BUILD Maryland September/October 2016 by Maryland Building Industry Association

September /October 2016 The exclusive magazine of MBIA

THE 2016 PROS AWARDS It Takes a Team to Raise a House

SUSTAINABLE DESIGN AND THE BOTTOM LINE

MBIAâ&#x20AC;&#x2122;S GOLF CLASSIC

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.

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IN THIS ISSUE

14 FEATURES COVER FEATURE

THE PROS AWARDS The Best from Construction to Customer Service

SUSTAINABLE DESIGN AND THE BOTTOM LINE The Benefits of Building Green

THE TROUBLE WITH COLLEGE The Impact on First-Time Home Buying

MBIA’S GOLF CLASSIC Teeing Off at Turf Valley

IN EVERY ISSUE 2

EVENTS CALENDAR

26 ENGINEER’S TOOLBOX

34 NEW MEMBERS

PRESIDENT’S MESSAGE

28 STATS & FACTS

35 ADVERTISER INDEX / DID YOU KNOW

CEO’S MESSAGE

30 NEW PRODUCT SPOTLIGHT

LEGAL BRIEF

32 NEW MEMBER SHOWCASE

36 STARS CLUB / BUILDERS BOOKSHLEF

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EVENTS CALENDAR November/December 2014 Vol. 56 Issue 4

TIC BUIL

Custom Builders & Real Estate Finance Committee’s Joint Networking Event

MBIA Board Meeting & Reception

R C O M ME

N LA

OCTOBER

E M I D -AT

SEPTEMBER

MBIA Fulton, MD September 14

AT I V E I

Gordon Feinblatt Baltimore, MD A Photo Tour of HBAM Builder MartSeptember 7

Upper Chesapeake Chapter Crab Feast

Also

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

Chef Night & Heather Winkel, Art Director Silent Auction

President’s Message

Ad List

Corinne Thompson, Graphic Designer Martin’s West Network Design Group ndg@networkmediapartners.com Baltimore, MD

October HBAM LEGAL19 COUNSEL Linowes and Blocher

MID-ATLANTIC BUILDER

Gov. Hogan Reception

is a publication of HBAM Member Services, Inc., a subsidiary of the Home Builders Association of Maryland, Inc., 6030 Daybreak Circle #A150 PMB 362 Belmont Manor Clarksville, MD 21029 410-265-7400, Elkridge, www.homebuilders.org. MD

OctoberSend 27address changes to Postmaster: Home Builders Association of Maryland, Inc., 6030 Daybreak Circle #A150 PMB 362 Clarksville, MD 21029 ECO BOX Mid-Atlantic Builder text and cover pages are printed on SFI certified Anthem Plus Gloss using soy ink.

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

listed on our calendar do occur. Please visit www.marylandbuilders.org for the Our future. A latest closerinformation. look at

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

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.

*Changes in dates and locations of events Looking Ahead

the Maryland Building Industry Association BUILD MARYLAND

Building relationships that last a lifetime.

A look at HBAM members featured on the hit television show.

28 Q&A

38 Merger

Harford County Equestrian Center Bel Air, MD Builder’s Story September 15

34 Extreme Makeover

Events Awards Publications Staff

October 6

ADVERTISING

DESIGN

American Tap Room Bethesda, MD September 6

PWB’s Wine & Cheese Networking Event 4 Past Presidents

GALA Awards

EDITOR

Kristin Josephson Hogle, McLean Hilton Communications Director McLean, VA communications@homebuilders.org

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 Market Place, Fulton, MD 20759, USA. © 2016 MBIA. All rights reserved. MBIA West will continue to make a positive

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impact in our communities through charitable foundation. September/October 16

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BUILD MARYLAND

PRESIDENT’S MESSAGE

The exclusive magazine of MBIA

BUILDING FOR THE FUTURE

elcome back from your summer vacation. I trust that everyone had a relaxing break. Summer is a time to enjoy family and friends. It is also a time when many of us pave the foundations for our future business plans. Having time to rest and rejuvenate can be just the thing we need to clear our heads and think of our future endeavors. Fall is the time to get back to work and put new ideas into practice – lay the ground work now for future successes. While you were resting, however, our MBIA team was hard at work planning and organizing a full schedule for the rest of the year. The next several months are chock full of networking events, like one of our most popular, Chef Night. With this year’s them being OKTOBERFEST, it’s sure to be a party not to be missed. Also ahead are educational opportunities, committee and chapter meetings plus working to get a seat at the table with important decision makers who affect our industry. Take a look at the online calendar of events and make a point to take advantage of all the MBIA has to offer. One of our annual signature events is the PROS awards, which took place this year on a sunny June day at Smokey Glen Farm in Gaithersburg. I can think of no better way to recognize and reward the best of our field and office personnel. Such recognition helps to improve morale and keep a motivated work force. In this issue you will find the list of deserving winners and pictures from the PROS picnic. What a great opportunity to give the people who build our homes a well-deserved pat on the back. It’s never too early to start thinking about who you will nominate NEXT year for a 2017 PROS Award. Also in this issue, you will read about sustainable design. This is something that is important to the future of our industry. By incorporating one or more sustainable design strategies into your homes, you can reduce long term operating costs, minimize the use of precious resources, and help lessen our impact on the planet. Sustainable design and green building practices are important attributes to many of our young buyers. Speaking of those future buyers, a well-educated work force is crucial to a thriving economy. Our workforce in Maryland is consistently recognized as the most highly educated in the country. There is a downside to this and that is the amount of debt that many young people are burdened with when they graduate from college. We need some solutions so that the next generation of homebuyers is not disqualified from achieving the American dream. Helping younger buyers lay the ground work to maintain good credit is important to keeping housing affordable. I am sure many of us who are parents of college age children will read the article on the negative effects of student debt with great interest. Start building your foundation now. Don’t forget to make the MBIA events a part of your plans for the future.

DAVID LUNDEN President, MBIA

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September/October 16

2016 MBIA LEADERSHIP EXECUTIVE COMMITTEE President, David Lunden 1st Vice President, Steve Breeden Vice President Advocacy/ State, Mike McCann Vice President Advocacy/ Washington Market, Hillary Colt Vice President Advocacy/ Baltimore Market, Steve Smith Vice President Advocacy/ Eastern Shore, Jeff Caruso Vice President, Associates, Peggy White Treasurer, Kimberly Palmisano Secretary, Mike Schueler Life Director, Mark Bennett Immediate Past President, Tom Baum Legal Counsel, Jack Orrick

CHAPTER PRESIDENTS Advocacy/Anne Arundel County, Jim Krapf Advocacy/Baltimore City, Sean Davis 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, Joe Fleury Custom Builders Council, Larry Cafritz Green Building Council, Tom Marsten Land Development Council, Sandy Marenberg Multifamily Housing Council, vacant Professional Women in Building Council, Maggie Witherup Remodelers Council, Joe Smith Sales & Marketing Council, Yvonne Deardorff

MEMBERS AT LARGE Brian Afnan Tim Ellis Miti Figueredo Howard Katz Mark MacFarland

