Jul yaug15 final by Maryland Building Industry Association

July/August 2015 The exclusive magazine of MBIA

2015 CUSTOM BUILDER AWARDS Home is Where the Art is

DEATH OF THE SUBURBS IV

3 & IBC SOLARCITY

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Contact Robert McDonald 1-877-767-1800 Offices in Jessup, MD, Prince Frederick, MD and Chantilly, VA

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IN THIS ISSUE

FEATURES

LEGISLATIVE WRAP UP The 2015 Session Come to a Close COVER FEATURE

2015 CUSTOM BUILDER AWARDS And the Winners are...

DEATH OF THE SUBURBS PART IV The Trouble with Roads

MBIA’S CASINO NIGHT Pays off for Remodeler’s Council

HBCF’S BULL & OYSTER ROAST Food & Fun for Charity

IN EVERY ISSUE 2

EVENTS CALENDAR

10 ENGINEER’S TOOLBOX

42 NEW MEMBERS

PRESIDENT’S MESSAGE

36 FINANCIAL REVIEW

44 STARS CLUB

CEO’S MESSAGE

38 STATS & FACTS

44 ADVERTISER INDEX

LEGAL BRIEF

40 NEW PRODUCT SPOTLIGHT

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EVENTS CALENDAR

JULY Multifamily Council Site Tour The Pailsades & The Residences Hanover, MD July 9

Nationals vs. Orioles Camden Yards Baltimore, MD July 10

30 Builder’s Story

Building relationships that last a lifetime.

PWB’s Makeover 34 Extreme Networking A look at HBAM members featured on theLunch hit television show.

The Greene Turtle

Also Prince Frederick, MD 14 4 JulyPresident’s Message

n with past t our bout the

AUGUST

How 2012 Energy

EDITOR Kristin Josephson Hogle, Communications Director communications@homebuilders.org

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

DESIGN Heather Winkel, Art Director Corinne Thompson, Graphic Designer Network Design Group ndg@networkmediapartners.com

Helps You Reach The 2012 IECC Energy Code Requirements At Lowe Construction Costs!

HBAM LEGAL COUNSEL Linowes and Blocher

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

The Enviro-Dri Weather-Resista per hour (ACH), giving you the energy code targets, at a const current costs. ®

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

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

Ad List • The Sustainable Forestry Initiative® program promotes

*Changes in dates and locations of events listed on our calendar do occur. Please visit www.marylandbuilders.org for the latest information.

40 Foundations Merger

MBIA will continue to make a positive impact in our communities through BUILD MARYLAND July/August 15 charitable foundation.

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Contact Eddy Esplund, Tremco B “Energy Trade-Off Analys WRB can reduce air BUILD Maryland is published bimonthly by MBIA—the MarylandEnviro-Dri Building Industry Association, 11825 West Market Place, Fulton, MD 20759. The statements and opinions expressed herein are those IECC code. you meet the 2012 sustainable forest management. BUILD Maryland text and cover pages are printed on SFI certified Anthem Plus Gloss using soy ink. The Sustainable Forestry Initiative® program promotes sustainable forest management.

of the individual authors and do not necessarily represent the views of MBIA. The publisher reserves the right to accept or reject any editorial or advertising matter at its discretion. The publisher is not responsible for claims made by advertisers. POSTMASTER: Send change of address to MBIA, 11825 West Market Place, Fulton, MD 20759, USA. © 2015 MBIA. All rights reserved.

EDDY ES EE

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Bright future: Brookfield Residential goes solar in Maryland. When the Brookfield Residential team was looking at Maryland’s homebuilding market, they wanted something that could make their new community in Anne Arundel County stand out. “We were trying to think different,” said Gregg Hughes, the Vice President of Sales and Marketing for Brookfield Residential’s Washington D.C. Division. “Many of our competitors were selling really nice homes with great designs, but we wanted something that would be a real benefit to potential buyers—and we found SolarCity.” Brookfield Residential teamed up with SolarCity earlier this year to offer 119 solar townhomes in the new Oakview Village community in Glen Burnie. The three-level townhomes will produce their own clean energy, and owners will benefit from steady solar electricity rates for the next 20 years to protect them from rising utility power rates. The solar system is installed, monitored, insured and maintained by SolarCity as well, so Brookfield Residential and their homeowners have the reassurance that in the rare case that issues arise, SolarCity will handle everything.

“Solar will help us sell more homes, it’s absolutely a value. It’s a good way for our buyers to have energy savings that are real—something they can see from day one—and it’s really cutting edge.” “Solar will help us sell more homes, it’s absolutely a value,” said Hughes. “It’s a good way for our buyers to have energy savings that are real—something they can see from day one—and it’s really cutting-edge. When you can explain the benefits of solar to a buyer, it’s a win-win.” SolarCity has also worked with Brookfield Residential’s D.C. Division on the PureBlue Concept Home—a model home dedicated to showcasing superior energy-efficient designs to help save homeowners money—at the Avendale community in Prince William County, Virginia. “There is huge support for solar and other alternative energy sources. The next steps are offering things like home energy storage and maybe even getting people off the grid. It’s a

big positive and we’re looking to be out in front of a growing trend. In other parts of the country, solar is far more mainstream. Here in the Mid-Atlantic, it’s still relatively new and we’re excited about that,” said Hughes. “We’re expecting solar to be a big success [at Oakview Village] and will hopefully continue spreading across the nation. We’re early in the game but our buyers are definitely excited. Most important to us is that we do what we think is best for our homeowners,” said Hughes. “We truly believe solar is a good alternative for homeowners that helps them save money and the environment.”

For new homebuilders. The SolarCity Homebuilder Program gives builders and developers the opportunity to upgrade homes with solar power systems that can help meet 2015 energy code updates, without adding to the home’s purchase price. Even more, solar systems may help builders and developers sell homes faster thanks to the growing demand for sustainable offerings.

Visit www.solarcity.com/homebuilder to learn more.

builders@solarcity.com | 888-767-4399 CT HIC 0632778/ELC 0125305, DE 2011120386/ T1-6032, DC 410514000080/ECC902585, MA HIC 168572/EL-1136MR, MD HIC 128948/11805, NC 30801-U, NH 0347C/12523M, NJ NJHIC#13VH06160600/34 EI01732700, PA HICPA077343, RI AC004714/Reg 38313, VA ELE2705153278, VT EM-05829. Nassau H2409710000, Greene A-486, Suffolk 52057-H, Putnam PC6041, Rockland H-11864-40-00-00, Westchester WC-26088-H13, N.Y.C #2001384-DCA. SCENYC: N.Y.C. Licensed Electrician, #12610, #004485, 155 Water St, 6th Fl., Unit 10, Brooklyn, NY 11201, #2013966-DCA.

