Tom Raver, Fireplace Distributors Receives HBAL Assoc of the Year Award

Congratulations to Tom Raver of Fireplace Distributors on winning the Home Builders Assoc of Louisville's Associate of the Year Award for 2011.  We all know how hard Tom has worked for our industry and this goes a short way in recognizing his labor.  http://youtu.be/Vifb-ZzIrlo & http://youtu.be/oK1-uXQpS64

Made in America

I am embarrassed to say that I have not seen this ABC News Feature that has been running for nearly a year called “Made in America”.   Diane Sawyer has taken it upon herself, along with ABC, to promote products that obviously, are Made in America.  She even has started a "Made in America" web site (http://abcnews.go.com/WN/MadeInAmerica/).  Randy Strauss our “on top of everything” National Area Chairman for the National Home Builders Assoc. sent this to me and it really hit home.  I know at my company we have been promoting heavily “Buy Local” and one of my suppliers, General Electric, has been helping me pay for that advertising in part because of their efforts to move most of their appliance manufacturing back to the US from out of the country.  I am guilty of not always checking but this video really shows how far we can go to making our products Made in America.  If a homebuilder can make an entire home out of American products for only a 1% up charge, then anything can be completely red, white and blue.  The video references a complete list of products needed to build a home that are all Made in America.  This list can be found by clicking on this link:  http://abcnews.go.com/images/Business/Made%20in%20America%20List.pdf

Please take the time to look at this video and if you feel so inclined, pass it on.

Let’s make this a real LOCAL, RED, WHITE, AND BLUE HOLIDAY.

Diane Sawyer and ABC's Made In America

NAHB Presidential Candidate Teleconference with Governor Rick Perry

On Tuesday Nov. 8, 2011 at 3:15 PM the NAHB sponsored a teleconference with Texas Governor Rick Perry.  The following is the opinion of the author of the blog and in no way expresses the opinion of the Home Builders Association of Kentucky nor of the National Association of Home Builders.

In my opinion, the Governor seemed to be a very intelligent, driven, and savvy candidate.  He was very business-like, but very "homegrown" also, therefore providing an impressive and interesting combination.  As with previous candidates, he spent most of the teleconference talking about taxes and the economy.  Also, he stated that he felt that this election would provide a huge swing in elected officials and that those proposing "radical changes" would be swept into office.  He was emphatic that whoever takes over cannot "nibble along the edges" of change, but must make "radical" changes.  He, like many others, wishes to eliminate the Internal Revenue Service as we know it today.

During the teleconference today, our own Shirley Wiseman asked the Governor what he would do, immediately, upon taking over as President to help stimulate the building industry.  The Governor's response would be that the most important project that he would tackle to assist our industry would be to develop MORE JOBS so that each and every person in our country would regain faith in the job market.  This he said would be possible through his "Cut, Balance, and Grow Plan" which is designed to "get America working in the fastest way". 

The "Cut" part is to cut taxes; the "Balance" part is to balance the budget; the "Grow" part is to grow jobs and the economy.  His plan is based around a 20% flat personal and corporate tax.  While admitting that a "Fair Tax" would be a very solid option to get the economy growing, it is not the fastest because it would require the elimination of the 16th Amendment which would obviously take some time.  So he proposes the 20% Flat tax while still protecting the deductions for:

1. State and local taxes
2. Mortgage interest
3. Donations

and would increase the individual deduction to $12,500/person.  He said that depending on how your business was set up, you could either choose the 20% tax on your business or on your personal income, but it would not be on both.  In doing this he assured that his plan would balance the budget by the year 2020.  He did not get into more specifics as to how that would happen, but he virtually "guaranteed" it.  By establishing the 20% tax on corporations, the US would now be in line with the rest of the world in taxation, therefore stimulating tremendous growth in the US economy by bringing corporations back to the US and eliminating taxation as the reason for corporations to leave this country. 

Therefore, there would be more jobs and that would immediately stimulate the building industry.  Shirley was not allowed back on so that we are not sure if that answered her question, but this was his answer.

At the end, he was asked how he planned to control illegal immigration.  He was very blunt in stating that he knew how to control the borders of our country, as he had to do that for his state of Texas, but that he could not control all the borders until he would become President.  Although he did not say how, he did state that he could assure us that within 12 months of his taking over the Presidency, he would have all the borders secure. 

In conclusion, Gov. Perry said that if you wanted to sum up his candidacy in one word it would be "Freedom".  

Call to Action: Congress Must Extend the Conforming Loan Limits & Message from Jerry Howard, CEO and President, NAHB

  https://www.facebook.com/photo.php?v=10150444074973894


Please go to the link above and listen to the plea from NAHB CEO Jerry Howard discussing the importance of contacting your US House Representative and making your voice heard regarding Conforming Loan Limits.

Teleconference with Rep Michele Bachmann (R-Minn) Nov 2, 2011

The following is the opinion of the author of this blog and in no way is the opinion of the Home Builders Assoc. of Kentucky nor of the National Association of Home Builders.

