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Fall Homearama is here! Details on the builders, homes, Preview Party and more inside
St. Mary’s mermaid celebrates Charity House &RGH FKDQJHV DUH KHDGHG \RXU ZD\
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Vol. 57, Number 5 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. 2010 OFFICERS: William H. Halprin, president; James E. Jackson, associate vice president; S.L. “Sam� Cohen, treasurer; John S. Schoch Jr., secretary, Steven E. Lawson, appointee; Dennis M. Graf, appointee; Pete A. Kotarides, immediate past president 2010 BUILDER DIRECTORS: Richard L. “Tuck� Bowie, Scott G. Brooker, Christopher J. Ettel, Dennis M. Graf, Pete O. Kotarides, Steven E. Lawson, Lucky C. Peterson, Stephen B. Quick IV 2010 ASSOCIATE DIRECTORS: G. Robert Aston Jr., Robert M. Boyd, J. Gregory Dodd, Thomas W. Dye, Scott M. Gandy, Gary T. McCollum, Brenda K. Reid, 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., The Honorable Owen B. Pickett, 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, Sharon Freeman Production coordinator . . . . . . . . . . . . .Stella Council Adviser . . . . . . . . . . . . . . . . . . . . . . Sandra Amidon Graphic Artist . . . . . . . . . . . . . . . . . . .Diane Trumbull Copyright: 2010; 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.
pgs. 5-10 Homearama’s return to East Beach brings a renewal of coastal living and attention to architectural details. Find out what you need to know about the showcase event.
Features 7KH KRXVH WKDW 6FRWW EXLOW
First-time Homearama builder Scott Crumley sees his Charity House come alive at its dedication ceremony.
7KH UHFHVVLRQ 3DVW SUHVHQW DQG IXWXUH NAHB chief economist Dr. David Crowe gives TBA members a look at the next few months and years and what it means for the housing market.
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Multifamily housing community honors the industry’s best at the annual Associates’ Showcase, Awards Banquet and RAM graduation.
Departments 2
President’s Pen
26
Membership Matters
4
Events Calendar
28
Shades of Green
Headliners
31
News 2 Use
16
Builder Services
33
Shop Talk
20
Counsel’s Insights
36
Advertisers’ Index
$ERXW WKH FRYHU Three residents of St. Mary’s Home for Disabled Children left their handprints on a mermaid sculpture by artist MarieAnn Messina at the Charity House dedication in August. The mermaid is Norfolk’s symbol for “Life. Celebrated Daily.� Photo courtesy of Chris Crumley. SEPTEMBER/OCTOBER 2010
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Putting the membership survey results to work
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s I look to what’s in store for our association in the year ahead, I feel fortunate to have been asked to continue my term as president while we usher in another restructuring of our priorities and programs. We are making a concerted effort to better meet the needs of our members by responding to what you told us in the recent membership survey. During May and June, we conducted an extensive survey of current members and former members who have dropped during the past two years. The response was amazing – 560 companies chose to participate from the 1,325 of those invited, an amazing 42 percent response rate. Of those, 170 were builders and 390 were associate members. Congratulations to Terran Jones of Socom Inc., who won the drawing for the iPad. Past Presidents Bob Widener, chair, and Pete Kotarides, vice chair, are leading a committee charged with analyzing these results and how to best restructure our services to meet the needs created by the new economic environment.
Top services from TBA
It was interesting to note that BOTH builders and associate members ranked the same services in their Top 10 list of what is most important: These were: • Monitoring city council and planning commission agendas for issues concerning the building industry; • Advocacy on city land use plans, ordinances, proposed actions and capital improvement plans; • Staff to help members with difficulty with local or state agencies, utility or franchise utility; • Local educational seminars; • Promoting legislation favorable to the industry at the state, local and national levels; • Enhancing the local building industry’s image with legislators and local elected officials; • Providing members with contact information and links for municipal building permits, plans review and inspections; • Enhancing the local building industry’s image with prospective home buyers and the community at-large; • Certification courses; and • Training events to help you market or operate your business.
Proposed additional services
Although in some cases, there were as many opinions as there were respondents, there were some clear themes to emerge from the survey results: 2
SEPTEMBER/OCTOBER 2010
More educational and training programs: This year, we offered green building professional and lead paint certification training programs in addition to the builder breakfast forums. We also opened our most recent builder breakfast forum to associates so everyone could hear the NAHB economist’s forecast, which is recapped on page 15. We need to find ways to bring relevant topics to our members for little or no cost. Additional networking opportunities: There was a wide variety of opinion on what kind of networking opportunities would get support from the membership. This year, we have tested the concept of a no-cost “mingle” event hosted at member companies. Based on low attendance, it’s apparent these “manufactured gatherings” are not meeting member needs, and we are looking to combine educational and networking events. Encourage members to do business with members: Many companies join TBA because they see a pool of potential customers among the members and they are disappointed when new business doesn’t readily materialize. We need to look for ways to create opportunities for these business transactions to occur. Be on the forefront of building green: There’s no turning back from the demand for energy efficiency and sustainable products. Educational programs for members and consumers will play a role on this front. Communicate member benefits: Several of the respondents were not aware of the wide range of services offered through TBA, the Home Builders Association of Virginia and the National Association of Home Builders. These include cost-saving discounts and rebates from national companies. We have added a membership page to each issue of The Tidewater Builder and will look for other ways to get out the word. We’re looking forward to hearing recommendations from the restructuring task force in the coming weeks and months, and we hope each of you will renew your commitment to the association as we renew our commitment to you. William H. Halprin P.S. By the way, our second Homearama of the year is just around the corner. This is the chance for the industry to enhance our image with prospective home buyers and the community. I hope to see you all there!
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Č?ǸȇȾȨȽČ?É‘É• Officials to discuss IRC changes at forum
Mark your calendar! The next TBA Breakfast Forum will take place on Thursday, Nov. 18, at 7:30 a.m. in the TBA boardroom. Local code officials will review the 2009 IRC, which will be adopted in Virginia later this year. The forum is FREE to TBA members. Please RSVP to Stacey Turner at 305-9042 or sturner@tbaonline.org by Friday, Nov. 12.
TBA installation slated for Dec. 3
7%$ &DOHQGDU Long-term care insurance can be a valuable benefit
Learn about long-term care insurance and its value as an employee benefit at a free program hosted by TFA Benefits/The Sachs Group at 2:30 p.m., Tuesday, Nov. 9, at TBA. Sally Kocen, an investment adviser with a wealth of experience in longterm care insurance, will be the guest speaker. Please RSVP to Stacey Turner at 305-9042 or sturner@tbaonline.org by Thursday, Nov. 4.
Mark your calendar for Friday, Dec. 3, as Tidewater Builders Association kicks off a new year with the installation of its 2011 officers and directors. The lunchtime event will be held at the Marriott Norfolk Waterside, where 2010 TBA President Bill Halprin will be installed for a second term. Look for more information in upcoming issues of Nuts & Bolts and The Tidewater Builder. Or contact Stacey Turner, membership and member services director, at 305-9042 or sturner@tbaonline.org.
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Inspiring. Enchanting. Life changing. It’s Fall Homearama. )` :HYH :[LPS
Join us at Tidewater Builders Association’s 30th Homearama, as some of the area’s most talented builders return to Norfolk’s East Beach. Since hosting Homearama in 2004, East Beach is now home to more than 240 families. The showcase will feature nine homes by eight builders, as well as The Villas at East Beach, luxury condominiums that overlook the adjacent marinas. It’s TBA’s annual “buy nowâ€? campaign designed to stimulate interest in housing in all price ranges. So far, five of the homes have sold and with the homes starting at $500,000, they are sure to go fast. Make sure you mark your calendars for these can’t-miss Homearama events: • Oct. 18: Military Appreciation Day, buy one, get one free admission with a valid military identification card. • Oct. 20: Realtors Day, sponsored by TowneBank, area realtors are admitted free with a business card and ID. Early birds enjoy breakfast from 9:30-11 a.m. • Oct. 24 and Oct. 31: Kids-aRama, staff from St. Mary’s Home for Disabled Children will host children’s games and activities from 1-4 p.m.
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The details:
Oct. 16-31, 2010 Noon-9 p.m. Sun.-Thurs.; noon-10 p.m. Fri. and Sat.
