Mid-Atlantic Builder January/February 2013

REMODELER AWARDS OF EXCELLENCE

MID-ATLANTIC

Vol. 55 Issue 1 January/February 2013 www.homebuilders.org

Outstanding

Design and Craftsmanship Scan to read this issue online.

22nd Annual Remodeling Award of Excellence Winners Announced

See security & peace of mind in a new light Design assistance, installation, service and maintenance are a snap with BGE Outdoor Lighting.

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BGE Private Area Lighting Program

See our lighting and pole options.

Ask for a copy of our brochure.

Lots of choices — without lots of hassle!

BGE Outdoor Lighting is the area’s leading provider of outdoor lighting service — and the smart choice for your residential or commercial outdoor lighting needs.

With design assistance, installation, service and maintenance, BGE’s Private Area Lighting Program offers the complete package. For more information or to schedule an appointment with a BGE Private Area Lighting account representative, please call 410-470-9446 or visit www.bge.com/outdoorlighting.

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MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2013 www.homebuilders.org

Vintage Security A Dedicated Partner to the Building Industry.

Vintage Security provides innovative technologies to make homes and lifestyles safe and secure through:

“Personal Service is the Vintage Advantage” www.vintagesecurity.com

• Security Systems

• Home Theatre

• Home Automation

• Structured Wiring

• Audio Systems

• Data and Telephone Distribution

Contact Rick Brokaw or Bob Hartwick toll free: 1-877-767-1800 Offices in Jessup, MD and Chantilly, VA

January/February 2013 Vol. 55 Issue 1

MID-ATLANTIC

EDITOR Kristin Josephson Hogle, Editor communications@homebuilders.org

ADVERTISING Chris Baughan, Advertising Sales Manager 410-265-7400, ext. 121 chris@homebuilders.org

DESIGN Heather Winkel, Art Director Alicia Miller, Graphic Designer Kristina Hopkins, Graphic Designer Network Design Group ndg@networkmediapartners.com

HBAM LEGAL COUNSEL Linowes and Blocher

MID-ATLANTIC BUILDER ON THE COVER AND ABOVE Pool House Perfection, Owings Brothers Contracting

RC Awards

The HBAM Remodelers present their 2012 awards for outstanding design and craftsmanship.

22 Fiscal Cliff

The dreaded “fiscal cliff” could have a huge impact on your tax returns. Discover some of the major items in jeopardy.

32 MD Green Designer Show Home

Maryland Green Designer Show Home showcases eco-excellence and custom interior design.

38 ICON Awards

The Home Builders Association of Maryland presented the coveted awards for Builder of the Year, Associate of the Year and Lifetime Achievement and honored retiring Executive Vice President, John Kortecamp.

42 The New American Home

Also 55

Foundation Maryland Community Buidlers’ Foundation

Departments 4 6 50 52 54

President’s Message Events Stats and Facts Government Affairs New Members

Postmaster: Send address changes to Home Builders Association of Maryland, Inc., 6030 Daybreak Circle #A150 PMP 362 Clarksville, MD 21029

ECO BOX Mid-Atlantic Builder text and cover pages are printed on SFI certified Anthem Matte using soy ink.

Pages 27-30 Pull-Out Section MID-ATLANTIC

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is a publication of HBAM Member Services, Inc., a subsidiary of the Home Builders Association of Maryland, Inc., 6030 Daybreak Circle #A150 PMP 362 Clarksville, MD 21029 410-265-7400, www.homebuilders.org.

• The Sustainable Forestry Initiative® program promotes sustainable forest management.

Remodeler A supplement to Mid-Atlantic Builder

The New American Home offers real-world demonstration of the latest concepts in architecture, construction techniques, new products and lifestyle trends.

48 Read it and Weep!!

Don’t let water intrusion ruin your next home.

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MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2013

HBAM Remodelers Council Award of Excellence

Kitchen Remodel under $100,000 Owings Home Services Murray Hill Project

www.homebuilders.org

WE TAKE THE LOAD , OFF. IT S THAT SIMPLE.

For thousands of years, simple machines like the pulley have helped civilizations build structures that would have otherwise been impossible. And since 1984, Builders Mutual has been dedicated to helping builders ease the burden of choosing and managing insurance. We offer straightforward tools like risk management and Builders University to help protect your bottom line. If you’re in construction, the insurance choice is simple.

Ask your agent about us. Or read more at buildersmutual.com.

2013 HBAM Leadership Executive Committee Scott Armiger President

Russell Dickens President Elect

president’smessage

Tom Baum First Vice President

Lisa Junker Associate Vice President

Jonas Jacobson Secretary

A Look at the Year Ahead

Kimberly Palmisano Treasurer

Rod Hart

The elections are over, the holidays are wrapped up and all of us are now focused on our businesses for the first quarter of 2013.

From everything I have read, we should be well on our way out of the “Great Recession”. Builder sales are on an upswing and the apartment market is strong. With this said, it does not mean the road to recovery is paved with gold bricks. We now have to work harder and smarter with a much leaner staff. I know that everyone in the building industry is proud of what they do…and you should be. I have been enamored with development and construction ever since I was a kid when my dad would take me to visit jobsites on the weekend. We would strap on the boots, grab the dog and hop in the old Ford Bronco. There was nothing like four-wheeling on a jobsite as a teenager.

Back then, I was living for the moment. Today, I am blessed to be a part of a company that my father started 33 years ago. What I did not realize many years ago, was that we were building relationships. While it is very rewarding to see a development project through to completion and provide much needed housing, what matters most are the strong business relationships that we make along the way. This is where HBAM plays an important role.

Since I first got involved back in 2006, as Howard County Chapter President, I have met some of the smartest and most talented people in the industry. I am happy to do business with so many friends in the building business.

Most of us in this industry know how important home building is to the economy.

I like to remind those who don’t know…

Our industry is a major job creator and tax revenue generator. One house equals three 4

(3) full time jobs and roughly $90,000 in revenue. During the boom times we were building over 1.3 Million homes per year nationwide and roughly 5,000 – 6,000 here in the Baltimore metro area…. These numbers are real, and we do make a difference in any economy!

A great place to gauge the impact of our industry is Builder Mart. This year there is a new Builder Mart in town! A new floor plan, new education and new people will make this one of the best shows in a long time. Don’t miss the regions biggest oneday trade show and HBAM’s biggest event of the year. Bring an associate to the show and sign them up…It could be the beginning of something great. Builder Mart and the many other events and educational opportunities that HBAM hosts throughout the year will help you make your important business relationships stronger.

I am very much honored to serve as your President for 2013. Please do not hesitate to call on me or any HBAM staff member. We want to hear from you and welcome your involvement at any level. Your ideas, suggestions and participation are what makes this association thrive. Remember…HBAM is “your” club; together we can make it a tremendously successful year.

Sincerely,

Immediate Past President

Chapter Presidents

David Murphy Baltimore County Evan Gilligan Anne Arundel County Paul Mueller Carroll County Russ Robertson Baltimore City Jeremy Rutter Howard County Dan Whitehurst Upper Chesapeake

Council Presidents Timothy Bishop

Land Development Council

Katrina Bartos Sales and Marketing Council

Joseph Smith, CGR, CAPS, CGP HBAM Remodelers

William Zahler Maryland Residential Green Building Council

Board of Directors Tim Nichols Robb Aumiller Mark Bennett Steve Breeden Mike Breen Ron Carstens Patrick Costello Sean Davis Brenda Desjardins Tim Ellis, LEED, AP, CPE, CGR, CGP Joe Gregory

Frank Hertsch Cindy Huntzberry Jonas Jacobson Steve James Donald Lynch Jr., CGR, CAPS Sandy Marenberg James Mathias Michael McCann Tim Morris Dan Murtaugh Jeff Ott

Alternate Directors Jeff Aleshire Lou Baker Mark Giganti Marka Guindon Jay Hergenroeder

L. Scott Armiger 2013 HBAM President

Joe Hikel Tim Naughton Dennis O’Neil Cindy Plackmeyer Leslie Rosenthal

Ex Officio Members Jack Orrick Howard Perlow Chris Rachuba

MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2013 www.homebuilders.org

Events

CALL 410-265-7400 for information on registration for our events or visit www.homebuilders.org.

Key Connections 2013 Make all your sales calls in one day!

February 21, 2013 Martin’s West

2013 International Builders Show January 22-24, 2013 HBAM Schedule at IBS

Breakfast at the Wynn Hotel Wednesday January 23rd. A reception will be held at the Wynn Hotel on Thursday January 24th from 6pm-8pm. These events are free to HBAM members thanks to the generous support of the following companies: • CB Flooring, LLC • Clark Turner Companies • Colbert Matz Rosenfelt, Inc. • Continental Title Group • Forty West Builders, Inc. • Goodier Baker Homes • Goodier Builders, Inc. • K aine Homes • L akeside Title Company • Marenberg Enterprises • Morris & Ritchie Associates, Inc. • Professional Warrenty Corp.

