FREDERICKSBURG AREA BUILDERS ASSOCIATION
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Sales of newly built, single-family homes rose to their highest level since the Great Recession, up 13.8% to a seasonally adjusted annual rate of 776,000 units in June, according to recently released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The June rate is 6.9% higher than the June 2019 pace.
Inventory fell to a 4.7 months’ supply, with 307,000 new single-family homes for sale, 7% lower than June 2019. The current months’ supply is the lowest since 2016. Of the inventory total, just 69,000 are completed, ready to occupy. The median sales price was $329,200. The median price of a new home sale a year earlier was $311,800.
Regionally, year-to-date, new home sales were up in all four regions: 22% in the Northeast, 12.6% in the Midwest, 0.2% in the South, and 3.1% in the West.
Builders are dealing with a number of supply-side concerns such as rising material costs, particularly lumber, which recently surpassed its 2018 price peak. But low inventory levels point to construction gains ahead.
Residential construction remains one of the bright spots amid the current coronavirus-caused downturn. Economic indicators suggest housing is poised to lead the nation’s economy back to full strength when the current crisis resolves.
Volume 4: Issue 8 August 2020
FREDERICKSBURG - STAFFORD - SPOTSYLVANIA - CAROLINE - KING GEORGE - ORANGE
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New Home Sales Reach Highest Level Since Great Recession
HUD Terminates Fair Housing Rule
HUD Secretary Ben Carson recently announced that his agency will terminate the Obama-era Affirmatively Furthering Fair Housing (AFFH) regulation issued in 2015, calling the rule "unworkable."
The Preserving Community and Neighborhood Choice final rule replaces the 2015 AFFH regulation and 1994 Analysis of Impediments (AI) requirements. NAHB is reviewing the final rule.
In a victory for NAHB and its members, the Internal Revenue Service recently announced temporary relief from certain requirements under Section 42 of the IRS code for Low-Income Housing Tax Credit (LIHTC) projects.
In general, under IRS Notice 2020-53, deadlines occurring between April 1, 2020, and Dec. 31, 2020, are postponed until Dec. 31, 2020. Agencies are not required to conduct compliance monitoring inspections during this time.
Wade Confirmed as FHA Commissioner
The U.S. Senate voted on July 28 to confirm Dana Wade as the new FHA Commissioner. NAHB Chairman Chuck Fowke lauded Wade’s confirmation amid the challenges caused by the COVID-19 pandemic.
“NAHB looks forward to working with the new FHA commissioner to mitigate the effects of the outbreak on the housing community and to ease regulatory burdens exacerbating the nation’s housing affordability crisis," Fowke said.
Products Used in Home Construction
NAHB analysis of government data indicates that new single-family and multifamily construction used about $94.9 billion in building products in 2019. The vast majority of that amount was produced domestically, supporting jobs in the U.S. manufacturing sector, but about $6.1 billion was imported from other countries. Among the major product categories, new residential construction in 2019 used more than $11 billion each of “cement and concrete products” and “architectural and structural metals.” The analysis looked at 51 building materials categories.
Lumber Prices Hit Two-Year High
The Random Lengths Framing Composite Price hit $523 per 1,000 board feet for the week ending July 10, the first time prices have topped $500 since July 2018. Lumber prices have risen 50% since April 17, 2020.
Several factors are driving rising prices. Some mills closed in the spring due to stay-at-home and social distancing measures. Mills that remained open vastly underestimated demand. Producers did not anticipate the massive uptick in demand from do-it-yourselfers during the pandemic. And housing weathered the storm much better than most anticipated.
NAHB’s 80,000 Associate members account for roughly two-thirds (68%) of total membership.
The largest share of Associate members – 43% – are subcontractors or specialty trade contractors, according to the 2019 annual member census conducted by NAHB’s economics department.
Roughly 13% of Associate members work in professional specialties such as legal services, accounting, and engineering. About 11% work in retail dealerships. Another 8% are employed in various financial services, including banking,
title companies and insurance, and 4% work in wholesale dealerships or distributorships. Roughly 20% listed “other associate” as their primary activity.
The median annual company revenue among Associate members was $2.2 million in 2019, down from a median of $2.5 million in 2018. A quarter of Associates (25%) reported annual revenues under $500,000. The largest group (32%) reported incomes of $1 million to $4.99 million.
The median age of Associates was 56. More than half of Associate members (53%) have earned a bachelor’s degree or higher.
