March 2021
FHFA Extends Moratorium on Foreclosures, Evictions
The Federal Housing Finance Agency has announced that Fannie Mae and Freddie Mac will extend their moratorium on single- family foreclosures and evictions until June 30, 2021. The foreclosure moratorium applies to Fannie Mae and Freddie Mac-backed single-family mortgages only. The eviction moratorium applies to properties that have been acquired by an Enterprise through foreclosure or deed-in-lieu of foreclosure transactions. The current moratoriums were set to expire on March 31, 2021. FHFA also announced that borrowers with a mortgage backed by Fannie Mae or Freddie Mac may be eligible for an additional three- month extension of COVID-19 forbearance. This additional three-month extension allows borrowers to be in forbearance for up to 18 months. Eligibility for the extension is limited to borrowers who are in a COVID-19 forbearance plan as of Feb. 28, 2021, and other limits may apply. Further, COVID-19 Payment Deferral for borrowers with a Fannie Mae or Freddie Mac-backed mortgage can now cover up to 18 months of missed payments. COVID-19 Payment Deferral allows borrowers to repay their missed payments at the time the home is sold, refinanced, or at mortgage maturity. Home owners and renters can visit consumerfinance.gov/housing for up-to-date information on their relief options, protections, and key deadlines.
Homeownership Is Top Source of Wealth The primary residence continued to be the largest asset on household balance sheets in 2019, according to the 2019 Survey of Consumer Finances. Home owners had a median net worth of $255,000 — more than 40 times the median net worth of renters ($6,300), which reflects both the value of homeownership and the difficulty in obtaining it. Primary residence repre- sented about 25% of household assets, surpassing other financial assets (20%), business interests (20%), and retirement accounts (15%).
Plan to Participate in Bringing Housing Home NAHB’s Bringing Housing Home® is an opportunity for members to conduct in- district meetings with their representatives and senators. These meetings are key to strengthening relationships with lawmakers and keeping housing a priority in Congress. HBA executive officers are encouraged to schedule meetings with their representatives during the week of May 3-7. NAHB staff can help facilitate these meetings. BUILD-PAC Awards Recognize Successes BUILD-PAC raised more than $3 million in the 2019-2020 election cycle. The BUILD-PAC Fundraising Awards recognize the states and individuals who helped make the recent election cycle a success. The state awards included: Top fundraising state – Texas; top fundraising state by member- ship – Connecticut; raised the most new money at an event – California; biggest increase in participation – Wisconsin; most new donors at a single fundraising event – Georgia; most new donors – Florida.
Lumber Prices Again Hit Record Highs Lumber prices have skyrocketed more than 180% since last spring, and this price spike has caused the price of an average new single-family home to increase by $24,386 since April 17, 2020, according to NAHB standard estimates of lumber used to build the average home. Similarly, the market value of the average new multifamily home has increased by $8,998 over the same period. The Random Lengths prices as of mid-February show the price of framing lumber topped $975 per thousand board feet — a 180% increase since last April when the price was roughly $350 per thousand board feet.
New Home Sales Edge Higher in January After a slight slowing at the end of 2020, new single- family home sales edged higher in January, increasing 4.3% to a 923,000 seasonally adjusted annual rate, according to estimates from the Census Bureau and HUD. Overall, the January sales rate was 19.3% higher than a year ago, as demand is supported by low interest rates, a renewed focus on the importance of housing, and solid demand in lower-density markets.
NAHB Awarded Grant to Promote Worker Mental Health
Remodeling Sector Looks Strong Spending on residential improvements will continue to grow at a healthy pace over the next two years, according to experts speaking at an online press conference hosted by NAHB Remodelers during the 2021 IBSx. After a significant decline in March and April 2020 at the onset of COVID-19, the remodeling market has since made more than a full recovery. NAHB economists predict that remodeling spending for owner-occupied single-family homes will increase 4% in 2021 and increase 2% in 2022. “The biggest factors prohibiting stronger growth are mainly the volatile material prices and labor shortages” said Paul Emrath Ph.D., NAHB’s Assistant Vice President for Surveys and Housing Policy Research. For more information about NAHB Remodelers, visit nahb.org/remodelers.
