The official magazine of the Home Builders Association of Virginia
VIRGINIA builder
Celebrating more than 50 years of service to housing in Virginia
Vol. 22, No. 4 May 2009
Membership: It’s a super deal
A healthy side of exteriors Legislative wrap 2009
Build A Relationship Full of
SAvingS!
Builder/Contractor Advantages • Priority scheduling for installation & service • Experienced sales team providing personal service • 24-hour fully staffed emergency service • Referral Rewards & MUCH MORE! Call us TODAY for a no obligation consultation. Charlottesville (434) 295-4194
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VIRGINIA builder
Vol. 23, No. 4
May 2009
2009 HBAV officers E. Rand Sompayrac, president Michael D. Newsom, first vice president treasurer C. Richard Bogese Jr., second vice president Kevin DeChristopher, associate vice president Robin S. Newhouse, vice president-secretary Regional vice presidents Region I: Robert J. Flynn Region II: Hugh Mitchell Region III: Chip Hudnall Region IV: David Blalock Region V: Richard Coleman Region VI: David Hepler State representative John D. Stokely Jr. (Northern Virginia) HBAV staff Michael L. Toalson, executive vice president Barrett Hardiman, vice president/director of regulatory affairs Kathy M. Harley, director of administration and finance/education director James D. Bonnell, director of member benefits services Barb Preddy, administrative assistant Rhonda Allison, legislative assistant 707 E. Franklin St., Richmond, VA 23219 (804) 643-2797 www.hbav.com Editorial inquiries can be directed to: Stacey Enesey Klemenc E-mail: staceyklemenc@cox.net 2112 Flowerdew Ct. Virginia Beach, Va. 23454, (757) 427-6355 Advertising inquiries can be directed to: Lisa Nixon E-mail: vabuilderads@yahoo.com 2213 South Brook Drive, Orange Park, FL 32003, (877) 449-2535 Published by Association Publishing Inc. www.associationpublishinginc.com Sandra K. Amidon, Joyce F. Hearn APR 2117 Smith Ave., Chesapeake, Va. 23320 (757) 420-2434 Advertising sales assistant Valerie Myers Graphic designer Paige Takach To change your address (804) 643-2797 Virginia Builder mails copies of the magazine to names supplied by the Home Builders Association of Virginia. To correct your address, please contact HBAV at the number above. Nonmember subscriptions are available from the publisher for $27 a year. Virginia Builder (ISSN 1552-8715) is published nine times a year for members of the Home Builders Association of Virginia and is edited according to AP style. Acceptance of advertising in Virginia Builder does not imply endorsement of the product or service by the Home Builders Association of Virginia. Opinions expressed in articles are those of the authors and people quoted and not necessarily those of the Home Builders Association of Virginia. Mention of specific products or services in editorial content does not imply endorsement by Virginia Builder or the Home Builders Association of Virginia. No material may be reproduced for further publication without the express permission of the association and the publisher.
Affiliated with the National Association of Home Builders.
May 2009
According to recently published 2007 U.S. Census Bureau data, vinyl siding remains the No. 1 choice of exterior cladding for new single-family houses. (Photo courtesy of Norandex.)
departments 2 3 12 16
President’s Perspective HBAV Build-PAC Honor Roll Member Benefits Update Product Roundup: Exteriors 18 Counsel’s Corner: Averting foreclosure with a deed-in-lieu 20 VHDA loan program enhances $8,000 tax credit for first-time home buyers 20 Advertisers’ Index
FEATURES 4 Everything’s looking beachy for 2009 convention 6 Legislative wrap up: Four-part HBAV agenda approved 9 Membership: It’s a super deal 10 Membership now! Help lead the battle with fellow Builders 11 Power up with an Associate membership 15 Picture this: Members recognized for membership milestones On the cover: Stone veneer can give your next project a flair that will differentiate the house in more ways than one. (Photo courtesy of Quality Stone Veneer.) Virginia Builder 1
w h at ’ s i n s i d e
The official magazine of the Home Builders Association of Virginia
President’s Perspective Sponsored by Dominion
Membership can elevate your business, boost your influence By Rand Sompayrac, 2009 HBAV president
T
he home building industry and the overall economy are facing some very difficult times and we need to give ourselves and our companies every opportunity to succeed. Generally speaking, our local home building
Dominion lineman Dennis mcDaDe helps cook millions of meals using a balanceD mix of energy sources. It takes just the right combination of ingredients to create a healthy meal. And it takes a balanced mix of new energy sources to ensure that we have the reliable electricity we’ll need as Virginia continues to grow. Using a combination of wind power, clean coal, emissions-free nuclear energy and clean-burning natural gas—along with conservation— Dominion’s plan will help strengthen our economy, keeping our businesses growing and communities vibrant. It’s a recipe that will benefit everyone in Virginia. WHAT WE DO EVERY DAY, POWERS YOUR EVERY DAY.
2 Virginia Builder
association’s guiding principles are to protect, promote and serve its members. Membership in your local building trade association, and its affiliation to the state (HBAV) and national building federations (NAHB), gives our businesses valuable tools and services. It separates and elevates your business from your competitors and can help your business make it through these difficult times. Cooperatively, the state and national home building associations work hard to promote a suitable business environment to ensure the vitality of the building industry. The Home Builders Association of Virginia is one of the most influential organizations across the Commonwealth. Virginia Business magazine has acknowledged that HBAV’s lobbying team is one of the most successful at the Virginia General Assembly. The association successfully monitors and interacts with the executive, legislative and regulatory branches and agencies of the state government. For your membership investment, you are provided active monitoring and influence on regulatory actions at the state and national levels. These important association activities help Virginia have a level, balanced, businessfriendly environment for your company. We are also politically involved at the state and federal level. HBAV Build-PAC trustees raise significant funds, which the trustees use to endorse and suppor t reasonable pro-business and pro-housing candidates for the State Legislature and the statewide offices. HBAV Build-PAC also supports the campaigns of challengers to anti-housing incumbents. The activities of HBAV Build-PAC are essential to keeping Virginia a good place to do business and a good place to build affordable homes for Virginia families. The true intrinsic value of your membership resides in the contacts and networking opportunities that our federation provides. Every local building association has some of the most successful, powerful and influential people in your region. Their knowledge and experience is invaluable but they might also be a competitor. Therefore, statewide, we have approximately 5,000 business firms as
members. There are always friendly faces willing to share experiences and knowledge beneficial to you or your company. HBAV and our national partner, the National Association of Home Builders, can provide invaluable assistance with marketing, legal, Rand Sompayrac land develop ment, labor, safety, health and environmental regulations. Additionally, there is a multitude of industry educational opportunities from workshops and seminars to professional designation programs recognizing such accomplishments as graduate builders and certified salespeople. Even the vast numbers of educational classes offered each year at the International Builders’ Show will help differentiate your business from nonmember competitors that don’t have access to all these educational resources. In many of our local associations, we have wonderful independent insurance agents and carriers that are great and valued members and we appreciate them. Almost every HBA event I have ever attended (local, state and national) has displayed a banner with the suggestion to “Do Business with a Member.” In that same arena, we also have established the HBAV Benefits Group to help supplement your insurance needs. It is an independent insurance brokerage that partners with many of the strongest insurance carriers such as Anthem Blue Cross Blue Shield, John Hancock Life, Dominion Dental or the Building Industry Insurance Association to provide benefit programs for your company that are second to none. Also, by virtue of membership, your business has a great “Affinity” membership advantage program which offers significant incentives and discounts for great products and services. Some examples of the discounted products and services, which are all necessary in business, are Verizon May 2009
Wireless, the S and I Rebate Program (a suppliers and installers rebate program), Bank of America financial services, Biz forms and checks, Dell products, DHL shipping, Yellow and Roadway Express trucking, most GM products, Hertz rental cars, Office Depot supplies, Omaha Steaks, Paychex payroll processing, Pitney Bowes postage services and Solveras payments systems. Please consider empowering your membership to get the most out of it. And if you are not a member, consider joining us now. There is tremendous value embedded in a membership so unleash it and experience the positive results. There is no better time than now to prove your membership is truly an investment, not an expense. Another attribute of membership is the opportunity to join our industry friends in a wonderful setting for enlightening seminars and a whole lot of enjoyment. Please join us in Hilton Head, June 21-24, for the 2009 HBAV Annual Convention. Registration materials are available at hbav.com. Plan now to join your friends — new and old — for an inexpensive but wonderful business/vacation on Hilton Head Island. VAB
Membership Defenders, Unite!