NAHB, NAR Look at Sustainability
NAHB and the National Association of Realtors® have launched a joint initiative
to inform consumers about the high- performance home market.
Through the joint Home Performance Counts initiative, NAHB and NAR have come together to offer a comprehensive resource that informs consumers about the qualities and benefits of high-performance homes and facilitates communication on home performance between buyers, builders and real estate agents.
Demand for high-performance homes has expanded in recent years, with the number of homes certified to the National Green Building Standard® increasing by more than 57% since 2017. These are homes that prioritize comfort, sustainability, wellness, resource efficiency and affordability.
A New Look at Design Standards
Local governments use design regulations to ensure the health, safety and welfare of residents. But excessive regulations that price lower- and moderate-income families out of the market should not be prioritized over the need to address the housing affordability problem.
Examples of highly prescriptive design standards include prohibiting the use of exterior materials such as vinyl siding, mandating minimum roof pitch, and dictating the amount of surface area that must be dedicated to windows.
A new document from NAHB, “Residential Design Standards: How Stringent Regulations Restrict Affordability and Choice,” explains how these standards harm low- and moderate-income families, and suggests policy alternatives.
Subcontractors Largest Share of NAHB's Associate Membership
Last month, we said a final goodbye to two beloved FABA members.
Please take a moment to reflect upon the impact that these men had on not only our association and industry but also on their community.
Curtis Franklin Powell
- E.F. Powell and Son, General contracting specializing in historic preservation
- FABA president in 1969, 1970, 1971, and 1974
- Inducted into the FABA Hall of Fame in 2000
- HBAV Board of Directors – 1969, 1970, 1971, 1974
Curtis Franklin Powell, 88, passed from this life into the presence of his Lord and Savior on Saturday, June 27, 2020. Franklin Powell was a life-long resident of the City of Fredericksburg and businessman until his last days. Mr. Powell was born on December 7, 1931 to Eugene Franklin and Ruth Noelle Powell.
He graduated from James Monroe High School in 1950, a four-sport letterman and founding member of The Key Club. His life was marked by many personal and professional accomplishments. On February 22, 1950, he threw a silver dollar across the Rappahannock River as part of the George Washington Birthday celebration. He attended Richmond College, but left to join the United States Marine Corps to serve during the era of the Korean War. He returned to Fredericksburg three years later to embark on his career as a general contractor and historic restorationist. Returning to Fredericksburg, he met the love of his life, Virginia Hill Powell, who was his neighbor on Weedon Street. Their love for each other continued for 67 years. His life knew many passions, principal among them his three daughters and their families. Carolyn Powell Brammer (Bob) and grandson Douglas; Cathy Powell Carpenter (John) and grandsons Robert and David; and Ann Powell Sniffin (Ted) and grandchildren Christopher and Rebecca Ann.
His career knew no end; he loved his work and carried on until his last days. He led several businesses concurrently, the flagship business being his general contracting business, E.F. Powell and Son. He had a passion for historic preservation and revived many historic public and private properties in and around Fredericksburg, including Historic Kenmore, the Presbyterian Church of Fredericksburg, Smithsonia, the dormitories of the University of Mary Washington, and many plantation homes in the counties surrounding Fredericksburg. He was recognized by the Kenmore Association for his renovation of Historic Kenmore in 1980.
He was an avid bird hunter and competitive shooter. He was a State Champion Skeet shooter; lifetime member of the National Skeet Shooting Association; and founding member of the Fredericksburg Rod and Gun Club. He spent countless hours there shooting skeet, and when asked, he would estimate he had shot 500,000 clays.
Franklin was also a leader in the community. He served on the Fredericksburg City Council. He was a life-long member of the Fredericksburg United Methodist Church, where he served as a youth and adult Bible study leader for decades. Later in life, he worshipped at Fredericksburg Baptist Church. He was a founding member of The Cavalier Club of Fredericksburg and a member of the Fredericksburg Jaycees, Rotary, and Elks. He was also a member of the Fredericksburg Masonic Lodge, the Acca Temple, and the Scottish Rite. He served as the President of the Fredericksburg Area Builders Association and was inducted into its Hall of Fame in 2000.
Franklin lived his life to the fullest and with no regrets. He and Virginia traveled the world, visiting over 50 countries during their adventures together. No matter where he went, he never met a stranger. He had the gift of making everyone feel like they were a dear friend. He always said "I've enjoyed my life immensely. I have no regrets. When I'm gone, don't be sad. Throw a party."
