BUILDERS FRAMEWORK
FREDERICKSBURG AREA BUILDERS ASSOCIATION
Volume 2: Issue 5 │ May 2018
FREDERICKSBURG - STAFFORD - SPOTSYLVANIA - CAROLINE - KING GEORGE - ORANGE
A Closer Look at NAHB's Membership
NAHB each year conducts a member census to better understand the composition and characteristics of its membership. Last year, 32% of NAHB’s members were Builders – those directly involved in home building. The remaining 68% were Associate members – those involved in supporting industries and professions, such as trade contractors, manufacturers, retailers, architects and designers. As of, May 1, 2018, FABA's membership breakdown is 27% builders and 73% associates, which is close to the national breakdown. We will continue to provide advocacy and education and networking opportunities that benefit both our Builder and Associate members. Please do not hesitate to provide feedback as to how we can better serve you and your business.
New Home Sales Climb 4% in March
Spring has sprung! Oh wait, it's 90 degrees today... so Summer is here !?! Either way, it's finally beautiful weather and nice to be outside. We are looking forward to our annual FABA Golf Tournament on Monday, May 21 at Fawn Lake Golf and Country Club. This tournament is almost sold out already this year, so don't delay in getting your foursome. Click here for information and to register for Golf Tournament. Our monthly Associates and Membership Committee meetings are next week on Wednesday, May 9 at FABA. We head to Orange County on Friday, May 11 for our Quarterly update meeting with the Orange County Department of Community Development. All FABA members are invited to attend these quarterly and bi-monthly meetings with the counties and make contacts with the local building officials. The monthly Legislative Committee meeting is always the third Thursday of the month. Join us Thursday, May 17, 8:30 am at FABA for updates. Our FABA Education Series has been a huge success. Coming up on Wednesday, May 16 at 11:30 am is Social Media Marketing over lunch presented by FABA members, More Prospects Now! Be sure to register online for this class. Lunch will be provided by FABA. Click here to register today. Space is limited. Mixing it up a bit, our May Hard Hat Networking on Thursday, May 17 from 5-7 will be at the Germanna FredCAT Center in Central Park. The FredCAT center is Germanna's Workforce Training Center and we look forward to partnering with them on the future of our industry. Click here to RSVP today! FABA's Sales & Marketing Committee has scheduled a general SMC Members meeting on Wednesday, May 23 at 11:30 am. All SMC Members are invited to come and to discuss the future events andand direction of the group. If you ever have a question, want more information, or would like us to help you RSVP or Register for an event, please don't hesitate to call us here in the office at (540) 898-2730.
Sales of newly built single- family homes rose 4% in March to a seasonally adjusted annual rate of 694,000 units after an upwardly revised February report, according to recent data from HUD and the Census Bureau. This is the second highest reading since the Great Recession. There was significant variability across the country. Regionally, new home sales rose 28.3% in the West and 0.8% in the South. Sales decreased 2.4% in the Midwest and 54.8% in the Northeast. The inventory of new homes for sale was 301,000 in March, which is a 5.2-month supply at the current sales pace. The median sales price of new houses sold was $337,200.
EPA Review Leaves Lead Rule Unchanged
Developers May See Higher Sewer and Water Costs
HUD Unveils Overhaul of Section 8 Programs
Updates to the National Flood Insurance Program (NFIP) that became effective April 1 include a 6.9% increase in the average premium rate for standard flood insurance policies, rising from $994 to $1,062. In addition to the rate hike, FEMA announced a rate increase for the Increased Cost of Compliance pre- mium included in the stan- dard NFIP policy, which had remained constant for several years. Home owners spent more than $152 billion on remodeling projects in 2017. And this year is projected to be even busier for the remodeling industry, which typically kicks into high gear in the spring. That’s why May is the best time to celebrate National Home Remodeling Month, which provides an ideal opportunity for remodelers and home builders to promote their businesses.
HUD has announced a major overhaul of its rental assistance programs — including Section 8 Tenant-Based Rental Assistance, Section 8 Housing Choice Vouchers and Section 8 Project-Based Rental Assistance — to help the agency meet its budget goals. HUD Secretary Ben Carson is seeking to: increase the amount that low-income households pay for rent; institute a new work requirement for those receiving rental assistance; and establish a “core rent” proposal where Public Housing Agencies and owners would only be required to verify income every three years rather than annually. These programs help about 4.5 million families, enabling them to keep housing costs at roughly 30% of their income.