• Residential Title and Escrow • Sandy Spring Bank • Shelter Systems Limited • SunTrust Mortgage, Inc. • T.W. Ellis, LLC • The McHenry Companies • Wells Fargo Home Mortgage • Williamsburg Homes • Zahler Construction & Development

Join HBAM for their signature reverse trade show event. This year we are changing things up with a live auction featuring some of our builder members. Make sure you are there to BID ON A BUILDER. We continue to guarantee every attendee 3 minutes with every builder that participates. Don’t miss out on this opportunity to visit with your current builder, remodeler and developer clients while also seeking out new customers.

Builder Mart 2013!

MAX Awards 2013 May 16, 2013 Valley Mansion

Enter the MAX Awards and have you company recognized for outstanding marketing efforts in 2012. Did you know that the MAX Awards does not only recognize hard work from HBAM builders? There is a category for every company at HBAM to enter. If you win, you will be promoted on www.homebuilders.org as well as in MidAtlantic Builder Magazine and other area media outlets.

March 20, 2013 www.buildermart.org

There’s a new builder mart in town. New floorplan, new education, new people! Be sure to join HBAM at the regions biggest one day trade show for the industry. As the market rebounds make sure you don’t miss out on new business opportunities and reserve a booth today.

Call Chris Baughan at 410-265-7400, ext. 121 or chris@homebuilders.org to reserve your booth.

Mayor Stephanie Rawlings-Blake will speak from 8:30am-9am on her vacants to values program.

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MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2013 www.homebuilders.org

Everyone loves a café.

Now, everyone can have one.

GE Café™ is GE’s first new line of appliances in 15 years, and it’s an exciting new sales opportunity. With stainless steel exterior and robust styling, builders and new home buyers will want to make it the centerpiece of their new home. For remodelers and their customers, the GE Café will easily transform any kitchen with restaurant-inspired design. At long last, everyone can afford to have an inviting café – right at home. www.geappliances.com/café For additional information on GE Appliances call GE Area Sales Manager Lora Williams at 410.679.0486.

GE Café ™

BEFORE

T

he Remodelers Council of the Home Builders Association of Maryland, the HBAM Remodelers, announced the winners of its 22nd annual Remodeling Award of Excellence competition on Thursday, November 15th at the Towson Golf and Country Club. This program serves to recognize excellence in remodeling design and craftsmanship, to create a greater public interest in the remodeling industry and to recognize outstanding contributions by individuals and companies in the remodeling industry.

An evaluation team that consisted of remodeling contractors from around the Baltimore Metropolitan area rated all entries. The criteria used to judge the entries included: quality of construction, degree of difficulty, value and cost effectiveness, unique and creative design approach and sensitivity to existing structure.

Kitchen Addition over $500,000 Delbert Adams Construction Group Homeland Remodel Baltimore, MD

Remodelers Present Awards for

Outstanding Design and Craftsmanship www.homebuilders.org

JANUARY/FEBRUARY 2013 MID-ATLANTIC BUILDER

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AFTER BEFORE Bathroom Remodel over $75,000 Woodvisions Construction Woodlyn Bath Annapolis, MD

Bathroom Remodel $45,000–$65,000 Greenleaf Remodeling Mt. Washington Master Bath Baltimore, MD 10

MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2013 www.homebuilders.org

Commercial Remodel under $100,000 bluehouse architecture Salon Method Ruxton, MD

Bathroom Remodel under $30,000 Starcom Design Build Levin Bathroom Marriottsville, MD

BEFORE AFTER

www.homebuilders.org

JANUARY/FEBRUARY 2013 MID-ATLANTIC BUILDER

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AFTER

Accessible Living Under $100,000 Owings Home Services Accessible Bathroom Baltimore, MD

BEFORE

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Accessible Living Under $100,000 Lampost Remodeling Jacoby Elevator Severna Park, MD

MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2013 www.homebuilders.org

AFTER

Bathroom Remodel $45,000–$65,000 Robert Kutner Associates, Inc. Schaefer Master Bath Lutherville, MD

BEFORE

BEFORE

AFTER

www.homebuilders.org

Bathroom Remodel $45,000–$65,000 T.W. Ellis, LLC Beddow Project Street, MD JANUARY/FEBRUARY 2013 MID-ATLANTIC BUILDER

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AFTER

Detached Structures $100,000–$200,000 Lynch Construction, Inc. Willow Spring Pool Pavililon Bel Air, MD

BEFORE

GREEN Remodel $200,000–$300,000 T.W. Ellis, LLC Park Heights Project Park Heights, MD

Exterior Remodel under $200,000 Fick Bros Roofing & Exterior Remodeling, Inc. Rosenberg Residence Stevenson, MD 14

MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2013 www.homebuilders.org

Kitchen Remodel over $100,000 Wood Builders & Collaborative Tracey’s Playground Spencerville, MD

BEFORE

Whole House $750,000 & Over ALC Contractors, LLC Silver Ellicott City, MD

AFTER

www.homebuilders.org

JANUARY/FEBRUARY 2013 MID-ATLANTIC BUILDER

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Outdoor Living Over $200,000 Owings Brothers Contracting Pool House Perfection Reisterstown, MD

BEFORE

AFTER

BEFORE

Kitchen Addition under $500,000 Greenleaf Remodeling Monkton Kitchen Addition Monkton, MD

AFTER

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MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2013 www.homebuilders.org

Kitchen Remodel under $70,000 Starcom Design Build Aon/Contesta Kitchen Baltimore, MD

Kitchen Remodel under $70,000 ALC Contractors, LLC Torgrimson Ellicott City, MD

BEFORE AFTER

www.homebuilders.org

JANUARY/FEBRUARY 2013 MID-ATLANTIC BUILDER

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Kitchen Remodel under $100,000 Greenleaf Remodeling Bolton Hill Kitchen Baltimore, MD

BEFORE

Kitchen Remodel under $100,000 Owings Home Services Murray Hill Baltimore, MD

AFTER

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MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2013 www.homebuilders.org

Other $250,000 & Under Owings Brothers Contracting Bellemore Sunroom Addition Baltimore, MD

BEFORE

AFTER

BEFORE

Other $250,000 & Over Plumb Construction Company, Inc. Brayton Residence Monkton, MD

AFTER

www.homebuilders.org

JANUARY/FEBRUARY 2013 MID-ATLANTIC BUILDER

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AFTER

Outdoor Living Under $200,000 Delbert Adams Construction Group Guilford Porch Addition Baltimore, MD

BEFORE

Outdoor Living Under $200,000 T.W. Ellis, LLC Hammett Project Phoenix, MD 20

MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2013 www.homebuilders.org

Whole House $600,000 & Under Emory Construction Redford Residence Annapolis, MD

Thank you to the event sponsors BGE Smart Energy Savers Chesapeake Home IWIF John H. Myers K.C. Company, Inc. Reico Saratoga Insurance Brokers Susquehanna Bank TW Perry The Washington Savings Bank AFTER

Whole House $600,000 & Under Doug Pruett Construction Arnold Waterfront Arnold, MD

BEFORE

www.homebuilders.org

JANUARY/FEBRUARY 2013 MID-ATLANTIC BUILDER

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Did You Survive the Fiscal Cliff?

A Look at the Expiring Tax Cuts

By David A. Landman, CPA, CFE

A

s this article goes to print, the dreaded “fiscal cliff” looms precariously ahead. This means that by the time you read this, Americans have either fallen over the cliff or were saved

by Congress. This is because many of the Bush-era tax cuts were set to expire by the end of 2012. As this article goes to print it is not known whether Congress will let these cuts expire or whether they will extend some or all of these tax cuts. If the tax cuts are allowed to expire, individuals will face higher tax rates on their income which included capital gains and dividends. Corporations and estates taxes will be higher as well. These expiring tax benefits can have a huge impact on your tax returns and hence the well known expression “fiscal cliff” that has been the topic of discussion since the elections. The following are some of the major items in jeopardy of which you should be aware. Please consult with your tax advisor to determine whether or not congress has extended any of these cuts.

Alternative Minimum Tax

Personal Exemptions and Itemized Deductions

You probably have heard about the alternative minimum tax. Perhaps your tax preparer has mentioned that you are among the lucky taxpayers to pay it. AMT was enacted in the 1980’s as a separate method of determining income tax, and was devised to insure that at least a minimum amount of tax is paid for high income corporate and individual taxpayers as well as estates and trusts. AMT is supposed to insure that these taxpayers not get away with paying no income tax completely by claiming large deductions, losses or credits and thereby insures that taxpayers pay at least a minimum tax.

In other words, AMT was intended to cover high income taxpayers in order that they pay their fair share of income taxes.

The long standing issue with AMT is that it was never indexed for inflation as is done for regular income tax purposes. Therefore income which was considered wealthy in the early 80’s is now considered middle class, and therefore more and more middle class taxpayers are facing the dreaded alternative minimum tax.

