March/April Builder

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Vol. 58, Number 2 The mission of Tidewater Builders Association is to improve the climate for affordable housing; promote the growth and development of the shelter industry; promote excellence and professionalism among members through education and networking opportunities; and support and enhance the community through charitable projects.

For three days, visitors flocked to the Mid-Atlantic Home & Flower Show to fall in love with their homes‌.again. K&D Round’s Landscape Service’s “Getaway Gardenâ€? captured the hearts and the People’s Choice Award for best landscape display. See pages 18-20 for more show coverage.

2011 OFFICERS: William H. Halprin, president; Scott M. Gandy, associate vice president; S.L. “Sam� Cohen, vice president; Steven E. Lawson, treasurer; Dennis M. Graf, secretary; Eric Sasser, appointee; Lucky C. Peterson, appointee; and Pete A. Kotarides, immediate past president. 2011 BUILDER DIRECTORS: Douglas C. Smith, Gary L. Werner, Scott L. Crumley, Chris Ettel, Erin Widener Speckhart, Lucky C. Peterson, Tuck Bowie and Stephen Quick. 2011 ASSOCIATE DIRECTORS: Joseph W. Kesterson, Kelly M. Beck, Robert L. Nicholson, Robert M. Boyd, Gregory Dodd, Thomas Dye, Brenda Reid and Edward O. Yoder. DIRECTORS EMERITI: Edward P. Brogan, William J. Fanney, Richard D. Guy, Doyle E. Hull, Frederick J. Napolitano, Richard E. Olivieri, John H. Peterson Jr., Julian Rashkind, Stanley Waranch, Howard M. Weisberg, Wendell A. White. CHIEF EXECUTIVE OFFICER:

Channing A. Pfeiffer

Managing editor. . . . . . . . . . . . . . . Mary Prier, APR Editor . . . . . . . . . . . . . . . . . . . . . . . . . . Sara Steil Advertising sales . . . . . . . . . . . . . . . . . Kim Powers Production coordinator . . . . . . . . . . . Stella Council Adviser . . . . . . . . . . . . . . . . . . . . . Sandra Amidon Graphic Artist . . . . . . . . . . . . . . . . . Diane Trumbull Copyright: 2011; all rights reserved. No permission to reprint unless expressly given by Tidewater Builders Association. The Tidewater Builder is published for all TBA member firms through the $15 subscription price, which is included in the annual membership fee. Opinions expressed by contributing columnist are not necessarily those of this publication.

The Tidewater Builder is published bi-monthly, January through December, by Tidewater Builders Association, located at 2117 Smith Ave., Chesapeake, VA 23320. Editorial deadline is 5 p.m. on the 1st of the month preceding publication. The advertising deadline for copy and insertation can be obtained by calling the Homearama/Home Shows and Special Project division at (757) 420-2434. All advertising is subject to current rates, copies of which can be obtained from the Homearama/Home Shows and Special Project division, 420-2434. The magazine reserves the right to determine the suitability of any advertising or editorial copy, and all real estate advertising is subject to the Federal Fair Housing Act of 1968, which makes it illegal to advertise any preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status or national origin, or an intention to make any such preference, limitation or discrimination.

Features /HW \RXU LPDJLQDWLRQ VRDU DW (DJOHâV 1HVW Spring Homearama brings visitors back to style, comfort and luxury. See why families are deciding to feather their nest in this Virginia Beach community.

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ODU head football coach Bobby Wilder motivates TBA members to turn setbacks into comebacks at TBA’s first Meeting of the Membership.

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TBA members find themselves making TV history on ABC’s ,_[YLTL 4HRLV]LY! /VTL ,KP[PVU and CBS’ <UKLYJV]LY )VZZ

:KDWâV QH[W LQ &KLQHVH GU\ZDOO OLWLJDWLRQ" Attorney Brian Slaughter, who represents 17 builders and developers in the Chinese drywall litigation, explains the challenges at hand – and what the building industry can expect to see as the cases progress.

Departments 2

President’s Pen

32

Membership Matters

7

Events Calendar

33

Shop Talk

7

Headliners

34

Advertisers’ Index

15

Builder Services

34

Big Pic

16

Counsel’s Insights

36

Membership Update

$ERXW WKH FRYHU Mid-Atlantic Home & Flower Show visitors were whisked away to a tropical paradise thanks to Dreamscape Designers’ Caribbean Garden, which featured a waterfall surrounded by tropical plants, an outdoor patio, a dining area and more. MARCH/APRIL 2011

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The 2011 housing forecast: Jobs, foreclosures and pent-up demand

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a military command based in Gerf the predictions for the 2011 many. Some of the recent national Hampton Roads housing market job reports also hold promise that were made into a weather forewe’re moving in the right direction, cast, it would be partly sunny, though most economists readily partly cloudy and who the heck really agree it’s not yet enough. knows? Meanwhile, housing industry anaOnly one thing seems certain — it’s lysts cite a historically low inventory going to be another year of closely of new-construction homes, comwatching economic indicators for bined with a pent-up demand from positive signs in our local and national household formations that haven’t economies. happened yet. A February report by The annual Old Dominion UniNational Association of Home Buildversity Real Estate Market Review ers economists points out that since brought a mixed outlook from the real 1965, the number of households in estate experts, who generally foresee a continued but slow recovery in 2011 Only one thing seems certain — it’s going the U.S. grew at an average annual for commercial, industrial, retail and to be another year of closely watching eco- rate of 1.5 percent, adding nearly 1.3 million households every year. residential housing markets. nomic indicators for positive signs in our Contrast that to 2007 through 2009, The exception, the multifamily when household formations averaged housing market (with its lowest occu- local and national economies. only 421 thousand a year — only a pancy level in a decade in 2009), saw third of the long-term average. rent and occupancies steadily increase Their conclusion is that a considerable portion of the to 94.7 percent in the last quarter of 2010. Though good excess housing supply is due to a steep decline in demand news, this turnaround was attributed to strengthening derelated to economic conditions rather than to overbuilding. mand in lieu of home ownership and a limited development It concludes that this excess supply reflects significant pentpipeline. up demand, indicating the recovery in the housing market The housing market, in particular, still has a ways to go, will come more quickly “as the economic recovery makes according to Van Rose, president of Rose & Womble Enprogress and pent-up demand becomes realized demand terprises. Van expects the backlog of foreclosures to peak absorbing vacant units in existing housing stock and adding in 2011 and to prolong the housing recovery so that the pressure for construction of new units.” market won’t feel like “normal” for a few years to come. He Van said he expects that pent-up demand to show itreported that 12 percent of the inventory of homes for sale self in the marketplace by the end of 2011 and into 2012 locally are foreclosures, but they account for 29 percent of as consumers gain confidence and the economy gains the homes that are sold. Still, he pointed out that detached strength. new homes in some price ranges are being absorbed in So until then, hang in there. And, as ODU Coach Bobwhat’s considered a normal rate of five to six months. by Wilder said to the TBA membership meeting, try to Job growth holds the key to recovery for all of the real cultivate an “attitude of gratitude” along the way. estate sectors, and on that front, positive projections for 10,000 new jobs in Hampton Roads this year have come from the ODU economic forecasting team. There are potentially some exciting developments, including the expected closing on the sale of the former Ford plant, and the possibility of relocating 1,500 jobs from U.S. AFRICOM, William H. Halprin 2

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:[`SL *VTMVY[ 3\_\Y` Families start to “feather their nest� in Spring Homearama development

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hat started off as six model homes for sale has since boomed into the establishment of a sustainable community in the southern area of Virginia Beach. Three of those models are now homes for the first families of Eagle’s Nest. More will be arriving soon as Spring Homearama builders bring another nine homes online, seven of which were sold before the builders even broke ground. Since mid-January, the phones have been ringing off the hook, said site agent John Savino. “Activity is brisk since there is a lot of pent up demand in the market. “People are concerned about the interest rates going up in the spring,� Savino continued. “It’s inevitable that it’s going to happen, so they want to lock in

that lower rate now.� He also credits the improvement of the stock market and returning consumer confidence. Interest from neighboring Courthouse Estate residents, many of whom may be looking to upsize their homes, has also helped sales. “Many of the families in Courthouse Estates are looking to move up,� said Savino. “Their families are growing and they want more room. Eagle’s Nest is that step up they are looking for.� Zirpoli noted that more homeowners are putting down 10 to 20 percent on their home purchases — an unusual, but welcome change. To top that off, “the homes that we have taken on contingency have sold pretty fast,� said Savino, “because they are in the $200,000 and $300,000 range, which is selling.�

7KH KRPHV The homes in Eagle’s Nest mark the

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MARCH/APRIL 2011

return to a more traditional Homearama neighborhood, with larger upscale homes and in many cases, swimming pools in the back. Eighty percent of the homes in the community will be traditional, twostory brick homes, said developer Robert Zirpoli of Neck Properties Inc. The exteriors are comprised mainly of brick or stone, with some being a combination of stone, brick and cement fiberboard, such as HardiPlank. “It’s good to have some color added to the neighborhood,â€? he continued. “We also offer a cottage style home that will be sprinkled throughout the community.â€? Homes average 3,500 square feet and start between $575,000 and $625,000 and up depending on the size and customization. Lot sizes range from a quarter of an acre to more than half an acre, which allows plenty of space for the (DJOHâV 1HVW GHYHORSHU 5REHUW =LUSROL OHIW DQG VLWH DJHQW -RKQ 6DYLQR VWDQG LQ IURQW RI WKH GHYHORS PHQWâV QHZO\ ODQGVFDSHG HQWUDQFH

home and outdoor living areas. “In this community, the homes are a high quality,” said Zirpoli. “People are getting a lot more bang for their buck than in other areas. You get a mostly brick home with a lot of extras, such as granite countertops and wood floors, that you don’t get in a lot of the other areas.”

