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4 President’s message

12 Fall board meeting at Nemacolin

For 2010: Change is good

Attending a meeting gives members insight into the strength of PBA

6 PBA shares 10 years of government affairs triumphs Successes help create a more builder friendly business environment

8 Igniting the passion within

14 Water, water everywhere Expert says EPA cleanup plan is based on bad science

16 Member spotlight Bellagio Builders specializes in energy efficiency

New president’s mission is to engage members in a common cause

Member Insider Member briefs . . . . . . . . . . . . . . . . . . . . . . A November board meeting. . . . . . . . . . . . B On the Hill . . . . . . . . . . . . . . . . . . . . . . . . . . C

Keystone Builder

Volume 7 • Issue 1 • January/February 2010

Photo by James May

Cover designed by Chris Anderson Keystone Builder cover photo by James May.

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EXCL-268

Associate Vice President Ron Agulnick, HBA of Chester/Deleware Secretary Warren Peter, Indiana-Armstrong BA Treasurer Joseph Harcum, Wayne County BA Immediate Past President Gene Kreitzer, Lebanon County BA Executive Vice President Doug Meshaw Editor Scott Elliott Associate Editor Chris Anderson

PrintComm Staff Publisher Kevin Naughton Assistant Editor/Publication Director H.J. Hormel Graphic Design Jason Gabel Advertising Sales Manager Brenda Poe Advertising Sales Jeff Pinwar • 800-935-1592, ext. 118 Address correspondence to: Keystone Builder 600 North Twelfth Street Lemoyne, PA 17043 Phone: 800-692-7339 or 717-730-4380 Fax: 717-730-4396 Web: www.PaBuilders.org E-mail: selliott@PaBuilders.org Advertising does not imply acceptance or endorsement of the products contained in the publication. Publishing and advertising sales services provided by:

2929 Davison Rd. • Flint, MI 48506 Phone: 800-935-1592 • www.printcomm.com An Exclusive Publication of the PBA Keystone Builder magazine is published six times a year by the Pennsylvania Builders Association®, Editorial Offices, 600 North Twelfth Street, Lemoyne, PA 17043. With the exception of official association announcements, the statements of fact and opinion that are made herein are the responsibility of the authors alone and do not reflect an opinion or philosophy of the officers or the membership of the PBA. Materials may not be reproduced without written permission from the PBA headquarters.

President’s message

Vice President Ray Venema, West Branch Susquehanna BA

by Joe Mackey • PBA President

President Joseph Mackey, Pocono BA

For 2010: Change is good

ell, we’re off to a momentous start. The past fall’s regional meetings were some of the most important in our nearly 60-year history. A variety of factors led members to debate the focus and direction of the Pennsylvania Builders Association going forward. While change sometimes can be challenging, it also holds the promise of improvement in how we function and a sharper focus on the association’s mission. The message you sent was received loud and clear. At a time when your own companies are struggling, a dues increase simply would not be appropriate. So members made suggestions for how PBA could restructure for more effective service in 2010.

An emphasis on government affairs Back in 1951, PBA was formed by our local associations, because they recognized the importance of having a strong voice for homebuilders in Harrisburg. Addressing government affairs has always been our primary function, and we were reminded of that during the regional meetings. Bad laws and misguided regulations can cause severe burdens for our industry, especially now when the market has slowed. You told us that PBA needs to continue its legislative and regulatory vigilance on behalf of the members, and we will.

A need to grow membership Traditionally, our membership has risen and fallen with the economy. This is true during the current downturn. But the fact is that the services provided by PBA are just as critical, if not more so, during a slow market as they are during better times. You spoke up this fall and told us to do more to help our locals grow the association. We are responding. We’ve launched a membership incentive program that will reward those locals that are able to grow their ranks. We’ve also produced useful marketing materials to help new members, and existing members, better appreciate all the benefits their support of PBA makes possible. In tandem with these efforts, we’ve revived our Do Business with a Member campaign. It simply makes sense for PBA members to reach out first to other members when business opportunities arise. PBA associate members show their support for the industry each year when they renew. By doing business with our associate members, you are recognizing and rewarding their efforts to help protect and grow the state’s housing industry, and that’s a smart approach to doing business that we want to promote. Continued on page 7

POSTMASTER: Send address changes to Pennsylvania Builders Association, 600 North Twelfth Street, Lemoyne, PA 17043. SUBSCRIPTIONS: Subscriptions available through membership to the Pennsylvania Builders Association.

I Keystone Builder • January/February 2010

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PBA shares 10 years of government affairs triumphs by M.H. Morrison ver the years, the Pennsylvania Builders Association’s numerous successes in government affairs have benefited the industry and members with a more builder friendly business environment. To understand the impact that PBA has made in the government affairs arena, consider the following compilation of legislative successes, beginning in 1998. Members involved in winning these legislative battles through our Hammers and Gavels Club can take great pride in this outstanding record of accomplishment. Architects’ Licensure Law Reform (Act 31 of 1998) PBA proactively helped create a law that allows homebuilders and remodelers, as well as home centers and kitchen and bath design centers, to choose not to involve an architect in the construction of a new home, or an addition or major renovation. This allows the builder, and subsequently the homeowner, to avoid the cost of architects’ fees, unless an architect’s seal is required by municipal ordinance. Uniform Planned Communities Act Reform (Act 37 of 1998 and Act 189 of 2004) Together these two acts reduced the paperwork burden for residential developers whose homeowners associations were formed for limited purposes, such as stormwater management, signage and open-space maintenance. In the 2004 legislation, PBA was successful in extending the retroactivity of homebuilder protections in planned communities. Statewide Building Code (Act 45 of 1999) This law provided for a uniform building standard across the state and prevented a patchwork of local building codes from increasing in scope and reach. Water and Sewer Tap-in Fees (Act 112 of 2000) Now all authorities must use the tap-in fee formula outlined in this law. Also, the tap-in fee charges between municipalities were limited.