See page 10 for more information about becoming a member.
2009 HBAV Build-PAC Honor Roll (as of March 31, 2009)
Governor’s Club
Century Club
Jeff Ainslie/John Ainslie Ainslie Group Tidewater BA Jules Elliott Olde Colony Homes Inc. Fredericksburg Area BA Douglas R. Fahl Dewberry Northern VA BIA Thomas Jordan Carrhomes Inc. Northern VA BIA Mak Koebig Peak Construction Co. Inc. Shenandoah Valley BA/Piedmont BIA Robin Newhouse/ Dominion Virginia Power Fredericksburg Area BA Pam Pekrun Tidewater BA Ginger Slavic-Jones Craig Builders Blue Ridge HBA Henry H. Stephens Personal Peninsula H&BA Scott Sterling IDI Group Cos. Northern VA BIA John D. Stokely Jr. Personal Northern VA BIA Tidewater BA Tidewater BA Tidewater BA
Tommy Balzer Birthright Family Limited Partnership HBA of Richmond Roy O. Beckner S.W. Rodgers Co. Inc. Northern VA BIA Shawn Callahan Metwood Building Solutions Roanoke Regional HBA Pam Comstock/Gilbert Martin Gilbert C. Martin Co. Inc. HBA of Southside VA Kevin DeChristopher Mid-South Building Supply Top of VA BA Richard Entsminger Personal Northern VA BIA Bill Garrett W.B. Garrett Inc. HBA of Richmond Chip Hudnall Chip Hudnall Custom Building HBA of Rappahannock John Olivieri Associated Development Mgmt. Corp. Tidewater BA Mark Granville-Smith Personal Northern VA BIA Clark Massie Tetra Corp. Northern VA BIA Charles Miller Miller Custom Homes Tidewater BA James Petrine Enirtep Inc. Roanoke Regional HBA J.M. Snell II Valley Renovations Inc. Shenandoah Valley BA Roland Specter Specter Construction HBA of Southside VA Clement “Kim” Tingley Tingley Construction Co. Inc. HBA of Richmond
General Assembly Club Clem Carlisle East West Partners HBA of Richmond Richard A. Coleman Coleman Homes Inc. Fredericksburg Area BA Sam Craig Craig Builders Blue Ridge HBA Benjamin Graham The Graham Cos. Northern VA BIA C. Richard Napier Personal HBA of Richmond Vincent Napolitano/John Napolitano Napolitano Homes Tidewater BA
Capitol Club David Blalock FSK Management Peninsula H&BA C. Richard Bogese Jr. Personal HBA of Southside VA James L. Carver James L. Carver Builder Fredericksburg Area BA Anthony Clatterbuck Graystone Homes Inc. Piedmont VA BIA Louis Hale Walsh, Colucci, Lubeley, Emrich &Walsh Northern VA BIA Hugh T. Mitchell Personal BA of Southern VA Frederick Napolitano/ Pembroke Enterprises Inc. Tidewater BA Richard Olivieri Michael Newsome Clark Whitehill Co. Tidewater BA John Peterson Terry Peterson Residential Cos. Tidewater BA Rand Sompayrac Personal Fredericksburg Area BA Preston Stallings Personal Blue Ridge HBA William G. Thomas/ Reed Smith. LLP Northern VA BIA Maureen Stinger Kenneth O. Thompson Ken Thompson & Associates Northern VA BIA
Partners Club C. Eugene Baker C.E. Baker Construction Inc. Peninsula H&BA David Bomgardner Personal Northern VA BIA Ron Boothe Boone Homes Roanoke Regional HBA Richard Costello AES Consulting Engineers Peninsula H&BA Claudia K. Cotton Personal Tidewater BA Peter Fields Fields Construction Inc. Roanoke Regional HBA Bob Flynn Personal Roanoke Regional HBA William Halprin Personal Tidewater BA Chris Hargis Kitchen & Bath Ideas Builders & Associates of Central VA Walt Hopkins Cave Hill Corp. Shenandoah Valley BA Jim Jackson Superior Equipment Sales Inc. Tidewater BA Ron Johnson Personal Piedmont VA BIA Pete Kotarides Kotarides Developers, LLC Tidewater BA Steve Lawson The Lawson Cos. Tidewater BA Joe Miller EJ Miller Construction Co. Roanoke Regional HBA David & Judy Milstead Milstead Construction Shenandoah Valley BA Kenneth Patterson D.K. Patterson Construction Shenandoah Valley BA Tommy Shields Jr. Shield’s Construction Co. Augusta HBA G.H. Sturtevant Wel-Vant Construction Tidewater BA C. Warren Wakeland HBA of Richmond HBA of Richmond Randy Wade R.D. Wade Builder Inc. Blue Ridge HBA Wendell A. White Personal Tidewater BA
Thank You for Your Help! May 2009
Virginia Builder 3
Heading for Hilton Head
Everything’s looking beachy for 2009 convention
T
he plans are coming together and it looks like it’s going to be another top-notch affair at the Home Builders Association of Virginia’s 2009 Convention on the island of Hilton Head, S.C., Sunday, June 21, until Wednesday, June 24. Located along a pristine stretch of sandy white beach in Port Royal Plantation, The Westin Hilton Head Island Resort & Spa promises to provide HBAV members and guests the utmost in Southern hospitality. Named to Conde Nast Traveler’s 2002 Gold List, this rejuvenating resort features plenty of activities for all ages. Within the plantation, there are bicycle and jogging paths, three championship golf courses and 16 tennis courts. There are also lots of other activities you can engage in nearby — such as kayaking, deep-sea fishing and horseback riding — which the hotel’s concierge can help you arrange. The Westin offers several renowned dining options, including a AAA four-diamond restaurant, The Barony Grill. There are several outdoor pools and a heated indoor pool at the hotel, as well as a white sand beach for those who prefer the Atlantic Ocean. If you register by May 21, the cost to attend the 2009 convention is $395 for members and $295 for spouses, guests and children older than 6. After May 21, the price goes up to $495 and $395 respectively. Children 6 years and under are free. No HBAV registration refunds will be given after June 6. There’s an additional $87 fee for golfers who want to sign up for the HBAV Annual With the annual convention fast Business Networking Golf Tournament Tuesday, June 23. Tee off begins at 11 a.m. approaching, now’s the time to There is no charge to play in the HBAV Annual Business Networking Tennis commit to attend the June 21-24 Tournament from 2-4 p.m. Monday. However, players must preregister. event for the lowest possible cost. As in years past, HBAV’s associates are planning to sponsor a night to remember. If you register by May 21 you’ll get “Cooking with the Associates,” a Parrot $100 per head discount. Head Beach Party, is slated for 7-11 p.m. Monday, June 22. Conventioneers must register directly SUNDAY, JUNE 21 with the hotel before May 20 to reserve 3-5 p.m. HBAV registration a room at the group rate, subject to avail4 p.m. Hotel check-In ability. Cost for a room with a traditional 5-5:30 p.m. HBAV Associates island view is $199, a partial ocean view is Committee meeting $229 and a prime ocean view is $259. To 6-7:30 p.m. Welcome reception reserve a room, call (800) 937-8461 or visit MONDAY, JUNE 22 www.starwoodmeeting.com/Book/8B18. The 8-8:45 a.m. HBAV welcome breakfast hotel’s number is (843) 681-4000. 8:45-10:00 a.m. Business sessions I and II For more information about the upcom10 a.m.-noon HBAV membership meeting 10-11 a.m. HBAV Build-PAC ing 2009 state convention, call HBAV at Committee meeting (804) 643-2797.
Schedule of Events
11 a.m.-noon
Noon-1:30 p.m. 2-4 p.m. 7-11 p.m. TUESDAY, JUNE 8-8:45 a.m. 8:45-10 a.m. 11 a.m. 6-7 p.m. 7-11 p.m.
HBAV Legislative Committee meeting HBAV board of directors meeting HBAV Annual Business Networking Tennis Tournament Associate-sponsored dinner event
23 President’s breakfast Business sessions III and IV HBAV Annual Business Networking Golf Tournament Cocktail reception Awards banquet, dinner and dance
Polly want to sponsor?