Spring Homearama will open Memorial Day weekend

:KR OLYHV LQ (DJOHҋV 1HVW" Jogging paths, ponds and lots of trees, plus convenient access to shopping, restaurants, professional services and recreational amenities make life at Eagle’s Nest attractive for those seeking a country lifestyle in the city, according to Savino. So far, homeowners are couples in their mid-30s to early 40s, young entrepreneurs and military families. With the close proximity of the Virginia Beach courthouse complex, the neighborhood is a desirable location for those working there. With walking trails already in place along the neighboring lakes, it makes a perfect location for a family to feather its nest. “(Families) are leaving other developments around here because the houses are 2,000 square feet and now they need 3,000 or 4,000 square feet. So we’ll definitely see lots of children in the development,” Savino said.

(DJOHҋV 1HVW DPHQLWLHV The location of Eagle’s Nest and its conservation land gives it a rural flavor, but it still comes with a first-class school district as the new Kellam High School nears completion just down the street. “We’ll definitely have a clubhouse,” said Zirpoli. “We may or may not have a pool. It seems as if everyone is already building a pool in their yards.” Just down the road from the development is the Signature at West Neck golf course. The Arnold Palmer Signature course features a challenging 7,010-yard, par-72 course with 13 lakes, natural wetlands, beach bunkers and more. A few more miles away are the booming Landstown Commons shopping areas and the Farm Bureau Live at Virginia Beach, formerly the Verizon Wireless Virginia Beach Amphitheater. A few miles in the other direction are the beaches of Sandbridge, which offer five miles of pristine sand dunes and beaches. Though it’s convenient to most Virginia Beach amenities, it’s still only 30 minutes from Downtown Norfolk. For more information on Eagle’s Nest, please contact John Savino at (757) 217-1688 or by e-mail john@johnsavino.com.

With less than three months until Homearama opening weekend, Mike Thompson of TCI Inc. has most of his home bricked.

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ight builders will showcase nine custom homes during Tidewater Builders Association’ Spring Homearama. The showcase event will kick off Memorial Day weekend and will spread the “Buy Now” message during the heavier spring and summer selling seasons. The show will be open from May 28-June 12, in the Virginia Beach community of Eagle’s Nest. It was originally scheduled for May 7-22. Located at Indian River Road and West Neck Road in southern Virginia Beach, “Eagle’s Nest is one of the few new custom home developments available in Virginia Beach,” said Robert Zirpoli, developer, West Neck Properties Inc. To date, seven of the estate-style homes, which range from 2,600 to 4,400 square feet and are priced at $499,000 and above, have already found buyers. • Chip Iuliano, ABT Custom Homes; • Jeff and John Ainslie and Ken Cohen, Ainslie Group/Cohen Homes; • Les Ore, Ore Builders; • Robert Letchworth, RML Corp.: • Jack Schoch, J.F. Schoch Building Corp.; • Alex, Steve and Stephen Quick, Stephen Alexander Homes; • Mike Thompson, TCI Inc.; • Herb Watson, H.D. Watson Builders with two entries.

This site plan illustrates where the Homearama homes will be located at Eagle’s Nest. MARCH/APRIL 2011

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here is no doubt the Tidewater Builders Association’s annual Fall Homearama can spur home sales. The proof is in the numbers. More than 75,000 visitors flocked to the Fall Homearama at East Beach from Oct. 15-31, 2010. With nine single-family homes on display, plus two demonstration cottages and two East Beach Villas condominiums, visitors had a lot to see. The nine Homearama homes sold for a total of $5.5 million dollars, with an average price of $611,000. In the cottage courtyard, eight lots were developed and seven are sold or under contract. East Beach reports that 2010 was its best year since 2006 in terms of lot sales, with 40 new lots under contract, 32 of which closed in 2010 and eight of which

are anticipated to close in this year. Additionally, 30 new homes were occupied in 2010. Due to strong sales, East Beach plans to start Phase 6 of its development plans in spring/summer 2011, which is earlier than expected. Additionally, the Congress for New Urbanism recently awarded the prestigious Charter Award to East Beach. It’s the highest honor a project can receive within the new urbanist community and is awarded to projects that exemplify the highest standards of master planning and implementation. East Beach also will be home to the 2011 Coastal Living Idea Home, which is expected to open on Fourth of July weekend. This will mark the second Coastal Living Idea House in the community.

Contact me on how you can save 22% off your monthly bill.

Daniel Scarborough Sprint/Nextel General Business Account Executive for

Tidewater Builders Association

757.449.6628 d an iel. s c ar b orou g h @ spr i nt . c om • Act now, limited time offer.

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MARCH/APRIL 2011

Colton, a resident of St. Mary’s Home for Disabled Children, and builder Scott Crumley, center, give the Charity House keys to Dale Drescher, who purchased the 2010 Fall Homearama Charity House. Also pictured is St. Mary’s director of development Martha Stewart, far right.

Charity House brings sizeable donation to St. Mary’s

The residents of St. Mary’s Home for Disabled Children will likely be enjoying their home a little more thanks to Scott Crumley, of Crumley Group, the builder of the 2010 Fall Homearama Charity House to benefit St. Mary’s Home, and its generous supporters. Crumley was able to make a generous donation from the proceeds from the sale of the home to St. Mary’s Home. The donation will be used to upgrade the facilities, including decorating the children’s rooms in a taste and style more tailored to each child’s personality and specialized needs. Proceeds from the sale of the home, along with contributions from the Homearama preview party and staffing of the home with volunteers, generated $78,000 for St. Mary’s. Homeowner Dale Drescher also made a donation to St. Mary’s. St. Mary’s residents currently stay until they reach 21 years of age. It’s planning to open a wing for adults in 2012.

Č?ǸȇȾȨȽČ?É‘É• Dragas honored

Helen Dragas of the Dragas Corp. will be honored at The Virginia Center for Inclusive Communities Humanitarian Awards Dinner on ThursDragas day, March 31. The awards honor individuals who have demonstrated a commitment to the promotion of respect and understanding among people of diverse racial, ethnic and religious backgrounds. For more information, visit www.inclusiveva.org/awards.php.

Boyd honored for volunteerism

VOLUNTEER Hampton Roads will honor Robert M. Boyd, President of BB&T Hampton Roads Region as the 2011 Lenora Mathews Lifetime Achievement Award honBoyd oree during the 36th annual Hampton Roads Volunteer Achievement Awards banquet. The event is set for 6 p.m. Wednesday, April 6, at the Norfolk Waterside Marriott. Tickets are $50 per person. Please RVSP by March 31 by contacting Nicole Krieger at 624-2400 or corporaterelations@volunteerhr.org. or purchase tickets online at www.volunteerhr.org.

TBA annual picnic gets new date

Tidewater Builders Association’s 34th annual Picnic will take place from 3-6:30 p.m., Thursday, April 14, at the Chesapeake City Park. Tickets cost $22 now through April 1 (no joke!) Afterward, the cost increases. Bulk discounts are also available. For more information, please see page 12 or contact Stacey Turner at 305-9042 or sturner@tbaonline.org.

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Ramon W. Breeden Jr. to receive Lifesaver Award

April

The Virginia Beach SPCA has selected Ramon W. Breeden Jr., chairman of the board and founder of The Breeden Co., as the organiBreeden zation’s first Lifesaver Award recipient. The award will be presented at the VBSPCA’s Back to the Beach Spring Gala on Saturday, April 9, at the Cavalier Beach Club. Breeden is being recognized for his support of the VBSPCA and its programs, and for leading the rental housing market in responsible, pet-friendly policies. For more information, contact the SPCA Development Department at 4270070, ext. 14 or 20.

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Time is running out to apply for TBA scholarships

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The 2011 TBA scholarship applications are now being accepted through Friday, April 15. Eligible students must be local high school seniors attending a four-year college or university in the fall. For more information, visit tbaonline.org and click on “Scholarships� or contact Mary Hearring at 305-9018 or mhearring@tbaonline.org.

Chip Dicks is back!

John G. “Chip� Dicks III of FutureLaw LLC will present Virginia Residential Landlord and Tenant Act/ Fair Housing review from Dicks 8:30 a.m. to 4 p.m., Thursday, April 21, at the Norfolk Waterside Marriott, 235 E. Main St., Norfolk. The cost is $85 for TMHC members and sponsors and $125 for nonmembers. To register or for more information, please contact Maggie Rickard at 305-9053 or mrickard@tbaonline.org.

Market Share Totals - Settled Sales William E. Wood and Associates

278

Rose & Womble

206

Prudential Towne

179

Long & Foster Wainwright

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Contact Brenda Reid, Managing Broker & Director of New Homes, if we can assist you in the sales and marketing of your New Home Community. Visit newhomes.williamewood.com for more information. REIN MLS data based on settled sales, January 2011.

MARCH/APRIL 2011

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Nearly 200 TBA members attended TBA’s first Meeting of the Membership at the Norfolk Waterside Marriott.

from Hampton, William and Mary, James Madison and Richive me a P. Give me mond during regular season play. an M. Give me an A! “I thought the whole thing was Nearly 200 people very uplifting. In our market right left Tidewater Buildnow, that’s a good thing,” said Kelers Association’s first meeting of ly Minton, purchasing manager the membership with a fresh dose at Sasser Construction LC. “Basiof PMA (that’s Positive Mental Atcally, the main thing I got out of titude to the uninitiated) thanks to it was to always have a positive the motivational words of featured mental attitude. If you have that, speaker Old Dominion Univerthe rest falls in line.” sity Head Football Coach Bobby “I brought 22 people and they Wilder. thought it was great!,” reported Wilder’s philosophy for buildTed Yoder of Monarch Bank/ ing a winning team resonated with Monarch Mortgage. “The people the audience, who quickly realized I brought were all members of his formula for success had much my sales force who also attended broader applications for the workODU.” place. Yoder was among those who In 2008, Wilder put together the gave the new TBA luncheon forfirst football team fielded by ODU mat meeting a rave review. 2'8 KHDG IRRWEDOO FRDFK %REE\ :LOGHU JDYH since the 1930s and sold out 14 DQ LQVSLULQJ VSHHFK WR 7%$ PHPEHUV DERXW “I like the lunch format because consecutive home games at ForeORRNLQJ DKHDG WR WKH QH[W SOD\ LQVWHDG RI IR it doesn’t take time away from man Field. FXVLQJ RQ SDVW PLVWDNHV RU VXFFHVVHV family. I also like speakers with a His Monarch team was named motivational twist, like the coach,” “the winningest start-up program in he said. 2009,” closing out its first two years Many attendees who didn’t take with a 17-5 record. notes were trying to remember and recite the coach’s simple This fall it joins the Colonial Athletic Association (CAA), but meaningful tips on their way out. “Always aim high,” which Wilder called the “toughest FCS conference in the “have an attitude of gratitude, ” and “do right — all the time country.” The 2011 schedule pits his players against teams

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MARCH/APRIL 2011

TBA past president Bob Widener of The Widener Corp. was awarded the Member of the Year award for going above and beyond the call of duty and leading TBA’s Restructuring Committee.