Timothy Morris Cindy Plackmeyer Dusty Rood Robert Spalding Alex Villegas

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

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CEO MESSAGE

TAG, YOU’RE IT

ave you noticed our tagline, “Advocate | Educate | Network | Build” on our email signature and marketing materials, recently? We developed that tagline after a strategic planning session with the executive committee earlier this year. We wanted to make it clear to the membership and to the public what we are striving to achieve and the value we are providing. We held an event recently that really resonated with me and brought our tagline to life. Toby Bozzuto, President and Chief Executive Officer of the Bozzuto Group joined the MBIA Multifamily Council for a “Food for Thought” session to share his insights on the state of the multifamily industry. The lunch event was well attended and proved to be a great opportunity for our members to gain access to one of the biggest players in the multifamily industry in our region. Bozzuto manages over 50,000 apartment units reaching from Chicago to Boston and down to Nashville. Mr. Bozzuto described the company perspective as “one foot in history and one in the future.” He said that statement keeps them grounded while allowing them to prepare for upcoming trends and maintain a vision for their future. He fully detailed the four divisions of their company; management, development, home building and construction and shared how Bozzuto carefully balances the staff in each division to stay competitive while maintaining a productive and efficient workforce. He gave examples and offered real life scenarios. He was generous in sharing his vision for the next decade of the real estate industry and explained that he sees the market slowing down in the next two years then picking up again with a vengeance. He was happy to share details of Bozzuto’s marketing studies and surveys to the packed room of industry professionals, many of whom are his competitors. He explained the wants and needs of the demographic groups buying now, and how he sees their role in the future of housing. He touched on the affordability crisis in housing and explained how the cost of land, labor and construction are making it difficult to keep prices down. He then went on to say, “We owe it to our world to provide housing that people can afford.” I was so impressed with his willingness to share his valuable knowledge in order to make all of us better. Our “Advocate | Educate | Network | Build” tagline immediately came to mind. Toby Bozzuto joined us and educated us, networked with us, told us how to build for the future, all the while advocating for our industry and our people. We are lucky to have members like him who are willing to impart their knowledge. Our membership is full of intelligent, experienced and insightful people. Use those skills! Be an educator, be an advocate, be a mentor, be an active member in YOUR association.

LORI GRAF CEO, MBIA

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September/October 16

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LEGAL BRIEF

CAN GOVERNMENT’S FAILURE TO ACT RESULT IN INVERSE CONDEMNATION? By Stephen Orens, McMillan Metro, P.C.

The answer is “YES” according to an opinion by Judge Glen Harrell, in Litz v. Maryland Department of the Environment: “As a matter of “Maryland law’ an inverse condemnation claim is pleaded adequately where a plaintiff alleges a taking caused by a governmental entity’s or entities’ failure to act, in the face of an affirmative duty to act.” The Litz decision percolated out of numerous failing septic fields in Caroline County where Ms. Litz’s family operated a popular lake-front recreational campground on Lake Bonnie. The Town’s municipal surface water open drainage collection system received groundwater and surface water from roads. The septic systems began to fail, and overflowed into the open drainage system contaminating the streams that led to the contamination of Lake Bonnie. Unable to operate the campground because of the pollution to her lake, Ms. Litz lost the property through foreclosure. The Caroline County Health Department found three problems including raw sewage or waste water in the drainage collection system. In 1995, the Health Department concluded that the “use of the stormwater management system in the Town as a sewage system has gotten to crisis proportions.” In December 1995 the Maryland Department of the Environment stated that “[t]here are actual water quality impacts on Lake Bonnie. . .” In 2004, the Health Department issued warnings to the town about issuing additional building permits for areas with water and sewage concerns. Ms. Litz sued the State, the Maryland Department of the Environment, the Caroline County Health Department and the Town of Goldsboro claiming inverse condemnation against each

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alleging that, “Even with these warnings, ‘the Town has failed to comply with any of the material terms of the Consent Order and MDE has enforced no part of it.” The Court concluded that Ms. Litz stated a facial claim for inverse condemnation against all respondents and that a claim for inverse condemnation is not covered by the notice provisions of either of the two tort claims acts. Ms. Litz contended that the failure of the government agency respondents to address the pollution and sewage problems led directly to the substantial devaluing of her property and to its ultimate loss. The majority of the Court acknowledged that “A difficulty with Ms. Litz’s claim of a “taking” fitting neatly within conventional thinking about inverse condemnation is that her allegations focus predominantly on the inaction of Respondents, rather than any affirmative action by those parties. There is no controlling Maryland law that we could find that sheds light on this wrinkle. The Court, citing College Bowl v. Mayor & City Council of Baltimore and United States v. Clarke, reiterated that: An inverse condemnation claim is “a shorthand description of the manner in which a landowner recovers just compensation for a taking of property when condemnation proceedings have not been instituted.”

September/October 16

Essentially, a plaintiff may “recover the value of property which has been taken in fact by the governmental defendant, even though no formal exercise of the power of eminent domain has been attempted by the taking agency. The Supreme Court explains that a government is liable for inverse condemnation if it “forces some people alone to bear public burdens which, in all fairness and justice, should be borne by the public as a whole.” The Litz opinion acknowledged that, “To state a claim for inverse condemnation, a plaintiff must allege facts showing ordinarily that the government action constituted a taking.” The Court explained that inverse condemnation may arise in multiple ways such as the denial by a governmental agency of access; regulatory actions that effectively deny the physical or economically viable use of the property; a physical invasion of the property; hanging a credible and prolonged threat of condemnation over the property in a way that significantly diminishes its value; and conduct that effectively forces an owner to sell. Concluding that there was no controlling Maryland law, the Majority looked to other jurisdictions for guidance and concluded that: it seems appropriate (and, in this case, fair and equitable, at least at the pleading stage of litigation) to recognize an inverse condemnation claim based on alleged “inaction” when one or more of the defendants has an affirmative duty to act under the circumstances. The Court Majority then held “as a matter of Maryland law, that an inverse condemnation claim is pleaded adequately where a plaintiff alleges a taking

caused by a governmental entity’s or entities’ failure to act, in the face of an affirmative duty to act.” The government respondents contended that the pollution of Lake Bonnie was caused by failing septic systems owned and maintained by private parties, not the government agencies. However, according to the Majority opinion, “It is not merely a case of a property right being affected adversely by private third parties solely and exclusively. Ms. Litz’s property was alleged to have been “condemned” by the failure of the State and Town in the face of an affirmative duty to abate a known and longstanding public health hazard.” *** “it is not friv-

olous to hypothesize that state, county, and municipal agencies may have duties to step in to protect the public health, as illustrated by the execution of the 1996 Consent Order. Although agreeing that Ms. Litz stated adequately a claim for inverse condemnation, the majority opinion concluded that: “we caution that our decision should not be seen by any party as either an unqualified victory or calamity. Ms. Litz may not succeed ultimately on her inverse condemnation claim against any or all of the Respondents. We conclude only that it was improper to decide as a matter of law, at the present stage of the

litigation that Ms. Litz failed to state a claim for inverse condemnation. Her entitlement to relief may become clearer or blurred after the respective sides have the opportunity to conduct discovery and argue the law of liability.” Steve Orens practices land use, administrative litigation and real estate law at McMillan Metro, P.C. Steve concentrates his practice in the areas of zoning, municipal law, litigation and land use regulationand he can be reached at 240-778-2324 or at www.mcmillanmetro. com. Please note that internal legal citations are available upon request.

