2013 Winter Issue

The official magazine of the North Carolina Home Builders Association

VOL. 43, NO. 3 WINTER 2013

Hill Steps Up to Lead NCHBA Again in 2014

PAID

PRSRT STD U.S. Postage

A Recap of the Legislature’s 2013 Long Session

Route to: q President q Purchasing q Sales/Mktg. q Superintendent

Flint, MI Permit No. 512

STARS Awards Winners Announced

President’s Message

by J. Gary Hill, 2013-2014 NCHBA President

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

Steven Webb Legislative Lobbyist

swebb@nchba.org

Robert Privott Director of Codes and Construction rprivott@nchba.org Kathryn Stansbury Director of Membership Services kstansbury@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

Heather Massengill Director of Communications and Managing Editor

hmassengill@nchba.org

Beth Gray Receptionist

bgray@nchba.org

I

A Season of Thanks

t is very hard to believe that this and we will always defend those year is almost at an end. Twelve rights. We are thankful for the months have blown by, and I have men and women who serve in our enjoyed every day as President military protecting those rights that of NCHBA. As I reflect upon this we sometimes take for granted. year I am reminded of the many I am also thankful for the men things for which I am thankful. Aside and women of our great association Hill from all the special things we all can that have come before me and give thanks for—family, friends, faith and made this association what it is today. Our health—I am appreciative of the opportunity 50th anniversary in April was a testament to the dedication that so many have for the to have served this year as your President. I principles and mission of NCHBA. have had the joy of meeting so many of our And lastly, I am thankful to be given members and the executive officers of this another year to serve the North Carolina great association. Thank you for the service Homebuilders Association as your President and dedication you have shown for our in 2014. No way would I have ever dreamed industry.You have been an inspiration to me. that would happen. Thanks to everyone We have all survived the worst five years for their faith in me and for giving me this of our industry’s history, and because of that, prestigious opportunity. we have learned very valuable lessons— 2013 will soon be behind us; let’s look lessons that we will never forget. Be thankful forward to 2014 with passion for what we you are still in the most honorable business do and why we do what we do. Let’s inspire in the world. Making dreams come true for those around us to be the best they can, for many Americans and improving their lives is we change people’s lives. a claim that few can make.

My wish to you is a very safe and enjoyable Be thankful for the nation we live in, holiday season and a season of thanks.

America, where the rights of all are upheld

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:

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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 its receipt is included in the membership fee. North 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 2013 dues — the portion that is allocable to lobbying — is 49 percent.

Winter 2013

V ol . 43, N o . 3, W inter 2013

Second Time Around: Hill Steps Up to Lead NCHBA Again in 2014________________________________________ 4 NCBI to Hold Spring Session in Raleigh__________________________ 4 STARS Awards honor best of the home building industry_____________ 6

Contents 11. Capitol Insider

NORTH CAROLINA BUILDER 3

Second Time Around Hill Steps Up To Lead NCHBA Again In 2014

by Mike Carpenter, NCHBA Executive Vice President & General Counsel hen Gary Hill was installed as President of NCHBA in Greensboro in December of 2012, he was expecting to spend the next 12 months helping to lead the nation’s largest state home builders association back from the most difficult economic period which our members have faced since NCHBA was chartered back in 1963. He did not expect that circumstances would change and that his association would ask him to step up to serve a second term as President in 2014.

However, that is exactly what happened when President-Elect Kevin Annas left the homebuilding business to pursue an opportunity in reality television. Faced with this unexpected turn of events, his fellow senior officers and the NCHBA Nominating Committee asked Gary to consider serving a second term and, to everyone’s satisfaction, Gary agreed to do so.

Gary becomes only the second president, in the

W

s NCHBA EVP Mike Carpenter presents Gary Hill with a gift at NCHBA’s 50th Anniversary Celebration in April.

50 years of NCHBA, to lead the association for two terms—Phil Robinson of Winston Salem, our second president, served terms both in 1964 and again in 1965.

We are fortunate that Gary, at this stage in his career, has the time and possesses the unique combination of passion and commitment to take on this significant responsibility for a second time. He has visited more than 40 of our local associations during 2013 and he has a personal goal to visit all 65 before his second term is completed (many of them more than once). While he has been well received in his travels across the state, Gary also reports great satisfaction in seeing the renewal of our industry and optimism returning to our members. In turn, Gary has been able to eloquently deliver the message of what NCHBA has done, and continues to do, for its members.