At 4:00 PM on Wed Nov 2, 2011 the NAHB participated with other similar organizations on a teleconference with Representative Michele Bachmann (R-Minn).  This is part of a series of teleconferences with most of the Republicans who are seeking their party's Presidential Nomination.  Please see our previous blog on the teleconference with Rep. Ron Paul (R-Texas) that took place on October 13.  The next teleconference will be with Gov. Rick Perry  this next Tuesday, Nov 8 at approx. 3:15 PM ET.

I have yet to receive the summary of the teleconference from NAHB so that I cannot yet post.  As soon as I receive it, I will post it on this site.  However, from my elementary view, the conference went very well for the Congresswoman.  She came off as very personable, very down-to-earth, and because of her background being a tax attorney, she came off as very believable regarding balanced budgets and tax issues.  She was very emphatic that she would veto any budget that came to her that was not balanced.  She stressed the increase in the debt that is continuing on a daily basis and emphasized that in her opinion, this could not continue or the economic road of the United States would mirror that of Greece and other EU countries.  She emphasized that her main job as President would be to get the US economy back on its feet by using many of the flat tax ideas that Pres. Reagan implemented years ago. 

One of the callers asked her how she would be able to accomplish the balanced budget and the tax changes since she is an admitted, "outsider" and since previous leaders were not able to get measures such as this passed.  The Congresswoman stated that she was going to fight to get at least 12 new Senators who mirrored her philosophy into position in the next election so that she would have the backing to get her measures through. She considers the 2012/2013 elections as the LAST chance for the voters to be able to change the direction of the Country before it slides into economic destruction.  She felt that the 2012/2013 elections with not just be a landslide victory for the Republicans and the conservatives, but as she put it a "tsunami" election in that direction.

Other than her mention of Greece and EU, she never touched at all on Foreign Policy or Security.

In my opinion, she mentioned her raising of 28 children (4 biological and 24 foster), the fact that she came from a below-poverty background, and Pres. Reagan too often.  I understand that she was using these points to emphasize her position in life and in politics, but to me, they were stressed at least once too often.  However, other than that minor point, I was impressed with her presentation and her fervor, although due to time constraints and her desire to tackle the important economic issues, she did not touch any other Presidential challenges.  I am sure that if you go to www.michelebachmann.com you can find many other questions that you might have regarding her qualifications.

I hope that very soon I will be able to post a synopsis from NAHB that will give you a more detailed view of her teleconference.

If you participated in this teleconference, please post your thoughts on this blog. 

Sen Ron Paul's Teleforum, Oct 13, 2011

October 14, 2011

National Association of Home Builders

Washington Update

FONT SIZE: A A A

Rep. Paul Says End Government Role for Housing

In a one-hour presidential “teleforum” on Oct. 13 that drew more than 20,000 participants, Rep. Ron Paul (R-Texas) said that he believes there should be no government role for housing.
“The federal government’s responsibility is to get out of the way and let the free market work,” said Paul.
Regarding Fannie Mae and Freddie Mac, Paul said the two government sponsored enterprises “contributed significantly to the financial bubble” and that it is wrong for the government to prop up lower interest rates for Fannie and Freddie at the expense of privately-owned financial institutions.
“The government should deregulate,” said Paul. “It should not be in the business of housing. This is how we got into so much trouble. “As soon as we get back to [free] market principles, the sooner we will get back to more jobs and building more houses.”
To deal with the foreclosure problem and excess homes that are on the market, he said it would be counterproductive to keep home prices up or stimulate more home construction at this time.
“The correction means you have to get the prices down. You have to get the prices down to where these houses will be sold and cleared,” said Paul.
NAHB, along with members of the Associated Builders and Contractors, the National Federation of Independent Business and the National Restaurant Association, sponsored the forum to give our members a chance to hear from the presidential candidates and ask questions via the telephone.
Together with our cosponsors, we have extended invitations to President Barack Obama, former Governor Mitt Romney, Governor Rick Perry, Rep. Michele Bachmann, former House Speaker Newt Gingrich, and businessman Herman Cain to conduct individual teleforums with us.
While NAHB does support pro-housing congressional candidates through BUILD-PAC, its political action committee, it officially does not endorse any presidential candidate.
During the teleconference, Paul said that American society is run on a Keynesian philosophy where the government intervenes and tries to direct the economy and that he believes in the tenets of Austrian free market economics, which generally advocates a laissez faire approach to the economy.
“I argue for free government, little regulations and as much free trade as possible,” he said.
Paul also criticized the Federal Reserve for taking an aggressive stance in moving to keep interest rates so low and said that he advocates taking away the ability of the Fed “to make money out of thin air.”
Responding to a caller who said that excessive regulations from the Environmental Protection Agency and other government agencies has unduly burdened small businesses, Paul said that his goal would be to get rid of the EPA.
"We don’t have the right to pollute our neighbor’s property or our neighbor’s air," he said. "We should be very strict about that through property rights legislation, but the bureaucratic way of doing it now just invites the politicization of radical environmentalists to come in and take over because they literally take over the ownership of your land. I would do everything possible to move away from that direction.”
Regarding tax policy, Paul said that “if I had my druthers, I would repeal the 16^th amendment and get rid of the IRS.”
He opposes the implementation of a sales tax to raise revenue because he said it is regressive in nature.
As President, Paul said he would look for ways to cut $1 trillion out of the budget in his first year in office.
“I concentrate on why are we spending so much money, why do we have to have all these taxes," he said. "What we have to ask is what should the role of government be."
To help lower taxes and save money, Paul said he would institute a non-interventionist foreign policy. “The easiest place to cut politically is one that I think would not only be beneficial to us economically but be beneficial to our national defense. We should not pretend we police the world and tell everyone what to do and look at all the boundaries around the world and try to secure those at the same time we don’t do much with our own borders.”
On the topic of immigration, Paul said that states should not be required to provide free education and free medical care to illegal immigrants and they should not be rewarded with amnesty. He also said that small businesses should not have to act like policemen.
“Now we punish the businessman,” said Paul. “That’s not the problem. We should be more generous and efficient on allowing workers to come here. No benefits and no easy road to citizenship. That’s a start in the right direction.”
Going forward, NAHB expects that more candidates will soon confirm times in which they can participate in similar teleforums, and the association will let its members know about each scheduled event as soon as that information is available.
In the meantime, NAHB members can signify their interest in participating in upcoming teleforums by filling out the registration form at this link. Please note that you will need to provide a valid telephone number at which you can be contacted when each event begins.
For more information on the presidential teleforums, email Nick Gentile at NAHB or call him at 800-368-5242 x8542.

