THE VOICE OF THE GREATER ATLANTA HOME BUILDERS ASSOCIATION www.atlantahomebuilders.com VOL. 12, NO. 11, SPRING 2011
ATLANTA BUILDING NEWS
Housing industry experts see signs of hope for 2011
Member Participation Essential to Association Success in New Decade 2011 Energy Tax Credits for Greater Atlanta What’s in Store for Atlanta’s Homebuilding Industry in 2011?
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BUILDING NEWS
Spring 2011 Volume 12, Number 1
FEATURES
7 On the rise – but slowly Housing industry experts see signs of hope for 2011.
10 Member Participation Essential to Association Success in New Decade Greater Atlanta HBA leaders look back on 2010 and ahead to 2011.
LEGAL CORNER Alleged Pre-Contract Misrepresentations May Sometimes Trump Contract Terms EARTHCRAFT To come
14
THE HOUSING INSTITUTE to come
EVERY ISSUE
13
4
Letter from the President By Les Stumpff
5
Calendar
15
EDUCATION Are You Prepared for the New Energy Code in 2011?
19
ATLANTA 50+ HOUSING COUNCIL to come
16
BOOKSTORE Order Your 2009 International Energy Conservation Code Today!
20
GREEN BUILDING COUNCIL 2011 Energy Tax Credits for Greater Atlanta
17
21
HOMEAID ATLANTA HomeAid Atlanta Celebrates the 2010 Trade Partner, Volunteer of the Year
SALES AND MARKETING COUNCIL Great Year with Great Programs
DEPARTMENTS
12
22 Index to Advertisers
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 2010 is used for lobbying by the National Association of Home Builders ($24) and the Home Builders Association of Georgia ($64), 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.
P.O. Box 450749 Atlanta, GA 31145 (770) 938-9900 (770) 934-8363 FAX www.atlantahomebuilders.com
www.atlantahomebuilders.com
3
FROM THE PRESIDENT
page head to come
T he V o ice o f t he G reat er At lant a H o me B uild ers A s s o c i a ti o n
ATLANTA BUILDING NEWS Atlanta, Georgia | Volume 12, Number 1 | Spring 2011
HBA EXECUTIVE COMMITTEE President: Les Stumpff Vice President: Mike Smith Treasurer: Richelle Losch Secretary: Dean Cowart Parliamentarian: Steve King Associate Vice President: Mitch Hires Associate at Large: Carol Stone Builder at Large: Neal Davis Builder at Large: Steve Goodsell Builder at Large: Phil Gressly Builder at Large: Steve Palmer Executive Vice President: David Ellis
By Les Stumpff
President’s Message to come
HBA BOARD OF DIRECTORS Builders Bill Boyajan Jim Brown Lawson Calhoun Brian Canady Al Capogrossi
John Cooper Christine Fortenberry Mark King Chris Knight Ben Lively
Sammy Baker Bob Chapin Tony Donald Cindy Huber
Eugene James Jack Jessen John O’Driscoll Carl Owen
Gary Lockman Rob Myers Garen Smith Roy Wendt John Willis
Associates Jeff Pogue Ro Preisinger Ron Sprinkle Ginny Van Oostrom
CHAPTER PRESIDENTS Cherokee: Mike Shina Cobb: Phil Gressly DeKalb: John Cooper Forsyth: Doug Cotter Gwinnett: Alex Tetterton Inner Atlanta: Jim Brown Metro South: Neal Davis North Fulton: Bobby Webb Rockdale: TBD South Fulton: TBD
COMMITTEE AND COUNCIL CHAIRMEN Associates Council: Heather Bounds Atlanta 50+ Housing Council: Betsy Sheppard Builder/Developer/Lender Council: Steve Goodsell Government Affairs Committee: Neal Davis Green Building Council: Lawson Calhoun Membership: Cindy Huber Remodelers Council: John Beach Sales and Marketing Council: Bob Kennedy
SUBSIDIARIES EarthCraft House: Dennis Creech HomeAid Atlanta: Dan O’Dwyer The Housing Institute: Mike Smith
GENERAL COUNSEL Frank O. Brown, Jr.
LIFE DIRECTORS Dave Boccolucci Millard Bowen Tom Bradbury Jeff Bramlett Steve Brock Barry Burney Kay Cantrell J.D. Caswell David Clough
Doug Cotter John Cowart Harold Cunliffe Chuck Edwards W.D. Farmer Chris Garner Tom Godfrey Pete Halter Tim Jones
Mike Kilgallon Kenny King George McClure Dennis McConnell Terry Morris Dan O’Dwyer Tony Perry Rick Porter Allen Richardson
Carl Riden Bill Shean Charles Sheron Steve Smith Mike Turner Chris Willis
ATLANTA BUILDING NEWS Publisher: David Ellis Managing Editor: Nancy Meeks Associate Editors: Christopher Burke and Monica Saunders NAYLOR, LLC Publisher: Tom Schell Editor: Elsbeth Russell Marketing: Heather McMillen Project Manager: Katie Usher Advertising Sales: Susan Evart, Sarah Lyons, John O’Neil, Marjorie Pedrick, Rick Sauers, SaraCatherine Sedberry, Paul Walley, Jason Zawada Layout & Design: Catharine Snell Advertising Art: Jean-Baptiste Bonnelame ATLANTA BUILDING NEWS, The Voice of the Greater Atlanta Home Builders Association, P.O. Box 450749, Atlanta, GA 31145. Tel: (770) 938-9900. February 2011. Published quarterly 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. ©2011 by Naylor, LLC. All rights reserved.
PUBLISHED FEBRUARY 2011/GAH-Q0111/5117
4 SPRING 2011 | ATLANTA BUILDING NEWS
JANUARY 12
✔ Partnering Guide Lunch & Learn, Noon – 2 p.m. ✔ The NEW Georgia Energy Code for Residential Applications, 8 a.m. – Noon
13-14
✔ Residential Contractor Licensing Exam Prep Course, Southern Polytechnic State University, 8 a.m.– 5 p.m.