Calling all associates who would like to be Parrot Head sponsors during HBAV’s upcoming annual convention in Hilton Head, S.C., this June. Sponsorships, which start at $600, promise “one-on-one” time with convention attendees and lots of recognition throughout the event. It’s your chance to put a feather in your cap and support your favorite association. Visit www.hbav.com for details on how you can lead the flock.
WEDNESDAY, JUNE 24 Noon Hotel check-out 4 Virginia Builder
May 2009
HBAV Registration Form 2009 Annual Convention • The Westin Hilton Head Island Resort & Spa Sunday, June 21 - Wednesday, June 24 Name:________________________________________ $_______________
Price through May 21, 2009
Spouse/Guest__________________________________ $_______________
Price AFTER May 21, 2009
_____________________________________ $_______________
Member $395 Member $495 Spouse/Guest $295 Spouse/Guest $395 Children $295 Children $395 (Children 6 years and under are free.)
_____________________________________ $_______________
No HBAV registration refunds after June 6, 2009
Children: _____________________________________ $_______________
Golf ($87)
$_______________
TOTAL
$_______________
Tennis (N/C)
# of People_________________________
Company:_____________________________ Phone:__________________ Address:______________________________ Fax:____________________ City:__________________________________ State:_______ Zip:_________ E-Mail Address:_______________________________________________ Local Association:_____________________________________________ l Builder l Associate l Other
Dig With C.A.R.E. Keep Virginia Safe! Whether your project is big or small, one free and easy call gets the underground utility lines marked and helps avoid costly damages, fines and even personal injury. So, please call 811 and dig with C.A.R.E.
May 2009
Return this form with payment to: HBAV, 707 East Franklin St., Richmond, VA 23219 (804) 643-2797 • Fax (804) 780-2482 Payment: l Check Enclosed l VISA l Master Card Amount Paid:__________________________________________________ Card Number:_________________________________________________ Expiration Date:________ Signature:_______________________________ Hotel Reservations may be made at the following Web address before June 6, 2009: http://www.starwoodmeeting.com/Book/8B18 or by calling 800-937-8461
Call Miss Utility at before you dig. Allow required time for marking. Respect the marks. Excavate carefully.
This message brought to you by the Virginia State Corporation Commission
Virginia Builder 5
Legislative wrap up
2009 session of the General Assembly helpful to the new housing industry
Four-part HBAV agenda approved
T
he 2009 session of the Virginia General Assembly convened Jan. 14 and adjourned Feb. 28. The so-called shor t-session of the State Legislature was dominated by a record projected state-revenue shortfall and election-year politics. The state-revenue shortfall was temporarily resolved with the passage of the Federal Stimulus Package in Washington, D.C., in mid-February. The politics of 2009 continued throughout the 2009 session and the follow-up veto session, which was held April 8. In 2009, all 100 seats of the Virginia House of Delegates and all three statewide offices are up for election. The Democrats are hopeful of holding onto the governor’s office and increasing their numbers in the Virginia House of Delegates. They have made gains in recent House elections. The Republicans hope to retain their slim House
6 Virginia Builder
majority this election year and to win the race for governor for the first time in eight years. The Democrats took majority control of the 40-member Virginia State Senate in 2007. The four-part HBAV agenda of legislation introduced to the 2009 session of the State Legislature received its final passage in the last week of the session. It was a long and often difficult legislative path for the HBAV package of bills, but it made it across the finish line in good shape. The 2009 HBAV legislative agenda was crafted by the HBAV Legislative Committee from recommendations from the 16 HBAV-affiliated local associations. The HBAV Legislative Committee, chaired by HBA of Richmond past President William Garrett, managed the 2009 session of the State Legislature by conducting weekly conference calls with the Richmond-based HBAV
lobbying team. While not nearly the number of antihousing bills was introduced to this session of the State Legislature as compared to previous years, HBAV also was successful in its efforts to urge the State Legislature to set aside those few anti-housing bills again this year. It appeared even the longtime anti-housing state legislators came to understand the industry was facing a historic downturn in housing starts and many other challenges from the changed home building environment in Virginia. Following is a summary of each measure introduced to the 2009 session of the Virginia General Assembly at the request of HBAV. Those bills are followed by a series of anti-housing bills and more favorable housing legislation enacted and signed into law this year. House Bill 1788, by Delegates Robert Hull and Don Merricks, and Senate Bill 1276, by Sen. Steve Martin, are companion bills. The measures would prohibit a locality from not allowing the use of “alternative” or “nonconventional” on-site wastewater treatment systems that have been approved for use in Virginia by the Department of Health (VDH). The legislation also would prohibit localities from imposing maintenance requirements on such systems more stringent than soon-to-be promulgated by the Department of Health. While signed into law by the governor, the prohibition and maintenance prohibition will not take effect until the VDH maintenance regulations are finalized, which is expected sometime near year end or shortly thereafter. HB 2077, by Delegate Glenn Oder of Newport News, is a plan validity extension measure. The measure would extend the period of validity of any preliminary plan, final plan or associated plan or permit, select conditional-use, special-use, special-exception permits, or limited proffer that is valid and outstanding as of Jan. 1, 2009, until Jan. 1, 2014. HB 2077 will become effective July 1, 2009. HB 2029, by Delegate Danny Marshall of Danville, would “temporarily” (five years) reduce the 25 percent bond May 2009
administrative fee to 10 percent above the estimated construction cost. This legislation will reduce a landowner’s cost and increase his borrowing capacity. The effective date of HB 2029 is also July 1, 2009. SB 1335, by Sen. Richard Stuart of Stafford, would allow, not require, local governments to waive the requirement for a public hearing in their consideration of an amendment to an existing proffer. Such a waiver could significantly decrease the time required to approve such an amendment. Many proffers that have been volunteered to local governments in conjunction with a rezoning or other land-use decisions have dates or triggers that either require a payment to be made or some other action to take place. Most of those dates or triggers in many proffers were volunteered at a time in the Virginia economy when there was high demand for new housing and that demand had been forecast to continue far into the future. The effective date is July 1, 2009.
Provides that when a corporation, partnership, limited partnership, business trust or limited liability company is the grantee of a deed or the grantor of a deed of trust, the deed or deed of trust shall contain the names of the registered agents and the directors, officers, partners, etc., of these various business entities. Killed HB 2095, by Delegate Bobby Orrock. Board for Contractors; definition of tradesman. Adds building framers and masonry contractors to the definition of tradesman, thereby requiring these in-
May 2009
(See LEGISLATIVE WRAP-UP on page 8)
<Type Your Association Name Here>
vALue-ADDeD ASSoCiATion BenefiTS
Major threats to housing killed Many threats to the housing climate were killed for this session of the State Legislature. Listed below is just a partial list of House Bills and Senate Bills that could have negatively impacted the home building business this year. HB 1582, by Delegate Algie Howell. Employees of home access businesses; penalty. Requires the owner or operator of a commercial establishment that provides a service requiring the establishment’s employees to regularly enter the interior area of its customers’ residences to conduct a criminal background check of employees whose regular duties can reasonably be expected to include entering customers’ homes. Effective Sept. 1, 2009, employers are required to complete a criminal records’ check on prospective employees, but an employer is not prohibited from hiring an employee on the basis of the results of the criminal records’ check. Employers are required to keep copies of the fingerprints and records’ check for such employees. Employers shall provide identification badges to employees and require the employees to wear the badge when they are expected to enter customers’ homes. Violations constitute a Class 3 misdemeanor. Killed HB 1640, by Delegate Bob Marshall. Form of deeds and deeds of trust.
dividuals to be licensed by the Board for Contractors. Killed HB 2418, by Delegate Joe Bouchard. Optional provisions of a subdivision ordinance; solar energy. Strikes language requiring that provisions for establishing and maintaining access to solar energy be applicable to a new subdivision only when so requested by the subdivider. Withdrawn by patron HB 2664, by Delegate Shannon Valentine. U.S. Route 29; access
Benefits through Anthem Life Anthem Life’s group life insurance helps employees provide financial security for their loved ones. As an association member
As an association member, you receive — at no additional cost — special benefits and programs designed to bring even more value to your Anthem plan.
you now get this security as part of your benefits plan at no additional cost.