Growth Control (Act 67 and Act 68 of 2000) Together, these acts represent the first comprehensive set of amendments to the Municipalities Planning Code since 1990. For PBA members, most importantly, numerous anti-growth proposals were defeated in the revisions. Excessive Engineering Fees (Act 206 of 2004) This amending of the Municipalities Planning Code improved the arbitration process for disputing excessive municipal design review and inspection fees. Changes to the Unfair Trade Practices and Consumer Protection Law (Act 196 of 2004) This act includes an Emergency Work Authorization Form that allows homeowners to obtain the work of a contractor in the event of an emergency without the consumer writing his/ her own waiver of rescission. This is of particular value to PBA’s remodelers and HVAC contractors. Water Supply and Wastewater Infrastructure Capitalization Program (Act 218 of 2004) Despite attempts by anti-growth legislators to kill the bill, $250 million was allocated for water/sewer infrastructure improvements. Visitability (Act 132 of 2006) Tax credits can be granted by municipalities under this act for the construction of homes in which people with physical challenges or elderly people can more easily live or visit. H20 PA Act (Act 63 of 2008) This bill authorized an $800 million bond for water or sewer, storm water, flood protection and dam safety projects. Home Improvement Consumer Protection Act (Act 132 of 2008) After more than 14 years of fighting unfair legislation, PBA was able to negotiate a registration law that does not overly burden legitimate contractors, while providing the Attorney General the ability to root out scam artists and unfair competitors.

I Keystone Builder • January/February 2010

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PA Construction Code Act (Act 106 of 2008) This bill amended the PA Construction Code Act and created the Uniform Construction Code Review and Advisory Council, which now reviews changes to the code and decides which are appropriate for Pennsylvania. Scrap Material Theft Prevention Act (Act 113 of 2008) To curb the theft of metal from construction sites, PBA helped create a law that requires scrap metal processors and recycling facility operators to collect identifying information when they purchase scrap material.

President’s Message Continued from page 4

Enhanced communications In addition to government affairs and membership growth, communication tools like Keystone Builder magazine will be as important as ever to keep members and the public informed about PBA’s stance on critical housing issues. In our press releases, we describe PBA as “the voice of the state’s homebuilders,” and that voice must remain loud and clear for the association to be effective.

We will continue to use a variety of communications methods – including new social networking tools like Twitter and Facebook – to keep you informed and to keep legislators and citizens educated about our perspective on key housing topics. Yes, changes are in the works, and the changes are good. Your association is on the move, and we vow to be more active and outspoken on your behalf in the new year. Keep speaking up, because we’re listening – and we’re taking action! s

PBA blocked Growth Control Legislation – This huge undertaking by PBA would have, if passed, changed the Municipalities Planning Code to limit where the citizens of Pennsylvania could live. Painting Licensure Legislation (2006) – PBA convinced legislators to vote “no” on licensing for commercial painters because the proposed legislation did not advance safety or education for painters.

PBA continues to block Legislation Creating Educational Impact Fees – These bills would require subdivision and land development applicants to file an economic impact statement. Legislation Increasing the Realty Transfer Tax. s

Visit One Of these LOcatiOns: aLLentOwn, Pa 18109 (610)266-8640 (800)950-9558 fax(610)266-8697

For a more extensive list of PBA legislative successes during the past 10 years, please visit the government affairs section of PaBuilders.org.

Mechanicsburg, Pa 17055 (717)697-9209 (800)252-4201 fax(717)697-9501 LeetsdaLe, Pa 15056 (724) 251-0555 (800) 516-1681 fax(724)251-0777 wiLkes-barre, Pa 18702 (570)824-9879

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January/February 2010 • Keystone Builder

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Igniting the

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to by Tess Wittler oft-spoken” is not a phrase used to describe Joe Mackey. So it should be no surprise that during his year as Pennsylvania Builders Association president, Mackey is committed to emphasizing the importance of industry professionals coming together for the common cause. Mackey has always stressed the importance of builders and remodelers playing an active role in their industry. He candidly admitted he’s quite passionate when it comes to the industry, and it’s that enthusiasm that drives him to find a resolution for the benefit of everyone. He understands that the more people come together and fight for a common cause, the more successful the industry, as a whole, will be. He formulated this belief from nearly 20 years of witnessing how one voice can grow to two, then multiply over and over again until it becomes a groundswell that simply can’t be ignored. This is the power of participating in the builders association, and when harnessed, it can not only propel the industry, but it can also boost a business to a new level of success.

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Top: This 2,400-square-foot house is one of the most popular models built by Target Homes in Tannersville and has four bedrooms. President Joe Mackey, Pocono Builders Association, wants to encourage stronger member participation in 2010.

Photo by James May Keystone Builder • January/February 2010

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Growing the business is important to Joe Mackey, but so, too, is his family, who are pictured here from left, son Joe, 20; Sandi and Joe Mackey; and daughter Sarah, 18.

Challenges for the industry Mackey realizes that he’s coming into his term as president during a volatile time for the industry, with economic factors, regulatory hurdles and lending challenges weighing down many companies. He and his wife and partner, Sandi, aren’t immune to those challenges, either. They, too, have had to make difficult business decisions and implement changes in order for Target Homes to remain viable for years to come. Mackey admitted that every market is different and it is up to each company to assess its customers. “Nobody knows your customer like you do,” he said. “Those who survive this economic downturn will be the ones who evaluate, measure and adjust as necessary, and keep their eyes on their business, not simply on their jobs.”