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$10 general admission at gate In advance at TBA: $8 for TBA members $6 for TBA member who purchase 20 plus tickets $5 for TBA members who purchase 50 plus tickets
More information: www.homearama.tv
â&#x20AC;˘ Oct. 25: A Taste of Norfolk, sponsored by Virginia Natural Gas and Hampton Roads Magazine, guests are invited to sample cuisine from Norfolk restaurants and vote for their favorite from 6-8 p.m. â&#x20AC;˘ Oct. 26: Motherâ&#x20AC;&#x2122;s Day Out, gates open early at 10 a.m.
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Builders, developers: Focus on design at free Homearama forum Todayâ&#x20AC;&#x2122;s buyers are looking for modern features in traditional designs. Find out how to set your homes and communities apart from the rest at a special forum from 10 a.m. to noon Saturday, Oct. 16, at the East Beach Bay Front Club. The event, coordinated by East Beach Co. LLC and TBA, is for builders, architects and developers. Nationally recognized architects
will discuss topics that span from pedestrian-friendly architecture and development to design for smaller and more sustainable homes. The forum coincides with opening day of Fall Homearama at East Beach and includes a tour of the homes afterward. The event is free, but space is limited to the first 60 registrants. RSVP to Stacey Turner, at 305-9042 or sturner@ tbaonline.org.
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HOUSE 1
Tribute to the Armed Forces
2,483 square feet, 3 bedrooms, 2½ baths, with unfinished carriage house
Twin Oaks 2,250 square feet, 3 bedrooms, 3½ baths Built by Chris Kanter of North Shore Construction Co.
The Little Pink Cottage
HOUSE 3
HOUSE 2
Built by Jimmy Richardson and Edward Hewitt of Richardson/Viridian Homes
3,340 square feet, 3 bedrooms, 2½ baths, includes carriage house with 1 bedroom, 1bath
The Live Oak Cottage THE NORFOLK HOUSE
2,247 square feet, 3 bedrooms, 2½ baths, with unfinished carriage house Built by Bill Brice and Les Ore of Bill Ore LLC
HOUSE 5
HOUSE 4
Built by John W. “Chip” Iuliano of ABT Custom Homes
6
SEPTEMBER/OCTOBER 2010
The Villas at East Beach 1,500 square feet to 3,000 square feet, two- and three-bedroom floor plans available, minimum 2 baths
2,931 square feet, 4 bedrooms, 4½ baths, plus carriage house with 1 bedroom, 1 bath Built by Howard, Mary-Dolph and Page Simpson of Simpson Builders Inc.
CHARITY HOUSE TO BENEFIT ST. MARY’S HOME FOR DISABLED CHILDREN
2,864 square feet, 4 bedrooms, 3½ baths, size includes room over garage Built by Scott Crumley of Crumley Group Inc.
Nicole Kathleen 3,000 square feet, 4 bedrooms, 3 baths, size includes carriage house apartment Built by Larry Hill of L.R. Hill Custom Builders
THE IDEA HOUSE
2,472 square feet, 3 bedrooms, 2½ baths Built by Alex, Steve and Stephen Quick of Stephen Alexander Homes and Neighborhoods
Oktoberfest Haus CELEBRATING NORFOLK’S SISTER CITY IN WILHELMSHAVEN, GERMANY
2,931 square feet, 3 bedrooms, 2½ baths, plus carriage house with 1 bedroom, 1bath Built by Howard, Mary-Dolph and Page Simpson of Simpson Builders Inc.
HOUSE 10
HOUSE 9
Blue River Cottage
HOUSE 8
HOUSE 7
The St. Mary
HOUSE 6
Family Tides
CELEBRATING TODAY’S MODERN FAMILY
SEPTEMBER/OCTOBER 2010
7
Photos courtesy Chris Crumley.
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Homes built on inspiration Builders hope feature homes will inspire visitors
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A Tribute to the Armed Forces
Builders Jimmy Richardson and Edward Hewitt of Richardson/Viridian Homes pay tribute to Hampton Roads’ military personnel. Hewitt, a former Marine, and Richardson, the son of a Navy man, dedicated their home, A Tribute to the Armed Forces, to the men and women who sacrifice for their country. The home will feature subtle tributes, such as a wood inlay of a nautical star in the foyer and the memorabilia throughout the home, like flags and uniforms used overseas. Hewitt and Richardson hope visitors will see how proud the men are of the Armed Forces. “It’s really the reason we’re doing the house,” said Richardson. “I think people really are sacrificing a lot being in the military … We’re doing the house to show how proud we are of those in the Armed Forces.”
The Live Oak Cottage: The Norfolk House
Journey through the city of Norfolk at The Live Oak Cottage: The Norfolk House by Bill Ore LLC. Celebrating the city’s diverse history, the home features a look into the Norfolk’s past through memorabilia from the Ocean View museum, which will explore the Ocean View Park and Ocean View community, as well as memorabilia that shows how downtown Norfolk has developed into a booming attraction. Jump forward to present Norfolk as you walk through a student’s room and see the pendants, letter jackets and books that she will be using in a Norfolk public school. Celebrate life lived daily outside in the mermaid statue on display that honors those battling breast cancer. Norfolk native Lawrence Hollingsworth also is showing how life is lived through his artwork, which is also on display.
Family Tides: Celebrating today’s modern family
Before East Beach was a reality, Simpson Builders was constructing a home for a budding family with two children and expecting a third. The home was designed to suit the needs of a growing family. Ten years later, they are continuing the tradition and 10
SEPTEMBER/OCTOBER 2010
building another home for the family. Just as the tides change with time, so do a family’s needs. The home features a custom design for a family with three pre-teenagers. Each child has his or her private space. The second floor features a bedroom for the eldest and a hangout area equipped with homework stations for each child. The first floor features a master suite at the rear while the other bedrooms are at the front of the home.
Blue River Cottage: The Idea House
For today’s fast-paced family, the key to a successful day is efficiency and organization. Thanks to the Blue River Cottage: Idea House by Stephen Alexander Homes and Neighborhoods, families visiting Homearama will learn how to make their homes more livable. Inspired by historic homes, the house is an ultra efficient, sustainable and affordable home that lives like its larger cousins. The builders have taken a typical home’s wasted space and located it where it can be used everyday. Abundant storage solutions and attention to detail will have visitors feeling inspired to make their homes more efficient. The combination of the home’s energy-efficient building techniques, as well as its Energy Genie energy management system, will save the homeowner money on utilities.
The Oktoberfest Haus: Celebrating Norfolk’s Sister City in Wilhelmshaven, Germany
Taste old-world Germany without taking a trip in time at The Oktoberfest Haus: Celebrating Norfolk’s Sister City in Wilhelmshaven, Germany. Simpson Builders Inc. is celebrating Norfolk’s sister city of Wilhelmshaven, Germany, which became Norfolk’s sister city in 1976. Located on the North Sea, Wilhelmshaven is a port city much like the city of Norfolk. Similar to the homeowner’s seaside hometown, the beach cottage is a marriage of heritage and new beginnings, which can be seen in the combination of family antiques and new décor from Exotic Home. The home also will celebrate Wilhelmshaven through pictures and video from the port city.
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New IRC means changes in energy-efficiency requirements for builders The 2009 edition of the International Residential Code (IRC) will be effective very soon. The book is a quarter inch thicker and contains 200 pages more of code language than the 2006 )` 3`UU edition. Changes in the <UKLY^VVK code are spread throughout the book and include architectural, structural, plumbing, mechanical and electrical provisions.
Changes in energy-saving provisions
However, the most significant changes that will affect builders are the energy-efficiency provisions. What
had been the standard for a green home will become the minimum code requirement. Building tightness will increase and will be tested with a blower door test, unless an extensive visual, air barrier and insulation inspection is performed by the city (or county) inspector. Heating and cooling ductwork must be sealed to prevent loss of energy. However, through changes to the Uniform Statewide Building Code (USBC), a test will not be required to verify the tightness. Yet for now, a qualified installer will be able to self-certify where it is installed. A programmable thermostat is now required in homes with a forced-air
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SEPTEMBER/OCTOBER 2010
furnace. Half of all lights must be the high efficiency type. In Virginia, the thermal resistance for windows also changed and now must have a maximum Âľ value of .35. Thatâ&#x20AC;&#x2122;s a 12 percent increase in thermal performance! The good news is even though the standard is higher, most available window assemblies already comply. None of us really knows what the future holds for energy-efficient standards, but the Cap â&#x20AC;&#x2DC;n Trade bill asks for a 50 percent increase in energy efficiency in the 2012 code and the Department of Energy (DOE) wants a net-zero energy home by 2020!