The American Society of Association Executives (ASAE) Research Foundation recently announced that NAHB has been selected as one of three 2021 Innovation Grants Program recipients for its project How Associations Can Promote Worker Wellbeing and Behavioral Health to Their Members. Over the last eight years, the ASAE Research Foundation has received more than 300 applications and awarded a total of 34 innovation grants to organizations of varied types, sizes, locations and industries. “The awardees selected this year reflected creativity and commitment to an innovation process with projects aligned to our theme of workforce development,” the ASAE Research Foundation said in a press release. The $10,000 grant will be used to develop resources as part of NAHB’s ongoing initiative on member mental health and wellbeing.
COVID Affects Buyer Preferences The COVID-19 pandemic is affecting the preferences of many home-buyer households, according to recent polling conducted by the National Association of Home Builders. NAHB asked recent and prospective home buyers how COVID-19 may have impacted their housing preferences. While 67% said the pandemic has not impacted their housing preferences in any way, one-quarter of respondents said the pandemic did have an impact, with households that have at least one teleworker and one virtual student being the most likely to feel such an impact. The biggest effect? A growing number of home buyers want a larger home, and they are more likely to want that home to be in the suburbs or the exurbs.
Leadership List 2021 GCBA Officers and Directors OFFICERS PRESIDENT Fred Pfister, Toll Brothers 1ST VP Rafael Roca, DR Horton 2ND VP Mike Brown, Heroic Construction ASSOCIATE VP Jason Handin, Ward Damon VP FINANCE Steve Karp, Melamed & Karp PA IMMEDIATE PAST PRESIDENT Jay Huebner, HSQ Group DIRECTORS Steven Dassa, Mattamy Homes Frank Coppola, Coppola Brothers Michael Nunziata, 13th Floor Homes Karl Albertson, DR Horton Irina Heyaime, Pulte Homes David Donvito, Minto Peggy West, GRS Community Management Josh Hedden, Hydroshield Ken Lebersfeld, Capitol Lighting Tony Macaluso, Team GFA Rick Baxter, Palm Beach Post Executive Officer: KT Catlin Design: Gregory J. Del Deo
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
Calendar of Events Check GCBA's Monday eMail for current Location & Registration Information. Tuesday, February 9 - Friday, February 12 IBSX Wednesday, January 17 FHBA Spring Leadership Thursday, February 18 FHBA Spring Leadership HHHH – Bar Louie / Location TBC Friday, February 19 FHBA Spring Leadership Friday, February 26 1 Hour MBA / 2-3:30PM Friday, March 5 Coffee & Conversation on ZOOM / 8:30AM Wednesday, March 24 Board of Directors Quarterly Meeting 5:30-7:30PM Friday, April 2 Coffee & Conversation on ZOOM / 8:30AM Monday, April 5 Boot Camp / 6-8PM Monday, April 12 Boot Camp / 6-8PM Friday, April 16 1 Hour MBA Part 2 / 2-3:30PM Monday, April 19 Boot Camp / 6-8PM Monday, April 26 Boot Camp / 6-8PM All dates and locations are subject to change. Check the GCBA Website for most current information.
CHECK WEBSITE FOR MOST CURRENT INFORMATION
OSHA Issues New COVID-19 Guidance OSHA has issued stronger safety guidance on preventing the spread of COVID-19 in the workplace. This guidance includes a recommendation for a workplace COVID-19 prevention program, which NAHB has made available to members since March 2020. The new OSHA guidance indicates that the agency might be working on an emergency temporary standard (ETS) on COVID-19 that would be enforceable by OSHA inspectors, with potential fines for non-compliance. NAHB has expressed the concerns of home builders about dealing with a potential ETS.
Lumber prices continue to rise, with pricing as of mid-February reaching new record highs. Other materials, such as gypsum and ready-mix concrete, are also experiencing price volatility. In addition, components such as interior doors, shingles, and cabinets are experiencing significant delays in delivery that make it more challenging for builders to construct homes efficiently and on time. As builders struggle with these front-end issues, they are also experiencing additional challenges on the backend, as appraisal standards make it difficult to recognize the full impact of sharp increases in the cost of building materials. In addition, appraisers often have limited access to information to accurately assess the value of a home. In order to best address these significant increases in the price of materials, it is important to understand that appraisers can incorporate three approaches to determine the value of a property: sales comparison, cost and income methods. Under the cost approach, the appraiser estimates what it would cost to rebuild or construct an equivalent structure. Because this component of property valuation considers the costs of materials used to construct the property, it is often very helpful in analyzing the value of a newly constructed home.