ODU head football Coach Bobby Wilder, third from left, gathers with ODU alumni Bill Halprin of S.L. Nusbaum and TBA president; Larry Hill of L.R. Hill Custom Builders; Jeff Ainslie of Ainslie Group; Michael Newsome of Clark Whitehill Enterprises and Home Builders Association of Virginia president; and Chip Iuliano of ABT Custom Homes. BIIA Insurance gave two lucky winners the chance to reach in the treasure chest and grab as many coins (silver dollars) as possible with one hand. Jim Standing of Monarch Mortgage managed to grab $45 worth of coins, which he in turn donated to the Building Trades Academy. BIIA was on hand to promote its new coverage.

(when no one is watching)� were just a few. “The one I really liked was to always go to your employer with a solution to the problem instead of always just coming with problems – instead of being an energy sucker,� added Minton. She said she also was glad to learn more about the ODU football team, which she has seen in action. “Now that I know how he tries to influence the kids and that he’s going to find not just a star athlete, but trying to find a good person, it makes me feel better about watching those boys play. I’ll probably support them a little bit more.� Minton attended the event with a group from her office — including the builder, chief financial officer, architect, operations manager and all of the project managers. She reports they have since found themselves referencing many of Wilder’s remarks. “We use PMA a lot.� Wilder talked about coming from behind to win and gave advice that seemed made to order for those in the housing industry. “Always play the next play,� Wilder said. “That setback is a comeback waiting to happen.�

ODU alumnus and football fanatic Jeff Ainslie of Ainslie Group introduced Wilder, as well as helped arrange his speaking engagement.

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+VPUN I\ZPULZZ PU [OL ¸UL^ UVYTHSš LJVUVT` “This country had a huge, huge wound. It takes time for wounds to heal, regardless of how good the care is.â€? – Warren Buffet

“The fundamental core of the economy is still strong, but there’s no fuse we can light to speed up the recovery. “Right now, consumers are fixing their balance sheets spending less money,â€? he contin)` 4HY` 7YPLY (79 ued. “Before, they were spending everything t wasn’t necessarily what the audience in the they made and everything they borrowed on TBA boardroom wanted to hear, but it may the rising value of their homes. Now, they’re have been what they needed to hear. not borrowing and they’re trying to pay some The topic was “Bumpy journey to a new norof it back.â€? mal,â€? an economic overview presented by John B For housing, it’s going to take three and half Jung Jr., senior managing director of BB&T Capmore years to work through the inventory of ital Markets, at the first quarterly TBA member foreclosures, said Jung. And realistically five breakfast forum. years or more before the demand for new His key messages: Recovery is going to take John B. Jung of BB&T’s Capital time. Washington doesn’t have the answers. It Markets told a TBA Breakfast homes gets back to 1.2 million units a year, may never be like it was before — and that’s not Forum that things are going which was once considered normal demand. Home prices outpaced real wages for the necessarily bad. to be different and companies past 20 years, he added. (In Virginia, it only “I’m not saying that it’s all negative,â€? said Jung. must adapt to survive. happened in the past decade.) “But the worst thing you can do is think that if “When housing prices are back in line with you just wait long enough, things will go back to what people are making, the industry will start to come back,â€? the way they were.â€? Jung said. Jung said after riding the wave of a highly leveraged econoHe cautioned that most experts believe home ownership my for the past 61 years (1946-2007), it’s going to take more will never again yield returns like those enjoyed in the second time for the market to adjust to the de-leveraging currently half of the 20th Century, and it’s unlikely values will ever catch taking place and for consumer confidence to return. up to what was lost in the past five years. “To a certain extent, we’ve got to let it play out,â€? said Jung. “It may have been a mistake to buy homes as investments,â€? he said. “People were looking at how much real estate was rising compared to other investments and deciding to buy a bigger home to capitalize on those returns.â€? It may also be a mistake to sell homes as good investments, he added. “It used to be that people bought a house because (JJVYKPUN [V 1VOU ) 1\UN 1Y [OL 5V [OPUN ^L JHU they were buying a home. They were paying for a place to live, KV PZ [V PUUV]H[L Âś [OPUR HIV\[ `V\Y SPML HUK `V\Y I\ZP and after 30 years, they owned something that had value.â€? ULZZ PU H KPMMLYLU[ ^H` Jung said excess regulations and politics can slow the re‹ 3PZ[LU [V [OL THYRL[ ¡ P[ÂťZ X\PL[LY ^OLU P[ÂťZ SLZZ covery. JYV^KLK ¡ \UTL[ ULLKZ HIV\UK ;OLYL PZ SLZZ He told builders he understands their frustration about JVTWL[P[PVU [OHU [OLYL ^HZ Ă„]L `LHYZ HNV the lack of AD&C (acquisition, development and construc‹ 0U]LZ[ PU `V\Y J\Z[VTLYZ Âś UV^ [OL` ULLK `V\ [OL tion) lending and pointed to that as an example of knee-jerk TVZ[¡ SV`HS[` OHUNZ PU [OL IHSHUJL 6MMLY [OLT regulations. TVYL ]HS\L “It’s not that your bankers don’t want to loan the money, ‹ 0TWYV]L HUK PUJYLHZL JVTT\UPJH[PVU but their hands are tied. Regulators want banks to reduce ‹ +V^U[\YUZ WYV]PKL HU VWWVY[\UP[` [V ^PKLU [OL their exposure to real estate and rebalance with more comNHW IL[^LLU `V\ HUK `V\Y JVTWL[P[VYZ mercial and industrial lending.â€? ‹ ;OL JVTWHUPLZ ^OV YLHJ[LK YH[PVUHSS` [V [OL In closing, he encouraged the audience to look for opporUL^ JPYJ\TZ[HUJLZ HYL HSYLHK` [OL ^PUULYZ PL! tunities in the new environment. “The economy is going to PUJYLHZLK LTWSV`LL WYVK\J[P]P[` YLK\JLK JVZ[Z grow, but it’s not going to grow the same way,â€? he said. “My ‹ 9H[PVUHSPaL `V\Y I\ZPULZZ [V [OL THYRL[ ;OVZL ^OV kids will make a living a different way than I made a living. My Z[H` PU [OL THYRL[ HUK PU]LZ[ YLHW [OL YL^HYKZ dad made a living a different way than I make a living.â€?

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>OH[ HYL UL^ OVTL I\`LYZ ZH`PUN& Despite the Great Recession, the basic rational for buying a home hasn’t changed that much, according to buyers surveyed by The New Homes Division of William E. Wood )` )YLUKH 9LPK 5L^ /VTLZ +P]PZPVU and Associates. >PSSPHT , >VVK Our results revealed that while price was a factor, it was not the primary reason people chose their homes. The survey results show location is still a huge factor over price. It further proved most prospects buy to improve their lifestyles. Buyers are taking longer to decide and looking at more homes before they buy. Also, resale is our major competition in selling new construction. Here’s what we found: • 41 percent looked at more than 16 homes before they bought. • 79 percent considered a “usedâ€? home before they bought • 26 percent took over 10 months to make their decision. Over price considerations, repeat buyers are looking for functional space — to live larger than they do in their present homes. The top features that caused them to choose one new construction model home versus another were: 1. Location 2. Overall design 3. Price 4. Builder reputation 5. Ability to customize When asked the “main reason for your move?â€? The responses were: 1. Larger home 2. Military transfer 3. Closer to work 4. Retirement 5. School district The survey also supported that buyers are first looking online and should be treated as “returnâ€? prospects. A 2010 survey by the National Association of Realtors (NAR) revealed that consistently among buyers of nearly every

age bracket and every household composition — those with children and those without children — the primary reason for purchasing a home was the innate desire to own a home. Buyers aged 65 or older responded most often that the desire to be closer to family was the primary reason for their purchase. The typical home purchased in the NAR survey period of mid-2009

through mid-2010 was smaller and less expensive than homes purchased in past years, but the trends remain. Repeat buyers purchase larger homes than firsttime buyers and their new homes are larger than previously owned homes. Brenda K. Reid is managing broker, New Homes Division, for William E. Wood and Associates Realtors Inc. and is a member of the TBA Board of Directors.

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Tidewater Builders Association’s

34th Annual Picnic 3 - 6:30 p.m., Thursday, April 14 A new spot by the permanent stage at Chesapeake City Park!

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Gypsum drywall was first imported into the United States from China around 1999 from a company called Beijing New Build:SH\NO[LY ing Materials. This material does not appear to have been defective, but was only a small percentage of the overall market. As new construction continued at a record pace in 2003, 2004 and 2005, the demand for building materials outstripped the supply. More and more suppliers began looking farther afield for a reliable source of materials. Additional Chinese companies began selling drywall to U.S. importers — including Taishan Gypsum Co. Ltd. In 2005, a local building supply house purchased 150,000 sheets of drywall from Taishan and, in turn, sold the drywall to dozens of drywall installers and builders across Hampton Roads. Hundreds of new homes were constructed in Virginia using this drywall product, and it was also used in many smaller addition or remodeling projects. Similar stories have played out across a significant number of U.S. states.

