October 2009 North Carolina Builder by North Carolina Home Builders Association

The official magazine of the North Carolina Home Builders Association

Vol. 36, No. 10, October 2009

NCHBA enjoys legislative success Whatâ&#x20AC;&#x2122;s new in building systems

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V ol . 39, N o . 9, O ctober 2009

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 Counsel

mcarpenter@nchba.org

Lisa Martin Director of Government Affairs

lmartin@nchba.org

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

Budget dominated session but industry prevailed on most issues

Because of the wide range of issues affecting home builders, no other trade association is impacted by as many bills as NCHBA. Despite the challenge of staying abreast of 531 bills, when the 2009 General Assembly finally adjourned, it was clear that NCHBA had achieved most of its legislative goals.

NCHBA’s top legislative issues

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

Linda Hall Controller

lhall@nchba.org

Find out at a glance what ranked among the top issues to the building industry during the 2009 legislative session.

Erin Jones Manager of Political Operations

ejones@nchba.org

Building systems continue to carve niche

Heather Crews Director of Communications and Managing Editor

hcrews@nchba.org

Find out what building systems manufacturers are offering in this issue’s product roundup.

NCHBECF lends students a helping hand

To be named Assistant Education Coordinator

Five students have been awarded scholarship assistance from the North Carolina Home Builders Educational & Charitable Foundation (NCHBECF).

Beth Gray Receptionist

Graphic Designer

Contents 2. President’s Message 4. Capitol Insider 18. Build-Pac Contributors 16. Knowledge Builder 19. Spike of the Month 20. NCHBA News

On the cover: Gov. Perdue signs the permit extension bill into law, while Mike Carpenter, Jessica Hayes, Frank Wiesner and Lisa Martin look on. (Photo courtesy of the Office of the Governor.) October 2009

bgray@nchba.org

Advertising Sales Executive Sharon Freeman (888) 364-5271 freemanfour4@cox.net Paige Takach

Publisher

Association Publishing Inc. www.associationpublishinginc.com Sandra Amidon and Joyce Hearn, APR (757) 420-2434

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 Affiliated with the Association and its receipt is included in the membership fee. National of Home Builders. North Carolina Builder is published monthly except for January. Since the mailing list used by North Carolina Builder is compiled according to membership records, address corrections should be directed to your local association. Nonmember subscriptions are available from the publisher for $30 a year. 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 2009 dues — the portion that is allocable to lobbying — is 28 percent.

North Carolina Builder   1

President’s Message

2009 NCHBA Leadership President Frank Wiesner President-Elect Lyle Gardner First Vice President Bill Daleure Secretary/Treasurer Rick Shields Executive Vice President Mike Carpenter Immediate Past President & NAHB Executive Committee State Representative Ray Rhodes NAHB Executive Committee Rick Judson Vice President, Region I Patrick Mann Vice President, Region II Glenn Morrison Vice President, Region III Barry Tutor Vice President, Region IV Ralph Doggett Vice President, Region V Jackie Trinchitella Vice President, Region VI Brian Robinett Vice President, Region VII Erik Anderson Vice President, Region VIII Darrel Hamilton Vice President, Region IX Kevin Annas Vice President, Region X Zac Koenig Presidential Appointee Elizabeth Cubler Presidential Appointee Larry Howard Presidential Appointee Mike Gerber Chair, Associate Members Committee Tammie Smoot President, EO/ES Council Caroline Sutton President, Professional Women in Building Tammie Smoot

by Frank Wiesner, 2009 NCHBA President

A year of growth and survival

hen we look back on 2009, I believe we can agree that this year will be indelibly burned into our memories as a year that, for most of us, has tested our abilities and preparedness to deal with many difficult circumstances. I know that I will never forget 2009, as it has certainly been a year that I have encountered opportunities for growth in all aspects of my life. My wife, Laura, and I recently celebrated our 26th wedding anniversary, and we were the guests of our McDowell, Mitchell & Yancey HBA for our anniversary dinner at the HBA’s monthly meeting. First, let me state that my wife has enthusiastically supported my work representing you, our NCHBA membership, in my travels and time away from home over the past few years but especially this year. Before you feel sorry for her and angry Wiesner I have recognized that at me for dragging her around the state on survival in all areas of such an important day in our lives (or perhaps you are thinking our lives requires good I forgot it was my anniversary and scheduled the meeting and couldn’t get out of it), shame on you for thinking such things! and wise decisions, a I scheduled the meeting as an anniversary gift for my wife … willingness to learn as we had delivered our youngest daughter to Appalachian State from our mistakes, and University to begin her freshman year a week or so before. sometimes having to let As I had scheduled this August meeting in Marion back in go of things that have May, I had made a decision that proved wise in the end. I thought that our little girl would be ready for a visit from Mom and Dad become a big part of and the HBA meeting gave us a great excuse to be in the Boone our lives. area.While the decision was right, I was wrong. It was definitely Mom and Dad who were in desperate need of a visit. As we made the drive from Marion to Boone that evening, I reflected back on the many experiences of this past year that I will only go through once in my life. I had the experience of grilling my daughter’s first official “boyfriend.” While I was striving for, in culinary terms, a “well-done crisp,” I believe I fell short and settled for “medium-well.” I also experienced the emotion of my little girl’s heart being broken for the first time by this same boy. I saw the pain that for so many years I was able to protect her from, but I knew inside she needed to experience this pain. There will be other boys, and I will be better next time in my grilling, partly because I have seen the pain. We also saw our little girl graduate from high school. Laura and I passed into a new phase of our lives that we felt was way premature, as we are too young to feel this old. I realized that our daughter was prepared for this phase of her life even if we weren’t. Then came the week we took her to Boone and moved her into a dorm and had to make the long, lonely drive home that was reminiscent of her first day of kindergarten since both days included tears, sadness and separation. I am happy to report that Amanda is doing well and her parents are getting a little better each day knowing that we did our best to prepare her to make good and wise decisions as she embarks on the journey of her own life. Through it all, I have grown this year and seen many parallels in my endeavor to survive the “pain” that life brings. I have recognized that survival in all areas of our lives requires good and wise decisions, a willingness to learn from our mistakes, and sometimes having to let go of things that have become a big part of our lives. Amanda will always be my little girl and while I know I have to let her go to become the woman she will become, I am very thankful for our many HBAs in the western part of North Carolina that can give Laura and I an excuse to be driving through Boone for a quick visit.

Frank

2   North Carolina Builder

October 2009

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North Carolina Builder   3

Capitol Insider

by Lisa Martin, NCHBA Director of Government Affairs

2009 legislative session successful for NCHBA despite economic challenges

he North Carolina General Assembly adjourned just after noon on Tuesday, Aug. 11, bringing to a close a very challenging and, at least on budget issues, contentious session. The NCHBA Government Affairs staff was present for every day of the 2009 session, working to protect the interests of the home building industry. While the state budget dominated committee Martin discussions and news reports, other battles waged. Issues such as annexation, a smoking ban in public places, public campaign financing, changes to the Beach Plan, a ban on texting while driving, railroad corridor management, bullying in schools, revision of public school sex-ed curriculum and procedural changes to cases involving the death penalty were some of the hot topics deliberated by General Assembly members over the seven-month session. A total of 2,767 bills were introduced in both the House and Senate. Because of the wide range of issues affecting home builders, no other trade association is impacted by as many bills as NCHBA. Of the bills introduced this session, 531, or 19 percent, affected or had the potential to affect the residential construction industry. Despite this challenge, when the General Assembly finally adjourned, it was clear that NCHBA had achieved most of its legislative goals. The 2009 session was both an offensive and a defensive struggle. NCHBA’s Legislative Committee, under the leadership of Chairman Eric Beaver, directed staff to oppose any measure that would adversely affect the home building industry. As a result, most of the bills opposed by NCHBA were stopped or amended to make them acceptable. More importantly, NCHBA was successful on offense as all of our proactive priorities for 2009 were enacted or remain eligible for consideration in 2010. In spite of the economic downturn and a “nonbusinessfriendly” atmosphere, NCHBA achieved more success than any other industry or trade association. Topping the list of NCHBA’s successes are two bills that directly affect builder members. Legislation that extends state and local permits,

4   North Carolina Builder

Rep. Margaret Dickson (D-Cumberland) poses with HBA of Fayetteville Executive Officer Natalie Woodbury. Rep. Dickson was the primary sponsor of the builder inventory tax deferral bill.

and legislation that defers property tax on builder inventory both passed and were signed into law by the Governor. In addition, NCHBA was able to enact legislation that: • requires cities, counties and sanitary districts to provide electronic notice of fee increases prior to their consideration; • clarifies the law regarding appeals of quasijudicial land-use decisions; • makes acceptable changes to the N.C. Beach Plan; and • provides relief from costly, burdensome water quality requirements in the Jordan Lake watershed. NCHBA also supported an appropriation of $10 million to the Housing Trust Fund and positioned several bills for enactment in 2010. NCHBA priority bills eligible in 2010 include bills to stop moratoria abuse and to limit developer responsibility for street and highway construction. In addition to a proactive agenda, NCHBA was successful on defense: • stopping requirements for photoelectric smoke detectors, • stopping requirements for builders to use the federal E-verify system, • vigorously opposing two bills authorizing use of tax dollars for campaign financing, • opposing four workers’ compensation bills that would have significantly increased the cost of workers’ compensation premiums,

• opposing a minimum wage increase, • opposing bills that would establish a state green building code and legislation that would allow local governments to enact their own energy codes, • opposing bills banning mobile phone use while driving, and • stopping local bills authorizing liberal adoption of tree ordinance, transfer of development rights and county authority to collect additional fees to fund cultural arts and recreation facilities. The success of NCHBA’s 2009 legislative session would not have been possible without the strong support of many individual legislators in both chambers who defended the interests of the home building industry on a variety of issues. Highlights of the session are included in the chart appearing on page 12 entitled, “Top 2009 Legislative Issues.” The following summarizes the highlights of NCHBA’s efforts during the 2009 session by category of interest.