Join FABA today! We're SO much more than homes!
A federally mandated review of EPA's Lead Renovation, Repair and Painting Rule has concluded that, despite the lack of an accurate lead paint test kit, the rule should remain the same. While acknowledging that “a lead test kit meeting the rule’s positive response criterion has not come to market,” the agency said the benefits of lead-safe work practices “continue to exceed its costs,” which NAHB Remodelers have demonstrated can be considerable.
May is National Remodeling Month
Some utility companies are interpreting a tax change in a way that is forcing developers to pay substantially more for contributions in aid of construction (CIACs). Under the old tax law, some CIACs — such as sewage infrastructure or cash payments made to utilities for extending water lines — were not included in the utility’s gross income. The tax reform law enacted late last year removed this exception, making these contributions taxable for a private, for-profit utility.
Click here to watch!
NFIP Premiums Are Increasing
Distracted Driving Is a Killer
Roughly 17% of adults said they plan to buy a home within the next 12 months, according to a survey conducted in the first quarter 2018 for NAHB by the polling firm Morning Consult. The poll is part of the Housing Trends Report (HTR), a new research product created by the NAHB Economics team with the goal of measuring prospective home buyers’ perceptions about the availability and affordability of homes for sale in their markets. The HTR will be released quarterly in order to track the evolution of buyers’ perceptions. Among those who said they planned to buy in the next 12 months, 45% were first time buyers looking to get into homeownership for the first time. More granular findings for the first quarter of 2018 show that Millennials were most likely to have plans to buy a home in the next 12 months (19%) while Seniors were the least likely (13%). For a large majority (72%) of Millennials planning a home purchase, this is their first attempt at becoming home owners. In contrast, fewer than half of the older three generations say this next home will be the first one they ever own.
As mobile phones become increasingly indispensable, and as car dashboards become more interactive, it’s becoming harder for drivers to pay attention to the road. But multitasking doesn’t work in the driver’s seat. Despite the advanced safety features found in modern cars, more people are dying on the roads. Motor vehicle fatalities climbed 6% in 2016 and stayed roughly the same in 2017 at 40,100 deaths. Traffic accidents are also the leading cause of on-the-job fatalities in America, including residential construction jobs. As part of its #safety365 campaign, and with the support of Builders Mutual Insurance, NAHB created a series of video toolbox talks to help home builders talk to their employees and their subs about safety on the jobsite. The toolbox includes safe driving videos, available in both English and Spanish, that builders can download to use as part of their larger safety programs.
HUD announced recently that it will allocate nearly $28 billion to support long-term disaster recovery efforts in nine U.S. states, Puerto Rico and the U.S. Virgin Islands. This is the largest single amount of disaster assistance in HUD’s history. Most of the $28 billion will be used to address unmet needs from major disasters that occurred in 2017, including hurricanes Harvey, Irma and Maria, as well as the California wildfires and subsequent mudslides. More than $11 billion will go to Puerto Rico and the U.S. Virgin Islands.
NAHB Makes Progress in Code Hearings
17% Say They Plan to Buy a Home in the Next 12 Months
HUD Allocates $28 Billion for Disaster Recovery
Employers Must Use New I-9 Form
Nine days of hearings on proposed amendments to many of the International Code Council’s (ICC) building codes governing the construction of single- and multifamily homes have resulted in a series of victories for safe and affordable housing. NAHB Construction, Codes and Standards volunteers and staff attended the ICC board of directors meetings and testified at the Committee Action Hearings in Columbus, Ohio, April 15-23. Their arguments against the changes were quite persuasive: All 10 of the proposed changes that the association deemed most critical to home builders, developers and their customers were ultimately rejected by committee members. Building officials, industry representatives and other advocates can submit comments on the results of the hearings until July 16.
Welcome...