It is a great message for, under Gary’s leadership in 2013, NCHBA accomplished many things. Pro-active membership initiatives have led to increased membership numbers which, in turn, have helped restore many of our locals to more solid financial footing and led to the restoration of local services curtailed during the recession. NCHBA enjoyed a very good, and almost a great, legislative session.

Several of NCHBA’s legislative enactments are already producing tangible benefits for our members and a number of others (e.g., workers comp reform, reform of the unemployment insurance system, regulatory reform) will produce even greater benefits in the future. Another successful 21st Century Building Expo & Conference was concluded in Charlotte in September as we continue to

NCBI to Hold Spring Session in Raleigh

Mark your calendars for March 4-6 for the Spring Session of the NC Builder Institute.

T

hrough the NCBI, home building professionals can follow a course of study to set them apart in the following areas:Accredited Builder (AB) or Accredited Master Builder (AMB), Accredited Remodeler (AR), Accredited Associate (AA) or Accredited Master Associate (AMA), or Accredited Residential Superintendent (ARS). Recipients of these designations use the knowledge to better their business and the designations themselves to market their professionalism.

The three major objectives of NCBI are: • Enhance technical and professional knowledge in the areas of new technology, business strategies, marketing techniques, effective 4 NORTH CAROLINA BUILDER

s Gary Hill visited over 40 local associations in 2013, often times with his wife Maureen by his side. He hopes to visit all 65 locals prior to the end of 2014.

build this show back to what it was before the downturn. NCHBA has continued to be a leader in NAHB supporting our very own Rick Judson during his term as NAHB Chairman. Gary himself chaired the NAHB Single Family Production Committee in 2013 and served on the NAHB Executive Board. We celebrated the 50th Anniversary of NCHBA’s chartering in April with the return of 32 of our 41 living presidents.

It is not surprising that Gary’s first term proved so effective. He was, and continues to be, supported by a great Senior Officer leadership team and a very solid NCHBA Executive Committee. He is always the first to credit the dedication of the NCHBA staff.

While these factors are important, what makes Gary so effective is that people like and respect him and are quick to follow his lead. Few individuals have held the position of NCHBA President who possessed the breadth and depth of Gary’s knowledge and experience in our industry. He knows what is important to our members and he has a clear vision for the future. We all knew that Gary would step up when the situation arose because that is just the kind of person he is.We also know that the second time around will be even better!

management and changing consumer demands.

• Provide recognition for those who strive for continued growth and development in the home building industry.

• Provide continuing education and professional development programs that are both accessible and affordable to members.

The Accredited Builder and Accredited Master Builder designations are recognized by the NC Licensing Board for General Contractors and will appear on your license. In addition, all individuals who have achieved an NCBI designation are listed on NCHBA’s website.

To learn more about the designation requirements, visit http://www.nchba.org/wp/education/ncbi/.

The complete Spring Schedule will be posted on www.nchba.org in mid-December. In the meantime, please contact Deborah Alford at dalford@nchba.org or 1-800-662-7129 for more information.

Winter 2013

NORBORD 3X10

Winter 2013

NORTH CAROLINA BUILDER 5

STARS AWARDS

honor best of the home building industry

by Kathryn Atkinson, Director of Membership Services he North Carolina Home Builders Association presented 47 prestigious STARS Awards at the annual STARS Awards Gala on September 17 at the Omni Charlotte Hotel. The STARS Awards program honors the achievements of home building industry professionals from North Carolina and surrounding states. Winners received recognition in areas such as marketing and advertising, web design, sales/information center, landscape design, interior merchandising, architecture/floor plan, remodeling/renovation and special projects.Awards were also given to local home builders associations.

The coveted Super Star Awards went to the following recipients: Warren Smith of L and L of Raleigh, Inc. was named the Distinguished Builder Member of the Year. Smith is a member of the Home Builders Association of Raleigh-Wake County. Smith was nominated for outstanding leadership, service and dedication to his home builders association, as well as the building industry and community.

The Distinguished Associate Member of the Year went to Paulette Frantz, nominated by the Northeastern North Carolina HBA. Frantz is a tireless industry advocate with Dominion NC Power, and she has shown outstanding dedication to her local, state and national HBAs. The Community of the Year Award was given to Flowers Plantation in Clayton, NC. They are members of the Johnston County Building Industry Association and the HBA of Raleigh-Wake Co. Flowers Plantation was nominated for the outstanding way it honors the rich history of the land, showcases the area’s natural beauty and offers exceptional amenities to its residents.

