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March/April 2016 The exclusive magazine of MBIA

Mart Madness Tips Off

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MECHANICAL PARKING SPACE SAVING SOLUTION

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HBCF COMMUNITY SERVICE WINNERS

HONORING THOSE WHO DO MORE

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MYSTERY OF SURVEYING PART 1

CROSSING BOUNDARIES


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MID-ATLANTIC BUILDER SEPTEMBER/OCTOBER 2014

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IN THIS ISSUE

20

FEATURES COVER FEATURE

20

BUILDER MART 2016 SNEAK PEEK It’s Time for Mart Madness

10

MECHANICAL PARKING Making the Most of Limited Space

12

LEADERSHIP INSTALLATION

IN EVERY ISSUE

MBIA’s 2016 Team Takes Office

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EVENTS CALENDAR

34 NEW PRODUCT SPOTLIGHT

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PRESIDENT’S MESSAGE

36 NEW MEMBERS SHOWCASE

6

CEO’S MESSAGE

38 NEW MEMBERS / DID YOU KNOW

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LEGAL BRIEF

30 ENGINEER’S TOOLBOX 32 STATS & FACTS

38 ADVERTISER INDEX 40 STARS CLUB / THE BUILDERS’S BOOKSHELF

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HBCF COMMUNITY SERVICE WINNERS Inspiring Us to Do More

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MYSTERY OF SURVEYING PART I Ten Chains and a Yoke of Oxen

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EVENTS CALENDAR

MARCH Certified Aging in Place Seminar (CAPS) AARP Washington, DC March 8,9 & 10

Ballard Spahr Baltimore, MD Builder’s MarchStory 10

Building relationships that last a lifetime.

Makeover 34 Extreme Builder Mart

A look at HBAM members featured on the hit television show.

2016

Maryland State Fairgrounds AlsoTimonium, MD March 23

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President’s Message

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Ad List

Prince George’s County Legislative Breakfast

Martins Crosswinds Greenbelt,Merger MD Foundations 28 to make a positive MBIA willMarch continue impact in our communities through charitable foundation. BUILD MARYLAND

EDITOR

Kristin Josephson Hogle, Communications Director communications@homebuilders.org

Advanced ADVERTISING Principles Chris Baughan, Advertising Sales Manager of Land 410-265-7400, ext. 121 chris@homebuilders.org Development

Maryland Center for Housing DESIGN Heather Winkel, Art Director (MBIA) Corinne Thompson, Graphic Designer Fulton, MDGroup Network Design ndg@networkmediapartners.com April 5, 12, 19, 26 & May 3

A Mayoral Candidates Forum 30

APRIL

March/April 16

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.

2nd Annual Casino Night

Turf Valley Resort Postmaster: EllicottSend City,address MD changes to Home Builders Association of Maryland, April 14 Inc., 6030 Daybreak Circle #A150 PMB 362 Clarksville, MD 21029

Helps You Reach 2012 IECC Energy Requirements At TheConstruction MAX Cost Awards Turf Valley Resort Ellicott City, MD April 28

The Enviro-Dri Weather per hour (ACH), giving y energy code targets, at Montgomery current costs. County ®

Legislative Breakfast The Radisson Rockville, MD April 29

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

• The Sustainable Forestry Initiative® program promotes BUILD Maryland text and cover pages are printed on SFI certified Anthem Plus Gloss using soy ink. sustainable forest management.

Contact Eddy Esplund, T “Energy Trade-Off BUILD Maryland is published bimonthly by MBIA—the Maryland Building Industry Association, Enviro-Dri WRB can red 11825 West Market Place, Fulton, MD 20759. The statements and opinions expressed herein are those youThemeet 2012 IECC of the individual authors and do not necessarily represent the views of MBIA. publisherthe reserves The Sustainable Forestry Initiative® program promotes sustainable forest management.

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. © 2016 MBIA. All rights reserved.

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

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PRESIDENT’S MESSAGE

The exclusive magazine of MBIA

THE HOME TEAM

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n order to accomplish any goal, you need to put together a great team. You also need to develop a great game plan. We are so very blessed to have both in place here at the Maryland Building Industry Association. The Home Team is focused and ready for the year ahead. Our CEO, Lori Graf, and our talented Team of professionals have been working very hard moving the ball forward to help our industry. Our advocacy efforts continue and now that the legislature is back in session, they have turned up the heat. A record number of bills were pre-filed this year and our Team is busy representing our interests. The dedicated members of the State Legislative Committee are tirelessly reading and rating bills. They are appearing at hearings and meeting with our representatives in Annapolis to let them know our positions. If called on, please provide them any assistance you can. Help support the Team. They can’t do it alone. As we work our way through the winter months, our attention turns to preparations for the spring. The leaders of your association have been doing just that, busy laying the ground work for the coming year. In the first week of January, the entire Board of Directors and the Executive Committee held a two day retreat to develop a long range strategic plan and to set goals for the coming year. The commitment and dedication of this group is incredible, taking two days out of their busy schedules to lay out a long term plan. The conversations at the meetings were lively and productive. The plan will be a blueprint for the next three years. Speaking of a strong team, we are in the throes of final preparations for Builder Mart. This year’s theme is Mart Madness and promises to be one of our best yet. It is so important for all of us to take the time to promote and attend Builder Mart. As most of you know, it is our premiere event where we can all go to learn, network, and support our exhibitors. In addition, the Sales and Marketing Council has arranged for Gary Williams as the featured speaker. I can think of no more appropriate speaker than our Maryland Terps’ former coach. As we follow our teams through March Madness, don’t forget to support your MBIA Team in Mart Madness. As we are still in the winter season, let’s not forgot our homeless and at risk brothers and sisters. Home Builders Care, our charitable foundation, has been serving this important segment of society for over 30 years. Through the dedication of teams of many of our members, we have been able to provide shelter and homes for hundreds of this underserved population. Donating your time, talent or treasure will help make a real difference for many. We are home builders. Collectively, our Team has never been stronger. It’s good to be on the Home Team. It all begins at home.

DAVID LUNDEN President, MBIA

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2016 MBIA LEADERSHIP EXECUTIVE COMMITTEE President, David Lunden 1st Vice President, Steve Breeden Vice President Advocacy/ State, Mike McCann Vice President Advocacy/ Washington Market, Hillary Colt Vice President Advocacy/ Baltimore Market, Steve Smith Vice President Advocacy/ Eastern Shore, Jeff Caruso Vice President, Associates, Peggy White Treasurer, Kimberley Palmisano Secretary, Mike Schueler Life Director, Mark Bennett Immediate Past President, Tom Baum Legal Counsel, Jack Orrick

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, Joe Fleury 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, Maggie Witherup Remodelers Council, Joe Smith Sales & Marketing Council, Yvonne Deardorff

MEMBERS AT LARGE Brian Afnan Tim Ellis Miti Figueredo Howard Katz Mark MacFarland

Timothy Morris Cindy Plackmeyer Dusty Rood Robert Spalding Alex Villegas

SUBSIDIARIES Builders Development Guaranty Group/President, Scott Nicholson Home Builders Care Foundation/President, Chris Rachuba 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 Creative Director, Serena L. Spiezio 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



CEO MESSAGE

WHAT’S IN IT FOR YOU?

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s we settle into 2016, a consistent theme is running through our heads here at MBIA, “What’s in it for you?” We are working hard this year to make sure every decision we make, event we host and service we provide answers the question, “What’s in it for you?” - our member. We held a leadership breakfast back in December to pick the brains of our former past presidents, executive committee members and life directors. As Jack Welch, former GE chairman and CEO said, “Before you are a leader, success is all about growing yourself. When you become a leader, success is all about growing others.” We looked to our successful leaders and are thankful they were willing to share their insights and discuss their thoughts for MBIA’s success. We listened closely to their ideas and we have been spending a lot of time sharpening our focus in particular areas of our association based on their suggestions. Then, in January of this year, we held a two-day strategic planning session with our Board of Directors. We discussed all of the facets of MBIA and we took some extra time to hone in on specific segments. First, we took a hard look at our councils, chapters and committees. These are so important because they are where our members are most involved on a day-to-day basis. Therefore, we want to make sure each one has a meaningful mission with focused leadership and appropriate staff support. Another area we discussed thoroughly was our state legislative and regulatory strategy. Although we have a good relationship with the administration, we are always diligent to keep an eye on anything coming down the pike that affects our members’ business both on the state and local level. We are also paying close attention to the attendance at all of our events and programs in order to make sure the location, venue, marketing and topic are on point. In addition, throughout this year we will be evaluating our awards programs to make sure that each market segment and individual member gets the opportunity to gain recognition for his or her achievements. Of course, we talked about budgets, membership goals and the overall future of MBIA. We came out with very concrete ideas and plans. Then, the MBIA staff held its own strategic planning session to organize and implement the ideas. I am confident you are going to see an ever evolving, improving and growing MBIA throughout 2016. Now, I’m going to throw a question back at you. What does your MBIA membership mean to you? Did you join for the networking, education, legislative advocacy, credibility, visibility, membership discounts or something else? Let me know. I’d love to hear from you on how you think we’re doing. You can email me anytime at lgraf@marylandbuilders.org with your comments. I want you to be confident that we are always working for you and we are going to keep asking the question, “What’s in it for you?”

