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May, 2014

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THE

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 6 2014 Fishing Tournaments Underway

The 2014 Piedmont Natural Gas Bass Trail Tournament got underway last month with the first round at First Corners Marina.

9 Operation Finally Home a big successl

The Operation Finally Home program delivered another home to a wounded veteran thanks to the efforts of Carbine & Associates and a host of friends and neighbors. .

DEPARTMENTS 4 News & Information 11 SPIKE Club Report 12 May Calendar 12 Chapters and Councils

ON THE COVER: The Van Dorstons are presented their new home during the official ribbon-cutting ceremony in Kings’ Chapel. Full story on page nine. May, 2014

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news&info

Special guest speaker Mark McMillen, Williamson County Building Codes Director, addressed current housing industry issues during the April meeting of the Metro/Nashville and Williamson County chapters. A big thanks to Irving Materials, Inc. (IMI) for sponsoring the meeting.

New home sales down in March

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ales of newly built, single-family homes fell 14.5 percent to a seasonally adjusted annual rate of 384,000 units in March, according to data released recently by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. “We keep hearing from our members that tight credit conditions are preventing many first-time buyers and younger families from being able to buy a home,” said Kevin Kelly, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Wilmington, Del. “Congress must

Overly stringent underwriting standards for mortgages have hit first-time home buyers particularly hard. 4 The NAIL

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outline a clear policy on housing finance so that qualified buyers can get home loans. Otherwise, this continued uncertainty could threaten the housing recovery and overall economy.” “Overly stringent underwriting standards for mortgages have had a detrimental effect on modest-priced markets and have hit first-time home buyers particularly hard,” said NAHB Chief Economist David Crowe. “As a result, most of the sales are coming from a smaller pool of buyers who have a more established credit history, are more likely to finance with higher cash downpayments and are purchasing higher-priced homes.” Regionally, sales in March fell 21.5 percent in the Midwest, 14.4 percent in the South and 16.7 percent in the West. The Northeast was the exception to the rule, with a 12.5 percent increase. The inventory of new homes for sale edged up to 193,000 units in March, which is a sixmonth supply at the current sales pace. n

Guest speaker Michael Gass, international new business consultant and founder of top marketing blog “Fuel Lines,” spoke at the Sales and Marketing Coucil’s April meetingSpecial thanks to Ole South Properties and First Community Mortgage for sponsoring the meeting.

Trey Lewis welcomed a big crowd to the first meeting of the Infill Builders Council last month. Over 80 attendees convened at the HBAMT offices to discuss the council and its role in the association. Details about the council and upcoming meeting coming soon.


Economists say housing will continue on an upward path

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growing economy, pent-up demand, competitive mortgage rates and affordable home prices will keep housing on an upward trajectory through 2015. However, several obstacles including tight consumer credit, shortages of lots and labor and rising materials prices are hindering a more robust recovery, according to economists who participated in the NAHB’s 2014 Spring Construction Forecast Webinar. “Housing needs an improved economy,” said NAHB Chief Economist David Crowe, adding that the economy is expected to respond as payroll employment continues to grow and the unemployment rate slowly recedes from 6.7 percent in the first quarter of this year to 6.2 percent by the fourth quarter of 2015. Consumer confidence is back to pre-recession levels and the purchase of motor vehicles and home furnishings are on the rise, indicating that consumers are increasingly willing to buy big ticket items such as houses. Reflecting an increase in credit demand and economic growth, mortgage interest rates are projected to rise to 5 percent by the end of 2014 and 6 percent by the end of next year. Noting that these rates are still low by historical standards, Crowe said this would “not be a significant deterrent to expansion in the housing market.” With new-home sales averaging just 8.8 percent of total home sales, barely half the historical average of 16.1 percent, Crowe observed that “this is another reason to believe that the new-home market will have to make up existing ground.” However, he cautioned that builders continue to face a number of headwinds. “Supply constraints related to lots and labor and rising lumber, gypsum and OSB (oriented strand board) prices are hurting the ability of builders to meet demand,” he said. “Moreover, creditworthy borrowers, particularly younger families and first-time home buyers, are having difficulties in getting home loans.” Remodeling, sales and starts on the rise The NAHB Remodeling Index stands at 53 in the first quarter of 2014 and has been above 50 for six of the past seven quarters. A reading above 50 indicates that more remodelers report market activity is higher than report it is lower. NAHB is forecasting that residential remodeling will post a 3.8 percent increase in 2014 over last year and rise an additional 2.4 percent in 2015. New-home sales are expected to climb 29 percent from 431,000 in 2013 to 557,000 this year. Single-family housing production is projected to increase 22 percent from 621,000 last year to