• 
• Return to Top

House Panel Repeals 3 Percent Withholding Rule

The House Ways and Means Committee this week approved H.R. 674, legislation introduced by Reps. Wally Herger (R-Calif.) and Earl Blumenauer (D-Ore.) that would repeal the 3 percent withholding rule that requires the IRS to hold back 3 percent on certain payments made to contractors doing business with local, state and federal governments in order to improve tax compliance.
NAHB supports this repeal because the withholding rule could cause cash flow problems for small firms doing government work and is an unnecessary administrative burden for companies that must comply with this tax law.
The full House is expected to pass the bill but its fate is unclear in the Senate.
To view the legislation, click here and type the bill number in the box in the center screen.
For more information, email J.P. Delmore at NAHB or call him at 800-368-5242 x8412.

• 
• Return to Top

Help Build Support for AD&C Bill, the Mortgage Interest Deduction and Low Income Housing Tax Credit

With the House scheduled for a one-week recess next week, NAHB has sent out a BuilderLink alert urging members to set up meetings with their lawmakers at their district office during the week of Oct. 17 to keep them focused on the housing crisis and urge them to be pro-active in their response. Specifically, NAHB is urging lawmakers to cosponsor H.R. 1755, legislation that will help restore the flow of credit to home builders, and to urge them cosponsor a House resolution (H.Res. 25) in support of the mortgage interest deduction and to protect the Low Income Housing Tax Credit.
For more information, click here or contact Nick Gentile at 800-368-5242, x8542.

• 
• Return to Top

-TOP 10 NAHB ACTIONS TO BENEFIT OUR MEMBERS IN THE PAST MONTH-

-TOP 10 NAHB ACTIONS TO BENEFIT OUR MEMBERS IN THE PAST MONTH-

1.    NAHB has initiated a broad-based messaging strategy that is aimed at amplifying the importance of homeownership to voting Americans and the importance of residential construction to the national economy.

Homeownership is under attack. As policymakers debate scaling back or eliminating the mortgage interest deduction, imposing stricter lending standards and dismantling the GSEs, it is crucial to remind the American people how much they value homeownership and enlist their support in the battles ahead. The stakes could hardly be higher, yet the public is largely unaware of the emerging threats to homeownership. Moreover, while numerous surveys have shown that Americans greatly value homeownership and agree with our priorities in the tax, legislative and regulatory arenas in surveys, our “base” of die-hard supporters among likely voters is somewhat less than 50%. In other words, we have work to do. The good news is that we can win the battle to maintain home-ownership as a national priority if we tell a compelling story about its true value — a story that emphasizes such positives as job creation, economic growth, pride of ownership, peace of mind, and financial security — and engage the public in defending it.  

We have a new way to speak to America more persuasively than ever. Developed by a renowned expert in the art of consumer insight and strategic communications, NAHB's new “messaging architecture” is designed to engage people’s emotional connection to homeownership, drive home the importance of home building as an engine of job growth, and spur positive action to defeat these threats. By following a simple outline to tell our story using a central theme, a description of what is at stake, and proof points with power phrases and images that resonate, we can dramatically improve our effectiveness in communicating our priorities to home buyers, likely voters, civic groups, Congress, regulators, the media and other key audiences.

