Mid-Atlantic Builder by Maryland Building Industry Association

MARYLAND AWARDS OF EXCELLENCE MID-ATLANTIC

Vol. 52 Issue 2 May/June 2010 www.homebuilders.org

And, the winners are...

Maryland Award of Excellence winners announced

PLUS FOUR NEW SECTIONS Market Recovery Series Member Profile Government Affairs Stats & Facts

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

See security and peace of mind in a new light.

BGE Private Area Lighting Program

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

Lots of choices — without lots of hassle! BGE Outdoor Lighting is the area’s leading provider of outdoor lighting service — and the smart choice for your residential or commercial outdoor lighting needs. With design assistance, installation, service and maintenance, BGE’s Private Area Lighting Program offers the complete package. For more information or to schedule an appointment with a BGE Private Area Lighting account representative, please call 410-470-9446 or visit www.bge.com/outdoorlighting.

MID-ATLANTIC BUILDER MAY/JUNE 2010

www.homebuilders.org

MAY/JUNE 2010 MID-ATLANTIC BUILDER

May/June 2010 Vol. 52 Issue 2

PUBLISHER John Kortecamp

EDITOR Kristin Josephson Hogle, Editor communications@homebuilders.org

DESIGN Network Design Group Jen Smith, Art Director Heather Winkel, Graphic Designer

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

HBAM LEGAL COUNSEL Linowes and Blocher

MID-ATLANTIC BUILDER

ON THE COVER P Four, Addison 11 ABOVE The Polm Companies, Ltd., Cedarbrook

HBAM Awards of Excellence

The energy soared during the evening with live disco dancers getting the crowd into the 1970’s “Staying Alive” theme for the 2009 Maryland Award of Excellence winners. The MAX program recognizes local home builders who provide buyers with excellence in design, livability and value.

Market Recovery Series

A Builder’s Best Friend The slow down in today’s residential resale market has opened up the door for builders and Realtors to work together like never before. Signs of Recovery or Just a “Spring Fling”? New home sales in the area took a turn for the better in early this year. Townhomes and lower-end single family home sales were strong and move-up single family homes showed signs of life. Will it last?

More than 4,000 building industry professionals hit the exhibit ﬂ oor on March 24, 2010 to take advantage of Builder Mart’s annual 1-day marketplace.

Green Building How does LEED-H compare to NGBS? 2

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

Pages 21-24

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

CUSTOM PUBLISHING SERVICES PROVIDED BY Network Media Partners, Inc. and Network Design Group, Executive Plaza 1, Suite 900, 11350 McCormick Road, Hunt Valley, MD 21031, 410-584-1900

Pull-Out Section

Remodeler A supplement to Mid-Atlantic Builder

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

44 Featured Recipe Award Winning Chef Night Appetizer 44 Corner Energy Efﬁ ciency

MID-ATLANTIC BUILDER MAY/JUNE 2010

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

HBAM Remodelers Council Award of Excellence

Azola & Associates Stone Mansion Project Historic Restoration, 1M to 2M

www.homebuilders.org

Getting to Know Kevin Carney

4 6 8 36 40 42

Best of Builder Mart

Also 32

Departments

MID-ATLANTIC

is a publication of HBAM Member Services, Inc., a subsidiary of the Home Builders Association of Maryland, Inc., 7127 Ambassador Road, Suite 150, Baltimore, MD 21244 410-265-7400, www.homebuilders.org.

JANUARY/FEBRUARY 2010 MID-ATLANTIC BUILDER

Departments

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

Before & After President’s Message Events and Education New Members

www.homebuilders.org

Our Custom is Precision.

to build the most ambitious projects with craftsmanship and efficiency. Our engineers can even make a dream home from your buyer’s napkin sketch – at no additional

When building a home, homebuyers tend to ask

cost. On average, that amounts to a 7-12% savings

for the moon. But often, their budgets stay very

you can pass along.

much down to earth. Are custom requests driving your costs sky-high? It’s another reason traditional builders are taking

Stop pricing yourself out of the market and start

advantage of the custom capabilities of Excel Homes.

your next project with Excel. We deliver to your site,

As the largest custom home manufacturer on the

to your spec, on time and on budget. With custom

East Coast, we’ve developed state-of-the-art processes

craftsmanship and options to make your reputation shine.

ExcelHomes.com | 800-521-8599

www.homebuilders.org

2010 HBAM Leadership Photo Credit stuart zolotorow

Executive Committee Eliot Powell President Bob Goodier President Elect

publisher’smessage

Rod Hart First Vice President Matt Wineman Associate Vice President Cynthia McAuliffe Secretary

The Maryland Center for Housing A Statement, A Home, An Endowment For the past several months, a select committee has been meeting to prepare the launch of an ambitious campaign to establish a new home for the Home Builders Association of Maryland and its non-profit charitable foundation, the Maryland Community Builders Foundation. This publish-

er’s message is among the first steps in that launch, an outreach to you and the scores of other industry leaders active in our association to solicit your involvement, contributions and suggestions. We have two primary objectives; one relating principally to our Foundation, the other to the association itself. The Maryland Community Builders Foundation was created in 1999 to respond to requests for assistance in charitable housing/shelter related projects. Over the ensuing 11 years, association members working with and through the Foundations have played a major role in dozens of projects; large and small in scope. There is, however, much more we could do and much more we would like to do. There is one major constraint: financial resources. The Foundation has no significant or continuing source of income. Regarding the Association, our second objective is to have a physical presence in Central Maryland that stands as a testament to the strength, vitality and endurance of our industry and the Association that represents it. In short we would like a signature “home” in a highly visible location on a major transportation corridor.

MID-ATLANTIC BUILDER MAY/JUNE 2010

Mike Owings Immediate Past President

Chapter Presidents These two objectives come together in this effort to create a debt free facility that is owned by the Foundation and “tenanted” by the Association. Through its annual lease, it is estimated that rent income paid by the association would net the Foundation $100,000 after building operating expenses. The facility itself, to be called the Maryland Center for Housing, in addition to being a signature facility in a highly visible location will be a state of the art green building and will serve as a statement of the association’s foresight and leadership in innovation and design. This campaign calls on you and your fellow members for donations and/or commitments of land, labor, money and materials. All contributions will be fully tax deductable as the Foundation is a fully approved 501-C3 non-profit organization. We very much hope that you will join and support us in this campaign. We welcome your participation, contributions and suggestions. For more information, go to the Maryland Center for Housing Campaign link under the About the Association tab at www.homebuilders.org and feel free to contact any of the Building Committee Members listed. We will be in touch.

Eric DeVito Anne Arundel Councy Russ Dickens Howard County Evan Morville Baltimore County Sean Davis Baltimore City Dan Whitehurst Upper Chesapeake Paul Kotsher Carroll County

Council Presidents Guy Caiazzo HBAM Remodelers Ryan Houck Sales and Marketing Council Theresa Leatherbury Land Development Council Bill Zahler Maryland Residential Green Building Council Bob Goodier Certified Master Builder/Remodeler Steven Gilman Builder Mart

HBAM Board of Directors Tom Baum Shawnn Bittorie Steve Breeden Ron Carstens Pat Costello Chickie Grayson Joe Gregory Joe Hikel Jim Hunter Chip Lundy Sandy Marenberg

James Mathias John Meade Dan Murtaugh Rich Pezzullo Steve Rubin Jake Ruppert Kevin Sapp Susan SongyOwens Steve James

Alternate Directors John Kortecamp HBAM Executive Vice President

Theresa Leatherbury Treasurer

Scott Armiger Erik Dardas Matt Helminiak Jay Hergenroeder Paul Mueller Tim Naughton Andrew J. Poffel Leslie Rosenthal Mary Beth Taylor www.homebuilders.org

www.homebuilders.org

MAY/JUNE 2010 MID-ATLANTIC BUILDER

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

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

president’smessage

A Successful General Assembly Session What a fascinating and successful General Assembly session it was for our industry. Your government

affairs staff of HBAM took on what was heretofore the unthinkable task of changing Maryland laws and regulations that might actually benefit the building industry. By teaming together with groups previously thought to be our natural adversaries such as the Chesapeake Bay Foundation, we were able to cobble together major changes to the storm water development regulations that favorably impact our industry. It would not have happened without the cooperation of our sister home builder associations as well. Whether you move dirt, swing a hammer or sit in a new home model, tip your hat in thanks to Michael Harrison and Jeff Tosi, of our government affairs department, who worked hand-in-hand with our state lobbyist, Katie Maloney, to achieve this monumental success. Fortunately, we are not just about battling government. Our Executive Vice President, John Kortecamp, keeps us all hopping with topical seminars, social events and educational classes that rival any other association. Builder Mart, a hallmark event for HBAM, experienced a terrific turnout in attendance. Booth sales were short, as was expected, but the booths were well managed and the attendees were plentiful. We even had the pleasure of hosting as our guests the Mayor of Baltimore, Stephanie Rawlings-Blake and former Maryland governor, Bob Ehrlich.

MID-ATLANTIC BUILDER MAY/JUNE 2010

It does not stop there. Just around the corner we have a Forum on the Future of real estate and a BRAC seminar specifically targeted at housing. These events give us insight into the real inner workings of our industry. The successful people in our business have an understanding of more than their narrow field. They see the big picture and how they fit in. On June 10 we will be gathering together for an evening at the ballpark to watch the O’s take on the Yankees. Networking events like these are just part of the advantages of membership in HBAM. Choosing a few of these key events is a good way to learn more about how industry works and how you can benefit from that knowledge. I look forward to seeing you there.