760,000 in 2014 and surge an additional 55 percent to 1.18 million units in 2015. Banks awash in cash Agreeing that the economy is on an upward trajectory, Maury Harris, managing director and chief U.S. economist at UBS, said that financial lending institutions are sitting on a mountain of cash. “Banks have over $2 trillion of excess reserves. That’s with a ‘t,’” he said. “Banks would like to put that money to work and increase lending, which will help the economy.” In the aftermath of the recession, Harris said that normal household formations have fallen short by about 2.5 million as graduating college students were forced to move back in with their parents and young adults were doubling up in apartments. “As unemployment comes down and credit availability eases, Millennials (the 25-34 age group) will feel better about their economic circumstances,” said Harris. “I think we will see the shared household rate come down, less doubling up and a pickup in household formations.” Harris is forecasting 1.15 million housing starts this year (700,000 single-family and 450,000 multifamily) and 1.35 million next year (900,000 single-family and 450,000 multifamily). A gradual climb to normal Looking at the state statistics behind the national numbers, Robert Denk, NAHB’s assistant vice president for forecasting and analysis, cited a range of differences among the states in the amount of distress suffered during the recession and the progress that is being made in recovering. Housing production nationwide bottomed out at an average of 27 percent in early 2009 and reached 45 percent in the first quarter of 2014. In the worst hit states, housing fell to 10 to 15 percent of normal production while production only fell by half in other states with a better underlying economy. Fueled by a booming energy sector that is producing solid job and economic growth, Texas, Louisiana, Oklahoma, Wyoming, North Dakota and Montana are at the forefront of the housing recovery, with North Dakota now the first state to surpass its normal level of housing production. On a national basis, single-family housing starts are projected to get back to 70 percent of normal production by the end of this year and 93 percent of normal by the end of 2015, Denk said. In another way of looking at the road back to normal, by the end of 2015 the top 40 percent of states will be back to normal production levels, compared to the bottom 20 percent, which will still be below 80 percent. n

May is national home remodeling month Families remodel their homes for many different reasons. It may be to save money on utility bills, to redesign the space to better suit the family’s current lifestyle, or to be better stewards of our natural resources. But as the home building and remodeling industry celebrates National Home Remodeling Month in May, one thing is for sure—whether we call it energy efficient or green, remodeling that includes sustainable features is growing in popularity like never before. Home owners will find more options when they search for a professional remodeler with experience in green remodeling. Over the next five years the percentage of remodelers who expect to be doing more than 60% of their projects green will double. “Many remodelers are seeing increased interest in sustainable home features from home owners,” says Jason Broderick of Broderick builders, president of the Home Builders Association of Middle Tennessee’s Remodelers Council. “Remodeling your home can not only fulfill your family’s dream of a more comfortable and stylish home, but depending on the upgrades you choose, you can realize savings on utility costs, improve air quality for better health and strengthen the long-term value of your home.” Green remodeling incorporates sustainable, durable and healthier design into the renovation of existing homes. The increased interest in sustainable remodeling is due largely to the availability of more affordable products of higher quality as well as the integration of green features into standard construction practice. Some of the top upgrades that can make a home more energy efficient include putting in high-efficiency windows and low-flow water fixtures, replacing appliances and water heaters with ENERGY STAR®-rated models, increasing or upgrading the quality of insulation, and installing a high-efficiency HVAC system that is appropriately sized for the area that is to be heated or cooled. To learn more about remodeling or to find a remodeler in your area, visit the Home Builders Association of Middle Tennessee (HBAMT) at www.hbamt.org, or the National Association of Home Builders (NAHB) at www.nahb.org.