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SUSTAINABLE DESIGN AND THE BOTTOM LINE

BY DUSTIN WATSON, INPLACE DESIGN

ommunities across the nation are gradually becoming aware that our current patterns of growth, which have shaped the United States for the last half-century, are unsustainable. There is a lot of pressure on development teams to build more sustainable communities - and with good reason. Buildings represent 30% of global carbon emissions and 40% of raw materials and worldwide energy consumption. Hard to believe, but buildings consume more energy than the transportation industry! Over the next 25 years, carbon emissions from buildings are projected to grow faster than any other sector in the United States, according to the US Green Building Council. Yet, despite the environmental consequences, sustainable building practices are still not entirely mainstream. The number one reason often cited for not embracing sustainable development is a higher perceived cost. For a long time, green buildings were more expensive so it is no wonder that this belief still survives. And when building owners and developers are under the gun to control costs and remove excess line items, the perceived expensive environmental materials and sustainable design practices are among the first to get cut. THE PUSH FOR SUSTAINABLE DEVELOPMENT The good news, however, is that consumers are pushing for more environmentally-friendly designs. Sustainable development has slowly inched its way towards day-to-day design and construction. The development industry has come to realize they need to embrace it in order to maintain a competitive advantage. What may have started off to many as a marketing tool, has quickly developed into a fundamental part of their investment. Now, some tenants are willing to pay more for green buildings. The Cleveland State University report found that nine percent of businesses would be willing to pay more for sustainable features. Indoor air quality and access to natural light were the top two features where they would be willing to shell out more. In fact, McGraw-Hill Construction’s report, “World Green Building Trends—Business Benefits Driving New and Retrofit Market Opportunities in Over 60 Countries,” client demand and market demand – 35% and 33% respectively - were the top two reasons the global green building market grew to $260 billion in 2013, including an estimated 20% of all new U.S. commercial real estate projects.

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But it’s not just consumers pushing for sustainable design and development. The U.S. General Services Administration (GSA) - one of the largest and most diversified public real estate organizations with 8,600 owned and leased assets and nearly 354 million square feet of rentable space - found high-performing green buildings provide the best value for the taxpayer. GSA’s 12 earliest green federal buildings studied shows energy use down 26% while occupant satisfaction is up 27%. More importantly, the buildings that use an integrated design approach, deliver significantly better results with 45% less energy consumption, 53% lower maintenance costs, and 39% less water use. While government policies and increasing public demand are driving the desire for more efficient development, the construction industry is making the transition to cleaner technology and building practices, but progress is slow. Even though green construction is gaining market share, new construction and building refurbishment are still mostly conventional. The perceived escalation in costs frequently exceeds the actual costs. Studies have also shown that green buildings can actually cost the same as conventional buildings and this is becoming more accurate as green building becomes more widespread. SUSTAINABLE DEVELOPMENT: A CLOSER LOOK The concept of sustainable development is based on broad principles related to the form, character, and function of community development. The conventional patterns of development have intensified pressures on vulnerable resources such as land, water, air, wildlife, nonrenewable energy supplies and other environmental amenities. Sustainable development is an approach that mitigates the impact of suburban development on these resources while

addressing how we accommodate growth in a way that enriches the environment, our social capital and the economy. Sustainable development policies have the potential to effect real change and provide economic, environmental and social benefits. There is extensive agreement among researchers and planning professions that uninhibited development imposes significant costs to society and that sustainable development can reduce those costs. Sustainable development is the antithesis of much of the land use development that has existed during the last half of the twentieth century. This period was characterized by increasing sprawl, more dependence on automobile use, increased traffic congestion, disconnected neighborhoods, and increased air pollution. U.S. population is projected to increase from 324 million in 2016 to 345 million in 2025. That means in less than a decade, we will need to house, feed, and transport an additional 21 million people. To put it in perspective, we are talking about an increase that is nearly three times the size of New York City! Growth is not only unavoidable but it is also an important component to the economy and the communities it supports. Instead of debating growth, or no growth, we should be delineating patterns of development that accommodate growth, protect the environment and improve a communityâ&#x20AC;&#x2122;s quality of life.

This single family house was designed to includeÂ features such as high performance windows, improved insulation, water saving plumbing fixtures, energy-efficient appliances, low volatile organic compound paint and carpet, and native plant sections.

Sustainable development policies have the potential to effect real change and provide economic, environmental, and social benefits.

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Sustainable development principles include, creating a range of housing opportunities and choices, creating walkable neighborhoods, encouraging community and stakeholder collaboration, fostering distinctive attractive places, making development decisions predictable, fair, and cost effective, providing a mix of land uses, preserving open space, farmland, natural beauty, and critical environmental areas, providing a variety of transportation choices, strengthening and directing development toward existing communities, and taking advantage of compact building design. This, of course, is no small undertaking.

Green buildings – whether residential or commercial – save money over the long term through lower energy and water usage.

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GREEN BUILDING TRENDS: NOT JUST FOR THE COMMERCIAL MARKET Sustainable practices aren’t just for the commercial real estate sector. Green building is expected to be between 26%-33% of the residential market value this year. According to an annual survey of construction firms by McGraw Hill in 2014 reports that, 73% of customers building new single family homes will pay more for green homes, with many customers willing to pay between five to 10 percent extra. Interestingly, though, some of this increase can be attributed to the recovery bringing construction firms coming back into the market who have less experience building green homes. Lack of experience and familiarity with products and technologies often results in higher costs. Those builders with more than 30% green projects reported and average increase of 5.7%. The costs go down as a firm gains more experience. Findings from the World Green Building Trends 2016 report by Dodge Data & Analytics demonstrate that among homebuilders, green is becoming the standard way to build. The wider adoption of green may help push the single family home market to become even greener in the future, with homes increasingly needing to be green to be competitive.

GREEN BUILDING SAVES MONEY While most only think of financial obstacles when it comes to green building, there are actually numerous economic benefits. For starters, the government provides a tax deduction for energy-efficient retrofits, and the federal solar Investment Tax Credit (ITC) offers a 30% tax credit for solar systems on residential and commercial properties. Other government entities that offer tax credits and abatements, grants, and rebates can be found on the U.S. Office of Energy Efficiency & Renewable Energy website. Just as the number one reason for not building green is higher costs, the number one benefit is lower operating costs. Green buildings – whether residential or commercial – save money over the long term through lower energy and water usage. Lenders and appraisers both recognize greater value in green, sustainably designed buildings, meaning a green house or office building is worth more than a conventionally constructed building. A number of studies have concluded that green homes have a higher value than a standard home. Nils Kok, CEO a founder of GRESB,and Matthew Kahn, a leading American educator in the field of environmental economics, in a recent study found that green-labeled homes sell for a nine percent premium than conventional non-labeled homes. This study reviewed over 1.6 million residential transactions. Similar studies in Europe have found green building premiums of 12-16%. In addition, some buildings are already paying for themselves by realizing zero costs from sustainable strategies. The Kaohsiung National Stadium in Taiwan, built in 2009, became the first stadium to use 100% solar power and sell its excess energy to businesses and utilities. IN CONCLUSION Uncoordinated growth has been a dominant form of land use development during the past 50 years in major metropolitan areas. There appears to be significant costs to our current development patterns and these will only increase with the projected population growth in the U.S. and the State of Maryland. Sustainable development offers a more promising trajectory. This creates a significant cost savings in a relatively short period of time. The Smart Growth program’s greatest benefits are long term: more sustainable communities, reduced infrastructure costs, increased property tax base, reduced pollution, revitalized neighborhoods, reduced property development costs, more land conservation and healthier more cohesive communities. Dustin Watson, AIA, LEED AP BD+C, NCARB, CDP, is Founder and Principal of inPLACE Design, an architecture, planning, and design firm. For more information, contact the author at dwatson@inplace-design.com, or visit their website at www.inplace-design.com.

