GAHM0808

THE VOICE OF THE GREATER ATLANTA HOME BUILDERS ASSOCIATION

www.atlantahomebuilders.com VOL. 9, NO. 7, AUGUST 2008

ATLANTA BUILDING NEWS

Greater

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Givingfrom the Ground Up PLUS

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ATLANTA BUILDING NEWS

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BUILDING NEWS

Giving from the Ground Up

FEATURES

9

August 2008 Volume 9, Number 7

HomeAid Atlanta has been increasing the quality and number of transitional housing facilities in the greater Atlanta area since 2001. Take a look at some of the projects that are improving the lives of Atlanta’s temporarily homeless individuals and families.

By Marianne Kunkel

12 Inside the 2008 Southern Building Show

By Tara Horstmeyer

LEGAL CORNER Post-Foreclosure Warranty Obligations

16

EDUCATION Erosion and Sediment Control Re-Certification Requirements

14

THE HOUSING INSTITUTE CPHB at the Southern Building Show

17

BOOKSTORE Can the Homeowner Handbook be used with a 2-10 warranty?

EARTHCRAFT HOUSE Reduce Jobsite Waste, Save Money

18

EVERY ISSUE

15

6

MEMBER NEWS Rockdale Chapter Awards Annual Scholarships

19

ATLANTA 50+ HOUSING COUNCIL Members Receive National Awards

20

SALES AND MARKETING COUNCIL Roundtable Discussion at Southern Building Show

DEPARTMENTS

13

Letter from the President

By Steve Palmer

8 Classes and Events Calendar 21 New Members 22 Index to Advertisers

ATLANTA BUILDING NEWS SPONSOR

Greater

Atlanta

Home Builders

Association

Dues payments to the Greater Atlanta Home Builders Association (HBA) are not deductible as a charitable contribution for federal income tax purposes. However, dues may be deductible as an ordinary and necessary business expense, subject to exclusions for lobbying activity. Contributions to a political action committee are not tax deductible. Because a portion of your dues for 2008 is used for lobbying by the National Association of Home Builders ($18) and the Home Builders Association of Georgia ($27), these amounts are not deductible for income tax purposes. You are advised to consult a professional tax advisor regarding the deduction of your dues payments to the HBA.

Greater

Atlanta

Home Builders

Association P.O. Box 450749 Atlanta, GA 31145 (770) 938-9900 (770) 934-8363 FAX www.atlantahomebuilders.com

Atlanta Building News encourages members to submit articles for publication. Articles should relate to our members and to the homebuilding industry. If you have questions or want to send a letter to the editor, please call Nancy Meeks at (770) 938-9900.

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ATLANTA BUILDING NEWS

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12/18/07 6:52:52 PM

FROM THE PRESIDENT

Measuring Expectations

T he V o ice o f t he G reat er At lant a H o me B uild ers As s o c i a ti o n

ATLANTA BUILDING NEWS Atlanta, Georgia | Volume 9, Number 7 | August 2008

HBA EXECUTIVE COMMITTEE President: Steve Palmer Vice President: Steve King Treasurer: Les Stumpff Parliamentarian: David Clough Associate Vice President: Bob Chapin Associate at Large: Mitch Hires Builder at Large: Steve Brock Builder at Large: Dean Cowart Builder at Large: Phil Gressly Builder at Large: Dan O’Dwyer Executive Vice President: David Ellis

It’s hard to believe that there are just four months and a few weeks left in 2008! For me, this is a time to reflect on what I expected this year—and what

By Steve Palmer I’ve learned.

About this time last year, the economic downturn—and the potential for a full recession—loomed large, and far quicker than I expected, the debate devolved into a question of how long a recession will last, rather than if it will occur.

I knew the economy would place pressure on all of our members’ businesses and the HBA’s operations. Some builders had recognized changes were coming and were starting to reduce inventories to adjust to the downturn. Many others haven’t fared so well.

I expected the HBA’s membership growth would be harder to sell than in years past but that our association’s member benefits would offset monetary tightening. We knew it would be more challenging to continue growth in a down market, but our efforts, especially during our May membership drive, continue to bring in new members.

I expected HomeAid Atlanta and our specialized building programs, Certified Professional Home Builder and EarthCraft House, to be shining stars for our association, and their continuing success is gratifying to see. The CPHB program expanded statewide and celebrated its 10-year anniversary in April, and EarthCraft House was recently named 2008 Green Building Program of the Year, an honor it also received in 2004.

Our designated charity, HomeAid Atlanta, launched a new initiative this year too—HomeAid Care Day. More than 20 volunteers participated in a one-day event to complete minor upgrades and repairs to a transitional home such as painting, pest control and wall, door and bathroom repair. Another Care Day is scheduled for later this year, and it’s a great opportunity to give back to your community, no matter your level of expertise.

While meeting with builders and other association leaders from across the country at the NAHB International Builders’ Show and other events, I came to really appreciate the quality of our local economy, even under the present circumstances. Our economic base and population growth continue to carry us as we weather the downturn.

Finally, I have learned no amount of long-range planning supplants the need to adjust to demands of the market. Our association responded to the pressure to get potential buyers into new homes through securing the services of a public relations firm at the beginning of the year and with launching our Atlanta Home Facts campaign. Our Atlanta Regional Parade of Homes was created and rolled out in record time by volunteers and staff responding to the needs of our members.

This four-weekend tour gave us the opportunity to reach the full metro Atlanta market, not just our service area.

Despite the effects of the national economy, we have succeeded in successfully promoting our membership services. We will continue to identify areas and strategies to offer more value for membership and to enhance our networking within the industry, with local and regional political leaders and with the media.