T

(See STAR AWARDS on page 8)

s Warren Smith, a member of the HBA of Raleigh-Wake Co., was named Builder of the Year. Pictured l-r, Gary Hill, Erik Anderson, Wayne Holt, Sean Sullivan, Smith, Barry Tutor, Tim Minton and Mike Carpenter.

6 NORTH CAROLINA BUILDER

Winter 2013

Stars Awards (continued from page 6)

s Builder Tony Hirst won for Best Systems Built Home, a new category in 2013.

s Flowers Plantation won STARS Awards for Community of the Year, Best Landscape Design and Best Single-Family Detached Home with a sales price $500,000–$750,000 for the Dr. Watson Inn residence (pictured).

Other STARS Awards winners include: American Builders Marketing Group Member of the Brunswick Co. HBA • Best Television Project, for the “Today’s Builder” television show

Allard and Roberts Interior Design Inc. Member of the Asheville HBA • Best Interior Merchandising/Design for a home with a sales price of over $500,000 for the Ramble residence

DreamMaker Bath & Kitchen of Raleigh Member of the HBAs of Raleigh-Wake Co. and Durham, Orange & Chatham Cos. • Best Room Remodel/Renovation for the Lakecliff Court master bathroom renovation • Best Aging/Accessibility Remodel/Renovation for the Lakecliff Court master bathroom renovation

Evans Coghill Homes Member of the Charlotte HBA • Best Internet Marketing/Advertising or Branding Project (Single Piece) for their “Our Homes Cost Less to Own” video

Flowers Plantation

• Best HBA Community Project (large HBA) for its Play House Showdown

Member of the Johnston Co. BIA and HBA of Raleigh-Wake Co. • Best Single-Family Detached Home with a sales price $500,000– $750,000 for the Dr. Watson Inn residence • Best Landscape Design

Builder Tony Hirst LLC

Greensboro BA

Member of the Vance-Granville HBA • Best Systems Built Home

• Best HBA Website

H&H Homes

Braddock Built Renovations

Member of the Fayetteville, Wayne Co., Onslow Co., Moore Co. and Wilmington-Cape Fear HBAs • Best Internet Website for a Builder or Developer

Asheville HBA

Member of the Brunswick Co. HBA • Best Whole House Remodel/Renovation for the 85 West 1st Street residence

HBA of Fayetteville

Brunswick Co. HBA

• Best HBA Special Project for the Idea House Project

• Best HBA Parade of Homes Marketing Effort (small/mid-size HBA)

HBA of Raleigh-Wake Co.

Charlotte HBA

• Best HBA Membership Directory • Best HBA Event for the Hall of Fame and Spike Awards Event held at the Governor’s mansion

• Best HBA Government Affairs Initiative for the Incentive Based Inclusionary Housing Efforts • Best HBA Parade of Homes Marketing Effort (large HBA)

Creating WOW Communications Member of the HBA of Raleigh-Wake Co. • Best Website for an Associate

Hendersonville HBA • Best HBA Community Project (small to mid-size HBA) for TEAM Day

Homes by Dickerson Member of the HBAs of Raleigh-Wake Co. and Durham, Orange & Chatham Cos. • Best Sales/Information Center

JordanBuilt Homes s Paulette Frantz was named Associate of the Year. Frantz is pictured with Kathy Craven Snodgrass (l) and Robin Newhouse (r).

8 NORTH CAROLINA BUILDER

Member of the HBAs of Raleigh-Wake Co. & WilmingtonCape Fear • Best Interior Merchandising/Design for a home with a sales price of $250,000-$500,000 for the Forsythe

JPM South Development Member of the HBA of Raleigh-Wake Co. • Best Color Ad for Traditions at Heritage Wake Forest • Best Website for a Community for Traditions at Heritage Wake Forest

(See STAR AWARDS on page 10) Winter 2013

Thank you 2013 NCHBA Sponsor Club Members

DIAMOND

PLATINUM

GOLD

LONESTAR 2X7.5

SILVER

BRONZE

Dominion NC Power NC Housing Finance Agency RT Marketing inc.