What You Should Know about Appraisals and Lumber Prices
Welcome to our Newest Members!
CLICK HERE TO LEARN MORE
Contact Us - FHBA Private Insurance Exchange Phone: (800) 282-8626 Fax: (904) 212-2058 Address: FHBA Member Benefits 10739 Deerwood Park Blvd. Suite 200-B Jacksonville, FL 32256
mEMBERSHIP NEWS
MEMBERS SAVINGS & REBATE PROGRAMS
GCBA 2021 TOP RECRUITERS HV Tremble - 24 Fred Pfister - 6 Walter Robles - 1 Mike Brown - 1 KT Catlin - 1 Tamara Ksiazek - 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!
Russel Lumsden, Remote Access Sales Suzanne Donohue, PGT Industries Brian Fuller, Wallcraft Custom Jeremy Chromik, Civic Financial Justin McClure, Crest Air Todd Hendershot, Smith & DeShields, Inc. Craig Maclaren-Taylor, Custom Touch Cleaning Susan Manning, All American Roofing Inc. Ryan Christopher, C & T Auto Holdings LLC Linda Black, Black Fire Protection Bertrand Bolduc, The Green Experts Andy McPherson, Lakes Electronics Daniel Becker, Paradise Exteriors Juan Barreneche, Amici Engineering Contractors LLC Leighton Powell, Zone Protection LLC Jeffrey Scott, Green Effect Inc. Ricardo Franco, Impact Site Development of Florida LLC Tom Triptow, On Site Alignment LLC John Ladue, Crumb’s Well Service Inc. Andrew Fleishman, Professional Fleet Maintenance LLC Desmond Patten, United Vertical Blinds LLC James Falzone, Doorman of SE Florida Inc. Omar McFarland, ARC Electric Inc. Comerford Belseri, SU Industries Inc. Zachary Wallick, Kairos Roofing LLC Ismael Vazquez, New Era Roofing Concepts Inc. Patricio Hochnadel, RX Tile and Stone Solutions Inc. Patrick Burke, Burke Roofing Services Inc. Frank Lubisky, Samartino Roofing Inc. Larry Cook, Certified HVAC LLC Carlos Currlin, Rechtien INTL Trucks Inc. Kitchen Art MosquitoNix Smash My Trash 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!
VIEW BRAD'S IBS PRESENTATION HERE
Thinking About the Build-for-Rent (BFR) Option By Brad Hunter The built-for-rent (BFR) wave started in Arizona and Texas and it is now starting to hit Florida. Builders are finding that there are benefits to build-for-rent and that there are multiple ways to get involved. I spoke at the virtual IBS (International Builders’ Show) on this topic, and I want to share some of the points that are most relevant to GCBA members here. The first point I have to make is that there is far more demand for single-family rentals than there is production, and it’s going to be that way for years. Institutional money has only recently turned its attention seriously to this niche, and the action around here is just getting started. Mind you, a builder doesn’t have to learn how to lease homes or build a new operational/leasing platform. Most builders choose to simply build the homes and sell them to a BFR operator. The main advantages to a builder are: You can eliminate all market risk. You will know that you will sell all the houses you build at a pre-determined price and at an assured pace. The BFR operator will close on your homes as soon as they get C.O. You can be more cost-efficient. You can build an entire subdivision with the exact same features in each home. There are no color selections, and that saves on costs. You don’t have to spend money on sales and marketing. There are also builders who want to get more deeply involved in the whole BFR food chain, and thereby make even more profit. Options along those lines can include: Joint venture with an operator Develop, stabilize, and then sell the operating asset Buy land, entitle, and develop, selling the finished lots Any combination of the above BFR or BTR? Although the terms are used interchangeably, a market study client of mine who is building for rent said that he sees a distinction between build-to-rent (BTR) and build-for-rent (BFR). The difference is: with build-to-rent, you build the homes and keep them, renting them yourself – a high risk, high-return strategy, but in build-for-rent, you are building homes FOR somebody else, and taking no risk. In thinking about the product you’ll build, you have many options, and they are all seeing market acceptance. The main categories are: Single-family detached Single-family attached such as duplexes Townhomes Horizontal Multifamily (Cottages) So far in South Florida, about 75% of the planned units I am tracking or studying are townhomes, but there are some single-family detached rentals coming up soon too. About 70% of my market study work these days is in built-for-rent (the rest being in for-sale housing or in rental apartments). Much of my work in BFR has been outside of Florida, but now the BFR wave is starting to reach our shores. One other advantage of built-for-rent is that you can develop in locations that are a bit further from the urban core than you can with for-sale. In many BFR projects that are up and running in the market, the rents that are being obtained are far higher than what had been expected. Demand is strong, and the demographics suggest that it will remain strong for years to come. Data from CoreLogic shows that homes priced below 75% of the local median price had 14% annual appreciation in the past year. Entry level homes are becoming ever less affordable, and as mortgage rates edge slightly higher, affordability will decline even further. This is part of the reason so many well-heeled groups are investing in built-for-rent single-family development.
