April 2021
Materials Costs, Higher Rates Dampen February Home Sales
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.
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.
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.
Sacramento Streamlines Approvals to Boost Production
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.
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.
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
Calendar of Events Check GCBA's Monday eMail for current Location & Registration Information. April 12 Boot Camp / 6-8PM Thursday April 15th Hard Hat Happy Hour 5:30 at ER Bradley Wednesday April 21st 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. Friday May 7th 8:30am Coffee & Conversation Wednesday May 19th 12 noon Builder Panel Wednesday May 26th SAVE THE DATE GOLF OUTING Wednesday June 15th -18th NAHB Spring Leadership Thursday June 24th Save the Date Cigar Night All dates and locations are subject to change.
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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
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.
Series Looks at Building and Selling High Performance Homes
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GCBA 2021 TOP RECRUITERS HV Tremble - 25 Fred Pfister - 8 KT Catlin - 2 Walter Robles - 1 Mike Brown - 1 Tamara Ksiazek - 1 Rick Baxter -1 Mark Anderson -1 Matthew Blum- 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!
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ASSOCIATES Mark Anderson, U.S. Bank Home Mortgage Jeffery Collamore, Kitchen Art Curtis Rapp, MosquitoNix Trish Scelfo, Smash My Trash - South East Florida Sophia Sophia, Smash My Trash Russel Wright, Wright Brothers Paintint INC Kevin Hughes, Equalrooter LLC BUILDER Elias Cortez, DynaServ Florida LLC. AFFILIATES Lauryn Calvert, Lauryn Calvert Tony Cardoza, U.S. Bank Home Mortgage Rob Nicol, Mullinax Ford 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!
HBI Acquires Future Builders of America The Home Builders Institute (HBI) announced it has acquired the programming, assets, and trademark of the Future Builders of America (FBA). “The Future Builders of America has been the great pride of participating Florida schools, students and sponsors,” said Ed Brady, HBI’s president and CEO. “With FBA now a part of HBI, we have the potential to serve thousands more young people nationwide.” “To create the next generation of America’s skilled workforce in residential construction will require our industry to attract more young people at the secondary school level,” said Brady. “As a career technical student organization, FBA scaled nationally could provide students everywhere the opportunity to gain the enthusiasm and abilities needed to be successful in building industry careers.” “That is our vision for FBA,” Brady added. “We have much work ahead to reach it.” FBA was launched in 2003 by the Florida Home Builders Association to link students with the local building community. It grew to 17 chapters across the state. Guest speakers and field trips to building sites, along with opportunities for summer and post-graduation employment, have helped introduce an estimated 3,500 participants to opportunities in the construction industry. “FBA and its dedicated supporters have built a sustained commitment to youth pursuing rewarding careers in construction and related trades,” said Cindy Hall, who has served as FBA’s executive director since 2016. “HBI’s acquisition of FBA means our students will have the benefit of HBI’s national network of resources and its industry-recognized skilled trades curriculum and certifications.” HBI trains skilled workers for the building industry. It is the nation’s leading provider of career technical education in construction. The independent nonprofit offers construction career training, certification programs, advance training, and job placement for more than 10,000 students each year. It is the largest residential construction trainer for the U.S. Department of Labor’s Job Corps, operating on 66 centers nationwide. “Through this agreement, HBI is the proud steward of an extraordinary initiative first created by Florida’s home building industry, an effort that has made a positive difference for thousands of bright, young Floridians,” said Hall, who will serve as HBI’s director of FBA programs. “We will continue to work closely with the Florida Home Builders Association and FBA donors to assure its continued success all across the U.S.” High schools participating in FBA can apply for a grant to fund implementation of HBI’s pre-apprenticeship curriculum in residential construction for students to earn industry-recognized credentials. Funded in part by The Home Depot Foundation and the National Housing Endowment, the “Schools-to-Skills” program is currently accepting applications. For more information, visit: www.hbi.org/s2s. Applications are due March 31, 2021. Visit http://www.hbi.org for more information on HBI and follow us on Twitter, Facebook, Instagram, and LinkedIn.
FHBA business meetings scheduled to take place during SEBC. Visit this link; Don't wait, register to attend SEBC now! Visit this link to register
FHBA business meetings scheduled to take place during SEBC. Visit this link.
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We Can't Wait To See You At The Southeast Building Conference Registration is now open for the 2021 Southeast Building Conference (SEBC). Don't miss the region's top event, returning better than ever to the Gaylord Palms Resort in Kissimmee, Fla. In addition to the FHBA conference meetings, SEBC features two days jam-packed with continuing education, networking and the region's best industry trade show.