13
✔ Lead Certified Renovator, 8:30 a.m.– 5 p.m.
20
✔ CPHB Advanced Leadership Series: In Pursuit of Ethics, 9 a.m. – 12:30 p.m. ✔ Green Building 101 Lunch & Learn, Noon – 2 p.m.
26
✔ Adapting Your Building Company for Remodeling, 9 a.m. – 12:30 p.m. ✔ Clearing the Air Lunch & Learn, Noon – 2 p.m.
27
E D U C AT I O N A N D E V E N T S C A L E N DA R
MARCH 8
✔ EarthCraft House Renovation, Southface Energy Institute, 8 a.m. – 5 p.m.
17-18
✔ Residential Contractor Licensing Exam Prep Course, Southern Polytechnic State University, 8 a.m.– 5 p.m.
APRIL 5-28
✔ Builder Licensing Exam Prep 4-Week Course, 8 a.m. – 5 p.m.
6
✔ Lead Certified Renovator, 8:30 a.m.– 5 p.m.
21-22
✔ Residential Contractor Licensing Exam Prep Course, Southern Polytechnic State University, 8 a.m.– 5 p.m.
✔ Level 1-A: Fundamentals of Erosion and Sediment Control, 8:30 a.m. – 5 p.m. ✔ The NEW Georgia Energy Code for Residential Applications, 8 a.m. – 12 p.m.
FEBRUARY 1
✔ Business Accounting and Job Cost, 8:30 a.m. – 4:30 p.m.
2-3
✔ Green Building for Building Professionals, 8 a.m. – 5 p.m.
2
✔ Diversification: Capitalizing on New Business Opportunities, 8:30 a.m. – 4:30 p.m.
3
✔ Negotiating Skills, 8:30 a.m. – 4:30 p.m.
7
✔ EarthCraft House Building, Southface Energy Institute, 8 a.m. – 5 p.m.
8
✔ Business Management for Building Professionals, 8:30 a.m.– 4:30 p.m.
9
✔ Marketing & Communications Strategies for Aging & Accessibility (CAPS I), 8 a.m.– 5 p.m.
✔ Selling the EarthCraft House, 8:30 a.m. – 12:30 p.m.
10-11
✔ Residential Contractor Licensing Exam Prep Course, Southern Polytechnic State University, 8 a.m.– 5 p.m.
10
✔ Design/Build Solutions for Aging & Accessibility (CAPS II), 8 a.m.– 5 p.m.
15-16
✔ Advanced Green Building: Building Science, 8:30 a.m.– 5 p.m.
15
✔ Project Management, 8:30 a.m.– 4:30 p.m.
16
✔ MetroStudy Market Update, 8 – 10 a.m.
17
✔ Construction Contracts and Law, 8:30 a.m.– 4:30 p.m. ✔ The NEW Georgia Energy Code for Residential Applications, 8 a.m. – 12 p.m.
22
✔ Scheduling, 8:30 a.m.– 4:30 p.m.
23
✔ Financial Management, 8:30 a.m.– 4:30 p.m.
24
✔ Estimating for Builders and Remodelers, 8:30 a.m.– 4:30 p.m.
Calendar Key to Events: ✔ This course is approved for CPHB program continuing education credits. ■ Environmental Issues ■ Education ■ Social Events ■ Membership Meetings 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 the latest calendar online at www.atlantahomebuilders.com.
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F E AT U R E
Housing industry experts see signs of hope for 2011 Homebuilders in the metro Atlanta area and across the nation who are familiar with Charles Dickens likely would describe the bubble years of 2005-06 as the spring of hope and the last few years as the winter of despair. But with the spring buying fast approaching, industry experts are hoping for a somewhat brighter 2011. Wall Street cheered Jan. 4 when a report from the Automatic Data Processing firm said that 297,000 jobs were created in the U.S. private sector in December, the largest gain since the ADP began tracking jobs in 2000. Those numbers helped offset a less encouraging employment picture for Georgia, where unemployment hovered at 10.1 percent in November. It was the 38th consecutive month in which the state unemployment rate was higher than that of the nation, which stood at 9.8 percent in November. The numbers were even worse in metro Atlanta, which had a 10.3 percent
unemployment rate in November, according to a report from the Georgia Department of Labor. Though Georgia has a long way to go in recovering from the recession, the new year seems to have brought with it a sense of optimism that progress will be made in 2011. Eugene James, the director of the Decatur office of Metrostudy, a leading provider of housing-industry data, said some economists are projecting 30,000 new jobs for the metro Atlanta region in 2011. That job growth would provide more homebuyers for builders in the area that James monitors, which covers 22 counties and extends 100 miles from the city in every direction. “I think housing will get better once
By Nick Gustav
the job market gets better, and that is slowing happening right before our eyes, even though we don’t read about it very much,” James said. “Locally and nationally, we’re starting
www.atlantahomebuilders.com
7
to create jobs. It’s going to be a long haul. I’m not saying that we’re going to replace all the jobs that were lost over the past two or three years, but we finally have turned the corner and are starting to see some positive employment trends.� James said job growth leads to increased demand for products and services, which in turn leads to more job growth. And when the unemployed start landing jobs and those who are employed feel more confident that their
jobs are here to stay, houses will begin to be sold at a faster rate. “I think we’re already starting to see a disconnect where employment has been picking up, but new construction has not been picking up, which I think is going to lead to a future shortage of new homes in Atlanta,� James said. “We expect to see an uptick in demand for housing this spring buying season. I’m very hopeful that things will pick up.�
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506806_Utilities.indd 1 SPRING 2011
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ATLANTA BUILDING NEWS
11/24/10 6:15:38 PM
Mike Smith, the president of the Greater Atlanta Home Builders Association and the owner of Bufordbased Harcrest Homes, said consumer traffic picked up last spring, largely due to the federal tax credit for homebuyers, and dropped off in the fall after that tax credit expired. He said job growth will be the key to attracting homebuyers in 2011. â&#x20AC;&#x153;Here in Atlanta, we need job growth if weâ&#x20AC;&#x2122;re going to have any kind of sustained upturn,â&#x20AC;? Smith said.
