developed Lots (VDLs) are at the lowest level since before 2008 at 13,341. This is down over 400 lots from just last quarter and the month’s supply is at a pre-crash low of 18.3. This compares to 26.6 In Q2 2009. The pipeline is also churning with over 205,750 “future” lots which although a small drop from last quarter’s 206k is still much higher than Q2 2009 number of 176,622. Prince George’s leads the way with 389 starts (up 26) Howard County shows the largest increase of 99 to 347. While most counties are up we do see two significant decreases. Harford dropped almost 70 percent to 37 (from 114) which is appx ¾ drop from same period last year. Anne Arundel is the other culprit off 82 starts from Q1 but inline with other recent quarters as Q1 jumped up to over 300 after averaging 230 the previous three. PG also had the most closings at 322 but interestingly so Howard was only 4th at 199. Clearly that number will rise! Attached and detached product seem to both be sharing in the resurgence at similar paces. Using base pricing the ave price rose for SF about $4,000 per unit to 484,030 while TH saw a much larger increase of 22k to $365, 243. n
For additional market info including detailed subdivision analysis, custom consulting and 24/ 7 accesses to the content please contact Wayne Norris at wnorris@metrostudy.com. Brooke Burns can be reached at Hanley Wood Market intellegence at bburns@hanleywood.com or 202-729-3678.
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MID-ATLANTIC BUILDER september/october 2013 www.homebuilders.org
Starts by County
By the Numbers
347
Howard County shows the largest increase of 99 to 347.
37
200
Harford dropped almost 70% to 37 (from 114) which is appx 3/4 drop from same period last year.
The number of units over the previous quarter.
400
Annualized starts jumped up from previous quarter.
18
Unit closings actually dropped from Q1.
8,338 When we look at the annualized number we are up 120 units to 8,338.
389
Prince George’s leads the way with 389 starts (up 26).
300
Anne Arundel is the other culprit off 82 starts from Q1 but inline with other recent quarters as Q1 jumped up to over 300 after averaging 230 the previous three.
Lots Development
13,341 205,750 The lowest level of Vacant Developed Lots (VDLs) since before 2008.
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“Future” lots in the pipeline as of the second quarter.
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Not a Member of HBAM? Now is the time to join! Visit us at Builder Mart at the HBAM booth where we will be offering membership incentives or visit www.homebuilders.org/page/joinnow/
2013 HBAM Membership Drive You are the Link to help us Build our Future
Call Felicia at 410-265-7400, ext. 115 TEAMS NEEDED!
WHY BECOME A MEMBER? Respect, Recognition and Representation A good reputation is worth its weight in business. HBAM membership is an opportunity to gain recognition and respect in the community and within the industry. As and HBAM member, the Association represents you by promoting the industry and continually striving to enhance the quality of life by providing quality housing. The Association represents the local housing industry on Capital Hill, the State House and local government entities to attain favorable and progressive legislation for the industry. Networking Opportunities HBAM membership is an opportunity to build a network of professionals in the industry by sharing ideas with other builders, subcontractors, suppliers and service firms. These opportunities are in the form of all the events that HBAM has to offer. Advertising Opportunities To help you sell your product and/or service, HBAM sponsors such promotional events such as Builder Mart. Also advertising opportunities are available to you through the monthly Homefront online, Mid-Atlantic Builder Magazine and the HBAM Buyers guide. Educational Opportunities HBAM offers various educational opportunities. Learn about current trends and what the future holds for the industry through meetings, seminars presented by HBAM and the National Association’s Annual Convention and the International Builders Show. Local, State and National Membership As part of your membership, you automatically become a member of HBAM, the Maryland State Builders Association and the National Association of Home Builders. Membership Directory The HBAM Buyers guide puts members’ names, addresses, phone numbers and other valuable information at your fingertips. Valuable Money Savings Programs Members of the Association can advantage of the many discount programs from various local, state, and national businesses including a workers compensation discount program, discounts on office supplies, phone service, discounts on PC, rental cars, delivery service, GM vehicle discounts, advertising discounts, and many others.
