BUILDERS FRAMEWORK
FREDERICKSBURG AREA BUILDERS ASSOCIATION
Volume 2: Issue 7 │ July 2018
FREDERICKSBURG - STAFFORD - SPOTSYLVANIA - CAROLINE - KING GEORGE - ORANGE
Survey Finds Widespread Lumber Shortages
FABA Members,
Take a moment this summer to review to review your company and contact information on our FABA website to make sure everything is up to date. If you need assistance logging in or making changes, please contact admin@fabava.com
Shortages of framing lumber are now more widespread than at any time since NAHB began tracking the issue in 1994, according to results from the May 2018 survey for the NAHB/Wells Fargo Housing Market Index. More than 30% of single-family builders responding to the survey’s special questions in May reported this shortage, outdistancing the other 22 listed building products and materials by a wide margin. In second place were trusses, with a shortage reported by 24% of builders, followed by lightweight steel and OSB at 20% each and plywood at 19%. This is a significant worsening from last year, when the same survey found 21% experiencing a shortage of framing lumber. In early June, 171 members of Congress sent a joint letter to the Trump administration calling on the U.S. to resume talks with Canada to negotiate a new softwood lumber trade agreement. The congressional letter to Commerce Secretary Wilbur Ross and U.S. Trade Representative Robert Lighthizer does not take sides in this trade dispute. It simply highlights the urgent need for the U.S. and Canada to renew negotiations in an effort to come to an equitable solution that will satisfy all sides, including domestic industries and consumers.
Farm Bill Going To Conference
The Trump administration in June issued a final rule on association health plans (AHPs) that will help small businesses, including home building firms and local HBAs, rein in health care costs and provide better health coverage for workers. NAHB has been a proponent of AHPs, which enable small businesses to pool together to purchase health insur- ance plans for employees. The rule will give small busi- nesses access to better health care plans.
AHP Rule Will Help Small Businesses
Regulation imposed by all levels of government accounts for an average of more than 32% of multifamily develop- ment costs, according to new research by NAHB and the National Multifamily Housing Council (NMHC). In fact, in a quarter of cases, that number can reach as high as 42.6%. Apartment and condo development can be subject to a significant array of regulatory costs, including a broad range of fees, standards and other requirements imposed at different stages of the development and construction process. The joint research effort surveyed NAHB and NMHC members to quantify the regulatory burden and its costs. It is the first research done to analyze the impact of such regulation on multifamily housing.
Regulation Is 32% of Multifamily Development Cost
NAHB Files Amicus Brief in 'Takings' Case
Register Now for Systems-Built Summit
The U.S. Senate and House of Representatives have each passed their own versions of the farm bill. The two cham- bers will soon be going to conference to hammer out a final bill. NAHB is generally more sup- portive of the House-passed legislation, the Agriculture and Nutrition Act of 2018 (HR 2), in part because it includes forest management reforms needed to resolve lumber supply problems. The House measure would also repeal the Obama administration’s waters of the U.S. (WOTUS) rule. Leaders of the systems-built housing industry are gathering in Knoxville, Tenn., this fall for the Building Systems Housing Summit. The only national conference for the entire offsite construction community, the summit caters to builders, manufacturers and suppliers of modular, panelized, concrete, log and timber frame homes. The conference takes place Sept. 30-Oct. 2, at the Hilton Knoxville.
NAHB recently submitted an amicus brief in a Supreme Court case that may have a profound effect on land use law. This fall, the court will hear arguments in Knick v. Township of Scott, a case that has major implications for Fifth Amendment “takings” claims. The takings clause provides a guarantee that property owners will be paid “just compensation” when the government takes property for a public use. The case will address “Williamson County," a 1985 Supreme Court decision that requires property owners to jump through a number of legal hoops before bringing a takings claim in federal court.