With the spring buying fast approaching, industry experts are hoping for a somewhat brighter 2011. â&#x20AC;&#x153;Looking at the numbers, weâ&#x20AC;&#x2122;re poised to have a decent year in that our inventory is down. Thereâ&#x20AC;&#x2122;s not much out there, but you need that job growth to have any significant turnaround. If we do get some slow job growth and things do start to improve, builders are going to see a pretty good upturn.â&#x20AC;? James said that midway through 2006, Atlanta-area homebuilders had built more than 58,000 homes during the preceding 12-month period, leaving the area with an inventory of about 40,000 new homes. â&#x20AC;&#x153;Today, our inventory is closer to 9,000 houses throughout metro Atlanta,â&#x20AC;? James said. â&#x20AC;&#x153;Bit by bit, weâ&#x20AC;&#x2122;ve managed to slowly rid ourselves of that oversupply.â&#x20AC;? While the smaller inventory is good news for builders, the glut of foreclosures, as well competition from resales, ensure that it continues to be a buyerâ&#x20AC;&#x2122;s market. Smith said itâ&#x20AC;&#x2122;s important for homebuilders to educate prospective buyers, who often believe that foreclosures offer a better value than new homes. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;ve heard all the talk that they can get a deal on a foreclosure, but you really have to explain to them that the real deals probably wonâ&#x20AC;&#x2122;t come
to the market,” Smith said. “More than likely, an investor will scoop it up before it ever really gets out there. There are foreclosures, but when you go to look at them, you realize you might have to remodel the kitchen because it’s 10 years old, and so it’s not as good a deal as it sounds. And there’s no warranty with the foreclosure.
“We feel that we’re priced competitively, even with those foreclosures. That doesn’t mean we’re as cheap as them. It means that for what you get with us, it’s a good value. We feel strongly about that.” Bob Chapin, a senior vice president with West Point-based CharterBank, said it’s hard to predict what 2011 has in store for builders and lenders,
but the data offer some reasons for optimism. “I don’t think anybody’s predicting a robust recovery for housing,” Chapin said. “There are a lot of good macroeconomic factors in front of us that could be called steppingstones, whether that’s the low supply of new-home inventory, prices that we think have bottomed, consumer confidence with the tax rates being extended for two more years, the manufacturing index or auto sales. There are just a lot of good data points out there. In multifamily housing, the occupancy is going up, the vacancies are going down, and the rents are going up, so that bodes well for housing because at some point it will be cheaper to buy than to rent. All those point to positive trends in the housing market. “The headwinds out there are the shadow inventory of potential foreclosures, the rise in gas prices and unemployment. So, the question is, are the headwinds strong enough to blow us off those steppingstones? That’s the key to me.
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F E AT U R E
Member Participation
Essential to Association Succe
in New Dec By Nancy Meeks
Welcome to the second decade of the new millennium! It’s hard to believe that it’s already 2011; it seems like just yesterday we were ringing in the year 2000. It would be an understatement to say that the past decade has brought us many changes. The country, the state of Georgia, the Atlanta region and the Greater Atlanta Home Builders Association began the decade with a healthy economy, and our businesses boomed for several years. But as everyone knows, with the highs come the lows, and we certainly have experienced the lows in the last few years. Now that a new decade is upon us and the economy is seeing promising signs of recovery, let’s review the past year
to see how the HBA is poised to make 2011 great. In 2010, the HBA was led by President Les Stumpff, chief financial officer of The Knight Group. Les has nearly three decades’ experience in the homebuilding industry, working with Ryland Homes in Florida and Georgia and with Standard Renewable Energy. He has extensive experience in managing all aspects of the homebuilding business, from strategic and financial planning to land acquisition and development, product design, cost estimating and purchasing, field operations, sales and marketing, and managing capital. Before his term as president last year, Les served as the HBA’s treasurer for two years, where he gained an
10 SPRING 2011 | ATLANTA BUILDING NEWS
intimate knowledge of the HBA’s operations. His extensive financial experience and dedication put him in a unique position to help the HBA provide real cost savings benefits to members. “My main goals as president were to strengthen the organization itself— improve its financial performance—and to maintain a positive and useful support framework for our members to draw on. I wanted to emphasize increasing tangible immediate value so that if you’re a member, the benefits you receive are more than enough to offset the cost of your membership,” explained Les. “Stabilizing membership renewals, continuing to recruit new members, and bringing back those folks who have been members in the past are keys to our strength.” Under Les’s leadership, the HBA actually exceeded its membership goals for the fourth quarter of 2010, which he attributes to Les Stumpff some great new
programs the association unveiled to its members throughout the year. “One of the new benefits I was most excited about is Builder Helper,” said Les. Builder Helper is a Web-based construction management software that allows builders and remodelers to post their job specs online, for which trade contractors and other industry professionals can then bid. The program allows everything to be centralized and cuts down on the time it takes to solicit and receive job estimates. “Our members could save a few hundred to possibly more than a thousand dollars by using Builder Helper for free as a member of the HBA rather than buying it directly,” Les said, “and using it will be even more valuable as our building activity picks up.” Another program that Les sees as helpful to members is the HBA’s recently launched group 401K plan, which can save members significant money by lowering the administrative costs associated with their company employee retirement plan. And lastly there’s the statewide group health insurance plan that will soon be available to HBA members. The health insurance plan will become available to members during the tenure of 2011 HBA President Mike Smith of Harcrest Homes. Mike brings with him nearly 20 years of handson construction and management experience. His accomplishments so far include winning numerous OBIE Awards and serving as president of the HBA’s Gwinnett Chapter and president of The Housing Institute’s Certified Professional Home Builder of Georgia program, as well as being named America’s Best Builder by Builder Magazine in 2001 and being the HBA’s 2009 Builder of the Year. Mike is quick to recognize the 2010 successes of the HBA under Les’s guidance as a great foundation to build upon in 2011. “The HBA ended