DIRECTORY OF ADVERTISERS Appliance Dist. Unlimited 1 BGE 31 BGE Outdoor Lighting Inside Front Cover Builders Advantage 28-29 California Closets 33 Eastern Alliance 24 Excel Homes 3 Ferguson Enterprises, Inc. 39 GE Contract Sales 9 HMS Insurance 24 John H Myers & Son, Inc 7 Keller Stonebraker 24 Marvin Windows Back Cover Mid Atlantic Propane and Gas 8 M&T Bank 38 Northrop Group of Long & Foster 20 Potomac Valley Brick & Supply 5 Saratoga Insurance 37 Southern Pacific Supply Inside Back Cover Verizon Wireless 25

Eliot Powell 2010 HBAM President

www.homebuilders.org

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

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

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

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

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

York 2200 Monroe St. 717-792-2500

Hanover 108 Ram Dr. 717-632-0217

www.jhmson.com www.homebuilders.org

MAY/JUNE 2010 MID-ATLANTIC BUILDER

Events

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

BRAC Conference

Forum on the Future

May 21, 2010 at 8:00 a.m. Martin’s West HBAM Member $75 – Non-Members $95

June 2, 2010 at 11:30 a.m. Martin’s West HBAM Member $75 – Non-Members $95

In 2006 we first learned the acronym BRAC and were told that 40,000 - 60,000 new, high paying defense related jobs were coming to Central Maryland beginning in 2010. By most estimates that translated to 25,000 - 40,000 new homes to be built. Well...It’s 2010. What’s the story now? Who’s really coming? Who’s already here? What kind of housing needs are anticipated? What’s the new jobs number? 40,000? 60,000? Over 100,000? This is the only BRAC conference to focus EXCLUSIVELY on the HOUSING industry. This is YOUR BRAC CONFERENCE. Get up to date, get clued in, get on it!

Join us as we hear from those who have made it through the ups and downs of the home building industry. They’re the best in the industry and they’ve been here before. Let’s listen to what they have to say and learn from their experiences. •W hat is the future of building in Maryland for the next 10-20 years? • What challenges will we face as an industry? • Discuss these and other issues and engage in lively conversation with our expert panel.

MID-ATLANTIC BUILDER MAY/JUNE 2010

HBAM Night at the Ballpark and Bullpen Party June 10, 2010 at 7:05 p.m. $50 Oriole Park at Camden Yards O’s vs. Yankees

Includes bullpen party at 5 p.m. with all you can eat and drink until game time Tickets are in sections 326, 338 and 330. Join us for an evening of networking at the ballpark.

Earl Armiger, Orchard Development Tom Bozzuto, Bozzuto Homes Stewart Greenebaum, Greenebaum and Rose Associates Inc.

www.homebuilders.org

MAY/JUNE 2010 MID-ATLANTIC BUILDER

And, the winners are... 2009 Maryland Award of Excellence Winners Announced

Merchandising Multi Family $750,000-$849,999 Company Turner Development Project Bin #1511, Baltimore, MD

MID-ATLANTIC BUILDER MAY/JUNE 2010

www.homebuilders.org

Small Volume Green Single Family Detached Home $1.5 M-$2M Company Selfridge Builders, Inc. Project Stonecrest Hall, Clarksville, MD

The Green Home of the Year AND Small Volume Green Single Family Detached Home $1M- $1.5M Company Baldwin Homes, Inc. Project Emerson, Gambrills, MD

he Sales and Marketing Council of the Home Builders Association of Maryland announced the 2009 Maryland Award of Excellence winners at a ceremony held at Martin’s West on April 29, 2010. The MAX program recognizes local home builders who provide buyers with excellence in design, livability and value. The energy soared during the evening with live disco dancers getting the crowd into the 1970’s “Staying Alive” theme. Jib Jab videos featuring some of the industry’s most prominent characters brought the house down during the prestigious awards program. The emcee for the evening was Steve Rouse, #1 morning radio host and two time Radio and Records personality of the year award winner. One lucky attendee snagged the grand prize of a $1,500 gift card to Best Buy sponsored by SalesMark New Home Solutions. Awards presented in the outstanding home categories in multiple price ranges included: 55 and Better, Custom, Multi Family/ Condominium, Single Family Detached, Townhome, Green Multi Family/Condominium Affordable Housing Rental, Green Single Family Detached, Green Townhome and The Green Home of the Year which was awarded to Baldwin Homes for their Emerson project. In addition to sales achievement awards, associate and industry achievement recognition, builders were presented marketing awards for best brochure, logo, website, advertisement and design/selection center. Resale Agent of the Year, Merchandiser of the Year, Settlement Officer of the Year and Loan Officer of the Year awards were also presented. A team of judges from the Virginia and Baltimore area evaluated this year’s entries. The judges considered new home entries in such areas as floor plan layout, quality and convenience features, overall design and value. All award winners are members of the Home Builders Association of Maryland.

www.homebuilders.org

Small Volume Green Multi Family/Condominium Affordable Housing Rental Company Old Town Construction Project The Residences at Ellicott Gardens, Columbia MD

Small Volume Single Family Detached $299,999 and Under Company The Mark Building Co., Inc. Project The Cottage, Essex, MD

Large Volume 55 and Better Attatched $400,000-$499,999 Company Williamsburg Group LLC Project The Ellicott, Ellicot City, MD

Large Volume Single Family Detatched $400,000-$499,000 Company Williamsburg Group LLC Project Thomas Goodwin, Bowie, MD MAY/JUNE 2010 MID-ATLANTIC BUILDER

Small Volume Multi Family/Condominium $350,000-$449,999 Company Bozzuto Homes, Inc. Project Sugar Maple, Maple Lawn, MD

Small Volume Customized $1M-$1.5M Company Columbia Builders, Inc. Project Mayfair, Ellicot City, MD

Large Volume Townhome $450,000-$549,999 Company Williamsburg Group LLC Project Bracken, Laurel, MD

Small Volume 55 and Better Single Family Detached and Merchandising 55 and Better Single Family Detached $500,000-$599,999 Companies The Polm Companies, Ltd. and Karen Renee Interiors Project Cedarbrook, Severn, MD

Small Volume Single Family Detached $300,000-$399,9999 Company The Mark Building Co., Inc. Project The Manor, Essex, MD 12

MID-ATLANTIC BUILDER MAY/JUNE 2010

Small Volume Townhome $450,000-$549,999 Company OPaL, LLC Project Snowmass, Silver Spring, MD

Small Volume Townhome Under $249,999 Company The Humphrey Companies Project Ashford, Eldersburg, MD

Large Volume Townhome $550,000-$649,999 Company NVR Project Carnegie Place, Fulton, MD

www.homebuilders.org

Record Breaking Condominium Sale Company RexCorp Realty Project The Ritz-Carlton Residences Baltimore, Baltimore, MD

Silver Merit Small Volume Single Family Detached $700,000-$849,999 Company Dorsey Family Homes, Inc. Project The Ellicott, Ellicot City, MD

Large Volume Single Family Detatched $1M-$1.5M Company Williamsburg Group LLC Project Wellington, Ellicot City, MD

Large Volume Single Family Detached $300,000-$399,999 Company Williamsburg Group LLC Project William Deaven, Bowie, MD

Small Volume Townhome $350,000-$449,999 Company The Polm Companies, Ltd. Project Canterbury, Laurel, MD www.homebuilders.org

Small Volume Green Single Family Detached and Small Volume Single Family Detached Home $700,000-$849,999 Company James Keelty & Company, Inc. Project The Cambridge, Ellicot City, MD MAY/JUNE 2010 MID-ATLANTIC BUILDER

Large Volume Custom $700,000-$849,999 Company Williamsburg Group LLC Project Custom Canterbury, Ellicot City, MD

Small Volume Single Family Custom $1.5M-$2M Company Clark Turner Signature Homes Project Crown Jewel, Havre de Grace, MD

Large Volume Single Family Detatched $500,000-$599,999 Company Williamsburg Group LLC Project Calvert II, Laurel, MD

Small Volume Single Family Detached $400,000-$499,999 Company The Rachuba Group Project The Lauren Marie, Eldersburg, MD

Small Volume Green Single Family Home $300,000-$399,999 Company Mandrin Homes, LTD. Project The Cottonwood, Glen Burnie, MD

MID-ATLANTIC BUILDER MAY/JUNE 2010

Small Volume Townhome $250,000-$349,999 Company The Polm Companies, Ltd. Project Buckingham, Laurel, MD www.homebuilders.org

Small Volume Custom $850,000-$999,999 Company Arrisbrook Project The Rothstein, Catonsville,MD

Small Volume Custom $599,000-$749,999 Company Plumb Construction Company, Inc. Project The Hollenshade Residence, Essex, MD

Small Volume Custom $1M-$1.5M Company The Rachuba Group Project The Williams Residence, Woodbine, MD

Large Volume Townhome $250,000-$349,999 Company Ryan Homes Project The Livingston, Owings Mills, MD www.homebuilders.org

Large Volume Multi Family/Condominium $250,000-$349,999 Company Ryland Homes Project The Severn, Jessup, MD

Large Volume Townhome $350,000-$449,999 Company Bozzuto Homes, Inc. Project Franklin II, Ellicot City, MD

Small Volume Green Townhome $249,999 and Under Company Marenberg Enterprises Project Brooklyn Green Townhomes, Brooklyn, MD MAY/JUNE 2010 MID-ATLANTIC BUILDER

Large Volume Single Family Detached $300,000-$399,999 and Merchandising Single Family Detached $300,000-$399,999 Company K. Hovnanian Homes Project Normandy, Brandywine, MD

Merchandising Townhome $250,000-$349,999 Company Interior Concepts, Inc. and The Polm Companies Project Buckingham, Laurel, MD

Merchandising OUTSTANDING GREEN MERCHANDISING Company P Four Project Addison II

Merchandising Townhome $350,000-$449,999 Company The Polm Companies, Ltd. Project The Canterbury, Laurel, MD

Merchandising Townhome $750,000-$849,999 Company P Four Project The Banneker, Washington, DC

Merchandising Multi Family $850-$999,999 Company Turner Development Project Bin # 1512, Baltimore, MD

Merchandising Townhome $450,000-$549,999 Company P Four Project Snowmass, Silver Spring, MD 16

MID-ATLANTIC BUILDER MAY/JUNE 2010

Merchandising 55 and Better Attatched $400,000-$499,999 Company Interior Concepts, Inc. Project Manchester, Manchester, MD

www.homebuilders.org

Associate Achievement Awards

Outstanding Associate Website P Four

Resale Agent of the Year Bob Lucido, Bob Lucido Team LLC Remax Advantage Realty

Outstanding Multimedia Campaign Bob Lucido Team LLC Remax Advantage Realty

Merchandiser of the Year Ann McGowan, Interior Concepts, Inc.

Outstanding Use of Internet Bob Lucido Team LLC Remax Advantage Realty

Settlement Officer of the Year David E. Miller, Residential Title & Escrow Co.

