NC Builder Spring 2012

The official magazine of the North Carolina Home Builders Association

Vol. 42, No.1 Spring 2012

North Carolina members Take Home Awards at IBS

Features Visit us at booth #834

The official magazine of the North Carolina Home Builders Association

2005 Communicator Award Winner

Dedicated to the advancement of the home building industry, North Carolina Builder (ISSN 1552-8685) is published monthly for the members of the North Carolina Home Builders Association, P.O. Box 99090, Raleigh, N.C. 27624-9090.

(800) 662-7129 • http://www.nchba.com Mike Carpenter Executive Vice President and General Counse l

mcarpenter@nchba.org

Lisa Martin Director of Government Affairs

lmartin@nchba.org

Robert Privott Director of Codes and Construction rprivott@nchba.org Jessica Hayes Director of Political Affairs

jhayes@nchba.org

Kathryn Atkinson Director of Membership Services katkinson@nchba.org Deborah Alford Director of Exhibitions and Education

dalford@nchba.org

Tracie Garrett Director of Exhibitor Services

tgarrett@nchba.org

Kep Paylor Vocational Education

kpaylor@nchba.org

Mike Elledge Controller

melledge@nchba.org

Erin Jones Manager of Political Operations Heather Massengill Director of Communications and Managing Editor

V ol . 42, N o . 1, S pring 2012

Regional Meetings Set Record Attendance________________________ 6 Recap from the International Builders Show_______________________ 9 Golf Tournament Raises Money for College Scholarships____________ 10 Top 10 NCHBA Actions to Help Members in 2011________________ 11 Make Plans to Attend the 21st Century Building Expo & Conference____ 15

Contents

4. President’s Message 13. Code Corner 13. NCHBA News 14. NC BUILD-PAC

ejones@nchba.org

hmassengill@nchba.org

Brittany Weathersbee Assistant Education Coordinator bweathersbee@nchba.org Beth Gray Receptionist

bgray@nchba.org

Publisher Kevin Naughton Graphic Designer Jason Gabel Advertising Sales Manager Brenda Poe Advertising Sales Marsha Suwienski: (800) 935-1592, ext. 106 marshas@wildblue.net Brenda Poe: (800) 935-1592, ext. 115 bpoe@printcomm.com Published by:

2929 Davison Rd., Flint, MI 48506 • (810) 239-5763

On the cover: Acceptance of advertising in North Carolina Builder does not imply endorsement of the product or service by NCHBA. Opinions expressed in articles are those of the authors and people quoted and not necessarily those of NCHBA, nor does mention of specific products in editorial content imply endorsement by NCHBA. No material may be reproduced for further publication without the express permission of the association.

North Carolina Builder is published for the principals and employees of all member firms of the North Carolina Home Builders Association and Affiliated with the Association its receipt is included in the membership fee. North National of Home Builders.

Carolina Builder is published six times per year. Since the mailing list used by North Carolina Builder is compiled according to membership records, address corrections should be directed to your local association. Dues paid to NCHBA are not deductible as charitable contributions for income tax purposes. However, they may be deductible as ordinary and necessary business expenses subject to restrictions imposed as a result of association lobbying activities. NCHBA estimates that the nondeductible portion of your 2012 dues — the portion that is allocable to lobbying — is 39 percent.

2 North Carolina Builder

Right: Several members from North Carolina won awards at the Professional Women in Building Council Awards Luncheon. See page 9 for details.

Middle: The Triangle Sales & Marketing Council wins BEST S&M Council Award for the fourth consecutive year.

Left: Jerry Cowan, an associate member with BMIC and a member of several local HBAs in NC, is presented the Society of Honored Associates award by Rick Judson, NAHB First Vice Chairman and a member of the Charlotte HBA.

NCHBA Calendar 2012 Schedule of Events May 22-23 NCHBA 2nd Quarter Meeting and Legislative Conference, Raleigh

June 5-9 NAHB Spring Board Meeting and Legislative Conference, Washington, D.C.

September 26-28 21st Century Building Expo & Conference, Charlotte

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President’s Message

by Erik Anderson, 2012 NCHBA President

Take advantage of the opportunities in the NCHBA

W

hen Gary Hill, your President-Elect, Kevin he took during the seminar on how to improve his business.

Annas, your first Vice President, and I were At first, he said he felt the information was not going to be meeting last year to discuss various aspects of the useful to him and his business. After he was back at his office NCHBA, one of the items we felt needed to for a week or two, he decided to look back on his notes. He be emphasized was NCHBA’s Mission Statement. If you have decided to start implementing some of the items discussed in ever developed a mission statement, a tremendous amount of the seminar he took (After all, what was there to lose? Doing effort goes into making it. The same was true for NCHBA’s nothing meant more of the same old thing). He soon found Anderson mission statement. When you read it, the statement definitely his business gradually starting to turn around. It was only defines the core reason NCHBA exists. The mission statement is: about five months since he took the class, but he could easily see the NCHBA, the voice of the North Carolina home building industry, is an positive direction his company was going. association of building professionals and related industries working together The second person who spoke with me at the Quarterly to provide safe and affordable housing for the people of North Carolina. We Meeting simply mentioned a discussion he had with another protect the American Dream of home ownership through advocacy, education, builder member. The other builder member was just having, what and professional development. he thought, was a simple discussion about work. But this simple I think this mission statement is excellent. It says exactly what we discussion provided some great ideas for the member I was talking do and it is easy to understand. Short, sweet, and to the point (in case with at the Quarterly Meeting. He also decided to institute some you do not know me, that is the way I like things; it is much easier that of the ideas and is seeing a dramatic change in the success of his way!!). I can promise our members that the leadership and the staff of company in only two months.