cess
ecade
Mike Smith
the year on an upbeat note when we exceeded our membership goals and came out ahead of budget. Ending 2010 on a positive note is a great way to begin 2011,” he said. So what does Mike intend to concentrate his energies on this year? Membership. “My goal for 2011 is for members to get reenergized and get more active and for members to encourage participation in the association among themselves,” he said. Mike explained that given the financial realities of the HBA and the limitations in staff time and experience, important HBA activities must get done on a volunteer basis, encourage member engagement. One example, and arguably the most important activity for members to take charge of, is member recruitment and retention. “We as HBA members cannot rely on the association staff to bring in new members. It has to be a memberdriven initiative, and if we are to once again be a leader among the other homebuilders associations throughout the country, this association’s recruitment and retention efforts must be led by members. Mike sees the key to member involvement as getting the benefits of membership—both monetarily and socially—out to as many different people in as many different areas as possible. “I joined the HBA for education and the skills that the HBA offers to members on to run a
quality, successful business, and to get a leg up on the competition. I stayed a member for the networking and collaborative opportunities among other members,” he explained. “People who aren’t involved but are members need to be encouraged to become active, and that encouragement needs to come from fellow members, not staff.” Mike sees more localized events throughout the HBA’s service area and possibly re-activating the HBA’s chapter structure as a good way to reach members who might not currently be active, but he stresses again that these must be member-led activities. “If you are not participating on councils or committees by attending meetings designed for your benefit, not only is the organization missing the opportunity to gain strength from your knowledge and experience, but you are missing a fantastic opportunity to share in the wealth of knowledge, experience and support that the active members of the HBA are willing to share with you,” said Mike. Both Les and Mike are excited to see what 2011 brings. “I certainly think that 2011 will be a better year because throughout the second half of 2010 we’ve continued to see increases in consumer confidence and business confidence, and getting through the 2010 election season has removed some of the uncertainty that business leaders have had about investing and adding jobs,” says Les. Mike adds, “I think we’ll start to see a pickup in employment and new home starts that will bring people back to the industry. I believe that will the real beginning of economic recovery, which will create the opportunity for the HBA to rebuild, too.” Both agree that 2011 will still be challenging, but no matter what happens in the housing industry, no organization will help you do business better than the HBA. If your colleagues are not members, encourage them to join, and be sure to renew your membership when it’s due. Most of all, your association needs your active involvement. One for all, and all for one! www.atlantahomebuilders.com
11
LEGAL CORNER
Alleged Pre-Contract Misrepresentations May Sometimes Trump Contract Terms The recent decision by the Georgia Court of Appeals in Sarif v. Novare Group, Inc. is a reminder to builders, sellers and realtors that a claim for alleged pre-contract misrepresentations can sometimes be pursued despite a purchase contract that: (1) does not include the alleged misrepresentation; (2) expressly states that its terms are the only enforceable terms; (3) expressly states that no prior non-contract representation are be relied upon; and (4) includes other express disclaimers that contradicts the alleged representation. Three years after buying condominium units in a high-rise condominium, eight buyers sued the condominium developer and the marketers alleging that they had bought their units in reliance on statements in the defendants’ marketing materials that the units had “spectacular city views”
of downtown Atlanta, and in reliance on the defendants‘ verbal statements that any future development of the developer’s property directly opposite the condominium would not obstruct the plaintiffs’ views. The plaintiffs contended that, when these alleged representations were made, the defendants knew they were false. The plaintiffs filed suit a few months after they claim it became evident that the developer’s other project would obstruct the plaintiffs’ views. The purchase contracts, which did not include alleged representations regarding views or development plans relating to the other project, included the following paragraph: ENTIRE AGREEMENT. This Agreement contains the entire agreement between the parties hereto. No agent,
Sarif v. Novare Group, Inc. is a reminder to builders, sellers and realtors that a claim for alleged pre-contract misrepresentations can sometimes be pursued despite a purchase contract.
representative, salesman or officer of the parties hereto has authority to make, or has made, any statements, agreements, or representations, either oral or in writing, in connection herewith, modifying, adding to, or changing the terms and conditions hereof and neither party has relied upon any representation or warranty not set forth in this Agreement. No dealings between the parties or customs shall be permitted to contradict, vary, add to, or modify the terms hereof. (Underlining added.) The contracts also stated that the purchasers have not relied upon any “advice, representations or statements of [b]rokers and waive and shall not assert any claims against [b]rokers involving the same…” and that the purchasers “agree that [b]rokers shall not be responsible to advise…them on any matter, including…any condition(s) existing off the Condominium that may affect the Condominium[.]” Additionally, the contracts stated that “[t]he views from…the Unit may change over time due to, among other circumstances, additional development and the removal or addition of landscaping.” Despite these provisions, the Georgia Court of Appeals determined that the buyers could seek to rescind their purchases of the units and seek related alleged damages. The defendants are asking the Georgia Supreme Court to reverse the Court of Appeal’s decision. Frank O. Brown, Jr. is General Counsel to the Greater Atlanta Home Builders Association, Inc. and is a shareholder at Weissman, Nowack, Curry & Wilco, P.C. For questions or comments regarding this article, he may be reached at frankbrown@wncwlaw.com or (404) 926-4504.