Other notable changes
There are other changes that are noteworthy. These include a new term in the code: Habitable attics. This prevents a living area in usable attics above the highest story from being considered a story. Because of the change, a threestory home could have a fourth level and still use the IRC and not require special consideration. For those in high wind regions (above 110 mph) a new standard is available; the ICC 600. Carbon monoxide detectors will now be required in homes and a fire extinguisher will be required in the kitchen. The Home Builders Association of Virginia put this initiative forward. Precast concrete foundation walls are now prescriptive and do not require special engineering. Structural insulated panels (SIPs) are now considered prescriptive in the code and not an alternative material. Shear wall design is new and improved and more usable than before. Virginia proposed these changes that were approved in the 2012 and are now in the USBC!
While these are still somewhat complex they allow greater design flexibility. Plumbers now even have a standard for inspection of a shower liner. Gray water systems were moved from the appendix and rainwater systems were added to the body of the code to encourage their use. Pipe in these systems must now be purple. For mechanical subcontractors, makeup air is now required for kitchen exhaust hoods greater than 400 cfm. The maximum length of appliance connectors has increased from three feet to six feet. For electricians, an intersystem bonding termination block is new. Arc fault circuit interrupters will still only be required in bedrooms, but tamperresistant receptacles will be required throughout the house. Increased bonding of steel in concrete around swimming pools is now required. A circuit breaker panel cannot be located in a wall along a stair.
Learn more about the code changes Lynn Underwood and other local code officials will discuss the new 2009 IRC at the TBA Breakfast Forum set for 7:30 a.m., Thursday, Nov. 18, in the TBA boardroom. Reserve your space by calling Stacey Turner at (757) 305-9042 by Nov. 12.
Decks (unless less than 20 square feet) are required to have a GFCI outlet. Entrapment protection is now required for swimming pools and spas. The important news for builders is that sprinklers will not be required in one-and two-family dwellings. There will, however, be incentives provided for the optional installation of a sprinkler system. In addition, the IRC now has its own standard for installing sprinklers in one and two family dwellings. Using this standard will save on engineering for those who voluntarily install sprinklers.
As building officials, we recognize that builders are our partners in matters of building safety. We pledge to continue working together with builders as we adopt a new code. Lynn Underwood is the building official for the city of Norfolk and has worked in the building safety profession for 25 years. Underwood is certified by the International Code Council and is the immediate past president of the Virginia Building and Code Officials Association. He also has written five books on construction, most recently, Building Your Green Home.
SEPTEMBER/OCTOBER 2010
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About 100 TBA members join the audience for the housing forecast from David Crowe, Ph.D., chief economist for the National Association of Home Builders (inset).
Housing forecast brings out the crowd
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April Litton and her team from Virginia Natural Gas cook bacon, eggs and biscuits.
Susan Long-Molnar of Managing Communications Consulting, serves Dunkin’ Donuts — a crowd-pleaser — as the company’s public relations firm in Virginia and the Outer Banks.
he boardroom at Tidewater Builders Association wasn’t big enough for the audience registered to hear from National Association of Home Builders Chief Economist David Crowe, Ph.D. It was 7:30 a.m. on Thursday, Aug. 19, and it was TBA’s first quarterly breakfast forum open to builder and associate members. The crowd of 100 was about evenly divided. An auditorium in TBA’s Building B served as the perfect venue for Dr. Crowe to make his predictions. He explained that unlike other recessions that depended on housing to pull up the general economy, this one needs the general economy to pull up the housing market. Crowe said he expects the recovery to continue its slow pace. He emphasized he does expect it to continue to recover — no double dip. He cited a historically low level of new-home inventory and a burgeoning “echo-boomer” population that will be entering the housing market, pointing to future demand. He urged the group to hang in there for better days ahead — even if a full recovery is a few years away. Finally, he reminded us every market is different and Virginia is not California, Nevada, Michigan or Florida. To see Crowe’s PowerPoint presentation, visit www.tbaonline.org and click on Builder Services, then National Association of Home Builders. SEPTEMBER/OCTOBER 2010
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Heads up saves builder from fines Parties impacted: Builders, remodelers and subcontractors Advocate: David DeBord of DeBord Custom Homes Inc. Issue: Builder David DeBord was constructing a home on the bay and received a call from his electrician alerting him that OSHA inspectors were on the +L)VYK site. One of the inspectors then called DeBord and requested him to come to the site. When he got there, the inspectors were investigating a call on a contractor working on a neighboring property when they noted issues with DeBordâ&#x20AC;&#x2122;s site. Action taken: DeBord was aware that OSHA was increasing its residential site visits thanks to TBAâ&#x20AC;&#x2122;s e-newsletters, the Monday Morning Briefing and Nuts & Bolts. DeBord recently missed a Builder Breakfast forum on the topic and instead reviewed the presentation online, in addition to reading about OSHA violations in TBAâ&#x20AC;&#x2122;s membership magazine, The Tidewater Builder.
Result: DeBord was able to meet the inspectors at the site with a calm head. â&#x20AC;&#x153;I was prepared that they may show up one day and when they did come,â&#x20AC;? said DeBord, â&#x20AC;&#x153;I responded appropriately and non-defensively. As a result of my cooperative attitude, the OSHA inspectors turned what could have been an expensive event into a learning situation. Since I didnâ&#x20AC;&#x2122;t have my people or employees in any risk situations, they spent the time talking to me and educating me and my employees about our potential citation issues.â&#x20AC;? Comment: â&#x20AC;&#x153;I was relieved when they left and didnâ&#x20AC;&#x2122;t cite me,â&#x20AC;? DeBord said. â&#x20AC;&#x153;The end result is that I am more tuned in to looking for potential violations now. I wonâ&#x20AC;&#x2122;t have an excuse next time. I know I must be more diligent with subcontractors and added a clarifying statement to my subcontractor agreement that all work is to be done to OSHA safety standards.â&#x20AC;? If you or your company has a building or development issue you would like help resolving or a question you need answered, please contact TBAâ&#x20AC;&#x2122;s Builder Services Specialist Patrice Kyle at 305-9015 or pkyle@tbaonline.org.
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While economic headlines continue to tout statistics showing slower than expected growth, some members of Tidewater Builders Association are surviving and even thriving as 2010 heads into fall. Here are just a few:
Mark Smelley, Hall Automotive commercial sales
If housing had a partner in misery in 2009, it was the automotive industry. All that has changed at Hall Automotive, says commercial sales representative Mark Smelley. Tight corporate budgets, the GM bankruptcy and lack of inventory helped make last year the worst in his 31 years, he said. A silver lining was that Mike Hill, commercial sales manager from the nowclosed Hall GMC commercial store, moved to Hall Chevrolet, bringing his experience and customers with him. “This year, it looks like GM will buy out the government. And nationally, Chevrolet has seen a 41 percent increase in sales over last year,” said Smelley. Hall Chevrolet in Western Branch has sold more than 125 commercial vehicles year to date, he added. “I’m seeing more confidence in our customers. They’re confident they’ve done the right thing to survive and now they’re ready to do the right thing to move forward. Some kept their vehicles longer than they used to and realize they might be better off buying new than making repairs. We’re also seeing start-up businesses that didn’t exist before.”
Sajo Farm, Virginia Beach
The timing may have been less than ideal, but “location, location, location” made up for the prerecession launch at Sajo Farm, a joint venture between Napolitano Homes and Terry-Peterson Residential Cos. Consistently one of the best-selling communities in Hampton Roads, it saw 22 net sales in 2008, the year it opened, another 46 net sales in 2009 and 35 net sales so far for 2010, according to Terry Gearhart, vice president of sales and marketing at Terry-Peterson. Located in Virginia Beach with close proximity to interstates and the airport, the community features a variety of styles ranging from the mid $300’s to the low $500’s. The lakefront community offers a clubhouse and pool, and upscale landscaping and has already won numerous national awards.
Michael Hedrick, Freedom Electric Inc.
“The reason we’re busy is that we’re diversified,” said Michael Hedrick of Freedom Electric Inc. “And we go the extra mile for the customer.” Hedrick began branching out from a focus on new homes about three years ago. Now, he and his staff of 16 are also doing commercial work, as well as HVAC and plumbing. “Whatever people want, we do it,” he said. Hedrick has developed local business relationships during his 10 years in business. He saw new-home residential pick up when the tax credit was available, and then slow when it went away. “Nowadays, the margin is less than it used to be, but we keep busy enough to keep the doors open.”
