FREDERICKSBURG - STAFFORD - SPOTSYLVANIA - CAROLINE - KING GEORGE - ORANGE - CULPEPER
August 2022
BUILDERS FRAMEWORK
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FREDERICKSBURG AREA BUILDERS ASSOCIATION
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Volume 6: Issue 8 August 2022
Single-Family Starts Fall to Two-Year Low
Increased interest rates, building material supply chain bottlenecks and elevated construction costs continue to put a damper on the single-family housing market. For the first time since June 2020, both single-family starts and permits fell below a 1 million annual pace. Overall housing starts fell 2.0% to a seasonally adjusted annual rate of 1.56 million units in June from an upwardly revised reading the previous month, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The June reading of 1.56 million starts is the number of housing units builders would begin if development kept this pace for the next 12 months. Within this overall number, single-family starts decreased 8.1% to a 982,000 seasonally adjusted annual rate. This is the lowest single-family starts pace since June 2020. The multifamily sector, which includes apartment buildings and
condos, increased 10.3% to an annualized 577,000 pace. On a regional and year-to-date basis, combined single-family and multifamily starts are 4.4% lower in the Northeast, 4.7% higher in the Midwest, 11.1% higher in the South and 0.4% lower in the West. Overall permits decreased 0.6% to a 1.69 million unit annualized rate in June. Single-family permits decreased 8.0% to a 967,000 unit rate. Multifamily permits increased 11.5% to an annualized 718,000 pace.
Lumber Adds $14K to New Home Price Lumber prices have been volatile since April 2020, hitting record highs while also experiencing periods of substantial declines. Between April 2020 and July 2022, softwood lumber prices have increased enough to add $14,345 to the price of an average new single-family home, and $5,511 to the market value of an average new multifamily home, according to NAHB’s latest estimates. Based on July 1 Random Lengths prices, the costs have risen to $29,407 for the softwood lumber products in an average single-family home, and $10,734 for the products in an average multifamily home.
Apply Now for NAHB Awards NAHB Industry Awards are OPEN! Each year, NAHB recognizes the best of the best in our industry. Our prestigious awards celebrate, honor and recognize excellence. As an award winner, the spotlight shines on your business with year-long promotion. So, gather your photos and write descriptions of your stellar projects. Shout out your biggest accomplishments and get the recognition you deserve! Find the award program that’s right for your business and enter.
Make Plans to Attend Building Systems Summit Make plans to attend the Building Systems Housing Summit in Atlanta, Ga., Sept. 18-20, 2022. The summit is the premier conference dedicated to offsite construction and provides the opportunity to meet, learn from, and interact with prominent and influential members of the building systems industry. Top modular, panelized, concrete, log and timber home manufac- turers and builders will connect with suppliers from all over the country to network and participate in educational programs. OSHA to Emphasize Excavation Safety OSHA has announced that its inspectors and enforcement staff will "consider every available tool at the agency’s disposal” – including criminal referrals – to help stem a dramatic spike in deaths from trenching and excavation accidents. In the first half of this year, 22 workers have died in trenching accidents compared to just 15 in the entire year 2021. NAHB has a video toolbox talk builders can use to present to their workers and subcontractors, and additional resources in the NAHB Trenching and Excavation Toolkit.
NAHB Offers Cybersecurity Resources NAHB recently launched data privacy and cyber- security resources to educate members on the risks associated with the modern technology environment. Business owners need to be more proactive about identifying ways to protect their business and customer data from cyber threats. Developed with assistance from Philip R. Stein, Esq. of Bilzin Sumberg, the resources include a guide, Cybersecurity – What You Need to Know, a Cyber- security Assessment and Checklist and Sample Data Security Clauses for Vendor Contracts.
Confidence in Remodeling Market Falters in 2nd Quarter
The National Association of Home Builders (NAHB) has released its NAHB/Westlake Royal Remodeling Market Index (RMI) for the second quarter, posting a reading of 77, a 10-point decline compared to the second quarter of 2021. The NAHB/Westlake Royal RMI survey asks remodelers to rate five components of the remodeling market as “good,” “fair” or “poor.” Each question is measured on a scale from 0 to 100, where an index number above 50 indicates that a higher share view conditions as good than poor. The Current Conditions Index is an average of three components: the current market for large remodeling projects, moderately-sized projects and small projects. The Future Indicators Index (see above) is an average of two components: the current backlog of remodeling projects and the current rate at which leads and inquiries are coming in.
