BUILDERS FRAMEWORK
FREDERICKSBURG AREA BUILDERS ASSOCIATION
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Volume 3: Issue 2 │ February 2019
FREDERICKSBURG - STAFFORD - SPOTSYLVANIA - CAROLINE - KING GEORGE - ORANGE
Small Price Increases Can Exclude Millions
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THURS. Feb. 21, 2019 5 pm - 7 pm SPLITSVILLE Click here for info
featuring : Dr. Elliot Eisenberg The Bowtie Economist
HARD HAT Happy Hour
FABA and FAAR Members ONLY Event Wed. March 6, 2019 8:00 - 10:30 am Breakfast will be served. MUST BE A MEMBER TO ATTEND
The Economy and the Housing Market
It takes only a small uptick in home prices and mortgage rates to price more than 1 million potential home buyers out of the market for a median-priced home. For example, $1,000 might sound insignificant when compared to the overall price of a new home. But that relatively small amount has a surprisingly big impact on affordability. NAHB economists recently determined that for every $1,000 increase in today’s median U.S. home price, 127,560 American households are priced out and would no longer be able to afford to buy the home. In other words, based on their incomes, 127,560 households would be able to qualify for a mortgage to purchase the home before the price increase, but not afterward. More information, including priced out estimates for every state and over 300 metropolitan areas, and additional details about the methodology of the study, is available here.
New households are being formed faster than new single- family and multifamily homes are coming on line to accom- modate them, according to a recent study by NAHB Economist Paul Emrath. Data from the Census Bureau’s Housing Vacancy Survey from 2014 through 2017 shows an average of about 1.15 million net household formations per year. Over the same time, an average of about 1.02 million single-family and multifamily homes were completed per year. That’s a short- fall of more than 500,000 homes over the four-year period.
The Treasury Department has released final regulations for the 20% pass-through entity deduction under the Tax Cuts and Jobs Act of 2017. The final regulations concern the deduction for qualified business income under Section 199A of the Internal Revenue Code. The regulations will affect individuals, partnerships, S corporations, trusts, and estates engaged in domestic trades or businesses. The deduction is generally available with few limitations to small business owners with income below $315,000 for married couples filing jointly and $157,500 for single filers without limitations. Additional rules and limitations apply to higher-income earners. NAHB is reviewing the rules to determine how they will affect its members.
The IRS has announced that it is waiving the tax penalty for many home builders and other small businesses that pay estimated quarterly taxes but whose 2018 federal income tax withholding and/or estimated tax payments fell short of their total tax liability for the year. The IRS said in a press statement that it is “generally waiving the penalty for any taxpayer who paid at least 85% of their total tax liability during the year through federal income withholding, quarterly estimated tax payments or a combination of the two. The usual percentage threshold is 90% to avoid a penalty.”
Portal Highlights Housing Data
Treasury Releases Pass-Through Rules Could Be a $2.5 Billion Tax Could Be a $2.5 Billion Tax Court
IRS Waiving Penalties for Most Quarterly Filers
OSHA Issues Final Reporting Rule
New Households Outpace New Homes
OSHA has issued a final rule eliminating a require- ment that employers with 250 or more employees electronically submit information from certain OSHA forms. These companies will no longer be required to electronically submit information on OSHA’s Log of Work-Related Injuries and Illnesses form and Injury and Illness Incident Report form. They are, however, still required to electronic- ally submit information from the Summary of Work-Related Injuries and Illnesses form. NAHB’s housing portal is a website that delivers a wide range of housing and polling data specific to congressional districts and major metropolitan areas. Produced in cooperation with the polling firm Morning Consult, this tool enables builders to demonstrate to policy makers the importance of the housing industry.
NAHB’s Legal Action Fund scored another victory recently when a case it supported in Nevada, Donnelly v. Anthony & Sylvan Pools, resulted in a win for the building community. The Nevada HBA, Southern Nevada HBA, and the Builders Association of Northern Nevada received a $10,000 grant from NAHB's Legal Action Fund to file an amicus brief in support of a subcontractor who was sued by a non-home owner for injuries he sustained after diving into an in-ground backyard swimming pool. The case represents the first substantive challenge to Nevada’s construction defect reform law, which establishes a six-year period of repose for construction defect claims, including claims that result in personal injury. A statute of repose sets the outer limit on when a lawsuit may be filed.