How are homes affected?

Homes built using the Chinese drywall have been affected in a number of ways, depending on the relative heat and humidity inside the house. Since the problem first came to light, nationally, in late 2008 and early 2009, we have learned that the drywall imported from Taishan contains a high concentration of sulfur compounds. These compounds create a distinctive odor in the homes where the drywall is installed — a smell akin to that of kitchen matches or fireworks. The severity of the odor varies from house to house. It’s believed that the drywall gives off, or “off-gasses,” the sulfur compounds

into the air surrounding the drywall, and that the compounds combine with water molecules in the air to create an acid-like aerosol. The higher the heat and humidity, the worse the effect. As the air in these homes is moved Frustrated homeowners have gone as far as hanging banthrough air conditioning ners from their homes, like this one, to shed light on the systems, and across metal problem. surfaces, the corrosive that sold them the home, and claims combination is believed to turn metal against the installers, sellers and manusurfaces black and pit them. The most facturers of the drywall. None of the susceptible piece of equipment, which insurance companies against whom often failed numerous times before the claims have been made have voluntarily Chinese drywall was discovered, was accepted coverage of these claims. The the air conditioning coil system. Howinsurance industry maintains that these ever, metal components of appliances, claims are not covered, because they fall televisions and computers can also be under one or more of the following polidamaged. Some homeowners claim to cy exclusions — pollution, latent defect, have suffered physical symptoms, such corrosion and faulty materials. Because as nosebleeds, headaches and exacerthe scope of the problem is so large, few bated asthma because of the drywall. of the parties allegedly responsible for it However, these physical claims have not are able to do anything about it without been corroborated by expert medical the help of insurance. As a result, extenopinion. sive litigation has ensued.

Making a legal case

The affected homeowners have tried many approaches to get the problems fixed. They have made claims against their homeowners’ insurance, claims against the builder and/or developer

There are thousands of lawsuits pending nationwide and more than 140 pending in Virginia, mostly in the Hampton Roads region. Homeowners claim the drywall in their homes is de(continued on page 35)

MARCH/APRIL 2011

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2011 General Assembly session a huge success for building industry

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he 2011 Legislative Agenda of The Home Builders Association of Virginia (HBAV) passed both houses of the General Assembly and was awaiting the governor’s signature as of press time. The pro-housing/ pro-business agenda was developed by the HBAV Legislative Committee, which was made up of representatives from each of the 16 local associations. The group met weekly during session to establish the policy on legislative matters that would affect Virginia’s housing climate. No legislation that would negatively impact Virginia’s housing industry passed the legislature this year. TBA’s 2011 Legislative Committee includes Michael Newsome, HBAV president; Sam Cohen, chair; Dennis Graf, Steve Lawson and committee alternates John Ainslie, TBA President Bill Halprin and Lucky Peterson. Following is a brief summary of bills supported by the industry:

Incentives for accessible homes

House Bill 1950 by Del. Ron Villanueva of Virginia Beach will increase the state Livable Home Tax Credit from $2,000 to $5,000 and make builders of new accessible homes eligible for the state tax credit. The current $2,000 credit is only available to individuals who retrofit their current home to make it accessible and is limited to 50 percent of the total amount expended for the retrofit of an existing home. A high priority of the Virginia community with mobility impairments, the McDonnell Administration and HBAV is to increase the available stock of visitable and accessible homes in the Commonwealth. The Virginia Department of Housing and Community Development will establish the 14

MARCH/APRIL 2011

eligibility requirements for the Virginia Livable Home Tax Credit. The state tax credit is capped at a total of $1 million per year. Annually, $500,000 of the cap will be dedicated to builders of new accessible homes and $500,000 will be dedicated to renovation of existing single-family homes. Residential rental property is not eligible.

Attorney fees may be awarded for challenging proffer payments

Senate Bill 1204 would allow a court to award attorney fees — should a builder or person successfully prevail in a legal action challenging a locality’s refusal to allow per lot cash proffers to be paid after final inspection and before the issuance of Certificate of Occupancy (instead of before issuing a building permit or earlier.)

Soil and Water Board representation

Senate Bill 1412 and House Bill 1829 would add three new members to the Virginia Soil and Water Conservation Board who can fairly represent business or local government interests through education, training or experience, and would remove the DCR director as a voting member of the board. The board approves all changes to Virginia’s Stormwater program which is vital to developing property in Virginia.

Phosphorous banned from fertilizer

Senate Bill 1055 and House Bill 1831 will prohibit inclusion of phosphorus in lawn maintenance fertilizers in Virginia beginning Dec. 31, 2013. Runoff from turfgrass is a significant source of nutrient pollution and a prime cause of the decline of the Chesapeake Bay. These bills will help reduce pollution from urban and suburban lands, which can save taxpayers and business owners money and ease compliance with the EPA-TMDL by private landowners, local governments and

0ȐȝȨɕȵǸɜȨɨȐ \ɑǸɉ ɤɉ Get ready for state elections the Commonwealth of Virginia. Property owners get alerted Later this year, all 140 seats in the Virginia The measure could reduce phosHouse Bill 1844 would require a General Assembly will be up for election. phorus pollution running off into locality to give notice to the owner Count on TBA’s Political Action Committhe Chesapeake Bay from Virginia of property within 10 days when tee to monitor those elections, interview by up to 375,000 pounds per year, a party, other than the owner, candidates and communicate with you which or nearly 40 percent of Virginia’s requests that the zoning adminiscandidates understand your phosphorus reduction goal for trator or any other administrative industry and will move 2017. That could save localities milofficer provide a written order, reHampton Roads and lions of dollars by reducing their quirement, decision or determinaVirginia forward. need to install expensive stormwation that would bind the owner of ter runoff treatment systems. Both the property. measures would allow for the disA decision by the governing tribution of specialty fertilizers – products for starter lawns, body shall be binding upon the owner of the property only gardening, trees, shrubs and indoor plants – in Virginia that if the owner has been provided written notice of the zoning include phosphorous. It also prohibits the sale of de-icers that violation, written determination or other appealable decision. contain fertilizer. Currently, there is no requirement for property owners to be provided such a notice when their property is the subject of Stormwater nutrient trades being created such a determination by another. Senate Bill 1099 is a step in the creation of a Stormwater Nonpoint Nutrient Trading System in Virginia. A study committee will be organized to develop a nonpoint source stormwater off-site nutrient trading program. The bill also removes current limitations on when those issuing permits, (localities in most places) may allow use of offsets and specifies certain conditions under which off-site options will be allowed, including all sites less than 5 acres; sites with less than 10 pounds of phosphorus; sites reaching 75 percent of required phosphorus reductions on site; and sites demonstrating alternatives have been considered to the maximum extent practicable. The legislation grants the permittee the authority to select the best off-site option, except in certain approved pro-rata fee localities until July 1, 2014.

VDOT bills drive orderly development

Senate Bill 1206 will delete from the Code of Virginia the requirement for a Virginia Department of Transportation Traffic Impact Statement (TIS) for all by-right development. It also directs VDOT to eliminate all related TIS regulations for by-right development by Dec. 31. Senate Bill 1462 will require the Commonwealth Transportation Board to review and consider appropriate revisions to VDOT TIS regulations, VDOT requirements for secondary streets to be accepted in the state system and VDOT Access Management Regulations relating to family subdivisions. Reviews have to be completed by Nov. 30, and the revisions shall be final by Jan. 1, 2012.

Action on inactive plans

House Bill 2411 would provide flexibility to local governments to enact a bonding moratorium or deferral option on extended but inactive development plans. The legislation would also require the landowner or developer to comply with the terms of any bonding moratorium or deferral agreement for the period of the plan validity extension.

Terms of agreement limited

House Bill 2472 will clarify that the terms, conditions and specifications contained in any agreement, contract, performance agreement or similar document, be limited to those items depicted or provided for in the approved plan, plat, permit application or similar document for which such performance guarantee is applicable.

Addressing late bills from renters

House Bill 2425 will require that before recording a lien on an owner’s property for a tenant’s unpaid water or sewer fees; the water or sewer authority shall provide the owner with 30 days’ written notification. The owner can avoid the lien by paying the obligations. If the former tenant pays the authority after the owner already has, the property owner shall be entitled to a refund. It also requires an authority to notify a property owner, if he requests, of a tenant’s delinquent water bill when it becomes 15 days delinquent. Furthermore, a locality or service authority may not deny service to a new tenant for unpaid fees and charges unless a lien has been recorded against the property owner.

Governor’s transportation funding package

The General Assembly approved the governor’s transportation funding package, Get Virginia Moving. It includes $2.9 billion of bonds and $283 million of funds for the new Virginia Transportation Infrastructure Bank. The state Senate prevailed in reducing the State General Fund contribution to the Transportation Fund from $150 million to about $33 million. Overall, the passage of the plan provides additional dollars for substantial financial investment in roads and transit projects throughout the Commonwealth.

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istressed debt and distressed real estate have become commonplace since the advent of the Great Recession. Lenders and borrowers are finding that a Deed-In-Lieu of Foreclosure may provide significant advantages over the traditional foreclosure and collection process when a default and inability to repay exists.

