AZHB_0705_Layout 1 10/4/10 2:33 PM Page 1
Qualified Solar Installer Program APS designates 32 residential solar installers for Arizona.
Dynamic Maple Wood Grain Armstrong’s maple cabinets create a vibrant look for kitchens.
HB
Second Session Recap Legislators pass eight new bills that affect homebuilding industry.
The Premier Magazine for the
Arizona HomeBuilding Industry theHBmag.com
TM
J.D. POWER REPORT How Buyers Rank Valley Homebuilders
A SPACES ODYSSEY Shea SPACES Offers Smart Homes for Tech-Savvy Buyers
This Issue’s Builder Profile:
PREFAB... REDEFINED Customized Options Are the New Variable p.14
$4.95US $5.95CAN
L
480
443
7750
[plus]
07>
P
I
September/October 2010 COVER IMAGE: Shea SPACES at Seville
3Industry News 3New Product Showcase 3Association News
AZHB_0705_Layout 1 10/1/10 11:14 AM Page 2
IN THIS ISSUE /// September/October 2010
HB14 Features TM
Shea SPACES Embracing a New Concept in Living Spaces
P.
An emerging group of tech-savvy buyers want homes that offer the smart, practical and modern principles they value in their own lives.
18
How Buyers Rank Valley Homebuilders J.D. Power Releases 2010 Customer Satisfaction Study Nationwide, overall customer satisfaction has improved for a third consecutive year— the highest level since the inception of the study in 1997.
20
Prefab … Redefined The New Variable is Customization Are American home buyers ready for a modern prefab concept that allows for customization? The market is still skeptical.
2
theHBmag.com
24
What’s New Under the Sun? APS Offers Qualified Solar Installer Program In the only program of its kind in Arizona, 32 residential installers became the first to be designated as APS Qualified Solar Installers.
AZHB_0705_Layout 1 9/30/10 3:33 PM Page 3
Everyone loves a café. Now, everyone can have one.
GE Café™ is GE’s first new line of appliances in 15 years, and it’s an exciting new sales opportunity. With stainless steel exterior and robust styling, builders and new home buyers will want to make it the centerpiece of their new home. For remodelers and their customers, the GE Café will easily transform any kitchen with restaurant-inspired design. At long last, everyone can afford to have an inviting café – right at home. www.geappliances.com/café Come see our fine GE Appliances at Westar Kitchen & Bath at the Tempe, Scottsdale, Peoria and Tucson locations. Phone: (602) 271.0100
AZHB_0705_Layout 1 10/1/10 11:20 AM Page 4
IN THIS ISSUE /// September/October 2010
P. 24 P. 12
P. 28
HB Departments TM
8
Publisher’s Note
10
NAHB News
12
Legislative Update
24
Industry Spotlight
28
New Product Showcase
On the Cover With interesting architectural features, etched glass garage, front door options, and nine exterior color packages to choose from, homeowners have more options to make the home their own. Qualified Solar Installer Program APS designates 32 residential solar installers for Arizona.
Dynamic Maple Wood Grain Armstrong’s maple cabinets create a vibrant look for kitchens.
HB
Second Session Recap Legislators pass eight new bills that affect homebuilding industry.
The Premier Magazine for the
Arizona HomeBuilding Industry theHBmag.com
TM
J.D. POWER REPORT How Buyers Rank Valley Homebuilders
A SPACES ODYSSEY Shea SPACES Offers Smart Homes for Tech-Savvy Buyers
This Issue’s Builder Profile:
PREFAB... REDEFINED Customized Options Are the New Variable p.14
[plus] L
4
theHBmag.com
480
443
7750
P
I
September/October 2010 COVER IMAGE: Shea SPACES at Seville
Industry News New Product Showcase Association News
AZHB_0705_Layout 1 9/30/10 3:56 PM Page 5
Showcase Your New Home Communities. Be a part of Arizona’s only local new homes website and increase your market share!
• The only comprehensive, easy-to-use new homes website for Arizona with interactive maps, video and photo presentations. • New home shoppers are driven directly to newhomestoday.com through local magazines, TV and billboard. • Backed by New Homes Today magazine the #1 print resource in Arizona for new homes.
Get your leads today! Contact us at: 480.443.7750 www.lpimultimedia.com
AZHB_0705_Layout 1 9/30/10 4:01 PM Page 6
VOLUME 7, ISSUE 5 /// September/October 2010
HB TM
The Premier Magazine for the
Arizona HomeBuilding Industry
VOLUME 7, ISSUE 5 September/October 2010
FINALLY! A TRUE HOME IMPROVEMENT AND REMODELING RESOURCE LIKE NOTHING ELSE IN THE VALLEY!
PRESIDENT Trifon M. Kupanoff, Jr. PUBLISHER Michael A. Kupanoff EDITOR Tammy LeRoy EDITORIAL INTERNS: Travis Duprey, Trey Warren CREATIVE DIRECTOR Neal McDaniel WEB DEVELOPER Theo Tigno
I N S P I R AT I O N S • L I F E S T Y L E S • S O L U T I O N S
SUBSCRIPTIONS Phone: 480.443.7750 ext. 312 Email: distribution@lpimultimedia.com ACCOUNTING Phone: 480.443.7750 ext. 312 Email: accounting@lpimultimedia.com CONTRIBUTING WRITERS: Bernie Pallissard, Ken Peterson, Cornelia Stumpf EDITORIAL AND ADVERTISING OFFICE: HB Magazine 15170 N. Hayden Road, Ste. 5, Scottsdale, AZ 85260 Phone: 480.443.7750 • Fax: 480.443.7751 Email: editor@lpimultimedia.com PLEASE SEND ADDRESS CHANGES TO: HB Magazine 15170 N. Hayden Road, Ste. 5, Scottsdale, AZ 85260 REPRINTS/E-PRINTS: Call 877.652.5295 or Email: sales@wrightsreprints.com
Providing homeowners with products, services and timely editorial to enhance their lifestyles and increase the value of their homes.
HB Magazine is published six times per year by LPI Multimedia Inc. Opinions expressed are those of the authors or persons quoted and not necessarily those of LPI Multimedia Inc. While efforts to ensure accuracy are exercised, the publisher assumes no liability for the information contained in either editorial or advertising content. Publisher assumes no responsibility or liability for unsolicited manuscripts or artwork. Reproduction in whole or part without the expressed written consent from the publisher is prohibited. HB Magazine is the registered trade name of this publication. Copyright ©2010 by LPI Multimedia Inc. All rights reserved. LPI Multimedia Inc. is a proud member of:
A DV E RT I S I N G O P P O RT U N I T I E S AVA I L A B L E
CALL FOR MORE INFORMATION! HB Magazine is a subsidiary of
480.443.7750 x311 thi@lpimultimedia.com todayshomeimprovement.com
6
theHBmag.com
15170 N. Hayden Road, Ste. 5, Scottsdale, AZ 85260 T 480.443.7750 F 480.443.7751 www.lpimultimedia.com
AZHB_0705_Layout 1 9/30/10 4:03 PM Page 7
AZHB_0705_Layout 1 9/30/10 4:06 PM Page 8
PUBLISHER’S Note /// September/October 2010
H B SEEN. Help us keep our subscription list current! If you or a colleague would like to receive HB at no charge and are not currently on our subscriber’s list, go to theHBmag.com and click on “Subscribe.”
Signature Screws Create a cleaner, more attractive deck.
Evolutionary Estimator Save time and energy with satellite imagery.
Dynamic Designs Aluminum panels add pizzazz to walls.
ne for The Premier Magazi
ing Industry
-AZ.com HOMEBUILDER
TM
FRAMING RE SOFTWA t costly
Preven errors and delays
GREENE
FROM TH OUTSIDE IN This Issue’s Builder
cy with Increase efficien panels ed structural insulat
Profile:
CE TRENDS APPLIAN style functionality with
s blend Today’s kitchen
p.17
[plus]
Industry Spotligse New Product Showca Association News ht
$4.95US
L
07>
$5.95CAN
480 443
7750
P
I
2009 November/December COVER IMAGE: Vision Lennar Homes’ in Gilbert at Layton Lakes
Satisfaction Guaranteed With the release of J.D. Power and Associates’ 2010 U.S. New-Home Builder studies, we at HB want to congratulate Valley builders for their success. In the Phoenix market, ratings for “new-home quality” improved by 26 points over 2009 scores. And the average “overall customer satisfaction” score in our market came in at 46 points above the national average—an impressive 29-point increase from 2009. In fact, the average customer satisfaction score among Phoenix homebuilders is higher than any of the other 16 markets evaluated in the 2010 study. Be sure to read our feature story on the J.D. Power study for more details. You’ll also find in this issue interesting articles on managing homeowners’ expectations and on the latest innovations in pre-fab homes. For our builder profile, we highlight Shea Homes’ SPACES concept. Today’s new-home buyers are looking for sleek, energy efficient designs that eliminate the lavish, space-wasting features of their parents’ dream homes.
the
Build Arizona Home
HB
Industry News: Local and national news for homebuilders
“ ... the average customer satisfaction score among Phoenix homebuilders is higher than any of the other 16 markets ...”