NAHB Calls for Tax Safe Harbor
Entries are now being accepted for great NAHB awards in three broad categories. The NAHB Associate Members Committee has opened the application and nomination process for four prestigious awards given annually to both Associate and Builder members for their service to the industry. The deadline for award applications and nominations is Sept. 30. The NAHB Sustainability and Green Building Subcommittee has opened the application and nomination process for the 2018 NAHB Best in Green (BIG) Awards. The deadline is Aug. 24. The NAHB Building Systems Councils has opened the application and nomination process for the 2019 BSC Jerry Rouleau Awards for Excellence in Marketing and Home Design and the BSC Specialty Awards. The awards recognize the best in modular, panelized, concrete, log, and timber frame home design and marketing. The deadline for applications and nominations is Aug. 25.
NAHB has called on the Internal Revenue Service (IRS) to provide a safe harbor for anxious home builders and other small businesses that pay estimated quarterly taxes but don’t yet know how recent tax reform legislation will be implemented – and thus may underpay. In a letter sent June 7 to Treasury Secretary Steve Mnuchin, NAHB acknowledged that the wide scope of the new tax law means the IRS will need more time to produce regulatory guidance. The letter said business owners need reassurance that good-faith estimates won’t result in fines. Specifically, NAHB wants the IRS to provide safe harbors when: Underpayment is a direct or indirect result of changes to the law; The taxpayer has made a good-faith effort to calculate and pay their estimated tax; There was insufficient IRS guidance to calculate tax liability.
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NAHB Student Chapter Partners with Local Firm to Win 'Race to Zero'
Join FABA today! We're SO much more than homes!
Entries Being Accepted for NAHB Awards
The NAHB Student Chapter program from Pennsylvania State University took first place in the Suburban Single Family category of the 2018 Race to Zero Competition. Run by the Department of Energy, this competition challenges students to design cost-effective, zero-energy ready homes. NAHB is a program sponsor. The winning Penn State team partnered with a local production home builder, NAHB member S&A Homes in State College, on the single-family design. The two groups met on several occasions as the project came together. S&A Homes shared its best-selling models and a lot of helpful, real-world advice about residential construction. “The building firm had specific needs,” said Sarah Klinetob Lowe, a housing systems specialist and faculty member at Penn State. “They emphasized that building materials needed to be very readily available, and this made students think carefully about their material choice.” She added that students were encouraged to design the house with simplicity in mind, and that “communication with subcontractors would make or break a systems choice.” In today’s world of rapidly increasing building material costs, perhaps the most important lesson the students learned was sticking to a budget.
Employers Must Use New I-9 Form
DID YOU KNOW? You can send us your events, "happenings" or networking opportunities, and FABA will promote them on the Member Happenings page on the FABA website? Any event that is hosted by or promotes our Member Companies can be included. Events should be one time occurances, more details can be found at www.fabava.com/memberhappenings. Please provide all details and ticket/rsvp links and we will help you promote it. Send Member Happenings to: events@fabava.com
Fireside Hearth & Home Integrity Homes of Metro Washington Keller Williams Realty – The Horizon Team Metro Nova Creative Southern Wind Landscaping LLC TAMKO Building Products Inc. Total Home Hardware Versatex Building Products LLC
Welcome...
NEW Associate Members
June 2018 Membership Report
July's HARD HAT Networking is Thursday, July 26 from 5-7 pm @ Splitsville. If every FABA member recruits one new member this year, we can double our voice and influence in the community and our industry.
All About The Garage Bin There Dump That BMC Brady Insurance Agency Engineering Groupe, Inc. KT Enterprises, Inc. Pest Now Professional Inspection Services, Inc. Regarday Reico Kitchen & Bath ROC Electrical LLC Scott Insurance & Financial Services Spaces Design Studio LLC Universal Title Virginia Partners Bank Wetland Studies and Solutions Inc.