HBA BOARD OF DIRECTORS Builders Bill Boyajan Bryan Cohen Doug Cotter Neal Davis Steve Goodsell

Mike Kilgallon Kenny King Mark King Chris Knight Ben Lively

Sammy Baker Jerry Neese John O’Driscoll

Kevin Polite Gary Sanchez Steve Smith

Gary Lockman Bobby Lunceford Alicia MacPhee Maurry Russell Mike Smith

Associates Ron Sprinkle Carol Stone

CHAPTER PRESIDENTS Cherokee: Mike Shina Cobb: Phil Gressly DeKalb: TBD Forsyth: Bob Gorrie Gwinnett: Jim Caswell Inner Atlanta: Neal Creech Metro South: Brian Canady North Fulton: Rob Myers Rockdale: Steve Goodsell South Fulton: Sean Doughtie

COUNCIL AND COMMITTEE CHAIRS Action Fund: Harold Cunliffe Associates Council: Nick Hobbs Atlanta 50+ Housing Council: Melody Baker Builder/Developer/Lender Council: Bryan Cohen EarthCraft House Council: Dennis Creech Government Affairs Committee: Steve Goodsell Membership Committee: Sammy Baker Remodelers Council: Rocco Sinisgalli Sales and Marketing Council: Ro Preisinger The Housing Institute: Sean Doughtie HomeAid Atlanta: DuVall Brumby

GENERAL COUNSEL Frank O. Brown, Jr.

LIFE DIRECTORS Lyall Angevine Dave Boccolucci Millard Bowen Tom Bradbury Jeff Bramlett Steve Brock Barry Burney E.B. Burney Charles Bussey Ken Butera F. Coin Campbell, Jr. Kay Cantrell

J.D. Caswell Bob Chaney David Clough John Cowart Harold Cunliffe Chuck Edwards W.D. Farmer Chris Garner Jim Givan Tom Godfrey Howard Gross Pete Halter

Tim Jones Marilyn Kelly Mort Laning George McClure Dennis McConnell Terry Morris John Pelton Tony Perry Rick Porter Ray Redden Allen Richardson Carl Riden

Pam Sessions Bill Shean Charles Sheron David Smith Doug Spohn Jim Stansberry Mike Turner Dean Welch Chris Willis

ATLANTA BUILDING NEWS Publisher: David Ellis Managing Editor: Nancy Meeks Associate Editors: Christopher Burke, Connie Burney, Ann Carey, Kim H. Jones, Marylee Putnam NAYLOR, LLC Publisher: Christopher Hodges Editor: Colleen Raccioppi Project Manager: Jason White Sales Manager: Tara Hoffman Advertising Sales Leader: John O’Neil Advertising Sales: Scott Groves, Melissa Hicks, Felicia Johnson, Paresha Patel, Marjorie Pedrick, Mark Tumarkin, Paul Walley and Jason Zawada Layout & Design: Catharine Snell Advertising Art: Christina O’Connor ATLANTA BUILDING NEWS, The Voice of the Greater Atlanta Home Builders Association, P.O. Box 450749, Atlanta, GA 31145. Tel: (770) 938-9900. August 2008. Published monthly by Naylor, LLC, 5950 NW 1st Place, Gainesville, FL 32607. Direct all advertising, circulation and editorial inquiries to (800) 369-6220. Acceptance of advertising in Atlanta Building News does not imply the Greater Atlanta Home Builders Association’s endorsement or approval of the product or service advertised.

All information herein has been checked for accuracy to the best of the publisher’s ability. No responsibility is accepted for deletions, omissions, errors and/or inaccuracies. Unless a special placement within the magazine is specifically purchased, publisher reserves the right to place any ad on a first-come, first-served basis. No materials contained herein may be reproduced without the exclusive written permission of the publisher.©2008 by Naylor, LLC. All rights reserved.

PUBLISHED AUGUST 2008/GAH-M0808/7401

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ATLANTA BUILDING NEWS

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C L A S S E S A N D E V E N T S C A L E N DA R

AUGUST 12

✔ Certified Professional Home Builder Survival Breakfast: Understanding Lien Laws, 8 a.m. ✔ Mastering Moisture and Waterproofing in Residential Real Estate, 9:30 a.m. ✔ Gwinnett Chapter Meeting, 11:30 a.m., Gwinnett Place Marriott

13

✔ Introduction to Project Management, 8:30 a.m. ✔ Partnering Guide Lunch and Learn, noon

14

✔ EarthCraft House Renovation, 8:30 a.m., Southface Energy Institute ✔ Cherokee Chapter Meeting, 11:30 a.m., Cherokee Chamber of Commerce ✔ Budget Management and Cost Control (RCS), 1 p.m.

Sales and Marketing Council Meet the OBIE Judges Party, 6 p.m., Westin Buckhead

15

✔ Customer Service and Homeowner Relations (RCS), 8:30 a.m. ✔ Builder Licensing Application Workshop, 1 p.m.

SEPTEMBER 3

✔ Homeowner Handbook Orientation, 9 a.m.

4

✔ Builder Licensing Exam Prep Course: Codes (two days), 8:30 a.m. ✔ DeKalb Chapter Meeting, 11:30 a.m.

9

✔ Internet Marketing for Home Builders, 8:30 a.m. ✔ Forsyth Chapter Meeting, 1:30 a.m., Tam’s Backstage

10

✔ Certified Professional Home Builder Survival Breakfast, 8 a.m. ✔ Builder Licensing Exam Prep Course: General References (three days), 8:30 a.m. ✔ Accident Investigation Techniques: Compliance-Based Lunch and Learn, noon

11

✔ Sales and Marketing Council Meeting, 6 p.m., Villa Christina

12

18

✔ Residential Contractor Licensing Exam Prep Course (two days), 8:30 a.m.

Membership Committee/Associates Council Meeting, 11:30 a.m.

19

✔ Level 1-A: Fundamentals of Erosion and Sediment Control, 8:30 a.m.

HomeAid Atlanta Project Playhouse Preview Party, 7 p.m., Lenox Square

13 HomeAid Atlanta Project Playhouse Opens, Lenox Square, Weekend tours Saturdays and Sundays through Oct. 4

15

20

✔ Certified Professional Home Builder Program Orientation, 8 a.m. ✔ Builder/Developer/Lender Council Meeting, 8 a.m. ✔ Marketing and Communications Strategies for Aging and Accessibility (CAPS I), 8 a.m. ✔ Certified Professional Home Builder Program Codes Exam Prep Class, 10 a.m.