Due diligence

Similar to the analysis facing buyers and sellers, the first step in evaluating whether to use a Deed-In-Lieu approach is to investigate the real estate. This includes: (i) a title search to determine what liens encumber the property (e.g., delinquent taxes, judgments, etc.); (ii) a Phase I Environmental Site Assessment to determine whether any environmental issues exist; (iii) a cur-

rent appraisal to determine market value of the property; (iv) a current rent roll and copies of leases; (v) estoppel certificates from parties such as tenants and franchise licensors; (vi) determining whether key permits and licenses needed to operate the property can be transferred or obtained; and (vii) the permitted uses of the property and the terms of all applicable easements, conditions, covenants and restrictions. Analyzing factors material to owning and operating the property will assist in evaluating market value and whether the lender should enter into the chain of title to the property. If there are no liens encumbering the property other than the lender’s deed of trust, or if other liens are relatively minor in amount such that a payoff of that lien would not change the business decisions materially, then the lender can feel comfortable that it can obtain title free and clear of liens just as if it was the successful bidder at a foreclosure sale. The obligors should anticipate such due diligence and assemble all pertinent information promptly.

Settlement agreement

This agreement typically (i) specifies the conditions for delivery and acceptance of a Deed-In-Lieu of Foreclosure, (ii) determines which party pays transaction costs, (iii) addresses whether the

obligors will receive a full or partial discharge of obligations related to the secured indebtedness, (iv) includes an acknowledgement that the income tax aspects of the transaction will be reported by the lender to the Internal Revenue Service, (v) provides key representations and warranties from the obligors to the lender and (vi) includes a full release in favor of the lender. Certain of these types of provisions specifically survive closing of the transaction and recordation of the Deed-In-Lieu.

Personal property

Most income producing real estate is comprised of real property and personal property. Personal property items generally include all of the furniture, fixtures and equipment utilized in the operation of the property. One of the obligors’ deliverables will be a bill of sale transferring title to all of the personal property. If there are tenants, then all of the original leases should be delivered to the lender and the property owner should sign and deliver an assignment of those leases to the lender. Security deposits should be turned over to the lender.

Advantages for obligors

The obligors obtain several material advantages utilizing a Deed-In-Lieu transaction. These include: (i) controlling the obligors’ ultimate exposure to the lender

When it’s information you need, we’ve got your number. For info on ANY property listed for sale, simply

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Call Brenda Reid, Managing Broker, 757-404-4113 16

MARCH/APRIL 2011

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or visit online newhomes.williamewood.com.

and a full or partial discharge from all liability on the secured indebtedness; (ii) the opportunity to manage the income tax exposure associated with the transaction and potential discharges of indebtedness; and (iii) minimizing the impact of the transaction on the reputation and creditworthiness of the obligors.

Advantages for lenders

Some key advantages of a Deed-InLieu transaction for a secured lender include: (i) the transaction can be significantly less expensive than a foreclosure; (ii) resolution of the obligors’ liabilities to the lender and accessing collateral value are achieved through business negotiations and a settlement agreement; (iii) the transaction can occur significantly faster than the typical foreclosure and collection process; and (iv) the real estate is transferred to the lender in a better overall condition, the likelihood of maintaining key employees and vendors is enhanced and the going concern value of the real estate is maximized.

Title insurance

A lender must decide whether to obtain an owner’s policy of title insurance rather than relying just on its loan policy of title insurance. Part of this analysis includes whether to release the lien of the deed of trust or keep the deed of trust in place and take title in an affiliated entity as a hedge against the possibility of needing to foreclose to distinguish unknown or unanticipated liens.

What’s the point?

Deed-In-Lieu transactions can present significant opportunities to obligors and lenders. A key consideration is whether there is sufficient confidence in the condition of and title to the property and in the integrity and character of the obligors. The advantages and disadvantages should be considered before commencing foreclosure. C. Grigsby Scifres is a partner in the Virginia Beach office of the law firm of Williams Mullen and is Tidewater Builders Association’s general counsel. This column features legal issues of interest to TBA’s members. For further information contact Scifres at (757) 473-5370 or gscifres@williamsmullen.com. MARCH/APRIL 2011

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ore than 25,000 visitors flocked to the Mid-Atlantic Home & Flower Show to say goodbye to Old Man Winter and hello to spring March 4-6 at the Virginia Beach Convention Center. They came to be inspired to fall in love with their homes – again — and vendors provided them with enough ideas to keep them spinning well into summer. The event, presented by Belgard Hardscapes, featured hundreds of exhibits for the home and garden, as well as expert speakers on topics ranging from gardening and mole hunting to feng shui and antique appraisals. Visitors were able to see firsthand innovative new products, including a Michael Phelps swim spa and induction cooking, as well as a canine stunt dog show and 11 lavish display gardens. New this year also was an increased emphasis on pre-show marketing via Facebook and Twitter. Thanks to the support and prize donations from vendors, the site successfully gained interaction from almost 300 fans in two weeks and more than 39,000 page views͘

So many visitors gathered in anticipation of learning how to rid their lawns of moles from The Mole Hunter, aka Jeff Holper, that it was standing room only for his “Terminator University.” 18

MARCH/APRIL 2011

Local swim team members took to Innovative Spas’ new Michael Phelps Swim Spa throughout the weekend to demonstrate the exercise potential of the spa.

The K9s In Flight trainers play monkey in the middle with this flying pooch while throwing a Frisbee above and below him.

From outdoor kitchens and storage sheds to water fountains and pergolas draped in fauna, Beach Groundworks Inc.’s “Courtyard Garden” had attendees stopping and staying for a while.

A big thanks to our show sponsors!

3HUKZJHWPUN (^HYK >PUULYZ Dr. Lori’s appraisal sessions were also learning lessons for many visitors. For example, did you know that artwork, more importantly paintings, are the items that most consistently appraise with the most value, such as this Salvador Dali sketch?

7LVWSL»Z *OVPJL (^HYK 2 + 9V\UK»Z 3HUKZJHWL :LY]PJLZ A constant stream of potential customers kept the folks at Jerry Harris Remodeling busy throughout the show. They reported great leads from people looking to make home improvements.

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Freeze models grab visitors’ attention as they enter the show.

Virginia Beach SPCA volunteer Amy Solares enjoys some time with Desmond, left and sleeping, and Trips, right, at the show. The SPCA brought some of their animals out to promote local adoptions.

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19

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eventeen Green Building Council member companies stepped forward and volunteered to take Mid-Atlantic Home & Flower Show visitors on a walkabout. Their mission: Help consumers learn how to reduce their carbon footprint by giving them the tools to make their homes more energy efficient.

How it worked

Visitors picked up their “passports” at the main entrance and had to have it signed at each participating vendor. When completed, they were eligible to win prizes from Green Building Council members, including: an iPad; 22-inch TV; a Kindle; a Kitchen Aid blender; programmable thermostat; Virginia Natural Gas energy saver kit; Columbia Gas of Virginia energy saver kit and a portable solar charger.

The outcome

“They were on the hunt for their freebie gifts,” said Richard Good of Solar Services. “We got a lot of good leads, but only about one or two from the walkabout.” However, for Victor Dzarnowski of FloorCrafters and Jeff Beals of Tidewater Insulators, the walkabout was more successful. “It was a smashing success,” said Dzarnowski. “About four out of 10 actually asked a question. From that point, we had a number of people we had really good conversations with and

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MARCH/APRIL 2011

Richard Good of Solar Services stamps WVECTV’s Green Building Council Walkabout passport. Flanagan was covering the walkabout for his “Going Green” news segment.

anticipate that some of them will lead to business.” “A lot of people seemed interested and asked a lot of questions,” said Beal. “It did get people looking at what you were doing because they had to ask to ask you to stamp their passport. I think it had value and people seemed to get into it.” A big thank you to Dominion Virginia Power for sponsoring the Walkabout, as well as the participating companies: Allen Loree Homes; American Insulation Service Inc.; B&T Kitchens; Crawl Space Systems; Columbia Gas of Virginia; DeBord Custom Homes Inc.; Dr. Energy Saver; EcoBuilders of Virginia LLC; EnergySmart; FloorCrafters; Geosolice Geothermal; Meadow Green Builders; Pella Windows and Doors; Pristine Pools; Solar Services; Tidewater Insulators and VSG Geothermal Inc. Walkabout winners were announced on Facebook.

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said Olivieri. “When they came to the site, they found two minor violations, which they were able to correct.”

Advocate: John Olivieri

Comment: “It was a good thing they went to that course because we would have been hit with more violations and fines,” said Olivieri. “Thanks to TBA, we were spared large fines and citations.”

Problem avoided: A few months ago, Olivieri sent two of his superin6SP]PLYP tendents to an OSHA class taught by OSHA inspector Rick Kennedy at Tidewater Builders Association. As fate would have it, Kennedy ended up at Olivieri’s site for an inspection.

Problem solved: A recent trip to obtain a building permit had Olivieri questioning a request for expensive stormwater calculations. Based on his site plans, he was told that he needed stormwater calculations due to new regulations, which would end up being quite costly for him.

Action taken: “Because my superintendent had been to the class, he had already taken precautions, had a safety plan in place and had all of the required safety equipment that Mr. Kennedy had taught at the course,”

calls, Builder Services learned that Olivieri had been misinformed. He was able to get his plan approved without the costly calculations. Comment: “When there is a problem, TBA goes to bat for you… Even if it’s once a year or twice a year, it still helps. It’s a good service. Even without calling Builder Services, there are a lot of services that I use on the website that save me a lot of headaches.” If you or your company has a building or development issue you would like help resolving or a question you need answered, please contact TBA’s Builder Services Specialist Patrice Kyle at 305-9015 or pkyle@tbaonline.org.

Action taken: Olivieri contacted Builder Services. After a few phone

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;YHKL ZOV^ THYRL[PUN Expert tips help turn your leads into profits

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t a time when businesses are reevaluating marketing measures and demanding a return on investment for every expense, how do you guarantee that your company will benefit from the next consumer show? A few simple steps on your end can completely change the outcome of your show, according to former home show producer and marketing expert Don Engebretson. “Generally, the biggest conceptual mistake (companies make) is that exhibitors think they are at the show to give – give away their information, to give away free answers and literature. It’s completely wrong and backwards,” said Engebretson. “You’re there to take – take action, take away concerns of the people and most importantly, to take away names.” Terry Garmond of JES agreed. “Don’t give the consumer too much information that you’ll scare them away,” he said at the Fall Homearama. “Instead, give the customer enough answers to get an appointment.” To accomplish this, there are four key areas to which a company should focus its attention: pre-show selling and planning; exhibiting a booth; selling skills and advanced follow-up.