Contact Felicia Fleming at 410-265-7400, ext. 115 or felicia@homebuilders.org for more information.
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Form a team to work together to call on prospective new members and talk about the benefits of membership in HBAM! The teams and members will compete for prizes and the honor of knowing that they have shared their association with others in the industry and helped make HBAM better.
September 24, 2013 – Rally September 26, 2013 – Telethon • Send the Message of Membership • Increase our strength in Annapolis • Grow our Networking • Cultivate Relationships • Raise Professional Awareness
www.homebuilders.org/page/ memberdrive/
ANNUAL
EVENTS
& 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 Real Estate and Construction Forecast Conference • Icon Awards • A Night at the Yard • Land Development Council Community Development Awards
MID-ATLANTIC BUILDER JULY/AUGUST 2013 www.homebuilders.org
HBAM Welcomes New Members ASSOCIATES
Bay Capital Mortgage Dan Spotts 801 Compass Way Annapolis, MD 21401 Phone: 410-974-6044 Professional Services - Banking & Mortgage Sponsor: Mike Breen, Ryland Homes
Bowman Consulting Jon Kraft 2530 Riva Road Suite 200 Annapolis, MD 21401 Phone: 410-224-7590 www.bowmanconsulting.com Professional Services - Engineering & Technical
BPR, Inc. Randy Bachtel 150 Airport Drive Unit #4 Westminster, MD 21157 Phone: 410-876-0333 www.bprsurveying.com Professional Services - Engineering & Technical Sponsor: Russell Dickens, Elm Street Development, Inc.
Capital Tristate Bill Stachorowski 600 West Hamburg St Baltimore, MD 21230 Phone: 410-752-4080 Supplier - Lighting & Fixtures Sponsor: Patrick Costello, Forty West Builders, Inc.
Carter Lumber Kevin Welsh 7101 Geoffrey Way Frederick, MD 21704 Phone: 301-748-1206 Supplier - Lumber & Millwork
Continental Services Heating and Air Conditioning, Inc. Diana Casagranda Jackson P.O. Box 1129 Prince Frederick, MD 20678 Phone: 410-535-0091 www.continentalservices.net Subcontractor - HVAC
Hillis-Carnes Engineering Associates, Inc. Tim Hill 10975 Guilford Road Suite A Annapolis Junction, MD 20701 Phone: 410-880-4788 Professional Services - Engineering & Technical Sponsor: Steve Breeden, Security Development Group
www.homebuilders.org
John R. Crocker Co., Inc. Michael S. Crocker 304 Melfield Avenue P.O. Box 1174 Easton, MD 21601 Phone: 410-822-5230 Plumbing/Heating/Air Conditioning
Mercer Carpet One Floor & Home Lee Biars 26 West Main Street Westminster, MD 21157 Phone: 410-876-2026 www.mercercarpetone.com Subcontractor - Flooring
Mortgage Master Robert Nusgart 1425 Clarkview Road Baltimore, MD 21209 Phone: 443-632-0858 Professional Services - Real Estate Sponsor: Rachel Thomas, ChesapeakeHome Magazine
Pando Alliance Janice Romanosky 107 Solomons Ridge Court Millersville, MD 21108 Professional Services - Engineering & Technical
Patriot Electric Talbot Watkins, III 717 East Ordnance Road Baltimore, MD 21226 Phone: 410-360-0058 Subcontractor - Electrical & Structural Wiring Sponsor: Scott Armiger, Orchard Development Corporation
PeoplesBank Ellen Boyer 11350 McCormick Road Executive Plaza I, Suite 101 Hunt Valley, MD 21031 Phone: 410-527-3887 Professional Services - Banking & Mortgage Sponsor: Steve Breeden, Security Development Group
Pinnacle Builder Sales and Marketing Company
BUILDERS
Bethel Regency Homes, LLC Femi Odubanjo 4815 Prince George’s Avenue #204A Beltsville, MD 20705 Phone: 301-937-7500
Cullen Homes LLC dba Danleigh Homes Daniel Moran 11836 Belair Road Kingsville, MD 21087 Phone: 410-248-0001
Koren Development Company, Inc. Steven S. Koren 9200 Rumsey Road Suite 210 Columbia, MD 21045 Phone: 410-740-1010 www.korendev.com Developer Sponsor: Mike Breen, Ryland Homes
Preston Scheffenaker Properties, Inc. David Scheffenaker, Jr 2330 W. Joppa Road Suite 160 Lutherville, MD 21093 Phone: 410-296-3800 Developer Sponsor: Jeremy Rutter, Rutter Project Management
HBAM Affinity Programs HBAM is pleased to annouce we have partnered with GBS and Moran Insurance to provide a valuable Health Benefit Offering. In partnership with Energy Services Group. All HBAM members and their employees are invited to get a $100 home energy audit from ESG and ESG will donate that money to the Building Industries Foundation.
