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THE
NAIL The official magazine of Home Builders Association of Middle Tennessee President Justin Hicks Vice President David Hughes Secretary/Treasurer Steve Shalibo Executive Vice President John Sheley Editor and Designer Jim Argo Staff Connie Nicley Hannah Garrard
THE NAIL is published monthly by the Home Builders Association of Middle Tennessee, a non-profit trade association dedicated to promoting the American dream of homeownership to all residents of Middle Tennessee. SUBMISSIONS: THE NAIL welcomes manuscripts and photos related to the Middle Tennessee housing industry for publication. Editor reserves the right to edit due to content and space limitations. POSTMASTER: Please send address changes to: HBAMT, 9007 Overlook Boulevard, Brentwood, TN 37027. Phone: (615) 377-1055.
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FEATURES 9 Maximizing the space in your home
Check out these five trends that are helping home owners maximize the space in their homes.
11 HBAMT’s 2019 Golf Event set for August 15th
The HBAMT’s big summer event is right around the corner! Sign up now for the James Hardie Golf Tournament this August at the Legends Golf Club.
15 James Hardie Parade of Homes at The Grove
The popular annual event returns this fall for a two-week, three weekend run at The Grove. Sign up now to participate as an advertiser or exhibitor during the Parade.
Advertise in
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DEPARTMENTS 6 News & Information 17 SPIKE Club Report 18 June Calendar 18 Chapters and Councils
Visit http://www.hbamt.org/nail.html and click The NAIL Advertising Rates (pdf) to download rates and registration form Email jargo@hbamt.org for more details
ON THE COVER: Maximize the space in your home using these five design trends. More details on page nine. June, 2019
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news&info
New home sales post solid rate of 673,000 in April
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ales of newly built, single-family homes fell 6.7 percent to a seasonally adjusted annual rate of 673,000 units in April after a sharp upwardly revised March report, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The March sales pace of 723,000 units was the highest monthly rate since the Great Recession, and the April figure was the third-highest pace. “After a challenging final quarter of 2018, data for the start of the year shows stabilization and modest growth for home sales,” said Greg Ugalde, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Torrington, Conn. “Our builder surveys show that traffic is steadily increasing. The challenge facing builders is how to deal with ongoing supply-side constraints
The strong March sales pace was due to a combination of lower interest rates and the use of builder price incentives. 6 The NAIL
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such as a lack of buildable lots and labor that are putting upward pressure on housing costs.” “The strong March sales pace was due to a combination of lower interest rates and the use of builder price incentives,” said NAHB Chief Economist Robert Dietz. “At the same time, the April sales report was a solid number coming off a very strong March reading.” A new home sale occurs when a sales contract is signed or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the April reading of 673,000 units is the number of homes that would sell if this pace continued for the next 12 months. The inventory of new homes for sale was 332,000 in April, representing a 5.9 months’ supply. The median sales price was $342,200. The median price of a new home sale a year earlier was $314,400. Regionally, and on a year to date basis, new home sales rose 1.3 percent in the Midwest, 6.7 percent in the West and 10.3 percent in the South. Sales fell 17.6 percent in the Northeast. n
Housing starts solid in April, builder confidence on the rise
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otal housing starts rose 5.7 percent in April to a seasonally adjusted annual rate of 1.24 million units from an upwardly revised reading in March, according to a report from the U.S. Housing and Urban Development and Commerce Department. The April reading of 1.24 million is the number of housing units builders would begin if they kept this pace for the next 12 months. Within this overall number, single-family starts increased 6.2 percent to 854,000 units. The multifamily sector, which includes apartment buildings and condos, increased 4.7 percent to a 381,000 pace. “Builders remain cautious due to affordability concerns,” said NAHB Chairman Greg Ugalde. “But as our builder confidence survey shows, their expectations indicate consumers will respond to lower interest rates moving forward and the housing market will continue on a slow, steady climb.” “Though an overall encouraging report for the month of April, the soft permit numbers for single-family housing indicate concerns about housing affordability and construction costs,” said NAHB Chief Economist Robert Dietz. “Builders continue to focus on managing home construction costs as they try to meet growing housing demand. NAHB analysis of first quarter permit data show growth in more affordable exurban locations.” Regionally, combined single-family and multifamily starts in April rose 84.6 percent