THE MOST
This issue’s Green Spaces column shares information on APS’s Qualified Solar Installer program, and Legislative Update provides a recap of the bills passed in Arizona’s second legislative session that affect the homebuilding industry. For the remainder of 2010, HB magazine looks forward to serving our readers and advertisers by providing informative and helpful editorial in the only print and online publication dedicated specifically to Arizona’s homebuilding industry.
AFFORDABLE
WAY TO
REACH YOUR
HOMEBUILDERS! theHBmag.com
8
theHBmag.com
Michael A. Kupanoff mkupanoff@lpimultimedia.com
AZHB_0705_Layout 1 9/30/10 4:10 PM Page 9
Southwest Metro Phoenix • Northwest Metro Phoenix • Southeast Metro Phoenix (east) • Southeast Metro Phoenix (west)
Lead new home buyers
straight to your front door!
Direct mailed to 280,000 households! 40,000 copies delivered to real estate offices! From the Northwest Valley to the far Southeast Valley, New Homes Today Map Guide reaches 70,000 targeted households per zone. Over 320,000 potential new home buyers Valleywide!
Now reach potential new home buyers for as little as 1¢ per household!
newhomestoday.com
Mapguide Call 480.443.7750 today for your free sample and more information or mkupanoff@lpimultimedia.com
AZHB_0705_Layout 1 9/30/10 5:07 PM Page 10
NAHB News
HOUSING STARTS RISE Nationwide total housing starts rose 10.5 percent to a seasonally adjusted annual rate of 598,000 units in August, bringing the pace of production more in line with the level of construction activity before the home buyer tax credit temporarily stimulated housing sales earlier this year, according to U.S. Commerce Department. While most of the month’s gain occurred on the multifamily side, singlefamily housing production, which increased 4.3 percent to 436,000 units, was still 9.1 percent below August 2009 as builders struggled to obtain finance and remained cautious about sustained demand. “The vast majority of builders in this country operate small, single-family homebuilding firms and they are struggling to obtain acquisition, development and construction financing that will enable them to meet the current level of buyer demand and put more Americans back to work,” says Bob Jones, NAHB chairman and a homebuilder from Bloomfield Hills, Mich. “The housing market has been in a holding pattern as the economy stalled in the second and third quarters. Construction activity returned to prehome buyers tax credit levels in August as builders replaced sold single family homes and begin replenishing apartment building supply after a three year steady decline in multifamily construction,” says NAHB chief economist David Crowe. “Consumer uncertainty about the economy, the poor job market and the large number of foreclosed properties for sale continue to be a drag on housing. However, favorable home buying conditions should help spur additional demand as the job market gradually improves later this year,” Crowe added. n
MULTIFAMILY BUILDERS ENCOURAGED BY RISING OCCUPANCY The NAHB’s Multifamily Market Indices (MMI) show that current and expected demand for rental apartments improved significantly in the second quarter of 2010 compared to the first quarter. The current indexes for Class A, Class B and Class C apartments rose to 59.5, 57.6 and 56.6, respectively—more than 15 points when compared to the first quarter of 2010 and the highest level since 2007. Builders expect demand to increase to similar levels in the next six months. The MMI measures multifamily builder sentiment based on production and occupancy at the current time, as well as builders’ expectations for conditions over the next six months. An index number greater than 50 indicates that the number of builders who view conditions as getting stronger outnumber those who view conditions as becoming weaker. The current production index for market-rate apartments, at 34.4, rose from the 30.1 reported a quarter earlier, but increased significantly when compared to the same period a year earlier (16.7). For lower-rent units, the current production index slipped from the first quarter to the second quarter (35.4 to 32.8) yet was an improvement over the 21.8 reported a year earlier. The current production index for condominiums for sale sank to 14.5 from 21.5 in the previous quarter, to
10
theHBmag.com
about the same level it stood a year earlier (15.2). Builders’ expectations for starts six months from now are at similar, but slightly higher, levels for all three categories. n
FEDS ASK EPA TO REVISE STORM WATER REGULATION In a major victory for homebuilders, the U.S. Environmental Protection Agency (EPA) has withdrawn key portions of new storm water management regulations and devised new ones based on better research. The change in regulation is the result of a lawsuit filed by the NAHB and petitions filed by both NAHB and the federal Small Business Administration (SBA) Office of Advocacy asking the agency to revise its new Effluent Limitation Guidelines (ELGs) for the construction and development industry. “After a big rainstorm, it’s typical to see some storm water drain from a construction site. In these new regulations, EPA set a numeric limit on the amount of sediment that can cloud the water that both NAHB and SBA claimed was arbitrary and based on flawed analyses,” says NAHB chairman Bob Jones. “In addition, NAHB showed that achieving these limits would have cost not $953 million—which the agency had estimated—but up to $10 billion annually, hurting small businesses and housing affordability, with little additional environmental benefit. The EPA itself admits the ELG would control less than one quarter of one percent of all total sediment runoff,” says Jones. “By forcing EPA to take a hard look at the facts and admit its error, NAHB scored a major victory for home builders and home buyers nationwide.” After reading NAHB’s brief, the Justice Department filed a motion with the 7th Circuit Court of Appeals asking it to vacate the numeric limit and place a hold on the litigation until Feb. 2012, while EPA develops a new numeric limit. n
ACTIVE ADULT HOME BUILDER ACTIVITY, CONFIDENCE DROP Builder confidence in the mature-housing market retreated during this year’s second quarter, according to data from the NAHB’s 55+ Housing Market Index—a quarterly survey of the NAHB members involved in mature-market housing production. This past quarter's index values dropped for all areas surveyed, compared to the second quarter of 2009. The 55+ single-family HMI measures builder sentiment based on current sales, prospective buyer traffic and anticipated six-month sales for the 55+ single-family market. A number greater than 50 indicates that more builders view conditions as good than poor. In the second quarter of 2010, the index slipped down to 12, four points lower than the same period in 2009. The 55+ multifamily condo index continued to record the lowest values, with a drop of five points, to a record low of 7, reflecting drops in current sales, expected sales, and traffic from prospective buyers.
AZHB_0705_Layout 1 9/30/10 5:05 PM Page 11
“The same factors that affect activity in the overall housing market, including hesitant home buyers, tight consumer credit, and continuing competition from foreclosed and distressed properties, are having an impact on the 55+ market, which remains stalled in most regions,” says NAHB’s chief economist, David Crowe. “In spite of the recent flurry of home-buying activity tied to the home buyer tax credit, many older homeowners continue to have difficulty selling their existing homes.” n
HOUSING REMAINS HIGHLY AFFORDABLE
The HOI indicates that 72.3 percent of all new and existing homes sold in the second quarter of 2010 were affordable to families earning the national median income of $64,400. The index for the second quarter was slightly more affordable than the previous quarter and almost equaled the recordhigh 72.5 percent set during the first quarter of 2009. Until 2009, the HOI rarely topped 67 percent and never reached 70 percent. “Homeownership is within reach of more households than it has been for almost a generation,” said NAHB chairman Bob Jones. “Interest rates continue to hover at historic low levels, the economy is beginning to rebound and with house prices starting to stabilize, conditions are beginning to draw home buyers back into the market, which is a positive step on the path to recovery.” According to the study, Syracuse, N.Y., was the most affordable major housing market in the country, edging out Indianapolis-Carmel, Ind., which had held the top ranking for nearly five years. In Syracuse, 97.2 percent of all homes sold were affordable to households earning the area’s median family income of $64,300. Also near the top of the list of the most affordable major metro housing markets were Detroit-Livonia-Dearborn, Mich.; Youngstown-WarrenBoardman, Ohio-Pa.; and Buffalo-Niagara Falls, N.Y. Among smaller housing markets, the most affordable was Springfield, Ohio, where 96.6 percent of homes sold during the second quarter of 2010 were affordable to families earning a median-income of $56,800. Other smaller housing markets near the top of the index included Mansfield, Ohio; Bay City, Mich.; Monroe, Mich.; and Lansing-East Lansing, Mich.. n
NAHB RELEASES CONSTRUCTION PERFORMANCE GUIDEBOOK BuilderBooks, the publishing arm of the National Association of Home Builders, released the fourth edition of Residential Construction Performance Guidelines, the industry’s most widely accepted reference on how homes should perform. Available in contractor and consumer versions, this fully revised and updated reference helps builders and remodelers manage customer expectations while delivering highperformance homes.
NAHB News
is excerpted from recent National Association of Home Builders media releases provided by the association for distribution to the public. For more information, visit www.nahb.org.
CEMENT YOUR RELATIONSHIPS.
Bolstered by favorable interest rates and low house prices, housing affordability remained near its highest level nationwide for the sixth consecutive month since the series was first compiled nearly two decades ago, according to the NAHB/Wells Fargo Housing Opportunity Index (HOI) released in August.
