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Meet the HBAV president Homearama heads west
The year in review
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Vol. 56, Number 9 The mission of Tidewater Builders Association is to improve the climate for affordable housing; promote the growth and development of the shelter industry; promote excellence and professionalism among members through education and networking opportunities; and support and enhance the community through charitable projects. 2009 OFFICERS: Pete A. Kotarides, president; William H. Halprin, vice president; James E. Jackson, associate vice president; Charles J. Miller II, treasurer; S.L. “Sam” Cohen, secretary; Jack Schoch, appointee, Steven E. Lawson, appointee; Edward R. Sadler, immediate past president 2009 BUILDER DIRECTORS: Richard L. “Tuck” Bowie, Scott G. Brooker, Christopher J. Ettel, Dennis M. Graf, Pete O. Kotarides, Steven E. Lawson, Lucky C. Peterson, Stephen B. Quick IV
The Mid-Atlantic Home & Flower Show is less than eight weeks away. TBA sales representatives are taking reservations now for booth space. For more information, see page 18.
2009 ASSOCIATE DIRECTORS: G. Robert Aston Jr., J. Gregory Dodd, Thomas W. Dye, Scott M. Gandy, Brenda K. Reid, Samuel G. Scott, H. Mac Weaver II, Edward O. Yoder DIRECTORS EMERITI: Edward P. Brogan, William J. Fanney, Richard D. Guy, Doyle E. Hull, Frederick J. Napolitano, Richard E. Olivieri, John H. Peterson Jr., The Honorable Owen B. Pickett, Julian Rashkind, Stanley Waranch, Howard M. Weisberg, Wendell A. White CHIEF EXECUTIVE OFFICER:
Channing A. Pfeiffer
Managing editor. . . . . . . . . . . . . . . . Mary Prier, APR Editor . . . . . . . . . . . . . . . . . . . . . . . . . . . Sara Steil Advertising sales . . . . . . . . . . . . . . . . . . Kim Powers Leigh Ann Sirmans Production coordinator . . . . . . . . . . . . Stella Council
!
Features 19 A festive People’s Choice winner
Definitive Homes’ Thanksgiving House takes home the People’s Choice gold award for Favorite House at Homearama 2009 at Culpepper Landing.
Adviser . . . . . . . . . . . . . . . . . . . . . . Sandra Amidon Graphic Artist . . . . . . . . . . . . . . . . . . .Diane Trumbull Copyright: 2009; all rights reserved. No permission to reprint unless expressly given by Tidewater Builders Association. The Tidewater Builder is published for all TBA member firms through the $15 subscription price, which is included in the annual membership fee. Opinions expressed by contributing columnist are not necessarily those of this publication.
The Tidewater Builder is published monthly, January through December, by Tidewater Builders Association, located at 2117 Smith Ave., Chesapeake, VA 23320. Editorial deadline is 5 p.m. on the 1st of the month preceding publication. Advertising deadline for copy and insertion order is p.m. on the 10th and for camera-ready ads, 5 p.m. on the 15th of the month preceding publication. All advertising is subject to current rates, copies of which can be obtained from the Special Events/Membership/Marketing Division, 420-2434. The magazine reserves the right to determine the suitability of any advertising or editorial copy, and all real estate advertising is subject to the Federal Fair Housing Act of 1968, which makes it illegal to advertise any preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status or national origin, or an intention to make any such preference, limitation or discrimination.
25 Congress gets off the fence Newly passed legislation opens up the market for more movement with new and repeat home buyers.
Departments$ 20
Counsel’s Insights
28
Membership Update
22
Shop Talk
28
Advertisers’ Index
22
Big Pic
Events Calendar
About the cover: Thanks to the efforts and donations of numerous TBA members, our headquarters received a much-needed renovation, from a new parking lot and landscaping to new siding and an awning. To see a list of those who contributed, please see page 2. DECEMBER 2009
1
2009 Year in review
T
Year in review Changing tide means changes for TBA
his special annual report issue of The Tidewater Builder offers a chance to look back over a challenging year that saw Tidewater Builders Association adjust to changing times along with its
suffered declines in advertising revenues and ceased publication, so too have the publications TBA has been publishing for associations in other markets, as well as the consumer New Home and Remodeling magazines. members. As a member service, TBA will continue to pubUnlike most associations that rely heav- Our mission: to improve lish The Tidewater Builder membership magaily on member dues, TBA focuses on zine, but will reduce the frequency to every the climate for quality housnon-dues revenue to cover operating other month in 2010. Meanwhile, TBA ing for all incomes; promote the costs and support member services, has been enhancing its Internet commugrowth and development of the keeping dues low and providing sernications to assure ongoing communicashelter industry; promote excelvices not available in many association with our members. lence and professionalism among tions. TBA plans to continue to publish a members through educational and TBA depends on successful confull-color glossy Homearama Plan Book networking opportunities; and sumer events such as Homearama for each of the two Homearamas planned support and enhance the comand the Mid-Atlantic Home & Flower for next year. munity through charitable Show, as well as its for-profit subsidiaries The insurance company, BIIA, has also — Association Publishing Inc. and Building projects. made adjustments to its business model to assure Industry Insurance Association. the products are available at an affordable rate to our These businesses face the same economic challenges members well into the future. Read more on page 12. confronting other small businesses, and adjustments have Look for periodic member surveys that will help chart the been made in business strategies. course for membership events and initiatives in the coming As some of the nation’s most successful magazines have year, and make your opinions known.
A big thank you!
What began in 2008 was completed this year as the TBA buildings underwent some changes to give it a much-needed facelift under the direction of Bob Widener. Thank you to the following companies for their contributions: A&A International Awnings & Rollshutters B&T Kitchens Building Trades Academy Custom Stone Ferguson Enterprises First Cut Tile International Tile & Marble James Hardie Siding Products Lowe’s Home Center McKown Power Wash & Painting Renaissance Outdoor Contracting Inc. Sherwin Williams Sign Works Inc. SunBelt Superior Equipment Sales Inc. Ted Lansing Building Supplies Thomasson Enterprises Tidewater Granite Vico Construction 2
DECEMBER 2009
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Virginia Natural Gas Dominion Virginia Power Fulton Bank/Fulton Mortgage TowneBank
The Ainslie Group SunTrust Bank Bank of America Tidewater Home Funding Beach Ford Inc. The Virginian-Pilot Sykes, Bourdon, Ahern & Levy P.C. Hampton Roads Bankshares Williams Mullen William E. Wood & Assoc. Kotarides Builders Napolitano Homes Clark Whitehill Enterprises Inc.
Wells Fargo Monarch Bank/Monarch Mortgage Superior Equipment Sales Inc. Cox Communications Columbia Gas of Virginia
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Area Builders of Tidewater Inc. Terry/Peterson Cos. Hearndon Construction Corp. Ashdon Builders Inc. L.R. Hill Custom Builders Inc. Miller Custom Homes Joey Corp. Greenbrier Lighting Associated Development Real Estate Information Network Inc. Reese Smith Construction iLevel by Weyerhaeuser The Closet Factor!
DECEMBER 2009
3
2009 Year in review
Membership update
Membership remains steady
A
lthough the housing market and the economy in general continued to suffer in 2009, TBA’s recruitment and retention efforts kept membership at nearly 800 throughout the year. A special thank you goes to Membership and Retention Committee members Bill Halprin, Jim Jackson, Chuck Miller, Skip Ferebee, Tom Huxtable, Chris Schwab, Doug Smith and Carol Ransdell.