NEW Associate Members
DID YOU KNOW? You can send us your events, "happenings" or networking opportunities, and FABA will promote them here and in our weekly emails? Any event that's open to the public can be included. Please provide all details and ticket/rsvp links and we will help you promote it. send Member Happenings to: admin@fabava.com
April 2018 Membership Report
Sorenson Landscaping STA Title & Escrow George Mason – Dwight Taylor Avery Hess Realtors- Jennifer Layton Tailored Living of Fredericksburg Axis Land Surveying Inc. Pure Graphix ICE Heating & Cooling Suntrust Mortgage EZ Treat Inc Life Time Solutions LLC Ted Britt Ford Lincoln Reflections Cabinetry Atlas Roofing Werres Corporation John Darvish Construction Mohawk Ethan Allen Dave’s Trim & Tile Kage Siteworks Welcome Home NFP Bagby, Foroughi and Goodpasture PLLC WW Webb & Associates
AG Smart Construction America’s Home Place Caroline County Habitat for Humanity Drees Homes Embrey Mill by Newland Communities Paul Davis Restorations Sona Homes Spear Builders of VA
Bring your FABA membership prospects to our Hard Hat Networking in May and support our partnership with Germanna CC and our FAB Foundation Workforce Initiative. Thursday, May 17 from 5-7 pm @ the Germanna FredCAT Center in Central Park! (1325 Central Park Blvd, Fredericksburg, VA 22401) If every FABA member recruits one new member this year, we can double our voice and influence in the community and our industry.
Renewed Builders
April 2018 Membership Report (continued)
516 Project, Inc. ABC Supply Company Apex Truss Banker’s Insurance Blossman Gas, Inc. Brandonbilt Foundations Inc. Community Bank of Chesapeake Dominion Soil Science Donovan & Associates Realty Exceptional Home Designs Inc. Holt for Homes Jay Contractors, LLC Kitchen Krafters Liberty Mutual Insurance Luck Stone Corporation Quality Building Products Safford Chrysler Jeep Dodge SH3 Computer Systems, Inc Signature Home Settlements, LLC Southern Spotsylvania Plumbing Spangler Erkert & Associates Suburban Auto Sales The Growth Coach of NOVA Trane Company United Real Estate Premier Virginia Community Bank Welford Engineering Associates
Renewed Associates
Wednesday, May 9 Associates Committee Meeting 9 - 10 am (FABA Boardroom) Membership Committee Meeting 10 - 11 am (FABA Boardroom) Friday, May 11 Orange County Quarterly Meeting 9 am - 10 am Orange County Dept. of Community Development 128 W. Main Street, Orange VA 22960 Wednesday, May 16 FABA Education: Social Media Marketing 8:30 am - 9:30 am (FABA Boardroom) Click here to sign up online now! Or email admin@fabava.com or call (540) 898-2730 Thursday, May 17 Legislative Committee Meeting 8:30 am - 9:30 am (FABA Boardroom) Thursday, May 17 Hard Hat Networking Happy Hour 5 pm - 7 pm Germanna FredCAT Center in Central Park 1325 Central Park Blvd, Fredericksburg, VA 22401 Click here to RSVP! Thursday, May 21 FABA Golf Tournament & Awards Dinner 9 am - Check in; 10 am - Shotgun Start; Lunch at the Turn; Awards Dinner - 3 pm Fawn Lake Golf and Country Club Click here for information and tickets. Wednesday, May 23 SMC Members Meeting 11:30 am - 1 pm (FABA Boardroom) General SMC Meeting (for SMC Members) Lunch will be served! Please register by 5/22. Click here to register online now!
FABA Calendar of Events
FAB Foundation
FAB Foundation continues to build relationships and pursue options for the foundation's Workforce Development initiatives. In May, FABA will host it's monthly Hard Hat Networking at FAB Foundation Workforce Development partner, Germanna Community College's Fredericksburg Center for Advanced Technology (FredCAT) located in Central Park. FredCAT offers credential programs, apprenticeship training and support services aimed at high-demand fields. Their skilled training programs are designed and led by experts in the field making students and graduates stand out to local employers in well paying fields that are growing and hiring. The new center also provides a home base and work space for students and entrepreneurs to come design, prototype and collaborate to support local technology and manufacturing startups. Join us at Germanna's FredCAT Center on May 17th from 5-7 pm to learn more about how you can get involved with FAB Foundation's Workforce Initiative. The FAB Foundation meets the first Wednesday of every month at 9 am in the FABA Boardroom. Contact FABA for information.