The consumer version of Residential Construction Performance Guidelines helps customers understand the basics of a properly constructed home and how it should perform during the warranty period. Builders and remodelers can give this consumer reference to every customer as an integral part of their warranty claims process. n
HB Magazine Puts Your Products and Services in Builder’s Hands HB Magazine readers are key decision makers in the homebuilding industry. They strive to keep up-to-date on innovations, products and services in the industry that appeal to today’s homebuyer. HB Magazine is the go-to resource for these industry professionals: Homebuilders n President/CEO/Owner n VP of Construction n Purchasing Manager n VP of Sales and Marketing Residential Developers Architects Interior Designers Other Trade Partners
Call now to stay in front of every homebuilder! 480.443.7750 or email us at hb@lpimultimedia.com
Signature Screws Create a cleaner, more attractive deck.
Evolutionary Estimator Save time and energy with satellite imagery.
Dynamic Designs Aluminum panels add pizzazz to walls.
ne for The Premier Magazi
Build Arizona Home
HB
Industry News: Local and national news for homebuilders
the
ing Industry
-AZ.com HOMEBUILDER
TM
FRAMING RE SOFTWA t costly
Preven errors and delays
GREENE
FROM TH OUTSIDE IN This Issue’s Builder
cy with Increase efficien panels ed structural insulat
Profile:
CE TRENDS APPLIAN style functionality with
s blend Today’s kitchen
p.17
[plus]
Industry Spotligse New Product Showca Association News ht
$4.95US
L
07>
$5.95CAN
480 443
7750
P
I
2009 November/December COVER IMAGE: Vision Lennar Homes’ in Gilbert at Layton Lakes
theHBmag.com
11
AZHB_0705_Layout 1 9/30/10 5:02 PM Page 12
LEGISLATIVE Update
LEGISLATIVE Update
Second Session Recap Eight New Bills Affect Homebuilders by Lori Lustig
Before delving into Arizona’s current legislative matters this year and next, it may be helpful to look at a recap of the 49th Legislature, Second Regular Session. Let me begin by saying this was one of the shortest sessions in recent memory—only 109 days, ending April 29. It was also far less contentious between Republicans and Democrats, with a number of bipartisan sponsored and bi-partisan voted bills. Although many bills were filed, ultimately there were eight bills of interest to the homebuilder community that were passed successfully and signed by the Governor. HB 2051 Title: Corporation Commission; Contractors; Regulation. Sponsor: Rep. Hendrix This legislation prohibits the Corporation Commission from requiring a contractor to fulfill any requirements other than those required by the Registrar of Contractors in order to qualify to provide services under a commission-approved rebate or pricing program offered by a public service corporation. These prohibitions include requiring a contractor to join a membership organization, pay dues to any membership organization or take continuing education classes that are not otherwise required by the Registrar of Contractors. HB 2083 Title: Drought Emergency Groundwater Transfers. Sponsor: Rep. Mason The legislation establishes a set of requirements that must be met to permit groundwater in areas outside active management areas to be transported away from that groundwater basin in the case of a declared emergency. This legislation is retroactive to May 1, 2010, and terminates on May 1, 2011. This is known as “Session Law only,” and as such does not change Arizona statutes. Similar legislation has been passed in each of the past four sessions for increments of one year. This legislation was coupled with SB 1141 (CAGRD revenue bonding)—also passed and signed by the Governor— and removes the Central Arizona Groundwater Replenishment District’s authority to use bond proceeds to acquire and transfer groundwater from the McMullen Valley basin. HB 2289 Title: Water Recharge; Direct Use. Sponsor: Rep. Pratt Beginning Jan. 1, 2010 and ending Dec 31, 2024, groundwater, withdrawn from use for mining or metallurgical processing and delivered for direct use to an irrigation district within the same active management area, is excluded from the calculation of the amount of groundwater withdrawn by a storer to the extent that the irrigation district demonstrates a reduction in the amount of groundwater the district would have withdrawn. HB 2345 Title: HOA; Condos; For Sale Signs. Sponsor: Rep. Antenori Homeowners’ associations or condo associations are now prohibited from banning the display of temporary open house signs, except in common
12
theHBmag.com
areas. Furthermore, they may not regulate open house hours except for restricting the hours to after 8 a.m. or before 6 p.m. Finally, they cannot prohibit display of “for lease” signs unless the association does not allow leasing of units. HB 2371 Title: Home Inspections. Sponsor: Rep Nichols This legislation adds “swimming pool and spa” to the statutory language defining “Home Inspection.” (ARS 32-101(B)18). HB 2428 Title: Counties; Zoning; Attorney IGA. Sponsor: Rep Driggs This legislation allows the county supervisors to delegate the review of decisions made by a hearing officer to a county Board of Adjustment (BOA), clarifies that there shall be one or more BOAs, and permits a county attorney to provide or receive civil legal services pursuant to an intergovernmental agreement. The IGA must state the scope of the services provided and any payment that is rendered. HB 2478 Title: Municipal Development Fee; Moratorium. Sponsor: Rep. Konopnicki. The legislation clarifies and modifies, for cities and towns, the confusion surrounding the retroactive effective date of the legislative statewide moratorium on impact fees passed and put into place last year. It also extends the moratorium for builders a corresponding six months. Specifically, the new law:
AZHB_0705_Layout 1 9/30/10 5:00 PM Page 13
“Although many bills were filed, ultimately there were eight bills of interest to the homebuilder community that were passed successfully and signed by the Governor.”
• Redefines the start of the moratorium on development fees as of September 1, 2009. • Extends the moratorium until June 30, 2012. • Permits cities and towns to impose a new development fee or increase in the existing development fee if the fee was adopted by the governing body on or after March 1, 2009 and before September 1, 2009. • Prohibits retroactive increases on any of the fees paid or charged on and after June 29, 2009 until the enactment of this bill. • Adjusts the retroactive date of the moratorium to apply retroactively from and after August 31, 2009.
DON’T WAIT UNTIL 2011 TO GET NEW BUSINESS.
GET IT NOW!
I N S P I R AT I O N S • L I F E S T Y L E S • S O L U T I O N S
SB 1375 Title: Contractor Payments. Sponsor: Sen. Cheuvront. This legislation outlines the requirements for owners, contractors and subcontractors regarding progress payments, release of retention and final payment. In partial summary, the legislation states that on “substantial completion” of the work, the contractor shall submit a bill or estimate for release of retention. The bill or estimate shall be deemed certified and approved within 14 days of receipt by the owner (or owner’s agent). Unless otherwise stipulated in the contract, an owner must release the retention within seven days after date of billing or when the estimate for final payment is certified and approved. Upon final completion, a contractor shall submit a final bill, which shall be deemed certified and approved 14 days after receipt by the owner or owner’s agent. Rights of the owner to decline to certify and approve a bill are stipulated. Provisions in the bill apply to contracts entered into on or after Jan. 1, 2012 or for which distribution or dissemination of plans occur on or after Jan. 1, 2011. The new statutory language defines final completion, retention, substantial completion and work. For more details, the new statutory language can be found in Chapter 337, Laws 2010, or by calling the legislature and requesting a final copy of the bill. At this time, we are going through a very contentious election cycle. Since a number of State Representatives will be moving to open seats in the Arizona Senate, there will be a huge new crop of freshman legislators in the House next year. Budget issues continue to loom, and with a new State Treasurer, you can expect the learning curve to be steep. Also, in January, we will begin the 50th Legislature and will be preparing to celebrate our state centennial! It is an exciting time in Arizona, to be sure. n Lori Lustig, RN JD, is a State Lobbyist who has represented Arizona homebuilders’ associations at both the state and municipal levels.
Today’s Home Improvement magazine is the Valley’s premier resource for homeowners seeking products and services to enhance their lifestyles and increase the value of their homes! • 150,000 total copies per issue! • 137,000 copies direct mailed to homes with median household incomes of $150,000+ • 10,000 copies direct mailed to most recent home buyers! • 3,000 copies in Select Retail Outlets Valleywide! Today’s Home Improvement brings homeowners, building industry professionals and suppliers of products and services together-the only publication in Arizona to reach and influence both industry professionals and consumers with information on kitchens and bathrooms, outdoor living, interior design and a host of other home improvement topics.
CALL FOR MORE INFORMATION! 480.443.7750 x311 or thi@lpimultimedia.com todayshomeimprovement.com
AZHB_0705_Layout 1 9/30/10 4:57 PM Page 14
1
2
HBBuilderProfile
4
shea SPAC E S Embracing a New Concept in Living Spaces by KEN PETERSON
The concept of home is a rapidly changing and ever evolving idea in the minds of today’s new-home buyers. What may have been dream features for their parents are no longer important to this emerging group of tech-savvy and enviro-savvy buyers. These buyers are looking for smart, sleek, energy efficient designs without antiquated features that waste resources and space. They want their homes to offer the smart, practical and modern principles they value in their own lives.