Top Spikes of 2009 The following Spike Club members are to be commended for their membership efforts. The numbers by their names represent the number of members they recruited and retained during 2009. Their support helps TBA maintain a strong and healthy membership base. r r r r r r
Chuck Miller Tom Huxtable Skip Ferebee Tom Dye Pete A. Kotarides Ted Yoder
99.0 Spike credits 37.00 Spike credits 31.50 Spike credits 27.00 Spike credits 23.00 Spike credits 23.00 Spike credits
Getting into membership A membership drive held during March, April and May brought in 100 new members and provided healthy competition for those who participated in the superhero-themed contest. Ten teams competed, with participants representing past presidents, Green Building Council, Remodelers Council, Tidewater Multifamily Housing Council, TBA’s Board of Directors, Membership Committee, bankers, associate members and Homearama builders. The Green Building Team, captained by Chuck Miller, brought in the most new members at 26. The TBA Board and Past Presidents teams tied with 16 new members each, followed closely by the Associates Team with 12 new members. The TBA Festival in the Park (aka the TBA Picnic) continued to be a member favorite, with close to 2,000 people turning out for food and fun at Chesapeake City Park on June 12. The Tidewater Multifamily Housing Council returned to the event for the fourth year with its everpopular TMHC Olympics. TBA continued to educate new and
Members line dance at the Festival in the Park June 12. 4
DECEMBER 2009
Top Spikes of 2009
Miller
Huxtable
Ferebee
Dye
Kotarides
Yoder
prospective members about the membership benefits at a series of orientations held in the association boardroom. These free events, which featured a light breakfast, audio-visual presentation and member testimonials, attracted more than 40 people. Wrapping up the year, TBA’s premier event — the Builders Ball and Installation of Officers — was held Dec. 4 at the Hilton Virginia Beach Oceanfront. More than 300 members turned out to say farewell to 2009 President Pete A. Kotarides and to welcome Bill Halprin as the association’s incoming president.
2009 Year in review
Consumer events
The shows must go on
Eight families decided to make themselves at home at Culpepper Landing, the site of the 2009 Homearama.
Show offers “green shoots” during recession The economy may have been doing a free fall the first quarter of the year, but you wouldn’t have known it from the turnout at the three-day Mid-Atlantic Home & Flower Show inside the Virginia Beach Convention Center Feb. 9-11. More than 25,000 guests poured through to learn about all things home and horticulture. Actor/activist Ed Begley Jr. spoke about “being green” to more than 500 guests, and set the stage for TBA’s Green Building Council to unveil its first coordinated display of educational and informational materials about building green. A food stage featuring a chef from Certified Angus Beef, a stunt dog show, wine tastings, how-to horticultural seminars and children’s activities made for a lively atmosphere as more than 300 vendors took advantage of face time with potential customers. The event also gave landscaping companies a chance to shine as they showed off their work with 10 lavish display gardens, themed “Gardens for All Seasons.” It was the fourth year the Virginia Horticultural Foundation partnered with TBA to produce the show. The event was selected as one of the top 30 home shows
in the country to be a part of the national Premier Home Shows. The designation makes it a Better Homes and Gardens series in 2010 and opens opportunities for marketing partnerships with national companies.
Homearama stimulates buying Since 1982, Homearama has been billed as the industry’s “buy a new home now” campaign, aimed at stimulating interest in new homes and new products for the home. This year, the annual event fit the bill more than ever. With a slow economy and six days of rain as a backdrop, more than 61,000 guests attended the 2009 Homearama, Oct. 3-18, at Culpepper Landing in Chesapeake. They provided positive feedback about the showcase homes and their prices, which ranged from the mid $300,000s to $500,000. The event was deemed a resounding success by exhibitors and builders alike, who reported that guests were more likely than those in years past to be seriously shopping for a home or a product for their home. In a survey of Homearama guests, 33 percent of the respondents indicated that they were planning to purchase a new home within the next three years. Furthermore, 75 percent answered “yes” when asked if they saw or heard anything at the show that influenced them to make improvements to their home. Six of the 12 Homearama homes sold before the start of the show and two more sold two weeks later. Two builders even attracted buyers for homes expected to be in TBA’s Spring Homearama 2010 at Founders Pointe next May. More than 500 people at the Mid-Atlantic Home & Flower Show heard reality TV star and conservationist Ed Begley Jr. speak about going green. DECEMBER 2009
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2009
Year in review
Supporting the builder community In our backyards
BB&T’s regional president Bob Boyd presents a view of the “new” economy to the November TBA Builder Breakfast Forum. He was joined by John Jung Jr., managing director of capital markets, who presented a riveting presentation of the factors affecting the overall economy as well as those directly affecting the financial markets and their role in an economic recovery. The forum was sponsored by Bonded Builders Warranty Group.
T
BA’s Builder Services division brings builders together to discuss current issues affecting their livelihood. Highlights of 2009 include:
Builder Services Success Stories, published monthly in The Tidewater Builder, illustrated examples of the individual assistance that Builder Services provided to more than 150 builder members this year. The TBA Monday Morning Briefing, a weekly e-newsletter, supplied up-to-date information on the actions of federal, state and local governments and training opportunities. Builder Breakfast Forums, held quarterly, kept builder members informed of timely topics to help their business: r In February, local building officials from Norfolk, Chesapeake, Virginia Beach and Suffolk explained major changes in the 2006 International Building Code and 2006 Virginia Uniform Statewide Building Code, which became mandatory May 1, 2009. r In May, a panel of experts presented advice on working with lenders, using the law to protect businesses, tax advantages in the stimulus bill and future predictions. r In August, marketing experts spoke on Internet marketing and using technology, including social media, to market and sell homes. r In November, the final breakfast of the year featured top officers at BB&T discussing the economy and what to expect in the coming months. 6
DECEMBER 2009
In Chesapeake, Chairman Stephen Quick IV and co-Vice Chairs Greg Dodd and Erin Widener Speckhart, along with TBA staff, met quarterly with city management and development staff. r TBA asked City Quick Council to keep the proffer amounts for newly rezoned housing at current levels, resulting in a savings of as much as $4,500 per unit for single-family homes. r "U UIF %FWFMPQFST $PVODJM T SFRVFTU the city began revisions of the construction record drawings and utility activation process. eliminated the requirement for hourly reimbursement of inspection fees (monthly billing) and now calculates it by using 2 percent of the construction costs based on the city’s unit price list. It’s paid upfront upon issuance of a land-disturbing permit. r TBA also provided input for the update of the Comprehensive Plan and worked with planning staff to revise the proposed definition of affordable housing. In Norfolk, Chairman Sam Cohen and TBA staff continued to represent the industry with Norfolk officials. In Virginia Beach, Chairman John Ainslie and Vice Chair Pete O. Kotarides, along with TBA staff, continued quarterly meetings with development staff. r 5#" QSPWJEFE JOQVU UP UIF update of the Comprehensive Plan. r 5#" JT SFQSFTFOUFE PO UIF Green Ribbon Implementation Ainslie Committee advising staff on the building and development perspective of new green regulations. r TBA provided input to the Wind Energy Zoning Regulations with help from the Green Building Council. Cohen
Builder Services In Suffolk, Chairman Tuck Bowie and Vice Chair Reese Smith, along with TBA staff, continued meetings with development staff. r TBA provided input to the Planning Commission subcommittee on ordinances on the issue of residential infill redevelopment. r TBA provided recommendations to the Bowie Planning Department regarding areas that need updating in the Unified Development Ordinance and are monitoring the progress. Specifically, the stormwater section and the Affordable Dwelling Unit Ordinance were under review. In Portsmouth, Chairman Steve Lawson and TBA staff continued to monitor the Zoning Ordinance rewrite. Lawson
In Richmond
The Builder Services Division was also successful in advocating during the 2009 General Assembly Session. r The governor signed House Bill 2029, which reduced administrative costs from 25 percent to 10 percent of estimated construction costs for bonding of improvements required by a locality of a developer, (effective from July 1, 2009, to July 1, 2014.) r House Bill 2077 extended the period of validity for certain preliminary and recorded plats and final site plans, as well as other land use approvals that were valid as of Jan. 1, 2009, to July 1, 2014. (effective July 1, 2009). r Senate Bill 1335 allows a locality to waive the requirement for a public hearing to amend proffered conditions where the amendment does not affect conditions of use or density (effective July 1, 2009.) r TBA members descended on the Board of Housing and Community Development-Codes and Standards Committee to oppose expensive, mandatory fire sprinklers in all new homes in Virginia. The committee reaffirmed the earlier action to make fire sprinklers an option. TBA would like to thank our members who submitted comments and/ or attended the public hearing, including Jeff Ainslie of the Ainslie Group and Bobby Tyler of R.W. Tyler Construction. In addition, we thank the Virginia Association of Realtors and Chamber of Commerce for attending the hearing. The BHCD is expected to hear this matter again in January 2010.