Belmont at Providence, Virginia Beach
It’s “no vacancy” at the Belmont at Providence apartment community, a project of Kotarides Builders Inc. that began leasing in the fall of 2009. All 312 units are occupied or leased for move in by the end of the year, a month ahead of projections. Construction began in early 2005 and the clubhouse opened in 2009. The apartments rent for $995 for one-bedroom and $1,195 for a two-bedroom unit. “The success of this project is due to its location,” said Pete A. Kotarides. “It’s located right on Military Highway and Providence Road in Virginia Beach, making it very convenient to the Military Circle area, Greenbrier, downtown and Town Center. “Another factor was that we were able to work with existing site features, including a large lake and wooded areas to provide a scenic setting for our residents in the heart of the city.” If you’re a bright spot in today’s housing market, let us know. Contact Mary Prier at 305-9064 or mprier@tbaonline.org.
SEPTEMBER/OCTOBER 2010
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Golf gods shine on PAC tournament TBA members sacrifice a day off work in support of PAC )` :HYH :[LPS
Mother Nature had a warm reception for the participants of this year’s Political Action Committee Golf Tournament, a nice change from last year’s near monsoon conditions. About 100 members took to the greens at the Riverfront Golf Course on Tuesday, Sept. 14. Not only were participants keeping the industry strong in assisting the mission of keeping housing affordable for all families, but they were also supporting TBA’s government advocacy efforts. Despite the wonderful weather, no one walked home with the keys to a new Ford Fusion, as was offered as a hole-in-one prize from Beach Ford Lincoln. Although Tom Dye of Ferguson Enterprises Inc. came within inches of claiming the new car. Better luck next year!
Photo courtesy Katie Hayes
Steve Rockefeller of SunTrust Mortgage, laying on the ground, and Bessie the cow become friends after he putts a hole-in-one and takes home a $100 gift certificate to Vintage Tavern/River Stone Chophouse. With Rockefeller are, from left to right, Josh Rockwell of Stephens Financial partners, Martin Joseph of 360IT and David Bogart of Apex Technologies.
First flight honors went to the team of Steve Hall, United Turf; Les Halstead, Innerspace Systems; Carl Robinson, Terry Peterson Cos.; and Jeff Touralt, Atlantic Foundations (not pictured).
A team consensus proves the best plan of attack for getting out of the sand trap for Hearndon Construction’s Bill Darden, Dick Esleeck and Doug Smith. 18
SEPTEMBER/OCTOBER 2010
TBA President Bill Halprin celebrates making a putt as teammate Joe Pushak of Bonded Builders looks on.
7KH ZLQQHUV DUH FIRST FLIGHT: First place: Terry/Peterson Companies: Carl Robinson, Steve Hall, Jeff Tourault and Les Halstead Second place: Dominion Virginia Power: Alan Bradshaw, Johnny Harris, Bobby Wood and Chip Waterfield SECOND FLIGHT: First place: SunTrust Mortgage: Steve Rockefeller, Joseph Bogart, Martin Joseph and Josh Rockwell Second place: Ferguson Enterprises Inc.: Tom Dye, Doug Erickson, Vic Luna and Greg Underwood Closest to the pin No. 13: Nick Vassalotti Longest Drive No. 12: Mark Arnold
Tidewater Insulators teammates, from left to right, Scott Bucheister, Jeff Beals and Tony Swain canâ&#x20AC;&#x2122;t help but laugh as Jonathan Hill, second from left, has a little fun on the greens.
Matt Ripley of Ripley Heatwole Co. Inc. plays from the curb as his Kotarides Builders team captain delegates.
Glynn Abeshaheen of S.L. Nusbaum takes a moment after teeing off to see if his ball is going to land where he wants it to go.
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hether in connection with a short sale on residential real estate or a workout and restructuring of a commercial real estate loan, it’s important to keep in mind and plan for the income tax effects. Although given a variety of names, cancellation of debt (COD) income is what is euphemistically referred to as phantom income — income a taxpayer is deemed to have received even though no cash equal to the COD income was received. Through thoughtful planning, transactions can be structured to eliminate or significantly reduce exposure to tax on COD income.
Generating COD income
The following are examples of events that can generate COD income: • When a creditor cancels all or a part of an obligation (whether a loan or other obligation). • When a debt is discharged in a bankruptcy proceeding. • When a debt becomes unenforceable (e.g., due to expiration of the statute of limitations). • When a debtor acquires its own debt from a creditor at a discount. • When a relative of the debtor acquires the debt from the creditor at a discount. For this to occur, the relative and the debtor must meet one of the fairly complicated relationship tests set forth in the Internal Revenue Code. If the terms of a debt instrument are sufficiently modified, then the modified instrument can be deemed to be a new debt issued in exchange for and payment of the original debt. The rules in this area are fairly complicated and a tax advisor should be consulted to determine whether the debt modification will generate COD income.
Exclusions or deferral of COD income
Even if COD income is generated from a transaction, there are several exclusions or deferrals that may be available to the taxpayer. These include the following: If the taxpayer’s debt is discharged in a bankruptcy case, then the resulting COD income is excluded; however, this will require application of tax attribute reduction rules that effectively cause the debtor to exchange exclusion of income for a reduction in future tax deductions (e.g., NOL carryovers, tax credit carryovers and tax basis). If the taxpayer is insolvent but does not file bankruptcy, then there is an exclusion that can apply to eliminate recognition of some or all of the COD income. The rule says that the amount of COD income that can be excluded is limited to 20
SEPTEMBER/OCTOBER 2010
the extent that the debtor’s liabilities exceed his assets. In addition, tax attribute reduction rules apply if the taxpayer uses the insolvency exclusion. Those in the real estate business often use the exclusion applicable to qualified real property business indebtedness. If this exclusion is available, then the exclusion is essentially equal to the amount that the debt exceeds the fair market value of the real estate securing the debt. A similar exclusion is available for qualified farm indebtedness. Homeowners are able to exclude COD income that arises from qualified principal residence indebtedness. For this exclusion to apply, the loan must be secured by a deed of trust on the principal residence and the loan proceeds must be used to acquire or refinance the residence, or to finance improvements to the residence. There are several additional rules and requirements that apply, particularly if part of the loan proceeds were used for non-qualifying expenditures.
Deferring COD income
In addition to excluding income recognition, it’s also possible to defer recognition of COD income into future tax years. A statutory change that occurred in 2009 permits COD income to be recognized on a pro-rata basis over up to a fiveyear period. This deferral only is available for certain COD income generating events that occur in 2009 or 2010, such as complete forgiveness of the debt by the creditor, acquisition of the debt instrument at a discount for cash, and the exchange of the instrument evidencing the debt for another instrument (including an exchange that is deemed to occur as a result of significant modification of the original debt). If the taxpayer elects to defer recognition of COD income, then a number of the exclusions are not available including those in connection with bankruptcy, insolvency, qualified real property business indebtedness and qualified farm indebtedness.
Avoid paying on phantom COD income
The tax rules in the area of COD income are complicated. Careful planning and structuring can minimize or avoid having to pay income tax on phantom COD income. Any taxpayer facing financial difficulty can avoid unpleasant surprises by taking these issues into account when dealing with indebtedness.
C. Grigsby Scifres, a partner in the Virginia Beach office of the law firm of Williams Mullen, is Tidewater Builders Association’s general counsel. This column features legal issues of interest to TBA’s members. For more information, contact Scifres at (757) 473-5370 or gscifres@williamsmullen.com.
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South Hampton Roads’ multifamily housing communities and professionals know there is no place like home. On Thursday, July 22, they gathered to celebrate those that went above and beyond to make their residents at home at the industry’s prestigious Associates’ Showcase, Awards Banquet and RAM Graduation at the Virginia Beach Convention Center. Hosted by Tidewater Builders Association and its Tidewater Multifamily Housing Council, the annual event is now in its 26th year. Merit Awards were presented to individuals for outstanding performance, and additional awards were presented to outstanding properties in South Hampton Roads based on when they were completed.
Christa Gilbert, Sylvester Basey, Latrina Reid and Casey Smith take a moment from the festivities to get a company photo. All of them work for Great Atlantic.
John Taylor of Lawson Realty Corp. was honored with the 2010 Multifamily Lifetime Achievement Award. With Taylor are TMHC Chairman Mike Devine and TBA President Bill Halprin.
