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September/October 2015 The exclusive magazine of MBIA

THE

2015

PROS AWARDS

Honoring the Best from Permits to Purchasing

12

THE 250TH ANNIVERSARY OF THE MASON DIXON SURVEY

22

MBIA’S GOLF TOURNAMENT

24

DEATH OF THE SUBURBS PART V

3 & IBC SOLARCITY

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Contact Robert McDonald 1-877-767-1800 Offices in Jessup, MD, Prince Frederick, MD and Chantilly, VA

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IN THIS ISSUE

18 FEATURES

12

THE MASON DIXON SURVEY The 250th Anniversary COVER FEATURE

18

THE PROS AWARDS The Best from Permits to Purchasing

22

MBIA’S GOLF TOURNAMENT Over the Bunkers and Through the Woods

24

DEATH OF THE SUBURBS PART V The Great Inversion

28

MBIA’S NIGHT AT CAMDEN YARDS The Battle of the Beltway Series

IN EVERY ISSUE 2

EVENTS CALENDAR

10 ENGINEER’S TOOLBOX

38 NEW MEMBERS

4

PRESIDENT’S MESSAGE

30 FINANCIAL REVIEW

40 STARS CLUB

6

CEO’S MESSAGE

32 STATS & FACTS

40 ADVERTISER INDEX

8

LEGAL BRIEF

34 NEW PRODUCT SPOTLIGHT

marylandbuilders.org

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EVENTS CALENDAR November/December 2014 Vol. 56 Issue 4

N TIC BUIL

MBIA’s Birthday Open House

Harford County Crab Feast

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SEPTEMBER

Harford County Equestrian Center Bel Air, MD September 17

MBIA Fulton, MD September 2

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PWB’s Wine & Cheese Networking Event

McCormick & Schmick’s Baltimore, MD September 8

4 Past Presidents

Builder 8 A Photo Tour of HBAM Builder MartConnections Events Ten Oaks Ballroom Awards Clarksville, MD Publications September 16 Staff

28

Q&A

Orioles vs. Nationals Nationals Park Washington, DC September 21

Prince Story 30 Builder’s

George’s County Happy 34 Extreme HourMakeover A look at HBAM members featured on Building relationships that last a lifetime.

Canyon theCopper hit television show.Grill

4

Multifamily Council Site Tour

Mid-Atlantic Builder sat down with past members to hear a bit about our history and garner advice about the path for our future.

The Cadence at Crown Gaithersburg, MD September 17

Looking Ahead

38 Merger

Our future. A closer look at the Maryland Building Industry Association BUILD MARYLAND

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Glenarden, MD September 23

Also 44

President’s Message

GALA Awards

EDITOR

McLean Hilton

Kristin Josephson Hogle, Communications McLean, VADirector communications@homebuilders.org

October 8

ADVERTISING

Hel 201 Req Con

Chris Baughan, Advertising Sales Manager 410-265-7400, ext. 121 chris@homebuilders.org

Chef Night & Silent Auction DESIGN

Heather Winkel, Art Director Martin’s Crosswinds Corinne Thompson, Graphic Designer Greenbelt, MD Network Design Group ndg@networkmediapartners.com October 21

HBAM LEGAL COUNSEL Linowes and Blocher

The per ener curr

MID-ATLANTIC BUILDER is a publication of HBAM Member Services, Inc., a subsidiary of the Home Builders Association of Maryland, Inc., 6030 Daybreak Circle #A150 PMB 362 Clarksville, MD 21029 410-265-7400, www.homebuilders.org. Postmaster: Send address changes to Home Builders Association of Maryland, Inc., 6030 Daybreak Circle #A150 PMB 362 Clarksville, MD 21029

*Changes in dates and locations of events listed on our calendar do occur. Please ECO visitBOX www.marylandbuilders.org for the latest information.

Mid-Atlantic Builder text and cover pages are printed on SFI certified Anthem Plus Gloss using soy ink.

Ad List • The Sustainable Forestry Initiative® program promotes sustainable forest management.

BUILD Maryland text and cover pages are printed on SFI certified Anthem Plus Gloss using soy ink. The Sustainable Forestry Initiative® program promotes sustainable forest management.

BUILD Maryland is published bimonthly by MBIA—the Maryland Building Industry Association, 11825 West Market Place, Fulton, MD 20759. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of MBIA. The publisher reserves the right to accept or reject any editorial or advertising matter at its discretion. The publisher is not responsible for claims made by advertisers. POSTMASTER: Send change of address to MBIA, 11825 West Place, Fulton, MDa20759, USA. © 2015 MBIA. All rights reserved. MBIAMarket will continue to make positive

Co “E En yo

40 Foundations Merger

impact in our communities through charitable foundation. September/October 15

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PRESIDENT’S MESSAGE

The exclusive magazine of MBIA

FALL FOR MBIA

W

here did the summer go? What seemed to have taken so long to get here, is over in the blink of an eye. What a strange summer indeed, with enough rain to make us begin to wonder if we would ever have a week that didn’t involve some amount of precipitation. Unfortunately, all that rain never seemed to have the positive effect of cooling us off for very long. At least there were enough stretches of our classic sweltering summer heat that paid nice dividends if we were lucky enough to get down to the ocean. Alas, with the kids back in school and the toys of summer put away until next year, our thoughts once again turn toward getting back down to business. This Fall marks a very special milestone for MBIA. On September 1, we officially acknowledged the anniversary of the merger that created our combined association. It is hard to believe that time has passed so quickly as we prepare to embark on our second year. As any successful organization is only as good as its people, we are truly blessed with the leadership and experience that Lori Graf has provided us since taking over as the Executive Officer. Lori has built a great team and has great insight and vision towards building MBIA into the voice of our industry in Maryland. Congratulations to Lori, and Happy Birthday, MBIA! Of course, in addition to having great leadership at MBIA, the association also needs active participation by its members to truly be successful. Fall is a great time to re-establish your connection with MBIA, and our hard working association staff has spent their summer planning for some fabulous upcoming events. So as you get back down to work, remember to include MBIA in planning your Fall agenda. Of course, just because Labor Day has passed us by doesn’t mean there aren’t plenty of warm weather activities to take advantage of. Maybe you joined us in June for the PROs Awards or in July for the annual MBIA Night at Camden Yards where we saw the Orioles defeat the Nationals (however, I do have to mention that the Nats took the series 2-1!). As a follow on, why not head down to Washington, DC, on September 21 for a reprisal of the night as MBIA once again hosts the Orioles-Nationals rivalry, this time at Nat’s Park. If baseball isn’t your thing, perhaps you would prefer to enjoy a friendly rivalry indoors, as the builders compete for honors and awards at the Great American Living Awards (GALA), to be held on October 8th at the McLean, VA, Hilton. Here you will mingle with the best and brightest talent in our industry, see the latest design trends and come away with great marketing ideas. This is a “see and be seen” event that has always been a must attend for anyone looking to make industry connections. Even beyond these major events I have mentioned there is always something happening in and around MBIA. I was amazed to discover that MBIA hosts more than 90 member events per year! Go online to www.marylandbuilders.org to check the complete activity schedule so you can plan your next MBIA outing.

TOM BAUM President, MBIA

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September/October 15

2015 MBIA LEADERSHIP EXECUTIVE COMMITTEE President, Tom Baum 1st Vice President, David Lunden Vice President/Advocacy, Baltimore Mkt., Steve Smith Vice President /Advocacy, Washington Mkt., Hillary Colt Vice President /Advocacy, Eastern Shore Mkt., Jeff Caruso Vice President /Advocacy, Maryland State Mkt., Steve Breeden Vice President /Associates, Lynn Elahi Treasurer, Kim Palmisano Secretary, Tom Hudson Life Director, Rich Thometz Legal Counsel, Jack Orrick Immediate Past Co-President, Russ Dickens Immediate Past Co-President, Clark Wagner

CHAPTER PRESIDENTS Advocacy/Anne Arundel County, Jim Krapf Advocacy/Baltimore City, Brooke Kaine Advocacy/Baltimore County, David Murphy Advocacy/Carroll County, Jim Mathias Advocacy/Charles County, Doug Meeker Advocacy/Eastern Shore, Bob Purcell Advocacy/Howard County, Jamie Fraser Advocacy/Montgomery County, Raquel Montenegro Advocacy/Prince George’s County, Ken Dunn Advocacy/Southern Maryland, Tom Thomas Advocacy/Upper Chesapeake, Michael Charlton Advocacy/Washington DC, Stephen Alfandre

COUNCIL CHAIRS Builder Mart, Tim Nichols Custom Builders Council, Larry Cafritz Green Building Council, Karen Benner Land Development Council, Sandy Marenberg Multifamily Housing Council, Tom Marshall Professional Women in Building Council, Peggy White Remodelers Council, Joe Smith Sales & Marketing Council, Yvonne Deardorff

MEMBERS AT LARGE Brian Afnan Tim Ellis Howard Katz Mark MacFarland Michael McCann Timothy Morris