The dedication and achievements of Mr Powell and Mr Elliott will have a lasting impact on FABA, the building industry and our amazing community.
JULES ELLIOTT, FABA Life Director
Jules Lombard Elliott, Civil Engineer and Homebuilder, went to be with the Lord July 21, 2020 in Palm Coast, Florida. Jules was born September 29, 1939 in Jacksonville, Florida. He is survived by daughters Julie Young (Phillip), Laura Quinones (Mark), son David Elliott (Tricia); grandsons Ryan Hayman, Hunter Hayman; granddaughters Hannah Ross, Zoe Elliott and Mia Elliott, an older brother Patrick Elliott (Holly), nephew Paul Elliott (Youngsun) and great nephew Nathan Elliott. He attended the University of Florida on a full track scholarship and graduated 1st in his class with a degree in Civil Engineering. As owner of Olde Colony Homes he won many distinguished awards from both Fredericksburg Area Builders Association and Home Builders Association of Virginia, also serving as a Director with NAHB. His accomplishments included President (State) of HBAV 1991, Hall of Fame 1996, Builder of the Year 1993 & 1999, Life Director; President of FABA 1985-1986, Builder of the Year 1989, President's Award 1995, 1999 & 2010, Life Director, James L. Carver Lifetime Achievement Award 2005, Hall of Fame 1998. In 2004 the FABA Jules L Elliott Legislative Award was started. NAHB Leadership Council National Director 1985-93. Jules enjoyed traveling around the world and loved to play golf with his friends at FCC. As an avid Gator fan, he could often be seen driving around town in his "Gator mobile". He was known to be a very generous man who often gave to others who were in need of financial help. He will be greatly missed by his family and friends.
Fredericksburg Area Builders Association (FABA) Acheivements:
- Olde Colony Homes
- FABA president in 1985 and 1986
- FABA Life Director
- Inducted into the FABA Hall of Fame in 1998
- FABA Builder of the Year in 1989
- FABA President’s Award - 1995, 1999, 2010
- FABA James L. Carver Lifetime Achievement AWARD in 2005
- The Jules L. Elliott Legislative Award was established in 2004 to recognize a FABA member who demonstrates exceptional committment to Legislative Advocacy
Home Builders Association of Virginia (HBAV) Achievements:
- HBAV (state) president - 1991
- Inducted into the HBAV (State) Hall of Fame - 1996
- HBAV (State) Life Director
- Awarded HBAV (State) Builder of the Year in 1993 and 1999, Olde Colony Homes
- Jules Elliott was very supportive of the HBAV Political Action Fund and he actively served on HBAV Legislative and PAC committee
National Home Builders Association (NAHB) Achievements:
- NAHB (National) Director
- NAHB member of NAHB, HBAV, and Fredericksburg Area Builders Association from 1982 – 2011
- NAHB Leadership Council National Director 1/1/1985-1993,
- NAHB Life Director 1995 - 2004
- NAHB Senior Life Director 2005 – 2020
- NAHB Construction, Codes & Standards member 2000 – 2002
- NAHB National Representative 1994 – 1995
Virginia Department of Labor and Industry issues emergency regulations governing employers’ obligations regarding Infectious Disease Prevention
This emergency temporary standard is designed to establish requirements for employers to control, prevent, and mitigate the spread of SARS-CoV-2, the virus that causes coronavirus disease 2019 (COVID-19) to and among employees and employers.
On July 15, 2020, Virginia became the first state in the country to adopt an Emergency Standard effective July 27, 2020. Although now in effect, employers will not have to do training with their employees on infectious disease preparedness and response plans until 60 days after the Emergency Standard is adopted. Virginia employers will need to comply with the Emergency Standard and, in some cases, revise policies and procedures for dealing with their workforces as soon as possible or potentially face VDOLI enforcement actions. HBAV will host a webinar in the next few weeks to provide further information as to how this affects the Building Industry.
Click here for more information.
Additional details and the complete emergency standard can be found at the links below:
Here are the regulations.
The following resources have been collected to help you navigate these new regulations.
DEPARTMENT OF LABOR RESOURCES:
A Link to the Department of Labor and Industry’s Resources Page
A Link to the Infectious Disease Preparedness and Response Plan Template
(Required of all employers with eleven (11) employees or more that are considered “Medium Risk,” which is a majority of employers.
A Link to the Virginia Occupational Safety and Health Program’s Key Information Guidance.
