Keystone Builder - May/June 2006 by Pennsylvania Builders Association

May/June 2006

Route to: ❑ President ❑ Purchasing ❑ Sales/Mktg. ❑ Superintendent

Flint, MI Permit No. 512

PAID PRSRT STD U.S. Postage

The window on the left was built in the 1930s. The one on the right, last week. Or was that vice versa?

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A.D. Moyer Lumber, Inc. All Locations

John H. Myers & Son All 6 Locations

MRD Lumber Co. Both Locations

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www.jhmson.com 800-637-0057

570-366-0578

Shelly’s Lumber Building Supplies All Locations

Klinger Lumber Co., Inc. Elizabethville

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717-362-3311

215-723-5108

Fagen’s Building Centers, Inc. Pittsburgh

Stock Building Supply PA, DE & New Jersey Areas

Kohl Building Products All 8 Locations

412-323-2100

www.kohlbp.com 800-578-5645

J.H. Brubaker, Inc. All Locations

Lezzer Lumber All Locations

800-723-5546

www.lezzer.com 800-326-9562

Strober-Haddonfield Group Easton 610-252-6190

The Lumber Yard All Locations www.thelumberyard.com

Walter & Jackson All Locations www.walterandjackson.com 610-593-5195

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This house has been rewired, rewindowed, re-everythinged. Except replumbed. Tell your homebuyers you insist on using durable, reliable copper plumbing. Nearly 70 years ago, this house was built with the finest materials, including copper tube and fittings. Today, the original plumbing system is still providing trouble-free service. It should come as no surprise, then, that builders all across the country continue to choose copper plumbing for their projects. So make sure homebuyers know your homes are built with the only plumbing material with such a longstanding reputation for reliability – copper. Our Builder Satisfaction Program has everything you need, including Quality is the Reason pamphlets, stickers, hang-tags and literature displays. We’ll tell

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Keystone

Official publication of the Pennsylvania Builders Association®

b u i l d e r Contents

13 Exploring Energy Series 16 17 Forecasting Pennsylvania’s growth Welcome home 20 Builder Case Study 24 30 Making the dream a reality PBA Premier Partners 30 Don’t miss out

Volume 3 • Issue 3 May/June 2006

Learn why PBA membership offers builders assistance, from tangible benefits like group health insurance discounts, to intangible benefits like networking opportunities.

Find out how insulated concrete forms’ cement-filled polystyrene blocks create stable, airtight walls.

A picture of the expected growth in Pennsylvania, which is sunny in parts of Pennsylvania, but gloomy in others.

PRESIDENT Bradford H. Elliott HBA of Bucks/Montgomery Counties VICE PRESIDENT Stephen D. Black, BIA of Lancaster County PBA ASSOCIATE VICE PRESIDENT Rob Jones, Central Susquehanna HBA SECRETARY Ray Fertig, York County BA TREASURER Kenneth L. Medina, Lebanon County BA IMMEDIATE PAST PRESIDENT James L. Conner Lawrence County BA

Dewey company leads “Extreme Makeover” project that gives Philadelphia family a new home.

John Yarnall and Jim O’Shea of Shaffer & Son Inc. make seamless transition from generation to generation.

Pennsylvania lenders take part in $6-million, first-time homebuyer assistance program to make it possible for more residents to own their home.

Meet the newest PBA Premier Partners, who are supporting the activities of the association while gaining valuable exposure.

KEYSTONE BUILDER is published six times per year by the Pennsylvania Builders Association, Editorial Offices, 600 North Twelfth Street, Lemoyne, PA 17043. 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.

Departments Builder News Briefs ............................................................................. 7 President’s Column............................................................................... 9

Members-Only Section On the Hill: Up-to-date legislative information for our members................................................................A Developers Briefing: EPA considers program to enforce stormwater regulation compliance.......................................B Association News: An update on PBA products, services and events......C Ultimate Code Concerns: A Q&A addressing members’ top concerns on code issues. ................................................D May/June 2006 • Keystone Builder

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I Keystone Builder • May/June 2006

Builders

News Briefs

Homeowners, builders lose as Rendell vetoes ‘Requirement to Repair’

Are builders facing problems with UCC administration and enforcement?

ennsylvania builders and homeowners lost a helpful alternative for resolving construction disputes with Gov. Edward G. Rendell’s veto of the Residential Construction Dispute Resolution Act (House Bill 1467), also known as Requirement to Repair. In a phone call with PBA President Brad Elliott March 17, Rendell explained that he was swayed by the legal opinion rendered by Attorney General Tom Corbett, who said he thought the bill was unconstitutional. In issuing his veto, Rendell choose to ignore three separate and independent legal opinions rendered by firms that have expertise in real estate and construction defect litigation. Those three firms, retained by PBA, issued their legal opinions that the bill is constitutional, differing with the judgment of Corbett. “The governor should have signed the bill into law so that it could have been tested in the state courts,” said Brad Elliott, PBA president. “Instead, we have lost a tremendous opportunity to provide builders and new homeowners a helpful, low-cost and easy-to-follow alternative to legal action that consumers tell us they want.” The fact that similar legislation is working in 27 other states, as well as research data showing the effectiveness of Requirement to Repair laws, was not enough to convince Rendell to sign the bill, which had passed by large margins in both the state House and Senate. PBA would like to thank the hundreds of members who called and wrote e-mails to the governor asking for his support.

PBA needs your help to gauge the types of problems members are having with the administration and enforcement of the UCC. The association is aware of selected problems but, without your input, it’s impossible to learn the depth of the problem and work toward solutions. PBA’s UCC task force works to solve problems with the enforcement of the UCC. The association is conducting background research for its “UCC fix-it” bill (House Bill 881) and needs examples from members to demonstrate the need for changes. Please contact Doug Meshaw at (800) 692-7339, ext. 3007, if you have been experiencing problems with the way local officials and inspectors enforce the UCC. Please be assured that PBA will consider all reports anonymous — PBA will not use the names of members in any documents describing problems with the implementation of the code.

PBA scores another UCC victory in Monroe County Following a challenge mounted by PBA, the state Department of Labor and Industry in late March rejected a UCC-related ordinance proposed by Coolbaugh Township, Monroe County. That ordinance would Continued on page 29

Bill providing mortgage assistance moves to Senate A bill that would boost the state Homeowners Emergency Mortgage Assistance Program with 60 percent more money has passed the House and now is headed to the Senate. Rep. John Taylor, R-Philadelphia, sponsored the bill, House Bill 2380, that would provide up to $8 million to Pennsylvania families through the Pennsylvania Housing Finance Agency. Since the program began in 1983, more than 33,000 homeowners received loans to help them avoid foreclosure during periods of financial instability through no fault of their own.

PBA seeks statewide involvement in Associates Council PBA encourages each local builders association to appoint a representative to the Associates Council, much as they now do for the government affairs committee. The Associates Council works to ensure that the needs of associate members are being addressed; it also oversees the growth of PBA’s Premier Partners sponsorship program, which is raising nondues revenue to support association programs. The council usually meets on Saturday morning during PBA board meeting weekends. Contact Scott Elliott at (800) 692-7339, ext. 3010, or by e-mail at selliott@pabuilders.org to join the council.

May/June 2006 • Keystone Builder

S I T E

D E V E L O P M E N T

E X C A V A T I O N

P A V I N G

U T I L I T I E S

Our work is most appreciated after weâ&#x20AC;&#x2122;re out of site. It pays to use the site contractor with a record of on-time delivery that is the standard for the industry, because the sooner your sitework is done, the sooner you can start to build. You can think of it this way: Out of site, out of bind.

ALLAN A. MYERS A C O M PA N Y O F

American Infrastructure P.O. Box 98

I Keystone Builder â&#x20AC;˘ May/June 2006

Worcester, PA 19490

610-584-6020

www.americaninfrastructure.com

Keystone President’s Official publication of the Pennsylvania Builders Association®

Message

b u i l d e r An exclusive publication of 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. 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 Advertising does not imply acceptance or endorsement of the products contained in the publication. PBA members are welcome to submit article ideas for upcoming issues of Keystone Builder. Suggestions for articles showing industry trends, providing information that will help members operate their businesses and other topics relevant to the industry are welcome. Lead time for articles is two months prior to the issue date. Contact editor Eric Wise at (800) 692-7339, ext. 3003, or by e-mail at ewise@pabuilders.org. Publishing and advertising sales services provided by:

2929 Davison Rd. • Flint, MI 48506 Phone: 800-935-1592 • Fax: 810-239-2231 Editor Eric C. Wise Assistant Editor/Publication Director Jennifer McDermitt Advertising Sales Jeff Pinwar Graphic Design Michele L. Peterson For information on advertising in the Keystone Builder please contact Jeff Pinwar, 800-935-1592. Please support the advertisers who have made this publication possible.