Outstanding Use Of Technology Purple Cherry Architects

Loan Officer of the Year Kathy Brennan, Metlife

Marketing Awards Outstanding Builder Logo Mardrin Homes

Outstanding Builder Website Forty West Builders Outstanding Builder Color Ad The Polm Companies Outstanding Design/ Selection Center K. Hovnanian Homes Outstanding Associate Color Print Ad Bob Lucido Team LLC Remax Advantage Realty

Sales Awards

Overall Salesperson of the Year Emma Young, Ryan Homes 2009 Multi-Product Salesperson of the Year Emma Young, Ryan Homes

Selection Center Coordinator of The Year Audrey Mensah-Bonsu, Richmond American Homes of Maryland, Inc. Most Dedicated Salesperson Wayne Bill, Ryland Homes Sales and Marketing Manager of the Year Janelle Hall, Ryan Homes Sales Manager of the Year Bruce Rosenblatt, Bozzuto Homes, Inc. 55 and Better Attatched Sales Person of the Year Stephen Shrader, Ryan Homes Sales Manager of the Year Candace Smith, Ryan Homes

Townhome Salesperson of the Year Adam Hewat, Ryan Homes

Exceptional Sales Assistant/ Associate of the Year Judie Rosenthal, Bozzuto Homes, Inc.

Exceptional Sales Effort Phil Marcheso , Richmond American Homes of Maryland, Inc.

Sales Team of the Year Terri Hill, Ryland Homes

Most Dedicated Salesperson Bryant Airey, Ryan Homes Rookie of The Year Katie McMillan, Ryan Homes

Outstanding Associate Logo Sales Mark, LLC

Sales/Construction Team Melynda Tomko, Ryland Homes

Outstanding Associate Print Ad B/W Bob Lucido Team LLC Remax Advantage Realty

Sales/Construction Team Amy Cusimano, Ryland Homes

Merchandising Single Family Detatched $500,000-$599,999 Company Powers Smith Interiors and Pro Development Group Project The Dorchester, Linthicum, MD

Sales Team of the Year Korin Frey, Ryland Homes $400,000 and Over Salesperson of the Year-Single Family Detached Matt Rayman, K. Hovnanian Homes $400,000 and Under Salesperson of the Year-Single Family Detached Paul Legnard, Richmond American Homes of Maryland, Inc.

Merchandising Multi Family $1M-$1.5M Company Interior Concepts, Inc. Project Bin #1913 Baltimore, MD

Merchandising Single Family Detatched $400,000-$499,999 Company K. Hovnanian Homes Project Lafayette, Windsor Mill, MD

Merchandising Townhome $850,000-$999,999 Company Bozzuto Homes, Inc. Project The Albany, Baltimore, MD

www.homebuilders.org

Large Volume Single Family Detatched $600,000-$699,999 and Merchandising Single Family Detatched $600,000-$699,999 Company Richmond American Homes of Maryland, Inc. Project The Harvard, Perry Hall, MD

MAY/JUNE 2010 MID-ATLANTIC BUILDER

market recovery series

A Builder’s Best Friend The Benefits of a Realtor® Partnership By Laura Reese

he slow down in today’s residential resale market has opened up the door for builders and Realtors ® to work together like never before. In the previous market, builders had a revolving door at their model homes. Plenty of buyers were out hunting for that hot new community and had the confidence to purchase a new construction home, even if they had a home to sell. Homes were selling in a matter of days with multiple offers, often above list price. They didn’t need a Realtor’s ® help. “Selling a home today is much more complex,” says Creig Northrop, President of The Creig Northrop Team, Long & Foster Real Estate. “It’s truly about taking out the uncertainty for the seller. That’s why builders really need a good Realtor® in their corner.” Today’s home builder doesn’t know what to do with a buyer who has a home to sell. They are “interested” buyers but not “qualified” buyers and that is a big difference. A builder sales manager is highly skilled in selling their product, showcasing the home’s best features, options, upgrades and finer points of the community they are selling. Since that’s only one piece of the puzzle, the buck could stop there. Enter the Realtor®. A strong, knowledgeable Realtor® can turn that “interested” buyer into a “qualified” buyer by getting their current home sold. A non-contingent buyer is a builder’s dream and a Realtor® offers benefits that can take the stress out of the selling side of the transaction. It is essential to choose a Realtor® who understands your business and has the resources to support it. Here’s what a builder should look for when choosing a Realtor® to partner with: Name Recognition – Realtors ® usually work for years to build awareness of their name within their target areas. Their name is their brand. Aligning with a well-known agent with experience in the market will show you’ve done your research and chosen a partner who cares about the business enough to invest in marketing and branding themselves within the community. Proven Success – choose a Realtor® with proven success. Ask how many transactions they’ve conducted over the last year. A single Realtor® should sell on average 3-5 homes per month. A real estate team should average 3-5 homes per month per agent. Ask the average days on market their listings experience compared to the county or state average. Ask how many buyers contact them on a monthly basis. A strong agent should have penetration throughout the market and signage throughout the community that would generate an average of around 100 calls a month. A large well known agent may have as many as 300-500 calls per month. The larger the pool of buyers contacting your Realtor® partner means larger exposure for your community!

MID-ATLANTIC BUILDER MAY/JUNE 2010

Marketing Exposure – Flip through your local newspaper. Check out the real estate magazines and other regional publications. Which Realtor® do you see most often? Which has the largest or most frequent ads? Go online and check out their website and look them up on sites like homesdatabase.com or realtor.com. Which Realtor® has the most listings? This will indicate they have a strong advertising budget and the proper resources to support marketing your community as well. A savvy Realtor®, and a savvy builder will both recognize that this type of relationship is a win-win. Builders and Realtors® want the same thing, and are striving toward the same goal. If you haven’t built a relationship with the leading Realtor® in your community – here are some of the additional benefits they can offer. Listing in MLS – Often a Realtor® would be happy to list your homes or new community in the MLS (Multiple Listing Service) as a courtesy, which costs you nothing and offers widespread exposure to thousands of Realtors ® and countless buyers who visit the web site daily. www.homebuilders.org

Cooperative Marketing – To Realtors ®, selling is a structured

process that ensures the latest research and best marketing strategies are used to garner top dollar for their listed properties. They can deliver to you some of the most innovative technology in marketing including: Virtual Tours – Any good Realtor® uses virtual tours to market their properties online and can often extend this service to a builder partner. Brochures – Realtors ® have templates and marketing collateral already in place and can quickly incorporate your homes to provide brochures for your communities. Just Listed/Just Sold Postcards – Realtors ® can provide these post cards in record time to announce a neighborhood or new home that you have just listed or sold. Online Advertising – Often, a real estate firm is connected to many third party websites like Realtor.com, homesdatabase. com, trulia.com and their broker’s main website. By listing your home in the MLS with a Realtor®, your community is automatically pulled to many of the third party websites, broadening your exposure exponentially to buyers world-wide. Agent Caravans – Agent Caravans or Broker’s Open Houses are great tools to introduce agents within the firm to your community. The more agents that become knowledgeable about the selling points and any incentives your community is offering, the more chances you have to get this information in front of potential buyers. Office Support – Typically a Realtor® is available 24/7 to capture buyers. This can be especially effective if your community sales office has limited hours. If your sales office is closed, Realtors ® can be available to answer any questions on the community. Partnering with a Realtor® gives today’s busy builder as little or as much administrative support based on their needs and timelines. This allows the Builder to receive the benefits of a dedicated staff without the corresponding expense. Weekly Status Updates – No more wondering where things stand in the contract process. A strong Realtor® will conduct frequent updates to insure a well rounded communicative process. Guaranteed Sale Program – a hot program in today’s market, offered by a few of the top producing Realtors ® is a Guaranteed Sale program. If the home doesn’t sell within a specified time frame, the Realtor® will buy the home at a pre-determined price.

I can do things for myself, so why should I partner with a Realtor®? True, as a builder you can always do things on your own. However, there are only so many hours in a day. By just simply referring your clients to an experienced Realtor®, you are bringing them one step closer to purchasing a home from you. With more time devoted to sales in your community rather than on worrying about the client selling their current home, you, as the builder are able to focus on the part of your business that actually creates income. Those additional hours can translate into additional sales for your community. In addition, because you’ve partnered with a Realtor®, your community is now being enhanced and promoted on-line, giving your homes more exposure than you ever had time to devote. The leads are being quickly captured and added to target marketing campaigns that keeps the community in the forefront of the market. You will realize even more sales from the professional management of leads conducted by your Realtor® partner. A Realtor® can eliminate numerous obstacles. Among the areas where a builder will see immediate benefits are: qualified buyers, listings added to the Multiple Listings System, marketing exposure and a relationship to exchange quality referrals.

How does it work? Realtors ® take the time during a consultation to learn about your new home community; discuss what obstacles you are facing to achieve sales, learn what programs are being utilized to promote your community, manage leads and keep you in the forefront of your market. They learn how you and your practice work best and then will structure a plan to meet your criteria, your needs and timelines. Once you and the Realtor® decide that you will be a great fit to work together, you begin referring buyers to them. The Realtor® meets with your clients to discuss listing their current home and then begins leading buyers to your new home community. The Realtor® will schedule weekly, bi-weekly or monthly conference calls to discuss marketing plans, new technology and services and business strategies. The frequency is dependent on how you and the Realtor® work best. These calls are an important aspect in continuing to build a successful working partnership. n Laura Reese is the Director of Marketing for The Creig Northrop Team of Long & Foster Real Estate, the number one real estate team in the state of Maryland, and the number two team in the nation. The Northrop team averages over 700 homes sold per year and $400,000,000 in settled volume. For more information visit www.northropteam.com.

www.homebuilders.org

MAY/JUNE 2010 MID-ATLANTIC BUILDER

market recovery series

A partnership you can count on from the ground up.