12 SPRING 2011 | ATLANTA BUILDING NEWS
E A RT H C R A F T
New Developments in Energy Policy: The 2011 Georgia Residential Energy Code
By Abby Schwimmer, Southface
It’s a new year, and the state of Georgia has adopted
A SPECTRUM OF BENEFITS
a new residential energy code, based on the IECC 2009 plus the Georgia Supplements and Amendments. These regulations, which apply to all new and renovated buildings permitted after Jan. 1, 2011, provide a comprehensive framework for efficient homes that have the potential to generate tremendous energy savings.
The new code’s requirements — both prescriptive and performance-based — serve as a set of construction and renovation best practices that can lead to better-designed homes. For both builders and homebuyers, the code presents a beneficial scenario. Homebuyers living in more energy-efficient homes will see significant reductions in their utility bills and increased resale values. In addition, since the new code includes provisions to reduce air infiltration, homes built to the new code’s standards will provide new levels of comfort. At the same time, increased comfort will mean fewer costly callbacks for builders. What’s more, the code’s air leakage testing requirement will to spur demand for testing services, and it will present a viable business opportunity for building industry professionals. To qualify individuals to perform this testing, Georgia has created a Duct and Envelope Tightness Verification (DET) certification. Southface now offers this certification, which requires both a field evaluation and a written test. Those who have already received certain building science certifications, including HERS Raters, BPI Building Analyst Professionals and Home Performance with ENERGY STAR® Contractors, are considered to have the requisite equipment use skills and do not need to compete the DET Verification training.
THE BASICS So what does the new code mean for builders? What are the need-to-know changes? Notable provisions include the following: • The effectiveness of a home’s air barrier must be verified by a blower door test, and its ducts must be sealed with mastic and checked for air leakage with duct pressurization equipment. Both tests must be performed by a certified building science professional. • Windows installed in new homes must have a lower solar heat gain coefficient (0.3) than in previous iterations of the code. Lighting is also required to meet higher efficiency standards. • The use of power attic ventilators is restricted, and the use of electric furnaces as a primary heat source is prohibited.
STEPS FORWARD IN ENERGY CONSERVATION Above and beyond the economic benefits of this new regulation, expect tremendous long-term environmental benefits. According to the Building Codes Assistance Project (BCAP), buildings in the United States use more than one-third of its energy. In 2008, the Energy Information Agency estimated that weather-related energy use, in the form of heating, cooling and ventilation, comprised 40 percent of all delivered energy use in buildings. By promoting sound construction and smart, energy-efficient design, the code is poised to be a powerful force for energy conservation within the state of Georgia.
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Partners
Southface’s Benson Johnson sets up a duct blaster test. Under Georgia’s new residential energy code, ducts must be sealed with mastic and checked for air leakage with duct pressurization equipment.
Associate Partners "EWBODFE $PODSFUF --$ t 8BUU4UPQQFS
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THE HOUSING INSTITUTE
2011 THI Board of Directors Installed On Jan. 18, 2011, The Housing Institute, Inc. (THI) installed its board of directors. Michael Smith and Kirk Boggs were installed as THI’s president and VP for 2011. The event took place at the Cobb Galleria Centre in Atlanta. Michael Smith is the president of Harcrest Homes, LLC. Smith was instrumental in developing efficient systems that led Harcrest to be named American Best Builder by Builder Magazine in 2001. With Harcrest, Smith has built over 1,100 homes and currently builds 40-60 homes annually. Smith is an active member of the GAHBA and served as president of its Gwinnett chapter in 2000. He was recently named the 2009 Builder of the Year. Smith serves on the Greater Atlanta Home Builders Association Board of Directors and is its president. Kirk Boggs, president, Benchmark Homes, LTD has over 20 years experience in the home building industry. Since 1971, Benchmark has consistently held the bar high for new home construction in Atlanta. Rooted in traditional family values, Benchmark’s goal is constructing the highest quality homes and neighborhoods while establishing strong, lasting relationships with customers. Those same values and sound business practices continue today in this family-run business.
In addition to Smith and Boggs, the current THI board of directors includes Ben Lively, Cliftwood Homes; Frank Brown, Weismann, Nowack, Curry & Wilco, PC; David Clough, Waterford Homes; John Cooperf, John Cooper Homes; David Ellis, Greater Atlanta Home Builders Association; Fred Elsberry, Better Business Bureau; James George, C&J Custom Homes; Donald Hensler, MAIA; Gary Lewis, Georgia Association of Home Inspectors; Tony Perry, McKenzie-Perry Homes, Inc; Steve Smith, HADCO; Morgan Wheeler, Walton County; and Randy Wilhite, Northwest Exterminating.
Photo to come
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E D U C AT I O N
Are you prepared for the new energy code in 2011? By Amanda Meadows-Mathis, Education Manager
The new energy code took effect on Jan. 1, 2011 and it not only applies to new construction but also may apply to some remodeling and renovation projects! Join us for one of our half-day sessions that will help participants to understand the many provisions from the 2009 International Energy Conservation Code along with the associated Georgia Amendments that will give Georgia some of its most stringent requirements. The focus of these sessions will be on the residential portion of the code. The classes are being facilitated by Daniel Jewitt. Daniel has been developing and teaching construction-specific classes for over 14 years. He has taught the One and Two Family Dwelling Code class for both the Greater Atlanta Home Builders Association and the Georgia Association of
Home Inspectors. He has also conducted training for the Georgia Construction Licensing Exams since June 2007. Daniel’s experience as a property inspector and an expert witness in legal cases are reflected in a very practical instructional approach. Who should attend this session? All builders, remodelers, and trade professionals should attend this session to stay on top of the latest code requirements. Classes are being added as needed and have been filling up fast so save your seat today. Register at www.atlantahomebuilders.com. For more information on education contact Amanda Mathis at education@atlantahomebuilders.com or at 678-775-1469.