NCHBA thoroughly understand our Mission Statement. Everything So what am I discussing here? I am pointing out that not only is NCHBA we do and every action we take is to support the Mission Statement. doing things all the time to support the NCHBA Mission Statement, but Along with “safe and affordable housing” and “advocacy, education, there are numerous opportunities to improve your company in other and professional development,” there are other, more personal, benefits ways. Sometimes the things that completely change your business are the to your membership in the NCHBA. discussions with other members over a lunch or dinner.

While I was at our last NCHBA Quarterly Meeting, I had two Take advantage of the opportunities in the NCHBA to not only separate members speak to me about some things that happened in help your industry, but to help your community, your company, your their companies. One person was talking about a class they took at the employees, and your family. They are there, right in front of you. You 21st Century Building Expo & Conference in Charlotte last year. It have to make the effort to find them. was an hour and a half seminar.The member talked about all the notes Lastly, remember, the one who wins is the one who thinks they can.

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2012 NCHBA Leadership Erik Anderson, President J. Gary Hill, President-Elect Kevin Annas, First Vice President Barry Tutor, Secretary/Treasurer Mike Carpenter, Executive Vice President Bill Daleure, Immediate Past President & NAHB Executive Committee State Rep. Buddy Hughes, NAHB Executive Committee Patrick Mann,Vice President Region I Glenn Morrison,Vice President Region II Chad Collins,Vice President Region III Ralph Doggett,Vice President Region IV 4 North Carolina Builder

Densel Williams,Vice President Region V Brian Pace,Vice President Region VI Rick Tozier,Vice President Region VII Mickey Pruitt,Vice President Region VIII Stoney Story,Vice President Region IX Sean Sullivan,Vice President Region X Kathy Craven-Snodgrass, Presidential Appointee Mike Gerber, Presidential Appointee Jeff Stokley, Presidential Appointee Paulette Frantz, Associates Members Committee Chair Teri Edwards, EO/ES Council President Marily Bunce, NC Professional Women in Building Chair Spring 2012

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North Carolina Builder 5

Executive Vice President’s Message

by Mike Carpenter, NCHBA Executive Vice President

2012 NCHBA Regional Meetings set new attendance record; attendees praise new meeting format

by Mike Carpenter, NCHBA Executive Vice President At each meeting, NCHBA services available to local HBAs he North Carolina Home Builders Association held and members were discussed in detail along with the 2012 its most successful series of ten regional meetings goals of the association. Updates on governmental affairs and ever, from January 23-27, 2012. Breaking last year’s upcoming events, including the 10th edition of 21st Century Building Expo & Conference and the STARS Awards, were remarkable attendance record of 335, a collective total on the agenda of each meeting along with relevant material on of 357 persons attended all ten of this year’s meetings. Some all 2012 NCHBA events and programs.

46 of our 65 local associations were represented by at least one Carpenter attendee. Timely information about NCHBA was imparted at Region 1 each meeting locale during the first hour. This part of the program featured a PowerPoint presentation with five live speakers.

Each attendee received a CD containing more detailed information which, in years past, had been provided in a notebook. This new format, endorsed by the NCHBA Executive Committee during its 2012 Retreat, shortened the overall program substantially and was met with much praise from the attendees.

The first hour was then followed by a program unique to each region chosen by that region’s RegionalVice President.These programs varied by region: from a general discussion of statewide, regional and local issues of interest in some to the presentations of a guest speaker At Region I Vice President Patrick Mann’s meeting on in others. For example, the Region VI meeting in Charlotte included January 24 in Jacksonville at the Courthouse Cafe, a total of 47 people an impressive panel of six legislators, including the Speaker of the NC attended (41 HBA members and six in the traveling party: officers, House of Representatives, Thom Tillis. staff, and BMIC). All seven of the region’s HBAs were represented: Before briefly summarizing the highlights of each meeting, I Onslow Co., Brunswick Co., Craven-Pamlico Cos., Carteret Co., would like to extend NCHBA’s sincere appreciation to Builders Kinston, Wayne Co., and Wilmington-Cape Fear HBA. Region I was Mutual Insurance Company for its sponsorship of all ten of these the only region in 2012 to garner attendance from 100% of its locals. meetings and the participation of Mike Gerber, Brad Moock, Among the major issues discussed were: new ideas for Spike John Parrish, Mel Whitener, Jerry Cowan, and Katie Mariani recognition, raising member morale, and the impact of foreclosures on in one or more of them. Builders Mutual is our longstanding partner the market. This discussion was followed by a presentation on BASE in providing the very best of services to our members and these

by Donna Girardot,Tyler Newman and Cameron Moore. Dave Smith, regional meetings are but the latest example of BMIC’s continuing a member of the NC State Building Code Council, and a member of commitment to this partnership. the Wilmington Cape Fear HBA, gave an update on timely building As well, the Legislative Panel presentation in Charlotte was code matters. sponsored by 2-10 Home Buyers Warranty and Piedmont Natural Gas in addition to BMIC. Thanks for your support!

Region 2 Also, I would like to thank the NCHBA senior officers Erik Anderson, Gary Hill, Kevin Annas, Barry Tutor and Bill Daleure —for devoting a week out of their busy schedules to help lead these meetings from the mountains to the coast. This year, for the most part, Erik and Gary went East and Kevin and Bill traveled West with Barry hitting meetings on both sides of the state. Their eager participation vividly demonstrated to our local HBAs the dedication to, and passion for, our association and industry that each of these gentlemen brings to their respective offices.