Virtual Hill Days Tomorrow marks the first day of the 60-day Legislative Session. As we continue to navigate a legislative process that includes virtual member meetings, testifying before the Senate at the Leon County Civic Center, and strict registration protocols for House Committee appearances, we are asking all local building industry associations to please join us in scheduling meetings with your delegation members for the week of March 22nd. Now is a great time to begin reaching out to both Representatives and Senators from your area to ensure a place on their calendar between March 22-25. Although the FHBA lobbying team will be following hundreds of bills over the next two months, in preparation for meetings with your delegation members, the FHBA’s top priorities for the 2021 Legislative Session include Construction Defects, Impact Fees, the Florida Building Code and Building Permits. Read below for up-to-date information about each of these, and stay tuned throughout session for progress and opportunities to make your voice heard at the Capitol. Future Builders of America Announces Partnership with Home Builder Institute The Future Builders of America (FBA) has officially partnered with Home Builders Institute (HBI), posturing FBA for future growth nationwide. In 2019, the Future Builders of America Board of Directors (FBA) embarked on a strategic planning exercise resulting in the realization that in order to grow, FBA must affiliate in some fashion with an organization that offers curriculum which can be taught in high schools. “The need to partner with an organization that has approved curriculum in Florida naturally lead us to Home Builders Institute, which is affiliated with NAHB,”stated FBA President Ray Puzzitiello.“HBI supplies curriculum to nearly 40 high schools in Florida and has a footprint in other states. The perfect recipe to grow FBA.” This is an exciting time for FBA. FHBA will continue to support FBA by being active in the leadership summit and working with the various chapters in Florida. We look forward to seeing great things from FBA in the future. Complete Details On FHBA's Legislative Priorities Construction Defects Ahead of schedule, SB 270 and HB 21 will attempt to reform a statute that has been amended seven times since its creation in 2003. Signed into law by Governor Jeb Bush, Chapter 558.004 “Notice and Opportunity to Repair” was put in place to provide an alternative method to resolve construction disputes that would reduce the need for litigation and provide a contractor, subcontractor, supplier, design professional, or an insurer an opportunity to resolve the claim through repair or pre-suit settlement negotiations. Nearly two decades since its adoption, the notice and opportunity to repair statute has been taken advantage of by a small group of attorneys who provide one-hundred-page notices to contractors that lack specificity, use broad language, and exclude locations of the alleged defect. All with the intent to bypass the opportunity to repair and head to litigation. Although there is no perfect resolution, SB 270 and HB 21 move the statute closer to its original intent by defining material violation, requiring claimants to exhaust warranty options before seeking recourse under the statute, requiring visible proof with specific detail surrounding the defect, providing the claimant to attest that they have personal knowledge of the alleged defect, and ensuring a notice to mortgage of any 558 claim that resulted in a monetary settlement, the nature of the defect, and whether the defect was repaired following the financial settlement. Florida Building Code SB 1146 and HB 401 will prohibit building departments from requiring building contracts in permit applications. The legislation will also discourage local governments from bypassing the local technical amendment process to the Florida Building Code. We continue to see examples of jurisdictions placing building codes in their land development regulations. This provision will allow an affected party the opportunity to submit a complaint to the Florida Building Commission for a non-binding advisory opinion. Lastly, both bills will allow the Florida Building Commission to correct errors to the code by simplifying the procedures and not opening the process up to special interests. Impact Fees In response to jurisdictions that have doubled and tripled impact fees in the last year, SB 750 and HB 337 provide a definition of infrastructure, establish an annual cap on impact fee increases, ensure credits for exactions, prevent local governments from collecting undirected impact fees, and require a signed affidavit by the CFO of the local government attesting