Start using words that work today. Visit www.nahb.org/messaging to learn why the messaging architecture works and how to use it, with resources ranging from a 40-minute training video and written guide to practical tools you can put to use immediately — including a speech outline, talking points, a publication, print ads, op-eds and letters to the editor.

Our industry is in the fight of its life. If we are to succeed, all of us must speak with one voice. We are asking every NAHB member to be part of the critical effort to tell our story—and win the battles that lie ahead. Please write us at communications@nahb.org if you have any questions about the messaging initiative or toolkit resources.  New resources will be added regularly, and we encourage you to let us know if you have ideas for possible enhancements or constructive feedback on what's already being offered. Thanks ahead of time for your participation!  Contact: Blake Smith (800-368-5242, x8583).

2.    Following NAHB efforts to convince EPA that it did not have enough data to support a numeric limit for storm water discharges, the agency has finally admitted this by announcing that it will withdraw its revised ELG rule from the Office of Management and Budget (OMB) and begin collecting data from the public prior to developing and proposing a new rule.

If adopted, a numeric limit would require construction site operators to install costly treatment systems, sample their stormwater discharges, and self report their sampling data to EPA or their state permitting authority – collectively adding thousands of dollars to the cost of the average single-family home. NAHB helped convince the agency that it could not rely on its advanced treatment system (ATS) data because that data was flawed; at the same time, its passive treatment system (PTS) data was suspect, leaving the agency with little real data on which to base a rule. 

NAHB was successful in this effort because of our integrated approach to challenging the rule (on both the legal and administrative fronts), and our commitment and continued monitoring and participation with the Small Business Administration, OMB, and EPA as they worked on reviewing and revising the draft rule. 

The latest development effectively pushes EPA back to square one in developing the rule, and will likely mean that the Construction General Permit will be finalized in February without any numeric requirement.  It also bolsters NAHB’s argument that because terrain, geography and rainfall vary significantly in most regions of the country, a nationally applicable numeric limit is neither defensible nor practicable. Going forward, NAHB is redoubling our efforts to collect turbidity data from members' construction sites to help ensure that the eventual ruling makes good scientific sense. Contact: Ty Asfaw (800-368-5242, x8124)

3.    Bringing builder concerns about the appraisal process for new homes directly to those who need to hear them, NAHB Chairman Bob Nielsen gave a keynote address at a meeting of the Appraisal Institute on Aug. 17.

         Telling institute members that "it is absolutely critical for our organizations to work together to reform some aspects of the appraisal system that are crushing the residential construction industry and dampening prospects for an economic recovery," he emphasized builder concerns about the use of distressed properties as comparables for new homes and spelled out the very real differences between the two. "By definition, distressed properties are not comparable to a new home," said Bob. "New homes are built to current codes, they are often significantly more energy efficient and 'green' than older homes, and they include a range of modern amenities and design elements that buyers value and for which they are willing to pay a premium." Beyond this, new homes are in excellent condition and are move-in ready, he noted. In contrast, distressed properties have often experienced significant damage from theft and vandalism. "Almost always, they have deteriorated as a result of neglect and deferred maintenance. And, all of them suffer from a perception that these conditions may have diminished their value," Bob said. He explained to his audience that "If we keep comparing new homes to homes that are in foreclosure, then there is no floor to the market," and urged the institute's support for key measures within legislation that has been introduced in Congress (H.R. 1755) to address the critical lack of funding for housing construction and the related problem of inaccurate appraisals. "If you have different solutions, we are very open to learning more about them," said Bob. "But home builders feel strongly that a system that allows distressed properties to be used as comps for new homes needs to be changed."  In all, Bob's appearance before this audience and his keynote address marked an important milestone for our efforts to draw attention to one of the most critical issues affecting new-home sales today, and was a good indication of appraisers' willingness to hear the solutions we have proposed. Contact: Blake Smith (800-368-5242, x8583)

4.      NAHB’s Construction, Codes and Standards staff has recently completed the “2012    I-Codes Adoption Kit,” a collection of resources that provides members with a list of the suggested amendments and other items needed to successfully advocate for cost-effective and affordable codes at the state and local level. 

At the conclusion of every code development cycle, NAHB's staff reviews all of the approved changes and develops a list of recommended amendments for use when the codes come up for adoption at the state and local level. Each recommended amendment includes the text to be amended, a reason statement to justify the amendment, and the contact information of the staff member who can provide additional information. The NAHB proposed amendments for the latest codes cover a wide range of requirements, from reinstating equipment trade-off provisions in the energy chapters of the International Residential Code, to removing the mandate for residential sprinklers. Additional items recommended to be amended in the 2012 I-Codes pertain to: expansion of Type-B units in existing buildings; window and door flashing; kitchen exhaust make-up air; carbon monoxide detectors; and more. The 2012 I-Codes Adoption Kit is available to members on www.nahb.org. Contact: Steve Orlowski (800-368-5242, x8303)

5.    On Aug. 1, NAHB submitted our official comments on the Credit Risk Retention rule that was issued earlier this year, in which we requested a withdrawal of proposed requirements for the Qualified Residential Mortgage (QRM). 