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According to Engebretson, pre-show selling and marketing is the most under utilized strategy of trade-show selling. “It should start 30 days before the show and can be anywhere from free to costing some money for the exhibitor,” he said. “However, it will greatly increase your show outcome.” Some examples include: • Sending out pre-purchased tickets (VIP if possible) to prospects, current and former customers before the show. These can often be purchased from the show manager and can be discounted for bulk tickets. • Changing your advertising 10 days before the show, including the upcoming show information and your booth location. • Use Facebook, Twitter and your company website to promote your company’s participation at an upcoming show • Promote show specials

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For most people, the exhibit seen at the show is the first time they have ever seen a physical incarnation of your company or product. “More people will see your exhibit at the show than will ever walk into your office or showroom in the course of 10 years,” said Engebretson. In this case, “your 10x10 exhibit 22

MARCH/APRIL 2011

Chase Carroll of Sturdevant Construction demonstrates a FlexRoom screen, which is a non-scratchable and unbreakable window screen at his booth. “Having something eye catching” is a must, said Carroll. He uses the FlexRoom to get attention by punching his fist into the screen when showgoers pass.

needs to be up to the absolute highest quality of your 365-day showroom. Otherwise, you’re not putting your best foot forward. It all relates to the impression — whether subliminal, subconscious and conscious — that strikes the attendee.” The extent to which an exhibitor elevates his booth, also increases the level of his buyer. “One of the biggest mistakes people make is that they lose out at the high-end buyer,” said Engebretson. The following are some ways in which an exhibitor can elevate the look of the booth. • Have a complete backdrop. Don’t use nor should a customer be able to see the decorator drape of the exhibit hall. Instead, define your space with a professional, finished backdrop, which doesn’t have to cost a fortune. • Have a primary sign that at a glance tells your company name, exactly what you do and one benefit of using your product or service in 3 seconds. • Accessorize your exhibit. • Show your product by accessorizing it so that it appears as it would after purchase in use. Bring your product, if possible, and make sure it works. • If you’re a service company, meaning you don’t have a tangible, real product, create large photos that show the successful result of using your service, such as before and after photos.

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Now that you have the consumer’s attention, what do you do? First of all, “man your booth,� said Steve Causey of Causey Contracting, who exhibits regularily at TBA consumer shows. Then, skip the sales pitch, said Engebretson. They don’t work. “The No. 1 objection to polling the public about sales people is that sales people don’t listen,� he said. Instead, the salespeople lecture them and sales pitch them to death. The key to selling is to ask conversational, short, open-ended questions, which can’t be answered with yes or no. Then shut up and listen.�

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Now that you have the lead, it’s important to make sure you follow-up. Engebretson recommends what he calls the two-year pinpoint plan, which involves “direct mail, telephone and e-mail that keeps you following up intermittently with the prospective clients over an extended period of time.� After all, it could take a year or two before the customer decides to use your services.

How do you spot a serious buyer? 0[ÂťZ UV[ Q\Z[ ^VYKZ (J[PVUZ ^PSS HSLY[ [OL L_OPIP [VY [V [OL J\Z[VTLYZÂť [Y\L PU[LYLZ[ ¸-VY L_HTWSL H OVTLV^ULY JV\WSL PZ ^HSRPUN [OL HPZSL (Z [OL L_OPIP[VY ^H[JO [OLPY ILOH]PVY HZ [OL` HYL JVT PUN [V^HYKZ `V\Y IVV[O š ZHPK THYRL[ PUN L_WLY[ +VU ,UNLIYL[ZVU >OLU [OL` JVTL [V `V\Y IVV[O [OLYL HYL MV\Y HJ[PVUZ [OH[ ^PSS [LSS [OLPY PU[LU[PVUZ ;OL Ă„YZ[ [OPUN [OL` ^PSS SVVR H[ PZ `V\Y JVTWHU` ZPNU 0Z `V\Y ZPNU H WYVWLY ZLJVUK Y\SL ZPNU& ;OL ZLJVUK [OPUN [OL` ^PSS SVVR H[ PZ [OL ZHSLZ WLVWSL >OLYL HYL [OL ZHSLZ WLVWSL& ;OL [OPYK [OPUN PZ [OL IVV[O P[ZLSM VY [OL ZLJ VUKHY` ZPNU KPZWSH` ¡ H NLULYHS V]LY]PL^ VM [OL L_OPIP[ 0M [OL MV\Y[O [OPUN [OL` SVVR H[ PZ [OL UL_[ IVV[O HZZ\TPUN `V\Y IVV[O PZ WYVWLYS` KL ZPNULK [OL`Âť]L Q\Z[ [VSK `V\ [OL` HYL UV[ PU[LY LZ[LK PU `V\Y WYVK\J[ VY ZLY]PJL

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23

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JES Foundation Repair crew Guadalupe Rivera, business manager Adrian Reddington, Refugio Gonzalez, Eduardo Espinosa and Nabor Rivera (kneeling) stand in front of the completed ,_[YLTL 4HRLV]LY! /VTL ,KP[PVU house. The crew installed a drainage system around the home’s foundation.

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It took hundreds of volunteers and a few celebrities to turn the modest ranch house behind Lynnhaven Mall into a sprawling two-story home in one week. ABC’s Extreme Makeover: Home Edition surprised the Hill-Burdette family on Jan. 30, by announcing that their home was going to be demolished and rebuilt with the help of volunteers, Trademark Construction and the Extreme Makeover team.

About the show

ABC’s Extreme Makeover: Home Edition is a reality television show that renovates or builds homes for families in need. The show’s producers coordinate with a local builder, who then coordinates with local building companies and suppliers

to build the home. It’s then landscaped and the show’s celebrity crew customizes the home’s interior, all while the family is on vacation.

About the family

For more than 15 years, Beverly Hill has opened her home to more than 35 foster children, in addition to feeding and clothing the area’s homeless. After raising two biological children, Hill and Fred Burdette adopted six foster girls, ages 9 to 18 years old. The Hill-Burdettes have inspired their daughters to give back to the homeless community; however, faulty electrical wiring, a sagging ceiling, a crumbling floor and one working bathroom was making this difficult.

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TBA members lend a hand

In the midst of the build were several members of Tidewater Builders Association who stepped forward to help bring the home to fruition. For builder Edward Hewitt of Viridian Homes the challenge of seeing a home built in 106 hours was irresistible. “It was definitely a great experience and I would like to do it again,” said Hewitt, “but I would love to be involved more upfront with the scheduling, etc.” Hewitt, along with other volunteers, found that building a home in one week was not without its challenges. To meet the show’s aggressive production schedule, JES crew members worked into the wee hours of the morning installing an exterior drain tile around the home’s perimeter and tied that into an interior sump pump. “This experience has left a lasting impression and sense of pride for all of us that were involved,” said Adrian Reddington, JES’ business manager. “I have never before been part of something that involved so many different personalities where everybody was so cooperative and willing to help each other accomplish a common goal.” Freezing temperatures and rainy conditions also presented problems for the crew. The temperatures made it difficult to finish the drywall, as the cold conditions increased the time it took for the materials to cure. Finding skilled tradesman presented another challenge for the crew. Add to that having to work while other crews are in the same area and things can get a little chaotic. “It’s difficult to lay tile when people are walking on top of it,” Hewitt said. Despite the challenges, the home was finished and revealed to the family seven days after the other home was demolished. For Kathy Browning of Design Consultants, the build was not her first experience with the show, as she also volunteered with a North Carolina production. This time she served as the local design coordinator and helped the production staff contact area businesses and volunteers to bring the inside of the home to life. “It’s kind of like childbirth,” said Browning of the experience. “You kind of forget the pain. Once you get away from it and the camaraderie that I made overlapped all of the other

Bill Terry of Oceanside Building LLC worked on the ,_[YLTL 4HRLV]LY! /VTL ,KP[PVU build with TBA members Richard Taylor, Premier Plumbing, and Edward Hewitt, Viridian Homes.

Randy Stern of Virginia Natural Gas prepares to retire the old service and install a new one to the home. Edward Hewitt of Viridian Homes looks over plans during the build.

stuff…I’ve met some really good people and it ended up being a good lesson for me on a personal basis.” “There is definitely not enough emphasis on the volunteers and all of the work that they do,” said Hewitt. “I have a whole new respect for the volunteers who put in a lot of time. There were a lot of people who really stepped up. A lot of stuff goes into the house that doesn’t make it on the show.” The program is tentatively scheduled to air at 8 p.m. on ABC on Sunday, April 24.

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25

3PNO[Z JHTLYH HJ[PVU TBA members garner the national spotlight

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Joe Ricci works demolition with his CEO, aka trainee “Tom Kelley.” Water technician Jennifer Singer shares an emotional moment with Belfor CEO Sheldon Yellen after working in a tight crawlspace.