in the Northeast and 42 percent in the Midwest. Starts declined 5.7 percent in the South and 5.5 percent in the West Overall permits, which are a harbinger of future housing production, edged up 0.6 percent to a 1.3 million unit annualized rate in April. Single-family permits fell 4.2 percent to 782,00, the lowest level since October 2016. Multifamily permits increased 8.9 percent to 514,000. Looking at regional permit data, permits rose 2.2 percent in the Midwest and 5.3 percent in the West. Permits fell 4 percent in the Northeast and 1.2 percent in the South. Builder confidence edges higher in April Builder confidence in the market for newly-built single-family homes rose three points to 66 in May, according to the latest NAHB/ Wells Fargo Housing Market Index (HMI) released today. Builder sentiment is at its highest level since October 2018. “Builders are busy catching up after a wet winter and many characterize sales as solid,
Confidence in apartment/condo housing weakens in first quarter
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onfidence in the market for new multifamily housing weakened in the first quarter of 2019, according to results from the Multifamily Market Survey (MMS) released today by NAHB. The MMS produces two separate indices: the Multifamily Production Index (MPI) dropped seven points to 40 compared to the previous quarter, which is the lowest reading since the third quarter of 2010. Meanwhile, the Multifamily Vacancy Index (MVI) rose three points to 48, with higher numbers indicating more vacancies. The MPI measures builder and develop-
er sentiment about current conditions in the apartment and condo market on a scale of 0 to 100. The index and all of its components are scaled so that a number below 50 indicates that more respondents report conditions are getting worse than report conditions are improving. “Builders and developers are being cautious to see what happens with projects that were recently completed,” said Gary Campbell, CEO of Gilbert G. Campbell Real Estate in Lowell, Mass., and chairman of NAHB’s Multifamily Council. “However, we’re seeing that developers are reasonably optimistic about what’s ahead
driven by improved demand and ongoing low overall supply,” said Ugalde. “However, affordability challenges persist and remain a big impediment to stronger sales.” “Mortgage rates are hovering just above 4 percent following a challenging fourth quarter of 2018 when they peaked near 5 percent. This lower-interest rate environment, along with ongoing job growth and rising wages, is contributing to a gradual improvement in the marketplace,” said Dietz. “At the same time, builders continue to deal with ongoing labor and lot shortages and rising material costs that are holding back supply and harming affordability.” Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/ Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor. All the HMI indices posted gains in May. The index measuring current sales conditions rose three points to 72, the component gauging expectations in the next six months edged one point higher to 72 and the metric charting buyer traffic moved up two points to 49. Looking at the three-month moving averages for regional HMI scores, the Northeast posted a six-point gain to 57, the West increased two points to 71, the Midwest gained one point to 54, and the South rose a single point to 68. n
for units on the affordable end of the spectrum.” “The recent weakness in the MPI is consistent with our forecast for 2019,” said NAHB Chief Economist Robert Dietz. “Multifamily housing starts experienced a gain in 2018. Even after a slight decline for starts in the first quarter of 2019, permit growth is occurring, and production should level off moving forward. The market remains dominated by rental production, with a 94 percent share at the start of 2019.” Historically, the MPI and MVI have performed well as leading indicators of U.S. Census figures for multifamily starts and vacancy rates, providing information on likely movement in the Census figures one to three quarters in advance. For data tables on the MPI and MVI, visit nahb.org/mms. n June, 2019
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Five design trends to maximize space These popular trends can help you fully utilize the available space in your home.