5
AZHB_0705_Layout 1 9/30/10 4:55 PM Page 15
3
1. SPACES At Seville is a smart, practical and modern approach to the 21st century dream home. Environmentally friendly and technology savvy for today’s homebuyer. 2. Sleek euro-style cabinetry and etched glass doors give this Splash a clean, modern feel. Dual flushing toilets and low-flow water faucets assist homeowners in water conservation. 3. Bright, open, flexible Dream space offers all the modern conveniences make this the master sanctuary. 4. There is no wasted space in this flexible, informal living area that features etched glass partitions and an easy flow. 5. Utilizing low-water desert landscaping helps conserve water while maintaining the natural beauty of the surrounding area.
5
Enter Shea SPACES. The SPACES concept was designed, named and marketed so that these new home buyers know they have arrived at the house of the 21st century. Located in the community of Seville on the north side of Riggs Road between Higley and Power Roads in Gilbert, Shea Homes’ SPACES concept was cultivated in response to feedback on the desires of modern home buyers. SPACES homes are built around the lifestyle and functionality needs of this new class of home buyers—including its nomenclature. Traditional rooms have been renamed to maintain a hip, modern feel. The kitchen, bath and bedroom, for example, are referred to as “eat,” “splash” and “dream.” These classifications are readily identifiable to the target audience and speak more to a living experience instead of just a living area. Buyers now are looking to be engaged on every level. Shea SPACES homes highlight current technology. Gone are useless walls, hallways and rarely used formal rooms. They are replaced with display kitchens, etched glass partitions and innovative open floor plans. What has stayed is the pride in workmanship, customer service and attention to detail that Shea Homes has been providing since 1881. If anything, these values are even more important in today’s market as buyers have come to expect customization and tailored approaches to many of their purchases (think direct connect social media). They want more for less, including features that once used to be add-ons.
theHBmag.com
15
AZHB_0705_Layout 1 10/4/10 2:36 PM Page 16
HB Profile
Standard features such as rechargeable ports for electric vehicles; tankless water heaters; stainless steel ENERGY STAR kitchen appliances; Low-E, dual pane, insulated vinyl windows; compact fluorescent lighting (CFL) and light emitting diode (LED) lighting are all visible to home buyers as they tour a SPACES home. All homes are SRP PowerWise and ENERGY STAR rated as well. However, there are a number of energy efficient features home buyers won’t see—features included in the construction of the home. DuPont Tyvek ThermaWrap insulation, which increases the thermal resistance or R-value of the walls to maintain cool temperatures in the summer and heat in the winter, is an example. Blown-in cellulose and foam insulation are also
used in the walls in place of traditional fiberglass insulation because it is a naturally recycled product, lowers heating and cooling costs, and is treated with fire retardant to make the home safer. Harnessing the sun simply makes sense in Arizona, and Shea SPACES uses Solatubes technology to provide natural lighting to interior spaces through a process of capturing and delivering clean, white light that can be customized through dual lens technology to deliver consistent lighting throughout the day. If the homeowner wants additional energy savings with integrated roof solar panels, that option is provided as well. Lastly, water conservation is extremely important in Arizona’s desert climate, not only for the environment but also because landscape over-
watering is expensive for homeowners. To ensure water conservation, Shea SPACES included dual flushing toilets that save the average home up to 67 percent of its water usage as well as WeatherTRAK irrigation controllers that reduce water use up to 59 percent and runoff up to 71 percent. Shea SPACES is a home built for the buyer with modern sensibilities who still wants a quality, personal product but not the vision of home their grandparents or parents had. Combining energy saving features, flexible euro-style design and the creation of a living experience, Shea SPACES targets the values of today’s modern home buyer. n Ken Peterson is Vice President of Sales and Marketing for Shea Homes Arizona.
The efficiently-designed bath attached to this Mid-century Modern-inspired sleep space is separated by rolling frosted-glass doors.
16
theHBmag.com
AZHB_0705_Layout 1 9/30/10 4:51 PM Page 17
Shea SPACES is a home built for the buyer with modern sensibilities ...
plan
4007
1 2
3
1. With stainless-steel Energy Star appliances, sleek cabinets and a multifunction island, this kitchen blends seamlessly with the flex-space living area.
info link /// sheaspaces.com
2. Innovative open floor plans allow homeowners to create their own living space. Shown here the Cook, Chat, Dine, and Watch areas are comfortably appointed for families or entertaining. 3. A functional, easily maintained outdoor space gives this urban style homes a bit of suburban charm.
theHBmag.com
17
AZHB_0705_Layout 1 9/30/10 4:49 PM Page 18
HB Feature
HOW BUYERS RANK VALLEY HOMEBUILDERS J.D. Power Releases 2010 Customer Satisfaction Study by TRAVIS DUPREY
New-home builder customer satisfaction has improved for a third consecutive year, and newhome quality has improved for a second consecutive year, according to the J.D. Power and Associates’ 2010 U.S. NewHome Builder studies, released in September.
18
theHBmag.com
Nationally, new-home quality reached a record high of 844 on a 1,000-point scale in 2010. The Phoenix market average was an impressive 856. The ratings for overall customer satisfaction averaged 826—the highest level since the inception of the study in 1997. Phoenix area builders scored an average of 872. To be included in the studies, Phoenix-area builders must have closed 150 or more homes in Pinal or Maricopa counties during 2009.
importance of customer focus for new-home builders,” says Dale Haines, senior director of the real estate and construction industries practice at J.D. Power and Associates. “In this buyers’ market, builders that are attentive to customer needs and focus on relationship building stand the best chance of enduring through the market recovery. Many builders that were unable to maintain this focus consistently have had to exit the marketplace.”
“The downturn of the housing market—along with intensified competition for a very limited pool of home buyers—has reinforced the
In addition, the importance of factors driving overall satisfaction has shifted from 2009. The importance of the builder’s sales staff and
AZHB_0705_Layout 1 9/30/10 4:42 PM Page 19
HB Feature
construction manager have increased, while the importance of price/value and builder’s warranty/customer service have declined. As mentioned above, home quality In Phoenix improved by 26 points over 2009 to a rating 856, and the average customer satisfaction index score in the Phoenix market is 872—46 points above the 17-market average of 826. Satisfaction has improved substantially in the Phoenix market in 2010—up 29 points from 2009. “As housing challenges have been even more acute in Phoenix compared to most other regions, the improved levels of performance here clearly demonstrate that most local builders—as well as their subcontractors and trade partners—are working hard to deliver quality, value and confidence to home buyers,”says Dale Haines, senior director for J.D. Power and Associates. “In order to compete effectively in these challenging economic times, homebuilders across the country have focused on controlling their costs and improving customer service.” New-home builders here have also improved from 2009 in raising awareness of the “green” features of their homes. Approximately 61 percent of new-home owners in the Phoenix market in 2010 perceive that their homes are environmentally friendly, compared with only 31 percent in 2009. “In this hyper-competitive market, green features have become a crucial selling point, since new-home buyers are seeking to save on energy costs, as well as to increase the value of their homes,” says Haines.
“Historically, the Phoenix market typically outperforms most other major metro areas when it comes to customer satisfaction among new-home buyers,” says Haines. “In fact, average customer satisfaction among Phoenix new-home buyers is higher than any of the other 16 markets evaluated in our 2010 study.” Haines adds that most of the Phoenix-area builders measured in the 2010 study improved both their levels of customer satisfaction and home quality compared with 2009.
Shea Homes Arizona ranked highest in customer satisfaction in the Phoenix survey. “It is truly a privilege to serve our customers and we want to thank them for taking the time to share their experience,” says Buddy Satterfield, president of Shea Homes Arizona. “The customer experience found at Shea is so unusual for this industry that we find our customers are incredible salespeople.” Satterfield notes that in August, 41 percent of the company’s sales were direct referrals. “Customer satisfaction is something we live and breathe at Shea,” he says, “and while the ranking is a testament to our efforts, we will continue to strive for excellence in this area.” PulteGroup’s Centex Homes ranked highest in new-home quality for the Phoenix market. “Customer satisfaction and quality are vital to delivering a great home-buying experience,” says Curt VanHyfte, president of PulteGroup’s Arizona Division, which includes communities with Pulte Homes, Del Webb and Centex brands. “We deliver superior quality homes and a home buying experience that exceeds expectations for customers at every stage of life. We work to ensure that the homes and communities we offer are places Valley residents are proud to call home.”
J.D. POWER AND ASSOCIATES
2010 U.S. New-Home Quality Study - Overall Satisfaction Index Scores Phoenix, Arizona (based on a 1,000-point scale)
Centex Homes D.R. Horton Ashton Woods Lennar Homes Maracay Homes Standard Pacific Homes KB Homes Richmond American Del Webb Pulte Homes Phoenix Market Average Shea Homes William Lyon Homes Meritage Homes K. Hovnanian Taylor Morrison Homes Beazer Homes Blandford Robson Communities
898 886 885 882 882 874 871 865 862 861 856 854 852 844 834 844 810 797 786
J.D. POWER AND ASSOCIATES
2010 U.S. New-Home Builder Satisfaction Study - Overall Satisfaction Index Scores Phoenix, Arizona (based on a 1,000-point scale)
The New-Home Builder Customer Satisfaction Study, now in its 14th year, includes satisfaction rankings for builders in 17 U.S. markets based on responses from more than 16,400 buyers of newly built single-family homes. The study was fielded between March and July 2010. The New-Home Quality Study, now in its fourth year, measures the occurrence and impact of construction problems experienced by new-home owners in 17 markets. The study utilizes an index that takes into account the number of problems that occur, the severity of problems and the size of the home, and measures problems in 41 categories for the following areas: bathroom; drywall; electrical/appliances; flooring/stairs; home exterior; interior paint; kitchen; windows/ doors; and other significant problems. n Travis Duprey is an editorial intern for Arizona HB magazine.