Building code legislation NCHBA has consistently fought attempts by the General Assembly to unnecessarily amend the State Building Code. NCHBA works to develop and support cost-effective and affordable building codes, standards, regulations and legislation. While safety is our top priority, legislation must be examined according to a cost-benefit analysis and for practicality. NCHBA worked with Rep. Jean FarmerButterfield (D-Wilson) and staff from the N.C. Department of Health and Human Services (DHHS) to craft HB 1151 Residential Lead-Based Paint Hazards/Renovations (enacted as S.L. 2009-488), which establishes a state program for certification of persons performing renovation work in homes where lead-based paint is present. NCHBA received assurances from DHHS that the fees authorized in this bill are considerably less than the federal program, and following the recommendation of the NCHBA Regulatory Affairs Committee, NCHBA supported a state certification program as opposed to a federal one. NCHBA vigorously opposed HB 1125 Require Photoelectric Smoke Detectors, which would require photoelectric smoke detectors to be used in new or renovated homes or when homes are sold. Using information October 2009

provided by NCHBA Director of Codes and Construction Robert Privott, NCHBA was able to convince the bill sponsor to remove the bill from committee consideration this session. NCHBA supported HB 749 Use of Cisterns in Construction/Renovation (enacted as S.L. 2009-243), introduced by Rep. Kelly Alexander (D-Mecklenburg). This bill directs the state Building Code Council to adopt rules allowing the use of cisterns for flushing toilets and for outdoor irrigation. NCHBA also supported HB 1409 Building Code Exclusion/Certain Wiring (enacted as S.L. 2009-532), introduced by Rep. Carolyn Justice (R-Pender).The bill provides that a permit shall not be required for repair or replacement of electrical lighting fixtures or devices or for the connection of an existing branch circuit to an electric water heater that is being replaced, provided that the replacement water heater is placed in the same location and is of the same or less capacity and electrical rating as the original and that the electrical lighting device replacement is with a fixture or device having the same voltage and the same or less amperage as the original.

Construction and business legislation NCHBA is made up primarily of small business owners; therefore, the association is concerned about the wide range of issues that face the business community in general.NCHBA is particularly concerned about issues that are unique to the construction industry, including containing the cost of workers’ compensation insurance and other insurance-related issues. Home building requires a well-trained and readily available workforce, which NCHBA believes should be addressed through improved education and vocational training. Continuing education/accreditation and licensure issues are also important to our members. Five workers’ compensation bills were introduced this session and NCHBA opposed four of the five. Bills opposed would have significantly increased premiums for builders and were bad for small business in general. NCHBA opposed the following bills: HB 805 Workers’ Comp/Calculation of Income introduced by Rep. Rick Glazier (D-Cumberland), which would have counted an employer’s contributions to an employee’s retirement account in the calculation of “average weekly wage”; HB 843 Workers’ Comp/Medical Diagnostic Testing introduced by Rep. Darren Jackson (D-Wake), which carries a high potential for abuse as it would require the employee’s physician to choose the provider of diagnostic services; SB 781 Workers’ Comp/Choice of Physician October 2009

Sen. Dan Clodfelter (D-Mecklenburg) (center) meets with constituents Tom Pearson, Bill Daleure and Rick and Cathy Judson. Sen. Clodfelter sponsored the permit extension bill in the Senate.

introduced by Sen. Doug Berger (D-Franklin) that would allow the employee to choose their physician regardless of cost; and SB 930 Workers’ Comp/Firefighter Occupational Diseases introduced by Sen. Doug Berger (D-Franklin) that would create a presumption that certain infectious diseases, hypertension, heart disease and certain cancers are occupational diseases for firefighters and are covered by the Workers’ Compensation Act. The latter bill would set a bad precedent for later workers’ compensation claims. None of these bills made the crossover deadline, thus they are presumed ineligible for consideration in the short session. The one workers’compensation bill supported by NCHBA and other business interests was introduced in the House by Rep. Bruce Goforth (D-Buncombe) and in the Senate by Sen. Tom Apodaca (R-Henderson). The bill, HB 1022/ SB 975 Workers’ Comp/Duration of Total Disability, would limit an employee entitled to receive disability compensation services to either 65 years of age or 300 weeks from the date of injury, whichever is longer. While NCHBA and a coalition of business interests worked hard to advance the House bill, it was re-referred to the House Judiciary II Committee right before the crossover deadline; thus, it is technically not eligible for consideration next year. However, a provision in HB 945 The Studies Act of 2009 authorizes a Legislative Research Commission (LRC) study of the issues related to the duration of compensation for temporary total disability. The LRC may recommend legislation, and thus a similar bill could be introduced and would be eligible in the short session. One highly contentious bill, HB 1305 Beach Plan Changes, (enacted as S.L. 2009472), introduced by Rep. Hugh Holliman (D-Davidson), took a number of twists and turns during the session. The topic of Beach Plan stabilization was examined by a select

committee consisting of coastal and other legislators and insurance industry representatives. The committee met bimonthly after the close of the 2007-2008 session and crafted a series of recommendations that were subsequently put into legislation. Following the recommendation of NCHBA’s Legislative Committee, as the bill moved through the House Insurance and House Finance committees, we were able to amend the bill more favorably and the bill passed second and third reading in the House by a large margin. HB 1305 finally was heard in the assigned Senate committee in the last few days of session. As in the House, HB 1305 pitted legislators from the east against legislators from the west. In the Senate, NCHBA worked on the last remaining issue, the cap on coverage. The House approved lowering the existing coverage limit of $1.5 million to $750,000, which was the recommendation of the select committee. NCHBA vigorously opposed this reduction. The Senate Commerce Committee raised the coverage limit to $1 million, but when the bill was on the Senate floor for a vote, an amendment was proposed by Sen. Phil Berger (R-Rockingham) that put the limit back to the $750,000 approved by the House. In spite of lobbying by NCHBA and the North Carolina Association of Realtors, the lower limit imposed in the House was restored. Overall, NCHBA was able to successfully amend the bill to incorporate the NCHBA Legislative Committee’s recommendations into the final bill.The final bill requires: • the accumulated surplus of the Beach Plan be retained; • locks surcharges in at the current rate of 5 percent for wind and hail coverage and 15 percent for full homeowners policies (not applicable to dwelling and commercial (See CAPITOL INSIDER on page 6) North Carolina Builder   5

Capitol Insider (continued from page 5) policies); • states that the higher Beach Plan deductible (1 percent statewide) applies only if there is a named storm event; • applies mitigation credits to both the Beach Plan and the voluntary market; • enacts a payment installment plan; • reduces maximum contents coverage to 40 percent of the replacement value of the structure (currently 70 percent) and a corresponding premium decrease; and • authorizes the member companies to be assessed up to $1 billion in the event that losses to the Beach Plan exceed available surplus, reinsurance and other funding sources, followed by a “catastrophe recovery charge” not to exceed 10 percent of the annual policy premium on policies written statewide. In addition, there were significant accountability/disclosure requirements added such as a study of all aspects of the Beach Plan’s operation and the insurance ratemaking process, annual audits, public notice for an increase in rates and to evaluate and revise rate territories to provide more fairness in the establishment of rates. NCHBA strongly supports maintenance and expansion of vocational education programs across the state. As such, HB 1176 Reorganize Schools with High Dropout Rate introduced by Rep. Lorene Coates (D-Rowan) was supported by NCHBA.This bill would require local school boards to reorganize high schools that have a graduation rate of less than 60 percent for two

consecutive years. This would include adding career clusters with work experience courses and technical training. This bill remains eligible for consideration in the short session. NCHBA also joined a coalition of business interests to work on bills that affect business in general and small business specifically. An important bill to businesses across the state is HB 813 Uniform Apportionment of Tort Responsibility introduced by Rep. Rick Glazier (D-Cumberland).This bill would replace the current use of contributory negligence with a system of comparative fault in personal injury cases.While there is a trend nationwide for using comparative fault, the concern is the additional cost to small businesses for liability protection. This bill passed the House and is eligible for Senate consideration in the short session. NCHBA was instrumental in defeating a proposal that would require all employers to use the federal E-Verify system. SB 32 Employers Must Use Federal E-Verify Program introduced by Sen. John Snow (D-Cherokee) failed to receive a favorable report from the Senate Appropriations Committee, due in large part, to NCHBA’s work on the bill. NCHBA opposed the bill, not for what it attempted to do, but because the federal E-Verify system as it exists today is unreliable. NCHBA asked the sponsor to phase in the E-Verify requirement for small businesses, to provide liability protection in case the system gave an incorrect response, and to delay implementation until the federal government established a firm policy on immigration. The sponsor was willing to work with NCHBA and other business groups, but only to make changes to the bill when it crossed over to the House. Many Senators had concerns Mike Carpenter, Rick Judson, Sen. David Hoyle (D-Gaston), Lieutenant Governor Walter Dalton (D-Rutherford), and Lucille Dalton pause for a photo.