     Passed in July of last year, the Dodd-Frank Act requires that loan originators and securitizers hold at least 5% of the credit risk between them, with noted exemptions – one of which is for qualified residential mortgages (QRMs). As of now, the federal agencies have proposed that QRMs include a 20% downpayment and very conservative debt-to-income and credit history requirements. Because loans meeting the QRM standard will not require risk retention, these loans will have more favorable interest rates and payment terms than loans that do not meet the QRM standard. NAHB strongly believes that the unduly narrow definition of a QRM would seriously disrupt the housing market by making mortgages unavailable or unnecessarily expensive for many creditworthy borrowers.  In our newly submitted comments, we therefore requested that the proposed rule be withdrawn and re-proposed and asked the agencies to seek additional information from the public to assist them in framing these regulations.

NAHB has also joined with a diverse coalition of more than 40 consumer organizations, civil rights groups, lenders, real estate professionals, insurers and local governments in developing a white paper that includes a thorough analysis of the impact of the proposed  definition of a qualified residential mortgage on the fragile housing market. The Coalition submitted this paper as a comment letter and urged the regulators to redesign a QRM that encourages sound lending behaviors, attracts private capital and reduces future defaults without punishing responsible borrowers and lenders.

The proposed rule would also have a detrimental impact on financing multifamily and commercial properties. The rule provides an exemption from risk retention for Qualified Commercial Real Estate (QCRE) loans, but the proposed requirements would be virtually impossible to meet, therefore pushing up financing costs for multifamily and CRE developments. NAHB told the agencies that the QCRE underwriting standards should be realistic and achievable.

The proposed rules will go into effect one year after they are finalized, which is not expected anytime soon. Going forward, NAHB will continue to press the agencies to develop a final regulation that will not unnecessarily hamper the flow of capital to the residential mortgage sector. Contact: Jessica Lynch (800-368-5242, x8401)

6.            When recent developments such as S&P’s downgrade, weaker economic reports, stock market volatility and the debt/deficit debate in Washington spurred questions among our members about the implications of these events for housing, NAHB offered a free webinar to provide some answers.

NAHB CEO Jerry Howard focused on the political side of the equation and where the policy debate is headed in the coming months, while Chief Economist David Crowe presented his revised forecast and insights on the latest economic indicators. NAHB alerted our members in advance of this event, and with more than 230 people listening in from 166 locations, this proved to be one of NAHB’s largest webcast events thus far. We are now providing a full replay of the event for a limited time on our web site. Simply visit nahb.org and type “housing market implications” in the searchbox at the top right of the page. For help in accessing the webinar, contact Jill McKibben (800-368-5242, x8659).

7.            A free webinar from NAHB provides NAHB members and home builders associations with important information on dealing with the Occupational Safety and Health Administration’s recent stepped-up enforcement actions and increased penalties. 

           While in past years OSHA primarily targeted commercial contractors for its inspections, today residential builders are also routinely being visited. NAHB's webinar — “How to Prepare for an OSHA Inspection” — was offered live on Sept. 13 and viewed by nearly 400 NAHB members. The webinar touched on a number of topics, including the rights of employers during an OSHA inspection, what to do during the actual inspection, when to contest citations, how to obtain penalty reductions, and what legally recognized defenses exist to defend against citations — specifically as they relate to recent changes in fall protection requirements. The presenter was Bradford T. Hammock, a partner in the Washington, D.C., regional office of Jackson Lewis LLP, whose practice is exclusively in the safety and health area. NAHB members can access a full replay of this helpful webinar by visiting www.nahb.org/safety. Contact Marcus Odorizzi (800-368-5242, x8590)

8.    NAHB offered a special panel session called “Builder Focus: Proven Strategies for Success” during the Fall Board of Directors week in Wisconsin. A full replay will soon after be available for our members’ viewing on www.nahb.org.

The panel discussion took place on Sept. 8 and was slated as a follow-up to the successful Spring Board panel of the same name. This time, four new panelists shared what strategies they are using to successfully sell homes, secure AD&C financing, and gain the advantages they need to thrive in a down market, as well as how they are positioning their companies for success as the industry emerges from the recession. NAHB Chairman of the Board Bob Nielsen again acted as moderator. Panelists included Mike Dishberger, CEO of Sandcastle Homes and 2011 president of the Greater Houston HBA, as well as Keith Grant, co-owner of Keith and David Grant Homes LLC in Collierville, Tenn.; David Main, owner of Creative Home Partners and 2010 president of the MBA of King and Snohomish Counties in Washington State; and Sandra Steele, president and co-owner of Enfinger Steele Development in Huntsville, Ala. For more information, contact NAHB's Communications group at communications@nahb.org, or call Gwyn Donohue at 800-368-5242, ext. 8447.