In Washington, D.C. TBA members went to Washington during the Spring Legislative Conference to discuss with Congress the severity of the economic impact of the housing downturn, and to lobby for: r Congressional help to turn around the availability of AD&C credit to builders/developers; r For housing incentives to be contained in the economic stimulus package; r Defense of the mortgage interest deduction and the real estate tax deduction; and r Opposition to efforts to eliminate the secret ballot election as a part of unionization (card check). Also: r TBA leaders met with our regional Congressional delegation in August to ask for an extension and expansion of the home buyer tax credit. r TBA and NAHB monitored the application of FHA Mortgagee Letter 2009-19, which provided guidance on the new approval process for condominium projects, allowing lenders to determine project eligibility, review project documentation and certify to compliance of Section 203(b) of the National Housing Act and 24 CFR 203 of HUD’s regulations. Of concern was a provision that would limit concentration of FHA-encumbered units in a project to 30 percent.
The Developers Council r
r
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Members of a subcommittee chaired by Andy Herr spoke at the Virginia Soil and Water Conservation Board meetings about the difficulty and added expense on new development in proposed DCR Stormwater Regulations. Eric Capps, VSMP construction permitting manager with Virginia’s DCR Division of Soil and Water Conservation, addressed builder and developer responsibilities to residential, commercial, industrial or institutional land development and conversion activities that involve landclearing or soil movement. An NAHB environmental policy analyst spoke on the President’s Executive Order on federal oversight of bay protection and restoration. He also discussed the Effluent Limitation Guidelines targeting construction activities to be published in December 2009, potentially complicating the use of LID for stormwater management, as the rules must be combined with all existing and new stormwater requirements. He also discussed the possibility of a baywide total maximum daily load to be proposed next year.
A special thank you and congratulations to the TBA Legislative Committee:
Bill Halprin, Chuck Miller, Ed Sadler, Jeff Ainslie, Jeff Wermers, John Napolitano, John Ainslie, John Olivieri, Michael Newsome, Pete Kotarides and Sam Cohen. DECEMBER 2009
7
2009 Year in review
PAC update
PAC has a winning year
Bill Bolling stopped by TBA to speak with the TBA President Pete A. Kotarides and other TBA members about what he intends to do for the home building industry if elected lieutenant governor.
Gubernatorial candidate Bob McDonnell speaks at the TBA Board of Directors meeting in September.
I
Jody Wagner (D) touted growing jobs and growing the economy to PAC Chairman Vince Napolitano while campaigning for lieutenant governor. Incumbent Bill Bolling defeated Wagner.
n a break with tradition, Tidewater Builders Association’s Political Action Committee offered an endorsement in the statewide governor’s race this year, with the nod going to Republican candidate Bob McDonnell, who handily won the election. McDonnell has worked with the industry during his years as a delegate from Virginia Beach in the General Assembly and more recently as Attorney General. The PAC decided he was the best candidate to create jobs, grow the economy and work on our region’s transportation challenges. In September, the PAC braved the wind and rain to host the Fall Golf Outing at Virginia Beach National Golf Course in September to raise funds for PAC activities and candidate support. TBA’s PAC was busy interviewing candidates for all of the seats open in the General Assembly and offering endorsements the PAC felt would best further the interests of the home building industry. These endorsements were sent to TBA members on the eve of Election Day.
With the exception of one district, the TBA PAC endorsed all winning candidates.
Congratulations to: 21st District, Ron Villanueva (R); 64th District, William K. Barlow (D); 80th District, Matthew James (D); 82nd District, Harry R. “Bob” Purkey (R); 83rd District, Chris P. Stolle (R); 85th District, Robert “Bob” Tata (R); 87th District, Paula J. Miller (D); 89th District, Kenneth Cooper Alexander (D); 90th District, Algie T. Howell Jr. (D); 100th District, Lynwood W. Lewis Jr. (D). The following Delegates faced no opposition and were re-elected: 75th District, Roslyn C. Tyler (D), 76th District; S. Chris Jones (R); 77th District, Lionell Spruill Sr. (D); 78th District; John A. Cosgrove Jr. (R); 79th District, Johnny S. Joannou (D); 81st District, Barry D. Knight (R); 84th District, Sal R. Iaquinto (R). If you think your vote doesn’t count, consider that the race for the 21st District between R. W. “Bobby” Mathieson and Ron A. Villanueva was decided by only 13 votes. 8
DECEMBER 2009
2009 Year in review
TBA Scholarships
Foundation keeps on giving The fifth annual Scholarship Awards Breakfast was held in TBA’s boardroom with more than a full house in attendance as scholarships totaling $85,000 were awarded: r 10 area high school seniors who demonstrated a financial need, academic achievement and community involvement each received a $7,500 academic scholarship. r Six scholarships (two of each) of $1,500, $1,000 and $500 were awarded to area high school drafting and design students in TBA’s annual Young Designers’ Scholarship competition. r $4,000 total was awarded to two local high schools with the highest and second-highest number of entries in the Young Designers’ competition. As usual, recipients come from varied circumstances, some of whom will be the first in their families to attend college, some of whom are dealing with the loss of a parent and some of whom are overcoming a difficult environment to move ahead with their lives. Since 1965, the TBA Scholarship Foundation has provided $1.47 million in financial assistance to 395 students. TBA
Scholarship recipient Nathan Ayersman from the Eastern Shore’s Northampton High School, left, receives his Frederick J. Napolitano Sr. Scholarship at the awards breakfast from Napolitano, who was among the original founders of the scholarship foundation.
continues to provide scholarship funding during the 20092010 academic year to 30 other past recipients.
Scholarship Foundation Contribution Sherman Reece, a longtime TBA supporter and founder of Superior Equipment Sales, along with his wife, Nancy, donated a waterfront lot in Jonathan’s Cove in Virginia Beach to potentially serve as the site of a future Scholarship House.
DECEMBER 2009
9
2009
Year Yearin inreview review
Councils continue to expand options to members The Green Building Council
Tom Dye of Ferguson Enterprises speaks about the company’s new showroom during a Remodelers Council meeting as Chairman Chris Ettel and Vice Chair Don Landle look on.
Remodelers Council Chaired by Chris Ettel, the Remodelers Council activities included the following in 2009: r Monthly meetings at member business showrooms. Thank you to the following hosts in 2009: Ed Tyng Insurance & Financial Services, Coastal Lighting & Supply, Professional Supply, Ferguson Enterprises Inc., Ervin Architectural Products, WAVY TV/Fox 43, REICO and Inner Space Systems. r Members enriched their business acumen through educational programs, such as Ed Tyng’s “Business Killers” series and “Avoiding the six mistakes that can destroy your business and your future;” and WAVY TV 10’s Jean McCullough’s “Marketing Tools.” r With impending changes to EPA regulations regarding Lead Paint Removal, TBA held lead paint certification classes in October. The one-day class was limited to 16 participants and provided hands-on training by certified instructors and concluded with a final exam. TBA will host classes for remodelers again in February 2010. r
10
As the 2009 Remodelers Council Executive Committee turns over the duties to the 2010 Committee, a big thank you goes to Chris Ettel, Don Landle, Jean McCullough and Frank Sgromolo for their time and enthusiasm so willingly given throughout the past year. DECEMBER 2009
Chaired by Allen Loree of Allen Loree Homes LLC, the Green Building Council is in its second year and has already gained local recognition. r Tidewater Builders Association received honorable mention as Green Building Pioneer by the city of Norfolk’s Keep Norfolk Beautiful organization for its efforts to introduce green concepts to the community by constructing a green demonstration home at TBA’s 2009 Mid-Atlantic Home & Flower Show. r Each month speakers educate members about products, materials and building methods for making homes green. r To support the council, a Web page was designed as a resource for members and consumers and can be accessed from the councils section on TBA’s Web site. The Green Building Council plans to participate again in the 2010 Home & Flower Show. r Also on the horizon are plans to bring the NAHB Green Building Professional Certification courses to Hampton Roads. Tidewater Multifamily Housing Council Chaired for the second year by Debbie Gordon, TMHC represented a network of owners, managers and suppliers who are looking to grow and advance the multifamily industry. The 2009 educational programs included: r TMHC-sponsored Registered in Apartment Management school began in March and ran through May with 42 enrollees. RAM students were
The TMHC Olympics returned for a fifth year for its spirited yet offbeat version of the Roman games. Even gladiators would be challenged when trying to stack an entire team without stepping off the mat.