HomeAid Atlanta Board Meeting, 11 a.m.

21

✔ Design/Build Solutions for Aging and Accessibility (CAPS II), 8 a.m. ✔ Risk Management and Insurance for Building Professionals, 8:30 a.m. ✔ South Fulton Chapter Meeting, 11:30 a.m., Green Manor ✔ Atlanta 50+ Housing Council Site Tour, noon, Tuscany Park, Lawrenceville

22

✔ Builder Licensing Application Workshop, 1 p.m.

✔ Builder Licensing Exam Prep Class: Business and Law, 8:30 a.m.

Membership Committee/Associates Council Meeting, 11:30 a.m.

16

✔ Scheduling Class, 8:30 a.m. ✔ Negotiating Skills, 8:30 a.m. ✔ Make More Money: How Businesses Can Market Themselves, 1:30 p.m., Cox Conference Center ✔ Understanding Insurance Types and How to Lower Your Insurance Costs, Time TBD

17

✔ Builder/Developer/Lender Council Meeting, 8 a.m.

HomeAid Atlanta Board Meeting, 11 a.m. ✔ Cobb Chapter Meeting, 11:30 a.m. Marietta Country Club

18

26

✔ Profitable Business Through Quality Construction, 8:30 a.m. ✔ North Fulton Chapter Meeting, 11:30 a.m., Ippolito’s ✔ Safety and Security (RCS), 1 p.m.

✔ HBA Board Meeting, 3:30 p.m.

Membership Connection, 5 p.m.

27

✔ Construction Contracts and Law, 8:30 a.m. ✔ Inner Atlanta Chapter Meeting, 11:30 a.m., Maggiano’s Buckhead

28 Builder Speed Dating, 9 a.m. ✔ Remodelers Council Meeting, 11:30 a.m.

19

✔ Codes and Quality Control (RCS), 8:30 a.m. ✔ Builder Licensing Application Workshop, 1 p.m.

22 Metro South/South Fulton Chapters Golf Tournament, 9 a.m. Canongate I

29

✔ Estimating for Builders and Remodelers, 8:30 a.m. ✔ Builder Licensing Application Workshop, 1 p.m.

23

✔ IRM-III: Lifestyle Merchandising, Advertising and Promotion Strategies, (two days) 8:30 a.m. ✔ Level 1-A: Fundamentals of Erosion and Sediment Control, 8:30 a.m.

24

Calendar Key to Events: ✔ This course is approved for CPHB program continuing education credits.

■ Environmental Issues ■ Education ■ Social Events ■ Membership Meetings

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AUGUST 2008

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✔ Inner Atlanta Chapter Meeting, 11:30 a.m., Maggiano’s Buckhead

All meetings will be held at HBA’s Housing Center unless otherwise noted.

The Housing Center is located at 1484 Brockett Road in Tucker at the corner of Brockett and Cooledge roads next to Highway 78.

Editor’s Note: Changes in the dates and location of events listed on our calendar occur. Please call the HBA at (770) 938-9900 or check t he lates t c alendar online at www.atlantahomebuilders.com.

ATLANTA BUILDING NEWS

25

✔ OSHA 10-Hour Competent Person Certification (two days), 8 a.m. ✔ What Builders and Developers Need to Know About Mixed Use Developments Lunch and Learn, noon

26

✔ Build a Better Home Class, 9 a.m. ✔ Sales and Marketing Council Roundtable, 4:30 p.m., Villa Christina

30

✔ Residential Home Technology Lunch and Learn, noon Level 1-A: Exam-Only Session, 2 p.m.

F E AT U R E

Givingfrom the Ground Up HomeAid Atlanta Fights Homelessness Through Building Services

By Marianne Kunkel

Volunteers from the HBA’s Associates Council participated in painting and making minor repairs to Tapestry Youth Ministries’ Second Chance Home during the first HomeAid Care Day.

Did you know that 80 percent of the homeless population comprises those who are temporarily homeless?

These are families and individuals without a home for a brief period of time, typically due to circumstances beyond their control such as a natural disaster, domestic abuse, divorce, foreclosure, a medical condition or job loss.

It’s a fact that weighs on the mind of Ann Carey, executive director of HomeAid Atlanta, the Greater Atlanta HBA’s designated charity. Since HomeAid Atlanta’s inception in 2001, its goal has been to improve the lives of Atlanta’s temporarily homeless individuals and families by increasing the quality and number of transitional housing facilities in the greater Atlanta area.

Last year more than 48,000 diapers, baby food, baby wipes and formula were collected for homeless infants and toddlers in metro Atlanta during the annual Essentials for Young Lives Drive.

“When we got started,” Carey recalled, “I was the only staff person and started HomeAid Atlanta as a parttime position.” Since then, HomeAid Atlanta has grown into a hundredsstrong support network of volunteers, from builders and architects to interior designers and exterminators. HomeAid Atlanta is one of 22 HomeAid chapters throughout the country, each affiliated with homebuilders associations.

BUILDING A SAFEHOUSE

Donnie McGrath, an architect at BSB Design in Atlanta, first became involved with HomeAid in 1989 while living in California and stayed involved upon relocating to Atlanta. “[BSB Design] was approached by HomeAid Atlanta at the International Builders Show in 2006,” he said. “I met them at the show and said,

‘If you ever need anything, let us know.’

Within two weeks, they called us.”

McGrath is now hard at work on the designs for the construction of Covenant House, a two-story, 29,000-square-foot facility for Atlanta’s homeless teens, one of four of HomeAid Atlanta’s transitional housing projects currently in development. The facility will eventually house 15 teenage boys, 15 teenage girls and 10 single teenage mothers and their children, with a 260-square-foot room for each that includes a bed, bathroom, closet, desk space and kitchenette.