Due to recent back surgery, Region II Vice President Glenn I would also like to thank the NCHBA staff who traveled to Morrison was unable to attend this meeting. However, his absence one or more of the meetings: Kathryn Atkinson, Heather did not deter excellent participation by his local associations. A total of Massengill, and Lisa Martin. In particular, Kathryn and 40 people, including seven in the traveling party, attended the meeting Heather deserve special recognition for the many hours both in Williamston on Jan. 23 at the Sunny Side Oyster Bar. Five of the spent in preparing the popular PowerPoint presentation but also the region’s seven local HBAs were represented including: Greenville-Pitt CD that each participant received.This CD is a wonderful resource for County, Roanoke Valley, Rocky Mount, Northeastern North Carolina our local HBA leadership to explain and categorize the many services and Outer Banks. This year’s attendance more than doubled the 2011 NCHBA offers. Finally, I would also thank our outstanding group of turn out.

2012 Regional Vice Presidents for their planning and execution of Major issues the group discussed included: progress on NCHBA & these meetings.

NAHB action to address the AD&C crisis, information and strategies

T

6 North Carolina Builder

Spring 2012

to employ with appraisal issues, ideas to increase attendance at local meetings, and suggestions to hold NCBI classes on a regional basis.

Mike Brown of the NC Licensing Board for General Contractors spoke on the implementation of NCHBA’s new law to end the abuse of the “owner exception.”

Region 3

Ouellette, Legal Counsel for the North Carolina Appraisal Board.

Commissioner Smith discussed the lack of credit available to builders and small businesses while Ms. Ouellette discussed the current rules and regulations for appraisers and appraisals. Builders across North Carolina are having a difficult time obtaining financing for projects, due in large part to federal banking oversight which we believe is overbearing. While Commissioner Smith was sympathetic, he could not provide immediate answers. He asked that attendees send him specific information on the credit needs in the community as well as personal stories from members unable to obtain the financing that they need to do business. On the appraisal end, Ms. Ouellette addressed questions regarding what builders can and cannot do with regards to securing a geographically competent appraiser and providing them with information that would help to make the appraisal more accurate.

She provided her contact information for anyone with questions.

Region 6 In Region III, Vice President Chad Collins reported that six of his region’s eight HBAs were represented at the meeting held Jan. 27 at the Builders First Center in Raleigh. A great crowd of 55 people attended from the HBAs of Durham, Orange & Chatham Cos., Franklin Co., Johnston Co., Raleigh-Wake Co., Harnett Co., and Wilson Co. The second hour of the program was devoted to a presentation on the NC Lead Based Paint Hazard Management Program. Don Chaney, Industrial Hygienist from NCDHHS, was the featured speaker. This informative program generated many questions and much discussion.

Region 4

At Region IV Vice President Ralph Doggett’s meeting Jan. 26 at The Cutting Board in Burlington, three of five of his region’s HBAs were represented: Alamance-Caswell Counties, Greensboro BA, and High Point.

A total of twenty attendees (13 HBA members plus seven in the traveling party) had an informative discussion whose focus was on lending and appraisal issues. Erik Anderson summarized the presentations at the Region 5 meeting (see below) and Rick Judson’s efforts on the national level regarding the AD&C lending crisis.

Six of the region’s seven HBAs were represented at the Region VI meeting, according to Vice President Brian Pace. Fifty-seven (57) attendees composed of six members of the traveling party, six legislators, and two guests joined 43 HBA members from the Cabarrus Co., Charlotte, Gaston Co., Lake Norman, Salisbury-Rowan Co., and the Union Co. HBAs at the meeting on Jan. 27 at the NASCAR Hall of Fame in Charlotte.

The meeting was highlighted by a legislative panel which included: Rep. Tom Tillis (the current Speaker of the NC House of Representatives), Sen. Bob Rucho (the co-chair of the Senate Finance Committee), Rep. Bill Brawley, Rep. Rodney Moore, Rep. Tim Moffitt, and Sen. Tommy Tucker (an NCHBA member from Union Co.). This panel responded to questions posed by Mike Carpenter regarding several priority issues on NCHBA’s 2012 Legislative Agenda.

These issues include enacting SB 731 (Zoning/Design & Aesthetic Controls), enactment of meaningful and equitable unemployment insurance reform, enactment of a dedicated funding source for the Housing Trust Fund (SB 462/HB 574), and enactment of a law which would restore uniformity to code inspection by limiting inspections to those set forth in the NC Residential Building Code. The panel was very receptive to NCHBA’s positions on these issues and indicated support for our efforts.

Region 7

Region 5

In Region V, Vice President Densel Williams reported that 41 attendees (32 members plus seven in the traveling party and two speakers) met at the offices of the Moore Co. HBA in Aberdeen on Jan. 25. Four of the region’s six HBAs were represented: Fayetteville, Richmond Co., Columbus Co, and Moore Co. During the second hour of the meeting, attendees heard from Joseph Smith, North Carolina Commissioner of Banks, and Roberta Spring 2012

In Region VII, Vice President Rick Tozier welcomed the participation of four of his six locals: Davidson Co., Davie Co., Asheboro-Randolph Co., and the Winston-Salem HBAs to the Deacon Tower, BB&T Field in Winston-Salem on Jan. 26. Thirteen (See Executive Vice President on page 8) North Carolina Builder 7

Executive Vice President’s Message (continued from page 7) HBA members joined seven in the traveling party and two speakers for a total attendance of twenty-two.

In the second hour, the group heard a presentation from Meredith Oliver of WOW Communications who provided an excellent program on the importance of social networking and internet marketing for builders.

Region 8

Region VIII Vice President Mickey Pruitt arranged this meeting at an excellent location: the Brushy Mountain Smokehouse in North Wilkesboro. Five out of the six locals in this region attended the meeting held on Jan. 25. A total of 19 members from the HBAs of Ashe Co., Hickory-Catawba Valley, Iredell Co., Lincoln Co. and Wilkes-Yadkin Counties joined seven in the traveling party for a total attendance of 26 persons.

In the second hour of the program, the group discussed ideas for fundraising, including Ashe County’s recent very successful gun show, consolidating golf tournaments and skeet shooting tournaments.