CONTRIBUTOR

Cranfill, Sumner & Hartzog LLP Lewis & Roberts PLLC Stuart Law Firm PLLC Winter 2013

NORTH CAROLINA BUILDER 9

s M/I Homes won Best Single Family Detached Home with a sales price $750,000–$1 million for the Birmingham, pictured here.

Stars Awards (continued from page 8) Living Stone Construction Member of the Asheville HBA • Best Television Commercial • Best Brochure/Marketing Piece for a builder • Best Single Family Detached Home with a sales price $250,000– $500,000 for the Rockcliff residence • Best Addition for the Thiemkey addition

Meritage Homes of the Carolinas Member of the HBAs of Charlotte, Raleigh-Wake Co. and Durham, Orange & Chatham Counties • Best Interior Merchandising/Design for a home with a sales price under $250,000 for The Hatteras

M/I Homes Member of the HBA of Raleigh-Wake Co. • Best Single Family Detached Home with a sales price $750,000– $1 million for the Birmingham

s Living Stone Construction won four STARS Awards, including Best Single Family Detached Home with a sales price $250,000–$500,000 for the Rockcliff Residence (pictured).

Topsider Homes Member of the Winston-Salem HBA • Best Newsletter

Vision Design Build Remodel Member of the Caldwell Co. HBA • Best Logo Design for a Builder/Developer

Wakefield Development Company Renaissance Park Member of the HBA of Raleigh-Wake Co. • Best Special Project for the “Toys for Lil Troops” Project

Wilmington-Cape Fear HBA • Best HBA Government Affairs Initiative for HB 785 Cost Sharing/ Transportation Improvements

Winston-Salem HBA • Best HBA Communication/PR Effort for its mobile website launch

New Homes & Ideas Magazine Member of the HBAs of Raleigh-Wake Co. and Durham, Orange & Chatham Cos. • Best New Homes Publication

Pinehurst Homes Inc. Member of the Moore Co. HBA • Best Outdoor Living Area for the Prestipino Residence

STARS Sponsors A very special thank you goes out to our 2013 sponsors whose generous support makes an event of this magnitude possible.

The STARS Awards would not be the same without you.

Mega Star

Rare Earth Builders Inc. Member of the Haywood Co. HBA • Best Energy Efficient Single-Family Project for the Creative Cove residence

Ritz-Craft Corporation Member of the Central Susquehanna BA in Pennsylvania • Best Internet Marketing/Advertising or Branding Project (Campaign) for their interactive and multi-faceted social media campaign

RMB Building and Design LLC Member of the Wilmington-Cape Fear HBA • Best Single-Family Detached Home with a sales price over $1 million for the Spencer residence

Sedgewick Homes LLC Member of the Wilkes County HBA • Best Billboard

Stevens Fine Homes Member of the Wilmington-Cape Fear HBA • Best Logo Design for a Community for the Reserve at Holly Ridge • Best Radio Commercial/Project for “Why buy new, Why buy now, Why buy with Stevens Fine Homes” radio commercials • Best Brochure/Marketing Piece for a Community for Saylor’s Watch 10 NORTH CAROLINA BUILDER

Category Sponsor Super Star Shining Star

Shooting Star

Aegis Administrative Services Bonded Builders Warranty Group PSNC Energy www.WeMarketBuilders.com

Cranfill Sumner & Hartzog LLP DuPont Tyvek Lewis and Roberts PLLC RT Marketing inc.

Winter 2013

Capitol Insider Legislative Session proves favorable to home building industry Many NCHBA priorities enacted in the 2013 Long Session

by Lisa Martin, Director of Government Affairs or the first time since Reconstruction, the North Carolina House, Senate and Governor’s Office were controlled by Republicans in 2013. When the gavel pounded for the last time on July 26, it was clear that this produced unprecedented changes to many established state laws and government policies.

A total of 1,751 bills were introduced during 104 legislative days, and those that were signed into law reformed state tax policy, education, healthcare, unemployment insurance, election laws, transportation funding, women’s health and gun rights.

NCHBA Government Affairs staff was present every day of the 2013 Session to ensure that the interests of the home building industry were protected. Because of the wide range of issues that affect builders and their businesses, NCHBA tracked 408 of the 1,751 bills introduced during the Session (23%).

In the Member’s Only section of the NCHBA website, we have posted a lengthy wrap-up of the 2013 Long Session. In this article, we highlight the Top 10 most important legislative accomplishments of the session.