When the teenagers want to spend time together, they will be able to gather in the group dining room, meeting room, full kitchen, library, computer room or exercise room.

“Covenant House is a privately funded agency that helps homeless www.atlantahomebuilders.com

9

HomeAid Atlanta Individual and Corporate Sponsors Diamond

youth,” said McGrath. “This project will help provide food, shelter, clothing and immediate care for homeless teenagers that desperately need it. What a great way to give back to our community and help our future leaders.”

HomeAid Atlanta is currently seeking a Builder Captain(s) for Covenant House to lead and coordinate construction.

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Dan Mattox was the HomeAid Atlanta Builder Captain in 2004 for the renovation of Decatur Cooperative Ministry’s Glenhill Place Home, a transitional housing facility for homeless families. His Atlanta-based company, Builders II, is small, but this doesn’t stop the staff from donating its resources to HomeAid Atlanta. During the renovation of the Glenhill Place Home, Mattox and his trade partners remodeled the kitchen, replaced appliances, improved the HVAC system, refinished floors and gave the facility a fresh coat of paint.

For a smaller, one-day project, Heather Bounds of Northwest Exterminating in Marietta helped organize a HomeAid Care Day in May for Tapestry Youth Ministries’ Second Chance Home, a transitional housing facility for homeless teenage mothers and their babies. Bounds’ motivation for helping with upgrades and repairs to the home was not just to improve the girls’ lives, but to improve the spirits of the HBA as well.

“The HBA decided that this year, our big push is ‘every member involved,’” Bounds explained. “We wanted everyone to show the community that even though [the building and construction industry] is in a down market, we as an industry can make a difference.” In addition to painting, replacing doors and providing pest control outside the home, Bounds and more than 25 other volunteers from the HBA Associates Council gave the

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10

AUGUST 2008

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girls the one thing they asked for – a basketball goal.

COME OVER AND PLAY

One of HomeAid Atlanta’s most fun events is its annual Project Playhouse® fundraiser, which began in 2004. This year, six building teams are constructing 8 x 10 x 10-foot playhouses, each with a unique theme, to be put on display at Atlanta’s posh Lenox Square in September.

One playhouse will be given away in a raffle, and the remaining five will be auctioned off, with proceeds going toward HomeAid Atlanta’s transitional housing development program.

McGrath, who has served as the architect for many HomeAid playhouses over the years, said the playhouse themes have ranged from an Atlanta Braves clubhouse to Mother Goose’s boot to a classic cottage, and often include slides, lofts, air conditioning, electricity for televisions and carpet. They are a huge hit with children.

Bounds and her staff, who do the pest control for the playhouses, also volunteer at the Playhouse Village, greeting visitors and helping with raffle ticket sales.

“Each playhouse has its own lot and landscaping,” explained Carey, “and we set them up like a little community that’s open for tours. The children just light up and dash in to peek in the windows when they see them.”

A GOLDEN OPPORTUNITY

Bowen Family Homes The Nehemiah Program

The Atlanta Journal-Constitution DuVall and Anna Brumby Georgia Power Parksite/DuPont Tyvek

The Summer House was built by Northstar Builders and Developers for HomeAid Atlanta’s Project Playhouse® 2006.

My House was renovated through HomeAid Atlanta in partnership with John Wieland Homes and Neighborhoods. A second building was also constructed on the property. My House serves medically fragile homeless infants and toddlers.

ATLANTA BUILDING NEWS

Mattox, a builder of one of this year’s playhouses, heard that HomeAid Atlanta was having trouble finding a fourth playhouse builder, so he stepped in to help. “The story coming from the builders was, ‘Oh, times are tough. We’re really strapped. We can’t afford to do one this year,’” said Mattox. “[HomeAid Atlanta] found a builder, but he was on the edge. I told them to have him call me. I told him,

‘Most business advisors will tell you that when times are slow, that’s when you need to reach out, advertise more and go out of your way to generate business.

This is a golden opportunity.’”

Mattox said that thanks to donations from past clients, this year’s playhouse has not cost Builders II anything more than a little time. Of the trade contractors and vendors who have donated to HomeAid Atlanta in the past, he said, “It has never been a hard sell.

I try to surround myself with people who have very giving attitudes and who recognize that we are blessed in our industry … If you look at the last 10 years, home construction has been fabulous, and we have to give back.”

The opportunities to give are endless.

In addition to transitional housing facilities, HomeAid Care Days and Project Playhouse®, HomeAid Atlanta seeks volunteers for its annual Fairway to Haven® golf classic and its Essentials for Young Lives Drive, in which last year more than 48,000 diapers, baby food, baby wipes and formula were collected for homeless infants and toddlers in metro Atlanta.

There are other creative ways to help as well. SunTrust in Atlanta hosts an annual barbecue for its building 323683_estes.indd industry clients, which benefits HomeAid Atlanta. There is no charge to attend the barbecue, but donations to HomeAid Atlanta are encouraged.

The bank started the event fi ve years ago at the request of an employee involved in the HBA. Each year, its staff designs invitations and orders food and supplies for as many as 100 attendees. Weare Gratwick, group vice president of residential construction lending at SunTrust, explained, “It has become a great platform for HomeAid Atlanta, as well as raising money for them. We look forward to the event each year.”

If you’ve been waiting for the right time to get involved with HomeAid Atlanta, now is the time. “Welcome!” said Carey. “We need you. Our volunteers really are the foundation of our organization, and they truly make our mission come to life. People in the homebuilding industry are doing great things for their community, and we deeply appreciate their willingness to help us make a difference.”

For more information, visit www.homeaidatlanta.org or call 678-775-1401

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F E AT U R E

Inside the 2008 Southern Building Show

By Tara Horstmeyer

For 15 years, builders, remodelers, and other industry professionals across the Southeast have looked to the Southern Building Show for information on the hottest industry products, in-depth educational courses and the newest industry trends. This year proved no different as the 15th Annual

Southern Building Show and Conference opened its doors June 11-13 for three days of networking, educational and social opportunities at the Cobb Galleria Centre in Atlanta.

