BUILD Maryland May/June 2017

May/June 2017 The exclusive magazine of MBIA

SURBAN LIVING THE BEST OF URBAN LIFE IN THE BURBS

8

BUILDER CONNECTIONS

16

BUILDER MART 2017 IN PICTURES

18

FUNDAMENTALS OF LAND DEVELOPMENT PART 4

New fangled stuff.

Old-fashioned service.

Vintage provides innovative technologies to make homes safe and enhance lifestyles. Call us for security systems, home theatre, whole house music systems, home automation, and structured wiring.

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

IN THIS ISSUE

12

COVER FEATURE

12

SURBAN LIVING Bringing Urban Life to the Suburbs

8

BUILDER CONNECTIONS A Night of Networking

10

WOMEN IN BUILDING MBIA’s PWB Council Turns Five

IN EVERY ISSUE 2

EVENTS CALENDAR

28 NEW MEMBER SHOWCASE

4

PRESIDENT’S MESSAGE

30 NEW MEMBERS

16

5

CEO’S MESSAGE

30 DID YOU KNOW?

A Heroic Event

6

LEGAL BRIEF

32 ADVERTISER INDEX

22 ENGINEER’S TOOLBOX

32 STARS CLUB

24 STATS & FACTS

32 THE BUILDER’S BOOKSHELF

26 NEW PRODUCT SPOTLIGHT

BUILDER MART 2017

18

FUNDAMENTALS OF LAND DEVELOPMENT PART 4 Due Diligence Continued

marylandbuilders.org

BUILD MARYLAND

1

EVENTS CALENDAR

MAY

JUNE

HBCF’s Bull & Oyster Roast Ruppert’s Landscaping Laytonsville, MD May 3

Wine & Dine on the Waterfront The Boathouse Canton Baltimore, MD May 10

EDITOR

Kristin Josephson Hogle, Communications Director communications@homebuilders.org

PWB Luncheon “Ladies, Mind DESIGN Your Own Business” ADVERTISING

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

Heather Winkel, Art Director Corinne Thompson, Graphic Designer Network Design Group ndg@networkmediapartners.com

Gorfine, Schiller & Gardyn HBAM LEGAL COUNSEL Owings Mills, MD Linowes and Blocher May 17 MID-ATLANTIC BUILDER

MBIA Reception at ICSC Convention

Chopin Terrace, The Wynn Las Vegas, NV May 21

The MAX Awards Martin’s West Baltimore, MD June 1

PWB’s Eastern How will you meet Shore Net2012 Energy Code requirement working Lunch Montgomery County Chapter Custom Builder Helps You Reach The Awards 2012 IECC Energy Code Pooks Hill Marriott At Lower Requirements Bethesda, MD Construction Costs!

May 24

Fisherman’s Inn Kent Island, MD June 9

MBIA’s Annual Golf Tournament Lake Presidential Upper Marlboro, MD June 12

The Enviro-Dri Weather-Resistant Barrier reduces the number of air chan ®

Baltimore County Crab Feast

is a publication of HBAM Member per hour (ACH), giving you the greatest flexibility in reaching the 2012 Services, Inc., a subsidiary of the Home energy code targets, at a construction cost that’s equal to or lower than Builders Association of Maryland, Inc., 6030 Daybreak Circle #A150 current costs.

BUILD Maryland text and cover pages are printed on SFI certified Anthem Plus Gloss using soy ink.

PMB 362 The Sustainable Forestry Initiative® program promotes sustainable forest management.

Clarksville, MD 21029 410-265-7400, www.homebuilders.org.

y

that last

BUILD Maryland is published bimonthly by MBIA—the Maryland Building Industry Association,

eover

mbers featured on w.

Postmaster: Send address changes to Home Association of Maryland, 11825Builders West Market Place, Fulton, MD 20759. The statements and opinions expressed herein are Inc., 6030 Daybreak Circle #A150 those of the individual authors and do not necessarily represent the views of MBIA. The publisher PMB 362 Clarksville, 21029 reserves theMD 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, ECO BOX 11825 West Market Place, Fulton, MD 20759, USA. © 2017 MBIA. All rights reserved.

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

Message

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

2

BUILD MARYLAND

May/June 17

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

By reducing air changes, you can consider these Ocean Pride construction options and still meet your energy co

Timonium, MD June 14

• Retain your current 2x4 frame walls with R-15 i

• R-38 blown ceiling insulation will meet perform path code requirements; • You can meet the 2012 code without switching sheathing or 2x6 walls.

Baltimore City Crab Feast

Captain James Crabhouse Contact Eddy Esplund, Tremco BarrierBaltimore, Solutions, MDto schedule a no-obligation “Energy Trade-Off Analysis” on your most popular home models. Lea June 21 Enviro-Dri WRB can reduce air changes, reduce your construction costs, and you meet the 2012 IECC code.

marylandbuilders.org

BUILD MARYLAND

3

PRESIDENT’S MESSAGE

The exclusive magazine of MBIA

SKIN IN THE GAME

A

s I sit down to write this, my wife is telling me to be careful in what I say, as she is concerned I might offend some who read it. I told her I intended to write about how much easier it is to have opinions and make regulations and bad laws when you don’t need to suffer the consequences of your actions. Many of our adversaries incur no negative effects at all, no matter what they say or do. Sure, a politician’s career could be interrupted, or a bureaucrat could get fired, but many of our members worry about bigger problems when they make mistakes; such as bankruptcy.

These days we are so afraid to offend, that many times we just sit back and listen. The “STRONG AND WRONG” get their way because many of us think we need to be politically correct at all times. I think back to my grandfather, who, years ago, was a county commissioner in Howard County. He had no idea of “PC” and just said what he thought and let the chips fall where they might.

Too often we let the discussion be led by those who really don’t understand the practical day-to-day effects of the policies they espouse.

We in the building industry, on the other hand, do know how we will be affected by changes. If we don’t know, we won’t be in this complicated and risky business for very long. We start projects with our eyes open, understanding we are taking various risks that we can’t control, including market risk, interest rate risk, labor and material cost risk, cap rate risk and a host of others.

One ever changing risk we take is regulatory risk. I wonder if some of the “advances” we are making due to a myriad of regulations at the federal, state and county levels are really advances at all? Are we really better off just throwing money at problems to placate the uninformed? Real numbers in science and accounting should be our guide. We take responsibility for our actions. We should not be responsible, however, for cleaning up and paying for problems created by other industries or be forced to cure societal ills not of our making.

I am not suggesting that those who live in our homes and no longer want us to MAKE HOMES FOR new MARYLANDERS the way we did for them, don’t believe in what they propose, only that they might make much better decisions if they walked in our shoes for a bit. Most are well intentioned. For them, it really is an educational process. We need all of our 1,000 plus member firms, with 100,000 plus employees and many times that number of family members, (all of whose livelihoods are dependent on our industry), to be educated and help educate others in why we do what we do. We are the ones with the Skin in the Game.

STEVE BREEDEN President, MBIA

4

BUILD MARYLAND

May/June 17

2017 MBIA LEADERSHIP EXECUTIVE COMMITTEE President, Steve Breeden 1st Vice President, Jeff Caruso Vice President Advocacy/ State, Mike McCann Vice President Advocacy/ Washington Market, Jude Burke Vice President Advocacy/ Baltimore Market, Tim Morris Vice President, Associates, Peggy White Treasurer, Kimberley Palmisano Secretary, Mike Schueler Life Director, Mark Bennett Immediate Past President, Dave Lunden Legal Counsel, Jack Orrick

CHAPTER PRESIDENTS Advocacy/Anne Arundel County, Marilee Tortorelli Advocacy/Baltimore City, Sean Davis Advocacy/Baltimore County, Jennifer R. Busse, Esq. Advocacy/Carroll County, James Mathias Advocacy/Charles County, Doug Meeker Advocacy/Eastern Shore, Robert Purcell Advocacy/Howard County, James 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, Andrew Bolton

COUNCIL CHAIRS Builder Mart, Joe Fleury Custom Builders Council, Larry Cafritz Future Industry Leaders Council, Alex Villegas Green Building Council, Thom Marston Land Development Council, Robb Aumiller Multifamily Housing Council, Jeff Kayce Professional Women in Building Council, Maggie Witherup Remodelers Council, Rich Lang Sales & Marketing Council, Pete Baxter

MEMBERS AT LARGE Phil Hughes Cindy Plackmeyer Barbara Richman Dusty Rood Steve Rubin

Jeremy Rutter Michael Schonfeld Robert Spalding David Winstead

SUBSIDIARIES Builders Development Guaranty Group/President, Scott Nicholson Home Builders Care Foundation/President, Chris Rachuba 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 Creative Director, Serena L. Spiezio Graphic Designer, Zon Buckley Account Manager, Tamara Smith

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

CEO MESSAGE

CAN WE COUNT ON YOU?