Shea Homes Del Webb Richmond American KB Homes Standard Pacific Homes Lennar Homes Pulte Homes Robson Communities Phoenix Market Average William Lyon Homes Ashton Woods Taylor Morrison Homes Centex Homes Maracay Homes Blandford K. Hovnanian D.R. Horton Meritage Homes Beazer Homes
922 898 896 895 892 888 888 873 872 871 870 861 852 848 847 846 838 831 749
info link /// jdpower.com/homes
theHBmag.com
19
AZHB_0705_Layout 1 9/30/10 4:40 PM Page 20
PRE FAB
REDEFINED
HB Feature
The New Variable is Customization by CORNELIA STUMPF Prefabricated or prefab homes are dwellings manufactured off-site in advance, usually in standard sections that can be easily shipped and assembled. These homes have not been particularly marketable when compared with standard manufactured housing most consumers are not familiar with the concept and how prefab is used in the U.S.
While Prefab homes have become popular and built on a major scale in Europe for nearly a century (HUF Haus since 1912), the market in the United States is still considered to be in its infancy. Lately, however, modern architects have been experimenting with prefabrication as a means to deliver well-designed and modern homes. Stil, only a few manufacturers are achieving the essence of a truly consumer friendly, cost effective prefab structure. Prefab in the U.S. can be traced back to architects such as Frank Lloyd Wright, who turned to prefab to develop his vision for modestly priced homes. In 1923, he designed the Alice Millard house in Pasadena, Calif., his first “textile blocks house.� Then in 1936, he built the modular Jacobs house in Madison, Wis. With the exception of some masonry features, load-bearing columns and walls, the building consisted of modular insulated panels with prefabricated glazing on both the exterior and interior. The most famous example of prefab architecture is certainly the program for the Case Study Houses Program, sponsored by John Entenza's Arts & Architecture magazine, which commissioned the major architects of the day to design and build inexpensive and efficient model homes for the U.S. residential housing boom caused by the return of millions of soldiers at the end of World War II. The program ran from 1945 to 1966. While not all 36 designs were built, most of those that were constructed were built in Los Angeles with a few are in the San Francisco Bay Area. One design was built in Phoenix. The most famous of these buildings is the Stahl House by Pierre Koenig, who utilized prefab in the majority of his homes including his own house.
For the first time, the client is empowered to choose size, design and lay out a home that meets their desires ...
20
theHBmag.com
AZHB_0705_Layout 1 9/30/10 4:37 PM Page 21
HB Feature
Modular prefab in Prescott, Ariz. (and below)
Over the years, the basic ideas of prefab and the case study program—affordability, site specific design, and homes that respond to the site, enhance the community, respect the environment, reflect the region, and satisfy the desires of its owners—have been lost in architects’ desire to create “architectural prefab.” This resulted in a small number of choices, often with a large price tag, which did not differentiate prefab homes much from the standard architectural design/build process except that the home was fabricated off site and shipped in. Lately, however, manufactures and architects have changed their thinking. Prefab today is presenting a consumer friendly concept that addresses all the prior concerns and allows clients (end consumers, architects, builders and interior designers) to participate in the design and building process of the home by a offering modular, adaptable universal system starting at around $100 per square foot. These homes include custom design, a superior steel frame and medium-grade finishes. The client can upgrade or downgrade these finishes based on their desires and budget. Phoenix-based ASUL Adaptable Systems, one of the recent contenders in the redefined prefab
world, offers three construction options: “You Build,” “Both Build,” and “ASUL Build,” with pricing from $25 to $100 per square foot depending on the option. The company says “Both Build” is an attractive option for architects and designers with construction administration experience because it allows them to manage the interior finishes, control the quality and provide an additional revenue source. Modular prefab is able to achieve low building prices because of its system, but an adaptable system allows some customization: a variable previously missing from prefab. For the first time, the client is empowered to choose size, design and lay out a home that meets their desires because modular adaptable systems are offering a huge variety on options that suit lifestyle, design and budget. Of course, the market is still skeptical. Clearly, American homeowners and design industry professional are ready for a modern prefab concept with pricing that is straightforward and transparent—which was the initial prefab promise. n Cornelia G Stumpf is Principal and Owner of CSCP Consult and public relations representative for ASUL Adaptable Systems.
info link /// asul.us
theHBmag.com
21
AZHB_0705_Layout 1 9/30/10 4:35 PM Page 22
HB Green
What’s New Under the Sun? APS Offers Qualified Solar Installer Program by BERNIE PALLISSARD
Photo courtesy of Dupont
Photo: Dupont
AZHB_0705_Layout 1 9/30/10 4:34 PM Page 23
HB Green
With current incentives as well as substantial energy savings, the rewards of making a home a solar energy home can now outweigh the costs for homeowners. In the only program of its kind in Arizona, 32 residential solar installers became the first to achieve the designation of Qualified Solar Installer (QSI) from APS. These installers passed a challenging series of technical, professional and administrative courses and now hold the appropriate licenses with the Arizona Registrar of Contractors. They have also achieved high customer satisfaction ratings.
The QSI designation allows residential customers to feel comfortable that they have selected a solar installer that is technically competent, understands APS’s policies and procedures, and has demonstrated exemplary customer service. “These installers are leaders in the industry,” says Eran Mahrer, director of Renewable Portfolio Management. “They understand the complexities associated with the various types of solar installations and are dedicated to the highest level of technical skills, customer service and consumer safety.” APS has been providing customers with financial incentives to install solar electric systems since 2002 and solar water heaters since 2003. While the first five years of the program saw a gradual escalation in participation, the last several have seen explosive growth. From 2002 to 2007, 1,000 customers received incentives. In 2008, more than 800 customers took advantage, and in 2009, more than 3,000 customers received funds for adding
either a solar water heater or solar electric system to their homes or businesses. Participation in 2010 has exceeded all previous years. The growth of customer interest has spurred growth in the solar installation industry. Since 2006, the number of solar installers has grown from 41 to more than 300. The QSI program was developed in response to the increasing number of installers. This program helps customers select an appropriate and knowledgeable installer. More than 60 companies participated in the first round of training, with 32 graduating in the inaugural class. APS anticipates more than 75 companies will receive their QSI certifications in 2010. APS Qualified Solar Installer contractors are not affiliates or agents of APS, and APS assumes no liability for their products or services; however, installers designated as a QSI must continue to keep high standards. They must maintain a quarterly customer satisfaction rating as determined by the Electric League of Arizona, have a satisfactory pass rate for APS inspections and pass annual technical and professional education workshops. n Bernie Pallissard is Marketing Manager for APS Renewable Energy Programs.
info link ///
Photo: Dupont
APS ENERGY STAR + Solar Homes - Builder Incentives APS offers additional incentives to builders who make solar technology a standard feature in their communities. These payments are paid directly to the builder and are above and beyond the standard APS renewable energy incentives. APS Solar Ready Community ($500/Home). 100 percent of homes required to be: • APS ENERGY STAR ($400/home) • Solar Ready for water & PV ($100/home) APS Solar Community 100 percent Solar Ready & APS ENERGY STAR plus a minimum 50 percent of homes with either: • Solar Hot Water installed ($200/home) • PV (2 kW avg min) installed ($500/home) • Both PV (2 kW avg min) and Solar hot water heater installed ($900/home) Note: Additional incentives paid only on the homes receiving the solar install. Model Home Incentives APS will help cover the cost of installing PV systems and/ or solar water heaters on model homes based on the number and type of systems committed by the builder for a community.
aps.com
theHBmag.com
23
AZHB_0705_Layout 1 9/30/10 4:32 PM Page 24
HBIndustry Spotlight
Estrella is home to nearly 3,600 families. It offers a resort-styled living area with amenities including 17 miles of paths and trails. n
unlike the government incentive, buyers will receive the credit to use immediately on anything from an outdoor kitchen to custom flooring to cabinet and countertop upgrades and more.” n
Fulton Homes to Meet New Energy Star Standards BUILDER BUZZ
Taylor Morrison Unveils New Community Taylor Morrison announces the opening of its newest community, Adora Trails, nestled against the San Tan Mountains. It’s comprised of almost 1,900 Gilbert home sites and has miles of walking trails, an on-site Chandler Unified School District elementary school, a 4,000square-foot clubhouse with a 10 acre park, and a four acre fishing lake. With prices starting in the $140s, some of Taylor Morrison’s most popular home designs— ranging from 1,300 to 3,500 square feet—are featured in the community, which is located on Riggs Road between Val Vista and Higley. n
Meritage Opens Verrado
Launching in October, Fulton Homes will be the first homebuilder in Arizona to meet Energy Star New Homes Version 3.0 standards. Energy Star New Homes Version 3.0 is designed to meet even more stringent standards than in previous versions of the program. The new homes will feature upgrades such as Louisiana Pacific Tech Shield Radiant Barrier and 14 SEER Carrier air conditioners will replace the previous 13 SEER models. n
SEC Concludes Investigation of KB Home KB Home announced notification from the Securities and Exchange Commission (SEC) advising the KB Home that the SEC’s investigation of their accounting and disclosures has been completed and that no further action is expected. The letter concludes the SEC’s investigation, which began in October 2009 and was disclosed in the KB Home’s public filings.