Leave nothing on the table eading up to the annual mid-April taxfiling deadline, hundreds of accountants and tax professionals encourage Americans to leave nothing on the table as they prepare to file their taxes. Similarly, employees are reminded not to leave compensation on the table — to contribute to 401(k) retirement plans at a level that takes advantage of their employer’s match. As your PBA president, I’m using this column to tell you the same thing about your membership in our builders associations. Like most of you, I followed colleagues who first got me interested in my local builders association. I value local membership to the extent that I currently belong to three local builders associations in Pennsylvania and one in New Jersey. Yet, the local builders association is just the first of three levels of membership, complemented by the National Association of Home Builders and PBA. As a rising leader in PBA, I gained a greater understanding of the benefits that come with statewide membership. Now, as your president, I encourage all of you to take advantage of the benefits your dues support. Don’t leave anything on the table. PBA’s value is multidimensional. For instance, PBA delivers a huge value as it represents and promotes the industry by demonstrating the benefits we provide for our communities, often in the face of public misunderstanding that stems from anti-growth misinformation. Many of our wins are imperceptible on the surface but save our members time and money year after year. Others wins are very tangible. A leader in driving Pennsylvania to adopt the Uniform Construction Code, PBA serves as the state’s primary resource for UCC information and stands up to dozens of municipalities that try to exceed the code in ways that would make homeownership unaffordable for Pennsylvania’s working families. PBA also provides its members access to the PA One Call service, allowing them to check for

Brad Elliott

PBA President As a rising leader in PBA, I gained a greater understanding of the benefits that come with statewide membership. Now, as your president, I encourage all of you to take advantage of the benefits your dues support. Don’t leave anything on the table.

underground utilities for free under PBA’s membership in the program. Often it is not just what you know but whom you know, and PBA provides networking opportunities through which members can share their solutions to construction problems. I have heard of many new construction techniques, money-saving technologies and even of new suppliers from other members at one of our events. Additionally, PBA keeps members up to date on breaking industry news and educational information through our various communications offerings: Keystone Builder magazine, our TradeSecrets electronicnewsletter and the revamped PBA web site. Unfortunately, some of our members still leave many of these benefits on the table. Let me give you an example. TradeSecrets is our biweekly e-mail newsletter that also is available in a web archive at Continued on page 10

May/June 2006 • Keystone Builder

PRESIDENT’S MESSAGE Continued from page 9

http://tradesecrets.pabuilders.org. TradeSecrets provides a quick read as all its stories are executive summaries — just enough of what you need to know. Last year, your leaders voted to expand TradeSecrets distribution to everyone, and members who receive it report they like it. But, with only 3,000 e-mail addresses for PBA’s 11,000 members, we aren’t reaching all our members with this vital information that could help their business. I encourage you to contact PBA staff member Eric Wise by e-mail at ewise@pabuilders.org or (800) 692-7339, ext. 3003, to request your free TradeSecrets subscription and to obtain your login code for the PBA web site. While some parts of the site are available to anyone who visits www.pabuilders.org, many web pages offering information of great value to your business are located in the members-only section. In the members section, you may participate in our discussion forums, which are a lot like chat rooms where you can share problems

and solutions online with other members. As another example, dozens of members visit the web site to copy and use the model building contract posted there. Offered as an example, the contract will help you develop a contract that protects you and your customer’s interests. PBA updates the web site every week with information on regulations, industry developments and legislative changes, so new information is available every time you visit. In 2005, PBA activated its members, using an e-mail letter campaign, to defeat two attempts to raise the realty transfer tax. We need your support — from members in all parts of the state — to demonstrate the strength of our industry and to convince lawmakers to see our perspective on important issues. I know from years of attending events that in our business we often prefer working outside to spending time in an office or, worse yet, in front of a computer screen. But to keep up to date of critical business issues today, getting connected through technology, specifically, the Internet, is necessary. Your

PBA membership makes that easier than ever to accomplish. Your customers use e-mail and the Internet. As new tech-savvy customers continue to reach adulthood, more of them will expect this from you. Take a leap into the electronic age to benefit you and your business. While you are at it, bring your association with you. Save www.pabuilders.org as one of your web favorites in your browser bar and check it every week or so. Your dues make it possible and you should gain the full benefit from it. Also, provide your e-mail address to your local association and PBA. They can serve you best if they can get the information to you instantly and at no cost. Today, e-mail makes that possible. I urge you again to manage your PBA membership as wisely as you manage your business operations. Take advantage of what’s coming to you through your PBA benefits. Get the most of your dues investment and remember, leave nothing on the table.▲

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I Keystone Builder • May/June 2006

REGISTRATION OPENS IN JUNE

THREE RIVERS BUILDERS SHOW SEPTEMBER 28-29, 2006 • PITTSBURGH, PA DAVID L. LAWRENCE CONVENTION CENTER

The 32nd annual Three Rivers Builders Show™, formerly known as the Building Industry Trade Show, is the single most important residential and light commercial building show in the region. • Visit more than 250 booths showcasing the latest building products • Attend education sessions covering the latest best building practices • 4,000 building industry professionals are expected to attend, you don’t want to miss it!

www.3riversbuildersshow.com May/June 2006 • Keystone Builder

I 11

May/June

2005

Builder Case Study ness and later attended Penns ylvania State University to furthe After graduating r his knowledge in this field. with a civil engin degree, he soon eering began to take over the busin for his father and was name ess d owner in 1979.

e 2005

May/Jun

Lending a Hel

ping

Zimmer Gro ve Homes, In c. Owners build the

by Nikki Bra nd

American Drea m through busi ness

ventures, com munity

programs and oger Zimmer association and Bill Grove Born to Bui involvement. do not merely build homes, they build the Seven years ld American dream. After ago, Zimmer “One of the things decided that and Grove their clients have working all day to make sure their 90 years that sets us apart others is that the perfect house of combined rience would from each time and resou , they donate expebe a great servic rces house ourselves,” one of us could build an entire the industry, e to clients and one in the comm to programs that help every so they forme all of the trades Zimmer said. “We’ve learne unity have a nice d Zimmer Grov Homes, Inc. d and know every enjoy contributing home. They The e comp into building any focuses family home a home. We have thing that goes on singlefor people who to the construction of home s, but they also s tors and suppl great subcontracotherwise might construct commercial build iers afford them in not be able to ings the Habitat for understand what and our experience helps us remodeling end and are expanding the Humanity progr and helping peopl they need to do. of their busin am, always put the e ess. client first, and Our goal is to with disabilities in need — such as people some of the ways we help them — rehabilitate is by making or repair their homes in Chris sure tmas in most for their dollar and teach they get the “One of the aspec April projects. ing them about such subjects ts both of us as quality and about our jobs really like energy is Zimmer and dream,” Grov building the American Grove have almo efficiency.” e said. “I think predisposition st a genetic it’s to take a piece of land and build amazing to try. Both come entering the building indus lasts a lifetim from families a house that e. I began gathering of builders and has when they love to see the joy a famil experience at y move an Zimmer said his father was early age. The two owne into their new home.” started working a builder and he Inc. in Harrisburg rs of Zimmer Grove Hom with him when es, After he also was being devote a 15. intrigued about supporting the the industry as child, he attend industry. They lot of time to a ed Elizabethto presidents of are both past the wn became know ledgeable about College and of Metropolita Home Builders Associatio n practices and quality busin n Harrisburg ess , but the standards help the indus and procedures try prosper and their quest to operating a busin of stop there — grow doesn’t ess by earnin From (L to it includes invol business mana g a degree in R), Brian A. Hudson Sr., gement. Pennsylvania vement in the director/CEO execu Builders Asso of “I really enjoy Finance Agen the Pennsylvania Hous tive ciation and National Asso puttin g togeth cy ing ciation of Hom helps a family er a project that Pennsylvania presents a VisitAbility and the comm e Builders. in certificate of unity, ” Grove Zimm Zimmer ands service to Roge ’s father was er said. Bill Grove. a builder, r started helpin g his father when too, and he years old. He he quickly got “hook was just 14 ed” on the busi-