T By volunteering, you help shape the future of our organization and serve your profession.

he Maryland Building Industry Association strives to meet the ever-changing needs of its membership through the work of committees and councils. MBIA relies on its members to provide volunteer leadership and support for these programs. By volunteering, you help shape the future of our organization and serve your profession.

As an Association committed to advocating for fair and balanced regulation of our industry, we maintain vigilance, active engagement and rock solid advocacy with elected officials and agencies responsible for managing growth. At the same time, our Association strives to enhance member benefits through networking, education, community involvement and professional development.

One of the most important characteristics of a successful association is one whose voice is heard by the public, by elected officials and by its own membership. An association is only as strong as its members, however, and the more members who participate, the more likely it is that our voices will be heard.

MBIA’s influence and reach are a function of the size of our membership. That is why it is imperative we grow our membership numbers and retain the members we already have. That is at the key to our very survival.

We need MBIA members to join our committees and actively participate.

Why participate?

The results of your participation are tangible and will not only help shape the future of MBIA, but will provide you with great personal and professional rewards that will directly benefit your company and stimulate your career. Your involvement will make a difference.

What do you get in return?

The opportunity to: Share your expertise and leverage the expertise of others Connect with like-minded professionals Expand your thinking and discover new ideas Enhance your leadership capabilities Help shape the future direction of MBIA programs and initiatives What is expected of you as a volunteer?

Commit to participate actively in scheduled meetings Notify the group when you are unable to participate in scheduled meetings Act as an ambassador for MBIA in the industry How do I participate?

If you are interested in becoming more involved with the Maryland Building Industry Association, please give us a call at 301-776-MBIA or check out the committees on our website at www.marylandbuilders.org/committees.

LORI GRAF CEO, MBIA

marylandbuilders.org

BUILD MARYLAND

5

LEGAL BRIEF

ANNEXATION FROM A DEVELOPMENT PERSPECTIVE

by Casey L. Cirner, Miles & Stockbridge P.C.

Annexation is the process to incorporate a property located in a county into the boundaries of a municipality. In other words, the annexation process seeks to expand the municipalities’ boundaries to include a contiguous and adjoining property (and sometimes right-of-way) located within the county. However, the process is not available to annex properties between municipalities. §4-401(c), Local. Gov. Article I, Md. Ann. Code.

The annexation process is governed primarily by State statute. The applicable statutes, having been recently moved from Article 23A of the Maryland Annotated Code, are now codified in Title 4, Subtitle 4 of the Local Government Article I of the Maryland Annotated Code.

To land use lawyers, the annexation process may be an exciting multi-step process with opportunities to represent a client before both the municipality and the county planning commissions and legislative bodies. To a property owner, the annexation process may be a way to better position property for future development or redevelopment.

A property must first be eligible for the annexation process. Eligibility requires the property: (i) to be “contiguous and adjoining to the existing boundaries of the municipality”; and (ii) not create an area where all four sides of county property are bounded by property that is in or proposed to be in the municipality or a combination of both. §4-401, Local Gov. Article I, Md. Ann. Code. In other words, the annexation does not create an enclave (i.e., municipal land surrounding county land on all four sides).

Annexation petitions initiated by the property owner, rather than the municipalities’ legislative body, must be signed by 25% of the registered voters

6

BUILD MARYLAND

May/June 17

who are residents in the proposed area to be annexed and the owners of at least 25% of the assessed valuation of the area proposed to be annexed. Md. Local Gov. Code Ann, § 4-404(a).

These signatures will be verified by the municipality prior to the introduction of a resolution to annex the property and a resolution authorizing the city manager to negotiate the terms of the annexation agreement. § 4-404(b). As you can imagine, it is much easier for a vacant (or commercial) property to satisfy these requirements.

There are various reasons why a property owner annexes property into a municipality. The decision to annex may be based on the property owner’s preferences. For example, a property owner may prefer working with the municipality staff on development projects or the municipal development approval processes may be more efficient, in turn, saving the property owner money in the long run. The property owner may consider the availability of public services in the municipality, such as public water and sewer, trash pick-up or snow removal, but there may be a property tax increase associated with these benefits. There could also be different adequate public facilities tests applied by the municipality to development projects, such as school capacity tests.

A main consideration, however, is often the available zoning classifications and density in the municipality.

A petitioner seeking a new and different zoning classification or higher density by annexing into the municipality must be mindful of what is commonly referred to as the “five-year freeze” provision or historically as the “statutory consistency requirement.” This requirement, set forth in §4-416, Local Gov. Article I, Md. Ann. Code, provides in pertinent part that: Without the express approval of the county commissioners or the county council of the county in which the municipality is located, for 5 years after an annexation by a municipality, the municipality may not allow development of the annexed land for land uses substantially different than the authorized use, or at a substantially higher density, not exceeding 50%, than could be granted for the proposed development, in accordance with the zoning classification of the county applicable at the time of the annexation.

This requirement is often summarized as follows: if the annexation petition includes a request for a zoning classification for the proposed property to be annexed, the proposed zoning classification upon annexation must not provide: (i) land uses substantially different from the pre-annexation zoning classification (county’s zoning classification); and (ii) the density allowed under the post-annexation zoning classification (the municipality’s zoning classification) must not exceed one and

a half times the density allowed under the pre-annexation zoning classification. Otherwise, the county will need to consent to the municipalities’ zoning classification or the property owner will need to wait for five years before the municipality may rezone the property (through a piecemeal rezoning application) to allow development. The Mayor and Council of Rockville, et al. v.

Rylyns Enterprises, Inc., 372 Md. 514, 814 A.2d 469 (2002). This requirement is aimed at preserving the integrity of the county’s master plan, specifically its consideration of the surrounding properties, to avoid disruptions from the post-annexation zoning classification.

Id. This requirement applies regardless of the property being included in the municipalities’ maximum expansion limits or the Land Use Element of

the municipalities’ Comprehensive Plan recommending a specific zoning classification for the property. The failure of a municipality to abide by this requirement may provide the county an opportunity to challenge the annexation, which, notably, is not the only way by which an annexation and associated original zoning may be challenged.

While there are various reasons for annexing property, the property owner should assure its eligibility and give careful consideration to the proposed zoning classification upon annexation to avoid the possibility of having to pursue a piecemeal rezoning application five years after annexation.

Disclaimer: This is for general information and is not intended to be and should not be taken as legal advice for any particular

matter. It is not intended to and does not create any attorney-client relationship. The opinions expressed and any legal positions asserted in the article are those of the author and do not necessarily reflect the opinions or positions of Miles & Stockbridge P.C., its other lawyers or BUILD Magazine.

Casey L. Cirner is a real estate lawyer in the Miles & Stockbridge Rockville office.

She practices in the areas of land use, zoning, municipal law, real estate, real estate litigation and appellate litigation. She assists various clients in public and private sectors with real estate transactions, and serves as Associate General Counsel to the Greater Capital Area Association of REALTORS. Casey can be reached at ccirner@milesstockbridge.com or 301-517-4817.