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Donnie Rubble (left) and Hassan Moghdom (right) took home first place honors for the Mid Tenn Flooring boat.

Tournament underway! H

BAMT’s first Piedmont Natural Gas Fishing Tournament of the year was held April 22 at Four Corners Marina. Mid Tenn Flooring’s Hassan Moghdom and Donnie Rubble took first place following the afternoon weigh-in. Moghdom and Rubble reeled in 17.52 lbs worth of catches. Donnie Whitaker and Luke Whitaker weighed in 14.12 lbs to earn second place honors for one of the Piedmont Natural Gas boats. And the American Heating & Cooling team of Kevin Israel and Todd Spann reeled in 12.25 lbs worth of catches to secure third place honors. The “Big Fish” award was taken home by Oliver Bradley and Jeff Johnson of the Jeffco Flooring boat for a catch weighing in at 5.60 lbs. Special thanks to title sponsor Piedmont Natural Gas; platinum sponsors ABC Supply Company and Petersen & Sons; and silver sponsors Reliance Heat & Air and Stonegate Mortgage. Next stop: Tues, May 20 at Mason’s Boat Dock. (Registration form on page thirteen.) n 6 The NAIL

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Company Boat

Fisherman

Wt.

Mid Tenn Flooring

Hassan Moghdom & Donnie Rubble

17.52

Piedmont Natural Gas

Donnie Whitaker & Luke Whitaker

14.12

American Heating & Cooling

Kevin Israel & Todd Spann

12.25

Petersen & Sons

Turtle Hill & Kevin Petersen

11.54

Triton Stone

Jim Ford & Mike Williams

11.30

Jeffco Flooring

Oliver Bradley & Jeff Johnson

11.21

Piedmont Natural Gas

Robert E. Lee & Rusty Parsons

10.65

Piedmont Natural Gas

Lamar Morgan & Joe Reese

6.00

CPS Land

Wayne Bobbitt & Danny Hankins

5.68

Piedmont Natural Gas

Jerry Deal & Danny Tally

4.11

Piedmont Natural Gas

George Brown & Milton Henderson

3.92


Above: Donnie Whitaker and Luke Whitaker with catches that helped them earn second place honors. Above right: Lamar Morgan from title sponsor Piedmont Natural Gas congratulates the second place team. Lower right: Oliver Bradley with the “Big Fish� award-winning catch reeled in by the Jeffco Flooring boat.

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Operation a success! Operation Finally Home a big success for the Van Dorston family.

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rom building a national HGTV Smart Home in Green Hills to presenting the keys to a new mortgage-free home to a veteran in Kings’ Chapel, April has been a busy month for the Nashville area custom builders Carbine & Associates. On April 1, Carbine & Associates, along with architect Preston Shea, were part of a huge media day where the 2014 HGTV Smart Home was revealed. Although the home will not be open for public tour, the HGTV Smart Home is part of a grand prize package valued at over $1 million that will be awarded this summer. In addition to the

home and all furnishings, the prize package includes a 2014 Lincoln MKZ Hybrid and $100,000 courtesy of Quicken Loans. During the giveaway period through June 9, eligible viewers can enter twice per day online: once at HGTV.com and once at HGTVRemodels.com, and can sign up for daily email reminders. HGTV Facebook and Twitter fans (#HGTVSmart) can check in for ongoing updates and new details. Check out hgtv.com/smart for official rules. Located in the premier Duncanwood Reserve neighborhood, this English cottage-style residence (photos on page ten) consists of three bedrooms and 4 1/2 baths

and features technology to connect the home’s appliances and devices, giving the homeowner better control over energy use, security, interior climate and lighting. HGTV professional house planner Jack Thomasson said,“Nashville is so much more than a thriving mecca for musicians. The city has developed a trendy food scene, diverse nightlife and an exceptional quality of life for its residents. With all the excitement of a bustling city combined with easy access to rolling green hills and lush natural beauty, Nashville is on the cutting edge for what ‘smart living’ means today.” The Carbine & Associates building team