ALL COVERED EmpLOyEEs AnD DEpEnDEnts RECEiVE: $10,000 Life and AD&D coverage • Group Term Life & AD&D Insurance promise timely benefit payments for the family if an employee passes away or faces a qualified loss in an accident. $2,000/Spouse and $2,000/Child Dependent Life coverage • Dependent Life Insurance pays a benefit to your employee if a spouse or child passes away. Resource Advisor • This program gives employees and their families free and confidential access to support resources, including: • Up to three legal and/or financial consultations for all employees • • • •
Up to three visits per year with a counselor for employees with a disability Up to three in-person counseling sessions as well as three legal and/or financial consultations for beneficiaries 24/7 telephone counseling and referral services Web site resources for child care and elder care databases, wellness information, wills, and power of attorney forms
Travel Assistance • Provides emergency medical assistance, travel services, and pre-departure information for members in case a medical emergency arises while traveling 100+ miles from home for personal or business reasons.
This insert is only one piece of your enrollment package. Exclusions, limitations, and applicable policy numbers can be found in the enrollment brochure.
This ad is only one piece of your enrollment package. Exclusions, limitations, and applicable policy numbers can be found in the enrollment brochure.
payment of the premium by the employer constitutes acceptance and agreement of the terms detailed in the group insurance policy and certificate and as outlined above.
In Virginia: Anthem Blue Cross and Blue Shield is the trade name of Anthem Health Plans of Virginia, Inc. (serving Virginia excluding the city of Fairfax, the town of Vienna and the area east of State Route 123). Life and Disability products underwritten by Anthem Life Insurance Company, an independent licensee of the Blue Cross and Blue Shield Association. Anthem Blue Cross and Blue Shield and its affiliated HMOs, HealthKeepers, Inc., Peninsula Health Care, Inc. and Priority Health Care, Inc. are independent licensees of the Blue Cross and Blue Shield Association. ® ANTHEM and 360o Health are registered trademarks of Anthem Companies, Inc. The Blue Cross and and agreement Blue Shield names and symbols areinregistered of the Blue Cross Blue Shield Payment of the premium byInsurance the employer constitutes acceptance of the terms detailed the groupmarks insurance policy andand certificate andAssociation. as outlined above. In EVASH4220A Virginia:(10/08) Anthem Blue Cross and Blue Shield is the trade name of Anthem Health Plans of Virginia, Inc. (serving Virginia excluding the city of Fairfax, the town of Vienna and
the area east of State Route 123). Life and Disability products underwritten by Anthem Life Insurance Company, an independent licensee of the Blue Cross and Blue Shield Association. Anthem Blue Cross and Blue Shield and its affilated HMOs, HealthKeepers, Inc., Peninsula Health Care, Inc. and Priority Health Care, Inc. are independent licensees of the Blue Cross and Blue Shield Association. ® ANTHEM and 360° Health are registered trademarks of Anthem Insurance Companies, Inc. The Blue Cross and Blue Shield names and symbols are registered marks of the Blue Cross and Blue Shield Association.EVASH4220A (10/08)
Virginia Builder 7
Legislative Wrap-up (continued from page 7)
management. Requires the Commonwealth transportation commissioner to take all appropriate measures to develop local corridor access management plans for U.S. Route 29 between Gainesville and North Carolina. Killed HB 2563, by Delegate Mark Cole. Street construction. Allows localities to withhold acceptance of plat approvals if the applicant has other projects in the
locality with streets not completed or on track for completion as required by the approved plans for that project before said developer or subdivider will receive approval of a new subdivision or development plan. Further allows localities to withhold partial and final complete release of any performance guarantee if streets in the plan have not been accepted by and taken over for operation and maintenance by the authority
GO GREEN! let us help you grow your business . Visit one of these locations : Fishersville, vA 22939 (540)337-9300 (800)914-8959 FAx(540)337-9306 Fredericksburg, vA 22401 (540)373-5253 (888)246-5264 FAx(540)373-5293 gAinesville, vA 20155 (703)753-8814 (800)237-5434 FAx(703)753-8834 glen Allen, vA 23059 (804)550-3711 (800)544-7701 FAx(804)550-5137 newport news, vA 23606 (757)873-3939 (800)927-4477 FAx(757)873-0134 norFolk, vA 23502 (757)857-5377 (800)868-5377 FAx(757)855-4201 richmond, vA 23237 (804)714-0974 (800)818-3853 FAx(804)714-1397 roAnoke, vA 24012 (540)362-9200 (800)346-2230 FAx(540)362-2529
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8 Virginia Builder
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responsible for maintaining and operating such public facility. Killed HB 1648, by Delegate Lee Ware. Virginia byways. Requires every agency, instrumentality and political subdivision of the Commonwealth to give due consideration to what impact or effect any of their plans or projects might have upon the qualities that caused such road to be designated a byway. Killed HB 1616, by Delegate Bob Marshall. State and Local Government Conflict of Interests Act; disclosure by certain members of advisory agencies. Requires nonsalaried citizen members of any board, commission or council established by the governing body to advise on land-use policies within the locality to file, as a condition of assuming office, a disclosure form of their personal interests. The bill also requires such members to make annual disclosures of all their interests in real estate located in the county, city or town in which they are appointed and requires such individuals to disqualify themselves from participating in any transaction involving their real estate interests. Killed SB 1366, by Sen. George Barker. Virginia Property Owners’ Association Act; control of association by declarant. Provides a declaration for declarant control of an association and its board of directors until: • three months after 80 percent of all lots the declarant has reserved the right to develop in all phases of development have been conveyed to a person other than a declarant or builder and • the number of lots not yet developed is less than 200. The bill also provides the declarant has the right to develop all additional lots in accordance with provisions in effect at the time of transfer of control and gives the declarant a seat on the board of the association until such time as all lots have been conveyed to a person other than a declarant or a builder. In addition, the bill requires all association funds collected during the period of declarant control to be maintained separately in the association’s name unless held by a title company or common-interest community manager. The bill prohibits the declarant from using association funds to defend any civil or criminal action, or administrative or May 2009
arbitration proceeding that has been filed or initiated against the declarant. Withdrawn and forwarded to Virginia Housing Commission
On the positive side: Other measures advanced HB 1681, by Delegate Matt Lohr. Authorizes law-enforcement officers during the regular business hours of a scrap-metal processor to inspect, without a warrant or subpoena, any scrap metal in the possession of a scrap-metal processor, any records required to be maintained by a scrap-metal processor, or both. The bill also adds catalytic converters to the list of proprietary articles for which heightened scrutiny is required prior to a sale to a scrap-metal processor. Effective July 1, 2009. HB 2326, by Delegate Clifford Athey. Boards of zoning appeals; variances. Changes the standard by which a variance can be granted by eliminating the requirement for a showing of a hardship approaching confiscation and instead requiring a clearly demonstrable hardship. Effective July 1, 2009. HB 1856, by Delegate Steve Shannon. Virginia Residential Property Disclosure Act; disclosure of stormwater detention facilities. Provides that an owner of real property makes no representations with respect to the presence of any stormwater detention facilities located on the property and that purchasers are advised to exercise whatever due diligence they deem necessary to determine the presence of any stormwater detention facilities on the property, in accordance with terms and conditions as may be contained in the real estate purchase contract, but in any event, prior to settlement pursuant to that contract. Effective July 1, 2009. HB 1938, by Delegate Chris Peace. Income tax; livable home tax credit. Increases the individual tax credit limit from $500 to $2,000 and the 25 percent amount for retrofitting to 50 percent for taxable years beginning on or after Jan. 1, 2010. Effective July 1, 2009. SB 845, by Sen. Toddy Puller. Livable Home Tax Credit; increase limit. Increases the Livable Home Tax Credit limit from $500 to $1,000. Effective July 1, 2009. SB 1524, by Sen. John Watkins. Permitted provisions in zoning ordinances. Broadens the zoning administrator’s authority to determine vested rights in certain circumstances. Effective July 1, 2009. VAB May 2009
Membership: It’s a super deal
I
f you’re receiving this magazine for the first time, you’re either: a new member (we’re glad you’re here!) OR a nonmember (what are you waiting for?) For nonmembers receiving Virginia Builder for the first time, we invite you to learn more about the association and its many benefits by reading the articles in this issue. May 19 is National Membership Day, a time when associations across the country put on the full-court press to bring in new members and retain their current ones. When you receive a call to join your local association, please give it careful consideration. The dues you pay are a small price for a fair business environment and the long-term success of your company and your industry. There are generally two types of memberships — Builder and Associate — available from the local associations in Virginia, with a third type — Affiliate — also offered. A Builder membership is open to any person, firm or corporation whose principal business is the construction of new homes or apartments or the development of residential communities. An Associate membership is open to any person, firm or corporation engaged in any allied trade, industry or profession that provides essential supplies or services in the construction of new homes or apartments. And an Affiliate membership is open to any person employed by a builder or associate member who desires to more actively participate or serve on local association committees.