Member Happenings
Renewed Builders
June 2018 Membership Report (continued)
Aaronal Homes Inc. Corelot Piccard Homes Professional Building Services Inc. Woodview Properties
Renewed Associates
Wednesday, July 11 Associates / Sales & Marketing Committee Meeting 9 - 10 am (FABA Boardroom) Membership Committee Meeting 10 - 11 am (FABA Boardroom) Thursday, July 19 First Annual FABA vs. FAAR Softball Game Pre-Game/Tailgate: 5 - 6 pm Game: 6 - 8 pm (Pratt Park) CLICK HERE FOR MORE INFORMATION Thursday, July 26 Hard Hat Networking Happy Hour 5 pm - 7 pm Splitsville Friday, August 3 FABA Crab Feast & BBQ 5 pm - 9 pm Fredericksburg Rod & Gun Club All you can eat CRABS & BBQ, Beer & Wine Inlcuded, LIVE AUCTION, Cornhole, and Live Entertainment. Don't miss out on the fun! TICKETS ARE ON SALE TODAY! CLICK HERE TO BUY
H A R D H A T N E T W O R K I N G !
Thursday, July 26, 2018 5 - 7 pm at Splitsville 51 Towne Centre Blvd, Fredericksburg, VA 22407 (behind the Spotsylvania Town Center)
FABA Calendar of Events
Champion Auctioneers: Nicholls Auction
featuring
HOME BUILDERS ASSOCIATION OF VIRGINIA INSTALLS 2019 OFFICERS
The Home Builders Association of Virginia (HBAV) installed its 2019 officers in a ceremony June 23, 2018 at The LaPlaya Beach and Golf Resort in Naples, Florida. Robert “Rob” J. Frogale of Annandale Millworks succeeds Shawn Callahan of the Roanoke Regional Home Builders Association, Inc., as president. The Home Builders Association of Virginia is a statewide trade association that represents the interest of the home building industry before state and federal lawmakers and regulators. The organization has more than 3,400-member firms. HBAV’s 2019 senior officers are: PRESIDENT – Robert J. Frogale has been elected to serve as HBAV President. He serves as President and co-owner of Annandale Millwork and Allied Systems Corporation in Winchester, VA. Frogale has been an active member of FABA and the Top of Virginia Builders Association, which is based in Winchester, VA, where he served as president in 2016; he has served as Associate Vice President and served as Membership Chairman from 2012-2015. He has served as a 2016 HBAV Regional Vice President. Frogale served as the 2018 Chairman of the Membership FIRST VICE PRESIDENT/TREASURER - Daniel T. Sandoval has been elected to serve as HBAV First Vice President/Treasurer. As President and Owner of Republic Home Builders based in Fredericksburg Virginia, Sandoval currently serves on the Board of Directors of the Fredericksburg Area Builders Association (FABA). He was FABA PAC Chairman. He served as President of FABA in 2015 and was named the Fredericksburg Area Builder of the Year in 2013. Sandoval has been a dedicated member of the association and has served on various committees at FABA for 16 years, including chairman of the Membership, Parade of Homes, and Legislative committees. Sandoval served the past three years as HBAV Regional Vice President, Second Vice President and has been a member of the HBAV Legislative Committee for four years. His enduring commitment to the association earned him the 2016 FABA President’s Award. SECOND VICE PRESIDENT – David O. Owen has been elected to serve as HBAV Second Vice President. As President of Boone Homes in Richmond. David is a past President for the Home Building Association of Richmond (HBAR) and he Currently serves as HABR’s PAC Chairman. David was named HBAV’s “Builder of the Year” in 2016. David and he has served as HBAV’s Legislative Chairman for the past four years. ASSOCIATE VICE PRESIDENT/SECRETARY - Skip Eastman has been elected to serve as HBAV Associate Vice President/Secretary. He will serve as Vice Chairman of the Associate Members Committee. He is currently serving on the board of Southside Home Builders and is a member if several other local home building associations. He is a Territory Manager for, Trus Joist a Weyerhaeuser business. ASSOCIATE VICE PRESIDENT – Ralph L. “Tripp” Costen, III has been elected to serve as HBAV Associate Vice President. He is a member and current trustee of the Home Builders Association of Richmond (HBAR). He is also a former two term member of the Executive Committee on the Board of Directors for HBAR. He was a 2017 