One Lexington Premieres Penthouses in Midtown Phoenix One Lexington announced in August the availability of six new two-story penthouses. Now open for touring, these residences offer views of Camelback Mountain and Piestewa Peak. One Lexington’s fully furnished penthouse model will be featured as the grand prize for the fall 2010 Health & Wealth Raffle with proceeds benefiting St. Joseph’s Hospital. One Lexington is located at the corner of Lexington and Central Avenue. Penthouse residences range from 1,650 to 2,900-square-feet and prices start at $475,000. Penthouse tours are available through the sales center from 10 a.m. to 6 p.m.. n
Shea Homes Breaks Ground in Layton Lakes
Meritage Homes has announced the opening of its newest community Verrado, in Buckeye. These APS Energy Star qualified homes are more energy and water efficient. Meritage Green Homes in Verrado will save homeowners up to 80 percent on their home utility bills as well as qualify them for up a tax credit up to $6,700. n
“We are pleased that the SEC has concluded its investigation,” says Jeffrey Mezger, president and CEO of KB Home. “We are glad to share with our investors and employees that the matter is now behind us, as we continue to focus on restoring the sustained profitability of our homebuilding operations and generating future growth.” n
Grand Opening of Serenity Neighborhood
Cachet Homes Introduces New Floor Plans
Estrella has launched launched Serenity, its newest neighborhood in the Sierra Estrella Mountains.
Cachet Homes announced three new floor plans at its Crescent Falls community located in Fulton Ranch in Chandler. The floor plans range from 1,800 to 2,300-square-feet and start in the $250s. In addition, builders who purchase a Cachet home from now until Dec. 31 will receive an $8,000 credit toward options or closing costs.
Shea Homes broke ground on two new model homes at Foothills at Layton Lakes, a master planned community in Gilbert. The nationally recognized homebuilder purchased 42 lots in the Layton Lakes community from Lennar Homes.
“Unlike the recent government incentives, to earn this credit, buyers need not be first-time homebuyers, simply Cachet homebuyers,” says Matt Cody, president of Cachet Homes. “And,
The Foothills community was started by Engle Homes, who is no longer in the Arizona market. For the four homeowners with houses already in the community, it was a welcome relief; they
Furthering the quality that exemplifies Estrella, William Ryan Homes has added three new floor plans and nine elevations in the Montecito neighborhood of Serenity. The company has also opened a new model within its Ironwood Pointe neighborhood. Sales have begun on the distinctive floor plans at both Serenity and Ironwood Pointe.
24
theHBmag.com
AZHB_0705_Layout 1 10/4/10 3:05 PM Page 25
will finally see new homes and neighbors springing up around them. The 42 home sites will blend traditional exteriors with some modern loft and euro-style interiors. The community will have six floor plans with homes ranging between 1,700 and 2,750-square-feet. Prices are still being finalized but should start from the low $200s.
in mid-August with a private on-site celebration including more than 30 vendors, partners and sub-contractors. It is one of the first new home communities to be built in Arizona since the real estate market downturn deepened in 2008. The project is estimated to infuse $64 million in construction materials and labor into the local economy, providing much needed jobs to the local building community. n
This will be the second Shea Homes community offering solar package options and the first one offering the contemporary, urban loft interiors with a traditional exterior. The homes will be built for energy efficiency. “We’re really excited to begin construction on the Layton Lakes home sites, and even happier that the few existing neighbors there are extremely welcoming to us,” says Ken Peterson, vice president of sales and marketing for Shea Homes. “It’s going to be a great community.” n
Cullum Homes Selected to Build at Paradise Reserve Paradiso Development Corporation announced that Cullum Homes was selected as the exclusive builder for the Village at Paradise Reserve community located at 40th Street and Lincoln Drive, in Paradise Valley. The Village will include 32 new gated community homes priced between $1.5 and $2.5 million. Single and two-story floor plans are available ranging from 3,352 to 5,100square-feet. The first Village model is expected to be completed in February 2011. Paradiso's decision process included an in-depth look at almost two dozen talented local builders. Cullum Homes was chosen because of their longstanding reputation and deep understanding of environmental building practices. "We were deeply impressed with the quality of Cullum Homes craftsmanship, and their commitment to building a beautiful home in a highly competitive market. Their vision for the Village at Paradise Reserve closely mirrored our own and they are simply brilliant at building high-end luxury homes that maximize environmental stewardship," says Bob Sahd, president of Paradiso Development Corporation. The Village at Paradise Reserve project launched
Center in Philadelphia. Rotating back to the East Coast after its record breaking West Coast trade show and conference in Las Vegas, LFI is on track to make history again with the trade show floor 97 percent sold out eight months before the opening of the 2011 show and conference. n
Mountain Ranch Marketplace Receives LEED Gold Certification The Mountain Ranch Marketplace shopping center, a joint venture between Kitchell Development Company and Newland Communities, has received the designation of Leadership in Energy and Environmental Design (LEED) Gold certification.
PEOPLE AND EVENTS
Toll Brothers’ Joel Rassman Passes Robert I. Toll, executive chairman of Toll Brothers,Inc., announced the passing of Joel H. Rassman on Sept. 14. Joel served as Chief Financial Officer of the Company since 1984 and was a member of the Board of Directors since 1996. He was named Institutional Investor's Homebuilding CFO of the Year every year from 2006 - 2010. "We are heartbroken that Joel has left us,” says Toll. “For three decades, he has been a friend, counselor and advisor to all of us both professionally and personally. As we announced in December of 2008, he faced serious illness. He struggled mightily and was a model of determination for all of us. “He personally planned for the next generation of financial leaders of the Company. As brilliant as Joel was, his heart exceeded his intellect. He will be forever missed.” n
Lightfair International Jumpstarts 2011 Lightfair International (LFI) is poised to connect more than 20,000 lighting professionals with nearly 500 renowned manufactures at the lighting industry’s premier event taking place in May 2011 in its new East Coast location at the Pennsylvania Convention
To qualify, a project must accumulate points in six areas, including sustainable sites, water efficiency, energy and atmosphere, materials and resources, indoor environmental quality and innovation in design. Mountain Ranch Marketplace has diverted 85 percent of the construction debris—a total of 765 tons—from landfill. In addition, the project incorporates wood certified by the Forest Stewardship Council as coming from wellmanaged forests. "As the first LEED Gold certified project in Goodyear, Mountain Ranch Marketplace has established a new standard that we hope all future developments in our city will strive for," says Goodyear Mayor Jim Cavanaugh. n
Newland Communities Names New Director of Marketing Newland Communities has selected Lynneah J. Hudson as director of marketing to lead the strategic marketing for Estrella, its master planned community in Goodyear. Hudson comes to Newland Communities from DMB Associates based in Scottsdale. An Arizona native, Hudson graduated from Plaza Three Academy and Scottsdale Leadership. She has been involved in a number of charitable organizations including the Southwest Autism and Research Center, Cystic Fibrosis, Homeward Bound and Golden Gate Community Center and is a former board member of the Valley Youth Theater. (cont.) theHBmag.com
25
AZHB_0705_Layout 1 9/30/10 4:29 PM Page 26
HBIndustry Spotlight
“Lynneah’s extensive background and impressive track record in marketing large-scale master planned communities will be an asset to Newland Communities and Estrella,” says Greg Bielli, president of Newland Communities’ western region. n
Parker Finch Management Announces New Foundation In August, Parker Finch Management, a leading community association management firm, announced the formation of the Parker Finch Foundation, a non-profit organization dedicated to assisting struggling families residing in Parker Finch managed communities with their HOA assessments payments. “We are excited to have created this foundation committed to assisting struggling homeowners with legitimate financial challenges make their dues payments to maintain the quality of the community and increase the value of their homes,” says Stu Burton, president of Parker Finch Management in Phoenix. “In our current economic climate, job loses, lack of sufficient medical insurance, reduction in labor hours, and many other hardships have put a strain on homeowners.” A new website, www.parkerfinch.org will allow homeowners in associations managed by Parker Finch to request assistance. Parker Finch Management, with offices in Arizona, Nevada and Colorado, is a leader in the community association management industry. The company provides a comprehensive suite of services to homeowners associations as well as developers. n
The purchases total over 1,900 acres of commercial and industrial land, a 440,000square-foot industrial building, a 2,500space parking garage, an office and retail building, office condominiums and two 18hole golf courses. “We are fortunate to have consummated this transaction with a buyer of Sunbelt’s quality and reputation, and we are pleased to have placed the future of these projects and assets in their hands,” says SunCor Chief Executive Officer Joseph Lapinsky. Sunbelt Holdings began managing the projects on July 15 and plans to make very few changes at the outset. “SunCor has been an outstanding, well-respected peer in our industry,” says Sunbelt Holdings President John Graham. “They have done an excellent job of developing and managing a strong portfolio of quality assets. We believe these newly acquired assets will enhance and strengthen our market position.” n
Delmar Updates Plumbing Licensing Exam Guide Delmar has announced the release of the Dewalt Plumbing Licensing Exam Guide, 3rd Edition and accompanying interactive CD-ROM. Based on the 2009 International Plumbing Code written by the International Code Council, the book and CD-ROM help professionals prepare for their plumbing apprentice, journeyman plumber, master plumber and plumbing contractor licensing exams, as well as the International Code Council certification. n
2001 to 2006 and served as an audit partner on the Toll Brothers relationship from 1998 to 2005. In this capacity, he had extensive involvement in Toll Brothers’ operations, accounting and tax systems, and advised senior management and the company’s board of directors on various financial, accounting, tax and other related issues. He assisted the company with debt and equity offerings, its filings with the Securities and Exchange Commission, and the evaluation of complex accounting, due diligence and structuring matters related to various acquisitions and investments. After leaving EY in 2006, Connor served as CFO and Director of Operations for a diversified commercial real estate development company in the Mid-Atlantic region, and also founded a successful finance and accounting consulting practice. He is a graduate of the University of Notre Dame and a Certified Public Accountant. “Marty’s background, long history with the company and intimate knowledge of our financial systems, management and board of directors will make this a seamless transition,” says Douglas C. Yearley, CEO of Toll Brothers, Inc. “We formally welcome him as Chief Financial Officer, a role for which he has been preparing for several years. “When Joel Rassman, who served as Toll Brothers’ chief financial officer from 1984 until his death, learned of the seriousness of his illness two years ago, he immediately began to establish a plan and prepare the company and Marty for this transition. We will be forever indebted to Joel for his selflessness in making sure that the company’s finances will remain in excellent hands.”