LORI GRAF

CEO, MBIA

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LEGAL BRIEF

A SNAPSHOT OF LAND USE ACTIVITIES IN MONTGOMERY COUNTY BY STEVEN A. ROBINS, LERCH, EARLY & BREWER

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URPLE LINE GETS THE GREEN LIGHT! On June 25, 2015, after months of speculation, Governor Larry Hogan announced the long awaited fate of the Purple Line rail connection between Bethesda in Montgomery County and New Carrollton in Prince George’s County. Maryland is moving forward with the 16-mile light rail project! Governor Hogan confirmed what many of us had been articulating for some time - that the Purple Line would be a long term investment that would be an important economic driver for Maryland. The decision is great news for Maryland. Construction alone is anticipated to generate 23,000 new jobs for Marylanders over six years. Long term, the Purple Line will connect Montgomery and Prince George’s Counties, attracting businesses and making Maryland a more competitive state to attract those wanting to work, live and retire in Maryland. Now that Governor Hogan has given the project the green light, MDOT/MTA is focused on evaluating concessionaire proposals and ultimately beginning construction in late 2016. DOWNTOWN BETHESDA SECTOR PLAN UNDERWAY The Bethesda Downtown Sector Plan is in full swing. The new plan builds on Bethesda’s successes as the economic engine in Montgomery County. The Staff Draft Sector Plan recommended increasing density in the downtown planning area by approximately 20 percent with greater increases around activity centers and gathering places. The Montgomery County Planning Board conducted its public hearings

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“Construction [of the Purple Line] alone is antic­ipated to generate 23,000 new jobs for Marylanders over six years. ” in late June 2015 and already has completed six work sessions to review the Plan. The various work sessions addressed district-by-district the proposed zoning strategy for Downtown Bethesda as it relates to building density and height increases, and considered transportation infrastructure and school capacity. There are several additional work sessions planned through March. The Planning Board’s final recommendations will be incorporated into the draft of the Sector Plan and will be forwarded to the County Executive and ultimately, the County Council, for its final approval. Final Council action is likely to occur sometime in late 2016, early 2017. ROCK SPRING AND WHITE FLINT 2 SECTOR PLANS The Rock Spring area of North Bethesda presently is part of the 1992 North Bethesda/Garrett Park Master Plan. This area includes the headquarters for Marriott International and Lockheed Martin, is home to numerous office buildings, and is planned to accommodate the already approved 54-acre Rock Spring Centre mixed-use development. The county kicked-off this Sector Plan review in early September 2015. This Sector Plan will focus on the challenges of repositioning a suburban style office park with predominantly auto-oriented uses and high vacancy rates into a mixeduse, more transit-oriented live/work/play community. Centrally located between

I-270, I-495 and the Grosvenor and White Flint Metrorail Stations, Rock Spring presents a unique opportunity for the county, the property owners and the surrounding community. The Planning Board expects to hold a public hearing in the fall of 2016 with Council review sometime in mid-2017. The White Flint 2 area covers approximately 290 acres of property located on either side of Rockville Pike. The area includes office buildings along Executive Boulevard, the Montrose Crossing Shopping Center, light industrial and commercial properties along Parklawn Drive, Randolph Hills Shopping Center, and other industrial uses along Parklawn Drive. The White Flint 2 Plan will build on the White Flint Sector Plan approved by the County Council in 2010. The Planning Board is expected to review this plan in the spring of 2016 with Council review thereafter. ROUND 2: REWRITE OF THE SUBDIVISION REGULATIONS AND THE COUNTY’S SUBDIVISION STAGING POLICY Now that the Planning Board and County Council have completed their work on the newly enacted Zoning Ordinance, the fun could not end! The Planning Board has embarked on an effort to rewrite the Subdivision Regulations, the document that governs the subdivision process in Montgomery County. The Subdivision Regulations, when completed, will closely follow the principles


enumerated in the updated Zoning Ordinance, providing for greater flexibility and consistency in the development review process. The draft Regulations have been forwarded to the Council for its review and approval. The Subdivision Staging Policy (SSP) (formerly known as the Annual Growth Policy) is adopted every four years by the Count Council. This important planning document includes criteria and guidance for the administration of the County’s Adequate Public Facilities Ordinance (APFO). The APFO coordinates the timing of development with the provision of public facilities – notably roads, transit and schools. The Council has provided the Planning Board with direction for the 2016 SSP, including looking at various metrics and methodologies for testing for development approvals, particularly as it relates to provision of infrastructure. Work on the SSP will occur throughout 2016 with Council adoption by November 2016 as required by law. We will closely monitor this planning effort.

Steven Robins is a land use attorney at Lerch, Early & Brewer in Bethesda who represents developers and property owners in complex projects, primarily in Montgomery County. For more information on topics raised in this article or other land use, zoning and real estate matters, contact Steven at (301) 657-0747 or sarobins@lerchearly.com.

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MECHANICAL PARKING

YES, YOU REALLY CAN DOUBLE YOUR PARKING Renata Haberkam, The Traffic Group, Inc.

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hile fully automated parking is just now making its debut in places like Miami, New Jersey and New York, mechanical parking has been around for some time. The first generation of mechanical parking surfaced in cities like Chicago, Cincinnati, Los Angeles, and New York in the 1920s, believe it or not. One such system, The “Ferris Wheel,” now found all over Japan, was created by the Westinghouse Corporation in 1923 and subsequently built in 1932 on Chicago’s Monroe Street. The Nash Motor Company created the first glass enclosed version of this system for the Chicago Century of Progress Exhibition in 1933, and it was the precursor to a more recent version – the Smart Car Tower in Europe.

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The point of this mini history lesson is to show that mechanical and automated parking – having been around for the better part of a century and now used globally - is a proven method for making the most of limited space. As traffic engineers and transportation planners, we often work with architects and developers who are forced to sacrifice design and reduce revenue-generating space to accommodate required parking for all types of land uses. The amount of land and space it takes to park an automobile in a garage or parking lot is two to three times the amount of space that the employee uses within an office environment. That is an absurd – and costly - amount of land used just to store a vehicle! Parking is a necessity but is not the best use of land. Using significant amounts of land and space – at a premium particularly

in urban areas is an issue that needs to be addressed with real-world solutions. Why? According to the World Health Organization (WHO), urban population in 2014 accounted for 54% of the total global population, up from 34% in 1960. In the U.S., urban populations are at their highest levels in over 100 years and are areas where we are seeing the most growth. Today, individuals – from young professionals to empty nesters – are looking to reside in a City or urban center, with good reason. There is much to love about today’s urban areas. New, mixed-used developments now allow for luxury living with all the amenities one could want – and then some - all within close proximity to entertainment, restaurants, work and culture. With cities continuing to grow and land costs steadily climbing, parking as we know it must change. There is no


way around it. We need sustainability for our urban centers, and parking is an important part of it. With few exceptions, a mechanical parking system can be the solution to this challenge for both the public and private sector. MECHANICAL VERSUS AUTOMATED PARKING Just like its counterpart – fully automated parking – mechanical and semi-automated parking is designed to increase parking density and cut costs over traditional parking methods. The difference between the two? Design simplicity and functionality. For mechanical garages, a lack of complicated moving parts and less complicated algorithms than those necessary to operate a fully automated parking garage translates to a measurable costs savings and decades of trouble-free service. When one thinks of mechanical parking, images of “stackers” – two, three, four high come to mind. If you’ve been to New York, you have most likely seen them first hand. They’re in every nook and cranny. And, while those dependent access stackers are a type of mechanical parking and are a great solution for certain applications, there is another alternative that is quickly gaining popularity – the Lift & Slide or Puzzle Lift system; a mechanical (semi-automated), high-density, self-parking vehicle storage and retrieval system arranged on two or three levels (four levels can also be achieved with a pit). The upper and lower level parking spaces move vertically and the at-grade parking spaces move horizontally (left and right) to allow upper or lower level cars to come up or down to the at-grade level and be driven off the platform. The operation of a Lift & Slide/ Puzzle Lift system is via a push-button control unit and access swipe card located on