6   North Carolina Builder

about the bill, and consequently, the bill did not get out of the Senate. Additionally, NCHBA opposed three bills related to public financing of elections because they are an ill-advised use of tax dollars and could be a restriction on free speech. Neither SB 938 Municipal Public Campaigns introduced by Sen. Don Davis (D-Greene) nor SB 966 Expand Voter-Owned Elections introduced by Sen. Martin Nesbitt (D-Buncombe) were reported favorably out of their respective Senate committees. However, HB 120 Public Municipal Campaigns did pass the House and remains eligible for consideration. NCHBA will continue to watch for and oppose all efforts to expand public campaign financing.

Environment and land-use legislation When considering environmental protection measures, NCHBA urges lawmakers to consider economic costs as well as environmental benefits; urges environmental agencies to base requirements on sound science; supports just and timely compensation to private property owners when land acquisition or restriction is necessary; and prevails upon agencies to remain within their statutory authority when making rules. It is important to recognize that growth is absolutely necessary for a healthy economy. In spite of the recent economic downturn, North Carolina is still growing, albeit more slowly than in the past. Builders respond to housing demand—we do not create the market. NCHBA supports planning and broad-based funding for infrastructure improvements and also supports the revitalization of older suburban and inner-city housing markets. One of the highlights of this session was the passage of SB 831 Extend Certain Development Approvals introduced at NCHBA’s request by Sen. Dan Clodfelter (D-Mecklenburg). The bill extends certain permits, certifications and approvals at both the state and local level until at least Dec. 31, 2010. The bill was signed by the Governor on Aug. 5, 2009 and became Session Law 2009-406. Two additional bills were subsequently passed that clarify parts of this session law. The first is SB 838 Amendments to Environmental Laws 2009 (enacted as S.L. 2009-484), which adds that a person may voluntarily surrender a permit that is “resurrected” or extended due to the passage of SB 831. The second bill, HB 1490 Land Development Permit Changes (enacted as S.L. 2009 572), (introduced originally at NCHBA’s request by Rep. Ty Harrell (D-Wake) as the House companion to SB 831) contains language that specifies a process for local governments to follow when the extended October 2009

Rep. Julia Howard (R-Davie) (sixth), Sen. David Hoyle (D-Gaston) (seventh), Sen. Jim Forrester (R-Gaston (sixth from right), Rep. Grey Mills (R-Iredell) (fourth from right) and Rep. Darrell McCormick (R-Yadkin) (right) pose for a group picture at NCHBA Legislative Day.

or “resurrected” permits cause a water or sewer capacity problem. If awards were given for the most bills introduced on one issue, the winner for the 2009 session would be annexation reform. At least 22 bills, including local and statewide bills, were introduced for the purpose of changing North Carolina’s annexation laws. Two statewide and four local bills proposed annexation moratoria; four bills required a referendum before the annexation could be completed; four required proof that the annexing municipality was providing “meaningful services” to the annexation area; and the rest were complete overhauls of current annexation procedures and requirements. Supporters of annexation reform were vocal and visible the entire session.Numerous rallies were held and committee hearings on all the bills were standing-room only.The most contentious issues pertained to involuntary annexations. NCHBA generally supports annexation and supported the N.C. League of Municipalities (NCLM) in the reform provisions they were willing to accept. Both NCHBA and NCLM opposed all bills dealing with annexation referenda. However, there were other reforms that were incorporated into HB 524 Annexation-Omnibus Changes that NCHBA did not oppose. Unfortunately, an amendment was added to the bill in committee that did require a referendum.The bill is eligible for consideration next session, and we will assist NCLM in attempting to remove that provision. In an effort to curb the abuse of moratoria provisions incorporated in the 2005 rewrite of North Carolina’s planning and zoning statutes, SB 117 Clarifying Development Moratoria Authority was introduced by Sen. David Hoyle (D-Gaston) at NCHBA’s request. While this bill was opposed by the N.C. League of Municipalities, the N.C. Association of County Commissioners and the N.C. Chapter of the American Planning Association, it received overwhelming support in the Senate Commerce Committee and on the Senate floor. SB 117 simply states that cities and counties may not use moratoria for the sole purpose of writing or adopting plans and ordinances. The bill sponsor attempted to calendar the bill in the House Commerce Committee, but was informed that Speaker of the House Joe Hackney (D-Chatham), presumably at the request of his home county, put a hold on the bill. It is still eligible to be heard next session, and NCHBA (See CAPITOL INSIDER on page 8) October 2009

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North Carolina Builder   7

Capitol Insider (continued from page 7) will work very hard to resolve issues with the opposing parties and move the bill through the House. NCHBA tracked several bills pertaining to local planning and zoning. SB 44 Appeals of Quasi-Judicial Land Use Decisions (enacted as S.L. 2009-421) has been introduced in at least two previous sessions and sets forth the procedures for land use permit appeals. NCHBA opposed the bill in previous sessions, but worked with the bill sponsor, Sen. Ellie Kinnaird (D-Orange), and stakeholders to ensure that the rights of builders and developers were not compromised. Ultimately, a compromise bill was agreed upon by all parties, and NCHBA actively supported the bill as it moved through the House and Senate. NCHBA also strongly opposed local bills that would have resulted in extraordinary authority to regulate land use. The towns of Cornelius, Davidson and Huntersville attempted to expand their authority to adopt ordinances regulating the planting, removal and preservation of trees on private property in HB 771Towns/Ordinances Regulating Trees introduced at the towns’ request by Rep. Thom Tillis (R-Mecklenburg). NCHBA soundly defeated this bill in the House Local Government I committee, thus preventing its eligibility in the short session. NCHBA opposed two bills granting authority for Transfer of Development Rights (TDR). Currituck County requested TDR authority in HB 954 Currituck Development Rights introduced by Rep. Bill Owens (D-Currituck) at the county’s request. NCHBA was successful in defeating this bill in the House Local Government II Committee. The second TDR request came from Chatham County in SB 547 Chatham TDR introduced by Sen. Bob Atwater (D-Chatham). This bill was heard in the Senate State and Local Government Committee at the request of the bill sponsor. Due to strong opposition from NCHBA and the N.C. Farm Bureau, a vote was never taken on the bill. The General Assembly did authorize a Legislative Research Commission study of TDR in both Currituck and Chatham Counties as part of HB 945 The Studies Act of 2009. NCHBA vigorously opposed steep slope requirements in previous legislative sessions, and as expected, a bill was introduced again in 2009. HB 782 Safe Artificial Slope Construction Act introduced by Rep. Ray Rapp (D-Haywood) would require local governments to adopt ordinances and regulate site planning, design and construction of artificial slopes in mountainous areas and require disclosure of slope information to property buyers. NCHBA 8   North Carolina Builder

Rep. Ric Killian (R-Mecklenburg) speaks on the House floor.

and other groups vigorously opposed the unnecessarily stringent and costly requirements in this bill, and subsequently, the bill was never heard in committee. Some provisions of the bill were included as one of the studies authorized by HB 945 The Studies Act of 2009. In the waning days of the session, SB 968 Mountain Resources Planning (enacted as S.L. 2009-485), introduced by Sen. Joe Sam Queen (D-Haywood) managed to pass through both the Senate and the House. This bill will create a Mountain Resources Commission to identify issues affecting western North Carolina and will specifically address “growth that protects resources.” NCHBA will be closely monitoring this new commission and the associated technical advisory committees to ensure that the Commission does not become the vehicle to implement costly, unnecessary regulatory hurdles for builders and developers. NCHBA is also concerned that this Commission will attempt to implement steep slope requirements or attempt to get yet another steep slope bill introduced. NCHBA also monitored SB 1068 Permitting of Wind Energy Facilities introduced by Sen. Steve Goss (D-Watauga), which sets out information required for consideration of a wind energy facility permit application, including studies on noise impacts, shadow flicker impacts, avian and bat impacts, and viewshed impacts and establishes an application fee of $2,000. This bill passed the Senate and is eligible for consideration in the short session. As stated earlier, NCHBA supports broad based measures to fund infrastructure improvements and thus supported HB 148 Congestion Relief/Intermodal Transport Fund (enacted as S.L. 2009-527), introduced by Reps. Becky Carney (D-Mecklenburg) and Deborah Ross (D-Wake). This bill authorizes cities and counties across the state to raise sales tax by a half-cent, subject to approval by voters, to fund regional mass transit. Two other bills pertaining to transportation were supported by NCHBA. SB 761 Street

