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Volume 5: Issue 4 April 2021
Higher interest rates, supply shortages and rising material prices, particularly for lumber, put a damper on new home sales in February. Sales of newly built, single- family homes in February fell 18.2% to a 775,000 seasonally adjusted annual rate, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. This is the lowest level of new home sales since May 2020. Shortages and high prices for materials, especially lumber, affected the market. Soaring lumber prices have added more than $24,000 to the price of an average new home. Inventory rose slightly to a 4.8 months’ supply, with 312,000 new single-family homes for sale, 12.7% lower than February 2020. Homes available for sale that have not started construction are up 67% over last year, an indicator of increasing delays and higher costs associated with construction. The median sales price was $349,400, up 5.3% over the $331,800 median sales price posted a year earlier. Regionally on a year-to-date basis, new home sales declined 9.3% in the West and rose in the other three regions, up 6% in the Northeast, 24.7% in the Midwest and 23.2% in the South.
Materials Costs, Higher Rates Dampen February Home Sales
NAHB Spearheading Lumber Efforts NAHB continues to move aggressively to engage the Biden administration on lumber and to urge policymakers to take immediate action to address skyrocketing lumber prices and supply shortages that are harming home builders, home buyers, remodelers and the economy. NAHB has reached out to President Biden, Commerce Secretary Gina Raimondo, and Agriculture Secretary Tom Vilsack, among others, urging them to examine the lumber supply chain, identify the causes of high prices and supply constraints, and seek remedies that will increase production.
NAHB Wins Eviction Moratorium Case NAHB won a key legal decision recently when the U.S. District Court for the Northern District of Ohio ruled that the CDC exceeded the authority granted to it by Congress when it issued an eviction moratorium. NAHB brought the lawsuit as a plaintiff on behalf of its members. On March 24, the Department of Justice confirmed that the district court’s order applies to all NAHB members across the nation who rent residential properties to covered persons, not just those who reside in Ohio.
Congress Extends PPP Application Deadline With a March 31 deadline looming, the Senate on March 25 voted 92-7 to approve the PPP Extension Act. The legislation will extend the filing deadline for Paycheck Protection Program (PPP) applications by 60 days and provide an additional 30 days for the SBA to finish processing applications received by the new May 31 deadline. President Biden is expected to sign the measure into law. NAHB was part of a coalition of business groups urging Congress to approve the legislation. Biden Signs $1.9 Trillion Stimulus Package President Biden signed the $1.9 trillion COVID-19 relief package into law on March 11. While far from perfect, the stimulus package contains important provisions for the housing community, including aid to state and local governments. Other key provisions include: Recovery rebates up to $1,400 per taxpayer; additional aid for small businesses; and $27.5 billion for emergency rental aid.
ICC to Use ANSI Process for Energy Codes The International Code Council has announced it is changing the development of its energy code from the current Governmental Consensus Process to its American National Standards Institute (ANSI) development process. “This is an important change that we expect to result in a model energy code that meets the needs of building officials, consumers, builders and energy efficiency advocates,” said NAHB Chairman Chuck Fowke.
SBA Issues PPP Guidance The SBA has released updated guidance on what constitutes lobbying for 501(c)(6) organizations, including local and state home builders associations, that seek forgivable loans under the Paycheck Protection Program (PPP). The guidance states that “lobbying activities” are defined in the Lobbying Disclosure Act of 1995. Under the law approved in December, 501(c)(6) groups, including state and local HBAs, are eligible to receive a PPP loan if the organization: • Does not receive more than 15% of receipts from lobbying; • Lobbying activities do not comprise more than 15% of its activities; • It has 300 or fewer employees; and • The cost of lobbying did not exceed $1 million in the most recent tax year.
Most cities in California are not meeting housing production targets, and the state underproduced by approximately 3.4 million housing units from 2000 to 2015 because of systemic challenges. Local planners recognize the problem, and in 2018, Sacramento city staff received direction to streamline the approval of housing projects to minimize housing barriers, including the time, cost and uncertainty in the approval process. In 2017 California passed SB-35, and Sacramento became the first city in the state to implement “ministerial approval” of multi-unit housing projects. This allows infill housing pro- ects of up to 200 units to bypass public hearings. Sacramento’s 2040 General Plan Update envisions growth of 72,000 new homes and 80,000 new jobs over the next 20 years. The update includes an eight-year strategy to address housing, including increasing overall housing production, increasing affordable units and promoting accessory dwelling units.
Sacramento Streamlines Approvals to Boost Production
Study Looks at Electrification A recent study, “Cost and Other Implica- ions of Electrification Policies on Residential Construction,” suggests significant trade- offs in terms of the cost of retrofitting exist- ing homes and the long-term energy usage costs of electric appliances and equipment in climates with a large heating demand. The study, conducted by the Home Innovation Research Labs for the National Association of Home Builders, evaluates construction and retrofitting costs and annual energy use costs of gas appliances and equipment and electric appliances and equipment. It looks at costs in four major markets - Houston (CZ2), Baltimore (CZ4), Denver (CZ5), and Minneapolis (CZ6). The study found that the cost of installing and using electric appliances, including annual energy use, often exceeds the cost of gas appliances.