Safety, Savings & Services Chesapeake Employers Insurance offers qualifying MBIA members an exclusive workers’ compensation insurance program.

MBIA members could save

5%

off Chesapeake Employers’ eligible tiers*

Ask your agent for a quote or visit ceiwc.com

*Minimum eligibility requirements apply.

marylandbuilders.org

BUILD MARYLAND

7

BUILDER CONNECTIONS

BUILDER CONNECTIONS—THE ULTIMATE IN ASSOCIATE NETWORKING

MBIA’s Builder Connections event took a year off in 2016. And as the saying goes, “distance makes the heart grow fonder.” Our members missed this fast-paced and fun networking event and came out to show their support this year.

If you ask members why they joined any association, the number one answer, or at least close to the top, is for the networking. It was for this reason that Builder Connections was invented many years ago.

8

BUILD MARYLAND

May/June 17

The concept is simple. Building companies staff tables with their key decision makers while Associate members get a chance to visit with each builder to pitch their product, service or technology or to just reconnect

with current clients. If all goes well, a connection is made and a contract is signed. But even if pen doesn’t hit paper that night, new friendships are made and business relationships rekindled.

This year we had key players from building companies in Anne Arundel, Baltimore, Carroll, Frederick, Montgomery, Harford, Howard and Prince

A BIG thank you to the building companies who participated including, Bob Ward Companies, Burkard Homes, LLC, Cairn Custom Homes, Caruso Homes, Classic Group LLC, Craftmark Homes, Emerald Builders, EYA, Finish Werks Custom Builders, Foxhall Homes, LLC, Gemcraft Homes Inc., Hawkeye Construction, K. Hovnanian Homes, Lennar, M/I Homes, Michael Harris Homes, Mitchell Best Homes, NAI-The

Michael Companies, Owings Brothers Contracting, Inc., Stanley Martin Homes, Sundecks by T&A Contractors, Inc., Timberlake Design/ Build, T.W. Ellis, LLC, Williamsburg Homes, Winchester Homes and Wormald Homes.

And a special thank you to our Sponsors who keep this event going strong!

Our Elite Sponsor, Guardian Home Technologies and of course our STARS members!

©2017 California Closet Company, Inc. All rights reserved. Franchises independently owned and operated. MHIC 28991

George’s counties as well as from Virginia, who set up shop at Martin’s Crosswinds on February 22 to support their association and to network with the more than 200 Associate members in attendance.

To maintain the vitality of MBIA it is important for builder and developer members to seek out bids and proposals from our Associate members to help uphold MBIA’s motto, “Do Business with members.”

Experience a California Closets system custom designed specifically for you and the way you live.

Visit us online today to arrange for a complimentary in-home design consultation.

410.247.8088 N EW S HOW RO OM!

californiaclosets.com

910 B Bestgate Rd. Annapolis

Sulphur Spring Rd. Baltimore

MD086_BuildMD_7.4x6_0217.indd 1

2/15/17 11:47 AM

marylandbuilders.org

BUILD MARYLAND

9

THE PROFESSIONAL WOMEN IN BUILDING COUNCIL: INVOLVED AND INSPIRED

I

professional development and networking opportunities. The National PWB Council helps members acquire and develop invaluable leadership and business management skills that boost career success.

In 2012, an enthusiastic MBIA member named Peggy White decided it was time for Maryland to establish its own chapter and was instrumental in forming the local Maryland PWB Council. Peggy led this newborn organization as President through its first three formative years, all the while working zealously to recruit new members and plan events.

PWB’s first year focused primarily on social gatherings intended to grow its membership. Networking events sprung up in various locations from Baltimore City to Calvert County to the Eastern Shore, bringing together women architects, land planners, builders, attorneys and contractor vendors who serve and rely upon the building industry. In its first year the Council registered more than 50 members made up of a diverse cross section of the industry.

Networking get-togethers led to educational seminars featuring women legislators, women bankers and other professionals connected to the building industry. For two years, the PWB Council helped to organize a “Land Development 101” seminar that was well received by all MBIA members. In April 2016, a PWB-sponsored “Women in Government Breakfast” featured a County Councilmember, a Planning Board Commissioner and a County Senior Legislative Analyst discussing their career paths and offering tips for professional success as well as post-program networking. This program earned the Council a first place award from NAHB for Best Legislative & Political OutCurrent Maryland PWB Chapter president, Maggie Witherup receives the Council of the Year award from NAHB PWB president, Cindy Cepko. reach Program for 2016.

PWB also has an active Student Awareness Committee, chaired by Sallie Stewart of Charles P. Johnson & Associates. For the past three years, PWB’s Student Awareness Committee has organized unique programs designed to increase young people’s awareness of and to promote interest in careers in the building industry. In March 2016, PWB members led a group of 7th graders on a walking tour of downtown Bethesda to show them how communities are designed and planned to be livable and sustainable.

The tour covered a wide range of topics, PWB’s 2016 Holiday Luncheon at The Turn House in Columbia.

Photo courtesy of NAHB Professional Women in Building

n a traditionally male dominated industry like home building, it can be challenging for women to make their voices heard and have an impact in the industry. In an area like the Baltimore-Washington region however, plenty of smart, successful women in building have had no problem rising to that challenge. It was this tenacity that led to the creation of the Maryland Chapter of the Professional Women in Building council in 2012. After only four years in existence, the Maryland PWB Council dominated the PWB awards luncheon at the NAHB International Building Show in Orlando, FL, taking first place in two programming awards categories and winning the prestigious “Council of the Year” award among all large size councils.

NAHB’s Professional Women in Building Council has been in existence since 2004 with the goal of promoting industry professionalism and supporting members through education,

10

BUILD MARYLAND

May/June 17

including smart growth, new urbanism, green development, and concluded with free milkshakes donated by a local diner! The tour was so well-received that PWB held a follow up this past March with a new group of 7th graders from the same school. The 2016 Bethesda walking tour inspired NAHB to present the Maryland PWB Council with another first place award for Innovative Programs.

Each NAHB programming award also comes with a monetary award from the national PWB “Building Hope Scholarship Fund” to help young women pursue careers or professional development related to the building industry. In 2016, the PWB Council was able to award two scholarships to (1) a civil engineering student at University of Maryland and (2) a Construction Management student at Montgomery College.

Based on its awards at IBS this year, the PWB Council will have another two scholarships to award in 2017.

In addition to their programs, events, and networking, PWB members also come together to make an even bigger impact in their community by giving back. Together with the Home Builders Care Foundation, PWB has become involved in two annual community service projects. For the past four years the PWB Council has helped collect thousands of men’s and women’s business attire through their Career Clothing and Accessories Drive. Held in conjunction with HBCF’s Bull & Oyster Roast, the clothing drive has benefitted hundreds of low-income job-seekers trying to make their way back into the workforce.

Additionally, for the past two years, the PWB council has come together to supply and assemble hundreds of snack packs to-go for the homeless as part of November’s National Hunger and Homelessness Awareness Month. The packs contain nutritional snacks, all donated by PWB members, as well as key Helpline and Crisis Hotline information to help connect neighbors in need to community resources and assistance programs throughout Maryland. The packs were distributed and sold to MBIA members at events and meetings for a small suggested donation with sale proceeds supporting HBCF. The cooperation, dedication and spirit of the members of the Maryland PWB Council are certainly reasons why this young Council was named 2016 Council of the Year among Large Chapters by NAHB. “The members of the PWB Council are an amazing group of women committed to improving the building industry and our communities,” said 2016-17 PWB Council President Maggie Witherup, a lawyer at Gordon Feinblatt, LLC. PWB will continue to grow its membership and support the advancement of women in the building industry while giving back to their community and inspiring future generations. If you are interested in joining the Professional Women in Building Council, visit www.marylandbuilders.org/professional-women-in-building or contact mwitherup@gfrlaw.com.

Women in Government Breakfast. Pictured L to R are Hillary Colt, Peggy White, Melinda Peters, Andrea Harrison, Nancy Floreen and Ellen Borgage.