May 17, 2018 Hard Hat Networking Germanna FredCAT (Center for Advanced Technology) in Central Park
FABA Legislative Update
cont. next page
2018 General Assembly Session Recap Over 3,700 pieces of legislation were introduced during the 60-day General Assembly Session. Of those bills, HBAV identified 147 bills that would have a direct or indirect impact on Virginia’s residential land development and construction industry. Summary of Legislation HBAV Opposed: • Proffers: Legislation that would have amended, repealed, studied, or exempted certain localities from the 2016 proffer legislation • Statewide Fire Prevention Code: Three bills that would have transferred the authority for the adoption of the Statewide Fire Prevention Code from the Board of Housing and Community Development to the Fire Services Board • Impact Fee Legislation: Two bills that would have granted broad impact fee authority to all localities in the Commonwealth • Affiliated Services: Legislation that would have prohibited the use of affiliated business arrangements (Mortgage Lenders and Title Companies) • Affordable Dwelling Units / Inclusionary Zoning Legislation: Legislation that would have granted all localities the authority to enact mandatory affordable set-aside ordinances • Tree Ordinances: Several bills that would have authorized localities to enact more stringent tree ordinances than currently enabled under State Code • Cluster Development: One bill that would have prohibited the placement of stormwater management facilities in “open space” within cluster developments Summary of Legislation HBAV Supported: • Legislation to ensure the protection of proprietary construction and engineering documents • Legislation to allow localities to enter into agreements with another to help provide plan review, permitting, and inspections services • Removes the requirement that a building permit applicant's written statement that he is not subject to licensure or certification as a contractor or subcontractor be supported by an affidavit • Legislation to address stormwater management regulations in rural Tidewater localities • Legislation to protect Virginia’s vested rights laws • Legislation to exempt from the requirement to obtain a Virginia Water Protection Permit an impact to a stormwater management facility on dry land Legislation to allow localities to create abandoned school revitalization zones For more information on how FABA, HBAV, and NAHB are advocating for your interested in local and national arenas, visit www.fabava.com, www.hbav.com, and www.nahb.org.
2018 FABA Board of Directors
Stafford County Online Permitting Stafford County's online permitting is available to everyone. Click here to visit the Stafford County Online Building Permit webpage. There are resources online to help you through the application process and the CDSC staff are available to walk applicants through the process on one of the three kiosks in the lobby of the CDSC. Stafford County Community Development & Services Center 1300 Courthouse Road 2nd Floor Stafford, VA 22554
Thursday, May 17, 2018 5:00 - 7:00 pm Germanna FredCAT Center 1325 Central Park Blvd, Fredericksburg, VA 22401
H A R D H A T N E T W O R K I N G !
cont. from previous page
President Gene Brown Atlantic Builders, Ltd. 1st Vice President Marc Simes WJ Vakos 2nd Vice President Stacey Lampman Spaces Design Studio Secretary Sara Cushing 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 Union Legal Counsel Charlie Payne Hirschler Fleischer Executive Officer Maria Moore FABA
The Fredericksburg Area Builders Association is proud to announce that on Thursday, April 19th, just three days before Earth Day, J. Hall Homes was honored at Viridiant’s Sustainable Leadership Awards, receiving the “Single Family New Construction Project of the Year” award. The annual awards recognize the region’s premiere developers, builders, architects, government officials and other industry professionals for their work in advancing the benefits of sustainable building through the EarthCraft family of green building programs. J. Hall Homes, Inc. was honored on Thursday evening at a ceremony in downtown Richmond which brought together close to 200 individuals representing home builders, non-profit and for-profit housing providers and developers, affordable housing advocates and those interested in creating green housing opportunities in Virginia. Awards were presented in a variety of categories to cover new construction, renovation, single family homes, multifamily housing and more. This unique French Country custom home entitled “Zephyr Manor” is just under 9,000 square feet, with 5.5 bathrooms and 5 bedrooms, an exceptional dwelling in many different ways. This home features two gourmet kitchens, boasts 10 and 12 foot ceilings, stunning outdoor living including a custom pool and pool house, “age in place” design, finished basement, sauna, fitness room, three car garage, over-sized dog shower, open stairwell, formal office space, open concept living, and much more. With an