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PRESIDENT’S MESSAGE

The exclusive magazine of MBIA

GET YOUR (SELLING) HOUSE IN ORDER!

s the end of the summer season quickly comes to a close, it is time for us in the new home sales industry to turn our attention toward the Fall selling season and getting our communities “sales ready.” After the boiling temperatures this summer, landscaping, signage, and general appearances tend to diminish the crispness of our communities. Now is the time to take inventory of your product presentation. It is always exciting to take time to refresh—not only what the public sees on site, but also to look at ways of repositioning ads, themes and promotions to make your communities stand apart from the competition. While traditionally our industry has experienced distinct “Fall” and “Spring” selling seasons, have you noticed that summer can be just as busy on site as the prime selling months? In fact, at my company we no longer look at summer as a down time of the year where customers have better things to do than buying a new home. Our summer sales goals reflect an attitude that many buyers are still actively looking to purchase, and our spending on advertising and promotions show we are still interested in attracting those serious buyers who have skipped summer vacation in pursuit of finding their new homes. In the pre-internet days, print advertisers sold us on their special New Homes sections and seasonal promotional printings. Online advertising has changed the way in which we reach our customers, and more importantly, how our customers reach us when they decide it is the right time to buy a new home. This has blurred the seasonality of the Spring and Fall markets, making for a marathon run that starts in January and lasts right up until Thanksgiving. Fall becomes a good time to focus the operations, refill the tank and polish the wheels of the machine. Organizationally, Fall is also a good time to reflect on your business year to date. Have you achieved many of the goals that you had set for your team? What can you do now to refresh and refocus your efforts, to make yourself as crisp and “sales ready” as the builders’ models and advertisements? As we all may have kicked back a bit to enjoy the busy summer season, now is the time to get our heads back into the business of building. Perhaps one of your goals this year was to become more involved in MBIA, to get more mileage out of your membership dollars. With the “new” organization of MBIA, many of our programs and activities have remained the same, but there are several changes that have occurred as well. If you haven’t already done so, visit our new website at marylandbuilders.org. Log in to view and update your company’s directory profile— add your logo, refresh your preferences, add new team members, so that you and your employees can stay up to date with events and communication. As you read through this issue, I hope you enjoy reviewing some of the fabulous events we have had these past few months, including a tribute to Bob Goodier at the Homebuilders Care Foundation’s Bull and Oyster Roast, the Custom Builder Awards presentation, and the Remodeler’s Council Casino Night. As part of preparing yourself to be “sales ready”, why not make plans now to attend one of the many upcoming TOM BAUM programs planned for the Fall—I am certain President, MBIA you won’t regret it!

BUILD MARYLAND

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2015 MBIA LEADERSHIP EXECUTIVE COMMITTEE President, Tom Baum 1st Vice President, David Lunden Vice President/Advocacy, Baltimore Mkt., Steve Smith Vice President /Advocacy, Washington Mkt., Hillary Colt Vice President /Advocacy, Eastern Shore Mkt., Jeff Caruso Vice President /Advocacy, Maryland State Mkt., Steve Breeden Vice President /Associates, Lynn Elahi Treasurer, Kim Palmisano Secretary, Tom Hudson Life Director, Rich Thometz Legal Counsel, Jack Orrick Immediate Past Co-President, Russ Dickens Immediate Past Co-President, Clark Wagner

CHAPTER PRESIDENTS Advocacy/Anne Arundel County, Jim Krapf Advocacy/Baltimore City, Brooke Kaine Advocacy/Baltimore County, David Murphy Advocacy/Carroll County, Jim Mathias Advocacy/Charles County, Doug Meeker Advocacy/Eastern Shore, Bob Purcell Advocacy/Howard County, Jamie Fraser Advocacy/Montgomery County, Raquel Montenegro Advocacy/Prince George’s County, Ken Dunn Advocacy/Southern Maryland, Tom Thomas Advocacy/Upper Chesapeake, Michael Charlton Advocacy/Washington DC, Stephen Alfandre

COUNCIL CHAIRS Builder Mart, Tim Nichols Custom Builders Council, Larry Cafritz Green Building Council, Karen Benner Land Development Council, Sandy Marenberg Multifamily Housing Council, Tom Marshall Professional Women in Building Council, Peggy White Remodelers Council, Joe Smith Sales & Marketing Council, Yvonne Deardorff

MEMBERS AT LARGE Brian Afnan Tim Ellis Howard Katz Mark MacFarland Michael McCann Timothy Morris

Tim Nichols Cindy Plackmeyer Dusty Rood Michael Schueler Robert Spalding

SUBSIDIARIES Builders Development Guaranty Group/President Scott Nicholson Home Builders Care Foundation/President Liza Bowles PUBLISHER Lori Graf, CEO lgraf@marylandbuilders.org EDITOR Kelly H. Grudziecki Director, Internal Communications kgrudziecki@ marylandbuilders.org

ADVERTISING Chris Baughan Sales Manager cbaughan@marylandbuilders.org DESIGN The YGS Group Art Director, Megan Meckley Graphic Designer, Zon Buckley Account Manager, Kali Eskew

Maryland Building Industry Association 11825 W. Market Place Fulton, MD 20759 Ph: 301-776-MBIA www.marylandbuilders.org Info@marylandbuilders.org

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CEO MESSAGE

NAHB – YOUR SUPPORT TEAM IN WASHINGTON

s most of you know, as a member of the Maryland Building Industry Association (MBIA), you are also a member of the National Association of Home Builders (NAHB). I recently spent two days at NAHB’s headquarters in Washington, DC meeting with staff from various departments as well as fellow CEO’s of HBAs from around the country. I can honestly say that even though I have been with the Association for more than seven years, after those two days, I still came away with several new ideas and learned some new things. Most people’s eyes glaze over when I start talking about NAHB. They don’t realize the amount of information, education and expertise that is available, not only for us as an Association, but also for our members, both large and small. For example, did you know that any NAHB member can use their legal services? This includes research on individual company issues as well as reviewing proposed ordinances and more. There are also many business management services that can help you grow your business. They provide tools and resources for business growth and increased profitability. Check out some other services provided by NAHB including: • Online Education • Solutions to difficult management challenges • Technical research and analysis in areas, including: • Housing finance • Construction, Codes & Standards • Environmental Policy • Labor, Safety and Health • Land Use and Design • Sustainability and Green Building • Economics and Housing Policy • Construction Liability • Public Relations Assistance • Litigation Assistance • Contract templates • Marketing templates • International Builders Show- 1,200 exhibitors, education classes, networking, new product showcases etc. On top of all of this, NAHB constantly advocates for our industry on federal issues such as tax reform, immigration reform, energy codes, floodplains and much more! This is just a brief summary of all that NAHB provides. If you are looking for assistance within the industry, consider MBIA and NAHB your support team! And finally, some exciting news out of NAHB. They just revamped and released LORI GRAF a brand new website. I encourage you to go CEO, MBIA to www.nahb.org and check it out.

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LEGAL BRIEF

BUILDING INDUSTRY COMPLIANCE WITH WAGE AND CLASSIFICATION LAWS BY MARC WERTHEIMER & RACHEL BROWDER, SELZER GURVITCH RABIN WERTHEIMER POLOTT & OBECNY

The Maryland Workplace Fraud Act prohibits employers in the construction and landscaping industries from improperly classifying workers as independent contractors rather than employees. The Act presumes an employer-employee relationship unless the worker is exempt or the employer demonstrates that: (1) the person performing the work is free from control and direction over his performance; (2) the person customarily is engaged in an independent business of the same nature; and (3) the work is outside the employer’s usual course of business or is performed outside the employer’s place of business. Under the Act, the employer must provide notices alerting independent contractors of the consequences of their classification as such (rather than as employees) and have the independent contractor sign a document acknowledging such classification. These documents must be provided in English and Spanish and can be downloaded from the Maryland DLLR website. Employers must preserve certain records for three years, including documents identifying workers’ classification, pay rate and method of payment, as well as copies of any independent contractor or exempt person’s licenses or registrations. The penalties for non-compliance can be serious. For instance, employers who fail to provide or maintain appropriate records or notices can be assessed a $50 penalty for each day they fail to provide notice. Employers found to have knowingly misclassified their workers can be hit with fines of $5,000 per misclassified employee – a figure that doubles if the employer previously violated the law and quadruples upon a third violation.