Success in knowledge Mackey’s quick recognition of the fact that knowledge equals success compelled him to join the Pocono Builders Association in 1991. He explained, “I thought it was time to add some credibility to my business and learn as much as possible by surrounding myself with industry professionals.” A few years later he served as president of his local association, and that led him to opportunities for involvement at the state and national levels. By 1997, he was chairman of the Pennsylvania Committee for Affordable Housing (PBA’s political action committee), and by 1999, he was involved in an NAHB Builder 20 group – which he describes as “rocket fuel” for his business. Mackey acknowledged that this “stepping-out-of-hiscomfort-zone mentality” and becoming involved at the state and national levels has opened new doors for him. “I knew that if we stayed in our own little world, we couldn’t achieve the level of success we were looking for,” said Mackey. “This is probably why we’ve been so involved – because we didn’t want to be defined by our own limitations.”

This custom Victorian kitchen is from a house built by Mackey’s Target Homes in Pen Argyl.

He continued, “When you make the decision to network with others in the industry, whether it is at the local, state or national level, you quickly see that others have the same challenges as you. There, you can share experiences and exchange ideas, and this, by far, is one of the strongest benefits of belonging to the association.” Additionally, PBA has an abundance of resources available for those searching for industry-specific information. TradeSecrets, a biweekly e-mail newsletter, and NewsClips, a daily newspaper clip e-mail, are two tools Mackey has used to stay current on legislative and regulatory issues. He encouraged others to use these services as well.

Ignite the passion Mackey’s mission as PBA president will be to engage the members in a common cause, because he knows that when members come together and pull in the same direction, PBA is extremely effective in Harrisburg. Continued on page 18 January/February 2010 • Keystone Builder

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MemberInsider January/February 2010

Member briefs

PBA meets with EPA, DEP on bay’s TMDL

Gubernatorial task force looking for members

Members of PBA’s Chesapeake Bay/total maximum daily load task force, chaired by Robert J. Fisher, president of New Cumberland-based R. J. Fisher and Associates, recently met with representatives of the federal Environmental Protection Agency and the state Department of Environmental Protection to discuss the forthcoming Chesapeake Bay TMDL. The meeting was part of EPA’s efforts to reach out to industries and organizations most affected by the TMDL, which will set new, stricter limits on the amount of pollution reaching waterways feeding the Chesapeake Bay as part of a multi-state cleanup effort. Fisher presented to the federal and state representatives concepts endorsed by the task force, all of which are designed to solve the bay’s environmental problems, while allowing for future economic growth and development. Federal officials commented that they were impressed with PBA’s efforts to find solutions to the challenges facing the bay, and future meetings are anticipated. For more information, contact Grant Gulibon at PBA at 717-730-4380, ext. 3013, or at ggulibon@PaBuilders.org. See page 14 in this issue of Keystone Builder for more on TMDLs.

PBA is seeking members to join its newly formed gubernatorial task force, which was approved during the November board of directors meeting at Nemacolin. The task force is being formed to interview and make recommendations regarding gubernatorial candidates competing in the 2010 election. If you are interested in joining this task force, please contact Jill Pento at PBA at 800-692-7339, ext. 3028, or e-mail jpento@PaBuilders.org. See On the Hill in this issue of Keystone Builder for more on the upcoming primaries.

Tax notice: Deducting a portion of your dues Members may be able to deduct $76.32 of their $135 PBA dues (which includes the $10 Industry Action Fund assessment) as ordinary and necessary business expenses (not as charitable contributions) when filing taxes covering 2010. Under federal law, dues that support lobbying efforts are not deductible as a business expense. Members are encouraged to contact local builders association executive officers to find out what portion of their dues payment from local and NAHB dues is eligible as a business expense deduction.

Weatherization certification process finalized Pennsylvania’s Department of Community and Economic Development and Department of Labor and Industry have established the certification process for contractors to participate in the state’s weatherization program. At this time, contractors experienced in weatherization who can apply to be certified contractors should use the Certification of Incumbent (current) Weatherization Workforce application, which is accessible at the DCED Web link included below. When completing the application, contractors should provide extensive details regarding work experience, which may help them avoid the testing process by demonstrating their qualifications. If a member is told by the state that they need to be tested, contact PBA for testing information. For the application and more information, please visit the DCED web site at: www.newpa.com/strengthenyour-community/redeveloping-your-community/housing/weatherization/index.aspx. Please note that the testing program is not complete at this time. Continued on page B Member Insider • Keystone Builder

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member briefs Continued from page A

Member input needed on mechanics’ lien policy During the November Government Affairs Committee meeting at Nemacolin, it was determined that more input was needed for PBA’s policy paper on the mechanics’ lien law. The document was rewritten based on comments provided during the July board meeting, but members still have concerns about the policy. As a result, a task force will be created to debate the policy and provide input to the staff about how the policy paper should be revised. Members wanting to participate on this task force are asked to please contact Scott Elliott at PBA at 800-692-7339, ext. 3010, or e-mail selliott@PaBuilders.org.

Design/construction contracts and 2006 code Members have voiced their confusion recently regarding exactly when the 2009 International Residential Code will take

effect in Pennsylvania and how a design or construction contract signed before the adoption would be affected. PBA reached out to the state Department of Labor and Industry for clarification. A spokesman for L&I explained that a design or construction contract executed and signed prior to Dec. 31, 2009, or the adoption of the 2009 codes will only need to comply with the 2006 codes. This would apply indefinitely until the permit is pulled, as long as the permit is pulled and construction begins within 180 days. L&I stressed also that if a design or construction contract is executed for a one- or two-family home after Dec. 31, 2009, but before Dec. 31, 2010, that home would need to meet the 2009 code but not the sprinkler provision that goes into effect Jan. 1, 2011. L&I further explained that the design contract does not need to be a sealed document from an architect or engineer. If any member would like clarification on this issue, please contact Jerry Leach at PBA at 717-730-4380, ext. 3012, or e-mail jleach@PaBuilders.org.