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n today’s market, five trends have emerged to help home buyers maximize the space in their homes — whether it’s 1,000 square feet or 10,000 square feet. Joseph Atalla of Berkeley Building Company and Wayne Visbeen, AIA, IIDA, of Visbeen Architects explained these trends, including examples from their own projects, during their IBS educational session, “Floor Plan Solutions: Minimum Waste & Maximum Space.” be invited to write inspirational “Notes of Love” on the studs before they are wrapped in drywall. This will allow the family to feel the support of their community each time they enter their home. Upon completion, a dedication ceremony will be held for the family to receive their keys and view
their home for the first time. The home is expected to be completed by September, 2019. 1. Right sizing. “Right sizing is about giving you the spaces you need and you’ll enjoy living in, without putting money into the things you won’t,” Visbeen explained. That could include shrinking a master bedroom to create a nicer closet, enhancing technology features instead of creating an entire home theater area, or incorporating smaller touchdown spaces in lieu of a dedicated home office. One space in particular that has gone by the wayside is the formal dining room, in part because people rarely use it. “In 90% of our
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homes, we’ve taken the dining room out,” Visbeen noted, adding that it’s usually more cost efficient for buyers to take their friends out to a nice restaurant three or four times a year (which is how often they’d likely use that dining room). 2. Outdoor living. Outdoor living spaces aren’t just for homes in California, Atalla joked. Instead, there are ways to add livable space — often more cost effectively for buyers. In Atalla’s Boise, Idaho-based market, for example, covered patios are a staple design feature, which can be enhanced with materials such as concrete and features such as shades. Sitting walls can create natural seating areas, and operable screens can help separate rooms when needed. 3. Fireplaces. “Think about how to use fire to add beauty to any area of your design,” Visbeen encouraged. Linear fireplaces allow designers to get more creative with placement — including innovative spots such as the bathroom, garage or even an exercise room — and more flexibility for TV installation. Fireplaces can also be used to create transitional space between rooms, or enhance a room’s aesthetic with color and texture.
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4. Storage space. “We all know no matter how big your house is, you never feel like you have enough storage,” Atalla noted. “When you have a small footprint, you have to be smart about how you can create more of that storage.” Examples include taking advantage of nooks for customized mudroom benches or shelving, expandable kitchen tables that nest within each other, and unique his-and-hers closet designs, like this 2018 BALA Game Changer. 5. Transitional/flex space. Similar to creating touchdown spaces over a home office, flex spaces utilize more space by providing additional functionality. This may be a TV room-turnedguestroom, courtesy of a Murphy bed, or a sitting room accessible from both the living room and the master bedroom as a relaxation space for anyone to use. Flex spaces may also allow buyers to plan ahead for future needs. Storage closets, for example, can be stacked to create the framework for an elevator at a later date. To view this presentation and other IBS educational seminars, visit the 2019 IBS Education On-Demand Library. n
Please return your completed registration form (provided below) to the HBAMT to enter. ALL COMPANIES & SINGLE PLAYERS ENTERING MUST BE A MEMBER OF THE HBAMT.
CONTACT ________________________________ COMPANY _____________________________________ EMAIL ___________________________________ PHONE ________________________________________ Print names of players. Four (4) players per team ($220.00 per player). Players reserving for ONE only ($235.00) will be assigned a foursome. 1.) _________________________________________ 2.) _____________________________________________ 3.) _________________________________________ 4.) _____________________________________________ Check your preference (to accommodate all golfers we are hosting two rounds): r Morning Round | r Afternoon Round _______ No. of players x $220.00 or One (1) player for $235.00 | Make checks payable to HBAMT; call 377-1055 to pay by cc Return: HBAMT - 9007 Overlook Blvd, Brentwood, TN 37027 | Fax: 615-377-1077 | Email: cnicley@hbamt.net
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2019 Golf Tournament Sponsorships!