F

1. Prohibited unnecessary inspections and put the NC residential code on a six-year revision cycle.

The NC General Statutes require that a uniform statewide building code be adopted and implemented by the North Carolina Building Code Council (BCC). The BCC has promulgated a list of required inspections; however, a number of local jurisdictions across the state are requiring inspections in addition to those established by the BCC. Mandating additional types of inspections undermines the concept of a uniform building code system, creates unnecessary delays to the home building process and imposes a financial burden on builders and subcontractors.

In order to stop local jurisdictions from requiring unauthorized inspections, NCHBA sought passage of H 120 Building Codes: Local Consistency/Exempt Cable (S.L. 2013-118), sponsored

by Representatives Mike Hager (R-Rutherford), Tricia Cotham (D-Mecklenburg), Bill Brawley (R-Mecklenburg) and Dean Arp (R-Union). Despite opposition from several groups, the bill passed the House 99-18 and the Senate 47-1 with strong bipartisan support.

H 120 prevents local building code departments from requiring any inspections not authorized under the building code’s NC Administrative Code and Policies, Section 107, limiting the types of inspections, but not the number of inspections. H 120 also requires the BCC to revise the one- and two-family residential building code every six years in lieu of the current three-year cycle (the next revision of the residential code will become effective January 1, 2019). Finally, the new law strengthens the administration of a true statewide building code by directing the N.C. Department of Insurance (DOI) to make written and electronic code interpretations and all appeal decisions made by the Building Code Council available to the public by posting them on the Building Code Council’s website.

2. Protected the comprehensive Workers Compensation Reform Act passed in 2011.

In the 2011 Session, NCHBA (along with the NC Chamber and the NC Retail Merchants Association) led an effort that produced a significant reform of the workers compensation system (H 709; S.L. Winter 2013

2011-287). Among the many important changes enacted, the 2011 act required the Industrial Commission (IC) to readopt its rules. During this process, the business community objected to several of these proposed rules because they were unfair to employers. As a consequence of the failure of the IC to revise these rules, the business community introduced SB 174 Disapprove Industrial Commission Rules (S.L. 2013-294), introduced by Senator Harry Brown (R-Onslow), the Senate’s majority leader and member of the Onslow Co. HBA. NCHBA led the business coalition which ultimately negotiated a consensus bill with the plaintiff ’s bar that not only formally disapproved the rules in question, but also provided specific legislative direction on how the replacement rules must be rewritten. NCHBA also worked with other business groups to insert favorable workers compensation reform provisions in HB 74, Sections 13.(c) & 60.(a) & (b) (amends GS 97-19 to clarify employer liability in certificates of insurance disputes; adds provision to make it easier to replace IC deputy commissioners) and HB 92, Sections 33.(a) & (b) (reforms hospital/medical fee schedule to substantially lower costs to employers paying for medical treatment for injured workers).

3. Passage of a tax reform bill that does not contain a number of provisions that would have negatively impacted our industry.

The legislation that easily received the most attention in the 2013 session was H 998 Tax Simplification and Reduction Act (S.L. 2013-316), sponsored by Representatives David Lewis (R-Harnett), Tim Moffitt (R-Buncombe), Mitch Setzer (R-Catawba) and John Szoka (R-Cumberland). This hotly debated bill addressed tax reform by eliminating the existing three-tiered income tax (maximum of 7.75 percent) and creating a flat tax of 5.8 percent in 2014, which drops to 5.75 percent in 2015. The bill creates an exemption for the first $15,000 of income for those married filing jointly; a $12,000 exemption for heads of household; and a $7,500 exemption for single filers. Important to the home building industry, the reform package offers $20,000 combined maximum deductions for mortgage interest and property taxes. Also included are full deductions for charitable giving and a protection for Social Security from state income taxes.

The tax reform package also reduces corporate income tax by 29 percent, cutting the rate from 6.9 percent to six percent in 2014, followed by an additional cut to five percent in 2015. Additional taxes were added, as state and local sales tax will now be applied to service contracts for maintenance/repair of automobiles and goods subject to sales tax, as well as to entertainment admission, such as movies, shows and museums. Some sales tax exemptions and the two sales tax holidays were eliminated by H 998. Finally, the bill caps the State gas tax at 37.5 cents for the period October 1, 2013, to June 30, 2015.