Toll Brothers Names New CFO Sunbelt Holdings Acquires Suncor Assets On July 15, Sunbelt Holdings announced the acquisition of select real estate assets from the Arizona portfolio of SunCor Development Co., a subsidiary of Pinnacle West Capital Corp. The assets include commercial land at Hayden Ferry Lakeside in Tempe, commercial and industrial land at Palm Valley in Goodyear, Avondale and Litchfield Park; Sanctuary Golf Coursein Scottsdale and SunRidge Canyon Golf Course in Fountain Hills.
26
theHBmag.com
Toll Brothers, Inc. announces the appointment of Martin P. Connor as Chief Financial Officer and Treasurer. Connor, a Senior Vice President, joined the company in late 2008 as Assistant Chief Financial Officer. Hereplaces Joel H. Rassman, 65, who passed away Sept. 14. Beginning in 1986, Connor spent over 20 years at the accounting firm of Ernst & Young (EY), where he served large public real estate and insurance clients as an Audit and Advisory Business Services partner. He ran EY’s Real Estate Practice in the Philadelphia area from
Robert I. Toll, executive chairman, states: “On behalf of the Board of Directors, I would like to express our confidence in and support for Marty in his new role as Chief Financial Officer. We also remember and honor Joel Rassman for the tremendous contributions he has made to our Company over the past 25 years and the development of what we believe is the strongest finance team in our industry. Marty’s ascension to the CFO position is a tribute to the strong mentoring relationship Joel had with Marty—a role Joel played for so many within our company and throughout our industry.” n
AZHB_0705_Layout 1 9/30/10 4:28 PM Page 27
overall carbon emissions as compared with industry-accepted average new homes.
SUPPLIER SCOOP
“EcoView Residential is an innovative solution addressing the rapidly growing smart grid industry, enabling homeowners to actively participate in taking the pressure off our overloaded grid infrastructure,” says Advanced Telemetry President Gus Ezcurra. “This helps improve grid reliability and security, while reducing residential energy bills and environmental impacts.” n
GE Adopts Advanced Telemetry’s Energy Management System Advanced Telemetry, developer of the EcoView smart energy management system for light commercial and residential applications, announced that General Electric Co. has adopted its EcoView Residential solution for energy conscious homebuilders across North America.
PulteGroup Selects Whirlpool as Appliance Supplier
PulteGroup Inc. announces it has selected Whirlpool Corporation as its exclusive appliance supplier under a multi year contract, Whirlpool will provide appliances to PulteGroup’s Pulte Homes, Del Webb and Centex communities in 29 states and the District of Columbia. “This contract is just the most recent benefit from the Company’s strategic purchasing initiative resulting from last year’s merger with Centex,” says Deborah Wahl Meyer, senior vice president and chief marketing officer for PulteGroup. “In addition to this being a partnership between two Michiganbased companies with proud histories, Whirlpool Corporation offers products that align perfectly with PulteGroup’s unique multibrand strategy.” “We are honored to work with a world-class corporation and industry leader,” says Tom Halford, general manager, contract sales and marketing at Whirlpool Corporation. “We are thrilled to be the exclusive appliance supplier for all PulteGroup brands.” n
General Electric is working with a select group of homebuilders and developers to design homes with at least a 20 percent reduction in household energy usage, indoor water consumption and
INSTALL SUNSCREENS TODAY THE SUMMER HEAT HAS ARRIVED! keep your home cooler n protect your carpet, blinds, shutters, & furnishings from harmful UV rays n provide daytime privacy n pays for itself within the first year through energy savings! n slash cooling costs n cut the sun's heat & glare n
Family owned and operated for 18 years! We will beat any reasonable estimate by 5%! Also ask us about our Blinds and Shutters! Contact us today for your free estimate!
602-795-4258
CC
sunscreens
www.arizonaccsunscreens.com
theHBmag.com
27
AZHB_0705_Layout 1 9/30/10 4:26 PM Page 28
HBNew Product Showcase
WO N D E R FU L WAV E R LY
For homeowners who love the look of natural hardwood cabinets but prefer the understated wood grain patterns and textures of maple, Armstrong Cabinets’ Waverly is a tribute to traditional tastes, yet refined for modern living. armstrong.com
BETTER BEAD IN G
The new AquaBead corner bead from CertainTeed Gypsum offers an innovative approach to drywall finishing. Using a water-activated preapplied adhesive, AquaBead can be quickly installed without the hammering and fasteners of conventional metal or plastic corner beads. The unique shape of the bead allows for superior finishing and same-day coating of the corner. AquaBead is made of a high-strength polymer core that is coated with paper on both sides and perforated in a manner that achieves solid coverage with a single pass. certainteed.com
THE GRIND
Makita has added another best-in-class solution to its metalworking lineup. The new GA4534 4-1/2 inch paddle switch angle grinder combines durability and ergonomics with a Makita-built 6 AMP motor to deliver more output power and increased performance for masons, welders, shipyard workers, automotive technicians, stone/tile workers, HVAC, and electricians.
GO O D LO O K I N ’
makita.com
hy-lite.com
28
theHBmag.com
Hy-Lite’s acrylic block, operable awning window with E3SunBlock meets ENERGY STAR qualifications and adds to a whole-house energy efficient window package. The pre-framed units are easy to install and the low maintenance vinyl frames are built to last. Units provide ventilation and egress, while protecting homeowner privacy.
AZHB_0705_Layout 1 9/30/10 4:24 PM Page 29
Powerful Partnerships, Better Business...
PNEUMATIC POW E R
Hitachi Power Tools introduces a new 2 inch gas powered 18-Gauge finish nailer, the NT50GS. A combination of lithium ion battery technology and a gas fuel cell offers the convenience of a cordless tool with the power of pneumatic. Lightweight and loaded with features for performance, user comfort and safety, this nailer is ideal for a variety of applications. hitachipowertools.com
Premier Trade Partners Dedicated to Strengthening the Building Industry through diversified resources. Southwest CLG is a group of non-competing trades dedicated to sharing business opportunities and strategies in the construction industry. We pride ourselves in holding our membership accountable to maintain business standards that will positively impact your business. The Southwest CLG membership is dedicated to our builder partners. FOR MORE INFORMATION ON HOW WE CAN MAKE A DIFFERENCE, PLEASE CONTACT:
John Denaro – jdenaro@dupure.com Paul Salmonson – paul@thecontradogroup.com
PERSONAL PAS S AGE
Amarr’s H.R. Hunt Garage door is an extension of your home and a reflection of your personality. Amarr offers more than 300 residential and commercial garage doors designed to fit your style and complement your home. Doors are available in steel, wood, and composite and in many styles to suit your needs. amarr.com
SPowerful o u tPartnerships. h w e sBetter t C LG Business. SOUTHWEST CONSTRUCTION LEADS GROUP
www.southwestclg.org
AZHB_0705_Layout 1 9/30/10 4:20 PM Page 30
HBNew Product Showcase
RADICAL RAFT E R
Empire Level Mfg. Corp. introduces its new e2992 Hi-Vis Rafter Square, which offers a variety of features for added visibility, safety, durability and convenience. The attractive blue rafter square is easier to read than traditional silver squares, even in dirty jobsite conditions or bright sunlight. Its graduations are highly visible and they’re deep-stamped to last for years without fading. The e2992 is constructed of anodized aluminum so it will not rust or corrode and it features a thicker edge than other products available in the market, which creates a safer saw guide. empirelevel.com FABU LO U S FAU C E T
New Terrace kitchen faucet by Moen features Spot Resist stainless finish, which resists fingerprints and water spots, so homeowners can have a functional and fashionable faucet. Available exclusively at Lowe's, the transitionally styled pulldown faucet makes a significant design statement and blends beautifully with any décor. moen.com
DRAMATIC D E TAILS
PR E -CAS T M AGIC
Fypon’s Textured Urethane line features realistic woodgrain or stone textured non-structural decorative products. Hundreds of individual products are offered, including window and door trim, post wraps and decorative millwork. Stone enhancements provide clean details to accent stone homes or stone veneers and woodgrain pieces provide authentic Early American feeling.