Several attendees reported a severe delay in receiving septic permits.

Financing for projects was also discussed.

members and seven in the traveling party) gathered for the meeting Jan. 23 at Lion’s Crest on the Biltmore Estate. The following HBAs were well represented at the meeting: Asheville, Haywood Co., Jackson Co., and Hendersonville.

In the second hour of the program, the discussion centered on pre-requisite education for general contractor licensees, continuing education, NAHB dues structure, and the importance of NC BUILDPAC. In addition, each HBA present shared some of the things they were doing that were successful in 2011. Ideas included changing the structure/location of membership meetings to make them more exciting and focusing on peer-to-peer communication to make members feel welcome and a part of the association.

In summary, 46 of the sixty-five local HBAs (71%) were represented at the 10 regional meetings. More importantly, however, these 46 locals represented almost 90% of our statewide membership.

Our leadership and staff will continue to work on the issues discussed at the meetings which require our further attention. Thanks to all who attended and participated. Your participation has helped us sharpen our focus on issues important to the grassroots. I hope to see you at our 2nd Quarter Meeting and Legislative Conference in Raleigh May 22-23. In addition to regularly scheduled committee and board meetings, we will visit our legislators both informally at the Legislative Reception the evening of May 22 and more formally in their Legislative Offices the morning of May 23. It’s an experience you don’t want to miss.

Region 9

According to Region IX Vice President Stoney Story, a total of 25 people attended his meeting at the Silver Creek Plantation near Morganton on Jan. 24 (16 members and eight in the traveling party and one speaker). Members from two of the region’s local associations (the Caldwell Co. and Western Piedmont) were represented.

Rep. Hugh Blackwell gave attendees a recap of some of the bills that passed in the 2011 legislative session, in addition to some agenda items for 2012 that may impact the housing industry and small business. In addition, the group discussed the abuse of the unemployment system and problems with collecting money due from clients.

Region 10 Region X saw four of its seven local HBAs attend according to Vice President Sean Sullivan. Thirty-three attendees (26 HBA

8 North Carolina Builder

Spring 2012

Recap from the International Builders’ Show NCHBA members honored at IBS

C

ongratulations to all of the North Carolina HBAs and members who took home awards at the International Builders’ Show in Orlando February 7-11.

The Nationals

Outstanding Membership Benefits & Services Program • HBA of Durham, Orange & Chatham PWB Council – 1st Place in Size Category • Onslow Co. HBA – 2nd Place in Size Category

National Sales & Marketing Bill Molster Award • Tammie Smoot, The BDX, Cary, N.C.

Outstanding Membership Recruitment & Retention Program • HBA of Durham, Orange & Chatham PWB Council – 2nd Place in Size Category

Sales Manager Team of the Year • Christy Beck, Coldwell Banker; Howard Perry & Walston Builder Services, Wake Forest, N.C.

Outstanding Community Outreach Program • Onslow Co. HBA – 1st Place in Size Category

Sales Team of the Year • Karen Evans & Lisa Briddle; Churchill-Royal Oaks Building Group; Knightdale, N.C.

Professional Remodeler’s Council

Sales and Marketing Council (SMC) Of The Year • Triangle Sales & Marketing Council of North Carolina, Raleigh, N.C. Print Campaign • True Homes, Monroe, N.C. Building Industry Community Spirit • Hero Home Finale – Operation Coming Home, H BA of Raleigh-Wake Co. • Philanthropic Partnership between Eastwood Homes and the Levine Children’s Home, Charlotte, N.C. Design Center (Silver) • Eastwood Homes Marketing Program by an Associate (Silver Winners) • BDX Green Features Wall Mural for M/I Homes, Chapel Hill, N.C. • Huber Engineered Woods, Charlotte, N.C. Architectural Design – Detached 2500 ft – 3499 ft • Catalina @ Robbins Park, Classica Homes, Charlotte

NC Professional Women in Building Woman of the Year • Tammie Smoot, The BDX, Cary, N.C. Member-at-Large of the Year • Judy Dinelle, 84 Lumber, Asheville, N.C. Council Member of the Year • Marilyn Bunce, Town & Country Building, Richlands, N.C. Spring 2012

Membership Contest – 1st Place for size category • HBA of Durham, Orange & Chatham Remodeler’s Council

Jerry Rouleau Awards for Excellence in Marketing and Home Design • HandCrafted Homes and builder Tony Hirst, Excellence in Modular Home Design 3,001 – 4,000 sq. ft.

• HandCrafted Homes, Honorable Mention Excellence in Modular Home Design greater than 4,001 sq. ft.

We would also like to recognize our members who are taking a leadership position at NAHB in 2012: • NAHB First Vice Chairman – Rick Judson • NAHB Second Vice Chairman and Treasurer – Kevin Kelly • National Executive Officer Vice President – Tim Minton

Associates Committee NAHB Society of Honored Associates • Jerry Cowan, Builders Mutual Insurance Co., Greensboro, N.C.

Best of the 50+ Housing Awards Best Repositioned Project • WhiteStone, Greensboro, N.C. Developer/Builder: LCS Development Architect: AG Architecture

Education Awards Sales and Marketing Educator of the Year • Gian Hasbrock, CGP, CMP, CSP, Master CSP, MIRM, a new home counselor for Beazer Homes, Durham, N.C. Graduate Master Builder (GMB) of the Year • Daniel Adams, CGB, CGP, GMB, president of Daniel Adams Construction, Pinehurst, N.C. Master Certified Green Professional (Master CGP) of the Year • Michael Chandler, CGB, CGP, Master CGP, president of Chandler Design-Build, Mebane, N.C. Master in Residential Marketing (MIRM) of the Year • Gaye Burwell Orr, CMP, MIRM, president and partner of Coldwell Banker Advantage New Homes, Raleigh, N.C.