Councils’ update
r
r
Representatives with The Hampton Roads Apartment Book speak with a representative from The Lawson Cos. about listing its properties in the publication at the TMHC Reverse Trade Show.
among the 315 attendents at the annual “Chip” Dicks Virginia Real Estate Landlord Tenant Act seminar. r The council also hosted the 4th annual Olympic Games in conjunction with TBA’s Festival in the Park. Ten company teams entered this year to compete in the games, which were coordinated by the council’s associate members. r Associate member HDSupply held three EPA testing exams
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r
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in addition to also hosting four classes this year: Maintenance for Managers; Heating: Gas & Electric; Locks & Rekeying; and AC Basics. In the spring, the TMHC associates held a Reverse Trade Show, which was deemed a great success. As a result, the council decided that there would be two Reverse Trade Shows in 2010. The community Awards of Excellence, Merit Awards and RAM graduation were feted at TMHC’s biggest event of the year. The event garnered entries from 94 communities and more than 600 attendees showed up to enjoy the Associates Showcase and dinner. The September 2009 Management, Maintenance & Marketing Event was attended by 282 multifamily members. Dr. Adolph Brown headlined the event for a second year. In addition to Brown, Heather Lettow spoke on “Marketing to the Military” and Geoff Moore of the Ridge Tool Co. held an “Introduction to Drain Line Video Inspection Cameras.” Mally Dryden-Mason held fair housing lectures in January and October that brought more than 100 multifamily personnel to review the law. The annual TMHC “Holiday Cruise” on the Spirit of Norfolk was scheduled for Thursday, Dec. 10.
Call Miss Utility at before you dig. Allow required time for marking. Respect the marks. Excavate carefully.
This message brought to you by the Virginia State Corporation Commission
DECEMBER 2009
11
2009
Year in review
Insurance services
TBA’s insurance companies moving forward under one name
F
or the insurance services division, one of the most noticeable changes of 2009 was the consolidation of TBA’s insurance companies under one name — Building Industry Insurance Association (BIIA). The move set the stage for achieving a long-range vision of the insurance division — to provide a comprehensive range of insurance products to a broad class of businesses, while preserving the commitment to the needs of the local home building industry. Currently, BIIA provides workers’ compensation and general liability coverage to builders, remodelers and other related businesses across the Commonwealth. Despite the down economy, the company has maintained the same level of client base over the past year by expanding the classes of business that it can write — including those outside the usual realm of residential construction. In addition, an extensive marketing campaign informed insurance agents and association members across the state of the expanded coverage. Next year, BIIA plans to begin writing property insurance and then expand BIIA’s Web site, www.biiaonline.com, was reinto all lines of insurance. The second noticeable change was a newer and more user-friendly BIIA Web site, vamped to make it easier to navigate for users. which was completely revamped. For more information about the products available, contact BIIA at 420-3022 or visit www.biiaonline.com
TBA partners for home warranty coverage
TBA President Pete A. Kotarides became the first to sign on for the new coverage with Bonded Builders Warranty Group, which offers broader coverage at lower rates than what TBA could provide through HW10.
Home warranties offer written policies that provide buyers with a clear standard about what is covered in a way the “implied warranty” required by the state does not do. More and more buyers are aware of these policies and are asking for them. TBA requires its members to offer them on the homes they build to help protect their buyers, their company and the image of the industry. This year, TBA’s home warranty company, known as HW10, ceased writing new starts, but entered a “partners-in-performance” relationship with Bonded Builders Warranty Group to allow expanded coverage to builders at the same affordable rate, as well as extend coverage to apartment buildings, remodeling projects and systems-built homes. The company has been in business for 20 years and is approved to do business in all 50 states and approved to provide 10-year warranty plans required for HUD-financed homes. It has the financial strength and experience to provide the first-class service and the competitive prices offered by HW10. The company serves more than 10,000 builders and more than half a million homeowners in nearly every state. More than 90 percent of HW10 builders have enrolled in the Bonded Builders Warranty Group.
For information about home warranty products, contact Joe Pushak at (800) 749-0381, ext. 3825, or jpushak@bondedbuilders.com 12
DECEMBER 2009
Keep your buyers happy 99% effective dispute resolution Tap into the industry’s most effective dispute resolution process Contact your local representative to enroll: Joe Pushak 800 749-0381 ext. 3825 703 582-7727 cell jpushak@bondedbuilders.com These builders support TBA by using Bonded Builders Warranty Group to protect their homebuyers.
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BY
AT I O N
DO
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www.BondedBuilders.com
EN TE T I D E WA
Protecting the American Dream
Miller Custom Homes Murray Homes Inc. Ocean Bay Homes, Inc. P & A Construction Inc. Platinum Homes, Inc. Preserve Development LLC Princess Anne Builders, Inc. Property Endeavors LLC Real Developments Residential Concepts, Ltd. Richardson Homes, Inc. RML III Corp Sadler Building Corporation Sasser Construction L.C. Southmoor Development, Inc. Summit Construction Corp. TBA - Building Trades Academy Terry Peterson Residential The Ainslie Group The Breeden Co. Inc. The Old Beach Village Co., LLC The Runnymede Corporation The ST Paul’s Place Company LLC Virginia Vintage Builders, Inc. W H Builders, LLC Warner Construction Watab Construction Corp. Wendell Homes, LLC William T. Wingfield, Inc. WPL Ventures, Inc.
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Conciliation, our proven dispute resolution process, has enabled us to resolve over 99% of claims without costly or time-consuming arbitration or litigation. With our outstanding track record for addressing disputes, there’s an excellent chance both you and your home buyer will walk away satisfied that an equitable resolution has been reached.
ABT Custom Homes LLC Affordable Homes, LLC-1 Allen Loree Homes L.L.C. Area Builders of Tidewater, Inc. Associated Contracting Services Inc. Associated Development Management Corp. Beachtowne Realty Corp. Belmeade Associates, LLC Billore, LLC Brighton Park Development, Inc. Carole-Anne Construction Co. Clark Whitehill Enterprises Clark Whitehill Homes LLC Cohen Homes, LLC Corinth Homes, LLC Crestline Homes, LLC DeBord Custom Homes, Inc. Definitive Homes DeFord Companies, Inc. Executive Homes Corp. of VA Gallagher Construction Corp. GBK Builders, Inc. George Newsome Luxury Homes LLC Great Bridge Builders Inc. Grifland Builders Corp. Hearndon Construction Corp. Jesse Franklin Jackson III Kotarides Builders, LLC L & B Quarterpath LLC L and M Contractors, Inc. L.R. Hill Custom Builders, Inc. Lawson Homes MCQ Builders LLC-1 Michael Lee Company
S I LD E R S A
DECEMBER 2009
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13
2009
Year in review
New partnerships breathe new life in BTA
r
Students learn how to remove shingles to access a rotting portion of a roof while training with the Building Trades Academy. The students are funded due to a partnership between The STOP Organization and BTA.
W
ith traditional sources of funding tightening up due to the economic climate, TBA’s Building Trades Academy, BTA, managed to charge ahead by forging new partnerships and seeking new sources of funding to keep students enrolled in the program throughout the year. During a 10- to 12-week pre-appren-
YouthBuild students work on the finishing touches of a storage shed at a home in Portsmouth. The home was the second completed by the YouthBuild program. 14
DECEMBER 2009
ticeship program, the BTA offers students classroom instruction and hands-on training in apartment maintenance, carpentry, plumbing, electrical and HVAC. BTA accomplishments for 2009 include: r Completion of a three-year YouthBuild Program, a partnership between BTA and Portsmouth Redevelopment and Housing Authority in which a $700,000 grant funded a program that allowed students to earn their GED and a salary, as well as building trades training, life skill instruction and hands-on experience. r Completed building two of four new homes with the final YouthBuild class in Portsmouth. One home was sold and the other is in the process of being sold. r Became one of four pilot projects nationwide selected by the Home Builders Institute, the workforce development arm of the National Association of Home Builders, to increase recruitment into registered apprenticeship in facility maintenance. As part of the partner-
r
r
r
r r
ship, BTA will work with TBA’s Tidewater Multifamily Housing Council to create the first registered apprenticeship program for Facility Maintenance and enroll 25 students. The project was funded by a grant awarded by the Office of Apprenticeship, as implemented by the U.S. Department of Labor’s Employment and Training Administration. Partnered with The Southeastern Tidewater Opportunity Project Inc., STOP Organization and received $24,000 in funding to train and graduate six students. The partnership was so successful that STOP is planning to continue the partnership in 2010 and also incorporate weatherization training into the program. Partnered with the city of Portsmouth Work Release Program to train inmates for the building industry. Trainees received classroom instruction, CFC certification and hands-on training. Received $48,000 from the city of Norfolk to train Class 187, which is expected to start February of 2010. Received $20,000 from the city of Suffolk and $32,000 from the city of Chesapeake to train their residents. Received $10,000 from the Beazley Foundation Raised $16,000 at TBA’s Charity Golf Tournament at Sewells Point Golf Course on May 20.