or near the point of vehicle entry. Retrieval time averages less than 2.5 minutes. The system can be customized for indoor and outdoor applications, complete with external façade, garage doors and roof, per customer specifications. There are several advantages to this mechanical system. The most obvious being increased parking density. With a ceiling height of 11’ (16.1’ for larger vehicles) one can actually double parking. The systems are fully customizable and simple to operate. Utility costs to operate these systems are usually quite low due to the fact that each lift is typically run just a few minutes per day. Multiple units can be lined together for commercial applications and there are no horizontal limitations to this system. As little as four years ago, there were only a handful of manufacturers of these space saving systems, or at least so we thought. It was in its infancy in the United States then (as it relates to the Lift & Slide product here). Today, there are myriads of suppliers and types of systems that are larger and more extensive than we thought originally. Beyond the fact that automated and mechanical garages save space, which quickly adds up to significant savings, these parking solutions are also environmentally-friendly. Because cars are turned off as soon as they pull on to the platform - or no longer need to idle for periods of time – there are less emissions to pollute

the air. Toxic substances in the air actually drop: 68% for VOCs; 77% for carbon monoxide; and 83% for carbon dioxide. Automated and mechanical parking solutions also offer an increased level of safety for consumers. No need to walk around a dimly lit non-secure garage. Both scenarios with automated and mechanical parking allow a driver to drop off their car in an entry-cabin or platform and wait in a safe pick-up zone upon return. IN CONCLUSION Developers and building owners of large urban centers in the United States are beginning to understand there is a costfriendly alternative to the standard concrete parking garage. With the potential to double the number of parking spaces in the same area, save money, keep patrons safer, and help the environment at the same time, these parking solutions are worth a closer look. Renata Haberkam is the Director of Business Development at The Traffic Group, Inc., one of the nation’s leading traffic engineering and transportation planning firms headquartered in Baltimore For more information please visit www.trafficgroup.com, follow them @TheTrafficGrp, or contact the author at rhaberkam@trafficgroup.com.

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LEADERSHIP INSTALLATION

2016 LEADERSHIP TEAM TAKES OFFICE Dave Lunden, President of Timberlake Design Build was installed as MBIA’s 2016 President on January 11 at The Hotel in Hanover, MD. Anne Arundel County Executive, Steven R. Schuh conducted the installation. Dave’s goals as he heads into 2016 include, raising MBIA’s visibility in the state house, at the county level, and in the community, reinforcing the idea that it is members of our industry that create the communities and homes in which families live and grow and seeking ways of engaging all of our members in the Association’s many councils, chapters and committees. Commenting on his new role, Dave said, “I am very honored and excited to have been selected to lead the Maryland Building Industry Association. It is my privilege to lead the voice of the industry in the state of Maryland, representing more than 1,000 firms with over 100,000 employees. What is most satisfying is what we collectively do on a daily basis. We create neighborhoods and homes. It all begins at home.” His Leadership team includes: EXECUTIVE COMMITTEE David Lunden, Timberlake Design Build, President Steve Breeden, Security Development Group, 1st Vice President Mike McCann, Baker Development, Vice President Advocacy/ State Hillary Colt, Konterra, Vice President Advocacy/ Washington Market Steve Smith, Gaylord Brooks Realty Co., Vice President Advocacy/ Baltimore Market Jeff Caruso, Caruso Homes, Vice President Advocacy/ Eastern Shore Peggy White, D.S. Thaler & Associates, Inc. Vice President, Associates Kimberley Palmisano, Kimberley F. Palmisano, CPA, P.A.,Treasurer Mike Schueler, Winchester Homes, Inc., Secretary Mark Bennett, Greenebaum Enterprises, Life Director Tom Baum, Bozzuto Homes, Immediate Past President Jack Orrick, Linowes & Blocher, LLP, Legal Counsel

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BOARD OF DIRECTORS Jim Krapf, Elm Street Development, Advocacy/Anne Arundel County Brooke Kaine, Kaine Investments, Advocacy/Baltimore City David Murphy, Elm Street Development, Advocacy/Baltimore County Jim Mathias, Development Design Consultants, Advocacy/Carroll County Doug Meeker, Elm Street Development, Advocacy/Charles County Bob Purcell, Beachwood Inc., Advocacy/Eastern Shore Jamie Fraser, IsLAND Companies, LLC Advocacy/Howard County Raquel Montenegro, Ballard Spahr, LLP, Advocacy/Montgomery County Ken Dunn, Soltesz, Advocacy/Prince George’s County Tom Thomas, D.R. Horton, Inc., Advocacy/Southern Maryland Michael Charlton, Elm Street Development, Advocacy/Upper Chesapeake Stephen Alfandre, Urban Alfandre, Advocacy/Washington DC Scott Nicholson, Monument Bank, President, Builders Development Guaranty Group

Chris Rachuba, The Rachuba Group, President, Home Builders Care Foundation Joe Fleury, BB&T, Builder Mart, Chair Larry Cafritz, Laurence Cafritz Builders, Custom Builders Council Chair Karen Benner, EYA, LLC, Green Building Council Chair Sandy Marenberg, Marenberg Enterprises, Land Development Council Chair Tom Marshall, Elm Street Development, Mixed Use/Multifamily Housing Council Chair Maggie Witherup, Gordon Feinblatt, LLC, Professional Women in Building Council Chair Joe Smith, Owings Brothers Contracting, Remodelers Council Chair Yvonne Deardorff, Lakeside Title Company, Sales & Marketing Council Chair Brian Afnan, NVR, At-Large Director Tim Ellis, T.W. Ellis, LLC, At-Large Director Miti Figueredo, Chevy Chase Land Co., At-Large Director Howard Katz, Michael Harris Homes, At-Large Director Mark MacFarland, Westbrook Properties, At-Large Director Timothy Morris, Williamsburg Homes, At-Large Director Cindy Plackmeyer, Wormald Homes, At-Large Director Dusty Rood, Rodgers Consulting, Inc., At-Large Director Robert Spalding, Miller & Smith Homes, At-Large Director Alex Villegas, Rodgers Consulting, Inc., At-Large Director


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Community Service Awards

Inspiring Us to Do More 14

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n order to fulfill our mission, the Home Builders Care Foundation, the 501 (c) (3) official charity of the Maryland Building Industry Association depends on dedicated builders, suppliers, contractors, professionals and volunteers from MBIA - willing to donate expertise, lend a hand, and inspire us to do more. Each year, as a way to gratefully acknowledge our supporters, Home Builders Care recognizes select individuals and organizations for their significant contributions in support of our efforts to help the poor and disadvantaged in our communities. On January 11, at MBIA’s membership dinner, two Community Service Awards were presented. The first award was the Community Builder Award, given in recognition of a builder member who helps raise awareness of the industry’s spirit of giving. Prince George’s County Councilman Todd M. Turner did the honors. This year’s winner served as our Builder Captain on a renovation project for Alpha House, a four-bedroom single family home owned by the St. Matthews’s Housing Corporation in Bowie, MD. St. Matthew’s Housing was established in 1990 under the sponsorship of St. Matthew’s United Methodist Church and is supported by community organizations in the area. At Alpha House, St. Matthews operates a transitional housing program for families, many who are in need of support after a crisis has left them homeless. Program participants are selected in consultation with local shelters and agencies. For each participating family, individual action plans are developed, depending on their needs, capabilities and aspirations. The goal of each plan is to help the participant achieve economic independence and return to stability. Progress is monitored through regular counseling and the average stay at Alpha House is 18-24 months. Literally hundreds of family members have received supported housing and assistance while in residence at Alpha House throughout the past 25 years.

L to R: Patti Kane, HBCF Director, Marcus Jackson , MBIA Vice President of Government Affairs, Todd M. Turner, Prince George’s County District 4 Councilman, Gary Allen, Executive Director, St. Matthew’s Housing Corporation, Jeff Caruso, Caruso Homes and Chris Rachuba, The Rachuba Group & President, Home Builder’s Care Foundation.