North Carolina Builder 9

Builder Classic Golf Tournament to raise money for college scholarships

T

April 27

he North Carolina Home Builders Educational & Charitable Foundation will present the Builder Classic Golf Tournament April 27 at Bryan Park Golf Club in Greensboro to raise 8:30 a.m. shotgun start funds for scholarships to college students of HBA members majoring in a constructionrelated field.

Bryan Park Golf Club All proceeds from the annual Builder Classic Golf Tournament go towards scholarships Greensboro, N.C. for family members of NCHBA members. In 2011, the foundation awarded $10,500 to four $100 player, which college students. includes green fees, cart fees, In these challenging economic times, these scholarships are more valuable to our members beverages, and lunch than ever. NCHBA counts on your support of the NCHBECF Golf Tournament to continue to provide this member benefit.

To add another element of fun to the tournament, we will also hold the annual President’s Cup Challenge. This challenge is a “tournament within a tournament” for teams with current and past presidents of any level of the federation. Teams with local, state or national presidents will compete for bragging rights and the coveted trophy to be awarded at the 2nd Quarter Board Meeting.

Sponsorships Available In addition to playing in the tournament, sponsorships are available to help raise funds for the scholarship program.

• Hole Sponsors—Includes a sign at the hole of your choice and a company representative at the tee box to meet golfers. $250/hole • Green Sponsors—Includes a sign at the green of your choice. $100/hole • Door Prizes—Help us thank our golfers for their support with a door prize donation. Examples include gift cards, weekend getaways, golf equipment, tools, small appliances, etc.

• Goodie Bag Items—Each golfer will receive a goodie bag to thank them for their support. Examples include tees, golf balls, koozies, hats, fans, towels, etc. We ask that you consider a donation of 100 of each item.

• Registration Desk Sponsor—Greet players as they check-in for the day. Includes a sign at the registration desk. $250 (one available) • Beverage Cart—Sponsor the ever-popular beverage and snack cart that circulates the course during play. $750 (one available) Contact Deborah Alford at dalford@nchba.org or 1-800-662-7129 for more information about the golf tournament, scholarship program or sponsorship opportunities.

Conference:

September 26 – 28, 2012 Exhibits:

September 27 – 28, 2012

AN

or contact the NCHBA office at 1-800-662-7129.

21st Century Building Expo & Conference

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Download a registration form at www.nchba.org,

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for your future www.21BuildingExpo.com • 1-800-662-7129 Charlotte Convention Center, Charlotte, NC Spring 2012

Top 10 NCHBA actions to benefit our members in 2011 1. Codified Compromise Victory on Energy Efficiency Mandates —Last December NCHBA won a major victory when the NC Building Code Council rejected a number of proposed code changes purporting to increase residential energy-efficiency by 30%. Instead, the Council approved a compromise, which NCHBA had negotiated with Governor Beverly Perdue, which adopted the 2009 International Residential Energy Code requirements (with NC amendments) designed to increase residential energy efficiency by approximately 15%. These costs were to be offset by elimination of unnecessary existing code requirements. NCHBA proposed a list of code provision candidates for elimination to achieve the estimated $3,000 cost of complying with the 15% requirement which were adopted by the Council. During the 2011 Session, HB 801 (Building Code Revisions/ Modify Legislative Review) was enacted to codify this comprise into law.

COST SAVINGS in defeating the original 30% mandate: $9,718 (on 1,600 sq. ft. house); when coupled with NCHBA’s successful effort to defeat the residential sprinkler proposal before the Council last December (at an estimated cost of $7,000-$21,000 per house), the TOTAL COST SAVINGS arising from the defeat of both proposals: $16,000-$30,000 per house.

2. Continued to Lead Effort to Make Solving the AD&C Credit Crisis NAHB’s Number One Priority

4. Repealed Land Transfer Tax Referendum Authority —HB 92 (Repeal Land Transfer Tax) was enacted which removes provision inserted into 2007 state budget conference report allowing counties to hold referenda seeking voter approval to levy a .4 of 1 % land transfer tax; 24 elections were held in 22 counties and the voters rejected this home tax in every case; campaigns to defeat were very costly to NCHBA and NCAR; passage of this act ends this bad idea.

COST SAVINGS: Literally millions statewide had these, and future, referenda passed; substantial future savings to NCHBA Issues Mobilization Fund.

NCHBA led a broad business coalition in proposing, lobbying for and overcoming a gubernatorial veto to enact this sweeping regulatory reform

—Last September, the NCHBA Board of Directors unanimously adopted a resolution calling on NAHB to make solving the ongoing AD&C credit crisis NAHB’s number one priority. Lyle Gardner, 2010 NCHBA President, led a successful effort by a coalition of states (NC, TX, NJ & SC) during the 2010 NAHB Fall Board Meeting in New York to get this resolution enacted by the NAHB Board of Directors. In response, NAHB drafted H.R. 1755 (Home Construction Regulatory Improvement Act of 2011) and sought to have it introduced. In order for this legislation to be seriously considered, strong bi-partisan co-sponsors had to be obtained. NCHBA was successful in enlisting Congressman Brad Miller (D-NC-13th District) to join forces with Congressman Gary Miller (R-CA-42nd District) as the principal sponsors of this legislation which would ease the regulatory burden on sound lenders and allow them to make good AD&C loans. While this legislation has not yet been heard in committee, a strong NAHB grass-roots effort has produced broad bi-partisan support with currently 81 House cosponsors. No COST SAVINGS intended; instead, the goal of this effort is to unfreeze credit so that our builders can survive.