Mayo recipient. He currently serves as the 3rd generation President of Costen Floors, Inc. Also installed were the seven regional vice presidents: REGION I VICE PRESIDENT – Cat White (New River Valley) of Tyris Homes has been elected to serve as Region I vice president. He will represent the New River Valley Home Builders Association, the Roanoke Regional Home Builders Association, Inc., and the Home Builders Association of Central Virginia. REGION II VICE PRESIDENT – Jill McGlaughlin (Shenandoah Valley) has been elected to serve as Region II vice president. She will represent the Shenandoah Valley Builders Association and the Augusta Home Builders Association. REGION III VICE PRESIDENT – Robin Newhouse (Blue Ridge) of Dominion Energy has been elected Region III vice president. She will represent the Blue Ridge Home Builders Association and the Piedmont Virginia Building Industry Association. (cont.) REGION IV VICE PRESIDENT – Mike Perry (Top of Virginia) of Perry Engineering has been elected Region IV vice president. He will represent the Northern Virginia Building Industry Association and the Top of Virginia Building Association. REGION V VICE PRESIDENT – Mitchell Bode (Richmond) of Premier Insurance Agency, Ltd., has been elected Region V vice president. She will represent the Home Builders Association of Southside Virginia and the Home Building Association of Richmond. REGION VI VICE PRESIDENT – Drew Ransone (Rappahannock) of Chesapeake Tree Services, LLC has been elected Region VI vice president. He will represent the Home Builders Association of Rappahannock and the Fredericksburg Area Builders Association. REGION VII VICE PRESIDENT – Ricky Edgerton (Peninsula) of Edgerton Contracting, Inc. has been elected Region VII vice president. He will represent the Peninsula Housing & Builders Association and the Tidewater Builders Association. AWARDS: BUILDER OF THE YEAR – John C. Napolitano (Tidewater) of Napolitano Homes, of Virginia Beach, VA was selected as the 2018 Home Builders Association of Virginia “Builder of the Year.” This award is bestowed annually to the HBAV builder member who has offered exceptional service and dedication to the state association. ASSOCIATE OF THE YEAR – Jeanie T. Bode (Richmond) of Union First Bank of Henrico, VA was selected as the 2018 Home Builders Association of Virginia “Associate of the Year.” This award is presented annually to an associate member, as an individual or company, which has shown outstanding efforts at the state level of the home builders association. EXECUTIVE OFFICER OF THE YEAR – Maria Moore (Fredericksburg) of the Fredericksburg Area Builders Association was selected as the 2018 Home Builders Association of Virginia “Executive Officer of the Year”. This award is bestowed annually to the Local HBA Executive Officer who has offered exceptional service and dedication to the local and state associations.
2018 FABA Board of Directors
President Gene Brown Atlantic Builders, Ltd. 1st Vice President Marc Simes WJ Vakos 2nd Vice President Stacey Lampman Spaces Design Studio Secretary Sara Fila Legacy Engineering Treasurer Scott Hine Assurance Financial Group Associate Vice President John Reid Embrace Home Loans Immediate Past President David Phelps II ICF Homes of Virginia, LLC Builder Director Brandon Serbay Built Right Homes Builder Director John Gasque Toll Brothers Inc. Builder Director Tim Hall Tricord Homes Builder Director Dan Sandoval Republic Home Builders Builder Director Jeremiah Horstick CORELOT Builder Director Sean Halsey Halsey Homes Associate Director Bruce Reese Legacy Engineering, PC Associate Director Frank Sigmon Builders FirstSource Associate Director Rusty Cowper The Federal Savings Bank Legal Counsel Charlie Payne Hirschler Fleischer Executive Officer Maria Moore FABA
The U.S. Court of Appeals for the Seventh Circuit in June sided with an NAHB member engaged in a decade-long legal battle in a case supported by NAHB’s Legal Action Fund – Orchard Hill Building Company v. U.S. Army Corps of Engineers. Ultimately, the Seventh Circuit ruled in favor of Orchard Hill, holding that the Corps had failed to prove the wetlands at issue had a significant nexus to any truly navigable water.