Tim Nichols Cindy Plackmeyer Dusty Rood Michael Schueler Robert Spalding

SUBSIDIARIES Builders Development Guaranty Group/President Scott Nicholson Home Builders Care Foundation/President Liza Bowles PUBLISHER Lori Graf, CEO lgraf@marylandbuilders.org EDITOR Kelly H. Grudziecki Director, Internal Communications kgrudziecki@ marylandbuilders.org

ADVERTISING Chris Baughan Sales Manager cbaughan@marylandbuilders.org DESIGN The YGS Group Art Director, Megan Meckley Graphic Designer, Zon Buckley Account Manager, Kali Eskew

Maryland Building Industry Association 11825 W. Market Place Fulton, MD 20759 Ph: 301-776-MBIA www.marylandbuilders.org Info@marylandbuilders.org

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Bright future: Brookfield Residential goes solar in Maryland. When the Brookfield Residential team was looking at Maryland’s homebuilding market, they wanted something that could make their new community in Anne Arundel County stand out. “We were trying to think different,” said Gregg Hughes, the Vice President of Sales and Marketing for Brookfield Residential’s Washington D.C. Division. “Many of our competitors were selling really nice homes with great designs, but we wanted something that would be a real benefit to potential buyers—and we found SolarCity.” Brookfield Residential teamed up with SolarCity earlier this year to offer 119 solar townhomes in the new Oakview Village community in Glen Burnie. The three-level townhomes will produce their own clean energy, and owners will benefit from steady solar electricity rates for the next 20 years to protect them from rising utility power rates. The solar system is installed, monitored, insured and maintained by SolarCity as well, so Brookfield Residential and their homeowners have the reassurance that in the rare case that issues arise, SolarCity will handle everything.

“Solar will help us sell more homes, it’s absolutely a value. It’s a good way for our buyers to have energy savings that are real—something they can see from day one—and it’s really cutting edge.” “Solar will help us sell more homes, it’s absolutely a value,” said Hughes. “It’s a good way for our buyers to have energy savings that are real—something they can see from day one—and it’s really cutting-edge. When you can explain the benefits of solar to a buyer, it’s a win-win.” SolarCity has also worked with Brookfield Residential’s D.C. Division on the PureBlue Concept Home—a model home dedicated to showcasing superior energy-efficient designs to help save homeowners money—at the Avendale community in Prince William County, Virginia. “There is huge support for solar and other alternative energy sources. The next steps are offering things like home energy storage and maybe even getting people off the grid. It’s a

big positive and we’re looking to be out in front of a growing trend. In other parts of the country, solar is far more mainstream. Here in the Mid-Atlantic, it’s still relatively new and we’re excited about that,” said Hughes. “We’re expecting solar to be a big success [at Oakview Village] and will hopefully continue spreading across the nation. We’re early in the game but our buyers are definitely excited. Most important to us is that we do what we think is best for our homeowners,” said Hughes. “We truly believe solar is a good alternative for homeowners that helps them save money and the environment.”

For new homebuilders. The SolarCity Homebuilder Program gives builders and developers the opportunity to upgrade homes with solar power systems that can help meet 2015 energy code updates, without adding to the home’s purchase price. Even more, solar systems may help builders and developers sell homes faster thanks to the growing demand for sustainable offerings.

Visit www.solarcity.com/homebuilder to learn more.

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CEO MESSAGE

MBIA CELEBRATES A MILESTONE

P e

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t’s hard to believe that a year has passed since the Maryland-National Capital Building Industry Association and the Home Builders Association of Maryland merged to create the Maryland Building Industry Association (MBIA). It feels like yesterday, yet a lot has been accomplished this past year. We settled into our new headquarters in Fulton, MD (The Maryland Center for Housing), our staff has been integrated and our financial systems were consolidated. This past year our staff also managed a very full event roster and expanded our county chapters. In addition, we rolled out a new more powerful membership database and website. Please check out marylandbuilders.org where you will find loads of information about MBIA including our event’s calendar, the membership directory, information on joining a council, ways you can help support our advocacy team and other useful resources like our Legislative & Regulatory Report and our official magazine, BUILD Maryland.

As MBIA forges ahead into its’ second year, we are now focusing on the value proposition for our members. As MBIA forges ahead into its’ second year, we are now focusing on the value proposition for our members. Throughout the summer, we surveyed our members to find out what is working and what areas need improvement. We then compiled those results into a “One Year Merge Report.” I am excited to announce an overall satisfaction with the merge itself and with the goals we set out to accomplish in our first year. As expected, there are some areas that need work, but the overwhelming positive response we received shows we are heading in the right direction. One area we will continue to evaluate and improve upon is ensuring that we cover the vast geography of the MBIA. Our territory extends to 19 counties plus Baltimore City and Washington, DC. This is a lot of terrain to navigate but we are working to make sure we cover all of the local geography, by holding events in various counties as well monitoring industry related issues in those counties, as well as at the state and federal levels. I encourage you to take a look at the Merge Report, which can be found on our website under “Your MBIA.” I also want to hear from our members directly with your thoughts on the merge. Fee free to email me at lori@marylandbuilders.org or call me at 301-776-6204. Here’s to year one and an even more successful year two. Together we can grow the MBIA into the best homebuilding association in the State.

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LEGAL BRIEF

2014 HBAM LEADERSHIP EXECUTIVE COMMITTEE Russell Dickens President

Tom Baum

THE MANY LAYERS OF THE ENTITLEMENT PROCESS PATRICK MARTYN, ROSENBERG MARTIN GREENBERG, LLP

The entitlement process in Maryland can be a complicated labyrinth in which one can easily get lost in the maze of approvals required before the first shovel can touch the ground. In addition to a keen understanding of the multiple approvals required for subdivision and zoning entitlements in each jurisdiction, one needs to know all of the necessary players involved. Even for the veteran homebuilder and developer, navigating the subdivision and zoning entitlement process can be like peeling layer after layer of a very large onion. As a result, at a minimum, developers and homebuilders desire a level of certainty with respect to the authority of the various agencies charged with issuing the entitlement approvals. The Maryland Court of Appeals heard oral arguments earlier this year in a case which illustrates how local jurisdictions can attempt to introduce additional layers of approvals and uncertainty to the already complex entitlement process. The case in question is an appeal of the decision of the Court of Special Appeals of Maryland in Cnty. Council of Prince George’s Cnty. v. Zimmer Development Company, 217 Md.App. 310, 92A.3rd 601 (2014). In Zimmer, the Appellee, a national real estate developer, was planning to develop a 4.14 acre parcel in Prince George’s County as a retail center. As part of its approvals, Zimmer obtained the approval by the Prince George’s County Planning Board of the Maryland-National Capital Park and Planning Commission (the Planning Board) of the Comprehensive Design Plan (CDP) and Specific Design Plan (SDP) for its intended retail center. Following these approvals by the Planning Board, however, the County Council of Prince George’s County, sitting as the District Council (the District Council) elected to “call-up” the decision of the Planning Board for review by the District

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Council. Following its review, the District Council remanded the case to the Planning Board to “reconsider its decision in light of ” three specific issues. The Planning Board subsequently reconsidered the remanded issues and reinstated its earlier approvals, following which the District Council again elected to “call-up” the case and again reversed the decision of the Planning Board thereby revoking the prior approvals of the CDP and SDP. In its decision the District Council set forth fourteen grounds as the basis of its decision. Upon petition by Zimmer, the Circuit Court for Prince George’s County reversed the District Council’s decision, whereupon the District Council appealed to the Court of Special Appeals. The Court of Special Appeals affirmed the decision of the Circuit Court, thereby reversing the District Council’s decision and reinstating the Planning Board’s approval. In its decision, the Court noted that the Maryland Regional District Act (RDA) provided Prince George’s County with authority to create the Planning Board and specifically provided that the Planning Board “is responsible for planning, subdivision, and zoning functions that are primarily local in scope.” As a result, the Court reasoned, the Planning Board is charged with engaging in fact-finding. Under the Prince George’s County Code, the District Council is authorized to affirm, reverse or modify the Planning Board’s decision or send the case back to the Planning Board for additional testimony. Accordingly, the

President Elect

Steve Breeden First Vice President

Lisa Junker Associate Vice President

Steve Smith Secretary

Kimberly Palmisano

Court Treasurer held that the District Council was vested with appellate (and not de novo) Scott Armiger jurisdiction only, with its authority to Immediate Past President review Planning Board decisions limited to CHAPTER PRESIDENTS determining whether the Planning Board’s Jim Krapf Anne Arundel County decision was “arbitrary, capricious, discrimMathias Carroll County inatory,James or illegal.” David Murphy Baltimore County Although the District Council did not Russ Robertson Baltimore City rely on it in its arguments to the Court, the James Fraser Howard County Court Dan notedWhitehurst that the District Council, in Upper Chesapeake response to a prior Court decision, previously amended thePRESIDENTS County Code (PGCC COUNCIL Marenberg SectionSandy 27-132(f)) to provide that “in Land Development CouncilCoundeciding an appeal to the District cil,…the District Council shall exercise Bruce Rosenblatt originalSales jurisdiction.” This ordinance, and Marketing Council on its face, gives the District Council de novo Tim Ellis jurisdiction which would undermine the HBAM Remodelers authority of the Planning Board in issuing approvals. The Court reasoned that such Thom Marston an interpretation is internally inconsistent Maryland Residential with other relevant provisions Green Building Councilof the County Code and the RDA. Therefore, the Court Timthe Nichols held that District Council is vested with Builder Mart Chair appellate jurisdiction only, limiting the District Council to a determination of whether the Planning Board’s decision was “arbitrary, capricious, discriminatory, or illegal.” The decision of the Court was a welcome limitation on the ability of local jurisdictions to impose additional, unanticipated levels of review of entitlement approvals. Now the decision of the Court of Appeals awaits… Patrick Martyn practices real estate law with Rosenberg Martin Greenberg, LLP. His practice focuses on residential homebuilding and land development transactions, commercial real estate transactions, leasing and title-related issues. He can be reached at (410) 727-6600 or at pmartyn@rosenbergmartin.com.