3. Defended Challenges in the Supreme Court of North Carolina to APFO Victories in Lower Courts —Last October, the NC Supreme Court denied Union County’s petition for it to review the December 2009 decision of the NC Court of Appeals that struck down Union County’s APFO. The Court of Appeals ruled that the General Assembly had never authorized local governments to impose an APFO nor had they allowed local governments to shift the burden of paying for public schools from the public to our industry. This case was initiated and financed by Spring 2012

the NCHBA Legal Action Fund. Citing our Union County decision as controlling authority, the Court of Appeals, in separate cases, also struck down similar ordinances adopted by Cabarrus County and the Town of Cary and required all fees collected to be refunded with interest. However, in June of 2011, the Supreme Court decided to hear these two latter cases. NCHBA joined these cases and filed amicus briefs to preserve our Union County victory. Oral arguments were heard on 10/17/11. The Supreme Court has already ruled against the Town of Cary and we expect to win the Cabarrus case as well. COST SAVINGS: Literally millions of current and future dollars as this illegal practice was spreading across NC; the cost savings in Union County alone was $16,000 per house.

5. Led Business Coalition to Major Reform of Workers’ Comp Laws

—NCHBA, NC Chamber, and NC Retail Merchants led a business coalition of more than 80 businesses and business organizations to the first major comprehensive reform of the workers’ comp laws in more than two decades; key elements included: reform of Industrial Commission; cap on temporary total disability payments; redefines “suitable employment” to encourage return to work; and improves employer access to employee medical records. COST SAVINGS: Millions of dollars to employers over the next decade.

6. Led Business Coalition in Enactment of Sweeping Regulatory Reform Act —NCHBA led a broad business coalition in proposing, lobbying for, and overcoming a gubernatorial veto to enact this sweeping regulatory reform act (SB 781) by amending the rulemaking and administrative hearing provisions of the Administrative Procedures Act. Highlights include: ending abuse by agencies in adopting “policies” to avoid rulemaking; no state rule can be more restrictive than imposed by federal law; reduces financial threshold triggering preparation of fiscal notes by agencies and requiring that notes be available prior to public hearings; rules must be based on sound science and objective of rule must be achieved in most “cost-effective and timely manner”; contested case reforms including removing ability of agency to overrule decisions in favor of citizens issued by administrative law judges; extends life of certain state environment permits to 8 years.

COST SAVINGS: Millions of dollars to our members, other employers, and to the public.

(See NCHBA Actions on page 12) North Carolina Builder 11

NCHBA Actions (continued from page 11)

7. End Abuse of “Owner Exception” to General Contractor License —NCHBA sought introduction of, and successfully lobbied for, a bill (HB 648) which requires verified affidavit of owner seeking to build on his or own property without a license and requires Licensing Board to verify that the owner is actually the contractor; also extends period from 2 to 4 years for inactive license to be renewed without taking exam.

No COST SAVINGS intended; instead, the goal is to end abuse by unlicensed contractors soliciting owners to “pull permits” and to allow contractors a longer period to reinstate an inactive license without retaking the exam.

8. Secured Major Property Rights & Land Use Victories —Successfully sought enactment of several bills including: HB 806 (Zoning St. of Limit./Ag. Dist. Change) which retains the existing two-month statute of limitations to

challenge rezoning while expanding the statute of limitations for constitutional or other legal challenges to zoning ordinance adoption or text changes; and prohibits counties from using backdoor zoning to prohibit 10-acre-lot subdivisions not subject to subdivision regulation. HB 332 (Clarify Development Moratoria Authority) ends abuse of moratoria authority as a planning tool by prohibiting moratoria on residential uses. HB 687 (Atty Fees/City or County Action Outside Authority) allows attorneys fees to citizen who successfully sues local government for acting outside scope of its legal authority; fees mandatory if court finds local government action was abuse of authority. HB 750 (Stormwater Best Management Practices) requires DENR to accept developer transfer of stormwater devices to home owners association (HOA). No COST SAVINGS intended; instead, the goal of these bills was to remove major obstacle to challenge illegal ordinances and allow for attorneys fees if successful; end moratoria abuse; and to require DENR to approve transfer of stormwater devices to HOAs.

9. Protected Members Lien Rights —In cooperation with other major industry groups, NCHBA stopped a radical rewrite of lien laws which would have diminished protections of existing law for general contractors, subcontractors, and suppliers; bill turned into a study. COST SAVINGS: Millions of dollars in preserving lien rights for all segments of our industry.

10. Stopped or Amended Other Bad Bills and Ideas —Among other bills which NCHBA successfully opposed or amended during this session were the following: HB 36 (Employers & Local Governments Must Use E-Verify) amended to exempt employers with fewer than 25 employees from mandatory use of E-Verify; removed all unfavorable provisions from HB 165 (Planned Community & Condo Act Amendments); sidetracked HB 454 (ERC to Study Construction on Slopes) and it was not included as authorized topic in studies bill; several bad local bills were defeated or not calendared (e.g., one seeking tree ordinance authority, another seeking to enact local energy code; etc.); a bad idea which first appeared in the last session resurfaced in this one—a proposal to apply the franchise tax to limited liability entities which many of our members use to hold land for development purposes; this idea was eliminated from the leadership’s list. Millions in COST SAVINGS to our members.

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Spring 2012

NCHBA News Kudos to NCHBA Members

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ongratulations to J. Gary Hill who received the Greensboro Builder Association’s prestigious Eugene Gulledge Award, which honors longstanding contributions to the builders association, housing industry and community. Hill becomes the only member to receive the honor two times. He currently serves as President-Elect of NCHBA. All-Things-Wood.com, a cabinet, deck and hardwood floor refinishing contractor in Winston-Salem, announced recently that they have received official notice that they are the first home improvement contractor to be MADE IN USA CERTIFIED®. They are a member of the Winston-Salem HBA. Made-in-USA Certified, Inc. (www.usa-c. com) is the leader in independent third party assurance verification for genuine Made-In-USA products and services.