The Community Builder Award Winner, Caruso Homes, was recognized for its leadership and expertise on this project. From the moment the company first learned about it, the Caruso team, with Dan Roys, their Director of Construction serving as project manager, was nothing but helpful and responsive in working with St. Matthews and Home Builders Care. HBCF is especially thankful for their technical assistance in helping fine tune and prioritize the scope of work, which started as a lengthy wish list of to-do items on the 53 year old building. With years of wear, the building needed numerous repairs and replacements in order for St. Matthews to effectively and economically continue to operate the program. Needless to say, maintaining properties that serve as homes for families in crisis can be challenging and costly. Originally constructed in 1963, Alpha House still has many of its original elements, including a very old and inefficient oil-fired boiler. But instead of simply replacing it, a new twozone electric heat pump system was recommended after Dan Roys examined the property and then heard how sometimes more than one family can be housed at a time. Additionally,

“From the moment the company first learned about it, the Caruso team was nothing but helpful and responsive...” marylandbuilders.org

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L to R: Marilyn Kresky-Wolff, Executive Director, Open Arms Housing, Chris Rachuba, The Rachuba Group & President, Home Builder’s Care Foundation, Jeff Schwartz and Eric Dubois, Ashton Manor Environmental and Patti Kane, HBCF Director.

after an energy audit noted that the home’s monthly winter electric bill was around $400 in the winter - on top of $300 per month in heating oil costs - it was also recommended that windows be replaced and R-30 insulation blown-in. Other items included a new front sidewalk and flooring replaced throughout the entire home. The total project value was $30,000, of which 90% was covered by Home Builders Care and Caruso Homes. With St. Matthews’s limited budget, with most funds directed to program services, the project would not have been completed without this key building industry help. Thanks to the support of Caruso Homes, we have helped a few homeless families have a warmer, safer place to sleep in Prince George’s County.

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This next award presented was the Tom Sawyer Award, in recognition of significant contributions to one of Home Builders Care’s shelter-related projects. Marilyn Kresky-Wolff, the Executive Director of Open Arms Housing did the honors. This year’s winner exceled as a model trade partner and helpful contributor to a project at Owen House, a small multi-unit property owned and operated by Open Arms in Washington, DC. Owen House was once a run-down four-unit, low-rise apartment building on a narrow street in Northeast, DC. Today, it is now the new home to four women who were once homeless. Founded in 1997, Open Arms embraces a Housing First approach in its mission to provide permanent housing with a welcoming and supportive environment to women who are homeless with a variety of mental health issues. They believe that housing is therapy, and that stable, safe housing is necessary to promote the physical, mental and emotional well-being of all persons, particularly women suffering from chronic mental illness. Owen House is their second project and Home Builders Care has lent its expertise to both. Funding for the acquisition and renovation of the project came from more than 15 sources, most notably the DC Department of Housing and Community Development in the form of a permanent loan, and a grant jointly funded by DHCD and the DC Department of Behavorial Health. Additional key funding comes from local foundations and the DC Housing Authority’s Local Rent Supplement Program.


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As with most projects of this kind, there are always funding gaps, especially when new, unexpected issues arise. On this project, after a last minute scramble to obtain the certificate of occupancy, (shout out to Hercules Fence for coming to the rescue), and finally have the women move in, there was still the problem of deciding what to do about lack of any landscaping. The back yard was dreadful and the front yard had been worn down by months of construction.

“Without the support of Ashton Manor stepping up to help at a deep discount, the landscaping may have never been completed.� 18

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Up walked Jeff Schwartz and his Ashton Manor Environmental crew to learn more about our program and decide what elements would work best on the property with minimal maintenance needs. He learned that the resident using the back yard the most was wheelchair-bound and that a new back staircase may have to be built to provide two other residents improved direct access from the second floor. When the landscape installation plan was finalized in December, Open Arms did not expect work to be completed until 2016. They were elated when we discovered that Ashton Manor was able to schedule one of their crews for us during one of the warm weeks right before the holidays in December. The women, and some of their neighbors, were excited to see the trucks roll up and workers begin installing a beautiful and functional 300 sq. ft. paver patio with surface drains. A planting area and garden were added along with over a dozen shrubs and a crape myrtle tree to help offer privacy screening. River gravel was also included to beautify the space.


Owen House, Before and After

Their work has made quite a difference, especially when you look at the side-by-side before and after photographs of the backyard. It’s an amazing transformation. The total project value of the outdoor work was $15,000, of which 100% was covered by Home Builders Care and Ashton Manor Environmental. Frankly, without the support of Home Builders Care and Ashton Manor stepping up to help at a deep discount, the landscaping may have never been completed and certainly not in a timely and worry–free manner. Thanks to Ashton Manor and its key building industry help, four formerly homeless women have a new home and a beautiful backyard they can be proud of. Congratulations and thank you to both our Community Service Award Winners.

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A

s winter wanes, excitement starts to spread across the land, anticipation begins to build. When it comes to March and bringing people together to celebrate, there is nothing quite like Builder Mart, the oldest and largest one-day building industry trade show in the region. MART Madness tips off Wednesday, March 23 at the Maryland State Fairgrounds in Timonium, MD. On display will be more than 300 booths featuring the latest products and technology, top notch education, nearly 3,000 people to network with, the legendary all you can eat and drink bull and oyster roast and a rockin’ After Party featuring ECLIPSE, a Journey Tribute band. This is the 46th year of Builder Mart and we predict it will be the most winning one yet. Buy your tickets now at www.buildermart.org

THE KEYNOTE SPEAKER In honor of March Madness we are thrilled to have former NCAA Champion and Hall of Fame Basketball Coach of the Maryland Terrapins Gary Williams speaking about “How to Build a Winning Team.” A five-time National Coach of the Year finalist, the 2002 ACC Coach of the Year, and the sixth-winningest coach in Atlantic Coast Conference History, Gary Williams successfully guided his alma mater to the 2002 NCAA championship during his 13th season as head coach. He has transformed the Maryland program into one of the nation’s most formidable and has built a following that has consistently resulted in sellout crowds. In 2002, Williams released his autobiography, Sweet Redemption: How Gary Williams and Maryland Beat Death and Despair to Win the NCAA Basketball Championship, chronicling his experiences as player and coach at the University of Maryland. With consecutive trips to the Final Four, the school’s first national crown, 21 consecutive weeks in the USA Today/ESPN Top 10 and the school’s first #1 ranking, Williams has constructed the most prominent era in Maryland basketball history.

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On display will be more than 300 booths fea足turing the latest products and technology, top notch education and nearly 3,000 people to network with.

THE EDUCATION At Builder Mart, architects, engineers, custom builders, interior designers and others can learn about design trends and applications, understand new techniques and processes, get updated on the latest codes and much more! ARCHITECTURAL COURSES Mineral Wool Insulation: Sustainable Solutions for Thermal, Fire, and Sound Control (provided by Roxul, Inc.) Instructor: Dan Brown The energy savings potential of a properly insulated building is well understood. However, as design professionals work to maximize the thermal resistance of wall assemblies and reduce wall section thickness, insulation is being positioned both in the stud wall and on the exterior side of the wall assembly. This split insulation concept has introduced several design concerns related to fire resistance and the drying potential of wall assemblies. This program will focus on the unique properties of mineral wool insulation and how it can improve the wall assembly performance related to thermal, fire, water, and sound control. (1 LU/HSW) PVC 101 - The Benefits & Uses of Cellular PVC Trim (provided by Versatex Trimboards) Instructor: Matt Cullen This course will explore the performance properties of cellular PVC trim and its varied uses within the building industry. It will cover best practices for preparation and installation, as well as applications in markets ranging from residential construction to historic preservation. Finally, the course will explore the different green properties of cellular PVC, as well as two case studies. (1 LU/HSW)

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Vinyl Windows: Performance, Construction, and Functionality For Residential and Light-Commercial Applications (provided by MI Windows & Doors) Instructor : Tony Matter This course will provide an overview of vinyl window use in residential and light-commercial markets, covering information such as the history of vinyl windows, common vinyl window types, historical and current market data, as well as future market trends. Key performance attributes, industry ratings, standards, and test methods are also covered. (1 LU) OTHER COURSES Fair Housing Seminar (Class Code 127-0712) Instructor: Shawn A. Goldfaden, Esq., Senior Vice President, Residential Title & Escrow This 90-minutes course will teach attendees how to deal with the latest issues in fair housing. Individuals who complete the class are eligible for Fair Housing Professional Certification or Real Estate continuing education credits. *Education classes subject to change. Visit buildermart.org for the latest information.