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marylandbuilders.org BUILD MARYLAND SEPTEMBER/OCTOBER 2014 MID-ATLANTIC BUILDER

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ENGINEER’S TOOLBOX

SOIL RESTORATION OF NEW RESIDENTIAL LAWN AREAS: A HOUSE DIVIDED MARK CARROLL, PH.D., UNIVERSITY OF MARYLAND

Recent emphasis on the use of stormwater management practices that incrementally reduce runoff has emphasized the need to retain previous areas in new developments and to restore the hydrologic function of the soil in these areas when it is compromised by construction activity. Soil compaction, while necessary to stabilize the foundation of new homes, dramatically reduces soil infiltration and impedes the growth of plants. Compacted soil frequently results in poorly established lawns, which increases the potential for runoff and may drive some new homeowners to use more lawn fertilizer than homeowners residing in older, more mature developments. Soil restoration is a technique that can be used to alleviate soil compaction and improve the nutrient retention capacity of soil. The two primary practices associated with soil restoration are tillage and the addition of organic amendments such as compost. The type of tillage that needs to be performed and amount of compost that needs to be added to restore the hydrologic function of soil are dependent on soil type, the depth of soil compaction and the intended stormwater application of area in question. If the area will not receive runoff from adjacent impervious areas and compaction is limited to the top few inches of surface it can be alleviated by simply rototilling the soil. A simple rule of thumb when using compost to improve the infiltration properties of soil high in silt and clay is to add compost at a ratio of two parts soil to one part compost. Since most rototillers only mix soil down to depth of six inches, this means a general purpose lawn area having compacted soil should be amended with about two inches compost prior to turf establishment. When compaction extends to the subsoil a multi-shank ripper is used in combination with rototilling to loosen soil and incorporate compost.

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The ripper breaks up the subsoil or pan layer residing below the operational depth of the rototiller while the rototiller incorporates the compost into the topsoil. A third implement such as a deep angled subsoiler is sometimes used after ripping to break up the top soil and upper portion of the subsoil without inverting the two. Use of a multi-shank ripper and subsoiler are rare in residential lots because of the limited maneuverability of the large tractors that are needed to draw these implements through the soil and the presence of buried utility lines on the lot. Smaller more maneuverable tractors can be used to pull single shank rippers through areas of the landscape where the need for restoration of hydraulic function of soil is high. Lawn areas that serve as a filter strip and rooftop disconnection paths are two examples of such areas. When high volume additions of compost are made to alleviate soil compaction the amount of nutrients added to soil can be substantial. For example, incorporating two inches of a widely available municipal compost created from yard trimmings will add about 60 pounds of nitrogen (N) and 15 pounds of fertilizer grade phosphorus (P) per 1000 ft2 of treated area. The addition

of this amount of N and P will reduce or eliminate the need for lawn fertilizer for several years but has raised concerns about the loss of these two nutrients in stormwater runoff. Studies that have utilized relatively small field plots have reported that the reduction in runoff resulting from the addition of high volume amounts of compost is large enough to result in reduced N and P losses from lawns when compared to lawns established in a non-composted amended soil. With impervious surfaces often contributing flow to lawn areas, the dynamics of runoff from residential lots can be very different small research plots. With this in mind we conducted a project within a new residential development in Clarksville, MD, to compare N and P runoff losses from lots amended with a high volume compost prior to turfgrass establishment with lots that did not receive this treatment. The project was funded by the National Fish and Wildlife Foundation. The Preserve at Clarksville is a near symmetric development consisting of an east and west side where runoff from the backyards on each side of the development is directed to a swale located just beyond the back property line of each lot. The swale behind the lots on the east side of the development has a configuration of drains that allowed us to isolate and collect runoff from two adjacent lots on this side of the development. The new homeowners on this side of the development permitted us to amend the top 5.5 inches soil in their backyards with 1.9 inches compost after which the yards were

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Amending one acre of soil with 1.9 inches of compost requires 256 cubic yards of material.

seeded with a tall fescue/microclover seed mixture. Microclover is a small leaf clover that adds N to the soil and was included in the seed mixture to reduce the long term fertilizer needs of the lawn. The two homeowners agreed not to fertilize or apply herbicides to their lawns for the duration of the project. The swale on the west side of the development received runoff from seven lots. Six of the lots had previously established lawns on them at the beginning of project. A house was built on the seventh lot during the project with the lawn on this lot being established about a year after monitoring of runoff within the development began. We had no input on how homeowners maintained their lawns on this side of development, but did send them a survey at the end of each year of study asking if and when they fertilized their lawns. Three to four homeowners completed the survey each year with two indicating the lawn was fertilized at least twice each year. Technical difficulties encountered in the first year of study resulted in little useable N and P data being collected during this time. In the latter half of the monitoring period there was no difference in area adjusted N and P load losses from two sides of the development, although there was a consistent trend of higher P load losses being observed from the compost and microclover treated side of the development. The opposite trend existed in the N data with lower area adjusted N

A never-fertilized 3-year old lawn established after amending soil with 1.9� of yard-trimming compost.

load losses being seen from the compost and microclover treated side of the development for the last six storm events of the project where the concentration of N and P in runoff was measured. Due to a recent interpretation of the Maryland Lawn Fertilizer Act of 2011 by the Maryland Department of Agriculture, compost is now treated as a fertilizer source. The 2011 law caps the amount of slowly available fertilizer N that can be added on a single date to 2.5 lbs. of N per 1000 ft2. This means that when conventional tillage practices are used to alleviate surface compaction no more than about 1/8 of inch of compost can be incorporated into the soil in areas where lawns are to be established. This is not enough compost to improve infiltration properties of most soils. If ripping or other deep tillage practices are employed to breakup compacted subsoil it is permissible to incorporate high volume amounts of compost into the soil of areas where lawns will be established. Soil restoration of lawn areas using compost and conventional tillage practices is a recognized stormwater best management practice in the states of Pennsylvania and Virginia with the latter state providing explicit reductions in the calculation of total volume of runoff from a site with its use. Thus, there is a potential economic incentive for builders in Virginia to use this practice when it provides a lower cost alternative to

reducing stormwater runoff than other approved practices that can used to accomplish this goal. In contrast, the recent interpretation of the Maryland Lawn Fertilizer Use Act will effectively preempt the practice of rototilling soil to depth of four to six inches and amending it with compost to improve infiltration properties of lawn areas in Maryland. This includes lawn areas that serve as disconnection paths unless deep tillage practices are used to incorporate the compost. Other low nutrient containing organic matter materials could be used in place of compost, however, materials like sphagnum peat moss are difficult to work with and may actually increase the need for fertilizer when incorporated into the soil. The slow release N properties of yard trimmings compost that was utilized in this project produced a lawn with excellent color and density. Lawns possessing high shoot densities are not only attractive but also reduce runoff. With restrictions on the use of compost now in place in Maryland, landscape contractors will now need to go deep with compost incorporation in order to continuing using it as soil restoration material in lawns areas. Mark Carroll is an Associate Professor of Turfgrass Science with the Department of Plant Science and Landscape Architecture at the University of Maryland. He can be reached at 301-405-1339 or mcarroll@umd.edu.

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THE

250

th

ANNIVERSARY OF THE

MASON AND DIXON SURVEY The Most Outstanding Engineering and Scientific Achievement of the Age BY DAVID S. THALER, PE, LS, F., NSPE, F., ASCE, D.S. THALER & ASSOCIATES, INC.