PWB Member Raquel Montenegro leads a group of 7th graders on a tour of downtown Bethesda.

PWB members assemble hundreds of snack packs for the homeless.

HBCF’s Director Patti Kane with PWB members Novie Siegars and Flora Betro load a truck during an annual clothing drive.

marylandbuilders.org

BUILD MARYLAND

11

SURBAN:

BRINGING THE BEST OF URBAN LIFE TO THE SUBURBS

BY CHRIS PORTER, JOHN BURNS REAL ESTATE CONSULTING

12

BUILD MARYLAND

May/June 17

The wave of future growth looks like a blend of suburban and urban living environments – a concept we introduce as surban™ living in our book, “Big Shifts Ahead: Demographic Clarity for Businesses.” This way of living will attract the surge of both younger and older households that we expect will enter the new home market in the next 10 years.

marylandbuilders.org

BUILD MARYLAND

13

THE SURBAN™ LIFESTYLE URBAN

M

any suburban cities created decades ago that are now largely built out, continue to reinvigorate themselves with vibrant suburban downtowns composed of new retail and residential developments. A new supply of smaller homes with little or no yards in high-population areas will meet URBAN SUBURBAN the demand to commute less and live closer to restaurants and Housing Affordability entertainment.

While the suburban areas of the country Home have Size represented the overwhelming majority of household growth for Privacy decades, several factors have contributed to a recent pop in growth in urban areas. Fifteen million more people in the Pet Friendliness traditional urban-living years (aged in early 20s and early 60s) certainly explains a lot of the shift. have devoted KidCities Friendliness billions of dollars to clean up their downtowns, which also Open Space drove some of this urban growth.

Mature suburban areas have taken note of recent urban Restaurant Options revitalization and are redeveloping their own downtowns to incorporate the more favorable elements of urban Options living, Entertainment including a vibrant mix of retail, housing and jobs. Urban Walkability planners call these areas “mixed use,” but surban™ better describes the mix of urban and suburban living.of People to Meet Number In surban™ areas, housing affordability, home size, privacy Proximity to Employment and kid friendliness feel more urban than suburban, while school quality, public transportation and proximity to Ease of Parking employment feel more suburban.

The same younger adult population who drove much of the Peace and Quiet urban growth in recent years will move into family formation School Quality schools, mode over the next decade. As they shop for houses,

THE SURBAN™ LIFESTYLE

SUBURBAN Housing Affordability Home Size Privacy Pet Friendliness Kid Friendliness Open Space Restaurant Options Entertainment Options Walkability Number of People to Meet Proximity to Employment Ease of Parking Peace and Quiet School Quality Public Transit

Public Transit

POPULATION GROWTH HAS BEEN SKEWED TO URBAN Change in Population by Age, 2005–2015

+10.3M 55–64 Years Old

7,000,000

POPULATION GROWTH HAS BEEN SKEWED TO URBAN Change in Population by Age, 2005–2015

6,000,000

3,000,000 2,000,000 1,000,000 0 -1,000,000

1,000,000 0

85+

75–79

80–84

70–74

65–69

55–59

60–64

45–49

50–54

35–39

40–44

30–34

25–29

15–19

20–24

Source: John Burns Real Estate Consulting, LLC calculations of US Census Bureau Population Estimates and 2014 National Projections

55–64 Empty Nester Years

20–29 Young Adult Urban Years

-3,000,000

5–9

YEAR

-2,000,000

10–14

85+

75–79

3,000,000 2,000,000

-1,000,000 80–84

70–74

65–69

55–59

45–49

35–39

40–44

30–34

25–29

15–19

20–24

5–9

10–14

0–4

60–64

55–64 Empty Nester Years

20–29 Young Adult Urban Years

-3,000,000

50–54

-2,000,000

+4.7M 20–29 Years Old

5,000,000 4,000,000

0–4

4,000,000

+10.3M 55–64 Years Old

7,000,000

+4.7M 20–29 Years Old

5,000,000

NET NUMBER OF PEOPLE

NET NUMBER OF PEOPLE

6,000,000

YEAR Source: John Burns Real Estate Consulting, LLC calculations of US Census Bureau Population Estimates and 2014 National Projections

14

BUILD MARYLAND

May/June 17

Mature suburban areas have taken note of recent urban revitalization and are redeveloping their own downtowns to incorporate the more favorable elements of urban living.

and communities where they want to raise their families, many of them will return to the suburbs.

And, we suspect, in their new suburban location, they will demand some of the urban-like amenities they experienced in their younger years.

These surban™ areas also appeal to affluent empty nesters.

The idea of a low-maintenance condo or apartment within walking distance of many entertainment options will appeal to those who can afford it.

The Reston Town Center in Reston, VA is a great example of bringing the best of urban life to suburban areas.

High-density condominium and apartment buildings dot the landscape in this location miles from the urban core. The downtown area, with more than 30 restaurants and more than 50 stores, provides a retail and dining environment for residents and visitors alike. Residents who also work in the town center enjoy the added benefit of a reduced commute.

Likewise, the Crown community in Gaithersburg, MD embodies the surban concept, offering a mix of homes, townhomes and apartments that are walkable to retail, restaurants and open spaces. What was once undeveloped farm land has turned into higher-density living with more than 20 storefronts and 16 restaurants, all within a short distance to parks and walking trails, as well as access to public transportation.

Surban™ areas will continue to emerge throughout the U.S., appealing to the surge in nonfamily households, as well as the shift to avoid commuting and enjoy nearby entertainment.

Chris Porter is the Chief Demographer at John Burns Real Estate Consulting, and helps the firm’s clients understand the role demographics play in shaping the demand for housing in the short and long term. He co-authored Big Shifts Ahead: Demographic Clarity for Businesses with the firm’s CEO, John Burns, and the research he leads informs many of the firm’s forecasts.

Business Insurance Tailored For The Members of MBIA Plumbers • HVAC • Carpentry Carpet Cleaning • Concrete Construction • Electricians Door and Window Installation Floor Covering • Interior Design Landscaping • Masonry Painting and Wallpaper Siding Installers... And many more!

Ryan McGinn ryanm@sarabrokers.com Extension 9230

Jeremy Maloney jeremym@sarabrokers.com Extension 9208

532 Baltimore Blvd., Suite 306 • Westminster, MD 21157 (410) 781-6396 www.sarabrokers.com

marylandbuilders.org

BUILD MARYLAND

15

7 1 20

16

BUILD MARYLAND

May/June 17

Nearly 3,000 attendees Attendees came from Maryland, Virginia, Delaware, Washington, DC, Pennsylvania, New Jersey and even South Carolina More than 300 people, in person and on Facebook Live, gained valuable lessons from key note speaker First Sergeant Matt Eversmann at SMC’s Sales Camp A whopping 71 NEW exhibit booths out of more than 300 for attendees to visit Thousands of business cards exchanged A fierce 32 teams competed in the annual Cornhole Tournament Dozens of people took the ride of their life in a $40,000 SimCraft race car simulator sponsored by HBCF An impressive 12,000 oysters slurped and their shells recycled Nearly 1,000 lbs. of pit beef, ham and turkey stacked high on sandwiches More than 500 gallons of beer consumed throughout the day More than 6,000 steps walked by each attendee during the show Nearly 2 hours of live music with The Reagan Years at the After Party Just 10 months until Builder Mart 2018 on March 21

CornHole Champions

Exhibit Booth Winners

HBCF’s Super Hero Speedway Winner

Steve Brown and Shane Currie from Ferguson Enterprises, Inc.

Best Single Booth, Burgess Lighting Best Multi-Booth, OldCastle Best Island, 84 Lumber Best Give Away, Severn Savings Bank

Buck Weeks with a winning lap of 1 minute 14 seconds on a simulated RoadAtlanta Race Course marylandbuilders.org

BUILD MARYLAND

17

FUN PR DA INC ME IPL NTA ES L OF

PAR T4

L A DEV N ELO D PM

ENT

18

BUILD MARYLAND

May/June 17

BY DAVID S. THALER, P.E., L.S., F. NSPE, F. ASCE, D.S. THALER & ASSOCIATES, LLC

T

his is the fourth part of a multi-part series on the fundamental principles of land development and is in conjunction with MBIA’s Land Development Council’s basic land development course.