9.    A new study by NAHB sheds light on the number and geographic diversity of second homes, providing relevant facts in the fight to preserve the mortgage interest deduction for these residences.

Pundits and policymakers who want to trim the mortgage interest deduction (MID) often point to second homes as a primary target, stereotyping these residences as expensive beach houses owned by the very wealthy. But home builders know this characterization is way off the mark. Not only are many vacation homes used as rental properties and therefore NOT eligible for the MID, but many second homes that DO meet the requirements for a deduction are those from which a family has recently moved or homes that are under construction where the eventual owner holds the construction loan. To help set the record straight about where second homes that qualify for the MID are located, NAHB economists analyzed data from the 2009 American Community Survey (the most recent available) to produce a map of the share of each county's housing stock that consists of second homes. The results should surprise some people. Overall, 6.9 million housing units qualify as second homes, or more than 5% of all housing units nationwide. And 28% of the nation's counties have a local housing stock in which at least 10% of the units are second homes. In fact, all but one state (Connecticut) and Washington, D.C., have at least one county in which 10% or more of the housing stock qualifies as second homes eligible for the MID. Such findings suggest that much caution needs to be exercised regarding proposals that would affect second home ownership — because reasons for owning a second home are much more diverse than critics usually provide, and because there are many locations across the country where second homes constitute a significant portion of the total housing stock. Read NAHB's analysis on our Eye on Housing blog at http://eyeonhousing.wordpress.com/, or for more information, contact study author Rob Dietz at 800-368-5242, x8285.

10.  A new study by NAHB Economics expands on an earlier report on state and metropolitan tax rates by providing further breakdowns of property tax rates in smaller geographic areas such as counties, places (political jurisdictions like towns and cities) and county tracts. 

The report, "Property Tax Rates by County and City," presents tables of effective property tax rates in more than 3,100 counties and also discusses factors that help explain differences in those rates. It finds that effective property tax rates often appear to be related to household income, the value of homes in the area, and how recently those homes have been sold. The data reveal wide differences across counties, with median real estate taxes ranging from around $110 per home in several Louisiana parishes to more than $8,000 per home in Hunterdon County, N.J., and in Nassau and Westchester Counties in New York. Similarly, real estate tax rates display a wide range of values, from less than a dollar per $1,000 of value in two Alaska Census areas to around $30 per $1,000 of value in several New York counties. Drilling the data down to the smaller geographic confines of Census "tracts" -- small subdivisions of a county with populations between 2,500 and 8,000 -- the data show that even within counties, effective property tax rates can vary significantly. As expected, a large portion of inter-tract differences can be explained by their regional location, with tracts located in the Midwest, Northeast and Texas paying considerably higher property tax rates per $1,000 of value, compared to tracts in the South and West regions. As the report notes, this is just a reflection of a well-known and long established tradition in which southern states tend to rely less on real estate taxes as a source of government revenue. Much more analysis is included in the report, which is available for free download from HousingEconomics.com. For more information, contact study author Natalia Siniavskaia (800-368-5242, x8441).

NAHB Fall Board Meetings for Associates

Notes from NAHB Associates' Meetings at Fall Board in Milwaukee, 9/8 & 9/9/11

These notes are compiled by Joe Dumstorf and do not represent any opinions of the National Association of Home Builders.

Associate Senior Officer Position:

This has been the HOT topic for the last month.  There was a proposed bylaw amendment that would establish for the first time, an Associate in a new Senior Officer position.  This was to be a non-voting member, but none-the-less a position.  Although this idea was universally accepted, there had been some questions raised in the last 30 days. 

It was decided to table this amendment change and set it up on the agenda for IBS.  The Associate Members Committee was in agreement with this change so that it could be given a little more time to address the questions and to make sure that they had the necessary votes.  In addition, one of the main reasons for the postponement was a Roberts Rule of Order that comes into play IF there is not a quorum at a Board Meeting.  Because Fall board is notoriously the least attended board meeting and that there was some concern having a quorum, everyone decided it to be prudent to postpone the vote. 

Kevin Kelly, Third Vice Chairman made an appearance to state that he is unquestionably in favor of having the new position established.  He was very confident that it would pass at IBS.  Needless to say, Mr. Kelly received a long standing ovation!

Associates' Meeting live streamed on UStream:

Our own John Sizemore's dream of broadcasting our meetings to all of our members took a step towards successful fulfillment this past Friday when the Associates Members Committee meeting was broadcast on UStream.

Although there still needs work on clarity of the picture and just as importantly, a viable sound feed, over 145 members throughout the country viewed the broadcast and the response to the online poll was positive.  When we next broadcast at IBS, we will be using upgraded equipment so we feel good that our issues will again be improved if not eliminated.  Thank you all who participated.  It was good to see the viewer numbers climb during the show.  Hopefully we will not only broadcast the committee meeting, but also the Awards Breakfast so that more of our members will be able to see who the people are that contribute so much on a National basis.  Stay tuned (literally!). 