Construction/Developer Responsibility was introduced by Sen. Harry Brown (R-Onslow) and would limit developer responsibility for street and highway construction to the proportional amount necessary to serve projected traffic generated by the development. This bill passed through the Senate and remains eligible for consideration in the short session. NCHBA supported HB 569 DWQ/ Bridge and Culvert Standards (enacted as S.L. 2009-478), introduced by Rep. Pryor Gibson (D-Anson), which directs the N.C. Department of Natural Resources (DENR) to allow the use of three-sided open bottom or bottomless culverts on private property. This bill, introduced in at least one previous session, originally allowed these culverts for all driveway access, but DENR was reluctant to agree to a blanket approval. NCHBA hopes that eventually these culverts will be allowed in public right-of-way. Railroad corridor management has been the topic of several bills in past sessions; however, those bills never moved through committee. This session, at the request of the North Carolina Railroad Co., CSX and Norfolk Southern, Reps. Ray Rapp (D-Haywood), Margaret Dickson (DCumberland) and Ronnie Sutton (D-Robeson) introduced HB 116 Railroad Corridor Management, which proposed changes to the state law concerning railroad corridor management, protection, expansion and mapping. Unlike the previous sessions, railroad corridor management got some momentum in 2009. The House Select Committee on a Comprehensive Rail Service Plan for North Carolina held a number of public meetings between the 2008 and 2009 sessions in an effort to resolve the issues of affected parties. NCHBA attended the meetings, but our issues were not resolved. NCHBA opposed the bill in the House Transportation Committee and the House Judiciary III Committee. Eventually, the bill sponsors were amenable to making changes that would better protect developers from having to get approval from the railroad companies prior to local government approval. NCHBA did not oppose the compromise bill that passed the House, and HB 116 is eligible for consideration in the Senate next year. Finally, it wouldn’t be a General Assembly session without NCHBA’s involvement in water quality issues! This year the battle was for more reasonable water quality rules in the Jordan Lake watershed. In May 2008, the Environmental Management Commission (EMC) approved 189 pages of rules for the watershed that were technically complex, prohibitively expensive, based on marginal science, and difficult to comply with. Thanks to the efforts the Triad Real Estate October 2009

and Building Industry Coalition (TREBIC), which is comprised of members and local HBAs in the Greensboro area as well as the local governments tasked with implementing the rules, more reasonable rules will be implemented. NCHBA supported HB 239 Restore Water Quality in Jordan Reservoir (enacted as S.L. 2009-216), introduced by Rep. Lucy Allen (D-Franklin).While HB 239 did take care of the existing development rule and other issues, it did not address the unreasonable nutrient buydown limits developers would have to meet if the EMC’s rules went into effect. At the request of NCHBA and TREBIC, combined with support from DENR, Rep. Allen introduced a provision into SB 838 Amendments to Environmental Laws 2009 (enacted as S.L. 2009-484), that corrected the Jordan Lake nutrient buydown limits such that the water quality results are the same, but required treatment could take place off-site. Water quality, this time in the Falls Lake reservoir, was the topic of SB 1020 Improve Upper Neuse Basin Water Quality (enacted as S.L. 2009-486), introduced at the request of the city of Raleigh by Sen. Josh Stein (D-Wake). NCHBA was initially opposed to this bill, but was able to work with the sponsor, the HBA of Durham, Orange and Chatham Counties and other stakeholders to craft an acceptable compromise that did not impose burdensome requirements for builders and developers.

Tax and revenue legislation NCHBA supports efforts to increase housing opportunities and opposes any proposal that unnecessarily increases the cost of housing. NCHBA encourages passage of tax credits for energy-efficient homes and tax incentives for home ownership. NCHBA strongly supports green building and incentives for both home builders and home buyers. In keeping with our long standing support of initiatives that support affordable housing, NCHBA applauds General Assembly for the appropriation of $10 million to the North Carolina Housing Trust Fund. NCHBA also strongly supported SB 810 Affordable Housing/No Discrimination (enacted as S.L. 2009-533), introduced by Sen. Floyd McKissick (D-Durham).This bill makes it a violation of the North Carolina Fair Housing Act to discriminate in land-use decisions or permitting if the development contains affordable housing for families or individuals below 80 percent of area median income, among other criteria.The bill does allow decisions to be based on considerations of over-concentration of affordable housing and other criteria such as traffic and environmental concerns. This is landmark legislation, as North Carolina is the first October 2009

Rep. Ty Harrell (D-Wake) addresses members at a Raleigh-Wake HBA meeting, where he was recognized for sponsoring the permit extension bill in the House of Representatives.

state in the nation to include affordable housing as a protected class in its fair housing law. One of NCHBA’s priority issues was deferral of tax on builders’ inventory, and HB 852 Defer Tax on Builders Inventory was introduced by Rep. Margaret Dickson (D-Cumberland). This bill allows the deferral of the portion of tax imposed on real property that represents the increase in property value attributable to construction of a residence on the property. HB 852 was enacted as Session Law 2009-308 and becomes effective in January 2010. NCHBA, assisted by the Wilmington-Cape Fear HBA, actively pursued requirements for local governments and sanitary districts to notify the public of their intentions to raise fees. In spite of considerable pushback from the N.C. League of Municipalities and N.C. Association of County Commissioners, SB 698 City/ County/Sanitary District Fees/Internet, was introduced at our request by Sen. Julia Boseman (D-New Hanover). This bill requires cities, counties and sanitary districts that have a Web site to post notice on that site of their intention to increase fees at least seven days in advance of the meeting where the increase is first discussed. After much negotiation, all parties eventually agreed on the bill and it was enacted as Session Law 2009-436. NCHBA was pleased to see a number of bills introduced that would provide a tax credit to buyers of either a new or existing home. Unfortunately, the state’s $1.4 billion budget deficit prevented any of these provisions from being enacted. NCHBA appreciates the efforts of a number of home building industry champions in the legislature who introduced or co-sponsored tax credit legislation. NCHBA supported the following bills: SB 912/HB 1240 Home Purchase Stimulus introduced by Sen.

David Hoyle (D-Gaston) and Rep. Michael Wray (D-North Hampton); HB 663 North Carolina Ten in Ten Plan introduced by Rep. Ric Killian (R-Mecklenburg); and SB 818 New or Existing Home Purchase Tax Credit introduced by Sen. David Rouzer (R-Johnston). The same budget woes that stopped enactment of home buyer tax credit legislation also stopped enactment of energy efficiency and green building tax credits. NCHBA appreciates the additional lobbying and legislator education effort put forth by the NCHBA Green Building Council and remains optimistic that in better budget times the momentum is on our side to get these important incentives in place. NCHBA supported SB 147/HB 504 Tax Credit for Energy Efficient Homes introduced by Sen. A.B. Swindell (D-Nash) and Reps. Susan Fisher (D-Buncombe), Pricey Harrison (D-Guilford), Bruce Goforth (D-Buncombe) and Ruth Samuelson (R-Mecklenburg). While this tax credit was not included in the recommendations forwarded to the House Finance Committee by the House Energy and Energy Efficiency Committee, a provision was added to HB 945 The Studies Act of 2009 that authorizes broad examination of renewable energy and alternative fuel tax credits, including incentives for energy conservation.