that all fees were collected and expended in full compliance with the law. Considerably, the two greatest provisions in the bill are the definition of infrastructure and the annual cap on impact fee increases. Defining infrastructure will help ensure fees are used for true capital expenditures (i.e., brick and mortar facilities) with a life expectancy of at least five years. The definition will ensure the removal of frivolous expenditures and help reign in impact fee studies. Lastly, capping impact fee increases annually will provide more predictability in the market and remove the sticker shock experienced in counties that have adopted 100 percent increases and implemented 80 percent of the increase just seven months later. Building Permits Following a productive House Regulatory Reform Committee hearing that included Past FHBA President, Bill Truex as a panelist. HB 1059 and its Senate companion were subsequently released containing language that would discourage layering and provide greater communication with the applicant. The legislation would require jurisdictions to post the status of each building permit application it receives on its website until the permit has been issued. The highlight of the bill is a provision that will finally place a penalty on local enforcement authorities who fail to meet their statutory deadlines. The bill will require local enforcement authorities to reduce permit fees by 10 percent if they fail to issue a building permit for a single-family residential dwelling within 30 business days. The bill includes another 10 percent permit fee reduction for every 10 business days thereafter. If a local enforcement authority returns the application for additional information and the builder responds within 30 days, the local enforcement authority will have just 10 days to request additional information or deem the application complete. Note: The legislation also has a similar provision to the “Florida Building Codes” legislation that prohibits jurisdictions from requiring contracts with building permit applications. Note: During the 2020 Legislative Session – 3,578 bills were filed; 207 passed. For the next 60 days the FHBA lobbying team and Governmental Affairs Committee Chairman, Garrett Anderson, will provide weekly updates every Thursday at 4:00 p.m. (EST) – beginning March 11th – via virtual committee meetings and weekly Monday emails. Stay tuned for the latest legislative updates.
2021 WINNER 5th Avenue Enclave Best in Region—South Atlantic Boca Raton, Florida Architect/Designer: Affiniti Architects Builder: National Custom Homes Developer: Brennan Estate Homes Interior Merchandiser: Interiors by Steven G. Interior Designer: Affiniti Architects Situated on Boca Raton’s Intracoastal Waterway, 5th Avenue Enclave reflects the modern aesthetic of the sophisticated neighborhood, and keeps pace with the with the emerging in-town energy. Part of the 5th Avenue Enclave Estates, the property encompasses 11,111 total square feet, with 7,910 square feet of interior living space. Living space includes two bedroom options: 5 bedrooms/5.5 bathrooms with a 952- sf bonus room or 7 bedrooms/7.5 bathrooms with no bonus room. The six-car, air-conditioned garage totals 2,038 sf with electric car charging capabilities. FROM THE JUDGES: "The privacy that the primary suite offers creates a zone for the back. The courtyard is remarkable, and having all three secondary bedrooms overlooking the courtyard is fantastic. The judges noted the challenge of the site and how the design team addressed it."
GCBA'S Official Printer
NAHB EDUCATOR OF THE YEAR STEVE HOFFACKER The National Association of Home Builders (NAHB) honored five individuals who have excelled in teaching NAHB education courses and who have displayed notable professionalism as NAHB educational designation holders, naming them the 2020 Educator and Designees of the Year. Educator of the Year, Steve Hoffacker, CAPS, is the founder of Steve Hoffacker & Associates LLC in West Palm Beach, Fla. As a widely respected aging‐in‐place, universal design and visibility advocate, instructor, author and consultant, he has more than 30 years of industry experience. In 2007, he launched the Remodelers Council at his local home builders association and began teaching the CAPS designation courses. Since then, he has enjoyed helping a variety of professionals attain their credentials to work more effectively with their aging‐in‐place clientele. Hoffacker also has served as a frequent resource on aging‐in‐place and universal design topics for journalists writing newspaper and magazine articles and for public presentations to both consumers and professionals.
GCBA'S Official Photographer