Register at www.atlantahomebuilders.com
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B O O K S TO R E
BUILD INCENTIVES WITH SCANA ENERGY Homebuilders have enough details to work through without the added job of securing a natural gas provider. That's where SCANA Energy comes in. We make it easy for you with our Preferred Builder Program a win-win opportunity with special incentives and benefits for both you and your homeowners. Enroll in the Preferred Builder Program today! Call 404-760-6233 or 1-888-621-8828 and find out how SCANA Energy can make a difference for you.
Order Your 2009 International Energy Conservation Code Today! The 2009 International Energy Conservation Code encourages energy conservation through efficiency in envelope design, mechanical systems, lighting systems and the use of new materials and techniques. **Includes GA Amendments**
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Member Price: $35, Non-member Price: $45 To place your order, please visit www.atlantahomebuilders.com. The order form or online order options are available in the Bookstore section of the website. For more information contact Amanda Mathis at bookstore@atlantahomebuilders.com or 678-775-1469.
H O M E A I D AT L A N TA
2011 HomeAid Atlanta Corporate & Individual Sponsors DIAMOND
PLATINUM
HomeAid Atlanta Celebrates the 2010 Trade Partner, Volunteer of the Year 2010 TRADE PARTNER OF THE YEAR
GOLD
MARKETING PARTNERS
COMMUNITY PARTNERS
SILVER CB Richard EllisSilver Anonymous CharterBank Coldwell Banker Residential Brokerage CARES Foundation O’Kelley & Sorohan
BRONZE Ernst Concrete
FRIENDS Atlanta Sales & Marketing Council Builders II ProBuild William Shean
The HomeAid Atlanta Trade Partner of the Year Award is presented to a non-builder partner of one or more of HomeAid Atlanta’s shelter projects. This company must be dedicated to HomeAid Atlanta’s mission of building housing for the homeless, be committed to improving Atlanta’s homeless crisis, give generously of their time and talents, and go above and beyond in their role as a Trade Partner. The 2010 Trade Partner of the Year is White Rock Drywall. White Rock Drywall has been an active supporter of HomeAid Atlanta for several years. The company has been involved with HomeAid in a variety of capacities, including being a corporate sponsor and generously donating a combination of drywall and painting services for numerous shelter projects. Projects with which the company has been involved include HomeStretch, My House, The Winn House, Tapestry Youth Ministries and, most recently, Phoenix Pass, all of which serve homeless families or children. White Rock has also participated in the HomeAid Cares program to assist homeless service providers with facility repairs and maintenance. In addition, the company has regularly participated in one of HomeAid’s annual fundraisers, the Fairway to Haven® Golf Classic. White Rock Drywall is committed to giving
back to the community and helping others, evidenced through their devoted support of HomeAid Atlanta. Since 1992, White Rock Drywall has been serving Atlanta’s drywall needs with an unparalleled reputation of dependability and honesty. As one of the largest drywall companies in the Southeast, White Rock is built on the cornerstone of service. With more than 25 years of combined experience, the company’s team of skilled tradesmen is able to handle a variety of residential drywall and painting needs, from new work orders to last minute touch-ups and emergency requests. With ample resources to meet every demand, White Rock stands out from the competition. Dedicated to delivering exceptional results in a timely manner, the company helps to take the undue stress out of home building. HomeAid Atlanta is proud to recognize White Rock Drywall as the 2010 Trade Partner of the Year for their dedicated service and commitment to HomeAid Atlanta.
2010 VOLUNTEER OF THE YEAR
The HomeAid Atlanta Volunteer of the Year Award is presented to a group of HomeAid Atlanta’s dedicated volunteers for their outstanding service. This group has donated extensive time and energy toward the success of HomeAid Atlanta, and is committed to the organization’s mission of building and maintaining dignified housing www.atlantahomebuilders.com
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where homeless families and individuals can rebuild their lives. The 2010 Volunteer of the Year is the Community Service Committee of the Building Owners and Managers of Atlanta (BOMA-Atlanta). BOMA-Atlanta’s Community Service Committee has partnered with HomeAid Atlanta for the past two years to participate in two extensive HomeAid Cares projects. In 2009, the committee organized more than 120 BOMA-Atlanta volunteers to participate in a HomeAid Care Day in College Park
to begin renovations on a duplex which now serves homeless young mothers and their children. Then, in 2010, the committee came back even stronger, bringing together nearly 200 volunteers to participate in a HomeAid Care Day at Genesis – A New Life in Atlanta, a shelter serving homeless newborn babies and their families. During this HomeAid Care Day, volunteers took part in a variety of construction-related activities to assist the shelter with much-needed repairs and maintenance. Volunteers from BOMA-Atlanta have
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demonstrated a strong desire to help further the mission of HomeAid Atlanta, eagerly participating with a true spirit of service. The Building Owners and Managers of Atlanta is Atlanta’s premier commercial real estate association, representing one of the largest industries in metropolitan Atlanta. BOMA membership includes building owners, property managers, facility managers, building engineers and allied-member vendors in service to the industry. BOMA’s mission is to lead the commercial real estate community to enhance the professionalism and value of members through education, advocacy, community involvement, membership participation and the open exchange of ideas. BOMA members are responsible for more than $135 million in annual tax revenues to the City of Atlanta and counties in the metro Atlanta area and are responsible for the ownership/ management and administration of over 150 million square feet of office space, and additional millions of square feet of facilities throughout the metro Atlanta area. HomeAid Atlanta is proud to recognize BOMA-Atlanta’s Community Service Committee as the 2010 Volunteer of the Year for their tremendous service and dedication to HomeAid Atlanta.