Builders Eligible for Rebates NCHBA is pleased to announce a new member rebate program that puts money back in the pockets of our builder and remodelers members. As a thank you for your loyalty to more than 35 participating manufacturers, you will receive a quarterly rebate check. Simply visit www.hbarebates.com/ nchba.html for more information and to sign up.Your HBA membership must be current to qualify. Questions should be directed to Rich@ HBARebates.com.

21CBEC Accepting Exhibitors How can you market your products and services to more than 3,500 builders, remodelers, architects and other members of the home building industry in just two days? Sign up to exhibit in the 21st Century Building Expo & Conference, the leading tradeshow for the residential construction industry in the Southeastern US. Mark your calendars

for September 26-28, 2012, at the Charlotte Convention Center. A virtual floor plan, booth contract, list of exhibitors and more is found on www.21buildingexpo.com. Contact Tracie Garrett at tgarrett@ nchba.org or 1-800-662-7129 for more information.

College Scholarships Available for Members The North Carolina Home Builders Educational & Charitable Foundation, Inc. is accepting applications for its college scholarships through April 30, 2012. The foundation awards scholarships based on a combination of need and merit to four-year college students entering their junior or senior year and technical school students entering their second year who have declared their major in a construction related field. Students must be immediate family members of NCHBA member firms, related by blood, (i.e. children, step-children or grandchildren).

For more information about the eligibility requirements, in addition to the application packet, please visit www.nchba.org and click on Member Dashboard. Contact Deborah Alford at dalford@nchba.org or 1-800-662-7129 for more information.

Make Plans to Attend the NCHBA Legislative Conference May 22-23 The NCHBA Legislative Conference, held in conjunction with the 2nd Quarter Board & Committee Meetings, is your chance to lobby your Senators and Representatives on the issues that face your business. A good crowd gets their attention, so we need your support and attendance May 22-23 in Raleigh.

Committee meetings and the NCHBA Board Meeting will be held May 22 at the Sheraton Hotel in downtown Raleigh, followed by an evening reception for legislators and members. On May 23, we will visit legislators in their offices for a more formal discussion of our priorities. Register to attend online at http:// www.nchba.org/wp/events/quarterly-meetings-sign-up/.

Code Corner

by Robert Privott, Director of Codes and Construction

NCHBA provides resources for code changes

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uring this year’s session of the General Assembly, Session Law (SL) 2011-269 was enacted setting a mandatory compliance date for the 2012 NC Residential Code and 2012 Energy Conservation Code of March 1, 2012. At the time of the writing of this column, the publisher does not have the 2012 NC Residential Code in print. This requires the construction community to comply with several adopted code provisions on or after March 1, 2012, that are not Privott currently available in a traditional code book.

Despite the fact that the 2012 NC Residential Code books are unavailable, builders and code enforcement officials can discover the necessary information at the websites listed below. This information can be combined to determine the new requirements of the 2012 NC Residential Building Code once it is published.

1. The 2012 NC Residential Building Code is found online at: http://bit.ly/wBdM3y 2. The entire 2012 NC Residential Code Chapter 11 Energy Efficiency can be accessed at: http://bit.ly/w3nhTa 3. NCHBA staff has prepared a summary of the changes from the 2009 to the 2012 North Carolina Residential Code, which can be viewed at the Member Dashboard section of the NCHBA website at http://www.nchba.org/wp/. E-mail hmassengill@nchba.org for the password.

Spring 2012

4. The N.C. Department of Insurance has also posted a summary of the changes from the 2009 to the 2012 North Carolina Residential Code on their website. It is available at http://www. ncdoi.com/OSFM/Engineering/engineering_home.asp Remember, building permits issued prior to March 1, 2012, do not have to comply with the requirements that become mandatory on March 1.

In summary, the 2012 North Carolina Codes will move forward with the following enforcement dates:

Code Effective Dates Code

Optional Effective Date

Mandatory Enforcement Date

Building Residential Mechanical Plumbing Fuel Gas Fire Prevention Energy Conservation Law and Administration Electrical

Sept. 1, 2011 Jan. 1, 2011 Sept. 1, 2011 Sept. 1, 2011 Sept. 1, 2011 Sept. 1, 2011 Jan. 1, 2011 Jan. 1, 2011 N/A

June 1, 2012 March 1, 2012 June 1, 2012 June 1, 2012 June 1, 2012 June 1, 2012 March 1, 2012 June 1, 2012 N/A

North Carolina Builder 13

NC BUILD-PAC

Donate to

NC BUILD-PAC M

ay is NC BUILD-PAC month! Throughout the month of May, local associations will be competing against each other to see who can raise the most money and have the highest participation for NC BUILD-PAC. Local associations are broken down into four groups based on their 2011 fundraising totals.

This promotes friendly competition among similarly sized associations. Prizes will be awarded for each category. The categories are: • Highest percentage of member participation between May 1 – May 31 • Highest percentage of goal raised between May 1 – May 31 • Most new contributors* between May 1 – May 31 Remember that for every dollar given to NC BUILD-PAC, 30 cents goes directly into the local reserve account of your local association.

This year we are again focused on broadening participation in NC BUILD-PAC—it is our hope to get at least $10 from each member from every association for this important advocacy program. If you have ever thought about supporting NC BUILD-PAC, this is the month and the time to do it! Contact your local association to find out more about what they are doing to raise money for NC BUILD-PAC and how you can help! * A new NC BUILD-PAC contributor is defined as an individual who has not given to NC BUILD-PAC in the previous five years (May 1, 2007 – April 30, 2012).The NC State Board of Elections reporting software will be the source of information.

in May

All contributions including checks and credit cards must be from your personal account. By law we cannot accept company/ corporate checks.

Make checks payable to: NC BUILD-PAC Please mail contributions to: NC BUILD-PAC P.O. Box 99090 Raleigh, NC 27624.