Joining the Home Builders Association of Virginia is a convenient three-in-one membership package:
1.
Join a local home builders association. A list of the 16 local associations in Virginia follows along with their contact information.
2.
All local home builders associations in Virginia are chartered with HBAV, which is headquartered in Richmond. For more information, please call (804) 643-2797 or e-mail hbavmail@hbav.com.
3.
HBAV is chartered with the National Association of Home Builders located in Washington, D.C. NAHB currently has more than 200,000 member companies in 50 states and Puerto Rico. For more information, please call (800) 368-5242, ext. 0, between 8:30 a.m. and 5 p.m. (EST) Monday through Friday, or go to www.nahb.org and fill out the online contact form. (See MEMBERSHIP on page 10) Virginia Builder 9
Membership now! Help lead the battle with fellow Builders
T
he Home Builders Association of Virginia connects you to the power of the state’s building industry. In recent surveys of state legislators by Virginia Business magazine, HBAV was recognized as one of the top five “most effective” lobbying organizations in the state. With a full-time regulatory counsel, HBAV works with your state legislators to educate them on the importance of the housing industry. With more than 4,800 members, HBAV has the strength in numbers to defeat excessive regulations and defend affordable housing initiatives — saving Builder members time and money.
Here are a few examples of why it pays to be a Builder member: • Membership, representation and networking at the local, state and national levels. • Complimentary subscription to Virginia Builder, HBAV’s magazine that’s published nine times a year, and the national Builder Magazine. • Access to HBAV’s online e-newsletters, Legislative Bulletin, Building Briefs and the Monday Morning Memo, as well as to NAHB’s Business of Building e/Source, Eye on the Economy, Monday Morning Briefing, Nation’s Building News Online, SmartLink and State and Local Reporter. • Ability to purchase workers’ compensation insurance coverage through the HBAV-endorsed Building Industry Insurance Association. Special coverage programs also are available for members, including value-added group health insurance, dental insurance, long-term care insurance through John Hancock and discounted home warranty coverage. • The opportunity to combine business with fun by attending an annual convention that features informative morning business sessions and afternoon and evening leisure activities. • The HBAV board of directors and all standing committees of the association meet on a quarterly basis to compare notes and develop a proactive housing agenda. • An opportunity to be recognized for significant contributions to the industry through HBAV-sponsored award programs. • 10 percent discount on all bookstore products from BuilderBooks.com. Get the latest economic forecasts, demographic studies, consumer trend analyses, and learn about technological and management breakthroughs. • Access to the Sweets Residential Marketplace, the industry’s leading product and service information resource. • Member discounts on products and services relevant to your business, from payroll processing to office supplies. • NAHB’s member-only online community provides members with up-to-theminute news reports, reference materials and contact information. • Access to valuable economic and forecasting information to understand current and future trends, legal assistance and individual consultation with any of NAHB’s 300-plus staff experts on more than 500 industry subjects. • Builder 20, Remodeler 20 or Multifamily 20 Clubs let you find out how your financials compare with similar businesses in noncompeting markets. 10 Virginia Builder
Local associatio Augusta Home Builders Association P.O. Box 36, Waynesboro, VA 22980 Territory covered: Augusta and Rockbridge counties, and cities of Lexington, Staunton and Waynesboro Executive officer, Tammy R. Hoyt exoff@hotmail.com (540) 942-4644 www.augustahomebuilders.net Blue Ridge Home Builders Association 2330 Commonwealth Drive, Suite 100, Charlottesville, VA 22901 Territory covered: Albemarle, Fluvanna, Greene, Madison and Nelson counties, and city of Charlottesville Executive vice president, Jay Willer brhba@brhba.org (434) 981-8708 www.brhba.org Builders and Associates of Central Virginia 20334 Timberlake Road, #3, Lynchburg, VA 24502 Territory covered: Amherst, Appomattox, Bedford and Campbell counties, and cities of Altavista, Amherst, Appomattox, Bedford, Lynchburg and Rustburg Executive vice president, Jenny Stadheim jennybacv@mac.com (434) 385-6018 Fredericksburg Area Builders Association 3006 Lafayette Blvd., Fredericksburg, VA 22408 Territory covered: Caroline, King George, Orange, Spotsylvania and Stafford counties and city of Fredericksburg Executive vice president, Bea Phelps bphelps@fabava.com (540) 898-2730 www.fabava.com New River Valley Home Builders Association P.O. Box 2010, Christiansburg, VA 24068
Territory covered: Carroll, Giles, Montgomery and Pulaski counties, and cities of Blacksburg, Christiansburg, Dublin, Galax and Radford info@nrvhba.com (540) 381-0180 Northern Virginia Building Industry Association 3901 Centerview Drive, Suite E, Chantilly, VA 20151 Territory covered: Arlington, Fairfax, Fauquier, Loudoun and Prince William counties, and cities of Alexandria, Arlington, Ashburn, Annandale, Chantilly, Fairfax, Falls Church, Great Falls, Lorton, McLean, Reston, Sterling, Triangle, Vienna, Warrenton and Woodbridge (703) 817-0154 www.nvbia.com Peninsula Housing & Builders Association 760 McGuire Place, Newport News, VA 23601 Territory covered: Gloucester, Isle of Wight, James City, Mathews and York counties, and cities of Hampton, Newport News, Poquoson, and Williamsburg Executive vice president, Katie Hayes khayes@penhousing.com (757) 595-1600 www.penhousing.com Piedmont Virginia Building Industry Association P.O. Box 897, Culpeper, VA 22701 Territory covered: Culpeper County Executive officer, Shannon Gearing gearing4@aol.com (540) 825-7558 www.pvbia.org Home Builders Association of Rappahannock P.O. Box 88, Wicomico Church, VA 22579 Territory covered: Essex, King & Queen, Lancaster, Middlesex, Northumberland,
“Every man owes a part of his time an try in which he is engaged. No man has from an organization that is striving to — President Teddy May 2009
ons in Virginia Richmond and Westmoreland counties, and cities of Kilmarnock, Kinsale, Tappahannock, Warsaw and Wicomico Church Executive officer, Margaret Hudnall chcb@crosslink.net (804) 580-2415 www.riverbuilders.com Home Building Association of Richmond 400 North Ridge Road, Richmond, VA 23229 Territory covered: Buckingham, Charles City, Chesterfield, Cumberland, Goochland, Hanover, Henrico, King William, Louisa, New Kent and Powhatan counties, and the cities of Chesterfield, Glen Allen, Midlothian and Richmond Executive vice president, David D. Reel dreel@hbar.org (804) 282-0400 www.hbar.org Roanoke Regional Home Builders Association Inc. 1626 Apperson Drive, Salem, VA 24153 Territory covered: Botetourt, Craig, Floyd, Franklin and Roanoke counties; cities of Salem and Roanoke; and town of Vinton Executive vice president, Melody S. Williams mwilliams@rrhba.com (540) 389-7135 www.rrhba.com Shenandoah Valley Builders Association P.O. Box 1286, Harrisonburg, VA 22803 Territory covered: Rockingham County and City of Harrisonburg Executive officer, Michelle Johnson info@valleybuilders.org (540) 434-8005 www.valleybuilders.org
Territory covered: Halifax, Henry, Patrick and Pittsylvania counties, and the cities of Danville and Martinsville Executive vice president, Carolyn Stephens hbanewsonline@yahoo.com (434) 791-3244 Home Builders Association of Southside Virginia Inc. 10300 Corporate Road, Petersburg, VA 23805 Territory covered: Amelia, Brunswick, Southern Chesterfield, Dinwiddie, Greenville, Lunenburg, Mecklenburg, Nottoway, Prince Edward, Prince George, Surry and Sussex counties, and cities of Chester, Colonial Heights, Hopewell and Petersburg hba@hbaofsouthside.com (804) 732-2742 www.hbaofsouthside.com Tidewater Builders Association 2117 Smith Ave., Chesapeake, VA 23320 Territory covered: Accomack, Northampton and Southampton counties, and cities of Chesapeake, Franklin, Norfolk, Portsmouth, Suffolk and Virginia Beach Executive vice president, Channing A. Pfeiffer info@tbaonline.org (757) 420-2434 www.tbaonline.org Top of Virginia Building Association 1182 Martinsburg Pike, Winchester, VA 22603 Territory covered: Clarke, Frederick and Warren counties, and city of Winchester Executive vice president, Christian P. Schweiger topvabld@visuallink.com (540) 665-0365 www.buildingva.com
Builders & Associates of Southern Virginia P.O. Box 10178, Danville, VA 24543
nd money to the business or induss a moral right to withold his support improve conditions within his sphere.” y Roosevelt - 1908 May 2009
Power up with an Associate Membership
Y
our business thrives when builders build. The Home Builders Association of Virginia is dedicated to enhancing the climate for housing and the building industry, and to promoting policies that will keep housing a national priority.