Williams Mullen Legal Briefing
Text of Regulation
DOLI Outreach, Education and Training
LEARN MORE ABOUT HOW THE EMERGENCY REGULATIONS AFFECT YOU AND YOUR EMPLOYEES
FABA/HBAV MEMBERS ONLY WEBINAR:
HBAV Webinar for FABA Members on August 7, 2020 | 10:00 am
Join HBAV and David Burton, partner at Williams Mullen, who will cover the requirements to comply with the Virginia Department of Labor’s Emergency Regulations. You must register in advance for this members only webinar.CLICK HERE to register.
The following topics will be covered:
Outline of DOLI Emergency Regulations
Virginia Employer Requirements to Comply
Resources for Compliance
Deadlines for Employer Compliance
ADDITIONAL INFORMATION AND RESOURCES FROM THE FREDERICKSBURG CHAMBER OF COMMERCE:
A webinar from the Virginia Chamber of Commercediscussing the final regulation and its impact on Virginia Businesses.
A PowerPoint brief prepared by the Chamber’s Government Affairs team walking you through the basics.
Disclaimer: This is not intended to be or should be construed to be legal advice.On August 4, 2020, the Fredericksburg Regional Chamber of Commerce will host a webinar answering questions about the regulations and walking through the requirements, including the Infectious Disease Preparedness and Response Plan.
You must register for that event here.
2020 Virginia Dept of Labor Update
2020 Virginia Legislative Update
July 1st has arrived and hundreds of new laws, passed during the 2020 Session of the Virginia General Assembly, become effective today. Included below are several resources for members of FABA and HBAV to learn more about the new laws related to housing, land-use, development, construction, environmental regulations, labor and other topics - and also some reminders about what bills did not become law this year.
Building Industry Related Legislation
Earlier this year, we shared the HBAV General Assembly Review. This documebt highlights over 50 of the 250 bills that HBAV sought to pass, defeat, or amend during the 2020 Session. As you will see, the General Assembly considered a wide array of legislation related to the single-family and multi-family residential land development and construction industry.
Changes to Virginia Laws
The Division of Legislative Services has released it’s annual In Due Course – 2020 Changes to Virginia’s Laws publication. This document is a selection of legislation passed by the 2020 Session of the General Assembly that is likely to affect the daily lives of citizens in Virginia.
The Virginia Department of Tax has released the 2020 Legislative Summary which provides an overview of state and local tax legislation enacted by the 2020 Session of the Virginia General Assembly. Please review the Department’s overview here for any changes that may impact your personal or business tax liability.
HBAV’s General Counsel, Williams Mullen, recently published an overview of Virginia’s new Wage Theft Law. “Virginia Wage Theft Law Brings New Duties and Steep Penalties for General Contractors”examines a series of bills signed by Governor Northam related to the non-payment of wages. These changes to Virginia’s wage payment laws significantly increase potential penalties against employers who fail to properly pay employees wages, and the laws also stack additional burdens on general contractors to ensure that their subcontractors are adhering to the law. This alert highlights several critical changes that Virginia employers – particularly those who work with subcontractors – need to know and be prepared for. Click here to read more.
All FABA service area Countiy and City offices are now open to the public with limited contact and social distancing rules. Please call each county office before visiting to confirm specifics. All counties still recommend use of online services whenever possible.
CLICK HERE FOR PRINTABLE POSTERS AND RESOURCES TO HELP PROTECT YOUR EMPLOYEES, AND THE PUBLIC AT JOB SITES, AND WORK PLACES
CDC: Resources for Large Community Events & Mass Gatherings
ASAE: Issue Roundup: Coronavirus Disease (COVID-19)
World Health Organization (WHO)
Virginia Department of Health (VDH)
MPI: Coronavirus Resources for Meeting Professionals
PCMA: What Business Events Professionals Need to Know About the COVID-19 Coronavirus
IAEE: Coronavirus Resources
Department of Labor’s (DOL’s) has issued two new posters notifying employees of the Families First Coronavirus Response Act (FFCRA), which must be posted or otherwise communicated to workers by April 1, 2020. The DOL recently made minor updates to the non-federal employee poster. Below, please find the revised posters:
Non-Federal Employee Rights|Spanish
Federal Employee Rights|Spanish
The Associates Advisory Council meets the second Wednesday of each month at 9 am. This committee is chaired by the Associate Vice President and plans and organizes several FABA events, and keeps the association focused on the needs of all members.