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ennifer Singer made her boss cry on national television. And he isn’t some mid-level manager — he’s the CEO of a billion-dollar company with 6,000 employees and 400 locations around the world. Singer, a water technician at Belfor, a disaster recovery company with local offices, unwittingly appeared with her coworker Joe Ricci in CBS’s Undercover Boss in January. The episode showed them training “Tom Kelly” as a new employee at Belfor. They believed they were videotaping a reality show judging the performance of a female trainee against that of a male contestant, who was actually company CEO Shelden Yellen. After “training” with Singer and talking to her about her job, Yellen became emotional and revealed his true identity – which wasn’t supposed to happen until weeks later at corporate headquarters. “I take for granted every day what I do. I go into crawlspaces. I get wet. I get dirty,” said Singer. “For him to be moved by what I do and how I do it and why I do it — it just absolutely put me to tears. I just can’t put it into words what it meant to be recognized by him. It was the most moving moment of my life.” Singer had actually called Yellen a “big baby” earlier — after spending a half-hour with him in a crawlspace. “He complained about laying in a puddle of water, about maybe a snake or a mouse under there. It’s wet. It’s tight. He groaned the entire time we were down there.” For his part, Ricci worked demolition with Yellen, giving him the task of removing a carcass skeleton of a rat. “I thought, ‘That’s a new guy job, yeah,’” said Ricci. Ricci and Yellen mostly talked about Ricci’s commitment to cub scouts and other community service projects. 26

MARCH/APRIL 2011

Belfor CEO Sheldon Yellen without the disguise. Belfor CEO Sheldon Yellen removes carpet with water technician Jennifer Singer on <UKLYJV]LY )VZZ, which airs at 9 p.m. every Sunday on CBS.

As is customary, at the end of the show both employees were among those rewarded for their work. Ricci received a cash award to help eliminate the need for doing so many side jobs, as well as a promotion to project manager. Singer got an overdue raise she expected when she was promoted a year earlier, put on hold due to a company-wide wage freeze. She also got another unexpected bonus — she gets to reignite her passion for teaching without leaving the company she is passionate about. She has recently begun a new job as a teaching assistant at Belfor because Yellen was impressed with her ability to teach him. “What I wanted to get out of it more than anything was the company exposure,” said Ricci, who began working at Belfor after the recession made it impossible for him to continue as a self-employed contractor. “It’s a solid company to work for.” Since the program aired, the company scheduled regular town hall meetings so Yellen can continue to engage with employees. It also announced it will re-examine its across-theboard wage-freeze policy.

;)(Z PUZ\YHUJL JVTWHU` VMMLYZ TVYL [V TLTILYZ Once upon a time, Tidewater We no longer limit our clientele to builders, remodelers Builders Association’s Board of Diand suppliers. We can now accept all business types. In fact, rectors created an insurance company our clients currently include a dentist office and a cemetery. that would provide coverage to home We are especially excited about our new line of multifamily builders in Virginia during good times general liability and property coverage that can be customized and bad. to meet the needs of each property owner. Some owners will )` 7H[[` 3L[JO^VY[O Their vision was to one day offer a like the option to bundle their coverage with renters insurance :[HMM =PJL 7YLZPKLU[ fully licensed property and casualty to help reduce their exposure to risk, and potentially their pre;)( 0UZ\YHUJL :LY]PJL company that can provide all lines of miums as well. Our insurance products are competitively priced and come commercial insurance to a broad spectrum of business types. with personalized customer service from the staff here at We are pleased to report that day has arrived. TBA. Some of you may recall that TBA started Building IndusSo, if you haven’t looked at whether we can cover your try Insurance Association as a self-insured workers compensaneeds lately, have your agent give us call tion program in 1999. A year later, we before you renew or visit www.biiaonlaunched a General Liability product ;)( TLTILYZ ^OV OH]L [OLPY HNLU[ line.com. when other carriers quit writing it or X\V[L H UL^ SPUL VM PUZ\YHUJL MVY [OLT dramatically increased premiums to Your patronage of BIIA helps to ILMVYL 4H` ^PSS YLJLP]L H residential contractors. support TBA and the advocacy it proNHZ JHYK *VU[HJ[ 1HUL 2HIHUH H[ Even then, we were laying the vides to the homebuilding industry. VY QRHIHUH'IPPHVUSPUL JVT We hope to hear from you soon. groundwork to become the full-service MVY TVYL PUMVYTH[PVU company that we are today.

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27

2011 Charity Golf TournamenT TUES., JUNE 14 AT SEWELL’S POINT GOLF COURSE

ALL PROCEEDS go to TBA’s Building Trades Academy, a 501c-3 nonprofit job training program that has helped more than 4,500 economically disadvantaged, at-risk men and women build better lives for themselves and their children. The academy facilitates promising careers in building and facility maintenance trades, provides counseling and life skills instruction and benefits the community through hands on renovation, remodeling and construction projects.

TOURNAMENT registration starts at 11 a.m. and tee time is at noon. The style will be Florida Best Ball. NO BLUE JEANS. Refreshments and dinner will be provided. Awards given for first and second place teams for two flights. All payments must be received before the tournament. No rain date.

PLAYERS COST: $150 per player; add $25 per player for value package (includes 1 mulligan, 1 ladies aid, 1 throw & 2 raffle tickets – V.P. can only be used for scoring purposes – only one V.P. per player) PAY NOW and your package will be ready for pick up at tournament registration. Check box before name to sign up for Value Package. Q

NAME #1: ______________________________________________________

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NAME #2: _____________________________________________________

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Q

NAME #4: _____________________________________________________

SPONSORSHIP GOLF CARTS: $1,500 – BEVERAGES: $750 – DINNER: $500 – SCORE BOARD: $500 – EXCLUSIVE HOLE (set up a hole station with your staff, giveaways, signage, etc.): $500 – HOLE (signage): $350 – PRIZE (cash donation with recognition on rules sheet) COMPANY NAME (for signage): _____________________________________

TYPE OF SPONSORSHIP: ___________________________________________

PAYMENT

$_______________ + $_______________ + $_______________ = _______________ total player cost CHECK ONE:

Q

VISA

total value packages

Q

MASTERCARD

Q

AMERICAN EXPRESS

CARD #: ___________________________________

CONTACT INFO.

sponsorship

Q

TOTAL

CHECK ENCLOSED (payable to Building Trades Academy)

SIGNATURE: _______________________________

EXP. DATE: _____________

CRV: ___________

COMPANY: _____________________________________________________________________________________________________

CONTACT PERSON: ______________________________________________________________________________________________________________________ EMAIL: ____________________________________

PHONE: ___________________________________

FAX: _____________________________________

RESERVE your space in the tournament. Mail or fax (757-965-6586) this form with your payment info to: 28

Building Trades Academy; Attn.: Shannon; 2117 Smith Ave.; Chesapeake, VA 23320. For more information call 420-2566. ext. 234 or e-mail spfeiffer@tbaonline.org.

MARCH/APRIL 2011

( SVVR H[ [OL 5\TILYZ¯ 0XOWLIDPLO\ 7RS More than 470 conventional apartment communities with more than 50 units were surveyed, representing 92,000 apartment units.

The top 10 management companies were: S.L. Nusbaum

9.5%

Great Atlantic

8.2 %

Drucker & Falk

5.5%

Lawson Cos.

5.1%

Breeden Management

3.5%

WMCI

2.7%

Kotarides Cos.

2.5%

Ripley-Heatwole

2.1%

Harbor Group

2.1%

Perrel Management

2.0%

Source: Real Data

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Residential permits were up 6.7% over 2009. Closings were down 13.1%. The average price for a new construction home was $319,896, a slight decline of .56%.

Top New Home Communities (Ranked by closings)* Community

Builder

1. Brighton Park, Ches 2. Sajo Farm, VB

Dragas Companies Terry•Peterson Res. & Napolitano Ent. Dragas Companies HAV Inc. & HBD Build Various Various Various Pace Constr. And Dev Chesapeake Homes Beco Homes Ashdon Builders Various Terry•Peterson Res.

3. Southmoor, VB 4. Sherwood Lakes, VB 5. Culpepper Landing, Ches. 6. Woodbridge Point, VB 7. East Beach, Norfolk 8. Grassland Farms, VB 9. Parkside, Suffolk 9. Harbour Breeze Estates, Ches. 10. Heritage Park, VB 10. Hampton Roads Crossing, Suffolk * Includes Southside only.

No.

Ave. Price

71 60

$207,549 $400,295

55 42 33 33 32 29 27

$176,602 $425,940 $339,961 $383,148 $558,127 $314,800 $329,380

27 26 26

$285,792 $571,805 $232,426

Source: Residential Databank

MARCH/APRIL 2011

29

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;

idewater Builders Association’s Fall Homearama is returning to The Riverfront at Harbour View. The resort-style community, developed by East West Communities, last hosted Homearama in 2001, when it drew more than 100,000 visitors. This year’s showcase event is set for Oct. 15-30 and will feature eight to 13 homes, with prices expected to start in the low $500,000s. “We feel extremely fortunate to work with East West Communities on another first-class event,� said TBA President Bill Halprin. “Their communities are known for their beautiful landscaping and upscale curb appeal, as well as the resort lifestyle they offer. They created a beautiful setting for our first Spring Homearama at Founders Pointe last year and we know we can expect even more of the same at The Riverfront.� The Homearama homes will all face a large center island park, over an acre in size, which provides scenic views from every front porch, and the perfect place for children to play and neighbors to gather.

About the community

The Riverfront is home to about 1,000 families, who enjoy the peaceful waterways and scenic views of the Nansemond and James rivers. The community is conveniently located in the midst of the shops, restaurants, grocery stores, a movie theater and health and wellness facilities of Harbour View. Additionally, it’s just 15 minutes from downtown Norfolk and is centrally located to the Southside and the Peninsula. The community also offers a long list of amenities.

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Available in many sizes to meet your needs.

We deliver & pick up Load at your convenience Short or long term storage

Roll-off containers for easy removal Heavy/industrial Light/residential Many sizes available

STORAGE

WASTE REMOVAL

BOXX SYSTEMS is a locally owned and operated company serving both commercial and residential customers throughout Hampton Roads. Take the hassle out of waste removal – new construction or renovations. Enjoy the ease of onsite roll-off containers available in four convenient sizes and mobile storage units. 30

MARCH/APRIL 2011

Call us today for your storage or waste removal needs: 757-465-2699 or go to www.465boxx.com

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31

4ȐȹǾȐɑɕȣȨɉ ȹǸɜɜȐɑɕ Verizon Wireless program expands eligibility

The Verizon Wireless discount program has expanded its eligibility requirements to include members that provide products and services to the building industry. Previously, the program was open only to builder and contractor members. The savings available through this program include: • A 22 percent corporate discount on calling plans of $34.99 and higher; • An 18 percent employee discount on calling plans of $34.99 and higher; • A 25 percent accessory discount; • A $20 unlimited corporate line data fee (standard pricing is $44.99); and • A 22 percent discount on corporate broadband access.