TBA and the BTA greatly appreciate the contributions and support that it has received from our members; however, the program’s funding is an ongoing battle. If you would like to contribute or find out more information about how you can assist with funding efforts, please contact Building Trades Academy at 757-420-2566.
Building Trades Academy One partnership at a time BTA joins forces with local organization to build a better future for graduates !"#$%&%#$'()*
I
n a time when nonprofits are feeling the strain of fewer donations and less funding, a partnership has been formed that has opened a new chapter for some local residents. Thanks to a special partnership between TBA’s Building Trades Academy and The Southeastern Tidewater Opportunity Project Inc., (The STOP Organization), several students were able to enroll in and complete a program tailored to suit the needs of STOP and BTA. STOP was able to secure government stimulus money, which in turn was used to fund the education of six students in the most recent BTA class. “This was a vision that we had STOP CEO Edith Jones, front row, second from left, visits with those graduating from TBA’s when we were awarded some of the Building Trades Academy. Also in the front row are, from left, Jermaine Morris, Brian McKay, stimulus dollars, some of the things Lamont Lindsey and STOP Program Manager Tyrone Sessoms. Back row, left to right, are that we wanted to do was to expand graduates David Washington, Gerald “Jerry” Wathen, Travis Pope and Amos McCleese. some of the services that STOP offered,” said Edith Jones, president and CEO of The STOP Organization. “I ing him (our pastor) about it,” said Morris. “He said, ‘Those sit here today extremely proud. … It worked very well.” are some good people over there. You should go check it out.’ STOP Inc. is a nonprofit agency that was created in 1965 The first time I didn’t check it out. The second time I went in to provide a range of services and activities that impede povthere, he (our pastor) asked, ‘Did you go check it out, yet?’ So erty by promoting self-sufficiency. he made me go check it out.” “This is one way to see that your government is listening Before the program, Morris was working at a warehouse. and that the funds are being used in responsible ways,” said Now, he is doing facility maintenance at Cambridge Manor Tryone Sessoms, a program administrator at STOP. “I’d like Apartments. to acknowledge TBA and BTA for allowing this initial part“I love the program. I’m very grateful that I was able to go nership to go forward. This is a special partnership. We’ve through the training,” said Morris. “Getting the opportunity spawned some training operations that we feel we’re going to and the know-how of these different trades and then being able be able to work in conjunction with our weatherization deto put it into action is amazing to me. Being in this program has partment and implementation programs for future students.” taught me to pursue things and not give up on them.” In addition to funding the training of the recent graduates, As a result, Morris now has the training to move forward Jones and Sessoms believe that the funding will be able to prowith his career. vide training for many more students to come. “I want to get enough experience under my belt that I can “I’m so proud to be a part of this, Jones said of the partnerstart my own renovation business,” he said. “I see a lot coming ship. “I can assure you that we will continue this relationship out of this. All I have to say is thank you — a million times as long as either one of us can survive. thank you.” One lucky student was Jermaine Morris, who discovered If you would like to learn about how you or your business can the program through a flier at his church, which operates out get involved with the Building Trades Academy, call 757-420of a building behind TBA. 2566. “I saw the TBA flier on the bulletin board and I was askDECEMBER 2009
15
2009
Year in review
TBA gets out the “buy now” message
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s the voice of the housing industry to consumers and an advocate for members, TBA’s public relations and production team was busy spreading the word that “Now’s a great time to buy a new home.” Not only was 2009 the start of a changing tide in the economic forecast, but it also marked an increase in opportunity for first-time home buyers. To spread the “buy now” message, TBA increased its online presence and its presence in the media.
In the news TBA developed and placed a monthly column in The Virginian-Pilot’s Home section, as well as several other worthy
16
DECEMBER 2009
home a rama
A CLOSER LOOK AT THE 2009 SHOW
Saturday
discover Chesapeake’s Culpepper Landing STARTS ON PAGE 6
BUYING
+
RENTING
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R E N O VAT I N G
* judgment day
*
THE VIRGINIAN-PILOT | 10.10.09
.
TIME TO PICK THE BEST OF THE BEST.
» FOR LISTINGS AND INFORMATION, GO TO REALESTATE.HAMPTONROADS.COM
The Virginian-Pilot helped to kick-off Homearama 2009 with two special editions of the Home section, as seen above.
items throughout the year, such as a business column by 2009 President Pete A. Kotarides on the housing market and a guest editorial by former TBA and NAHB President Frederick J. Napolitano Sr. TBA members responded to a variety of media questions on topics from proposed storm water regulations to hurricane building codes. Most of the effort, however, was focused on getting out the word that the Hampton Roads real estate market was different from those in Florida, California and Nevada, which were making headlines for their dire housing markets. Along with other community leaders, TBA took part in a Cox Com-
Public Relations munications â&#x20AC;&#x153;confidence campaign,â&#x20AC;? that touted Hampton Roadâ&#x20AC;&#x2122;s strong economy and played on a variety of cable channels. Public relations and publicity surrounding TBAâ&#x20AC;&#x2122;s two major consumer events, the Mid-Atlantic Home & Flower Show and Homearama 2009, helped to further stimulate interest in all things housing. The Virginian-Pilot dedicated two special editions of the Home section to coverage of Homearama 2009. Meanwhile, the Daily Press, Hampton Roads Magazine, WAVY-TV and WVEC-TV also tuned their readers/viewers into what was happening. TBA produced its annual Homearama Plan Book to offer advice and inspiration to new-home buyers. The 2008 Plan Book was also spotlighted as it took home the National Association of Home Builders Executive Officers Councilâ&#x20AC;&#x2122;s Excellence Award for Best Special Events Publication. The book will join other winning publications as part of the Executive Officers Councilâ&#x20AC;&#x2122;s Idea Loan File, which is used to help other associations across the country provide better service to members and their community.
tion about housing data and links to the industryâ&#x20AC;&#x2122;s media coverage. The Tidewater Builder membership magazine received a new look this year under the direction of a new editor. New feature articles and a â&#x20AC;&#x153;Surviving the Timesâ&#x20AC;? series were added to the line-up. The effort to reach members was supplemented by postcards and e-mail blasts. TBA also developed a free Web site, jobsiteonline.org, for people posting or looking for jobs.
Reaching consumers TBA continued to send out quarterly consumer e-newsletters to promote its consumer events as well as news of interest, such as the first-time home buyer
tax credit and green tax incentives. TBA was able to add an additional 5,500 consumers to the e-database thanks to their interaction with the Homearama Web site and touch-screen voting at the show.
Boosting Web appeal
With a new blog and a Facebook presence, TBA has increased its online communications and marketing efforts. The Facebook account was launched in late August to generate unconventional traffic to Homearama. By the end of the show, the site had garnered more than 100 fans. The site also includes timely items of interest, such as the extension of the home buyer tax credit and why itâ&#x20AC;&#x2122;s a great time to buy.
Contact me on how you can save 22% off your monthly bill.
Informing members
Jesse James
BUSINESS AC C OUNT EXECUTIVE A new look and a more interactive Nuts & Bolts brought more industry information to members twice a month.
The bimonthly Nuts and Bolts membership e-newsletter was enhanced with a new design and fresh new informa-
for
Tidewater Builders Association
757.572.5813 j e ss e. j ame s @ spr i nt . c om t "DU OPX MJNJUFE UJNF PGGFS
DECEMBER 2009
17
Grow your business.
FEBRUARY 5-7, 2010 VIRGINIA BEACH CONVENTION CENTER VIRGINIA BEACH, VA Special guests include: s $R ,ORI s 0AT 3IMPSON Antique appraisals 46 REMODELER s $ON %NGELBRETSON s 0EARL &RYAR The Renegade )NSPIRATION Gardener TOPIARIES
The 2010 Mid-Atlantic Home & Flower show promises an exciting lineup of talent, plus lavish display gardens. Meet potential customers by displaying your products or services where your targeted market will be!