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

The Creig Northrop Team of Long & Foster Real Estate helps hundreds of buyers discover Maryland’s most livable communities and best places to live, work and play. When you partner with The Creig Northrop Team, we will: • Feature your community FOR FREE through our exclusive marketing programs including our website that reaches 3.5 million prospective buyers monthly

President, Selfridge Builders

Contact The Creig Northrop Team for your exclusive consultation to discuss how our Builder Partnership Program can better YOUR business. Call

410.531.0321

• Bring buyers to your door with over 700 buyer leads a month

Click

www.northropteam.com

• Help your clients sell their existing homes & become non-contingent with our new Consider It Sold™ program

Come in

• Provide the experience and knowledge that comes from over 40 years as top producers in the industry

Visit our newstate of the art

MID-ATLANTIC BUILDER MAY/JUNE 2010

12345 Wake Forest Road Clarksville, MD 21029

BUILDER RESOURCE CENTER

www.homebuilders.org

Mid-AtlAntic

Remodeler A supplement to Mid-Atlantic Builder

HBAM Remodelers Council Award of Excellence

Azola & Associates, Stone Mansion Project Historic Restoration, 1M to 2M

Call for Entries

2010 HBAM Remodelers Awards of Excellence www.homebuilders.org/page/RCawards/

www.homebuilders.org

jAnuARy/FeBRuARy 2010 MID-ATLANTIC BUILDER

Mid-Atlantic

Remodeler

A supplement to Mid-Atlantic Builder

2010 HBAM Remodelers Guy Caiazzo President

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

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

PAST Presidents Bill Rauser John Martindale

Michael Owings Donald F. Lynch, Jr.

2010 SPONSORs Members do business with members Presenting Members

ChesapeakeHome Magazine

KC Company/Pella Windows

before&after Azola & Associates Stone Mansion Project The Ruscomebe Mansion built in 1866 remained vacant from 1977 until its restoration in 2007. Over the past 141 years, the mansion had been modified to fit the needs of its new owners until it was altered by a fire in 1955. The project design of this historic building was based on returning the building back to its original layout while allowing for modern upgrades to facilitate an office building. Both the attic and basement were utilized for additional office space. Throughout the rest of the house, modern drywall partitions, acoustical drop ceiling and several layers of modern flooring were removed to allow for the restoration of the original finishes. Evidence of the original crown moldings were used for reproduction templates. The restoration also utilized historic photographs to determine how the house was once laid out and how the grand staircase was configured. n

Lynch Construction

Susquehanna Bank

Saratoga Insurance

T.W. Perry Contact Vickie Martin at 410-265-7400, ext. 105 about 2010 Sponsorship Opportunities

Residential Fall Protection Training Course June 8, 2010 from 3:00 â&#x20AC;&#x201C; 6:00 p.m. at the HBAM offices Hosted by the HBAM Remodelers Council and funded by OSHA Susan Harwood Grant 46C3-HT19

West Virginia University Safety and Health Extension has developed training material for residential construction and workers and supervisors pertaining to fall protection and awareness. The material was developed with funding from an OSHA Susan Harwood grant and will be presented in a three-hour training course. The training will address fall hazards that occur during each phase of residential construction and will offer safe alternatives for each potential hazard. Certificates will be provided to each attendee completing the course. This training course covers OSHAâ&#x20AC;&#x2122;s requirements for fall protection.

Welcome Our New Members Rick Wuest Thompson Creek Window Company Dave Bielecki Maryland Home Improvement Guide George Brown Greenleaf Remodeling

Contact Vickie Martin at 410-265-7400, ext. 105 or vickie@homebuilders.org 22

MID-ATLANTIC REMODELER A Supplement to Mid-Atlantic Builder May/june 2010

www.homebuilders.org

events and education

president’s message Bits and Pieces I am hearing and seeing “Green” more and more during conversations, in magazines, news papers and among clients and prospects. Without a doubt, the movement to “Green” is to be taken seriously. So, have you asked, “How Green is my green”? Translation, can I make money being green? Will prospective clients pay more to be green, and if so how much? Are there legal and insurance issues? The smart move is to answer these and other questions before you hang up your “Green” shingle. What’s the best place to find the answers? You got it. It is HBAM and the Maryland Residential Green Building Council. To find out more about the MRGBC visit www.greenhomebuilder.org. Membership is the primary focus of Remodeler’s Council in 2010. At the April 13th Remodeler’s Council Board of Director’s meeting, Arif Durani of Pella Windows, Chair of the Membership Committee, presented a plan to increase RC membership. Bottom line is that we need you to recruit one new member. That is right, just ONE new member. If you’re thinking, I am too busy trying to survive this economy to spend time recruiting ONE HBAM or RC member, you are missing a key element in business survival. Increasing your business network of remodelers, suppliers and builders is a key element of any successful business plan. Member recruitment is a significant method of build-

ing your network. The 2010 MIX & MINGLE replaced the Spring Dinner and was a totally different approach to getting together and networking. There was great music by King Soul featuring our own Arif Durani from Pella Windows. A big THANKS to Vickie Martin for organizing the affair. HBAM Remodelers Awards of Excellence call for entries. Download the entry packet at www.homebuilders.org/ page/RCawards/. The Maryland Green Show on November 6th and 7th, 2010 will get you in front of consumer prospects looking for green remodeling. Residential Project Specialist (RPS) program helps your company helps your company to become more competitive in the remodeling industry. Being more competitive could bring a jingle in to your jeans. To Our Sponsors Many Thanks: K.C. Company Pella, Inc, TW Perry, Reico Kitchen & Baths, Saratoga Insurance, Susquehanna Bank, Lynch Construction and ChesapeakeHome Magazine. Members need to support members. Buy from our sponsors. HBAM Staff -- you are doing a great job. Fearless Leader – Thanks to JK. And thanks to the Remodelers Council and members.

Guy Caiazzo

HBAM Remodelers President

correction

September 22, 2010 8:30am-4:30pm Marketing & Communication Straggies for Aging and Accessibility CAPS 1 taught by Bill Rauser, CAPS This course provides a background on the older adult population, communication techniques and common remodeling expenditures and projects. This course provides Builders and Remodelers information and techniques to assist in accessing the agingin-place remodeling market. September 23, 2010 8:30am-4:30pm Design/Build Solutions for Aging & Accessibility-CAPS2 taught by Bill Rauser, CAPS This course provides information on the codes and standards, common barriers and solutions, as well as product ideas and resources for the aging-inplace remodeling market. (Elective Credit for MCSP) *Holders of the following designations are exempt from this course for CAPS designation: CGR, CGB, CGA, CKD, CBD, ASID, AIA. Other exemptions determined by NAHB on a case-by-case basis.

Two Award of Excellence winners in the Remodeler Awards of Excellence were incorrectly identified in the last issue of Mid-Atlantic Builder. They should have appeared as shown at right.

$300 ea—HBAM members $350 ea—Non HBAM Members Outdoor Living Under 50 bluehouse architecture, llc Spencer Residence Porch

www.homebuilders.org

September 21, 2010 8:30am-4:30pm Business Management for Building Professionals (formerly Intro to Business Management)* (Required CGA/CGP designation course) taught by Bill Rauser CAPS This course teaches strategies and techniques for building a competitive sustainable remodeling business.

Exterior Remodel 125K - 175K Owings Brothers Contracting Co. Inc. Chellis Project

All Courses will be held at the HBAM Conference Center 7127 Ambassador Road, Suite 150 Baltimore, MD 21244.

May/june 2010 MID-ATLANTIC REMODELER A Supplement to Mid-Atlantic Builder

Mid-Atlantic remodeler

This article is titled, “Bits and Pieces”, because it is just that, bits and pieces of thoughts, observations, plagiarisms, and anything else suitable to print.

Education

Mid-Atlantic remodeler 24

MID-ATLANTIC REMODELER A Supplement to Mid-Atlantic Builder May/june 2010

www.homebuilders.org

market recovery series

Signs of Recovery or Just a “Spring Fling”? By Susan Songy

ew home sales in the Baltimore/Washington Metro Area took a turn for the better in March and April of this year. Not only did townhomes and lower-end single family homes turn in strong performances, but for the first time in many months, move-up single family homes showed signs of life.

There are several factors to consider as possible “temporary” causes of a positive turn. First, and foremost, the April 30th deadline for contracting on a property to receive either the $8K or the $6500 tax rebate was a huge factor. We all understand that the strong townhome sales our area has seen have not been spurred by a strong economy, or an increase in per capita income. Renters who had been hovering for the past 1-2 years, uncertain if home ownership is right for them, finally took the plunge, to realize the tax benefit. It took them a long time to realize that the $8K is an actual check, not just some mumbo-jumbo that they fill out with their employer, and don’t ever even get to touch. First time move-up buyers, with increased ability to sell their more modest home to someone, are finally able to clear a little profit, in order to purchase something larger. Loan limits for realistic, obtainable financing like FHA and USDA (in some areas) made it easier to move up, especially combined with the significant decrease in pricing for modestly sized single family homes. A few years ago there were no new home communities in Maryland advertising single family homes of any size under $300K.

MID-ATLANTIC BUILDER MAY/JUNE 2010

Now there are at least a dozen, and if you venture in the hinterlands of Southern PA, Cecil County, or the Eastern Shore, you can even find a few under $200K. The size of the homes is smaller; true, but consumers seem to be fine with that, as long as the very important spaces such as kitchen, family room and bathrooms are meeting their expectations with regard to size and appointment. Secondly, pent up demand likely played a part in this little hoorah. A really crappy winter kept everyone chained to the homestead, and nothing makes your home feel smaller that being cooped up in it for extended periods with the entire family in it! Finally, February through April are historically the months that see the most sales in new homes communities. Numbers may be up right now because they are always up at the end of the first quarter, and into the second quarter of the year. These reasons could all explain the surge we’ve seen in new home sales recently.