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EARLY MOVE OUT DOORS *Booths in green along back wall are $995 *Booths in red have pole in front or back corner of booth. *Booths along the front and back walls are 8x10 booths.

THE SHOW FLOOR This year’s Show Floor features more than 300 booths filling more than 100,000 square feet and displaying some of the finest home building products, technologies and services available to the building industry.

RESIDENTIAL WARRANTY COMPANY, LLC

THE FOOD, FUN & GAMES The all-you-can-eat Bull & Oyster Roast is known far and wide as one of the highlights of Builder Mart, featuring a fully catered buffet including, pit beef, ham and turkey, grilled Italian sausage, oysters on the half shell, hot dogs, baked beans, grilled fajitas, cream of crab soup, cole slaw, potato salad, desserts, sodas, bottled water, tea and coffee, plus all-you- can-drink regular and lite beer and it’s all included in your ticket! No one will leave the show hungry. Of course you will need all that food to walk the enormous show floor. Don’t skip a booth or you may miss out on great prizes and giveaways. If you’re there to win, be sure to sign up for MBIA’s CornHole Tournament when you arrive at the show. You can find it next to the MBIA Lounge, where members can stop by and find out what’s happening at their Association. Of course non-members are welcome too, but we may not let them leave without joining MBIA!

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THE CHARITABLE SIDE of BUILDER MART The Home Builders Care Foundation is MBIA’s official nonprofit charity that builds for the homeless and others in need – in the name of the building industry - throughout the state of Maryland and the District of Columbia. Stop by the HBCF booth to learn about their construction projects and find out how you can get involved, plus buy a raffle ticket to support this fine charity.

We are pleased to announce that Stephen J. Orens and Judyann M. Lee have joined our Firm. Steve is well known to members of the building industry. He has an impressive track record in the areas of municipal law, land use and zoning, and administrative litigation. Judyann brings to our Firm her expansive knowledge in the areas of developer and builder representation. She also represents many homeowner and condominium associations before and after their conversion from developer control to owner management. Steve and Judyann complement our Firm’s focus on serving the needs of builders and developers. 1901 Research Blvd, Suite 500 • Rockville, MD 20850 301-251-1180 • mcmillanmetro.com

Choose knowledge, strategy and results

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THE AFTER PARTY After the show floor closes, the food, fun and beer keep flowing at Builder Mart’s 3rd Annual After Party from 6:00pm-8:00pm, featuring ECLIPSE, a Journey Tribute, a five man band out of Baltimore, that recreates and captures the spirit, sound and innovation that is the live Journey experience. Eclipse plays selections from the Classic Steve Perry period of 1978 – 1986 as well as classic rock from the 70s 80s & 90s. You won’t want to miss this high-energy show.

Visit

WWW.BUILDERMART.ORG for show details and to register.

marylandbuilders.org

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The Mystery of

[ Part I of a two-part series

]

Surveying David S. Thaler, P.E., L.S., F., ASCE, F., NSPE, D.S. Thaler & Associates, Inc.

S

ome years ago a well-known builder was building a house on an existing lot in an old subdivision on the east side of Baltimore County. The deed for the lot included the bed of the County road in front of the lot. As the builder thought he needed a larger front yard, he dug up the road, piled it up neatly and called the County to come get it. (I am not making this up.) The Director of Public Works was unamused and it was a long time before the builder ever built again in Baltimore County. But that raised the question: If the builder had a deed to the bed of the road, why didn’t he own it and why couldn’t he do what he wanted with it? Or, how about this: Does having a deed to your house conclusively mean that you own it? If you believe it does, why do you get title insurance? You have a title for your car, but why don’t you get title insurance for your car? Early American surveyors didn’t speak of surveying as a profession or a trade, rather they referred to the “mystery of surveying.” Mystery

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is an archaic term that refers to the ancient practices of guilds, but in many respects, it seems that surveying is still quite a mystery to many today. While there are Biblical, Babylonian and Egyptian references to surveying, the development of measurement is actually fairly recent. The logarithm and the cosine were only invented in the 16th century and Greek geometry was only rediscovered during the Renaissance. The deed is much earlier and dates at least to the 12th century. As in perhaps no other area, the field of surveying is a marriage between the legal and engineering professions. That marriage is embodied in a relationship between the deed, description and survey of the property in question. The deed, the instrument of conveyance, must contain a description. The description is based upon a survey that in turn is based upon the prior deed. All three are dependent upon the rules of evidence in ways that are poorly understood. Originally, land was transferred by the Act of Livery of Seisin. Livery means delivery and a clod of dirt usually with some sticks were


handed over in a ceremony. For instance, on October 27, 1682, William Penn landed at what is now New Castle, DE and performed the Livery of Seisin to take possession of the Province of Pennsylvania. Perhaps because clods of dirt were hard to record in the land records, Livery of Seisin was replaced by the written deeds, but was still legal in some places as late as 1925. The modern era of surveying, however, really began in 1610 when Edmund Gunter invented the famous Gunter’s chain, which was ingeniously related to the English linear system and the perch. Perch, simply a word meaning a pole or rod, was standardized in the 13th century at 16 ½ feet, which was supposedly the measurement of the left feet of the first 12 men out of church on a particular day. The Gunter’s chain was an actual chain made up of one hundred links and totaled 66 feet in length or four perches. The Gunter’s chain was very convenient because 10 chains square equaled one acre, which was the ancient measure of area, the amount that a yoke of oxen could plow in a day. In addition, 80 chains constituted a mile and so the measurement of both distance and area could be accomplished with one simple instrument. Many of the railroad, turnpike, and highway rights-of-way, such as Falls Road or Reisterstown Road to name but two, are 66 feet wide because they are based upon the chain. The Gunter’s chain remained in use, essentially unchanged, until the late nineteenth century when it was replaced by the steel tape, which even today is still called a chain. In addition to distance, a surveyor measures angles or direction. The development of angle measuring instruments, in the early 17th century, based upon nautical instruments, allowed for traverse surveys of large areas, which is still the basic method used today. The telescope was attached to the theodolite (an angle measuring device) by the late 18th century and the tools of the surveyor, the chain and the theodolite or transit (simply a telescope mounted over a protractor) have remained nearly unchanged since their introduction until the present day. It is only in the last 20 years or so that electronic distance measuring equipment (called total stations), which measures distance by the use of lasers or microwaves, was introduced to the surveying profession. Some surveys are still done by transit and tape but more typically, electronic measuring equipment and Global Positioning are utilized.

THE ROLE OF THE SURVEYOR There is a widespread misconception that a surveyor can determine boundary lines. He can’t. With the exception of subdivision of existing property, which a surveyor is legally authorized to do, a surveyor by his own act cannot determine a new boundary line. Nor does the surveyor have judicial or legislative authority to establish the location of an existing boundary line. A surveyor’s determination is only an opinion−an expert opinion−but an opinion nonetheless. No one is required to accept the findings of the surveyor. His findings and monuments are given weight only by the consent of the land owners or a court. In fact, only the Circuit Court (or two adjacent landowners in rare circumstances) can determine a boundary.

The author holding a Range Pole with a reflective prism and from left: a Total Station, a GPS Receiver and a Transit. Surveyors generally used transits and steel tapes from the early part of the 20th century until about 20 years ago when they were largely replaced by Total Stations (which are electronic distance and angle measuring instruments) and GPS.

The location of boundary lines can be extremely subjective and is susceptible to a great deal of judgement. A surveyor does not decide who owns property. He locates land in accordance with the best evidence and descriptions available to him. The ownership of land depends on many factors: valid signatures, heirs, adverse rights, and numerous other elements all of which are beyond the scope of surveying.