Series Looks at Building and Selling High Performance Homes
Interested in green building and high performance homes? Then make plans to view the Home Performance Counts: Virtual Green Home Tour Series. The first edition of the series takes place at 3 p.m. ET on April 22. Please register for the tour. If you miss a presentation in the series, no problem. They will be available to view after each installment. Registration is free to all for this monthly series showcasing high performance homes across the country. In addition to the showcase of homes, builders, real estate agents and others will discuss how housing industry professionals can work together to increase sales and provide added value to consumers. The series is a product of Home Performance Counts, a joint educational initiative between NAHB and the National Association of Realtors (NAR). Home Performance Counts is designed to help members of both associations work together and succeed in the rapidly growing marketplace for high-performance homes. The Earth Day kickoff of the series features Robinhood by Red Tree Builders. Brandon Bryant, Red Tree’s Owner and President and current Chairman of the NAHB Sustainability & Green Building Subcommittee takes viewers through Robinhood, one of his artfully crafted, mindfully built high-performance homes in the mountains near Asheville, N.C. Brandon is joined by Kelly Erin-Spinney of Modern Asheville Real Estate to discuss how to talk to customers about high performance and how to realize the high- performance value of a build in the sale. A live Q&A with Brandon and Kelly will take place immediately after the tour.
I want to take this opportunity to thank you for your continued support of FABA. With that in mind, April is our membership derby, and we need your help! If you know someone who you think would benefit from a FABA membership, send them our way. I guarantee there is something the Fredericksburg Area Builders Association can do to help you. We just need to start the conversation to find out what that is. Visit our website TODAY fabava.com to join or renew your partnership with your ASSOCIATION. You can also learn more about FABA by visiting us at our office or at one of our live hard hats happening every month. As things begin to move back towards “normal,” we’ve got more live events, networking, and fun coming this year. We can't wait to see you there! Our industry events help us continue in our mission of educating, promoting, and representing the building industry while enhancing the region’s quality of life. Our never-ending efforts to advocate for our members and our industry have helped tremendously through this difficult year. We appreciate your support and the help of our many members who have gotten more involved in committees throughout the year so far. We are so thankful for each of you. Continue the good work, and we will continue the work for you and our industry. Sincerely, Scott Hine Assurance Financial 2021 FABA President
2021 FABA President - Scott Hine shine@assurancemortgage.com
President's Pen
Upcoming Meetings & Events
April 14th, 9:00AM Associates Committee Hybrid Meeting (Zoom link) April 14th, 10:30AM Membership Committee Hybrid Meeting (Zoom link) April 15th, 8:30AM Legislative Committee (Zoom Link) April 15th, 5:00PM Hard Hat sponsored by Cutco at Billiken's April 23rd, 8:30AM Community Service Event with 516 Project 1127 Summit Ave. Fredericksburg VA April 24th, 9:00AM Sip Sip Hooray Wine Tour Departing from Mid South April 28th, 2:00PM Community Service Committee Hybrid Meeting (Zoom Link)
TICKETS ON SALE Monday, May 10, 2021 - Spring Golf Tournament at Fawn Lake
FABA's first priority has been, and will continue to be, the safety of our members. Both on the job site, at the work place and at social events.
Calendar at a Glance
THANK YOU members for your continued support of the building industry ! March 2021 New Builder Members Colt Run Development Group Dream Finders Homes Triple Crown Homes New Associate Members Alside Supply Independent Renovations RIO PRIME Renewed Builder Members ICF Homes Renewed Associate Members KT Enterprises Hirschler RC Enterprises
Membership Committee
The Membership Committee brings builder and associate members together to focus on recruitment of new members and retention of current members. This committee hold a hybrid meeting (in-person or zoom) every 2nd Wednesday at 10:30AM.
Chair - Marc Simes, msimes@tricordinc-va.com
Membership Committee Meeting April 14th, 10:30 AM *hybrid (in-person or zoom) Hard Hat sponsored by Cutco April 15th, 5:00 PM at Billikens
The Associates Committee plans member events to promote doing business with members. These volunteers coordinate networking and social events for business connections. This committee has a hybrid meeting (in-person or zoom) every 2nd Wednesday at 9:00AM.
Chair - Mike King, rayssidingcompany@gmail.com
Associates Committee
2021 Events FABA Awards Spring Golf Clay Shoot President's Reception Disc Golf Bingo Crab Feast and Auction Twilight Golf Turkey Shoot Legislative Fall Golf Holiday Party Dates and details to comply with COVID regulations
Associates Committee Hybrid Meeting Zoom Link: April 14th, 9:00 AM
Fredericksburg City Bi-Monthly Zoom Meeting June 4nd, 9:00AM King George County Quarterly Zoom Meeting April 22nd, 9:00 AM Orange County Quarterly Zoom Meeting July, 2nd, 3:00 PM Spotsylvania County Bi-Monthly Zoom Meeting June 1st, 3:00PM Stafford County Bi-Monthly Zoom Meeting June 14th, 9:00AM Caroline County Quarterly Meeting Zoom April 27th, 11:00AM Culpeper County Quarterly Meeting Zoom May 6th, 9:00AM
Legislative Committee
Upcoming County Zoom Meetings
April 2019, the Virginia Board of Housing and Community Development (BHCD) initiated the 2018 Code Development Cycle to consider amendments to the Virginia Uniform Statewide Building Code (USBC), Statewide Fire Prevention Code (SFPC), and other codes. Clickhere for an overview of the significant changesto the Virginia Construction Code, Virginia Existing Building Code, Virginia Maintenance Code, Virginia Statewide Fire Prevention Code, Manufactured Housing Safety Regulations, and Virginia Certification Standards.