A

little over 250 years ago, two English surveyors arrived in America to help settle a long-raging boundary dispute between the colonial proprietors of Maryland and Pennsylvania. Charles Mason and Jeremiah Dixon’s epic five-year effort was the first geodetic survey in the New World and would turn out to be the greatest scientific and engineering ach ievement of the age. Their story begins with Sir George Calvert, who was the secretary of state to King James I of England. For his loyal service to the crown, he was given the title of Lord Baltimore and granted land in the Americas, which he named Maryland in honor of Queen Henrietta Maria. The royal charter granted Lord Baltimore all the territory from the Atlantic Ocean “unto the true meridian of the first fountain of the River Potowmack” and from the south bank of the Potomac River to include all land “which lieth under the Fortieth Degree of North Latitude.”

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The other players in this drama were the Penn family. Sir William Penn had been a distinguished admiral in the Royal Navy who had loaned the profligate King Charles II the then stupendous sum of 16,000 pounds sterling. In exchange for discharging the debt, his son, also William, was granted the province of Pennsylvania. Penn’s charter granted the land from the 42nd parallel of latitude down to the 40th, excluding a 12-mile circle around the town of New Castle in what is now Delaware. So Calvert, the proprietor of Maryland, was granted from the Potomac up to the 40th parallel and Penn, the proprietor of Pennsylvania, received from the 42nd down to the 40th parallel to where it intersected a circle, 12 miles from New Castle. But the question was, where was the 40th parallel? Unfortunately for the proprietors, the maps at the time were based on the exploration of the Chesapeake region by Captain John Smith in 1608, and the Smith map showed the 40th parallel too far south. In fact, the 40th parallel of north latitude does

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not intersect a 12-mile circle around New Castle but lies much farther north. It was this discrepancy that set off the granddaddy of all boundary disputes, which raged for more than 80 years. The dispute was so bitter because the stakes were high. There were about 4,000 square miles of territory in question, and Philadelphia, which had been settled at the limits of navigability of the Delaware River, lay about five miles south of the actual 40th parallel. Depending on the location of its border, Pennsylvania could have lost both Philadelphia and its critical access to the sea and ability to resupply. Finally pressed by the King in Council, in 1732 the parties entered into an agreement. They decided that the boundary should run 15 miles south of Philadelphia (the East-West line), west from Cape Henlopen on Fenwick Island to the midpoint of the Delmarva peninsula (the transpeninsular line), and then north to intersect a tangent with the 12-mile arc around New Castle (the tangent line). This was not a good deal for the Calverts, as it placed the boundary about 19 miles south of the true 40th parallel. The controversy raged on. The parties could not come to a resolution, and finally in 1735 the Penns filed a complaint in the English courts that became known as the Great Chancery suit. The case was litigated over 15 years at enormous expense, until in 1750 a decision was rendered. The southern boundary of the lower three counties of Pennsylvania (now Delaware) would be at the latitude of Cape Henlopen, and the peninsula would be divided equally. The center of the 12-mile circle would be measured as a radius from the center of New Castle (which was agreed to be the dome of the courthouse), and the east-west line would run at a constant parallel of latitude, 15 miles south of the southernmost point of Philadelphia. The proprietors engaged local surveyors who started with the transpeninsular line in April 1751. They began on Fenwick Island and ran their line across the peninsula from the “verge” of the Atlantic Ocean to the Chesapeake Bay. Although swamps and dense vegetation made work on the line difficult, the colonial surveyors were able to find and mark the midpoint of the peninsula, which became the southwestern corner of what is now Delaware. The colonial surveyors next tackled the task of running the tangent line, which ran from the midpoint of the peninsula to the point of tangency with the 12-mile circle around New Castle. This was a lot harder than it looked on paper given that the line was more than 80 miles long, the terrain difficult, and the equipment poor. The geometry of the corner was also very complex. An 83-mile-long line would have to be run to just graze the 12-mile circle at a perfect 90 degrees. This would then have to be run north to intersect another line exactly 15 miles south of Pennsylvania.

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The author at Independence Hall with America’s most historic scientific and advanced instrument of its day. Made by John Bird, the most famous instrument maker of the 18th century, the zenith sector was used by Mason and Dixon to determine latitude for their iconic survey.

The colonial surveyors ran their line from the midpoint of the peninsula due north until it was within the 12-mile radius. Then they measured from the dome of the courthouse, but their first attempt was a half mile too far east. Two other attempts were too far west. As the task seemed beyond the capability of the local surveyors, the Penns and the Calverts consulted the Astronomer Royal, who recommended Charles Mason and Jeremiah Dixon. Dixon was an experienced surveyor from County Durham, England, and Mason had been an assistant at the Royal Observatory in Greenwich. Mason and Dixon entered into a contract with the proprietors and arrived in Philadelphia on November 15, 1763 to begin work.

The location of the observatory used by mason and Dixon at the Harland House in what is now Embreeville, PA was discovered in 2013 by surveyor Todd Babcock. A spike now marks the location.

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The men began their historic task at the southernmost point of Philadelphia, the north wall of a house on Cedar Street (now under the bed of I-95). From complex astronomical observations, Mason and Dixon determined their latitude to be 39°56′ 29.1″ N. This became the reference for the east-west line, which would become the Maryland-Pennsylvania border, and was 15 miles due south from their starting point. Because going the required 15 miles due south to start the east-west line would have taken them across the Delaware River and through the Province of New Jersey, the surveyors decided to proceed west 31 miles, to the farm of John Harland in what is now Embreeville, PA, or as they put it, in the “forks of the Brandywine.” In the spring of 1764, they then set off exactly 15 miles due south to a point where they set an oak post, which they called the “Post Mark’d West in Mr. Bryan’s field” near what is now Newark, DE. This was to become the starting point of the famous West line and the reference point for the rest of the survey. As it was used as a base for the calculations that followed and is mentioned almost daily in their journal, it is the most significant point in the survey. After setting the Post Mark’d West, Mason and Dixon then headed south to the middle point of the peninsula that had been previously marked by the colonial surveyors. Following a convenient star, they ran a dead straight line 83 miles from the mid-point, a feat that had never been accomplished before. By measuring their error at the end and proportioning it back along the length of the line, they were able to set the tangent line. They measured the angle at the tangent with their Hadley Quadrant, (an octant used in celestial navigation that can measure angles up to 90 degrees) and the angle measured a perfect 90 degrees. Mason and Dixon had successfully solved the problem that had eluded the colonial surveyors. In March 1765, a year and a half after their arrival, they returned to the Post Mark’d West to begin the monumental task of running the West line. Off they went, hacking their way through the primal forests of western Maryland. As they went, Mason and Dixon set boundary stones. Mile stones were marked “M” on the Maryland side and “P” on the Pennsylvania side, and they set “crown stones” every five miles with the coat of arms of the Calverts on one side and the seal of the Penns on the other.

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David Thaler with a Crown stone in Baltimore County.

By October 1765, after nine months of work on the west line, they had proceeded 117 miles 12 chains and 97 links from the Post Mark’d West. (Like other surveyors of their day, Mason and Dixon measured with a 66-foot long chain that was divided into 100 links.) They stored their instruments, returned back east to the Harland Farm where they spent the winter, and then resumed in the spring. On June 18, 1766, Mason and Dixon reached the Allegheny Mountains, which was the frontier—the western limit of

English sovereignty and the beginning of Indian control. Negotiations with the Indians proceeded slowly, but finally, greased by a payment of 500 pounds sterling, a treaty was signed and permission was secured to proceed beyond the Alleghenies. In July 1767, the Indians dispatched three Onondagas, eleven Mohawks, and an interpreter to guide the survey party, which had now grown to 115 men. Early in October, the party crossed Dunkard Creek, where they encountered the Great Warrior Trail. This was one of the most important Indian trails in the country, running from New York to South Carolina. The Indians’ chief informed the surveyors that the trail “was the extent of [his] commission from the Chiefs of the Six Nations and that he would not proceed one step further westward.” Mason and Dixon extended their line an additional 250 feet to the top of the next ridge, Brown’s Hill. After the surveyors set up a tall post and a conical mound at 233 miles 17 chains and 48 links from the Post Mark’d West in Mr. Bryan’s field, the Mason-Dixon line came to an end. Having finished their work, Mason and Dixon returned to Philadelphia, where they drew a map of their survey. Two hundred copies were printed. It is believed three were signed by the 12 Boundary Commissioners. Two are at the Maryland Historical Society. The magnitude of Mason and Dixon’s accomplishment is almost impossible to imagine. Today, we use GPS to calculate

Mason and Dixon’s original survey journal.

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Courtesy of the Maryland Historical Society, Item ID# MS174.1051

The actual map of the Mason Dixon survey printed in Philadelphia in 1768 signed and sealed by the 12 Boundary Commissioners, six each from Maryland and Pennsylvania.

latitude in minutes. It took Mason and Dixon two weeks of celestial observation and complex hand calculations to accomplish the same task. Long before chain saws were invented, they used hand axes to clear a “vista” 16 feet or so wide and more than 330 miles long. Their line has been resurveyed many times, and the accuracy that they achieved, given the technology of their day, still continues to astound. In 1820, Congress adopted the Missouri Compromise and first used the term “Mason-Dixon line” to describe the Maryland-Pennsylvania border. States north of the Mason-Dixon Line were to be free, and those south, slave states. And so in addition to being the first geodetic survey in the New World and one of the greatest scientific and engineering achievements of all time, the Mason-Dixon line became an icon—the dividing line between slavery and freedom.