Recruit the Next Generation
Construction Defect Win in Nevada
Green Building Becoming the Standard for New Homes
Homes are increasingly being designed, constructed and operated toward the greener end of the construction continuum. And many of the design features associated with green building carry direct consumer benefits, such as greater comfort, lower utility bills, reduced maintenance and increased value. Research by NAHB and others shows that many home buyers are interested in green. NAHB’s report, Housing Preferences of the Boomer Generation: How They Compare to Other Home Buyers, asked home buyers across four generations — millennials, Gen Xers, baby boomers, and seniors — what features they consider essential/desirable in a new home. Energy-efficient strategies, including ENERGY STAR appliances and windows and above-code insulation, made the most-wanted list and would positively influence the purchase decision of 80% or more of all home buyers. NAHB’s 2017 Green Practices Survey, con- ducted to gather information on high- performance building practices used in 2016, showed that resource efficiency, site choice and lot design were the most challenging aspects of residential green building.
The start of a new year is a great oppor- tunity to remind your local community about the rewarding careers available in residential construction. The Careers in the Construction Trades section on nahb.org provides detailed information on six popular home building trades: carpentry, electrical, HVACR, masonry, painting and plumbing. The resources provide trade-specific salary information and videos that the user can share to showcase the different career paths available in the residential construction industry. NAHB also continues to update its members-only Skilled Workforce Development Resources to help you recruit skilled labor and spread the word about the valuable careers available in residential construction.
Employers Must Use New I-9 Form
How Are Your Impact Fees Being Used?
Local govern- ments sometimes use impact fees to pay for things unrelated to the fee’s intended purpose. Over the last 30 years, the Development Planning & Financing Group Inc. (DPFG) has been working with NAHB, HBAs and various home building companies in reviewing, critiquing, and determining the overall fairness and equity of the impact fees proposed by associated jurisdictions. Over the last seven years, DPFG has conducted a number of in-depth audits of municipalities’ fee programs and we can now conclude greater transparency and oversight are needed related to the expenditure of fees. Most jurisdictions attempt to utilize fees for the intended purposes. There does, however, appear to be an almost uniform disconnect between the departments that prepare the fee study (e.g., manager, public works and finance departments) and the departments and/or personnel that collect and expend impact fees (accounting and public works departments). In states with no fee audit requirement, DPFG’s audits have found the misuse of impact fees in four general areas: • Using fees to correct existing deficiencies. • Using specific impact fees to fund non-authorized capital facilities. • Using fees for the payment of non-capital assets. • Using fees for the repair and maintenance of existing facilities.
Hiring Tax Credits Hiring individuals from groups such as food-stamp recipients, temporary assistance for needy family (TANF) recipients, and unemployed veterans, can make you eligible for federal and state tax credits. Simple Solutions to Complicated Credits Claiming credits takes time and effort. You may be required to screen applicants for eligibility, submit forms by strict deadlines, track hour and wage data, and calculate earned credits. Paychex can help. The Hiring Tax Credit Service is an economical, easy-to-use solution offering: • Applicant eligibility verification and screening via online access, paper, or phone. • Preparation and filing of applicant-screening forms. • Tracking of hours worked and wages paid • Quarterly and annual reports showing credits you've earned. • Access to client dashboard with real-time data. • A well-documented and legally compliant audit trail for claimed credits. In In Return on Your Investment The Work Opportunity Tax Credit {WOTC) can range from $1,200-$9,600 per eligible employee. These dollar-for-dollar tax credits reduce your federal tax liability. Plus, the Hiring Tax Credit Service is available to you at no charge. You pay a fee only when we find credits!
