June 2021
Builder Confidence Steady in May Despite Concerns
Builder confidence held stable in May, despite growing concerns over the price and availability of most building materials, including lumber. The latest NAHB/Wells Fargo Housing Market Index (HMI) shows that builder confidence in the market for newly built single-family homes was 83 in May, unchanged from the April reading. “Builder confidence in the market remains strong due to a lack of resale inventory, low mortgage interest rates, and a growing demographic of prospective home buyers,” said NAHB Chairman Chuck Fowke. “However, first-time and first-generation home buyers are particularly at risk for losing a purchase due to cost hikes associated with increasingly scarce material availability. Policymakers must take note and find ways to increase production of domestic building materials, including lumber and steel, and suspend tariffs on imports of construction materials.” “Low interest rates are supporting housing affordability in a market where the cost of most materials is rising,” said NAHB Chief Economist Robert Dietz. “In recent months, aggregate residential construction material costs were up 12% year over year, and our surveys suggest those costs are rising further. Some builders are slowing sales to manage their own supply chains, which means growing affordability challenges for a market in critical need of more inventory.” With labor and lot availability a challenge in many markets, Dietz cautioned that “home buyers should expect rising prices throughout 2021 as the cost of materials, land and labor continue to rise.”
New GFCI Requirement Causing Problems The Texas Department of Licensing & Regulation recently voted unanimously to delay until Jan. 1, 2023, requirements of section 210.8(F) of the 2020 National Electrical Code. A new requirement in the 2020 NEC requires a ground-fault circuit interrupter (GFCI) breaker to be installed on connections between a new home’s electrical system and the air conditioning condenser unit. Home owners and builders in Texas immediately began reporting issues with the GFCI breakers tripping when the air conditioner ran, sometimes tripping multiple times each day.
Emergency Rental Assistance Released The Treasury Department in May announced it is releasing $21.6 billion in funding for the second allotment of the Emergency Rental Assistance Program (ERAP). NAHB had urged White House officials to release the funds. The Treasury released its first $25 billion in rental assistance earlier this year. The Treasury also released a fact sheet that cites steps the Biden administration is taking to disburse the rental assistance. Indiana Water Rule Helps Home Builders Indiana Gov. Eric Holcomb (R) signed a state wetlands bill that ensures developers and builders in Indiana benefit from NAHB’s 2020 regulatory victory under the Trump administration’s Navigable Waters Protection Rule (NWPR). The measure is a victory for the Indiana Builders Association (IBA) and its members. The NWPR removes from federal control, and thereby federal wetlands permitting requirements under the Clean Water Act, all ephemeral features, such as streams and ditches.
Commerce Secretary Pledges Lumber Help Commerce Secretary Gina Raimondo acknowledged the depth of the lumber price crisis and its effects on the residential construction industry, home buyers and renters during a May 28 meeting with NAHB’s senior officer team. Secretary Raimondo and NAHB CEO Jerry Howard discussed working together on convening a summit that would include representatives from the U.S. government, the lumber supply chain and the home building industry.
What to Know about Vaccinations NAHB is urging home builders to encourage their work- ers and subcontractors to get vaccinated. Resources are available on nahb.org. But there is some complexity around businesses urging vaccination. If an employer incentivizes its employees to get vaccinated (with time off, money or other reward), employees who are not able to receive the vaccine should still be eligible to get the incentive, otherwise it could be seen as unequal treatment and give rise to discrimination claims.
Regulatory Costs Add $93,870 to Price of New Home
EPA Proposes New CGP The U.S. Environmental Protection Agency on May 12 published the proposed 2022 Construction General Permit (CGP) in the Federal Register. The current 2017 CGP permit is in effect until Feb. 16, 2022, when the final 2022 CGP will become effective for five years. Public comments on the proposed 2022 CGP will be accepted until July 12, and NAHB will submit comments on behalf of the home building industry. EPA’s CGP authorizes stormwater discharges from land development and construction activities. They are the most common environmental permit residential developers and builders must obtain. The proposed 2022 CGP includes new notification, recordkeeping, and documentation requirements.
Regulations imposed by all levels of govern- ment account for $93,879, or 23.8% of the current average sales price ($397,300) of a new single-family home, according to a new study by NAHB. Of the $93,870, $41,330 is due to regulation during development, and $52,540 is due to regulation during construction. The study illustrates how overregulation is exacerbating the nation’s housing afford- ability crisis and that policymakers need to take bold steps to reduce or eliminate unnecessary regulations that will help builders increase the production of quality, affordable housing to meet growing market demand. While NAHB’s previous regulatory estimates in a 2016 study were fairly similar, the price of new homes increased substantially in the interim. The data show an estimate that regulatory costs in an average home built for sale went from $84,671 to $93,879 — a 10.9% increase during the five-year span between NAHB’s 2016 and 2021 estimates.
Biden EO Affects Housing President Joe Biden on May 21 signed a sweeping executive order on climate change entitled “Executive Order on Climate-Related Financial Risk.” Of note to the housing community, the executive order (EO) will reinstate the 2015 Obama-era Federal Flood Risk Manage- ment Standard (FFRMS) which was revoked by the Trump administration. NAHB opposed the 2015 FFRMS because it would dramatically expand regulated floodplain areas without congressional oversight. The EO also requires the secretaries of Agriculture, HUD and Veterans Affairs to consider approaches to better integrate climate-related financial risk into underwriting standards and loan terms and conditions, as related to their federal lending policies and programs.