WATER COURSES AND FLOODPLAINS A stream may be a very attractive feature from a marketing point of view, but with every stream there is typically an associated floodplain, which is the area inundated in a given rain storm. Floodplain areas are regulated and generally construction is prohibited within a 100-year floodplain. The State of Maryland requires a permit for construction in most floodplains and will issue the permit if the predevelopment hydraulic characteristics are maintained. Even if floodplains were not regulated, construction in them would be problematic because any improvement within the floodplain is at risk of inundation.

The 100-year storm is the generally accepted standard storm although as the climate changes that may also be changing. A 100-year storm refers statistically to a storm that has a one-percent chance of occurring in any given year. This statistical relationship also applies to other storm frequencies. For example, a 10-year storm is a storm of magnitude that has a 10% chance of occurring in any given year. Likewise, a two-year storm has a 50% chance of occurring in any given year. The width of the floodplain at a particular location is a function of the amount of water flowing to it and the topography on either side of the stream.

For a given amount of water the floodplain will be wider for a shallow stream channel than for one that is deep and narrow.

Civil engineers and hydrologists use computer modeling to determine floodplains. The amount of runoff at any given point is a function of several factors including the following: • Drainage area • Land Use Characteristics: How much of the site is impervious, grassy or forested−the greater the impervious area, the greater the amount of runoff generated during a storm event.

• Length and Slope of the Contributing Channel: How long is the distance from the highest point in the drainage area to the lowest point in the drainage area and how steep is the grade? The shorter the distance and the steeper the slopes, the greater the amount of runoff generated in a given storm.

Although only an engineering study can compute the precise extent of a floodplain, the Federal Insurance Agency (FIA) of the Federal Emergency Management Administration (FEMA) publish a series of flood maps that are readily available and which give an indication of major areas that are flood prone and within floodplains. Only a floodplain study, however, can accurately determine floodplain limits.

SUBSURFACE CONDITIONS AND SOILS No matter how attractive a property may look on the surface, its subsurface conditions may render it problematic for development. Soil maps that identify various soils and their development limitations (i.e. poor drainage, depth to bedrock, erodibility, high water) are available from USDA Natural Resources Conservation Service at https://websoilsurvey.nrcs. usda.gov/app A site may be underlain by impenetrable rock or an extremely high water table or it may have been used for dumping. Subsurface exploration (soil borings or test pits) should always be undertaken to determine the nature and suitability of the sub strata. Borings can be prepared or test pits can be excavated with a backhoe at strategic locations very economically. More than one developer has purchased property only to discover old cars and refrigerators buried beneath the surface.

OVERLAY DISTRICTS Often there are overlay districts in a jurisdiction. For instance, around an airport one might find an airport zone controlling the development within flight paths. Two notable overlay districts of which developers should be aware in Maryland are Adequate Public Facilities and Critical Areas.

ADEQUATE PUBLIC FACILITIES Baltimore County, Anne Arundel County, and many other jurisdictions have regulations prohibiting development in those areas where certain public facilities are inadequate.

In Baltimore County, the County Council adopts maps of the basic services in the Fall of each year. In Baltimore County, the basic services considered are traffic, sewerage and water and schools. Areas of deficient services are mapped and development is prohibited in them for the duration of the deficiency.

In Anne Arundel County, a development proposal must also have adequate public facilities including schools, traffic, water and sewer and police and fire protection. A development in an area of inadequate facilities can proceed only if the developer corrects the inadequacy.

No matter how attractive a property may look on the surface, its subsurface conditions may render it problematic for development. marylandbuilders.org

BUILD MARYLAND

19

CRITICAL AREA The Maryland Legislature adopted Section 8-1801 et. Seq. of the Critical Area Law. This law defined the Chesapeake Bay Critical Area to consist of “all land and water areas within 1,000-feet beyond the landward boundaries of state or private wetlands and the heads of tide.� The Critical Area was divided into three types of development areas: intensely developed areas, limited development areas, and resource conservation areas.

Local jurisdictions are required to identify and map each of the three areas based upon criteria established in the regulation. Intensely developed areas are predominantly comprised of existing development where there is relatively little natural habitat. Limited development areas are those which are currently developed at low or moderate intensities and which contain areas of natural habitat. Resource conservation areas are those areas which are characterized by nature dominated environments. Development is restricted in the critical areas.

ENVIRONMENTAL ISSUES HAZARDOUS WASTE The Comprehensive Environmental Response Compensation and Liability Act (CERCLA) better known as Superfund, imposes severe liabilities and risk upon real estate owners.

CERCLA defines a long list of toxic and hazardous wastes.

The Act applies to anyone with a contractual relationship to a property. In order to protect property purchasers, it is very important to have a Phase I environmental assessment performed by an environmental consultant. A Phase I includes the development history of the property, visual and other analysis to initially determine if it is likely that toxic and hazardous wastes are present. Having completed a Phase I, a property owner can then assert the Phase I assessment as a defense should environmental liability later arise.

If a Phase I indicates the possibility of toxic and hazardous wastes, a Phase II will be prescribed. A Phase II study is a more comprehensive and detailed environmental assessment that determines the presence of CERCLA defined materials. Phase III of this process is the mitigation and remediation of any wastes. Property should not be purchased without at minimum having completed a Phase I study.

FOREST CONSERVATION Maryland and various local jurisdictions have passed laws requiring forest conservation. Forest conservation requires a forest stand delineation- a study to determine the extent and nature of forest resources. The State Forest Conservation Act mandates that a certain percentage of forest is maintained (known as a threshold) and there is a mitigation requirement should clearing be proposed below the threshold. Also, there is an afforestation requirement that requires a minimum amount of forest even when there is none initially.

20

BUILD MARYLAND

May/June 17

The Federal Clean Water Act as well as state and local laws protect wetlands and provide for severe penalties if they are disturbed.

In addition, some jurisdictions like Baltimore County, have specimen tree ordinances requiring the protection of trees of a certain size and sometimes requiring special variances for their removal.

WETLANDS Wetlands are considered to be highly sensitive and valuable environmental resources. They are classified as tidal or riparian. Typically, development projects encounter riparian wetlands. The Federal Clean Water Act as well as state and local laws protect wetlands and provide for severe penalties if they are disturbed. Prior to undertaking any development projects, if the presence of wetlands is suspected, it is recommended that a qualified consultant perform a wetlands delineation and even if wetlands are not suspected it is still advisable to obtain a cursory review. Under Federal regulations wetlands must have three characteristics: hydrology, hydrophitic vegetation and hydric soils. Hydrology simply means that water is close to the surface for at least two weeks during the growing season. There are certain types of plants that will only grow in wet areas and these are a diagnostic parameter for wetlands. Generally soils contain iron, which gives them a reddish color. When soils are repeatedly underwater, the iron oxidizes anaerobically and the soils assume a dark gray or blackish color. These types of soils are called hydric soils and are identified by their color. To be considered a wetland, a soil sample must have all three characteristics.

Disturbance of wetlands can be permitted under certain circumstances and at the Federal level is under the jurisdiction of the United States Corps of Engineers. There are two types of wetlands permits; individual permits and nationwide permits, which allow for minor wetlands disturbances. The permits are difficult to obtain and the best strategy is to avoid wetlands where possible. When permits are issued, they require avoidance, minimization and mitigation.

HISTORICAL ISSUES Historical issues can radically affect property development.

Among these are gravesites. Historically, backyard burials or small family plots were common and often unmarked or documented. Disturbance of graves can result in hefty penalties and must be avoided. It is very important to reconnoiter a property prior to development. Additionally, some counties require an archeological investigation and many counties have Historic

Preservation laws prohibiting development on historic sites, generally but not always more than 50 years old. Sometimes, development will also be prohibited on historic “settings”.