AMT is separately calculated by taking your taxable income and adding back certain deductions and credits. While there is a plethora of disallowed deductions for alternative minimum tax purposes, the common ones that affect most taxpayers are the deduction for state and local income taxes, and the deduction for employee business expenses. Once the alternative minimum taxable income is calculated the taxpayer can then subtract and exemption of $74,450 if filing jointly, or $48,450 if filing as a single individual. The remaining balance after exemption is then multiplied by 26 percent (for up to $175,000 income) or 28 percent (for $175,000 income or over). The result is the alternative minimum tax and is compared to the ordinary income tax previously calculated. The higher of the two amounts becomes the taxpayer’s income tax.

The big problem that taxpayers are facing is that the $74,450 ($48,450 for singles) exemption expired at the end of 2011, and absent further legislation the exemption amounts for individuals will revert back to the old exemption of $45,000 for married filing joint and $33,750 for single individuals. This means that any married couple with over $45,000 of income may be subject to AMT. According to Congressional research, an estimated 26 million Americans will face additional taxes due to this lower exemption if congress does not enact a fix.

The Bush-era tax cuts included removing income limits on the overall amount of itemized deductions that a taxpayer can claim.

After 2012 the limit is set to be restored. Therefore higher income taxpayers will not receive the full benefit of their itemized deductions which will be reduced by inflationary thresholds. In addition, while the Bush tax cuts included no income restrictions on the amount of personal exemptions that a taxpayer could claim, after 2012 potentially, there could be a limit to the amount of personal exemptions higher-income taxpayers will be entitled to.

Income Tax Rates President Bush lowered income tax rates and created a new 10 percent lower tax bracket. Tax rates range from 10 percent to a top rate of 35 percent. However, at the end of 2012 these lower rates expire and revert back to their previous percentages with the lowest rate being 15 percent and the highest rate at 39.6 percent. Table one shows a comparison between the expiring rates and the new rates.

The Bush tax cuts also included a maximum rate of 15 percent on capital gains and dividends. This rate also expired at the end of 2012 and is set to rise to 20 percent on capital gains while dividends may be taxed at ordinary income tax rates.

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Children and Families While many Americans enjoyed a $1,000 per child tax credit for children under 17 years of age, the child tax credit was also partially refundable based on certain formulas and the families earnings.

This benefit expired at the end of 2012 and the child credit is now potentially set to be $500 per eligible child and the tax credit will be non-refundable for most families. Remember that a tax credit is a subtraction from your tax which means that if the $1,000 benefit is not extended, your income tax will automatically go up by $500 for every child you have under 17 years of age. This alone can be a significant tax increase for many taxpayers!

Dependent Care The dependent care credit was equal to 35 percent of the first $3,000 of eligible expenses for one dependent and $6,000 of expenses for two or more eligible dependents. This 35 percent credit was reduced for incomes over $15,000. After 2012, the dependent care credit will potentially be equal to 30 percent of the first $2,400 of eligible expenses for one dependent and $4,800 for two or more qualifying dependents. The 30 percent credit rate will be reduced for incomes above $10,000.

Marriage Penalty The standard deduction for married couples was 200 percent of the deduction for singles. However after 2012 the deduction for married couples is supposed to be only 167 percent of the deduction for singles.

In addition while the earned income tax credit was higher for married taxpayers, after 2012 the earned income tax benefit for married taxpayers will be the same as for unmarried taxpayers.

Education Benefits Certain employer provided educational assistance up to $5,250 was excluded from income and not subject to income tax. However after 2012 this entire provision expired. In addition the student loan interest deduction of up to $2,500 of interest expense was allowed to be deducted from gross income. However after 2012 this deduction can only be claimed by eligible taxpayers for the first five years of interest payments.

MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2013 www.homebuilders.org

Taxable Income Range

Bush-era Tax Rates (Prior to expiration)

Old Rates Reinstated (If allowed by Congress)

$0 - $17,800

10%

15%

$17,801 - $60,350

15%

15%

$60,351 - $72,300

15%

28%

$72,301 - $145,900

25%

28%

$145,901 - $222,300

28%

31%

$222,301 - $397,000

33%

36%

Over $397,000

35%

39.6%

Table 1: A Comparison of 2013 Income Tax Brackets (Based on Married Filing Jointly)

Businesses

Charitable Contributions

Several temporary tax provisions affecting businesses either expired at the end of 2011 or at the end of 2012. One popular deduction was bonus depreciation, whereby businesses were permitted to expense (write off) 100 percent of certain capitalized assets such as furniture or equipment. This changed to 50 percent for 2012 and was set to expire at the end of 2012. Without congressional legislation, there will be no bonus depreciation beyond 2012. Furthermore for those not eligible for bonus depreciation, businesses could write off up to $500,000 of certain capitalized equipment and furniture known as “Section 179.” After 2012 if Congress does nothing, the $500,000 allowance is reduced to the very old amount of $25,000 (this is not a misprint)!

Besides depreciation changes, the research and experimentation credit that many companies enjoyed is now history after 2012.

Again, unless Congress extends the credit beyond 2012, there will be no research and experimentation credit available after 2012.

The increased deduction for qualified leasehold improvements and restaurant improvements also expired at the end of 2012

Several temporary provisions which were designed to promote charitable giving have expired at the end of 2011. Included in this was the allowance for tax free distributions from IRS’s for the purposes of charitable donations. In addition the enhanced charitable deduction for corporate contributions of computer equipment for education and enhanced charitable deductions for the contributions of food inventory have also expired. n

www.homebuilders.org

While a number of the above items will impact the reader, please bear in mind that by the time you read this article all of the above tax benefits were either left to die or were extended by Congress. Since the feeling is that Congress will not let all of the above die, be sure to check with your tax advisor to see which of the above provisions were extended. Hopefully the answer will be “all of them” and hopefully the term “fiscal cliff” will not be a traumatic term.

David Landman is a CPA and senior manager with Gorfine, Schiller & Gardyn, PA in Owings Mills, Maryland. David provides a full range of accounting and consulting services to individuals and businesses, and advises and assists owners in minimizing their risks. He can be reached at 410-517-6823, or by e-mail at dlandman@gsg-cpa.com.

JANUARY/FEBRUARY 2013 MID-ATLANTIC BUILDER

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Maryland Community Builders’ Foundation Join us as we come together to change lives.

We need your help.

The Maryland Community Builders’ Foundation, the charitable arm of the Home Builders Association of Maryland, was formed to promote shelter related activities for those less fortunate throughout the Baltimore region. The Foundation focuses on ‘sticks and bricks’ projects that provide shelter or shelter improvements for needy families.

Our strategy is to provide shelterrelated charitable services in the region by calling upon HBAM members for donations of labor, materials and funds. Won’t you help us help our communities?

Visit our website today.

It’s easy to get involved: • Donate Time and/or Materials • Request Assistance • Share Your Projects with Us and get PR • View our Latest Projects

Don’t stand on the sidelines—Get involved today www.buildingindustriesfoundation.org

Mid-Atlantic

Remodeler A supplement to Mid-Atlantic Builder

HBAM Remodelers Council Award of Excellence Kitchen Remodel under $100,000 Owings Home Services Murray Hill Project

Mid-Atlantic

Remodeler

A supplement to Mid-Atlantic Builder

2013 HBAM Remodelers Tim Ellis, LEED AP, CPE, CGR, CGP President

Board of Directors Nicole Bliss Guy Caiazzo Taylor Classen Cheryl Crowther Arif Durani Steve Gilman Bill James Danny Kalmus Doug Kelly Jim Long Donald Lynch, Jr.

Ryan McGinn Chris Moline Bob Myers Michael Owings Jennifer Purdy Bill Rauser Joe Smith Gregory Wall Bob Weickgenannt Howard Warfield

PAST Presidents Bill Rauser John Martindale Dave Chmura Michael Owings

Donald F. Lynch, Jr. Guy Caiazzo Taylor Classen Joe Smith

2012 SPONSORs Members do business with members Presenting Members

before&after Owings Home Services Murray Hill Project These home owners purchased their home due to its classic features and design, though it was in need of updating. The original flow of the kitchen and access to the adjoining family room were not suited for a modern family. An arched opening was created in an existing bearing wall to the family room and the existing arched door into the kitchen was repurposed for the garage entry. The finished product was the blend of the new with the old and remaining seamless and functional. n

ChesapeakeHome Magazine

Why join HBAM Remodelers?

KC Company/Pella Windows

John H. Myers & Son

Susquehanna Bank

Saratoga Insurance

T.W. Perry

Member Benefits HBAM Remodelers offers many benefits to its members. Remodelers benefit from a variety of educational, mentoring and networking opportunities. In addition, the HBAM Remodeler’s serves to improve the quality of the industry and its members through these programs. By promoting certification programs to consumers, members of the council are sought after for their strong professional and ethical principles.

News & Information

Ready to Join? www.mdremodelers.org The fee is $65.00 per year.

For additional information on the HBAM Remodelers Council, contact Felicia Fleming at felicia@homebuilders.org or 410-265-7400, ext. 115.

National: Members of the Council receive a free subscription to Professional Remodeler magazine. Each issue focuses on practical business insights from the country’s leading remodelers. Members also receive NAHB Renews, a monthly e-newsletter about national news that affects our industry.