Here are a few examples of why it pays to be an Associate member: • You can network on the local, state and national levels to take advantage of the many opportunities to meet colleagues and future clients. Your participation in association activities will help to build your reputation and business. • The “Do Business with a Member” campaign encourages builders and remodelers to work with Associate members. • Access to HBAV’s online e-newsletters, Legislative Bulletin, Building Briefs and the Monday Morning Memo, as well as NAHB’s Business of Building e/Source, Eye on the Economy, Monday Morning Briefing, Nation’s Building News Online, SmartLink and State and Local Reporter. • Complimentary subscription to HBAV’s magazine, Virginia Builder, which is published nine times a year. • Special coverage programs are available for members, from group health and dental insurance to workers’ compensation and home warranty coverage at a discount. • Take advantage of combining business with fun by attending an annual convention that features informative morning business sessions and afternoon and evening leisure activities. • 10 percent discount on products from BuilderBooks.com, which carries the latest business management tools, demographic studies and consumer trend analyses to keep you one step ahead of your competition. • The NAHB Member Advantage discount program offers year-round discounts from 21 companies including GM, Dell, Pitney Bowes, Hertz, DHL, Paychex, hotels and more. • Rent a mailing list from NAHB at member-discounted prices. • Keep up-to-date on the latest industry developments with access to members-only content on www.nahb.org, including up-to-the-minute news reports, economic and forecasting information, and networking resources. • Access to valuable legal advice, technical assistance, and individual consultation with any of NAHB’s 300-plus staff experts on more than 500 industry subjects.
local Defenders of affordable housing
P
lease contact one of the local associations listed here regarding membership, its benefits and services.
Virginia Builder 11
Member benefits update
Membership benefits are plentiful by Jim Bonnell, LUTCF, director of member benefit services
B
eing a member of the Home Builders Association of Virginia comes with many benefits. The strong representation in front of Virginia’s legislators and lawmakers at the Capitol is vital to the health of the home building industry in the Commonwealth. This important promotion and protection of the home building industry would not be possible without the support of our nearly 5,000 member companies throughout the state. Working together, our membership and financial support are helping to ensure the strength of Virginia’s housing industry for years to come. Our collective voice is much louder than any individual’s. In addition to the representation at the state Capitol, HBAV members have access to special benefits, insurance programs and expert advisers that can help your business succeed.
Valuable discounts: NAHB Member Advantage Members have access to discounts from companies like Dell, Office Depot, Hertz, General Motors ($500 off purchase of any vehicle in the GM family), Wyndham Hotels (10 percent off), Williams-Scottsman, Solveras and UPS. www.NAHB.com/MA
HBAV Builder Rebate Program This program is aimed at increasing your bottom line. For minimal effort of informing us of the products you use when you close a home or remodeling project, you’ll be putting money in your pocket. When you participate, you can count on receiving checks every quarter. The best part is the program relies on very little from you and doesn’t change the way you conduct business. You do not have to change the way you currently buy. We do the paperwork, collect the money and mail you the quarterly checks directly. The average rebate last year was $799.
Builders and remodelers save with Verizon Wireless Through a partnership with Verizon Wireless and the Home Builders Purchasing Program, qualifying HBAV contractor-members can receive significant discounts on their wireless services through Verizon. Some highlights include up to 22 percent discount on corporate accounts, 18 percent for employees, free activation for corporate accounts, and $20 unlimited data plans for Blackberry and PDA devices. Some restrictions may apply and we encourage our members to contact their local Verizon wireless representative.
Employee benefits consulting and workers’ comp programs Wholly owned by HBAV, the HBAV Insurance Agency exists to provide valuable member benefits to our nearly 5,000 member companies and their employees across the Commonwealth. The 12 Virginia Builder
HBAV Insurance Group is an independent insurance brokerage that specializes in employee benefits consulting and has partner agencies that specialize in workers’ compensation and general liability coverage for contractors and related business. The mission of HBAV’s Benefits Group is to provide customized, comprehensive Bonnell solutions for our members through our strategic partnerships with our association, agency and company partners. Whether HBAV members take advantage of one of our many strategic partnerships with companies like Anthem Blue Cross Blue Shield, John Hancock Life, Dominion Dental or the Building Industry Insurance Association, or have us shop out their group benefits to multiple carriers, we are here for you. The HBAV Insurance Agency has access to the strongest insurance carriers in Virginia and we are prepared to help large or small groups, as well as individuals.
Group health insurance A small group health plan can be started with as few as two employees. The benefit consultants at HBAV can help you get a company-sponsored health plan started within a very short period of time. Some carriers we work with are Optima Health, Southern Health, Aetna, United Healthcare and Anthem Blue Cross Blue Shield.
Anthem Health HBAV has had a long-standing relationship with Anthem Blue Cross Blue Shield’s Value-Added Association Benefit. In this program, any HBAV member with Anthem health insurance can add an enhanced package of benefits, at no additional cost. The only requirement is that your group has between two and 99 employees. Since 1997, more than 1,000 HBAV member companies throughout the Commonwealth have taken advantage of this great free benefit. Recently, a new perk of $10,000 of life insurance for each enrolled employee has been added to this program.
Qualified retirement plans: 401(k), SIMPLE, SEP, IRAs A qualified retirement plan can help you attract and retain the best employees. Surveys show that retirement plans are consistently one of the most valued benefits employers can provide for their employees. These IRS-qualified plans allow employees to defer federal and state income taxes, contribute automatically through payroll deductions, simplify investment decisions and receive immediate May 2009
returns on their investment when a company match is available. HBAV Benefits Group has a certified financial planner on staff who can review existing retirement plans or assist in setting up new offerings.
Built to Stand the Test of Time
Long-term care insurance at a special group discount Long-term care is the type of care people need when they can no longer manage basic daily activities on their own such as eating, dressing or bathing. Long-term care insurance can help you to ensure that a long-term care event doesn’t become a family burden or a financial misfortune. When you incorporate long-term care insurance into your overall financial plan you and your family will be able to help: • Protect your retirement assets for their intended purpose. • Preserve your independence and ability to choose where you’d like to receive care. • Cover the cost of long-term care expenses if they arise. • Reduce the physical and emotional burden that care giving can have on family members. Through a partnership with John Hancock Life Insurance Co., HBAV offers long-term care insurance coverage on a voluntary discounted premium basis.
Dental benefits designed for HBAV members Through the help of Dominion Dental Services, HBAV members can access group and individual dental plans throughout Virginia. These plans offer PPO, DHMO and discount plan options that are competitively priced and have strong benefits. The PPO option allows members to access benefits at any licensed dentist in Virginia.
Introducing Builders Insurance Group to Virginia Longevity. Stability. Reliability. These are the hallmarks of Builders Insurance Group. For over 16 years, we’ve delivered competitive prices, flexible coverage and technology solutions to our partners in residential and light commercial construction throughout the Southeast. Now, we’re pleased to bring our proven products and attentive customer service to Virginia.