Han Zimmer and Grove are pione d VisitAblity in ers in the Pennsylvania Initiative — new program a organized by the Pennsylva Housing Finan nia ce Agency (PHF Pennsylvania Housing Resea A) and the rch Center (PHRC) to build homes that are people with acces sible to mobility “We were very limitations. excited to be The staff of this program,” a part of Zimmer Grov Zimmer said. Pennsylvania e Homes, Lieutenant Gove “The Inc. was proud program, and are Jeff Dani to to dedicate the rnor came to the ceremony els, RE/MAX also received assistance build a home for the home. We learn Chris Dani agent; Bill VisitAbility from RE/M els, dous amount Grove, co-ow in ed a tremenfrom John and Jean RE/MAX agent; Joy ner of Zimm AX agents. From (L to Dani er Grove Hom we had to expan this experience becau R) assistant and ne Motto; Gwen Arms els, RE/MAX agent; se es, Inc.; d our knowledge owners of trong Roger Zimm design a home the VisitAble of how to er, co-owner , Zimmer Grove Hom that meets the home, ing as president es, Inc. admi of Zimmer son with mobi needs of a perGrove Hom in nistrative lity es, Inc. 2005 Pennsylvan 2003, Zimmer was named ble’ way. When impairments in an ‘invis ia Build director of the ier of the you walk into highest honor PBA, said their you would never the home, for a builder memb Year — the build invol know ers veme assoc er in this was a home “It was a great nt in iations helps with special honor because the PBA. homeowners accommoda allows them bers voted for tions.” and the memto share know Zimmer Grov me ledge with other builders and shows their respe to receive this award; it learn from them builders acros e Homes, Inc. was one of six s the state to . “We are inter tion of my know ct for me and their appre participate in program. Jeann cialedge of home the homeowners, ested in helping future e issues,” said building and I believe chased the house and John Motto, who purZimmer, who them through we represent Zimmer Grov is currently the PBA regio were ecstatic our e nal completed, association vice president about their new ment,” Zimm involvefor the mid-e region. “It is er said. “The home. ast a great rewar current and future home d for my effort Zimmer and owne s.” Grove suppo regulation and rs are affected by overrt PBA projects cost increases. and don’t hesita numerous Owners Rec involved in in new progr te the association Being ognized for ams. In the 1980 to participate s also helps stay up-to-date NAHB found s, Association us on issues that ed the Certified when the Involvement hurt our busin could help or Builder progr Graduate ess.” Although they am, Zimmer Zimmer and was one of the graduates and work, their effort are humble about their hard first also became protect home Grove work tirelessly to s have not gone an instructor. Grove, who owners and years of contri serves on the the industry buting to the PBA, unnoticed. After getting invol tors for the HBA board of direc by ved in influ including servof encin Metro ment officials g governHarrisburg as past president about nume the representative rous issues. Grove said and is a lifetim he and Zimm e er have deve relationships loped with several legislators who help support the industry. “Many assoc iation members in fighting the got involved Realty Trans fer Tax. We also educated home owners on how them,” Grov it would affec e said. “Sinc t e many of those types of issue s affect home owners, we believ our involveme nt e offer our client in the associations helps us s the best. It makes a big ference when difgreater numb ers homeowners of builders and get islators about involved in influencing legproposed regul ations.” Whether it’s through their munity invol business, comveme tion, Grove and nt or association participaZimmer say they love what they do and look Bill Grove and in the industry. forward to many more years Homes, Inc. Roger Zimmer happily “Keeping up seven years combined on this everchanging indus their experienc ago. try is challenging e to form Zimm and I see our , but Roger er Grove jobs Grove said. “Neit as exciting and rewarding, ” her of us could being in any ever imagine other industry.”

Don’t miss out PBA membership offers business advantages

by Nikki Brand or 20 years, PBA has helped both the building industry and individual companies in it grow and thrive. Membership offers builders assistance in numerous ways, from tangible benefits like free use of PA One Call, to intangible benefits like networking opportunities. Do you know all of the ways that membership can help your business?

PBA provides members continuous industry updates The quickest and easiest way to get reliable industry news is through PBA’s free communications. PBA sends Keystone Builder bi-monthly to its members. The magazine features industry trends and information, articles to help members run their businesses and a monthly update from the association’s president. Although Keystone Builder appears six times a year, PBA provides other avenues for more timely updates, the PBA web site and an electronic newsletter. PBA staff provides ongoing updates for the web site, at www.pabuilders.org, for members and consumers. The site also has educational information that can help a builder’s business. PBA members can create a username and password to access several members-only sections on the site. The government affairs section, found in the members-only section of the site, allows members exclusive information on the industry’s hottest topics, including updates on legislation that could ultimately affect their business. One of the most requested areas of the PBA web site is the model building contract. Listed under the Resources section, this model agreement is provided for use by members solely as a sample in developing — in consultation with the member’s own legal counsel — a form agreement that is tailored to meet the needs of the member’s business and to ensure compliance with all legal requirements in effect at the time and at the place the agreement is to be used. The web site offers links to local associations’ web sites, an interactive issues forum, committee information, housing start updates and contact information for all PBA staff.

PBA members can sign up to receive the free e-newsletter TradeSecrets. This newsletter is conveniently delivered to members’ e-mail boxes every other week to keep them informed on legislative or regulatory news. Members can view news briefs with links and phone numbers for more information. The newsletters are archived at http://tradesecrets.pabuilders.org. To sign up, contact Eric Wise at (800) 692-7339 ext. 3003, or by e-mail at ewise@pabuilders.org.

PBA committees stand up for the industry PBA’s government affairs committee — the lobbyists who represent the organization before state legislators and the Pennsylvania Committee for Affordable Housing political action committee — all work hard to help the building industry have a bright future. PBA staff monitors bills that could affect the industry and provides ways for builders to make their voices heard to legislators. PaCAH raises and distributes money to support selected candidates running for seats in the General Assembly. • Uniform Construction Code. PBA supports the UCC, which took effect in 2004, but has worked to protect the UCC from excessive ordinances that would weaken the uniformity of the code and needlessly raise new-home costs. Task force members participate in hearings before the Pennsylvania Department of Labor and Industry to explain their views of why the ordinances aren’t justified. “We have filed four challenges this year and expect to file more in the next few months,” said Frank Thompson, chairman of the task force. “We also want to make sure municipalities follow the proper procedure of getting ordinances passed. We’re working hard to try to maintain uniformity across the state.” Thompson encourages builders who know about proposed ordinances in their regions to contact Doug Meshaw at PBA so the task force can review those ordinances.

PBA staff provides ongoing updates for the web site, www.pabuilders.org, for members and consumers. The site also has educational information that can help a builder’s business. PBA members can create a username and password to access several members-only sections on the site. The government affairs section, found in the members-only section of the site, allows members exclusive information on the industry’s hottest topics, including updates on legislation that could ultimately affect their business.

Continued on page 14

May/June 2006 • Keystone Builder

I 13

DON’T MISS OUT Continued from page 13

PBA’s government affairs committee recommends policies to the board of directors, sets legislative priorities and sometimes forms task forces to address priority issues. In 2006, PBA leaders added contractor registration as a legislative priority and formed a task force to address it. The task force jumped into action and resolved several issues with the bill introduced by Sen. Robert Tomlinson, R-Bucks. Other task forces are working to address issues with the Chesapeake Bay Tributary Strategy, land use and regional planning.

Workers’ compensation insurance can work for you PBA’s workers’ compensation program offers competitive pricing, potential dividends and aggressive claim management to builder members. It supplements the income for associations while offering discounted rates to members. E.K. McConkey is located in York and has been in existence for more than 100 years. Its two main focuses are good customer service and helping to market the program — including assistance for local associations by offering flyers, seminars at local meetings and various other marketing materials. “We market the program to insurance agents, executive officers in local associations, current PBA members and contractors who are not PBA members,” said Steve Buterbaugh, vice president and shareholder of McConkey. He said they also follow up and manage leads for local associations. The policies are underwritten by Eastern Alliance Insurance Group. Located in Lancaster, Eastern Alliance issues the policies, handles claims and provides risk management services for the workers comp program. You can learn more about this program at www.ekmcconkey.com/pba.htm.