For 2008, the Greater Atlanta HBA partnered with the Home Builders Association of Georgia and

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ATLANTA BUILDING NEWS

6/16/08 9:35:43 PM

Naylor, LLC, to acquire the Southern Building Show. Being co-owners of the show allows the HBA the opportunity to be involved in all aspects of producing the show to ensure that both builders and associate members had access to a world class trade show and conference in our own backyard and at an affordable price.

In addition to showcasing the most current building products and services available in the market, the show’s educational sessions have earned a reputation as one of the housing industry’s top overall experiences. This year’s show offered nearly 50 classes and events organized along five main tracks: Building and Remodeling; Organization and Business Management; Sales and Marketing; Green Building; and Architecture and Design. Additionally, National Association of Home Builders designation classes and Certified Professional Home Builder program Advanced Leadership Series classes gave show attendees a variety of offerings from which to choose.

Having a signature event that brings the membership together and provides networking for both builders and suppliers is critical in today’s economy.

Despite the current housing market correction, nearly 2,500 industry professionals from all over the region attended the show as a one-stop shop to learn about new products and services on a regional and national level, building contacts and delivering immediate results.

LEGAL CORNER

Post-Foreclosure Warranty Obligations of Completion Contractors and Selling Lenders Frank O. Brown, Jr. is General Counsel to the Greater Atlanta Home Builders Association and is a partner and chair of the Builder/Developer Team at Weissman, Nowack, Curry & Wilco, P.C. For questions or comments regarding this article, he may be reached at (404) 926-4504 or frankbrown@wncwlaw.com.

By Frank O. Brown, Jr.

It’s not uncommon these days for a lender that has foreclosed on a partially completed house to retain a contractor to complete it, and after completion, to sell the house to a home buyer. In this scenario, questions arise about responsibility for the warranty required by the state’s contractor licensing warranty regulation.

IS THE LENDER OR CONTRACTOR REQUIRED TO PROVIDE THE WARRANTY?

Lender: Probably Not – The warranty regulation states that a residential contractor and any “affiliated entities” must give a written warranty.

In our scenario, the lender is not a contractor. Since “affiliated entities” is not defined by the warranty regulations and the general intent of that regulation is for a home buyer to obtain a warranty on a new house, it is possible that a court or arbitrator conclude that the lender must provide a warranty.

However, that seems unlikely because “affiliated” generally refers to a parent, subsidiary or other entity with common owners or officers, not to contracting parties such as the completion contractor and lender. So, a lender should probably not have to provide the warranty.

Contractor: Yes – The completion contractor in our situation is required

In most situations, the warranty would be provided to the home buyer.

In our scenario, it is not clear whether the contractor’s warranty must be provided to the lender or to the ultimate home buyer. In its contract with the completion contractor, the lender might require either that the warranty be provided directly to the home buyer or require that it be transferable by the lender to the home buyer.

NAHB standards serve as mandatory minimum warranty standards for only that covered work.

Even though a completion contractor can probably exclude the original contractor’s defective work from its warranty, it will often be difficult to determine which contractor’s work caused certain problems (such as leaks).

Also, the completion contractor may be obligated, expressly or implicitly, under its contract with the lender, building codes or ordinary standards of care, to address the original contractor’s work.

Thus, the right to exclude warranty coverage for the original contractor’s work may be of limited value to the completion contractor.

MAY THE COMPLETION CONTRACTOR’S WARRANTY EXCLUDE COVERAGE FOR THE PARTIALLY COMPLETED WORK OF THE ORIGINAL CONTRACTOR?

ARE THERE OTHER WAYS FOR A COMPLETION CONTRACTOR TO LIMIT HIS POTENTIAL LIABILITY TO THE HOME BUYER FOR THE ORIGINAL CONTRACTOR’S WORK?

Probably yes – While the warranty regulation does not clearly address this question, the answer is probably, yes. The uncertainty and confusion arise from the requirement that the warranty must describe the “standards for evaluating work and activities, which standards shall be those set forth in the current edition of the Residential Construction Performance Guidelines as published by the National Association of Home Builders” (NAHB).

By itself, this language might suggest that all work and activities addressed in the NAHB standards must be covered by the warranty, including the original contractor’s work. But, other parts of the warranty regulation, which require warranty coverage and exclusions to be described, strongly suggest that (a) the contractor has discretion to decide which work will be covered by its warranty and (b) the

Yes – If we assume that the contractor’s warranty extends to the home buyer, not just the lender, the completion contractor can, if the lender agrees, condition its completion contract with the lender on the lender’s agreement to indemnify the completion contractor from liability for claims relating to the original contractor’s work.

to provide the warranty, unless the value of the completion work or the contractor’s compensation is $2,500 or less.

TO WHOM MUST THE CONTRACTOR PROVIDE THE WARRANTY?

HOW AND WHEN DOES THE COMPLETION CONTRACTOR PROVIDE THE WARRANTY?

To Lender at Time of Completion Contract with Lender – In our situation, the contractor should attach the warranty to its completion contract with the lender. If the warranty is transferable to the home buyer, it should also be attached to the sale contract between the lender and home buyer. www.atlantahomebuilders.com

13

THE HOUSING INSTITUTE

Spring General Membership Meeting Focused on Housing Upturn

By Jerene L. Cruse, CAPS, CSP

In June, the Certified Professional Home Builder (CPHB) program held its Spring General Membership meeting, “Gazing in the Crystal Ball Part 2 – Preparing for the Upturn,” featuring Loren C. Scott, Ph.D. The meeting was a highlight of the 2008 Southern Building Show and Conference at the Cobb Galleria Centre.

Dr. Scott, a nationally Loren C. Scott, Ph.D recognized speaker and founder of Loren C. Scott & Associates, Inc., a 25-year old economic consulting firm, gave a follow-up to his morning keynote, “Gazing in the Crystal Ball Part 1: Outlook for the Economy Through 2009.”