The 8th Annual HBAMT Golf Tournament returns Thursday, August 15 to The Legends Club in Franklin. Sign up now to sponsor at one of the following levels! selection
sponsorship level
price/availability
benefits
TITLE SPONSOR
$10,000 1 available
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Company name featured as headliner on all materials Booth at registration, awards wrap-up & course hole Opportunity to hand out promotional materials Signage provided Foursome package to play in the tournament Four (4) tickets to kick-off breakfast Four (4) tickets to luncheon grill-out Four (4) tickets to wrap-up and Kick-off Party
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SOLD
Lunch Sponsor
$5,000 1 available
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Company name featured as Lunch Sponsor on all material Booth at check-in and Golf Tournament course hole Opportunity to hand out promotional materials Four (4) tickets to Wrap-up and Kick-off Party
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Breakfast Sponsor
$2,500 1 available
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Company name featured as Breakfast Sponsor on all material Booth at check-in and Golf Tournament course hole Your booth will be breakfast ticket pick up point for all golfers Opportunity to hand out promotional materials Two (2) tickets to Wrap-up and Kick-off Party
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KICK-OFF EVENT
$5,000 1 available
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Company name featured on all Kick-off event materials Booth at Kick-off event & on Golf Tournament course hole Hand out promo materials at Kick-off event & course hole Signage at Kick-off event and Golf Tournament provided Four (4) tickets to Kick-off Event
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$1,000 9 available
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Single hole sponsor for both morning & afternoon rounds Opportunity to hand out promotional materials at hole Signage at tournament provided Opportunity to hand out information & goodies Two (2) tickets to wrap-up and Kick-off event
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Silver Sponsor
$600
l Hole sponsor for both morning & afternoon rounds l Opportunity to hand out promotional materials at hole l Two (2) tickets to wrap-up and Kick-off event
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Hospitality Cart
$1,500 2 available
l Hospitality cart with your name on it l Opportunity to ride cart in morning & afternoon rounds moving freely within the course handing out beverages & goodies
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Wrap-up Party Sponsor
$2,500 1 available
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(pre tournament party)
Title Sponsor
Gold Sponsor
Company name featured as Wrap-up Sponsor on all material Booth at check-in and Golf Tournament course hole Opportunity to hand out promotional materials Two (2) tickets to Breakfast and Kick-off Party
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Indicate which of the seven (7) sponsorship levels shown above you selected and return the completed form below to the HBAMT to sign up today! (List company EXACTLY as you want it to appear on signage.) CONTACT _________________________________ COMPANY ___________________________________ EMAIL ____________________________________ PHONE ______________________________________ Your Name (print) ____________________________ Signature ____________________________________ 12 The NAIL
Return to: HBAMT - 9007 Overlook Blvd, Brentwood, TN 37027 l Fax: (615) 377-1077 l Email: cnicley@hbamt.net l
June, 2019 HBAMT does not allow subletting of any of services, products, promotional opportunities or memberships.
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James Hardie Parade of Homes The 2019 Parade of Homes at The Grove
ADVERTISE & EXHIBIT
If your company depends on new homes or related products, furnishings or services, here’s one opportunity you can’t pass up -- the 2019 James Hardie Parade of Homes at The Grove! Secure your space in the Plan Book or reserve an Exhibit Booth today.
THE PARADE PLAN BOOK
THE PARADE EXHIBIT BOOTH
At every Parade event each attendee is handed a magazine as they walk through the front gate - the Parade Plan Book.
Here’s your chance to demonstrate your product or service to the thousands of qualified prospects who pass through the Parade of Homes exhibit center when they enter and leave the show. As with Plan Book advertising, the exhibit center produces virtually all pre-qualified customers!
The Plan Book is a tremendous opportunity to put your message into the hands of pre-qualified customers who refer to the book several months after the Parade of Homes is over! Plan Book Advertising Rates Half Page 7.5” x4.75” (Horizontal) Full Page 7.5”x10” 8.75”x 11.25” (B1eed) *Page One 7.5”x10” 8.75”x11.25” (Bleed) *Inside Front Cover Inside Back Cover *Double Truck Back Cover
$800 $1,200 $1,600 $2,100 $2,300 $2,840 $3,250
*specialty locations sold. Email jargo@hbamt.net for ad specs and availability.