August 10th, 9:00AM
Click here for Zoom log in
Spotsylvania County Bi-Monthly Meeting
August 10th, 3:00PM
Click here for Zoom log in
Spotsylvania County Builders Roundtable
King George County Quarterly Meeting
Fredericksburg City Quarterly Meeting
Calendar at a Glance
Upcoming County Meetings
We are working to schedule these events safely. Please save these dates:
August 10th - Twilight Golf Outing at Fawn Lake
August 10th - Red Cross Blood Drive
August 20th - Hard Hat Networking
FABA and PVBIA at
Wilderness Run Winery
sponsored by The Childress Agency
September 15th - Disc Golf
October 1st - Parade of Homes Awards
October 8th - Fall Golf
November 5th - Annual Meeting
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.
Last Call for Golfers!
Last day to register is Wed. Aug 5!
Thank you for your continued support of the Fredericksburg Area Builders Association and the Building Industry in Virginia.
New and Renewed FABA Members (July 2020)
New Associate Members
Aero Services of Virginia
Dominion Energy Rater Group
Renewed Builder Members
American Heritage Homes
Augustine Homes LLC
Foundation Homes Inc
Halsey Homes Corporation
Thompson Building Corp
Renewed Associate Members
2-10 Home Buyers Warranty
Dillard Alarm Company
Mid SouthBuilding Supply
Signature Home Settlements LLC
The Carpet House
Thank you to all of our
Cornerstone Sponsors and Advertisers
Don't forget to refresh or submit your ads!
FABA works to educate, promote and represent the building industry while enhancing the region’s quality of life.
FAB Foundation Workforce Grant
The FAB Foundation is chaired by group of voluntary directors who work to help the Fredericksburg area community through several initiatives.
FAB financially supports non-profit organizations in the Fredericksburg region that specifically coordinate and provide home repair and safer living conditions for those in need. Helping make repairs and improvements related to home ownership affordable.
With a greater emphasis on the growing need for Workforce Development in our region, FAB has partnered with local educators and has established two local NAHB Student Chapters in Stafford and Spotsylvania counties, and will continue working toward the establishment of student chapters in all the municipalities that we serve.
FAB Foundation has grant opportunities available for those looking to learn a trade and to potentially partner with member mentors and job placement opportunities. For more information on all the good that FAB Foundation does, call Maria Moore, Fredericksburg Area Builders Association Executive Vice President, at 540-898-2730, email at email@example.com, or go to www.fabava.com and select FAB Foundation tab.
Wow! One hard-working Spotsylvania Career & Tech Center student will be going on a Lowe’s shopping spree courtesy of FAB Foundation! This student will shop with SCTC instructors who will help select and purchase the tools needed for a new career in the building industry trades. If you know of a student pursuing a career in the building trades, please have them reach out to find out more about these
FAB Foundation Workforce Grants.
2020 FABA Board of Directors
Spaces Design Studio
1st Vice President
Assurance Financial Group
2nd Vice President
Immediate Past President
Associate Vice President
Embrace Home Loans
J. Hall Homes
Republic Home Builders
Legacy Engineering, PC
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 - third Thursday of the month at 8:30 am.
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 invoived with these students, contact FABA for more information.
Part of being a great volunteer is loving what you're doing. Find something that you're passionate about or something that inspires you, and then find a need in your community. There are dozens of reasons why you should volunteer - you just need to find the one that feels right.
20 GREAT REASONS TO VOLUNTEER
- Help others
- Make a difference
- Find purpose
· Enjoy a meaningful conversation
· Connect with your community
· Feel involved
· Contribute to a cause you care
· Use your skills in a productive way
· Develop new skills
· Meet new people
· Explore new areas of interest
· Meet good people
· Impress your mom
· Impress yourself
· Expand your horizons
· Get out of the house
· Make new friends
· Strengthen your resume
· Feel better about yourself
The Community Service Committee plans and organizes FABA's outreach and service in the local community and partners with members and non-profit groups to find ways to give back.
NEWS AND HAPPENINGS
Send us your press releases, news, and event information! We can post it here in our newsletter and on the Member Happenings page of our website!
Contact firstname.lastname@example.org for more information.
Red Cross Blood Drive
Many of us in the great Fredericksburg area are coming together to help save lives by supporting our blood drive. Every unit we donate at our blood drive can help save up to three lives. Each recipient of that blood donation has his or her own story. Our impact goes beyond that patient – it is multiplied by the impact it has on that person’s loved ones who are thankful for the unit we donated. For an appointment:
Or go to redcrossblood.org, sponsor code FABA
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