www.homebuilders.org

On the bright side, heavy increases in the cost of utilities has the more analytical set of buyers factoring the monthly cost of a poorly insulated home with a less efficient heating and cooling system into their decision to buy new. If a move-up to a new home adds another $800 to the mortgage payment, but a $400 savings in utility bills can be realized, it makes the new mortgage amount more palatable. Green building may finally, finally become a real factor in new home sales, spurred by the outrageous energy prices we as a nation are experiencing. Consumers continuing to factor in energy costs would be a long-term benefit for our industry. Will a stronger sales trend continue into the summer and fall months of 2010? Harford County, which is currently being fed by the relocating buyers from Monmouth, NJ, will most assuredly stay strong, as will its northern neighbor, Cecil County. A good old-fashioned “supply and demand” situation will keep homes moving in that area. In order for the positive trend to continue, construction money and end loan money will have to open up quite a bit. Employment statistics, while better in this area than many areas across the country, are always a huge factor for first-time buyers. The loans these lower-income first-timers need must to be readily available – loans with lower credit scores, lower cash and easier qualifying ratios. If the population aged 25-34 is unemployed, or even just underemployed (which is more the issue in our area), first time home sales will not hold strong for 2010. Older first-time buyers who have not purchased yet due to cash or credit limitations will not be able to find the financing that will turn them into homeowners – unless the banks loosen up quite a bit, very quickly. Another problem is construction money. Many area builders would have loved to build inventory homes this winter to feed the demand created by the tax incentives. But banks are stubbornly holding the purse strings shut, afraid to extend credit in such a volatile market. Builders who had standing inventory priced under $600K in the latter part of 2009 had no trouble selling it, unless it was grossly over-priced for market conditions. As a regional builder, if you couldn’t build specs last year, you probably didn’t sell very many homes this spring, especially if you were selling single family homes. And, if you didn’t sell homes, your balance sheet probably looks anemic, which does not inspire confidence with your construction lender. Our national builders did a good job of supplying inventory homes to feed the spring market, and they priced the homes to sell. They were able to reap the rewards, as was evidenced by the disproportionate ratio of high volume award winners employed by publically-owned companies at this year’s MAX Awards.

www.homebuilders.org

And of course, the big elephant in the room – looming foreclosures. Many industry experts are fearful that the first solid signs of recovery in the housing market will be wiped away by vast amounts of listings hitting the market all at once, throwing off the supply-demand ratio astronomically. The fear is, for every “actual” foreclosure out there, there are 3 more “pending” – either buyers in preventative measures already, or those that are hanging on, making the payments by renting out rooms, borrowing from credit cards, or utilizing family help. If these homeowners are not able to bring their incomes back up to the level that they had when they purchased the home, they will eventually try to sell to get out from under the heavy payment. The only reason these homes have not yet hit the market is that current pricing will not net enough to pay off the mortgage. There is no way to identify these potential sellers, but they may be out there in droves. Many are commissioned salespeople, in industries somewhat dependent on construction, who have seen their incomes cut in half, or worse. Imagine a scenario where, in Baltimore County, for example, existing homes sales numbers are strong through August, and new construction starts are also up through August. The media starts touting a recovery, and homes begin selling in 60-90 days fairly regularly, at prices 20 percent higher than in 2009. Suddenly, in September, 800 single family homes in the $500-$1M price point go on the market. What a glut that would create! The existing home inventory stats would skyrocket, because supply would far exceed demand. What can we do to protect ourselves until recovery is well underway? Become a political animal – actively support candidates that are fiscally responsible and understand how tightly our local economy is tied to housing starts. Do your part to make sure construction funds will be available when the demand is there to be met. Become active in your biggest advocacy group, the Home Builders Association of Maryland. Contact an HBAM Board Member to find out how you can protect your business, and make a real contribution to your industry or visit www.homebuilders.org. n With over 30 years experience in new homes sales and construction, Builder’s Advantage Owner Susan Songy provides expert land acquisition services, production assistance, sales and marketing experience, and financing recommendations for her clients. She also serves as the HBAM MAX awards committee chairperson and sits on the Board of Directors for the Homebuilders Association of Maryland. Susan can be reached at susan@buildersadvantagellc.com or 410-442-4030.

MAY/JUNE 2010 MID-ATLANTIC BUILDER

Best North Hall Island Booth AZEK

Best North Hall Single Booth Essex Bank

BEST OF BUILDER MART More than 4,000 building industry professionals hit the exhibit floor on March 24, 2010 to take advantage of Builder Mart’s annual 1-day marketplace. Over 300 booths filled the Maryland State Fairgrounds, displaying the latest products and services available to the building industry. Builder Mart proved to be an opportunity for attendees to meet with key decision makers, company owners and presidents, purchasing agents, project supervisors, sales managers and old friends. Builders and remodelers from the Mid-Atlantic region discovered the newest trends and ideas for building projects and enjoyed Builder Mart’s ever popular bull and oyster roast and beer garden. Builder Mart – March 23, 2011 – don’t miss it.

Best North Hall Multi Booth Potomac Valley Brick

Best South Hall Island Booth TW Perry

Best South Hall Single Booth GE Security

Best South Hall Multi Booth Guardian Home Technologies

MID-ATLANTIC BUILDER MAY/JUNE 2010

www.homebuilders.org

MAY/JUNE 2010 MID-ATLANTIC BUILDER

getting to know kevin carney

Bringing Communities Together

“I

love seeing the houses turned into homes and then into a community.” Nearly 25 years as a homebuilder and small business owner has given Kevin Carney the opportunity to focus on the things that are most important - family and a drive to give other families a little something better.

Driving through one of his communities recently, he pointed to the blue shutters on a home he built in Owings Mills. “See those?” Carney asks. “I purposefully made the shutters on this home the same color as the front door on the home next door. I spent a lot of time to make sure the color palates are enduring. That’s good curb appeal.” Kevin Carney started out in the home building industry building single-family homes in Prince George’s County. Recognizing the need for new homes as more and more Washington residents moved to the suburbs in the 1980’s, Carney embarked on a career that has provided him the ability to be a creative entrepreneur with an eye for design and an attention to detail that leaves few “For Sale” signs on the yards of the homes he has built, quite an accomplishment during these tough times for the housing industry. “I love to design the land and the home at the same time so you can see the whole community coming together,” he says. Born in Catonsville, Thomas Kevin Carney comes from a strong line of Irish Catholic immigrants to Baltimore. His great-great grandfather, Thomas Francis Carney, immigrated to Baltimore around 1847 and was a street cleaner for the city. His grandfather Thomas Peter Carney started Carney’s Restaurant at the corner of Light and Baltimore Streets for many years which became a staple for Court House and City Hall regulars. Kevin’s father, Thomas Birch Carney worked at the restaurant while attending Loyola College on a basketball scholarship and reared his son with the principles of a small business owner by valuing his customers and trying to provide them with what they want.

MID-ATLANTIC BUILDER MAY/JUNE 2010

Carney was raised in a townhome in Catonsville and now lives in Towson. After earning a BS in Business Administration at Towson University and attending law school at the University of Baltimore, Carney worked at Loyola Savings and Loan as a vice president and construction loan officer. It was at Loyola Savings that he worked closely with home builders throughout the state. He became president of Loyola’s Development Corporation, where he became immersed in the complex world of land development. He worked closely with government, community associations, regulatory agencies and environmentalists. He was with Diversified Homes Corporation for five years before deciding to start his own homebuilding company with an emphasis on designing homes for families in communities that provided that neighborhood feeling where children play in front yards and cul-de-sacs. For a long time, Carney could boast that he had met every one of his home buyers, adding such personal touch that he still speaks with some of his earliest home owners.

Discussions of family are a subject Carney turns to often. He married his wife Marla 36 years ago after meeting her while both were students at Towson and speaks proudly of his daughter, Leah, and son Thomas Maguire or “Mac” as he is known. He could also be considered a bit of a health nut and loves to be outdoors. He plays golf whenever he can and plays poker with the same group for more than 20 years. Carney drives through his current communities “Winterset” in Owings Mills up its tree lined streets. It was nearby that he tells how he made a contribution to the history of the state. It was while he was preserving wetlands in a forested area nearby that he commissioned an archeological dig since the area was officially listed as an “archeological area of interest.” He spent more than a quarter of a million dollars to carefully remove Piedmont Native American tool making devices and other items that the Piedmonts traded with Native Americans from the Middle Shore. “It was one of the www.homebuilders.org

most interesting things to watch, these scientists locating important pieces of our history,” Carney says. They are property of the state of Maryland, now housed in the archives in Annapolis, donated from his preservation efforts. During his career, Carney has won numerous sales and marketing awards, land development awards and was one of the state’s initial green builders. He won “Builder of the Year,” in 2002 after serving as president of the Home Builders Association of Maryland in 2001. One of the initiatives that Carney participated in while on the board of the association was the lot inventory analysis for the state of Maryland. Along with other builders, Carney lobbied state and local officials to count the number of available building lots in each jurisdiction to adequately plan for long-term Smart Growth. This important analysis was later adopted by several counties, including Baltimore County and the Maryland Department

“I love to design the land and the home at the same time so you can see the whole community coming together.” of Planning. Knowing the number of available lots allows planners to match employment growth with housing availability. This advanced planning approach to economic and employment growth became a centerpiece of Maryland’s statewide and municipal growth strategies. Carney has a strong commitment to the communities he serves. He stepped up to lead the Home Builders Association of Maryland’s non-profit organization, the Maryland Community Builders Founation, several years ago while serving as president of the association. The goal of the foundation is to provide charitable services by focusing on ‘sticks and bricks’

projects that provide shelter or shelter improvements for needy families and worthy organizations in the region. The MCBF has renovated homes for families to stay at while their children are treated for cancer at Johns Hopkins University Hospital and refurbished a shelter for victims of domestic abuse and the homeless among other projects. Giving back is a source of pride for Carney, “That’s the great thing about helping people in need – you feel good doing it and there’s nothing better than positively impacting people’s lives.” That sentiment seems to apply to all facets of Carney’s life, with customers, his family, friends and the communities he serves. n Editor’s Note: Kevin Carney is currently running for the Maryland State Senate in the 42nd District, which includes Towson, Parkville, Cockeysville, Loch Raven, Lutherville, Mount Washington, Timonium, and part of Pikesville in north central Baltimore County.

A good investment pays for itself. For over 30 years, California Closets has delivered the guarantee of custom home storage solutions of (all fonts are outlined on artwork below)

size rule of CC30 bugs:

the highest quality, design and service.

between .625-inch width and 1-inch width

With whole home solutions, your client’s home will have a personal investment that will appreciate for years to come.