Conclusion In spite of this challenging time for the economy and for businesses, the 2009 session will be remembered as one of the most successful for NCHBA.The secret to NCHBA’s success was, is and always will be the visionary leadership of its officers, the hard work of its legislative lobbying team, the support of its members, the legitimacy of the cause, and the invaluable help of Senators and Representatives who champion the cause of the home building industry in North Carolina. In times of economic stress, it is all the more important that NCHBA and its members remain vigilant to guard against those who, however wellintentioned, would impose additional barriers to homeownership and to ensure that our friends in the General Assembly remain in office and occupy positions of leadership and responsibility. You can help preserve home ownership and the viability of the residential construction industry by being a BUILD-PAC contributor, participating in NCHBA’s Legislative Conference in 2010, and taking the time to be a “legislative contact” locally on issues that affect the home building industry. 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 homeownership! North Carolina Builder   9

TOP 2009 LEGISLATIVE ISSUES

ur Government Affairs staff actively monitored 531 “new” bills introduced into this year’s “long” session. Because the residential construction industry has so many diverse interests that can be affected by legislation, this total represents 19 percent of the entire number of “new” bills (2,767) introduced. The following compilation summarizes the top legislative issues of interest to NCHBA and is organized by category, bill number, short description, NCHBA position, and disposition. THE NUMERICAL LISTING IS BY CATEGORY AND NOT BY ORDER OF PRIORITY. For more detailed information about these or other bills not included, please contact NCHBA at (800) 662-7129. Bill Number/Short Title/Description

NCHBA Position

DISPOSITION

I. Building Code 1. H 749 Use of Cisterns in Construction/Renovation—Directs the state building code to allow the use of cisterns in construction and to be used for flushing toilets and outdoor irrigation.

Supported by NCHBA.

Enacted (S.L. 2009-243)

2. H 1151 Res. Lead-Based Paint Hazards/Renovations— Establishes a state program that meets EPA requirements for certification of persons performing lead-based paint renovation work in certain residential housing where children are present.

Worked with bill sponsor to ensure the state program was not more stringent than federal requirements. As amended, supported by NCHBA.

Enacted (S.L. 2009-488)

3. H 1125 Require Photoelectric Smoke Detectors— Requires photoelectric smoke detectors be used in new or renovated homes or when homes are sold. The code would require the installation of either battery operated or electrical smoke detectors in every dwelling unit that is either used as rental property, or that contains a fossil fuel-burning heater or appliance, fireplace or an attached garage.

NCHBA strongly opposed legislation and convinced sponsor not to calendar bill for consideration.

Stopped. Presumed ineligible for 2010.

4. H 1409 Building Code Exclusion/Certain Wiring— Provides that a permit shall not be required for repair or replacement of electrical lighting fixtures or devices or for the connection of an existing branch circuit to an electric water heater that is being replaced, provided that the replacement water heater is placed in the same location and is of the same or less capacity as the original and that the electrical lighting device replacement is with a fixture or device having the same voltage and the same or less amperage as the original.

Supported by NCHBA.

Enacted (S.L. 2009-532)

II. Construction and Business 5. H. 1176/S. 424 Reorganize Schools with High Dropout Rate— Requires local school boards to reorganize high schools that have a graduation rate of less than 60% for two consecutive years. Includes adding career clusters with work experience courses and technical training.

Supported by NCHBA.

Passed House. Eligible for consideration in 2010.

6. H. 813 Uniform Apportionment of Tort Responsibility —Would replace the current use of contributory negligence with a system of comparative fault in personal injury cases.

NCHBA opposed. NCHBA is working with a coalition of business interests to defeat or reasonably modify this bill in 2010.

Passed House. Eligible for consideration in 2010.

7. S. 32 Employers Must Use Federal E-Verify Program— Requires all employers to use federal E-Verify system. Contains substantial penalties for non compliance.

Opposed by NCHBA.

Stopped. Presumed ineligible for consideration in 2010.

8. H. 1305 Beach Plan Changes—Addresses concerns regarding Beach Plan insurance availability. Requires accumulated surplus of the Beach Plan to be retained; locks surcharges in at current rate; applies higher Beach Plan deductible only if there is a named storm; applies mitigation credits to Beach Plan and voluntary market; enacts an installment plan; reduces maximum contents coverage to 40% with corresponding premium decrease; authorizes member company assessments up to $1 billion if Beach Plan losses exceed available surplus, reinsurance and other funding sources and sets maximum coverage limit for homeowners and dwelling policies at $750,000.

NCHBA successfully lobbied for several significant changes to the legislation in both the House and Senate.

Enacted (S.L. 2009-472)

9. H. 120 Public Municipal Campaigns, S. 938 Municipal Public Campaigns and S. 966 Expand Voter-Owned Elections—Expands the offices eligible for public financing.

NCHBA strongly opposed these bills.

10. H. 1022/S. 975 Worker’s Comp/Duration of Total Disability—Limits an employee’s entitlement to receive disability compensation services to either 65 years of age or 300 weeks from the date of injury, whichever is longer.

Supported by NCHBA.

10   North Carolina Builder

H. 120 passed House. Presumed eligible for consideration in 2010. Stopped Senate Bills. Presumed ineligible for consideration in 2010. Did not pass; however, authorization for a Legislative Research Commission study of these issues was included in the Studies Act of 2009. October 2009

TOP 2009 LEGISLATIVE ISSUES Bill Number/Short Title/Description

NCHBA Position

DISPOSITION

II. Construction and Business 11. H. 805 Workers’ Comp/Calculation of Income, H. 843 Workers’ Comp/Medical Diagnostic Testing, S. 781 Workers’ Comp/Choice of Physician, S. 930 Workers’ Comp/Firefighter Occupational Diseases—All include workers compensation requirements that would significantly increase insurance premiums.

NCHBA strongly opposed all of these bills.

Stopped. Presumed ineligible for consideration in 2010.

III. Tax and Revenue 12. H. 176/S. 125 Housing Trust Fund Appropriation (Appropriations Act of 2009)—Appropriates $10 million to the N.C. Housing Finance Agency.

Strongly supported by NCHBA.

Appropriation included in S.L 2009-451.

13. S. 810 Affordable Housing/No Discrimination—Makes it unlawful to discriminate in land-use decisions or in permitting of development based on the fact that a development contains affordable housing units for families/individuals with incomes below 80% of the area’s medium income.

Strongly supported by NCHBA.

Enacted (S.L. 2009-533)

14. S. 447 No Monetary Exaction for Development— Clarifies that a local government may not impose a tax, fee or monetary contribution for development or a development permit that is not specifically authorized by law.

Introduced at the request of and strongly supported by NCHBA.

Currently held in Senate Finance Committee.

15. S. 698 City/County/Sanitary District Fees/Internet— Requires entities to post notice at least seven days in advance of the discussion of new fees or increases on their website.

Introduced at the request of and strongly supported by NCHBA.

Enacted (S.L. 2009-436)

16. H. 1240/S.912 Home Purchase Stimulus, H. 663 North Carolina Ten in Ten Plan, S. 818 New or Existing Home Purchase Tax Credit—Various tax credits for the purchase of new or existing homes in North Carolina

Strongly supported by NCHBA.

Not included in Appropriations Act of 2009.

17. H. 1385 Water Conservation Tax Credits/Reforms, H. 1596 Tax Credit/Water Con. Products and Property, H. 504/S. 147 Tax Credit for Energy Efficient Homes— Various tax credits for purchase or installation of energy efficient products and for construction of energy efficient homes.

Supported by NCHBA.

Study of renewable energy and alternative fuel tax credits, including incentives for energy conservation, authorized in Studies Act of 2009.

18. H. 852 Defer Tax on Builders Inventory—Allows deferral of the portion of tax imposed on real property that represents the increase in value of the property attributable to improvements resulting from the construction of a residence on the property.

Introduced at the request of and strongly supported by NCHBA.

Enacted (S.L. 2009-308)

19. H. 1431 Repeal Land Transfer Tax, S. 915 Repeal County Land Transfer Tax—Repeals 2007 Session authorization of county referendum for 0.4% land transfer tax.

Supported by NCHBA.

Bills were not calendared in assigned committees.

IV. ENVIRONMENT AND Land Use 20. S. 866 APA Rules: Increasing Costs Prohibition— Prohibits agencies from adopting rules that result in additional costs to persons subject to the rule.

Supported by NCHBA.

Passed Senate. Eligible for consideration in 2010.

21. H. 524 Annexation – Omnibus Changes—Makes significant changes to North Carolina annexation laws.

Most provisions supported by NCHBA. Amendments needed in short session.

Passed House. Eligible for consideration in 2010.

22. S. 1068 Permitting of Wind Energy Facilities—Sets out information required for consideration of a wind energy facility permit application and establishes $2,000 application fee.

Monitored by NCHBA.

Passed Senate. Eligible for consideration in 2010.

23. S. 831 Extend Certain Development Approvals, H. 1490 Land Development Permit Changes—Extends certain permits and approvals affecting land development superseding all statutory and regulatory requirements. H. 1490 contains clean-up language that specifies a process for local governments to follow when the extended or “resurrected” permits cause a water or sewer capacity problem.

Introduced at the request of and strongly supported by NCHBA.

Enacted (S.L. 2009-406 and S.L. 2009572)

(See TOP ISSUES on page 12)

October 2009

North Carolina Builder   11

TOP 2009 LEGISLATIVE ISSUES Bill Number/Short Title/Description

NCHBA Position

DISPOSITION

IV. ENVIRONMEnt AND Land Use Stopped. Eligible to be studied.

24. H. 782 Safe Artificial Slope Construction Act—Requires local governments to adopt ordinances and regulate site planning, design and construction of artificial slopes in mountainous areas; directs Sedimentation Control Commission to assist local governments in implementing safe slope construction programs; requires slope information disclosure to property purchasers.