DETERMINING THE BOUNDARY An additional misconception is related to the role of the deed. A deed is NOT conclusive proof of ownership of property—it is merely evidence. A deed also does not establish property lines and it is just one element of evidence as to their location. The manner in which a boundary survey is performed and the judgment involved is also not well understood. The two cardinal principles governing the surveyor in the location of a boundary are to follow in the footsteps of the previous surveyor, and to gather all of the available evidence and weigh the evidence in accordance with certain rules of construction. The rules of construction in determining boundary lines are legal principles established by the courts and yet are used and administered by the surveyor, often with little legal assistance. A boundary survey is really the search for and evaluation of evidence. A surveyor generally: 1) obtains written evidence of title, that is a deed; 2) goes upon the land and seeks evidence of existing monuments and possession; 3) makes measurements from the monuments he was able to locate to determine other areas to search for missing monuments; 4) makes calculations and measurements, which are also a form of evidence; 5) from the evidence of the monuments, measurements and computations he comes to conclusions in accordance with rules of construction and finally, he then uses measurements to set new monuments in accordance with his conclusions.

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In determining a property line, there are inevitably many conflicts that must be resolved. There is a hierarchy of rules, which are used in weighing conflicting elements that have been established by the courts. These are: 1. Unwritten rights 2. Senior rights 3. Written rights 4. a) monuments natural artificial b) adjoiners c) direction d) distance e) area More on the principles for determining boundaries and ALTA surveys in Part II of this series.

LOCATION DRAWINGS Location drawings, which were formerly known as location surveys, were the subject of considerable controversy in the past because they are not really surveys at all, but rather an inspection usually for the lender. Location drawings are generally required for almost all residential transactions where a lender is involved including most new home sales. Location drawings provide some level of assurance that the improvements are actually located on the property and this

assurance is for the use of a lender or title insurer only. In Maryland, there are specific regulations related to location drawings: a surveyor is required to have the ultimate consumer sign a specific request and the final location drawing must include the statement that, “[this] location drawing is not a boundary survey and cannot be relied upon by anyone to show where the property’s boundaries are.”

David S. Thaler, PE, LS, F., ASCE, F., NSPE is the President of D.S. Thaler & Associates, Inc., a civil and environmental engineering and surveying 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, where he lectures on land use. He has published more than 200 articles and five books, and has won numerous life time achievement awards. He also holds both the highest professional engineering award in Maryland, now known as the Thaler Prize, and the Maryland Distinguished Service Cross, Maryland’s highest military honor.

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ENGINEER’S TOOLBOX

NAVIGATING THE DISTRICT OF COLUMBIA BY CARLOS OSTRIA, P.E., AMT, LLC

M

ore and more of our member builders and developers are moving into the Washington, DC market to build small to large-scale residential and mixed use projects. If not familiar with the process, they may find the permitting process in the District to be a fragmented and confusing task. The vast number of stakeholders on any given project means that all of these agencies and entities have a say in how your project gets built. Permits and reviews range from raze permits to environmental, federal and historical reviews. The “alphabet soup” of agencies that represents permitting reviews in DC include the Department of Consumer Regulatory Affairs (DCRA), Office of Zoning (DCOZ), Department of Energy and the Environment (DOEE), DC Water, District Department of Transportation (DDOT), the DC Surveyor’s Office (DCSO), DC Water and others. If your project is adjacent to Federal Land most likely that land will be controlled by the National Park Service (NPS), Architect of the Capitol (AOC), or the General Services Administration (GSA) and

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they may have significant input on your project. Projects that will be constructed near WMATA tracks, stations, tunnels or easements, will need a review from the WMATA Office of Joint Development and Adjacent Construction (JDAC), which can be a lengthy and detailed process depending upon the impact to their facilities. Projects that impact bus stops or shelters located in DDOT public space will also require a review by WMATA. Zoning reviews are typically led by an attorney or architect with minimal civil engineering involvement. If a project conflicts with the Zoning Regulations or Zoning Map, relief involving an amendment to the above, an air rights development or Planned Unit Development (PUD) requires approval by the Zoning Commission (ZC). A PUD is a zoning review process that allows flexibility in adherence to specific zoning requirements in exchange for the public benefits of the project. If your project involves a variance, is a special exception use, or requires an appeal, the Board of Zoning Adjustment (BZA) will undertake the review and approval. Before filing for a building permit, an Environmental Intake Screening Form (EISF) may be required by DCRA to determine if your project would result in adverse environmental impacts during construction and operation. It is typically started early in the permitting process since the review can take upwards of 90 days. DCRA distributes the submittal to various agencies for their review and comment. Major items required with the submittal include concept level Site Plans, a Phase I/ Phase II ESA, a Geotechnical Report and possibly a Traffic Analysis/Report and an Air Quality Analysis of Emissions. Projects

can be exempted from the EISF based on type, scale and location. Permits are issued by DCRA for most construction/renovation work in the district. DCRA will review building construction documents for discipline code compliance and will also verify approvals of other agencies prior to issuance of the final building permit. There are several building permits that you may need for your project and these include:

BCIV – This permit is for site work only. It excludes any building-related review. Sheeting and Shoring – Covers temporary structural support of the building excavation. Foundation to Grade permit – Covers temporary structural support of the building excavation. Core & Shell permit – Covers the above-grade structural and architectural components.


3rd Party Building permit – This is a peer review of a Building Permit excluding certain DC agency reviews. There are several other agency reviews that may be necessary prior to issuance of Building Permits, including the following. DCOZ– Reviews conformance to the property’s zoning and pre-permit zoning approvals. DCSO – Provides property related tasks required by the Building Permit process, such as establishing lots for development, issuing Building Plats and reviewing condo plats.

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

DOEE – Reviews sediment control, stormwater management and Green Area Ratio for development projects, but also provides environmental permit reviews for work involving environmental issues. DDOT – Reviews permanent surface improvements in public space and Traffic Control Plans for temporary use of public space for construction. DC Water – Reviews connections to public water, sanitary sewer, and storm sewer utility mains. The above is a short overview of the regulations and agency involvement for projects in the District. AMT recommends an analysis of the required permits and associated durations as an initial step in the development process.

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 Townhome Lots S. Dolfield Road, Owings Mills, MD $30,000 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 Woodlawn Aberdeen, Maryland 103 single family lots plus 14 acre parcel zoned R-3 $6,800,000

Carlos Ostria, P.E. is Managing Associate in AMT’s DC office. He can be reached at 202-289-4545 or costria@amtengineering.com Stephen J. Ferrandi, Director of Land Brokerage • Accredited Land Consultant (ALC) licensed through

marylandbuilders.org

• 410-290-1110

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STATS & FACTS

STATS & FACTS 2015 YEAR IN REVIEW, 2016 OUTLOOK BEN SAGE, METROSTUDY

I

t has been an interesting, and disappointing, couple of years for the Maryland new-home market. In 2012, starts grew by 22 percent from the previous year, which had been the low point for this market. This was followed up in 2013 with a 13 percent growth in starts, and there was a general sense that we were on our way to a more robust recovery. We did experience some expansion in 2014, but the six percent increase in starts was below expectations. The lackluster results were mostly attributed to sequestration, which set the local economy back and hurt homebuyer confidence. Builder feedback also indicated that sales traffic was generally characterized as either unprepared (financially) for homeownership or lacking urgency to buy … or both. Metrostudy had modest expectations for 2015, and we are reviewing the preliminary results of our year-end survey as of the writing of this report. It would appear that Maryland (excluding most of the eastern shore) plus DC started 9,183 for-sale units in 2015, which would be a five percent decline from the previous year. Interestingly, we were ahead of 2014 for most of the year, but fourth quarters starts were weaker than expected. The slowdown was broad based, geographically, as only Howard and Charles Counties were up (slightly) from

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2014. The largest fourth quarter decline occurred in the District, which generated only 29 starts in the last three months of the year. Washington, DC, was one of the better performing submarkets, but vacant developed lot supply has dwindled to only 33 lots as of the end of the year. Clearly this drop in starts is a supply problem as opposed to a demand issue. The largest year-over-year decline in annual starts was in Montgomery County. There were 1,092 starts in 2015, which is the third most among Maryland counties, but this is down 30% from 1,570 units in 2014. Like DC, there may be an element of supply limitations in Montgomery, as the 1,304 vacant developed lots corresponds to only 14 months of supply, which is quite low. However, this finished lot count is 75 percent higher at the end of 2015 compared to the end of 2014, so supply has grown significantly from the previous year. It could also be that higher prices are pushing shoppers’ ability to buy in Montgomery. In the last two years the average closing price of a new home in the county grew from $545,000 in 2014 to $635,000 in 2015. As for Metrostudy’s outlook for 2016, we remain cautious, but there is reason for optimism. The economy remains fairly strong, as Baltimore added 31,600 jobs during the year ending November 2015. Suburban Maryland employers added a similar number, 29,100 new

jobs over the same period. According to MRIS, resale volume was up 12 percent in 4Q15 compared to 4Q14, and the year 2015 was up 17 percent compared to the prior year. Resale supply remains in check, as Maryland listings are down just slightly from the previous year. The 19,854 listings correspond to 3.7 months of supply, which is rather low so we should see a little more price appreciation this year. Unemployment is also low, so all the “traditional” indicators used to forecast housing look good. Unfortunately, these leading indicators have not effectively foretold the direction of the housing market recently, partly because housing growth has increasingly chosen a rental option. Demographic trends would indicate that there is upward pressure on homeownership, so we expect housing choices to slowly shift more towards the for-sale market in the next couple of years, which will be a great help to Maryland homebuilders. Ben Sage is the Director of Metrostudy’s Mid-Atlantic Region. He regularly meets and consults with many homebuilders around 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.