REMODELERS
Calandra Contracting Co., Inc. Michael Calandra 13531 Villadest Drive Highland, MD 20777 Phone: 301-598-4027 www.calandracontracting.com Remodeling-Commercial
Molior Construction, Inc. Greg Vogel PO Box 361 Phoenix, MD 21131 Phone: 410-804-5957 www.moliorconstruction.com Builder - Small Volume
Shawn Fortney 1911 York Road Timonium, MD 21093 Phone: 410-560-3556 Professional Services - Real Estate Sponsor: Ryan Houck, Forty West Builders, Inc.
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governmentaffairs Maryland’s Construction General Permit up for Renewal The Maryland Department of the Environment recently announced the pending renewal of the General Permit for Stormwater Associated with Construction Activity, otherwise known as the C-GP. The C-GP is one of the U.S. Environmental Protection Agency’s National Pollutant Discharge Elimination System discharge permits. MDE has delegated authority from EPA to revise and reissue this general permit every 5 years. The purpose of the federal NPDES Stormwater program is to control pollution generated from runoff associated from industrial activity, construction activity and municipal separate storm sewer systems (MS-4’s). The C-GP is required for all construction activity in Maryland with a planned total disturbance of one acre or more although
projects that do not meet the criteria for general permit coverage may be required to obtain an individual permit. The permit authorizes Stormwater discharges from covered construction sites during active construction and works in conjunction with Maryland Erosion and Sediment regulations to control and prevent sediment pollution. MDE drafted revisions to the existing permit that were printed as a tentative determination to reissue the C-GP in August. In addition, the Department held a regulatory hearing in August and has provided a written comment period through mid-October. The Maryland State Builders Association participated in the hearing and will submit detailed comments requesting changes and clarifications to some of the proposed revisions. Key changes in the proposed permit include:
+
Shorter comment period for permit coverage applications. MDE intends to post all applications (known as an NOI) on their website immediately upon receipt. By making the NOI applications available to the public immediately, they proposed a shorter comment period from 30 days to 14, before an NOI will be approved. Transition process. MDE will require all current permitees to obtain coverage under the new permit by January 2014. In addition, unless an existing permit was obtained in 2013; all renewals will have to pay the fee again for coverage. This transition proposal may be problematic for large projects that may no longer meet the criteria for general permit coverage. MSBA is working with MDE to revise this provision. Revised definition of construction activity. MDE is proposing an expansion of the definition of construction activity to include areas outside of the construction project area. The new definition may be confusing and it is not clear what types of areas will be subject to compliance. MSBA has requested that MDE rework the language in the definition to clarify exactly which areas in addition to the construction site will be subject to compliance. The revised C-GP will be available for review later this fall and will go into effect in January 2014. n
Contact Michael Harrison at 410-265-7400 ext. 109 or michael@homebuilders.org for more information.