The 250th Anniversary of Mason and Dixon’s visit to Baltimore County will be celebrated with an international symposium culminating in an event at the Maryland Historical Society on October 8, 2015, when County Executive Kevin Kamenetz will unveil the newly restored instrument actually used by Mason and Dixon in their epic survey. For more information go to www.mdpels.com.

David S. Thaler, PE, LS, F., ASCE, F., NSPE is the President of D.S. Thaler & Associates, Inc., a civil and environmental engineering firm in Baltimore, Maryland, which has designed hundreds of communities. Repeatedly honored, he is a Fellow of both the American Society of Civil Engineers and the National Society of Professional Engineers, and is Guest Scholar at the University of Baltimore School of Law, where he lectures on land use. He has published more than 200 articles and five books, and has won numerous life time achievement awards. He also holds both the highest professional engineering award in Maryland, now known as the Thaler Prize, and the Maryland Distinguished Service Cross, Maryland’s highest military honor.

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THE

2015

PROS AWARDS Honoring the Best from Permits to Purchasing

More than 300 people, representing companies from Maryland, Virginia and Washington, DC, made their way to Nixon’s Farm for the 15th annual PROS Awards to honor the men and women who excel at their craft and set the standard for excellence in the building/remodeling industry. The awards are sponsored by the Maryland Building Industry Association and the Northern Virginia Building Industry Association, who, for the past 15 years have recognized and honored the best “workers in the field” who develop the land, construct the houses and work with the customer to produce award-winning homes. Nominees for the PROS Awards were submitted by their employers and interviewed by a diverse teams of judges who contributed many long hours to the adjudicating process. Following tradition, the PROS awards was once again held at an outdoor venue. New this year however, was the location. We took the party to Howard County, taking over 40 acres of woodlands known as Nixon’s Farm. If the spectacular views and relaxing setting weren’t enough, there were plenty of games to keep the crowd occupied, including horseshoes, ladderball, Bocce ball and a very competitive cornhole tournament (thanks to our Presenting Sponsor Noel’s Fire Protection). A deejay kept the tunes coming all afternoon.

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When the dinner bell rang people were not disappointed. The menu included BBQ and fried chicken, chili, hotdogs, baked beans, sauerkraut and other tasty sides. Nixon’s Farm has been family owned and operated for more than 50 years, so they know how to make great fried chicken! For dessert there was watermelon and homemade cookies and brownies. And thanks to Presenting Sponsor Builders First Source, the beer was always cold and on tap. When it was time for the awards presentation, MBIA President, Tom Baum handed out 45 awards to very happy winners. Of course, Steve Shapiro of Commercial Image Photography was there to record the event from start to finish. You can find a link to those photos on the Photo Gallery page of MBIA’s website. The PROS couldn’t happen without the hard work of the PROS committee, led this year by Chair Howard Katz of Michael Harris Homes and Vice Chair, Keith Scott of T.A.C. Ceramic Tile along with their team of Mike Anderson, Miller and Smith Homes, Andrew Bolton, Bozzuto Homes, Karen Brenner, EYA, Dave Edwards, Dan Ryan Builders, Lynn Elahi, Washington Gas, Greg Horner, GE Appliances, Michael Kaperst, Sterling Mirror & Glass, George Korzeniewski, DR Horton, Chris Rachuba, The Rachuba Group and Michael Schueler, Winchester Homes.

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The PROS Awards recognize those men and women in the field who develop the land, construct the houses and work with the customer.

And of course the PROS relies very much on the generous support of our sponsors and donors.

Many thanks to… PRESENTING Buhl Electric Builders First Source HD Supply Noel’s Fire Protection GOLD Annandale Millwork Corp. Bozzuto Homes M&R Floors Purofirst of Metro Washington Roof Center Sterling Mirror & Glass

SILVER 84 Lumber Advanced Flooring Design Armstrong World Industries Dal-Tile Dan Ryan Builders DR Horton Eastern Applicators Emser Tile Fireside Hearth & Home Fred Frederick Chrysler GE Appliances Homestead Building Systems Michael Harris Development Miller & Smith Neka RoofTop HoT Shelter Systems T.A.C. Ceramic Tile

SUPPORTING BB&T Charles P. Johnson Assoc. Lennox Industries Schlage Lock Co. Sherwin Williams Southern MD HVAC Tull, Inc. Vintage Security Washington Gas Williamsburg Homes FRIEND Gutschick, Little & Weber Kwikset Simpson Stong-Tie United National Construction Universal Forest Products

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­ ongratulations to the following individuals C who achieved the PROs Award for 2015.

OFFICE PROFESSIONAL Accounts Payable Rachelle Crawford, Van Metre Homes Construction Coordinator Christi Eide, Bozzuto Homes Permits/Construction Manager Denise Kilby, Van Metre Homes Settlement Coordinator Michele Weisbratten, Van Metre Homes Settlement Coordinator Susan Silvera, Bozzuto Homes Human Resources Lori Heiliger, DR Horton PURCHASING AGENTS Best Purchasing Agent 21-100 Units Kim Witcher, Michael Harris Homes Purchasing Agent 101-300 Units Greg Trapani, Dan Ryan Builders

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CUSTOMER SERVICE REPRESENTATIVE Customer Service Rep Office 21-40 Units MF Megan Wickes, Van Metre Homes Customer Service Rep Office 41-60 Units MF Karrie Dean, Van Metre Homes Customer Service Rep Office 61-120 Units MF Shelly Buttery, Van Metre Homes Customer Service Rep Office 121+ Units TH Ellareese Burke, Bozzuto Homes Customer Service Manager 121+ Units TH Kevin Rabil, Van Metre Homes FIELD TECHNICIAN Field Technician 6-20 Units TH Bryan Kinsey, Van Metre Homes Field Technician 6-20 Units SFH Robbie Franks, Van Metre Homes Field Technician 21-40 Units TH Dale Roininen, Van Metre Homes Field Technician 21-40 Units SFH Donnie Pearson, Van Metre Homes Field Technician 41-60 Units SFH Rogelio Garcia, Van Metre Homes Field Technician 61-120 Units TH Orlando Luna, Bozzuto Homes Field Technician 61-120 Units SFH Antonio Baires, Van Metre Homes Field Technician 121+ Units TH Dion Anthony, Bozzuto Homes Field Technician 121+ Units MF Lowell Fitzgerald, Van Metre Homes Field Technician 121+ Units SFH John Gallorini, DR Horton

LAND DEVELOPMENT Land Development Supt. 1-20 Units Bridget Passarelli, Van Metre Homes Land Development Supt. 21-100 Units Michael Novick, DR Horton Land Development Supt. 101-300 Units Jessica Mata, Van Metre Homes Land Development Supt. Over 300 Units Gene Bollinger, Elm Street Development, Inc. PROJECT MANAGER Project Manager 1-5 Units TH Alex Gisselbeck, Mid-Atlantic Builders, Inc. Project Manager 1-5 Units SHF Mark Colza, Bowa Project Manager 6-20 Units TH Trevor Webb, Mid-Atlantic Builders, Inc. Project Manager 6-20 Units SFH Ed Anderson, Mid-Atlantic Builders, Inc. Project Manager 21-40 Units TH Beau Christie, DR Horton Project Manager 21-40 Units SFH James Mulligan, Van Metre Homes Project Manager 41-60 Units TH Jeff Cellio, Bozzuto Homes Project Manager 41-60 Units SFH Richard Cambrel, DR Horton Project Manager 61 – 120 Units TH William Herrera, Dan Ryan Builders Project Manager 61-120 Units MF Dave Roesler, Beazer Homes Project Manager 61-120 Units SFH Vance Cave, Van Metre Homes Project Manager 121+ Units TH Victor Luis, Van Metre Homes Project Manager 121+ Units MF David Barnhart, Van Metre Homes

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PRODUCTION MANAGER Production Manager 6-20 Units SFH Tim Ganske, Mid-Atlantic Builders, Inc. Production Manager 61-120 Units SFH Robert Beegle, DR Horton Production Manager 121+ Units MF Bev Knight, Van Metre Homes Production Manager Over 121 Units SFH Jon Grossnickle, Van Metre Homes Production Manager Over 121 Units SFH Lou Parker, Beazer Homes

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MBIA’s Golf Tournament-Over the Bunkers and Through the Woods Turf Valley Resort played host to MBIA’s 2015 Golf Tournament, giving more than 100 golfers the chance to play on a championship course in the rolling hills of Howard County. Besides swinging their way through the woods and over the hills, players also participated in a little more friendly competition at the putting contest. Congrats to our winner Andrew Carbone of Three Brothers Land! On the course, there were also the hole-in-one and the closest to the pin contests. As hard as they tried, no player made a hole in one, but the proud winner of the closest to the pin contest was Tim Grahl of Solar City. The tournament wrapped up around 2:00pm when players were greeted to a BBQ buffet and the chance to relax and compare scores. Prizes were awarded to the top scoring teams and players with the best shots. Taking first place in the tournament with a score of 59 was the Mid-Atlantic Builder’s team of Roger Lebbin, Michael Rubinfeld, Bob Hurst and Joe Zdrojewski. A big thank you to the Golf Chairman, Mel Willis, Kim Engineering for helping to organize such a great event. The event would not be successful without our loyal sponsors. Your continued support makes this a truly great affair. MBIA gives its sincere thanks to the following sponsors: Hole in One Sponsor, Royal Building Products, Golf Cart Sponsors, Homestead Building Systems and Residential Title & Escrow, Putting Sponsor, The Meltzer Group, Long Drive & Photo Sponsor, Goodman Distribution and Hole Sponsors, Dewberry and Gutschick, Little & Weber, P.A.