MEET OVER 25,000 MOTIVATED HOMEOWNERS FACE-TO-FACE. No other event in Southeastern Virginia offers you such a great opportunity to capture qualified sales leads.
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DECEMBER 2009
CONTACT: Kim Powers at 305-9029 or kpowers@tbaonline.org LeighAnn Sirmans at 305-9016 or lsirmans@tbaonline.org or visit www.tbaonline.org
Definitive Homes takes the gold The Thanksgiving House takes home top honor as the 2009 Homearama People’s Choice Favorite House winner
The Thanksgiving House
!"#$%&%#$'()*
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he Thanksgiving House, built by Definitive Homes, captured the people’s spirit and the gold award for People’s Choice Favorite House at Tidewater Builders Association’s 2009 Homearama at Culpepper Landing in Chesapeake. The Thanksgiving House was the show’s only EarthCraft-certified home and featured three or four bedrooms with three baths in 2,502 square feet. It also won the silver award for Favorite Interior, which was decorated by Linda Federoff of Distinctive Designs by Linda, with furnishings by Amish Originals, Curious Cargo and Lemon Cabana. It also took home the bronze award for Favorite Landscape by Tom Rozier of Dreamscape Designers. The People’s Choice Awards were determined by votes from among the more than 61,000 visitors who toured the 12 newly built and decorated homes from Oct. 3-18. The Elderberry: A Christmas Tradition won the silver award for Favorite House. Built by William “Bill” Brice of WATAB Construction Corp., it also won the bronze award for Favorite Interior by Cathy Tellefsen of Complete Interiors, with furnishings by Esprit Décor Home Furnishings. The Elderberry also won the silver award for Favorite Landscape by Tom Rozier of Dreamscape Designers. Mary-Dolph Simpson of Simpson Builders Inc. took home the bronze award for Favorite House for The Bright Idea House, aka the Chickadee House, which garnered attention for being designed, built and decorated by women. The Walnut Cottage, built by Stephen Alexander Homes, took home the remaining gold awards for Favorite Interior Design and Favorite Landscape. The five bedroom, 4½ bath, 3,444-square-foot home was sponsored by Virginia Living magazine and was the show’s green home. It was decorated by Susan Cox of Goodwin Interiors and furnished by Goodwin Interiors and Esprit Décor Home Furnishings. Robert Nye of Renaissance Outdoor Contracting Inc. did the landscaping and Aegean Pools built the pool.
The Elderberry: A Christmas Tradition
The Bright Idea House DECEMBER 2009
19
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ecent federal legislation and regulatory guidance has provided a boost to builders and real estate
developers. On Oct. 30, 2009, a virtual alphabet soup of regulatory authorities – the FRB, FDIC, NCUA, OCC, OTS and FFIEC – issued a joint regulatory policy statement on Prudent Commercial Real Estate Loan Workouts. On Nov. 6, 2009, President Obama signed into law the Worker, Home Ownership and Business Assistance Act of 2009, which in addition to extending unemployment benefits and extending and expanding the home buyer tax credit, also increased the
20
DECEMBER 2009
availability and usefulness of net operating loss income tax deductions.
How will the loan workouts affect me?
The stated purpose of the regulatory guidance is to promote prudent loan workouts at regulated financial institutions and a balanced and consistent approach by examiners when reviewing such institutions’ workout activities. The policy statement recognizes that workouts often can be in the best interests of borrowers and financial institutions. The policy applies to income-producing commercial real estate on the one hand, and residential acquisition, development and construction loans on the other
hand. The key theme of the policy is that renewed or restructured loans supported by adequate repayment sources will not be subject to adverse classification solely because the value of the collateral is less than the amount of the debt. In the case of financing for builders, this means that (i) key components to achieving a successful workout are demonstrating the ability to generate positive cash flow and sources of repayment from guarantors and (ii) principal curtailments to align loan balances with collateral value may not be needed if other adequate repayment sources exist.
How does the NOL legislation affect me?
The legislation expanding the usefulness of net operating loss deductions should be welcome news to many builders. A deduction for a net operating loss is an exception to the general income tax principle that taxable income is determined on the basis of the current tax period’s items of revenue, gain and loss. These deductions may be carried back to previous years and carried forward to be available for future tax years. The new legislation also expands a stimulus provision that was enacted as part of the American Recovery and Reinvestment Act of 2009 so that operating losses generated in 2008 or 2009 can be carried back for up to five years. In addition, with minor exceptions, the gross revenue limitation was removed so large and small businesses can take advantage of the deductions. Similarly, the new law removes limitations on claiming operating loss deductions if the taxpayer had paid alternative minimum tax in previous years. Because most builders in Hampton Roads conduct business in flow-through entities (partnership, limited liability
company or S corporation), the net operating loss deduction rules allow individual owners to carry back those loss deductions to offset income in previous years and obtain refunds of previously paid income taxes. The amount of losses available to individual business owners will depend on several factors, including available income tax basis in the ownership interest; however, this legislation creates the opportunity to obtain refunds of previously paid income taxes during periods when the builder was very profitable. From a tax planning point of view, it may be advisable to consider whether sales of distressed properties or stale inventory should be accelerated so that losses are recognized in 2009. As is the case with most income tax planning, the devil is in the details and consultation with an experienced tax adviser is advisable. Both individual guarantors and lenders should keep in mind that potential income tax refunds are assets that should be disclosed on personal financial statements. These also are assets that can be used to assist with loan workouts and to provide additional collateral to support a problem loan. C. Grigsby Scifres, a partner in the Virginia Beach office of the law firm of Williams Mullen, is Tidewater Builders Associationâ&#x20AC;&#x2122;s general counsel. He specializes in finance, real estate and creditorâ&#x20AC;&#x2122;s rights matters. He can be reached at gscifres@williamsmullen.com or (757) 473-5370.
A new member benefit Need that postcard printed? How about a flier to hand out at the show? TBA can provide competitive pricing on volumes of less than 5,000 pieces, thanks to its printing services. Compare TBA member pricing before you take it somewhere else. For more information, contact Joyce Hearn at 305-9047 or jhearn@tbaonline.org. DECEMBER 2009
21
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JES sales team takes home awards at convention
Seven members of the JES sales team won top sales success awards at the recent Basement Systems/Foundation Supportworks International Convention in Connecticut. They included Vic Bennett, Barry Kennedy, Joe Houske, Nick Feaster, Dale Harris, George Frates and Todd Simmons. JES is a regional foundation repair company, specializing in commercial, industrial and residential foundation and structural repair, basement waterproofing, crawlspace moisture control, total basement finishing systems and home remodeling services.
TBA’s 2009 President Pete A. Kotarides honored Mac Weaver of Wells Fargo Real Estate Group for his service to TBA on Nov. 16. Weaver has served on the Board of Directors since 1998 and as recruiting vice chair of The Cornerstone Foundation since 2001, as well as being a member for more than 20 years.
VB Homes expands its personnel
VB Homes welcomed David Karvala to the VB Homes’ team as a project manager. Karvala has more than 30 years experience in the residential construction industry and will be focused on managing custom home projects.
Paramount reaches across borders to lend a hand
Paramount Builders donated $100,000 to Orphan Helpers, a Newport-Newsbased Christian organization that aids orphaned, abused and incarcerated children primarily in El Salvador and Honduras. “The moment I saw first-hand the work that Orphan Helpers is doing in Central America, I was reminded of the New Testament admonition to look after the orphans and the widows,” said Ed Augustine, Paramount’s CEO. Paramount expects to send a team of employees to Honduras next year to assist Orphan Helpers. To submit items for Shop Talk, e-mail the items to Sara Steil at ssteil@ tbaonline.org or by fax to 420-5539.
22
DECEMBER 2009
Joe Pushak of Bonded Builders Warranty Group explains the new home warranty program to Dwight Meekins and Bea Cobell with Rose and Womble Realty Co. after a presentation in the TBA board room, shortly after the company’s partnership with TBA was formalized. Pushak is the contact for Virginia builders enrolled in the program.