Dana Geisinger, of First Atlantic Restoration, was named the 2010 Associate of the Year for her work supporting the Tidewater Multifamily Housing Council. With Geisinger is TBA President Bill Halprin.
More than 600 members turned up to network and celebrate at the Associates’ Showcase, Awards Banquet and RAM Graduation at the Virginia Beach Convention Center.
22 22 SEPTEMBER/OCTOBER SEPTEMBER/OCTOBER2010 2010
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Seven individuals also were awarded for their efforts in the multifamily housing industry this past year. They include: John Taylor, Lawson Realty Corp., was honored with the 2010 Multifamily Lifetime Achievement Award. Taylor has been active in the multifamily industry for more than 30 years. He began his career with the Lawson Cos. in property management and later in the apartment-lending subsidiary. He then parlayed his experience into a distinguished career at the Department of Housing and Urban Development in Washington, before rising to Director of the Asset Management Division for Virginia’s Multifamily Housing. After retiring from HUD in 2004, Taylor rejoined the Lawson Cos. to help pursue apartment financing and development opportunities. Dana Geisinger, of First Atlantic Restoration, was named the 2010 Associate of the Year Award for her work supporting the Tidewater Multifamily Housing Council. Mike Devine also was awarded the Chairman’s Plaque for his efforts in leading the TMHC for 2010. Other awards include: Gordon A. Poole Regional Property Manager of the Year Toni Baker, of Lawson Realty Corp. Peggy B. Cowan Property Manager of the Year Tina Johnson, Lawson Realty Corp. The Apartment Book’s Leasing Consultant of the Year Stephanie Thomas, Lawson Realty Corp. Merit Award for 2010 Maintenance Supervisor of the Year Horace Ensley, Kotarides Builders Rebecca Hughes/Sam Shetsul Maintenance Employee of the Year Award LaRoi Sloan, Kotarides Builders
Door prizes ranging from umbrellas to T-shirts were hot items at the Verizon exhibit, where contestants threw a ball on the yellow brick road. Each brick named a different prize.
$:$5'6 2) (;&(//(1&( With 101 communities vying for recognition, the 2010 Awards of Excellence winners, presented by TMHC Chairman Mike Devine, were announced. The first-place winners were: Adult and Senior Housing completed before 1995 Haygood Hall, Drucker & Falk Adult and Senior Housing completed 1995 and after Wesleyan Place, Ripley Heatwole Co. Inc. Renaissance Award for communities completed 1960 and before Bondale Apartments, Drucker & Falk LLC Communities completed between 1961 and 1965 Park Towne, S. L. Nusbaum Realty Corp. Communities completed between 1966 and 1970 Birdneck Village, S.L. Nusbaum Realty Corp. Communities completed between 1971 and 1975 Harper’s Square, Lawson Realty Corp. Subsidized communities Hunter’s Pointe, Lawson Realty Corp. Communities completed in 1976-80 Green Lakes, Lawson Realty Corp. Communities completed between 1981-85 Ghent Village, Lawson Realty Corp. Communities completed between 1986-1990 Mission College, S.L. Nusbaum Realty Co. Communities completed between 1991-95 Woodbridge, S.L. Nusbaum Realty Co.
Glenda K. Maye, also known as Glenda the Good Witch, of LexisNexis made an appearance at the Associates’ Showcase.
Communities completed between 1996-2000 Tallwood, Ripley Heatwole Co. Inc. Communities completed between 2001-05 The Crossings at Red Mill, Drucker & Falk LLC Communities completed in 2006 and after River House, S.L. Nusbaum Realty Co. SEPTEMBER/OCTOBER 2010
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More than 600 guests enjoyed the Associates’ Showcase before the awards ceremony.
5$0 6&+22/ *5$'8$7(6 The banquet also honored the 42 graduates of TMHC’s Registered in Apartment Management, RAM, program. The graduates completed a 40-hour basic RAM training program in on-site management, the first step to acquiring the RAM designation, a Department of Housing and Urban Development approved certification program administered through the National Association of Home Builders. • The Lawson Cos.: Rapunzel C. Abanathy; Dana M. Allen; Laura L. Ayers; Colette Cando; Jessica Champlin; Lisa R. Elliot; Anthony P. Julian; Theresa Land; James R. Moore III; Shawanda C. Phillips; Brandi L. Pulley and Cherelle M. Watson • S.L. Nusbaum Realty Co.: D. Glynn Abeshaheen, III; Tierra M. Alvin; Emily Anderson; Felicia K. Blackwell; Kelly Bright; Charlotte Nicole Brown; Susan Dannals; Felicia R. Dunbar; Stephan A. Franco; Raymond L. Goodwin; Virginia L. Lessard; Sharon Mason; Frank Nebrotskie and Carol Person • Kotarides LLC: Alexandra J. Christopher; Miranda Dial; Horace O. Ensley; Vernida G. Hinton; Jacqueline R. Sanchez and Brittnay Nicole Strickland • Ripley-Heatwole: Melissa J. Bergman and Kayla King • Clark Whitehill Enterprises: Rachel M. Burr • The Breeden Co.: Brett Kussmaul and Betty Runyon • Drucker & Faulk: Megan K. McClain • Meredith Management: Kristina B. Miklos and Tracy L. Thompson • United Property Associates: Charmaine Ross and Mona M. Watkins • BMR Investments: Adam M. Saich • Antoinette Rhodes 24
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Val Jenkins of Ripley Heatwole balances her soda while trying to nab a prize along Verizon’s yellow brick road game.
Ripley Heatwole Co.’s Team Heat once again proved that Ripley Heatwole was No. 1, as they took home first-place honors and bragging rights for this year’s TMHC Olympic winners.
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The winners of the TMHC Olympics, which were held on June 11 at TBA’s Annual Picnic in the Park, were also awarded. They were: First place: Team Heat, Ripley Heatwole Co. Second place: Great Atlantic Team No. 2 Third place: Team Ripley, Ripley Heatwole Co.
A big thank you to our sponsors and exhibitors: Jim Whitehead and Anthony Smith, both of Breeden Co., and Tim Russell, of Great Atlantic, enter their names for a prize drawing at the Ferguson Enterprises booth.
Michael Devine, far left, vice president and co-director of the Hampton Roads region of S.L. Nusbaum, and Lee Davis, vice president, far right, enjoy the Associates’ Showcase with TBA President Bill Halprin and his wife, Jeri Jo.
Congratulations
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Inspiring Places www.thebreedencompany.com
Sponsors Hampton Roads Apartment Book Verizon Enhanced Communities Virginia Housing Development Authority Central Wholesalers Inc. Ferguson Enterprises Inc. First Atlantic Restoration SAGE Law Practice Group Exhibitors Apartment Book American Furniture Rental Inc. Apartments.com Belfor Property Restoration BIIA Inc. Carousel Signs & Designs Inc. Central Wholesalers Inc. Cort Furniture Cox Communications Ferguson Enterprises Inc. First Atlantic Restoration Inc. George G. Lee Co. Inc. HD Supply Lexis-Nexis Move.com SAGE Law Practice Group Superior Equipment Sales Inc. Verizon Enhanced Communities Virginia Floorcrafters Virginia Housing Development Authority Wilmar Young’s Flooring
Congratulations! Lawson Realty is proud of our Merit and Awards of Excellence winners! MERIT AWARDS: s Lifetime Achievement: John Taylor s Regional Property Manager of the Year: Toni Baker s Property Manager of the Year: Tina Johnson, Kingsbridge Apartments s Leasing Consultant of the Year: Stephanie Thomas, Chartwell Apartments AWARDS OF EXCELLENCE: s Communities built between 1971 and 1975: Harpers Square Apartments (1st Place) s Communities built between 1976 and 1980: Green Lakes Apartments (1st Place) s Communities built between 1981 to 1985: Ghent Village Apartments (1st Place) s Subsidized Communities: Hunters Point Apartments (1st Place) s Communities built between 1986 and 1990: Hampton Creek Apartments (Runner Up) s Adult and Senior Housing built before 1995: John Knox Towers (Runner Up) And a big congratulations to all of our RAM graduates! SEPTEMBER/OCTOBER 2010
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4ȐȹǾȐɑɕȣȨɉ ȹǸɜɜȐɑɕ Getting into the spirit
Joe Pushak, Mid-Atlantic director of sales and marketing for Bonded Builders Warranty Group, (left) takes a break with TBA President Bill Halprin during the Aug. 26 Membership Mingle at Ferguson Enterprises. Pushak was on hand at the mingle to talk about the company’s Spirit of Membership Awards Program. Designed to increase membership at home builders associations across the country, the awards program recognizes members who recruit their first-ever new member. So far this year, eight TBA members have received the honor — which comes with the added bonus of a $35 gas card! Those members to date are: Kelly Bright, Victor Dzarnowski, Bob Fregin, Kay Hamilton, Rob Harris, Chaytor Midgett, Reggie Register and Carol Stevens. According to Pushak, since the company started the program several years ago, they’ve given away thousands of dollars in gas cards — and HBAs and members alike have reaped the benefits. Find out how easily you can win a Spirit of Membership Award by contacting Stacey Turner at 305-9042 or sturner@tbaonline.org.