Be a hero to your staff with Aflac One of PBA’s newest member programs is the supplemental insurance coverage provided through Aflac. Aflac programs are designed to assist people with the out-of-pocket costs related to medical expenses and disabilities. Employees choose which policies they want — they pay for the premiums themselves; the benefits are 14

I Keystone Builder • May/June 2006

not group programs — and the benefit is paid directly to the policyholder. For no cost to the employer, PBA member-companies may allow their employees to participate. Employees chose the coverage they would like (at group discount prices) and pay their own premiums, often through payroll deductions. Aflac provides businesses with the IRS Code Section 125 plan document that is required for participation in the program, saving companies the money of paying for expensive plan documents. Employees can appreciate their employer offering Aflac benefits, because it allows them to pay for benefits they normally wouldn’t have and saves them money they would spend if they bought policies from other companies in the insurance industry that typically cost more. Benefits are distributed by Alfac regardless of other insurance the policyholder uses to cover the same medical expense or disability. Aflac offers an array of policies that pay for such expenses as vision, dental, hospitalization, cancer treatments, disability leave and nursing home confinement. Alfac policies are customized to each employee’s needs. Aflac can also set up flexible spending accounts. Employees can set aside a certain amount of money to be deducted pre-tax from their paychecks for un-reimbursed medical and dependent day care. Money designated for un-reimbursed medical expenses can be used for expenses not paid for by health insurance, such as doctor visit co-pays, prescription co-pays and eyeglass frames. Dependent Day Care money can be used to pay for child care. Offering Aflac can help company owners attract and retain good employees. Aflac representatives can make presentations to individual companies or larger groups, such as local associations. PBA members interested in learning more may contact Joe Purisky, (800) 694-1299, to find out more about Aflac possibilities.

Keep your employees covered with help of PBA Benefits Trust PBA provides competitive health insurance options through the PBA Builders Trust. Highquality, affordable group health insurance is a necessity for 60-70 percent of the membership with 10 or fewer permanent employees. PBA Benefits Trust developed a valued relationship with the four Blue Cross Blue Shield providers across the state for more than 20 years. PBA benefits from the economy of scale, which has allowed the Benefits

Trust to negotiate favorable group health insurance rates that have made it possible for many member companies to provide health coverage to their employees. Without the collective buying power of the association, most builder-members, simply because of their size, would be unable to negotiate favorable health insurance premium rates for themselves and their employees. The health insurance plans available to PBA members vary by insurance carrier. To find out details about the many plans available — including PPO, health savings accounts, traditional and managed care plans — visit www.pbabt.com and follow a link to the county where your business is located. Vision, dental, short- and long-term disability and life insurance programs are also offered to members throughout the state. Details about each of these programs are available on the web site. In addition to providing the best value in health insurance options, PBA Benefits Trust’s Service Center at USI Affinity is dedicated to providing superior service to PBA member companies. Billing is simplified through a consolidated bill saving member companies time and effort. Builder members receive a single bill for their medical, dental, vision, life and disability insurance programs. Electronic billing and payment is also available. An expert customer service staff is dedicated to assisting PBA member companies with all of their insurance and benefits questions. PBA member companies have the advantage of expert advice for making insurance purchases and annual renewals with minimal demands on their time.▲

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May/June 2006 • Keystone Builder

I 15

Exploring Energy

Series

Part four: Insulated concrete forms

PHOTOS COURTESY OF CONNOR CONSTRUCTION

Cement-filled polystyrene blocks create stable, airtight walls

by Nikki Brand hen builders want to create homes that offer their clients superior comfort and safety while also helping them save on utility bills, insulated concrete forms are one option worthy of researching. Using insulated concrete forms helps builders create homes that are comfortable for their clients, protects their homes from high winds, slows the spread of fire and buffers outdoor noise. The various brands of insulated concrete forms are typically made the same — they are a reinforced concrete core sandwiched between two layers of expanded polystyrene foam insulation. Forms interlock together on the tops and bottoms and rebar can be easily snapped into place on the inside of the forms. Builders stack the forms together to make walls, and concrete is poured into them on the

I Keystone Builder • May/June 2006

job site. Forms usually are available in various sizes, including corner pieces, or can be cut so home features such as archways can still be constructed. Any type of finish can be used on the outsides of the forms. Forms weigh as little as 5 pounds each, so there is less strain on workers — which could reduce workers’ compensation claims. Jim Conner, immediate past president of the PBA and owner of Conner Construction in New Castle, first used insulated concrete forms in a custom home he built in December 2005. As part of his research before choosing to use Arxx brand insulated concrete forms, he looked at the locking devices on the forms. Conner enrolled himself, with his son, Patrick, and his masonry contractor in a class to learn how to build with the forms. Conner said he learned that builders don’t have to worry about freeze cracking when using the forms.

I believe the insulated concrete forms increase the value of a home. Using the forms also gives me an edge above other builders. — Jim Conner, immediate past president of PBA and owner of Conner Construction “You don’t really need masonry contractors to put up these walls,” he said after working on the job site. “You could probably shave a day and a half off the next project you do with the insulated concrete forms.” Using insulated concrete forms creates a quicker and more efficient building process because there is no framing, pouring, insulating or furring out the wall. Continued on page B

On the

Hill

PBA works to improve legislation concerning contractor registration, the Uniform Construction Code and to refine environmental policy Compromise becomes goal of contractor registration task force BA’s contractor registration task force, created to explore and address Sen. Robert Tomlinson’s contractor registration act (Senate Bill 1000), has been working toward a consumer- and contractor-friendly compromise on the legislation. The task force, led by PBA members Brian Durbin and Butch Miller, has met four times via phone conference and, as of press time, has continued negotiating with the attorney general and Tomlinson to discuss the issue. PBA leaders voted Feb. 25 to make contractor legislation a priority and to create the task force, because PBA’s earlier attempts to get amendments to the legislation were unsuccessful. Originally, the bill would have required Pennsylvania contractors to register with the state as well as with local municipalities where they worked, as required under local ordinances. PBA members balked at the dual registration requirement, which Tomlinson agreed to change. State registration would remove most local requirements for registration, except in certain situations where plumbers and electricians are locally certified. PBA achieved other important amendments: allowing arbitration, excluding subcontractors and employees from the definition of contractor and removing emergencies from regulation. Task force members found the bill’s original requirements for home improvement contracts troubling. Under the amended bill as it stands at press time, PBA leaders feel that most of the builders’ concerns have been addressed. The bill will require an entirely new type of model building contract. If they do not use a contract meeting the law’s new requirements, contractors face steep penalties. PBA will prepare a model home improvement contract that meets the requirements for members to use when these changes take effect.

PBA is also monitoring another contractor registration bill, House Bill 2557. Lou Biacchi, PBA director of government affairs, explained the association’s position on registration during a March 30 committee hearing. PBA members realize contractor registration bills are intended to rid the industry of unlawful contractors who give the industry a bad reputation, however, PBA feels this is only a small minority of the contractors who would be affected. By working toward a compromise, PBA hopes to preserve the legislation’s original intent while also taking into consideration the needs of all contractors in the state.

PBA pushes for Uniform Construction Code ‘fix-it’ bill Since the adoption of the Uniform Construction Code in 2004, PBA members identified several procedural problems. PBA aims to address these problems through its fix-it amendments in House Bill 881, proposed by Rep. Bob Allen (R-Schuylkill). This bill would make the following procedural changes: • Eliminate municipal fees for appeals. If a builder and building inspector disagree on the code, the builder may appeal to the local government’s appeals board. Under the UCC, each municipality must have an appeals board. The board will then rule on the inspector’s decision. Builders are often required to pay a fee for an appeal — from $50 to $1,500 depending on the location. Builders recover none of this fee if ruling is in their favor. • Set a time frame for inspections. Currently, builders in certain areas are not able to have prompt UCC inspections. PBA would like to set a time frame for inspection — ideally two days. After this time frame passes without an inspection, a builder could arrange for another properly qualified professional to conduct the inspection.

• Change the process for challenging a construction-related ordinance. Township supervisors may vote to adopt an ordinance to exceed the UCC and require fire sprinkler systems. PBA challenges these excessive ordinances through the state Department of Labor and Industry. If the department does not issue its decision within 45 days, the municipality may begin enforcing the ordinance. PBA would like to change this so that no ordinance concerning the code may be enforced until the appeal process with the department is complete. The bill moved to the House appropriations committee on Jan. 31, and PBA is watching this legislation to ensure that it is passed.