Regional: Members of the Council receive a free subscription to ChesapeakeHome Magazine and are offered special advertising opportunities designed to help them reach upscale homeowners.

Local: The council is featured in each issue of HomeFront, HBAM’s monthly enewsletter to promote its members, programs and events. Mid-Atlantic Remodeler is included in each issue of Mid-Atlantic Builder magazine.

Contact Felicia Fleming at 410-265-7400, ext. 115 about 2011 Sponsorship Opportunities

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MID-ATLANTIC REMODELER A Supplement to Mid-Atlantic Builder JANUARY/FEBRUARY 2013 www.homebuilders.org

president’smessage

events

Going Green Gradually

April 19th Mix and Mingle

June 11th It used to be that making homes more energy efficient and environmentally conscious was a major overhaul – like switching to a strictly locally grown and organic plant-based diet. In the past,

building a green home often meant starting from the ground up with brand new construction. Recently, though, that’s begun to change: creating a home that meets green standards doesn’t have to happen all at once in the way that we oftentimes expect our shopping to at one-stop shop big-box stores.

More and more, contractors and remodelers are beginning to see homeowners set down stipulations requiring newly constructed homes to rank on the Green Building Rating System, or to at least take energy efficiency into consideration.

In 2012, the National Green Building Standard updated its certification approach, allowing existing homeowners to participate in the green certifying process. With the new regulations, homeowners and contractors now have the option to be accredited for the smaller projects they take on – like remodeling a kitchen or basement. This makes it possible to be recognized for going green gradually, a far more affordable and less intimidating way to create a home that is not only environmentally conscious, but that will also save homeowners money in the long run. According to the Environmental Protection Agency (EPA), “well-designed, constructed, operated and maintained green buildings can have many benefits, including durability; reduced costs for energy, water, operations and maintenance; improved occupant health and productivity; and the potential for greater occupant satisfaction than standard developments.”

What does this mean for contractors and remodelers? We must be prepared to have conversations with homeowners about how to incorporate green and energy efficient elements into their homes. This is not only because there will be a demand amongst homeowners as greening becomes a growing trend, but also because as industry experts, we shouldn’t

www.homebuilders.org

hesitate to promote the benefits of going green – which means we have to be knowledgeable about what environmentally conscious buildings can offer homeowners – now and in the future.

As the industry expects a fivefold increase from 2011 to 2016 in green construction, with these environmentally mindful homes making up 29-38 percent of the market share, contractors must be quick to adapt to the growing call to green. For smaller remodeling projects and large renovations alike, contractors should assist homeowners in choosing energy efficient appliances, countertops made of recycled materials, and other design features that meet green code. We must think outside the box home so to speak, suggesting less commonly thought of green practices. This might include implementing projects like cool roof systems and checking home insulation with infrared cameras before installing new exterior siding – both of which will help seal homes from outdoor elements.

Whatever the project, contractors, remodelers, and homeowners alike should seize opportunities to make improvements in three essential categories: energy efficiency, indoor air quality and water usage.

As energy costs continue to rise and operating homes becomes a more costly endeavor year after year – the National Association of Builders estimates that householders spend an average of $5,464 a year on operating expenses – greening homes will prove profitable for builders, while ultimately saving more money for homeowners who will see a return on their investment early on. That means going green leaves more green in everyone’s wallet – and who can complain about that?

General Membership Meeting

October 8th General Membership Meeting

November 14th Award of Excellence

Tim Ellis HBAM Remodelers President

JANUARY/FEBRUARY 2013 MID-ATLANTIC REMODELER A Supplement to Mid-Atlantic Builder

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The Maryland Residential Green Building Council is the state’s first residential green building program to certify local builders, remodelers and developers using the ANSI certified National Green Building Standard. As the premier provider of information and resources related to green buildings, the MRGBC serves as a central hub for consumers going “green”.

The MRGBC educates decision makers on the latest green building principals, trends and technologies, advocates before local elected officials for increased incentives for green buildings, and promotes “green” products through extensive marketing, sales training and special events for consumers.

Join the council today by visiting www.GreenHomeBuilder.org.

www.homebuilders.org

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Maryland Green Designer Show Home Eco-friendly home benefits local charities

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MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2013 www.homebuilders.org

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he Maryland Green Designer Show Home in Gambrills, Maryland was a concept brought to fruition by Michael Baldwin and his staff at Baldwin Homes, Inc. This project, started in April 2012, showcases not only the eco-excellence that Baldwin Homes creates, but also their partnerships with unique landscape and interior designers throughout the Washington, D.C, metropolitan area.

This Eco-Designer show home welcomed visitors for tours through November of 2012. Profits from the home’s tour tickets, private events and the eventual sale of the home will benefit the local charities, Hospice of the Chesapeake and Make-A-Wish® Mid-Atlantic.

Tour-goers were wowed with the magnificent design by Purple Cherry Architects and the state of the art, eco-systems employed within this 7,000 square foot home; noting the impeccable designs within the 23 different spaces lead by designer Tim McDonough of TM Designs and completed by 9 of the area’s leading interior designers.

“We’re thrilled with how this home turned out and we could not have done it without the support from many of our sponsors.

We are thankful for the community support and are pleased to showcase what is possible not only in the future of building but to support two great charities.” explained Mike Baldwin, president of Baldwin Homes, Inc. Additionally, Chevrolet was a proud supporter of the Maryland Green Designer Show Home in its inaugural year. To demonstrate Chevrolet’s commitment to eco-excellence, the 2013 Volt was on display for the showcase.

Visit www.mdgreenshowhome.com for information on the home and to find out more about the designers involved in the project. www.homebuilders.org

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Green Features In The Home 1. V egetated Swales- An amenity to the community, these man made swales are designed to help the management of the storm water.

2. R ecycled Asphalt- 30% post-industrial recycled content asphalt that is manufactured locally within 5 miles of the job-site.

3. L ow Impact Irrigation System- Designed by an EPA Water Sense Certified Partner to use as little water as possible.

4. N ative Landscaping- Species that originate or occur naturally in Anne Arundel County.

5. E co-Friendly Pavers- Permeable pavers that will allow runoff to drain back into the ground naturally.

6. D ow Structurally Insulated Sheathing- 1/2” Structurally insulated sheathing with an R3 insulation value which will help reduce thermal bridging.

7. C ertainteed Fiber Cement Siding and Trim- An environmentally friendly, recycled content product; that has exceptional curb appeal and durability.

8. E nvironmental Stone Manufactured Stone- A man made product that adds another layer of insulation from the exterior weather elements.

9. 12” Roof Overhangs- A standard on all Baldwin built homes, the overhangs help protect and shade the home from the elements.

10. C ertainteed 30 Year Roof Shingles- Made of pre- and post- consumer recycled products with a long life cycle.

11. H anover Pavers- Besides adding a decorative element to the rear of the house, the pavers are light in color which help with the heat island effect. (The amount of light reflected or absorbed in a material) 12. R ain Barrels- Utilized to help collect the excess rainwater from impervious areas, such as the roof so it can be reused for watering the garden, etc.

Lutron RadioRA® 2 Lighting Control System

13. B urried Cistern- Cisterns are often built to catch and store rainwater. This cistern will help offset the water needed for the irrigation system as it captures the rain water from the houses gutters.

14. T hird Party Performance Testing- Required to verify the builder is in compliance with green programs, inspections are done at Framing and house completion.

15. Lutron RadioRA® 2 Lighting Control System- A wireless lighting control system makes it easy to manage your homes lighting to maximize savings.

16. Pella Low E Windows and Doors- Through the use of a the lowe (low-emissivity) coating, homeowners will be more comfortable home, and save on their energy bills.

17. Pella Sun Defense Windows on South Facing WindowsThrough the use of additional glazing and argon gas the windows on the south side of the home will have additional insulation to help prevent the transfer of heat.

18. F uture Solar Chase- As solar becomes more affordable we have installed a chase in this home to allow the homeowners to install photovoltaics.

19. Beam Central Vacuum System- A central vacuum system has been installed to improve the indoor air quality of this home.

20. Duct work is Metal Trunk Lines in Conditioned Space- All the homes duct work is enclosed within the homes conditioned space for increased energy efficiency.

21. KCMA Certified Decora Cabinets- Kitchen Cabinet Manufactures Association monitors the Performance & Construction Standards for Kitchen and Vanity Cabinets.

22. E CO™ by Cosentino Countertops- A durable surface made of 75% recycled content composed of post-industrial or post-consumer materials and is bound by an environmentally friendly resin which comes in part from corn oil.

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4

Native Landscaping

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MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2013 www.homebuilders.org

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KCMA Certified Decorate Cabinets

23. R ecycled Ceramic Tile- The ceramic tile installed in this homes kitchen has been made with recycled content.

24. K itchen and Garage Recycling Center- A double trash can has been included in the kitchen. Larger recycling bins have also been placed in the garage for easy use.

25. B osch Energy Star Appliances- The dishwasher and Refrigerator are Energy Star, helping to save up to 25% on water and energy conservation.