Most jurisdictions, as well as the state of Maryland, maintain an inventory of historic sites that should be consulted prior to property purchase and development.

TITLE ISSUES

❚ Land Use/Zoning ❚ Condominium Development and Community Associations ❚ Real Estate Transactions ❚ Commercial Settlements ❚ Environmental ❚ Business Transactions

Title issues are an increasingly common problem. They fall into several varieties: • Covenants: It is very common for a property to be restricted by use of a covenant. For instance, a covenant may say that future lots must be a certain minimum size. Covenants are extremely difficult to remove. It’s not uncommon, especially in the Baltimore region, to find covenants against certain religious and racial groups- those of course, are no longer valid.

• Old Roads: It is also not uncommon to have old paper roads traversing properties. The problem is, every property fronting on the paper road has a non-exclusive right to the road. It’s very important to know where these paper roads are even though they may not be visible in the field and to avoid developing on them.

• Merchantable Title: Finally, just because you have a deed to a property, doesn’t mean you actually own it. A deed is only evidence of ownership and is not conclusive. Failure to possess a good title will affect all future home owners. A title search should be completed as part of any feasibility analysis of property.

L&B_07152016.indd 1

Needless to say, the entitlement of raw property while potentially very lucrative, is fraught with physical, regulatory and political risk. One of the most powerful techniques to manage that risk is a thorough feasibility study encompassing the elements that have been presented in this and the prior article in this series. Be sure to read the next article in the July/August issue that addresses the process of development and subdivision approval

David S. Thaler, PE, LS, F., ASCE, F., NSPE is the President of D.S. Thaler & Associates, Inc., a civil and environmental engineering and surveying 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 250 articles and five books, and has won numerous life time achievement awards including Icon of the Industry. 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.

❚ Tax ❚ Litigation ❚ Bankruptcy

LINOWES AND

BLOCHER LLP ATTORNEYS AT LAW

7200 WISCONSIN AVENUE ❚ BETHESDA, MD ❚ 20814 ❚ 301.654.0504 31 WEST PATRICK STREET ❚ FREDERICK, MD ❚ 21701 ❚ 301.620.1175 ONE PARK PLACE ❚ ANNAPOLIS, MD ❚ 21401 ❚ 410.268.0881

WWW.LINOWES-LAW.COM

Reliable Warranty Coverage

A Solid Foundation for Your Business

7/15/16

We Have New Home Warranties NAILED! RICH McPHEE

800-247-1812 ext. 2149

sales@rwcwarranty.com www.rwcwarranty.com/BuildMD

marylandbuilders.org

BUILD MARYLAND

21

ENGINEER’S TOOLBOX

ENVISIONING A CONSTRUCTION PROJECT IN 3D

BY MATT WEIR, RLA, A. MORTON THOMAS, INC.

When designing something new for clients, something unusual, design teams generate a lot of data, drawings, and details. Plan sheets depict every detail of the project to the fraction of an inch to ensure precise construction. But what will it look like when finished? How will it function? A designer or builder can interpret the plan sheets and CAD drawings, but how will the public and client fully understand what we as designers are doing for them?

Advances in digital visualization technologies have long enabled architects to create colorful renderings that pitch their architectural ideas to clients, stakeholders and the public. But how can landscape architects and civil engineers apply these technologies on a miles-long stretch of roadway? Line drawings and elevations can give viewers a sense of the road geometry, but only go so far in truly conveying the experience of driving a new roadway, not to mention its unique amenities and pastoral landscape.

On AMT’s Southgate Drive project at Virginia Tech, designers needed a

22

BUILD MARYLAND

May/June 17

way to convey the experience of driving the roadway, including how to navigate the new double diamond interchange.

Stakeholders were also focused on maintaining the university’s rural feel amidst the addition of the major roadway project. AMT’s Landscape Architecture and Ecosystem Services Team developed a series of videos that allowed viewers to virtually “drive” the length of the roadway. The videos include all aspects, details and disciplines involved with the design of the roadway, including traffic, planting, bridges, lighting and signage.

Perhaps most importantly, the video

accurately portrays the views to and from the roadway. The video distills 1,300 pages of construction documents into one complete, visually accurate representation of the project. Anyone who views the videos will fully understand what the project will look like next year once the project is complete.

The use of the videos evolved over time. Originally, they were intended to convey the aesthetic design intent, reach collaborative design consensus, and achieve clear communication between the client and designers. Their use and applicability, however, quickly grew. Eventually, the videos were made available online so that anyone with an internet connection could experience a digital drive-through. The videos were even used for classroom instruction at the university – a fitting use given the

project’s educational setting. The next generation of designers will build upon the lessons learned by the video to drive forward innovation, advance their own design professions and satisfy their clients. It is difficult to imagine another digital medium accomplishing everything the videos achieved.

Matt Weir, RLA, is a Project Landscape Architect at AMT’s Rockville office. His projects analyze past uses, current needs, and future demands; balance environmental/cultural resource preservation with responsible planning; afford social/physical connectivity of people with places; and ensure the health, safety and welfare of users. He can be reached at 301-881-2545 or mweir@ amtengineering.com.

marylandbuilders.org

BUILD MARYLAND

23

STATS & FACTS

STATS & FACTS THE RIGHT TIME, THE RIGHT PLACE

BY BEN SAGE, METROSTUDY’S MID-ATLANTIC REGION

T

he year 2017 will mark the 50th anniversary that Thurgood Marshall was nominated and confirmed to the United States Supreme Court, the court’s first African American justice. The descendant of a slave, Marshall was born and raised in Baltimore, and he went to Howard University School of Law. Before serving on the Supreme Court, he argued 32 cases before the court, winning 29 of them.

When Lyndon Johnson nominated him, the President said it was “The right thing to do, the right time to do it, the right man and the right place.”

Timing is everything. Even for home shoppers, a home purchase has to be the right thing to do, the right time to do it, and the right place to buy. Timing such a large purchase depends mostly

on factors specific to each individual family, but there are macro considerations as well.

• Mortgage rates • Home price trends • Economic cycle/job security Ideally, home shoppers can take advantage of economic cycles by buying when mortgage rates are low, homes are under-valued, and job security is growing. Fannie Mae attempts to measure some of these factors with their Home Purchase Sentiment Index (HPSI), which is based on a monthly survey of 1,000 households going back seven years. This index reached 88 in February, a record high for this young survey.

Five of the six components that make up the index measured strong gains, led by the increase in the number of households that believe it is not only a good time to buy, but also a good time to sell

a home. Furthermore, respondents indicated a growing belief that home prices will go up in the next 12 months, which represents a steady improvement from the end of last year.

Those households surveyed also expressed more confidence in their personal finances as well as the overall economy, both measures reaching a survey high in February. Part of the increasing financial confidence displayed by households is reflected in the assessment of their own job security. Only 11 percent expressed concern about losing their job, compared to 23 percent only three years ago. Respondents feel much better about the overall economy as well. The percent that feel the economy is on the “wrong track” is way down to 35 percent. The previous low was 45 percent two years ago, and it averaged 55 percent from 2012 to 2016.