Clockwise from left: Kix Brooks and Daryl Walny escort the Van Dorston’s to their new home. Top right: James Carbine greets the large crowd to the ceremony. Lower right: Brooks talks about the Operation Finally Home program.

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was headed up by company president John Montgomery with project managers Ray Kash and John Looney. The team was part of a HGTV Smart Home 2014 special which aired throughout April sharing what makes the HGTV Smart Home 2014 the smartest in HGTV history. The team was also featured in interviews on a DIY network show hosted by Chris Lambton giving a behind-the-scenes look at what it takes to plan, design, and build the smartest home in HGTV history. Visit the HGTV website for a ton of informative videos about the building process. The HGTV Smart Home 2014 is built to meet the Consumer Electronics Association’s (CEA) TechHome Rating System (THRS), a nationally-recognized specification for residential technology infrastructure. The home also has earned a Silver Level certification from the National Green Building Standard���. On April 17, the Carbine & Associates team, headed by James Carbine, founding partner, and Daryl Walny, vice president of operations, hosted a Welcome Home Celebration presenting the keys to a new mortgage-free home to decorated war veteran Luke Van Dorston as part of an Operation FINALLY HOME project in gated-community of Kings’ Chapel in Arrington, TN, also site of the fall 2014 Parade of Homes. Van Dorston is a decorated combat veteran with deployments to both Afghanistan and Iraq. Van Dorston flew over 140 combat missions, was involved in over 64 direct action raids, and directed 194 Close Air Support missions. As a result of these missions, Van Dorston suffers from severe PTSD and was diagnosed with a brain tumor in 2011. Van Dorston and his wife, Abby, have a two-yearold son named Brooks. Donating their building services, Walny also marshaled a ton of generous subcontractors and suppliers in producing the pretty French Country style home with Tudor accents designed by Chris Gill, The Gill Group. For a complete listing of contributors, visit Carbine’s website at CarbineAndAssociates.com. “Carbine & Associates has had the privilege of building so many wonderful homes over the years, and while we take pride in every home we build, we are especially proud to have our name on this one,” said James Carbine. “So many subcontractors and supplies have generously donated their time and products to make this beautiful custom French country home possible for the Van Dorstons as one small way to honor the service and sacrifices of Luke and our military.” LP Building Products (LP) served as the lead product sponsor for this project. The 10 The NAIL

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Above: the HGTV Smart Home in Duncanwood Reserve. Left: inside the kitchen of the Smart Home.

From left to right: Architect Preston Shea, C&A Ray Kash, interior designer Kelly Grokulsky, C&A John Montgomery, HGTV Jack Thomasson and Jason Moore.


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 March 31, 2014. Top 20 Big Spikes Jim Ford 912 Virgil Ray 820 Bill King 776 Mitzi Spann 671 Jim Fischer 566 Terry Cobb 565 John Whitaker 380 James Carbine 331 Jennifer Earnest 323 Dan Stern 306 Bruce Hancock 297 Kevin Hale 286 Tonya Jones 271 Reese Smith III 259 David Crane 238 Steve Moody 219 Sonny Shackelford 216 Michael Apple 185 Davis Lamb 182 Cyril Evers 181