From the November board meeting 2010 senior officers elected PBA’s board of directors elected the association’s 2010 seniors officers Nov. 21, 2009, during the fall board meeting. Members selected: Vice President Ray Venema of West Branch Susquehanna BA; Secretary Warren Peter of IndianaArmstrong BA; Treasurer Joe Harcum of Wayne County BA; Associate Vice President Ron Agulnick of HBA of Chester/ Delaware; NAHB State Representative Stephen D. Black of BIA of Lancaster County; Builder State Director to NAHB Herbert L. Miller of BIA of Lancaster County; Alternate Builder State Director to NAHB Ray Venema of West Branch Susquehanna BA; Associate State Director to NAHB N. Eugene Minnick of Central Susquehanna BA; and Alternate Associate State Director to NAHB Jim Pigott Jr. of HBA of Metro Harrisburg. During the board’s prior meeting, Joseph Mackey of Pocono BA was named PBA president-elect. In 2010, Gene Kreitzer of Lebanon County BA will serve as immediate past president.

Regional leaders introduced PBA’s eight regions elected regional vice presidents and regional legislative officers during regional meetings in October. PBA President Gene Kreitzer introduced the new leaders during the November board meeting: Joe Price, RVP, southB

east; Ted Moser, RLO, southeast; Charlie Begley, RVP, southwest; Dion McMullen, RLO, southwest; Robert Hutchins, RVP, northeast; Pete Gallagher, RLO, northeast; Paul Bell, RVP, northwest; Jim Grieshober, RLO, northwest; Betsy Dupuis, RVP, northcentral; Rob Jones, RLO, northcentral; Mike Garman, RVP, southcentral; Shonna Cardello, RLO, southcentral; Vicki Shannon, RVP, mideast; Mark McNaughton, RLO, mideast; Tom Steele, RVP, midwest; and Paul Laskey, RLO, midwest.

Proposal to increase Industry Action Fund dues PBA’s Government Affairs Committee has recommended to the PBA board of directors that the Industry Action Fund dues assessment be increased to $20 per member for the next two years, up from the current $10 per year assessment. The proposed increase will be discussed during regional meetings held prior to the February 2010 board meeting and will be voted upon during that board meeting in Scranton. PBA’s Government Affairs Committee explained that the increase is needed to continue funding court cases and research projects that benefit the association’s membership. For more information, please contact Doug Meshaw at PBA at 717-730-4380, ext. 3007, or at dmeshaw@PaBuilders.org.

I Keystone Builder • Member Insider

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O n the Hill: Race to the election

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t press time, it was too early to determine all of the open seats and candidates for the state legislature. But no matter who is or is not running, Pennsylvania Builder Association members have an opportunity to influence how state government works with the building industry. Lou Biacchi, director of government affairs for PBA, explained polls are showing that public confidence in state legislators is very low, which could mean incumbents will face serious challenges for re-election. All 203 state House of Representatives members will be up for re-election, as well as half (25) of the Senate members. Considering the large number of legislative seats being decided in this election, it’s critically important for local builders associations to interview and recommend candidates to the Pennsylvania Coalition for Affordable Housing trustees, who will use this information to make appropriate campaign contributions and endorsements. The first day for candidates to file a nominating petition is Feb. 16 and the last day is March 9, with March 24 being the last day to withdrawal petitions. This means by March 24 the list of Republican and Democrat candidates for the May 18 primary election will be set. PaCAH will meet prior to the primary to make decisions regarding contributions to candidates. The group will meet again prior to the November general election to decide which candidates who make it through the primary will receive financial support. PaCAH is asking each local builders association to create a panel or task force to interview candidates and give those recommendations to PaCAH. It is PaCAH’s policy that no contributions are made to an open race (where there is no incumbent), unless the local association has interviewed the candidates and made a recommendation for support. PBA has a “candidate interview guide” that is useful in this process. The main goal of the interviews is to screen candidates for endorsement and determine whether the candidate’s general attitudes about government and business regulation coincide with those of PBA. Another goal is to educate candidates about the local association, issues of concern to the housing industry, and PBA’s legislative and regulatory priorities. By making this contact with candidates, local builders associations and PBA are establishing and maintaining close relationships with elected officials. These connections are essential as legislation is created and voted upon. Even in tough economic times, PaCAH dollars are important to show support for candidates who favor economic growth. So it is vital that members are diligent with financial collections on behalf of PaCAH.

New governor in 2011 As 2010 begins, Gov. Ed Rendell will be completing his second term and is ineligible to run for governor again. Politically, this means that there is a lot of interest in this top Pennsylvania office from individuals in both parties. Whoever is governor has the potential to have a tremendous effect on the homebuilding industry, as recent years have proven it can be difficult to override a veto of legislation. In addition, the governor appoints a cabinet to head state agencies, including the Department of Labor and Industry and the Department of Environmental Protection, which set regulations carrying out state and federal laws that affect the housing industry. In its ongoing efforts to protect homebuilders’ interests in the government affairs arena, PBA has formed a gubernatorial election task force to monitor the race for governor and determine if PBA will endorse a particular candidate. The various candidates will be invited for interviews. At press time, and long before potential governors must declare their candidacy, the following had declared their interest in running: Democrats – Scranton Mayor Chris Doherty, Allegheny County Executive Director Dan Onorato, state Auditor General Jack Wagner, Montgomery County Commissioner Joe Hoeffel, and Philly businessman Tom Knox; and Republicans – Attorney General Tom Corbett, U.S. Rep. Jim Gerlach and Berks County state Rep. Sam Rohrer.