THE 2016 PROS AWARD

The Best from Construction to Customer Service

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mokey Glen Farm in Gaithersburg has been around for more than 50 years, so they know how to roast BBQ, smoke pies and host a party. And they did just that, for more than 300 people who came out to celebrate the 16th annual PROS awards on June 7. Many came decked out in their company shirts and represented firms from Maryland, Virginia and Washington, DC. Besides catching up with old friends, party-goers took advantage of all that Smokey Glen has to offer, including mini golf, basketball courts and horseshoe pits. In addition, MBIA held a cornhole tournament. Thanks to our Presenting Sponsor, Noels Fire Protection for making that happen and congratulations to our Cornhole champions, Nick and Casey Fauver of Van Metre Companies. The awards are sponsored by the Maryland Building Industry Association and the Northern Virginia Building Industry Association, who, for nearly two decades 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 teams of judges who contribute many long hours to the adjudicating process. When the dinner bell rang people were not disappointed. The menu included Smokey Glen’s famous BBQ ribs and chicken, chili, baked beans, coleslaw, potato salad and other tasty picnic sides. For dessert there was charcoal fired cherry, apple and blueberry pies. If you’ve never had a slice, you don’t know what you’re missing. When it was time for the awards presentation, PROS Chair Howard Katz, Michael Harris Homes and Vice Chair, Keith Scott, T.A.C. Ceramic Tile handed out 66 awards to very excited 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 PROS 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 Andrew Bolton, Bozzuto Homes, Karen Brenner, EYA, Dave Edwards, Dan Ryan Builders, Greg Horner, GE Appliances, Michael Kaperst, Sterling Mirror & Glass, George Korzeniewski, DR Horton, Chris Rachuba, The Rachuba Group and Brad Wilson, EYA.

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

MANY THANKS TOâ&#x20AC;Ś PRESENTING Buhl Electric Builders FirstSource HD Supply Noels Fire Protection GOLD Annandale Millwork Corporation Bozzuto Homes, Inc. Granitech Homestead Building Systems, Inc. Purofirst of Metropolitan Washington The Roof Center, Inc. Sterling Mirror & Glass Whirlpool Corporation

SILVER 84 Lumber Armstrong World Industries D.R. Horton, Inc. Dan Ryan Builders Fireside Hearth & Home Gaithersburg Garage Door, Inc. GE Appliances Masonry Masters, Inc. Michael Harris Homes NEKA, Inc. Shelter Systems Limited T.A.C. Ceramic Tile Co.

SUPPORTING Century Tile, Inc. Charles P. Johnson & Associates Chesapeake Systems Service, Inc. Eastern Applicators Guardian Home Technologies Gutschick, Little & Weber, P. A. Hercules Fence Co. Lennox Industries McCormick Paints Sherwin-Williams and Duron Paints & Wallcoverings TNT Services Group, Inc. Washington Gas FRIENDS Exceptional Choices, Inc. Segmental Wall Specialists, Inc. Simpson Strong-Tie, Company Spectrum HHI / Kwikset United National Construction Co, Inc.

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Congratulations to the following individuals who achieved Â the PROs Award for 2016. PRODUCTION MANAGER Production Manager 61-120 Units MF Kevin Crook, Pulte Group Production Manager 121+ Units MF Matt Steigelman, Pulte Group Production Manager 21-40 Units TH Nick Fauver, Van Metre Homes Production Manager, 121+ Units TH Surlawence Sparks, DR Horton Production Manager 1-5 Units SFH Tim Ganske, Mid-Atlantic Builders, Inc. Production Manager 6-20 Units SFH Trevor Webb, Mid-Atlantic Builders, Inc. Production Manager, 121+ Units SFH Regis Arnold, Van Metre Homes

PROJECT MANAGER Project Manager/Superintendent 61-120 Units MF Zach Hirmer, Pulte Group Project Manager/Superintendent 61-120 Units TH/MF Robert Bowman, DR Horton Project Manager/Superintendent 6-20 Units TH Silver Merit William Chandler, MI Homes Project Manager/Superintendent 6-20 Units TH Jim Scala, Bozzuto Homes Project Manager/Superintendent 21-40 TH Chris Fauver, Van Metre Homes Project Manager/Superintendent 41-60 Units TH Richard Cambrel, DR Horton

Project Manager/Superintendent 61-120 Units TH Victor Luis, Van Metre Homes Project Manager/Superintendent 6-20 Units SFH/TH Scott McKinney, Richmond American Homes Project Manager/Superintendent 1-5 Units SFH John Guerrasio, Sandy Spring Builders Project Manager/Superintendent 6-20 Units SFH James Bonebrake, Michael Harris Homes Project Manager/Superintendent 21-40 Units SFH Brent Hart, Pulte Group Project Manager/Superintendent 41-60 Units SFH Vance Cave, Van Metre Homes Remodeling Project Manager Kevin Rabil, Van Metre Homes

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PURCHASING AGENT Purchasing Agent 101-300 Units MF James Quinly, Pulte Group Purchasing Agent 101-300 Units TH Nick Jackson, Richmond American Homes Purchasing Agent 101-300 Units SFH Chris Duke, Van Metre Homes Purchasing Agent 1-20 Units Brian Roling, Pulte Group Purchasing Agent 21-100 Units Rose Sumrall, Pulte Group OFFICE PROFESSIONAL Purchasing Coordinator Francesca Martinez, Pulte Group Permits Coordinator Christi Eide, Bozzuto Homes Accounts Payable Heather Hayward, Richmond American Homes Settlement Coordinator under 500 Settlements Alicia McAfee, Bozzuto Homes Settlement Coordinator over 500 Settlements Michele Weissbratten, Van Metre Homes CUSTOMER SERVICE Customer Service Manager – Field 21-40 Units MF Sam Cunningham, Pulte Group Customer Service Manager – Field 41-60 Units MF Shirley Anderson, Pulte Group Customer Service Manager – Field 61-120 Units MF Joseph Cunningham, Pulte Group Customer Service Manager – Field 120+ Units SFH/TH Jeff Fereday, Richmond American Homes Customer Service Manager – Field 6-20 Units TH Robert Gonzales, Pulte Group Customer Service Manager – Field 41-60 Units TH Jay Brooks, Pulte Group Customer Service Manager – Field 61-120 Units TH Jeff Cellio, Bozzuto Homes

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Customer Service Manager – Field 61-120 Units TH Bryan Kinsey, Van Metre Homes Customer Service Manager – Field 21-40 Units SFH Kevin Baer, Pulte Group Customer Service Manager – Field 41-60 Units SFH Reid Davis, BOWA Customer Service Manager – Field 61-120 Units SFH Ron Proctor, Pulte Group Customer Service Manager – Field 121+ Units SFH Donnie Pearson, Van Metre Homes Customer Service Representative – Office 121+ Units MF Ellareese Burke, Bozzuto Homes Customer Service Representative – Office 121+ Units TH Veronica Henderson, Pulte Group Customer Service Representative – Office 121+ Units SFH Anne Conaway, Richmond American Homes Customer Service Representative – Office 121+ Units SFH Rebecca Leach, Van Metre Homes FIELD TECHNICIAN Field Technician Construction 61-120 Units MF Wilfredo Gomez, Van Metre Homes Field Technician Construction 121+ units MF Lowell Fitzgerald, Van Metre Homes Field Technician Construction 21-40 Units TH Dale Nuse, Van Metre Homes Field Technician Construction 61-120 Units TH Tony Coffman, Van Metre Homes Field Technician Construction 6-20 Units SFH Martin Jackson, Van Metre Homes Field Technician Construction 21-40 Units SFH Robert Ramey, Van Metre Homes