To be eligible for the discount, companies must be TBA members in good standing and be involved in home building, remodeling, a subcontractor trade such as plumbing, HVAC, electrical, etc., or a supplier of industry products and services. The discount is only applicable to companies that have five or more lines. Signing up for the program is easy. Before you go online to register, e-mail Verizon Wireless representative Denise Sepulveda at denise.sepulveda@verizonewireless.com so you can be prequalified. Once you are prequalified, you will receive step-by-step instructions on registering for the discount program. For more information or assistance, contact Sepulveda at (804) 240-4977 or Stacey Turner, TBA membership director, at (757) 305-9042.

Benefits to bank on

As a TBA member, you’re eligible for many benefits, including discounts on wireless service, a rebate program, a $500 GM discount and much more. For detailed information about any of these benefits, visit www.tbaonline.org or call Stacey Turner in the membership marketing division at 305-9042. Let us help you bank on the benefits you earn as a TBA member — benefits that will more than cover the cost of your annual dues.

Did you know . . .? •

•

• •

Keep TBA in the loop

If you’ve changed location, phone number or e-mail address, please let us know. It’s as easy as visiting www.tbaonline.org, clicking on Members and then on Update Your Information. Or you can call Stacey Turner at 305-9042 or email her at sturner@tbaonline.org. We’d also like to know if you’ve added new lines of business so we can make sure your company is listed correctly in our online Find A Member section, which receives about 1,500 visitors each month. In addition to your company’s primary contact, (usually the owner, president or general manager), you may include up to six employees whom you would like to receive information from TBA. Please help us keep those names current, too, by letting us know if employees leave your company or new ones come on board. By filling out this form and e-mailing it or faxing it to Stacey Turner (sturner@tbaonline.org or 424-5954) you can ensure that the information we have on file for you is accurate.

•

•

•

Company name ________________________________________________________ Owner/manager/principal _______________________________________________ Address ______________________________________________________________ Phone _________________________

e-mail address ________________________

Additional representatives (with e-mail addresses) ______________________________ Type of business _______________________________________________________

32

MARCH/APRIL 2011

•

When you join Tidewater Builders Association, you automatically become a member of the Home Builders Association of Virginia and the National Association of Home Builders? TBA members are encouraged to use the “TBA member” logo on their signs and marketing materials? You can pay your annual membership dues in three monthly payments? FedEx offers members a shipping discount of up to 70 percent on freight and 29 percent on express services? If you recruit a new member into TBA and have not done so before, you will receive a $35 gas card from Bonded Builders Warranty program? More than 30 national manufacturers participate in the Member Rebate Program, helping builder and remodeler members recoup hundreds of dollars each quarter by simply filing a rebate form? The National Association of Home Builders has launched its Winning Hand membership campaign, an effort that TBA and the state association will be joining this April and May? When your membership anniversary date rolls around, you have 60 days in which to pay your membership dues before your company becomes an inactive member? Once you’re inactive, you’ll no longer be listed in the Find A Member section of the TBA website or receive mail or e-mail from TBA.

LȣɄɉ PǸȵȰ Scott named Rookie Salesperson of Year

Julie Scott of Rose & Womble Realty Co.’s New Homes Division was named gold award winner for Scott Rookie Salesperson of the Year at The NAHB National Sales and Marketing Awards gala. Scott has served as site manager for Hampton Roads Crossing in Suffolk since May 2009. From September 2009 through September 2010, she accounted for 35 net sales resulting in a sold volume of $9.52 million.

Gearhart joins Rose & Womble Realty

Terry Gearhart, a 31year veteran of the home building industry, has joined the Rose & Womble Realty New Homes Division as director of training Gearhart and business development. Gearhart, who has a marketing degree from Penn State University, has worked in every aspect of the industry with a focus on sales and marketing management. Rose and Womble Realty Co. is headquartered in Virginia Beach. For more information about Rose & Womble Realty Co., visit www.roseandwomble.com.

MSA P.C. projects receive design awards

The Virginia Beach Planning Commission honored two projects that MSA PC consulted on during its annual Design Awards Program. The program recognizes creative and innovative development solutions for projects involving the built environment. • Honor Award: Sherwood Lakes for Exceptional Residential Development • Honor Award: Virginia Beach Middle School for Exceptional Sustainable Development MSA P.C. is a regional consulting firm headquartered in Virginia Beach. For more information, visitwww.msaonline.com.

JES employees earn pesticide certifications

JES business manager Adrian Reddington and co-owner and operator of JES Stella Waltz earned their Certified Commercial Pesticide Applicators designation from the Virginia Department of Agriculture and Consumer Services. JES foreman Bobby Athey and JES service technician Keith Snyder also earned their Registered Pesticide Technicians Certification from the Virginia Department of Agriculture and Consumer Services. JES is an engineering solutions company specializing in foundation repair, basement waterproofing and crawlspace moisture control. For more information, visit www.jeswork.com.

Reddington

Waltz

Athey

Snyder

(continued on page 35)

Sasser named to TowneBank’s board

Eric Sasser has been appointed to the Portsmouth/Suffolk Board of Directors for TowneBank. Sasser President of Sasser Construction LC, Sasser has been in the residential construction business since 1986 and also serves on TBA’s Board of Directors. His company has received numerous awards, including the Southern Living Builder of the Year, the 2008 Portsmouth Small Business of the Year and Builder Magazine’s 2008 Pacesetter Award for Customer Services. MARCH/APRIL 2011

33

ȨČ? ɉȨČƒ

Dennis Graf, TBA secretary and president of Graf Construction, took home $59 from BIIA Insurance at the first quarter TBA breakfast forum. BIIA was on hand to promote its new coverage.

Spring Homearama builder Robert Letchworth of RML Corp. toured the cryogenic wind tunnel at NASA Langley Research Center. Letchworth will be incorporating NASA technologies into his theme home at this year’s show, set for May 28-June 12, at Eagle’s Nest.

Norfolk Mayor Paul Fraim speaks to the TBA Board of Directors at its February meeting about the transit oriented development opportunities that will come when light rail becomes operational. Molly Dryden Mason presented Fair Housing Seminar on Feb. 28, to another packed TBA boardroom.

Advertisers’ Index

Chuck Bajnai, Chesterfield County Chief of Residential Plan Review, and Brian Foley, Fairfax County Chief Structural Engineer, (pictured), present wall bracing methods for residential construction on Feb. 24 in the TBA boardroom. 34

MARCH/APRIL 2011

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*OPULZL KY`^HSS (continued from page 13) fective and should not have been used. The parties disagree as to whether the drywall was legally defective, however. Standards set by ASTM International (formerly American Society for Testing and Materials), which are incorporated into the Virginia Uniform Statewide Building Code, do not specify the precise chemical composition of gypsum drywall, except to say that it is to be “essentially gypsum.� Otherwise, all physical testing of the drywall, specified by ASTM, seems to reveal a product that meets ASTM standards. The drywall was not labeled; however, as a product that meets standard ASTM C36, or the revised standard ASTM C1396. Without such labeling, there is a question as to whether the drywall could be used. The courts as of have not decided this issue yet.

Bringing manufacturers into litigation

Homeowners have been focusing their efforts lately on bringing the Chinese manufacturers into the U.S. litigation. This effort has largely been controlled by a national group of lawyers who are pursuing multiple class-action lawsuits, handled together in a Federal “multidistrict litigation� called In Re: Chinese Manufactured Drywall Products Liability Litigation (MDL No. 2047) in the United States District Court for the Eastern District of Louisiana. I will be among a group of lawyers from all over the country who will be traveling to Hong Kong in April to take sworn statements from representatives of Chinese manufacturers in an effort to establish legal jurisdiction over them in the U.S. and Virginia courts. At this point, it’s unclear how the problem with Chinese drywall will be resolved. A different manufacturer has recently begun resolving claims in the Gulf region through a mass remediation process. It’s still too early to tell whether this will work and whether the Chinese manufacturer of drywall sold in Virginia will engage in similar efforts here.

(continued from page 33) In the coming months, local Federal courts will likely decide whether insurance policies issued in Virginia provide coverage for claims made by homeowners, builders, developers, installers, brokers and suppliers. This decision will have a big impact on the way these claims are handled locally. J. Brian Slaughter practices law at McKenry, Dancigers, Dawson & Lake, P.C., where he is a shareholder. He represents 17 builders and developers in the “Chinese drywall� litigation, in more than 120 lawsuits in the courts of the Commonwealth of Virginia, and before the Chinese Manufactured Drywall Products Liability Litigation, pending in the United States District Court for the Eastern District of Louisiana. He may be reached at (757) 461-2500 or jbslaughter@va-law.org. More information is also available at www.va-law.org.

Browning receives her MIRM designation

Kathy G. Browning, owner and principal designer of Design Consultants, was inducted as a Master Browning of Residential Marketing (MIRM) of the National Association of Home Builders Institute of Residential Marketing (IRM). Browning earned her MIRM designation through a combination of professional education and experience. IRM is a professional organization whose purpose is to recognize and promote professionalism, education and ethics in the new-home sales and marketing field.

To submit items for Shop Talk, please e-mail The Tidewater Builder editor Sara Steil at ssteil@tbaonline.org or fax it to her at (757) 420-5539.

TBA MEMBER PRODUCT & SERVICE DIRECTORY

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When you need service, do business with these TBA members:

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MARCH/APRIL 2011

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The companies listed here have joined TBA or renewed their membership in January and February 2011.

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