Latest updates from your three in one membership hard at work for BUSINESS
Developers Council The working mission of the Council is to stay on top of land development issues affecting local builders and developers in our region and work together to advocate for our positions as needed. The Council is open to Builder and Developer members of FABA. Jeh Hicks, Jarrell Properties , Inc., is the chairman of the Developers Council. This group meets every other month. For more information contact Chrissy Urian at c.urian@fabava.com
Chair - Bruce Reese, bruce@legacy-eng.com
The Legislative Committee meets monthly to discuss the status of local and state level legislation that affects the building industry. For more information from each county, plan to attend the Legislative Committee meeting. This committee meets virtually every third Thursday at 8:30AM. Next Meeting: Thursday, 5/20/21, 8:30 AM - Zoom Link
Chair - Greg Schmidt, greg@pestsolutionsva.com
Community Service Committee
The Community Service committee seeks to increase civic engagement among the members of FABA and utilize professional skills to actively benefit the Fredericksburg area. This committee holds a hybrid meeting (in-person and virtual/zoom) every 4th Wednesday at 2:00PM. The next hybrid meeting is April 24th at 2:00PM. Zoom link
Your Picture Here
Chair - TBD
The Education Committee coordinates workshops and virtual learning opportunities focused on industry safety, marketing, and personal growth.
Staying on top of home-buying trends is critical to creating effective marketing campaigns to target today’s prospective buyers. (CLICK TO READ MORE)
2021 Marketing Tips Every Builder Should Know
Education Committee
For more information on NAHB Young Professionals click here
Young Professionals Committee
Young Professionals committee is for individuals in the 21-40 age group to connect, and provides opportunities for professional development, social networking, mentoring, and personal growth for our members.
Cornerstone 2021
FABA works to educate, promote and represent the building industry while enhancing the region’s quality of life.
FAB Foundation provides grants to students pursuing careers in the home building trades. Now offering internships and apprenticeships to gain real world experiences in the building industry. If you are interested in making a donation to FAB Foundation please contact Maria at mmoore@fabava.com. If you know of a student pursuing a career in the building trades, please have them visit our FAB webpage to fill out a FAB Join FABA for our Sip Sip Hooray Wine tour to benefit FAB on April 24th from 9:00-4:00 PM. Register at FABAVA.com/events . Register Foundation Workforce Grant application.
Student, John Boutchyard, and his tools thanks to FAB Workforce Grant
FAB Foundation Workforce Grants
FABA Student Chapters Spotsylvania Career and Technical Center Stafford High School Spotsylvania High School Gladys H Oberle School Caroline High School
FAB Foundation
FAB Board of Directors Glen Raymond Eddie Payne Guy Miller-Richards Emily Hall Christine Singhass Mike King Ricky Robinson Tim Thompson Gary Parker Scottie Davis Brandon Serbay
The FAB Foundation board of directors meets monthly to discuss ways to involve the association with local workforce educators and help promote workforce development in our area. If you would like to be involved with these students, contact FABA for more information.
2021 FABA Board of Directors
President Scott Hine Assurance Financial Group 1st Vice President Marc Simes Tricord Companies 2nd Vice President Jeh Hicks Jarrell Properties Secretary Michelle Hall J. Hall Homes Treasurer Jeremiah Horstick CORELOT Immediate Past President Stacey Lampman Spaces Design Studio Associate Vice President Michael King Ray's Siding Executive Officer Maria Moore FABA Legal Counsel Charlie Payne Hirschler NAHB State Representative Shawn Callahan Metwood Building Solutions Builder Director Tim Hall Tricord Companies Builder Director Sean Halsey Halsey Homes Builder Director Allen Harrison Battlefield Homes Builder Director Pete McGuire Triple Crown Homes Builder Director Dan Sandoval Republic Home Builders Builder Director Teressa Taylor-Griffis Foundation Homes Associate Director Sara Fila Legacy Engineering Associate Director Rick Furnival Sullivan, Donahoe & Ingalls, PC Associate Director Emily Hall Spotsylvania Career & Tech Center Associate Director Bruce Reese Legacy Engineering, PC Associate Director Greg Schmidt Pest Solutions
Help us win the race by joining or renewing your membership in the month of April. Reach out to Maria at Mmoore@fabava.com for more information or visit FABAVA.com Thank you to all of our participants who joined our first derby update call on April 7th. With your help, FABA won the first mini challenge with the support of our members on that call. Join us each Wednesday for our updates using this link. You can also follow our race on social media.
We are off to the races with our April membership drive!
We are off to the races!