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Member Insider • Keystone Builder

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WE HAVE A POINT TO HAMMER HOME

You only benefit from those member benefits you use PBA can be a vital part of your personal and professional success. Your association offers numerous benefits that your member dues make possible. So it’s in your best interest to use them. Just a few include • Networking opportunities with the most successful business leaders in your community • PBA’s Member Rebate Program pays cash back to builders who use products from nationally known manufacturers • On-staff experts stand ready to help with issues from the UCC to environmental regulations • Your member web site offers 24-hour access to housing data like county building permit stats • Special councils focus on the special needs of associate and developer members

• Our workers’ compensation plan is expanding because of its highly competitive rates • Free use of the PA One-Call system before you dig • A pioneering health insurance program offering great features at affordable rates • Various professional education seminars • Government affairs experts at work in the legislature protecting and promoting the housing industry • Free subscriptions to high-quality PBA publications If you want to hammer out a plan for success, your PBA member benefits are the best tool at your disposal. To learn more, contact PBA at 717730-4380 or 800-692-7339. Ask for our member benefits brochure.

More benefits also available at www.PaBuilders.org

Here to help PBA staff is ready to help with any question you have

From member benefits to web site logins, legislative issues to building codes, PBA’s staff has the answer you need. Contact us at 717-730-4380 or 800-692-7339. Or, fax us at 717-730-4396. Doug Meshaw, executive vice president ext. 3007, dmeshaw@PaBuilders.org

Scott Elliott, public relations director ext. 3010, selliott@PaBuilders.org

Rob Milne, director of business operations ext. 3015 rmilne@PaBuilders.org

Chris Anderson, communications coordinator ext. 3011, canderson@PaBuilders.org

Mary Ann Jackson, assistant to the EVP ext. 3019, mjackson@PaBuilders.org

Jerry Leach, director of building codes ext. 3012, jleach@PaBuilders.org

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Louis J. Biacchi, government affairs director ext. 3018, lbiacchi@PaBuilders.org

Arlene Miller, director of AMS ext. 3020, amiller@PaBuilders.org

Jill Pento, legislative assistant ext. 3028, jpento@PaBuilders.org

Sally Paff, accountant ext. 3021, spaff@PaBuilders.org

Grant Gulibon, regulatory specialist ext. 3013, ggulibon@PaBuilders.org

Livvy Harmon, office operations manager ext. 3016, lharmon@PaBuilders.org

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PBA’s home on the web lets members track housing issues, access builders’ resources and grow their business! The site contains up-to-date industry and association news, plus links to all the benefits your membership includes.

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ProBuild is dedicated to the success of the home building industry. The company’s involvement at the national, state and local builders association is extremely important to ProBuild and wil continue to grow. ProBuild has been, and wil always PBa’s Premier Partner program provides our sponsors enhanced access to our builder members -- and that can open the door to profitable new business relationships. Here michael Dalzell (right), a sales be, on the cutting edge of new products and services, as well as providing technical consultant with Total Access, chats with Bill lapitsky during the fall board meeting at Nemacolin. and building industry knowledge. ProBuild sales representatives are thoroughly Premier Partners are always welcome to have displays outside board meeting rooms, giving them traithenedPBa in greenPremier building products and can assist you in achieving your NAHB or high visibility with our members.taking During boarda leadership weekends, Premierrole Partnerspromoting also enjoy an hour-long Partners program is energized by an elite group of businesses the breakfast to exchange ideas with PBa’s seniorthat officers.help all Premier PartnersPBa’s are recognized in front of LEED greenofcertiPennsylvania’s fication. For more informati on, pleindustry. ase contact MiPremier chael KurpiePartners l, growth housing provide nondues revenues expand services at each meeting and get regular opportunities to address the board. if you want to reach to members. project, Partners in mind. C.G.A, C.G.P., marketNext develotime pmentyou’re manager, bidding at 800-883-a8800, ext 665,please or e-maikeep l theourboardPremier Pennsylvania’s homebuilders with your product or service, contact Bill lapitsky today. lapitsky is the miGoldke.kurpi l@probuild.com. levelesponsor

PBA Premier Partners - thank you!

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First NatioNal BaNk

Rely on the strength, stability and expertise of Wells Fargo Home Mortgage to address your buyers’ financing needs. With value-added programs, sound lending practices and industry-leading new construction products, our goal is to provide your team the convenience of a single, trusted professional with access to the right products and programs to help you Drive more traffic. sell more Homes. Contact Chris Kulp, Regional Builder Sales Manager, at 215-529-0416 for more information.

First National Bank is your Premier Partner for both your business and personal banking needs. FNB is strong, stable and dedicated to serving clients since 1864 with more than 224 locations covering Pennsylvania and Eastern Ohio. Discover the Silver sponsors freedomlevelof total money management from your Pennsylvania Builders Association ProBuilD Premi er Partner, First National Bank. Visit us online at www.fnb-online.com or call ProBuild is dedicated to the success of the home building industry. The company’s involvement at the national, state and local builders association is extremely 800555-5455. important to ProBuild and will continue to grow. ProBuild has been, and will always be, on the cutting edge of new products and services, as well as providing technical and building industry knowledge. ProBuild sales representatives are thoroughly trained in green building products and can assist you in achieving your NAHB or LEED green certification. For more information, please contact Michael Kurpiel, C.G.A, C.G.P., market development manager, at 800-883-8800, ext 665, or e-mail mike.kurpiel@probuild.com.