Sulphur Spring Road, Baltimore Plaza Park, Saverna 410.247.8088 | californiaclosets.com bug for ads

bug for powerpoint template

www.homebuilders.org

MAY/JUNE 2010 MID-ATLANTIC BUILDER

green building GETTING TO GREEN

How does LEED-H compare to NGBS? NGBC Accredited State Verifiers LEED-AP VA

4252

3074

168

2611

3749

Figure 1. Consultants by state NAHB/NGBS

LEED-H

Lot Design

Sustainable Sites (SS) Location & Linkages (LL)

Resource Efficiency

Materials & Resources (MR)

Energy Efficiency

Energy & Atmosphere (EA)

Water Efficiency

Water Efficiency (WE)

Environmental Indoor Quality Environmental Quality (EQ) Homeowner Education

Innovation & Design Process (ID) Awareness & Education (AE)

Global Impact Innovation & Design Process (ID) Optional

Innovation & Design Process (ID)

Figure 2. Rating categories of NGBS and LEED

BY H. ALAN MOONEY, P.E.

s you know, the Home Builders Association of Maryland, has developed the Maryland Residential Green Building Council to highlight the commitment of individual HBAM builder/members to Green Building and the National Green Building Standard (NGBS). In my recent articles I have been discussing what is needed to become a member of MRGBC, establish yourself as Green Builder and get your first NGBS rated home. While this series is about the NAHB program, we cannot ignore the fact that the the Leadership in Energy and Environmental Design program developed by the U.S. Green Building Council has more visibility and momentum than NGBS, at least for now. I would like to devote this article to answering a few questions you will get from your customers about building green: • How is NGBS different from LEED, or more specifically, LEED-H? • Is NGBS better than LEED-H? • Why are there two standards? It’s worth noting that the number of consultants available to help certify your project is quite different, at least for now. We checked some of the states in the Mid-Atlantic area (Figure 1). For reference, LEED offers several different certification programs for different types of projects. For our purposes, we will limit this discussion to the LEED-H standards. There are many similarities between LEEDH and NGBS including ratings, performance categories, award programs, etc. Both programs have had equally credible experts and organizations who have contributed to development of the standards.

NGBS In 2007 the National Association of Home Builders and the International Code Council partnered to form to establish a much-needed and nationally-recognizable standard definition of what is meant by “Green Building.”

MID-ATLANTIC BUILDER MAY/JUNE 2010

LEED for Homes LEED for Homes is an initiative designed to promote the transformation of the mainstream homebuilding industry toward more sustainable practices. LEED for Homes is targeting the top 25 percent of new homes with best practice environmental features. LEED for Homes is a collaborative initiative that actively works with all sectors of the homebuilding industry. The objectives are similar, as are the rating categories (Figure 2). Even as you move to the next layer of detail and look at how to achieve specific levels of certification, there are still many similarities (Figure 3). For reference, GBG are the Green Building Guidelines developed by NAHB before NGBS. NGBSv2 is the latest version of NGBS. As we move further into the detail, some important differences begin to emerge. In March 2008 the NAHB Research Center prepared a document entitled “Green Home Building Rating Systems – A sample comparison” in which they compared GBG, NGBS and LEED-H. Here are some excerpts from the executive summary of that document. I encourage you to read it completely. It is available at www.nahbgreen.org/ Content/pdf/GreenHomeRatingComparison.pdf This report evaluates the costs and technical requirements of bringing two sample codecompliant production houses in different climate zones (Dallas and Washington, DC metropolitan areas) into compliance with three different green building rating systems at one point in time (January 2008). This preliminary sample of model homes was evaluated using all three green building rating systems and the results are presented as an introduction to the systems only—not as final statistically significant conclusion. (Figures 4 and 5) Current estimates are presented here for informational purposes only. The first level of compliance in LEED-H (“Certified”) was calculated at roughly three times as much as the GBG or the NGBSv2 equivalent levels (“Bronze”) overall for this sample. LEED-H ratings at higher levels are www.homebuilders.org

www.homebuilders.org

GBG

NGBS v2

LEEDh

Bronze

Certified

Silver

Gold

Emerald

Platinum

39 66 93 119

Resource Efficiency

45 79 113 146

Energy Efficiency

30 60 100 120

Water Efficiency

14 26 41 60

Gold

Category Lot Design

Environmental 36 65 100 140 Quality Homeowner Education

10 11 12

Global Impact 50 100 100 100 Optional

222 406 558 697

Figure 4. Threshold Point Ratings for Green Buildings NGBS, 2008

And don’t forget….

Certified

45-59

As I have said before, just being a Green Builder will not distinguish you from the crowd. Being a quality builder, with a reputation (your signature) for honest, professional service who embraces Green Construction Standards is needed to assure your long term success. ■

Silver

60-74

Gold

75-89

Platinum

90-136

Criterium Engineers has specialized in residential construction for more than 50 years, with more than 60 offices in more than 30 states. We have evaluated more than 750,000 buildings. H. Alan Mooney, P.E, President of Criterium Engineers, is a licensed, Professional Engineer in 8 states, with more than 35 years experience and has been the author and presenter for various NAHB programs, mostly on construction quality. For more information, please visit www.criterium-engineers.com and www.criterium-quality.com.

Emerald

Figure 3. Rating levels of the three Green Building Systems

Silver

geting all homes to make incremental, practical and relatively easy to implement improvements in efficiency and performance. In closing, I offer the following suggestions to answer the questions I posed at the beginning of this article. • NGBS is focused on practical standards to improve efficiency and performance using existing technology • NGBS is generally less expensive to implement for a moderate (silver or gold) ratings • LEED-H homes generally require more owner awareness and education since they are using leading edge technology for the highest ratings • LEED-H homes tend to be more complicated for both the builder to implement and the owner to understand • NGBS is for the mainstream builder who wants to include “green construction” as part of his or her signature (a broad market) • LEED-H is for the builder who wants to focus their market position almost exclusively on sustainable/green construction (a limited market) There are two standards because LEED-H is deliberately pushing the envelope of efficiency, sustainability and building technology while NGBS if focusing on practical solutions applicability to the majority of homes being built today. I predict that in ten years, there will be more homes built to the NGBS standard than the LEED-H standard. LEED-NC, however, will prevail in commercial construction.

Bronze

similarly higher in costs to comply than the other two rating systems, with the magnitude of difference diminishing as higher levels are reached; at the highest level (NGBSv2’s “Emerald” or LEED-H’s “Platinum”) costs are similar. This is summarized in Figure 6. And further, a few excerpts from the Conclusion of this study. The NGBSv2, through the ANSI standards development process, has achieved widespread consensus across numerous and varied stakeholder groups. Although still in draft form and subject to change, the NGBSv2 will be the first national green building standard and, as such, the most defensible rating system for a broad cross-section of the nation’s homes. The GBG rating system and NGBSv2 draft standard are prescriptively structured, thus favoring “conventional” construction (as far as that applies to green building), yet including many new technologies. Prescriptive methods, like those in the building codes, are simpler to execute and when performed properly tend to produce the intended result more time- and cost-effectively. These types of programs are simpler to rate and integrate into an existing design and operational structure. Because of this both certification costs and building costs can be estimated more easily. Green building novices targeting the entry levels – Bronze and Silver – will find GBG or NGBSv2 rating system integration simpler than LEED-H. LEED-H is an exclusive rating system on purpose and thus, it is not practical for the majority of builders, particularly those targeting the first two levels of achievement. Custom projects utilizing alternative building materials and unconventional methods, such as grey water re-use and off-grid energy features, are likely to achieve a higher rating in the LEED-H system than the GBG or the NGBSv2 which were developed for the mainstream builder. Otherwise, there is plenty of opportunity within the GBG and NGBSv2 to earn ratings for passive solar features, non-traditional heating methods and similar custom approaches. Simply put, all of the rating systems appear to satisfy their stated audience in purpose and practice. In summary, NGBS and LEED-H have similar objectives and somewhat different methods by which to achieve those objectives. Also, they have different targets. While LEED-H is targeting the top 25 percent of homes, to make them even more efficient and sustainable, NGBS is tar-

Total available points 136 Figure 5. LEED for Homes Certification Levels State

GBG

NGBSv2

Bronze/ Certified 1.0 – 1.4% 1.1 – 1.7% Silver

2.3 – 3.4% 2.8 – 3.1%

Gold

4.7 – 6.4% 6.9 – 7.6%

Emerald/ Platinum NA

16.3 – 16.9%

Figure 6. Cost of Compliance as percentage of baseline house cost

MAY/JUNE 2010 MID-ATLANTIC BUILDER

HBAM Welcomes New Members ASSOCIATES

A Class Hardware & Garage Doors Daniel Wentz Sykesville, MD Phone: 443-865-4965 Supplier - Garage Doors & Organization

EnviroProjects

Maryland Home Improvement Guide

Priority Financial Services

Aaron Keel Severna Park, MD Phone: 410-599-5335 Professional Services - Environmental Services

David Bielecki Forest Hil, MD Phone: 410-937-6866 Professional Services - Publishing & Printing

Jake Smith Baltimore, MD Phone: 410-814-2600 Professional Services - Banking & Mortgage

Sponsor: Shawnn Bittorie, Weichert Realtors - Property Concepts

Sponsor: Cindy Plackmeyer, Cindy Plackmeyer Marketing

Meetlocalbiz.com

ProBuild

Todd Sachs Columbia, MD Phone: 410-599-8323 www.meetlocalbiz.com Professional Services - Advertising & Marketing

Brian Zuhse Gainsville, VA Phone: 703-753-1135 www.probuild.com Supplier - Doors, Windows & Glass Block

MI Windows & Doors/RBR & Sons

Rapid Sign Center

Steve Rehman Owings Mills, MD Phone: 410-356-7772 Supplier - Doors, Windows & Glass Block

Jay Muir Elkridge, MD Phone: 410-579-4545 www.rapidsignmd.com Professional Services - Signs & Displays

Sponsor: Shawnn Bittorie, Weichert Realtors - Property Concepts

Sponsor: Eliot Powell, Whitehall Development, LLC

Academy Mortgage Corp. and The Rosenblatt Group

Essex Bank

Sam Rosenblatt Glen Burnie, MD Phone: 410-375-4447 www.therosenblattgroup.com Professional Services - Banking & Mortgage

Allied Trailer Sales & Rental David Sherman Savage, MD Phone: 301-470-1444 www.alliedtrailers.com Supplier - Mobile Buildings, Storage, Trailers Sponsor: Michael Owings, Owings Brothers Contracting Inc.