Did you know . . . • ... 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, The Tidewater Builder or e-mail from TBA. • … Through RSVP, a local direct-mail promotional company, TBA promotes its website and Find A Member section, as well as upcoming events, to thousands of high-income residents across Hampton Roads? • … TBA offers members a three-month payment plan for annual dues?
Keep us 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 e-mail 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. Although our database just reflects one primary contact for your company (and that’s usually the company owner, president or general manager), you may also 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. 26
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Benefits to bank on
If you’re not aware of — or you’re not taking advantage of — the benefits that are available to you as a TBA member, please check out the following testimonials. For detailed information about these benefits and others, 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.
HBAV Builder Rebate Program “For a small investment in time, it’s well worth (applying for the rebate). My rebates average about $100 per house. And once you apply the first time, you look forward to doing it again — especially when you receive that check. In one year, the amount that I get back through this rebate program will be more than triple what I spend on membership dues.” – John Ainslie, The Ainslie Group
Verizon Wireless Contractor Discount Program “A few months ago while reading The Tidewater Builder magazine, I noticed a Verizon corporate discount rate that was available to TBA members. Since we were already using Verizon, I asked Michelle, my office manager, to look into it. Well it turns out we will be saving over $250 per month. Not bad; that alone pays my membership to TBA several times over.” – Larry Hill, L.R. Hill Custom Builders Inc.
Printing services “We have been so pleased with TBA’s printing services. The customer service is exceptional and they beat the rate of other venders routinely. The turnaround is quick and they have accommodated many last-minute requests and deadlines with ease. I will continue to use their services and encourage other members to do the same.” – Brenda K. Reid, William E. Wood and Associates, New Homes Division
Being a part of the community. It takes more than having a branch here. OUR LOCAL APPROACH TO BANKING GOES BEYOND KEEPING DECISIONS RIGHT HERE IN TOWN. From supporting our schools and local arts to humanitarian causes, BB&T has a long tradition of taking an active role in the communities where we do business. Good corporate citizens? Perhaps, but to us, it’s just part of being a good neighbor. To find out what opportunities are waiting for you at BB&T, call 1-800-BANK BBT (1-800-226-5228), visit us on the web at BBT.com or visit your nearest financial center.
Proud Presenting Sponsor of the 2010 Homearama
BB&T, Member FDIC. ©2010 BB&T.
SEPTEMBER/OCTOBER 2010
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LȣǸȇȐɕ ɄȘ ɑȐȐȽ
You’ll be floored by “green” practices and products Work in any industry today and the buzzword is “green” — green cars, green clothes, green food and green homes. A few months ago, a commercial showed two guys, one was wearing a regular T-shirt and the other a “green” shirt. To look at them, you couldn’t )` =PJ[VY tell the difference. As they walked through the +aHYUV^ZRP mall, people found out one of them was wear.YLLU ing a regular shirt and began chasing him. )\PSKPUN Message: Green is good; anything else is bad. *V\UJPS Contrast that with how the public actually reacts. When given a choice to buy “green,” they will as long as it doesn’t involve more money. Studies show they are not willing to pay more than 10 percent premiums for green products. In today’s economic climate, we want being “green” to equal green without customers seeing red and going elsewhere. Flooring offers many choices without adding much more green to the project’s expense. With flooring, the processes manufacturers have implemented go a long way toward creating green products without sacrificing quality or raising costs. Today’s products are more recyclable, manufactured more earth friendly and more durable. Below is a look at how manufacturers are producing “green” products.
Carpeting
You would be amazed to know what goes into the carpet you walk on these days. Beaulieu Industries has a carpet line with post-consumer pulverized glass equivalent to 6.5, 12-ounce bottles per square yard. And Mohawk Industries has recycled more than 30 billion plastic bottles into carpet since 1999. Shaw Industries has external certification of the 25 percent post-consumer content in their Anso Evergreen fiber products. On top of that, Shaw’s N6 nylon is a cradle-to-cradle product, meaning it can be remade into new carpet without waste. And three of its facilities have reached the achievement of zero landfill waste status. Interface, a commercial manufacturer, has a line called Cool Blue, which is 51 percent post-consumer materials, and its production line is powered by landfill gas.
Vinyl
Today’s vinyl flooring products are definitely not the same
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as your mom’s. Did you know the principal raw material for vinyl flooring comes from salt? According to Dean Thompson, president of the Resilient Floor Covering Institute, “Vinyl resin takes less energy to produce than most competing raw materials resulting in a lower level of greenhouse emissions over its life. And it’s inherently recyclable.” Tarkett has implemented the ReUse reclamation program, which last year processed 19 million pounds of vinyl composition tile back into new commercial and residential tiles. They plan on processing up to 65 million pounds by the end of 2010. Mannington Mills has a similar program that has created products with 25 percent post-consumer content. It’s also using reclaimed carpet in the backing of some of its sheet vinyl products, in addition to having more than two acres of solar arrays atop its New Jersey facilities. Glue manufacturers also have low-VOC emission glues that protect our indoor air quality.
Hardwood
Look out for some knots in your wood flooring, as major industry changes may have a negative effect on your business. Amendments to the Lacey Act in 2008 have been put in place to protect our forests. The formation of Forest Stewardship Council (FSC) certification for exotic wood products can actually trace the floor you installed back to the section of forest from which it was harvested. If your projects have non-compliant flooring found, you face major issues. If you’re building for LEED certification, your project will be denied and your company could face fines up to $200,000 even if you didn’t know illegal wood was being used. Major manufacturers and suppliers are Lacey Act compliant with their products and your flooring contractor can provide you with the needed documentation. Mullican Flooring’s Green Haven collection is full of green wood. They are the first manufacturer with a solid domestic FSC 100 percent PURE floor, as well as offering 30 other products with that certification. Mohawk Industries also has a number of Floorscore certified products that contribute to LEED points. Shaw Industries’ Epic Hardwood uses 50 percent less newly harvested wood than conventional 3/8 inch wood floors. Its entire Epic collection is cradle-to-cradle silver certified by McDonough Braungart Design Chemistry (MBDC).
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Ceramic tile
Until recently pre- and postconsumer tile was considered nonrecyclable. However, Crossville tile has developed a system of processing these tiles into powder to be used in new tile. Dal-tile has been aggressively reducing the amount of wastewater discharged in manufacturing its products. Since 2001, more than 633 gallons of wastewater have been recovered.
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Cork and bamboo
These products are probably the first two flooring products consumers think of when green is mentioned. Both products are naturally earth friendly by being fast growing and sustainable. Bamboo regenerates at least eight times faster than hardwoods. Meanwhile, cork is a 100 percent renewable product that is harvested from the bark of living cork oak trees. Not only are the products green, but the manufacturers are as well. As an example, USFloors offsets 15 percent of its total electrical energy consumption with solar power.
Laminate floor
While laminate is one of the newer products in our industry, it was one of the first leaders in going green. About 74 percent of Mohawk Industries’ laminate comes from preconsumer recycled materials. Shaw Industries’ laminates feature EnviroCore and uses 98 percent less newly harvested wood than conventional engineered hardwood products. These floors also are virtually 100 percent recyclable. Creating a green home today is much easier than in years gone by. One of the greatest compliments you can receive is “I didn’t know that this was ‘green!’” Sources: Floorcovering Weekly and Green Operations
Victor Dzarnowski works for Floorcrafters and has more than 19 years of flooring experience. He can be reached at (757) 548-0206 or victor@vafloorcrafters.com. SEPTEMBER/OCTOBER 2010
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Standing up for housing Advocates are hard at work on issues that matter to the industry *VTWPSLK I` 4HY` 7YPLY (79
National issues Show me the money
Lack of credit for land acquisition, development and residential construction (AD&C) continues to be the industry’s most pressing problem. Builders and developers are reporting excessive credit restrictions, including lenders cutting off loans for viable new housing projects and producing unnecessary losses on outstanding loans, which generally have previously been performing loans. The National Association of Home Builders (NAHB) has been working on many fronts to address this issue, including meetings with federal bank regulators and members of Congress, as well as identifying potential new alternative sources of housing production credit.