RESIDENTIAL WARRANTY COMPANY, LLC
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MID-ATLANTIC BUILDER september/october 2013 www.homebuilders.org
Builder Mart 2014 Together We’ll Build the Future Wednesday, March 19, 2014
Don’t miss your chance to reserve the best booth space. Visit the Builder Mart 2014 Booth in the Bull Roast area or contact Chris Baughan at 410-265-7400, ext. 121 or chris@homebuilders.org. www.homebuilders.org
www.homebuilders.org september/october 2013 MID-ATLANTIC BUILDER
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Walbrook Mill & Lumber Co Relocated to
SACO SUPPLY in Cockeysville Just minutes off I-83 or York Rd
NOT A BIG BOX STORE! Personalized Service, Knowledgeable Staff
Building Materials
Extensive Molding Inventory Framing/Treated Lumber Engineered Lumber PVC/Composites CEDAR Kitchen Cabinets Hardware
Architectural Millwork Custom Windows and Doors Custom Molding Kitchen Cabinets Circle Work
410-462-2200 • 410-771-1515 ily Fam ned Ow RS Y 95
109 W Cockeysville Rd The Professional’s Source
walbrooklumber.com 54
NAHB 2014 NAHB Accepting Applications All NAHB members are invited to indicate their interest in serving on the various committees and councils. The association relies on the leadership of members to provide expertise and experience on the issues and challenges facing our industry. Appointments will be finalized prior to the 2014 International Builders' Show and you will be notified by email if you receive an appointment. Things to Note. Only Builder, Associate and Affiliate members of NAHB are eligible for appointment to serve on a committee or council board of trustee. An individual can be appointed to no more than three standing committees or councils. All appointments are for a term of one year. The first meeting of the 2014 NAHB committees/councils will be held during the Spring Board Meeting and the last at the 2015 IBS. A person will not be eligible to serve as a member, a chairman or vice chairman on the same committee or council for more than six consecutive terms. However, the Chairman of the Board may appoint a chairman who has already served six consecutive terms for one additional year. This does not apply to HBI and the Home Innovation Research Labs. Eligibility to serve on all NAHB committees and council boards of trustees shall be contingent on the member providing NAHB with a valid email address to communicate committee and council notices, materials and other information. Even if you are a current member of a committee or council, if you want to continue, you must submit an application. Members of committees and councils must maintain a current NAHB membership. Please make sure your NAHB membership is current. If your membership expires before Jan. 31, 2014, please contact your local association for renewal. An expired membership will delay the process for consideration of an appointment. To receive an appointment to an NAHB council board of trustees, an individual must be a member in good standing of both the council and NAHB at the time of appointment and must remain a member in good standing of both the council and NAHB for the duration of his or her term or they shall be removed from the board of trustees. These are not political appointments – they are working appointments. Serving on a committee is an important responsibility and should be taken very seriously. It is very important to understand the time commitment involved. Members are required to attend the three National Board of Directors Meetings – Spring Board, Fall Board, and the Annual Convention. Any member missing a meeting without an excused absence may be removed from the committee without prior notice. The Attendance Guidelines will be included with appointment letter. n
If you have a question about your eligibility, please contact Cyndi McKinley at cmckinley@nahb.org or at 202-266-8346.
MID-ATLANTIC BUILDER september/october 2013 www.homebuilders.org
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Visit www.homebuilders.org for an on-line listing of Mid-Atlantic Builder advertisers with hotlinks. There, you can also view MAB archives and find information on upcoming events and current industry issues.
SEVERNA PARK Park Plaza
410.247.8088 CaliforniaClosets.com
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MID-ATLANTIC BUILDER september/october 2013 www.homebuilders.org
8441 Dorsey Run Road Suite A Jessup, Maryland 20794
www.homebuilders.org
JULY/AUGUST 2013 MID-ATLANTIC BUILDER
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Everyone loves a café. Now, everyone can have one. GE Café™ is GE’s first new line of appliances in 15 years, and it’s an exciting new sales opportunity. With stainless steel exterior and robust styling, builders and new home buyers will want to make it the centerpiece of their new home. For remodelers and their customers, the GE Café will easily transform any kitchen with restaurant-inspired design. At long last, everyone can afford to have an inviting café – right at home. www.geappliances.com/café For additional information on GE Appliances call GE Area Sales Manager Lora Williams at 410.679.0486.
GE Café ™
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MID-ATLANTIC BUILDER JULY/AUGUST 2013 www.homebuilders.org