With the current economic state of the housing market, the questions on the tips of everyone’s tongues are: Where is the economy heading at this stage? Will there be a significant, steady uptick, or a plodding recovery that wallows in the doldrums? Where are interest rates headed? Will rates be a deterrent or spur to the housing recovery? What causes interest rates to vary? Will it be difficult to find good employees?

While many people focus on the situation at hand, Dr. Scott discussed current market trends, as well as growing and declining industries of the future. The current overall population rate is declining due to people choosing to have fewer children. The fastest growing age group is 81 and older as people are living longer. The current hot market segment is 45- to 55-year-olds because incomes are largely maximized during this time. The next hot market in home sales is immigrants who purchase homes five years after immigrating.

Healthcare and technology are the fastest growing industries.

“People stop moving after the age of 29, so it’s important to keep your customers,” said Dr. Scott.

Thanks to Our General Membership Meeting Sponsors American Contractors Exam Services Atlanta Gas Light The Atlanta Journal-Constitution Atlanta’s Best New Homes TV COMMUNITIES Magazine Comcast Atlanta Homes on Demand DuPont Tyvek First Horizon Home Loans FMLS Georgia Power GuildQuality Move Naylor, LLC NEW HOME GUIDE Norbord Industries Weissman, Nowack, Curry & Wilco P.C.

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E A RT H C R A F T H O U S E

Reducing Jobsite Waste Saves Money Atlanta building company John Wieland Homes and Neighborhoods joined the EarthCraft House program to reduce its environmental impact and offer home buyers more energy-efficient, comfortable, healthier homes. The company didn’t expect that EarthCraft House would guide them toward a strategy for saving money and improving workplace safety.

Using standard construction and waste-disposal techniques, a home similar to those built by Wieland in the River Green subdivision in Canton would result in eight tons of waste, filling five small dumpsters. The debris would be deposited in a landfill, and the builder would be charged a weight-based tipping fee. However, Wieland took a different approach, developing a waste-reduction strategy that eliminated the need for dumpsters and saved $325 per lot.

Nearly two tons of construction debris was generated in Georgia in 2000 – enough to fill the Georgia Dome six times!

Fortunately, more than 90 percent of that debris can be recycled, and local businesses are making it easier and more economical for builders to do so. Approximately two-thirds of residential construction waste consists of drywall and wood, both of which can be ground on site and used in the construction process.

Lumber is the largest component of construction waste, accounting for approximately 42 percent by weight. Grinding wood waste and reusing it on site is a great way to keep it out of landfills, and it reduces the need to purchase other materials when those needs can be met by the wood chips.

Ground wood can be used for erosion control or landscaping mulch. Paths for both construction vehicles and pedestrian traffic can be covered with wood chips to protect tree root zones and keep feet and the site clean and dry.

Grinding equipment is capable of extracting metal such as nails and staples from wood. It’s important to separate pressure-treated and painted wood from other lumber, but even engineered wood such as OSB, finger jointed studs and plywood can be ground and safely used on the site.

Drywall accounts for more than 25 percent of construction waste, and most drywall installers will not haul away their waste. Site grinding of drywall and using the gypsum as a soil amendment is cost competitive with waste hauling and tipping fees, and it actually improves the condition of Georgia soil.

Gypsum has been used as a soil amendment for more than 200 years because it helps prevent clay from hardening, allowing for improved water infiltration. Just like lime, gypsum adds calcium but does not change the soil pH.

Wieland worked with Jobsite Recycling to develop a comprehensive strategy to divide the waste into recyclable materials that could be ground on site and other materials that needed to be disposed of or recycled off site. Wieland also implemented a central cut area and advanced framing techniques to reduce the amount of lumber bought, used and recycled per lot. Additionally, the company credits increased home buyer interest to a clean job site.

With successes like these, the Georgia Pollution Prevention Assistance Division will soon be publishing a Construction Waste Toolkit that provides a video demonstrating jobsite waste grinding and application and provides other tools for builders to use who are interested in managing construction waste better. Electronic copies are available at www.southface.org.

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www.atlantahomebuilders.com 6/3/08 15 8:38:27 PM

E D U C AT I O N

Erosion and Sediment Control Re-Certification Requirements

By Marylee Putnam, Director of Operations and Education

As most know, in 2003, the Georgia legislature amended the Georgia Erosion and Sediment Control Act of 1975 and required a mandatory certification program for all individuals involved in land-disturbing activities in the state.

But did you know that this certification must be renewed every three years? And each individual is required to attend and participate in at least four hours of approved continuing education courses established by the Georgia Soil and Water Conservation Commission.

The HBA is offering its first approved recertification class from 8:30 a.m. to 12:30 p.m. on Aug. 19. No examination is required for recertification, but participants must bring a photo ID and proof of attendance from the original workshop (if not taken at the HBA).

The HBA will continue to offer recertification classes throughout the year. Other related sessions held at the HBA are: • Level 1-A: Fundamentals of Erosion and Sediment Control Class – This session is the original certification program, still required for builders, contractors, site superintendents and monitoring consultants involved in land-disturbing activities. Participants must pass a one-

hour, open-book exam at the end of the class. Future classes are from 8:30 a.m. to 5:30 p.m. on Sept. 23 and Nov. 19.

• Level 1-A: Exam Only – The HBA offers this exam to anyone who took the Level 1-A class but not the test at the end of the class or to those who may need to re-take the exam. The hour-long exam begins at 2 p.m. and is scheduled for Sept. 30 and Dec. 16.

• Level AW: Subcontractor Awareness Seminar – This class offers the basic principles and practices of erosion and sediment control for trade contractors and is targeted to contractors, including but not limited to, grading personnel; grading and earthmoving equipment operators; irrigation system personnel (residence, commercial and industrial sites); landscape personnel; utility personnel; wastewater personnel installing on-site systems; well-drilling personnel; plumbers; electricians; and best management practices installation personnel.

The next session will be from 9 a.m. to noon on Oct. 21.