AT L A N TA 5 0 + H O U S I N G C O U N C I L
2011: Renewed Energy By Jim Chapman, Chair of the Atlanta 50+ Council
The Board of the Atlanta 50+ Housing Council reconvened after the holidays on Jan. 5, and we are looking forward to an exciting 2011 full of dynamic programs and educational opportunities. A reinvigorated membership campaign has begun, and we are busy signing up the 2011 council sponsors, all of whom share our vision for the future of a robust 50+ housing market in Atlanta and Georgia as well.
DYNAMIC PROGRAMS On March 15 the Council will host an evening program called “Dynamic Duos- Leaders of the 50+ Housing Industry.” This program will feature building/development leaders from the Atlanta 50+ housing market as well as their sales counterpart. Jim Chapman and Kelley Dempsey will be representing Jim Chapman Communities, and several other key players in the Atlanta 50+ housing market have been asked to be on the panel. This program, coupled with networking and social opportunities over a dinner should prove to be a great way to start off the year.
2010 Atlanta 50+ Housing Council Sponsors GOLD Gilbert & Sheppard Group
SILVER AARP Evolv
EVENT MetLife Home Loans Timberlake Cabinetry
Our next program, planned for June 7, is a lunch featuring guest speaker Margaret Wylde of ProMatura, (www. promatura.com/promatura-background. php). Wylde is nationally recognized as an expert in all aspects of age-qualified housing as acknowledged by the National Association of Home Builders 50+ Housing Council’s “Icon of the Industry” award in recognition of her substantial and lasting impact on the 50+ housing industry. The meeting will feature sales prospects from different 50 + builder/developers in Atlanta who toured that respective property but chose not to purchase there. This discourse should be very informative.
Our organization offers tools for business success as well as excellent opportunities for networking and fellowship. One of the most exciting offerings is the 50+ Housing Council University Day. This first-of-its-kind learning and networking event is scheduled for Thursday, Oct. 13 at the Cobb Galleria. Housing experts will present on topics ranging from universal design and green building to 50+ sales and marketing. The event will be an excellent opportunity to network and exchange ideas with leading architects, builders, designers, realtors, market researchers and others who share a passion for this growing demographic. Watch for additional information at the website www.50plusuniversity.com.
MEMBERSHIP Our current membership roster is experiencing a surge as members of the Board have committed to one another to encourage at least two people per Board member to join or re-join. This renewed effort is already paying off as the individual members of the Board are personally reaching out to HBA members whom they feel would benefit from an association with the Council. This is a very exciting commitment from the Board, and I am very proud of their efforts.
SPONSORSHIP The Board has decided this year to actively enlist the sponsorship of six, year-long sponsors. These sponsors will receive equal exposure at all events. The cost is $1,200 and for that you will receive table top recognition at all four Council events, two complimentary registrations per event, your logo on all marketing materials and websites, the opportunity to provide one guest blog per month that relates to the 50+ housing Industry and much more. Better hurry — there are only four remaining spots! If you are interested in being a sponsor, please call Janel Grant at 770-938-9900.
CONTINUED MOMENTUM As one of the brightest spots in the anticipated real estate recovery, the 50+ market offers solid opportunities for growth. I want to warmly thank current members of the Council for their enthusiastic participation and collegiality. And I want to encourage those considering membership to say, “Yes!” Our organization offers tools for business success as well as excellent opportunities for networking and fellowship. www.atlantahomebuilders.com
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GREEN BUILDING COUNCIL
2011 Energy Tax Credits for Greater Atlanta By Matt Hoots, Chair of the Atlanta Green Building Council
You may have heard the buzz about energy tax credits increasing a couple years ago for items such as window replacement to geothermal HVAC. There have been a few changes in the tax code for 2011. For energy upgrades to existing houses, the $1,500 credit that you have seen windows suppliers and insulation installers advertising was set to expire Dec. 31, 2010. Many contractors saw a rush of clients at the end of the year take advantage of this expiring credit. The good news is that the credit was extended for another year however it is for 10 percent of the cost, up to $500 for this year. There is good news though, if you live in the city of Atlanta and are a Georgia Power client you can get up to $4,000 for similar
improvements. However, you must go through a home performance contractor that is part of the program to get these rebates. The other good news is that the renewable energy federal tax credit is still good through 2016. This applies to qualified products like geothermal HVAC, solar hot water, photovoltaic and wind power. You get 30 percent off the installed cost without a cap on your federal tax return. The tax credit for the state of Georgia does expire this year and once the 2.5MM in the fund is exhausted, it will not be renewed. While most of the credits and rebates mentioned benefits existing homes only, new construction clients can benefit the greatest if they install renewable energy. New homeowners can get the 30 percent credit on items such as geothermal HVAC and solar when building new homes.
New construction clients can benefit the greatest if they install renewable energy.
2011 Green Building Council Sponsors
20 SPRING 2011 | ATLANTA BUILDING NEWS
GOLD
SILVER
AVI/Marvin Design Gallery ENERGY STAR Georgia Power Icynene
Atlanta Gas Light Fresh World Water Furnace
SALES AND MARKE TING COUNCIL
What’s in Store for Atlanta’s Homebuilding Industry in 2011? By Michelle Graves, Sales and Marketing Director, John Thomas Homes
This is the million dollar question. Everyone who thinks they have a crystal ball would love to tell you what’s in store for Atlanta’s homebuilding industry in 2011. Have we hit bottom? Will this year be better than 2010 and (God help us) 2009? There’s only one direction we can go in which is up—right? Well, since none of us really have a crystal ball, we can only go with the facts. Here’s what we know: According to the National Homebuilders Association, building permits were up 20 percent from November 2009 to November 2010. New home sales had a 5.8 percent gain
2011 Sales and Marketing Council Sponsors
GREAT YEAR WITH GREAT PROGRAMS Looking for an opportunity to learn from top industry experts? Perhaps
PLATINUM The Atlanta Journal-Constitution AVA Productions Moray Black Productions
GOLD Atlanta Gas Light Atlanta’s Best New Homes TV Georgia Power Guaranty Mortgage MetLife Home Loans mRelevance Naylor Publications
SILVER AtlantaNewHomesDirectory.com Bank of America Coldwell Banker NRT Development Advisors The Interior Partners Newland Communities O’Kelly and Sorohan Attorneys at Law
FRIENDS Peggy Slappey Properties
John Palumbo
networking with other new home professionals is more your style. In 2011 we will be offering the opportunity to do both. The Sales and Marketing Council has lined up great presentations by sought after speakers John Palumbo, Kerry Mulcrone, Meredith Oliver and Myers Barnes. Back by popular demand will be the Deals on Wheels Bus Tour and we will continue to support the 5K Green Awareness walk/run at Georgia Tech. Of course there will be the classics, Meet the Obie Judges Party and the end of the year Holiday Party. Come out and join us.