NAHB, Builder Win Clean Water Act Court Case
2018 Annual HBAV Convention The 2018 HBAV Annual Conference was a great success! Thanks to all of our sponsors and members that traveled south for our annual celebration. Click HERE to view photos from convention. What's going on at state and national? Your state (HBAV) and national (NAHB) associations are working hard to keep Virginia's business environment healthy! Click here for state and national news! EPA guidelines spell out rules for concrete washout water In an effort to clarify the rules governing concrete washout water (or washwater, as it's sometimes called), the Environmental Protection Agency has issued a "Stormwater Best Management Practice" flier on the topic. Concrete washout water is a slurry containing toxic metals, and improper disposal of it is one of the top pollution-prevention violations on all commercial and single-family construction sites. Click here to learn how to avoid a washwater disposal violation. NAHB awards season is now open for members Have a great single-family or multifamily community? The National Association of Home Builders has issued a call for entries in its various awards programs, including Best of 55+, Multifamily Pillars and Best in American Living Awards. Celebrate your company's achievements by participating in one of these prestigious competitions. You'll find complete details by clicking here.
HBAV BuildPAC works for YOU! HBAV has updated its BuildPAC flier to better show members the critical work it does on your company's behalf every day. Click here to check it out! And to find out how you can support BuildPAC's work with your contribution, click HERE. HBAV offers members business plan of action Help your company grow! The Home Builders Association of Virginia has partnered with Small Business Growth Partners to provide members with a planning tool that can help their companies thrive. Through the Pilot 50 program, the companies to enroll will receive a free Business Diagnostic & Plan of Action (BPA), which will include a detailed and comprehensive analysis of your business, from your marketing and sales process to your financials and strategic planning. Small Business Growth Partners is a national small-business coaching firm that specializes in building industry companies. Click HERE to sign up for one of the free BPAs available to association members or to learn more about the program.
News and Happenings? Send us your press releases, news, and event information! We can post it here in our newsletter and on the Member Happenings page of our website! Contact admin@fabava.com for more information.
JOB OPENINGS? Do you have job openings, apprenticeships, or internships to fill? Contact us today! FAB Foundation is working with FABA's workforce parnters to help you fill these positions with qualified and trained local students. FABA also posts job openings on the FABA website. Contact admin@fabava.com for more information or assistance.
2018 Partner Cornerstone Sponsor
Cornerstone Parter
(540) 898-5227 - www.bldr.com
www.DominionEnergy.com
Platinum Cornerstone Sponsors:
October 6-7 & 13-14, 2018
Enter your houses and remodel/renovation projects today in the 2018 Parade of Homes. The value of your entry this year is more substantial than ever before with an aggressive and innovative marketing plan. Or ADVERTISE IN THE 2018 PARADE OF HOME GUIDEBOOK ! 2018 Entry Fees for HOUSES: $1500 per entry 2018 Entry Fees for REMODEL/RENO Projects: $1000 per entry This year's Parade of Homes also features revised judging criteria, builder awards, and new opportunities for FABA's Associate Members and Builders who do not have a model or tour-ready home to participate. Watch your email for more details about how you can be a part of this year's event. Or participate in this year's Parade of Homes as an advertising partner. This year FABA is selling the ads in the Guidebook. See the attached rate card and placement form on pg 20 and secure your spot in the 2018 Parade of Homes Guidebook today!
2018 Platinum Cornerstone Sponsor
2018 Gold Cornerstone Sponsor
2018 Gold Cornerstone Sponsors
Government & Legislative Update
Parking and Drive Aisle Ordinance Change - Stafford County. The Stafford County Board of Supervisors authorized going forward with the public hearing process for parking and drive aisle changes. The Planning Commission will be considering authorizing a public hearing at their July 18th meeting. Stafford County has received comments from VDEQ audit of our Chesapeake Bay Act Program. VDEQ had two recommendations that directly affect parking and drive aisles. The first recommendation is to place a cap on the amount of parking that a use can provide. The second recommendation is that Stafford County specifically allow pervious pavement in parking lots and under certain conditions, make it a requirement. Stafford County Water and Sewer Design Standards Proposed Revisions Water and Sewer Design Standards in Stafford County are being proposed for revision. CLICK HERE for more details and to review the complete information (including attachments) . Stafford Bicycle & Pedestrian Facilities Plan The draft route recommendations and facility design standards are under “Draft Plan Documents” on the project web page: CLICK HERE. Contact Maria at mmoore@fabava.com or Bruce at bruce@legacy-eng.com if you have any comments or questions about any of these proposals or changes.