Field Technician Construction 41-60 Units SFH Antonio Baires, Van Metre Homes Field Technician Construction 121+ Units SFH Charles Martin, Van Metre Homes Field Technician Customer Service 6-20 Units TH Steve Heitt, Van Metre Homes Field Technician Customer Service 61-120 Units TH Orlando Luna, Bozzuto Homes Field Technician Customer Service 121+ Units TH Andy Zimmerman, Bozzuto Homes Field Technician Customer Service 1-5 Units SFH Rachel Wolfson, Mid-Atlantic Builders, Inc. Field Technician Customer Service 6-20 Units SFH Fredy Guevara, Sandy Spring Builders Field Technician Customer Service 21-40 Units SFH Robbie Franks, Van Metre Homes Field Technician Customer Service 61-120 Units SFH Marco Gallegos, Van Metre Homes Field Technician Customer Service 121+ Units SFH Nick Franks, Van Metre Homes LAND DEVELOPMENT Land Development Supt. 1-20 Units Derek Didonato, Van Metre Homes Land Development Supt. 21-100 Units Sylke Knoppel, Michael Harris Homes Land Development Supt. PUD (over 300) Units Silver Merit Chris Sorensen, Van Metre Homes Land Development Supt. PUD (over 300) Units Rick Warfield, Elm Street Development

DIRECTORY UPDATES AND CORRECTIONS The following members were incorrectly listed in our 2016 Membership Directory.

Linowes and Blocher LLP Jack Orrick Attorneys and Legal 7200 Wisconsin Ave., Suite 800 Bethesda, MD 20814 (301) 961-5213 jorrick@linowes-law.com

Rutter Project Management Jeremy Rutter Land Development Services P.O. Box 126 Lisbon, MD 21765 (410) 982-2882 jeremy@rutterpm.com

Kitchen and Bath Creations Jeff Myers Cabinets and Countertops 9005 C Red Branch Rd. Columbia, MD 21045 (410) 772-3240 jmyers@kbcdirect.net

Homestead Building Systems, Inc. Matt Danner Lumber & Millwork 10109 Piper Ln. Bristow, VA 20136 (703) 331-5600 christina.basileo@hbsva.com

Elm Street Development David Flanagan Builder/Land Developer 1355 Beverly Rd., Suite 240 McLean, VA 22101 (703) 734-9730 dflanagan@elmstreetdev.com

Dewberry Mike Snyder Engineering 10003 Derekwood Ln., Suite 204 Lanham, MD 20706 (301) 364-1859 msnyder@dewberry.com

Beracah Homes Neil Smith Builder/Manufacturing of Modular Homes 9590 Nanticoke Business Park Dr. Greenwood, DE 19950 (302) 349-4561 neil@beracahhomes.com

Sandy Spring Builders Mimi Kress Builder/Single Family Custom Building 4705 W. Virginia Ave. Bethesda, MD 20814 (301) 913-5995 mKress@sandyspringbuilders.com

For a full list of our member profiles, marylandbuilders.org/search

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THE TROUBLE WITH COLLEGE The Impact on First-Time Home Buying By Victoria M. Ballestero, EIT, AECOM

he debate of the purpose of college is centuries old. Is higher education purely to satisfy a desire for learning? For finding one’s self or a mate? For experimenting and having fun? Or, is the purpose of pursuing a college degree to prepare young adults for the next 40 years of their professional lives? I propose that the underlying truth behind every parent writing a tuition check is the latter. As parents send their son or daughter off to college they anticipate he or she will return home more educated and capable of being a contributing member of society—hopefully employable and hopefully able to move out of the house. Hopeful as parents may be, the statistics are irrefutable. For the first time in more than a century, adults ages 18-34 are more likely to be living in their parents’ home than they

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September/October 16

are to be living with a partner in their own household. While the results of this census data are fueled by a multitude of fundamental cultural shifts, perhaps one of the most blatant and damning reasons young adults are opting to stay under their parents’ roofs is the financial burden with which they are strapped from attending college. In the past 20 years, there has been an unexposed degeneracy of American colleges. The system has become corrupt and exploitative. Students, especially those who excel in their grade school years, are groomed to believe that college is the next and only option after high school graduation. Naïve, ill-informed, and oftentimes financially-illiterate young adults proceed to apply for and take on mammoth student loans. Receiving a student loan is easier than ever. With a few clicks of a computer mouse, corporations like SallieMae dole out hundreds of thou-

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sands of dollars to individuals seeking to cover the cost of four years of college. While the fine print may disclose the binding nature of these contracts, what 18 year old is carefully reading the boilerplate of a necessary loan before signing?

This is a call to action. Be a mentor, be a sponsor, and be an advocate. The future of the building industry lies in the hands (and wallets) of Millennials.

The catch? School loans are nearly impossible to discharge. They are in fact the only kind of debt that can’t be shirked. According to a Washington Post article, “At the end of last year [2014], 43 million people, most of them younger than 40, had an estimated $1.2 trillion in outstanding student-loan debt, with an average balance close to $27,000…17 percent of borrowers are delinquent or in default, and another 20 percent are current on payments but have experienced delinquencies in the past.” This looming debt (and appalling delinquency) radically affects the homebuilding industry as student loan obligations are factored into lenders’ assessments of borrower risk. Not many first-time homebuyers purchase outright. With a new Federal Housing Administration policy implemented in September 2015, lenders are required to include two

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percent of a person’s outstanding student loan balance in the calculation of their monthly debt-to-income (DTI) ratio. Debt is debt and the regulatory change was made to, among other agendas, set first-time homebuyers on the track to sustainable and successful home owning. Though rationale behind the policy change seems sound enough, the stricter regulations certainly add another hurdle to home buying for young adults. And for many, especially those saddled with hundreds of thousands of dollars of debt and unable to qualify for even small mortgages, the change will definitely be a non-starter. Now you might ask, “Why would a college-degree carrying, competent young adult need to discharge their student loans?” Surely they can find a job—especially as the economy continues to recover. Post-graduate employment is not the problem [as it may have been five years ago], as much as the average salaries paid to new graduates. The salaries for many professions simply do not justify the cost of a $200,000 undergraduate degree- much less the added expenses of graduate degrees. MF conf ad 2016.qxd

7/12/2016

12:35 PM

Let’s step outside the building industry for a moment. Students across the country pursue degrees in music, the fine arts, philosophy, languages, and other soft sciences. Some of our colleagues may hold degrees in these fields. But what career, within the aforementioned fields, is a young adult to pursue to afford not only the price tag of their degree, but also the interest accrued over the 10, 20, or 30 year lifetime of their loans? While the onus of choosing education and career paths falls on individuals, a sideline villain with deep, greedy pockets is orchestrating peoples’ futures. The collegiate education system is the ring leader of a vicious cycle—a downward spiral of incomprehensibly legal financial borrowing to pay for ever rising higher education expenses. As loans have become more accessible, colleges have driven their cost of tuition skyward. The rising costs of tuition, has created a rat race amongst institutions of higher learning. More so than ever, amenities like state-of-the-art gyms, free movie theaters, and premium dining have become a staple on

Page 1

2016 Multifamily Trends Conference presented by MBIA & NVBIA

Thursday, November 10, 2016 7:30 am - 12:00 pm Greenbelt Marriott, 6400 Ivy Lane Greenbelt, MD 20770

StonebridgeCarras, LLC’s, The Flats & The Darcy, Bethesda

To register go to www.marylandbuilders.org > Calendar > November 10 Questions? Call Jean Mathis at 301-776-6223 or email jmathis@marylandbuilders.org