What’s it worth to you?
Sixty-four percent of builders responding to an NAHB survey reported they experienced appraisals that come in below the contracted sales price and one-third of the respondents lost a sale as a result. A frequent problem is use of foreclosed or distressed sales as comparables to new construction single-family homes. NAHB has been meeting with regulators, appraisal interests and housing stakeholders to shed light on the problem. It’s advocating that federal agencies enforce guidance that requires appraisers to obtain sufficient information to make appropriate adjustments in prices of comparable sales to bring them to the level that represents a reasonable alternative to the home they are appraising.
Local issues Make me a proffer
Chesapeake City Council modified the city’s proffer policy. They reduced by 25 percent the maximum amount of proffers for schools, roads, emergency services and library services. That’s money in the pocket.
Seeing green
In Virginia Beach, the Energy Efficient Buildings Ordinance allows energy-efficient buildings to qualify for a separate real estate tax classification that is 15 cents less than the standard approved tax classification for buildings. The ordinance applies to new residential or commercial buildings that meet the energy efficiency requirements or existing buildings that retrofit systems to meet the requirements.
Virginia issues Sprinkle this!
Thanks to intensive lobbying by members who serve on the Home Builders Association of Virginia (HBAV) legislative committee, the Board of Housing and Community Development advanced the 2009 Edition of the Uniform Statewide Building Code to final adoption – without a requirement for sprinkler systems in every new construction home. Home buyers will instead have the option of paying the additional cost of installing a system.
Get your ducts in a row
HBAV successfully lobbied against a mandate that would have required duct blast testing on all HVAC systems. The code requires they be tested OR undergo visual inspection unless the ducts are installed in habitable spaces. The installation contractor can also do his own duct testing for certification to the building official. Local inspectors can do the visual inspections or the building official can require third-party inspections.
Time is money
Cities that require proffers (locally, Chesapeake and Suffolk) now must accept them after final inspection and before issuance of the Certificate of Occupancy. Thanks to hard work by the legislative committee and the 2010 General Assembly House Bill 374, introduced by Chesapeake Del. John Cosgrove, the funds are no longer due early in the development process. 30
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Customer service
Chesapeake Mayor Alan Krasnoff spoke to the TBA Board of Directors about the efforts the city is making to be more builder-friendly. The city’s Department of Development and Permits is working to address issues the industry brings to its attention — from customer service in the permit office to more flexibility from inspectors in the field. The department is also working on improving the turnaround time for getting plans approved.
Get a true housing forecast
Hear smart analysis from industry experts about the issues that builders are facing at the NAHB Fall Construction Forecast Conference Webinar on Oct. 27 from 2-4 p.m. Speakers include: • David Crowe, chief economist and senior vice president at NAHB, • Eric Belsky, managing director, Joint Center for Housing Studies of Harvard University, and • Maury Harris, managing director and chief economist for the Americas, UBS Investment Research. Register at www.nahb.org/CFC.
Looking for new financing avenues?
NAHB’s Finance Forum is an online tool that matches builder and developer members seeking debt and equity funding with traditional and non-traditional funding sources. It’s FREE for NAHB builder/developer members and all financial institutions/lenders. Simply log in to www.nahb.org/financeforum and create profiles for your projects. The system will then “match” you with suitable funding sources. To learn more, visit www.nahb.org/financeforum.
8Ȑɬɕ Ҭ TɕȐ Spaces available for November BTA class
Building Trades Academy is seeking low-income youth (18-21 years old only) for FREE training starting Nov. 15 through Opportunity Inc. The program includes classroom and hands-on training in carpentry, electrical, HVAC, plumbing and facility maintenance. Job placement assistance upon completion is available. Interested individuals are asked to attend one of the orientations held every Tuesday morning at 9 a.m. and 11:30 a.m. at the Building Trades Academy. For more information, please call (757) 420-2566.
NAHB webinar to focus on securing alternative financing
If you’re finding it nearly impossible to secure traditional financing for your projects, find out what the alternatives are and how to access them in the upcoming Building Conversations webinar, “Finding Alternative Financing” on Oct. 14. Presented by the NAHB Commercial Builders Council, the webinar will feature: • Fred Hoppe, managing partner of The Hoppe Law Firm, LLC and owner of Hoppe Homes, LP, and • Guy Ackerman, a partner in the Real Estate and Construction Group of Plante & Moran PLLC. Register at www.nahb.org/buildingconversations.
THERE ARE MANY WAYS TO GO GREEN. ONLY NATURAL GAS CAN BOOST YOUR BOTTOM LINE.
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Comfort, style and convenience add value to the homes you build. You get value, too, when you build with natural gas. A reduced carbon footprint, stylish and efficient appliances and a longer appliance lifespan all add value in today’s residential market. Learn more today at virginianaturalgas.com.
Photos © 2010 Council for Responsible Energy Inc. All other materials © 2010 AGL Resources Inc. All Rights Reserved.
SEPTEMBER/OCTOBER 2010
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LȃȣɄȵǸɑɕȣȨɉ TɉȇǸɜȐ
It’s always nice to be appreciated Princess Anne High School alum Nichole Ehlers has written to Scholarship Director Mary Hearring every year since receiving the Tidewater Builders Association academic scholarship award in 2007. Here’s an excerpt from this year: Dear Ms. Hearring, I wanted to send you something that would bring a smile to your face as you mail out all of those scholarship checks. Thank you for all that you do to ensure that TBA scholarships happen. I am so incredibly grateful to TBA and am honestly still bewildered at this blessing of a scholarship, which has taken a big chunk out of my tuition at James Madison University every semester. Please pass my thanks onto TBA. Please know that this scholarship has made a huge difference in my life because it has helped me stay in school and get a little closer to becoming a high school teacher!
Carole Warren, mother of Rebecca Warren, who. won an academic award her senior year after having won a Young Designers Award her freshman, sophomore and junior years at Lakeland High School. Dear TBA members and staff, On behalf of my daughter Rebecca Jean Warren, I would like to personally “Thank You All” for your wonderful, wonderful support and encouragement that you have given to Rebecca over the years! Rebecca is so excited about attending Virginia Tech and your support and encouragement has given her this direction in life that otherwise could not have been a reality. I thank you for what Tidewater Builders Association stands for, commits itself to, and gives achievement to our youth that would have otherwise gone unnoticed and unchallenged. You encourage our youth to succeed and strive for their goals! Bless you all and thank you all so very much!
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LȣɄɉ PǸȵȰ Napolitano earns superintendent designation
Frederick Napolitano III recently completed the requirements of the national Home Builders Institute to become a designated Residential Construction Superintendent (RCS). The self-study correspondence course is available though the Home Builders Institute and covers general project management, planning and scheduling, budget management, customer service, safety and security, codes and quality control, hiring, training and management and trade contractor relations. Napolitano is employed at Napolitano Homes, a Virginia Beach-based residential building and development company. He is a resident of Virginia Beach and a graduate of Hampden-Sydney College.
JES garners top spots in industry awards
The stars shined brightly for JES at the August Basement Systems/Foundation SupportWorks International Convention in Hartford, Conn. Out of more than 300 companies, JES garnered several first-place accolades for its sales and service. JES President Jesse Waltz, P.E., also was awarded the CleanSpace® Leadership Award for his installation achievements and contributions to the growth and development of the international network of CleanSpace® Contractors. JES is a structural engineering solutions firm. For more information, visit www.jeswork.com.
Builder goes above in green certification
Three homes from TBA’s spring’s Homearama at Founders Pointe in Isle of Wight County were Energy Star certified by SENCON; however, the Charity House built by Sasser Construction went a step further and received Bronze Level certification from the National Association of Home Builders (NAHB) Research Center as part of the NAHB Green Building Program. It’s believed the home is the first NAHB Bronze home certified in Hampton Roads. The NAHB Green Building Program certifies homes based on their Green Home Building Guidelines and the ICC 7002008 National Green Building Standard on three certification levels. SENCON is a third-party verifier that offers energy efficiency certification services. For more information, visit www.senconinfo.com or call (757) 498-0100.