Calendar of Events Check GCBA's Monday eMail for current Location & Registration Information. Wednesday, June 15-18, 2021 NAHB Spring Leadership Thursday, June 24, 2021 Board Meeting Tuesday, June 29, 2021 Networking and Community Tour Thursday & Friday, July 15 & 16, 2021 SEBC / Orlando, FL Tuesday, July 27, 2021 Meet The Builder - DR HORTON Thursday, September 9, 2021 FHBA EO & State Rep. Blaze Ingolia Thursday, September 23, 2021 PRISM 2021 October 20 - November 20, 2021 SouthEast Florida Parade of Homes All dates and locations are subject to change.
Leadership List 2021 GCBA Officers and Directors OFFICERS PRESIDENT Fred Pfister, Toll Brothers 1ST VP Rafael Roca, DR Horton 2ND VP Michael Nunziata, 13th Floor Homes ASSOCIATE VP Tony Macaluso, Universal Engineering Sciences VP FINANCE Steve Karp, Melamed & Karp PA IMMEDIATE PAST PRESIDENT Jay Huebner, HSQ Group DIRECTORS Steven Dassa, Mattamy Homes Frank Coppola, Coppola Brothers Herb Tremble, Master Contractor and Subcontractor Association of Florida Karl Albertson, DR Horton Irina Heyaime, Pulte Homes David Donvito, Minto Peggy West, GRS Community Management Josh Hedden, Hydroshield Ken Lebersfeld, Capitol Lighting Lisbeth Linert, Clive Daniel Home Rick Baxter, Palm Beach Post Executive Officer: KT Catlin Design: Gregory J. Del Deo
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If you are interested in serving on the Board and/or Becoming an Office please contact KT at 561-228-6137 or KT@GCBAFlorida.com
The NAHB/NAR Home Performance Counts: Virtual Green Home Tour Series continues in June from Santa Fe, New Mexico. Join Mark and Leslie Giorgetti of Palo Santo Designs LLC on June 17 at 3pm ET for a tour of their stunning home, featured in the 2020 SFAHBA Hacienda Parade of Homes. A live Q&A with Mark and Leslie, joined by former SFAHBA Executive Officer Kim Shanahan, will take place immediately after the tour. Register at nahb.org/greentour. About the home: “Sustainability seamlessly fuses with high architectural design and exceptional craftsmanship in this 5,415 square foot Modern Farmhouse. Features include a super-insulated shell, pumice- crete walls, passive-solar design, solar photovoltaics, food production as part of the landscape design and rainwater reuse for both irrigation and toilet flushing.” 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. A replay library is available if you miss a presentation. 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.
Virtual Green Home Tour Continues in Santa Fe
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Associates Ameristar Construction Consultants, LLC Angel Water, Inc. Asadorian, Inc. BrightView Landscape Services, Inc. Catalyst Solar Congruity HR ConStructured Cabling Group, Inc. EBL Services Intelli-Tec Security MSG Concepts, Inc. New York Life Securities LLC Nexgen Enterprises, LLC RunBrook Structural Insulated Panel Assn. (SIPA) Style for Life Interiors, LLC Top of Mind Public Relations U.S. Bank Home Mortgage Water Restoration Solutions Wisch and Jackson Co. of Florida, Inc. YG AC AND ELECTRIC SERVICES, LLC Builders AAA Custom Pools, Inc. AV2E Electrical Services, LLC If you sponsored one of these individuals please let KT or Robin know! We will be having year long contests and recognition for Recruiting & Retention!
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GCBA 2021 TOP RECRUITERS HV Tremble - 28 Fred Pfister - 13 KT Catlin - 8 Rafael Roca - 2 Greg Garnish - 1 Walter Robles - 1 Mike Brown - 1 Tamara Ksiazek - 1 Rick Baxter - 1 Mark Anderson - 1 Matthew Blum - 1 Frank Williams - 1 Eduardo Aleman - 1 Peggy West - 1 Laurie Albert - 1 Marcia Wegman - 1 Deb Giarratana - 1 Devin Perry - 1 Michael Nunziata - 1 GCBA SPIKE CLUB Members reach the GCBA Spike Club once you recruit 5 or more members in the current year. GCBA Spike Club Members will be recognized at Board Meetings & more!
1st Place: Sherwin Williams Team Todd Dolen, Rodney Morris, Ryan Ortyl, Gordon Taylor 2nd Place: Distinctive Kitchens & Baths Adam Canter, Randy Smith, Arnie Canter, Graham Davidson 3rd Place: D R Horton Rafael Roca, Brent Porter, Gary Brunk, Michelle Mochenhauf Long Drive (Men): Graham Davidson Closest to Pin - Hole 6: Randy Smith Closest to Pin - Hole 16: Howard Berkowitz Straightest Drive: Brian Jones
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Google started the target marketing game in the late 90’s and today, pay-per-click advertising for popular search terms like ‘new homes’ can be competitive and costly. What if there is a better way to reach your target market of new home shoppers? There is! The Gold Coast Builders Association has a unique opportunity to reach new home shoppers looking for new homes in West Palm Beach, FL no matter where they are searching from through a sponsorship of the 2021 Virtual Parade of Homes. This year Gold Coast added high tech to their opportunity for local builders and sponsors to reach new home shoppers through a partnership and expansive advertising campaign with NewHomeSource.com, the leading new home listings website. You could claim your space in all of the outgoing advertising to active, high quality new home shoppers. The Virtual Parade of Homes kicks off in the fall, but will be promoted on NewHomeSource.com for 10 months, putting your brand front and center in front of home shoppers. Be a part of the action and don’t waste time and money chasing a generic audience. We’ve got the buyers that you are looking for. Contact KT Catlin to learn more about available sponsorships.