PBA raises awareness of Chesapeake Bay Tributary Strategy’s shortcomings Midstate legislators took notice of PBA’s effort to get the state Department of Environmental Protection to revise its Chesapeake Bay Tributary Strategy. The legislators are currently reviewing the tributary strategy to determine its effectiveness and true cost. PBA has been monitoring the DEP’s actions the last few months, as it has been examining separate pieces of the strategy through a steering committee and workgroups. PBA believes the strategy fails to adequately address agricultural sources of contaminants while burdening municipal sewage systems with development-stalling requirements. In addition, total capital costs to implement the strategy in Pennsylvania are estimated to be $8.2 billion. Pennsylvania’s costs are higher than other states’ whose waterways feed the bay. PBA is concerned that the tributary strategy could become an economic drag on a major portion of the state and hopes to join other like-minded organizations to push for a moratorium on implementing the strategy.▲

Members Only • Keystone Builder

Developers

Briefing

EPA considers program to enforce stormwater regulation compliance he Environmental Protection Agency is considering a program to combat what it claims as low builder compliance to stormwater regulations. The program, titled “Builders Compliance Incentive Program,” would ask builders to sign a contract that promises compliance, and, in return, builders would receive certification that states the builder is a leader in the field of stormwater regulation. In addition, the builder would receive low priority for inspection. David McGuigan, head of the office of permitting and enforcement at the EPA, says the program is still early in the planning stages, and he plans to invite officials from the National Association of Home Builders, as well from the state builder associations, for input on the program. “We have an outline on how we think the program could look, but we want to hear from the builder associations as far as which incentives to provide and how the program should be enforced,” McGuigan said. Although PBA does not oppose compliance incentive programs, the association has requested data from the EPA to prove low compliance. The EPA claims there is only a 30 percent compliance rate, however has not yet provided the data to back up that claim. PBA

is concerned that the Builders Compliance Incentive Program could provide yet another layer of bureaucracy for members. Furthermore, if a builder or developer signs the contract, the entire company for which that builder or developer works is held liable — not just the person who initially signed the contract. Jim Miller of Miller-Warner Construction, Lancaster, finds the EPA’s claim of a 30percent compliance rate hard to believe. “You can’t get a building permit until you submit a proper soil and erosion plan,” he said. “In addition, with the required preconstruction meetings, I just can’t fathom that only 30 percent of builders and developers are complying and still completing their projects.” McGuigan admits that the data is somewhat skewed. He says that the agency usually targets companies for inspection if they are already under suspicion for compliance. “However, we still feel that compliance is a problem, and we hope that we create a compliance incentive program that will improve the situation,” he said. Some builders don’t deal with stormwater issues as frequently as developers and are not as familiar with the regulations. Ed Nikles of Ed Nikles Custom Builders, Milford, feels that a solution to low stormwater regulation

EXPLORING ENERGY

Lowering utility bills

Continued from page 16

Interest in insulated concrete forms has increased as the cost of heating and cooling a home has inflated. “With insulated concrete forms, there is no place for air to infiltrate the house, and air infiltration is one of the main reasons homes are energy inefficient,” Reilly said. The brand he sells, Reward Walls, has an air change per hour of .04-.09 compared to about 0.3 for a wood-framed house. Some brands have insulation values equivalent of up to R-50, helping to maintain the comfort zone inside the home for approximately three times longer than most conventional walls. With such a tightly sealed home, homeowners also hear less outdoor noise — sound transmission class ranges from 41-65. Dan Jungo, Reward Wall Systems regional sales manger for the mid-Atlantic region, said a

Conner said his clients agreed to allow their home to be used as a model house during the construction process. “It’s amazing how many people have stopped by to look at it,” he said. “An architect stopped by because he had never seen a project like this up close before.” The only disadvantage Conner found to using the forms is that they have to be cut in certain increments, so it could change the size of the home. Tom Reilly, sales representative for Construction Supply Center, a division of New Holland Concrete, said the center offers one-day classes for builders to learn how to use their Reward Wall brand of insulated concrete forms or three-day, on-site classes with a corporate trainer. “I’ve seen builders become more efficient from one floor to the next,” Reilly said. B

I Keystone Builder • Members Only

compliance — if, in fact, there is low compliance — should come from education and not a contract that promises compliance. “Our local conservation district recently sponsored a one-day seminar on stormwater regulation, and it was very well attended. Builders want to learn the proper way to deal with stormwater issues; they just need someone to show them how,” Nikles said. Perhaps one way to better educate builders on the issue of stormwater regulation is through the state’s “Stormwater Best Management Practices Manual,” which came out in April (at press time the manual was in draft form). Many municipalities are expected to use this manual, so builders are advised to familiarize themselves with its content. PBA has also learned that the EPA Region 3 is levying fines in Maryland and Virginia on builders and municipalities for lack of compliance with erosion and sedimentation control as well as with stormwater requirements. PBA has not heard of any fines being levied in Pennsylvania, however the association remains watchful of this issue. PBA asks members to report any such fines to the association by contacting Keith Ashley at (800) 692-7339, ext. 3013.▲

homeowner will experience a 50-80 percent energy savings when insulated concrete forms are used above grade. Conner said homeowners save money up front because the house will take a smaller, more efficient heating and ventilation system. Operation and maintenance costs for heating and cooling homes are also less. Continued on page D

Association N e w s

ASSOCIATION NEWS Continued from page C

PBA celebrates installation of 2006 PBA President Brad Elliott Association board of directors sets tone for year

Blair County BA and Butch Miller of HBA of Metro Harrisburg will lead the task force.

PBA endorses Lt. Gov. Knoll for primary race

Scott Cannon presents the gavel to incoming President Brad Elliott at the installation banquet.

by PBA Staff rad Elliott was sworn in as the 2006 Pennsylvania Builders Association president Feb. 24 at the Kimmel Center in Philadelphia. Elliott, whose Elliott Building Group is based in nearby Langhorne, was joined by a large group of family and friends who showed their support. In total, more than 300 members and friends attended the event. As Elliott looked forward to his year in his induction speech, he reminded members of all the benefits of PBA membership. Many members found his speech inspiring as they look forward to another successful year. Elliott supplanted 2005 President Jim Conner of New Castle. The association’s senior officers also include Steve Black, vice president; Ray

Fertig, secretary; Kenneth Medina, treasurer; and Rob Jones, associate vice president.

Contractor registration draws focus of members Members of the government affairs committee re-examined the Home Improvement Consumer Protection Act, the bill that would require statewide contractor registration. Following the recommendation of the government affairs committee, the board voted to make contractor registration a legislative priority. The association formed a task force that will explore the contractor registration bill introduced by Sen. Robert Tomlinson, R-Bucks. PBA members Brian Durbin of

PBA members voted Feb. 25 to endorse Lt. Gov. Catherine Baker Knoll’s run for re-election, in part based on her history of supporting Pennsylvania’s housing industry. She stressed the importance of the housing industry when addressing 175 PBA board members at the meeting in Philadelphia. Knoll, who has an extensive public service background, has been named as the first woman on the AFL-CIO Housing and Building Board of Trustees. Knoll is the only statewide candidate facing opposition during May’s primary election.