26. F SC Certified Lumber- (Forest Stewardship Council) Lumber that has been responsibly managed, harvested, milled from the supplier to the end user.

27. W eaver Precast Panelized Construction- The exterior walls were designed and built in a factory from concrete, where there were pre-insulated and studded providing an Insulation Value of R-21.3. They were trucked to the site and assembled on-site.

28. R ecliamed Wood Built-ins- The wood to make the built-ins was purchased locally and was reclaimed from a factory in Baltimore.

29. R ecycled Drywall- Made of 99% pre- and post- consumer recycled content and made locally within 300 mile of the job-site.

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30. L ow VOC Drywall Mud- The mud used is environmentally friendly as it is a low voc, low odor, water based adhesive.

31. Progress Energy Star Light Fixtures and Ceiling Fans- All the decorative light fixtures and ceiling fans in this home are using Compact Fluorescent Light (CFL’s) bulbs providing cost savings for the homeowner.

32. CFL Light Bulbs- CFL’s generate about 75% less heat, have a longer bulb life, and most last around 10,000 hours, providing great energy savings.

33. G as Fireplaces- All the fireplaces in this home are sealed gas fireplaces to help promote a healthier indoor air quality.

34. M irabelle Low Flow Shower Heads and Faucets- Low flow faucets typically use about 20% less water, with equal or superior performance.

35. Uponor Plumbing- Cross-Linked Polyethylene pipes are used for the general supply lines of the home, allowing for fewer fittings, more flexibility, and reduced heat transfer.

36. Shaw Recyclable Carpet- Made of Nylon 6, a recyclable carpet fiber. Carpets made from recyclable carpet fiber are capable of being returned to carpet production.

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Sherwin Williams Emerald Zero VOC Interior and Exterior Paint

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Marmoleum Flooring

37. G reen Guard Pad- The Mohawk bonded pad installed throughout is made from approximately 90% post-industrial recycled material.

38. M irabelle Low Flush Toilets- All the bathrooms are equipped with low flush toilets to help with water conservation, 1.1 gallons or less per flush.

39. Energy Star Washer- Qualified washing machines will save homeowners on utility bills, while reducing their amount of water usage per load.

40. Marmoleum Flooring- Marmoleum is a natural product made primarily from renewable resources, including linseed oil, wood flour, and pine rosins.

41. Carbon Monoxide Detectors- CO detectors are centrally located outside each separate sleeping area as well as in any room adjacent to a garage.

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MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2013 www.homebuilders.org

42. E co Friendly Wallpaper- The wall coverings are made of natural, durable, non pvc materials using low VOC, water based inks.

43. E CO™ by Cosentino Bath Countertops- A durable surface made of 75% recycled content composed of post-industrial or post-consumer materials and is bound by an environmentally friendly resin which comes in part from corn oil.

44. V elux Sun Tunnel– A flexible tunnel like skylight that can add natural light to any dark space.

45. P roBuild FSC Certified Lumber and Roof Trusses- The floor joists and roof trusses were designed, built and assembled in a factory, where waste is minimized.

46. Sherwin Williams Emerald Zero VOC Interior and Exterior PaintThese breakthrough products are zero VOC - even after colorants are added. Emerald is break-through innovation with best-in-class performance and the ultimate in environmental responsibility.

47. B att Insulation- The additional R-15 Batt insulation installed in the exterior walls is Formaldehyde-free™ fiber glass insulation which promotes better indoor air quality and greater energy efficiency.

48. V elux Skylights- Energy Star Skylights reduce the need for air conditioning and improve indoor air quality.

49. F oam Insulation- Open Cell foam insulation has been installed to fill the entire wall cavity, eliminating thermal bridging and air leakage thus saving up to 50% on yearly heating and cooling costs.

50. Energy Star Air Sealing- As part of all the green programs, air sealing is required to seal all the penetrations and potential leak points within the home, virtually eliminating air infiltration.

51. P rogress Led Lights- Light emitting diodes (LED) are rated for at least 35,000 hours in standard residential use, which is approximately 20 years with 4 to 5 hours of usage per day.

52. Masland Carpet- Reusing material is another way to utilize products. Masland provided us the carpet for the bonus room as it was a sample run that would have other wise been sent to the dump.

We were able to use it in the bonus room and theater room.

53. R ecycled Cabinets- A great source for reusable material is Second Chance in Baltimore. We purchased these cabinets and were able to use them for the mudroom.

54. B amboo Cabinets- EcoFriendly Cabinets that are made with formaldehyde free adhesives and waterborne finishes for a healthier home and air quality.

55. E CO™ by Cosentino Bath Countertops- A durable surface made of 75% recycled content composed of post-industrial or post-consumer materials and is bound by an environmentally friendly resin which comes in part from corn oil.

56. V elux Solar Hot Water- Solar water heating is a cost effective, renewable energy solution. VELUX solar water heating systems give you the benefits of solar water heating, in an aesthetically pleasing, quality design.

57. A mana 18 Seer Heat Pump- The heatpump utilizes a 18 seer variable speed air handler and 2 stage heat pump making it less expensive to operate and providing a more consistent comfortable home.

www.homebuilders.org

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Shaw Recyclable Carpet

Eco Friendly Wallpaper

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58. M erv 16 Filter- These pleated air filters are among the top performers in the heating, ventilation and air conditioning industry.

59. Energy Recovery Ventilator- An energy recovery ventilator (ERV) is a type of mechanical equipment that features a heat exchanger combined with a ventilation system for providing controlled ventilation into a building allowing for a healthier home.

60. Weaver Precast Foundations- One of the most innovative, watertight and energy efficient foundation systems.

61. Dehumidification System- Through the use of a dehumidifier removing moisture in the home this home will be healthier and more comfortable.

62. P assive Radon System- The passive system includes; a gas permeable layer under the home, a layer of gravel, a vent pipe from the sump pump through the roof to direct the gas out of the home. n

www.mdgreenshowhome.com

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2012 ICON AWARDS

ICONS of the Industry are recognized and celebrated The Home Builders Association of Maryland presented the coveted awards for Builder of the Year, Associate of the Year and Lifetime Achievement Awards during the Icon Awards. The awards are the premiere honors awarded to dedicated and respected members of the home building community.

AWARDS BUILDER Lifetime Achievement Bob Goodier, Goodier Builders

n Left: John Martonick presents a Governor’s Citation to retiring Executive Vice President John Kortecamp n Top Right: Outgoing president, Rod Hart congratulating incoming president, Scott Armiger n Bottom Right: John Kortecamp

ASSOCIATE Lifetime Achievement Howard Perlow, Residential Title Company Builder of the Year Tim Ellis, TW Ellis Associate of the Year Steve Gilman, Assembly Line, Inc. Retiring Executive Vice President Dr. John Kortecamp, Home Builders Association of Maryland 2012 Volunteer of the Year Cindy Plackmeyer

n Left: Cindy Plackmeyer is presented the Volunteer of the Year award from Rod Hart n Right: Theresa Leatherbury, Carmen Armiger and Scott Armiger

SPONSORS Platinum Sponsor Residential Title Gold Sponsors Gordon Feinblatt LLC Klein’s ShopRites of Maryland St. John Properties, Inc. Woodhaven Building & Development F riends of ICON Academy Mortgage Corp.

Associated Insurance Management, Inc. Chesapeake Bank Of Maryland Helmsman Property Services, Inc.

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n Left: Steve Gilman receives the Associate of the Year award from Tim Nichols n Right: Tim Ellis receives the Builder of the Year award from Thom Marston

MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2013 www.homebuilders.org

n Left: Michael Harrison, Steve Nardella, Jack Orrick and Frank Hertsch n Right: Art Adler, Stebe Sibel, Neil Schecter and Dan Whitehurst

n Left: Rod Hart congratulates Lifetime Builder Achievement award winner, Robert Goodier n Right: Lifetime Associate Achievement award winner Howard Perlow and Robin Perlow

n Left: Tim Nichols, Megan Neas, Michael Schonfeld and Brooke Kaine n Right: Parting advice from John Martonick to John Kortecamp

n Left: Robert Goodier poses with his family n Right: Cindy McAuliffe with Baltimore City Mayor, Stephanie Rawlings Blake

www.homebuilders.org

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Your HBAM Guide to IBS January 22-24, 2013 • Las Vegas, Nevada The International Builders’ Show is the largest annual light construction show in the world—over miles and miles of the latest and most advanced building products and services ever assembled. See all of the latest innovations for yourself with hands-on demonstrations and working models in over 300 building industry categories at the National Association Home Builders’ annual convention.

While at IBS, take time to network with members from the Home Builders Association of Maryland at our home base hotel, the Wynn. www.buildershow.com

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MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2013 www.homebuilders.org

Other IBS Highlights Tour The New American Home for a glimpse into the future of residential construction. Free shuttle busses depart from the show every half hour from the Las Vegas Convention Center.

This year, IBS brought back the Daily Keynote sessions which cover general topics of interest to all. Don’t miss these relevant and energizing daily sessions.