Tax Credit Information
2018 Partner Cornerstone Sponsor
Cornerstone Parter
Thursday, Feb. 21 Hard Hat Networking 5:00 pm - 7:00 pm Splitsville Thursday, Feb. 28 OSHA-10 Safety Training - Pt. 1 & 2 Friday, March. 1 10:00 am - 4:00 pm Germanna FredCAT Wednesday, March. 6 The Economy & The Housing Market with Elliot Eisenberg 8:00 am - 10:30 am Riverside Center Thursday, March 7 Special Edition of Hard Hat Networking presented by Exterior Medics 5:00 pm - 7:00 pm Splitsville Wednesday, March 13 Associates Committee Meeting - 9 am Membership Committee Meeeting - 10 am FABA Boardroom Thursday, March 21 New to FABA Member Orientation 4:00 pm - 5:00 pm Hard Hat Networking 5:00 pm - 7:00 pm Splitsville Friday, March 29 2015 Building Code Training 8:00 am- 4:00 am Spotsylvania County School Board Building 8020 River Stone Dr, Fredericksburg, VA 22407
February 2019 Calendar at a Glance
2018 Platinum Cornerstone Sponsor
Welcome... New Members & Thank You Spikes ! Anthony Eason Jr. Architectural Digital Architecture, spike Sean Halsey Superior Distribution, spike Michael King Sheehy Ford of Warrenton, spike Michelle Hughes Minuteman Press, spike Phill Solow Teresa Davis (House Business LLC), spike Lori Canova Exterior Medics, spike James Roberson Brandonbilt Motorsports, spike Jerry Brown
January 2019 Membership Report
Thank you... Renewed Members Renewed Builder Members Battlefield Homes Greater Fredericksburg Habitat for Humanity C.C. Carpentry NTS Virginia - Fawn Lake Tricord Homes Simply Home LLC Renewed Associate Members Fidelity Bank Mortgage The Title Professionals NSWC Federal Credit Union Lyons Stucco & Stone PB Mares Orenco Systems Inc. 84 Lumber Redi Carpet Sales of Virginia Ray’s Siding Dominion Energy Jim Carpenter Companies Columbia Gas of Virginia Mohawk Industries ECS Mid-Atlantic LLC Holt for Homes Metwood Building Solutions Robert B. Payne John Hayden – Assurance Financial Kent Schrader – Assurance Financial Jen Gallagher – Reico Michelle Stoots – Reico Cameron Landeck – Reico Susan Rotelli – Reico Allen Parker - ECS Thank you for your continued support!
Thank you... New & Renewed AffiliateMembers Aimee Meade, The Title Professionals (NEW) – spike Mark Steele Justin Vanlandingham, Redi Carpet (NEW) – spike Steven Dorrell Teisha Ingraham, Central Park Insurance (NEW) – spike Joseph Boggs Bo Streyle, Carter Lumber (NEW) – spike Jobie Wright Clyde Sutphin, Carter Lumber (NEW) – spike Jobie Wright Dan Kraft, Carter Lumber (NEW) – spike Jobie Wright Andy Smith, Carter Lumber (NEW) – spike Jobie Wright Kip Houchen, Carter Lumber (NEW) – spike Jobie Wright Ray Daly, Carter Lumber (NEW) – spike Jobie Wright Eric Lascomb, Carter Lumber (NEW) – spike Jobie Wright Phil Borders, Aaronal Homes (Renewal) Daniel Hudson, Holt for Homes – (Renewal) Thank you ALL for your continued support!
www.DominionEnergy.com
Platinum Cornerstone Sponsor:
2018 Gold Cornerstone Sponsor
2018 Gold Cornerstone Sponsors
FABA Members, we are about to begin the process of assembling our 2019 Membership Directory. In order to start from the most current information, we will be contacting you to verify your company and contact information. The directory includes the following: Company Name Primary Contact Person Name Phone Number Address (mailing address or physical address, whichever you want published in the book) Primary Contact Email Company Website address Your Business Category You can help us by confirming the information we have in our membership database by logging into your account on our FABA website. If you don't have your log in information, to the members-only side of the www.fabava.com website, please contact us today at: events@fabava.com and we will resend your log in details.