Superior Walls Xi and R-5 insulated precast concrete wall systems use up to 70 percent less concrete in a new home than conventional foundations. The energy-efficient walls help lower energy costs and reduce energy leakage, while providing increased living space in a comfortable setting. Custom wall assembly contributes to the overall home insulation value and helps reduce air infiltration into the home.
fypon.com
superiorwalls.com
30
theHBmag.com
AZHB_0705_Layout 1 9/30/10 4:19 PM Page 31
Signature Screws Create a cleaner, more attractive deck.
Evolutionar y Estimator Save time and energy with satellite imagery.
Dynamic Designs Aluminum panels add pizzazz to walls.
Industry News: Local and national news for homebuilders
Information Request
the The Premier Magazine for
Industry Arizona HomeBuilding
HB
.com HOMEBUILDER-AZ
TM
FRAMING SOFTWARE costly
Prevent errors and delays
GREEN
FROM THE OUTSIDE IN
TRENDS APPLIANCEality with style
p.17
Today’s kitchens blend function
[plus]
L
480 443
7750
Industry Spotlight New Product Showcase Association News
07>
$5.95CAN
P
I
TM
Arizona HomeBuilding Industry
Increase efficiency with structural insulated panels
This Issue’s Builder Profile:
$4.95US
HB
The Premier Magazine for the
November/December 2009 COVER IMAGE: Lennar Homes’ Vision at Layton Lakes in Gilbert
HB
7
CONNECTED.
[featuring] 3Products 3Services 3Trends 3Tips 3News
Please tear out this card and mail or FAX to: (480) 443-7751 or subscribe online: theHBmag.com
Please tell us: (please completely fill out) Reason for inquiry: o Current Job o Job in Planning Stage o General Interest
Your buying/specifying responsibilities: o Full responsibility o Specify o Recommend Select the category that best describes your title: o Owner, Partner, CEO, Director o Architect, Designer, Engineer o Construction manager or Superintendent o Sales and Marketing Managers o Other Management Personnel o Carpenter, Draftsman or Salesman o Other, please specify ___________________________ Check the category that best describes your business: o Builder, Builder/Developer, General Contractor, Remodeler
o Architect/Engineer o Product Manufacturer o Wholesale Distributor o Other, please specify _________________________ Is this your copy of HB Magazine? o Yes o No
Are you interested in advertising o No in HB Magazine? o Yes
Type of Construction: (check all that apply) o Single-Family. Custom o Single-Family. Spec/Tract o Multi-Family. Rental o Nonresidential o Commercial Remodeling o Residential Remodeling o Home Manufacturer o Other, please specify ___________________________
FOLD
Do you plan to build in the next six months? o Yes o No If yes, please indicate below what you plan to build: o Single-Family. Custom o Single-Family. Spec/Tract o Multi-Family. Rental o Other, please specify ___________________________ Annual dollar volume of all construction/development: o Over $10 million o $5 million - $10 million o $1 million - $4 million o Under $1 million Annual number of residential units sold: o Over 500 o 101 to 500 o 26 to 100 o 11 to 25 o 10 or less
FOLD
Do you sell from model homes? o Yes o No
Request for More Information or a Subscription Please fill out the entire questionnaire. Incomplete forms will cause delays in processing. (Please print)
o YES! I wish to receive/continue to receive HB Magazine FREE* o Please send information on selected catagories only Name ________________________________________________________________________________________________ Company___________________________________________________ Title ___________________________________ Address ______________________________________________________________________________________________ City _____________________________________________ State_______________________ Zip _________________
www.westar-sw.com
Phone ______________________ Fax _________________________ Email ____________________________________ * Free subscription is for qualified individuals and is determined by LPI Multimedia Inc. based on the information listed above, or $32.00 for a one year (6 issue) subscription.
September/October 2010
AZHB_0705_Layout 1 9/30/10 4:16 PM Page 32
Signature Screws Create a cleaner, more attractive deck.
Evolutionar y Estimator Save time and energy with satellite imagery.
Dynamic Designs Aluminum panels add pizzazz to walls.
Industry News: Local and national news for homebuilders
the The Premier Magazine for
Industry Arizona HomeBuilding
HB
.com HOMEBUILDER-AZ
HB TM
TM
FRAMING SOFTWARE costly
Prevent errors and delays
The Premier Magazine for the
GREEN
Arizona HomeBuilding Industry
FROM THE OUTSIDE IN
Increase efficiency with structural insulated panels
This Issue’s Builder Profile:
TRENDS APPLIANCEality with style
p.17
Today’s kitchens blend function
Check the corresponding boxes below to receive additional information on selected ADVERTISERS.
[plus]
$4.95US
o Habitat for Humanity o Metrostudy o St. Vincent de Paul
o AZ Wholesale Supply o Cox Communications o GE Appliances
o Westar Kitchen & Bath o Zona Communications
L
480 443
7750
Industry Spotlight New Product Showcase Association News
07>
$5.95CAN
P
I
November/December 2009 COVER IMAGE: Lennar Homes’ Vision at Layton Lakes in Gilbert
FOLD
Check the corresponding boxes below to receive additional information on selected CATEGORIES. o o o o o o o o o o o o o o o o o
Appliances Architects/Design Asphalt Basements Brick/Stone/Veneer Cabinets Carpentry & Trim Cement/Concrete Closet Systems Commercial Vehicles Construction Inspection Countertops Digital Cable & Internet Doors/Gates Equipment Rental & Sales Fencing Financial Institutions
o o o o o o o o o o o o o o o o o
Fireplaces Garage Doors Garage Flooring Garage Storage Glass/Glass Block Hardware Home Automation Housing Market Research HV/AC Insulation Interior Design Lighting Lumber Mailboxes Masonry Mortgage/Banking Paint/Stains/Varnish
o o o o o o o o o o o o o o o o
Paving Pest Control Pipeline Contractors & Supplies Plumbing Pools/Spas Rocks Roofing Safety Equipment Security/Surveillance Shade Structures Siding/Trim Structural Wiring Utilities Warranty Waterproofing Windows/Skylights
FOLD
PLACE STAMP HERE
15170 N. Hayden Road, Ste. 5 Scottsdale, AZ 85260 TM
HB
7
CONNECTED.
[featuring] 3Products 3Services 3Trends 3Tips 3News
Please tear out this card and mail or FAX to: (480) 443-7751 or subscribe online: theHBmag.com
Siding : DESIGNER ROUND , Reversible Trim : OLD MILL ® TEXTURE
AZHB_0705_Layout 1 10/4/10 3:01 PM Page 33
FIRST IMPRESSIONS LAST. AND LAST AND LAST. BEFORE A HOME BUYER STEPS ONE FOOT INSIDE THE FRONT DOOR, THEY’VE ALREADY
DECIDED WHETHER THE HOUSE IS DARLING OR DRAB. THE SIDING YOU CHOOSE WILL HELP SWAY THAT OPINION
AND DRAW THAT BUYER. TRUWOOD KNOWS WHAT YOUR SIDING CHOICE MEANS TO THE LOOK OF A HOME,
SO WE OFFER AN UNEXPECTED VARIETY OF STYLES — SURELY ONE WILL MAKE JUST THE RIGHT IMPRESSION.
BECAUSE BUYERS MAY NOT BE ASKING FOR TRUWOOD BY NAME, BUT THEY ARE ASKING FOR IT.
www.TruWoodSiding.com | ASK US ABOUT OUR FSC PRODUCTS. The TruWood Collection, manufactured by Collins Products LLC | phone 1.800.417.3674
TruWood’s material content is backed by third-party certifier Scientific Certification Systems. SCS-MC-01178 | www.SCScertified.com
1:00:17 PM
AZHB_0705_Layout 1 9/30/10 4:12 PM Page 34