Workers’ Compensation General Liability • Roofers Program
Individual health insurance HBAV Benefits Group can help you make sense of your health insurance coverage. We work with multiple carriers to provide individual health insurance at competitive rates for our members. Members can even go online to www.HBAV.com to compare individual/family health plans and apply for new health coverage online. For more information on any of the above offerings, contact me at (800) 7346344 or jbonnell@hbav.com. VAB May 2009
To locate an independent insurance agent in your area, visit www.bldrs.com or call 1-800-883-9305.
Virginia Builder 13
14 Virginia Builder
May 2009
Picture This
Members recognized for membership milestones
F
ormer Virginia Attorney General Bob McDonnell, Republican candidate for governor, was the guest speaker at the Home Builders Association of Virginia’s first-quarter board of directors meeting March 19 at the Fredericksburg Hospitality House in Fredericksburg. Also during the meeting, the 2008 Virginia Spike and Retainer of the year winners were announced. Based on the membership totals per local association taken from the Dec. 31, 2008, membership summary report from NAHB, the divisions for the 2008 Spike and Retainer Awards are as follows:
s Bob McDonnell addresses the board meeting. t Members from Rappahannock enjoy the day in Fredericksburg.
Division I (500+ Members) – Northern Virginia, Richmond and Tidewater Division II (300 to 499 Members) – Fredericksburg, Peninsula, Roanoke and Shenandoah Valley Division III (100 to 299 Members) – Augusta, Blue Ridge, Central Virginia, New River Valley, Piedmont, Southside and Top of Virginia Division IV (Up to 99 Members) – Rappahannock and Southern Virginia
And, the winners for 2008 are... Division I ~ Spike: Charles Miller (Tidewater) 10.00 credits Retainer: Charles Miller (Tidewater) 65.00 credits Division II ~ Spike: Shawn Callahan (Roanoke) 26.00 credits Retainer: Gary Parker (Fredericksburg) 49.50 credits Division III ~ Spike: Michael Perry (Top of VA) 48.00 credits Callahan Miller Retainer: Michael Perry (Top of VA) 34.50 credits Division IV ~ Spike: John Hendrickson (Rappahannock) 20.00 credits Retainer: Chip Hudnall (Rappahannock) 11.00 credits Also during the meeting, Jules Elliott (Fredericksburg) and Roy Beckner (Northern Virginia) were elected HBAV Life Directors. Following the board meeting, more than 100 people from across the state attended the Statewide Membership Recruitment Campaign Training Program, which kicked off the 2009 Statewide Membership Campaign. Bob Schultz, a nationally recognized speaker, provided some valuable sales training to help the local associations with their recruitment efforts. VAB
Parker
Hendrickson
Hudnall
s
Jules Elliott and Roy Beckner are elected HBAV Life Directors.
Elliott
Beckner
s
More than 100 people attended the kickoff to the quarterly meeting where nationally recognized speaker and motivator Bob Schultz shared recruiting tips.
May 2009
Virginia Builder 15
product roundup
Exteriors By Stacey Enesey Klemenc
Like a rock
Whether you’re building a dream home, remodeling an existing home, refacing a church or adding stone to a fireplace, Quality Stone Veneer will make your project rock. With a product line that offers 10 stone styles in more than 40 different colors, the East Coast-based company has been casting molds from locally quarried stone for more than 30 years. The manmade stones authentically replicate the shapes, hues and textures of natural stone found throughout Virginia and neighboring states. The company’s installation crews have the ability to execute any project, from conception to completion. For more information, call (717) 786-3229 or visit www.qualitystoneveneer.com.
t Accenting a home with stone veneer can make your next project rock. (Photo courtesy of Quality Stone Veneer.)
16 Virginia Builder
s Four new darker shades guaranteed not to fade have been added to Norandex/Reynolds’ premium siding lines.
Unafraid of the dark side
Norandex’s Great Barrier and Reynolds Grand Junction vinyl siding recently expanded their palettes with the addition of four darker hues to the premium siding lines. In addition to 15 classic colors, the deeper shades of Russet, Steel Blue, Evergreen and Firebrick are now among the companies’ siding options thanks to advanced technology that protects these hues against fading. The new colors are protected by Norandex ColorHold technology and guaranteed with a lifetime limited fade protection warranty. The acrylic-fused capstock prevents the vinyl from developing a whitish film from its exposure to ultraviolet rays, air and moisture. If you or one of your customers would like to see what the dark siding would look like on a particular home or model, the companies’ new HomeVisions design visualization tool will let you take the guesswork out of choosing from a small swatch, paint chip or product sample. Simply choose a style of home from the photos on Norandex’s Web site or upload a photo of your home onto the site. A design professional will contact you in a couple of days for an in-home visit so you can see firsthand what new siding, roofing, windows or doors will look like on a particular house before a hammer is even lifted. For best results when photographing your home, move cars, bikes and other movable objects out of the way so you get a clear shot of your home. Take a high-resolution photo straight-on during the
day, with the sun at your back if possible. Fill the frame or viewfinder with your entire home in landscape format rather than portrait. The interactive service is free. For more information, visit www.norandex.com.
s Atlantic Premium Shutters add extraordinary character to fine homes, signifying attention to detail and timeless style.
Shutter priority
Looking for that elusive shutter? You just may find it in Atlantic Premium Shutters’ Architectural or Classic collection. Guaranteed to be historically accurate, Atlantic Premium Shutters has earned approval from review boards and preservation committees across the country, even in the most historically sensitive areas like Charleston, S.C., Ft. McHenry in Baltimore and the Historic Holy Cross neighborMay 2009
hood of New Orleans. They also meet the Heritage Preservation Guidelines of Historic Landmark Buildings, as published by the National Park Service. Atlantic’s fully functional Architectural Collection comes with a limited lifetime warranty. The components are built from marine-grade pultruded fiberglass, highdensity PVC and composite-wood materials so they won’t crack, split or rot. Unlike wood, there’s no need to sand, repaint or worry about termites. This collection’s paint finish is backed by a 15-year warranty against peeling or flaking. Architectural shutters are available in 40 colors in standard sizes up to 120 inches high and 36 inches wide. Storm-rated shutters, as well as larger units, can be special ordered. Styles include raised panel, louvered Colonial, board and batten, and Bahama. The collection also has a host of options such as operable hardware. The Classic Collection is also available in 40 colors in style options of louver, flat panel, board and batten, louver with faux tilt rod, raised panel and framed board and batten. Made of a low-maintenance composite that looks like wood, these shutters
Q u a l i t y • Product Installation • Product Only
are coated with a color-protecting finish and are backed by a 10-year warranty for both structural components and finish. Atlantic Premium Shutters are products of The Tapco Group. For more information, visit www.atlanticpremiumshutters. com or call (866) 288-2726.
Vinyl siding remains top choice for builders
Vinyl siding remains the No. 1 choice of exterior cladding for new single-family houses. According to the recently published 2007 U.S. Census Bureau data, vinyl siding holds a 32 percent market share among all single-family homes — up one percentage point from 2006. “Even as new exterior cladding is being developed, vinyl siding continues to gain market share or stay flat in nearly all price segments,” says Jery Y. Huntley, president of the Vinyl Siding Institute. “We attribute this to the improved aesthetics and performance of vinyl siding, which is now being applied on homes at all price points.” According to the 2007 Census Bureau’s Principal Type of Exterior Wall Material of
S e r v i c e • Com mercial • Residential
• Interior • Exterior
1 . 8 0 0 . 7 9 5 . 3 2 2 9 Q u a l i t y S t o n e V e n e e r . c o m May 2009
New One-Family Houses Sold, vinyl siding is the top choice for homes at price points up to $250,000, second only to stucco on homes priced between $300,000 and $500,000. By comparison, market share in the “other” category — which includes fiber cement, as well as cinder block, stone and other types of materials — lost in all segments and represents 14 percent of exterior cladding, down from 17 percent in 2006. VAB
Coming IN:
VIRGINIA builder
The July 2009 issue features Building Systems and Lighting
The deadline for space reservations is May 28. Contact Lisa Nixon at VaBuilderAds@yahoo.com or (877) 449-2535 to place your ad.