ANNUAL EMPLOYMENT GROWTH* MARYLAND RESALE MARKET Annual Sales* and Listings History

SUBURBAN MD

BALTIMORE

JUL-14

8,400

14,400

AUG-14

10,200

15,500

SEP-14

12,800

17,600

OCT-14

15,000

16,700

NOV-14

10,500

14,100

DEC-14

10,300

20,500

ANNUAL SALES

LISTINGS

JAN-14

55,002

16,717

JAN-15

13,300

22,300

FEB-14

54,993

16,996

FEB-15

15,800

27,000

MAR-14

54,784

17,866

MAR-15

18,500

15,700

APR-14

54,558

20,083

APR-15

23,700

19,400

MAY-15

19,700

23,900

MAY-14

54,526

22,156

JUN-15

20,900

29,400

JUN-14

54,713

23,316

JUL-15

20,700

39,900

JUL-14

54,451

23,641

AUG-15

18,700

36,900

AUG-14

54,428

23,775

SEP-14

54,613

24,633

OCT-14

54,971

24,344

NOV-14

55,198

22,232

DEC-14

55,995

20,059

JAN-15

56,366

19,425

FEB-15

56,847

18,999

MAR-15

57,800

19,706

APR-15

58,706

21,809

MAY-15

59,365

23,685

SEP-15

20,000

27,500

OCT-15

25,500

33,400

NOV-15

29,100

31,600

* Year-over-year growth for each month | Source: Bureau of Labor Statistics

NEW HOME STARTS CHG BY COUNTY ANNUAL STARTS CECIL

4Q15

4Q14

# CHANGE

% CHANGE

71

123

-52

-42.3%

CALVERT

137

180

-43

-23.9%

QUEEN ANNE'S

100

149

-49

-32.9%

WASHINGTON

145

136

9

6.6%

BALTIMORE CITY

280

91

189

207.7%

FREDERICK

736

592

144

24.3%

JUN-15

60,663

24,343

JUL-15

61,800

24,594

CHARLES

818

666

152

22.8%

WASHINGTON DC

627

1,037

-410

-39.5%

AUG-15

62,605

24,480

SEP-15

63,475

25,058

OCT-15

64,098

24,395

NOV-15

64,544

22,447

DEC-15

65,245

19,854

* Running Source: MRIS (not all MD counties represented)

BALTIMORE

665

680

-15

-2.2%

ST. MARY'S

293

311

-18

-5.8%

ANNE ARUNDEL

1,333

1,313

20

1.5%

PRINCE GEORGE'S

1,333

1,323

10

0.8%

243

269

-26

-9.7%

CARROLL HARFORD

316

311

5

1.6%

HOWARD

994

965

29

3.0%

MONTGOMERY

1,092

1,570

-478

-30.4%

TOTAL

9,183

9,716

-533

-5.5%

marylandbuilders.org

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33


NEW PRODUCT SPOTLIGHT

GE INTRODUCES NEWLY DESIGNED ZONELINE AIR CONDITIONERS

A

sk a hotel front desk employee or read an online review to learn quickly that temperature and noise are two of the biggest complaint opportunities for guests, and both can result from a faulty air conditioner. Hospitality industry data proves that when guests are not pleased with the temperature or noise of their room, two-thirds are unlikely to return to the hotel, and one-third are unlikely to recommend a hotel.

GE’s new Zoneline packaged terminal air conditioners (PTACs) are now engineered to be more reliable and quiet, perfect for hotel/motel customers, as well as provide energy efficiency and easier installation and maintenance, all features that are critical to hotel/motel owners. “The number one priority for hotel owners when it comes to PTACs is having a reliable, dependable unit. If the unit isn’t working, the room cannot be sold, which means a loss of revenue for hotel/motel owners,” said Liz VerSchure, product general manager for consumer comfort. “GE has millions of installed Zoneline units with an excellent service record, and its latest design will build and improve on that legacy.” With this new design, GE has taken the most important aspects of heating and cooling the traveler’s room into account, so both the guests and our customers can rest easy at night. FEATURES INCLUDE Reliability: With millions of units installed across the United States, GE Zoneline PTACs offer consistent performance and unrivaled comfort for guests. Its redesigned structure and easy-access front controls simplify service. Quiet: GE Zoneline is the quietest PTAC compared to leading competitors, has the best noise insulation and lowest dBA, as verified by an independent, nationally accredited certified acoustics lab. An extra seal surrounding the edge keeps dirt and excess noise outside, along with a heavy-duty mastic seal for extra sound deadening and two fan motors for quiet operation.

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BUILD MARYLAND

March/April 16


Efficiency: GE’s Zoneline units are on average eight percent more energy efficient than the leading competitor’s units. Specially designed sentinels protect property by preventing overheating and freezing, all while enhancing efficiency in extreme elements. Zoneline PTACs come standard with highly featured microprocessors for efficient operation. For a 100-room property, efficient heat pump models can save a hotel owner an average of $36,170 annually on their utility bill.

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Designs for every room.

Appearance: New design and appearance improvements keep a fresh, streamlined look: A backlit, coverless control panel with white, dimmable LED lighting makes the functions easier to read. Zoneline also boasts the industry’s slimmest room front, leaving more room for guests. Matching color sleeves blend perfectly with interiors. GE Appliances: GE Appliances is at the forefront of building innovative, energy-efficient appliances that improve people’s lives. GE Appliances’ products include refrigerators, freezers, cooking products, dishwashers, washers, dryers, air conditioners, water filtration systems and water heaters. For more information on GE Appliances, visit www. ge.com/appliances.

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

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35

3/6/13 1:55 PM


new MEMBER

NEW MEMBER SHOWCASE

SHOWCASE Erik Dahl, CEO, GotMyJobs

long time member, who recently retired as a zoning attorney. Are you involved with any MBIA committees? Since we only joined MBIA in December of last year, I am not familiar which MBIA’s committees might work for GotMyJobs, but it’s something I will pursue. Starting an information technology section might be interesting.

How long have you been with your company and what is your role? I co-founded GotMyJobs in September of 2014 and I am its CEO. As CEO I am responsible for the development of software to help construction companies schedule, manage and track jobs. (The software can be found at GotMyJobs. com or at the Google Play and Apple stores.) I really enjoy meeting with customers so I can better understand their problems and then work out how our software can solve them. Why did you join MBIA and what do you hope to gain from your membership? Was there someone who influenced you to join? GotMyJobs joined MBIA to meet its member companies so that we can work with them to utilize information technology to increase efficiency in the building process. We heard about MBIA through Kathryn Dahl, a

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March/April 16

What’s a favorite moment in your career so far? I’m not sure I have a favorite moment but I really enjoy the constant changes and new challenges that technology presents. At the start of my career I was rolling out the Internet at a major New York hospital. Since then, I’ve done several startups that helped companies run their computer systems more efficiently. Most recently, I’ve been working in startups that use mobile smartphones to solve business challenges. What I like most about GotMyJobs is that we’re using the power of smartphones to make scheduling, managing and tracking construction jobs easier. Seeing the positive impact technology has on our customers’ businesses is really great. What was your childhood dream job? To be a rock star! I played in bands throughout high school and college. Luckily, I was also interested in programming computers, which turned out to be a more practical career.