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September/October 16

college campuses. In 2013, College Planning and Management reported American colleges spent a total of $10.9 billion on construction projects. No doubt these capital improvements are made to attract students. While some of those construction costs certainly covered the expenditures of renovating and replacing aging infrastructure, how are we to justify the monies spent to build rock climbing walls and outfit dorm rooms with plasma televisions? This again begs the question, what is the function of college? If college is to be a four-year resort stay, it certainly seems as though some universities have hit the markand the budget. All of this is not to suggest that colleges should avoid renovations, modernization, and implementation of amenities. It is however, a commentary that colleges aren’t bound to economic markets in the way other businesses are. Colleges are therefore empowered to inflate tuition without concern for consumer ramifications. Colleges send vague tuition bills without explanation of expenses. Students are left with little choice besides signing away their life and first born to attend. Another manner in which colleges are exploiting students is through a lack of proper advising. For example, let’s use a very intelligent University of Maryland Senior Civil Engineering student who was interning with D.S. Thaler & Associates, Inc. The intern needed one extra class to fill her last semester schedule. With infinite wisdom, her advisor suggested she take a “fun class”—specifically, Beginning Trampoline. At nearly $8,000/course, Beginning Trampoline sounds like a rather expensive way to have fun and a jolly good waste of time. On a separate note, even with industries that have traditionally had very stable career paths, some careers are oversaturated. As example, the number of legal jobs available is hardly enough to support the number of students in law school. So, after three years of law school, what are students left to do? If you want to go to college to learn about taking care of your collection of Renoirs, go for it. But if you expect there to be an available paying job at a museum—complete with retirement benefits and healthcare—to enable you to pay back your student loans, good luck. This is a call to action. Be a mentor, be a sponsor, and be an advocate. The future of the building industry lies in the hands (and wallets) of Millennials. Whether they are your newest cohort of colleagues or the consumers buying the houses you have designed and constructed, this generation needs our help. This is a demand for less institutionalized education and more apprenticeships and vocational learning. Though there is a place for traditional and formal learning, especially in specialty fields like engineering, practical learning doesn’t happen in a classroom. Learning happens when your boots hit the dirt.

College may not be for everyone. And some, those looking to pursue their passions for rock climbing or golfing, may just be better off without college. Now, whether you are paying for your children’s collegiate education, you have colleagues pursuing higher education, or you yourself are seeking to obtain a higher degree, this is for you. The ploy of colleges overcharging for tuition has gone far enough. The ramifications of the collegiate debt saddling young adults will be felt for decades to come. Without strong credit to qualify for mortgages, young adults will continue to live home with their parents. And the progression of life, firsttime home buying included, is halted right there. Victoria M. Ballestero, EIT is a civil and environmental engineer with AECOM. She holds a Bachelors of Science degree in Civil Engineering from Clarkson University and is actively pursuing her MBA. Victoria can be reached at victoria.ballestero@aecom.com.

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MBIA’s Golf Tournament Teeing Off at Turf Valley

urf Valley Resort once again played host to MBIA’s Golf Tournament, giving close to 100 golfers the chance to take to the greens and fairways of this championship course full of scenic beauty and exciting challenges. Besides swinging their way around strategically placed bunkers and mature trees, players also participated in a little more friendly competition by way of the closest to the pin and long drive contests. The proud winners of the closest to the pin contest were Mark Somerville, Caruso Homes and Ryan Spardaro, Goodman Distribution. The tournament wrapped up around 3:00pm when players got the chance to relax and compare scores over beer, wine and lite fare. Prizes were awarded to the top scoring team and players with the best shots. Taking first place in the tournament with a score of 57 was the foursome of Jim Long, Jim Long Jr., and Michael Long with Touch of Brass, along with teammate Rob Dorsey of Dorsey Family Homes. 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: Presenting Sponsor, Cameron Group LLC, Beverage Cart Sponsor, Residential Title/Commercial Settlement Services, Hole Sponsors, Gutschick, Little & Weber, P. A., Goodman Distribution and TrusJoist Engineered Wood Products and Long Drive Sponsor, Snavely Forest Products Corp.

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ENGINEER’S TOOLBOX

MANAGING RISK OF SLOPE INSTABILITY FOR MARLBORO AND POTOMAC CLAYS By Andy McKeen, P.E., Geo-Technology Associates, Inc.

What is considered a stable slope? A slope with a factor of safety (FOS) of less than 1.0 is considered unstable. The FOS is a measure of the ultimate strength of a system to the actual applied load. So when the applied load is greater than the overall strength, the slope will fail, and the FOS will be less than one. In engineering practice, a slope with a factor of safety of 1.2 to 1.5 is considered stable. What attributes to the stability? There are many factors that contribute, but primarily the soil weight, strength, groundwater and the overall slope geometry. In soil mechanics, soil can be assigned an internal angle of friction, and cohesion to measure strength. Generally speaking, the friction angle is the angle at which a soil can “stand up” without sliding over itself. To put it in perspective, picture a large stockpile of soil. For gravelly soils, the pile can be placed at an angle ranging from 38 to 45 degrees before slides and sloughing of soil will

occur under its own weight. For sands, this angle can range from 28 to 38 degrees, and for clays 15 to 28 degrees. The second component, cohesion can be thought of as the ”glue” that holds soil particles together through cementation in sandy soils or by attraction in clay soils. While shearing under a confining pressure, the shear stress in soil will increase to a certain peak strength level.

This peak strength level is typically reached within relatively small displacements. As shear deformation continues past the peak strength, the shear stress drops to a residual strength level and will remain constant, even for large deformations. Internal friction angles at the residual strength level can be as much as 40 to 50 percent less than the typical friction angles at the peak strength, as mentioned above.

Due to low shear strength, clays can be problematic for slopes. In many cases cracks and old slide planes (known as slickensides) are present within clayey soil stratums. Such “slickensided” clays are present

Slides of the Marlboro Clay (reddish-brown in color, bottom of picture) layer after a storm event, during a mass excavation and replacement slope stabilization.

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throughout Maryland. In particular, the Arundel or Potomac Clay, present throughout central and northern Maryland and Marlboro Clay present primarily in Prince George’s County. Considering the slides and movement, it is more appropriate to utilize the residual friction angle in Marlboro and Potomac Clay. Slopes constructed in or on top of these formations require careful analysis, and if not analyzed and designed properly, can result in an unstable slope potentially leading to failure. Roadways, buildings and other structures should not be located within a shear plane with inadequate FOS. To perform a proper analysis of a proposed slope or retaining wall, geotechnical information including soil borings to delineate the top, bottom, and thickness of the clay layers, and laboratory testing to estimate the residual strength of the clay should be performed. Enough information should be obtained to fully characterize the clay both up and down slope. Every given situation is unique, but some general rules of thumb are highlighted below:

• Avoid slopes steeper than 5H: 1V on top of the clays. • If possible, “bury” the clay, and keep it as deep and far behind the slope as possible. • Minimize excavation or “unloading” of soil in front of the slope when adding fill behind or on top of the slope.

• Keep water away! The buildup of water will reduce stability of the slope. To minimize headaches, a qualified geotechnical engineer should be involved early in the site design to analyze proposed slopes, and work with the civil designer to minimize slope impacts. Revising grading and layout to accommodate slope issues is much easier (and cheaper) than dealing with expensive slope improvements such as mass removal and replacement of the clay or structural stabilization techniques.