While the NC Association of Realtors (NCAR) aggressively opposed any reduction in the current mortgage interest deduction by waging a high-profile media campaign, NCHBA took a more measured approach and sought to effect changes in the various proposals that may have negatively impacted our industry. In addition to the proposals to eliminate or reduce the mortgage interest deduction, provisions in earlier versions of the bill would have extended the sales tax to the labor component of new residential construction and remodeling and extended the franchise tax to (or enacted a new business license tax

(See CAPITOL INSIDER on page 12) NORTH CAROLINA BUILDER 11

Capitol Insider (continued from page 11) on) limited liability entities. The enacted version does not contain these provisions, but it does include a deduction for mortgage interest and property taxes with a cap of $20,000 (which will allow most current and prospective home owners to realize the full benefit of both deductions).

4. Passed through the House, a bill to clarify that local governments do not possess the power to mandate design and aesthetic standards in residential construction.

A 2012 survey conducted by the UNC School of Government indicated that local governments are increasing the use of mandatory design and aesthetic controls on residential structures through zoning and other police powers. The survey cited examples of unauthorized design mandates which include: fence location or materials; type or style of exterior cladding; architectural style; style or materials of roof; exterior architectural ornamentation; location or style of windows or doors; exterior building color; number and type of rooms; and interior layout of rooms.

Because local governments do not have the authority to mandate architectural design standards and because design and aesthetic controls directly result in increased housing cost and often keep first-time homebuyers out of the market, a top priority for NCHBA for the third year in a row was H 150 Zoning/Design & Aesthetic Controls, sponsored by Representatives Nelson Dollar (R-Wake), Bill Brawley (R-Mecklenburg), Tim Moffitt (R-Buncombe) and Jonathan Jordan (R-Ashe). This bill clarifies that mandatory “building design elements” may not be required for any structure subject to regulation under the North Carolina Residential Code for one- and two-family dwellings. H 150 passed the House with a bipartisan floor vote of 9818 and should have passed in the Senate because essentially the same bill passed in the Senate by wide margin in 2011. Despite unanimous approval of H 150 by the Senate Commerce Committee, the bill was referred to the Senate Rules committee from the Senate floor. Despite our best and repeated efforts, NCHBA was unable to get the bill recalendared for Senate floor action this year. It appears that this was collateral damage to NCHBA, through no fault of our own, arising from the tax reform debate with respect to the actions of others. We were assured that the decision not to re-calendar had nothing to do with the merits of the bill. HB 150 is eligible for favorable action in next year’s short session and will remain a top priority for NCHBA.

5. Led efforts to enact historic reform of NC’s unemployment compensation system.

NCHBA joined the North Carolina Chamber and more than two dozen other business and employer groups in helping to lead efforts to bring about comprehensive reform to North Carolina’s broken unemployment insurance (UI) system. After sponsoring a UI solvency study and working with House and Senate leaders throughout 2012, the business community was pleased that one of the first substantive legislative issues addressed in the 2013 session was reform of the UI system.This reform effort was driven by recent FUTA tax increases on employers caused by the requirement to repay more than $2.6 billion in debt to the federal government for past unemployment benefits.

H 4 UI Fund Solvency and Program Changes (S.L. 2013-2), sponsored

by Representatives Julia Howard (R-Davie), Harry Warren (R-Rowan), Edgar Starnes (R-Caldwell) and Mitch Setzer (R-Catawba), creates a new “Employment Security Reserve Fund” used solely to pay down NC’s federal debt ($2.6 billion); provides and accelerated path to debt repayment in three years; and increases minimum and maximum State Unemployment Tax Act (SUTA) rate on employers by .06%. Many changes in H 4 include provisions to ensure long term solvency. These 12 NORTH CAROLINA BUILDER

reforms include: a reduction in the duration of benefits, a reduction in the amount of benefits, new workforce training programs and funds, and safeguards to ensure that those receiving benefits are actively seeking work.

In addition to repaying the debt to the federal government more quickly and thus avoiding higher annual FUTA tax increases, the act is designed to better align benefit amounts and duration with surrounding states to better assure competitiveness with those states for jobs. In addition to creating a competitive balance with neighboring states, the duration of benefits will now be adjusted based on the unemployment rate.