Register for IBS

It is so very important for you to register for IBS in September.  NAHB's goal is to get 30,000 registrant's and then they can take that number to the vendors to sell space.  Having a strong pre-registration will only help push some vendors who are on the fence, to go ahead and commit. 

One thing that was pointed out to us was that registering this month not only gets you a lot of freebees, it also locks you into the reduced rates on classes.  So if you cannot decide until later what classes you might wish to attend, if you register this month, when you do decide you will be grandfathered September rates for these classes.  No brainer dude!!!

Robin Newhouse reports on NAHB membership

1. 151,000 members at present, down from a high watermark of 256,000 however presently we have a 71% retention rate. 
2. The "Touch Program" is working.  In virtually every case where the Touch Program has been implemented, membership retention is strong.  Please if your local does not know about Touch, contact HBAK as they are implementing it in our state.

NAHB on Facebook and LinkedIn

1. The LinkedIn sights are working very, very well.  National is pleased with the response of Associates on LinkedIn and says that the effort that National has to put forth monitoring LinkedIn is worth it based on the participation.
2. The same cannot be said about Facebook.  Whereas with LinkedIn, there are over 1000 members at least watching the site, there are only 247 participating in Facebook.  National stated that although they are not planning on taking the wall down, it needs to be used more in order for their monitoring time to be justified.  Please "like" the NAHB Associates Facebook page (https://www.facebook.com/pages/NAHB-Associates/194635023883689?ref=pb&sk=wall)

NAHB on Facebook and LinkedIn

     

 Skip Howes, State Rep from Colorado discussed the position of State Reps regarding the Associate Outreach program.  Even though the reps have their own networking plan, they are not at all concerned about the Associates outreach tree being considered as a way to bypass their work.  Instead, he stated that the State Reps are thrilled that the Associates tree gets to many members who would not have the necessary information if it were not in existence.

Associates Advocacy Committee:

Monica Sommerfeldt Lewis, Chairman, reported that the Associates have done a good job signing up to Builder Link, however when there is a call to action, very few respond by forwarding on the information to their representatives.  "Sign up", but then make sure you "Send on".

In addition, Monica was very definite in stating that if your State does not reach its assigned Build-Pac goal, it WILL NOT receive funds from Build-Pac for its use.  The 2012 Club has been successful, because it is not just the $$ donated, but the number of members that our government officials monitor. 

Associates Advocacy Committee

Leadership and Recognition Chairman Dianne Beaton asked us all to continue to push for applications to be sent to National for BEAM.  We have been pushing for this for a long time, and now is our chance to put our money where our mouth is.  Get you BEAM nomination to National by September 30.

November 14 is the due date for Associate of the Year and the Bill Polley Award. 

The Leadership PowerPoint presentation is now totally available.  Please go to NAHB.org to see it.

Happy Associates Appreciation Month.

Customer Expectations: Pride Cometh Before a Fall

Next Post

Previous Post

Customer Expectations: Pride Cometh Before a Fall

Small Business Advice

August 25, 2011

By Robert Brady

Whether you’re selling a product or providing a service, one of the first steps in any business relationship is setting expectations. How you set those expectations can make or break your business relationship.

My Sad Story

A while back I was approached by a client that was looking to improve their online marketing. They had been doing a lot of PPC advertising and weren’t getting the results they wanted. Therefore, they had been getting quotes from numerous Internet marketing agencies for PPC with SEO and social media bundled together. During the process I was told that another agency made the following claim:
“We can get you the same number of conversions on half the spend.”
The reason I learned this was because the client preferred my company, but they wanted to get that half of their spend back. And here is where pride enters the scene.

The Deadliest Sin

In most accounts of the seven deadly sins, pride is the original sin and the most deadly.
Usually, I do not make such bold statements. Perhaps it is my naturally conservative nature or a desire to overdeliver, but I would not have made this type of claim myself. However, I looked at past performance and saw how the other agency had arrived at their claim (there was a lot of spend and a lot of keywords that were not performing). I took the deal without adjusting this expectation.

What Happened?

As you might have guessed from the blog title, I wasn’t able to deliver on the expectation. I did what a good PPC manager should do and plucked out all the best-performing keywords and put them in a shiny new campaign. I used the best ad copy as a baseline and tested new ad copy against it. In theory, it should have worked, but it didn’t.
The client beat me over the head with the expectation over and over. I told them everything I was doing to remedy the problem. I spent hours trying to fix the problem. In the end, I was buried in the grave of unfulfilled expectations.

Setting Proper Expectations

A famous research study by Walter Mischel, a professor of psychology at Stanford, showed that a simple test of delayed gratification was a better predictor of future academic performance than IQ tests. The test? A child was given one marshmallow and told that if he or she could wait until the researcher returned (15 minutes), he or she could have two marshmallows. If they ate the first marshmallow or rang a bell to bring the researcher back early, no second marshmallow.
Expectations are the same way. They may seem like they’re only a small part of the process, but they are powerful predictors of the relationship’s future. Expectations are at the foundation of the relationship. They’re the measuring stick.