Legal Victory in Connecticut A Connecticut court decision has resulted in a win for NAHB members in the state and a blow to NIMBY opposition. NAHB last year filed an amicus brief with the Connecticut Supreme Court in the case of International Investors v. Town Plan and Zoning Commission of the Town of Fair- field. The issue in the case was whether the Town of Fairfield legally extended the time for the developer, Fairfield Commons, to complete the project. The court ruled for Fairfield Commons. It found that special permits and site plans are bound together. A town cannot condition a special permit with a due date before the statutory due date provided for site plans. The ruling maintains pre- dictability for development in the state. Connecticut.
FHA Extends Appraisal Validity The Federal Housing Administration (FHA) recently published revised appraisal validity guidance that extends the initial appraisal validity period from 120 days to 180 days and the appraisal update validity period from 240 days to one year for Single Family Title II mortgage programs. The appraisal validity period establishes the maximum time an appraisal report may be used for an FHA-insured mortgage. These changes align FHA appraisal validity periods with industry practices, making it easier for lenders to manage appraisal validity while potentially reducing appraisal costs for mortgagees and ultimately, borrowers seeking FHA-insured mortgage financing. The guidance applies to case numbers assigned on or after June 1, 2022.
moderately-sized projects and small projects. The Future Indicators Index (see above) is an average of two components: the current backlog of remodeling projects and the current rate at which leads and inquiries are coming in.
Supreme Court’s EPA Ruling Has Broad Implications
The Supreme Court’s recent decision in the case of West Virginia et al v. EPA et al could have a significant impact on federal agencies’ ability to expand regulations beyond the authority granted by Congress. The court voted 6-3 to restrict the ability of the EPA to regulate carbon emissions. Writing for the majority, Chief Justice John Roberts wrote that the EPA exceeded the authority of the Clean Air Act when it promulgated the Clean Power Plan (CPP) during the Obama administration. The decision's main relevance for NAHB is its discussion of an administrative law principle, the "major questions doctrine." The major questions doctrine holds that unless Congress clearly states its intent for a federal agency to exercise its authority to regulate an issue, courts must reject the agency's approach. The EPA will not be able to establish a similar rule affecting NAHB members through demand-side efficiency requirements. The Court's application of the major questions doctrine in this case will help NAHB and its advocacy on behalf of members in cases where an agency attempts to create new regulatory programs that depart significantly from statute.
regulate an issue, courts must reject the agency's approach. The EPA will not be able to establish a similar rule affecting NAHB members through demand-side efficiency requirements. The Court's application of the major questions doctrine in this case will help NAHB and its advocacy on behalf of members in cases where an agency attempts to create new regulatory programs that depart significantly from statute.
Upcoming Meetings & Events
September 7th Disc Golf Cannon Ridge Course September 13th Construction Luncheon 11:30-1:00pm FABA Office September 14th Associates Committee Meeting, 9:00-10:00AM FABA Office or Zoom September 14th Membership Committee Meeting,10:30-11:30AM FABA Office or Zoom September 15th Hard Hat Sponsored by Embrace Home Loans September 28th Community Service Committee Meeting, 9:00-10:00AM FABA Office or Zoom
Calendar at a Glance
See you at the, Hard Hat!
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
Every Third Thursday of the month, join us for our networking Hard Hat Events from 5:00-7:00 PM. Hard Hat (5:00 - 7:00 PM) is Thursday, September 15 and sponsored by Embrace Home Loans
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- Rayssiddingcompany@gmail.com Rays Siding, Co.
Associates Committee
Associates Committee Hybrid Meeting Zoom Link: Second Wednesday of each month at 9:00 AM
The hit of the summer, Summer Fest! See all of the photos here!
Do you have your foursome yet for fall golf? Foursome: -$565.00 before September 1st After September 1st - $600.00
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Spotsylvania County Bi-Monthly Meeting Zoom September 3rd, 3:00PM City of Fredericksburg Bi-monthly Meeting Zoom September 7th 9:00AM Stafford County Bimonthly Meeting Zoom September 10th, 9:00AM Culpepper Quarterly Meeting Zoom September 8th, 9:00AM Caroline County Quarterly Zoom September 21st, 11:00AM King George County Quarterly Zoom October 21st, 9:00AM Orange County Quarterly Zoom October 28th, 1:00AM
Legislative Committee
Upcoming County Zoom Meetings
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 Mark Snesavage at Mark@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.