6. Continued significant ongoing regulatory reform efforts.

Continuing with efforts that began in 2011 with the passage of S 781, the General Assembly again made regulatory reform a priority with the passage of H 74 Regulatory Reform Act of 2013 (S.L. 2013413), sponsored by Representatives Tom Murray (R-Wake), Tim Moffitt (R-Buncombe), Ruth Samuelson (R-Mecklenburg) and Rob Bryan (R-Mecklenburg). This omnibus bill contains provisions that, among other important reforms, requires the Rules Review Commission to perform periodic review of all existing rules (and NCHBA amendment provides that the first rules to be reviewed are those related to surface water quality and wetlands); repeals the Mountain Resource Planning Act; provides that “built upon area” does not included graveled areas, wooden slatted decks, or water area of swimming pools; and provides that state may not require revisions of permit applications and plans sealed by a professional engineer unless this review is performed by an engineer.

H 74 also requires the Building Code Council to adopt rules to require lodging establishments to install electrical carbon monoxide detectors in response to deaths that occurred in a motel in Boone.

The bill includes a provision directing the legislature’s Environmental Review Commission to study statutory models for the provision of water and sewer services and to report back to the General Assembly in 2014. [NCHBA has advocated for this type of study over the past few sessions in order to evaluate whether various water and sewer providers are abusing their authority.] H 74 requires the Joint Legislative Program Evaluation Oversight Committee to evaluate the structure, organization and operation of the state’s independent occupational licensing boards. NCHBA does not oppose the study provision; however, we would be opposed to the creation of a “Super Commission” responsible for oversight of all state licensing boards.

The House version of its regulatory reform bill contained NCHBAsupported provisions to repeal municipal protest petition authority and to preempt future and existing local environmental ordinances more stringent than those of the state, but those provisions were removed by the Senate. These removed provisions remain NCHBA priorities for next year’s short session.

7. Continued environmental reform efforts.

Several bills on NCHBA’s priority list for environmental reform were enacted: (1) SB 515 (Jordan Lake Water Quality Act) further delays the implementation deadline for local stormwater management programs mandating onerous development standards by current rules applicable to the Jordan Lake watershed; (2) HB 279 (Transfer Environmental Permits) will facilitate the transfer of existing permits where the original permit holder is no longer in business; and (3) SB 294 (Allow Use of DOT Stormwater BMPs) allows private developers the same stormwater BMP standards as DOT currently utilizes. In addition, Sections 14.23(a) and 14.24(a) of SB 402 (Appropriations Act of 2013) sunset the terms of members currently serving on the Environmental Management Commission and the Coastal Resources Commission on 07/31/13 and allows the current Governor to appoint replacements to restore balance to both commissions.

Winter 2013

One of NCHBA’s regulatory reform priorities included eliminating permitting delays and redundant review by allowing engineering certification instead of requiring engineered drawing review by DENR staff. That request was granted in H 480 Environmental Permitting Reform (S.L. 2013-82) sponsored by Representatives Chris Millis (R-Onslow), Tim Moffitt (R-Buncombe), Rick Catlin (R-New Hanover) and Jon Hardister (R-Guilford). This bill requires DENR to develop a fast-track permitting process that includes using Minimum Design Criteria (MDC) for stormwater runoff permits. In developing the MDC, DENR must consult with a technical working group that consists of industry experts, engineers, environmental consultants, relevant UNC faculty and other interested stakeholders. The bill also creates a “fast-track permitting” process for stormwater management systems that allows permits to be issued without a technical review if certain criteria are met and if the engineer assumes liability if the permit application fails to comply with the MDC. The Environmental Management Commission is tasked with adopting rules to put together rules implementing the fast track permitting process by 2016. NCHBA will work with the bill sponsors in extending MDC and fast track permitting to other programs, such as sedimentation/ erosion control, in the short session.

session. The reason NCHBA’s Government Affairs team continues to be successful, however, has been and always will be the leadership of its Executive Committee, the hard work of our lobbying team, the support of our members and the invaluable help from pro-housing legislators who unequivocally support the residential construction industry. NCHBA will continue its long and successful advocacy against policies and laws that impose barriers to home ownership and affordable housing and in favor of those policies and laws that promote those goals.

We must also ensure that our champions and friends in the General Assembly remain in office and assume positions of leadership and responsibility. Among the most effective ways NCHBA members can help preserve home ownership and viability is to contribute to NC BUILD-PAC to ensure that those elected and re-elected to the General Assembly and to local offices understand and appreciate the importance of the home building industry to the economy and quality of life in our state. You may donate online at www.nchba.org by clicking on “NC BUILD-PAC” and the “Donate Now” logo.