Donate Now! My payment is by:

q Personal Check (Payable “NC BUILD-PAC”)

q Personal Credit Card

Amount: $______________________________________________________________________________________________ Name:_________________________________________________ Local HBA:_______________________________________ *Address:_____________________________________________ City_________________________ State_______ Zip________ Employer/Company Name:_________________________________________________________________________________ Job Title/Profession: ______________________________________________________________________________________ Phone:_____________________________________________________ Email:_______________________________________ Please complete all requested information below to process credit card charges: *Above address needs to be the credit card billing address in order to be processed.

Credit card (please check one): q VISA q MASTERCARD q AMERICAN EXPRESS Card #:__________________________________________________ Exp. Date:_______________________________________ Cardholder:_____________________________________________________________________________________________ Signature: ______________________________________________________________________________________________ 14 North Carolina Builder

Spring 2012

Make plans to attend the 21st Century Building Expo & Conference

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egistration for the Southeast’s premier home building tradeshow, the 21st Century Building Expo & Conference, will open in mid-April. We invite builders, remodelers, subcontractors, realtors and other industry professionals to attend the 21CBEC in Charlotte, N.C. September 26-28, 2012.

The 21CBEC is your chance to see a large array of the products and services available from the industry’s leading manufacturers and suppliers.

In addition, a three-day educational conference includes a line-up of more than 50 general session seminars, North Carolina Builder Institute courses and NAHB Education classes.

REGISTRATION INFORMATION • Expo floor only—$10.Visit the exhibit hall filled with more than 150 exhibits showcasing products and services for the home building industry. The Expo floor will be open September 27 & 28.

Fee increases to $25 after Sept. 25.

• Full Delegate—$85. Register as a full delegate and attend an unlimited number of our carefully selected general session seminars.

Learn about the new residential building code, the Energy Star program, marketing techniques, how to target women buyers and much more! The $85 fee also includes conference lunches on Thursday and Friday and Expo floor access. Fee increases to $100 after Sept. 25.

• NCBI/NAHB Course—Fee varies depending on course. If you are working on an NAHB or NCBI designation, the 21CBEC offers three days of courses to help get you well on your way. Course fee includes course materials, unlimited general session seminars, conference lunches on Thursday and Friday, and the Expo floor.

EDUCATIONAL CONFERENCE SCHEDULE NC Builder Institute Courses • • • • • • • • • • • • • • •

BM201 Basic Business Planning—Margaret O’Brien BM306 (NEW) Negotiating for Builders—Steve Monroe BT103 Best Practices—Dan McFarland BT104 (NEW) Expanded Engineering Course—Steve Knight BT203 Building Energy Codes: An Introduction—Robert Privott BT204 (NEW) Expanded Engineering Course—Steve Knight CS101 Planning for Outstanding Service—Wallace West CS202 Building Quality In: A Foundation for Builders and Remodelers—Margaret O’Brien CS203 Warranty: Keys to Warranty Service—Wallace West DV301 Making a Development Deal Work—Greg Isenhour DV302 Remodeling Can Be Fun—Greg Isenhour DV303 Commercial Construction—Greg Isenhour PM102 Take Off To Higher Profits—Erik Anderson PM105 Safety Pays—Sean Purcell PM107 Building Codes—Robert Privott

Spring 2012

• PM202 What Does It Really Cost?—Erik Anderson • BT205 (NEW) Advanced Residential Wind Bracing—Steve Knight • NEW Remodeling Course(s) to be presented at the Expo- Erik Anderson *A new remodeling designation is under development.

Requirements and further details will be available on the NCBI website. http://www.nchba.org/wp/education/ncbi-designations/ NAHB Courses • Advanced Green Building: Project Management Part 1 & 2— Michael Strong • Business Management—Michael Strong • Design/Build Solutions for Aging & Accessibility (CAPS2)—Hal Von Nessen • Essential Closing Strategies—Beverly Koehn • Green Building for the Building Professional Part 1 & 2—John Barrows • Marketing & Communication Strategies for Aging & Accessibility (CAPS1)—Beverly Koehn

General Session Seminars: • 12 Ways to Make the Sale—Jim Garrison • Air Sealing Tips,Techniques and Code Requirements—Steve Easley • Dr. Jekyll or Mr. Hyde: Choosing the Selling Style Suited to Your Customer—Hal Von Nessen • Changes in the 2012 National Green Building Standard—Steve Easley • Energy Star: The Building Science Behind the Practice—John Barrows • Energy Star Requirements—John Barrows • Enhancing Erosion & Sediment Control BMP’s for Maximum Benefit with Minimum Investment—Bobby Starling • Evaluate Current Economic Conditions & Plan for the Future— Joey Von Nessen • Finding Order Among Chaos—Nate Schoen • How to Sell More of the Home They Really Want—Jane Meagher • Human Tech, High Touch: Service Made Simple—Beverly Koehn • Insider Secrets of Credit Scoring—Jim Garrison • Liar, Liar Pants on Fire: Misleading Proposals and How to Avoid Them—Beverly Koehn • Path to High Performance Homes: The Roadmap to Net Zero Energy Homes—Dan McFarland • Profiting in 2012 and Beyond—Daniel Levitan • She-conomy: Selling to Women—Tammie Smoot • Strategy Shift: Moving from Defense to Offense—Beverly Koehn • Timber Frame Applications in Commercial Construction—Dana Miller & Eric Morley • Thumbs Up! Using the Internet to Communicate—Hal Von Nessen Online registration is easy. Go to www.21buildingexpo.com and click on Attendees. Registration opens in mid-April.

SPECIAL PROMO CODE ALERT! Enter promo code NCBM and receive $10 off your registration fees! This will make the Expo Floor FREE or take $10 off your conference registration fees.

North Carolina Builder 15