For more information on erosion and sediment control classes and exams, as well as other education opportunities at the HBA, visit the Education and Development section of the HBA Web site at www.atlantahomebuilders.com.

Marylee Putnam, HBA director of operations and education, has been appointed to the National Association of Home Builders Certified Graduate Builder Board of Governors. The 21-person board is the governing body of the Certified Graduate Builder (CGB), Certified Graduate Associate (CGA) and Graduate Master Builder (GMB) programs. The board reviews candidacy requirements; education courses required to earn designations; promotes awareness of the programs; and develops, supports and encourages adherence to the CGB, CGA and GMB Code of Ethics. Putnam will serve a three-year term.

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ATLANTA BUILDING NEWS5/15/08

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B O O K S TO R E

Can the Homeowner Handbook be used with a 2-10 warranty?

Warranty service is an important and long-remembered piece of the building process. With so many one-year limited warranties to choose from, the waters often get muddied on what builders can legally offer their customers. With the Certified Professional Home Builder program requiring its builders to offer the Homeowner Handbook or an equivalent, it’s important for builders to know what’s available and how to make sure they are following the law.

The HBA offers the Homeowner Handbook, which is a builder-insured warranty. This means the builder will receive all the warranty service requests; will refer to the Handbook to determine if the request falls within the warranty parameters; and will schedule all necessary inspections and repairs. In addition to defining the builder warranty guidelines in easy-to-understand terms, the Handbook also includes homeowner

BENEFITS OF THE HOMEOWNER HANDBOOK AS A REFERENCE TOOL

Builders who purchase insured one-year limited warranties for their home buyers can still realize many benefits to providing the Homeowner Handbook to home buyers: • Expect fewer warranty service requests because home owners will be better educated on how to keep homes in good working condition.

• Use the Handbook as a long-term marketing tool because it can be customized with the builder’s logo or name on the front cover, and it’s helpful to home owners for the life of their homes.

• Set expectations before construction begins with the help of the Handbook’s Construction and Maintenance section, which includes information on the construction sequence, visits to the construction site, the new home orientation and the post move-in checklist.

maintenance responsibilities, helpful hints and safety tips. These tips can significantly decrease the number of misdirected warranty service requests a builder receives because home owners are better educated on maintaining their homes.

Besides the Homeowner Handbook, builders can opt to purchase an insured warranty. These warranties are insured by an outside company that will step in to make repairs for the home owner if the builder is unable or unwilling to repair warranty items. A popular insured warranty is the 2-10 warranty.

Two-10 warranty companies offer several packages, such as the basic 10-year structural warranty or a larger package that includes a one-year limited warranty, two-year systems warranty and 10-year structural warranty.

However, these warranties are written for builders, so they can be difficult for home owners to understand and normally do not include maintenance tips for home buyers.

Though it has been difficult in the past to locate specific construction standards, the newest version of the 2-10 warranty booklet now includes a table of contents, which makes it easier for both builders and home owners to locate specific construction standards. The 2-10 warranty does offer a Homeowners Maintenance Manual, which is available to builders. Within the maintenance manual, specific sections

of the warranty are referenced for more information.

Builders who purchase a basic 10-year structural warranty from a 2-10 company can use the Homeowner Handbook as their one-year limited warranty. However, builders who purchase the larger package that include a one-year limited warranty can provide the Handbook as a reference tool to home buyers but cannot offer it as a limited warranty.

The important thing to remember is that home buyers should sign only one limited warranty contract at closing. Builders who purchase an insured, one-year limited warranty must have their home buyers sign the limited warranty contract provided by the warranty company, not the contract for the Homeowner Handbook.

Some companies providing general liability insurance will give builders a break if the builders provide a 2-10 warranty that includes a one-year limited warranty to their home buyers, although the 2-10 is not necessarily a requirement for coverage. This does not mean builders cannot give a copy of the Homeowner Handbook to home buyers, just that home owners must sign the limited warranty contract given to them by the 2-10 company.

For more information on the Homeowner Handbook or how to use it along with an insured limited warranty, contact Amanda Meadows-Mathis at ameadows@atlantahomebuilders.com or 678-775-1469.

www.atlantahomebuilders.com

17

MEMBER NEWS

Rockdale Chapter Awards Annual Scholarships In May, the HBA Rockdale Chapter announced the recipients of its annual college scholarships. Cynthia Anunobi of Rockdale High School, Chandler Goss of Heritage High School and Karlissa Johnson of Salem High School each received $850 to be used on freshman-year expenses.

While at Rockdale, Anunobi was ranked in the top 10 percent of her class and maintained a 3.6 GPA. She was a member of the Mu Alpha Theta mathematics honor society, the Lead Dog Organization and served on the school’s student council.

Anunobi will be attending Clayton State University this fall.

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Scholarship recipients Cynthia Anunobi, left, and Karlissa Johnson with Rockdale Chapter President Steve Goodsell

At Heritage, Goss maintained a high GPA and was on the school’s cross country, track, swimming and ultimate Frisbee teams. He also volunteers at Sims Elementary School as a PE assistant to first grade classes, teaching young children the importance of physical education. Goss will be attending Auburn University this fall.

Johnson was involved in many activities at Salem High School, including the Future Educators Association, the Future Business Leaders of America, track and field and cheerleading. She also volunteers with the Barksdale Boys and Girls Club. Johnson will be attending Georgia Perimeter College this fall.

Congratulations to these students!

DON’T MISS THE LAST CHAPTER GOLF TOURNAMENTS OF THE YEAR

The last two chapter golf tournaments of the year are quickly approaching!

All members are invited to play in both tournaments, but advance registration and payment is required for each.

• Sept. 22 – Metro South and South © 2007 Consumer Source Inc Fulton tournament at Canongate Registration deadline: Sept. 12 Go to www.NewHomeGuide.com/ripple for refreshing research that proves blended media is making a splash.