Together, NCHBA and its members have made and will continue to make a difference for future generations of North Carolinians striving to attain the American Dream of Home Ownership!

8. Fixed issues with last session’s Lien Agent law.

Senate Bill 42 (S.L. 2012-158) was enacted last year to ensure the continued availability of title insurance in the state, which it accomplished. This act became effective on April 1, 2013, and requires the designation of a lien agent for improvements to real property costing $30,000 or more, except for improvements to a single-family dwelling “that is used by the owner as a residence.” Despite this clear exclusion, some inspections departments were requiring that a lien agent be designated when the general contractor applied for the improvement permit. NCHBA successfully sought a clarification in H 88 Lien Agents/Technical Correction (S.L. 2013-117), sponsored by Representative Pat Hurley (R-Randolph). In addition, this bill makes it clear that a lien agent need not be named for the construction of accessory buildings or structures the use of which is incidental to the residence. As well, NCHBA sought further clarification of the 2012 law in H 180 Mechanic Liens/Technical Corrections (S.L. 2013-16), sponsored by Representative Sarah Stevens (R-Surry), which allows a custom single-family home builder’s designation of a lien agent for the owner to serve as that contractor’s notice to lien agent if all required information is included in the designation.

9. Clarified lack of state authority to regulate isolated wetlands.

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NCHBA’s efforts to end unjustified state regulation of isolated wetland (those wetlands not protected by federal law) passed the Senate in two different bills. The second bill, SB 938 (Clarify Wetland Permitting), was passed by the Senate by a vote of 27-15 on the last night of the session, but was not calendared by the House. This bill remains eligible for action in next year’s short session.

10. Successfully lobbied for a continued significant appropriation for the Housing Trust Fund.

One of NCHBA’s key annual priorities is assuring funding for the NC Housing Trust Fund administered by the NC Housing Finance Agency.We are pleased to report that S 402 Appropriations Act of 2013 (S.L. 2013-360) provides a $7 million appropriation to the Trust Fund in each year of the biennium. With this appropriation, the Housing Trust Fund will continue to leverage private, local and federal funds to deliver housing and jobs to all 100 counties in North Carolina.

Conclusion The 2013 session proved successful for the business community generally, and for NCHBA, it was a very good, and almost a great, legislative Winter 2013

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Apply for college scholarships by April 30

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f you know a college or technical student who needs financial aid, now is the time to nominate them for the North Carolina Home Builder Educational & Charitable Foundation Inc. scholarships.

The foundation awards scholarships each year 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.

To be eligible for the scholarship, a student must: • Be nominated by a NCHBA member firm; • Be an immediate family member, related by blood (i.e. children, stepchildren or grandchildren) of an NCHBA member. Students related by marriage (i.e. son-in-law, daughter-in-law, etc.) are not eligible.

• Be a full-time student, taking a minimum of 12 credit hours per semester.

Immediate family members of any current trustee of the NCHB Educational & Charitable Foundation Inc. are not eligible.

Awards are for one year, but scholarship winners may submit a renewal application and be considered for renewal if they make satisfactory progress in their studies.

The deadline for scholarship applications is April 30.

For a nomination form or an application packet, visit www.nchba.com or call the NCHBA office at (800) 662-7129.

11th Annual 21CBEC a Success in 2013 Mark Your Calendar for Sept. 9-11, 2014

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CHBA would like to thank our members who helped make the 11th annual 21st Century Building Expo & Conference another successful event.

More than 1,900 industry professionals visited Charlotte in September to see the latest products and services for residential construction. In addition, the Educational Conference drew attendees interested in earning a professional designation, such as the Certified Aging-in-Place Specialist (CAPS) and Accredited Builder (AB), or expanding their knowledge in a vast array of subjects from marketing to green building.

NCHBA would like to thank the sponsors and exhibitors who made this event possible. We appreciate your support each year.

If you have a product or service that you want to market to home builders, we urge you to consider exhibiting in the 2014 21st Century Building Expo & Conference. Contact Tracie Garrett at tgarrett@nchba.org or 1-800-662-7129 for more information.

Be sure to mark your calendar for 2014.We’ll be back at the Charlotte Convention Center September 9-11, 2014.Visit www.21buildingexpo.com for more information.

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Winter 2013

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Winter 2013

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BUILDERS MUTUAL OBC 3X10