Why Volunteer? Part of being a great volunteer is loving what you're doing. Find something that you're passionate about or something that inspires you, and then find a need in your community. There are dozens of reasons why you should volunteer - you just need to find the one that feels right. 20 GREAT REASONS TO VOLUNTEER - Help others - Make a difference - Find purpose · Enjoy a meaningful conversation · Connect with your community · Feel involved · Contribute to a cause you care about · Use your skills in a productive way · Develop new skills · Meet new people · Explore new areas of interest · Meet good people · Impress your mom · Impress yourself · Expand your horizons · Get out of the house · Make new friends · Strengthen your resume · Feel better about yourself
FABA Membership Directory Information
2019 FABA Board of Directors
President Marc Simes WJ Vakos 1st Vice President Stacey Lampman Spaces Design Studio 2nd Vice President Scott Hine Assurance Financial Group Secretary Sara Fila Legacy Engineering Treasurer Jeremiah Horstick CORELOT Immediate Past President Gene Brown Atlantic Builders, Ltd. Associate Vice President John Reid Embrace Home Loans Builder Director Dan Sandoval Republic Home Builders Builder Director Sean Halsey Halsey Homes Builder Director John Gasque Cornerstone Homes Builder Director Tim Hall Tricord Homes Builder Director Teressa Taylor-Griffis Foundation Homes Builder Director Brandon Serbay Built Right Homes Associate Director Bruce Reese Legacy Engineering, PC Associate Director Frank Sigmon Builders FirstSource Associate Director Rusty Cowper Embrace Home Loans Legal Counsel Charlie Payne Hirschler Fleischer Executive Officer Maria Moore FABA
The Legislative Committee has been participating in a weekly conference call to discuss the updated status of proposed building industry legislation. Updates will be provided soon. Members of FABA and the FAB Foundation board of directors attended and helped to judge the local Skills USA competiton at Spotsylvania Career & Tech Center. Thank you to everyone who helped make this competition a success.
FAB Foundation
Legislative News
Over $13,000
renewable scholarships will be awarded!
Silver Cornerstone Sponsors:
2018 Silver Cornerstone Sponsors:
We help you ask the right questions about home or commercial roofing and exteriors. By combining our passion for our industry and our belief in 100% customer satisfaction, you have found the right experts for quality advice. Our goal is to provide our customers with the most outstanding service in the industry while maintaining a family atmosphere for our customers, vendors, and employees. Our 30,000 square foot facility allows us to buy in large volume and pass the savings on to our customers. Our partnerships with several manufacturers have strengthened our resources giving us valuable insight and education that we pass on to our customers. We are consistently proactive in researching new products, materials, and techniques so that our clients will have access to the latest product offerings in our market.
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Thank you to all of our Cornerstone Sponsors and Advertisers Don't forget to refresh or submit your ads!
FABA works to educate, promote and represent the building industry while enhancing the region’s quality of life.
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 partners 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.
HBAV Rebate Report for FABA Members: Don't miss out on your share of the rebate cash! In the State of Virginia, 298 Builder & Remodeler Members registered for the HBA Rebates program. Of the 298 registered, 176 participated in the program and sent in a rebate claim). Of the 176 that participated, $960,976.00 has been cumulatively paid to them! Cumulative average per member = $5,460.09! In 2018, through the first three quarters, FABA members submitted ONLY 24 claims for a total of $4,212 in rebates recevied. In Q1, only 6 FABA Members submitted for their rebates. In Q2 an Q3, 9 FABA Members submitted each quarter. IT'S NOT TOO LATE TO CLAIM YOUR REBATES.... Q4’18 Claim Deadline: Thursday, February 28th, 2019 Claim for Residential Jobs Completed between Oct 1 through Dec 31, 2018. Effective Q1’2018, there will no longer be deadline extensions. All claims MUST be submitted by the set claim deadline for each quarter. Register & Claim Your FREE money: www.HBAVrebates.com Have Questions? Please contact Kim Klein Direct telephone: 732-612-3865 Kim@HBArebates.com
Discounts for FABA Members