Bronze level sponsors

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program coordinator and is available at 800-692-7339, ext. 3010, or blapisky@PaBuilders.org.

warranties, general liability insurance for builders and subcontractors, and commercial auto coverage, to name a few. Provide an RWC insured warranty on your new or remodeled homes and distinguish your company from the competition. You wil have the added benefits of limiting your liability and providing buyers with peace of mind.

total access

PBa’s Premier Partner program provides our sponsors enhanced access to our builder members -- and that can open the door to profitable new business relationships. Here michael Dalzell (right), a sales consultant with Total Access, chats with Bill lapitsky during the fall board meeting at Nemacolin. Premier Partners are always welcome to have displays outside board meeting rooms, giving them high visibility with our members. During board weekends, Premier Partners also enjoy an hour-long breakfast to exchange ideas with PBa’s senior officers. all Premier Partners are recognized in front of the board at each meeting and get regular opportunities to address the board. if you want to reach Pennsylvania’s homebuilders with your product or service, contact Bill lapitsky today. lapitsky is the program coordinator and is available at 800-692-7339, ext. 3010, or blapisky@PaBuilders.org.

Total Access is the tri-state leader in accessibility equipment, elevators and all lifting products. All our consultants are factory-trained to give you the best solutions for any need or want based on the situation you may be in. All products that we sell we install and service with all Total Access direct employees. Please visit our website to see all of warranties, our productsgeneral and serviliability ces thatinsurance we havefortobuilders offer. and subcontractors, and commercial auto coverage, to name a few. Provide an RWC insured warranty on your new or

PHFA turn anticipatedBaNk Homebuyer Tax Credits into cash at the closing table! FirstcanNatioNal First Banktimiseyour Premier Partner business Elbanking igibNational le PHFA firsthomebuyers can receiforveboth up toyour$6,000 to useandforpersonal closing needs. FNB is strong, stable and dedicated to serving clients since 1864 homes and distinguish your company from the competition. You will have with 224 locationsoncovering and Eastern costsmore and/orthandownpayment a newlyPennsylvania constructed home! EligiblOhio. e non-Discover first timethe remodeled the added benefits of limiting your liability and providing buyers with peace of mind. freedom of total money management from your Pennsylvania Builders Association homebuyers can First receiNational ve up to $4,000. cases,at www.fnb-online.com the funds are 0%, noorfeecall Premier Partner Green sponsor Premier Partner, Bank. VisitIn usboth online 800-555-5455. total access loans to be repaid when the homebuyer receives their federal tax refund. Total Access is the tri-state leader intecHNologies accessibility equipment, elevators and all lifting accelerateD BuilDiNg Bronze level sponsors

products. All our consultants are factory-trained to give you the best solutions for any need or want based on the situation you may be in. All products that we sell we install and service with all Total Access direct employees. Please visit our website to see all of our products and services that we have to offer.

Combining the strength and performance of cold-formed steel framing with the superior insulation properties of expanded polystyrene, the accel-E™ Steel Thermal Efficient Resi al Warranty Company,on aLLC,newlyis a constructed leading provihome! der of Eligible written,non-first insured time Panel (STEP) wall system, simplifies framing, insulation and sheathing to one process. costsdenti and/or downpayment Partner Green sponsor homebuyers can receive up to $4,000. In both cases, the funds are 0%, no fee warranti builderswhenandtheremodel ers natireceives onwide.theirSincefederal 1981,taxRWCrefund. has issued Premier loans to ebes torepaid homebuyer accelerateD BuilDiNg This reduces labor costs and shortenstecHNologies the construction cycle. The accel-E™ wall system Combining the strength and performance of cold-formed steel framing with the superior over 2.5 mi l i o n warranti e s and i s an expert i n the fiel d of ri s k management. RWC resiDeNtial WarraNty comPaNy llc from ACCELERATED ing Technolpolystyrene, ogies providthees excepti onalSteelenergyThermal efficieEfficient ncy while insulation propertiesBui ofldexpanded accel-E™ Residential Warranty Company, LLC, isvaria oleading provider of iwritten, insured offers products and servi c es to meet us i n dustry needs n cl u di n g i t s HUDPanel (STEP) wall system, simplifies framing, insulation and sheathing to one process. warranties to builders and remodelers nationwide. Since 1981, RWC has issued virtualreduces ly elimilabor natingcostsunwanted air infilthetraticonstruction on and drafts.cycle. The accel-E™ wall system and shortens over 2.5 million and is anfor expert of risk accepted 10 Yearwarranties standard warranty FHA inandtheVAfieldfinanci ng, management. customized stateRWC This from ACCELERATED Building Technologies provides exceptional energy efficiency while PeNNsylvaNia HousiNg FiNaNce ageNcy

PHFA can turn anticipated Homebuyer Tax Creditsllc into cash at the closing table! resiDeNtial WarraNty comPaNy Eligible PHFA first-time homebuyers can receive up to $6,000 to use for closing

offers products and services to meet various industry needs including its HUDaccepted 10 Year standard warranty for FHA and VA financing, customized state

virtually eliminating unwanted air infiltration and drafts.

For For more more information information on on the the PBA PBA Premier Premier Partners Partners program, program, please please contact contact Bill Bill Lapitsky Lapitsky at at PBA PBA at at 800-692-7339, 800-692-7339, ext. ext. 3030, 3030, or or via via e-mail e-mail at at blapitsky@PaBuilders.org. blapitsky@PaBuilders.org. January/February 2010 • Keystone Builder

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Left: T board PBA E at the Fertig nomi

Fall board meeting at Nemacolin T

he Pennsylvania Builders Association Board of Directors meets three times annually. In November 2009, the board held its fall meeting at Nemacolin in Farmington. It’s important for all members to know they are welcome and encouraged to attend PBA board meetings. Seeing your board in action, and the multitude of committees and councils that meet to tackle housing issues, will help you better appreciate the value of the work done by PBA protecting and growing the housing industry in Pennsylvania. PBA is driven by strong member involvement, as these pictures show. The next board meeting will be Feb. 18-20 at the Hilton in Scranton. For more information, please contact Mary Ann Jackson at PBA at 800-692-7339, ext. 3019, or mjackson@pabuilders.org. We encourage your involvement! s

Longtime PBA member Robert Yanover (right), York County BA, was named a PBA life director during the board meeting. Presenting his certificate is Ray Fertig, who was chair of the nominating committee in 2009.