Welcome Mark! Fredericksburg Area Builders Association Announces New Hire for the Position of Director of Government Affairs and Member Services FREDERICKSBURG, VA - August 22, 2022 - Today, the Fredericksburg Area Builders Association announced that Mark Snesavage will join the Association as their Director of Government Affairs. He will represent FABA and its members at local government meetings and lobby for and against policies, plans, and legislation directly affecting the local building industry. Mark will also manage FABA's political action committee,
which aims to support local political candidates that are supportive of creating and maintaining a healthy building environment. Mark@FABAVA.com
Save the date for our Fall work day 516 Project for October 8th!
Chair - Greg Schmidt, greg@pestsolutionsva.com
The Community Service committee seeks to increase civic engagement among the members of FABA and utilize professional skills to actively benefit the Fredericksburg area. We are always looking for new ways to get help and support the community. If you are interested in submitting an idea for the community service committee feel free to join us!
Find a drive near you
Community Service Committee
Sign up today!
This committee holds a hybrid meeting (in-person and virtual/zoom) every 4th Wednesday at 2:00PM.
Help support the Fredericksburg Area by giving blood at an upcoming drive. Click the link below to find a drive near you
Stay tuned for more education opportunities Site plan 101 Not my monkeys September 14th FAAR Realtor expo on builder row 9-1:00 PM Contracts Blower door training Impact to work place, support after Covid Mental and physical health
Meghan Butcher - FABA Staff Meghan@FABAVA.com
The Education Committee coordinates workshops and virtual learning opportunities focused on industry safety, marketing, and personal growth. Stay tuned for upcoming educational opportunities.
Sean Halsey - Halsey Homes
Education Committee
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. Watch this page for upcoming Young Professionals committee events. To join the FABA Young Professionals committee email Meghan@fabava.com
As a Cornerstone benefit for Partner, Platinum and Diamond levels they are able to contribute educational content to the newsletter each month. Check out this month's contribution from Contractors Websites Plus
How a Brand Plan Will Help Your Business
Member Contributions
Over the past thirteen years helping contractors create brands to attract the type of customer and projects they’re looking for; I’m amazed at how many of them come to us because they’re getting zero traction with their marketing efforts and don’t know why. We’ve found that inevitably it’s because their foundation – their brand and website – started without a plan. Would you build a second-floor deck without knowing the frost line, the size of your footing base, the depth and diameter of your Sonotube, or where you need the footings placed? No good contractor would. So why build a business without planning your brand’s foundation? If you don’t clearly identify what you offer, who you offer it to, and what type of customer you want to reach, how can you build the structure on top of it: your marketing plan? What is supporting all the effort, time, and money you’re spending? It’s time to stop what you’re doing, take a step back and create a plan for your brand. When you do, all your marketing, your website, your social media, and your message will come into focus, and you’ll start seeing the benefits of all your hard work. You’ll start working with the customers you want to work with and who you can help most on the types of projects you want to work on. If you’d like some help with a plan our Builder’s Brand Schematic can help you take your business to the next level, give me a call at (540) 318-1800. We’d love to help!
Cornerstone 2021
2022 FABA Board of Directors
President Scott Hine Union Home Mortgage 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 Dan Sandoval Republic Home Builders HBAV State Representative Scott Hine Union Home Mortgage Builder Director Tim Hall Tricord Companies Builder Director Allen Harrison Battlefield Homes Builder Director Steve Flanagan Built Right Homes Builder Director Teressa Taylor-Griffis FTTG & Associates, LLC 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 Life Builder Director Sean Halsey Halsey Homes Life Builder Director Dan Sandoval Republic Home Builders
FABA has been working with our exclusive, private partner, Small Business Growth Partners (SBGP) to help our members reach maximum growth and potential through their one of a kind BPA Process. This has been refined for over 10 years of working exclusively with Builders, Remodelers & HBA Associate Members. As an exclusive FABA member benefit, we are offering you the chance to register for and redeem your 2021 Business Diagnostic & Plan of Actions. An annual BPA is included 100% with your FABA Member Benefits (A $2,200 value).
Learn More Here