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T he

DEATH

of the SUBURBS PART V

Photo courtesy of The Bozzuto Group

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THE GREAT INVERSION BY DAVID S. THALER, P.E., L.S., F., ASCE, F., NSPE AND VICTORIA M. BALLESTERO, EIT, D.S. THALER AND ASSOCIATES, INC.

THE RISE OF THE SUBURBS Suburbia began with the best of intentions. The dream was to be an antidote to city life. As the industrial revolution gained steam during the nineteenth century, cities were not pleasant places to live. They were noisy, crowded and polluted. As industrial enterprises grew, they required increasingly large factories serviced by armies of workers who needed to live nearby, often in deplorable conditions, to get to work. So what was the answer to the ills of the city? Well, there was the city and then there was the country with its promise of a more bucolic life. As early as 1860, the first of the romantically designed suburbs appeared. The first of these was Llewellyn Park , twelve miles from Manhattan in West Orange, NJ. The romantic suburb responded to the desire for a better and more comfortable way of life. Llewellyn featured curvilinear roads in lieu of a grid pattern and community open space (known as The Ramble) - both novel for the time. Then around the turn of the 20th century, the street car suburb arose, ushered in by the first electric powered street cars and suburban communities began to spring up along the lines and near the stations. The growth of the suburbs gathered momentum during the 1920s but was interrupted by the Great Depression and World War II. Immediately after the war, suburbia as we know it was born. The influx of returning soldiers and the lack of new housing constructed during the war years created a tremendous demand. The reward to the returning GIs was an affordable home in the country. The first of the great post-war communities was Levittown on Long Island, built by William Levitt who is widely considered the father of modern suburbia. Levitt adapted assembly line production techniques to home construction and at its peak, Levittown was delivering a new home every 16 minutes. From the 1950s through the 1970s, suburbia boomed and by 1970, more Americans were living in the suburbs than in the cities. There was also a reorientation of the American dream, which was once the prospect of endless opportunity to that of owning a home in the country with a yard and a white picket fence. But the cities suffered as those who could afford it moved to the better life in the suburbs. Of course, offices and shops followed, further draining the cities. With residential life so spread out, the car became a necessity and American industrial might rose to the challenge churning out millions. There are now

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more cars registered in America than there are drivers, according to the Federal Highway Administration. Suburbia was a false promise of life in the country, however, because it was not real country. It had no real connection to fields, streams, agriculture or any of the other attractions of the countryside - nor did it have the amenities of the city either.

THE GREAT INVERSION Very subtly, a change began to take place - a Great Inversion. For the past century the affluent have moved to the suburbs leaving the poor and their problems behind, but a remarkable transformation is now under way. Owning a single-family detached home with a yard is no longer the dream of many homeowners. Almost without our noticing it, the U.S. is experiencing a fundamental shift; the cities are growing at the expense of the suburbs. Consider the following: in 2010 and 2011 cities and inner suburbs grew twice as fast as the outer suburbs marking the first time in 20 years that city growth surpassed that of the exurbs. This is the first time since the invention of the automobile that outward migration patterns have reversed.

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In his book, The Great Inversion and the Future of the American City, Alan Ehrenhalt noted, “The late 20th century, was the age of poor inner cities and wealthy suburbs; the 21st century is emerging as an age of affluent inner neighborhoods and [the poor] settling on the outside.” The U.S. is shifting to a more European way of life where the affluent live in city centers surrounded by poorer suburbs. For the first time in recent history, the United States is now experiencing enormous demand for residential growth in urban areas. THE CATALYSTS So what has caused this great reversal? Of course, one cause is the bursting of the housing bubble. Low interest rates and easy money after 9/11 caused housing prices to skyrocket - rising nearly 200% between 1995 and 2000. The homebuilding industry consequently surged, building an all-time high of 1.7 million new homes in 2006 and the rate of homeownership rose from 64% where it had been consistent for decades to 69.4%. We know how it ended - in a titanic collapse from which we have still not fully recovered. But perhaps the most significant cause of the decline of the burbs and the rise of cities is that consumer preferences have changed in fundamental ways - especially among the Baby Boom and Millennial generations. Boomers and their parents were largely responsible for populating the suburbs but now with high gas prices, long commutes, the kids grown and too much house to maintain, they are seeking a different lifestyle. Older adults are selling their homes in the suburbs and flocking to the cities where they like the proximity of entertainment, culture, dining and shopping. A recent article in The Washington Post noted: “A major trend in the metro area last year was the number of non-family buyers…the group we call mature couples, who are 45 and older without any kids age 18 and younger at home, represented the biggest group of buyers, with 23 percent of the market share … [for] home sales.” Then there are the Millennials. Having grown up in the burbs, Millennials now crave the vitality of city life. This generation of recent college graduates and would-be first time home buyers also differs from prior generations in the way they interact with their peers and community. Living in suburbia where connecting with others and accessing retail and entertainment requires a car is no longer so desirable. In fact, the Millennials seem to prefer work and amenities to be a walk or bike ride away. Vibrant urban centers have become the stars of the housing scene for them. Additionally, of course, the Millennials are burdened with crippling student debt – on average $28,400 - and often cannot qualify for mortgages under today’s standards. Millennials are living with their parents longer, getting married later (and less often), and are having children later than any other generation in history. Without new family formation, the

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Photo courtesy of The Bozzuto Group

With 40 years of residential, commercial, and institutional land development engineering experience, DST&A can ef�iciently and creatively help to transform raw land and redevelopment sites into thriving communities.

market for starter homes, previously a staple of the American suburb, has declined. In addition, Millennials are much more transient than their forebears. While it was once common for someone to work with the same company for an entire career, Millennials are more mobile and typically job hop every few years-making a permanent residence less desirable. There are those who predict that once Millennials finally settle down, marry and have kids they too will want to live in the suburbs just like the generations before them . We think not. This is not to say that everyone will want to live in the city; schools are still a critical factor in the home buying decision. Surely many people will still seek a single family house on a tree-lined street in the suburbs, but our point is that our once most popular way of life is on the wane and that there has been a profound shift in lifestyle preferences. Many Americans are now looking for a different kind of home and lifestyle in the urban areas. Homebuilders who wish to prosper in the future should prepare.

David S. Thaler, PE, LS, F., ASCE, F., NSPE is the President of D.S. Thaler & Associates, Inc., a civil and environmental engineering firm in Baltimore, Maryland, which has designed hundreds of communities. Repeatedly honored, he is a Fellow of both the American Society of Civil Engineers and the National Society of Professional Engineers, and is Guest Scholar at the University of Baltimore School of Law. He has published more than 200 articles and four books, and has won numerous lifetime achievement awards. He also holds both the highest professional engineering award in Maryland, now known as the Thaler Prize, and the Maryland Distinguished Service Cross, Maryland’s highest military honor. dsthaler@dsthaler.com. Victoria M. Ballestero, EIT is a civil and environmental engineer with D. S. Thaler and Assoc., Inc. She is a graduate of Clarkson University. vballestero@dsthaler.com

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410.944.3647

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MBIA’s NIGHT AT

Camden Yards The local rivalry between the Baltimore Orioles and Washington Nationals was renewed on July 11 as the two hometown teams faced off at Camden Yards in the first game of the Battle of the Beltway series, and MBIA members were there to see it. Before the first pitch guests were treated to a Bull Pen party with picnic food and free flowing beer while watching batting practice. Although orange and black seemed to be the primary fashion choice of the nearly 100 members in attendance, there were a few members donning their red and white Nationals gear, although not with the Orioles plaid floppy hat, which was the fan giveaway that night. Thankfully, however, any “battles” stayed on the baseball field and out of the stands. The Orioles took the win with a score of 3-2, however, the series went to the Nationals who nudged them out in games 2 and 3. These two rivals will meet on the field again in September and MBIA will be there cheering them on. Tickets are still available for the Sept. 21st game. Purchase at marylandbuilders.org.

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Your houses. Our land. (Imagine the possibilites.)