BSI report: Workers’compensation program provides $140,000 to builders associations PBA’s workers’ compensation program has collected $7.1 million in insurance premiums, resulting in $71,000 for local associations and $71,000 for PBA, Builder Services Inc. reported at the board meeting. While the program provides discounted rates for member firms, it supplements your association’s income, allowing it to provide more valuable programs to you. Call E.K. McConkey at (717) 755-9266 for more information.▲ Members Only • Keystone Builder

Ultimate Code by PBA Staff I understand the 2006 International Code Books are out. How does this affect me? At the moment, not at all. Until the Pennsylvania Department of Labor and Industry approves the new book, which PBA believes will happen in late 2006, the 2003 International Code Book is still the one to use. When the Department of Labor and Industry approves the new books, PBA will send members information on how to obtain the new version at a discounted price. What is PBA’s stance on requiring sprinklers in homes? While PBA is a strong advocate of housing safety, we believe ordinances requiring sprinkler systems should not be government-mandated and instead be available by consumer choice only. Ordinances requiring sprinkler systems enacted by local municipalities exceed the state building code, and PBA believes local conditions often do not warrant such an exception. PBA believes sprinklers in residential buildings should be a consumer choice, not a government-mandated requirement. Requiring sprinklers in homes increases the cost of construction, thus lowering the quantity of affordable housing available to working Pennsylvanians. Sprinkler systems

EXPLORING ENERGY Continued from page 16

Reilly said that the consistent temperatures made possible by the insulated concrete forms make homes more comfortable — no hot air up high and cold air down low. Walls are wrapped in two layers of insulation, which rid basements of cold spots when used in the foundation. Allergens cannot permeate walls made of insulated concrete forms, and the forms block humidity, preventing mold. “Many builders look at the bottom line — what is cheapest,” Reilly said. “Traditional construction costs about $8 per square compared to $10-12 per square foot for ICF. But, traditional construction requires more steps, which can increase costs. Homeowners need to think about how a substantial decrease in energy D

I Keystone Builder • Members Only

Concerns

raise the cost of new homes by thousands of dollars, and national research has indicated for every thousand-dollar increase in a new home’s cost, another 240,000 people are priced out of home ownership. Are any other areas having problems with timely inspections besides mine? We believe there are pockets around the state having this problem, which we are aiming to address in the UCC fix-it bill, or House Bill 881. The bill, introduced by Rep. Bob Allen, R-Schuylkill, would require that all inspections for one- and two-family dwellings are performed within two business days of when the inspection is requested. If the code administrator fails to have the inspections performed within two business days, the permit holder or his agent may have any certified construction code official or third-party agency perform the inspection, and the municipalities must accept the written report and inspection results of the construction code official or third-party agency that has been retained by the permit holder or his agent. Is there anything that can be done to allow for the review of building plans and documents while awaiting other approvals? The UCC fix-it bill is addressing this problem many members are experiencing. Among other objectives, the bill requires that municipalities review and approve (or reject) plans for building construction under the UCC even when the applicant has not

bills, compared with an increase in mortgage payment, might break even the expenses. Homes typically cost 3-8 percent more with insulated concrete forms.” Depending on the size of the home, the owner’s return on investment can take about five-10 years.

Safe for families and their surroundings Insulated concrete forms provide protections that give owners peace of mind and can decrease insurance premiums. The walls can withstand 200-mph winds, are self-extinguishing in fires and can withstand fire for as long as four hours. Insulated concrete forms are safe for the environment, too. Ozone-depleting substances chlorofluorocarbons and hydro chlorofluoro-

obtained other required municipal permits and approvals, when such permits and approvals are required by municipal ordinance. The UCC fix-it bill makes other changes to help code administration, including aiming to eliminate excessive fees that vary widely established by municipalities (such as building and inspection fees) and creating a more timely inspection and plan review process. Can I help pave the way for quicker UCC remedies? Yes, you can. As municipalities continue to impose ordinances that exceed the code, they often do so illegally. You can help us keep our eyes open for any local government doing this by reading the public notices portion of your daily newspapers. Municipalities are required by law to advertise and hold public hearings on amending codes, and this covers all UCC requirements as well. If you see or hear of a hearing on an amendment, please let your local field service director or Doug Meshaw at PBA know so we can begin our challenge with the Department of Labor and Industry.▲

Send PBA your questions! PBA welcomes your UCC questions for upcoming issues of Keystone Builder. Please send to Eric Wise at ewise@pabuilders.org or Keystone Builder, 600 N. 12th St., Lemoyne, PA 17043.

carbons are not emitted during the process of manufacturing insulated concrete forms. Few natural resources are used in the construction of a house using the forms. These homeowners use less energy for heating and cooling, saving natural resources and reducing the pollution made to create some forms of energy. “The Styrofoam and concrete are recyclable, and building the average house takes 15 trees for construction, so it saves trees,” Reilly said. “It even creates less waste on the jobsite — I’ve seen contractors walk away with two Hefty garbage bags after the job.” With so many advantages for homeowners, Conner said he plans to quote prices including the forms for his next two custom home projects. “I believe the insulated concrete forms increase the value of a home,” he said “Using the forms also gives me an edge above other builders.▲

FORECASTING Pennsylvania’s growth

Pennsylvania’s few pockets of growth overshadow the state’s mostly stagnant, declining population

Pennsylvania school district enrollment projections 2002-12

by Nikki Brand and Eric C. Wise espite Pennsylvania’s abysmal growth during the first half of this decade, some legislators are pushing a bill that would allow excise fees — the clever 2006 moniker for impact fees — in areas where the population growth rate trails the national average. Population growth often results from economic success, as it’s unlikely that people would move into an area beset by economic difficulties. In areas with strong population growth, homebuilders, their subcontractors and suppliers are busy, exhibiting a sign of prosperity — money entering the economy. When housing growth doesn’t follow economic growth, people are forced to commute longer distances, adding to the burden on the transportation infrastructure. Housing injects a great deal of money into the local economy: 16 percent of economic activity in the United States is attributed to the housing sector. With about 50 companies — including suppliers, subcontractors and consultants — contributing to the construction of one home, the housing sector plays a vital role in the state’s economic health. Legislators representing Franklin, Adams and Cumberland counties introduced House Bill 2564, a measure that would allow school districts and municipalities to collect “building excise fees” up to $26,000 for each new home in “growth” counties. The bill defines growth counties as counties whose population grew by at least 0.75 percent for three years straight — less than the national average of 1 percent growth per year. It also would allow officials in “growth counties” to double the realty transfer tax. “I am surprised our leaders would rather push for excise fees in the limited places Pennsylvania is growing, rather than encouraging growth in the commonwealth’s stagnant, aging communities,” Brad Elliott, PBA president, said.

To address the issues raised by excise fees and other growth-controlling measures, it’s necessary to explore growth within Pennsylvania and to gauge growth within the commonwealth against other areas in the United States. Since 2000, Pennsylvania’s population has grown at one-fourth the rate of nationwide population growth, according to the U.S. Census Bureau. The state’s growth crept at 1.2 percent for 2000-2005, while national population growth recorded gains of 5 percent over those five years. Twelve counties recorded growth higher than the national rate, with just three (Forest, Monroe and Pike) growing faster than 2 percent per year. (The opening of a prison accounts for the bulk of Forest County’s growth, which produces little effect on school district enrollment or a need for new road construction.) About half of the state’s counties showed a population decline during this period, including

I am surprised our leaders would rather push for excise fees in the limited places Pennsylvania is growing, rather than encouraging growth in the commonwealth’s stagnant, aging communities. — Brad Elliott, PBA president the city of Philadelphia, which lost more residents — 54,000 — than the total population of 24 other counties. The state’s least populated county, Cameron, posted a loss of 5.6 percent, the greatest percentage drop in the state. The Census Bureau projects Pennsylvania will only see a 4 percent increase in its popuContinued on page 18

May/June 2006 • Keystone Builder

I 17

FORECASTING Continued from page 17

lation, from 12.3 million to 12.8 million, by 2030, significantly less than the 29.2 percent growth expected for the entire country. Only five states and Washington, D.C., have slower projected growth rates. “With such a small percentage of Pennsylvania showing healthy growth, it’s discouraging that lawmakers are proposing a punitive measure that will affect housing affordability in areas with increases under the national average of 1 percent population growth,” Elliott said. “Quite simply, we believe housing development pays for itself. Pennsylvania does not need punishing fees that will push homeownership out of reach for working families.” Understanding the housing market’s future requires taking other factors into consideration, including school enrollment projections and housing starts. In 2004, the U.S. Census Bureau estimated that the population of Pennsylvania was 12,406,292. Among the states in the country, it was ranked as the sixth largest. During that year, housing starts in Pennsylvania were 46,814. Arizona, ranked the 18th largest state in the nation in 2004, had 40,832 more housing starts that year than Pennsylvania. U.S. Census Bureau statistics 18

I Keystone Builder • May/June 2006

indicate Georgia has also experienced pronounced growth in the last five years. Also a smaller state than Pennsylvania, it had 105,899 housing starts in 2004, an increase of 14,845 than five years earlier. Such rapid growth has not been seen in Pennsylvania, which had 5,911 more housing starts than five years earlier. A drastic decline in Pennsylvania’s growth is not predicted. Pennsylvania’s housing starts only decreased slightly from 46,814 to 44,178 between 2004 and 2005. Economists don’t predict a boom in growth in Pennsylvanian housing in the future — or in any state. “Despite a surprising jump in new home sales for October (2005), the housing market likely has peaked,” said David Berson, an economist for FannieMae. “Home sales are predicted to slip in 2006 in reaction to investor pullbacks and modestly higher mortgage rates, partially offset by economic growth and demographics.”