Tuesday, January 22

Opening Ceremonies Keynote – Michael Eisner Past Chairman and CEO of The Walt Disney Company, and Founder and CEO of The Tornante Company The Nationals See HBAM’s SMC honored nationally 5pm-9:30pm Wynn, Las Vegas

HBAM Member Events Breakfast Buffet 8am - 10am on Wednesday, January 23rd.

Cocktail Reception 6pm - 8pm on Thursday, January 24th.

These events are made possible by the following companies:

Wednesday, January 23 Keynote Panel featuring:

Robert Eric Tim Bowman Lipar Sullivan New Map to Homebuilding: How New Builders are Remaking Themselves and Retaking the Market Attention ‘GREEN’ Members: HBAM’s Green Building Council has been nominated for the 2013 NAHB Green Advocate of the Year Award. This award will be presented at the EcoDisco: 2013 NAHBGreen Awards & Networking Night Out on Wednesday, January 23, 7:00 - 9:00 PM at the Chateau Nightclub & Gardens in the Paris Las Vegas Hotel & Casino, 3655 South Las Vegas Boulevard. Register for this event (and hopefully help receive this award) when you buy your IBS tickets.

Thursday, January 24 David Pogue, New York Times Technology Writer Disruptive Tech: What’s New, What’s Coming, and H

• A xiom Engineering Design • Bob Lucido Team Remax Advantage • Bob Ward Companies • Bozzuto Homes, Inc. • CB Flooring, LLC • Clark Turner Companies • Colbert Matz Rosenfelt, Inc. • Continental Title Group • Delbert Adams Construction • Development Design Consultants • Dewberry • Forty West Builders, Inc. • Georgetown Insurance Service • Goodier Baker Homes • Goodier Builders, Inc. • Kaine Homes • Lakeside Title Company • Marenberg Enterprises • McMillan Metro, P.C. • MNCBIA • Morris & Ritchie Associates, Inc. • Orchard Development • Professional Warranty Service Corporation • Sandy Spring Bank • Shelter Systems Limited • SunTrust Mortgage, Inc. • The McHenry Companies • T.W. Ellis, LLC • Wells Fargo Home Mortgage • Williamsburg Homes • Zahler Construction & Development, LLC

Mayor Stephanie RawlingsBlake will speak from 8:30am-9am on her vacants to values program. www.homebuilders.org

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The New American Home 2013

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MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2013 www.homebuilders.org

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utting-edge energy efficiency and stunning contemporary design are the keywords for the 2013 edition of The New American Home 2013, America’s premier show home and construction technology laboratory. The New American Home offers real-world demonstration of the latest concepts in architecture, construction techniques, new products and lifestyle trends.

The New American Home® 2013, the 30th in a series, is a 6,712 sq. ft desert contemporary-styled residence designed for maximum advantage of Nevada’s year round climate. The flex space planning provides common gathering spaces centered among private living areas. This concept allows young professional families and older generations to live together yet still maintain independent lives.

Design features throughout allow for unlimited movement within the space by all members of the household.

The show home is located in the gated community of Marquis Seven Hills. The community offers all the excitement of Las Vegas while preserving the solitude of a country estate. Elevated hundreds of feet above the city limits, the coveted master-planned community of Seven Hills is nested in the rolling foothills of the Black Mountain Range. The neighborhood boasts miles of interconnecting trails and walkways and parks with sports amenities. The TNAH show home backs onto the Rio Secco Golf course, one of Las Vegas’ most scenic and challenging courses.

Blue Heron of Las Vegas, NV, the architect, builder, and interior design team of the 2013 home, is committed in their building practice to construct home building that is environmentally sensitive and ecologically smart. That commitment affects many decisions, including site selection, energy efficiency, passive solar design and building materials, as well as long-term perspectives on regional and community development.

The home incorporates the latest green and sustainable building

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materials, products and construction methods in order to reduce its impact on the environment and provide the highest quality of life for the occupants. The latest green building products and methods are factored into every aspect of the home’s design. The home is being constructed to achieve “emerald” status under the green building certification process administered by the NAHB Research Center and based on principles set forth in the ICC 700-2008 National Green Building Standard™. “Emerald status” is the highest of the four levels of achievement a home can attain.

The show home will be opened for daily tours to registered attendees of the International Builders’ Show via free shuttle busses departing from the show every half hour from the Las Vegas Convention Center. The complimentary shuttle bus tickets can be picked up onsite at The New American Home booth located in the Central Concourse of Hall C, Booth #20.

Scheduled Energy Certifications • National Green Building Standard- Emerald -Yes • LEED-H, Certification-Platinum - Yes • Energy Star Certified • Southern Nevada Green Building Partnership • Water Smart Home program (SNWA/ SNHBA) • Progress Energy Home Advantage Program • Builders Challenge • Indoor airPLUS n JANUARY/FEBRUARY 2013 MID-ATLANTIC BUILDER

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The Maryland Center for Housing Be forever recognized as an industry support with a custom engraved paver at the new Home Builders Association of Maryland headquarters to be built in Maple Lawn, Maryland The Maryland Center for Housing will be a home for the Home Builders Association of Maryland, for the Building Industries Foundation, our non-profit arm, and for the home building and remodeling industry of Maryland.

Thanks to a very generous lead gift by Stewart Greenebaum, the building will be located in Maple Lawn, Maryland in the southwest corner of Howard County, Maryland. Maple Lawn, a Smart Growth Community developed by Greenebaum and Rose Associates, is located in the heart of Central Maryland and is convenient to Interstate 95, US Route 1 and Maryland Routes 29 and 32. This headquarters will stand as a testament to the strength, vitality and endurance of the industry and the Association that represents it. Don’t miss your chance to be part of this lasting legacy.

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MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2013 www.homebuilders.org

www.homebuilders.org

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Maryland Center for Housing Donors Thank you to the following companies for their generous financial support.

Lead Donor: STEWART GREENEBAUM Axiom Engineering Baldwin Homes Bob Ward Family Foundation Caves Valley Chateau Builders Columbia Builders Cornerstone Homes Dan Ryan Builders Development Design Consultants Efficient Homes Elm Street Development Forty West Gemcraft Homes Goodier Baker Builders IWIF

Lennar Linowes and Blocher Lowell Glazer MD Landmark Morris & Ritchie Assoc.

Mueller Homes NVR Orchard Development Powers Homes Rachuba Family Foundation Residential Title Security Development Selfridge Family Foundation Shelter Builder Communities Steuart-Kret

Whitehall Development Williamsburg Homes

NAMING RIGHTS Rachuba Family Foundation Foundation Office Security Development Howard County Government Affairs Office Elm Street Development Finance Office NVR- Sales and Marketing Office Walter and Betty Ward Government Affairs Office

Thank you to the following companies for their contributions of labor, materials and professional services.

Stewart Geenebaum 84 Lumber Abbey-Fritz AC & R Insulation Azek Bartley Corporation Bruce L. Jones Contractors California Closet Campitelli Masonry Inc. Certainteed Charles A. Klein Choice Stairways CMW Co. CTI Dans Company Delbert Adams Design House Kitchens Dow Building Solutions Envirosolutions Fick Bros. Roofing & Exterior Remodeling 46

Fireside Hearth & Home Fretz Corporation Gaines and Company Gene’s Johns Glen-Gery Brick Gray and Son Gutschick, Little and Weber Harkins Builders Hillis-Carnes Engineering Interior Concepts John H. Myers & Sons L&L Supply Leisure Specialties Modern Foundations Moen Old Town Construction O’Neil Interactive Out of Sight Home Theater Parksite Patterson Enterprises Ply Gem Windows

Rapid Signs Reico Residential Title Richmond American RLO Contractors Rosenberg, Greenberg & Martin S.E.H. Excavating Shannon Comer Architects Shelter Systems Sherwin Williams Siegel, Rutherford, Bradstock & Ridgeway Smartbox Portable Storage St. John Properties TW Ellis TW Perry Vintage Security Weyerhaeuser

MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2013 www.homebuilders.org

6030 Daybreak Cr. #A150, PMP 362 Clarksville, MD 21209

www.homebuilders.org

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green building BUILDING HOMES – BUILDING SUCCESS

Read it and Weep!!

The most common brick veneer problem

By H. Alan Mooney, P.E. President, Criterium Engineers

Water intrusion is the most common problem in residential construction today.

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n a recent issue, I talked about the quality issues we see in new construction. I noted that construction quality hasn’t changed much in the nearly 40 years that I have been evaluating homes in the United States but that what has changed are the reasons why.

That discussion generated quite a bit of interest. To continue that theme, this issue will look at one particular source of construction quality issues, customer complaints, water intrusion and lawsuits!

Inadequate WEEP HOLES in Brick Veneer Water intrusion is the most common problem in residential construction today. It has been for many, many years. Attention to detail is at the heart of the problem.

Inadequate weep holes are a source of water intrusion and particularly troublesome because you often don’t discover the problem until it’s too late to do something about it. Water accumulates behind the brick veneer, rot and mold develops and repair involves major reconstruction.

We are aware of one large project with several hundred single family homes in the Midwest that was abandoned and bankrupt due to improper weep hole installation and performance.

Brick veneers are not water tight. The space behind the veneer is intended to capture water that seeps through (and around edges, penetrations, etc.) and allow it to drain. The weep holes above penetrations (windows, doors, etc.) and at the bottom allow the water to drain out.

Sloppy mortar work, poor installation and weeps covered by soils or exterior landscaping prevent good drainage. Water accumulates in the void behind the veneer, seeps into the walls and causes problems, often including rot and mold.

Major structural problems and/or personal injury lawsuits are often the result.

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Here are several proven guidelines for the proper design and installation of weep holes in brick veneer and to address a few other closely related drainage issues for the wall cavity: Weeps can take several forms: • S imple holes formed by leaving short dowels in place until mortar joints have firmed up enough to allow their withdrawal. Holes must be at least 3/16” in diameter at 24” on-center maximum.

•V ertical slots between bricks at 32” on-center maximum. These slots may be filled with perorated metal or plastic spacers to prevent insect entry.

•T ube and wick weeps also prevent insect entry.

Wicks can be extended up within the wall cavity above possible mortar drops. Tubes should be at least ¼” in diameter at 16” OC maximum.

Wicks should be rot-resistant braided cordage.

Through flashing and weeps must be located: •A t every wall’s base: over foundation brick shelves (or supporting floor slab) in the first masonry joint above exterior grade.

•A bove all supporting slabs, relief angles and opening lintels.

•T he through flashing should extend vertically up over the underlying support member and substrate wall.

Weeps must be located immediately over the flashing.

• I nstalling them in the joints one or two courses above (as is sometimes detailed to allow for mortar drops) creates a wet sump in the cavity.

•W ater trapped over flashing will inevitably leach to the interior and/or the exterior.

•T his is a common cause of interior leaks around windows and exterior bands of efflorescence above flashing.

The continuous “drainage plane” (felt, fabric or membrane) applied over the substrate wall must be installed to overhang the through flashing and shed water to the weeps.

MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2013 www.homebuilders.org

Masonry crews must be careful to prevent mortar from falling into the space between the brick veneer and the supporting substrate.

•E ven a small number of such inadvertent ‘drops’ can block continuous lateral drainage of the space to the weeps.

•K nowledgeable masons suspend a wooden stick of appropriate width in the space to catch drops and progressively move it up as work progresses.

•U nfortunately, this practice is often ignored in the interest of saving time. And, younger workers may not be properly trained in such procedures.

•O ur observations of demolished walls indicate that careless work can lead to deposits several inches deep over the flashing below.

In recognition that some mortar drops are inevitable, careful designers may specify placing a fabric or plastic mesh drainage media within the wall to maintain a drainage space over the flashing. This is good practice, but uncommon.

When the brick shelf or base support slab is below grade: •T he wall cavity below the first through flashing at the base of the wall should be slushed full of pourable grout or mortar.

• S ubstrates in this area must be cast-in-place concrete or concrete masonry.

•T ypically, a framed wall should not provide the supporting substrate for brick veneer below grade. However, because of poor coordination of site grading and building design, this sometimes occurs. When it does, this will often become a trouble spot.

It is important to check all the weeps after construction is complete.

•O ften, sidewalk installation and landscaping top soil or mulch can result in obstructed weeps.

• I mproper grading may cause storm runoff to pond against exterior walls.

A common Punch List item after construction, (or a wall restoration task,) is to clear obstructed weeps.

•A word of caution: An inexperienced laborer assigned the job of drilling out weeps can cause a tremendous amount of damage to the flashing in a short period of time!

•T his damage is concealed, but will result in many new leaks during the next rainy season.

•D rills must be equipped with depth stops to avoid puncturing the flashing. www.homebuilders.org

• I f the original weeps were placed correctly, then drilling them out can damage the flashing immediately beneath. In such cases, it may be better to drill new weep holes in the next mortar joint over, allowing for a small space above the flashing Please be advised that these guidelines are from our experience. Although in general conformance with language found in the International Building Code, specifications of The Masonry Society and recommendations from the Brick Industry Association Technical Notes, we must advise that all details for any actual construction should be verified against building requirements of the local jurisdiction and standard practice in the region.

As a final note, some large, national home builders we are familiar with are establishing some aggressive programs to build “defect free” homes. The problem of construction quality is gradually being acknowledged throughout the industry. Like any significant trend, it’s important to keep up or, when possible, be a leader. If you have statistics from your homes that prove they are better than average, share that with your buyers. While building a perfect home may not be possible, minimizing defects is. However, it does not happen by accident. You need to set that standard and hold others accountable for that standard.

As you read my columns, if you have questions, please feel free to send me an e-mail (hamoooney@criterium-engineers.com). Working together, my goal is to help explore new and better ways for you to build homes that you can be proud of and that will turn your customers into some of your best sales people! n

Criterium Engineers has specialized in residential construction for more than 50 years, with more than 60 offices in more than 35 states.

We have evaluated more than 750,000 buildings. H. Alan Mooney, P.E, President of Criterium Engineers, is a licensed, Professional Engineer in 8 states, with more than 35 years experience and has been the author and presenter for various NAHB programs. For more information, please visit www.criterium-engineers.com and www.criterium-quality.com.

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stats&facts

Outlook for 2013 Price Per Square Foot Median REGULAR RESALE

$345

REO SALE

$315

NEW SALE

$200 $139

$137

$138

Q1 2012

$137

$96

$91

$84

$130

Q2 2012

Q3 2012

Q4 2012

For Washington-Arlington-Alexandria, DC-VA-MD-WV, Prince George’s MD

By Brooke Burns

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ccording to Hanley Wood’s Home Building Outlook report, the Baltimore and Washington markets are forecasted to look very different. While the Washington DC MSA is expected to see an increase of 3 percent in new home sales making the total expected closings to reach close to 10,500, Baltimore is forecasted to stay on pace with its 2012 performance without an increase in volume. Since year end numbers are not in and this report is updated quarterly we may see some changes and will report upon these in the next article.

Baltimore had experienced significant job loss numbers with the recent closing of the Solo Cup Manufacturing Facility and the bankruptcy of Sparrow’s Point R.G Steel. Although, the unemployment rate did drop to 5.4 so we may not have accounted for these great losses just yet.

Good news in areas such as Prince George’s county and areas affected by BRAC, home prices are seeing an increase and ‘bigger is still better’ seems to be the mentality within some communities selling larger floor plans. The average price per sq. foot for a new home in 3Q 2012 was $345 in Prince George’s county.

This was up from $200 and $315 in the previous quarters. n Brooke Burns is the Regional Sales Director for Hanley Wood Market Intelligence and can be reached at bburns@hanleywood.com or 202-729-3678.

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MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2013 www.homebuilders.org

Wednesday, March 20, 2013 11am - 6pm Maryland State Fairgrounds Timonium, MD

2013 Builder Mart

The Industry’s Largest One Day Trade Show Presented by The Home Builder’s Association of Maryland

governmentaffairs Anne Arundel County Critical Area Legislation- The County Council introduced new Critical Area Legislation in mid-December to implement the new stormwater management regulations. The Chapter Board has been meeting to review the legislation and will submit extensive comments to the Council and testify at the public hearing in January.

Baltimore City Chapter Stormwater User Fee – The City Council is considering a new storm water utility fee as required by the state. This fee will be charged to all city property owners and will be billed on a quarterly basis per ERU of impervious area: • Tier 1 residential $11.88 quarterly or $47.52 annually • Tier 2 residential $18.00 quarterly or $72.00 annually • Tier 3 residential $36.00 quarterly or $144.00 annually • A ll other properties $18.00/ ERU ERU= 1,050 square feet of impervious area Tier 2 homes are the city average at 1,050 sq.ft. of impervious. Tier 1 are smaller homes and will be billed 2/3 of the fee. Tier 3 are larger homes and will be billed for 2 ERU’s.

The City did not provide a sq.ft. cut-off point for each tier. Commercial properties will pay Tier 2 rates per each ERU of impervious.

All customers will have an opportunity to decrease their fees if they participate in citywide stormwater management efforts or implement BMPs. The City formed a committee to refine the details of this credit program. This committee will be represented by one individual from different stakeholder groups including developers, business, environmental groups and so forth.

The city is proposing 3 credit types: • Education credit for participation in environmental education programs to raise public awareness.

• Participation credit for participation in a public activity targeted at improving water quality such as trash clean-up, tree planting and de-paving.

• Treatment Practice credit for installation and maintenance of BMPs located on the property.

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Dedicated Utility Fund Question J on the November ballot passed that will establish a stormwater utility dedicated fund.

Baltimore County Septic Tiers Baltimore County has released their tier map to implement SB 236. Although Chapter members and other stakeholders met with the County during the map development process and communicated our concerns, the County administratively adopted the map with no changes. Our Chapter still believes it downzones far too much developable land, especially in the RC-5 zone.

The Chapter also unsuccessfully pursued a change in the minor subdivision definition to 7 lots or less.

Carroll County Minor Subdivision Change Carroll County Commissioners have raised the number of lots in a minor subdivision to 7 or less as allowed by the growth tier legislation. The County has recently announced plans to begin mapping the tiers in March, 2013.

Upper Chesapeake Chapter (Harford/ Cecil) New County Leadership In November, Cecil County voters elected for the first time a County Executive in the county’s move to a charter government.

Commissioner Tari Moore (I) beat challenger Pam Howard (D) for the County Executive position. Also, Commissioners are now Council members and voters elected 2 new Council members to join the other 3 Commissioners turned Council members.

Commissioner Robert Hodge and Alan McCarthy were elected to the Council for a 4 year term.

Cecil County Septic Tiers In late December, the new County Executive Tari Moore and her administration formally adopted a tier map and sent it to the state. The map conforms to the Cecil Comp Plan and places only federal lands and lands already in preservation into Tier 4. This was the 10th draft map considered by the county. The State Planning Department is expected to comment on the map and force the local planning commission to hold a public hearing.

Harford County Septic Tiers Harford County has administratively adopted a tier map that places most land outside the development envelope in Tier 4. Chapter members pushed unsuccessfully for changes that would have put more land in tier 3. The Council did vote in late December to increase the size of minor subdivisions to 7 or less as other counties are doing.

Harford County Transfer of Development Rights (TDR) The County is expected to file legislation in January to implement a new TDR program.

Chapter members recently met with Pete Gutwald, Director of Planning and Zoning, to discuss the program and we have major concerns. We are waiting to see the final version introduced to the Council before taking a position or discussing amendments, but we anticipate not being able to support the draft and will have several amendments.

MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2013 www.homebuilders.org

Howard County Growth Tier Map The Howard County Council, in early December, passed a growth tier map that replaced the originally proposed Ulman Administration map. The Council map was subsequently vetoed by the County Executive and goes back to the Council on January 7. The Council can override the veto with a 4-1 vote, or sustain the veto with anything less than a super majority. The Council passed map places all preserved land in tier 4 and leaves all remaining uncommitted lots in tier 3.

When the Council held a public hearing on the Ulman proposed growth tier map, farmers circled the council building in tractors protesting the proposal and roughly 25 speakers opposed the map and urged passage of an alternative map that would

place preserved land into Tier 4 only, which is what ultimately happened. Chapter members worked to gain support for the alternative map, urging the Council to stand up for local zoning rights. In the original map, the County proposed to add all RC zoned land as Tier 4 and all RR zone land as Tier 3. All areas in the east served by water and sewer would be in Tier 1. Our Chapter members and farmers testified saying that plan would decrease property values and take away landowners’ rights because it would kill the Density Exchange Option for farmers. The Council passed map will preserve the TDR program and is supported by farmers and our Chapter members.

Take a look www.homebuilders.org Redesigned to meet the needs of builders, remodelers, subcontractors, suppliers and home owners.

• Easy

to navigate, both consumers and in dustry professionals can instantly gain access to membership lists, statistical information, government affairs updates, event calendars and more.

• You’ll

be able to register for events on line, update your membership information, pay dues and more.

Tax Credits for Aging in Place retrofits The Howard County Council recently passed legislation giving homeowners property tax credits for making handicap accessible retrofits to their home. The property tax credit will apply to homeowners making aging in place retrofits to homes, such as no-step entrances, wider doors, ramps, grab bars in the bathroom, no step shower and baths, etc. The credit is capped at $2,500 per homeowner and $100,000 aggregate for the entire county. To qualify for the credit, the homeowner must obtain a building permit and inspection. ■

Michael Harrison VP Government Affairs 410-265-7400, ext.109 michael@homebuilders.org

HBAM Welcomes New Members Associate

Bath Kitchen and Tile Center David Murkey 375 Bellevue Road Newark, DE 14713 Phone: 302-737-4968 Supplier - Appliances

Farm and Home Excavating Bill Ingram 901 Driver Road Mariottsville, MD 21104 Phone: 410-442-2139 Subcontractor - Excavating, Grading & Utilities

Howard Bank

Nationwide Energy Partners, LLC

Erik Chick 6011 University Blvd Suite 370 Ellicott City, MD 21043 Phone: 410-266-9731 Professional Services - Banking & Mortgage

Jeff Morrison 230 West Street #150 Columbus, OH 43215 Phone: 614-419-3218 Professional Services - Utilities

Sponsor: Scott Armiger, Orchard Development Corporation

Sponsor: Scott Armiger, Orchard Development Corporation

JK Moving

New Home Sales Connection, LLC, The Jay Schulman

Melinda Stecker 7561 Lindbergh Drive Gaithersburg, MD 20879 Phone: 443-722-0965

Sponsor: Patrick Costello, Forty West Builders, Inc.

Sponsor: Marka Guindon, Essex Bank

H & H Woodworking, Inc.

Keith Madigan 10616 Beaver Dam Road Suite 2 Hunt Valley, MD 21030 Phone: 410-527-1983 www.kmacompanies.com Professional Services - Engineering & Technical

Claudia Lehnert 145 Masons Crossing Ct Severna Park, MD 21146 Phone: 410-544-2430 Subcontractor - Carpentry Sponsor: Michael DeStefano, Sturbridge Homes

K.C. Madigan & Associates, LLC

1005 Frederick Road Catonsville, MD 21228 Phone: 301-520-5078 www.newhomesalesconnection.com Professional Services - Consulting & Customer Svc. Sponsor: Brenda Desjardins, New Home Development Strategies

Severn Bank Bill Benner 200 Westgate Road Annapolis, MD 21401 Phone: 410-260-2125

Southernwood Framing, LLC & Southernwood Roofing & Siding, LLC Thomas A. Mudd P.O. Box 1670 LaPlata, MD 20646 Phone: www.southernwoodllc.com Subcontractor - Carpentry Sponsor: Cynthia McAuliffe, Kaine Homes

Studio Z Ltd. Stu Zolotorow 3744 Greenway Lane Owings Mills, MD 21117 Phone: 410-654-8400 Professional Services - Photography

Builder

Liparini Company Nicholas Liparini 11363 Cotswold Spring Farm Lane Ellicott City, MD 21042 Phone: 410-977-0578 liparini.com Developer

Sponsor: Tim Ellis, TW Ellis

Signature Companies Mary Jeanne Helton 6612 James Madison Highway Haymarket, VA 20169 Phone: 703-753-0699 www.sigkit.com Supplier - Cabinets & Countertops

Remodeler

GB Companies Group/Hammer Contractors Jorge Costellanas 3829 Mount Olney Lane Olney, MD 20832 Remodeler

Do Business With Your Fellow HBAM Members.

“Building Your Business Through Association” is our philosophy. HBAM members believe that they should support those who support the building industry.

NETWORK with other companies in the building industry to gain new contacts as well as strengthen your current ones at the Celebrity Chef Night and Auction, sporting events, chapter and council meetings and more.

ADD CREDIBILITY for your company in the building industry as well as with the general public by being associated with one of the largest building associations in the country.

KEEP UP-TO-DATE about pertinent legislative and regulatory issues on a local, state and national level.

WWW.HOMEBUILDERS.ORG is designed to serve both consumers and those in the building industry. You can access the latest legislative news, find out about member benefits, profile your company in the online directory or register for an event. Consumers can visit the HBAM home page to find you and other builders or suppliers in their area.

INCREASE YOUR KNOWLEDGE of the building industry through our educational programs and seminars.

TARGET YOUR MARKET with cost effective advertising in any of HBAM’s publications and receive a spreadsheet of HBAM members.

STAY INFORMED with HBAM’s publications. You will receive Mid-Atlantic Builder, BNN, HomeFront Online and the Buyers’ Guide.

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Contact Felicia Fleming at 410-265-7400, ext. 115 or felicia@homebuilders.org for more information.

MID-ATLANTIC BUILDER JANUARY/FEBRUARY 2013 www.homebuilders.org

foundation

Maryland Community Builders’ Foundation Hosts Happy Hour for Hurricane Sandy Builder Relief Home Builders Association of Maryland members and friends gathered at Looney’s Pub in Maple Lawn on January 7th to help “Restore the Shore.” Proceeds from the ticket sales and a portion of the restaurant sales will be donated to the Shore Builders Association of Central New Jersey to aid in the process of cleaning up and rebuilding from Superstorm Sandy.

Gina Woolley, Executive Officer of the Shore Builders Association of Central New Jersey said, “We at Shore Builders Association and the State Association are truly grateful to the outpouring of donations and support from the country especially the Home Builders Association of Maryland.”

The “giving tree” was also at the event and members added their gift cards to benefit the cause. All of the donations collected along with donations of building materials will be delivered to NJ in February. Woolley added, “The State of New Jersey and its beautiful shoreline will emerge from the wreckage of this storm stronger and more beautiful than ever.”

Visit www.buildingindustriesfoundation. org to find out how you can help. n

The Giving Tree Photography generously donated by Stu Zolotorow and Studio Z.

www.homebuilders.org

JANUARY/FEBRUARY 2013 MID-ATLANTIC BUILDER

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