Reese Road, Anne Arundel County, MD 30 single family finished lots $205,000 per lot Greenfields @White Marsh Bird River Road, White Marsh, MD 37 single family finished lots $135,000 per lot Phase II 59 single family recorded lots $55,000 per lot

Curtis Farm TDRs Howard County, Maryland 11 eastern TDRs which transfer and add density to subdivisions in eastern Howard County at a density of 1 TDR per 1 additional single family lot 1 TDR for 2 additional town home lots 1 TDR for 3 additional multi-family units $60,000 per TDR

Townhome Lots S. Dolfield Road, Owings Mills, MD $30,000 per lot

Woodlawn Aberdeen, Maryland 103 single family lots plus 14 acre parcel zoned R-3 $6,800,000

Stephen J. Ferrandi, Director of Land Brokerage • Accredited Land Consultant (ALC) licensed through

marylandbuilders.org

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BUILD MARYLAND

• 410-290-1110

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FINANCIAL REVIEW

EMBRACE THE CHANGE MICHAEL L. CRIST, WELLS FARGO HOME MORTGAGE

Change is all that we in the mortgage, settlement, and real estate industries can expect, and adapting to that change is critical to all our continued success. Laws, guidelines, forms and delivery systems all change. We operate in a very fluid and constantly evolving industry. We were originally scheduled to be working under another new TILA/RESPA rule August 1 but very much like the Financial Reform Act, with so many in our industry being unprepared; the Consumer Financial Protection Bureau (CFPB) pushed back the enforcement date to October 1. So, I ask…is your organization ready? Are you ready? The new TILA/RESPA Integrated Disclosure Rule; coined by many as the “Know before you Owe” rule was developed like so many others before it to ultimately protect the consumer. The CFPB re-labeled and replaced some of our traditionally used mortgage disclosures. The initial Truth in Lending (TIL), disclosure and Good Faith Estimate (GFE) are being replaced with the Loan Estimate (LE). This document must be received by the borrower(s) within three days of application; and all borrower(s) named must provide the lender a documented “Intent to Proceed” prior to initiating the process of their mortgage loan. The Final TIL and HUD-1 are being replaced with a Closing Disclosure

If you desire to maintain the highest possible customer satisfaction, dramatically increase communication with all involved.

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(CD). There are very specific re-disclosure rules for both the LE and CD based upon changed circumstances. What needs to be considered is that delivery timelines for the LE can affect and increase the timelines for the CD. The timeline for delivery of the CD is a rigid three business days prior to closing, (be sure to research all disclosure delivery methods; i.e. postal or e-delivery as the rules are different for each). Let’s look at an example of one affecting the other. A revised Loan Estimate must be provided one business day prior to the borrower receiving the Closing Disclosure - which must be received by the borrower at least three business days prior to closing and therefore will need to be provided to the borrower three business days before that if placed in the mail. So you just set a possible 9nine day window if you changed and mailed a re-disclosed LE, followed by your re-disclosed CD. There has been a great deal of misinformation and commentary around the required clock re-set and re-disclosure specific to the CD. There are really only three changes that would require a re-set of the 72 hour clock on the CD; contract changes that impact loan to value ratio, APR increases more than .125%, (this particular requirement has been in place since 2009), and a change in loan product. Be cognizant, however, that there are many other circumstances that can occur. Something is discovered during

a final walk through and an additional seller credit is generated to resolve; where this situation would not require a full 72 hour reset, it would still delay the closing 24 hours, which could be devastating to your customer and problematic if you are looking at the end of a month, quarter, or year. If you desire to maintain the highest possible customer satisfaction make sure all parties to these transactions re-visit closing calendars, reverse engineer their settlement schedules, collaborate, and dramatically increase communication with all involved. It will truly take the village to educate, assist, and guide our collective customers by setting correct expectations. I truly wish the crafters of these new regulations would consider the unintended consequence to the customers when something other than one of the big three mentioned above occurs; empowering the customer with some type of limited consumer waiver, but in lieu of that miracle occurring; stay on course with the education and increased communication. Encourage the use of electronic documentation delivery when and where it’s available for more expediency. This as an opportunity to show our customers and clients that we are more than up to the task to meet any new regulatory changes and continue to close their loans timely in this and any future environments. If you or your organization is not pro-actively taking action or discussing these upcoming changes, do so immediately. Michael L. Crist is the Regional Builder Sales Manager for Wells Fargo Home Mortgage in Region 12 covering MD/DC/VA/DE. He can be reached at 301-631-3680 or michael. crist@wellsfargo.com.

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STATS & FACTS

STATS & FACTS PRODUCT DIVERSITY KEY TO SUCCESSFUL FIRST HALF OF 2015 BEN SAGE, DIRECTOR, METROSTUDY’S MID-ATLANTIC REGION

W

hile the Maryland housing market couldn’t be described as a runaway train, sales and starts are up in the first half of 2015 compared to last year. New-home starts in the state, (excluding the eastern shore), according to Metrostudy’s field verification survey, numbered 4,749 units in the first half of 2015. This represents an eight percent increase from one year ago. Leading the way are Prince George’s County with 770 starts, +24%, and Anne Arundel with 737 starts, +18%. Baltimore City exhibited the largest percentage increase in starts, tripling its output in the first half of the year to 164 starts. This area was led by O’Donnell Square TH (Ryan Homes), Keys Overlook TH (Beazer), and Uplands TH (Bozzuto). Metrostudy also measures demand through a weekly builder survey of sales traffic and contracts by subdivision. In the first half of this year, builders reported an average of 2.45 sales per month per subdivision, representing a nine percent increase from the first half of last year, which produced 2.25 sales per month. This increase in demand is in line with Metrostudy expectations,

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as we forecasted a five percent increase in starts in 2015. Part of Maryland’s success stems from the variety of product provided by homebuilders. Of Maryland’s first half starts, 43 percent are single family detached, 47 percent are townhomes, and 10 percent are condos. Prior to 2014, more than half of Maryland starts were single family detached. The larger percentage of attached product helped builders reach a wider buyer group and grow starts. The condo market consists mostly of first-time buyers as the median closing price is $329,400, whereas the townhome market is a mix of first time and first move-up buyers with a median price

It is best to keep expectations modest until we see more evidence of an enduring recovery.

of $378,500. The median price of a condo unit is likely to rise as 598 units of higher-priced condo product are under construction in Montgomery County (mostly Bethesda). As for single family detached, there is a wide spectrum of buyers, but they are mostly move-up, as the median new-home price is $558,900 in the first half of 2015. Texas has remained a strong housing market throughout the recovery, and new-home demand is picking up in Atlanta, Nashville, Denver, Salt Lake and Seattle. While an eight percent increase in starts for Maryland is nice, most local homebuilders are still looking for a more robust recovery to rival these hotter markets. Metrostudy expects it will come, but gradually. It is best to keep expectations modest until we see more evidence of an enduring recovery. Ben Sage, Director of Metrostudy’s Mid-Atlantic Region, has been researching and analyzing housing markets since 1994. He regularly meets and consults with many of the top homebuilders in the country as well as with lenders, developers, investors, and utilities concerning trends in the local economy and their effect on the real estate market. Ben can be reached at bsage@ metrostudy.com. For more information, visit www.metrostudy.com.

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Type

1H14

1H15

Detached

2,032

2,026

-0.3%

TH

1,954

2,229

14.1%

Condo Total

401 494 23.2% 4,387 4,749 8.3%

42.7%

1H15 Distrib

While an eight percent increase in starts for Maryland is nice, most local homebuilders are still looking for a more robust recovery.

Chg

Median Closing Price

46.9%

Type

10.4%

1H14

1H15

Chg

Detached

$543,600

$558,900

-0.3%

TH

$370,100

$378,500

14.1%

Condo

$325,900

$329,400

23.2%

Starts County/Area Prince George’s Anne Arundel Montgomery Howard Charles Frederick Baltimore Co St. Mary’s Baltimore City Harford Carroll Washington Queen Anne’s Calvert Cecil

1H14 623 625 827 566 312 327 369 135 34 156 120 52 87 82 72 4,387

1H15 770 737 598 518 428 412 395 202 164 151 127 88 67 59 33 4,749

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% Chg 23.6% 17.9% -27.7% -8.5% 37.2% 26.0% 7.0% 49.6% 382.4% -3.2% 5.8% 69.2% -23.0% -28.0% -54.2% 8.3%

BUILD MARYLAND

# Chg 147 112 (229) (48) 116 85 26 67 130 (5) 7 36 (20) (23) (39) 362

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PRODUCT SPOTLIGHT

GETTING STARTED WITH VIRTUAL REALITY By Ben Norkin, Mangan Group Architects

Virtual Reality (VR) architectural walkthrough presentations using an Oculus Rift or other VR headset are a fantastic new way to experience an unbuilt space. If you haven’t seen it yourself it’s hard to describe, but the experience is incredibly immersive. Mangan Group Architects has been producing these VR programs for close to a year and we’ve found clients generally have the same questions about the product. Here are the FAQs and some answers to get you started.