• Oct. 5 – Cherokee and Cobb tournament at Bradshaw Farms Registration deadline: Sept. 26 334105_Atlanta.indd 1 7/9/07 7:39:56 PM Cost: $150 per person or $550 per • Residential - above ground and underground tanks foursome. Visit the Chapters section of • Builder Packages Available www.atlantahomebuilders.com for a • Commercial & Forklift Fuel registration form and tournament rules.

• Dependable Automatic Delivery Tournament dates and locations are • 24 Hour Emergency Service subject to change.

• Trained Experienced Technicians Contact Laura Guerin at 678-775-1443 Ralph Poole or lguerin@atlantahomebuilders.com Cherokee • Cobb • N. Fulton • Douglas with any event questions.

404.433.6641 Interested in sponsoring a Charles Sims Gwinnet • Metro Atlanta • Henry • Rockdale tournament? Contact Monica 770.861.8499 Saunders at 678-775-1465 or Kelli Stauts North Georgia Mountains Monday to Saturday msaunders@atlantahomebuilders.com 8 a.m. - 9 p.m.

770.265.5357 for more information.

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AT L A N TA 5 0 + H O U S I N G C O U N C I L

50+ Council Members Receive National Awards In May, several members of the Atlanta 50+ Housing Council received national awards at the Best of 50+ Housing Awards Gala, part of the National Association of Home Builders 2008 50+ Housing Symposium, held in New Orleans.

Alicia McPhee and Ted Turner accepted the Gold Achievement Award for Best Overall Community-Large-Over 750 Homes for Del Webb’s The Village at Deaton Creek.

Jim Chapman was on hand to receive two awards for his company: the Gold Achievement Award for Best Overall Active Adult Clubhouses-Small and the Silver Achievement Award for Active Adult Attached Home Design for Sale 1701-2400 Square Feet for the Westminster II plan. The Brookhaven of East Cobb development was entered for both categories.

B. Sheppard Consulting received the Gold Achievement Award for Best Special Promotion for its Realtor Open House for Peachtree Hills Place. Sheppard also accepted a Silver Achievement Award for Logo Design for Wendt Builders’ Olde Town Grayson.

The symposium kicked off with an all-day tour of active adult communities in Louisiana, including The Greens at Pelican Point in Gonzales; Abita Oaks in historic Abita Springs; and Maison de Luc, on the north shore of Lake Pontchatrain in Covington.

A second tour featured an up-close and personal visit to area most affected by Hurricane Katrina and featured presentations by Preservation Resource, Inc., Rebuilding Together and Habitat for Humanity. All three entities are involved in restoration or new home building in the hard-hit areas.

Active adult housing experts from across the country hosted a number of different seminars, panel discussions

and breakout sessions focused on topics such as sales and marketing; technology; service-enriched communities; development and operations; and trends and design. The town of Crowley, La., also made a presentation to attract developers to its locale.

The next 50+ Housing Symposium will be April 29-27, 2009, in Philadelphia.

From left, Jim Chapman, Betsey Sheppard, Ted Turner and Alicia McPhee receive Best of 50+ Housing Awards.

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SALES AND MARKE TING COUNCIL

SMC Hosts Roundtable Discussion at Southern Building Show

By Kevin Polite, SMC Communications Chair

Are you frustrated by less traffic and challenging prospects? Are you at a loss on how to draw traffic and keep the customers you have? Christine Cunningham and Joan Smith led a roundtable discussion to focus on strategies and tips for selling in a competitive market.

Cunningham shared her personal selling tips on how to generate traffic and prepare visual and verbal presentations to compete and win in this challenging sales environment. In her presentation, “Power Up Your Communication: Capture More Sales with Less Traffic,” she shared that it is important today, more than ever, to: • be prepared with specific sales strategies, both visually and verbally, that will build urgency and momentum • present with confidence • confirm why the best time to buy is now • demonstrate value in your builder, product and community • provide excellent customer service • get up and out to draw in the quality traffic you need to make the sales you desire Joan Smith presented points for sales agents to understand the personalities of buyers to effectively identify their desires and “speak their language.” By discovering these traits, we’re better able to communicate with others and build relationships that result in improved sales.

Smith explained there are four dominant personality types. The Popular Talker is open with expressive body language. The Powerful Worker is intolerant of small talk and simply wants the facts. The Perfect Thinker analyzes before speaking and only shares on a “need-to-know” basis. The last personality type, The Peaceful Watcher is usually quiet unless there is something valuable to say.

Drive More Buyers to Your Communities.

During this year’s Southern Building Show, Christine Cunningham (left) and Joan Smith provided strategies for selling in a competitive market.

If you have any questions about these discussion topics or if you would like more information, Cunningham may be reached at 678-290-8288 or christine@4results.net. Smith can be reached at 678-576-5932 or joan.smith@traitmarks.com.

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NEW MEMBERS

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Promo Logic Advertising/Media/ Promotions Residential Drywall, Inc. Drywall/Sheetrock Contractor SB Exterior Sears Smith & Associates, Inc. Southern Cleaning Services, Inc. Cleaning Services Southern Renovation and Roofing Inc. Superior Granite Countertop Materials Supplier TL Williams & Associates Masonry/Cement Contractor Tailored Roofing Roofing Contractor The Hearth and Patio Shop Fireplace Equipment and Accessories Today Management Real Estate-Property Management TrimPro, LLC Carpentry-Trim Contractor Trueview Window Fashions U.S. Cabinetworks, LLC Verizon Wireless Watt Stopper-Legrand Electrical Supplier JUNE NEW MEMBERS BUILDERS

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Build ENERGY STAR® and All-Electric and build in quality.

Distinguish your homes by following ENERGY STAR® New Home guidelines – and by building All-Electric. Today, energy efficiency is a huge selling point.

And an ENERGY STAR qualified new home is at least 15% more energy efficient than Georgia’s standard building code. You’ll appreciate the simplicity of building All-Electric. Plus you can get a $300 rebate from Georgia Power for each All-Electric ENERGY STAR new home you build. To learn more, call 1-800-524-2421 or go to georgiapower.com/energystar.