At Home Countertops Mike McGuire Columbia, MD Phone: 410-992-8677 Supplier - Cabinets & Countertops

Baltimore Floor Works, Inc. Cletus Neissleim Westminster, MD Phone: 410-239-1912 www.baltimorefloorworks.com Supplier - Flooring

Brick Industry Association Kelly Ewell Reston, VA Phone: 703-674-1535 www.gobrick.com Professional Services - Academic & Training

Buan Consulting Courtney Behrens Annapolis, MD Phone: 410-919-0208 www.buanconsulting.com Professional Services - Communication & IT Sys.

Construction Applicators Chesapeake LLC Gregg Frazier Gaithersburg, MD Phone: 301-355-5183 Subcontractor - Insulation & Drywall

Design Collective, Inc. Dennis Jankiewicz Baltimore, MD Phone: 410-685-6655 www.designcollective.com Professional Services - Architecture & Drafting

Electrolux Scott Wilson Mechanicsville, VA Phone: 443-244-2094 www.electroluxappliances.com Supplier - Appliances

MID-ATLANTIC BUILDER MAY/JUNE 2010

Paul Michaud Crofton, MD Phone: 443-332-4690 www.essexbank.com Professional Services - Banking & Mortgage

Excel Homes Jeff Degen Camp Hill, PA Phone: 717-761-7650 www.excelhomes.com Supplier - Modular Homes

Fletcher Wood Solutions Jud DeHart Annapolis, MD Phone: 443-433-3333 www.fletcherwoodsolutions.com Supplier - Lumber & Millwork

gotugo Chris Meisel Glen Burnie, MD Phone: 410-360-1215 www.gotugo.com Supplier - Waste Management & Disposal

Herbert, Rowland & Grubic, Inc. Jennifer Hendricks Harrisburg, PA Phone: 717-564-1121 www.hrg-inc.com Professional Services - Engineering & Technical

Mid Atlantic Sports LLC Keith Lively Ijamsville, MD Phone: 301-607-4747 www.sport-systems.com Supplier - Swimming Pools & Outdoor Rec.

Milton W. Bosley & Co., Inc. Bosley Wright Glen Burnie, MD Phone: 410-761-7727 www.bosleymouldings.com Supplier - Lumber & Millwork

New Home Development Strategies Brenda Desjardins Annapolis, MD Phone: 410-990-1050 Professional Services Consulting & Customer Svc. Sponsor: Cindy Plackmeyer, Cindy Plackmeyer Marketing

Sponsor: Patrick Costello, Forty West Builders, Inc.

Supreme Windows and Doors Rich Carlson Capital Heights, MD Phone: 301-322-3450 www.supremealuminum.com Supplier - Doors, Windows & Glass Block Sponsor: Joe Gregory, Bob Ward Companies

Thompson Financial Group, LLC Malcolm Bracey Hunt Valley, MD Phone: 410-773-4443 Professional Services - Financial Services

United Marble & Granite Company LLC Stephanie Seger Baltimore, MD Phone: 443-543-0139 www.unitedmg.com Supplier - Stone, Marble & Granite

Homestead Building Systems, Inc.

Norbord Industries

Matt Danner Bristol, VA Phone: 703-331-5600 Sponsor: Rob Mitchell, Bob Ward Companies Supplier - Trusses

Craig Doehner Wake Forest, NC Phone: 919-523-1619 www.norbord.com Supplier - Lumber & Millwork

Weichert Realtors - Property Concepts

Katz Abosch

Northwest Savings Bank

Sponsor: The Chris Rachuba, Rachuba Group

Mark Kelly Timonium, MD Phone: 410-838-5717 www.katzabosch.com Professional Services - Accounting

Mike McAndrew Owings Mills, MD Phone: 410-581-9726 Professional Services - Banking & Mortgage

L. H. Cranston & Sons, Inc. Jeffrey Cummins Hunt Valley, MD Phone: 410-252-7100 www.lhcranston.com Subcontractor - Plumbing

Dennis Oâ&#x20AC;&#x2122;Neil Monkton, MD Phone: 410-864-8911 www.oneilinteractive.com Professional Services Advertising & Marketing

Lansing Building Products

P Four

Michael Murray Baltimore, MD Phone: 410-277-4400 www.lansingbp.com Supplier - Sidin

Shawn Evans Lanham, MD Phone: 301-577-3885 www.pfour.com Professional Services - Advertising & Marketing

ONeil Interactive LLC

Shawnn Bittorie Eldersburg, MD Phone: 410-970-5050 www.wrpropertyconcepts.com Professional Services - Real Estate

BUILDERS

Battaglia Homes LLC Ben Battaglia Bel Air, MD Phone: 410-734-9088 www.battagliahomesllc.com Builder; Builder - Custom Sponsor: Jeff Geddes, Paragon Custom Homes, LLC

Fusion Custom Homes Wes Sims Arnold, MD Phone: 866-981-9191 www.fusioncustomhomes.com Builder; Builder - Custom

www.homebuilders.org

MAY/JUNE 2010 MID-ATLANTIC BUILDER

Goodier Baker Homes Lou Baker Lutherville, MD Phone: 410-365-4807 www.goodierbaker.com Developer

Sponsor: Robert Goodier, Goodier Builders, Inc.

Korey Homes, LLC

Korey Smith Forest Hill, MD Phone: 410-879-1170 www.koreyhomes.com Builder; Builder - Small Volume Sponsor: Dan Murtaugh, Bay National Bank

Lowrey Construction, LLC Ronald Lowrey Woodstock, MD Phone: 410-750-7042 Builder; Builder - Custom

New Boston Fund, Inc. Josh Firebaugh Arlington, VA Phone: 703-945-1102 www.newbostonfund.com Developer

Sponsor: Eliot Powell, Whitehall Development, LLC

OPaL, LLC

Sean Ruppert Lanham, MD Phone: 301-577-3625 www.opaldc.com Builder; Builder - Small Volume Sponsor: Christina Coulter, Ruppert Oâ&#x20AC;&#x2122;Brien Group, LLC

Riley Custom Homes & Renovations John Riley Annapolis, MD Phone: 410-990-1223 www.rileycustom.com Builder; Builder - Custom

REMODELERS

Greenleaf Remodeling

George Brown Lutherville, MD Phone: 410-207-0344 www.greenleafbaltimore.com Remodeler Sponsor: Robert Goodier, Goodier Builders, Inc.

Snyder Home Services

Jim Snyder Owings Mills, MD Phone: 410-363-8283 www.snyderhomeservices.com Remodeler Sponsor: Theresa Leatherbury, The Rachuba Group

Stone & Stucco Tech

Bruce Wagner Ashton, MD Phone: 301-774-7012 www.stone-n-stuccotech.com Remodeler Sponsor: Joseph Smith, CGR, CAPS, CGP, Owings Home Services

The Atlantic Remodeling Corporation Bert Lebhar Baltimore, MD Phone: 410-933-1025 www.atlanticremodeling.com Remodeler

Wallenstein Construction Inc. Arnold Wallenstein Owings Mills, MD Phone: 410-356-6781 www.wallensteinconstruction.com Remodeler

MID-ATLANTIC BUILDER MAY/JUNE 2010

www.homebuilders.org

MAY/JUNE 2010 MID-ATLANTIC BUILDER

HBAM government affairs Stormwater Act of 2007 Timeline HBAM and Industry lobbyists secured a major stormwater management victory in the 2010 General Assembly session by securing grandfathering relief for projects in the pipeline with preliminary approval. The following is a timeline of the events that lead up to the final actions and approvals on April 6, 2010. • 2 007 Legislative Session —Building Industry supported Stormwater Management Act of 2007 with amendments. • July, 2008 —Industry commented on Environmental Community Core Principles document per MDE request. • October, 2008 —MDE formally proposes stormwater regulations and changes to the technical manual. • December, 2008 —The Industry participated in the public hearing on the proposed regulations. • January, 2009 —The industry submitted formal comments on the proposed regulations. • A pril, 2009 —MDE published notice of final action on the regulations. This version of the regulations was effective May 4, 2009. This is the first time the May 4 effective date appears. • May 4, 2009 —The stormwater regulations went into effect. Local jurisdictions were required to submit their draft ordinance by November, 2009 and are required to have the final ordinance in place by May 4, 2010. Regulations required final plan approval by May 4, 2010. • October, 2009 —Maryland Department of Environment Secretary Shari Wilson wrote a letter to the home building industry denying us our request for relief in grandfathering. • January 29, 2010 —HBAM mobilizes grassroots for first stormwater Action Alert, urging the House, Senate and Governor to recognize the need for grandfathering relief and offer solutions during session. • February 2010 —House Bill 1125 introduced to correct grandfathering and redevelopment issues.

MID-ATLANTIC BUILDER MAY/JUNE 2010

• February 24 – March 9, 2010 —participated in a consensus group to draft corrective (grandfathering) language (Chesapeake Bay Foundation, 1000 Friends, Planning Directors – Baltimore County and Howard County, Governor’s Chief of Staff, Speaker Busch staff, NAIOP, MDE, MACO, MML, Delegates Frush, Bobo, Holmes and McIntosh). • March 12, 2010 —MDE issues Emergency Regulations based on consensus agreement. Regulations must be approved by the Joint Administrative, Executive and Legislative Review (AELR) Committee. • March 15, 2010 —AELR Chairman Senator Paul Pinsky announces opposition to new regulations and stalls committee hearing. •M arch 16, 2010 —HBAM launches 2nd grassroots Action Alert to urge AELR committee to hold a hearing and vote on the new regulations. •M arch 17, 2010 —Recognizing that Emergency Regulations are in jeopardy of not passing the AELR Committee, Delegate Holmes amends House Bill 1125 to conform to Consensus Agreement. •M arch 25, 2010 —Amended HB 1125 passes Environmental Matters Committee, 18-5. •M arch 25, 2010 —HBAM launches 3rd grassroots Action Alert to urge all House members to vote YES to the amended HB 1125. •M arch 26, 2010 —Amended HB 1125 passes House of Delegates 127-13, crosses over to Senate Education, Health and Environmental Affairs (EHEA) Committee. • March 30, 2010 —HBAM launches 4th grassroots Action Alert to urge all Senators to vote YES to HB 1125 as passed by the House. • A pril 1, 2010 —AELR Committee Chairman relents and announces AELR Committee will hold hearing on Emergency Regulations. • April 6, 2010 —AELR Committee holds hearing and vote and approves the Emergency Regulations 15-3. • April 12, 2010 —General Assembly reached Sine Die and leaves Annapolis.