Andy McKeen is a project engineer with Geo-Technology Associates, Inc. (GTA), and has more than six years of geotechnical and site engineering consulting experience throughout the state of Maryland. GTA provides geotechnical, environmental, drilling and construction observation and testing services. Andy can be reached at amckeen@gtaeng.com. www.GTAEng.com.

The left diagram identifies slope instability due to the presence of Marlboro Clay. The planned structures are impacted by the 1.5 FOS line. The right figure shows a mass removal and replacement to stabilize the slope. This is very expensive, and can possibly be avoided with proper analysis and input from the geotechnical engineer prior to permitting and final site designs.

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STATS & FACTS

STATS & FACTS MIDYEAR UPDATE By Ben Sage, Metrostudy’s Mid-Atlantic Region

he quotable Alexander Pope was an 18th century English poet best known for his poem The Rape of the Lock as well as for his translation of Homer’s Iliad and the Odyssey. Despite his renown, he lived a rather unfortunate life. He was Catholic, as you might guess from his name, during the growing influence of the Church of England in the late 1600s. Anti-Catholic laws forced his family out of London, and Catholics were banned from teaching, attending university, voting, or holding public office. Physically, he suffered from a form of tuberculosis that not only caused respiratory problems and fevers but also stunted his growth and left him with a severe hunchback. He grew to only 4.5 feet tall, but overcame all this to become one of the greatest poets of his time. Perhaps he drew upon his experiences when he came up with one of his more famous quotes, “Blessed is the man who expects nothing, for he shall never be disappointed.” I believe many homebuilders had this in mind heading into 2016. Anecdotally, builders are generally more upbeat about sales this year compared to the previous two. Metrostudy’s expectations for this year were for very modest improvement, and builder feedback led me to believe that I had missed the forecast to the low

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side. As we unpack the mid-year results, however, it appears that the new-home market is tracking very similarly to last year. According to Metrostudy’s lot-by-lot field survey, first half starts in Maryland are down slightly, -3 percent, compared to the first half of 2015, but closings (move-ins based on evidence of occupancy) are up 4 percent. Of course, builder sentiment is generally tied more closely to their sales contracts trends. Metrostudy conducts a weekly survey of builders, and they are reporting an average monthly sales rate of 2.4 per subdivision, which is unchanged from 2.4 in the first half of last year. No doubt some builders are ahead of last year, justifying their positive reviews of the housing market. Other builders operate in both Northern Virginia and Maryland, and many of them are reporting stronger demand west of the Potomac. Overall, though, the Maryland market as a whole is largely unchanged from one year ago. It is possible that some builders are more upbeat this year because their sales are on target with their internal forecasts (not necessarily because sales are up). Basically, the builders reset their expectations … which I had to do as well, by the way. While there is not much change in the overall market, we are seeing some strength in specific submarkets. Anne Arundel remains the top county in terms of starts, and Prince George’s continues its solid pace. The biggest

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mover in the first half of 2016 was Harford County, who led the state in both the numerical and percentage increase in starts. Magness Mill by Ryan Homes is the top community in Harford, and new openings in the county include Laurel Ridge by Toll Brothers and Magness Farms by K. Hovnanian Homes. Midway through the year, it appears that the market is in line with Metrostudy’s expectations for modest improvement in 2016, but for 2017 I’m going to spurn Mr. Pope’s advice of keeping expectations low. With strong job growth, low unemployment, and a more under-supplied resale market, new-home demand should expand further next year. Some growth constraints, such as limited lot supply and labor, will probably restrict the upside, but there is room for growth. Furthermore, if present trends continue, builders should have more leverage to raise prices, which has been a struggle in the last couple of years. That might inspire the building community to write some prose of their own. Ben Sage, Director of Metrostudy’s Mid-Atlantic Region, has been researching and analyzing housing markets since 1994. Ben can be reached at bsage@metrostudy.com or 703-574-8429. For more about Metrostudy, please visit www.metrostudy.com.

MARYLAND MARYLAND New Home Starts by County New Home Starts by County Anne Arudel

– YTD Comparison – YTD Comparison 2%

Anne Arudel Prince George’s

2% 0%

Prince George’s Montgomery

0% 4%

Montgomery Howard

4% 0%

Howard Washington DC

0% 5%

Washington DC Charles

5% 9%

Charles Frederick

9% 4%

Frederick Baltimore

4% 6%

Baltimore Harford

6% 89%

St. Harford Mary’s

89% 21%

St. Mary’s Calvert

21% 68%

Calvert Carroll Carroll Baltimore City Baltimore City

68% 24%

1H16 Starts 1H15 Starts

24% 43%

1H16 Starts 1H15 Starts 0

100

200

300

200 300 Source:Metrostudy

400

500

600

700

800

400

500

600

700

800

43%

Source:Metrostudy

New Home Demand Indicators New Home Demand Indicators 9% 9% 7% 7% 5%

4% 4%

5% 3% 3% 1% 1%

-3% -3%

0% 0%

First Half Starts*

Average Sales per Subdivision** Average Sales per Subdivision**

-1% -1% -3% -3% -5% -5%

First Half Starts*

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3/6/13 1:55 PM

NEW MEMBER SHOWCASE

NEW MEMBER SHOW

Martin Jenoff President, Focal Point Productions, Inc. HOW LONG HAVE YOU BEEN WITH YOUR COMPANY AND WHAT IS YOUR ROLE? I started Focal Point Productions (FPP) in 2000, after I graduated from Towson University. I wear all the hats at FPP - producer, editor, director and videographer. I really enjoy the unique opportunity to have a direct hands-on role on every project. WHY DID YOU JOIN MBIA AND WHAT DO YOU HOPE TO GAIN FROM YOUR MEMBERSHIP? WAS THERE SOMEONE WHO INFLUENCED YOU TO JOIN? Just over five years ago I started producing videos for the Bozzuto Group. During that time, I created dozens of videos for the different branches of Bozzuto as well as other construction and real estate companies. A few months ago, I started

producing a series of promotional videos for Owings Brothers. During a pre-production meeting, Joe Smith introduced me to MBIA. The timing was perfect. I was looking for unique opportunities to grow my business. MBIA seemed like a great fit since I had recent experience producing video for Owings Brothers, Bozzuto and others. As a new member, I’m hoping to learn more about my clients’ needs so I can deliver a better product. ARE YOU INVOLVED WITH ANY MBIA COMMITTEES? Not yet, but I’d like to check out the FIL and the Sales and Marketing Council, but first I want to “get my feet wet” and attend some chapter meetings. I definitely want to become an involved and engaged member! WHAT’S A FAVORITE MOMENT IN YOUR CAREER SO FAR? About 18 months ago I took a major step and moved my business out of my home. My home office consumed most of my basement and my equipment racks took up most of the garage. With two small children, our home was getting cramped. I rented an office and production studio in Owings Mills. It was scary making the move, but it’s been a great decision. WHAT WAS YOUR CHILDHOOD DREAM JOB?

As a new member, I’m hoping to learn more about my clients’ needs so I can deliver a better product.