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In addition to such penalties, employers could also be liable to employees for restitution and an additional award of up to three times the restitution awarded. Separately, the Maryland Prevailing Wage Law applies when a contractor or subcontractor participates in Statefunded or assisted contracts for the construction, alteration, or repair of “public works”; namely, those (1) that exceed $500,000; (2) concern projects constructed for public use or benefit; (3) that are paid for wholly or partly by public money; and (4) that are constructed for a “public body” (which includes many state or local departments or agencies and WSSC). If a project meets these criteria, the contractor and subcontractor must pay covered workers the prevailing wage rate determined by the Maryland Commissioner of Labor and Industry. Five local Maryland jurisdictions – Allegheny, Charles, Montgomery, and Prince George’s counties and Baltimore City – also have their own prevailing wage laws. Violations of any of these laws can result in penalties ranging from fines and restitution to prohibition from engaging in future public works projects. While the Maryland Prevailing Wage Law applies to certain public works contracts, the Maryland Living Wage Law separately imposes minimum wage requirements on contractors and subcontractors participating in State “services contracts;” that is, certain contracts (1) approved on or after October 1, 2007; (2) that involve the provision of maintenance or information technology services; (3) exceed $100,000; (4) employ 11 or more people for 13 or more consecutive weeks; but (5) do not involve public service companies,

non-profits, interagency agreements, agencies exempt from State procurement law, or county and municipal contracts (although some local governments have their own requirements). If a services contract meets the criteria, then the contractor and subcontractor must pay covered workers the living wage applicable to the jurisdiction where the services are performed. If the wage rate increases during the contract term, the employer must pay the increased wage and cannot request an increase in the contract price. As a consequence, bidders on services contracts subject to the Living Wage Law should incorporate clauses into their bids that pass through such increases. Like the Prevailing Wage Law, the Living Wage Law also requires employers to maintain and submit payroll records and other data and subjects violators to penalties and exposes them to employee lawsuits to recover wages. Given the trend in Maryland labor law, the Commissioner’s broad authority to investigate, and the heavy fines available for violations of these laws, companies doing construction and landscaping business in Maryland or providing services to certain State agencies should review their employment classifications, wage policies, and recordkeeping practices to ensure not only that they comply, but that they can demonstrate compliance. Marc Wertheimer practices real estate, corporate/business, banking/lender representation, and tax planning law, focusing on complex real estate and business transactions. Rachel Browder practices construction and commercial litigation law. They can be reached at (301) 986-9600 or at selzergurvitch.com.

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ENGINEER’S TOOLBOX

WATERS, WATERS EVERYWHERE BY ANDREW T. DER, ANDREW T. DER & ASSOCIATES, LLC

While walking in the woods near a stream, I notice I am not standing in water – but this field evaluation reveals that the U.S. Environmental Protection Agency (EPA) may have another opinion. Many are familiar with the need to establish limits of open water, streams, and wetlands for potential construction impact compliance. But what is not clear, is whatever that limit may be, it has a greater ripple effect beyond wetland permits. Defined federal waters limits can also affect the outcome of other local, state, and federal water regulatory processes.

own additional 100-foot buffer. Local county natural resources inventory and forest conservation ordinances frequently add their own water and stream setback buffers of usually 100 feet or more. These are further expanded by steep slopes and erodible soils. Everyone following along? And now you know why existing site plan sheets look so cluttered. But wait, there’s more. Regardless of how waters are federally defined, they can also cross over to other CWA provisions including the state-issued Section 401 Water Quality Certification (WQC), which accompanies any Section 404

...any further regulation of waters of the U. S. under the CWA could be an additional and unwarranted burden… How? Current impacts to “waters of the United States” are regulated by the local U. S. Army Corps of Engineers (Corps) District under, primarily, Clean Water Act (CWA) Section 404. In Maryland this is administered concurrently with the state program in a joint federal/state permitting process. The Corps’ definitions include navigable waters, headwaters, and wetlands – and their determinations can also be a basis for the Maryland Department of the Environment (MDE) Nontidal Wetland and Waterway Permit, as well as its Tidal Wetlands Permits and License. Maryland additionally adds the 100year nontidal floodplain, 25-foot nontidal wetland buffer, isolated wetlands, and tidally mapped waters to its state regulation. For tidal waters in the Chesapeake Bay Critical Area (CBCA), the CBCA Commission also emplaces their

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permit, and includes the EPA’s Antidegradation Policy along with MDE’s higher quality Tier II water setback buffers. Certainly not least, is also the Section 402 Natural Pollutant Discharge Elimination System (NPDES) program. As the basis of the state’s and local jurisdiction’s MS4 permits, as well as the NPDES Construction General Permit Notice of Intent (NOI) process, it can also drive acceptable Erosion and Sediment (E/S) control compliance. Such plans require Best Management Practice (BMP) E/S designs – and for subsequent stormwater management (SWM) plans, Environmental Site Design (ESD) to the Maximum Extent Practicable (MEP) per the MDE SWM law. Lest we forget, in the end BMPs need to control flows prior to release into waters – wherever they are defined to be.

While physical limits of waters of the U. S. may be subjective, uniform rule making in concept is not a bad thing. A standardized and consistent approach to defining regulated, or jurisdictional, waters including wetlands is a good thing. But not achieving consensus on what those are on the ground is the critical issue. Both the Corps and EPA regulate “discharges”, or impacts, to waters of the U. S. – but what are they? Long debated, this definition is coming to a head after EPA proposed draft federal rules last year intending to achieve consistency and clarity. But does it? Despite the comment period being over, the jury is out on that, while the rule’s merits continue to be deliberated among legislators and stakeholders alike. In the end, any final rules will still need to be interpreted by people in the field based on physical character and the industry needs to continue to proactively work with the legislative process to assure equitable and technically defensible regulations. In the absence of comprehensive rules, the federal agencies historically have struggled to make practicable determinations of waters of the U.S. limits based on policy, the ordinary high water (OHW) mark, and a 1987 wetland delineation manual, leaving some arguments settled by the U. S. Supreme Court - somewhat reducing the Corp’s jurisdiction. Notable rulings include that jurisdiction cannot be based on a connection alone (“Rapanos”), nor can it extend to isolated waters (“SWANCC”). Opponents assert that, despite the proponents’ view, the draft rules may themselves create new confusion and expand federal jurisdiction beyond what

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may be viewed as technically substantiated – and even contradict what the Supreme Court intended. New definitions of terms such as tributary, neighboring, floodplain, and riparian area may allow more waters to come under federal authority. These vaguely defined terms may establish the “nexus” for the Corps to impose oversight of more upland activities and projects. Although certain ditches are non-jurisdictional under the Rapanos decision, the proposed rule’s definition of tributary may include more ditches subject to regulation. Further, the primary scientific analysis effort used to technically document the basis for the rule changes, is still considered by some to be incomplete and inadequate. Runoff treatment systems and non-wetland swales, not currently regulated when associated with BMPs and SWM plans, may now be subject to regulation bringing SWM and land use into the purview of a federal water permitting program. If so, more jurisdictional waters may increase activities subject to CWA permitting, including subsequent NEPA

analyses and mitigation requirements increasing the costs of obtaining a Corps (and MDE) permit with the greatest burden on small landowners. What is unique to Maryland, is its need to consider the effects of any rule making in the context of their Chesapeake Bay Total Maximum Daily Load (TMDL) – an acronym associated with the “Rain Tax” among other things. This portion of Section 303(d) of the CWA puts the Bay on a pollution diet by mandating state and county Watershed Implementation Plans (WIP). Its modeling assumptions may not adequately account for Maryland’s other progressive and advanced layers of regulation already in place prior to the WIP – so assuming that any new growth will need to be offset as if no other mitigative criteria exist, may even be redundant as well as an overly intrusive de facto federal land use policy. The global concern would be that - in light of “pre-TMDL” water quality management and restoration requirements coupled with a robust SWM law of ESD to the MEP - any further regulation of

waters of the U. S. under the CWA could be an additional and unwarranted burden further shifting water resource regulation from the state to the federal government. Legislators and stakeholders continue to clash over the clarity of water rules that may not be so clear, and recent legislative actions to reconsider may offer some relief. A pending April House Bill proposes to withdraw the rules and re-engage the process more meaningfully. A more recent Senate Bill counterpart in May would require the agencies to withdraw their proposal to revise waters of the U. S. parameters to complete further consultation with state and local governments, business stakeholders, and produce an accurate cost-benefit analysis among other things. Stay tuned. Andrew T. Der is Principal of Andrew T. Der & Associates, LLC practicing in the consulting industry since 2001, previously completing 18 years of service at the Maryland Department of the Environment. He can be reached at 410 491 2808 or AndrewTDer@comcast.net.

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LEGISLATIVE WRAP UP

MARYLAND 2015 GENERAL ASSEMBLY SESSION COMES TO A CLOSE BY KATIE MALONEY, MALONEY & ASSOCIATES

The 2014 election results brought a great amount of anticipation of the 2015 General Assembly Session. Larry Hogan pulled off a surprise win becoming only the second republican governor in the past 40 years and an unprecedented number of new legislators from across the State came to Annapolis in January with a lot of enthusiasm and new ideas. The Maryland Building Industry Association (MBIA) reviewed more than150 of the over 2,200 bills introduced by the Senate and the House this year. The bills reviewed address a myriad of issues including professional licensing, environmental initiatives, real property and land use issues and tax increases and decreases. Key issues that MBIA worked on this year include the following subject areas: ENVIRONMENT Stormwater-several bills that would repeal the requirement for local jurisdictions under EPA MS-4 permits establish a fee. While the Governor-sponsored bills died, Senate Bill 863 introduced by the President of the Senate passed

The Maryland Building Industry Association reviewed more than 150 of the over 2,200 bills introduced by the Senate and the House this year.

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and was signed into law. The measure removes the fee requirement but replaces it with a reporting requirement that includes a financial assurance plan. The plan must be submitted to the Maryland Department of Environment every two years and for review. Counties must have at least 75% of the total funding they estimate necessary to comply with their MS-4 permit. Shoreline Risk Assessment-This measure died without action in the Senate. As introduced, Senate Bill 256 would require state agencies and the University of Maryland to study the impacts of climate change and sea level rise on major cities and towns and the agricultural industry. It is likely that this legislation will be reintroduced in the future. Statute of Limitations for Administrative Penalties-This business friendly bill, House Bill 509, establishes a statute of limitations for administrative penalties for MDE permits. The statute of limitations would begin to run once the violated has been remedied. The bill passed and was signed into law. PROFESSIONAL LICENSING AND CONSTRUCTION ISSUES Building Codes-The legislature passed identical House and Senate bills (SB 262/HB 323) that require the Department of Housing and Community Development (DHCD) to establish equivalencies to comply with the Energy Code. This requirement will allow builders more flexible ways to comply with the Energy Code without compromising energy efficiency. New Home Sales Contracts-Senate Bill 649/House Bill 1138 were amended

to clarify that new homes sales contracts that include a financing contingency provision must explicitly allow either the purchaser or the seller to terminate the contract within the contingency period stipulated if financing is not obtained. Home Builder Guaranty Fund-Builders are required to be registered with the Attorney Generalâ&#x20AC;&#x2122;s Office of Consumer Protection and to pay into a guaranty fund to satisfy consumer complaints. House Bill 154 increases the maximum claim amount against the fund to $7,500 that the Division can award without a hearing. If either party requested a hearing, one will still be held. TRANSPORTATION State Highway Access Permits-Three bills were introduced this Session that addressed State Highway Administration (SHA) Highway Access Permit issuance. Senate Bill 656/House Bill 621 and House Bill 762 all died in Committee. The industry will work over the interim with SHA to identify ways to improve the process and better quantify engineering standard requirements. Bicycle and Pedestrian Priority Areas-Senate Bill 371/House Bill 450 require SHA to consider designating existing areas identified by local jurisdictions as bicycle and pedestrian priority areas under an existing program promoting the construction and use of bicycle pedestrian paths. Katie Maloney is a principal at Maloney & Associates and she is the Sate Lobbyist for the Maryland Building Industry Association. For a complete report or for more information about these or related issues, please contact Katie Maloney at katmaloney@verizon.net.

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2015

CUSTOM BUILDER AWARDS From Infill to Ocean

Custom homebuilders and architects throughout the greater Baltimore and Washington region were awarded top honors for their fine design and quality workmanship in the MBIA Custom Builder Awards on May 28 at the Greenbelt Marriott. While a large number of the entries came from the Bethesda/Chevy Chase area, we also received some from Harford and Anne Arundel Counties, plus the Eastern Shore and the District of Columbia. Over two long days, a diverse team of judges viewed both interior and exterior of the homes in addition to reviewing detailed written information, photographs and plans. In this competitive custom housing market, all of these winners are shining examples of the talent and expertise that our area has to offer.

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GOLD AWARD

Speculative Home from 3,500-5,000 sq. ft. Builder: Castlewood Consulting, LLC Architect: James McDonald Bethesda, MD

SILVER AWARD

Speculative Home from 3,500-5,000 sq. ft. Builder: Douglas Construction Group, LLC Architect: Claude C. Lapp, AIA Chevy Chase, MD

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GOLD AWARD

Speculative Home from 5,000-7,500 sq. ft. Builder: Bethesda Builders, Ltd. Architect: GTM Architects Bethesda, MD

SILVER AWARD

Speculative Home from 5,000-7,500 sq. ft. Builder: Mid-Atlantic Custom Builders Architect: Custom Design Concepts Bethesda, MD

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GOLD AWARD

Speculative Home over 7,500 sq. ft. Builder: Castlewood Consulting, LLC Architect: Castlewood Consulting, LLC Bethesda, MD

GOLD AWARD

Speculative Traditional Home Builder: Mid-Atlantic Custom Builders Architect: Custom Design Concepts Bethesda, MD

marylandbuilders.org

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SILVER AWARD

Speculative Traditional Home Builder: Chuck Sullivan Homes Architect: Studio Z Design Concepts Bethesda, MD

GOLD AWARD

Speculative Transitional Home Builder: Three Brotherâ&#x20AC;&#x2122;s Land Co. Architect: Claude C. Lapp, AIA Bethesda, MD

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Designs for every room.

Speculative Transitional Home Builder: Mid-Atlantic Custom Builders Architect: Custom Design Concepts Bethesda, MD

SILVER AWARD

Custom designed storage solutions to fulfill your dreams and suit your lifestyle. Call us today for a complimentary in-home design consultation.

BALTIMORE Sulphur Spring Rd.

SEVERNA PARK Park Plaza

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GOLD AWARD

Custom Home Under 3,500 sq. ft. Builder: Douglas Construction Group, LLC Architect: Studio Z Design Concepts Bethesda, MD

GOLD AWARD

Custom Home from 3,500 to 5,000 sq. ft. Builder: TailorCraft Builders, Inc. Architect: Spire Architecture Annapolis, MD

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SILVER AWARD

Custom Home from 3,500 to 5,000 sq. ft. Builder: Three Brother’s Land Co. Architect: GTM Architects Bethesda, MD

Your houses. Our land. (Imagine the possibilites.)

GOLD AWARD

Custom Home from 5,000 to 7,500 sq. ft. Architect: Studio Z Design Concepts Builder: Sandy Spring Builders Bethesda, MD

Reese Road, Anne Arundel County, MD 30 single family finished lots $205,000 per lot Greenfields @White Marsh Bird River Road, White Marsh, MD 37 single family finished lots $135,000 per lot Phase II 59 single family recorded lots $55,000 per lot

Curtis Farm TDRs Howard County, Maryland 11 eastern TDRs which transfer and add density to subdivisions in eastern Howard County at a density of 1 TDR per 1 additional single family lot 1 TDR for 2 additional town home lots 1 TDR for 3 additional multi-family units $60,000 per TDR

Townhome Lots S. Dolfield Road, Owings Mills, MD $30,000 per lot

Woodlawn Aberdeen, Maryland 103 single family lots plus 14 acre parcel zoned R-3 $6,800,000

Stephen J. Ferrandi, Director of Land Brokerage • Accredited Land Consultant (ALC) licensed through

marylandbuilders.org

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• 410-290-1110

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SILVER AWARD

Custom Home from 5,000 to 7,500 sq. ft. Architect: GTM Architects Builder: Gibson Builders Washington, DC

BRONZE AWARD

Custom Home from 5,000 to 7,500 sq. ft. Builder: Castlewood Consulting, LLC Architect: Castlewood Consulting, LLC Bethesda, MD

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GOLD AWARD

Custom Home from 7,500 to 12,500 sq. ft. Builder: Sandy Spring Builders. LLC Architect: GTM Architects Bethesda, MD

RESIDENTIAL WARRANTY COMPANY, LLC

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SILVER AWARD

GOLD AWARD

Transitional Custom Home under 5,000 sq. ft. Builder: Anthony Wilder Design/Build, Inc. Architect: Sean Mullin, AIA Rehoboth Beach, DE

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Custom Home from 7,500 to 12,500 sq. ft. Builder: Battaglia Homes, LLC Architect: GBL Designs Fallston, MD

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GOLD AWARD

Contemporary Custom Home Builder: Lang and Company Architect: Cynthia Shoup Schiffin, AIA Annapolis, MD

GOLD AWARD

Traditional Custom Home Builder: Sandy Spring Builders. LLC Architect: Studio Z Design Concepts Bethesda, MD

marylandbuilders.org

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SILVER AWARD

Transitional Custom Home under 5,000 sq. ft. Builder: Sandy Spring Builders, LLC Architect: Studio Z Design Concepts Bethesda, MD

GOLD

Transitional Custom Home over 5,000 sq. ft. Builder: Laurence Cafritz Builders Architect: Sutton-Yantis Architects Bethesda, MD

Congratulations to all the winners! To see more pictures of these winning homes, visit www.marylandbuilders.org. Finally, a special thank you to Home & Design magazine, our Official Media Partner, as well as to our Gold sponsor Vintage Security and our Friend Sponsor Schlage Lock Co.

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July/August 15

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

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T he

DEATH

of the SUBURBS PART IV

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THE TROUBLE WITH ROADS BY DAVID S. THALER, P.E., L.S., F., ASCE, F., NSPE AND VICTORIA M. BALLESTERO, EIT, D.S. THALER AND ASSOCIATES, INC.

e are drowning in a sea of traffic. A recent article in The Washington Post confirmed what everyone suspected—D.C. Metro area traffic is the worst in the country. America is the most car dependent country on earth. The average American spends 47 hours annually sitting in traffic (according to Time Magazine, March 2014) and it’s not likely to get any better in the future. By 2020 the average driver is expected to spend an additional seven hours per year stuck in traffic and one recent study estimates that by 2030, the cumulative economic cost of traffic congestion in the U.S. will be a staggering 2.8 trillion dollars. The inability to get around will inevitably affect the way we live and work, but the impact upon the homebuilding industry will be especially severe because traffic is the most common objection raised to new development. There are several causes of the huge increase in traffic but one is our low density, spread out form of development. Paradoxically, low density development actually creates traffic - the more spread out we all are, the more we must drive to fulfill the basic functions of life. Not so long ago, kids simply went outside to play, but now, they must be chauffeured to school, piano lessons, soccer, and everywhere else, and this generates a lot of traffic. The usual solution proposed to cure traffic congestion is to build more roads, but that is a failed strategy for two reasons. First, it’s simply too expensive. There isn’t enough money to maintain America’s existing aging roads and bridges, much less to build new ones. And second, roads built to cure congestion actually create it because new roads change behavior in ways not usually considered by traffic engineers. Take for example Interstate 795, the Northwest Expressway in Baltimore. One of the first freeways conceived in Maryland, its planning dates back to at least 1947. The highway was originally designed to relieve congestion along Reisterstown Road, a main thoroughfare out of northwest Baltimore. After years of planning, the Expressway was finally constructed and fully opened in 1987. Initially, it reduced traffic on Reisterstown

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Road as expected, but by reducing commuting times, it encouraged development in Owings Mills, Reisterstown, Westminster and even further out. Before long, Reisterstown Road was as congested as it was before I-795 was built. Today the road is overcrowded, used by up to 60,000 cars per day, and widening it is projected to cost hundreds of millions of dollars. Another paradox about roads is that roads designed to be “safe” aren’t. Design speed, is an important concept in traffic engineering that is not well understood—even by engineers. It is a selected speed that determines certain geometric features of a road. The higher the design speed, the straighter and flatter the road must be and the greater the required sight distance. But design speed often bears little relation to actual speed. A tenet of modern highway engineering practice is that wider, straighter, and flatter roads are safer and so residential streets are often designed for a certain speed, say 40 mph and then posted at a lower one, say 30 mph. The thinking is that the higher design speed provides a safety factor for the occasional speeder. But it doesn’t work that way. Roads exert a powerful psychological force upon drivers who tend to drive at a speed appropriate for the road rather than the posted one. So roads that are designed straighter and flatter which are supposed to be safer actually aren’t because their design encourages speeding.

Above is a road in Baltimore City. In somewhat older communities such as this, even though the streets are quite flat and straight, the relatively narrow street and parallel parked cars, together with the formal line of trees and over-hanging canopy, tend to create a psychological barrier and a sense of enclosure causing traffic to automatically slow down. A side benefit of not having a road designed like a superhighway through the middle of a neighborhood is that this type of design creates a pleasant, pedestrian-friendly community. Such a road would likely never be permitted by most modern road codes—the street is too narrow, on-street parking would probably be prohibited, and trees would likely not be allowed in the public right-of-way because of maintenance concerns. Yet, these types of communities are the most desirable and expensive in which to live. This street too is posted for 25 mph, but you don’t have to be told, for the design of the street exerts such a powerful influence on the driver. Counter intuitively, narrower more curved roads, which are thought to be more dangerous are actually safer because they force drivers to stay alert and slow down. One telltale sign a road is over designed is the presence of traffic calming devices.

“THERE ARE SEVERAL CAUSES OF THE HUGE INCREASE IN TRAFFIC BUT ONE IS OUR LOW Above is a typical subdivision road. It is straight, flat, and wide. In fact, it’s too wide for the amount of traffic generated by the community it serves. This road is posted for 25 mph but most people drive it much faster. This road is over-designed. Roads such as this in residential neighborhoods promote speeding and create an unpleasant environment for the residents.

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DENSITY, SPREAD OUT FORM OF DEVELOPMENT.”

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Above is a residential community in Anne Arundel County. A median was installed to narrow the roadway and to slow traffic. Notice the 10warning signs on the little island and yet, inevitably someone will drive right through it. This island was no doubt installed to slow down traffic because people were speeding through the neighborhood. But that begs the question: why was the road designed to be so wide initially if it now needs to be narrowed? The answer is, that’s what the County road code required. One might wonder how all American road design came to be so similar and might suspect that there is some great guiding hand. Indeed there is: it’s the Geometric Design of Highways and Streets published by the American Association of State Highway and Traffic Officials, affectionately known as the “Green Book” from its hard cover days. This is the national road code—a law in a sense—the standard that virtually every jurisdiction and engineer must follow. As you might imagine, a code drafted by traffic engineers gives priority to creating a pleasant environment for cars but largely ignores the needs of humans. Another element of modern road design, is that streets and architecture are designed independently. In more traditional communities, the two are designed together. The buildings in traditional communities create an architectural façade that have a relationship to the street, with parallel parking and sidewalks creating pedestrian-friendly neighborhoods. The generally straight façades of the buildings help create a sense of place and structure and a pleasant and comfortable human scaled space. In our view, the roads in residential communities are often significantly over-designed. Not only does that make them financially and environmentally expensive, but because the design of roads is so integral to the way communities function, it tends to make them car dominated, pedestrian unfriendly and simply unpleasant places to live. Development regulations should give less emphasis to making new communities car friendly and more to making them livable. David S. Thaler, PE, LS, F., ASCE, F., NSPE is the President of D.S. Thaler & Associates, Inc., a civil and environmental engineering firm in Baltimore, Maryland, which has designed hundreds of communities. Repeatedly honored, he is a Fellow of both the American Society of Civil Engineers and the National Society of Professional Engineers, and is Guest Scholar at the University of Baltimore School of Law. He has published more than 200 articles and four books, and has won numerous life time achievement awards. He also holds both the highest professional engineering award in Maryland, which was named in his honor, and the Maryland Distinguished Service Cross, Maryland’s highest military honor. He can be reached at dsthaler@dsthaler.com. Victoria M. Ballestero, EIT is a civil and environmental engineer with D. S. Thaler and Assoc., Inc. She can be reached at vballestero@dsthaler.com.

With 40 years of residential, commercial, and institutional land development engineering experience, DST&A can ef�iciently and creatively help to transform raw land and redevelopment sites into thriving communities.

Land Planning

Civil Engineering

Environmental Engineering Surveying

Landscape Architecture

Feasibility Studies

Land Use Consulting

www.dsthaler.com 7115 Ambassador Road Baltimore, Maryland 21244 info@dsthaler.com

410.944.3647

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Casino Night Pays Off MBIA’s Remodeler’s Council hosted its first Casino Night on April 16 at Turf Valley Resort. Nearly 100 attendees were given $10,000, (in play money, of course), to risk on Black Jack, Roulette, Craps and Texas Hold’em. And since gambling makes you hungry, they also enjoyed an open bar and heavy d’oeuvres. The high rollers who risked (and lost) it all could ante up real cash for additional 10 grand if they wanted to break the bank. For the big winners of the evening there were prizes, including a TV, a golf package to Turf Valley and gift cards to Maryland Live Casino. Helping to make this event possible were our sponsors. Thanks to Saratoga Insurance, Chesapeake Employers Insurance, TW Perry and Dewberry.

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Home Builders Care’s Bull & Oyster Roast On May 13, the Maryland home building community joined together at the Home Builders Care’s 3rd annual Community Builders Bull & Oyster Roast. At the fundraising event, Bob Goodier, President of Goodier Builders, and a past president of the Home Builders Association of Maryland, was the guest of honor. The Bull & Oyster Roast took place at the Ruppert Companies’ beautiful LEED-certified headquarters in Laytonsville, and featured pit-meats, an oyster bar, live jazz, good cheer as well as the MBIA’s Professional Women in Building Council’s Career Clothing & Accessories Drive. A highlight of the evening was the presentation of the Robert L. Mitchell Founders Award for a lifetime of distinguished

community leadership to Mr. Goodier. Bestowing the honors was last year’s recipient, Roger Lebbin, President of MidAtlantic Builders, Inc., and the award’s namesake Bob Mitchell, a past-president of both the Maryland-National Capital Building Industry Association and the National Association of Home Builders as well as the founder of the Home Builders Care Foundation (HBCF) more than 30 years ago. A special Governor’s Citation commending Mr. Goodier was issued by Maryland Governor Larry Hogan for the occasion. More than 275 friends and 46 sponsors participated in the event, which raised close to $40,000 for HBCF’s charitable construction program. We thank you for your support and look forward to next year’s event!

Thank you to our 2015 Bull & Oyster Roast Sponsors PRIME Goodier Builders Linowes & Blocher Noel’s Fire Protection Creig Northrop Team Pettit Companies Ruppert Companies Shelter Systems Vintage Security

STOCK Amberlea Photography Ashton Environmental Bob Ward Companies Builders First Source Chesapeake Employers Insurance Gaylord Brooks Land Development Insurance Associates

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CHOICE Bryant Group Craftmark Group Dewberry Goodier Baker Pleasants Development Rodgers Consulting Inc. Shulman, Rogers, Gandel, Pordy & Ecker PA SunTrust Mortgage Wetlands Studies and Solutions, Inc.

Kettler Forlines Homes Laurence Cafritz Builders Liberty Home Builder Miller and Smith Homes National Housing Endowment Sight and Sound Systems Washington Gas

SELECT Efficient Home, LLC Heritage Land Development Hutchinson + Associates, LLC M & T Bank Macris, Hendricks & Glascock, PA Michael Harris Homes Mitchell & Best Home Builders Monument Construction, Inc. Newport Partners NVR Inc. Pulte PuroFirst of Washington DC Security Development Straughan Environmental, Inc. Winchester Homes

Thanks to attendees and sponsors, the Roast raised close to $40,000 for HBCF’s charitable construction programs.

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FINANCIAL REVIEW

THE BENEFITS OF A PORTFOLIO LENDER BY WILLIAM BENNER, SEVERN BANK

Today’s mortgage world is vastly different than anything we’ve ever experienced. It quite often seems that the “common sense” approach to lending has gone the way of the Bailey Brothers Building & Loan. The “Mr. Potters” of the banking world have succeeded in driving out the “George Baileys” so much so now that computers today render the majority of loan decisions. Loans are being denied for myriad reasons that quite often are baffling. Fortunately, there remain vestiges of those bygone “common sense” days in the very same institutions that Mr. Potter despised: local banks or thrifts. Generally one will need to search for such a place, but they are readily available and closing mortgages that many larger lenders no longer seek. Construction loans, Bridge loans, cross-collateralizations, hypothecations and the “it might not fit into others’ parameters, but it sure does make sense” loans. Those who work in such institutions typically are seasoned veterans of the mortgage industry. I’d be willing to wager that a good number were writing business before the Maryland Savings & Loan crisis! They’ve been there through the ups & downs, but somehow their expertise has been replaced by so many “new & improved” big bank mortgage companies that render decisions on local loans several states away relying on appraisers who find the address utilizing their GPS instead of knowing the neighborhood. It’s funny that so many Realtors and builders are flabbergasted to find out that Bridge loans are still available and done for reasons such as wanting to improve a new or existing home before

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moving/selling, to avoid contingencies or to avoid liquidation of stocks at an inopportune time. Many of these loans are not just “bridge” loans, but are tied into a construction product. Most buyers do not want to sell their existing home before the new home is completed. Unfortunately, many lenders qualifying criteria demand that such must be done to comply with their qualifying ratios. The Portfolio Lender has the ability and expertise to take a different approach to such transactions thereby allowing the construction of a customer’s new home to begin without the sale of their current one. There are other scenarios that may be addressed just as easily, but that’s for another article. Another area seeing an increase in opportunity is in combining a construction loan with VA financing. Perhaps the biggest attraction to VA financing is the low-to-no down payment requirement. This is a huge hurdle for those veterans who wish to build their own custom home as VA does not offer (perhaps better said: “guarantee”) construction financing. There are several ways to provide interim construction financing that may be refinanced into a VA guaranteed mortgage. One of the most frequently used methods is via the hypothecation (pledging) of funds that may be placed by another (friend, family, employer, etc.) in lieu of the typical cash contribution required to secure a construction loan. Typically this amount is equal to 10% of the project’s total cost. These funds are returned to their owner upon the refinance of the construction loan into the VA mortgage. With the higher VA loan limits

and the relatively low down-payment requirements when one exceeds those limits, there are many veterans who can now have their dream home built with far less, or even no, cash investment. Portfolio lenders will typically offer mortgages with qualifying parameters that are more flexible than conventional or jumbo products that are offered today. That’s not to say that we’re venturing back to the ‘if you’ve got a pulse, you’ve got a loan” days, but we’re not so encumbered with having to ensure that the minutiae are properly aligned to meet “requirements.” The ability to be fluid and nimble in the loan decision process affords lenders the opportunity to address weakness with compensating factors. There are still lenders out there who know good loans, want good loans and close good loans; even if another lender’s computer has no appetite for them. In closing, this market has not yet turned into one where we have an over-abundance of opportunity. As such, we must take full advantage of every one that comes our way. It never hurts to get a second -opinion; in fact, it’s almost always recommended! Next time something comes your way that you just know is a “good loan” despite what you were told by another lender, take a trip back in time and call your local portfolio lender. They’re closer than you think and looking for reasons to make loans: especially those in our own back yard! William (Bill) Benner is a Community Loan Officer specializing in Residential Portfolio Lending with Severn Savings Bank FSB in Annapolis. He can be reached at 410-9919200 or at wbenner@severnbank.com.

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STATS & FACTS

STATS &

FACTS HOMEOWNERSHIP STILL CORRECTING BY BEN SAGE, DIRECTOR, METROSTUDY’S MID-ATLANTIC REGION

ave you ever taken your temperature and been relieved to find out you had a fever? You say to yourself, “No wonder I feel so bad.” I had a similar moment while researching national homeownership trends, which dropped to a 25-year low of 63.7 percent in 1Q15. What is less often reported is that the number of households has grown steadily during this time from just under 93 million in 1989 to over 123 million in 2014. Furthermore, even though the percentage of homeowners is unchanged compared to 25 years ago, because of overall household growth there are now nearly 20 million more home-owning households in the U.S. compared to 1989. The problem has to do with trends in the last nine years. During this time the number of households grew by nearly 10 million (plus nine percent), yet the number of home-owning households grew by only 660,000, which is less than 1 percent growth. Conversely, the number of rental households grew by 9.2 million or plus 26 percent. This certainly explains why the apartment market has been so robust. Currently, multifamily permits (mostly apartments) account for 36 percent of all permits, compared to an average of 19 percent from 2000 to 2006. This is the strongest period of renter growth going back to the 1960s, when the Census began tracking rent vs. own.

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That is one step to understanding the lack of strength in homebuilding, but it doesn’t totally explain the problem. Therefore I analyzed homeownership by age group, particularly over the last 10 years. First of all, in households where the head of household is below 35 years of age, overall household growth has been very flat. This is expected to change as echo boomers (children of baby boomers) age into this category, but for now the household count is very steady. Unfortunately, the number of home-owning households is shrinking, a decline of 1.85 million compared to 2004. This demographic is saddled with student loans, and they appear to value the benefits of renting … for now. The 35 to 44 age range was easily the most devastated by the Great Recession. Not only is this a shrinking demographic (baby busters), but homeownership has shrunk from 70 percent to 59 percent in the last 10 years. The combination of these two forces resulted in a decline of 3.8 million home-owning households in the last 10 years. Many of these households may be inclined to own, but they need to repair their credit and get on firmer financial footing. This is also true to some extent of the next older category, 45 to 54, where the number of home-owning households has declined by 1.2 million since 2004. That means each of the three younger age segments has experienced

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U.S. RENTER HOUSEHOLDS

90,000

50,000

80,000

45,000

70,000

40,000

HH THOUSANDS

U.S. HOMEOWNING HOUSEHOLDS

60,000 50,000 40,000 30,000

35,000 30,000 25,000 20,000 15,000

20,000

10,000

5,000 0

0 1978

1982

1986

1990

1994

1998

2002

2006

2010

1978

2014

1982

1986

1990

1994

HOMEOWNER VS. RENTER HOUSEHOLDS UNDER AGE 55

2002

2006

2010

2014

HOMEOWNER VS. RENTER HOUSEHOLDS AGE 55+

90,000

Renters

1998

Source: U.S. Census Bureau

60,000

Homeowners

Renters

Homeowners

80,000 50,000

HH THOUSANDS

70,000 60,000 50,000 40,000 30,000

40,000

30,000

20,000

20,000 10,000 10,000 0

0 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source: U.S. Census Bureau

a shrinking number of home-owning households, totaling a decline of 6.85 million over the last 10 years. The 55 to 64 group is unique in that the homeownership rate has shrunk (82 percent to 76 percent), yet the strong growth in the number of households allowed the number of homeowners to grow by 3.9 million. These are the baby boomers, and they have driven the move-up market and kept the homebuilding industry off the mat. The oldest demographic at age 65+ is the largest group, nearly 29 million strong over the past 10 years, the homeownership rate is flat at 80 percent, and the number of home-owning households has grown the most – plus 4.3 million. This group will continue to grow as Americans live longer and as baby-boomers age into this segment. Combined, the two older household segments have contributed 8.2 million new homeowners in the last 10 years. Even though homeownership has continued to decline well after the end of the Great Recession, forces should

begin to push the homeownership rate modestly higher in the coming years. When this happens, it will signify an important shift for our industry, both nationally and in Maryland. This shift combined with a growing economy (hopefully), will fuel a stronger homebuilding market and begin to take away some of the energy that has been dedicated to apartments. This will be the aspirin we need to shed the low-grade temperature we’ve been running as an industry over the last few years. Ben Sage, Director of Metrostudy’s Mid-Atlantic Region, has been researching and analyzing housing markets since 1994. He regularly meets and consults with many of the top homebuilders in the country as well as with lenders, developers, investors, and utilities concerning trends in the local economy and their effect on the real estate market. Ben can be reached at bsage@metrostudy.com. For more information, visit www.metrostudy.com.

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PRODUCT SPOTLIGHT

2014 HBAM LEADERSHIP EXECUTIVE COMMITTEE Russell Dickens President

Tom Baum

SILESTONE: AN INVESTMENT FOR THE FUTURE

President Elect

Steve Breeden First Vice President

Lisa Junker Associate Vice President

Steve Smith Secretary

Kimberly Palmisano Treasurer

Scott Armiger Immediate Past President

CHAPTER PRESIDENTS

Jim Krapf Anne Arundel County James Mathias Carroll County David Murphy Baltimore County Russ Robertson Baltimore City James Fraser Howard County Dan Whitehurst Upper Chesapeake

COUNCIL PRESIDENTS Sandy Marenberg

Land Development Council

Bruce Rosenblatt Sales and Marketing Council

Tim Ellis HBAM Remodelers

Thom Marston Maryland Residential Green Building Council

WHAT IS SILESTONE? Silestone is a compound made up of 94% natural quartz making it exceptionally hard and resilient. It is the first and only quartz worktop with anti-bacterial protection, giving it hygienic properties that are unique on the market. It is the perfect material for applications in kitchens and bathrooms, as well as for laboratories, hospitals, hotels, restaurants and other professional uses where minimal joins are required. In addition, it comes in a variety of different shades of quartz color, offering a number of decorative possibilities from a mere kitchen top to a project for a complete set of furniture. Silestone is an investment for the future. Silestone is forever.

ity kitchens and bathrooms, including countertops and sinks with advanced bacteriostatic technology. It is the only brand that offers a certified, genuine 25-year transferable warranty, in writing. STAIN RESISTANT Silestone is a non-porous surface and highly resistant to stains from coffee, wine, lemon juice, olive oil, vinegar, makeup and many other everyday products ACID & SCRATCH RESISTANT Quartz is one of the hardest minerals in the world. This makes it very durable, with a high level of resistance to external aggressions.

HIGHEST QUALITY GUARANTEED

IMPACT RESISTANT

Silestone is the world’s leading producer of quartz surfaces designed for high-qual-

Silestone’s high impact resistance exceeds other similar products such as

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granite and solid surfaces. This feature Tim Nichols guarantees safety in your kitchen when Builder Mart Chair handling hard objects like pots, pans, etc. This resistance is achieved thanks to the quartz hardness, its polyester resin elasticity and its vibrocompression system used during its production. BACTERIOSTATIC PROTECTION – BASED ON SILVER IONS Silestone contains a unique bacteriostatic formula developed by Cosentino that is based on the use of the latest generation silver ions to preven t the propagation of bacteria. With this formula, Silestone surfaces for kitchen and bathroom offer a protection added value.

For additional information, visit www.silestoneusa.com

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

See security and peace of mind in a new light.

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.

www.homebuilders.org

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NEW MEMBERS & REINSTATEMENTS

APRIL/MAY 2015 BUILDERS

ASSOCIATES

Again New Remodeling Lou Greenfeld 6230 Woodcrest Baltimore, MD 21209 443-850-8597 lougreenfeld@gmail.com

Cosentino North America Larry Mazzola 22725 Dulles Summit Ct., Ste. 180 Sterling, VA 20166 202-577-4527 larrym@cosentino.com

Cairn Custom Homes Steve Appler 10548 Gorman Rd. Laurel, MD 20723 410-818-7382 steve@cairncustomhomes.com

Daltile Molly Severin 11850 Livingston Rd., Ste 113 Manassas, VA 20759 704-965-1225 molly.severin@daltile.com

Clark Builders Group Bryan Drewen 12200 Tech Rd., Ste. 300 Silver Spring, MD 20904 bryan.drewen@clarkbuildersgroup.com

Goodman Distribution Ryan Spadaro 9103 Yellow Brick Rd. Ste A Rosedale, MD 21237 410-458-9226 Ryan.Spadaro@GoodmanMFG.com

Dirks Design Build Stephen Dirks 13216 Executive Park Terr. Gemantown, MD 20875 301-916-6149 esnowden@dirksdesignbuild.com Westbrook Properties Mark MacFarland 10740 Parkridge Boulevard, Ste. 110 Reston, VA 20191 703-391-1102 MMacFarland@WbProperties.com

Movement Mortgage John Miller 2400 Research Blvd., Ste. 115 Rockville, MD 20850 301-775-0855 John.miller@movement.com

REMODELERS

MS International Alphonso Bradley 7595-Montevideo Rd. Jessup, MD 20794 443-742-0329 alphonso.b@msistone.com

Schmidt Contracting Services Ryan Schmidt 1174 Bayview Vista Annopolis, MD 21409 443-235-0546 ryan5@comcast.net

J.F. Snyder Dan Snyder 17720 Country Hills Rd. Ashton, MD 20861 dsnyder@jfsnydercompany.com

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Perry, White, Ross and Jacobson Jonas Jacobson 125 Cathedral St. Annapolis, MD 21401 410-977-3419 jonas@pwrjmaryland.com ProActive Medical Consultants Jen Nussbaum 8759 Stonehouse Dr. Ellicott City, MD 21043 410-465-7548 jennussbaum@proactivemedicalconsultants. com Shipshape I.T. Berverly Smith 4962 Fairmont Ave. Bethesda, MD 20814 301-941-1444 bsmith@shipshapeit.com The Tech Group Kim Morgan 201 Defense Hwy., Ste. 200 Annapolis, MD 21401 443-274-3232 kmorgan@techgroupinc.net

Multi-Housing Depot by ARI George Cowden 511 Elbow Lane Burlington, NY 08016 800-253-3855 gcowden@multihousingdepot.com

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STARS CLUB

DGG-MC, Inc. Residential Title & Escrow Solar City Wells Fargo

Chesapeake Employers Insurance Group Dewberry K Hovnanian Homes Lakeside Title Morris & Ritchie Associates, Inc. Pleasants Development Pulte Homes Saratoga Insurance Shelter Systems TW Perry Versatex Trimboards

Elm Street Development Lerch Early & Brewer Linowes & Blocher McMillan Metro Miles & Stockbridge Robert A. Tull Plumbing Rodgers Consulting Rutter Project Management Soltesz SunTrust Washington Gas

Associated Insurance Management Baker Tilly Ballard Spahr, LLP Bonded Builders Bozzuto Homes DICO EYA Insurance Associates Macris Hendricks & Glascock Michael Harris Development Miller & Smith Homes Mitchell & Best Homes Oâ&#x20AC;&#x2122;Malley, Miles Nylen & Gilmore Ward & Klein Chtd. Wetland Studies and Solutions

Axiom Engineering Design, LLC Builders Mutual Insurance Charles P. Johnson & Associates Cohn Reznick Craftmark/Craftstar Homes Geo-Technology Associates, Inc. Gutschick, Little & Weber John H. Myers Sandy Spring Bank Shulman Rogers Stantec Sterling Mirror & Glass Winchester Homes

AD INDEX

AD INDEX Appliance Distributers Unlimited.................................................................................................................................................................. 7 BGE Outdoor Lighting................................................................................................................................................................................. 41 Builders Mutual Insurance......................................................................................................................................................................... 27 California Closets....................................................................................................................................................................................... 19 D.S. Thaler & Associates............................................................................................................................................................................ 31 Devere Insulation......................................................................................................................................................................................... 9 Dewberry................................................................................................................................................................................................... 25 GE Contract Sales......................................................................................................................................................................... Back Cover KLNB......................................................................................................................................................................................................... 21 Linowes & Blocher..................................................................................................................................................................................... 24 MAPGA...................................................................................................................................................................................................... 37 Norman D. Rivera....................................................................................................................................................................................... 43 Pepco Holdings............................................................................................................................................................................................ 5 Residential Warranty.................................................................................................................................................................................. 23 Shulman Rogers........................................................................................................................................................................................ 26 Solar City................................................................................................................................................................ 3 and Inside Back Cover Vintage Security..................................................................................................................................................................Inside Front Cover Wetland Studies......................................................................................................................................................................................... 13

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Crack the energy code and save money on build costs. Offering solar from SolarCity can help you meet the 2015 energy code, reduce build costs and lower your HERS scores—all without spending a dime. That’s because you can install SolarCity systems with no upfront money. In fact, we give you money to install systems. Best of all, we take care of every step of the process. So offering solar is simple. Join other area homebuilders and save with solar.

Contact Ben Millar at 888-767-4399 or email him at bmillar1@solarcity.com.

CT HIC 0632778/ELC 0125305, DE 2011120386/ T1-6032, DC 410514000080/ECC902585, MA HIC 168572/EL-1136MR, MD HIC 128948/11805, NC 30801-U, NH 0347C/12523M, NJ NJHIC#13VH06160600/34EI01732700, PA HICPA077343, RI AC004714/Reg 38313, VA ELE2705153278, VT EM-05829. Nassau H2409710000, Greene A-486, Suffolk 52057-H, Putnam PC6041, Rockland H-11864-40-00-00, Westchester WC-26088-H13, N.Y.C #2001384-DCA. SCENYC: N.Y.C. Licensed Electrician, #12610, #004485, 155 Water St, 6th Fl., Unit 10, Brooklyn, NY 11201, #2013966-DCA.

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ADVANCED

DEGREES

From the leader in appliance innovation comes the industryâ&#x20AC;&#x2122;s first refrigerator with an integrated hot water dispenser. Thanks to GE, preparing hot food and drinks is easier than ever. Now thatâ&#x20AC;&#x2122;s just smart. geappliances.com

additional Appliances FFor or addi dditi tionall iinformation nformati f tion on GE A ppliliances callll GE Area Sales Manager Lora Williams at 410.679.0486 4

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