Newsome keeps head above water at installation ceremony !"#$%&%#$'()*
N
either rain, 75-mph wind gusts nor a historic November nor’easter could keep friends, family and industry professionals away from the Hilton Virginia Beach Oceanfront on Thursday, Nov. 12. Despite the nasty weather outdoors, inside was sunny and bright as Michael Newsome, executive vice president of Clark Whitehill Enterprises, was installed as the Home Builders Association of Virginia’s 2010 president. Newsome succeeded Rand Sompayrac of the Fredericksburg Area Builders Association as president. Newsome, who has served with TBA for almost 25 years, has been a member of its board of directors since 1988, as well as serving as TBA president in 1995. He is also chairman of the TBA Scholarship Foundation, and has chaired a variety of committees. Introduced by his father, former TBA President and HBAV Life Director Howard Weisberg, 89, Newsome promised to not only build for a more successful future, but to increase member benefits and work hard to steer the home building industry into more successful waters. Newsome’s term as president will mark HBAV’s switch from a calendar year to a fiscal year, thus he will lead the association through June of 2011.
Q: What are the biggest issues facing the home building industry this year? Job growth is issue No. 1! As unemployment figures reverse, consumer confidence will return. Only then will businesses begin rehiring, which will bolster home buying confidence. Q: How does Hampton Roads fit into that picture? Our local economy has proven, once again, to be more resilient to national and regional trends and has been buoyed by the military presence.
TBA’s Michael Newsome, left, takes the helm of HBAV during a historic nor’easter, above, and vows to navigate today’s ever-changing seas, while building for tomorrow.
Q: What will be your major goals this year as HBAV’s president? Our federation of associations provides our members with a collection of services and benefits of which most are unaware. My goal is to boost that awareness while continuing to enhance member benefits. We are taking many of our member events and meetings out of Richmond and scheduling them in various cities where we will have a better opportunity to expose our membership to the programs available to help further their businesses. Q: If you could sit down and have a heart-to-heart with one influential figure about the state of the home building industry, who would it be and why? What would you say? It is my intention to sit down one-on-one with as many local, state and nationally elected leaders as are willing and convey to them that we share a responsibil-
ity to house our citizens in the best and most affordable housing that will enable them to enhance our society.
Q: What would you like your legacy as HBAV president to be? Why? Any thoughts of “legacy” are best left to others concerned with a historical perspective. My sight is focused on the future.
Richard Oliveri, left, and Past TBA President Howard Weisberg visit before the installation of Weisberg’s son, Michael Newsome, as HBAV president. DECEMBER 2009
23
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Spotlight on Jeff Huentelman, PE !"#3/'4(&#5)(4*#67&8(& 9%8:#;*%88)8.#$<*7')<8/
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Since he joined Land Planning Soand Planning Solutions is lutions in 2004, Huentelmanâ&#x20AC;&#x2122;s projects known for its innovative dehave included Monarch Bank, sign and attractive Bridgeway Commerce Park, graphics but if you Highgrove, Bryans Cove and look a little closer you will Stockbridge at Tanglewood, find an engineering departamong others. ment that has highly sought Huentelman organized after knowledge and experithe rezoning and developed a ence. master stormwater plan for the Many people know Jeff =7(8'(*>%8 400-plus acres at Stockbridge Huentelman for his quiet at Tanglewood. He was responmanner and quick progression sible for the rezoning, site and subdiin projects, as well as his ability to vision plans, stormwater facility manthink outside the box. agement design and the offsite road Huentelman received his bachelor and drainage improvements at the of science in civil engineering with a six-acre, 13,000-square-foot Hanbury specialization in construction from Road Monarch Bank site. His versatilthe University of Cincinnati in 1999. ity and ingenuity allow for success on It was during that summer that he and a broad range of project types. his wife made the move from Ohio The combination of professional to Hampton Roads and he started his engineer, MBA, experience as a site professional career with Tidewater super on multi-million dollar projects Skanska Corp., TSC. and high profile residential commuDuring his time at TSC, Jeff served nities in Hampton Roads creates a as lead engineer and assistant superinhighly competitive knowledge base tendent on multiple projects including that puts Huentelman at the top of his the Suffolk Bypass connecting Route league. 58 to Route 13 and Norfolk Naval He loves the challenge of solving Base replacement of Piers 2 and 21. a difficult problem not just so that it In addition to working full time, works, but also so his clients are satisHuentelman attended Regent Unified and the finished product is wellversityâ&#x20AC;&#x2122;s School of Business to obtain suited for its surrounding community. a master in business administration, East Beach has been one of his fawhich he received in May of 2002. vorite projects thus far. The challenge In March 2002, Jeff joined Woolof developing a style different from pert where his work included design most residential communities in the for residential development as well area, making the infrastructure work as commercial redevelopment. From as well as satisfying the City of Northe redevelopment of major shopping folk, developers and future homeowndistricts in Hampton and Portsmouth ers proved to be fruitful. to the development of new neighHe looks forward to the challenge borhood communities such as River of each new project, hoping to create Pointe, East Beach and Grayson Pond, attractive spaces that foster interaction Jeff â&#x20AC;&#x2122;s role as project manager gave him and community growth. opportunities to gain great experience and an outlet to strengthen his skills. 24
DECEMBER 2009
Congress delivers an early holiday gift
New legislation extends, expands home buyer tax credit !"#$%&%#$'()*
Lobbying efforts by industry advocates and members paid off as President Barack Obama signed the “Worker, Homeownership and Business Assistance Act of 2009” into law on Nov. 6. Hampton Roads’ representatives who voted in favor of the extension include Sens. Mark Warner and Jim Webb and Reps. Robert Scott, Glenn Nye and Randy Forbes. Not only will the new law extend the home buyer tax credit, but it will also make more home buyers eligible to use the credit, which means more movement in the housing market as homeowners look at upgrading. The first-time home buyer tax credit was originally scheduled to expire on Dec. 1, 2009. The new legislation has extended it so homeowners must close on the purchase by midnight June 30, 2010 and must purchase or be locked into a contract before midnight on April 30, 2010. While the provisions for first-time buyers remain the same — they are eligible to claim up to $8,000 for single or married taxpayers filing jointly — they are now allotted more time to find and purchase a home. Aside from the deadline extension, the major change is that now those who currently own a home are also eligible for the credit. The new provisions include: r Taxpayers who have lived in their home for five consecutive years of the eight years before closing on a new home may qualify for a reduced credit of $6,500. r Credit is reduced for those with incomes up to $125,000 or $225,000 for taxpayers filing jointly.
Below is a synopsis of the $6,500 tax credit for repeat buyers. For more information, visit www.federalhousingtaxcredit.com. Q: Who is eligible to claim the $6,500 tax credit? Qualified move-up or repeat home buyers purchasing any home are eligible. Q: What is the definition of a qualified move-up or repeat home buyer? A homeowner who has owned and resided in a home for at least five consecutive years of the eight years before the purchase date. For married taxpayers, the law tests the homeownership history of both partners. Q: How is the amount of the tax credit determined? The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500. Purchases of homes priced above $800,000 are not eligible. Q: If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit? Possibly. It depends on your income. Partial credits of less than $6,500 are available for some taxpayers whose monthly adjusted gross income exceeds the phaseout limits.
Q: How do I claim the tax credit? Home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on line 67 of the 1040 income tax form for 2009 returns (line 69 of the 1040 income tax form for 2008 returns). No other applications are required. Q: What types of homes will qualify for the tax credit? Any home that will be used as a principal residence will qualify for the credit, provided the home is purchased for a price less than or equal to $800,000. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes and houseboats. Q: Is there a way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 or 2010 tax return? Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. This money can then be applied to the down payment. DECEMBER 2009
25
Prepare for new lead paint rules Remodelers and builders who do renovation or remodeling projects in homes built before 1978 must soon comply with new lead paint safety requirements set by the U.S. Environmental Protection Agency. Any company doing work in these homes must be certified, follow specific work practices and keep detailed records. At least one employee in these companies must be trained in these new requirements by April 2010. The new rule, the Lead: Renovation, Repair and Painting Rule, will go into effect in April 2010.
Who is affected?
The rule applies to any contractor who “disturbs” at least six square feet of painted surfaces on the inside of a home or 20 square feet on the outside. Contractors who install windows, insulation, home entertainment equipment or similar work in the target housing must become certified to do the work.
What does the training consist of ?