outstanding footprint, builder Jeff Hall and his team of subcontractors and suppliers were able to achieve an incredibly low HERS Score of 12, which included both Geothermal Heating and Cooling and Photovoltaic Solar Panels! With this project, Jeff has proven once again that building a spacious, elegant, and luxurious home in a sustainable way is highly achievable! In addition to this prestigious award, J. Hall Homes, Inc. was also honored with more distinguishing awards for building three of the Top Ten High Performance Homes of 2017, placing #2, #8, and #9 in this category. “Each year, our nominees and winners amaze us with their cutting edge projects that are transforming today’s housing market and serve as proof that the science of sustainability can deliver a housing future that is more affordable, more durable and more livable. This year is no exception,” said KC Bleile, Executive Director of Viridiant. “It is truly our honor to recognize the work of these dedicated teams and their passion for high performance home building.” For more information about the 9th Annual Sustainable Leadership Awards, visit the Viridiant website by clicking HERE. Known for its solid reputation and award winning homes, J. Hall Homes is one of Fredericksburg’s most preeminent design-build home builders. For over 20 years, Jeff Hall has brought homebuilding style, green homes, quality and integrity to Fredericksburg and the surrounding areas. Jeff’s smart and striking designs demonstrate his excellence in art, highaptitude for creativity and ability to exemplify the true vision and heart of the homeowner. J. Hall Homes, Inc. design-builds distinctive single-family homes and is a leader in the art of design and construction, balancing innovation and practicality to create homes of striking beauty and exceptional value. Jeff works at the industry forefront, incorporating modern construction techniques, materials, green building, and building systems for high quality, energy efficient homes. FABA congratulates J. Hall Homes on this prestigious award and is proud of their commitment to green building programs. If you see Jeff or Michelle around town, be sure to congratulate them on their award!
J. Hall Homes, Inc. Named “Single Family New Construction Project of the Year” at the 2018 Sustainable Leadership Awards
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. In 2017, participating builders saw a significant increase of their traffic on Parade of Homes weekends, and several builders wrote new sales contacts as a direct result of the traffic driven by the marketing and promotion of the event. This year’s Parade of Homes will be even bigger. 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.
2018 Platinum Cornerstone Sponsor
2018 Gold Cornerstone Sponsor
2018 Gold Cornerstone Sponsors
HBAV Happenings
Rising Lumber Prices Are Hitting Home
John C. “Jack” Dawley got an unwelcome surprise recently when he opened an email from the company that supplies the white cedar shingles for the homes he’s building. The shingles are imported from Canada, and as of March 14 are subject to an immediate 20.8% duty that the U.S. imposed as part of its ongoing softwood lumber trade dispute. That means an additional cost of $1,400 per unit for the 12 homes planned for the next phase of construction – and half had already been sold. “For most people, including me, the topic of tariffs and their impact is abstract,” said Dawley, president and CEO of Northland Residential Corp., a builder-developer focused on high-end communities in eastern Massachusetts. “It was instantly clarified with this message.” Coniferous shingle and shake products had not previously been subject to tariffs because there is so little production in the United States that imports from Canada do not compete with similar American products. Moreover, no accusations of improper conduct had been levied against Canadian shake and shingle manufacturers, his supplier said. The prices on softwood lumber imports skyrocketed after the 2017 hurricane season and were up 30% from the four months leading to January 2018. By April 6, the Random Lengths Framing Lumber Composite price hit $492, up from $414 a year earlier.
HBAV Annual Conference June 21-23 Join fellow members of the Home Builders Association of Virginia for the 2018 HBAV Annual Conference. FABA's own Dan Sandoval will be sworn in as the 1st Vice President. The meeting will be held June 21-24, 2018 at LaPlaya Beach and Golf Resort in Naples, Florida. If you're looking for business development and networking opportunities with leaders in the home building industry from across Virginia, this is a can't miss event. Register Today and reserve your room! Click here to register.
2018 Silver Cornerstone Sponsors:
Discounts for FABA Members
FABA works to educate, promote and represent the building industry while enhancing the region’s quality of life.
Thank you to all of our Cornerstone Sponsors and Advertisers Don't forget to refresh or submit your ads!
2018 Friend Cornerstone Sponsors:
