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NAIL The official magazine of Home Builders Association of Middle Tennessee President Michael Dillon Vice President Trey Lewis Secretary/Treasurer Randall Smith Executive Vice President John Sheley Editor and Designer Jim Argo Staff Connie Nicley Pat Newsome
THE NAIL is published monthly by the Home Builders Association of Middle Tennessee, a non-profit trade association dedicated to promoting the American dream of homeownership to all residents of Middle Tennessee. SUBMISSIONS: THE NAIL welcomes manuscripts and photos related to the Middle Tennessee housing industry for publication. Editor reserves the right to edit due to content and space limitations. POSTMASTER: Please send address changes to: HBAMT, 9007 Overlook Boulevard, Brentwood, TN 37027. Phone: (615) 377-1055.
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FEATURES 8 HBAMT Installation and Awards Banquet
The annual HBAMT Installation and Awards Banquet was held December 12 at LP Field in Nashville. 2014 President Michael Dillon was installed during the ceremonies along with his officers and directors.
11 Circle of Excellence Awards honor top eforts
The Middle Tennessee Sales and Marketing Council presented their annual awards to the industryâ€™s top sales and marketing professionals during the awards banquet at LP Field.
DEPARTMENTS 6 News & Information 13 SPIKE Club Report 14 January Calendar 14 Chapters and Councils
ON THE COVER: The Annual Home Show returns next month to the Williamson County AgEXPOPark. See page three of this issue to reserve your exhibit space today. January, 2014
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Housing markets continue to show gradual improvement
arkets in 56 out of the approximately 350 metro areas nationwide returned to or exceeded their last normal levels of economic and housing activity, according to the latest National Association of Home Builders/ First American Leading Markets Index (LMI). This represents a net gain of two from the previous month. The index’s nationwide score of .86 indicates that, based on current permits, prices and em-
The index’s score of 86 indicates that based on current permits, prices & employment data, the nationwide average is running at 86 percent of normal economic and housing activity. 6 The NAIL
ployment data, the nationwide average is running at 86 percent of normal economic and housing activity. “More markets are slowly returning to normal levels and we expect this upward trend to continue as an improving economy and pent-up demand brings more home buyers back into the marketplace,” said NAHB Chairman Rick Judson, a home builder from Charlotte, N.C. “Policymakers must be careful to avoid actions that would harm consumer confidence and impede the ongoing recovery.” “Forty-five percent of metro areas are recovering at a faster pace than the nation as a whole, with smaller markets leading the way,” said NAHB Chief Economist David Crowe. “Of the 56 markets that are at or above normal levels, 48 of them have populations that are less than 500,000, and many of these local met-
ros are fueled by a strong energy sector, which is producing solid job and economic growth.” “More than 35 percent of all the markets on this month’s LMI are operating at a capacity of 90 percent or better of previous norms, which is a good sign that the housing recovery will continue to pick up steam in 2014,” said Kurt Pfotenhauer, vice chairman of First American Title Insurance Co., which co-sponsors the LMI report. Baton Rouge, La., tops the list of major metros on the LMI, with a score of 1.42—or 42 percent better than its last normal market level. Other major metros at the top of the list include Honolulu, Oklahoma City, Austin and Houston, Texas, as well as Harrisburg, Pa., and Pittsburgh—all of whose LMI scores indicate that their market activity now exceeds previous norms. Looking at smaller metros, both Odessa and Midland, Texas, boast LMI scores of 2.0 or better, meaning that their markets are now at double their strength prior to the recession. Also at the top of the list of smaller metros are Casper, Wyo.; Bismarck, N.D.; and Grand Forks, N.D., respectively. The LMI shifts the focus from identifying markets that have recently begun to recover, which was the aim of a previous gauge known as the Improving Markets Index, to identifying those areas that are now approaching and exceeding their previous normal levels of economic and housing activity. More than 350 metro areas are scored by taking their average permit, price and employment levels for the past 12 months and dividing each by their annual average over the last period of normal growth. For single-family permits and home prices, 2000-2003 is used as the last normal period, and for employment, 2007 is the base comparison. The three components are then averaged to provide an overall score for each market; a national score is calculated based on national measures of the three metrics. An index value above one indicates that a market has advanced beyond its previous normal level of economic activity. Editor’s Note: In calculating the LMI, NAHB utilizes employment data from the Bureau of Labor Statistics, house price appreciation data from Freddie Mac and single-family housing permits from the U.S. Census Bureau. The LMI is published on the fourth working day of each month, unless that day falls on a Friday—in which case, it is released on the following Monday. For historical information and charts, please go to nahb.org/lmi. n
New home sales, production on the rise
ales of newly built, single-family homes declined 2.1 percent to a seasonally adjusted annual rate of 464,000 units in November from an upwardly revised strong pace of 474,000 units in the previous month, according to data released today by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Except for October 2013, this is the strongest sales pace since July of 2008. “This figure is consistent with NAHB’s member surveys, which show increasing confidence in the market,” said Rick Judson, chairman of the National Association of Home Builders (NAHB). “Meanwhile, the very low supply of new homes on the market and tight credit conditions for home buyers show that builders are still cautious about getting ahead of themselves.” “The previous three months for new-home sales have all been revised up, and the final quarter of 2013 is shaping up to be the best quarter since the second quarter of 2008,” said NAHB Chief Economist David Crowe. “Historically low interest rates, affordable home prices and a healing economy are bringing buyers back into the marketplace.” Regionally, new-home sales were mixed in November. Both the West and the Northeast showed improvement, with respective increases of 31.1 percent and 15.2 percent. New-home
sales in the Midwest dropped by 26.6 percent and the South posted a 9.1 percent decline. The inventory of new homes for sale declined to 167,000 units in November, which is a 4.3-month supply at the current sales pace. Housing production up Led by a solid increase in both single-family and multifamily starts, nationwide housing production rose 22.7 percent to a seasonally ad-
justed annual rate of 1.09 million in November, according to figures released today by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. “This report is in line with our latest survey, which shows that builders are increasingly con-
Builder confidence rises four points in December
uilder confidence in the market for newly built, single-family homes improved four points to a 58 reading on the National Association of Home Builders/ Wells Fargo Housing Market Index (HMI) for December, released today. This gain reflected improvement in all three index components – current sales conditions, sales expectations and traffic of prospective buyers. “This is definitely an encouraging sign as we move into 2014,” said NAHB Chairman Rick Judson. “The HMI is up 11 points since December of 2012 and has been above 50 for the past seven months. This indicates that an increasing number of builders have a positive view on where the industry is going.” “The recent spike in mortgage interest rates has
not deterred consumers as rates are still near historically low levels,” said NAHB Chief Economist David Crowe. “Following a two-month pause in the index, this uptick is due in part to release of the pent-up demand caused by the uncertainty generated by the October government shutdown. We continue to look for a gradual improvement in the housing recovery in the year ahead.” Derived from a monthly survey that NAHB has been conducting for 25 years, the NAHB/ Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to
fident that buyers who have sat on the sidelines are feeling more secure about their economic situation and are now moving to purchase new homes,” said Judson. “This upward trend could be even stronger if not for persistently tight lending conditions for buyers and builders facing rising costs for building materials, lots and labor.” “Single-family and multifamily starts are at five-year highs, providing additional evidence that the recovery is here to stay,” said Crowe. “We hit a soft spot this fall when interest rates jumped and the government closed down, but mortgage rates still remain very affordable and pent-up demand is helping to boost the housing market. We expect a continued steady, gradual growth in starts and home sales in 2014.” Single-family starts posted a 20.8 percent gain to a seasonally adjusted annual rate of 727,000 units in November, which was their fastest rate since December of 2007. Multifamily production was up 26 percent to 364,000 units. Regionally, combined starts activity rose 41.7 percent in the Midwest, 38.5 percent in the South and 8.8 percent in the West, but fell 29.4 percent in the Northeast. Overall building permits, which are an indicator of future building activity, fell 3.1 percent to 1.007 million units in November. Despite the modest decline, this was the second month that new permit issuance topped the million mark. Regionally, total permit issuance increased 7.8 percent in the Northeast and fell 7 percent in the South, 0.4 percent in the West and 0.6 percent in the Midwest. n
calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor. All three HMI components posted gains in December. The index gauging current sales conditions jumped six points to 64, while the index gauging expectations for future sales rose two points to 62. The index gauging traffic of prospective buyers gained three points to 44. Looking at the three-month moving averages for regional HMI scores, the South edged one point higher to 57 while the Northeast, Midwest and West each fell a single point to 38, 59 and 59, respectively. Editor’s Note: The NAHB/Wells Fargo Housing Market Index is strictly the product of NAHB Economics, and is not seen or influenced by any outside party prior to being released to the public. HMI tables can be found at nahb.org/hmi. More information on housing statistics is also available at housingeconomics.com. n
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2014 leadership installed
2014 Officers and Directors are installed during the banquet.
The annual Installation and Awards Banquet was held December 12 at LP Field.
he HBAMT held its 70th Annual Installation Banquet and Awards Ceremony December 12 at LP Field in Nashville, Tennessee. The highly anticipated event drew a large crowd as association members celebrated our achievements of the past year and was introduced to the leaders who will be guiding the HBAMT throughout the upcoming year. Sharon Puckett, a staple at the installation and awards banquet in recent years, hosted the event and helped acknowledge the association’s award-winning performers for the previous year. Among those receiving awards were top sales and marketing performers who were recognized with the presentation of the Middle Tennessee Sales and Marketing Council’s Circle of Excellence Awards (more on page 9 and ten). The banquet’s highlight was the installation of the association’s incoming President Michael Dillon. Outgoing President Jimmy 8 The NAIL
Franks gave his closing remarks, reflecting on the accomplishments and progress made during the past year, before welcoming Dillon to the stage who was installed as the HBAMT’s 2014 President. The ceremony was performed by Bill Freeman, of Freeman Webb, who delivered a highly informative housing industry update and forecast before proceeding with the president’s installation. Dillon’s first duty was to install the officers, directors, and chapter and council presidents who will serve with him in 2014. Senior Officers for the upcoming year are Vice President Trey Lewis and Secretary/Treasurer Randall Smith. Local Directors in 2013 will be Sam Carbine, Andy Ferguson, Tom Ford, Doug Herman, David Hughes, Paul Huff, Brandon Jenkins, Paul Krebs, Don Mahone, Roy Miles, Rob Pease, Keith Porterfield, Perry Pratt, Frank Tyree, Duane Vanhook and John Zelenak. State Directors will include Carmen Butner, Sam Carbine, Jordan Clark, Michael
Dillon, Jimmy Franks, Peggy Krebs, Davis Lamb and Duane Vanhook. National Directors will include Carmen Butner, Sam Carbine, Jimmy Franks, Peggy Krebs, Davis Lamb and Duane Vanhook. Associates Council officers installed for 2014 include President B.J. Hanson and Senior Vice-President Lori Fisk-Conners, Vice-President Marty Maitland, and Secretary/Treasurer Kevin Barber. Sales and Marketing Council officers include President Christina Cunningham and Vice President Derenda Sircy. The 2014 HBAMT Remodelers Council President Jason Broderick was installed. Chapter Presidents installed included: Roy Miles, Cheatham County; Mark Denney, Dickson County; John Whitaker; Metro/Nashville, and B.J. Hanson, Williamson County. Volunteer chairs, who donate countless hours of their time to the association, were awarded for their continuing service during
Michael Dillon, installed by Bill Freeman.
Dillon installs his officers and directors.
Clockwise from upper left: Michael Dillon is installed as the 2014 HBAMT President by Bill Freeman. Dillon offically installs the officers and directors who will serve with him in the upcoming year. And Dillon presents outgoing President Jimmy Franks and his wife Rhonda with gifts of appreciation for their service and dedication to the association over the past year.
Jimmy Franks, Rhonda Franks and Dillon.
the banquet. Among those recognized were Trey Lewis, Membership Chairman; Sam Carbine, Legislative Chairman; David Crane, Parade of Homes Chairman; Randall Smith, FHA Chairman; Peggy Krebs, Public Relations Chairman; Tom White, PAC Chairman; and Trey Lewis, Holiday Open House Showcase Chairman. Outstanding achievements and performances in 2013 were recognized during the awards ceremony. Jimmy Franks became the first outgoing president to win the Reese Smith Builder of the Year Award. David Crane, the 2012 award recipient, presented Franks with the 2013 award. Don Mahone was named the Remodeler of the Year. Multiple Remodeler of the Year award winner and past RMC President David Crane presented the award. Wiggs Thompson was the recipient the 2013 Associate of the Year. 2012 Associate of the Year John Whitaker presented the award.
Jimmy Franks presented the 2013 Presidentâ€™s Award to longtime HBAMT leader and friend Jim Ford. Ford was joined by sons Jim Jr. and Tom on stage to accept the award. James Carbine, 1999 HBAMT president, was presented the Member to Member Builder Award. The award is presented to the builder member who does the most business with fellow HBAMT members during the year. This marked the fourth consecutive year Carbine took home
this honor. Way to go James! And outgoing President Jimmy Franks was presented the Spike of the Year Award for the second consecutive year. Franks was presented the 2013 award by Membership Chairman Trey Lewis. Once again banquet attendees were treated to amazing and energetic performances throughout the evening by Burning Las Vegas. A very special thanks to the band and to Sharon Puckett, our banquet emcee for the eighth year in a row. And of course the Installation Banquet and Awards Ceremony would not be possible without our sponsors. Thank you all for your continued support (full list on page thirteen).
Burning Las Vegas kept the crowd on their feet during their performances at the Installation and Awards Banquet. January, 2014
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Best of the Best in 2013 recognized
Jimmy Franks, 2013 Builder of the Year.
Left: Jimmy Franks is presented the 2013 Builder of the Year Award by 2012 award winner David Crane. Franks was also presented the 2013 Spike of the Year Award during the ceremonies. Clockwise from below, right: Wiggs Thompson accepts the Associate of the Year Award from last year’s winner John Whitaker. Don Mahone is presented the Remodeler of the Year Award by Crane. James Carbine accepts the Member-to-Member Builder Award from Trey Lewis. And Jim Ford, with sons Tom and Jim, Jr., accepts the President’s Award from Franks.
Jim Ford, 2013 President’s Award recipient.
Wiggs Thompson, 2013 Associate of the Year.
James Carbine, 2013 Member-to-Member Award winner.
Don Mahone, 2013 Remodeler of the Year.
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Circle of Excellence
Joni Wilson is presented the 2013 Sales Agent of the Year Award by Beth Nicley.
Circle of Excellence Awards recognize top sales and marketing professionals.
op new home sales professionals were recognized at the Installation and Awards Banquet as the Middle Tennessee Sales and Marketing Council (MTSMC) presented the 2013 Circle of Excellence Awards. Sharon Puckett announced winning sales agents in the Bronze, Silver and Gold categories, while Trey Lewis and Beth Nicley took the stage to present the Platinum Awards, the highest designation a sales agent can attain, and the individual award winners. Winners included: Salesperson of the Year: Joni Wilson, Norfolk Homes Rookie of the Year Chad Dickinson, Goodall Homes. Sales Manager of the Year: Trey Lewis, Ole South Properties Congratulations to all of the 2013 Circle of Excellence Award winners (please see page 12 for a complete listing). n
Trey Lewis is presented the 2013 Sales Manager of the Year Award by Beth Nicley.
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2013 Circle of Excellence Award winners Platinum Awards - $10 Million & Up Grove Park Construction Christina Cunningham
Annette Spicer Brandon Wise
Tennessee Valley Homes McClain Franks
John Wieland Homes Michelle Crews
Pulte Group Whitney Neil Katelyn Fuson Derek Huggett
The Jones Company Kristin Hood
Norfolk Homes Reggie Polk Ole South Properties John Donlon
Signature Homes Danny B Wood
Turnberry Homes Keith Sefton Gina Sefton Joni Wilson
Gold Awards - $5 Million to $9,999,999 Beazer Homes Hailey Heflin Mark Cannon Carmela Lawler Robyn Payne Citizens Homes Vickie Freas Drees Homes Lynn Bradford Kelly Rowland Carol Stallings Julie Adams Maggie Waits Renee Beausoleil
Goodall Homes Chris Bagwell Tammy Chambers Chad Dickinson Margaret Dillon Angela Dover Laura Gutshall Amanda Hardin Ashley Hinesley Adrienne Komisky Grove Park Construction Darin Cunningham Kings Chapel Community Katrina Roberts Hennessey
Ole South Properties Wanda Comer Lynn Harrison Sandra Prince Glenn Street Pulte Group Carey Buckley Chase Gruber Melba Polk Mershon Regent Homes Linda Yocca Tom Plahuta The Jones Company Anthony James Carrie Smith
Silver Awards - $3 Million to $4,999,999 Beazer Homes Jean Chapman
Goodall Homes John Conyer
Citizens Homes Debbie Williams
Ole South Properties Adam Hall
Drees Homes Brett Tesnow Karen Neal
Pulte Group Casey Zink
Regent Homes Jennifer McVey-Roney Jeffrey Caruth Tennessee Valley Homes Pam Beverly
Bronze Awards - $1 million to $2,999,999 Beazer Homes Augusta Burgess Drees Homes Nathan Ledbetter
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Goodall Homes Kristeen McNeely Jessica Neal Ole South Properties JJ Brazelton
Pulte Group Tina Zink Regent Homes Coby Comer
SPIKE REPORT Life Spikes
Nineteen SPIKES (in bold) increased their recruitment numbers last month. What is a SPIKE? SPIKES recruit new members and help the association retain members. Here is the latest SPIKE report as of October 30, 2013. Top 20 Big Spikes Jim Ford 912 Virgil Ray 818 Bill King 776 Mitzi Spann 657 Jim Fischer 566 Terry Cobb 565 John Whitaker 362 James Carbine 329 Jennifer Earnest 311 Dan Stern 306 Bruce Hancock 297 Kevin Hale 286 Tonya Jones 271 Reese Smith III 259 David Crane 231 Steve Moody 219 Sonny Shackelford 216 Michael Apple 185 Cyril Evers 181 Davis Lamb 177
Jackson Downey 174 Jim McLean 164 Louise Stark 163 Tim Ferguson 160 Harry Johnson 146 Steve Cates 140 C.W. Bartlett 138 Tonya Alexander 125 Trey Lewis 120 Steve Hewlett 119 Tom Kelley 115 Sam Carbine 110 Carmen Butner 103 Johnny Watson 101 James Franks 98 Bill Kottas 97 Dave McGowan 95 Lee Santiago 95 B.J. Hanson 91 Kim Dykes 89 Jeff Zeitlin 87 Duane Vanhook 81 Jordan Clark 80 Erin Richardson 76 Randy Parker 75 Jeff Slusher 70 John Baugh 68 Don Bruce 62 Jim Ford, Jr. 62 Hill McAlister 57 Wiggs Thompson 57 Joe Morgan 54 Gerald Bucy 53 John Broderick 52 Beth Sturm 51 Al Davis 47 David Hughes 47
Sheila Rawlings 47 Bernie Laine 46 Greg Langley 46 Benny Sullivan 46 Kim Nichols 45 Andrew Neuman 45 Bryan Edwards 44 Kay Russell 44 Lori Fisk-Conners 39 Peggy Krebs 39 John Ganschow 37 Chuck Clarkson 36 Andy Wyatt 36 Brad Butler 35 David Lippe 35 Al Hacker 34 Frank Miller 34 Ray Edwards 32 Dan Strebel 32 Steve Wheeley 30 Alvin Basel 29 Matt Burnett 25 Spikes Christina Cunningham 20 Michael Dillon 20 Jess Dillon 16 Marty Maitland 15 Tracy Lomax 14 Don Mahone 14 Frank Tyree 11 Pam Smith 10 Don Alexander 7 Kelvey Benward 7
Don Mahone Construction
Peoples Bank of Commerce
First Citizens National Bank
Piedmont Natural Gas
2-10 Home Buyers Warranty
Ghertner & Company
American Heating & Cooling
Grove Park Construction
Reliance Heating and Air Conditioning
Barber Cabinet Company
Hermitage Lighting Gallery
Bonded Builders Warranty
Tennessee Housing Development Agency
LP Building Materials
Tennessee Valley Homes
C Ryan Designs
The Porch Company
Carbine & Associates
Metro Ready Mix
Morrison & Fuson
Tune Entrekin & White
Ole South Properties
Dixie Earth Movers
Pella Window & Door
Williamson County Ready Mix
Thank you Installation and Award Banquet sponsors!
Tennessee Bank & Trurst
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JANUARY Calendar Sunday
Installation and Awards Banquet
Chapters & Councils CHAPTERS CHEATHAM COUNTY CHAPTER Chapter President - Roy Miles: 615/646-3303 Cheatham County Chapter details are being planned. Next meeting: to be announced. Chapter RSVP Line: 615/377-9651, ext. 310 DICKSON COUNTY CHAPTER Chapter President - Mark Denney: 615/446-2873. The Dickson County Chapter meets on the third Monday of the month, 12:00 p.m. at the Ponderosa Restaurant in Dickson. Next meeting: to be announced. Topic: to be announced. Price: FREE, lunch dutch treat. Chapter RSVP Line: 615/377-9651, ext. 307 MAURY COUNTY CHAPTER Maury County Chapter details are currently being planned. Next meeting: to be announced. Chapter RSVP line: 615-377-9651, ext. 312; for callers outside the 615 area code, 1-800-571-9995, ext. 312 METRO/NASHVILLE CHAPTER Chapter President - John Whitaker: 615/843-3300. The Metro/Nashville Chapter meets on the fourth Monday of the month, 11:30 a.m. at the HBAMT offices. Next meeting:to be announced. Topic: to be announced. Price*: to be announced. Chapter RSVP Line: 615/377-9651, ext. 304
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ROBERTSON COUNTY CHAPTER Next meeting: to be announced. Robertson County RSVP line: 615-377-9651, ext. 313. SUMNER COUNTY CHAPTER The Sumner County Chapter meets on the fourth Tuesday of the month, 11:30 a.m. at the new Hendersonville Library. Next meeting: to be announced. Chapter RSVP Line: 615/377-9651, ext. 306 WILLIAMSON COUNTY CHAPTER Chapter President - BJ Hanson: 615/884-4935. The Williamson County Chapter meets on the third Tuesday of the month, 11:30 a.m. at the HBAMT offices. Next meeting: to be announced. Price*: to be announced. Chapter RSVP Line: 615/377-9651, ext. 305 WILSON COUNTY CHAPTER The Wilson County Chapter meets on the second Thursday of the month, 11:30 a.m. at the Five Oaks Golf & Country Club in Lebanon. Next meeting: to be announced. Chapter RSVP Line: 615/377-9651, ext. 309 *Builders free pending sponsorship. COUNCILS CUSTOM BUILDERS COUNCIL The CBC meets on the second Tuesday of the month, 11:30 a.m. at the HBAMT offices. Next meeting: to be announced. Council RSVP Line: 615/377-9651, ext. 311
GREEN BUILDING COUNCIL Council President - Erin Richardson: 615/883-8526. The Green Building Council meets on the fourth Wednesday of the month, 11:00 a.m. Next meeting: to be announced. Topic: to be announced. Price: free for Green Building Council members pending sponsorship; $20 for non-members with RSVP ($25 w/o). Council RSVP Line: 615/377-9651, ext. 308 HBAMT REMODELERS COUNCIL Council President - Don Mahone. The HBAMT Remodelers Council meets on the third Wednesday of the month, 11:00 a.m. at varying locations. Next meeting: to be announced. Location: to be announced. Topic: to be announced. Price: free for RMC members with RSVP; $15 for non-members with RSVP ($20 w/o). Council RSVP Line: 615/377-9651, ext. 301 MIDDLE TENN SALES & MARKETING COUNCIL Council President - Trey Lewis. The SMC meets on the first Thursday of the month, 9:00 a.m. at the HBAMT offices. Next meeting: Thursday, January 9. Topic:”THDA previews the Dodd Frank Act - plus other loan programs available in 2014.” Price: Free for SMC members pending sponsorship($10 w/o RSVP); $20 for non-members with RSVP ($25 w/o). Council RSVP Line: 615/377-9651, ext. 302.
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