Suburbanization is hitting small pockets of Pennsylvania Rick Sudal, president of Richard James Group and PBA board member, is a residential land developer who is seeing a lot of growth in his region. He buys land in Montgomery, Chester and Berks counties.

“I concentrate on the entry-level and first-time, move-up markets, and we have a serious shortage of land,” he said. “I’ve never seen prices this high before. I don’t see anything in the near future that is going to change the shortage of building lots.” He said the school districts in suburban Philadelphia have good reputations and are competing with each other to improve, making the area even more desirable. Due to the high cost of housing in the area, he is also seeing more townhouses being constructed and said the typical first-time homeowner owns a townhouse. “Pike County is one of the fastest growing counties,” Sudal said. “People are building there and commuting to the corporate campus in New Jersey.” Monroe, North Hampton and Lehigh counties near the New Jersey border are also experiencing a high volume of growth. In southern Pennsylvania, rural Franklin and Adams counties are growing fairly rapidly. Pike County experienced a 21.7 percent population increase from 2000-2005, the Census Bureau reported. To put its growth in perspective, Pike County is now home to 56,000 residents — about one-tenth the populations of Delaware, Chester and Montgomery counties. Growth in suburban Philadelphia trickles behind housing booms. The Philadelphia area (Bucks, Chester, Montgomery and Philadelphia counties) recorded 11,304 housing starts during 2005. At only the second quarter of 2005, metro Atlanta had 54,300 housing starts, keeping in line with its 55 percent increase in housing starts since 2000. The number of building permits distributed in 2005 in metro Las Vegas was 31,010. The Census Bureau statistics said metro Las Vegas experienced the most population growth 1990-2000: 81 percent. Is the growth in the metro areas of large cities in Pennsylvania and along the border of New Jersey “explosive” or “out of control”? Construction is not happening quickly. Sudal said he is buying land in Montgomery, Chester and Berks counties one or two years before it will be developed. Along with the shortage of land, he said the approval process for developing the land is taking much longer than in the past. “Because Pennsylvania is a commonwealth, regulatory powers are pushed down to local levels of government,” he said. “The zoning is very stringent.” Municipalities have control over the pattern of growth with the strict zoning ordinances that were already in place before land development accelerated.

Student enrollment is in a downswing The Center for Rural Pennsylvania predicts more stagnant or declining growth in school enrollment than increases for the next 10 years. In a report from July 2005, the center said through the year 2012, a combination of 45 urban and rural school districts will experience a 15 percent or greater increase in enrollment while 187 districts will see enrollment decline by more than 15 percent. Hence, more than 90 percent of districts will not see significant increases in enrollment. Enrollment projections from the Pennsylvania Department of Education suggest this trend will continue until at least 2015. Reasons for enrollment decline include low birth rates due to an aging population of people past their reproductive years and young families having fewer children. The low number of

people moving into these rural regions is also a factor. The center’s experts believe these factors and weak economic conditions will make it unlikely for changes to occur in their prediction of declining enrollment for the next nine years. From 1992-2002, there was a small peak in student enrollment in Pennsylvania — 6 percent. “This is the children of baby boomers.” Jonathan Johnson, senior policy analyst for the Center for Rural Pennsylvania. Then came a big change: 2002 was the year for the lowest birth rate in Pennsylvanian history. In 2002, Pennsylvania had the secondlowest, student-to-population ratio in the United States. According to the U.S. Census Bureau, less than 25 percent of Pennsylvania’s population is less than 18 years old. The center also presented limited data on enrollment patterns of school districts across the commonwealth for the years 2002-2012. Just 45 of 500 Pennsylvania school districts —

10 rural and 35 urban — will see enrollment increase by at least 15 percent. When it came to a decrease of 15 percent or more, 115 rural schools and 72 urban school districts experienced a decrease of 15 percent or more. In western Pennsylvania, an out-migration of young people and more deaths than births result in the declining population. “There has been a downward spiral happening in population since the 1970s,” Johnson said. “The impact will be even greater in the future.” Johnson said other factors could change enrollment predictions. A higher-than-expected increase in in-migration from neighboring New Jersey and New York and a larger number of in-migration from other countries could boost enrollment. If the in-migration doesn’t occur at a high rate, it is unlikely Pennsylvania’s growth in population, and likewise housing starts, will increase dramatically in the future.▲

May/June 2006 • Keystone Builder

I 19

Welcome Home: 20

Dewey company leads ‘Extreme Makeover’ project that gives a Philadelphia family a new home

I Keystone Builder • May/June 2006

PHOTOS BY ERIC C. WISE

A STABLEHOME in an UNCERTAIN WORLD.

Introducing the FrameWorks® Building Systems.

by Eric C. Wise, Editor ewey Homes built a home during one bustling week for a Philadelphia family chosen by ABC-TV’s Extreme Makeover: Home Edition. John Dewey, chief executive officer of Dewey Homes, contacted dozens of subcontractors and suppliers to help build a home for William and Carole Py. The couple is raising three grandchildren following the deaths of their daughter and son-inlaw in 1998 and 1997. The Pys’ home in northeast Philadelphia contained asbestos and lead paint.

Continued on page 22

Strober Building Supply

MORRISVILLE, PA (800) 234-2581PA MORRISVILLE, (800) 234-2581

LIMERICK, PA (610) 495-3295 EAGLE, PA (610) 321-0970

FORKS TOWNSHIP, PA (610) 252-6190 EASTON, PA (610) 252-3142

To find our other locations, visit us at www.strober.com May/June 2006 • Keystone Builder

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MAKEOVER Continued from page 21

“Our home builders are always giving back to the community and this is an extreme example,” said Brad Elliott, PBA president, as he visited the site March 25. John and Ken Dewey established the Dewey Family

Foundation four years ago to support housingrelated and educational projects. Ty Pennington, host of Extreme Makeover: Home Edition, knocked on the door of the Py home Wednesday, March 22. “My brother teared up when he saw the family’s reaction,” Dewey said of his brother Ken, who serves as vice chairman of the company. The next day, movers hauled away the family’s things to storage. By Friday, the site was ready for demolition. As the excavators cleared the old split-level house, the crew worked to mitigate asbestos dust released in the process. Dewey said site conditions required they dig two feet deeper for the foundation and truck stone to the site to provide the support needed for the new home. The new home took shape over the next day, with 200 construction workers on site during a

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I Keystone Builder • March/April 2006

busy Saturday and Sunday. “We are building a home in 100 hours instead of 100 days,” Dewey said. To make the project feasible, Dewey coordinated the efforts of subcontractors who normally work at different phases of construction. The city of Philadelphia provided inspectors for the duration, providing another key to completing the project so quickly. Hundreds of the show’s fans stopped by the site to see Ty Pennington and the Py family’s new home. John Dewey, Elliott and other construction professionals appeared on a live radio broadcast March 25. After the crews completed interior decorating, landscaping and moving the Py family in their new home, the family returned from its weeklong exile. As this issue went to press, ABC planned to air the episode in late April. ▲

Builder Case Study

Shaffer & Son Inc. makes seamless transition from generation to generation by Jennifer McDermitt assing a family business from one generation to the next is a difficult, often arduous, process. The National Association of Home Builders reports that businesses only have a 35 percent of survival once it’s passed on to the next generation. John Yarnall and Jim O’Shea of Shaffer & Son, beat those odds, as this family construction business has survived not just one, but two family successions. Yarnall says the key to their success can be attributed to its ability to blend the old with the new. “Every time our business has approached a transition, the previous owners have been ready to pass the torch, the new owners ready to accept it, and everyone is eager to take a fresh approach to the business,” Yarnall said. “Basically, we have kept the core principals of the previous owners because that is what made our business

I Keystone Builder • May/June 2006

what it is. However, we also incorporate fresh ideas and strategies that will take us forward.” He said a little planning doesn’t hurt either. “We always make sure we have a solid business succession plan in place. It’s vital to the success of the turnover,” he said.