WHAT’S THE PURPOSE? So far we have used it for two main purposes: 1) As a sales and design tool to present a finished space before it exists and 2) to do virtual framing walkthroughs and inspect structure, plumbing and HVAC clashes. Of course, the scope of work and end use is not limited to these functions. If you have an idea for a new use it can probably be done. HOW IS THIS DIFFERENT THAN TRADITIONAL RENDERINGS? There are two key areas that set VR apart from traditional architectural renderings and videos. The first is that it is realtime, meaning the user can determine at any moment what they want to view. Traditional renderings are still images or videos showing a pre-determined camera path that can’t be changed after they are rendered. The VR can also be interactive, allowing the user to instantly change things like the color of a wall or choose between different kitchen layouts. The second difference is the integration with the Oculus Rift or other VR headset. There are a few real-time presentation software programs already available, such as Lumion 3D or Autodesk Showcase. These both produce a real-time presentation, but they can only be viewed on a computer screen. The VR aspect puts you IN the space.

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WHAT ARE SOME ADVANTAGES OF VR OVER TRADITIONAL DESIGN? The primary advantage is that it gives the client the best possible understanding of the size of an unbuilt space. Many clients are not familiar with interpreting traditional architectural drawings such as plans and sections. 3D models, 3D floor plans and traditional renderings and animation have been a great collaboration tool in the design process because they allow everyone to understand the design. VR expands on this in a way that is both fun and exceptionally informative. HOW MUCH DOES THE HEADSET COST? The consumer version Oculus Rift headset has an anticipated release date

of Q1 2016. The price has not been announced, but is estimated to be between $200 and $400. You could also buy the Oculus Rift DK2, which is the version used by developers to create content for the Oculus Rift. The DK2 is available for $350 on the Oculus website. Oculus CEO Brendan Iribe earlier this year said a complete set up, including a computer, will run about $1500. There are also competing products at various levels of development from Samsung, Sony, HTC, Google and Microsoft among others. DO I NEED A SPECIAL COMPUTER? Maybe. The Oculus requires a good graphics card and a fast processor for optimal performance. The developer’s minimum specifications are an Intel i5-4590 processor, an Nvidia GTX970 graphics card (or equivalent AMD card) and 8GB of RAM. We have successfully run Oculus presentations on computers with continued on page 36

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PRODUCT SPOTLIGHT

HOW MUCH DOES IT COST TO HAVE A VR FILE CREATED? Like everything else, it depends. The four primary factors that will affect the cost are the size of the project, the visual quality that is required, the design drawing files that you provide and the deadline. So far our projects have run between $5,000 and $15,000. HOW LONG DOES IT TAKE TO CREATE? They can be created in as little as a week, although the time to complete a project is affected by the same variables that influence the cost. Three weeks is a safe estimate for projects larger than a single room.

lower-rated components than the developer’s specifications, so the computer you already have may work. The experience is significantly better with more computing power, so if you’re seeing choppy images you may want to upgrade your computer. DO I NEED ANY SPECIAL SOFTWARE? No. You will need to install drivers in order for the headset to function, but the walkthrough itself is a standalone executable file. WHAT SOFTWARE IS USED TO CREATE THE VR FILE? The typical workflow incorporates a professional-level 3D modeling software, usually 3DS Max, and one of two video game development programs, either Unity or Unreal Engine. There are a few companies working on VR integration directly from BIM software such as Revit and other 3D modeling programs such as Sketchup. As of the writing of this article these options are still in Beta testing.

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WHAT KIND OF DRAWINGS ARE REQUIRED? Most companies who provide VR can start with PDFs, DWGs or a napkin sketch of your project. MY ARCHITECT ALREADY HAS A REVIT/SKETCHUP/VECTORWORKS/ ARCHICAD/OTHER 3D MODEL. CAN YOU USE THAT? Maybe. The 3D model produced by most architecture software is not conducive to being used in a video game. When moving the architectural model to a 3D modeling program, such as 3DS Max, the model from the architecture software often becomes excessively large and difficult to work with. It needs to be modeled, prepared and exported very meticulously so as to be usable in an efficient manner in 3DS Max and Unity/Unreal. Depending on the quality (or lack thereof ) of the provided 3D model, most companies that produce VR programs will find it more efficient to produce their own 3D models based on your 2D drawings.

HOW LONG DOES A VR TOUR RUN? As long or as short as you want it to. You are “walking” around in a virtual environment so you can take as much time as you like. We have found people don’t typically spend more than five to ten minutes inside the headset. Of course it also depends on the size of the project you are viewing. HOW REALISTIC IS IT? DO YOU THINK IT CAN REPLACE A REAL MODEL HOME? It is incredibly realistic in that it gives you a great sense for the size of interior spaces. You can feel how tall the ceilings are, you can walk into a walk-in closets and you can see if you’ll be able to see the living room TV from the kitchen island. It may not replace the tactile experience of being in an actual model home, but VR gives you the opportunity to see multiple models with multiple design options without leaving a sales office. Ben Norkin is an associate architect at Mangan Group Architects. He has a Masters of Architecture from the Catholic University of America where he now teaches Intro to Real-Time Architecture and Advanced Visualization and Animation classes. He can be reached at (301) 589-7900 or bnorkin@ mangangroup.com if you have any questions or would like more information.

Ca or 75

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NEW MEMBERS & REINSTATEMENTS

JUNE/JULY 2015 BUILDERS

ASSOCIATES

Habitat for Humanity Metro Maryland John Paukstis 9110 Gaither Rd. Gaithersburg, MD 20877 301-990-0014 John.paukstis@habitatmm.org

Angelozzi Brothers, Inc. Nicholas Angelozzi, Jr. 62 Gwynns Mill Ct. Owings Mills, MD 21117 410-363-6650 nickangelozzijr@hotmail.com

Mariner Custom Homes Bill Bullock 2600 Laurel View Ct. Fallston, MD 21047 410-877-3349 Marinercustomhomes@verizon.com

Apex Realty Mike Winters 2411 Crofton Ln., Suite 24 Crofton, MD 21114 410-320-2450 mwinters@carusohomes.com

Schell Brothers Doug Reynolds 20814 Phillips St. Rehoboth Beach, DE 19971 302-226-1994 doug@schellbrothers.com

Asmar Schor & McKenna Christopher Taggi 5335 Wisconsin Ave., Suite 400 Washington, DC 20015 202-244-4264 ctaggi@asm-law.com

REMODELERS Accessible Living, a Division of Metropolitan Bath John King 8424 Westphalia Rd. Upper Marlboro, MD 20774 443-208-0280 jking@metrobath.com Coastal NRM Builder LLC Tim Domanowski P.O. Box 43386 Nottingham, MD 21236 410-598-7473 Timothyd76@yahoo.com Second Century Homes LLC Lawrence Oliva 1752 E. Lombard St. #2 Baltimore, MD 21231 410-709-8322 loliva@secondcenturyhomes.com

Bear Drywall Joe Mitchem 209 Quiet Ridge Ct. Pasadena, MD 21122 240-375-6370 Joseph.mitchem@aol.com CV, Inc. Anita Rappoport 416 Hungerford Drive, Suite 301 Rockville, MD 20850 301-442-6761 Anita.rappoport@c-v-inc.com Early, Cassidy & Schilling, Inc. Chris Warren 15200 Omega Dr., Suite 100 Rockville, MD 20850 240-864-9143 warrencm@ecsinsure.com Fence & Deck Connection Jeffrey Wall 8057 Veterans Hwy. Millersville, MD 21108 410-969-4444 jwall@fencedeckconnect.com Gamma Engineering Michael Helfrich 1203 West St., Suite A Annapolis, MD 21401 410-626-1070 blupt@msn.com

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O’Hanlon Kitchens, Inc. Jessi O’Hanlon 2750 Pilgrim Rd. York, PA 17406 443-285-0558 jessi@okitchens.com Provider Mortgage Gene Curran 401 N. Charles St. Baltimore, MD 21201 410-727-1105 gene@providermortgage.com Royal Building Products David Macauley 14 Tanager Ct. Potomac, MD 20854 240-215-5585 David.macauley@royalbuildingproducts.com ServPro of Glen Burnie / Pasadena Deborah Sutten 502 McCormick Dr., Suite H Glen Burnie, MD 21061 443-618-8267 Debbie@servproofglenburnie.com Stonewall Capital Ray Jackson 1206 Sparks Rd. Sparks, MD 21152 443-564-9670 rjackson@stonewalldevelopment.com Swift Flooring Tom Parker 10611 Iron Bridge Rd., Suite A&B Jessup, MD 20794 800-275-3895 tpswift@juno.com Switch to Solar Chris Graves 20632 Highland Hall Dr. Gaithersburg, MD 20886 866-387-4122 chris@switchtosolar.com Timbermax Construction Co., Inc. Joseph Penkusky 4707 Beechwood Rd. Ellicott City, MD 21043 443-324-4807 Timbermax3@msn.com

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