The board weekend at Nemacolin Woodlands Resort included a BUILD PAC fundraiser on Friday evening. Here PBA Treasurer Joe Harcum (left) leads a discussion with Betsy Dupuis and others. BUILD PAC is National Association of Home Builders’s political action committee, which supports political candidates interested in promoting a vibrant housing economy.

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Left: The officer candidates for 2010 are presented to the board for their election. The current senior officers and PBA Executive Vice President Doug Meshaw are seated at the table. At the podium addressing the board is Ray Fertig, PBA past president and the 2009 chair of the nominating committee.

Right: Most board meetings include hospitality nights that allow members to meet socially. Here PBA member Robert Fisher (middle) and his wife, Beth, interact with PBA staff member Grant Gulibon. The two men work closely on issues related to Department of Environmental Protection and the federal Environmental Protection Agency regulation of the state’s housing industry.

Left: For 2010, Jim Miller (head of table) is the associates council chair. PBA’s associates council meets during every board weekend and provides a wonderful environment for exchanging information and addressing associate members’ concerns as well as providing a venue for these members to share ideas and help guide PBA .

Below: PBA’s senior officers hold a breakfast roundtable with the association’s Premier Partners, which are our sponsors. This regular meeting provides a lively exchange of ideas that PBA leadership and sponsors appreciate.

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Water, water

everywhere Expert says EPA cleanup plan is based on bad science – and can mean zero growth

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by M.H. Morrison he Pennsylvania Builders Association is once again at the forefront of fighting for the rights of members and homebuyers. An ongoing battle over total maximum daily loads could help shape policy and procedures that will affect future development and water quality, not only in Pennsylvania but also across the country. Robert J. Fisher of R.J. Fisher and Associates in New Cumberland is helping to lead the association’s efforts to respond to TMDLs as chairman of PBA’s task force on the issue. One of the most significant of those responses started with a TMDL issued for the Harrisburg-area Paxton Creek. The creek was designated as an impaired water body, and the affected communities were ordered to meet new, strict pollution limits that Fisher and other experts have said are based on “bad science.” If those limits were allowed to go into effect, the result of the Paxton Creek TMDL would be to halt building in a large area of central Pennsylvania. As a result, a coalition was formed to file a lawsuit and force the U.S. Environmental Protection Agency to look again at its procedures. At this point, Fisher said there appears to be a victory in the case for the Home Builders Association of Metropolitan Harrisburg and builders. A major decision by the EPA’s Science Advisory Board agreed with the suit’s assertion that the determination of the TMDLs was based on flawed procedures, not valid scientific methods. TMDLs issued all over Pennsylvania, including the one issued for Paxton Creek, are being reviewed by EPA to determine if they should be changed.

What is a TMDL? A TMDL represents the maximum amount of a pollutant that can enter a body of water and allow that body of water to meet water quality standards for that particular pollutant. A TMDL also allocates the allowable amount of each pollutant to its sources. After a body of water is designated as impaired, then a TMDL is developed to remedy the situation. Fisher said that, 14

in general, the impairment is determined by an analysis of the plant growth and/or nutrients in the body of water. The problems that may need to be remedied to meet the TMDLs can be from various sources, such as sewage treatment plant discharges, stormwater from developed areas and farm runoff. For builders, this can mean restrictions on how and where they can develop land and eventually can lead to a “zerogrowth” future.

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The TMDL Challenge The Home Builders Association of Metropolitan Harrisburg, Lower Paxton Township and several other municipalities joined together to challenge the EPA/DEP TMDL process based on the following: • Illegal water quality standard adoption • Illegal amendment of an impairment designation • Violation of public notice requirements • Illegal TMDL • Scientific procedures that are not accepted • Arbitrary DEP approval of an EPA TMDL document • Failure to consider site-specific information

Litigation Status • DEP requested a jurisdictional hearing to determine whether the case can be heard in Pennsylvania. No date has been determined. • EPA allowed its Science Advisory Board to review the Paxton Creek TMDL. Now, EPA must decide if it will change the current TMDLs based on the board’s findings that the science underlying the TMDL is flawed.

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The HBA and Paxton Creek The lawsuit and fight over the Paxton Creek TMDL began with an EPA meeting that Fisher attended at the Lower Paxton Township building. With additional research, he found that several other municipalities were also targets of the new model to determine TMDLs that was being used for Paxton Creek. The methods used to analyze the Paxton Creek and other locales would, if implemented, become the national standard for developing TMDLs. Fisher explained that this recent change in scientific tactics by EPA and DEP was a way to speed up the determination of TMDL pollution limits.

Questionable science In addition to procedural issues, the lawsuit included information about the science used to determine the TMDLs. It took some pushing, but eventually EPA allowed the science to be reviewed by its SAB. “The preliminary findings are that the science is flawed,” Fisher said. With these findings, the TMDLs are still in limbo. The suit is asking that they be withdrawn or modified. A related fear is that, with the economic slowdown, housing developments will not be completed in the five-year time limit of their current Department of Environmental Protection permits. This may mean that developments that were on hold will have to be redesigned to meet the new permitted levels. Of course, Fisher, the HBA of Metropolitan Harrisburg and PBA are working diligently to see that the new levels are

Established 1946

modified to scientifically valid levels and that remedies are developed and implemented that actually resolve the environmental issues.