Spotsylvania County Community Development Fees have changed effective July 1, 2018. Planning packets have been updated and are available by clicking here: http://www.spotsylvania.va.us/content/20925/20991/24029/24045/24047/default.aspx King George County Board of Supervisors has adopted the New Fee Schedule effective July 1, 2018. The updated Zoning Fee Schedule has been a long time coming as the last update was in 2002. For updated fee information, click here: https://www.kinggeorgecountyva.gov/DocumentCenter/View/2987/ZONING-FEE-SCHEDULE- Also be sure to check out our new county website: https://www.kinggeorgecountyva.gov/179/Community-Development-Office We hope that you find it helpful and more user friendly. We are constantly working on updating forms, applications, checklists so that the applicant will be aware of the process and fees. We have recently implemented the Planning and Development application please be prepared to utilize this application with every submittal of Zoning plans (this does not include residential building and zoning permit applications). https://www.kinggeorgecountyva.gov/DocumentCenter/Index/166
Sharing housing with roommates, housemates and other non-relatives is rising in popularity among young adults, according to new research from NAHB. While only 4% percent of young adults ages 25 to 34 shared housing in 1990, that segment increased to 7.5% in 2016. At the same time, increasing numbers of young adults now choose to live with their parents or in-laws. Moreover, a rising portion of young adults (5.2% in 2016 versus 3% in 1990) choose to live with relatives other than parents. As a result, more than 15 million young adults ages 25-34 now live with parents or other relatives, or share housing with non-relatives. That’s roughly one in three young adults. The share of young adults living with parents or other relatives remained relatively stable from 1990 to 2000, fluctuating around 15%. The persistent and rising trend emerged a few years later. By 2006, 19% of young adults ages 25 to 34 lived with their parents or rela- tives. The trend continued its steady climb through the housing bust – an economic downturn characterized by declining home values – and showed no sign of reversing even as an economic recovery took place. By 2016, the share of young adults ages 25 to 34 living with parents or relatives exceeded 26%. Out of these, more than 21%, or 9.4 million, lived in the homes of their parents or in-laws and an additional 5.2% (2.3 million) lived with other relatives.
Sole Proprietors Now Eligible for Group Health Insurance The General Assembly recently passed SB 672, which became effective July 1st. It modifies the health insurance definition of a small group to include sole proprietors who work 30 hours or more per week. As you may remember, sole proprietors were at one point able to participate in group health plans though changes with healthcare regulations removed this opportunity. This renewed opportunity of group health insurance options for sole proprietors is very important, as it will result in stronger health insurance with the potential of dramatically lower premiums. There are two types of health insurance policies, individual and group. Prior to January 1, 2018, there was not much of a difference in premiums between them. However, most insurance companies withdrew from the individual market effective January 1, 2018. There is now only one insurance carrier offering individual health insurance in most localities, and whose rates increased 50%. By comparison, group health insurance rates increased on average around 15% in 2018. Prior to the new law being passed, a group was required to have at least one other (non-spousal) employee to establish a group health plan. While this worked for many, sole proprietors without any employees were frustrated, as many had no other choice than to enroll in the expensive, nearly collapsing individual health insurance market. Now sole proprietors can enroll in group health insurance. They can receive the same benefits and rates as companies with 2-50 employees. Sole Proprietors need not wait until the end of the year to enroll. This insurance is being offered to you as a benefit of your membership in both FABA/HBAV. For more information, contact HBAV Insurance Agency at 804-523-7168.
More Young Adults Are Sharing Housing
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