home in Arrington is one of six Operation FINALLY HOME builds LP and American Country Countdown have committed to support. Kix Brooks surprised the Van Dorstons with the news about their new home from the Nashville CMA Music Festival in June 2013 and he escorted the family to the welcome home ceremony on the big day. “Our country’s safety and freedoms are protected by soldiers like Luke Van Dorston,” said Rick Olszewski, executive vice president for sales and marketing with LP. “Providing a home for Luke and his family is a small token of gratitude from us here at LP.” In addition to the support received from Carbine & Associates, Kings’ Chapel also played a pivotal role in the Van Dorston build. “Known for our community spirit and hospitality, the neighbors of Kings’ Chapel have already begun their special welcome to the Van Dorstons by providing all the appliances of the home as a result of a fundraiser. As land sponsors for the house, we are proud to continue the historic tradition of the property

Jackson Downey 174 Tim Ferguson 165 Jim McLean 164 Louise Stark 163 Harry Johnson 146 Trey Lewis 142 Steve Cates 140 C.W. Bartlett 138 Tonya Alexander 126 Steve Hewlett 119 Tom Kelley 115 Sam Carbine 113 James Franks 110 Carmen Butner 105 Johnny Watson 101 Dave McGowan 99 Bill Kottas 97 B.J. Hanson 96 Lee Santiago 95 Kim Dykes 89 Jeff Zeitlin 87 Duane Vanhook 83 Jordan Clark 81 Erin Richardson 76 Julie DuPree 73 Jeff Slusher 70 John Baugh 68 Wiggs Thompson 63 Don Bruce 62 Jim Ford, Jr. 62 Hill McAlister 57 Joe Morgan 54 Gerald Bucy 53 Beth Sturm 53 John Broderick 52 David Hughes 48 Al Davis 47

which was originally given to a Revolutionary War veteran for his service, Colonel William Edmondson,” said John Powell, developer of Kings’ Chapel community. And of course a big, big thanks to all our

Sheila Rawlings 47 Bernie Laine 46 Greg Langley 46 Benny Sullivan 46 Lori Fisk-Conners 45 Andrew Neuman 45 Bryan Edwards 44 Kay Russell 44 Peggy Krebs 39 John Ganschow 37 Chuck Clarkson 36 Frank Miller 36 Andy Wyatt 36 Brad Butler 35 David Lippe 35 Al Hacker 34 Ray Edwards 32 Dan Strebel 32 Michael Dillon 30 Steve Wheeley 30 Alvin Basel 29 Matt Burnett 25 Spikes Christina Cunningham 24 Don Mahone 17 Marty Maitland 17 Jess Dillon 16 Tracy Lomax 14 Frank Tyree 12 Derenda Sircy 10 Pam Smith 10 Don Alexander 9

event sponsors, including: Drees Homes, Ashton Real Estate Group, First Community Mortgage, Kings’ Chapel, Regions Mortgage, Tennessee Title Services, LLC, TNMedia, Trus Joist, and Wells Fargo Mortgage. n

Rep. Charles Sargent presents Van Dorston with a flag flown over Tennessee Capitol.

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MAY Calendar Sunday

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Dickson County Chapter meeting

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Metro/Nashville and Williamson County Chapter joint meeting

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HBAMT Remodelers Council meeting

Sumner County Chapter meeting

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Sales & Marketing Council meeting

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: Monday, May 19. 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: Tuesday, May 20. Topic: Guest speaker Marty Veto, President of GNAR, will deliver an “Update on the Real Estate Market.” Price: Builders Free pending sponsorship; $10 per person with RSVP ($20 w/o RSVP). 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: Tuesday, May 27. 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: Tuesday, May 20. Price: Builders Free pending sponsorship; $10 per person with RSVP ($20 w/o RSVP). 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 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 - Jason Broderick. The HBAMT Remodelers Council meets on the third Wednesday of the month, 11:00 a.m. at varying locations. Next meeting: Wednesday, May 21. 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, June 5. Topic: to be announced. Price: SMC members free thanks to our sponsors ($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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Nail 05 2014 pdf