Why should you care? “TMDLs have the potential to stop all building within a drainage area, cost builders a significant amount of money to achieve compliance and still not correct the environmental issues,” Fisher explained succinctly. These new methods of determining levels from EPA generated extremely restrictive stream nutrient standards for the three watersheds on which they had been used. If expanded, they would produce similar results for other areas, including those in the Chesapeake Bay watershed, for which EPA is currently developing the most complex TMDL in its history. PBA’s task force, led by Fisher, is also working to evaluate the science behind the Chesapeake Bay TMDL and develop solutions that generate the largest environmental improvements for the lowest possible cost. s

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888-443-7937 www.Dryerbox.com January/February 2010 • Keystone Builder

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Member spotlight

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Bellagio Builders

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specializes in energy efficiency by T.W. Burger ellagio Builders in Erie is sailing into its second decade, all geared up to create comfortable, creative, energy-efficient homes. Owner Daniel Francoeur said his outfit is National Association of Home Builders-certified in green building technologies and is a certified graduate builder. He and his crews specialize in designing and constructing energy-efficient homes and remodeling existing structures. In an article in a local newspaper two years ago, Francoeur said he believes that the wisdom of spending an extra 10 percent for green construction will become more apparent as time goes on. Energy is only going to get more expensive, he said. Over the years the biggest challenge has been putting together the right crews to do the jobs the way he expected them to be done. “Finding good crews has been a tough one,” he said. “There are a lot of subcontractors that claim to be the best, but when it comes down to it, they’re not the best after all.”

Two years ago he hit upon the right combination, he said, and things really took off for him. “I have a very good crew. About 35 percent are Amish,” he said.

Facing new challenges and succeeding The business has taught him that construction is rarely a matter of black and white. The trade presents many challenges, not the least of which has been the economy. “We’re hanging in there. There are so many facets to it, and you have to be good at all of them: administration, sales, advertising, production, keeping your ear to the ground to see all the new products coming out,” Francoeur said. “You can’t be afraid to try new products. I’ve pioneered the use of several new products in my area: PEX plumbing, geothermal. In fact, in our area we also pioneered the use of insulated concrete forms. They are standard for our basements. My area is very conservative as far as trying new things. In fact, we have two big manufacturers of concrete blocks. So, we’ve

Business quick facts: Bellagio Builders

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• Owner: Daniel Francoeur • Years in Business: 10 years in business • Counties of Operation: Erie and Crawford • Local Associations: Better Business Bureau of Western PA; board director, Builders Association of Northwestern PA; Pennsylvania Builder’s Association; National Association of Home Builders; and Erie Yacht Club • Association Involvement: Vice president (2009), Builders Association of Northwestern PA • Web Site: www.bellagiobuilders.net 16

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had competitors come around our jobs at night to check out the way we do things.” Francoeur is a board member of the local builders association. He said belonging to professional associations has taught him that he is not alone – that the things he and his company have gone through are the norm. “That creates confidence that the issues I experience are the same as everybody else is having,” he said. “It’s nice to learn from the older builders’ experience. They’ve gone through several recessions in the past and can give good advice.”

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Green building presents opportunities Last year, Bellagio went through a six-month slow-down. “But we’re extremely busy this second half of the year, in part, because we build more energy-efficient homes,” he said. “The hippies and the tree huggers brought the whole green thing to the surface. Some of their approaches were kind of strange and eccentric, but some of those ideas made economic sense. The key is that there has to be some pay back to the up-front investments. There are different shades of green.” Bellagio has built homes for clients with immunity problems or sensitivities. Francoeur said customers are often impressed with the number of suggestions his team makes during a project. They built one house that was concrete from the basement all the way up to the attic, with hurricane-proof windows. The whole house, in fact, was hurricane proof. That was what the client wanted, and that was what he got – despite the fact that Erie does not get hurricanes. “I’m originally from Canada, and it gets pretty cold there. We think about issues like air quality, about the sustainability of the home. We build a pretty darn good home. I guess that’s why we’re still in business, even after two recessions. We’ve proven we can survive,” he said.

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A business that cares A memorable project for Bellagio was not about business. It occurred when one of the firm’s employees died unexpectedly. “He had no life insurance. We, along with some volunteers, raised some funds for the family. One family member had special needs, and they needed some remodeling for their home,” Francoeur said. On a personal level, Francoeur has been working for two years developing a business plan for a community center in his area with double ice rinks. “I’m getting ready for a second round of presentations to local politicians. Not to build it myself, but I’m spearheading it as a community project,” he said. s

Ask Us About Serving PA. Pros 8 Pa. Locations • 800.345.8175 January/February 2010 • Keystone Builder

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Igniting the passion within Continued from page 9

“There is always some issue that is important. My job, as president, is to help ignite that passion in PBA members so that they become more vocal and involved in their industry.” There is so much going on that impacts our businesses – our livelihood,” the new president added. “The first step is to be

aware of the issues, and the second step is to not sit around and take it, but to stand up and make a difference.” Mackey concluded, “You can’t achieve change by yourself, but you can with many. This year, I am going to ask other leaders to help me engage the membership, so we can become a stronger industry and a more effective association.” s

New president at a glance President: Joe Mackey, owner of Target Homes, East Stroudsburg Years in business: 22 years Local affiliation: Pocono Builders Association, where he previously served as president. Additionally, he has been involved in several community organizations including the Monroe County Affordable Housing Committee, Monroe County Habitat for Humanity, Muscular Dystrophy Association and the United Way of Monroe County. Nugget of wisdom: Only expect to get out what you put into it – this applies to life, business and association membership. When presented, take the opportunity to meet someone different, learn a new method, and surround yourself with people who are smarter and/or more successful than you. They are almost always willing to lend a hand and, in the process, some wisdom is sure to rub off on you. Joe Mackey enjoys motorcycles, classic cars (especially Corvettes) and scuba diving. He is pictured here with his 2005 Harley Fat Boy. He’s been riding motorcycles for 25 years.

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ut to er

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