The EPA estimates that 200,000 people will need to be certified by April 22 through a required six hours of class instruction and at least two hours of handson training.
Where can you get certified?
TBA will be offering a lead paint removal certification class on Feb. 9, 10 and 11, 2010. For more information, please contact Maggie Mickard at 305-9053 or mrickard@tbaonline.org. Source: Nation’s Building News
TBA will be hosting another lead paint certification class, as seen here in the Building Trades Academy beginning next year.
Reconnect, reinvent and refocus at IBS! !"#$%&%#$'()*
Deals, deals, deals and more await those attending the International Builders Show in Las Vegas from Jan. 19-22, 2010. With more than 175 education sessions during the show, and a host of preshow courses taught by industry experts, this is an educational retreat you can’t afford to miss. To top that off, this is the last time the IBS will be in Las Vegas until 2013. Here are the top 5 reasons why now is a great time to attend IBS: r Low, low, low prices: Hotel rates as low as $59 a night at some hotels and discount airfare is available through NAHB and Super Savers r Get credit while having fun: Get the most bang for your buck with continuing education credits and certification opportunities available throughout the show. One such is obtaining your lead removal certification, which is required for remodelers by April 2010! r No money required: No registration fee for floor exhibits - all day, any day r A la carte tickets: Attendees can purchase one- or two-day education passes, which include admittance to the exhibit floor all four days. r Free Friday: Friday educational seminars are open to ALL registrants. And, spouses may register at no additional fee. For more information, visit www.BuildersShow.com
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DECEMBER 2009
Homearama heads west About the builders: ABT Custom Homes: Chip Iuliano, president of ABT Custom Homes, has built in more Homearamas than any other builder, garnering numerous awards, including best in show, best craftsmanship, most creative design, best interior floor design, best special features and more. Hohmann Builders: Founded by Russ Hohmann, Hohmann Builders specializes in custom homes and has been in the home building industry for more than 25 years. In the 2001 Homearama, he built the Southern Living floor plan of the month for the show. Birdsong Builders Inc.: Based in Carrollton, President Billy Birdsong manages every phase in the construction of his custom-built homes to guarantee his clients receive a quality product. Branch Lawson, president of East West Partners, spoke to builders about the Spring 2010 Homearama at Founders Pointe in the community clubhouse. !"#$%&%#$'()*
T
BA is kicking off 2010 with a bang, as it embarks on the first spring Homearama, thanks to the commitment of eight first-class custom home builders, some of whom are Southern Living custom builders. Several other builders also are considering participating. Scheduled for May 8-23, the event will take place in Isle of Wight County’s Founders Pointe community, developed by East West Partners, which has also developed Isle of Wight’s Eagle Harbor and Suffolk’s The Riverfront, among others. Founders Pointe is already home to nearly 150 families and offers a slice of nature and tranquility as it borders the Batten Bay and the James River tributaries and creeks. It’s also centrally located to all of Hampton Roads, being just minutes from downtown Smithfield, a 10-minute drive to the Peninsula and 25 minutes from downtown Norfolk. Homearama lot prices begin at $112,500, with lot sizes range from 12,263 to 50,511 square feet. The showcase homes are expected to sell from the $490,000s to $750,000. Homes in the community currently range from the $470,000s to more than $900,000. Founders Pointe residents have access to an observation pier and a residents’ club, which features a 4,000-square-foot swimming pool with a 112foot water slide. Several lots are still available lots for interested builders. If you are interested, please contact Teresa Howell at 305-2062 or thowell@tbaonline.org. For marketing opportunities, please contact Leighann Sirmans at 3059016, lsirmans@tbaonline.org or Kim Powers at 305-9029, kpowers@tbaonline.org. For more information on Founders Pointe, visit www.founderspointe.com.
Newhall Construction: Mike Newhall embarked on a construction career more than 20 years ago. Today, Newhall Construction builds quality homes for the discerning home buyer in Eagle Harbor and other fine-home communities. Norman Miller Custom Builders: For more than 15 years, Norman Miller Custom Builders Inc. has guaranteed uniquely crafted homes while maintaining a reputation for creative and custom detailing. Sadler Building Corp.: This is the fourth Homearama entry for TBA past president Ed Sadler, a Southern Living Custom Home Program builder who provides uncompromising quality, elegance, refined comfort and gracious living. Sasser Construction LC: Another veteran of 2001 Homearama, Eric Sasser is returning to showcase his talents. Sasser Construction has been building superior homes since 1986 and has been chosen as a Southern Living Custom Home Program builder. Bill Ore Inc.: Homearama veteran builder Bill Brice of WATAB Construction Corp. and Les Ore of Home Theaters by DAS have partnered for their second Homearama. The team recently took home several awards for their Homearama 2009 entry. DECEMBER 2009
27
Welcome new members
TBA Calendar
December
ASSOCIATES AMC Specialty Inc. Grounds maintenance; landscaping/ sodding Tom Cunningham ........... (757) 485-0778 Bayview Exteriors Decks; drywall/plastering; guttering; roofing; siding Sheila Rendon ................ (757) 748-0599 www.bayviewexteriors.com Crawl Space Systems Moisture/mold/mildew control; other services; crawl space encapsulation Rick Payne ..................... (757) 679-4800 www.crawlspacesystems.net Fletcher Masonry LLC Masonry; brick suppliers Fletcher Fregin ................ (757) 513-4258 Long Floor LLP Flooring Nicole Hudson ................ (757) 420-8755 www.horizonforest.com
Purkey Jr., Harry R. Attorneys Harry R. Purkey .............. (757) 428-6443 Saunders & Ojeda, PC Attorneys Whitney G. Saunders ...... (757) 942-7070 www.suffolkvalaw.com The Floor Trader Carpeting; Flooring Ben Reynolds ................. (757) 420-6600 www.floortraderofva.com
BUILDERS Ramtela Remodeling & Renovation Additions; baths; cabinets; kitchens; remodeling/restoration/building repair Michael Matela ............... (757) 961-4360 www.ramtela.com Titan Contractors Inc. Commercial builders Jim Gudac ...................... (757) 538-0100
Here to stay ASSOCIATES
Pungo Realty Company
American Acoustics Design
Real Estate Information Network
Brandco Supply Corp.
Roper Brothers Lumber Co. Inc
Braswell Water Systems
Saunders Supply Co. Inc.
Cord Building
Savage & McPherson
Custom Window Distributors Inc.
Seacoast Construction Fabrics Inc.
Dominion Siding
Sherman, Spero & Safarino Ltd.
Eck Supply Co.
Superior Marble
Greenwich Supply Corp.
Y’all Haul
Greenwood Garden Service dba RW Grading International Flooring Jaffe, Caplan & Fleder James Hardie Siding Products Lansing Building Products Mr. Rogers Windows Parker Lancaster & Orleans Perfection Pools Inc. Pioneer Title Pressure’s On Inc. Professional Supply 28
DECEMBER 2009
BUILDERS Casa Builders
8 Remodelers Council holiday social Cornerstone Reception, TBA boardroom 10 TMHC Holiday Cruise, Spirit of Norfolk 16 TMHC Executive Committee meeting canceled 23Jan 4 TBA closed for the holidays. BIIA will be open.
January
7 Green Building Council 13 Remodelers Council 19 TMHC Executive Committee 1922 NAHB International Builders Show, Las Vegas 21 Developers Council
February 57 MidAtlantic Home & Flower Show, Virginia Beach Convention Center 7 Green Building Council meeting 8 TBA Executive Committee meeting TBA Board of Directors meeting 10 New member orientation Remodelers Council 17 TMHC Executive Committee 18 Quarterly Builder Breakfast Developers Council
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BIIA ...................................................... IBC
Bonded Builders .................................... 13 Boxx Systems ........................................ 12 Dominion Virginia Power ....................... 16 Ferguson Enterprises .......................... IFC
HHHunt Homes Hampton Roads LLC
International Jet Charter ....................... 20
Johnson Corp., SL
Land Planning Solutions ........................ 24
Marlyn Development
Miss Utility ............................................. 11
OV Lifestyles LLC
ProSouce ............................................... 21
Paramount Builders Inc.
RSVP ..................................................... 21
Real Developments Construction LLC
Spivey Rentals ....................................... 22
Wendell Development LLC Williams Group Real Estate Inc.
Sprint ..................................................... 17 Superior Equipment .............................. BC