NCHBA opposed these unnecessarily stringent and costly requirements.

25. H. 954 Currituck Development Rights, S. 547 Chatham TDR—Authorizes the transfer of development rights from sending zones to receiving zones.

NCHBA strongly opposed these bills.

H. 954 stopped in House Local Government II Committee. S. 547 remains in Senate State & Local Government Committee. TDR study for Currituck and Chatham counties authorized in Studies Act of 2009.

26. S. 117 Clarifying Development Moratoria Authority— Clarifies that a local government may not impose a moratorium on development approvals for the purpose of developing and adopting a new or revised development ordinance.

Introduced at the request of and strongly supported by NCHBA.

Passed Senate. Eligible for consideration in 2010.

27. S. 968 Mountain Resources Planning—Creates Mountain Resources Commission to identify issues affecting western NC.

Monitored by NCHBA.

Enacted (S.L. 2009-485)

28. H. 116 Railroad Corridor Management—Relates to management, protection and expansion of railroad corridors, it defines “railroad corridor” and sets up requirements for mapping such corridors and abandonment certificates.

NCHBA opposed introduced bill. Compromise bill supported by NCHBA.

Passed House. Eligible for consideration in 2010.

29. S. 44 Appeals of Quasi-Judicial Land Use Decisions— Sets forth procedures for land use permit appeals from quasijudicial decisions.

NCHBA opposed introduced bill. NCHBA worked with bill sponsor and stakeholders and supported compromise bill.

Enacted (S.L. 2009-421)

30. H. 148 Congestion Relief/Intermodal Transport Fund— Authorizes referenda for half-cent sales tax to fund regional mass transit in Triangle area; authorizes other funding measures for transit across NC.

Compromise bill supported by NCHBA.

Enacted (S.L. 2009-527)

31. H. 569 DWQ/Bridge Culvert Standards—Directs DENR to authorize the use of 3-sided, open bottom or bottomless culverts on private property that adhere to professional engineering standards and sound engineering practices.

Supported by NCHBA.

Enacted (S.L. 2009-478)

32. S. 761 Street Construction/Developer Responsibility— Limits cost to developers for street or highway construction to the proportional amount necessary to serve projected traffic generated by the development.

Supported by NCHBA.

Passed Senate. Eligible for consideration in 2010.

33. H. 771 Trees/Ordinances Regulating Trees—gives Towns of Cornelius, Davidson and Huntersville authority to adopt ordinances regulating tree removal and preservation on residential lots.

NCHBA strongly opposed.

Stopped. Presumed ineligible for consideration in 2010.

34. H 239 Restore Water Quality in Jordan Reservoir— Provides for improvements in water quality management of Jordan Lake watershed.

Compromise bill supported by NCHBA. Worked with bill sponsor to amend new development requirements in S. 838.

Enacted (S.L. 2009-216)

35. S. 838 Amendments to Environmental Laws 2009—Contains Jordan Lake new development amendments and clarification to S. 831.

Amended at the request of and strongly supported by NCHBA.

Enacted (S.L. 2009-484)

36. S. 1020 Improve Upper Neuse Basin Water Quality— Directs the Environmental Management Commission (EMC) to credit local governments and landowners for pollution reduction in Falls Lake watershed; requires EMC to adopt sedimentation strategy for Falls Lake watershed.

NCHBA opposed introduced bill. NCHBA worked with bill sponsor and stakeholders and supported compromise bill.

Enacted (S.L. 2009-486)

37. H. 945 The Studies Act of 2009—Authorizes numerous studies during the interim.

Monitored by NCHBA.

Presented to Governor on 8/11/09.

38. H. 1007 Harnett/Subdivision Recreation Facilities— Authorizes the imposition of impact fees up to $500/lot in Harnett County and expands the purposes for which the funds may be used to include construction and development of recreational facilities.

NCHBA strongly opposed.

Stopped. Presumed ineligible for consideration in 2010.

39. H. 1011 Raleigh Stormwater Assessment—Permits the City of Raleigh to levy assessments against owners of stormwater facilities for repairs to damaged or failed controls.

Supported by NCHBA.

Enacted (S.L. 2009-293)

12   North Carolina Builder

October 2009

North Carolina Builder   13

Product Roundup:

Building Systems

Stimulating in more ways than one Tradition lives on

A new stimulus package

To help celebrate 50 years in business, Nationwide Custom Homes commemorates the milestone with the Tradition model home. The 2,540-square-foot, two-story home is designed specifically to capture the historical elements of Southeastern heritage, while capturing the latest in today’s design trends. As part of Nationwide’s Mainstreet Collection, the Tradition offers a very pleasing exterior look with a nod toward Jeffersonian elements. On the inside, the model includes the company’s anniversary package with such notable features as a full ceramic backsplash with electrical outlets mounted below the overhead cabinets, a craftsman trim and stair railing package, and engineered hardwood flooring. The plan includes a media room, a small sitting area at the top of the stairs that’s perfect for a mini-office or reading area, four bedrooms and twoand-a-half baths. As part of the Mainstreet Homes collection, builders can market the house as “what-you-see-is-what-you-get.” The rendering shown on the cut sheet is what customers can expect when ordering the home. All elements shown in the rendering and corresponding photo are included in Nationwide’s anniversary package, even the porch materials for on-site completion. For more information, visit www.nationwide-homes.com or call (800) 216-7001.

In response to builders asking for cost-efficient houses to suit so many of their customers in these penny-pinching times, Cardinal Homes has “value” engineered some of its most popular models and reintroduced them to the market in a cost-savings line the company calls its “Stimulus Housing.” To make the homes more affordable, Cardinal has made changes such as using double windows where several single windows may have been and offering the standard 2-by-4 exterior walls at 16 inches on center at the same price as the 2-by-6 walls at 24 inches on center. To date, there are a ranch priced less than $34 a square foot, a two-story going for about $30 a square and a cape for less than $40 per square, not including freight or taxes. Soon to come is a much larger ranch-style home. s The Oakridge is an Currently, Cardinal is taking suggestions affordable 2,352-square-foot from its builders on what they would like four-bedroom, four-bath house to see in this more affordable line. The that’s part of Cardinal Homes company plans to re-engineer about one Stimulus Housing line. plan a month. For more information, visit www.cardinalhomes.com or call (434) 735-8111.

To commemorate 50 years in business, Nationwide Custom Homes, which since June 2002 has operated as a Palm Harbor division, added the Jeffersonianinfluenced Tradition to its Mainstreet Homes collection.

An affordable charmer s From a nearly 1,600-square-foot, three-bedroom ranch-style home to a fivebedroom Cape Cod that encompasses nearly 2,500 square feet, the new Timberland series from Handcrafted Homes can be configured to fit the needs of a wide variety of North Carolina families. There are seven standard models to choose from — including one with an in-law suite — with compact footprints that work great on small lots. Standard features include timber posts, corner post braces and porch railings. For more information, visit www.handcraftedhomes.com or call (877) 424-4321. 14   North Carolina Builder

Log home dealers wanted Contrary to recent economic trends, the log and timber frame home is a steadily growing industry.With increasing concerns about finite resources and the impact of global warming,“green build” is not only fashionable but is becoming necessary. As far as sustainability goes, logs are obviously a renewable resource. Plus, thick log exterior walls mediate temperature differentials, improve energy efficiency, reduce potentially hazardous waste products and provide a healthy interior finish with no off gassing of VOCs. Traditional joinery techniques have been refined to develop an airtight and energy-efficient log building. 1867 Confederation Log Homes, a Canada-based manufacturer who has been in the business for more than 30 years, is not experiencing any economic downturn. “Due to the natural choice of wood for green build, we’re seeing a healthy demand for product,” says Mark Dunn, director of business development. In fact, the company is seeking people interested in joining its team of international dealers. 1867 Confederation Log Homes’ credentials include being the manufacture to receive Energy Star approval for a log home in Canada. Each of its homes is engineered and prebuilt in shop, assembled and inspected to consistently maintain top quality. “It’s definitely a growth market with a lot of income potential,” says Dunn. “We have an internationally recognized product with a solid reputation and we back our product with a 50-year guarantee.” For more information, visit www.confederationloghomes.com or call Dunn at (877) 462-5647. October 2009

NCH194 Builders Ad

9/11/09

5:10 PM

Page 1

We’ve spoken.