Any business tips can you share with others? I’ve always like new challenges and technology provides many of them. When I see changes happening in an industry, I try not to shy away from them but instead to look for the opportunity. What is your favorite app or social media outlet? My favorite app is GotMyJobs, of course! I also like Sonos since it lets you control all the music in your house from a mobile phone. Very cool. What is your dream vacation spot? New Zealand. I’m a sailor and every since the America’s Cup was there, I’ve wanted to visit but it’s a long way away and my schedule is busy. Some day! If you had a chance to meet any celebrity, who would it be? Well, it’s definitely not going to happen, because I would love to have had dinner with Steve Jobs. While he was not a perfect guy, he was able to build amazing businesses like Apple and Pixar even in the face of enormous challenges. Guilty Pleasure: What can you not live without? My recording studio is my guilty pleasure since I love making music. It’s a guilty pleasure because it takes up a room in the house and it’s rarely used because of lack of time. I know that I will get back to it sometime though.

“What I like most about GotMyJobs is that we’re using the power of smartphones to make scheduling, managing and tracking construction jobs easier.”


Leah Kaiz Fellows, Owner, Blue Gypsy, Inc.

How long have you been with your company and what is your role? I started Blue Gypsy Inc. in January of 2010. The focus of my company is to assist builders with hiring and implementing an online sales position within their company. My role is both the owner and the online sales trainer for builders. I do comprehensive systems analyses from website, to lead generation, to CRM and make recommendations as we implement the program and hire and train the right person for the job. Why did you join MBIA and what do you hope to gain from your membership? Since my husband is active duty military, Blue Gypsy Inc. has always been a mobile business. I have had clients all over the country and work with builders, developers, real estate agents and builder related businesses. We moved to Maryland recently and I wanted to get involved in the building community here in the area. I hope to connect with local builders, and assist them in developing their online sales program to increase sales for their businesses.

Are you involved with any MBIA committees? I have dived in and gotten involved with two councils and two committees so far at MBIA. I am involved with the Builder Mart committee and now the membership committee. They naturally fall into my wheelhouse of skills with online sales, marketing, and following up. Right away I joined the Professional Women in Building Council and the Sales & Marketing Council and have enjoyed meeting new people and seeing how I can become more involved. What’s a favorite moment in your career so far? It’s hard to pick just one favorite moment. But recently while mentoring a new trainee for a builder in Tennessee, it was very rewarding to see the light bulb turn on as the online sales assistant realized that her numbers mattered to the builder and they were directly related to her efforts to set appointments and assist with sales. What was your childhood dream job? After graduating with a degree in advertising from Boston University, I bartended my way from Boston to Las Vegas and then spent 13 years traveling around the world. First as a backpacker, then as a dive instructor and sailboat captain. I’ve lived in a variety of countries and Islands from Guatemala to Zanzibar. I’ve worked on catamarans in the British Virgin Islands and taught scuba diving to teenagers. I had the opportunity to develop a leadership training program for teenagers that is still used in some form in over six countries. I think I’ve lived the dream, which includes owning my own company with a passion for new homes. Any business tips can you share with others? First and foremost be passionate about what you do. If you are not passionate about your work and your business it will not convey to others. As far as what I do with Blue Gypsy Inc. follow-up is the key. Don’t take the lack of a response

as a no. Consistent persistent follow-up will garner results when it comes to new home sales. This is true though for any business. Everyone can learn the power of follow-up and follow through. What is your favorite app or social media outlet? On a personal level I’m a bit addicted to Facebook because it allows me to stay connected with all the people I have known from the variety of walks of life I have lived. On a business level, it’s not an app or social media, but my favorite tool is still good old-fashioned email. Email is not dead, and when used properly it can be a powerful tool for converting sales in any industry. What is your dream vacation spot? If I had to choose one place that I have not yet been to it would have to be Bali. It’s always been a dream of mine to spend some time exploring Indonesia, perhaps going on a meditation retreat and scuba diving there. If you had a chance to meet any celebrity, who would it be? If I were to pick a celebrity to meet I think it would be Reese Witherspoon. She had me crying my eyes out at the movie “The Good Lie.” I loved the book “Wild” and thought she did a good job with that movie, and I think she seems genuine when I’ve seen her interviewed. Besides I want to pitch her a movie idea about my friend who struggles as a single mother with two children in wheel chairs who suffer from a rare disease. I think she would be great with that. So there are networking reasons as well. Guilty Pleasure: What can you not live without? My iPhone. I joined the smart phone generation kicking and screaming. I thought cameras were for photography and computers were for email…now I can’t live without my Swiss Army Knife of uses, my iPhone. I’m an addict.

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37


NEW MEMBERS & REINSTATEMENTS

DECEMBER 2015/ JANUARY 2016 REMODELER GotMyJobs, Inc. Erik Dahl 11708 Parklawn Dr. Rockville, MD 20852 888-570-4786 edahl@gotmyjobs.com

CI Contracting Co. Tony Brailsford P.O. Box 2637 Baltimore, MD 21215 410-318-8177 info@cicontracting.com

ASSOCIATES Bowman Consulting Group Jeff Smith 2530 Riva Road, Suite 200 Annapolis, MD 21401 410-224-7590 jsmith@bowmancg.com

Heritage Plumbing Service, Inc. Sean Fohner 103 Dixon St. Selbyville, DE 19975 302-436-6426 heritageplumb@yahoo.com

Roberts Company Inc. Wayne Tusing 1040 Cromwell Bridge Rd. Towson, MD 21286 410-828-7750 wayne@robertscoinc.biz

EASTERN SHORE CHAPTER Messick Home Improvements, Inc. Donnie Messick 106 Morris Mill Road Salisbury, MD 21804 410-742-8072 deb.messick@comcast.net

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38

BUILD MARYLAND

March/April 16

MBIA IS ON HOUZZ The Maryland Building Industry Association is a pro on Houzz. Houzz is an online platform for home remodeling and design, that brings home owners and home professionals together in a visual community. Now, you can have the MBIA logo badge added to your professional Houzz profile. It will help showcase your industry credibility and make you a part of our member directory. We already had the Houzz folks add our logo affiliation badge to our members with active professional profiles. If you are a member and your profile didn’t get an MBIA badge, make sure you add it to be part of our growing network. We put photos of all of our award winners on our page and follow our members so visit us today. If you are not yet on Houzz, set up a free profile today.


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Gaithersburg Area Call

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2014 HBAM Directory + Membership Blueprint

410.590.5209

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DGG-MC, Inc. Dewberry Residential Title & Escrow SolarCity Wells Fargo Home Mortgage

Chesapeake Employers Insurance Company K Hovnanian Homes Lakeside Title Company Morris & Ritchie Associates, Inc. Pleasants Development Pulte Saratoga Insurance /CEI Shelter Systems

84 Lumber Andersen Windows Elm Street Development Linowes & Blocher McMillan Metro, P.C. Miles & Stockbridge Rodgers Consulting, Inc. Soltesz SunTrust Mortgage

Bonded Builders Warranty Group Bozzuto Homes Dico EYA Macris Hendricks & Glascock, PA Michael Harris Homes Miller & Smith Homes Mitchell & Best Group O’Malley, Miles, Nylen & Gilmore Rutter Project Management Wetland Studies & Solutions

Builders Mutual Insurance Co. Caruso Homes Charles P. Johnson & Associates Geo-Technology Associates, Inc. Gutschick, Little & Weber, P.A. Insurance Associates, Inc. Lerch, Early & Brewer, Chtd. Sandy Spring Bank Shulman Rogers Stantec Consulting Services, Inc. Sterling Mirror & Glass Winchester Homes

BUILDER’S BOOKSHELF

Check out this Top Seller from NAHB BuilderBooks. As an MBIA member you are automatically an NAHB member and are entitled to great discounts on publications, software, brochures, and more. What Green Means to Home Buyers: Perceptions & Preferences What home and community features influence consumers when they are considering buying a home? Energy efficient or high efficiency: Which description resonates more with home buyers? Typical home buyers often don’t understand the language building professionals use to market green homes. We can meet this challenge by rethinking how we talk to our customers. The NAHB Sustainability & Green Building and the Economics & Housing Policy Groups partnered to conduct a study of consumer preferences focusing exclusively on green/ high-performance features in the home and the community. What Green Means to Home Buyers: Perceptions and Preferences discusses the latest data on the green and performance-related messages consumers respond to—and what they are willing to pay for. NAHB Member Price, $79.95


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From the leader in appliance innovation comes the industry’s first refrigerator with an integrated hot water dispenser. Thanks to GE, preparing hot food and drinks is easier than ever. Now that’s just smart. geappliances.com

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MID-ATLANTIC BUILDER JULY/AUGUST 2014

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