Fannie FannieMae Mae––National NationalHousing HousingSurvey Survey

Fannie FannieMae Mae––National NationalHousing HousingSurvey Survey

F

Home HomePurchase PurchaseSentiment SentimentIndex Index(HPSI) (HPSI)

Households Householdsthat thatsay sayit itisisa a“Good “GoodTime TimetotoSell” Sell”

H

9595

60% 60%

60% 60%

50% 50%

50% 50%

40% 40%

40% 40%

30% 30%

30% 30%

20% 20%

20% 20%

10% 10%

10% 10%

0%0%

0%0%

9090 8585 8080 7575 7070 6565 6060 5555 5050 11 1111 1111 1112 1212 1212 1212 1213 1313 1313 1313 1314 1414 1414 1414 1415 1515 1515 1515 1516 1616 1616 1616 1617 17 ay ay g g v v b b ay ay g g v v b b ay ay g g v v b b ay ay g g v v b b ay ay g g v v b b ay ay g g v v b b M M Au AuNo NoFe FeM M Au AuNo NoFe FeM M Au AuNo NoFe FeM M Au AuNo NoFe FeM M Au AuNo NoFe FeM M Au AuNo NoFe Fe

24

BUILD MARYLAND

May/June 17

11 1111 1111 1112 1212 1212 1212 1213 1313 1313 1313 1314 1414 1414 1414 1415 1515 1515 1515 1516 1616 1616 1616 1617 17 ay ay g g v v b b ay ay g g v v b b ay ay g g v v b b ay ay g g v v b b ay ay g g v v b b ay ay g g v v b b M M Au AuNo NoFe FeM M Au AuNo NoFe FeM M Au AuNo NoFe FeM M Au AuNo NoFe FeM M Au AuNo NoFe FeM M Au AuNo NoFe Fe

11 ay ay M M Au

16 17 b Fe

Fannie Mae – National Housing Survey Household Assessment of Employment/Economy 60%

50%

40%

30%

20%

Personal Finances Will Get Better

10%

Economy on “Right Track”

0% ay

M

11 11 11 12 y 12 12 12 13 y 13 13 13 14 y 14 14 14 15 y 15 15 15 16 y 16 16 16 17 v v v v v v g g g g g g b a b a b a b a b a b Au No Fe M Au No Fe M Au No Fe M Au No Fe M Au No Fe M Au No Fe

The very positive results of the latest Fannie Mae survey are reflected locally in the resale home market. Home sales volume in Maryland is up while listings are way down from one year ago. The under-supplied resale market will also result in higher home prices, so affordability will be an ongoing challenge as mortgage rates are also expected to rise.

Hopefully, this will be offset by increasing job security, rising wages, and more homebuyer confidence in the region.

Consumers already missed out on the best time to buy a home (2016), but it remains an extremely good time to buy as mortgage rates are still historically low, and we appear to be in the early stages of a rising home-price environment (builders will applaud that). Just as the timing was right for Thurgood Marshall 50 years ago, it is the same for would-be homeowners today in Maryland.

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.

Our long standing land planning expertise enables us to infuse past experience and lessons learning into every project A national firm with a local presence Baltimore • Frederick • Lanham • Rockville www.dewberry.com

marylandbuilders.org

BUILD MARYLAND

25

NEW PRODUCT SPOTLIGHT

ENSURE THE INTEGRITY OF YOUR PIPING SYSTEM INSTALLATION Builders and contractors across America trust FlowGuard Gold to reliably deliver clean, safe drinking water. But on a recent tour of jobsites in Central Florida, it was discovered that several installers were installing their FlowGuard Gold piping using non-FlowGuard Gold fittings.

While this practice might help the plumber save a few pennies, this can be a dangerous practice for plumbers and builders who want to enjoy the reliability of a complete FlowGuard Gold system.

Not all CPVC materials are the same, Non-FlowGuard Gold CPVC compounds have been found to have both significantly lower pressure bearing capabilities and significantly

26

BUILD MARYLAND

May/June 17

lower impact resistance. When tested at elevated temperatures and pressures, a FlowGuard Gold fitting will last up to four times longer than a non-FlowGuard Gold fitting.

For builders who need a higher safety factor, FlowGuard Gold fittings are the only fittings made from pressure rated materials, which contribute to the superior performance of a complete FlowGuard Gold system.

HOW CAN YOU TELL IF YOU’RE USING A COMPLETE FLOWGUARD GOLD SYSTEM? Your purchasing manager is your first line of defense – they should always insist on only FlowGuard Gold CPVC fittings.

When the fittings arrive, the boxes and/or bags should also be marked with the FlowGuard Gold logo – if you don’t see the logo on the packaging, you might not be getting FlowGuard Gold fittings.

In the field, you can also look for markings on the fitting itself.

Fittings marked either Charlotte or NIBCO are guaranteed to be made from FlowGuard Gold materials.

If you have fittings marked BOW or Genova, contact the manufacturer to confirm if they are FlowGuard Gold fittings.

If the fittings have any of the following names, they are not FlowGuard Gold and will not provide the

high level performance you can expect from a FlowGuard Gold fitting: • Spears • KBI • Lasco Learn more about how FlowGuard Gold compares to other CPVC materials at www.flowguardgold.com/product-comparison/vs-other-cpvc.

When tested at elevated temperatures and pressures, a FlowGuard Gold fitting will last up to four times longer than a non-FlowGuard Gold fitting

Expertise + Solutions = Happy Customers At Severn, we close mortgages quickly because we originate, underwrite and service our loans under one roof. Our knowledgeable lending team works with you to develop a draw schedule that meets the timely financial needs of all parties.

A true community bank with a full line of products and programs.

That’s why Severn is the best resource for builders.

• Construction/Rehab Loans • Portfolio/Bridge Loans • Doctor/Professional Program • Fast, In-House Process through Funding

• Super Jumbo Loans - Over $1 Million • Low/No Down Payment Options • First Time Homebuyer Programs • Common Sense Community Bank

Call or visit us today severnbank.com • 410.260.2000 Severn Bank is a trade name used by Severn Savings Bank FSB.

marylandbuilders.org

BUILD MARYLAND

27

new MEMBER NEW MEMBER SHOWCASE

SHOWCASE

Our goal is to spread the word about Smart Automation Solutions and also to educate the membership about how all of this new technology can help them to sell homes faster in this new millennium.

Kenny Salzman Director of Business Development, Smart Automation Solutions HOW LONG HAVE YOU BEEN WITH YOUR COMPANY AND WHAT IS YOUR ROLE?

ARE YOU INVOLVED WITH ANY MBIA COMMITTEES?

ANY BUSINESS TIPS CAN YOU SHARE WITH OTHERS?

Smart Automation Solutions was founded in 2008 by our President Gary Flax, and he hired me in January 2016 as Director of Business Development.

My role is to develop and grow longterm relationships with custom builders, architects and interior designers.

Yes, I’m active on the Custom Home Builders committee. I have attended several meetings and I’m learning about the challenges our members face in dealing with local governments, regulations and assessments, and how complex their world is. I’m doing my best to study the key issues, so I can be an active participant in future challenges.

Practice the golden rule - treat others as you want to be treated. Also, I suggest reading the Seven Habits of Highly Effective People. I read that book over 20 years ago, and I refer back to it several times a week.

WHAT’S A FAVORITE MOMENT IN YOUR CAREER SO FAR?

I am a member of Board 12 IAABO-International Association of Approved Basketball Officials and the BNI Capital Business Alliance.

WHY DID YOU JOIN MBIA AND WHAT DO YOU HOPE TO GAIN FROM YOUR MEMBERSHIP? WAS THERE SOMEONE WHO INFLUENCED YOU TO JOIN? I was looking for a way to meet our target audience (custom home builders, architects and interior designers), and after speaking with Josh Rosenthal of Cabin John Builders, he suggested I join MBIA. The timing was right, as the next day I attended a networking event, and met several builders and architects in a very intimate setting. That sealed the deal and we joined right away.

Our goal is to spread the word about Smart Automation Solutions and also to educate the membership about how all of this new technology, when integrated in a new home, can help them to sell homes faster in this new millennium.

28

BUILD MARYLAND

May/June 17

A truly memorable moment was winning the Distinguished Performer Award when I was a Regional Manager with Ciba-Vision. My wife and I went on an all-expenses paid trip to the Big Island of Hawaii.

HOW OLD WERE YOU WHEN YOU HAD YOUR FIRST PAYING JOB AND WHAT WAS IT? When I was 17 I was a camp counselor at a sleepaway camp in the Poconos.

ARE YOU INVOLVED OR ACTIVE IN ANY OTHER CIVIC OR COMMUNITY GROUPS OR ACTIVITIES?