PRELIMINARY 2011 SCHEDULE* FEBRUARY “How to Think Like a Magician” with John Palumbo Breakfast Meeting + Afternoon Workshop
SEPTEMBER SMC Elections Meeting PLUS Meredith Oliver 5K Green Awareness Run/Walk Fundraiser at Georgia Tech
APRIL Sales & Marketing Training with Kelly Mulcrone
OCTOBER Deal on Wheels Bus Tour (2 dates)
MAY Sales Trainer - Myers Barnes AUGUST Meet the OBIE Judges Party
NOVEMBER 2011 OBIE Awards DECEMBER Holiday Luncheon/Party *Programs are subject to change
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With low interest rates and never before seen deals on a new home, no time may be better to buy a home than the present. in November in the South (which is the nation’s largest market). Residential construction spending increased for the 3rd month in a row in November. Industry leaders also remain optimistic about what 2011 will bring to the industry. These are all positive signs that indeed the market is looking up for 2011. However, it still seems that many new home buyers remain on the fence, waiting for an even bigger sign that we have hit bottom. Right now, buyers are hearing that the stars, sun and moon have never aligned so perfectly and that there has never been a better time to buy a new home. According to the facts below, nothing could be more than true. • The phenomenal interest rates that we have seen in the last few years are starting to tick up. Since November, rates have already increased as much as ½ percent. • The costs of construction materials are going up. Lumber costs have already risen and are expected to continue throughout Spring 2011. Copper prices have hit a 5 year high—which will affect costs of electrical and heating and air systems. Concrete and landscaping are also predicted to increase in Spring 2011. • It’s no secret that Atlanta’s builders, who in the past primarily built and sold “speculative houses”, have
severely slowed down or altogether discontinued this trend. Many local and national builders are mainly selling “pre-sale” homes now due to the fact that they have little or no inventory. Because of this, many experts predict we will have a housing shortage in the future. According to Brian Westbury, chief economist at First Trust Advisors, we are currently only starting one third of the houses needed to keep up just with the nation’s population growth—the foreclosures and shortsales have helped supply the rest
of the demand for the time being. However, once the foreclosures and short-sales diminish, we are looking at a housing shortage—unless builders start building again. It’s simple supply and demand—if supply goes down, demand goes up—and so do prices. So it looks as if the cost of owning a new home up will go up in the future— either due to the increased cost of borrowing money, costs of construction materials forcing builders to raise their prices, or a housing shortage that will shorten supply and spike demand. No one can predict exactly when this may happen, but one thing is for sure—with low interest rates and never before seen deals on a new home, no time may be better to buy a home than the present.
I N D E X TO A DV E RT I S E R S AIR CONDITIONING/HEATING CONTRACTORS Reliance Heating and Air Conditioning...........................................................................14 www.reliance-hvac.com BUILDING MATERIALS - STRUCTURAL PANELS Norbord Industries Inc. ..................................................................9, 15, inside front cover www.norbord.com ENERGY CONSERVATION MANAGEMENT SERVICES ENERGY STAR Homes Program ...........................................................inside back cover www.georgiapower.com/energystar INSURANCE - BUILDERS Builders Insurance Group...............................................................................................16 www.bldrs.com LUMBER Norbord Industries Inc. ..................................................................9, 15, inside front cover www.norbord.com SIDING Nichiha USA, Inc. ................................................................................ outside back cover www.nichiha.com STRUCTURAL PANELS Norbord Industries Inc. ..................................................................9, 15, inside front cover www.norbord.com UTILITIES Georgia Power Company .................................................................................................6 www.georgiapower.com SCANA Energy ...............................................................................................................16 www.scanaenergy.com Utilities Protection Center .................................................................................................8 www.gaupc.com WARRANTY SERVICES Bonded Builders Warranty Group .......................................................... inside front cover www.bondedbuilders.com
22 SPRING 2011 | ATLANTA BUILDING NEWS
You put a fortune into your house. What if it could return the favor?
Upgrade your energy efficiency for an immediate return of $ 525! Georgia Power is rewarding energy efficient customers with a handsome rebate. Replace your gas water heater with a Marathon® and get a $525 rebate! Marathon’s design makes it one of the most energy-efficient water heaters on the market. And, Marathon’s inner tank will never rust, corrode, or leak. They guarantee it. For additional savings, convert your gas furnace to an energy efficient heat pump. High efficiency heat pumps use substantially less energy than standard models and can save you up to $300 a year. Call 1-800-524-2421, ext. 550 for rebate details and installer recommendations. And prepare for a sweet payback. Certain restrictions may apply. Must be a Georgia Power customer to qualify for rebate. Actual energy savings may vary based on individual equipment and usage. All equipment subject to manufacturers’ warranties. 2011 Marathon rebate is available from January 1 through December 31, 2011. Heat pump rebates and federal tax credits may be available – call for details. Rebates are subject to limitations and subject to change without notice.