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I’ve known since the age of 13 that I wanted to be involved in the world of video. I used the money from my bar mitzvah to buy my first camcorder - an RCA VHS camera that cost $2,000. A few weeks later I had my first paying job, taping a friend’s

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party. In middle school, I was the go-to person to record school plays, concerts and events. When I got to high school, I started the school’s TV station, which at the time, was the first school TV station in the County. That RCA video camera is sitting in a display case in my office’s front lobby. ANY BUSINESS TIPS CAN YOU SHARE WITH OTHERS? I’ve always lived by two quotes: “If you can dream it, you can do it” by Walt Disney and, “Be careful whose toes you step on today, they might be attached to the ass you have to kiss tomorrow.” unknown WHAT IS YOUR FAVORITE APP OR SOCIAL MEDIA OUTLET? One of my favorite Apps is called “Harvest.” As a video creator, I provide different services—producing, editing, on location videography, etc. Each one of my services has a different hourly rate. Harvest is a time tracking app that lets me track each category for every client and every project. Every day I log all of my hours for every project and then at the end of the project, I log into my app and Harvest provides me with a summary of my time and the prices. WHAT IS YOUR DREAM VACATION SPOT? My wife introduced me to cruising several years ago and I love it! A few months ago we took our six year old son on his third cruise, and our two year old daughter on her first cruise. We all had a great time. This past August, we took a cruise with friends to Bermuda to celebrate our 10th wedding anniversary.

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

IF YOU HAD A CHANCE TO MEET ANY CELEBRITY, WHO WOULD IT BE? I’m a tech nerd. Whenever I’m in the car or in the office, I listen to podcasts. I’d love to meet some of the hosts of my favorite shows - MacBreak Weekly, Mac Power Users, TWiT, FCP Radio, and FCPX Grill.

❚ Bankruptcy

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I love my tech. I don’t think I could live without my iPhone, iPad or MacBook Pro. I’m always editing projects, listening to podcasts or trying new Apps.

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NEW MEMBERS & REINSTATEMENTS

JUNE/JULY 2016 BUILDERS HLG Custom Homes, LLC Robin Nelson 45 Old Solomonâ&#x20AC;&#x2122;s Island Rd. Suite 102 Annapolis, MD 21401 410-266-8866 rnelson@hlgmd.com Real Estate General Ltd. James Robinson 2137 Defense Hwy. Crofton, MD 21114 410-721-9230 jcrobinson@realestategeneral.com

REMODELER Glenn Construction Lisa Stanly 1378 Defense Hwy. Gambrills, MD 21054 410-451-1600 lisa@glennconstruction.com

ASSOCIATES Armstrong Janitorial Cleaning Services, Inc. Roger Armstrong 1075 Omar Dr. Crownsville, MD 21032 410-353-1613 ajcs0618@verizon.net Breeden Mechanical, Inc. Don Foy 8101 Flannery Ct. Manassas, VA 20109 703-631-2711 dfoy@breedenmechanical.com Capital Railing Jim Johnson 1954 Halethorpe Farms Rd. Suite 100 Halethorpe, MD 21227 443-679-7227 jjohnson@capitalrailing.com Chesapeake Plumbing & Heating Inc. Travis Martin 34913 Delaware Ave. Frankford, DE 19945 302-732-6006 tmartin@cpnhinc.com

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D. N. F. Incorporated Joel Chagadama 4390 A Henninger Ct. Chantilly, VA 20151 703-968-6700 jchagadama@suburbankitchens.com

Kevson Services Group Sonia Barry 5728 Industry Ln. Frederick, MD 21704 240-277-9428 sonia.barry@kevsongroup.com

E.L. Roselle Trim Carpentry Gene Roselle 7914 Eagle View Dr. Chesapeake Beach, MD 20732 301-440-3199 roselleinc04@yahoo.com

Olde Port Home Solutions Inc. Jeff Enlow 7545 Burch Rd. Port Tobacco, MD 20677 301-609-8770 info@oldeporthomes.com

Focal Point Productions, Inc. Marty Jenoff 8D Music Fair Rd. Owings Mills, MD 21117 410-517-0760 marty@focalpp.com

Olympia Swimming Pool Co. Pat Stepp 4040 Penn Belt Pl. Forestville, MD 20747 301-420-2020 pstepp@olympiapoolsinc.com

Hems Site Solutions Steve Hemler 7377 Old Alexandria Ferry Rd. Clinton, MD 20735 240-508-3355 hemsjr@aol.com

Power Design, Inc. Kelsey Roberts 11600 Ninth St. North St. Petersburg, FL 33716 727-497-2359 kelseyroberts@powerdesigninc.us

Hertzbach & Company, P.A. Victoria Douglas 800 Red Brook Blvd. Suite 300 Owings Mills, MD 21117 443-471-2032 vdouglas@hertzbach.com

RPM Construction Corp. Richard Murphy 5399 Agro Dr. Frederick, MD 21703 301-874-4635 rmurphy@rpmframing.com

IKO Real Estate, Inc. Lou Iaquinta 3416 Olandwood Ct., #210 Olney, MD 20832 301-924-4050 lou@ikorealestate.com Intreegue Design Inc. Colleen Vacelet 1010 Francis Ave. Baltimore, MD 21227 410-205-9040 cvacelet@intreeguedesigns.com Keller Williams Select Realtors Annapolis Aaron Rice 1997 Annapolis Exchange Pkwy. Suite 500 Annapolis, MD 21404 410-972-4000 aaron@marylandluxurygroup.com

September/October 16

Retana Contractors, LLC Mario Retana 11793 Fingerboard Rd. Suite 200 Monrovia, MD 21770 301-865-0209 mario@retanacontractors.com Snee, Lutche, Helmlinger + Spielberger, P.A. Joe Snee 112 South Main St. Bel Air, MD 21014 410-893-7500 jsnee@slhslaw.com

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WE’VE GOT ROOM FOR YOU Room rentals are available at the Maryland Building Industry Association’s headquarters, the Maryland Center for Housing in Maple Lawn. We have three rooms that can accommodate your meeting, class or event from two to 100 people in style. A first floor kitchen is also available for your use. Call Becky Myers at 301-7766266 today to get all of the details and to reserve your room.

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CONFERENCE ROOM A (CAPACITY 20-100) Large room can hold a small meeting to a large event. Six foot folding tables and chairs can be arranged in various configurations. Access to fully equipped kitchen. Audio/video capabilities with drop down projection screen and HDMI input. Conference calling capabilities. CONFERENCE ROOM B (CAPACITY 10 SEATED) Medium room adjacent to large conference room, which can be used on its own or for overflow to the large conference room. THE RACHUBA CONFERENCE ROOM (CAPACITY 15 SEAED) Medium room with audio video capabilities and 42” flat screen TV with HDMI input. Conference calling capabilities. Separate table for food service.

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Chesapeake Employers Insurance Company K Hovnanian Homes Lakeside Title Company Morris & Ritchie Associates, Inc. Pleasants Development Pulte Saratoga Insurance /CEI Shelter Systems

84 Lumber Andersen Windows Elm Street Development Linowes & Blocher McMillan Metro, P.C. Miles & Stockbridge Rodgers Consulting, Inc. Soltesz SunTrust Mortgage

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BUILDER’S BOOKSHELF

BUILDER’S BOOKSHELF Check out this Top Seller from NAHB BuilderBooks. As an MBIA member you are automatically an NAHB member and are entitled to great discounts on publications, software, brochures and more. Housing Preferences of the Boomer Generation: How They Compare to Other Home Buyers This is the latest study in NAHB’s long history of tracking the evolution of home buyer preferences. How do various designs and features influence the home purchase decision? What influence do life events and people have on the decision to move to another home? Age can play a significant role in what buyers want to see in a potential new home. This study presents findings not just for the average home buyer, but also highlights the housing preferences of Baby Boomers (those born between 1946 and 1964) and how they compare to buyers of other generations. NAHB Member Price: $79.95 or download an electronic version for $55.95

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