WHAT IS YOUR FAVORITE APP OR SOCIAL MEDIA OUTLET? LinkedIn. As with anything else, you get out of LinkedIn what you put into it.

I make an effort to spend at least 10-15 minutes a day in LinkedIn. It allows me to get the word out about our company, industry, and other related subjects to a large audience.

WHAT IS YOUR DREAM VACATION SPOT? My wife and I took a dream vacation to Italy, but Australia is on our wish list; beautiful beaches and lots of friendly people.

IF YOU COULD HAVE A CONVERSATION WITH ANYONE IN HISTORY, WHO WOULD IT BE? That would be Steven Covey; his book, the Seven Habits of Highly Effective People

is just an amazing example of what a great man and person he was. I would love to have known him.

DO YOU HAVE A FAVORITE QUOTE? “To me, there are three things we all should do every day. We should do this every day of our lives. Number one is laugh. You should laugh every day.

Number two is think. You should spend some time in thought. And number three

is, you should have your emotions moved to tears, could be happiness or joy. But think about it. If you laugh, you think, and you cry, that’s a full day. That’s a heck of a day. You do that seven days a week, you’re going to have something special.” – Jimmy Valvano GUILTY PLEASURE: WHAT CAN YOU NOT LIVE WITHOUT? Coke Zero

marylandbuilders.org

BUILD MARYLAND

29

NEW MEMBERS & REINSTATEMENTS

FEBRUARY/MARCH 2017 BUILDER The BurnBrae Companies Alan Margolius 7910 Woodmont Ave., Suite 1165 Bethesda, MD 20814 240-802-2670 alan@burnbraeco.com

REMODELERS ADR Builders Bret Stokes 1850 York Rd., Suite H Rear Timonium, MD 21093 410-561-0221 bret@adrbuilders.com www.adrbuilders.com Kitchen Saver Tish Coale 10315 South Dolfield Rd. Owings Mills, MD 21117 800-427-0108 leads@kitchensaver.com www.kitchensaver.com

ASSOCIATES Boise Cascade Building Materials Distribution, LLC Kenneth Katona 7700 Rolling Mill Rd., Suite 6 Baltimore, MD 21224 410-288-8400 kenkatona@bc.com www.bc.com

Bregman, Berbert, Schwartz & Gilday, LLC Fancoise Carrier 7315 Wisconsin Ave., Suite 800 West Bethesda, MD 20814 301-656-2707 fcarrier@bregmanlaw.com www.bregmanlaw.com

Lubrizol Corp.

Rich Tabeling 1231 Ontario St. Havre De Grace, MD 21078 410-940-8867 rich.tabeling@lubrizol.com www.lubrizol.com/cpvc

CRIMPCO, INC. Amy Pushkin 4311-B Old Milford Mill Rd. Baltimore, MD 21208 410-361-0024 apushkin@crimpcosecurity.com www.crimpcoinc.com

Navy Federal Credit Union John Goicoechea 12851 Worldgate Dr. Herndon, VA 20170 703-999-1975 john_goicoechea@navyfederal.org

Eagle Title, LLC Terrence Liff 181 Harry S. Truman Pkwy., Suite 200 Annapolis, MD 21401 410-266-3600 tliff@eagletitlellc.com www.eagletitlellc.com Fidelity First Home Mortgage Dan Eubanks 707 Bestgate Rd. Annapolis, MD 21401 410-266-2544 dan@fidelityfirst.net www.fidelityfirst.net

Ply Gem / Canyon Stone Frank Hurst 409 Northbrook Rd., Youngsville, NC 27596 909-562-5005 fhurst@canyonstone.com www.canyonstone.com Stewart Moving & Storage Martin Zepeda 1117 Wilso Dr. Baltimore, MD 21223 410-646-0600 mzepeda@stewartms.com www.stewartmovingandstorage.com/ baltimore

First National Bank “FNB” Bob Mowrey 1505 York Rd. Lutherville, MD 21093 410-404-0095 mowreyr@fnb-corp.com

MBIA has lots of opportunities for you to join us online. LinkedIn is one of those platforms and we‘ve made it easy for you to connect with us.

Individuals and companies use LinkedIn for networking, job searching, hiring, company research and connecting with affiliates, including alumni, industry colleagues, and a variety of other business related groups. That’s where we come in. MBIA has two groups on Linkedin; one for members and one for non-members.

According to the experts, “LinkedIn Groups are virtual meeting rooms (or forums) where people with similar interests can post and hold conversations around topics they want to share or learn more about.” Participating in Groups allows you to demonstrate your expertise around a subject and to grow relationships with likeminded people. Many of these people may be colleagues, who could offer solutions to certain challenges you’re facing, or could provide partnership opportunities to help grow your business in the future.

By sharing your expertise, participating in conversations and being a reliable source of information within our MBIA Group, you’ll have the opportunity to build valuable relationships to help you do more business.

All you have to do is request to join, and if you are a member in good standing, you’ll be approved for the members-only group. We look forward to seeing you there.

30

BUILD MARYLAND

May/June 17

STARS CLUB

DGG-MC Dewberry Residential Title & Escrow SunTrust Mortgage Wells Fargo Home Mortgage

84 Lumber Andersen Windows

Continental Title Group Elm Street Development Linowes & Blocher McMillan Metro Miles & Stockbridge

Builders Mutual Insurance Caruso Homes Charles P. Johnson & Associates The Creig Northrop Team of Long and Foster Real Estate Geo-Technology Associates, Inc. Gutschick, Little & Weber Insurance Associates Lerch, Early & Brewer Robert A. Tull Plumbing Rutter Project Management Shulman Rogers Sterling Mirror & Glass Walton Development & Management, Inc. Winchester Homes

Chesapeake Employers Insurance K. Hovnanian Morris & Ritchie Associates Pleasants Development Pulte Homes Saratoga Insurance Shelter Systems

Rodgers Consulting Sandy Spring Bank Soltesz T.W. Perry Versatex Trimboards

Admiral Spacemaker, Inc Ballard Spahr Bozzuto Homes Day Development Co., LLC/ Greentree Homes Dico EYA Miller and Smith Macris Hendricks & Glascock, PA Mid-Atlantic Builders, Inc. Mitchell Best Homes Stantec Consulting Services Wetland Studies & Solutions

BUILDER’S BOOKSHELF

Check out this Top Seller from NAHB. As an MBIA member you are automatically an NAHB member and are entitled to great discounts on publications, software, brochures and more.

BUILDING AN APPETITE “Building an Appetite” was created to honor the memory of Doug Wistner, the son of Granger and Kathy MacDonald. It is a compilation of recipes submitted by NAHB members and their families, as well as staff. All proceeds will go to the National Housing Endowment’s Doug Wistner Educational Fund.

NAHB Member Price is $25.00.

Visit www.nahb.org/products and search Building an Appetite.

32

BUILD MARYLAND

May/June 17

ADINDEX Builders Mutual Insurance............ BC California Closets........................... 9 Chesapeake Employers Insurance.. 7 Dewberry..................................... 25 GE ............................................. IBC Linowes & Blocher........................ 21 Mid Atlantic Propane Gas Association... 3 NAHB............................................31 Residential Warranty.................... 21 Saratoga Insurance.......................15 Severn Bank................................. 27 Shulman Rogers............................15 Vintage Security.......................... IFC Wetland Studies........................... 23 Zoeller.......................................... 29

Slate

THE FINISH FOR EVERY STYLE. No wonder the Slate finish is such a hit.

Its matte finish completely hides fingerprints.

It holds magnets. It’s available on over 50 products. But the biggest reason people love Slate? It blends with everything from classic to eclectic to modern to chic.

AD

For information on GE Appliances Builder Programs, please contact GE Appliances Regional Manager Brian Wooden at brian.wooden@ge.com.

marylandbuilders.org

BUILD MARYLAND

3

Giving my crew the tools to work smarter.

Putting people’s safety ahead of profit.

Choosing Builders Mutual insurance.

That’s how I get the job done right.

BuildersMutual.com