Green Made Easy

Appraisal-friendly Mainstreet Collection

Now take the Nationwide challenge. Results speak louder than words. That’s why Nationwide’s promise of Custom Made Easy has helped hundreds of builders survive these challenging times. Beyond product, Nationwide offers our builders a sales and marketing system that grows sales. Nationwide's Independent, Authorized Builders get leads and the support necessary to turn them into sales. Are you ready for change? Take the Nationwide challenge and schedule a visit. See for yourself how we can help you build and sell the successful way. Call 1.800.216.7001 to learn about the many benefits of building with Nationwide.

www.nationwide-homes.com

October 2009

North Carolina Builder   15

Knowledge Builder Tips from your industry experts at Builders Mutual

Manufactured or real risk?

or consumers and contractors accustomed to “site-built” and “stickbuilt,” the factory-built housing industry introduces a host of unfamiliar terms. It brings with it competitive advantages because of the controls a manufacturing environment offers, but it subsequently inherits risks unseen in its stick-built counterpart. Maybe you’re looking to get into the business. Maybe you’re looking to stack your business up against it. Or, maybe you’re a manufacturer or an employee in the factory-built housing industry. Regardless, you have a stake in understanding the advantages and disadvantages of the systemsbuilt side of housing.

Learning the lingo Let’s start with the terminology. When the HUD code went into effect in 1976, the term “mobile home” made way for “manufactured housing.” These factory-built homes get constructed on a permanent steel chassis and get delivered on their own wheels to the home site. Not to be confused with manufactured housing, “modular homes” also get constructed in a factory, yet these homes get built and transported in sections. Site contractors join these modules together at the marriage walls. Picture a home complete with appliances and carpeting getting spliced together with finishing trim work. Known as “panelized” in the systems-built world, you’ll also find floor or roof trusses or even wall systems, which are engineered at the factory and delivered to the home site. Log home kits fall into the “pre-cut home” category and serve as yet another variation in the factorybuilt housing industry. Each method differs based on factors such as: • Cost • Quality controls • Amount of factory vs. site construction • Total construction time • Applicable building code (local, regional or state vs. HUD) • Transportation methods • Foundation permanency • Likelihood of appreciation 16   North Carolina Builder

Using universal language The language of risk management brings the world of stick-built and factory-built homes together. While the hazards are different, the concept of identifying and analyzing risks and selecting, implementing, and reviewing risk management techniques doesn’t change. So, what unique risks does the factory-built housing industry encounter? Facility maintenance. Factory maintenance personnel are a must-have. They should be highly responsive both in fixing broken equipment and actively operating a preventative maintenance program. Safety features should be regularly tested, such as the E-Stop buttons on automated equipment. Management’s creation of an employee incentive program for reporting and tracking maintenance issues demonstrates true company-wide support. Employees working in close proximity. With multiple homes under construction in a factory in tight quarters, crews will be working in close proximity, whereas a stick-built home will likely have no more than two subs on a job site at the same time. This increases a manufacturer’s chances of one crew’s work injuring another nearby, especially when they’re using nail guns or power tools. Manufacturers may want to periodically review if an underlying cause of accidents could be prevented by reconfiguring workflow. It also reiterates the importance of caution, proper PPE and each crew’s responsibility for good housekeeping. Repetitive motion. Employees, while experienced from specialized training, may find themselves repeating the same task their entire shift. For example, one employee’s sole job required him to bolt doors to pre-assembled door frames for eight hours each day. In the interest of ergonomics, avoiding repetitive motion injuries, and engaging employees’ attention, employers can require preshift stretching. Some companies insist upon micro-breaks, where employees stop work for 2-3 minutes each hour, rehydrate and perform prescribed stretches. Pair this with employees who specialize in doing three to four different tasks for two to three hours each, and you’ve

not only exemplified a strong risk management technique, you’ve cross-trained your employees so they can cover for one another if an employee cannot work a scheduled shift. Powered industrial trucks. Who has the right-of-way? Are traffic lanes marked and stop signs and speed limits posted? Rely on both a formal written and hands-on training program to comply with established policies for the safety of operators and other employees onsite. Visitors. Employees aren’t the only people at the factory. Visitors of all kinds, including curious consumers, need to be accounted for in a company’s safety program. With a few simple steps, they’ll be well protected. Maintain and light the parking lot properly, remove tripping hazards, and provide safe entryways with clearly-marked steps and adequate handrails. Welcome them to the office area and direct them away from the plant floor using high-visibility signage. You may even consider locking doors to the plant in compliance with the life safety code by using plant doors that have no visitor-facing handles, but have crash bars on the inside. Shipping/receiving. Provide the same kind of direction for truck drivers. Establish policies where they can and can’t park. Include expectations for wheel chocking and the use of stabilizer jacks to protect forklift drivers, who offload the trailers. Then, when the product (whether a fully finished home, module, panel or kit) leaves the manufacturer, it becomes exposed to a host of transportation hazards far different from the controls in the factory environment. Finally, the manufacturer or site contractor takes it to turnkey with site setup. While factory-built homes might be manufactured, the risks are real.That’s exactly why a company’s commitment to risk management will help protect its employees, its customers and its profitability.

(Look for “Knowledge Builder,” compliments of Builders Mutual Insurance Co., in each issue of North Carolina Builder. More risk management resources are available on www.buildersmutual.com.) October 2009

At ,A mOment like this,

Aren t yOu glAd yOu hAve Builders mutuAl?

Construction debris can do irreparable damage to the unprotected eye.

ur WorkSafe program provides our policyholders with valuable information and safety training to avoid accidents like this one.

Your very own field expert can provide free individual consultation at the jobsite and help you control losses. Plus, our policyholders have unlimited access to Builders University OSHA-approved safety courses, English/Spanish Fall Protection Certification, and our risk management CD containing valuable safety reference material. We even offer discounted “Safety Stuff,” like the attractive safety glasses above, through our online store. Staying safe and productive is just a matter of having the right tools.

October 2009

800.809.4859 www.buildersmutual.com

North Carolina Builder   17

2009 NCHBA build-pac Major Contributors (Pledges/Contributions received as of Aug. 12 2009)

Knights of the Round Table ($4,000/year) Tom Gipson Raleigh-Wake County HBA

Pauline McLean Wilkes County HBA

Frank Wiesner Durham-OrangeChatham Cos./ Raleigh-Wake County HBAs

Capitol Club ($2,500/year) Andy Ammons Raleigh-Wake County HBA

Lyle Gardner Raleigh-Wake County HBA Zac Koenig Jackson County HBA

Debby Van Tassel Raleigh-Wake County HBA

President’s Circle ($1,000/year) Danny Adams Moore County HBA Linda Lee Allan Fayetteville HBA Dent Allison Hickory-Catawba Valley HBA Jeff Ammons Raleigh-Wake County HBA Kevin Annas Caldwell County HBA Rex Bost Raleigh-Wake County HBA Bunny Boyd Iredell County HBA Harold Brewington Fayetteville HBA Kurt Burger Raleigh-Wake County HBA Mike Carpenter North Carolina HBA Elizabeth Cubler Outer Banks HBA Jim Derrickson Raleigh-Wake County HBA Nadine DiIorio Charlotte HBA Ralph Doggett Alamance-Caswell HBA

Don Fraley Raleigh-Wake County HBA Charles Gore Fayetteville HBA Tom Granger Hickory-Catawba Valley HBA Sam Hagedon Outer Banks HBA Karl Haslinger Charlotte HBA Gary Hill Greensboro BA Joseph Iannone Raleigh-Wake County HBA Rose Iannone Raleigh-Wake County HBA Rick Judson Charlotte HBA Lisa Martin North Carolina HBA Frank McLawhorn Greenville-Pitt County HBA Tim Minton Raleigh-Wake County HBA Craig Morrison Durham-OrangeChatham Cos. HBA

Charles Mullen Rocky Mount HBA Paul Mullican Winston-Salem HBA David Pressly Iredell County HBA Lisa Reason Craven-Pamlico Cos. HBA Ray Rhodes Sanford HBA Steve Royster Asheville HBA John Schlichenmaier Raleigh-Wake County HBA Rick Shields Lake Norman HBA Warren Smith Raleigh-Wake County HBA Craig Stevens Wilmington-Cape Fear HBA Jim Stuart Raleigh-Wake County HBA Nick Tennyson Durham-OrangeChatham Cos. HBA Jackie Trinchitella Fayetteville HBA

Stephen Eastman Raleigh-Wake County HBA Rick Frye Raleigh-Wake County HBA Darrel Hamilton Ashe County HBA Wayne Holt Raleigh-Wake County HBA

Larry Howard Durham-OrangeChatham Cos. HBA Joe Tarascio Carteret County HBA Lance Youngquist Raleigh-Wake County HBA

VIP ($500-$999) Carolyn Armstrong Fayetteville Grant Bridges Winston-Salem Dohn Broadwell Fayetteville Jay Burke Alamance-Caswell HBA Bill Daleure Charlotte

18   North Carolina Builder

NCHBECF awards five scholarships

he North Carolina Home Builders Educational & Charitable Foundation selected five students as recipients of education scholarships in 2009. The scholarship awards are presented annually to four-year college students entering their junior or senior year or two-year technical school students entering their second year who have declared a construction-related major. Scholarships are based on a combination of need and merit, and are awarded to NCHBA family members. Preference goes to students attending college or technical school in North Carolina.