It’s like opening up shop and having thousands of prospects visit your showroom the first two weeks you’re in business. What other medium could come close to producing those kinds of results? The Parade ranks first of all home shows in the nation and you can take advantage of the prestige this show enjoys. Exhibit Booth Price? $750 Each booth in the Parade of Homes exhibit center measures 10’ x 6’ at the front entrance where patrons must enter and exit -- perfect for eye-popping kiosks and marketing publications!
2019 PARADE OF HOMES - PROMOTIONAL OPPORTUNITIES COMMITMENT FORM
Return completed form to: HBAMT, 9007 Overlook Blvd., Brentwood, TN 37027 | Fax: 615/377-1077 | Email: jargo@hbamt.org
PLAN BOOK AD - please check the size of ad you would like to secure in the 2019 Plan Book:
r Half Page
r Full Page
r Page One
r Inside Front
r Inside Back
r Back Cover
r 2-Page Spread
EXHIBIT BOOTH SPACE - please check here to secure your 2019 Exhibit Booth Space: r Your name: ____________________________________ Company: _____________________________________ Cell: _________________________________________ Email: _________________________________________ Total amount being paid: $___________ Credit Card _______________________ Credit Card # _______________________________ Exp. ____________ Credit Card V-Code _______________
The “v-code” is found on the back of the card, usually printed or embossed atop or near the signature strip.
It is comprised of three digits found to the right of a longer number.
Signature ____________________________________________________________________________________ 16 The NAIL
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SPIKE REPORT Davis Lamb 206 Jackson Downey 182 Tim Ferguson 177 Jim McLean 164
Eighteen SPIKES (in bold) increased their recruitment numbers last month. What is a SPIKE? SPIKES recruit new members and help the association retain members. Here is the latest SPIKE report as of April 30, 2019. Top 20 Big Spikes Jim Ford 912 Virgil Ray 821 Bill King 776 Mitzi Spann 769 Terry Cobb 570 Jim Fischer 566 John Whitaker 561 Trey Lewis 446 James Carbine 394 Jennifer Earnest 368 David Crane 320 Kevin Hale 300 Jimmy Franks 285 Reese Smith III 261 Steve Moody 219 Sonny Shackelford 219
Life Spikes Harry Johnson 146 Steve Cates 142 C.W. Bartlett 138 Tonya Esquibel 138 Sam Carbine 136 Randall Smith 131 Kevin Woodward 123 Jordan Clark 119 B.J. Hanson 119 Steve Hewlett 119 Carmen Ryan 117 Helmet Mundt 115 John Zelenak 114 David Hughes 111 Dave McGowan 108 Edsel Charles 106 Wiggs Thompson 103 Michael Dillon 101 Justin Hicks 100 Duane Vanhook 100 Jeff Zeitlin 87 Joe Morgan 85 Christina Cunningham 84 Erin Richardson 77 Beth Sturm 73 Keith Porterfield 72 Jeff Slusher 70
Lori Fisk-Conners 69 Sam Henley 65 Nick Wisniewski 63 Don Bruce 62 Eugene James 61 Ron Schroeder 61 Marty Maitland 60 Jody Derrick 59 John Broderick 55 Steve Shalibo 52 Derenda Sircy 52 Andrew Neuman 50 John Ganschow 49 Ashley Crews 45 Phillip Smith 45 Bryan Edwards 44 Ricky Scott 44 Rick Olszewski 43 Christina James 30 Don Mahone 30 Frank Tyree 30 Brandon Rickman 29 Frank Jones 26 Spikes Joe Dalton 19 Nicole Bird 15 Perry Pratt 15 Jeffrey Caruth 13 Rob Pease 11 Tammy Chambers 10 Will Montgomery 10 Eric DeBerry 9
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JUNE Calendar Sunday
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
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Sales & Marketing Council meeting
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Dickson County Chapter meeting