What Did I Learn?

Here are a few takeaways I can offer you:

• Know Yourself and Stick to What You Know – If you’re uncomfortable with the initial expectation you’re probably going to be uncomfortable trying to meet it. Save yourself a lot of pain by not letting pride get into the mix.
• Proper Expectations Make Happy Clients/Customers - When people get what they expect, they’re satisfied. If you exceed expectations, they’re ecstatic. Those are the clients that recommend you.
• Own Up to Your Mistakes – If you’ve set expectations too high, reset them as soon as possible. The further along you get, the more trust is lost and the more hard feelings develop. It may cost you the sale, but you have to pay the piper eventually.

About the Author

Robert Brady is the owner and head PPC wizard at Righteous Marketing, a Google AdWord Certified Partner. He can help a small business owner just getting started with Pay-Per-Click (PPC) or a large company that needs to get better results from their PPC management.

Connect with Robert Brady:

• Twitter
• LinkedIn

 

Peer to Peer Fundraising, Part 6

August 21, 2011

Peer to Peer Fundraising: Part 6 "Putting the Pieces Together"

The Peer to Peer Fundraising series can help you start revamping the way you traditionally solicited for PAC dollars. What we need to do now is put together a strategic plan to help you begin, and sustain, the "new" way of fundraising; investment in the PAC. 


Just like a jigsaw puzzle, there will be a clear and defined picture once all the pieces are placed together. Its a jumble until then but the effort makes it worth it. How do we go from a jumble to completion?

Part 6 "Putting the Pieces Together"

First, let's recap by laying the pieces out on the table. Based on what we discussed in previous posts we have;

1. What doesn't work.

2. Political synergy.

3. Why you should care.

4. Common roadblocks.

5. What type of fundraiser is best and the type of member the fundraiser will have their best success securing an investment. 

Now what? 


Step 1 - "PAC Trustee 'buy in.'" In order for you to begin you have to recruit your current PAC trustees. Peer to Peer starts with them and will end with them if they are not part of the process from the beginning. Your PAC Chair will need to dedicate time at a trustee meeting to go over the material in the series of presentations to see what will work and what may not work. 
Note: If the size of your PAC board of trustees is small, maybe non existent, recruit your HBA board of directors. After all, the primary focus of the HBA is advocacy.


Step 2 - "Engage the members." Once the trustees are on board with the material, each trustee needs to be assigned small groups of members, no more than 10 at a time. The members should be invited by the HBA president and PAC chair through personal invitations to the selected members. 


Step 3 - "100% saturation." Continue until entire membership has been contacted. This process should continue until all your members have been invited. If you have members who didn't attend after the first attempt, phone calls need to be made and have them say to you personally they can or can not participate. 


Step 4 - "Direct members." While 100% of your membership is admirable as a goal your actual target should be 100% of your builder members and 100% of the directly impacted associates, such as suppliers, trade contractors and service providers who have the vast majority of the business derived by the success of homes being built (home owner warranty companies and title companies as examples).


Step 5 - "Continuing education." Demonstrate to your investors your advocacy successes and highlight the approaching threats, keep them aware at all times. Out of sight out of mind. Quarterly PAC newsletters or emails detailing their "return on investment" will make your job easier at retaining them as regular PAC investors.


Step 6 - "Start 'em young." New members should have PAC orientation as part of becoming a new member. Added benefit; this also shows the new member the purpose of the HBA from the beginning.


Putting all the jumbled pieces together will ultimately bring the mythical puzzle of PAC investment to the forefront and build stronger, more engaged components to the political synergy I wrote about in part 2 of this series. 

This process sounds time consuming, and it certainly is, but the road to increasing your membership percentage in PAC investments has to start somewhere. This is the reason you need dedicated trustees to have this effort be a success. 


There are some who will "think they know it all." If they do why aren't they as successful as they could be with raising political awareness along with raising dollars? How many trustees can point to the members they brought in to PAC originally and can say that those same members come back year after year because of what they were taught?


The Peer to Peer Fundraising techniques will one day, if it becomes and remains successful for you, replace events to raise those dollars. Those events can enjoy the net profits being utilized for HBA operating. But until that day happens you will probably still need PAC fundraisers. Sometimes they'll need to be educational, most times for the enjoyment of the members. Just remember to keep the FUN in FUNdraising when you plan. We all could use some fun these days.

Submitted by: Michael Kurpiel, CGA, CGP

2011 NAHB Associate Members Committee Chair

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

NOTE: This article is based on a section from The NAHB Associates presentation "Peer to Peer Fundraising." 
This type of fundraising will work on all of your HBA events or fundraising initiatives you may have; you just have the supply the core reason for the fundraiser and demonstrate a value to the potential investor.