Viewing ‘business’ as an organic entity

John Yarnell

Jim O’Shea

Every time our business has approached a transition, the previous owners have been ready to pass the torch, the new owners ready to accept it, and everyone is eager to take a fresh approach to the business. Basically, we have kept the core principals of the previous owners

Shaffer & Son was founded by Clyde Shaffer in the late 1940s. The first successful transition occurred in the late 1950s when Clyde’s son, Fred, was eager to take the family business in a new direction. Clyde was ready to slow down, but Fred wanted to expand, so Clyde stepped down and let his son take over. Fred expanded the business rapidly throughout the next few decades and decided

we also incorporate fresh ideas

Continued on page 26

— John Yarnall of Shaffer & Son Inc.

because that is what made our business what it is. However,

and strategies that will take us forward.

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BUILDER CASE STUDY Continued from page 24

to retire in the 1990s. He approached his stepson, Yarnall, and a longtime employee, Jim O’Shea, about purchasing the company. “We had both been there a long time, and we had a lot of ideas about where we could

I Keystone Builder • May/June 2006

take the business,” Yarnall said. “We were fortunate in the transition, because we weren’t rushed into the process. There was no illness or financial problems; Fred was just ready to retire, and he had people who were willing to step up to the challenge and whom he felt could honor the company name.” Yarnall says that although the transition was successful, it took time, and careful consideration needed to be paid to ensure that enough time was given. “It’s an emotional process,” he said. “You have to be sensitive to

that and respect the previous owner’s need to let go of the business over a period of time.” Once the business was fully handed over in 1999, Yarnall and O’Shea decided to take the company in some new directions: remodeling, larger commercial projects and construction opportunities in other parts of the region. Yarnall feels that a builder has to diversify more today than he thinks his stepfather or his father had to do. “I never want to abandon our base business, which is single-family homes, Continued on page 28

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BUILDER CASE STUDY Continued from page 26

but I think you also have to find your own way when you take over a business.”

Making the Move to Remodeling According to the U.S. Census Bureau, Americans spent $198.6 billion on remodeling projects last year, which is one of the reasons why many builders venture into remodeling. Yarnall said some builders don’t recognize the differences between remodeling and homebuilding. “They really need to be treated as two different businesses, which is how we do things,” he said. “Remodeling was a big move for us, and now it is about 20 percent of our business, but we had to approach it much differently than we do homebuilding.” Currently, Shaffer & Son builds approximately 90 homes a year in Dauphin, Cumberland, and York counties, and the majority of their 200 annual remodeling jobs are in Lebanon, Berks, Lancaster and Adams counties. Yarnall and O’Shea have specific employees for the remodeling side of the

I Keystone Builder • May/June 2006

business and manage it differently than they do the homebuilding side of the business. One way Yarnall and O’Shea do approach remodeling and homebuilding the same, however, is through their customer service. “Whether we are remodeling or building a home, we believe in total commitment to the client. We are very much attuned to their needs and expectations, and we take it very seriously.” Yarnall likes to think of himself as the “warm and fuzzy” builder, communicating intensely at all levels of the process. “Building a home is about people and relationships,” he said.

Association, employee longevity key to business’ success Besides the fact that the company has been around for more than 50 years, there are two sources of pride for Yarnall and O’Shea. The first is the company’s longstanding involvement with the Home Builders Association of Metro Harrisburg, PBA and NAHB. Yarnall said association involvement allows him to stay active in the community and knowledgeable about the industry. “It’s

helpful to network with other builders — it’s also a sympathetic ear,” he said. Shaffer & Son showcases in the Parade of Homes and will be participating in the Habitat for Humanity Builder Blitz in September, where local builders will build several homes in only one week for families in need. The second source of pride for the business owners is the longevity of their employees. Despite the recent business transition, Shaffer & Son has 32 employees, with the average length of employment around 15 years. “Our employees are dedicated professionals, and although there is a lot of turnover in this industry, you won’t see that at our company.” As for future plans, Yarnall and O’Shea are always looking for new business opportunities — at least until the next generation of Shaffer & Son is ready. “We are proud of our long heritage. People appreciate a company that has been around as long as we have.”▲

BUILDERS NEWS BRIEFS Continued from page 7

What Inspires You?

have adopted various appendices of the International Fire Code dealing with such topics as fire hydrant locations, access roads for fire apparatus and hazard rankings for various chemical substances. While the IFC is part of the state’s UCC, the IFC appendices are not. PBA objected to this proposed ordinance by Coolbaugh Township because the IFC appendices would have imposed more stringent requirements that are not justified by any unique local conditions, and that would have weakened the uniformity of the code in Pennsylvania.

Former member names PBA as beneficiary Harold Benjamin, long-time PBA member who died last year, has named PBA as a beneficiary to his estate. Benjamin asked that his donation be used for the development of building concepts. PBA thanks Benjamin, and his wife, Lorraine, for their kindness. Members who name PBA as an estate beneficiary leave a lasting legacy of their leadership in the housing industry and help the association enhance its services for future generations.▲

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Pennsylvania lenders take part in $6-million, first-time homebuyer assistance program irst-time homebuyers represent the cornerstone of a community. Building equity in a first home empowers individuals and families to build wealth while contributing to a community’s property values, stability and social life. In 2006, 43 financial institutions across Pennsylvania are offering another reason for first-time homebuyers to transition from renting to owning. As member-owners of the Federal Home Loan Bank of Pittsburgh, these community banks, savings and loans and credit unions are participating in the First Front Door program, which provides down payment and closing cost assistance for first-time homebuyers whose incomes fall at or below 80 percent of their area’s median income. This year, more than $6 million in First Front Door funding is available — on a first-come, first-served basis — through Federal Home Loan Bank members to serve at least 1,000 homebuyers. Under First Front Door, an individual is considered a first-time homebuyer if he or she has not owned a home within the past three years, or owned a home only while married but not as a single person within the past three years. Homes that qualify for purchase

with assistance include single-family homes, townhouses, duplexes, condominiums and modular units. Through its participating members, Federal Home Loan Bank contributes $3 for every $1 contributed by the homebuyer, for a maximum of $5,000 per recipient, based on need. Member banks must make measurable concessions to the affordability of the house, such as waived or reduced fees or points or below-market rates. Approval of participant paperwork is completed by Federal Home Loan Bank within seven business days, as is funding disbursement. The homebuyer must successfully complete homeownership counseling that addresses topics such as creditworthiness, household budgeting and home maintenance. Buyers must also receive counseling on predatory lending. Further, the homebuyer must live in the new home for at least five years in order to keep the full amount of the grant. To bring a first-time homebuyer into your development through First Front Door, or to learn more about the program, contact your local participating financial institution. You may find a complete list of program participants at www.firstfrontdoor.com.▲

First Front Door, a new program offered through member-owners of Federal Home Loan Bank, Pittsburgh, will provide $6 million in grants to qualified first-time homebuyers to assist with down payments and closing costs.

Premier Partners In the course of your business, consider the following companies, who are Premier Partners of the Pennsylvania Builders Association.

SILVER LEVEL SPONSORS

BRONZE LEVEL SPONSORS

Commerce Bank Commerce Bank/Harrisburg, “America’s Most Convenient Bank,” provides commercial and retail banking services to customers throughout Central Pennsylvania. Contact Andrew Johnson, vice president, Commercial Real Estate Lending. (888) 937-0004

USI Affinity USI Affinity is a leading distributor of insurance and financial products and services and a partner with the Pennsylvania Builders Association Benefits Trust. (610) 537-1380

Capital Blue Cross Capital BlueCross provides for 21-county service areas throughout Pennsylvania with easy-to-use, comprehensive and innovative health care products for employer groups and their members. (717) 541-7000 To learn more about becoming one of PBA’s Premier Partners, please contact Bill Lapitsky at (800) 692-7339, or by e-mail at blapitsky@pabuilders.org.

I Keystone Builder • May/June 2006

2-10 Home Buyers Warranty 2-10 Home Buyers Warranty offers warranty protection for new, pre-owned and manufactured homes, covering the home, systems and appliances. (609) 760-4669 (southeast PA) (800) 488-8844 (Northeast & Central PA) PNC Bank PNC Bank is the #1 SBA and #1 Small Business Lender in Pennsylvania. (877) BUS-BNKG

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