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Metro/Nashville Chapter meeting
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Chapters & Councils CHAPTERS CHEATHAM COUNTY CHAPTER Chapter President - Roy Miles: 615/646-3303 Cheatham County Chapter details are being planned. Next meeting: to be announced. Chapter RSVP Line: 615/377-9651, ext. 310 DICKSON COUNTY CHAPTER Chapter President - Mark Denney: 615/446-2873. The Dickson County Chapter meets on the third Tuesday of the month, 12:00 p.m. at Colton’s Steakhouse in Dickson. Next meeting: Tuesday, June 18. Topic: to be announced. Price: Meeting FREE, lunch dutch treat. Chapter RSVP Line: 615/377-9651, ext. 264 MAURY COUNTY CHAPTER Maury County Chapter details are currently being planned. Next meeting: to be announced. Chapter RSVP line: 615-377-9651, ext. 312; for callers outside the 615 area code, 1-800-571-9995, ext. 312 METRO/NASHVILLE CHAPTER Chapter President - Tonya Esquibel The Metro/Nashville Chapter meets on the fourth Thursday of the month, 11:30 a.m. at the HBAMT offices. Next meeting: Thursday, June 27. Topic: to be announced. Builders Free pending sponsorship. Price: to be determined. Chapter RSVP Line: 615/377-9651, ext. 261 ROBERTSON COUNTY CHAPTER
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Next meeting: to be announced. Robertson County RSVP line: 615-377-9651, ext. 313.
sponsorship; $20 for non-members with RSVP ($25 w/o). Council RSVP Line: 615/377-9651, ext. 308
SUMNER COUNTY CHAPTER Chapter President - Joe Dalton: 615/972-7149 The Sumner County Chapter meets on the fourth Tuesday of the month, 11:30 a.m. at the new Hendersonville Library. Next meeting: to be announced. Chapter RSVP Line: 615/377-9651, ext. 262
HBAMT REMODELERS COUNCIL Council President - David Crane. The HBAMT Remodelers Council meets on the third Wednesday of the month at varying locations. Next meeting: to be announced. 11 a.m. to 12:30 p.m. at a location to be determined. Topic: to be announced. Price: free with RSVP. Council RSVP Line: 615/377-9651, ext. 263
WILLIAMSON COUNTY CHAPTER Chapter President - B.J. Hanson: 615/884-4935. The Williamson County Chapter meets on the third Tuesday of the month, 11:30 a.m. at the HBAMT offices. Next meeting: to be announced. Builders Free pending sponsorship. Price: $10 per person with RSVP ($20 w/o RSVP). Chapter RSVP Line: 615/377-9651, ext. 305 WILSON COUNTY CHAPTER The Wilson County Chapter meets on the second Thursday of the month, 11:30 a.m. at the Five Oaks Golf & Country Club in Lebanon. Next meeting: to be announced. Chapter RSVP Line: 615/377-9651, ext. 309 COUNCILS GREEN BUILDING COUNCIL Council President - Erin Richardson: 615/883-8526. The Green Building Council meets on the fourth Wednesday of the month, 11:00 a.m. Next meeting: to be announced. Price: free for Green Building Council members pending
INFILL BUILDERS COUNCIL The Infill Builders Council typically meets on the third Thursday of the month, 11:30 a.m. at the HBAMT offices Next meeting: to be announced. Price: to be announced. RSVP to: 615/377-9651, ext. 265. MIDDLE TENN SALES & MARKETING COUNCIL Council President - Jeffrey Caruth. The SMC typically meets on the first Thursday of the month, 9:00 a.m. at the HBAMT offices. Next meeting: Thursday, June 6, 9:00 a.m. at the HBAMT. Topic: “How to Maximize RealTrac’s New Platform and Increase Your Visibility,” with Donna Christ Johnson. SMC members free thanks to THDA; non-SMC members $25 w/RSVP, $35 w/o RSVP Council RSVP Line: 615/377-9651, ext. 260.
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