The following students each received $3,000 scholarships for the 2009-2010 school year: Zachary Hussey of Robbins Hussey is continuing his education at the University of North Carolina at Charlotte. He graduated in spring 2009 from Sandhills Community College with a degree in civil engineering technology and surveying technology, and is pursuing a degree in civil engineering technology at UNC-C. Hussey has worked with his father, a 30-year veteran home builder, and enjoys the exposure of the various trades involved in seeing a construction project from start to finish. In his spare time, he enjoys archery/hunting, water sports, ATV trail riding, weight lifting and playing guitar. Matthew Mounie of Marvin Mounie studies construction management and business at Appalachian State University. Each summer he works for his father’s company, New Wave Development, which he hopes to run some day with the help of his brothers. Mounie says his biggest accomplishment was earning the Eagle Scout award because of the hard work, determination and leadership skills needed to achieve the goal. Donald Smith Jr. of Matthews Smith is majoring in construction management at the University of North Carolina at Charlotte. He has gained experience in the building industry helping his father with his construction company, Embassy Homes Inc. Smith is a member of Pi Kappa Alpha and enjoys sports. He was named “Most Dedicated Runner” during his freshman year on the cross country team at UNCC.

Hussey

Mounie

Smith

Willis

Jacob Willis of Morehead City Willis is majoring in mechanical engineering at the Page University of North Carolina at Charlotte. He plans to get his master’s degree and enter the HVAC industry to design economically and ergonomically acceptable commercial and residential HVAC systems. In his spare time, Willis enjoys drag racing, sports and working on cars. With the help of his dad and brother, he recently built his own drag racing car to race at the NHRA tracks.

The following student received a $1,500 scholarship: Donald Page of Pfafftown Page received a scholarship for the fall 2009 semester, as he completes his construction management degree at East Carolina University in Greenville. Page came to the decision to enroll in construction management from his past experience building homes for impoverished families with his church group and also through his experience working at West End Construction in Winston-Salem. He is a member of the Golden Key International Honor Society and serves as the Vice President of Sigma Lambda Chi (Construction Management Honor Fraternity/Society). October 2009

Spike of the Month Name: Nicole L Gossage Company: Fuquay Floor to Ceiling Interior Design Showroom Position: Design Consultant /Kitchen and Bath Specialist Gossage How long in business: 16 years Spike credits: 57.5 HBA: HBA of Johnston County HBA involvement: Board of Directors – six years; Co-Chair of Parade of Homes; CoChair of Associate Committee, Membership Committee - Spike Chair; Associate of the Year Harnett County HBA 2000; Associate of the Year HBAJC 2004-2008 Marital status: Married to Scott L. Gossage for 4 ½ years Favorite food: Any type of chicken and pasta Favorite movies: “Sweet Home Alabama,” “Dirty Dancing,” “Steel Magnolias” Favorite magazine: NKBA Kitchen & Bath Design, Good Housekeeping Ideal vacation: Any place warm with sand and no cell phone service Hobbies: Hanging out with family and friends, raising money for American Cancer Society, singing and, of course, any type of design Pets: Daisy, a 4-year-old Beagle First job: Lighting consultant at “ The Lighthouse” in Dunn If you had 15 minutes in front of the NCHBA membership, what would you say about recruitment/retention? If you truly believe in any type of organization, recruiting is easy. I wholeheartedly believe in being a member of the NCHBA and do my best to pass the enthusiasm I have for the organization along when in a “recruitment or retention” situation. For me, as an Associate Member, the opportunities to network with builders and other associates are priceless.The knowledge I have gained through educational seminars has become a part of my everyday work system. Just getting a check and a membership application does not mean that the new member will be active member, I make sure to personally invite and attend the new member orientation and general membership meeting with my new “recruits” so they have an opportunity to see exactly what the association has to offer. Retention is making sure that they know they make a difference and that the association can make a difference for them. October 2009

BMIC course offers timely advice to builders

uilders Mutual Insurance Co. successfully piloted a new policyholder course called “Building for the Future” Aug. 18 at its Raleigh headquarters. “In celebration of Builders Mutual’s 25th anniversary, we felt that it was important to give something back to our customers,” Mike Gerber, Builders Mutual SeniorVice President and Chief Marketing Officer, told the 32 participating builders.“We are here today to help you position your business so that you’re ready when the market recovers.” The all-day session began with Ed Dunnavant of Metrostudy Corp., who provided an overview of the current Triangle area housing market. Participants then heard personal success stories from Virginia builder Vince Butler of Butler Brothers Corp., who stressed the importance of planning for the future of your business and varying your business strategies for new opportunities. The day ended with a comical overview of “Leadership Land Mines,” written by local author Marty Clarke. Through a mix of humor and real life examples, Clarke shared a variety of tips to help builders delegate, motivate others and communicate in tough times. According to Michele Hemric, director of training and development for Builders Mutual, post-class survey results showed that builders who attended the program felt it was full of timely and useful information. Many felt the class helped them think in different directions and provided clarity on what to try going forward. Raleigh builder Warren Smith of L and L of Raleigh Inc. commented “Building for the Future gives me one more reason to be a member of my HBA and a client of Builders Mutual.” Builders Mutual is considering future offerings of “Building for the Future.” All current Builders University course offerings are available at www.buildersmutual.com/bu.

North Carolina Builder   19

NCHBA News HBAs honored at EOC conference

ocal home builders associations in North Carolina took home seven Association Excellence Awards at the 2009 Executive Officers Council Seminar in Louisville, Ky., this past August. Caroline Sutton, executive director of the Asheville Home Builders Association, received the David G. Lloyd Memorial “New Executive Officer of the Year” Award, which honors the most outstanding executive officer in the

s Caroline Sutton of the Asheville Home Builders Association, the newly named New Executive Officer of the Year, receives congratulations from Tim Minton of the HBA of Raleigh-Wake County, last year’s recipient of the prestigious award.

Tankless water heaters take up less floor space.

country with three years or less experience. Since coming to the AHBA, Sutton and her staff have doubled the membership, added unique networking events and added an extensive education program for those in the home building industry. This year marks the second consecutive year a North Carolina executive officer took home the prestigious award, with Tim Minton of Raleigh-Wake County HBA receiving the award last year. The Lake Norman HBA received an impressive five awards: • Best of the Lake Design Competition, an annual competition that allows designers, builders and trade craftsmen to showcase their talents and projects, received the Best Member Recognition Program/Event award. • LNHBA Parade of Homes Plan Book was recognized as Best Communication to Members–Special Events Publication. • The Big Hunter 2008 LNHBA Membership Drive won for Best Membership Recruitment Plan Implemented;

• Lake Norman HBA University received the Best Education Plan Implemented Award; and • LNHBA’s Web site, www.lnhba.com, was honored for Best HBA Web Site The Asheville HBA took home honors for the Best Communication to Members – Newsletters/Newspapers for it monthly AHBA Blueprints newsletter. Congratulations to Sutton and the Lake Norman and Asheville HBAs for their dedication and hard work.

Heat pump rebate offered

uke Energy is currently offering a $300 rebate on high-efficiency heat pumps (at least 14 SEER with an ECM motor). In new construction, the rebate goes to the builder. In an existing home, the rebate is split between the homeowner ($200) and the HVAC contractor ($100). Builders and dealers who sign up as a Trade Ally will be listed as a participating vendor on the Duke Energy Web site. For more information, visit the Web site at http://www.duke-energy.com/north-carolina/ savings/smart-saver.asp.

Hot water on demand means reduced energy bills.

What makes tankless propane water heaters ideal for you and your clients? Let’s count the ways: Compact design frees up room. Hot water on demand means lower water heating bills (up to 60% less). Innovative construction gives them a longer life expectancy. And they’re easier to install. Smaller and more energy-efficient, tankless water heaters are an ideal way to increase cash flow. For more details, They also last longer.

contact your local propane retailer or visit usepropane.com.

North Carolina Propane Association 5109 Hollyridge Drive, Raleigh, NC 27612 919-787-8485

20   North Carolina Builder

October 2009

The benefits of Home Advantage are

easy to grasp

Get a competitive advantage in today’s market. With Home Advantage from Progress Energy, you can stand out when you build ENERGY STAR® certified homes that are 15 percent more energy efficient than standard homes. You’ll also receive valuable cash incentives starting at $400 per home. Plus, each home you build to Home Advantage standards comes with a 5 percent Progress Energy homeowner discount for the lifetime of the home.

home advantage

For details on becoming a Home Advantage builder visit progress-energy.com/CarolinasHA or call 1.800.327.8704

October 2009

North Carolina Builder   21

5580 Centerview Drive Raleigh, NC 27606

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

22   North Carolina Builder

October 2009