Va l u e STONE
QUA LIT Y STONE VENEER
E S T. 19 7 6
Virginia Builder 17
counsel's corner
Averting foreclosure with a deed-in-lieu by John Kelly
G
iven the present economic climate, it’s no holders and clear title as needed. To preserve this surprise many real estate developers are right, the agreement should make clear the intent having difficulty paying back their lenders. of the parties for the lien to remain separate even The lender may agree to waive the existthough the lender would then be the owner of the ing defaults and restructure the loan by modifying property as well as the holder of the mortgage lien. the terms of the loan or adding additional collateral Another method of dealing with these anti-merger or the lender may instead proceed immediately to concerns is to have the lender take title to the foreclosure. After conducting its distressed loan due property in a related entity. diligence, however, the lender may determine that neither extreme is the right choice. Tax issues boyack Kelly Restructuring the loan may be impractical given A borrower considering the possibility of foreclosure that economic circumstances make foreclosure inevior a deed-in-lieu of foreclosure should be aware these table, but the lender may want to avoid the expense and time events can lead to income taxation of capital gain or cancellation needed to foreclose. This article discusses the compromise posiof indebtedness income. The tax results depend in large part on tion where the borrower typically avoids foreclosure in exchange whether the loan is a “recourse” loan or a “nonrecourse” loan. for the cancellation of the indebtedness. The key aspects of a A nonrecourse loan is one where the lender’s sole option for deed-in-lieu transaction will be reviewed, with brief mention of recovering on the loan is to take back the property. If the lender related tax and bankruptcy issues. can pursue the borrower personally for any shortfall by obtaining The main advantage offered to both borrowers and lenders a deficiency judgment, then it is a recourse loan. is that a deed-in-lieu avoids the cost, time and negative stigma In the case of a nonrecourse loan, the conveyance is taxed of a drawn-out and contested foreclosure action. For lenders, as if it were sold for the greater of the outstanding debt or the they can quickly and efficiently take over the operation of the sales price. The nature of the gain and the deductibility of any loss project and preserve existing leases and depend on the holding period and the nature of the property. This article contracts. For borrowers, they can obtain In the case of a recourse loan, in addition to the potential a release of their personal liability. income and gain resulting from the sale for value, there also discusses the To preserve the validity of the transfer of may be cancellation of indebtedness income if the debt exceeds compromise the property to lenders, it’s very important the value of the property. Cancellation of indebtedness income that the conveyance was made voluntarily is taxed at ordinary income rates, but there are several temposition where and for adequate consideration. Lenders will porary exceptions. the borrower For example, you can exclude cancellation of indebtedness want to protect themselves from the borincome if the debt is discharged in bankruptcy, to the extent the rower later arguing that they were subject typically avoids borrower is insolvent or in certain situations related to qualified to duress, undue pressure or fraud in an foreclosure in real property business indebtedness. Note that the exception for effort to overturn the transaction. real property business indebtedness is generally available for rental With regard to adequate consideration, the exchange for the real estate and other income-producing property, but typically lender typically won’t accept the conveyance cancellation of is not available for property held for sale such as a residential unless the fair market value of the property development. is close to the amount of the indebtedness the indebtedness. Lastly, note for noncommercial properties, the Mortgage Debt and the property can be obtained for less Relief Act of 2007 generally allows taxpayers to exclude income than the total cost of a foreclosure. To make clear the transfer from the discharge of debt on their principal residence. was voluntary, the borrower should first submit a written offer to the lender offering to convey the property to the lender by Bankruptcy issues outlining the terms and conditions of the offer. If afterward the borrower files for bankruptcy, then in certain The lender should in turn reply to the borrower’s offer in circumstances the conveyance of the property back to the lender writing, providing a list of conditions under which it will accept could be disallowed. The two main issues to be concerned about a deed-in-lieu. With respect to the adequacy of the considerwith respect to bankruptcy after a deed-in-lieu are preferential ation, the lender and borrower should self-servingly provide in an transfers and fraudulent conveyances. agreement that the current value of the property is equal to or Section 548 of the Bankruptcy Code provides fraudulent less than the outstanding indebtedness. Lastly, as part of its due conveyances may be set aside if made within the statutorily diligence, the lender should order an appraisal of the property, proscribed timeframes. To be deemed fraudulent, a transfer must along with a title search and environmental study. be made for less than the reasonable equivalent value and if Usually, the agreement also would preserve the lender’s first lien the borrower meets certain tests of insolvency. on the property. This gives the lender the right to later proceed Under Section 547 of the Bankruptcy Code, preferential transfers with a regular foreclosure in order to wipe out any junior lien 18 Virginia Builder
May 2009
The Home Builders Association of Virginia wishes to express its appreciation to the following members for their generous support of the 2009 Annual Sponsorship Program: PLATINUM Dominion Virginia Power HBAV Benefits Group Virginia Housing Development Authority SILVER Clark Whitehill Enterprises Inc. Creative Home Builders LLC FSK Property Management Mid South Building Supply PRO-Build BRONZE Meridian Construction Capital Napier Signature Homes
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Virginia Builder 19
2009 Annual Sponsorship rogram
within 90 days of the date of bankruptcy filing may be set aside. Further, preferential transfers from insiders who had reasonable cause to believe the debtor was insolvent may be set aside if it is made between 90 days and one year prior to the date of filing of the bankruptcy petition. A preferential transfer is a transfer from an insolvent debtor that’s made for the benefit of a creditor, providing the creditor to receive more than it would have received in a Chapter 7 liquidation if the transfer hadn’t been made. To prevent the transfer from being voided by the bankruptcy trustee, the lender must show the lender didn’t receive more than it would have been entitled to under a Chapter 7 liquidation because the fair market value of the property conveyed is less than the outstanding indebtedness owed to the lender. For a detailed analysis of your situation, do not hesitate to contact the author. (John Kelly, an associate with Reed Smith, practices real property law with an emphasis on commercial real estate financing, acquisitions, sales and leasing. He can be reached at [703] 641-4330 or jkelly@ reedsmith. com.) VAB
VHDA loan program enhances $8,000 tax credit for first-time home buyers
R
ecently, several housing finance agencies in other states created special short-term second loans by “monetizing” the new $8,000 first-time home buyer federal tax credit to assist home buyers needing down payment and closing-cost assistance. The Virginia Housing Development Authority looked at the idea of “monetizing” the new homeownership tax credit, but decided a program it already has in place — the FHA PLUS program — provides better value for borrowers without the hassles. FHA PLUS is a program designed to assist qualified borrowers who need down-payment and closing-cost assistance. A second mortgage (the PLUS) is added to an FHA first-mortgage loan. Because VHDA is quasi-governmental, it was grandfathered under the recent FHA regulation changes and allowed to continue offering down-payment and closing-cost assistance. The program is one of the few available
that allows borrowers to exceed a 100 percent LTV. The program offers several benefits to borrowers. First, it’s flexible because FHA PLUS is based on 5 percent of the sales price. Using VHDA’s average sales price of $160,000, a home buyer could borrow up to $8,000 for down payment and closing costs, the same amount available through the new tax credit. But while the tax credit is limited to $8,000, VHDA customers could borrow more than that amount for higher sales prices. For example, someone purchasing a home in a higher-cost area for $250,000 could borrow up to $12,500 using FHA PLUS. The $8,000 federal tax credit can then be used to fund home improvements, furniture and so on. Home buyers also have the option of using their $8,000 tax credit to pay off or pay down their FHA PLUS second mortgage next year, with no prepayment penalty. By using this new government benefit to reduce their debt, borrowers will
have the opportunity to put themselves in a stronger financial position. FHA PLUS also offers the same term for both loans — 30 years — which allows for smaller monthly payments and the interest can be deducted. By contrast, the new down-payment assistance programs in other states have terms as low as 10 years, thereby doubling the monthly payments for the second loan. It’s important to note VHDA, as with all state housing finance agencies, has maximum income limits on its loan programs. These income limits vary from those required by the new tax credit, sometimes substantially. Therefore, some borrowers may be eligible for the new tax credit but ineligible for VHDA’s FHA PLUS program. VHDA’s income limits can be found at www.vhda.com/vhda_com/Template_app. asp?VHDA_COM_PAGE_NAME=Limits. For more information about VHDA’s FHA Plus program, visit www.vhda.com or call (877) 843-2123. VAB
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20 Virginia Builder
May 2009
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Virginia Builder 21
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22 Virginia Builder
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May 2009