SEPTEMBER/OCTOBER 2010
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Find peace of mind with long-term care insurance If we were playing the word association game and I said “hot,” you’d probably say “cold.” If I said “day,” you’d probably say “night.” If I said “long-term care insurance,” you’d )` :HSS` probably say “nursing 2VJLU home.” Generally, the vision of old people living their last few days, months or years in a nursing home is the picture our mind draws when we think of long-term care. Although that is a plausible image, there are so many others that could come to mind. Today’s economy has affected the long-term care insurance industry. People who once felt confident that
their assets would cover the cost of long-term care are now purchasing long-term care insurance to guarantee the money will be there without worrying about the stock market or property values. Did you know that most long-term care insurance policies will cover care in a home, in an assisted living facility, and/or an adult day care center, as well as a nursing home? There are people who are well under the age of 65 who need assistance with their daily living activities due to injuries received from car accidents, playing sports, and enjoying activities while on vacations, as well as illnesses that attack people at any age, such as muscular dystrophy, rheumatoid arthritis or Parkinson’s disease. There are some insurance compa-
nies that offer to pay the insured up to double the daily or monthly benefit for care if the claim is due to an accident and the client is under 65 years old. After all, statistics show that people under the age of 65 usually need long-term care due to an accident. One concern people have about purchasing long-term care insurance at an early age is if they die without ever using their policy. However, there are some insurance companies that will return the premiums paid into the policy to the insured’s beneficiary if the insured dies before the age of 65. Additionally, several insurance companies offer a rider called “shared care,” which allows the partner of the deceased insured to use the remainder of the insured’s policy for his/her own longterm care needs. There are young people that are aware of the possible need for longterm care because they have seen it second-hand through their friends, co-workers or other family members. However, since their current priorities may be paying off their mortgage and investing for retirement, they may not be able to afford a stand alone longterm care insurance policy. There are life insurance policies that offer a longterm care rider at a very nominal fee. There also is group-sponsored longterm care insurance. This benefit is no cost to the employer, yet the employee’s premium is discounted. Next time we play the word association game and I say “long-term care insurance,” it’s my hope that you’ll say “peace of mind, security, independence and dignity.” Sally Kocen, a long-term care representative, will be speaking at a free program hosted by TFA Benefits/Sachs Group at 2:30 p.m. Tuesday, Nov. 9, at TBA. The information provided above is the opinion of the author and does not represent the opinions of the insurance companies whose products she markets.
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.
Welcome new members $662&,$7(6 Area Access Inc. Elevators; other services Mobility equipment Kenny Hardee................. (757) 852-2732 www.areaaccessinc.com Call Source Market research/consulting; other services; performance management/training Jessica Simmermon ....... (877) 387-7773 www.callsource.com
Guernsey Office Products Office supplies/equipment Todd Wrenn .................... (757) 499-9112
TitleQuest of Hampton Roads LLC Insurance (general/home warranty/ workersâ&#x20AC;&#x2122; comp) Deborah Gayle ............... (757) 962-9844
Hall Chevrolet Commercial Sales Auto sales/rental/supplies Michael Hill ..................... (757) 233-8120 www.hallfleet.com
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HomeVestors Real estate; remodeling/restoration/ building repair Patti Robertson .............. (757) 472-2547
Best Value Remodelers/AAPCO Additions; remodeling/restoration/ building repair Seth Graham .................. (757) 216-5170
Carolina Sport & Fitness Equipment rental/sales Teresa Glauser ................ (877) 524-8121 www.carolinafitness.com
Kimley-Horn and Associates Inc. Architect/landscape; engineering/planning Ted Miller, P.E. ................ (757) 548-7300 www.kimley-horn.com
Mid-Atlantic Petroleum Services Inc. Commercial builders; concrete; pools Tommy Salamon ............. (757) 424-9726
Clark Nexsen Architect/building designers; architect/commercial; architect/landscape; engineering/ planning Doug Talbot .................... (757) 455-5800 www.clarknexsen.com
Noble Brothers Cabinets & Millwork Cabinets Scott Noble .................... (757) 514-8894
Crawl Space Door Systems Inc. Building materials; other services; crawlspace moisture control products & flood vents William G. Sykes ............. (757) 363-0005 www.crawlspacedoors.com
Southside Landscaping & Fence Fences; landscaping/sodding Don Roberts ................... (757) 749-0163 Special Events Entertainment Caterers/meeting facilities; equipment rental/sales; recreational/leisure Mike Fitzwater ................ (757) 485-1212 www.virginiaspecialevents.com
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North Shore Construction Co. Builders/developers Christopher Kanter ......... (757) 646-1313 Viridian Homes LLC Builders/developers Edward Hewitt ................ (757) 286-6551 www.viridianhomesllc.com West Neck Properties Inc. Builders/developers Robert Zirpoli .................. (757) 425-8377 www.liveateaglesnest.com
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SEPTEMBER/OCTOBER 2010
35
Here to Stay Seacoast Construction Fabrics Inc.
L&M Contractors Inc.
Sicash/Palms Associates
McQ Builders LLC
Sign Works
MG Homes LLC
Solar Services
N.B. Miller Builder Inc.
American Insulation Service LLC
Southern Tile Distributors Inc.
Napolitano Homes
Basnight Land & Lawn Inc.
State Farm Insurance & Financial Services
National Housing Corp.
Stephen D. Donahoe & Associates Inc.
Ocean Bay Homes Inc.
Steve Love Insurance Agency Inc.
Parker Landcaster & Orleans
Thad A. Broom, AIA, PC, architect
Preston Homes
The Mosiac Tile Co.
R. Savino Custom Homes
Tidewater Block LLC Tidewater Insulators LLC
Ripley Heatwole Co. Inc./ R H Builders Inc.
Tidewater Interior Wall & Ceiling Inc.
Signature Management Corp.
Tidewater Mortgage Services Inc.
Southeastern Environmental & Construction (SENCON)
$662&,$7(6 Access Innovations Inc. Advance Mortgage Co. Advance Title & Abstract Inc.
Bath Fitter/Snyder Home Services Inc. Bay Shore Construction Beach Ford Built to Last Central Plumbing & Heating Inc. Central Wholesalers Inc. Chesapeake Bay Contractors Inc. Clark Roofing & Siding Inc. Coastal Lighting & Supply Cord Building Systems Inc.
TowneBank
Norfolk Building Corp.
Summit Construction Corp.
Custom Closets & Interiors
Trehn Inc. dba Tidewater Security Services
Custom Home Designs Inc.
Vanasse Hangen Brustlin Inc.
The Dragas Cos.
Diamond Hill Plywood
Verizon Enhanced Communities
The Terry/Peterson Companies
Dickerson & Smith Law Group
Virginia Realty Guild at Keller Williams
TJL Enterprises Inc.
Evan C. Hibbs Inc.
Wilmar
Wendell Homes LLC
Great Bridge Builders
Wisco Vinyl/Aluminum Corp
Greenbrier Lighting
Work Co. Drywall & Plaster
Greenwich Kitchen Center Inc. Hayden Frye & Associates Inc. Heritage Bank Hoggard/Eure Associates P.C. Indoor Air Systems Inc. Inner Space Systems Inc. Land Works LLC Lawrenceville Brick Masonry Supply Loweâ&#x20AC;&#x2122;s Home Centers Inc. McCallum Testing Laboritories Inc. McGeein Inc./ McGeein Construction Co. Meadow Green Builders Midgett Inc., RL Norfolk Redevelopment & Housing Authority
%8,/'(56 Baymark Construction Corp. Belfor-USA Group Inc. Benson Homes Bullington Builders Inc. CBN Land Development Charlie Anderson Builder Inc. Crestline Homes LLC Crestline Realty Corp. DeBord Custom Homes Inc. Definitive Homes East West Communities Executive Homes Corp. of Virginia Franciscus Homes Inc.
Precision Spinal Care Inc.
Gallagher Associates
Princess Anne Builders Inc.
GBK Builders Inc.
Quality Stone Concepts
Golden Heritage Homes LLC
Rebath/Southeast Industries Inc.
Graf Construction Co. Inc.
Reico Kitchen & Bath
HHHunt Homes Hampton Roads LLC
Scott Taylor Plastering Inc.
Kroll Enterprises Inc.
SEPTEMBER/OCTOBER 2010
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ABT Custom Homes LLC
Pinkston Geothermal
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T.J. Dunleavy & Sons
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Multifamily Buildings
Apartment and shopping center insurance
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37