Tax Increment Financing On March 16, 2010, the Homebuilding industry scored a major victory in Harford County. By a 6-1 margin, the County Council approved Harford County’s first tax increment financing (TIF) legislation, which helped seal the deal for the long anticipated, and much needed, Beachtree Estates development near Aberdeen Proving Grounds, ground zero for an influx of tens of thousands of BRAC-related jobs in the coming years. The Beechtree Estates is a planned development that includes 371 single-family homes, 397 townhouses and a 94-acre natural resource district. It represents a potential for thousands of jobs in the coming years. The TIF represents a very small portion of the major Harford County development, but in a time of very tight financing, the County’s support — both County Executive David Craig and the County Council — for the legislation helped Turner Development move the project forward in a timely manner. It is the first TIF offered in Harford County. It authorizes the County to issue up to $14 million of special obligation bonds on behalf of Turner Development. This money will help fund a portion of the unusually large development costs – such as roads, water & sewer lines and stormwater management facilities. The most important thing to remember about TIFs is that the bonds (the interest payments and the bond payment themselves) are the responsibility of the developer. It is an attractive financing tool available to local governments because it does not count against the local jurisdiction’s debt limits. The TIF is backed by a special taxing district – a tax imposed on each homeowner within the district, and every potential homebuyer must be informed the homes are part of the special taxing district. n For more information, please contact: Michael Harrison - 410-265-7400, ext. 109 Howard, Baltimore and Carroll Counties michael@homebuilders.org Jeff Tosi - 410-265-7400, ext. 101 Anne Arundel, Harford and Cecil Counties and Baltimore City jeff@homebuilders.org www.homebuilders.org

November 6 & 7, 2010 In our second year, the Maryland Green Show, presented by the Home Builders Association of Maryland, brings motivated consumers together with cutting edge green technology, products, design and experts. The exhibition will feature a strong emphasis on consumer education with three seminar rooms offering over thirty concurrent sessions, two demonstration stages, plus over 100,000 square feet of exhibits. Don’t miss your chance to exhibit in Maryland’s premiere green home and living show. Contact HBAM at 410-265-7400 or visit www.marylandgreenhome.org.

The Maryland 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 MGBC serves as a central hub for consumers going “green”. The MGBC 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 such as the Maryland Green Show, the state’s largest showcase of environmentallyfriendly builders and products. Join the council today by visiting www.marylandgreenbuildingcouncil.org. www.homebuilders.org

MAY/JUNE 2010 MID-ATLANTIC BUILDER

stats&facts

Housing Intelligence: Market Trends By Brooke Burns, Hanley Wood Market Intelligence bburns@hanleywood.com, 202-729-3678

Has the housing industry begun to recover?

Yes, in some areas we are seeing promising signs of recovery! Those positioned correctly, priced right, and in an area where the supply demand ratio is balanced, will see these signs first.

Elementary science: doing your homework = get good grades. and be prepared for upcoming tests. Looking at housing trends we can see there is some rhyme or reason to the economic climate we are in. We were given a test, and unfortunately we were unprepared. Itâ&#x20AC;&#x2122;s as simple as we had too much supply, and not enough demand, and all statistics pointed to this fact. When supply and demand are not in balance, it creates a problem. The good news is; we are getting back to that equilibrium in some areas. For example, in Anne Arundel County there is under 30 months of supply for approved projects within the county, and in Howard county there is only 18 months supply! Good news as spring rolls in; new home sales were up almost 27 percent and existing homes were up almost 7 percent in March. This was marked as the highest monthly increase since 1963. Looking closely at the Baltimore MSA we see that net sales are up by 20 percent for the trailing twelve months and future inventory is down by 10 percent. Single family home sales are up by 25 percent. Looking at just January and Feb of 2010 compared to Jan â&#x20AC;&#x201C; Feb of 2009 we are slightly down in sales, however the cancellation rate is also down. The statistics show that there are signs of improvement and recovery; the buyers out there are more serious and there is less kick outs then in the previous years. Consumer confidence is up leading to an increase in consumer spending. We are in the prime selling seasons now, and will have more good news to report on once final March and April numbers are out! Bottom line: look at the facts, be prepared and position yourself accordingly. Figures are for the for the selected period (March 2009 - February 2010) in Anne Arundel County, Baltimore City, Baltimore County, Carroll County, Harford County and Howard County.

MID-ATLANTIC BUILDER MAY/JUNE 2010

www.homebuilders.org

Current Average Square Feet

Average Price Per Square Foot

By the Numbers

200

Townhouse/Duplex/Plex

27%

-14.59%

250 -5.5%

-8.9% -6.96%

1963

150

2014.8

100

March marked the highest monthly increase in sales since 1963.

Total

2207.2

Total

Condominium

2790.9

Townhouse/ Duplex/Plex

Single Family

18 There is only 18 months of supply approved for projects within Howard County.

Percent Changed March 2009 - February 2010 Same period, prior year

1591.9

New home sales were up almost 27 percent in March.

The statistics show that there are signs of improvement and recovery; the buyers out there are more serious and there is less kick outs then in the previous years.

3,498 Total gross sales for March 2009 - February 2010, a .26 percent decrease from 3,507 in gross sales in the same period of the prior year.

30.4%

Average Minimum Sales Single Family -6.03%

Increase in monthly sales per project from March 2008 - February 2009 to March 2009 - February 2010.

Townhouse/Duplex/Plex -11.19% Condominium -14.36%

Total -8.44%

100,000

200,000

March 2009 - February 2010

www.homebuilders.org

300,000

400,000

Same period, prior year

500,000

600,000

Percent Changed MAY/JUNE 2010 MID-ATLANTIC BUILDER

featuredrecipe Chef Night Featured Recipe Best Appetizer from TW Ellis, LLC

Shrimp Mold 1 can 1 packet 2 8oz. Pkg 1 cup ½ cup ½ cup 2 cans Old Bay

tomato soup Knox gelatin (unflavored) cream cheese mayo chopped celery (finely chopped) chopped onions (finely chopped) small shrimp ( to taste)

In a pan add soup (no milk or water) and gelatin. Heat on low until gelatin is dissolved. Add cream cheese and heat until melted. Then add mayo, old bay, onions, celery and shrimp (drained) in pan. Lightly coat the inside of the entire mold with mayo. Pour mixture in mold and refrigerate at least 2 hours. When ready to serve, loosen mold around the sides and then flip over onto serving platter. Serve with crackers. n

Grow your business with Builder Mart 2011. Wednesday, March 23, 2011

www.homebuilders.org Contact Carey Swift at 410-265-7400, ext. 118 or carey@homebuilders.org.

energyefficiency BGE’s ENERGY STAR® for New Homes can ease adapting to New Codes 2010 ushers us into a new decade and brings with it a new set of IRC codes. The new IRC codes are adopting all of the IECC 2009 codes, which could substantively change the way many homes are built. If you are already building ENERGY STAR homes and participating in BGE’s ENERGY STAR for New Homes Program, adhering to the new codes should not be as much of a challenge. There are three major changes to the new code that are intended to create more efficient homes. These changes include increased efficiency in the thermal envelope, more efficient duct distribution systems, and increased efficiency in lighting. All of these upgrades help improve the HERS Index, or energy efficiency score, of a home. Thermal envelope: Insulation levels in ceilings are being increased to an R-38 value on flat ceilings and R-30 for cathedral ceilings. In addition, air infiltration rates will have to be less than seven air changes per hour. Building a tighter house with better insulation levels is a primary requirement of the ENERGY STAR for New Homes program. Ducts: Under the new code ducts will need to be tested to ensure that they are delivering conditioned air to the proper locations, and not leaking into unconditioned spaces. This will help improve the comfort of all the rooms in the house. According to EPA estimates, under the previous code, most duct systems had between 20 percent to 30 percent leakage rates. New codes specify no more than an 8 percent duct leakage rate to unconditioned spaces. ENERGY STAR qualified homes can’t have more than 6 percent leakage, so adherence to the new codes brings builders closer to earning this EPA label and BGE incentives. Lighting: The new codes require that 50 percent of all light bulbs installed in a house be energy efficient CFL’s. This small requirement will actually help increase the energy efficiency of the house by an average of two points on the HERS Index. The objective of the BGE ENERGY STAR for New Homes Program is to improve the energy efficiency of residential new construction. Our participants are meeting and exceeding the EPA ENERGY STAR guidelines for new homes and therefore are already complying with the aforementioned elements of the new code. We encourage all eligible builders to participate and receive the following incentives: • $400 dollars for each ENERGY STAR home with a HERS Index of < 85; • $800 dollars for each ENERGY STAR home with a HERS Index of < 80; and • $1000 dollars for each ENERGY STAR home with a HERS Index of < 75.

To learn more about the program please visit www.BGESmartEnergy.com. n

MID-ATLANTIC BUILDER MAY/JUNE 2010

www.homebuilders.org

Two Quality Components One Superior Product

Lifetime Warranty on Siding!

25 Year Warranty on Factory Coating!

SPECTRUM SIDING was designedd with ith th the goall offisuperior f performance, stunning aesthetics, and environmental consciousness. • • • • • • •

2 primer coats and 2 finish coats Unbeatable combination of warranties High durability with low maintenance Brilliant curb appeal Environmentally responsible 8 standard colors Ability to match any color preference

Arctic White

Butter Cream

Cottage Grey

Harvest Brown

Irish Moss

River Stone

Sandy Beach

Wheatgrass

09-0182J

www.homebuilders.org

MAY/JUNE 2010 MID-ATLANTIC BUILDER

To build this collection, we went to the best suggestion box of all. Your job site.

The New Marvin Ultimate Casement Window Meet the Ultimate Casement Collection, a revolutionary new line that combines the craftsmanship and innovation you’ve come to expect from Marvin. Inspired by your suggestions, we developed larger sizes and matched them with the industry’s most innovative hardware for unrivaled performance. All that combined with easy installation and a wash mode that allows homeowners to clean their windows from inside makes this new collection truly ultimate. Visit marvincasement.com or call 1-888-553-9988 for a free Ultimate Casement Collection brochure.

MID-ATLANTIC BUILDER MAY/JUNE 2010